FRA's estimated cost, impact of train-crew rule is way off, U.S. SBA says

The Federal Railroad Administration should revise and republish its initial regulatory flexibility analysis (IRFA) on its proposed two-person train crew rule because the agency "significantly understated" the potential impact on small businesses, the U.S. Small Business Administration says.

In a recent letter to FRA Administrator Amit Bose, the SBA Office of Advocacy said the FRA underestimated the cost to and number of short lines that would be affected by its proposal.

The FRA estimated only seven short lines now operate with just one crew member in a locomotive, and those railroads would be eligible to apply for a waiver under the rule. However, according to the American Short Line and Regional Railroad Association (ASLRRA), there are 420 short lines operating with one crew member in the locomotive, SBA officials noted.

"If several hundred petitions for special approval would have to be filed, this could dramatically increase the cost to both small entities and the agency to process these petitions," the SBA letter states. "Further, ASLRRA reports that a significant number of small businesses would be ineligible to petition for special approvals because they haul hazardous materials above designated thresholds."

Moreover, speakers at a December public hearing on the proposed rule noted that the FRA's estimated costs don't include labor and other expenses that small railroads would incur if required to hire and train new crew members.

The SBA recommended that the FRA revise its IRFA to fully count the number of small entities that would be affected and their economic impact. The FRA also should consider alternatives to achieve its objectives while minimizing the costs to small business.

The SBA's letter was submitted among thousands of comments the FRA has received regarding its proposed rule.