{"id":1327,"date":"2018-02-27T00:00:00","date_gmt":"2018-02-27T00:00:00","guid":{"rendered":"https:\/\/www.trccompanies.com\/insights\/the-epas-risk-management-program-for-railroads-and-the-incident-to-transportation-exemption\/"},"modified":"2026-03-13T12:39:24","modified_gmt":"2026-03-13T12:39:24","slug":"the-epas-risk-management-program-for-railroads-and-the-incident-to-transportation-exemption","status":"publish","type":"news-and-insights","link":"https:\/\/www.trccompanies.com\/fr\/insights\/the-epas-risk-management-program-for-railroads-and-the-incident-to-transportation-exemption\/","title":{"rendered":"The EPA\u2019s Risk Management Program for Railroads and the \u201cIncident to Transportation\u201d Exemption"},"content":{"rendered":"<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white\">\n    <div class=\"container-fluid\">\n        \n        <div class=\"row\">\n                            <div class=\"col-lg-8 columns js-animated-content animated-content\">\n                                        <p>A recent court ruling in North Carolina has underscored the need for companies that store flammable and toxic gases in railroad cars \u2013 even on a temporary basis \u2013 to make sure they\u2019re complying with state and federal regulations.<\/p>\n<p>According to the Environmental Protection Agency, parked railroad cars containing hazardous substances are considered \u201cstationary sources\u201d after a few days of sitting idle. At that point the \u201cincident to transportation\u201d exemption may no longer apply, so a Risk Management Plan would need to be developed for the railcars and submitted to the EPA. Failure to do so can lead to penalties and fines and make an entity more vulnerable to expensive litigation in the event of a disaster.<\/p>\n                <\/div>\n                <div class=\"col-lg-4 columns js-animated-content animated-content\">\n                                        <div class=\"wysiwyg__links js-animated-content animated-content\">\n                        <div class=\"wysiwyg__links__top \">\n                                                        <h4>Related Services<\/h4>\n                                                                                    <ul class=\"js-animated-content animated-content\">\n                                                                <li><a href=\"https:\/\/www.trccompanies.com\/markets\/transportation\/rail-transit\/\" target=\"_self\">Rail and Transit<\/a><\/li>\n                                                            <\/ul>\n                                                    <\/div>\n                                                                                                            <div class=\"wysiwyg__links__bottom\">\n                                    <a href=\"https:\/\/www.trccompanies.com\/services\" target=\"_self\">View All Services<\/a>\n                                <\/div>\n                                                                                                <\/div>\n                <\/div>\n                    <\/div>\n\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-light-gradient\">\n    <div class=\"container-fluid\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                                                                        <div class=\"col-lg-4 \">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <h2>Background<\/h2>\n<p>Last May the North Carolina Office of Administrative Hearings ruled that railcars filled with flammable gas that were staged on a siding were subject to the EPA\u2019s Risk Management Program (Title 40 of the Code of Federal Regulations Part 68 [40CFR 68]) and similar state regulations.<\/p>\n<p>The case involved the Aberdeen Carolina &amp; Western Railway (ACW), a regional freight railroad that runs 150 miles across North Carolina. In recent years the railroad had been staging railcars filled with butane on a storage track near a residential area for extended periods \u2013 anywhere from 168 days in 2012 to 360 days in 2015.<\/p>\n                            <\/div>\n                        <\/div>\n                                                                                <div class=\"col-lg-4 columns\">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <p>The track was leased by the owner of the butane, and North Carolina environmental officials said this amounted to ACW running a \u201cbutane warehouse.\u201d State officials took action against the railroad and were backed by the EPA.<\/p>\n<p>\u201cACW\u2019s storage of butane-filled railcars for extended periods of time while disconnected from locomotive power qualifies these railcars as a \u2018stationary source\u2019 under 40 CFR Part 68,\u201d testified James Belke, EPA\u2019s National Policy Coordinator for the Risk Management Program. \u201c[And] whether or not the entity responsible for the storage of the containers is a railroad common carrier does not determine whether the railcars are considered a stationary source.\u201d<\/p>\n                            <\/div>\n                        <\/div>\n                                                                                <div class=\"col-lg-4 columns\">\n                                                        <div class=\"js-animated-content animated-content\">\n                                <p>The court agreed.<\/p>\n<p>\u201cThe Court finds this to be a logical interpretation,\u201d wrote Administrative Law Judge J. Randall May. \u201cIt would be odd indeed if EPA\u2019s interpretation permitted facilities to circumvent RMP requirements by contracting with railroads to store their railcars on nearby tracks for months at a time.\u201d<\/p>\n<p>While the EPA hasn\u2019t defined \u201cextended periods,\u201d the unofficial rule of thumb is more than 4-5 days \u2013 which the agency considers more than enough time for railroad operators to stage cars in a railyard, hook them up to a new locomotive and send them off to their next destination.<\/p>\n                            <\/div>\n                        <\/div>\n                                                                    <\/div>\n\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/wysiwyg -->\n\n<section class=\"wysiwyg section-padding bg-white-fog\">\n    <div class=\"container-fluid\">\n                    <div class=\"wysiwyg__wrapper\">\n        \n        <div class=\"row\">\n                        <div class=\"col-lg-12\">\n                                                                                \n                                                <\/div>\n\n                            <div class=\"col-lg-12 js-animated-content animated-content\">\n                    <h2>What Does This Mean?<\/h2>\n<p>In accordance with the Clean Air Act,\u00a0<a href=\"https:\/\/www.epa.gov\/rmp\/risk-management-plan-rmp-rule-overview\" target=\"_blank\" rel=\"noopener noreferrer\">the Risk Management Program<\/a>\u00a0applies to stationary sources (facilities including rail sidings, storage tracks and railyards) using one or more of the 254 regulated substances that may cause death, injury, or serious adverse effects to human health or the environment if released. By \u201cusing,\u201d the EPA means \u201cany activity involving a regulated substance including any use, storage, manufacturing, handling or on-site movement of such substances, or combination of these activities\u201d (40 CFR 68.3).<\/p>\n<p>The regulated substances include flammable gases (propane, ethane, butane, ethylene oxide, propylene oxide, etc.) and toxic gases (anhydrous ammonia, chlorine, methyl isocyanate, etc.) that typically meet or exceed the threshold quantity of 10,000 pounds, although some substances may have lower or higher thresholds.<\/p>\n<p>Based on the location of a stationary source, it will be classified into one of three Program Levels:<\/p>\n<ul>\n<li>Level 1 applies when a worst-case release is not expected to affect the public based on the EPA\u2019s models<\/li>\n<li>Level 2 applies to facilities that do not meet the criteria for Level 1 or Level 3.<\/li>\n<li>Level 3 applies to facilities where the processes are subject to the Occupational Safety and Health Administration\u2019s Process Safety Management regulations (29 CFR 1910.119) or facilities classified in one of 10 specified North American Industrial Classification System (NAICS) codes.<\/li>\n<\/ul>\n<p>Regardless of level, the facility must develop and implement a Risk Management Program that includes a Risk Management Plan (RMP) with the following:<\/p>\n<ul>\n<li>Hazard assessment describing potential effects of an accidental release, the accident history over the last five years and an evaluation of worst-case and alternative accidental release scenarios.<\/li>\n<li>Accident prevention program with written procedures for safety precautions and maintenance, monitoring, and employee training measures.<\/li>\n<li>Emergency response program with written procedures for emergency health care, employee training measures, and procedures for informing the public and response agencies (such as the local fire department) in the event of an accident.<\/li>\n<\/ul>\n<p>The RMP must be submitted to the EPA and reviewed, revised as needed and resubmitted every five years.\u00a0 Failure to develop and implement an RMP may results in a Notice of Violation and civil penalties.<\/p>\n                <\/div>\n                                <\/div>\n\n                    <\/div>\n            <\/div>\n<\/section>\n<!-- End Block: acf\/wysiwyg -->\n\n<!-- Start Block: acf\/innerpage-half-text-half-image -->\n\n\n<section class=\"half-and-half flex-row section-padding image-block-left bg-white text-column-one image-size-cover\">\n    <div class=\"half-and-half-image\">\n        <div class=\"half-and-half-image__wrap\">\n                                                <img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-1024x683.jpg\" class=\"object-fit\" alt=\"Diverse workers navigating warehouse aisle discussing\" srcset=\"https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-1024x683.jpg 1024w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-300x200.jpg 300w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-768x512.jpg 768w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-1536x1024.jpg 1536w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-2048x1366.jpg 2048w, https:\/\/www.trccompanies.com\/wp-content\/uploads\/2024\/10\/GettyImages-2173958891-900x600.jpg 900w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>                                    <\/div>\n    <\/div>\n    \n    <div class=\"half-and-half-text\">\n        <div class=\"half-and-half-text__wrapper js-animated-content animated-content\">\n                                        <h2>One More Thing<\/h2>\n<p>The 254 regulated substances are also subject to\u00a0<a href=\"https:\/\/www.trccompanies.com\/fr\/insights\/new-issues-emerge-regarding-chemical-security\/\" target=\"_blank\" rel=\"noopener noreferrer\">the Department of Homeland Security\u2019s Chemical Facility Anti-Terrorism Standards (CFATS; 6 CFR 27)<\/a>, and EPA shares its database of regulated facilities with DHS. Not only are the EPA and DHS chemical lists similar (DHS\u2019s list includes additional substances not on the RMP list), but the\u00a0<a href=\"https:\/\/www.trccompanies.com\/projects\/dcamm-security-systems-needs-assessment-audit-study\/\" target=\"_blank\" rel=\"noopener noreferrer\">threshold amounts are typically, but not always, the same<\/a>.\u00a0 One notable exception is for propane, which has an RMP threshold of 10,000 pounds and a CFATS threshold of 60,000 pounds.<\/p>\n<p>If a facility is subject to CFATS, at a minimum it will need to submit a Top Screen survey to DHS.\u00a0 Depending on the results of the DHS review of the Top Screen survey, the facility may need to prepare a Security Vulnerability Assessment and develop and implement a Site Security Plan that addresses up to 18 Risk Based Performance Standards to ensure that the security is adequate for the materials at the facility.<\/p>\n<p>TRC will continue to monitor the <a href=\"https:\/\/www.trccompanies.com\/markets\/transportation\/rail-transit\/freight-and-passenger-rail\/\">applicability of these regulations to railroad operations<\/a> and note any changes in the interpretations by the EPA or DHS.\u00a0 Although decisions from any future court rulings cannot be known, we do not expect that railroads will be exempt from the regulatory requirements of the RMP Program and CFATS.\u00a0 Therefore, railroads will need to perform the required assessments and develop and maintain the required plans, training and emergency readiness. Preparing now will ensure regulatory and operational success, and independent experts can help identify gaps in the current programs and areas for improvement to reduce potential liabilities.<\/p>\n                    <\/div>\n    <\/div>\n<\/section>\n<!-- End Block: acf\/innerpage-half-text-half-image -->\n\n<!-- Start Block: acf\/innerpage-number-line -->\n<section class=\"number-text section-margins\">\n    <div class=\"container-fluid\">\n        <div class=\"number-text__top-content js-animated-content animated-content\">\n            <div class=\"number-text__heading\">\n                <h2>Next Steps<\/h2>\n            <\/div>\n            <div class=\"number-text__heading-text hidden-xs-down\">\n                            <\/div>\n        <\/div>\n    <\/div>\n        <div class=\"number-text__wrap number-wrapper-center js-animated-content animated-content\">\n                <div class=\"number-text__list\">\n            <div class=\"number-text__number\">\n                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href=\"https:\/\/www.trcsolutions.com\/services\/infrastructure-services\/railroad-services\" target=\"_blank\" rel=\"noopener noreferrer\">railroad consulting<\/a>\u00a0needs.<\/p>\n            <\/div>\n        <\/div>\n                <div class=\"number-text__list\">\n            <div class=\"number-text__number\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/mob-number-2.png\" alt=\"\" class=\"img-responsive hidden-sm-up\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/tab-number-2.png\" alt=\"\" class=\"img-responsive hidden-xs-down hidden-lg\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/two.png\" alt=\"\" class=\"img-responsive hidden-md-down\">\n            <\/div>\n            <div class=\"number-text__text\">\n                <h5><\/h5>\n                <p><a href=\"https:\/\/view.joomag.com\/trc-corporate-brochure\/0576770001494261605?short\" target=\"_blank\" rel=\"noopener noreferrer\">Check out our corporate brochure<\/a>\u00a0to see why TRC has been a groundbreaking engineering, environmental consulting and construction management firm since the 1960s.<\/p>\n            <\/div>\n        <\/div>\n                <div class=\"number-text__list\">\n            <div class=\"number-text__number\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/mob-number-3.png\" alt=\"\" class=\"img-responsive hidden-sm-up\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/tab-number-3.png\" alt=\"\" class=\"img-responsive hidden-xs-down hidden-lg\">\n                <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/three.png\" alt=\"\" class=\"img-responsive hidden-md-down\">\n            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        <img decoding=\"async\" src=\"\/wp-content\/themes\/trccompanies\/assets\/img\/number-images\/four.png\" alt=\"\" class=\"img-responsive hidden-md-down\">\n            <\/div>\n            <div class=\"number-text__text\">\n                <h5><\/h5>\n                <p>Share your thoughts on this post or ask us a question in the comments section at the bottom of the page.<\/p>\n            <\/div>\n        <\/div>\n            <\/div>\n    <\/section>\n<!-- End Block: acf\/innerpage-number-line -->","protected":false},"excerpt":{"rendered":"<p>A recent court ruling serves as an important reminder that railroads shouldn&rsquo;t be parking tankers containing hazardous substances for more than just a few days.<\/p>\n","protected":false},"featured_media":13026,"template":"","tags":[613,294],"news-and-insights-category":[363],"services-category":[992],"custom_category":[1011],"class_list":["post-1327","news-and-insights","type-news-and-insights","status-publish","has-post-thumbnail","hentry","tag-infrastructure-and-transportation","tag-rail-and-transit","news-and-insights-category-insights","services-category-transportation","custom_category-transportation-markets"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The EPA\u2019s Risk Management Program for Railroads and the \u201cIncident to Transportation\u201d Exemption - TRC Companies<\/title>\n<meta name=\"description\" content=\"A recent court ruling serves as an important reminder that railroads shouldn&#039;t be parking tankers containing hazardous substances for more than just a few days.\" \/>\n<meta name=\"robots\" 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