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PHMSA rejects industry concerns over new crude oil tankcar requirements

Dec. 2, 2015
The Pipeline and Hazardous Materials Safety Administration recently rejected several industry appeals regarding crude tankcar retrofits and product sampling. PHMSA stated empahtically that it sees no reason why industry can’t comply with the new regulations.

The Pipeline and Hazardous Materials Safety Administration recently rejected several industry appeals regarding crude tankcar retrofits and product sampling. PHMSA stated empahtically that it sees no reason why industry can’t comply with the new regulations.

PHMSA was responding to five remaining appeals submitted by the Dangerous Goods Advisory Council (DGAC), American Chemistry Council (ACC), Association of American Railroads (AAR), American Fuel & Petrochemical Manufacturers (AFPM), and jointly the Umatilla, Yakama, Warm Springs, and Nez Perce tribes (Columbia River Treaty Tribes) and the Quinault Indian Nation (Northwest Treaty Tribes).

​PHMSA denied the appellants' (DGAC, ACC, AAR, AFPM, and Treaty Tribes) appeals on scope of rulemaking, tribal impacts and consultation, retrofit timeline and tankcar reporting requirements, thermal protection for tankcars, and advanced brake signal propagation systems. PHMSA said it had reasonably determined how to apply the new regulations and provided the regulatory analysis to support those decisions.

“While we understand that shippers, carriers, and tankcar manufacturers for Class 3 flammable liquids will face new challenges in the wake of these regulations, we maintain that they are capable of complying with the final rule,” the agency wrote in its response. “We also deny DGAC's appeal to eliminate or provide further guidance for the sampling and testing program. The sampling and testing program is reasonable, justified, necessary, and clear as written. Additionally, we disagree that a delayed compliance date of March 31, 2016 should be provided for implementation of the requirements in Section 173.41 for shippers to implement changes for training and documentation.”

With respect to information sharing/notification, PHMSA announced in a May 28, 2015, notice that it would extend the Emergency Order applicable to the topic of information sharing/notification indefinitely, while it considered options for codifying the disclosure requirement permanently. Furthermore, on July 22, 2015, the Federal Railroad Administration issued a public letter instructing railroads transporting crude oil that they must continue to notify SERCs of the expected movement of Bakken crude oil trains through individual States.

While the treaty tribes and other stakeholders will have the opportunity to comment on these future regulatory proposals in the course of that rulemaking proceeding, PHMSA will continue to seek opportunities to reach out to the tribes and consultation from tribal leaders.

The new tankcar and crude hauling requirements were published in May by PHMSA in coordination with FRA. The final rule entitled “Hazardous Materials: Enhanced Tank Car Standards and Operational Controls for High-Hazard Flammable Trains” adopted requirements designed to reduce the consequences and, in some instances, reduce the probability of accidents involving trains transporting large quantities of Class 3 flammable liquids.