U.S. gives railways time on car upgrades

WASHINGTON — The Obama administration revised its proposal to prevent oil trains from catching fire in derailments, giving companies more time to upgrade their fleets, but sticking with a requirement that new tank cars have thicker walls and better brakes.

The changes, described by three people familiar with the proposal who asked not to be identified because the plan has not been made public, are in proposed regulations the U.S. Transportation Department sent to the White House last week for review prior to being released.

The administration is revising safety standards after a series of oil-train accidents, including a 2013 disaster in Canada that killed 47 people when a runaway train derailed and blew up. Earlier this month a train carrying ethanol derailed and caught fire outside of Dubuque, Iowa. No one was hurt.

Companies that own tank cars opposed the aggressive schedule for modifying cars in the DOT’s July draft, saying it would have cost billions of dollars and could slow oil production. That plan gave companies two years to retrofit cars hauling the most volatile crude oil, including from North Dakota’s booming Bakken field.

Railroads and oil companies fought the brake requirement and proposed a standard for the steel walls that was thinner than suggested by the agency.

Karen Darch, the mayor of the Chicago suburb of Barrington, Illinois, and an advocate for safer cars, said she was encouraged that the rules included stronger tank cars and upgraded brakes. She disagreed with adding years to the retrofit deadline.

“Taking more time on something that’s already taken too long is problematic,” Darch said.

Officials in the President Barack Obama’s Office of Management and Budget could change the proposal before the final version is released, probably in May. Darius Kirkwood, a spokesman at the Pipeline and Hazardous Materials Safety Administration, the Transportation Department unit that wrote the rule, said he couldn’t comment on a proposed rule.

“The department has and will continue to put a premium on getting this critical rule done as quickly as possible, but we’ve always committed ourselves to getting it done right,” Transportation Secretary Anthony Foxx said this month in a statement about the timing of the safety rule.