Policymakers Need to Consider Impacts of Excessive Regulation on Rail

The derailment of a freight train in East Palestine, Ohio, was a stark reminder that, while essential to our economy, moving hazardous materials across the country comes with risks. 

Most Americans would agree that Congress has a responsibility to exercise its oversight responsibility and look into how the accident happened and take steps to reduce not only the likelihood of future derailments but also the environmental impact of accidents when they do happen.

Congress must also ensure that its actions are rooted in science and data and do everything it can to avoid unintended consequences that could have long-term environmental impacts. 

The freight rail industry plays a pivotal role in our economy, transporting goods essential to our daily lives. Rail has a lower carbon footprint than other transportation modes, making it a more environmentally friendly option for moving cargo from one end of the country to the other.

The data confirms that freight railroads provide the most energy and carbon-efficient mode of cargo transportation available on land. Much of the industry’s success is due to its inherent efficiency in moving cargo at scale and across great distances to customers. Technology advances, such as engine-idle limiters and advanced power distribution, play an important role, too. 

Rail offers a cleaner option for moving cargo than flying or trucking and is a crucial component of moving goods from our ports to brick-and-mortar storefronts. According to the U.S. National Blueprint for Transportation Decarbonization, rail accounts for approximately 28% of U.S. freight movement but only about 2% of U.S. transportation emissions. As the country continues to grow, demand for moving freight is expected to grow by as much as 50% over the next 30 years.

As with any form of transportation, rail accidents can happen due to various factors, including human error, mechanical failure, and other unforeseen circumstances. Unfortunately, no mode of transportation is foolproof, something the recent tragic events in Palestine, Ohio, remind us of. 

As a spotlight of oversight is shone on our national railways, Congress has made stricter safety requirements on trains carrying hazardous materials a top priority in the Railway Safety Act. While many provisions in the legislation are positive, there are also portions that should be revisited.    

While the intention of the act is laudable, the imposition of safety mandates not supported by data raises concerns about unintended consequences that could do more harm than good. Overregulation can stifle innovation, impose unnecessary costs, and reduce an industry’s competitiveness that harms the communities it serves. This is an issue ConservAmerica has raised concerns about before.

The freight rail industry is already heavily regulated by federal agencies such as the Federal Railroad Administration, the Pipeline and Hazardous Materials Safety Administration, and state and local authorities. Given the environmental benefits of transporting cargo by rail, regulation should be targeted to maximize the industry’s benefits and not make them less able to compete with trucking and other forms of transportation freight with higher carbon emissions. 

Heavy trucks are a common mode of transporting goods due to their flexibility and accessibility. However, heavy trucks typically depend on fossil fuels – gasoline and diesel – which emit carbon dioxide when burned. In addition to CO2 emissions, trucks also emit other pollutants, such as nitrogen oxides, particulate matter, and volatile organic compounds, which contribute to air pollution and have negative environmental and health impacts.

The Environmental Protection Agency reports that railroads, which carry more than a third of all U.S. freight by tonnage, contribute less than 1% of the nation’s total greenhouse gas emissions and just 1.9% of all transportation-related emissions. While the rail industry must continue to strive to reduce its impact on communities and the environment, we should recognize the benefits rail currently provides to businesses, the environment, and society, as well as its continued infrastructure investments.  

If policymakers want to prioritize the reduction of carbon emissions in the fight against climate change, they should avoid imposing overly burdensome regulations on one of our most environmentally friendly and efficient modes of transportation. 

When policymakers pick winners and losers by imposing industry-specific regulatory mandates, they often hand competitors an advantage in the marketplace, creating an unlevel playing field for all. Policymakers should consider the potential impacts of excessive regulation on this critical industry and find a collaborative approach that promotes safety, efficiency, and sustainability.