CARB reg 'not feasible' for short lines, California rail exec tells Congress

Modesto & Empire Traction Co. (MET) President and CEO Dillon Olvera testified yesterday on behalf of the American Short Line and Regional Railroad Association at a congressional hearing on the California Air Resource Board's (CARB) new in-use locomotive regulation.

The House Transportation and Infrastructure Committee's Subcommittee on Railroads, Pipelines and Hazardous Materials yesterday held a hearing on the CARB rule, which aims to reduce greenhouse gas emissions by mandating railroads to transition to low and zero-emission locomotives within the next few years. Railroads also would be required to set aside significant revenue in a fund to acquire the new locomotives.

The subcommittee held the hearing as the U.S. Environmental Protection Agency evaluates CARB's request for a federal waiver that would allow it to enforce its new regulation.

ASLRRA and Association of American Railroads say the technology mandated by CARB is not yet ready for railroads to adopt in time to meet the regulation's deadlines. The associations also say that the regulation would drive some smaller railroads out of business.

MET is a private, family-owned short line with 53 miles of track. The railroad provides first- and last-mile rail service to 30 customers in Modesto, California's Central Valley, home to some of the nation's largest food and agriculture shippers. MET connects its customers to BNSF Railway Co. and Union Pacific Railroad.

Many food and agriculture associations, along with business groups, manufacturers and energy firms, have written to the EPA to say that the CARB rule would harm the U.S. agriculture industry and its supply chain, Olvera noted in his written testimony to the subcommittee.

"Like us, these groups all rightly predict that this rule would lead to the elimination of shipping options and increased costs that will come with whatever shipping options remain—costs that would have to be passed on eventually to consumers,” Olvera said.

Short lines in California and througout the country already are working in partnership with state and federal partners to reduce their carbon emissions in realistic ways, including upgrading to cleaner locomotives that test new technology, Olvera said. For example, MET is working on upgrading nine locomotives from Tier Q to Tier 3, locomotives that would have to be scrapped if the short line is forced to comply with the CARB rule.

 “As we have demonstrated, the MET, and short lines in general, are perfectly willing to work with CARB and other similar agencies to reduce emissions when they offer reasonable paths forward, but this rule is just not feasible for short lines,” he said.