The Biden administration has announced the suspension of Trump-era regulations that allowed for the shipment of liquefied natural gas (LNG) by rail. This decision, which was published in the Federal Register on Friday, is set to take effect on October 31st. The Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Department of Transportation are currently working on new regulations that could potentially modify or overturn the existing rules.
The suspension will remain in effect until either the agencies finalize their changes or until July 2025. While the regulations enabling LNG transportation by rail were implemented in July 2020, no shipments have been made thus far. The federal register announcement highlights the uncertainty surrounding whether any shipments would occur before potential modifications are considered by the PHMSA.
The Trump administration had introduced these rules as part of its efforts to expedite energy projects, with support from energy and railroad trade groups. Officials at the time emphasized the safeguards in place to ensure the safe transportation of LNG, including the use of specific rail cars and careful rail operations.
However, the rule faced opposition from attorneys general in 15 states as well as environmental organizations. They argued that LNG cargos transported by rail posed a significant risk of catastrophic accidents and criticized the Trump administration for downplaying safety concerns. In response to these concerns, the federal agencies behind the notice state that the suspension will provide an opportunity to evaluate potential changes to safety requirements for rail cars used in these shipments. This will prevent companies from facing economic burdens associated with ordering rail cars that may see specifications change.
In conclusion, the Biden administration’s decision to suspend the Trump-era rules regarding LNG shipment by rail demonstrates a dedication to ensuring safety and conducting thorough research on potential modifications. This move allows for a careful evaluation of safety requirements without imposing unnecessary economic burdens on businesses involved in such shipments.
Suspension of LNG Shipment Rule Applauded by Environmental Groups
Representatives from the Center for LNG and the American Association of Railroads have remained silent on the recent suspension of the LNG shipment rule, refusing to comment on the matter. However, environmental groups such as the Sierra Club and Food and Water Watch have voiced their support for the decision.
The Sierra Club hailed the suspension as a “win for safety and the climate,” emphasizing the potential dangers associated with transporting highly flammable LNG through communities. Patrick Grenter, director of the Sierra Club’s Beyond Dirty Fuels Campaign, commended the decision and called on the Pipeline and Hazardous Materials Safety Administration (PHMSA) to make the suspension permanent and implement a ban on LNG transportation by rail.
Meanwhile, Matt Smith, the New Jersey state director for Food and Water Watch, expressed relief on behalf of communities that would have been affected by LNG rail deliveries. Smith criticized New Fortress Energy’s plans to build an LNG export terminal along the Delaware River, describing it as a threat to these communities. He urged the Biden administration to take stronger action against fossil fuel projects nationwide and eliminate the risks posed by fracked gas bomb trains altogether.
It is evident that environmental groups are pleased with the suspension of the LNG shipment rule. However, whether this temporary halt will lead to a permanent ban remains to be seen.
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