Report: Industry proposes to phase out older tank cars

The oil industry and the railroad companies responsible for transporting crude oil, have offered U.S. regulators a plan that would phase out the type of older tanks cars connected to recent fiery derailments.

The proposal comes after pressure on Capitol Hill and in states impacted by crude-by-rail crashes has increased, raising expectations that regulators will update standards for the oil tankers transporting the product.

{mosads}The plan also requires slightly thicker walls for new cars to protect them from punctures, according to people close to the proposal, Bloomberg reports.

All parties agreed to trash thousands of DOT-111s tank cars within three years if manufacturers say they can replace or retrofit the cars in that timeframe.

Prominent oil lobby American Petroleum Institute and the Association of American Railroads met with officials of the Transportation Department and White House Office of Management and Budget to talk about the plan, sources told Bloomberg News.