Graves & Crawford Commend PHMSA Decision on Transportation of Crude Oil and Other Flammable Liquids by Rail

Statement

U.S. Rep. Sam Graves (R-MO), the Committee on Transportation and Infrastructure Ranking Member, and U.S. Rep. Rick Crawford (R-AR), the Subcommittee on Railroads, Pipelines, and Hazardous Materials Ranking Member, released the following joint statement on the Pipeline and Hazardous Materials Safety Administration (PHMSA) announcement that, after an extensive study, it will no longer pursue a proposed rulemaking to impose vapor pressure limits in the transportation of crude oil and other flammable liquids by rail:

"This is the right decision for the safe transportation of energy products and for providing clarity and stability to the energy and transportation sectors during an already challenging period. We commend PHMSA and the Department of Transportation for this action after a thorough analysis of the issue. As this study has shown, pursuing further regulation based on vapor pressure would not offer any improvement in safety -- it would simply impose unnecessary burdens on our domestic energy production and rail transportation system."

Background Information:

Under a provision of the Fixing America's Surface Transportation (FAST) Act, the Department of Transportation (DOT), Department of Energy (DOE), and Transport Canada commissioned a study from Sandia National Laboratories to investigate whether crude oils currently transported in North America, including those from tight formations, exhibit physical or chemical properties that are distinct from conventional crude, and how these properties associate with combustion hazards that may be realized during transportation and handling. The study found that vapor pressure is not a statistically significant factor in testing these outcomes, and the results of the study do not support creating a distinction for crude oils based on vapor pressure.

Based on the results, DOT and DOE determined that no further regulations or legislation is required to improve the transport of crude oil as it regards to vapor pressure. On May 11, 2020, PHMSA announced it will no longer be considering imposing vapor pressure limits for crude transported by rail and will withdraw its January 2017 Advanced Notice of Proposed Rulemaking. It also announced its determination that federal hazardous materials transportation law preempts a Washington State vapor pressure requirement for transporting crude by rail, does not conform to hazardous materials regulations, and is an obstacle to carrying out federal law.

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