Federal regulators are deciding at what level should the U.S. allow the transportation of liquefied natural gas by rail. Some environmental groups oppose LNG by rail because of concerns about transporting highly flammable material.
New Fortress Energy subsidiary Energy Transfer Services’ permit allowing the transport of liquefied natural gas in special tank cars is set to expire next week, according to environmental group Delaware Riverkeeper.
The suspension would allow the July 2020 rule to be aligned with a separate and companion regulation currently being worked on by federal regulators.
President Joe Biden’s regulatory policy shift has wide-ranging implications for shippers and carriers.
The costs to electrify freight rail in the U.S., albeit expensive, extend beyond strictly capital costs to questions about electric grid reliability and how best to address decarbonization.
Rep. Joseph D. Morelle of New York says LNG unit trains would pose a safety threat to the local community.
The groups say more federal oversight is needed for the transport of liquefied natural gas by rail.
Environmental groups and several states have filed lawsuits against regulation governing liquefied natural gas by rail over environmental and safety concerns.
Agency estimates $4 billion in cost savings from hours-of-service changes.
The rule seeks to address Democrats’ concerns about the safety measures the railroads would take in transporting liquefied natural gas.
