Fifteen AGs Filed Petition for Review of Rule Allowing Transport of LNG by Rail

Maryland Attorney General Brian Frosh and New York Attorney General Letitia James led a coalition of 15 attorneys general in filing a petition for review challenging the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) final rule that allows liquefied natural gas (LNG) to be transported on trains of up to 100 rail cars through densely populated areas of the United States. The rule was prompted by an executive order that explicitly directed the Department of Transportation (DOT) to produce a final rule that “would treat LNG the same as other cryogenic liquids and permit LNG to be transported in approved rail tank cars.” The attorneys general had previously submitted comments that highlighted the unacceptable safety risks associated with transporting LNG by rail, and noted the draft rule’s failure to comply with the Administrative Procedure Act, National Environmental Policy Act and Hazardous Materials Transportation Act.

The AGs’ petition was consolidated with two other petitions. After the change in administration, the respondents filed an unopposed motion to pause the case, which the court granted. Meanwhile, AGs pushed PHMSA to suspend the Trump-era rule, and DOT, the parent agency, indicated that it would finalize the suspension by the end of June 2024.

In May 2023, Maryland Attorney General Anthony G. Brown and New York Attorney General Letitia James led a coalition of 15 attorneys general in filing a joint motion to lift abeyance with the Puyallup Tribe of Indians and a coalition of environmental groups.

On October 2023, PHMSA issued a final suspension rule. On October 13, 2023, AG Brown and AG James led the same coalition of 15 attorneys general in filing a brief seeking review of the rule.

After PHSMA filed its respondent brief in January 2024, AG Brown and AG James led the 15 AG-coalition in a reply brief, which was filed on March 21, 2024. In their reply brief, the AGs argued that PHMSA failed to fully consider “the rule’s impact on public safety, greenhouse gas emissions, and environmental justice communities.” Because PHMSA did not engage in “reasoned decisionmaking,” the AGs argued that PHMSA should not be granted agency deference and the LNG by rail rule should be vacated.