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Oil, rail industries want 7 years to fix tank cars

The Associated Press | Hagadone News Network | UPDATED 10 years, 9 months AGO
by The Associated Press
| October 1, 2014 8:00 PM

 WASHINGTON (AP) — The oil and railroad industries are urging federal regulators to allow them as long as seven years to upgrade existing tank cars that transport highly volatile crude oil, a top oil industry official said Tuesday. The cars have ruptured and spilled oil during collisions, leading to intense fires.

Jack Gerard, president of the American Petroleum Institute, told reporters that his group and the Association of American Railroads are jointly asking the Transportation Department for six months to 12 months for rail tank car manufacturers to gear up to overhaul tens of thousands of cars and another three years to retrofit older cars.

The two industries, at odds until recently over how best to prevent oil train collisions and fires, also want three years after that to upgrade newer tank cars manufactured since 2011, known as “1232 cars,” he said.

The Transportation Department is weighing tougher safety regulations for rail shipments of crude, including stronger tank cars, slower train speeds and more advanced train braking systems. In July, the department proposed that older cars be retrofitted within two years.

The longer retrofit timeline reflects the need to allow tank-car makers time to expand their operations while still producing new tank cars, Gerard said.

The government’s more aggressive timeline could hurt consumers by disrupting the production and transportation of goods including chemicals, gasoline, crude oil and ethanol, he said. All are shipped in the same type of tank cars under government regulations.

The oil and railroad industries have made concessions to agree on a safer design for newly manufactured cars. The design adds safety features including “thermal blankets” between the shell of the tank car and an outer jacket.

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