Shaw updates Senate panel on NS derailment response

Norfolk Southern Railway President and CEO Alan Shaw yesterday told the U.S. Senate Committee on Commerce, Science and Transportation that NS is developing a long-term medical compensation fund and a plan to provide tailored property-value protection for home sellers impacted by the Feb. 3 train derailment in East Palestine, Ohio.

The hearing was titled "Improving Rail Safety in Response to the East Palestine Derailment." Shaw was called to testify about NS' efforts to clean up the derailment site and provide longer-term support to help East Palestine and nearby communities recover from the disaster.

In addition to Shaw, the committee heard from U.S. Sens. Sherrod Brown (D-Ohio) and JD Vance (R-Ohio), who are the lead sponsors of the Railway Safety Act of 2023, a bill they introduced in response to the derailment. Also testifying were Ohio Gov. Mike DeWine, National Transportation Safety Board Chair Jennifer Homendy, Association of American Railroads President and CEO Ian Jefferies, Ohio State SMART-TED Legislative Director Clyde Whitaker, Ohio Western Reserve Joint Fire District Chief David Comstock and East Palestine resident Misti Allison.

Yesterday's hearing was the second time in recent weeks that Shaw was called to Capitol Hill to testify on the derailment and the company's response during and after. As he did in his previous testimony, he began his remarks yesterday by apologizing for the derailment.

Shaw also provided an update on the company's work with the U.S. Environmental Protection Agency to continue cleaning up the site and the ongoing monitoring of air and water quality to reassure area residents of safety.

He also described NS' community support activities, which have included an initial investment of more than $24 million to support local families and reimburse fire departments, first responders and state agencies for derailment-related costs. In addition, the company has made donations to local schools and community organizations.

As he has said before, Shaw told the committee that the contributions to date are "just a start" on the company's commitment to helping the area recover from the derailment and its aftermath.

"We are also listening closely to concerns from the community about whether there could be long-term impacts from the derailment," Shaw said. "Many residents are worried about what they will do if health impacts related to the derailment are discovered years from now. To date, environmental monitoring continues to show the air and drinking water are safe. To provide an additional level of assurance, we are committed to a solution that addresses long-term health risks through the creation of a long-term medical compensation fund."

In addition, NS is aware of residents' concerns about the derailment's impact on their home values, Shaw said.

"We are committed to working with all relevant stakeholders to provide tailored protection for home sellers if their property loses value due to the impact of the derailment," he said.

The long-term medical fund and property value-related assistance are two new initiatives announced since Shaw's March 9 testimony to the Senate Committee on Environment and Public Works.

Yesterday, Shaw reiterated the steps that NS has taken since the derailment to improve the safety of its operations as well as in the industry. While the company supports some of the provisions in the Railway Safety Act, Shaw — when pressed by U.S. Sen. Amy Klobuchar (D-Minn.) — would not identify the provisions in the bill his company would not support.

In his testimony, Shaw said NS does support the bill's call for more industry-funded training for first responders; triennial reviews of regulations for rail-car inspections and standards for freight-car safety; and accelerating the phaseout of older tank car models.

"There are also areas in which we believe Congress could go further with safety legislation. We encourage even stricter standards for tank car design," Shaw said. "There are significant opportunities for advanced technology to enhance rail safety, and we encourage Congress to consider additional research into on-board rail car defect detection technology."

Shaw's testimony can be read in its entirety here.