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Rail News Home Rail Industry Trends

4/8/2011



Rail News: Rail Industry Trends

PTC, haz-mat and truck size were hot topics at railroad subcommittee's regulatory reform hearing


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Yesterday, 19 witnesses provided testimony at a hearing conducted by the House Subcommittee on Railroads, Pipelines and Hazardous Materials on ways to reduce regulatory burdens in the next surface transportation reauthorization measure. The House Transportation and Infrastructure Committee is preparing to draft major transportation and jobs legislation that would include policy reforms aimed at improving rail and hazardous materials transportation.

Titled “Railroad and Hazardous Materials Transportation Programs: Reforms and Improvements to Reduce Regulatory Burdens,” the hearing enabled subcommittee members to obtain testimony from key rail stakeholders regarding legislative priorities for changes or reforms, particularly in the areas of intercity passenger rail, high-speed rail, and rail safety and financing, said Rep. Bill Shuster (R-Pa.), who chairs the subcommittee, in a prepared statement.

The subcommittee aims to ensure that “the federal government does not get in the way of safe, effective transportation and commerce in the United States,” he said.

During his testimony, Association of American Railroads President and Chief Executive Officer Ed Hamberger called on Congress to continue supporting grade crossing safety programs, short line tax credits and policies that encourage public-private partnerships for rail infrastructure as it considers reauthorizing the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, or SAFETEA-LU. He also urged congressmen to reject policies that “undermine railroads’ ability to compete or invest in infrastructure,” such as the “overly broad” positive train control (PTC) mandate, potential liabilities associated with railroads’ continued obligation to carry hazardous materials, and laws that allow bigger and heavier trucks on the nation’s highways.
 
“America’s freight railroads operate on infrastructure that they own, build, maintain and pay for almost entirely by themselves, unlike trucks that operate on publicly financed highways,” said Hamberger. “The taxes trucks pay today do not come close to covering the costs associated with their use of the infrastructure that the public provides, [which] puts railroads at a competitive disadvantage that will only grow worse if existing truck size and weight limits are increased.”

Meanwhile, Railway Supply Institute President Tom Simpson testified that decisions made during the debate over reauthorizing SAFETEA-LU “will have a profound effect on the rail supply industry,” which is just beginning to register a “modest recovery from the downturn.”

Simpson shared RSI’s recommendations that would provide “more certainty” in the marketplace, continue to ensure public safety and stimulate intercity passenger-rail development, he said. The five recommendations include:
• passing the Surface Transportation Safety Act, which, among other safety initiatives, would help preserve the Section 130 grade crossing program in the next surface transportation bill at $220 million per fiscal year;
• funding Operation Lifesaver Inc.’s crossing and safety program at the “current modest level” of $560,000 per year;
• supporting an initiative to develop a dedicated, multi-year passenger-rail funding proposal and clarifying Buy America regulations;
• avoiding legislation that would allow larger truck sizes and weights; and
• enacting legislation that provides tax incentives for projects that expand freight-rail capacity and help short lines remain competitive.

Testifying on behalf of the American Chemistry Council (ACC), DuPont North American Logistics Manager Mary Pileggi stressed the importance of maintaining a uniform national system of haz-mat transportation regulation to ensure that training, transportation equipment, emergency preparedness “and all other aspects of haz-mat distribution are consistent across the nation.”

Because the U.S. Department of Transportation, and possibly Congress, will reconsider important aspects of the current PTC rule, the ACC also supports “finding less burdensome means to achieve the safety objectives” of the Rail Safety Improvement Act, she said.

“As that effort moves forward, whether it be through regulation or legislation, any changes to the implementation of the PTC rule must remain consistent with the common carrier obligation, and allow chemical producers to ship products where our customers need them, now and in the future,” said Pileggi. “It is also critically important to ensure that the costs of implementing PTC technologies are allocated fairly across the board.”

However, Brotherhood of Locomotive Engineers and Trainmen (BLET) National Vice President and Interim Director of Regulatory Affairs Stephen Bruno testified about the “hypocrisy” of railroads’ position on PTC.

“The railroads’ suggestion that they will implement other alternative safety practices and devices that will provide an equivalent level of safety is a disingenuous statement,” he said. “These technologies have been available for decades and they are now only proposing to install them to avoid the PTC mandate. If the PTC mandate is removed, the railroads’ incentive to install these alternatives is likewise removed.”

Bruno also urged the subcommittee to consider taking up the BLET’s technical corrections to the hours-of-service portion of the Rail Safety
Improvement Act.

United Transportation Union National Legislative Director James Stem addressed hours-of-service concerns, too, and stressed that the single most important action Congress and the Federal Railroad Administration can take to improve rail safety — especially in haz-mat transportation — is to eliminate train-crew fatigue and provide predictable start times for crew members.

“One small improvement that will make a tremendous difference in the safety for all train operations is simply to move the required 10 hours of undisturbed rest from immediately following service to immediately preceding service," said Stem. “The minimum of 10 hours of notification before reporting for 12 hours or more of safety critical service will allow operating employees to get their proper rest prior to reporting for duty so they can safety and alertly operate their train while on duty.”