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This rulemaking would expand the applicability of comprehensive oil spill response plans (OSRP) based on thresholds of liquid petroleum oil that apply to an entire train. The rulemaking would also require railroads to share information about high-hazard flammable train operations with State and Tribal emergency response commissions to improve community preparedness in accordance with the Fixing America's Surface Transportation Act of 2015 (FAST Act). Finally, the rulemaking would incorporate by reference an initial boiling point test for flammable liquids for better consistency with the American National Standards Institute/American Petroleum Institute Recommended Practices 3000, "Classifying and Loading of Crude Oil into Rail Tank Cars," First Edition, September 2014.

Statement of Need:

This rulemaking is important to mitigate the effects of potential train accidents involving the release of flammable liquid energy products by increasing planning and preparedness. The proposals in this rulemaking are shaped by mandates in Fixing America's Surface Transportation (FAST) Act of 2015, public comments, National Transportation Safety Board (NTSB) Safety Recommendations, analysis of recent accidents, and input from stakeholder outreach efforts (including first responders). To this end, PHMSA will consider expanding the applicability of comprehensive oil spill response plans; clarifying the requirements for comprehensive oil spill response plans; requiring railroads to share additional information; and providing an alternative test method for determining the initial boiling point of a flammable liquid.

Summary of the Legal Basis:

The authority of 49 U.S.C. 5103(b), which authorizes the Secretary of Transportation to "prescribe regulations for the safe transportation, including security, of hazardous materials in intrastate, interstate, and foreign commerce." The Fixing America's Surface Transportation (FAST) Act of 2015 also includes mandates for the information sharing notification requirements. The authority of 33 U.S.C. 1321, the Federal Water Pollution Control Act (FWPCA), which directs the President to issue regulations requiring owners and operators of certain vessels and onshore and offshore oil facilities to develop, submit, update and in some cases obtain approval of oil spill response plans. Executive Order 12777 delegated responsibility to the Secretary of Transportation for certain transportation-related facilities. The Secretary of Transportation delegated the authority to promulgate regulations to PHMSA and provides FRA the approval authority for railroad OSRPs.

Alternatives:

This rulemaking analyzes five alternative proposals, including no change and changing the applicability threshold to analyze the impact to affected entities. Under the no change alternative, PHMSA would not proceed with any rulemaking on this subject and the current regulatory standards would remain in effect.

Anticipated Costs and Benefits:

In the rulemaking, PHMSA performed a breakeven analysis by identifying the number of gallons of oil that the rulemaking would need to prevent from being spilled in order for its benefits to at least equal its estimated costs. Additional benefits may also be conferred due to ecological and human health improvements that may not be captured in the value of the avoided cost of spilled oil. PHMSA currently estimates the rulemaking will be cost-effective if the requirements reduce the consequences of oil spills by 7.68% with ten year costs estimated at $25.2 million and annualized costs of $3.6 million (using a 7% discount rate).

Risks:

PHMSA expects this rulemaking to mitigate the effects of potential train accidents involving the release of flammable liquid energy products by increasing planning and preparedness.