Environmental groups are asking a federal appeals court to reject a final rule pushed by the Trump administration that would allow LNG to be shipped more broadly across the US via rail.
The rule, which is set to take effect Aug. 24, is part of an effort to offer alternatives for and speed up the delivery of LNG to demand markets.
Advocates have hoped the rule would result in safer and less costly movement of the fuel in parts of the country where pipeline shipments are restricted. Under a 1920 federal law, foreign tankers cannot pick up LNG at one US port and deliver it to another US port.
During peak demand periods, markets in the US Northeast sometimes import LNG because LNG produced on the Gulf Coast can't reach them efficiently. Opponents of the LNG-by-rail rule worry about the damage a mishap like a spill or an explosion could have on soils, waterways and wildlife.
The US Department of Transportation's Pipeline and Hazardous Materials Safety Administration final rule, as published in the Federal Register on July 24, amends hazardous materials regulations to allow for the bulk transport of LNG in rail tank cars. The rail cars must have enhanced outer tanks that are subject to specific requirements and certain additional operational controls.
In an Aug. 18 petition to the US Court of Appeals for the DC Circuit, environmental groups including the Sierra Club, Center for Biological Diversity and Delaware Riverkeeper Network asked that the rule be reviewed and vacated.
"This reckless plan to move explosive fracked gas by rail poses a dire threat to workers and communities, all for the sake of benefiting the fossil fuel industry," Sierra Club attorney Nathan Matthews said in a statement. "We will not allow this dangerous plan to go unchallenged."
Attorneys general from 15 states, including New York, Maryland and California, filed a separate petition asking for the same relief.
If the broad rule were to take effect, it would be unlikely to spur a wave of LNG-by-rail shipments destined for export, but it could bring such projects into the realm of possibility, along with other ventures such as refueling stations for LNG-powered locomotives, according to industry analysts.
New Fortress Energy is developing a project to move LNG by rail from a proposed liquefaction plant in the Marcellus shale region in Pennsylvania to a small export facility on the East Coast. PHMSA has granted a special rail permit for the project.
In its publication of its final rule, PHMSA asserted that LNG by rail is both needed because of regional infrastructure constraints and safe because of current technology.
"The present action is based on a longstanding understanding of the properties of LNG and an evidence-based approach to the safety of the DOT–113 tank cars designed and used to transport flammable cryogenic materials," the agency said. "At the same time, in promulgating this final rule, and as it does with other hazardous materials, PHMSA recognizes that there is ongoing and potential future research related to the transportation of LNG by all modes."
PHMSA said it would to use the research to inform potential future regulatory activity.
