Hazardous Materials: Removal of Electronically Controlled Pneumatic Brake System Requirements for High Hazard Flammable Unit Trains, 48393-48401 [2018-20647]
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Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / Rules and Regulations
This action is effective
September 25, 2018.
ADDRESSES: Docket: EPA has established
a docket for this action under Docket
Identification No. EPA–HQ–SFUND–
2002–0001. All documents in the docket
are listed on the https://
www.regulations.gov website. Although
listed in the index, some information is
not publicly available, i.e., Confidential
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materials are available either
electronically through https://
www.regulations.gov or in hard copy at
the site information repositories.
Locations, contacts, phone numbers and
viewing hours are:
• U.S. EPA Record Center, attention:
Ms. Tina Terrell, Atlanta Federal Center,
61 Forsyth Street SW, Atlanta, Georgia
30303–8960. Phone: 404–562–8835.
Hours: 8 a.m.–4 p.m., Monday through
Friday by appointment only; and
• New Hanover County Library, 201
Chestnut Street, Wilmington, North
Carolina 28401. Phone: 910–798–6391.
Hours: 9 a.m.–5 p.m., Monday through
Saturday.
FOR FURTHER INFORMATION CONTACT:
Samantha Urquhart-Foster, Remedial
Project Manager, Remediation and Site
Evaluation Branch, Superfund Division,
U.S. Environmental Protection Agency,
Region 4, 61 Forsyth Street SW, Atlanta,
Georgia 30303–8960. Phone: 404–562–
8760, email: urquhart-foster.samantha@
epa.gov.
SUPPLEMENTARY INFORMATION: The site to
be deleted from the NPL is: Reasor
Chemical Company Site in Castle
Hayne, North Carolina. A Notice of
Intent to Delete for this Site was
published in the Federal Register (83
FR 36844) on July 31, 2018.
The closing date for comments on the
Notice of Intent to Delete was August
30, 2018. One public comment was
received. EPA believes this is not a sitespecific adverse comment opposing the
rule-making. EPA believes it is still
appropriate to delete the site, and will
proceed with the deletion action. A
responsiveness summary was prepared
and placed in both the docket, EPA–
HQ–SFUND–2002–0001, on
www.regulations.gov, and in the local
repositories listed above.
EPA maintains the NPL as the list of
sites that appear to present a significant
risk to public health, welfare, or the
environment. Deletion from the NPL
does not preclude further remedial
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DATES:
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action. Whenever there is a significant
release from a site deleted from the NPL,
the deleted site may be restored to the
NPL without application of the hazard
ranking system. Deletion of a site from
the NPL does not affect responsible
party liability in the unlikely event that
future conditions warrant further
actions.
48393
Authority: 33 U.S.C. 1321(d); 42 U.S.C.
9601–9657; E.O. 13626, 77 FR 56749, 3 CFR,
2013 Comp., p. 306; E.O. 12777, 56 FR 54757,
3 CFR, 1991 Comp., p. 351; E.O. 12580, 52
FR 2923, 3 CFR, 1987 Comp., p. 193.
coordination with the Federal Railroad
Administration, is issuing this final rule
to remove requirements pertaining to
electronically controlled pneumatic
brake systems on high-hazard
flammable unit trains. This final action
is based on the Department of
Transportation’s determination that the
requirements are not economically
justified.
DATES: Effective Date: This rule is
effective September 25, 2018.
ADDRESSES: Docket: You may view the
public docket online at https://
www.regulations.gov or in person at
Dockets Operations, M–30, Ground
Floor, Room W12–140, 1200 New Jersey
Avenue SE, Washington, DC 20590–
0001 between 9 a.m. and 5 p.m. Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For
regulatory impact analysis-related
questions, please contact Mark Johnson,
Senior Economist, PHMSA, by
telephone at 202–366–4495 or by email
at mark.johnson@dot.gov, or Marc
Fuller, Staff Director, RRS–21, FRA, by
telephone at 202–366–9335 or by email
at marc.fuller@dot.gov. For rulemaking
related questions, please contact
Candace Casey, Transportation
Specialist, PHMSA, by telephone at
202–366–8579 or by email at
candace.casey@dot.gov.
SUPPLEMENTARY INFORMATION:
Appendix B to Part 300—[Amended]
Abbreviations and Terms
2. Table 1 of appendix B to part 300
is amended by removing the listing
under North Carolina for ‘‘Reasor
Chemical Company’’.
AAR Association of American Railroads
APA Administrative Procedure Act
CFR Code of Federal Regulations
CPC Casualty Prevention Circular
DOT Department of Transportation
DP system Distributive Power
EA Environmental Assessment
ECP Electronically Controlled Pneumatic
EOT End-of-Train
FAST Act Fixing America’s Surface
Transportation Act of 2015
FR Federal Register
FRA Federal Railroad Administration
GAO Government Accountability Office
HHFT High-Hazard Flammable Train
HHFUT High-Hazard Flammable Unit Train
HMR Hazardous Materials Regulations
HMT Hazardous Materials Table
NEPA National Environmental Policy Act
NPRM Notice of Proposed Rulemaking
NPV Net Present Value
NTSB National Transportation Safety Board
OMB Office of Management and Budget
PG Packing Group
PV Present Value
PHMSA Pipeline and Hazardous Materials
Safety Administration
RFA Regulatory Flexibility Act
RIA Regulatory Impact Analysis
RIN Regulation Identifier Number
RSAC Railroad Safety Advisory Council
RSI Railway Supply Institute
TDG Transportation of Dangerous Goods
U.S.C. United States Code
List of Subjects in 40 CFR Part 300
Environmental protection, Air
pollution control, Chemicals, Hazardous
substances, Hazardous waste,
Intergovernmental relations, Penalties,
Reporting and recordkeeping
requirements, Superfund, Water
pollution control, Water supply.
Dated: September 10, 2018.
Onis ‘‘Trey’’ Glenn, III,
Regional Administrator, Region 4.
For reasons set out in the preamble,
40 CFR part 300 is amended as follows:
PART 300—NATIONAL OIL AND
HAZARDOUS SUBSTANCES
POLLUTION CONTINGENCY PLAN
1. The authority citation for part 300
continues to read as follows:
■
■
[FR Doc. 2018–20839 Filed 9–24–18; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
49 CFR Parts 174 and 179
[Docket No. PHMSA–2017–0102 (HM–251F)]
RIN 2137–AF35
Hazardous Materials: Removal of
Electronically Controlled Pneumatic
Brake System Requirements for High
Hazard Flammable Unit Trains
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Department of Transportation
(DOT).
ACTION: Final rule.
AGENCY:
The Pipeline and Hazardous
Materials Safety Administration, in
SUMMARY:
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Federal Register / Vol. 83, No. 186 / Tuesday, September 25, 2018 / Rules and Regulations
Table of Contents
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I. Background
II. Good Cause Justification
III. Section-by-Section Review
IV. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This
Rulemaking
B. Executive Order 12866, Executive Order
13563, Executive Order 13610, and DOT
Regulatory Policies and Procedures
C. Executive Order 13771
D. Executive Order 13132
E. Executive Order 13175
F. Regulatory Flexibility Act, Executive
Order 13272, and DOT Procedures and
Policies
G. Unfunded Mandates Reform Act of 1995
H. Paperwork Reduction Act
I. Regulation Identifier Number (RIN)
J. Environmental Assessment
K. Privacy Act
L. Executive Order 13609 and International
Trade Analysis
M. National Technology Transfer and
Advancement Act
List of Subjects
I. Background
On May 8, 2015, in collaboration with
the Federal Railroad Administration
(FRA), PHMSA published the final rule
‘‘Hazardous Materials: Enhanced Tank
Car Standards and Operational Controls
for High-Hazard Flammable Trains’’
(hereafter referred to as ‘‘HM–251 final
rule’’). The HM–251 final rule was an
integral part of the Department’s
comprehensive approach to ensuring
the safe transportation of energy
products by rail. Many provisions in
HM–251, including those pertaining to
advanced brake systems, were the
culmination of industry-led efforts to
improve tank car safety in anticipation
of increased crude oil shipments by rail,
which began in 2008.
In September of 2007, FRA published
a notice of proposed rulemaking
(NPRM) proposing to revise FRA power
brake regulations ‘‘to provide for and
encourage the safe implementation and
use of ECP brake system technologies’’
(72 FR 50820). The rulemaking was
initiated following a joint petition by
BNSF Railway (BNSF) and Norfolk
Southern (NS) to FRA for a waiver from
existing brake power requirements to
allow those railroads to operate ECP
brake pilot trains.1 The NPRM proposed
incorporating by reference the
Association of American Railroad’s
(AAR) existing ECP brake system
standards. In December of 2008, FRA
published a final rule adopting updated
AAR ECP brake standards and granting
regulatory relief from certain
1 The joint waiver petition was handled in a
separate proceeding than FRA’s ECP brake
rulemaking. See Docket No. FRA–2006–26435 at
https://www.regulations.gov/docket?D=FRA-200626435.
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requirements tied to traditional power
brakes (e.g. extended the distance
between brake inspections for train
operations using ECP brakes), which
added regulatory flexibility by allowing
the use of ECP brakes without the need
to apply for a waiver.
In 2011, FRA and the Railway Supply
Institute (RSI) met to discuss
improvements to tank cars used for the
transportation of crude oil in unit trains.
The main intent of the meeting was to
spur discussion about innovative ways
to improve tank car safety for potential
future changes in the hazardous
materials transportation supply chain.
The meeting resulted in the RSI
members offering to develop an industry
standard (non-regulatory in nature) in
collaboration with the AAR, the
Renewable Fuels Association (RFA),
Growth Energy, and the American
Petroleum Institute (API). This
collaborative effort was conducted
through AAR’s Tank Car Committee
Task Force, T87.6.2 The T87.6 Task
Force carried out technical analyses and
generated information for tank car safety
improvements, including findings on
alternative brake signal propagation
systems (i.e., ‘‘brake systems’’). The
advanced brake systems considered in
the T87.6 Task Force meetings included
conventional air brake systems, ECP
brake systems, distributive power (DP)
systems, and two-way end-of-train
(EOT) devices.
On September 6, 2013, PHMSA
published an Advance Notice of
Proposed Rulemaking (ANPRM) titled,
‘‘Hazardous Materials: Rail Petitions
and Recommendations To Improve the
Safety of Railroad Tank Car
Transportation’’ (78 FR 54849),
specifically requesting comments
pertaining to the use of these advanced
brake propagation systems to reduce the
kinetic energy associated with a
derailment based on the understanding
that a reduction in kinetic energy
would, on average, reduce the number
of tank cars involved in the derailment.
Similarly, FRA and the Railroad Safety
Advisory Committee (RSAC) considered
and evaluated the usefulness of
advanced brake systems. On August 1,
2014, PHMSA issued an NPRM titled
‘‘Hazardous Materials: Enhanced Tank
Car Standards and Operational Controls
for High-Hazard Flammable Trains’’ (79
FR 45016). In the NPRM, PHMSA and
2 On July 20, 2011, at the summer AAR Tank Car
Committee meeting, Docket T87.6 was created with
a dual charge: (1) To develop an industry standard
for tank cars used to transport crude oil, denatured
alcohol, and ethanol/gasoline mixtures; and (2) to
consider operating requirements to reduce the risk
of derailment of tank cars carrying crude oil
classified as Packing Group I and II, and ethanol.
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FRA considered comments submitted to
the ANPRM and, where relevant,
proposed to adopt revisions based on
the comments. Additionally, in the
NPRM, PHMSA requested additional
comments pertaining to advanced brake
systems.
On May 8, 2015, PHMSA issued the
HM–251 final rule (80 FR 26644). In the
final rule, PHMSA amended the
Hazardous Materials Regulations (HMR;
49 CFR parts 171 through 180) by
codifying new definitions for trains
carrying large volumes of flammable
liquids, ‘‘high-hazard flammable trains’’
(HHFTs) and ‘‘high-hazard flammable
unit trains’’ (HHFUTs),3 and by
implementing additional operational
restrictions (e.g., requirements related to
speed, braking systems, and routing) for
such trains. Specifically, as it relates to
this final rule, HM–251 included
amendments requiring all tank cars in
HHFUTs operating under certain
conditions to be equipped with ECP
brake systems.
On December 4, 2015, President
Barack Obama signed the Fixing
America’s Surface Transportation Act of
2015 (FAST Act) into law. Title VII of
the FAST Act, called the Hazardous
Materials Transportation Safety
Improvement Act of 2015, outlines
several requirements pertaining to the
HMR. Section 7311 specifically
mandates the study and testing of ECP
brake systems, focusing on requirements
that were promulgated under the HM–
251 final rule. Furthermore, the FAST
Act instructs the Department of
Transportation to incorporate the results
of the Government Accountability
Office’s (GAO) evaluations and the
testing of ECP brake systems by the
National Academy of Sciences into an
updated regulatory impact analysis
(RIA) of the ECP brake system
requirements, and to solicit public
comment on the updated RIA.
Additionally, the FAST Act required
that within two years of the mandate,
the DOT must determine, based on the
updated RIA, whether the ECP brake
system requirements in the HM–251
final rule were justified.
In October 2016, GAO submitted a
report 4 with four major
recommendations concerning the ECP
3 A high-hazard flammable train is a single train
comprised of 20 or more loaded tank cars
containing a Class 3 flammable liquid in a
continuous block, or 35 or more loaded tank cars
containing a Class 3 flammable liquid across the
entire train. A high-hazard flammable unit train is
a train comprised of 70 or more loaded tank cars
containing Class 3 flammable liquids.
4 DOT’s Rulemaking on Electronically Controlled
Pneumatic Brakes Could Benefit from Additional
Data and Transparency, GAO–17–122, Oct. 12,
2016.
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brake system requirements. GAO
recommended that DOT: (1) When
updating the RIA, take into account
potential uncertainty in key variables
and assumptions (e.g., fuel prices and
future rail traffic of crude oil and
ethanol), discuss this uncertainty, and
present ranges of possible scenarios; (2)
create a plan to collect data from
railroads’ ongoing and future
operational experiences using ECP brake
systems; (3) require freight railroads to
collect and provide data to FRA on their
ongoing operational experience with
ECP brake systems if a new requirement
were adopted; and (4) publish
information that would allow a third
party to fully assess and replicate the
analysis used in support of the HM–251
final rule. In May 2017, GAO produced
a separate report 5 in response to a
congressional inquiry, which further
indicated that DOT’s forecasted values
for some of the variables associated with
the transportation by rail of crude oil
and ethanol (such as the forecasted
number of tank cars used to ship crude
oil and ethanol, derailment rate, average
amount of product lost per derailment,
and number of injuries and deaths) may
be higher than values realized in 2015
and 2016 based on preliminary data.
In October 2017, PHMSA and FRA
published a notice of availability and
request for comments (82 FR 48006) on
a revised RIA updating the original RIA
associated with the ECP brake
provisions. As mandated by the FAST
Act, DOT updated the RIA and made a
determination regarding whether the
applicable ECP brake system
requirements are economically justified.
Based on that revised analysis, the
Department determined that the
expected benefits, including safety
benefits, of implementing ECP brake
system requirements do not exceed the
associated costs of equipping tank cars
with ECP brake systems, and therefore
are not economically justified. For this
reason, PHMSA is issuing this final rule
to remove the ECP brake system
requirements from the HMR.
The estimated costs and benefits for
the 20-year analysis used in the final
revised RIA are presented in Table 1
(below) in three different scenarios
labeled ‘‘high,’’ ‘‘low,’’ and
‘‘sensitivity.’’ The three scenarios are
based on various levels of future crude
oil shipped by rail, to reflect uncertainty
regarding those future volumes and to
evaluate the ECP brake system
requirements over a reasonably wide
range of scenarios to determine whether
the cost-benefit ratio would be affected
by varying levels of crude oil
transportation by rail.
The scenario labeled ‘‘high’’ describes
a projection in which the highest crude
oil by rail volumes of the three scenarios
were produced. The ‘‘high’’ scenario
was derived from an analysis by linear
regression of crude oil carloads on crude
oil production volumes using data from
2010 through 2016. A similar model was
run comparing volumes of ethanol
shipped by rail to ethanol production
volumes. The forecasted streams of rail
carloads from both models were then
added to obtain the total forecast
carload volume as presented in Table
8.2a of the docketed RIA.
The ‘‘low’’ scenario presents a crude
oil volume forecast that is essentially
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flat at the 5-year average at a lower
volume than that produced by the linear
forecast described above. The ‘‘low’’
scenario used the linear forecast model
for ethanol as described above to
forecast ethanol carload volumes and
used an average of the most recent 5
years for which data is complete (2012–
2016) to forecast crude oil volumes into
the future. These years coincide with
the emergence of high crude oil by rail
volumes (volumes in excess of 100,000
carloads per year). The carload figures
for this forecast are also presented in
Table 8.2a of the docketed RIA.
Finally, DOT examined a third
scenario which forecast crude oil by rail
volumes to continue their recent decline
for a few more years and bottom out at
120,000 carloads per year, which were
added to the linear ethanol forecast
volumes as described above in the
‘‘high’’ scenario description. This
scenario was presented in the sensitivity
analysis section, and hence was labeled
‘‘sensitivity’’ in the table. It produced
the lowest volume crude oil by rail
forecast of the three scenarios, and was
intended to capture the potential
impacts of increased pipeline capacity
or other factors that might lead to
further declines in crude oil by rail
volumes. These scenarios capture a
wide range of future flammable liquids
by rail volumes, over which the ECP
brake requirements were evaluated. As
can be seen below, and as reflected in
the final updated RIA, the ECP brake
system requirements are not expected to
be cost-beneficial under any scenario
assessed.
TABLE 1—COSTS AND BENEFITS OVER 20 YEARS
[Millions of dollars]
7 Percent
Low
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Tank Cars ................................................
Locomotives .............................................
Asset Management ..................................
Training ....................................................
Total Costs ........................................
Damage Mitigation ...................................
Set Out Reliefs .........................................
Class IA Brake Test .................................
Wheel Savings .........................................
Fuel Savings ............................................
Total Benefits ....................................
Net Benefits ...............................
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High
$237.76
105.03
0.52
32.29
375.60
48.16
5.87
27.54
26.77
22.70
131.03
¥244.57
5 2015 Electronically Controlled Pneumatic Brake
Rule: Comparison of DOT Forecasts for Selected
3 Percent
Sensitivity
$318.49
140.42
0.52
32.29
491.72
78.19
7.46
46.04
37.40
28.85
197.95
¥293.78
$165.00
77.13
0.52
32.29
274.95
37.36
3.56
21.68
17.87
13.79
94.27
¥180.68
Low
High
$256.18
110.79
0.52
34.62
402.11
67.19
8.24
45.07
36.08
31.90
188.49
¥213.63
Data Points for 2015 and 2016 to Preliminary Data
for Those Years, GAO–17–567R, May 31, 2017.
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$341.52
147.39
0.52
34.62
524.05
109.44
10.55
65.12
52.90
40.81
278.81
¥245.24
Sensitivity
$178.39
81.84
0.52
34.62
295.37
52.41
4.97
30.24
24.93
19.23
131.78
¥163.59
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II. Good Cause Justification
PHMSA is issuing this final rule
without providing an opportunity for
public notice and comment as is
normally provided under the
Administrative Procedure Act (APA; 5
U.S.C. 553). The APA authorizes
agencies to dispense with certain notice
and comment procedures if the agency
finds good cause that notice and public
procedures thereon are impracticable,
unnecessary, or contrary to the public
interest. See 5 U.S.C. 553(b)(3)(B). Good
cause exists because PHMSA and FRA
are following the procedures established
in section 7311 of the FAST Act, which
requires DOT to prepare a draft updated
RIA, seek public comment on the draft
updated RIA, prepare a final updated
RIA, and make a determination whether
the ECP brake system provisions for
HHFUTs were justified, based on the
costs and the benefits. On December 4,
2017, the Department determined that
the ECP brake system provisions in the
HM–251 final rule were not justified.
This rulemaking action codifies that
determination. The public was afforded
an opportunity to comment on the
revised RIA that formed the basis for
determination of whether the ECP brake
system requirements would be removed
from the HMR. (See Section I of this
revised final rule.) In this sense, the
public has had an opportunity to
provide useful information related to
this regulatory action. However, having
come to its determination that the ECP
brake system requirement is not
economically justified, PHMSA’s
adoption of this rule is nondiscretionary.
This final rule addresses a
Congressional mandate instructing the
Department to make a determination on
whether the ECP brake provisions in the
HM–251 final rule were justified by
December 4, 2017. Section 7311 of the
FAST Act established a clearly defined
procedure for making that
determination. PHMSA’s actions in this
final rule merely codify the
Department’s determination in the
HMR.6 Publishing a notice of proposed
rulemaking and seeking comment on the
proposal would unnecessarily impede
the due and timely execution of
PHMSA’s regulatory functions by
delaying the codification of a nondiscretionary regulatory action. In
making these ministerial amendments to
give effect to the Deparment’s
determination, PHMSA is not exercising
discretion in a way that could be
informed by public comment. As such,
6 The Secretary has delegated this authority to
PHMSA. See 49 CFR 1.97.
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notice and comment procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest’’ within the
meaning of the APA (5 U.S.C.
553(b)(3)(B)).
Furthermore, this final rule is
effective on the day of publication in the
Federal Register. The APA requires
agencies to delay the effective date of
regulations for 30 days after publication,
unless the agency finds good cause to
make the regulations effective sooner.
See 5 U.S.C. 553(d). As previously
discussed, PHMSA finds that good
cause exists to publish this rulemaking
without a notice of proposed
rulemaking and opportunity for public
comment and to make the regulations
effective prior to 30 days after
publication. This rule simply
implements the determination of the
Department, which was made in
accordance with the specific process
designated in section 7311 of the FAST
Act; therefore, PHMSA would be unable
to adjust the text of the rule to account
for any public comment.
III. Section-by-Section Review
Part 174
Section 174.310
Section 174.310 outlines additional
safety requirements, such as routing,
speed restrictions, and brake system
requirements specific to HHFTs and
HHFUTs. A rail carrier must comply
with these additional requirements if
they operate an HHFT or HHFUT as
defined in § 171.8. Section 174.310(a)(3)
requires advanced brake systems (e.g.,
two-way end-of-train devices,
distributive power, and ECP brake
systems) for HHFTs and HHFUTs
transporting hazardous materials under
certain conditions. Specifically,
§ 174.310(a)(3)(ii) requires that HHFUTs
comprised of at least one tank car that
is loaded with a Packing Group (PG) I
material and operating at speeds
exceeding 30 mph be equipped with
ECP brakes after January 1, 2021.
Similarly, paragraph (a)(3)(iii) requires
that all other HHFUTs not described in
paragraph (a)(3)(ii) be equipped with
ECP brakes after May 1, 2023, if
operating at speeds exceeding 30 mph.
Paragraph (a)(3)(iv) states that each
buffer car in an HHFUT that is not
equipped with ECP brakes will be
counted in determining the percentage
of cars with effective and operative
brakes, as required under 49 CFR
232.609, which requires that a train
have a minimum percentage of
operative brakes. Since the ECP brake
system requirements are being removed,
we are removing this accounting
provision as it no longer applies. Lastly,
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paragraph (a)(3)(v) allows the use of an
alternative brake system with approval
from FRA in accordance with the
processes and procedures outlined in 49
CFR part 232, subpart F. The approval
provision is also being removed, as we
have determined that restating this
option is superfluous, given that
approval provisions for new rail brake
system technology are outlined in 49
CFR part 232, subpart F.
Further, § 174.310(a)(5) outlines
requirements for retrofit reporting by
owners of non-jacketed DOT–111 tank
cars in PG I service in an HHFUT.
Specifically, paragraph (a)(5)(v) requires
owners to report the number of tank cars
built or retrofitted to a DOT–117, 117R,
or 117P specification that are ECP brakeready or ECP brake-equipped. Because
we are removing the ECP brake system
requirements, we are also deleting the
requirement to report those tank cars
that are ECP brake system ready or
equipped.
Therefore, as mandated by section
7311 of the FAST Act and based on our
determination that ECP brake system
requirements are not justified, PHMSA
is removing the requirements in
§ 174.310 for high-hazard flammable
unit trains to be equipped with ECP
brake systems, for approval of the use of
alternative brake systems, and for
retrofit status reports on ECP brake
system readiness and use.
Part 179
Subpart D of title 49, part 179 outlines
DOT specification requirements for nonpressure tank cars including DOT–117s
added under the HM–251 final rule.
Section 179.102–10
Section 179.102–10 outlines ECP
brake system capability requirements
consistent with § 174.310 for DOT–117
specification tank cars. Paragraph (a)
requires each rail carrier operating an
HHFUT that is comprised of at least one
tank car loaded with a PG I material
must ensure that the train meets the ECP
braking capability requirements by
January 1, 2021. Paragraph (b) requires
each rail carrier operating an HHFUT
that is not described in paragraph (a) to
ensure that the train meets the ECP
braking capability requirements by May
1, 2023. Paragraph (c) allows the use of
an alternative brake system with
approval from FRA. As mandated by the
FAST Act and based on the
Departments determination that ECP
brake system requirements are not
justified, PHMSA is removing the
requirements to ensure that HHFUTs
meet the ECP braking capability
requirements. Additionally, the
provision for approval of alternate brake
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systems is being removed, as reference
to 49 CFR part 232, subpart F, is
superfluous in the absence of the ECP
brake system requirements.
Section 179.202–12
Section 179.202–12 prescribes the
performance standard requirements for
DOT–117P tank cars. Paragraph (g)(1)
requires rail carriers operating an
HHFUT that is comprised of at least one
tank car loaded with a PG I material to
ensure that the train meets the ECP
braking capability requirements by
January 1, 2021. Paragraph (g)(2)
requires rail carriers operating an
HHFUT not described in paragraph
(g)(1) to ensure that the train meets the
ECP braking capability requirements by
May 1, 2023. Paragraph (g)(3) allows the
use of an alternative brake system with
approval from FRA. Therefore, as
mandated by the FAST Act and based
on the Department’s determination that
ECP brake system requirements are not
justified, PHMSA is removing the
requirements to ensure that HHFUTs
meet the ECP braking capability
requirements. Additionally, the
approval provision for alternate brake
systems is being removed, as reference
to 49 CFR part 232, subpart F, is
superfluous in the absence of the ECP
brake system requirements.
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Section 179.202–13
Section 179.202–13 prescribes retrofit
standards for existing non-pressure
DOT–117 tank cars. Paragraph (i)(1)
requires rail carriers operating an
HHFUT that is comprised of at least one
tank car loaded with a PG I material to
ensure the train meets the ECP braking
capability requirements specified in
§ 174.310 by January 1, 2021. Paragraph
(i)(2) requires rail carriers operating
HHFUTs not described in paragraph
(i)(1) to ensure the train meets the ECP
braking capability requirements in
§ 174.310 by May 1, 2023. Paragraph
(i)(3) allows the use of an alternative
brake system with approval from FRA.
As mandated by the FAST Act and
based on the Department’s
determination that ECP brake system
requirements are not justified, PHMSA
is deleting the requirements to ensure
that HHFUTs meet the ECP braking
capability requirements. Additionally,
the approval provision for alternative
brake systems is being removed, as
reference to 49 CFR part 232, subpart F,
is superfluous in the absence of the ECP
brake system requirements.
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IV. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This
Rulemaking
This final rule is published under the
authority of Federal Hazardous
Materials Transportation Law (Federal
Hazmat Law; 49 U.S.C. 5101 et seq.),
and the Federal Railroad Safety Laws
(49 U.S.C. ch. 201–213). Section 5103(b)
of the Federal Hazmat Law authorizes
the Secretary to prescribe regulations for
the safe transportation, including
security, of hazardous material in
intrastate, interstate, and foreign
commerce. Section 20103 of the Federal
Railroad Safety Laws, authorizes the
Secretary to prescribe regulations and
issue orders for every area of railroad
safety.
B. Executive Order 12866, Executive
Order 13563, Executive Order 13610,
and DOT Regulatory Policies and
Procedures
1. Background
As previously discussed, the HM–251
final rule amended the HMR by
adopting heightened brake system
requirements for HHFUTs. Specifically,
it required an HHFUT meeting certain
operational and train makeup
conditions to be equipped with and
operate an ECP brake system. These
trains were subject to a two-staged
implementation schedule. The first
stage required that certain HHFUTs be
equipped and operate an ECP brake
system by January 1, 2021. The second
stage required remaining trains be
equipped and operate an ECP brake
system by May 1, 2023.
The FAST Act instructed GAO to
conduct an independent evaluation of
ECP brake systems and DOT to contract
with the National Academy of Sciences
(NAS) to conduct testing and analysis
on ECP brake systems to help assess the
costs and benefits of the ECP brake
system requirements adopted in the
HM–251 final rule. Based on the
updated regulatory impact analysis,
which incorporates the findings of GAO
and NAS, PHMSA is removing the ECP
brake system requirements for HHFUTs
in this final rule.
2. Executive Orders
This final rule is not a significant
regulatory action within the meaning of
Executive Order 12866 (E.O. 12866) and
DOT policies and procedures. See 44 FR
11034 (Feb. 26, 1979). DOT made this
determination by finding that the
economic effects of this regulatory
action will not have an effect on the
economy that exceeds the $100 million
annual threshold defined by E.O. 12866
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48397
and that the regulatory action is not
otherwise significant.
In December 2017, DOT prepared and
placed an updated Regulatory Impact
Analysis (RIA) in the docket (Docket no.
PHMSA–2017–0102–0035) updating the
economic impact of the ECP brake
system provisions in the May 8, 2015,
final rule titled ‘‘Enhanced Tank Car
Standards and Operational Controls for
High-Hazard Flammable Trains.’’ (See
80 FR 26644; HM–251.) The RIA
estimated the costs and benefits of the
ECP provisions that were likely to be
incurred over a twenty-year period.
DOT estimated the costs and benefits of
the final rule using discount rates of 3
percent and 7 percent.
PHMSA is eliminating the
requirement that rail carriers install ECP
brake systems on trains transporting
Class 3 flammable liquid hazardous
materials. The FAST Act required DOT
to enter into an agreement with NAS to
test ECP brakes and reevaluate the
economic analysis supporting the ECP
brake system requirements of the HM–
251 final rule. Using the 2017 Final RIA,
DOT estimated the net cost savings that
will be realized by removing the ECP
brake system requirements. For the 20year period analyzed, the estimated net
cost savings are between $280.8 million
and $354.7 million, discounted at 3
percent, and between $292.7 million
and $372.0 million, discounted at 7
percent.
Cost savings of this final rule will be
realized in several categories. First, tank
cars would no longer need to be
equipped with ECP brakes. The cost
savings projections assume that a large
portion of the existing tank car fleet
would have been retrofitted with ECP
brake systems. Second, railroads would
not be required to install ECP brake
systems on locomotives. The 2017 RIA
assumed that any locomotive required
to be equipped with ECP brakes would
have incurred certain costs to be
retrofitted. Third, cost savings will now
be realized as rail carriers will no longer
be required to train employees on the
use of ECP brakes. Current employees
would have been trained on ECP brakes
within the first three years.
Additionally, when new employees
started, they would have been trained
on ECP brakes.
In the HM–251 final rule and the
updated RIA, DOT estimated that rail
carriers would realize business benefits
in several categories with the
implementation of ECP brake systems.
First, rail carriers would receive relief
from fewer set-outs (i.e., cars taken out
of service due to a defect). When a car
with defective conventional brakes must
be removed from the train, a ‘‘set-out’’
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occurs. ECP brake systems would have
removed the need for some set-outs as
the train could have traveled to the
nearest forward repair location with a
car with defective brakes. Second, trains
would be allowed to travel farther
between required brake tests. Third, due
to the reduced wear on wheels,
wheelsets would not be replaced as
frequently. The final business benefit
was reduced fuel usage. DOT estimated
a one percent reduction in fuel usage
due to ECP brake systems.
Since the 2015 ECP brake system
requirements are being removed from
the hazmat regulations, rail carriers will
no longer receive the business benefits
cited in the 2015 final rule. This offsets
some of the cost savings. Table 2, below,
shows the costs savings and offsetting
business benefits by category, and the
total net cost savings.
TABLE 2—COST SAVINGS AND OFFSETTING BUSINESS BENEFITS
[Millions of dollars]
7 Percent
Low
Tank Cars ........................................................................................................
Locomotives .....................................................................................................
Asset Management ..........................................................................................
Training ............................................................................................................
Total Cost Savings ...................................................................................
Set Out Reliefs ................................................................................................
Class IA Brake Test .........................................................................................
Wheel Savings .................................................................................................
Fuel Savings ....................................................................................................
Total Offsetting Business Benefits ...........................................................
Total Net Cost Savings ............................................................................
Annualized Net Cost Savings ...................................................................
Using low and high ranges, for the 20year period of analysis, the cost savings
are between $280.8 million and $354.7
million, discounted at 3 percent, and
between $292.7 million and $372.0
million, discounted at 7 percent. The
annualized net cost savings are between
$27.6 million and $35.1 million,
discounted at 7 percent.
Our analysis in response to the FAST
Act mandate also assessed the safety
effects of ECP brake systems. Although
the tests of ECP brake system
effectiveness mandated by the FAST Act
resulted in a lower safety improvement
3 Percent
High
$237.76
105.03
0.52
32.29
375.60
5.87
27.54
26.77
22.70
82.87
292.73
27.63
factor than was used in promulgating
the 2015 final rule, they continued to
demonstrate that ECP brake systems are
more effective than conventional brake
systems. As a result, deletion of the ECP
brake system requirements from the
HMR is forecast to modestly reduce
future safety performance, which may
result in larger spill sizes and associated
damages for future derailments than
would be the case if they were
maintained.
With the removal of the ECP brake
systems requirements from the 2015
rule, the predicted future safety benefits
Low
$318.49
140.42
0.52
32.29
491.72
7.46
46.04
37.40
28.85
119.75
371.97
35.11
High
$256.18
110.79
0.52
34.62
402.11
8.24
45.07
36.08
31.90
121.29
280.82
18.88
$341.52
147.39
0.52
34.62
524.05
10.55
65.12
52.90
40.81
169.37
354.68
23.84
will be foregone. Estimated discounted
values were between $48.2 million and
$78.2 million over 20 years at 7 percent,
and between $67.2 million and $109.4
million at 3 percent. Annualized safety
benefits were estimated at between $4.5
million and $7.4 million at both 3
percent and 7 percent discount rates.
Table 3, below, shows the safety
benefits estimated for the ECP brake
system requirements of the 2015 final
rule.
TABLE 3—2015 RULE SAFETY BENEFITS
[Millions of dollars]
7 Percent
Low
Safety Benefits .................................................................................................
Annualized .......................................................................................................
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In the intervening years since the
HM–251 final rule, the rail industry
attained significant safety improvements
transporting flammable liquids, with
declines in both incident rates and spill
size.
C. Executive Order 13771
This final rule is considered an E.O.
13771 deregulatory analysis. Details on
the estimated cost savings of this final
rule can be found above.
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$48.16
4.55
D. Executive Order 13132
This final rule has been analyzed in
accordance with the principles and
criteria in Executive Order 13132
(‘‘Federalism’’). This final rule does not
impose any regulation that has
substantial direct effects on States, the
relationship between the National
Government and the States, or the
distribution of power and
responsibilities among the various
levels of government. While the final
rule could act to preempt State, local,
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3 Percent
High
Low
$78.19
7.38
$67.19
4.52
High
$109.44
7.36
and Indian tribe requirements by
operation of law, PHMSA is not aware
of any such requirements that are
substantively different than what is
required by the final rule. Therefore, the
consultation and funding requirements
of Executive Order 13132 do not apply.
The Federal Hazardous Materials
Transportation Law, 49 U.S.C. 5101–
5128, contains express preemption
provisions (49 U.S.C. 5125) that
preempt inconsistent State, local, and
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Indian tribe requirements, including
requirements on the following subjects:
(1) The designation, description, and
classification of hazardous materials;
(2) The packing, repacking, handling,
labeling, marking, and placarding of
hazardous materials;
(3) The preparation, execution, and
use of shipping documents related to
hazardous materials and requirements
related to the number, contents, and
placement of those documents;
(4) The written notification,
recording, and reporting of the
unintentional release in transportation
of hazardous material; or
(5) The design, manufacture,
fabrication, marking, maintenance,
recondition, repair, or testing of a
packaging or container represented,
marked, certified, or sold as qualified
for use in transporting hazardous
material.
This rule addresses item (5) described
above and, accordingly, State, local, and
Indian tribe requirements on this subject
that do not meet the ‘‘substantively the
same’’ standard will be preempted.
Federal preemption also may exist
pursuant to Section 20106 of the former
Federal Railroad Safety Act of 1970
(FRSA), repealed, revised, reenacted,
and recodified at 49 U.S.C. 20106, and
the former Safety Appliance Acts (SAA),
repealed revised, reenacted, and
recodified at 49 U.S.C. 20301–20304,
20306. Section 20106 of the former
FRSA provides that States may not
adopt or continue in effect any law,
regulation, or order related to railroad
safety or security that covers the subject
matter of a regulation prescribed or
order issued by the Secretary of
Transportation (with respect to railroad
safety matters) or the Secretary of
Homeland Security (with respect to
railroad security matters), except when
the State law, regulation, or order
qualifies under the section’s ‘‘essentially
local safety or security hazard.’’ The
former SAA has been interpreted by the
Supreme Court as preempting the field
‘‘of equipping cars with appliances
intended for the protection of
employees.’’ Southern Ry. Co. v. R.R.
Comm’n of Ind., 236 U.S. 439, 446
(1915). The train’s power braking
system is considered a safety appliance
within the terms of the former SAA. 49
U.S.C. 20302(a)(5).
The Federal Hazardous Materials
Transportation Law provides at Section
5125(b)(2) that, if DOT issues a
regulation concerning any of the
covered subjects, DOT must determine
and publish in the Federal Register the
effective date of Federal preemption.
The effective date may not be earlier
than the 90th day following the date of
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16:30 Sep 24, 2018
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issuance of a final rule and not later
than two years after the date of issuance.
The effective date of Federal preemption
is December 24, 2018. This effective
date for preemptive effect should not
conflict with the overall effective date
for this final rule because the regulation
of hazardous materials transport in
commerce generally preempts State and
local requirements. Historically, the
States and localities are aware of this
preemptive effect and do not regulate in
conflict with Federal requirements in
these situations.
D. Executive Order 13175
This final rule has been analyzed in
accordance with the principles and
criteria in Executive Order 13175
(‘‘Consultation and Coordination with
Indian Tribal Governments’’). Executive
Order 13175 requires agencies to assure
meaningful and timely input from
Indian tribal government representatives
in the development of rules that have
tribal implications. Because this final
rule does not have tribal implications,
the funding and consultation
requirements of Executive Order 13175
do not apply.
E. Regulatory Flexibility Act, Executive
Order 13272, and DOT Procedures and
Policies
Section 603 of the Regulatory
Flexibility Act (RFA) requires an agency
to prepare an initial regulatory
flexibility analysis describing effects on
small entities whenever an agency is
required by 5 U.S.C. 553 to publish a
general notice of proposed rulemaking
for any proposed rule. Similarly, section
604 of the RFA requires an agency to
prepare a final regulatory flexibility
analysis when an agency issues a final
rule under 5 U.S.C. 553 after being
required to publish a general notice of
proposed rulemaking.
This action is a non-discretionary
final rule addressing congressional
mandates under the FAST Act of 2015.
As prior notice and opportunity for
comment under 5 U.S.C. 553 are not
required in this situation, a regulatory
flexibility analysis—as would otherwise
be required per 5 U.S.C. 603–604—was
not performed. However, as mandated
by the FAST Act, PHMSA reviewed and
updated the RIA supporting the HM–
251 final rule, which initially adopted
the ECP brake system requirements. The
original RIA found that, while the ECP
brake system requirements from that
final rule would have a direct effect on
some small railroads, this effect would
not have a significant impact. Therefore,
the repeal of the ECP brake system
requirement will create a limited benefit
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48399
for a small number of small entities.
PHMSA’s rationale is as follows.
‘‘Small entity’’ is defined in 5 U.S.C.
601 as including a small business
concern that is independently owned
and operated, and is not dominant in its
field of operation. The U.S. Small
Business Administration (SBA) has
authority to regulate issues related to
small businesses, and stipulates in its
size standards that a ‘‘small entity’’ in
the railroad industry is a for-profit
‘‘linehaul railroad’’ that has fewer than
1,500 employees, a ‘‘short line railroad’’
with fewer than 500 employees, or a
‘‘commuter rail system’’ with annual
receipts of less than $15 million. See
‘‘Size Eligibility Provisions and
Standards,’’ 13 CFR part 121, subpart A.
Additionally, 5 U.S.C. 601(5) defines as
‘‘small entities’’ governments of cities,
counties, towns, townships, villages,
school districts, or special districts with
populations less than 50,000. Federal
agencies may adopt their own size
standards for small entities, in
consultation with SBA and in
conjunction with public comment.
Pursuant to that authority, FRA
published a final statement of agency
policy that formally defines ‘‘small
entities’’ or ‘‘small businesses’’ as being
railroads, contractors, and hazardous
materials shippers that meet the revenue
requirements of a Class III railroad as set
forth in 49 CFR 1201.1–1 (i.e., $20
million or less in inflation-adjusted
annual revenues) or commuter railroads
or small governmental jurisdictions that
serve populations of 50,000 or less. See
68 FR 24891 (May 9, 2003), codified at
appendix C to 49 CFR part 209. The $20
million-limit is based on the Surface
Transportation Board’s revenue
threshold for a Class III railroad.
Railroad revenue is adjusted for
inflation by applying a revenue deflator
formula in accordance with 49 CFR
1201.1–1. DOT is using this definition
for this rulemaking.
Under the 2015 final rule, any
railroad that operates at speeds 30 mph
or less, as is the case for most small
railroads, would not have been affected
by the ECP brake system requirements.
Additionally, as most small railroads do
not travel long distances, this
requirement for reduced speed did not
cause any significant impact. Therefore,
of the approximately 690 Class III
railroads, most were not affected by the
2015 final rule, and consequently, will
not be affected by this final rule.
Those affected would be small rail
carriers that have relatively short
mileage connecting two or more larger
rail carriers and that may operate trains
at speeds higher than 30 mph. The
impact would not be significant,
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however, as these entities do not
originate HHFUTs, but may serve as a
connecting line between larger railroads
or allow the larger rail carriers to
operate HHFUTs over their track. All
HHFUTs from larger rail carriers would
be assembled such that locomotives and
cars with ECP brake systems are kept
together, precluding speed restrictions
under the 2015 final rule. Furthermore,
as this final rule is a deregulatory
action, this small impact would also be
beneficial for small railroads.
F. Unfunded Mandates Reform Act of
1995
This rule does not impose unfunded
mandates under the Unfunded
Mandates Reform Act of 1995. It does
not result in costs of $155 million or
more, adjusted for inflation, to either
State, local, or tribal governments, in the
aggregate, or to the private sector in any
one year.
G. Paperwork Reduction Act
PHMSA currently has an approved
information collection under OMB
Control Number 2137–0628 titled,
‘‘Flammable Hazardous Materials by
Rail Transportation,’’ with an expiration
date of March 31, 2019. This final rule
will result in a minor decrease in the
time spent to submit reports pertaining
to ECP brake-ready or ECP brakeequipped tank cars, but does not
necessitate the revision of this
information collection package in either
the annual burden or cost for changes
under part 110.
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H. Regulation Identifier Number (RIN)
A regulation identifier number (RIN)
is assigned to each regulatory action
listed in the Unified Agenda of Federal
Regulatory or Deregulatory Actions
(‘‘Unified Agenda’’). The Regulatory
Information Service Center publishes
the Unified Agenda in April and
October of each year. The RIN number
contained in the heading of this
document may be used to crossreference this action with the Unified
Agenda.
I. National Environmental Policy Act
The National Environmental Policy
Act of 1969 (NEPA), as amended (42
U.S.C. 4321–4347), requires Federal
agencies to consider the environmental
impacts of proposed actions in their
decision-making. However, the FAST
Act mandates that the results of the
updated regulatory impact analysis
determine whether the ECP brake
requirements remain in place. If the
regulatory impact analysis shows that
the benefits exceed the costs of the ECP
braking requirements, the FAST Act
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requires the Secretary to publish a
‘‘determination,’’ in the Federal
Register. If the Secretary is unable to
support such a ‘‘determination,’’ the
FAST Act requires the repeal of the ECP
brake system requirements. Because the
final updated regulatory impact analysis
showed that the expected costs of ECP
brake system requirements are greater
than the expected benefits, the
Department is required to promulgate
this repeal.
The FAST Act removed the
Secretary’s discretion to consider
anything other than the costs and
benefits outlined in the RIA. Although
PHMSA performed a NEPA analysis
with respect to the broader rulemaking,
the FAST Act precludes consideration
of alternatives and their environmental
effects under NEPA for this repeal.
J. Privacy Act
Anyone may search the electronic
form of any written communications
and comments received into any of our
dockets by the name of the individual
submitting the document (or signing the
document, if submitted on behalf of an
association, business, labor union, etc.).
DOT posts these comments, without
edit, including any personal information
the commenter provides, to
www.regulations.gov, as described in
the system of records notice (DOT/ALL–
14 FDMS), which can be reviewed at
www.dot.gov/privacy.
K. Executive Order 13609 and
International Trade Analysis
Under Executive Order 13609
(‘‘Promoting International Regulatory
Cooperation’’), agencies must consider
whether the impacts associated with
significant variations between domestic
and international regulatory approaches
are unnecessary or may impair the
ability of American businesses to export
and compete internationally. In meeting
shared challenges involving health,
safety, labor, security, environmental,
and other issues, regulatory approaches
developed through international
cooperation can provide equivalent
protection to standards developed
independently, while also minimizing
unnecessary differences.
Similarly, the Trade Agreements Act
of 1979 (Pub. L. 96–39), as amended by
the Uruguay Round Agreements Act
(Pub. L. 103–465), prohibits Federal
agencies from establishing any
standards or engaging in related
activities that create unnecessary
obstacles to the foreign commerce of the
United States. For purposes of these
requirements, Federal agencies may
participate in the establishment of
international standards, so long as the
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standards have a legitimate domestic
objective, such as providing for safety,
and do not operate to exclude imports
that meet this objective. The statute also
requires consideration of international
standards and, where appropriate, that
they be the basis for U.S. standards.
PHMSA participates in the
establishment of international standards
to protect the safety of the American
public, and we have assessed the effects
of the proposed rule to ensure that it
does not cause unnecessary obstacles to
foreign trade. Accordingly, this
rulemaking is consistent with Executive
Order 13609 and PHMSA’s obligations
under the Trade Agreement Act, as
amended.
L. Executive Order 13211
Executive Order 13211 requires
Federal agencies to prepare a Statement
of Energy Effects for any ‘‘significant
energy action’’ [66 FR 28355; May 22,
2001]. Under the Executive Order, a
‘‘significant energy action’’ is defined as
any action by an agency (normally
published in the Federal Register) that
promulgates, or is expected to lead to
the promulgation of, a final rule or
regulation (including a notice of
inquiry, advance NPRM, and NPRM)
that: (1)(i) Is a significant regulatory
action under Executive Order 12866 or
any successor order and (ii) is likely to
have a significant adverse effect on the
supply, distribution, or use of energy; or
(2) is designated by the Administrator of
the Office of Information and Regulatory
Affairs as a significant energy action.
Although this is a non-significant
regulatory action under Executive Order
12866, PHMSA has evaluated this
action in accordance with Executive
Order 13211 and has determined this
action will not have a significant
adverse effect on the supply,
distribution, or use of energy.
Consequently, PHMSA has determined
this regulatory action is not a
‘‘significant energy action’’ within the
meaning of Executive Order 13211.
List of Subjects
49 CFR Part 174
Hazardous materials transportation,
Rail carriers, Reporting and
recordkeeping requirements, Security
measures.
49 CFR Part 179
Hazardous materials transportation,
Incorporation by reference, Railroad
safety, Reporting and recordkeeping
requirements.
In consideration of the foregoing, we
are amending title 49, chapter I,
subchapter C, as follows:
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PART 174—CARRIAGE BY RAIL
1. The authority citation for part 174
continues to read as follows:
■
Authority: 49 U.S.C. 5101–5128; 49 CFR
1.81 and 1.97.
2. In § 174.310, paragraphs (a)(3) and
(5) are revised to read as follows:
■
§ 174.310 Requirements for the operation
of high-hazard flammable trains.
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(a) * * *
(3) Braking. Each rail carrier operating
a high-hazard flammable train (as
defined in § 171.8 of this subchapter)
operating at a speed in excess of 30 mph
must ensure the train is equipped and
operated with either a two-way end-oftrain (EOT) device, as defined in 49 CFR
232.5, or a distributed power (DP)
system, as defined in 49 CFR 229.5.
*
*
*
*
*
(5) Retrofit reporting. Owners of nonjacketed DOT–111 tank cars in PG I
service in an HHFT, who are unable to
meet the January 1, 2017, retrofit
deadline specified in § 173.243(a)(1) of
this subchapter are required to submit a
VerDate Sep<11>2014
16:30 Sep 24, 2018
Jkt 244001
report by March 1, 2017, to Department
of Transportation. A group representing
owners may submit a consolidated
report to the Department of
Transportation in lieu of individual
reports from each tank car owner. The
report must include the following
information regarding the retrofitting
progress:
(i) The total number of tank cars
retrofitted to meet the DOT–117R
specification;
(ii) The total number of tank cars built
or retrofitted to meet the DOT–117P
specification;
(iii) The total number of DOT–111
tank cars (including those built to CPC–
1232 industry standard) that have not
been modified;
(iv) The total number of tank cars
built to meet the DOT–117 specification;
and
(v) Entities required to submit a report
under this paragraph shall submit
subsequent follow-up reports containing
the information identified in this
paragraph within 60 days of being
notified by PHMSA and FRA.
*
*
*
*
*
PO 00000
Frm 00041
Fmt 4700
Sfmt 9990
48401
PART 179—SPECIFICATIONS FOR
TANK CARS
3. The authority citation for part 179
continues to read as follows:
■
Authority: 49 U.S.C. 5101–5128; 49 CFR
1.81 and 1.97.
§ 179.102–10
[Removed]
4. In subpart D, § 179.102–10 is
removed.
■
§ 179.202–12
[Amended]
5. In § 179.202–12, paragraph (g) is
removed.
■
§ 179.202–13
[Amended]
6. In § 179.202–13, paragraph (i) is
removed.
■
Issued in Washington, DC, on September
18, 2018, under authority delegated in 49
CFR 1.97.
Howard McMillan,
Executive Director, Pipeline and Hazardous
Materials Safety Administration.
[FR Doc. 2018–20647 Filed 9–24–18; 8:45 am]
BILLING CODE 4910–60–P
E:\FR\FM\25SER1.SGM
25SER1
Agencies
[Federal Register Volume 83, Number 186 (Tuesday, September 25, 2018)]
[Rules and Regulations]
[Pages 48393-48401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20647]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials Safety Administration
49 CFR Parts 174 and 179
[Docket No. PHMSA-2017-0102 (HM-251F)]
RIN 2137-AF35
Hazardous Materials: Removal of Electronically Controlled
Pneumatic Brake System Requirements for High Hazard Flammable Unit
Trains
AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
Department of Transportation (DOT).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Pipeline and Hazardous Materials Safety Administration, in
coordination with the Federal Railroad Administration, is issuing this
final rule to remove requirements pertaining to electronically
controlled pneumatic brake systems on high-hazard flammable unit
trains. This final action is based on the Department of
Transportation's determination that the requirements are not
economically justified.
DATES: Effective Date: This rule is effective September 25, 2018.
ADDRESSES: Docket: You may view the public docket online at https://www.regulations.gov or in person at Dockets Operations, M-30, Ground
Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590-
0001 between 9 a.m. and 5 p.m. Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: For regulatory impact analysis-related
questions, please contact Mark Johnson, Senior Economist, PHMSA, by
telephone at 202-366-4495 or by email at [email protected], or Marc
Fuller, Staff Director, RRS-21, FRA, by telephone at 202-366-9335 or by
email at [email protected]. For rulemaking related questions, please
contact Candace Casey, Transportation Specialist, PHMSA, by telephone
at 202-366-8579 or by email at [email protected].
SUPPLEMENTARY INFORMATION:
Abbreviations and Terms
AAR Association of American Railroads
APA Administrative Procedure Act
CFR Code of Federal Regulations
CPC Casualty Prevention Circular
DOT Department of Transportation
DP system Distributive Power
EA Environmental Assessment
ECP Electronically Controlled Pneumatic
EOT End-of-Train
FAST Act Fixing America's Surface Transportation Act of 2015
FR Federal Register
FRA Federal Railroad Administration
GAO Government Accountability Office
HHFT High-Hazard Flammable Train
HHFUT High-Hazard Flammable Unit Train
HMR Hazardous Materials Regulations
HMT Hazardous Materials Table
NEPA National Environmental Policy Act
NPRM Notice of Proposed Rulemaking
NPV Net Present Value
NTSB National Transportation Safety Board
OMB Office of Management and Budget
PG Packing Group
PV Present Value
PHMSA Pipeline and Hazardous Materials Safety Administration
RFA Regulatory Flexibility Act
RIA Regulatory Impact Analysis
RIN Regulation Identifier Number
RSAC Railroad Safety Advisory Council
RSI Railway Supply Institute
TDG Transportation of Dangerous Goods
U.S.C. United States Code
[[Page 48394]]
Table of Contents
I. Background
II. Good Cause Justification
III. Section-by-Section Review
IV. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This Rulemaking
B. Executive Order 12866, Executive Order 13563, Executive Order
13610, and DOT Regulatory Policies and Procedures
C. Executive Order 13771
D. Executive Order 13132
E. Executive Order 13175
F. Regulatory Flexibility Act, Executive Order 13272, and DOT
Procedures and Policies
G. Unfunded Mandates Reform Act of 1995
H. Paperwork Reduction Act
I. Regulation Identifier Number (RIN)
J. Environmental Assessment
K. Privacy Act
L. Executive Order 13609 and International Trade Analysis
M. National Technology Transfer and Advancement Act
List of Subjects
I. Background
On May 8, 2015, in collaboration with the Federal Railroad
Administration (FRA), PHMSA published the final rule ``Hazardous
Materials: Enhanced Tank Car Standards and Operational Controls for
High-Hazard Flammable Trains'' (hereafter referred to as ``HM-251 final
rule''). The HM-251 final rule was an integral part of the Department's
comprehensive approach to ensuring the safe transportation of energy
products by rail. Many provisions in HM-251, including those pertaining
to advanced brake systems, were the culmination of industry-led efforts
to improve tank car safety in anticipation of increased crude oil
shipments by rail, which began in 2008.
In September of 2007, FRA published a notice of proposed rulemaking
(NPRM) proposing to revise FRA power brake regulations ``to provide for
and encourage the safe implementation and use of ECP brake system
technologies'' (72 FR 50820). The rulemaking was initiated following a
joint petition by BNSF Railway (BNSF) and Norfolk Southern (NS) to FRA
for a waiver from existing brake power requirements to allow those
railroads to operate ECP brake pilot trains.\1\ The NPRM proposed
incorporating by reference the Association of American Railroad's (AAR)
existing ECP brake system standards. In December of 2008, FRA published
a final rule adopting updated AAR ECP brake standards and granting
regulatory relief from certain requirements tied to traditional power
brakes (e.g. extended the distance between brake inspections for train
operations using ECP brakes), which added regulatory flexibility by
allowing the use of ECP brakes without the need to apply for a waiver.
---------------------------------------------------------------------------
\1\ The joint waiver petition was handled in a separate
proceeding than FRA's ECP brake rulemaking. See Docket No. FRA-2006-
26435 at https://www.regulations.gov/docket?D=FRA-2006-26435.
---------------------------------------------------------------------------
In 2011, FRA and the Railway Supply Institute (RSI) met to discuss
improvements to tank cars used for the transportation of crude oil in
unit trains. The main intent of the meeting was to spur discussion
about innovative ways to improve tank car safety for potential future
changes in the hazardous materials transportation supply chain. The
meeting resulted in the RSI members offering to develop an industry
standard (non-regulatory in nature) in collaboration with the AAR, the
Renewable Fuels Association (RFA), Growth Energy, and the American
Petroleum Institute (API). This collaborative effort was conducted
through AAR's Tank Car Committee Task Force, T87.6.\2\ The T87.6 Task
Force carried out technical analyses and generated information for tank
car safety improvements, including findings on alternative brake signal
propagation systems (i.e., ``brake systems''). The advanced brake
systems considered in the T87.6 Task Force meetings included
conventional air brake systems, ECP brake systems, distributive power
(DP) systems, and two-way end-of-train (EOT) devices.
---------------------------------------------------------------------------
\2\ On July 20, 2011, at the summer AAR Tank Car Committee
meeting, Docket T87.6 was created with a dual charge: (1) To develop
an industry standard for tank cars used to transport crude oil,
denatured alcohol, and ethanol/gasoline mixtures; and (2) to
consider operating requirements to reduce the risk of derailment of
tank cars carrying crude oil classified as Packing Group I and II,
and ethanol.
---------------------------------------------------------------------------
On September 6, 2013, PHMSA published an Advance Notice of Proposed
Rulemaking (ANPRM) titled, ``Hazardous Materials: Rail Petitions and
Recommendations To Improve the Safety of Railroad Tank Car
Transportation'' (78 FR 54849), specifically requesting comments
pertaining to the use of these advanced brake propagation systems to
reduce the kinetic energy associated with a derailment based on the
understanding that a reduction in kinetic energy would, on average,
reduce the number of tank cars involved in the derailment. Similarly,
FRA and the Railroad Safety Advisory Committee (RSAC) considered and
evaluated the usefulness of advanced brake systems. On August 1, 2014,
PHMSA issued an NPRM titled ``Hazardous Materials: Enhanced Tank Car
Standards and Operational Controls for High-Hazard Flammable Trains''
(79 FR 45016). In the NPRM, PHMSA and FRA considered comments submitted
to the ANPRM and, where relevant, proposed to adopt revisions based on
the comments. Additionally, in the NPRM, PHMSA requested additional
comments pertaining to advanced brake systems.
On May 8, 2015, PHMSA issued the HM-251 final rule (80 FR 26644).
In the final rule, PHMSA amended the Hazardous Materials Regulations
(HMR; 49 CFR parts 171 through 180) by codifying new definitions for
trains carrying large volumes of flammable liquids, ``high-hazard
flammable trains'' (HHFTs) and ``high-hazard flammable unit trains''
(HHFUTs),\3\ and by implementing additional operational restrictions
(e.g., requirements related to speed, braking systems, and routing) for
such trains. Specifically, as it relates to this final rule, HM-251
included amendments requiring all tank cars in HHFUTs operating under
certain conditions to be equipped with ECP brake systems.
---------------------------------------------------------------------------
\3\ A high-hazard flammable train is a single train comprised of
20 or more loaded tank cars containing a Class 3 flammable liquid in
a continuous block, or 35 or more loaded tank cars containing a
Class 3 flammable liquid across the entire train. A high-hazard
flammable unit train is a train comprised of 70 or more loaded tank
cars containing Class 3 flammable liquids.
---------------------------------------------------------------------------
On December 4, 2015, President Barack Obama signed the Fixing
America's Surface Transportation Act of 2015 (FAST Act) into law. Title
VII of the FAST Act, called the Hazardous Materials Transportation
Safety Improvement Act of 2015, outlines several requirements
pertaining to the HMR. Section 7311 specifically mandates the study and
testing of ECP brake systems, focusing on requirements that were
promulgated under the HM-251 final rule. Furthermore, the FAST Act
instructs the Department of Transportation to incorporate the results
of the Government Accountability Office's (GAO) evaluations and the
testing of ECP brake systems by the National Academy of Sciences into
an updated regulatory impact analysis (RIA) of the ECP brake system
requirements, and to solicit public comment on the updated RIA.
Additionally, the FAST Act required that within two years of the
mandate, the DOT must determine, based on the updated RIA, whether the
ECP brake system requirements in the HM-251 final rule were justified.
In October 2016, GAO submitted a report \4\ with four major
recommendations concerning the ECP
[[Page 48395]]
brake system requirements. GAO recommended that DOT: (1) When updating
the RIA, take into account potential uncertainty in key variables and
assumptions (e.g., fuel prices and future rail traffic of crude oil and
ethanol), discuss this uncertainty, and present ranges of possible
scenarios; (2) create a plan to collect data from railroads' ongoing
and future operational experiences using ECP brake systems; (3) require
freight railroads to collect and provide data to FRA on their ongoing
operational experience with ECP brake systems if a new requirement were
adopted; and (4) publish information that would allow a third party to
fully assess and replicate the analysis used in support of the HM-251
final rule. In May 2017, GAO produced a separate report \5\ in response
to a congressional inquiry, which further indicated that DOT's
forecasted values for some of the variables associated with the
transportation by rail of crude oil and ethanol (such as the forecasted
number of tank cars used to ship crude oil and ethanol, derailment
rate, average amount of product lost per derailment, and number of
injuries and deaths) may be higher than values realized in 2015 and
2016 based on preliminary data.
---------------------------------------------------------------------------
\4\ DOT's Rulemaking on Electronically Controlled Pneumatic
Brakes Could Benefit from Additional Data and Transparency, GAO-17-
122, Oct. 12, 2016.
\5\ 2015 Electronically Controlled Pneumatic Brake Rule:
Comparison of DOT Forecasts for Selected Data Points for 2015 and
2016 to Preliminary Data for Those Years, GAO-17-567R, May 31, 2017.
---------------------------------------------------------------------------
In October 2017, PHMSA and FRA published a notice of availability
and request for comments (82 FR 48006) on a revised RIA updating the
original RIA associated with the ECP brake provisions. As mandated by
the FAST Act, DOT updated the RIA and made a determination regarding
whether the applicable ECP brake system requirements are economically
justified. Based on that revised analysis, the Department determined
that the expected benefits, including safety benefits, of implementing
ECP brake system requirements do not exceed the associated costs of
equipping tank cars with ECP brake systems, and therefore are not
economically justified. For this reason, PHMSA is issuing this final
rule to remove the ECP brake system requirements from the HMR.
The estimated costs and benefits for the 20-year analysis used in
the final revised RIA are presented in Table 1 (below) in three
different scenarios labeled ``high,'' ``low,'' and ``sensitivity.'' The
three scenarios are based on various levels of future crude oil shipped
by rail, to reflect uncertainty regarding those future volumes and to
evaluate the ECP brake system requirements over a reasonably wide range
of scenarios to determine whether the cost-benefit ratio would be
affected by varying levels of crude oil transportation by rail.
The scenario labeled ``high'' describes a projection in which the
highest crude oil by rail volumes of the three scenarios were produced.
The ``high'' scenario was derived from an analysis by linear regression
of crude oil carloads on crude oil production volumes using data from
2010 through 2016. A similar model was run comparing volumes of ethanol
shipped by rail to ethanol production volumes. The forecasted streams
of rail carloads from both models were then added to obtain the total
forecast carload volume as presented in Table 8.2a of the docketed RIA.
The ``low'' scenario presents a crude oil volume forecast that is
essentially flat at the 5-year average at a lower volume than that
produced by the linear forecast described above. The ``low'' scenario
used the linear forecast model for ethanol as described above to
forecast ethanol carload volumes and used an average of the most recent
5 years for which data is complete (2012-2016) to forecast crude oil
volumes into the future. These years coincide with the emergence of
high crude oil by rail volumes (volumes in excess of 100,000 carloads
per year). The carload figures for this forecast are also presented in
Table 8.2a of the docketed RIA.
Finally, DOT examined a third scenario which forecast crude oil by
rail volumes to continue their recent decline for a few more years and
bottom out at 120,000 carloads per year, which were added to the linear
ethanol forecast volumes as described above in the ``high'' scenario
description. This scenario was presented in the sensitivity analysis
section, and hence was labeled ``sensitivity'' in the table. It
produced the lowest volume crude oil by rail forecast of the three
scenarios, and was intended to capture the potential impacts of
increased pipeline capacity or other factors that might lead to further
declines in crude oil by rail volumes. These scenarios capture a wide
range of future flammable liquids by rail volumes, over which the ECP
brake requirements were evaluated. As can be seen below, and as
reflected in the final updated RIA, the ECP brake system requirements
are not expected to be cost-beneficial under any scenario assessed.
Table 1--Costs and Benefits Over 20 Years
[Millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
7 Percent 3 Percent
-----------------------------------------------------------------------------------------------
Low High Sensitivity Low High Sensitivity
--------------------------------------------------------------------------------------------------------------------------------------------------------
Tank Cars............................................... $237.76 $318.49 $165.00 $256.18 $341.52 $178.39
Locomotives............................................. 105.03 140.42 77.13 110.79 147.39 81.84
Asset Management........................................ 0.52 0.52 0.52 0.52 0.52 0.52
Training................................................ 32.29 32.29 32.29 34.62 34.62 34.62
Total Costs......................................... 375.60 491.72 274.95 402.11 524.05 295.37
Damage Mitigation....................................... 48.16 78.19 37.36 67.19 109.44 52.41
Set Out Reliefs......................................... 5.87 7.46 3.56 8.24 10.55 4.97
Class IA Brake Test..................................... 27.54 46.04 21.68 45.07 65.12 30.24
Wheel Savings........................................... 26.77 37.40 17.87 36.08 52.90 24.93
Fuel Savings............................................ 22.70 28.85 13.79 31.90 40.81 19.23
Total Benefits...................................... 131.03 197.95 94.27 188.49 278.81 131.78
Net Benefits.................................... -244.57 -293.78 -180.68 -213.63 -245.24 -163.59
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 48396]]
II. Good Cause Justification
PHMSA is issuing this final rule without providing an opportunity
for public notice and comment as is normally provided under the
Administrative Procedure Act (APA; 5 U.S.C. 553). The APA authorizes
agencies to dispense with certain notice and comment procedures if the
agency finds good cause that notice and public procedures thereon are
impracticable, unnecessary, or contrary to the public interest. See 5
U.S.C. 553(b)(3)(B). Good cause exists because PHMSA and FRA are
following the procedures established in section 7311 of the FAST Act,
which requires DOT to prepare a draft updated RIA, seek public comment
on the draft updated RIA, prepare a final updated RIA, and make a
determination whether the ECP brake system provisions for HHFUTs were
justified, based on the costs and the benefits. On December 4, 2017,
the Department determined that the ECP brake system provisions in the
HM-251 final rule were not justified. This rulemaking action codifies
that determination. The public was afforded an opportunity to comment
on the revised RIA that formed the basis for determination of whether
the ECP brake system requirements would be removed from the HMR. (See
Section I of this revised final rule.) In this sense, the public has
had an opportunity to provide useful information related to this
regulatory action. However, having come to its determination that the
ECP brake system requirement is not economically justified, PHMSA's
adoption of this rule is non-discretionary.
This final rule addresses a Congressional mandate instructing the
Department to make a determination on whether the ECP brake provisions
in the HM-251 final rule were justified by December 4, 2017. Section
7311 of the FAST Act established a clearly defined procedure for making
that determination. PHMSA's actions in this final rule merely codify
the Department's determination in the HMR.\6\ Publishing a notice of
proposed rulemaking and seeking comment on the proposal would
unnecessarily impede the due and timely execution of PHMSA's regulatory
functions by delaying the codification of a non-discretionary
regulatory action. In making these ministerial amendments to give
effect to the Deparment's determination, PHMSA is not exercising
discretion in a way that could be informed by public comment. As such,
notice and comment procedures are ``impracticable, unnecessary, or
contrary to the public interest'' within the meaning of the APA (5
U.S.C. 553(b)(3)(B)).
---------------------------------------------------------------------------
\6\ The Secretary has delegated this authority to PHMSA. See 49
CFR 1.97.
---------------------------------------------------------------------------
Furthermore, this final rule is effective on the day of publication
in the Federal Register. The APA requires agencies to delay the
effective date of regulations for 30 days after publication, unless the
agency finds good cause to make the regulations effective sooner. See 5
U.S.C. 553(d). As previously discussed, PHMSA finds that good cause
exists to publish this rulemaking without a notice of proposed
rulemaking and opportunity for public comment and to make the
regulations effective prior to 30 days after publication. This rule
simply implements the determination of the Department, which was made
in accordance with the specific process designated in section 7311 of
the FAST Act; therefore, PHMSA would be unable to adjust the text of
the rule to account for any public comment.
III. Section-by-Section Review
Part 174
Section 174.310
Section 174.310 outlines additional safety requirements, such as
routing, speed restrictions, and brake system requirements specific to
HHFTs and HHFUTs. A rail carrier must comply with these additional
requirements if they operate an HHFT or HHFUT as defined in Sec.
171.8. Section 174.310(a)(3) requires advanced brake systems (e.g.,
two-way end-of-train devices, distributive power, and ECP brake
systems) for HHFTs and HHFUTs transporting hazardous materials under
certain conditions. Specifically, Sec. 174.310(a)(3)(ii) requires that
HHFUTs comprised of at least one tank car that is loaded with a Packing
Group (PG) I material and operating at speeds exceeding 30 mph be
equipped with ECP brakes after January 1, 2021. Similarly, paragraph
(a)(3)(iii) requires that all other HHFUTs not described in paragraph
(a)(3)(ii) be equipped with ECP brakes after May 1, 2023, if operating
at speeds exceeding 30 mph. Paragraph (a)(3)(iv) states that each
buffer car in an HHFUT that is not equipped with ECP brakes will be
counted in determining the percentage of cars with effective and
operative brakes, as required under 49 CFR 232.609, which requires that
a train have a minimum percentage of operative brakes. Since the ECP
brake system requirements are being removed, we are removing this
accounting provision as it no longer applies. Lastly, paragraph
(a)(3)(v) allows the use of an alternative brake system with approval
from FRA in accordance with the processes and procedures outlined in 49
CFR part 232, subpart F. The approval provision is also being removed,
as we have determined that restating this option is superfluous, given
that approval provisions for new rail brake system technology are
outlined in 49 CFR part 232, subpart F.
Further, Sec. 174.310(a)(5) outlines requirements for retrofit
reporting by owners of non-jacketed DOT-111 tank cars in PG I service
in an HHFUT. Specifically, paragraph (a)(5)(v) requires owners to
report the number of tank cars built or retrofitted to a DOT-117, 117R,
or 117P specification that are ECP brake-ready or ECP brake-equipped.
Because we are removing the ECP brake system requirements, we are also
deleting the requirement to report those tank cars that are ECP brake
system ready or equipped.
Therefore, as mandated by section 7311 of the FAST Act and based on
our determination that ECP brake system requirements are not justified,
PHMSA is removing the requirements in Sec. 174.310 for high-hazard
flammable unit trains to be equipped with ECP brake systems, for
approval of the use of alternative brake systems, and for retrofit
status reports on ECP brake system readiness and use.
Part 179
Subpart D of title 49, part 179 outlines DOT specification
requirements for non-pressure tank cars including DOT-117s added under
the HM-251 final rule.
Section 179.102-10
Section 179.102-10 outlines ECP brake system capability
requirements consistent with Sec. 174.310 for DOT-117 specification
tank cars. Paragraph (a) requires each rail carrier operating an HHFUT
that is comprised of at least one tank car loaded with a PG I material
must ensure that the train meets the ECP braking capability
requirements by January 1, 2021. Paragraph (b) requires each rail
carrier operating an HHFUT that is not described in paragraph (a) to
ensure that the train meets the ECP braking capability requirements by
May 1, 2023. Paragraph (c) allows the use of an alternative brake
system with approval from FRA. As mandated by the FAST Act and based on
the Departments determination that ECP brake system requirements are
not justified, PHMSA is removing the requirements to ensure that HHFUTs
meet the ECP braking capability requirements. Additionally, the
provision for approval of alternate brake
[[Page 48397]]
systems is being removed, as reference to 49 CFR part 232, subpart F,
is superfluous in the absence of the ECP brake system requirements.
Section 179.202-12
Section 179.202-12 prescribes the performance standard requirements
for DOT-117P tank cars. Paragraph (g)(1) requires rail carriers
operating an HHFUT that is comprised of at least one tank car loaded
with a PG I material to ensure that the train meets the ECP braking
capability requirements by January 1, 2021. Paragraph (g)(2) requires
rail carriers operating an HHFUT not described in paragraph (g)(1) to
ensure that the train meets the ECP braking capability requirements by
May 1, 2023. Paragraph (g)(3) allows the use of an alternative brake
system with approval from FRA. Therefore, as mandated by the FAST Act
and based on the Department's determination that ECP brake system
requirements are not justified, PHMSA is removing the requirements to
ensure that HHFUTs meet the ECP braking capability requirements.
Additionally, the approval provision for alternate brake systems is
being removed, as reference to 49 CFR part 232, subpart F, is
superfluous in the absence of the ECP brake system requirements.
Section 179.202-13
Section 179.202-13 prescribes retrofit standards for existing non-
pressure DOT-117 tank cars. Paragraph (i)(1) requires rail carriers
operating an HHFUT that is comprised of at least one tank car loaded
with a PG I material to ensure the train meets the ECP braking
capability requirements specified in Sec. 174.310 by January 1, 2021.
Paragraph (i)(2) requires rail carriers operating HHFUTs not described
in paragraph (i)(1) to ensure the train meets the ECP braking
capability requirements in Sec. 174.310 by May 1, 2023. Paragraph
(i)(3) allows the use of an alternative brake system with approval from
FRA.
As mandated by the FAST Act and based on the Department's
determination that ECP brake system requirements are not justified,
PHMSA is deleting the requirements to ensure that HHFUTs meet the ECP
braking capability requirements. Additionally, the approval provision
for alternative brake systems is being removed, as reference to 49 CFR
part 232, subpart F, is superfluous in the absence of the ECP brake
system requirements.
IV. Regulatory Analyses and Notices
A. Statutory/Legal Authority for This Rulemaking
This final rule is published under the authority of Federal
Hazardous Materials Transportation Law (Federal Hazmat Law; 49 U.S.C.
5101 et seq.), and the Federal Railroad Safety Laws (49 U.S.C. ch. 201-
213). Section 5103(b) of the Federal Hazmat Law authorizes the
Secretary to prescribe regulations for the safe transportation,
including security, of hazardous material in intrastate, interstate,
and foreign commerce. Section 20103 of the Federal Railroad Safety
Laws, authorizes the Secretary to prescribe regulations and issue
orders for every area of railroad safety.
B. Executive Order 12866, Executive Order 13563, Executive Order 13610,
and DOT Regulatory Policies and Procedures
1. Background
As previously discussed, the HM-251 final rule amended the HMR by
adopting heightened brake system requirements for HHFUTs. Specifically,
it required an HHFUT meeting certain operational and train makeup
conditions to be equipped with and operate an ECP brake system. These
trains were subject to a two-staged implementation schedule. The first
stage required that certain HHFUTs be equipped and operate an ECP brake
system by January 1, 2021. The second stage required remaining trains
be equipped and operate an ECP brake system by May 1, 2023.
The FAST Act instructed GAO to conduct an independent evaluation of
ECP brake systems and DOT to contract with the National Academy of
Sciences (NAS) to conduct testing and analysis on ECP brake systems to
help assess the costs and benefits of the ECP brake system requirements
adopted in the HM-251 final rule. Based on the updated regulatory
impact analysis, which incorporates the findings of GAO and NAS, PHMSA
is removing the ECP brake system requirements for HHFUTs in this final
rule.
2. Executive Orders
This final rule is not a significant regulatory action within the
meaning of Executive Order 12866 (E.O. 12866) and DOT policies and
procedures. See 44 FR 11034 (Feb. 26, 1979). DOT made this
determination by finding that the economic effects of this regulatory
action will not have an effect on the economy that exceeds the $100
million annual threshold defined by E.O. 12866 and that the regulatory
action is not otherwise significant.
In December 2017, DOT prepared and placed an updated Regulatory
Impact Analysis (RIA) in the docket (Docket no. PHMSA-2017-0102-0035)
updating the economic impact of the ECP brake system provisions in the
May 8, 2015, final rule titled ``Enhanced Tank Car Standards and
Operational Controls for High-Hazard Flammable Trains.'' (See 80 FR
26644; HM-251.) The RIA estimated the costs and benefits of the ECP
provisions that were likely to be incurred over a twenty-year period.
DOT estimated the costs and benefits of the final rule using discount
rates of 3 percent and 7 percent.
PHMSA is eliminating the requirement that rail carriers install ECP
brake systems on trains transporting Class 3 flammable liquid hazardous
materials. The FAST Act required DOT to enter into an agreement with
NAS to test ECP brakes and reevaluate the economic analysis supporting
the ECP brake system requirements of the HM-251 final rule. Using the
2017 Final RIA, DOT estimated the net cost savings that will be
realized by removing the ECP brake system requirements. For the 20-year
period analyzed, the estimated net cost savings are between $280.8
million and $354.7 million, discounted at 3 percent, and between $292.7
million and $372.0 million, discounted at 7 percent.
Cost savings of this final rule will be realized in several
categories. First, tank cars would no longer need to be equipped with
ECP brakes. The cost savings projections assume that a large portion of
the existing tank car fleet would have been retrofitted with ECP brake
systems. Second, railroads would not be required to install ECP brake
systems on locomotives. The 2017 RIA assumed that any locomotive
required to be equipped with ECP brakes would have incurred certain
costs to be retrofitted. Third, cost savings will now be realized as
rail carriers will no longer be required to train employees on the use
of ECP brakes. Current employees would have been trained on ECP brakes
within the first three years. Additionally, when new employees started,
they would have been trained on ECP brakes.
In the HM-251 final rule and the updated RIA, DOT estimated that
rail carriers would realize business benefits in several categories
with the implementation of ECP brake systems. First, rail carriers
would receive relief from fewer set-outs (i.e., cars taken out of
service due to a defect). When a car with defective conventional brakes
must be removed from the train, a ``set-out''
[[Page 48398]]
occurs. ECP brake systems would have removed the need for some set-outs
as the train could have traveled to the nearest forward repair location
with a car with defective brakes. Second, trains would be allowed to
travel farther between required brake tests. Third, due to the reduced
wear on wheels, wheelsets would not be replaced as frequently. The
final business benefit was reduced fuel usage. DOT estimated a one
percent reduction in fuel usage due to ECP brake systems.
Since the 2015 ECP brake system requirements are being removed from
the hazmat regulations, rail carriers will no longer receive the
business benefits cited in the 2015 final rule. This offsets some of
the cost savings. Table 2, below, shows the costs savings and
offsetting business benefits by category, and the total net cost
savings.
Table 2--Cost Savings and Offsetting Business Benefits
[Millions of dollars]
----------------------------------------------------------------------------------------------------------------
7 Percent 3 Percent
---------------------------------------------------------------
Low High Low High
----------------------------------------------------------------------------------------------------------------
Tank Cars....................................... $237.76 $318.49 $256.18 $341.52
Locomotives..................................... 105.03 140.42 110.79 147.39
Asset Management................................ 0.52 0.52 0.52 0.52
Training........................................ 32.29 32.29 34.62 34.62
Total Cost Savings.......................... 375.60 491.72 402.11 524.05
Set Out Reliefs................................. 5.87 7.46 8.24 10.55
Class IA Brake Test............................. 27.54 46.04 45.07 65.12
Wheel Savings................................... 26.77 37.40 36.08 52.90
Fuel Savings.................................... 22.70 28.85 31.90 40.81
Total Offsetting Business Benefits.......... 82.87 119.75 121.29 169.37
Total Net Cost Savings...................... 292.73 371.97 280.82 354.68
Annualized Net Cost Savings................. 27.63 35.11 18.88 23.84
----------------------------------------------------------------------------------------------------------------
Using low and high ranges, for the 20-year period of analysis, the
cost savings are between $280.8 million and $354.7 million, discounted
at 3 percent, and between $292.7 million and $372.0 million, discounted
at 7 percent. The annualized net cost savings are between $27.6 million
and $35.1 million, discounted at 7 percent.
Our analysis in response to the FAST Act mandate also assessed the
safety effects of ECP brake systems. Although the tests of ECP brake
system effectiveness mandated by the FAST Act resulted in a lower
safety improvement factor than was used in promulgating the 2015 final
rule, they continued to demonstrate that ECP brake systems are more
effective than conventional brake systems. As a result, deletion of the
ECP brake system requirements from the HMR is forecast to modestly
reduce future safety performance, which may result in larger spill
sizes and associated damages for future derailments than would be the
case if they were maintained.
With the removal of the ECP brake systems requirements from the
2015 rule, the predicted future safety benefits will be foregone.
Estimated discounted values were between $48.2 million and $78.2
million over 20 years at 7 percent, and between $67.2 million and
$109.4 million at 3 percent. Annualized safety benefits were estimated
at between $4.5 million and $7.4 million at both 3 percent and 7
percent discount rates. Table 3, below, shows the safety benefits
estimated for the ECP brake system requirements of the 2015 final rule.
Table 3--2015 Rule Safety Benefits
[Millions of dollars]
----------------------------------------------------------------------------------------------------------------
7 Percent 3 Percent
---------------------------------------------------------------
Low High Low High
----------------------------------------------------------------------------------------------------------------
Safety Benefits................................. $48.16 $78.19 $67.19 $109.44
Annualized...................................... 4.55 7.38 4.52 7.36
----------------------------------------------------------------------------------------------------------------
In the intervening years since the HM-251 final rule, the rail
industry attained significant safety improvements transporting
flammable liquids, with declines in both incident rates and spill size.
C. Executive Order 13771
This final rule is considered an E.O. 13771 deregulatory analysis.
Details on the estimated cost savings of this final rule can be found
above.
D. Executive Order 13132
This final rule has been analyzed in accordance with the principles
and criteria in Executive Order 13132 (``Federalism''). This final rule
does not impose any regulation that has substantial direct effects on
States, the relationship between the National Government and the
States, or the distribution of power and responsibilities among the
various levels of government. While the final rule could act to preempt
State, local, and Indian tribe requirements by operation of law, PHMSA
is not aware of any such requirements that are substantively different
than what is required by the final rule. Therefore, the consultation
and funding requirements of Executive Order 13132 do not apply.
The Federal Hazardous Materials Transportation Law, 49 U.S.C. 5101-
5128, contains express preemption provisions (49 U.S.C. 5125) that
preempt inconsistent State, local, and
[[Page 48399]]
Indian tribe requirements, including requirements on the following
subjects:
(1) The designation, description, and classification of hazardous
materials;
(2) The packing, repacking, handling, labeling, marking, and
placarding of hazardous materials;
(3) The preparation, execution, and use of shipping documents
related to hazardous materials and requirements related to the number,
contents, and placement of those documents;
(4) The written notification, recording, and reporting of the
unintentional release in transportation of hazardous material; or
(5) The design, manufacture, fabrication, marking, maintenance,
recondition, repair, or testing of a packaging or container
represented, marked, certified, or sold as qualified for use in
transporting hazardous material.
This rule addresses item (5) described above and, accordingly,
State, local, and Indian tribe requirements on this subject that do not
meet the ``substantively the same'' standard will be preempted. Federal
preemption also may exist pursuant to Section 20106 of the former
Federal Railroad Safety Act of 1970 (FRSA), repealed, revised,
reenacted, and recodified at 49 U.S.C. 20106, and the former Safety
Appliance Acts (SAA), repealed revised, reenacted, and recodified at 49
U.S.C. 20301-20304, 20306. Section 20106 of the former FRSA provides
that States may not adopt or continue in effect any law, regulation, or
order related to railroad safety or security that covers the subject
matter of a regulation prescribed or order issued by the Secretary of
Transportation (with respect to railroad safety matters) or the
Secretary of Homeland Security (with respect to railroad security
matters), except when the State law, regulation, or order qualifies
under the section's ``essentially local safety or security hazard.''
The former SAA has been interpreted by the Supreme Court as preempting
the field ``of equipping cars with appliances intended for the
protection of employees.'' Southern Ry. Co. v. R.R. Comm'n of Ind., 236
U.S. 439, 446 (1915). The train's power braking system is considered a
safety appliance within the terms of the former SAA. 49 U.S.C.
20302(a)(5).
The Federal Hazardous Materials Transportation Law provides at
Section 5125(b)(2) that, if DOT issues a regulation concerning any of
the covered subjects, DOT must determine and publish in the Federal
Register the effective date of Federal preemption. The effective date
may not be earlier than the 90th day following the date of issuance of
a final rule and not later than two years after the date of issuance.
The effective date of Federal preemption is December 24, 2018. This
effective date for preemptive effect should not conflict with the
overall effective date for this final rule because the regulation of
hazardous materials transport in commerce generally preempts State and
local requirements. Historically, the States and localities are aware
of this preemptive effect and do not regulate in conflict with Federal
requirements in these situations.
D. Executive Order 13175
This final rule has been analyzed in accordance with the principles
and criteria in Executive Order 13175 (``Consultation and Coordination
with Indian Tribal Governments''). Executive Order 13175 requires
agencies to assure meaningful and timely input from Indian tribal
government representatives in the development of rules that have tribal
implications. Because this final rule does not have tribal
implications, the funding and consultation requirements of Executive
Order 13175 do not apply.
E. Regulatory Flexibility Act, Executive Order 13272, and DOT
Procedures and Policies
Section 603 of the Regulatory Flexibility Act (RFA) requires an
agency to prepare an initial regulatory flexibility analysis describing
effects on small entities whenever an agency is required by 5 U.S.C.
553 to publish a general notice of proposed rulemaking for any proposed
rule. Similarly, section 604 of the RFA requires an agency to prepare a
final regulatory flexibility analysis when an agency issues a final
rule under 5 U.S.C. 553 after being required to publish a general
notice of proposed rulemaking.
This action is a non-discretionary final rule addressing
congressional mandates under the FAST Act of 2015. As prior notice and
opportunity for comment under 5 U.S.C. 553 are not required in this
situation, a regulatory flexibility analysis--as would otherwise be
required per 5 U.S.C. 603-604--was not performed. However, as mandated
by the FAST Act, PHMSA reviewed and updated the RIA supporting the HM-
251 final rule, which initially adopted the ECP brake system
requirements. The original RIA found that, while the ECP brake system
requirements from that final rule would have a direct effect on some
small railroads, this effect would not have a significant impact.
Therefore, the repeal of the ECP brake system requirement will create a
limited benefit for a small number of small entities. PHMSA's rationale
is as follows.
``Small entity'' is defined in 5 U.S.C. 601 as including a small
business concern that is independently owned and operated, and is not
dominant in its field of operation. The U.S. Small Business
Administration (SBA) has authority to regulate issues related to small
businesses, and stipulates in its size standards that a ``small
entity'' in the railroad industry is a for-profit ``linehaul railroad''
that has fewer than 1,500 employees, a ``short line railroad'' with
fewer than 500 employees, or a ``commuter rail system'' with annual
receipts of less than $15 million. See ``Size Eligibility Provisions
and Standards,'' 13 CFR part 121, subpart A. Additionally, 5 U.S.C.
601(5) defines as ``small entities'' governments of cities, counties,
towns, townships, villages, school districts, or special districts with
populations less than 50,000. Federal agencies may adopt their own size
standards for small entities, in consultation with SBA and in
conjunction with public comment. Pursuant to that authority, FRA
published a final statement of agency policy that formally defines
``small entities'' or ``small businesses'' as being railroads,
contractors, and hazardous materials shippers that meet the revenue
requirements of a Class III railroad as set forth in 49 CFR 1201.1-1
(i.e., $20 million or less in inflation-adjusted annual revenues) or
commuter railroads or small governmental jurisdictions that serve
populations of 50,000 or less. See 68 FR 24891 (May 9, 2003), codified
at appendix C to 49 CFR part 209. The $20 million-limit is based on the
Surface Transportation Board's revenue threshold for a Class III
railroad. Railroad revenue is adjusted for inflation by applying a
revenue deflator formula in accordance with 49 CFR 1201.1-1. DOT is
using this definition for this rulemaking.
Under the 2015 final rule, any railroad that operates at speeds 30
mph or less, as is the case for most small railroads, would not have
been affected by the ECP brake system requirements. Additionally, as
most small railroads do not travel long distances, this requirement for
reduced speed did not cause any significant impact. Therefore, of the
approximately 690 Class III railroads, most were not affected by the
2015 final rule, and consequently, will not be affected by this final
rule.
Those affected would be small rail carriers that have relatively
short mileage connecting two or more larger rail carriers and that may
operate trains at speeds higher than 30 mph. The impact would not be
significant,
[[Page 48400]]
however, as these entities do not originate HHFUTs, but may serve as a
connecting line between larger railroads or allow the larger rail
carriers to operate HHFUTs over their track. All HHFUTs from larger
rail carriers would be assembled such that locomotives and cars with
ECP brake systems are kept together, precluding speed restrictions
under the 2015 final rule. Furthermore, as this final rule is a
deregulatory action, this small impact would also be beneficial for
small railroads.
F. Unfunded Mandates Reform Act of 1995
This rule does not impose unfunded mandates under the Unfunded
Mandates Reform Act of 1995. It does not result in costs of $155
million or more, adjusted for inflation, to either State, local, or
tribal governments, in the aggregate, or to the private sector in any
one year.
G. Paperwork Reduction Act
PHMSA currently has an approved information collection under OMB
Control Number 2137-0628 titled, ``Flammable Hazardous Materials by
Rail Transportation,'' with an expiration date of March 31, 2019. This
final rule will result in a minor decrease in the time spent to submit
reports pertaining to ECP brake-ready or ECP brake-equipped tank cars,
but does not necessitate the revision of this information collection
package in either the annual burden or cost for changes under part 110.
H. Regulation Identifier Number (RIN)
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulatory or
Deregulatory Actions (``Unified Agenda''). The Regulatory Information
Service Center publishes the Unified Agenda in April and October of
each year. The RIN number contained in the heading of this document may
be used to cross-reference this action with the Unified Agenda.
I. National Environmental Policy Act
The National Environmental Policy Act of 1969 (NEPA), as amended
(42 U.S.C. 4321-4347), requires Federal agencies to consider the
environmental impacts of proposed actions in their decision-making.
However, the FAST Act mandates that the results of the updated
regulatory impact analysis determine whether the ECP brake requirements
remain in place. If the regulatory impact analysis shows that the
benefits exceed the costs of the ECP braking requirements, the FAST Act
requires the Secretary to publish a ``determination,'' in the Federal
Register. If the Secretary is unable to support such a
``determination,'' the FAST Act requires the repeal of the ECP brake
system requirements. Because the final updated regulatory impact
analysis showed that the expected costs of ECP brake system
requirements are greater than the expected benefits, the Department is
required to promulgate this repeal.
The FAST Act removed the Secretary's discretion to consider
anything other than the costs and benefits outlined in the RIA.
Although PHMSA performed a NEPA analysis with respect to the broader
rulemaking, the FAST Act precludes consideration of alternatives and
their environmental effects under NEPA for this repeal.
J. Privacy Act
Anyone may search the electronic form of any written communications
and comments received into any of our dockets by the name of the
individual submitting the document (or signing the document, if
submitted on behalf of an association, business, labor union, etc.).
DOT posts these comments, without edit, including any personal
information the commenter provides, to www.regulations.gov, as
described in the system of records notice (DOT/ALL-14 FDMS), which can
be reviewed at www.dot.gov/privacy.
K. Executive Order 13609 and International Trade Analysis
Under Executive Order 13609 (``Promoting International Regulatory
Cooperation''), agencies must consider whether the impacts associated
with significant variations between domestic and international
regulatory approaches are unnecessary or may impair the ability of
American businesses to export and compete internationally. In meeting
shared challenges involving health, safety, labor, security,
environmental, and other issues, regulatory approaches developed
through international cooperation can provide equivalent protection to
standards developed independently, while also minimizing unnecessary
differences.
Similarly, the Trade Agreements Act of 1979 (Pub. L. 96-39), as
amended by the Uruguay Round Agreements Act (Pub. L. 103-465),
prohibits Federal agencies from establishing any standards or engaging
in related activities that create unnecessary obstacles to the foreign
commerce of the United States. For purposes of these requirements,
Federal agencies may participate in the establishment of international
standards, so long as the standards have a legitimate domestic
objective, such as providing for safety, and do not operate to exclude
imports that meet this objective. The statute also requires
consideration of international standards and, where appropriate, that
they be the basis for U.S. standards.
PHMSA participates in the establishment of international standards
to protect the safety of the American public, and we have assessed the
effects of the proposed rule to ensure that it does not cause
unnecessary obstacles to foreign trade. Accordingly, this rulemaking is
consistent with Executive Order 13609 and PHMSA's obligations under the
Trade Agreement Act, as amended.
L. Executive Order 13211
Executive Order 13211 requires Federal agencies to prepare a
Statement of Energy Effects for any ``significant energy action'' [66
FR 28355; May 22, 2001]. Under the Executive Order, a ``significant
energy action'' is defined as any action by an agency (normally
published in the Federal Register) that promulgates, or is expected to
lead to the promulgation of, a final rule or regulation (including a
notice of inquiry, advance NPRM, and NPRM) that: (1)(i) Is a
significant regulatory action under Executive Order 12866 or any
successor order and (ii) is likely to have a significant adverse effect
on the supply, distribution, or use of energy; or (2) is designated by
the Administrator of the Office of Information and Regulatory Affairs
as a significant energy action.
Although this is a non-significant regulatory action under
Executive Order 12866, PHMSA has evaluated this action in accordance
with Executive Order 13211 and has determined this action will not have
a significant adverse effect on the supply, distribution, or use of
energy. Consequently, PHMSA has determined this regulatory action is
not a ``significant energy action'' within the meaning of Executive
Order 13211.
List of Subjects
49 CFR Part 174
Hazardous materials transportation, Rail carriers, Reporting and
recordkeeping requirements, Security measures.
49 CFR Part 179
Hazardous materials transportation, Incorporation by reference,
Railroad safety, Reporting and recordkeeping requirements.
In consideration of the foregoing, we are amending title 49,
chapter I, subchapter C, as follows:
[[Page 48401]]
PART 174--CARRIAGE BY RAIL
0
1. The authority citation for part 174 continues to read as follows:
Authority: 49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
0
2. In Sec. 174.310, paragraphs (a)(3) and (5) are revised to read as
follows:
Sec. 174.310 Requirements for the operation of high-hazard flammable
trains.
(a) * * *
(3) Braking. Each rail carrier operating a high-hazard flammable
train (as defined in Sec. 171.8 of this subchapter) operating at a
speed in excess of 30 mph must ensure the train is equipped and
operated with either a two-way end-of-train (EOT) device, as defined in
49 CFR 232.5, or a distributed power (DP) system, as defined in 49 CFR
229.5.
* * * * *
(5) Retrofit reporting. Owners of non-jacketed DOT-111 tank cars in
PG I service in an HHFT, who are unable to meet the January 1, 2017,
retrofit deadline specified in Sec. 173.243(a)(1) of this subchapter
are required to submit a report by March 1, 2017, to Department of
Transportation. A group representing owners may submit a consolidated
report to the Department of Transportation in lieu of individual
reports from each tank car owner. The report must include the following
information regarding the retrofitting progress:
(i) The total number of tank cars retrofitted to meet the DOT-117R
specification;
(ii) The total number of tank cars built or retrofitted to meet the
DOT-117P specification;
(iii) The total number of DOT-111 tank cars (including those built
to CPC-1232 industry standard) that have not been modified;
(iv) The total number of tank cars built to meet the DOT-117
specification; and
(v) Entities required to submit a report under this paragraph shall
submit subsequent follow-up reports containing the information
identified in this paragraph within 60 days of being notified by PHMSA
and FRA.
* * * * *
PART 179--SPECIFICATIONS FOR TANK CARS
0
3. The authority citation for part 179 continues to read as follows:
Authority: 49 U.S.C. 5101-5128; 49 CFR 1.81 and 1.97.
Sec. 179.102-10 [Removed]
0
4. In subpart D, Sec. 179.102-10 is removed.
Sec. 179.202-12 [Amended]
0
5. In Sec. 179.202-12, paragraph (g) is removed.
Sec. 179.202-13 [Amended]
0
6. In Sec. 179.202-13, paragraph (i) is removed.
Issued in Washington, DC, on September 18, 2018, under authority
delegated in 49 CFR 1.97.
Howard McMillan,
Executive Director, Pipeline and Hazardous Materials Safety
Administration.
[FR Doc. 2018-20647 Filed 9-24-18; 8:45 am]
BILLING CODE 4910-60-P