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LNG Rail Rule Blocked

A U.S. appeals court has vacated a 2020 Department of Transportation rule permitting LNG transportation by rail due to safety concerns and a lack of environmental review. The court ruled that the Pipeline and Hazardous Materials Safety Administration (PHMSA) acted “arbitrarily” in bypassing a full environmental impact statement. Critics emphasized the risks of LNG rail shipments, equating the energy in 22 tank cars to an atomic bomb. Concerns about unrestricted train sizes and speeds added weight to the decision.

The Biden administration had already suspended the rule, aligning with its climate policies, and the PHMSA indicated no new rule will be finalized before mid-2025. While this regulatory uncertainty persists, TLC is actively adapting to evolving safety and environmental standards. Our commitment to proactive compliance ensures that your freight operations remain resilient and efficient. Reach out to TLC to strategize your freight solutions amidst this shifting regulatory landscape.

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