"America Builds: Examining America's Freight and Passenger Rail Network"
Hearing•House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials•Jan 23, 2025 · 10:00 AM
Summary
House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials held a hearing on Jan 23, 2025 at 10:00 AM in Rayburn House Office Building, Room 2167. 4 witnesses appeared.
Record
The meeting has its video, its transcript, witnesses and documents on the record.
Video
The proceedings, as the committee streamed them.
Transcript
The transcript runs to 6,613 lines and 373,357 characters, as the Government Publishing Office printed it.
1[House Hearing, 119 Congress]2[From the U.S. Government Publishing Office]34 AMERICA BUILDS: EXAMINING AMERICA'S5 FREIGHT AND PASSENGER RAIL NETWORK67=======================================================================89 (119-3)1011 HEARING1213 BEFORE THE1415 SUBCOMMITTEE ON RAILROADS, PIPELINES,16 AND HAZARDOUS MATERIALS1718 OF THE1920 COMMITTEE ON21 TRANSPORTATION AND INFRASTRUCTURE22 HOUSE OF REPRESENTATIVES2324 ONE HUNDRED NINETEENTH CONGRESS2526 FIRST SESSION2728 __________2930 JANUARY 23, 20253132 __________3334 Printed for the use of the35 Committee on Transportation and Infrastructure3637[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]3839 Available online at: https://www.govinfo.gov/committee/house-40 transportation?path=/browsecommittee/chamber/house/committee/41 transportation4243 __________4445 U.S. GOVERNMENT PUBLISHING OFFICE4659-680 PDF WASHINGTON : 20254748-----------------------------------------------------------------------------------4950 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE5152 Sam Graves, Missouri, Chairman53 Rick Larsen, Washington, Ranking Member5455Eleanor Holmes Norton, Eric A. ``Rick'' Crawford,56 District of Columbia Arkansas,57Jerrold Nadler, New York Vice Chairman58Steve Cohen, Tennessee Daniel Webster, Florida59John Garamendi, California Thomas Massie, Kentucky60Henry C. ``Hank'' Johnson, Jr., Georgiaott Perry, Pennsylvania61Andre Carson, Indiana Brian Babin, Texas62Dina Titus, Nevada David Rouzer, North Carolina63Jared Huffman, California Mike Bost, Illinois64Julia Brownley, California Doug LaMalfa, California65Frederica S. Wilson, Florida Bruce Westerman, Arkansas66Mark DeSaulnier, California Brian J. Mast, Florida67Salud O. Carbajal, California Pete Stauber, Minnesota68Greg Stanton, Arizona Tim Burchett, Tennessee69Sharice Davids, Kansas Dusty Johnson, South Dakota70Jesus G. ``Chuy'' Garcia, Illinois Jefferson Van Drew, New Jersey71Chris Pappas, New Hampshire Troy E. Nehls, Texas72Seth Moulton, Massachusetts Tracey Mann, Kansas73Marilyn Strickland, Washington Burgess Owens, Utah74Patrick Ryan, New York Eric Burlison, Missouri75Val T. Hoyle, Oregon Mike Collins, Georgia76Emilia Strong Sykes, Ohio, Mike Ezell, Mississippi77 Vice Ranking Member Kevin Kiley, California78Hillary J. Scholten, Michigan Vince Fong, California79Valerie P. Foushee, North Carolina Tony Wied, Wisconsin80Christopher R. Deluzio, Pennsylvania Tom Barrett, Michigan81Robert Garcia, California Nicholas J. Begich III, Alaska82Nellie Pou, New Jersey Robert P. Bresnahan, Jr.,83Kristen McDonald Rivet, Michigan Pennsylvania84Laura Friedman, California Jeff Hurd, Colorado85Laura Gillen, New York Jefferson Shreve, Indiana86Shomari Figures, Alabama Addison P. McDowell, North87 Carolina88 David J. Taylor, Ohio89 Brad Knott, North Carolina90 Kimberlyn King-Hinds,91 Northern Mariana Islands92 Mike Kennedy, Utah93 Robert F. Onder, Jr., Missouri94 Vacancy9596 Subcommittee on Railroads, Pipelines, and Hazardous Materials9798 Daniel Webster, Florida, Chairman99Dina Titus, Nevada, Ranking Member100Andre Carson, Indiana David Rouzer, North Carolina101Seth Moulton, Massachusetts Mike Bost, Illinois102Valerie P. Foushee, North Carolina Doug LaMalfa, California103Christopher R. Deluzio, Pennsylvania,Bruce Westerman, Arkansas104 Vice Ranking Member Pete Stauber, Minnesota105Jerrold Nadler, New York Tim Burchett, Tennessee106Jesus G. ``Chuy'' Garcia, Illinois Dusty Johnson, South Dakota107Steve Cohen, Tennessee Troy E. Nehls, Texas108Henry C. ``Hank'' Johnson, Jr., Georgiaacey Mann, Kansas109Frederica S. Wilson, Florida Burgess Owens, Utah110Patrick Ryan, New York Eric Burlison, Missouri111Emilia Strong Sykes, Ohio Vince Fong, California112Laura Friedman, California Nicholas J. Begich III, Alaska113Mark DeSaulnier, California Jefferson Shreve, Indiana114Rick Larsen, Washington (Ex Officio) David J. Taylor, Ohio115 Mike Kennedy, Utah116 Sam Graves, Missouri (Ex Officio)117118 CONTENTS119120 Page121122Summary of Subject Matter........................................ vii123124 STATEMENTS OF MEMBERS OF THE COMMITTEE125126Hon. Daniel Webster, a Representative in Congress from the State127 of Florida, and Chairman, Subcommittee on Railroads, Pipelines,128 and Hazardous Materials, opening statement..................... 1129 Prepared statement........................................... 2130Hon. Dina Titus, a Representative in Congress from the State of131 Nevada, and Ranking Member, Subcommittee on Railroads,132 Pipelines, and Hazardous Materials, opening statement.......... 3133 Prepared statement........................................... 4134Hon. Rick Larsen, a Representative in Congress from the State of135 Washington, and Ranking Member, Committee on Transportation and136 Infrastructure, opening statement.............................. 5137 Prepared statement........................................... 7138139 WITNESSES140141Ian Jefferies, President and Chief Executive Officer, Association142 of American Railroads, oral statement.......................... 8143 Prepared statement........................................... 10144Chuck Baker, President, American Short Line and Regional Railroad145 Association, oral statement.................................... 17146 Prepared statement........................................... 19147Joseph Daloisio III, Track Division Manager, Railroad148 Construction Company, Inc., and Chairman, National Railroad149 Construction and Maintenance Association, oral statement....... 30150 Prepared statement........................................... 32151Jared Cassity, Deputy National Safety and Legislative Director,152 Sheet Metal, Air, Rail and Transportation Workers-153 Transportation Division (SMART-TD), oral statement............. 36154 Prepared statement........................................... 38155156 SUBMISSIONS FOR THE RECORD157158Submissions for the Record by Hon. Daniel Webster:159 Statement of Rob Benedict, Vice President, Petrochemicals and160 Midstream, American Fuel & Petrochemical Manufacturers..... 85161 Statement of the Wabtec Corporation.......................... 86162Action Plan, ``An Action Plan for Rail Energy and Emissions163 Innovation,'' U.S. Department of Energy, U.S. Department of164 Transportation, U.S. Environmental Protection Agency, U.S.165 Department of Labor, and U.S. Department of Housing and Urban166 Development, December 2024, Submitted for the Record by Hon.167 Christopher R. Deluzio......................................... 89168169 APPENDIX170171Questions to Ian Jefferies, President and Chief Executive172 Officer, Association of American Railroads, from:173 Hon. Troy E. Nehls........................................... 91174 Hon. Christopher R. Deluzio.................................. 92175176[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]177178 January 17, 2025179180 SUMMARY OF SUBJECT MATTER181182 TO: LMembers, Subcommittee on Railroads, Pipelines,183and Hazardous Materials184 FROM: LStaff, Subcommittee on Railroads, Pipelines, and185Hazardous Materials186 RE: LSubcommittee Hearing on ``America Builds:187Examining America's Freight and Passenger Rail Network''188_______________________________________________________________________189190 I. PURPOSE191192 The Subcommittee on Railroads, Pipelines, and Hazardous193Materials will meet on Thursday, January 23, 2025, at 10:00194a.m. ET in 2167 of the Rayburn House Office Building to receive195testimony at a hearing entitled, ``America Builds: Examining196America's Freight and Passenger Rail Network.'' The hearing197will discuss passenger and freight issues and the state of the198railroad industry, including potential legislative199considerations for a surface reauthorization bill. At the200hearing, Members will receive testimony from Ian Jefferies,201President and Chief Executive Officer (CEO), Association of202American Railroads; Chuck Baker, President, American Short Line203and Regional Railroad Association; Joe Daloisio, Chairman,204National Railroad Construction & Maintenance Association, and205Jared Cassity, Alternate National Safety and Legislative206Director, Sheet Metal, Air, Rail, Transportation-Transportation207Division (SMART-TD).208209 II. BACKGROUND210211 America's freight and intercity passenger railroad networks212are essential for the movement of goods and people across the213country. America's freight rail network consists of almost214140,000 miles of track.\1\ Six Class I freight carriers and 603215Class II and III (short line) railroads move roughly 1.6216billion tons of goods each year.\2\ Amtrak is the Nation's217primary passenger rail service and operates over roughly 21,000218miles of track in 46 states, serving over 500 destinations.\3\219In addition, there are approximately 30 commuter railroads in220the United States, many operated by state or regional221governmental authorities.\4\ The primary agency that oversees222railroad safety and rail grant programs is the Federal Railroad223Administration (FRA) within the Department of Transportation224(DOT).\5\ Congress authorizes and appropriates funding for225Federal discretionary grant programs to support freight and226passenger rail service, some of which are described below.227---------------------------------------------------------------------------228 \1\ Association of American Railroads, State Fact Sheets, available229at https://www.aar.org/230data-center/railroads-states/#::text=in%20Your%20State-231,Freight%20Rail%20in%20Your232%20State,nearly%20140%2C000%20miles%20of%20track.233 \2\ Id.234 \3\ Amtrak, Amtrak Facts, available at https://www.amtrak.com/235amtrak-facts#::text=236With%2021%2C000%20route%20miles%20in,to%20more%20than%20500%20destinatio237ns.238 \4\ American Public Transportation Association, How many commuter239railroads are in the United States?, (Mar. 16, 2021), available at240https://www.apta.com/faq-items/how-many-commuter-railroads-are-in-the-241united-states/.242 \5\ Fed. Railroad Admin, About Us, available at https://243railroads.dot.gov/about-fra/about-fra.244---------------------------------------------------------------------------245246 III. FEDERAL FUNDING FOR RAILROADS247248CONSOLIDATED RAIL INFRASTRUCTURE AND SAFETY IMPROVEMENTS (CRISI) GRANT249 PROGRAM250251 The Consolidated Rail Infrastructure and Safety252Improvements (CRISI) grant program was initially authorized in253the Fixing America's Surface Transportation (FAST) Act in 2015254(P.L. 114-94) and reauthorized in the Infrastructure Investment255and Jobs Act (IIJA) (P.L. 117-58) in 2021.\6\ CRISI provides256funding for privately and publicly-operated freight and257intercity passenger rail projects, including those that258``improve railroad safety, efficiency, and reliability;259mitigate congestion at both intercity passenger and freight260rail chokepoints to support more efficient travel and goods261movement . . . and lead to new or substantially improved262Intercity Passenger Rail Transportation corridors.'' \7\263Eligible applicants include individual states (and the District264of Columbia), Federally-recognized Indian tribes, public265agencies, Amtrak or other rail carriers providing intercity266passenger rail transportation, and Class II and Class III267freight railroads.\8\ The Federal cost share of a CRISI grant268award cannot exceed 80 percent of the project cost, with the269remaining funding comprising state/local government or private270sector funding.\9\271---------------------------------------------------------------------------272 \6\ 49 U.S.C. Sec. 22907.273 \7\ Notice of Funding Opportunity for the Consolidated Rail274Infrastructure and Safety Improvements Program, 87 Fed. Reg. 54278275(Sept. 2, 2022), available at https://www.federalregister.gov/276documents/2022/09/02/2022-19004/notice-of-funding-opportunity-for-the-277consolidated-rail-infrastructure-and-safety-improvements.278 \8\ Id.279 \9\ United States Dep't of Transp., Consolidated Rail280Infrastructure & Safety Improvements (CRISI) Grant Program, available281at https://www.transportation.gov/rural/grant-toolkit/consolidated-282rail-infrastructure-safety-improvements-crisi-grant-program.283---------------------------------------------------------------------------284 IIJA funded CRISI at $5 billion over five years and285subsequent annual appropriations bills have also included286funding for this program.\10\ In September 2023, the FRA287announced fiscal year (FY) 2022 CRISI awards totaling over $1.4288billion for 70 projects, 10 of which fund intercity passenger289rail projects.\11\ In October 2024, FRA announced FY 2023-2024290awards totaling more than $2.4 billion for 122 projects.\12\291---------------------------------------------------------------------------292 \10\ 49 U.S.C. Sec. 24911; see also Ben Goldman, Cong. Rsch. Serv.293(IF11920), Passenger Rail Expansion in the Infrastructure Investment294and Jobs Act (IIJA), (last updated Feb. 10, 2022), available at https:/295/crsreports.congress.gov/product/pdf/IF/IF11920.296 \11\ United States Dep't of Transp., Fed. Railroad Admin,297Consolidated Rail Infrastructure Safety Improvements (CRISI) Program,298(last updated Oct. 2, 2023), available at https://railroads.dot.gov/299grants-loans/competitive-discretionary-grant-programs/consolidated-300rail-infrastructure-and-safety-2.301 \12\ Press Release, United States Dep't of Transp., Fed. Railroad302Admin, Investing in America: Biden-Harris Administration Announces $2.4303Billion in New Rail Projects, (Oct. 29, 2024) available at https://304railroads.dot.gov/about-fra/communications/newsroom/press-releases/305investing-america-biden-harris-administration-1.306---------------------------------------------------------------------------307308AMTRAK GRANTS309310 Amtrak receives annual grants from the Federal government.311The FAST Act changed the authorization structure of Amtrak to312provide appropriations based on service--Amtrak Northeast313Corridor and Amtrak National Network grants--instead of two314separate programs for operations and capital/debt service315activities.\13\ In addition to annual appropriations grants,316IIJA provides $22 billion in funding specifically to Amtrak in317the form of advanced appropriations.\14\ The bill authorizes318and appropriates over five years $102 billion for the FRA, and319at least another $30 billion in discretionary multimodal grants320for which freight rail, Amtrak, and other intercity passenger321rail projects are eligible.\15\322---------------------------------------------------------------------------323 \13\ Pub. L. 114-94, 129 Stat. 1662 at Sec. 11101.324 \14\ United States Dep't of Transp., Fed. Railroad Admin, 2022325Bipartisan Infrastructure Law Funding Table, available at https://326railroads.dot.gov/sites/fra.dot.gov/files/2022-02/327Bipartisan%20Infrastructure%20Law%20Funding%20Table%20Jan2022.pdf.328 \15\ 49 U.S.C. Sec. 6701 (noting the National Infrastructure329Project Assistance, authorized at $5 billion and appropriated at $10330billion over five years); see also 49 U.S.C. Sec. 6702 (noting the331Local and Regional Project Assistance, authorized at $7.5 billion and332appropriated at $7.5 billion over five years); see also 23 U.S.C. Sec.333149; see also 49 U.S.C. Sec. 224, et seq.; see also 23 U.S.C. Sec.334601, et seq. (describing two Federal loan programs that include this335eligibility, Railroad Rehabilitation and Improvement Financing and336Transportation Infrastructure Finance and Innovation Act).337---------------------------------------------------------------------------338339FEDERAL-STATE PARTNERSHIP FOR INTERCITY PASSENGER RAIL GRANT PROGRAM340341 Sections 22106 and 22307 of IIJA authorize the Federal-342State Partnership for Intercity Passenger Rail (FSP) Grant343Program.\16\ Formerly the Federal State Partnership for States344of Good Repair Grant program, this grant program was modified345in the IIJA to not only provide funding for capital projects346that reduce the state of good repair backlog, but that may also347improve service performance and improve existing or establish348new intercity passenger rail service, including privately349operated passenger rail service.\17\ Eligible projects include350projects to replace, rehabilitate, or repair infrastructure,351equipment, or facilities used for providing intercity passenger352rail service to bring assets into a state of good repair or to353improve intercity passenger rail service performance; expand or354establish new intercity passenger rail service; or for the355planning, environmental review, and final design of an eligible356project or group of projects.\18\ Eligible recipients include:357an individual or group of states, including the District of358Columbia, an Interstate Compact, a public agency or publicly359chartered authority established by one or more states, a360political subdivision of a state, Amtrak, a Federally361recognized Indian Tribe or any combination of these362entities.\19\363---------------------------------------------------------------------------364 \16\ U.S. Dep't of Transp., Fed. Railroad Admin, Federal-State365Partnership for Intercity Passenger Rail Grant Program, (last updated366Nov. 6, 2023), available at https://railroads.dot.gov/federal-state-367partnership-intercity-passenger.368 \17\ U.S. Dep't Of Transp., Fed. Railroad Admin, Federal-State369Partnership for State of Good Repair Grant Program (FY 2017-2021),370available at https://railroads.dot.gov/grants-loans/federal-state-371partnership-state-good-repair-grant-program-fy-2017-2021.372 \18\ Id.373 \19\ Id.374---------------------------------------------------------------------------375 Because IIJA designated the majority of the advance376appropriated funds for FSP for the Northeast Corridor and set377out specific requirements for funding projects in this region,378FRA issued two separate notices of funding opportunity (NOFO)379to break out the Northeast Corridor funding from National380Network funding.\20\ On November 6, 2023, FRA announced awards381of $16.4 billion for 25 projects on the Northeast Corridor.\21\382This amount, includes $7.4 billion in phased funding agreements383authorized in the IIJA.\22\ On November 15, 2024, FRA announced384an additional nearly $1.5 billion to 19 projects on the385Northeast Corridor.\23\ On December 8, 2023, FRA announced $8.2386billion for 10 projects on the National Network.\24\ On October3871, 2024, FRA announced a NOFO for the National Network funding388totaling over $1 billion.\25\ Applications were due in mid-389December and are currently under review.390---------------------------------------------------------------------------391 \20\ Id.392 \21\ Press Release, U.S. Dep't of Transp., Fed. Railroad393Association, President Biden Advances Vision for World Class Passenger394Rail with $16 Billion Investment in America's Busiest Corridor, (Nov.3956, 2023), available at https://railroads.dot.gov/sites/fra.dot.gov/396files/2023-11/FRA%2011-23.pdf.397 \22\ Id.398 \23\ Press Release, U.S. Dep't of Transp., Fed. Railroad Admin,399Investing in America: Biden-Harris Administration Announces Nearly $1.5400Billion in Additional Upgrades to America's Busiest Rail Corridor,401(Nov. 15, 2024) available at https://railroads.dot.gov/about-fra/402communications/newsroom/press-releases/investing-america-biden-harris-403administration-4.404 \24\ Press Release, U.S. Dep't Of Transp., Fed. Railroad Admin,405President Biden Announces $8.2 Billion in New Grants, (Dec. 8, 2023),406available at https://railroads.dot.gov/about-fra/communications/407newsroom/press-releases/president-biden-announces-82-billion-new-408grants.409 \25\ Press Release, U.S. Dep't of Transp., Fed. Railroad Admin,410Investing In America: Biden-Harris Administration Makes More Than $1411Billion in Additional Funding Available to Support America's Passenger412Rail Future, (Oct. 1, 2024), available at https://railroads.dot.gov/413about-fra/communications/newsroom/press-releases/investing-america-414biden-harris-administration-0.415---------------------------------------------------------------------------416417RAILROAD CROSSING ELIMINATION (RCE) PROGRAM418419 The IIJA authorized $600 million in annual advanced420appropriations over five years (totaling $3 billion) to create421a new RCE grant program to address safety concerns at highway-422rail or pathway-rail grade crossings nationwide.\26\ The grant423program applies to projects that would separate or close grade424crossings; would relocate tracks, install or improve protective425or preventive measures at crossings such as signs or signals;426and fund planning and designs for eligible projects.\27\427Eligible recipients include individual states, the District of428Columbia, Puerto Rico, and other United States territories and429possessions, Federally recognized Indian Tribes, local430governments, public port authorities, metropolitan planning431organizations, and a group of the entities listed.\28\432---------------------------------------------------------------------------433 \26\ IIJA, Pub. L. No. 117-58, Sec. 22305, 135 Stat. 695.434 \27\ U.S. Dep't of Transp., Fed. Railroad Admin, Railroad Crossing435Elimination Program, (last updated Oct. 2, 2023), available at https://436railroads.dot.gov/grants-loans/competitive-discretionary-grant-437programs/railroad-crossing-elimination-grant-program.438 \28\ Id.439---------------------------------------------------------------------------440 In December 2023, FRA awarded over $570 million in FY 2022441funds to eligible projects under the RCE program.\29\ IIJA442stipulates that at least 20 percent of available grant funds443($114.6 million) are made available for rural and tribal land444projects.\30\ Of this 20 percent set aside, five percent of the445total funding is made available for projects in counties with44620 or fewer residents per square mile.\31\ The Federal cost447share for these grants is no more than 80 percent of total448project costs.\32\ On January 10, 2025, FRA announced over $1.1449billion for 123 rail projects to improve or study more than4501,000 highway-rail crossings Nationwide.\33\451---------------------------------------------------------------------------452 \29\ U.S. Dep't of Transp., Fed. Railroad Admin, Railroad Crossing453Elimination (RCE) Grant Program, (last updated Dec. 4, 2023), available454at https://railroads.dot.gov/grants-loans/competitive-discretionary-455grant-programs/railroad-crossing-elimination-grant-program.456 \30\ Id.457 \31\ Id.458 \32\ IIJA, supra note 26, at 135 Stat. 696.459 \33\ Press Release, U.S. Dep't of Transp., Fed. Railroad Admin,460Investing in America: Biden-Harris Administration Announces Over $1.1461Billion in New Rail Grants to Reduce Train-Vehicle Collisions and462Blocked Crossings, (July 9, 2024), available at https://463railroads.dot.gov/about-fra/communications/newsroom/press-releases/464biden-harris-administration-makes-more-11-0.465---------------------------------------------------------------------------466467RESTORATION AND ENHANCEMENT GRANTS468469 The Restoration and Enhancement Grant program was470authorized in Sections 11104 and 11303 of the FAST Act at $20471million a year.\34\ IIJA authorized and advance appropriated472$50 million each year over five years for the program, which473provides operating assistance grants to initiate, restore, or474enhance intercity rail passenger transportation for up to six475corridors.\35\ Eligible applicants include states or their476political subdivisions, groups of states, interstate compacts,477public agencies or publicly chartered authorities established478by one or more states, Amtrak or other intercity passenger rail479carriers, rail carriers in partnership with any eligible480government entities, or a combination.\36\ For FY 2018 through481FY 2020, the Restoration and Enhancement grant program awarded482over $22.4 million.\37\ On January 10, 2025, FRA announced over483$146.3 million in grants for FY 2021 through FY 2024.\38\484---------------------------------------------------------------------------485 \34\ Fixing America's Surface Transportation Act, Pub. L. No. 114-48694, 129 Stat. 1651.487 \35\ IIJA, supra note 26, at Sec. 22105.488 \36\ U.S. Dep't of Transp., Fed. Railroad Admin, Restoration and489Enhancement Grant Program, (last updated Oct. 2, 2023), available at490https://railroads.dot.gov/grants-loans/competitive-discretionary-grant-491programs/restoration-and-enhancement-grant-program.492 \37\ Id.493 \38\ U.S. Dep't of Transp., Investing in America: Biden-Harris494Administration Announces Over $1.1 Billion in New Rail Grants to Reduce495Train-Vehicle Collisions and Blocked Railroad Crossings, (Jan. 10,4962025) available at https://www.transportation.gov/briefing-room/497investing-america-biden-harris-administration-announces-over-11-498billion-new-rail.499---------------------------------------------------------------------------500501CORRIDOR IDENTIFICATION AND DEVELOPMENT (CORRIDOR ID) PROGRAM502503 IIJA created the Corridor ID Program for FRA to identify504and assist in the planning of intercity passenger rail505projects.\39\ The goal of the program is to help create and506facilitate a pipeline of intercity passenger rail projects507ready for implementation.\40\ Eligible applicants include508Amtrak, states, groups of states, entities implementing509interstate compacts, regional passenger rail authorities,510regional planning organizations and other public entities.\41\511The maximum award is $500,000 per project to facilitate512planning and development.\42\ On December 8, 2023, the FRA513announced the selection of 69 corridors across 44 states to514drive future passenger rail expansion.\43\ The selections515include 15 existing rail routes, add or extend service on 47516new routes, and advance seven new high-speed rail projects.\44\517---------------------------------------------------------------------------518 \39\ IIJA, supra note 26, at Sec. 22308 (Codified at 49 U.S.C.519Sec. 25101).520 \40\ U.S. Dep't of Transp., Fed. Railroad Admin, Corridor521Identification and Development Program [hereinafter Corridor ID],522available at https://railroads.dot.gov/corridor-ID-program.523 \41\ 49 U.S.C. Sec. 25101(b).524 \42\ Corridor ID, supra note 40.525 \43\ Press Release, DOT, President Biden Announces $8.2 Billion in526New Grants for High-Speed Rail and Pipeline of Projects Nationwide,527(Dec. 8, 2023), available at https://railroads.dot.gov/sites/528fra.dot.gov/files/2023-12/FRA%2013-23.pdf.529 \44\ Id.530---------------------------------------------------------------------------531532THE REBUILDING AMERICAN INFRASTRUCTURE WITH SUSTAINABILITY AND EQUITY533 (RAISE) GRANT PROGRAM534535 RAISE is a DOT discretionary grant program for surface536transportation projects whose objectives include investing in537projects that will have a significant regional or local impact,538and support DOT strategic goals to improve safety, economic539efficiency and global competitiveness, reduce disparities, and540achieve environmental objectives.\45\ Eligible applicants541include states, local governments, port authorities, and542metropolitan planning organizations, among others.\46\ IIJA543authorized advanced appropriations for RAISE grants of $1.5544billion annually for FY 2022 to FY 2026.\47\545---------------------------------------------------------------------------546 \45\ DOT, Off. of the Sec'y, Notice of Funding Opportunity for547Fiscal Year 2024, Rebuilding American Infrastructure with548Sustainability and Equity (RAISE) Grants, https://549www.transportation.gov/sites/dot.gov/files/2023-11/550RAISE%202024%20NOFO%2011.30.23_0.pdf [hereinafter RAISE Grants]; see551also IIJA, supra note 26, at 135 Stat. 663.552 \46\ 49 U.S.C. Sec. 25101(b)553 \47\ IIJA, supra note 26, at 135 Stat. 675.554---------------------------------------------------------------------------555 In 2023, the RAISE program issued over $2.2 billion in556awards for eligible projects, including at least eighteen557grants for highway-railway grade separation projects and other558rail projects.\48\ In June 2024, DOT announced roughly $1.8559billion in RAISE grant awards, including over 15 freight and560intercity passenger rail projects.\49\ On January 10, 2025, DOT561announced awards of $1.32 billion, including over 10 freight562and intercity rail projects.\50\563---------------------------------------------------------------------------564 \48\ Press Release, DOT, Biden-Harris Administration Announces565Funding for 162 Community-Led Infrastructure Projects as Part of the566Investing in America Agenda, (June 28, 2023), available at https://567www.transportation.gov/briefing-room/biden-harris-administration-568announces-funding-162-community-led-infrastructure; see also DOT, Off.569of the Sec'y, RAISE 2023 Fact Sheets, available at https://570www.transportation.gov/sites/dot.gov/files/2023-06/571RAISE%202023%20Fact%20Sheets_2.pdf.572 \49\ DOT, Raise Fact Sheet, available at https://573www.transportation.gov/sites/dot.gov/files/2024-07/574RAISE%202024%20Fact%20Sheets_0.pdf.575 \50\ U.S. Dep't Of Transp., Rebuilding American Infrastructure with576Sustainability and Equity (RAISE) Grant Program, available at https://577www.transportation.gov/RAISEgrants.578---------------------------------------------------------------------------579580THE NATIONALLY SIGNIFICANT MULTIMODAL FREIGHT & HIGHWAY PROJECTS581 PROGRAM (INFRA)582583 The INFRA program was established by the FAST Act and584awards competitive grants for multimodal freight and highway585projects of National or regional significance to improve the586safety, efficiency, and reliability of the movement of freight587and people.\51\ Eligible applicants include states, local588governments, tribal governments, and special purpose districts,589among others.\52\ Among the eligible activities for INFRA590grants are highway-railroad crossings or grade separation591projects.\53\592---------------------------------------------------------------------------593 \51\ DOT, The INFRA Grant Program, (last updated June 27, 2023),594available at https://www.transportation.gov/grants/infra-grant-program595[hereinafter INFRA Grants]; see also Fixing America's Surface596Transportation (FAST) Act of 2015, Pub. L. No. 114-94, 129 Stat. 1332,597Sec. 1105.598 \52\ U.S. Dep't of Transp., The Infra Grant Program, available at599https://www.transportation.gov/grants/infra-grant-program.600 \53\ Id.601---------------------------------------------------------------------------602 IIJA authorized up to $10.8 billion for INFRA over the603period of FY 2022 through FY 2026.\54\ In FY 2022, DOT awarded604approximately $1.5 billion to freight and highway605infrastructure projects.\55\ DOT consolidated the INFRA grant606program into a single notice of funding opportunity with the607National Infrastructure Project Assistance grants program608(Mega) and the Rural Surface Transportation Grant program609(Rural), described below.\56\ This combined NOFO is known as610the Multimodal Project Discretionary Grant Opportunity (MPDG)611and allows applicants to apply through one application and a612common set of criteria.\57\ DOT issued a NOFO for the MPDG in613June 2023, anticipating the MPDG will award between $5.45614billion and $5.75 billion from FY 2023 and FY 2024 funding,615including between $3 billion and $3.1 billion for INFRA.\58\ In616October 2024, DOT announced $4.2 billion in funding from INFRA617and the Mega grant program.\59\618---------------------------------------------------------------------------619 \54\ U.S. Dep't of Transp., Infrastructure Investment and Jobs Act620Authorized Funding, available at https://www.transportation.gov/sites/621dot.gov/files/2022-01/DOT_Infrastructure_622Investment_and_Jobs_Act_Authorization_Table_%28IIJA%29.pdf; see623Nationally Significant Freight and Highway Projects.624 \55\ Tom Ichniowski, US DOT Picks Winners for $1.5B in INFRA625Grants, Engineering News Record, (Sept. 15, 2022), available at https:/626/www.enr.com/articles/54806-us-dot-picks-winners-for-15b-in-infra-627grants.628 \56\ U.S. Dep't of Transp., Fed. Railroad Admin, Competitive629Discretionary Grant Programs, (last updated Dec. 11, 2023), available630at https://railroads.dot.gov/grants-loans/competitive-discretionary-631grant-programs/competitive-discretionary-grant-programs; see multimodal632projects discretionary grant program.633 \57\ U.S. Dep't of Transp., Off. of the Sec'y, NOFO for the DOT FY6342023-2024 MPDG, (last updated June 26, 2023), available at https://635www.transportation.gov/sites/dot.gov/files/2023-06/MPDG%20NOFO%202023-6362024%20Final_0.pdf [hereinafter MPDG NOFO].637 \58\ Id.638 \59\ U.S. Dep't of Transp., Investing in America: Biden-Harris639Administration Announces More Than $4.2 Billion From the Bipartisan640Infrastructure Law for Transformational, National Infrastructure641Projects, available at https://www.transportation.gov/briefing-room/642investing-america-biden-harris-administration-announces-more-42-643billion-bipartisan.644---------------------------------------------------------------------------645646 IV. FREIGHT RAIL647648 Running almost 140,000 route miles, the nearly $80-billion649National freight railroad industry hauls many types of freight,650and provides ancillary benefits, including reduced fuel651consumption, and lower greenhouse gas emissions when compared652to other modes of transportation.\60\ It is also the source of653a significant number of domestic jobs.\61\ Each year, freight654rail companies invest an average of $23 billion in their655networks.\62\ Freight rail's shipping tonnage has fallen from6561.16 billion in 2019 to 1.113 billion in 2023, even as total657shipping tonnage increased from 19.786 billion to 20.24 billion658over the same time period.\63\659---------------------------------------------------------------------------660 \60\ U.S. Dep't of Transp., Fed. Railroad Admin, The Freight Rail661Network, available at https://railroads.dot.gov/rail-network-662development/freight-rail-overview.663 \61\ Id.; See also Surface Transportation Board, Employment Data,664available at https://www.stb.gov/reports-data/economic-data/employment-665data/ and American Short Line and Regional Railroad Association, About,666available at https://www.aslrra.org/about-us/industry-facts/.667 \62\ Association of American Railroads, Investments Fact Sheet,668available at AAR-Investments-Fact-Sheet.pdf.669 \63\ Moving Goods in the United States, Weight of shipments by670transportation mode, available at https://data.bts.gov/stories/s/671Moving-Goods-in-the-United-States/bcyt-rqmu/.672---------------------------------------------------------------------------673 The industry is comprised of varying sized railroads674measured by their annual operating revenues into three675different classes. The largest freight railroads are the six676Class Is [pronounced ``Ones''], which collectively provide677long-haul operations in 44 states and D.C.\64\ The Class I678freight railroads transport nearly 69 percent of United States679freight mileage.\65\ The more than 600 short line and regional680railroads operate 29 percent of the Nation's rail network and681move approximately one-third of all United States rail682freight.\66\ Short lines are a way rural shippers connect to683the rest of the North American freight network--playing an684important role in providing first-mile and last-mile service685that extends the reach of the rail network to rural686communities, manufacturers, farmers, and others.\67\687---------------------------------------------------------------------------688 \64\ The six Class I railroads include Burlington Northern Santa Fe689Railway (BNSF); Union Pacific Railroad (UP); Norfolk Southern Railway690(NS); CSX Transportation; Canadian National Railway (CN); Canadian691Pacific Railway Kansas City Southern (CPKC).692 \65\ Association of American Railroads, Overview of America`s693Freight Railroads, at 1, available at https://www.aar.org/wp-content/694uploads/2018/05/AAR-Overview-Americas-Freight-Railroads.pdf.695 \66\ American Short Line and Regional Railroad Association,696Industry Facts, available at https://www.aslrra.org/about-us/industry-697facts/.698 \67\ Id.699---------------------------------------------------------------------------700701FREIGHT RAIL SAFETY702703 Freight rail safety received renewed national attention704following the February 3, 2023, derailment of a Norfolk705Southern train in East Palestine, Ohio. After a thorough706investigation, the National Transportation Safety Board (NTSB)707determined that the accident occurred due to a wheel bearing on708a hopper car overheating, causing a wheel axle to separate,709leading to a post-derailment fire due to the release of710flammable liquid from a punctured tank car.\68\ In its final711report, the NTSB made several recommendations to various712entities, including DOT, FRA, and the freight rail industry713that touched on a variety of issues, including defect detection714technology, data collection on bearing failures, hazardous715materials transport and guidance, and the use of audio and716image recordings in locomotive cabs.\69\ These recommendations717included seeking statutory changes, as needed from718Congress.\70\719---------------------------------------------------------------------------720 \68\ National Transportation Safety Board, Meeting of June 25,7212024, at 1-2, available at https://www.ntsb.gov/investigations/722Documents/East%20Palestine%20Ohio%20Board%20Meeting723%20Summary%20with%20Amendments.pdf.724 \69\ Id. at 3.725 \70\ Id.726---------------------------------------------------------------------------727728FREIGHT RAIL TECHNOLOGY729730 Freight railroads continue to expand the use of technology.731For over thirty years, FRA supported the continued growth of732automated track inspection technology through FRA's Automated733Track Inspection Program (ATIP).\71\ ATIP aids in track safety734inspections that visual inspections may miss. Specifically,735ATIP ``helps America's railroads improve railroad quality and736safety'' \72\ under statutes mandated by Congress. Information737collected by ATIP is used by the government and the rail738industry to improve railroad safety. Recognizing the ability of739this technology to enhance safety, Class I freight railroads740obtained FRA safety waiver approvals to test the combination of741ATI technology and manual track inspections by gradually742reducing manual visual inspections performed by rail workers743required under a 1971 rulemaking.\73\ Waivers generally permit744rail operators to reduce or replace the number of required745visual inspections by workers when utilizing the technology in746a manner prescribed in an FRA approved application.747---------------------------------------------------------------------------748 \71\ U.S. Dep't of Transp., History of ATIP, available at https://749railroads.dot.gov/track/automated-track-inspection-program-atip/750history-atip.751 \72\ U.S. Dep't of Transp., ATIP Overview, available at https://752railroads.dot.gov/track/automated-track-inspection-program-atip/atip-753overview.754 \73\ Chris Woodward, Why Is Biden Admin. Blocking Increased Rail755Safety Program?, Inside Sources, (May 4, 2022), available at https://756insidesources.com/why-is-biden-admin-blocking-increased-rail-safety-757program/.758---------------------------------------------------------------------------759760 V. PASSENGER RAIL761762AMTRAK763764 Amtrak operates a national passenger rail system, which765includes the Northeast Corridor (NEC), long-distance routes,766and state-supported routes.\74\ The network runs over 300767trains per day through 500 stations in 46 states and768Washington, D.C. extending roughly 21,000 miles Nationwide.\75\769In 2024, the NEC accounted for approximately 43 percent of770passenger trips, with state-routes and long-distance routes771accounting for 44 percent and 13 percent of trips,772respectively.\76\ In FY 2024, Amtrak carried a record 32.8773million riders, which was an increase from approximately 28.6774million riders in FY 2023, and brought in a total annual775revenue of $3.6 billion against overall operational losses of776$705 million and total losses of $1.750 billion.\77\777---------------------------------------------------------------------------778 \74\ 49 U.S.C. Sec. 24102.779 \75\ Ben Goldman, Cong. Rsch. Serv. (R47260), Intercity Passenger780Rail: Fed. Policy and Programs, (Mar. 23, 2023), available at https://781crsreports.congress.gov/product/pdf/R/R47260 [hereinafter Intercity782Passenger Rail: Fed. Policy and Programs].783 \76\ Amtrak, FY24 Year End Ridership, [hereinafter FY24 Ridership],784available at https://media.amtrak.com/2024/12/fy24-year-end-ridership/785#::text=Amtrak%20achieved%20an%20all786%2Dtime,in%20markets%20across%20the%20nation.787 \77\ Amtrak, September 2024 Monthly Performance Report, at 2,788available at https://www.amtrak.com/content/dam/projects/dotcom/789english/public/documents/corporate/monthlyperformancereports/2024/790Amtrak-Monthly-Performance-Report-September-2024.pdf.791---------------------------------------------------------------------------792 Most recently, Amtrak received nearly $126,000,000 out of793the more than $1 billion in CRISI grants awarded for FY 2023-7942024 including for safety fencing in Pennsylvania, workforce795development training, and new sidings and crossover track in796Arizona.\78\797---------------------------------------------------------------------------798 \78\ U.S. Dep't of Transp., Fed. Railroad Admin, FY 2023-2024799Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grant800Program: Project Summaries, available at https://railroads.dot.gov/801elibrary/fy-2023-24-crisi-program-project-summaries.802---------------------------------------------------------------------------803 The Northeast Corridor Commission (Commission) was804authorized by Congress in 2008 and is made up of 18 members,805including representatives from each of the eight Northeast806Corridor states, the District of Columbia, Amtrak, and DOT.\79\807As required by IIJA, the Commission submits to Congress an808annual Capital Improvement Plan for the Northeast Corridor.\80\809The Commission's latest report, Connect NEC 2037, is a 15-year810plan that details the sequencing of infrastructure investments811and capital renewal projects to be made throughout the812Northeast Corridor.\81\ The NEC Project Inventory, established813by IIJA, is a pipeline of projects that will assist Commission814Members and the public with long-term capital planning for the815NEC.\82\816---------------------------------------------------------------------------817 \79\ Northeast Corridor Commission, available at https://nec-818commission.com/commission./819 \80\ IIJA, supra note 26, at Sec. 22301.820 \81\ Northeast Corridor Commission, CONNECT 2037 (Nov. 2023),821available at https://nec-commission.com/connect-nec-2037/ [hereinafter822CONNECT 2037].823 \82\ 2024 Northeast Corridor Project Inventory, available at824https://railroads.dot.gov/sites/fra.dot.gov/files/2024-04/8252024%20NEC%20Project%20Inventory.pdf.826---------------------------------------------------------------------------827 Amtrak is obligated to address compliance with a 2020828settlement with the Department of Justice related to the829Americans with Disabilities Act (ADA).\83\ The agreement830establishes a 2030 deadline by which Amtrak must complete831designs on 135 stations, complete construction at 90 of those832stations, and have at least 45 more under construction to bring833those stations into ADA compliance. Congress took additional834action on this issue with passage and enactment of the Think835Differently Transportation Act (P.L. No. 118-205), which836mandates Amtrak include information on ADA compliance at all837stations it serves in a required annual report to Congress.\84\838---------------------------------------------------------------------------839 \83\ Press Release, Department of Justice, Amtrak Pays Over $2840Million to Individuals in Disability Settlement, (Jan. 12, 2022),841available at https://www.justice.gov/opa/pr/amtrak-pays-over-2-million-842individuals-disability-settlement.843 \84\ Think Differently Transportation Act, Pub. L. No. 118-205.844---------------------------------------------------------------------------845846BRIGHTLINE FLORIDA AND BRIGHTLINE WEST847848 Brightline Florida and Brightline West are two privately-849owned and operated intercity passenger rail routes. Brightline850Florida operates passenger rail service between Miami and851Orlando, Florida. Brightline West is a proposed $12 billion852high-speed rail route linking the Southern California city of853Rancho Cucamonga, California and Las Vegas, Nevada.\85\854---------------------------------------------------------------------------855 \85\ Press Release, Brightline, Making History: Brightline West856Breaks Ground on America's First High-Speed Rail Project Connecting Las857Vegas to Southern California, (Apr. 22, 2024), available at https://858www.gobrightline.com/press-room/2024/brightline-west-breaks-ground-on-859americas-first-high-speed-rail-project-connecting-las-vegas-to-860southern-california.861---------------------------------------------------------------------------862 The Brightline Florida project has largely been financed863with private and state and local dollars and incentives. It has864received over $36 million in funding under the CRISI program to865improve safety and another $33.8 million in R&E funding to866increase the number of frequencies from five to seven867roundtrips.\86\ In addition, certain Florida municipalities868have applied for FRA funds to build stations to serve their869communities.\87\870---------------------------------------------------------------------------871 \86\ Press Release, Brightline, Brightline Receives USDOT CRISI872Grant Award, (Sept. 29, 2023), available at https://873www.gobrightline.com/press-room/2023/brightline-receives-usdot-crisi-874grant-award.875 \87\ James Sparevo, Cocoa doesn't get $47M federal grant to build876Brightline station, city to reapply, Click Orlando, (Nov. 8, 2024),877available at https://www.clickorlando.com/news/local/2024/11/08/cocoa-878doesnt-get-47m-federal-grant-to-build-brightline-station-city-to-879reapply/.880---------------------------------------------------------------------------881 Brightline West is a private and publicly financed high-882speed rail project. In December 2023, the Brightline West route883received a $3 billion Federal-State Partnership for Intercity884Passenger Rail grant and a $500,000 Corridor Identification and885Development Grant award.\88\ DOT has also approved $2.5 billion886in private activity bond authority.\89\ The system is expected887to begin initial operations in 2028.\90\888---------------------------------------------------------------------------889 \88\ Press Release, U.S. Dep't of Transp., President Biden890Announces $8.2 Billion in New Grants for High-Speed Rail and Pipeline891of Projects Nationwide, (Dec. 8, 2023), available at https://892www.transportation.gov/briefing-room/president-biden-announces-82-893billion-new-grants-high-speed-rail-and-pipeline-projects; U.S. Dep't of894Transp., Fed. Railroad Admin, FY22 Corridor Identification and895Development Program Selections, available at https://railroads.dot.gov/896elibrary/fy22-CID-program-selections.897 \89\ Press Release, U.S. Dep't of Transp., U.S. Department of898Transportation Approves $2.5 Billion in Private Activity Bonds899Allocation for Brightline West Project, (Jan. 23, 2024) available at900https://www.transportation.gov/briefing-room/us-department-901transportation-approves-25-billion-private-activity-bonds-allocation.902(Noting that this is in addition to $1 billion in private activity bond903authority granted in 2020); see also Trains Staff, Brightline gets904approval to sell up to $1 billion in debt for Orlando project, Trains905(Aug. 10, 2022), available at https://www.trains.com/trn/news-reviews/906news-wire/brightline-gets-approval-to-sell-up-to-1-billion-in-debt-for-907orlando-project/.908 \90\ Press Release, Brightline, Signed, Sealed and Delivered: $3909Billion Grant Agreement for Brightline West Project Officially Signed,910(Sept. 26, 2024), available at https://www.brightlinewest.com/media/911press-releases/2024/signed-sealed-and-delivered-3-billion-grant-912agreement-for-brightline-west-project-officially-signed.913---------------------------------------------------------------------------914915CALIFORNIA HIGH-SPEED RAIL916917 In 1996, the California High-Speed Rail Authority (CHSRA)918was created as an independent state entity charged with919planning, building, and operating a high-speed train system920within the state.\91\ In 2008, California voters approved921Proposition 1A, which authorized the state to sell $9.95922billion in general obligation bonds with the bulk of the923funding going to the California High Speed Rail (CAHSR)924project.\92\ Phase 1 of the project will connect Los Angeles/925Anaheim to San Francisco, with Phase 2 extending north to926Sacramento and south to San Diego.\93\ The route plan includes927fifteen stations and trains traveling at speeds of up to 220928miles per hour.\94\ According to the 2008 Business Plan for the929project, Phase 1 was expected to cost roughly $33 billion, with930an estimated completion date of 2020.\95\ Construction began on931the project in 2015 with a groundbreaking in Fresno,932California.\96\933---------------------------------------------------------------------------934 \91\ High Speed Rail Act, Cal. Sen. B. 1420 (1996-1997), Chapter935796 (Cal. Stat. 1996), available at http://www.leginfo.ca.gov/pub/95-93696/bill/sen/sb_1401-1450/sb_1420_bill_960924_937chaptered.html.938 \92\ California High Speed Rail Authority, 2024 Business Plan, at 3939[hereinafter 2024 Business Plan], available at https://hsr.ca.gov/wp-940content/uploads/2024/05/2024-Business-Plan-FINAL.pdf.941 \93\ Id.942 \94\ Id.943 \95\ See California High Speed Rail Authority, 2008 Business Plan,944at 19, available at https://hsr.ca.gov/wp-content/uploads/docs/about/945business_plans/BPlan_2008_FullRpt.pdf; see also Ralph Vartabedian, How946California's Bullet Train Went Off the Rails, The New York Times (Oct.9479, 2022), [hereinafter Times Article] available at https://948www.nytimes.com/2022/10/09/us/california-high-speed-rail-politics.html.949 \96\ California High Speed Rail Authority, About California High950Speed Rail, available at https://hsr.ca.gov/about/high-speed-rail-951authority/.952---------------------------------------------------------------------------953 While the Phase 1 plan still intends to connect Los954Angeles/Anaheim and San Francisco, the project is now currently955limited to a segment linking the central valley cities of956Merced and Bakersfield to be constructed at a cost of $38957billion. The full Phase I system will be constructed later at958an estimated cost of up to $128 billion.\97\959---------------------------------------------------------------------------960 \97\ California High Speed Rail Authority, Funding the Program,961available at https://hsr.ca.gov/about/high-speed-rail-business-plans/9622024-business-plan/chapter-3/#::text=High%2Dspeed963%20rail%20is%20the,highway%20and%20air%20passenger%20capacity.964---------------------------------------------------------------------------965 The project received $3.07 billion through the FY2022-23966Federal-State Partnership for Intercity Passenger Rail967grant.\98\ It also received nearly $90 million in funding968through the Rail Crossing Elimination Program, and a nearly969$202 million FY22 Consolidated Rail Infrastructure and Safety970Improvement Program grant to remove at-grade crossings with971Union Pacific and BNSF railroads.\99\972---------------------------------------------------------------------------973 \98\ U.S. Dep't of Transp., Fed. Railroad Admin, FY22-23 Federal-974State Partnership for Intercity Passenger Rail Program Selections, at9751, available at https://railroads.dot.gov/sites/fra.dot.gov/files/2023-97612/FY22-23%20FSP%20%28National%29%20Project%20Summaries-Map.pdf.977 \99\ U.S. Dep't of Transp., Fed. Railroad Admin., Railroad Crossing978Elimination (RCE) Grant Program FY 2023-2024 SELECTIONS: Project979Summaries, at 3, available at https://railroads.dot.gov/sites/980fra.dot.gov/files/2025-01/FY23-24%20RCE%20Project%20Selections.pdf.;981U.S. Dep't of Transp., Fed. Railroad Admin, FY 2022 Consolidated Rail982Infrastructure and Safety Improvement Program Selections: Project983Summaries, at 2, available at https://railroads.dot.gov/sites/984fra.dot.gov/files/2023-09/FY%202022%20CRISI%20Program%20Selections%20-985%20Project%20Summaries.pdf.986---------------------------------------------------------------------------987988OTHER PASSENGER RAIL PROJECTS989990 In December 2023, the FRA announced 10 selections for991projects to facilitate the development of intercity and high-992speed rail corridors in nine states.\100\993---------------------------------------------------------------------------994 \100\ U.S. Dep't of Transp., Fed. Railroad Admin, President Biden995Announces $8.2 Billion in New Grants for High-Speed Rail and Pipeline996of Projects Nationwide, available at https://railroads.dot.gov/sites/997fra.dot.gov/files/2023-12/FRA%2013-23.pdf.998---------------------------------------------------------------------------9991000 VI. WITNESSES10011002 LMr. Ian Jefferies, President and Chief Executive1003Officer, Association of American Railroads1004 LMr. Chuck Baker, President, American Short Line1005and Regional Railroad Association1006 LMr. Joe Daloisio, Chairman, National Railroad1007Construction & Maintenance Association1008 LMr. Jared Cassity, Alternate National Safety and1009Legislative Director, Sheet Metal, Air, Rail, Transportation-1010Transportation Division (SMART-TD)10111012 AMERICA BUILDS: EXAMINING AMERICA'S FREIGHT AND PASSENGER RAIL NETWORK10131014 ----------10151016 THURSDAY, JANUARY 23, 202510171018 House of Representatives,1019Subcommittee on Railroads, Pipelines, and Hazardous1020 Materials,1021 Committee on Transportation and Infrastructure,1022 Washington, DC.1023 The subcommittee met, pursuant to call, at 10 a.m., in Room10242167, Rayburn House Office Building, Hon. Daniel Webster1025(Chairman of the subcommittee) presiding.1026 Mr. Webster of Florida. The Subcommittee on Railroads,1027Pipelines, and Hazardous Materials will come to order.1028 I ask unanimous consent that the chair be authorized to1029declare a recess at any time during today's hearing. I also ask1030unanimous consent that the Members not on the subcommittee be1031permitted to sit on the subcommittee and ask questions.1032 So ordered.1033 As a reminder, if Members wish to insert a document into1034the record, please also email it to DocumentsTI@mail.house.gov.1035 I now recognize myself for the purposes of an opening1036statement for 5 minutes.10371038OPENING STATEMENT OF HON. DANIEL WEBSTER OF FLORIDA, CHAIRMAN,1039 SUBCOMMITTEE ON RAILROADS, PIPELINES, AND HAZARDOUS MATERIALS10401041 Mr. Webster of Florida. Since the early 19th century, when1042trains first began operating, railroads have played an1043essential role in shaping the Nation's history and development.1044As America grew more dependent on railroads for commerce and1045transportation, rail became the very first industry to be1046regulated by the Federal Government under the Interstate1047Commerce Act of 1887. Railroads remain an integral part of our1048Nation's infrastructure, and our modern economic survival and1049well-being rely on dependable rail service.1050 America's freight rail network is widely considered the1051largest, safest, and most efficient system in the world.1052Spanning nearly 140,000 miles of track, this essential network1053annually moves over 1.6 billion tons of goods that Americans1054rely upon to survive.1055 The modern success of freight railroads largely traces back1056to the passage of the Staggers Act of 1980, which deregulated1057the industry and allowed for unprecedented growth. In the time1058since Staggers was signed into law, moving goods by freight1059rail has become cheaper, more efficient, and safer. Ensuring1060that the industry continues to grow without excessive and1061unnecessary Government burdens is a key consideration that1062should be factored into any action toward freight rail taken by1063Congress or the executive branch.1064 While this hearing will focus on America's freight rail1065network, it will also touch on improving and constructively1066growing intercity passenger rail to best serve America's needs.1067Passenger rail works best where demand is high, competition and1068private sector involvement are ample, and a dependence on1069Government support is low.1070 Amtrak must look at improving and maintaining its existing1071network, weaning it off Government support, and providing1072competitive, reliable, and safe service to attract riders.1073Amtrak should serve as an appealing option for travel, not a1074replacement for vehicles and airplanes, which remain the1075overwhelming preference for Americans.1076 As you know, the current surface transportation1077authorization expires this Congress, and this committee has1078begun assessing the Nation's infrastructure needs. The1079committee's work on surface reauthorization legislation will1080require us to be both principled and pragmatic. Building and1081supporting America's rail network involves cutting redtape,1082improving safety through technology and improving innovation,1083encouraging private sector involvement and competition, and1084decreasing dependence on Government funding and control.1085 So, with that, I would like to introduce our witnesses that1086are joining us today: Ian Jefferies, president and CEO of1087Association of American Railroads; Chuck Baker, president,1088American Short Line and Regional Railroad Association; Joe1089Daloisio--is that it? Okay--chairman of the National Railroad1090Construction and Maintenance Association; and Jared Cassity,1091alternate national safety and legislative director, SMART-TD.1092 [Mr. Webster of Florida's prepared statement follows:]10931094Prepared Statement of Hon. Daniel Webster, a Representative in Congress1095 from the State of Florida, and Chairman, Subcommittee on Railroads,1096 Pipelines, and Hazardous Materials1097 Since the early 19th century, when trains first began operating,1098railroads have played an essential role in shaping our nation's history1099and development. As America grew more dependent on railroads for1100commerce and transportation, rail became the very first industry to be1101regulated by the federal government under the Interstate Commerce Act1102of 1887. Railroads remain an integral part of our nation's1103infrastructure, and our modern economic survival and well-being rely on1104dependable rail service.1105 America's freight rail network is widely considered the largest,1106safest, and most cost-efficient in the world. Spanning nearly 140,0001107miles of track, this essential network annually moves over 1.6 billion1108tons of goods that Americans rely upon to survive.1109 The modern success of freight railroads largely traces back to the1110passage of the Staggers Act of 1980, which deregulated the industry and1111allowed for unprecedented growth.1112 In the time since Staggers was signed into law, moving goods by1113freight rail has become cheaper, more efficient, and safer. Ensuring1114that the industry continues to grow without excessive and unnecessary1115government burdens is a key consideration that should be factored into1116any actions toward freight rail taken by Congress, or the Executive1117Branch.1118 While this hearing will focus on America's freight rail network, it1119will also touch upon improving and constructively growing intercity1120passenger rail to best serve America's needs. Passenger rail works best1121where demand is high, competition and private sector involvement are1122ample, and a dependence on government support is low.1123 For Amtrak, we must look at improving and maintaining its existing1124network, weaning it off government support, and providing competitive,1125reliable, and safe service to attract riders. Amtrak should serve as an1126appealing option for travel, not as a replacement for vehicles and1127airplanes, which remain the overwhelming preference for Americans.1128 As you know, the current surface transportation authorization1129expires this Congress, and discussions have begun assessing the1130nation's infrastructure needs. The Committee's work on surface1131reauthorization legislation will require us to be both principled and1132pragmatic. Building and supporting America's rail network involves1133cutting red tape, improving safety through technology and innovation,1134encouraging private sector involvement and competition, and decreasing1135dependence on government funding and control.1136 Today's witnesses will be able to provide us important insights1137into stakeholder views on these topics, and I look forward to their1138testimony.11391140 Mr. Webster of Florida. Now, I recognize Ranking Member1141Titus for 5 minutes, and it is great to be back together, and1142we will see what happens.11431144OPENING STATEMENT OF HON. DINA TITUS OF NEVADA, RANKING MEMBER,1145 SUBCOMMITTEE ON RAILROADS, PIPELINES, AND HAZARDOUS MATERIALS11461147 Ms. Titus. Well, thank you, Chairman Webster. It is a1148pleasure to be working with you again now on trains, before on1149economic development.1150 I look forward to working with you and the other members of1151the subcommittee to make progress on matters related to1152railroads, pipelines, and hazardous materials. There is a lot1153of work to be done, such as completing pipeline and rail safety1154legislation and preparing for the surface transportation1155reauthorization, so we can be sure to find a way to maintain1156ongoing investments for rail and pipeline safety projects. We1157don't want them to get lost in the highway shuffle.1158 Las Vegas is my district, and it was founded as a rail stop1159initially. And, right now, right through my district, right1160through downtown Las Vegas, we have a number of trains every1161day carrying all kinds of things. Now, also, we are at the1162forefront of high-speed passenger rail, that is with the1163Brightline, and that is going to be very exciting. It is a 218-1164mile route that has tremendous potential for economic1165development all across the Southwest, not just in Nevada. And1166it is going to create thousands of good-paying union jobs.1167 Brightline West is going to provide intercity passenger1168rail service between Las Vegas and Los Angeles and some stops1169in between. And it is going to turn what is a 4-hour drive on a1170good day into a reliable 2-hour ride. It is fully electrified,1171and it will reduce emissions. It will relieve traffic, and it1172is going to provide travelers a safe and more fun way to get to1173their destination, which we hope is Las Vegas.1174 Now Brightline was the first high-speed rail project to1175reach the first of its kind memorandum of understanding with1176all 13 rail unions. They all use rail labor and operation and1177maintenance, and this is quite an accomplishment. All told, it1178is one of the most exciting passenger rail projects in the1179country in a long time.1180 I was proud to support investments in the Bipartisan1181Infrastructure Law that made this public-private partnership a1182reality. The project was awarded $3 billion in Federal-State1183Partnership for Intercity Passenger Rail Grants. That is a1184mouthful. But it is going to also include $9 billion in private1185investment.1186 In addition to Brightline, as I mentioned, we also see a1187number of freight shipments that move by rail right through the1188district, and these include hazardous materials. And I continue1189to have concerns about those, as trains get longer and longer.1190So, not only do we need to be mindful of train length, but I1191want to be sure that our workers and first responders know1192exactly what is moving on those trains.1193 Congress required the Pipeline and Hazardous Materials1194Safety Administration to develop guidelines for the trains to1195inform first responders in real time after an accident occurs1196so they know what they are dealing with. I am pleased that the1197previous administration was able to get this requirement1198finalized. That was in June 2024. And I urge its continued1199implementation so first responders have the information they1200need when they respond, and the communities around there are1201also prepared to deal with rail incidents.1202 Lastly, I would like to see this committee pass rail safety1203legislation. I am glad that the previous administration1204finalized the two-person crew requirement. I have long1205advocated for that. And I was pleased to hear that the DOT1206nominee, Mr. Duffy, indicated his support for that requirement1207during his confirmation hearing last week. So I hope we can1208hold him to that and work with the new administration to get1209rail safety legislation that contains a number of important1210safety improvements across the finish line during this1211Congress.1212 So I thank our witnesses who are here today for their time1213and look forward to hearing their information.1214 And, with that, I yield back, Mr. Chairman.1215 [Ms. Titus' prepared statement follows:]12161217 Prepared Statement of Hon. Dina Titus, a Representative in Congress1218 from the State of Nevada, and Ranking Member, Subcommittee on1219 Railroads, Pipelines, and Hazardous Materials1220 Thank you, Chairman Webster for holding this hearing today.1221 I look forward to working with you and the other members on this1222Subcommittee to make progress on matters related to railroads,1223pipelines and hazardous materials.1224 There is much work to be done, such as completing pipeline and rail1225safety legislation and preparing for the surface transportation1226reauthorization so we can find a way to maintain ongoing investments1227for rail and pipeline safety projects.1228 Las Vegas was founded with the arrival of rail and now we are at1229the forefront of high-speed passenger rail with the construction of the1230Brightline West project. This 218-mile route has tremendous potential1231for economic development in Southern Nevada and will create thousands1232of good-paying union jobs.1233 Brightline West will provide an intercity passenger rail service1234between Las Vegas and the Los Angeles area, turning what is a four-hour1235drive on a good day into a reliable, two-hour ride. The fully1236electrified passenger rail will reduce emissions, relieve traffic1237congestion and provide travelers a safer way to get to their1238destination.1239 Brightline West was the first High Speed Rail Project to reach a1240first-of-its-kind Memorandum of Understanding with all 13 rail unions1241to use rail labor in its operation and maintenance. It is one of the1242most exciting passenger rail projects being built in the country, and,1243more importantly, it has broad bipartisan support.1244 I was proud to support investments in the Bipartisan Infrastructure1245Law that are making this public-private partnership a reality. The1246project has been awarded $3 billion in Federal-State Partnership for1247Intercity Passenger Rail Grants and will include $9 billion in private1248investment.1249 Las Vegas also sees a significant amount of freight shipments move1250by rail through the district, including hazardous materials which I1251continue to have concerns with as trains get longer. Not only do we1252need to be mindful of train length, but I also want to make sure our1253workers and first responders know exactly what is moving on these1254trains.1255 Congress required the Pipeline and Hazardous Materials Safety1256Administration to develop guidelines for the railroads to inform first1257responders in real time after an accident occurs. I am pleased the1258previous Administration was able to get this requirement finalized in1259June 2024, and I urge its continued implementation so first responders1260have the information they need to respond to potential rail incidents.1261 Lastly, I want to see this Committee pass rail safety legislation.1262I am glad the previous Administration finalized a two-person crew1263requirement, which I have long advocated for. I am encouraged to see1264DOT nominee Sean Duffy indicate his support for the requirement during1265his confirmation hearing last week, and I hope to work with the new1266Administration to get rail safety legislation that contains numerous1267important safety improvements across the finish line this Congress.1268 I thank our witnesses for their time today. I look forward to1269hearing from you all. And with that, I yield back.12701271 Mr. Webster of Florida. Thank you.1272 I now recognize Mr. Larsen, the ranking member of the full1273committee. He is recognized for 5 minutes.12741275 OPENING STATEMENT OF HON. RICK LARSEN OF WASHINGTON, RANKING1276 MEMBER, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE12771278 Mr. Larsen of Washington. Thank you, Chair Webster and1279Ranking Member Titus for holding today's hearing. I am glad we1280are following yesterday's hearing on building highways, roads,1281and bridges with this hearing on rail because the1282infrastructure bill has helped create 1.6 million construction1283and manufacturing jobs across the country. These jobs with good1284wages and benefits and working conditions are driving the low12854.1 percent unemployment rate while modernizing our1286infrastructure, including our rail infrastructure.1287 As I said in yesterday's hearing, this is why it makes it1288hard to understand how, on the first day in office, the1289administration signed an Executive order to halt this progress,1290putting millions of dollars, hundreds of thousands of jobs, and1291thousands of projects at risk with one section of one of the1292Executive orders.1293 Halting the flow of benefits from these appropriations1294already approved by Congress is a strange way to launch the1295golden age of infrastructure. Instead, we need to be working on1296a bipartisan basis to continue these investments in all modes,1297in particular, as we discuss today, rail. Let's keep it going.1298 The BIL provided transformational funding for passenger1299rail, as, for instance, for the first time since the founding1300of Amtrak, intercity passenger rail has guaranteed funding: 51301years of advanced appropriations that allows Amtrak to address1302decades of deferred maintenance and begin construction on long1303delayed capital projects.1304 Before the BIL, Amtrak would have to wait until Congress1305completed the annual appropriations process to find out its1306capital and operating budget. That is no way to run a railroad.1307The BIL has invested nearly $53 billion for 594 projects to1308improve rail safety and expand passenger rail travel1309nationwide.1310 In my State, the Cascadia Ultra-High-Speed Ground1311Transportation project recently advanced to phase 2 of the1312Corridor Identification and Development Program. It will1313connect communities throughout the Pacific Northwest, to1314include Vancouver, BC, Seattle, and Portland. It will connect1315workers in my district to jobs. It will increase access to1316housing. It will offer greater ways for almost 10 million1317people to get around the Northwest.1318 Similarly, the Federal-State Partnership for Intercity1319Passenger Rail is matching billions of dollars in State and1320private investment in passenger rail improvements. These1321investments include the Brightline West, as Ranking Member1322Titus noted, and the Southeast Corridor improvements in North1323Carolina and Virginia.1324 We have a need for guaranteed funding for rail. Public1325investment is vital to building a truly national intercity1326passenger rail system.1327 Last week, the FRA released a report in support of1328additional long-distance service that incorporates feedback1329from 50,000 stakeholder and public comments. Amtrak will need1330new equipment and, in some cases, new stations to address these1331service improvements.1332 We also have an obligation to ensure rail travel remains1333safe, safe for people and safe for goods and safe for1334communities. So I welcome Secretary Duffy's commitment to1335safety as the highest priority for the Department of1336Transportation. I look forward to working with him to reduce1337accidents and to save lives.1338 Unfortunately, Class I freight rail accident and incident1339rates have not significantly improved over the last 10 years.1340In my State, there were 202 train accidents, 192 grade crossing1341incidents, and 21 railroad right-of-way trespasser fatalities1342over the last 5 years, including a BNSF derailment that spilled1343over 3,000 gallons of diesel fuel on the Swinomish Indian1344Reservation in March of 2023.1345 One major cause of incidents is longer trains, and last1346fall, the National Academies of Sciences published a report1347detailing the risks posed by long trains, defined as those1348longer than 7,500 feet. These trains, especially trains made of1349several different types of railcars, are subject to in-train1350forces that can make it challenging for an engineer to control.1351I know communities in my district--and I am certain around the1352country--express concerns with longer and longer trains, citing1353derailments.1354 We are working on a few of those issues in my district,1355including a recent Railroad Crossing Elimination Grant in1356Everett, Washington. These types of grants are available1357through the FRA and available to any Member of Congress'1358district to apply for. And I encourage you all to consider1359that.1360 I just want to end by saying that I know everyone on this1361committee wants to ensure freight rail remains a safe way to1362transport goods across the country. I look forward to working1363with all of you to achieve that goal. I am committed to1364building on the successes of the investments in the BIL and1365ensuring this committee can say that America builds rail at1366hearings for many years to come.1367 I want to thank the witnesses for being here, and look1368forward to the discussion. Thank you.1369 I yield back.1370 [Mr. Larsen of Washington's prepared statement follows:]13711372 Prepared Statement of Hon. Rick Larsen, a Representative in Congress1373 from the State of Washington, and Ranking Member, Committee on1374 Transportation and Infrastructure1375 Thank you, Chairman Webster and Ranking Member Titus, for holding1376today's hearing.1377 I am glad we are following yesterday's hearing on building1378highways, roads and bridges with this hearing on rail.1379 The BIL has helped create 1.6 million construction and1380manufacturing jobs across the country.1381 These jobs with good wages, benefits and working conditions are1382driving the low, 4.1 percent unemployment rate while modernizing our1383infrastructure, including our rail infrastructure.1384 As I said in yesterday's hearing, this makes it hard to understand1385how on his first day in office, the Administration issued an Executive1386Order to halt this progress, to put millions of dollars, hundreds of1387thousands of jobs and thousands of projects at risk.1388 Halting the flow of benefits from these appropriations already1389approved by Congress is a strange way to launch the golden age of1390infrastructure. Instead, we should be working on a bipartisan basis to1391continue investments in all modes--in particular, as we will discuss1392today, rail. Let's keep it going.1393 The Bipartisan Infrastructure Law (BIL) provided transformational1394funding for passenger rail.1395 For the first time since the founding of Amtrak, intercity1396passenger rail has guaranteed funding: five years of advanced1397appropriations that allows Amtrak to address decades of deferred1398maintenance and begin construction on long-delayed capital projects.1399 Before the BIL, Amtrak would have to wait until Congress completed1400the annual appropriations process to find out its capital and operating1401budget. That is no way to run a railroad.1402 The BIL has invested nearly $53 billion for 594 projects to improve1403rail safety and expand passenger rail travel nationwide.1404 In my state, Cascadia Ultra-High-Speed Ground Transportation1405project recently advanced to Phase Two of the Corridor Identification1406and Development program.1407 Cascadia will connect people and communities, increase economic1408competitiveness and improve the quality of life across the Pacific1409Northwest with high-speed rail between Vancouver, B.C., Seattle, and1410Portland, Oregon. It will connect workers in my district to good jobs,1411increase access to housing and offer greater mobility for almost ten1412million people.1413 Similarly, the Federal-State Partnership for Intercity Passenger1414Rail is matching billions of dollars in state and private investment in1415passenger rail improvements.1416 These investments include the Brightline West project as Ranking1417Member Titus' noted and Southeast Corridor improvements in North1418Carolina and Virginia.1419 We have a need for guaranteed funding for rail. Public investment1420is vital to building a truly national intercity passenger rail system.1421Every passenger rail system in the world depends on some form of public1422investment to run smoothly.1423 Last week, the Federal Railroad Administration released a report in1424support of additional long-distance service that incorporates feedback1425from 50,000 stakeholder and public comments. Amtrak will need new1426equipment, and in some cases new stations, to address these service1427improvements.1428 We also have an obligation to ensure that rail travel remains safe1429for people and goods, and safe for communities. I welcome Secretary-1430Designate Duffy's commitment to safety as the highest priority for the1431Department of Transportation, and I look forward to working with him to1432reduce accidents and save lives.1433 Unfortunately, Class One freight railroad accident and incident1434rates have not significantly improved over the last 10 years.1435 In my state, there were 202 train accidents, 192 grade crossing1436incidents and 21 railroad right-of-way trespasser fatalities over the1437last five years, including a Burlington Northern Santa Fe (BNSF)1438derailment that spilled over 3,000 gallons of diesel fuel on the1439Swinomish Indian Reservation in March 2023.1440 One major cause of incidents is longer trains. Last fall, the1441National Academies of Sciences published a report detailing the risks1442posed by long trains--defined as those longer than 7,500 feet.1443 These trains, especially trains made up of several different types1444of rail car, are subject to in-train forces that can make it1445challenging for an engineer to control.1446 I know communities in my district and around the country express1447concerns with longer and longer trains--citing derailments.1448 We're working on a few of those issues in my district, including1449the recent Railroad Crossing Elimination grant in Everett, Washington.1450These types of grants are available through the FRA and available for1451any community in Member of Congress' districts to apply for, and I1452encourage all of you to consider that.1453 Every member on this Committee wants to ensure that freight rail1454remains a safe way to transport goods across the country, and I look1455forward to working with my colleagues to achieve that goal.1456 I am committed to building on the successes of the investments in1457the BIL and ensuring this Committee can say ``America Builds Rail'' at1458hearings for many years to come.1459 Thank you to the witnesses for being here, and I look forward to1460the discussion.14611462 Mr. Webster of Florida. Briefly, I would like to take a1463moment to explain our lighting system in front of you. Green1464means go; you can talk. Yellow means slow it down, and red1465means stop. So that is when you conclude your remarks.1466 I ask unanimous consent that the full statements of the1467witnesses be included in the record.1468 Without objection, show that ordered.1469 I ask unanimous consent that the record of today's hearing1470remain open until such time as our witnesses have provided1471answers to any questions that may be submitted to them in1472writing.1473 Without objection, show that ordered.1474 I ask unanimous consent that the record remain open for 151475days for additional comments or information submitted by1476Members or witnesses to be included in the record of today's1477hearing.1478 Without objection, show that ordered.1479 As your written testimony has been made part of the record,1480the subcommittee asks that you limit your oral remarks to 51481minutes.1482 And, with that, Mr. Jefferies, you are recognized.14831484 TESTIMONY OF IAN JEFFERIES, PRESIDENT AND CHIEF EXECUTIVE1485 OFFICER, ASSOCIATION OF AMERICAN RAILROADS; CHUCK BAKER,1486 PRESIDENT, AMERICAN SHORT LINE AND REGIONAL RAILROAD1487 ASSOCIATION; JOSEPH DALOISIO III, TRACK DIVISION MANAGER,1488 RAILROAD CONSTRUCTION COMPANY, INC., AND CHAIRMAN, NATIONAL1489 RAILROAD CONSTRUCTION AND MAINTENANCE ASSOCIATION; AND JARED1490CASSITY, DEPUTY NATIONAL SAFETY AND LEGISLATIVE DIRECTOR, SHEET1491 METAL, AIR, RAIL AND TRANSPORTATION WORKERS-TRANSPORTATION1492 DIVISION (SMART-TD)14931494 TESTIMONY OF IAN JEFFERIES, PRESIDENT AND CHIEF EXECUTIVE1495 OFFICER, ASSOCIATION OF AMERICAN RAILROADS14961497 Mr. Jefferies. Chairman Webster, Ranking Member Titus,1498members of the subcommittee, thank you for the opportunity to1499testify today on the topic of surface transportation1500reauthorization. My name is Ian Jefferies, and I serve as the1501president and CEO of the Association of American Railroads,1502where we represent the Nation's major freight railroads.1503 I am honored today to discuss the vital role railroads play1504for our Nation and the policies needed to support continued1505success. Railroads are a cornerstone of the U.S. economy.1506Operating a network of over 140,000 miles, freight rail is1507exceptionally safe, economically vital, and privately funded.1508Unlike other transportation modes, freight railroads build,1509maintain, and invest in their infrastructure almost entirely1510without Federal funding.1511 Since 1980, the industry has invested more than $6901512billion in private capital, over $1.1 trillion in today's1513dollars, into maintaining and improving our network. That1514equates to an impressive $23 billion per year, or $442 million1515per week, every week, every year. This level of self-1516sufficiency is unmatched in the transportation sector and1517ensures that railroads remain a reliable backbone in the supply1518chain.1519 It also tracks one to one with safety, which is at the1520heart of everything we do.1521 The last decade has been the safest in rail history. Last1522year was safer than the year before and the year before that.1523Significant declines in train accidents, employee injuries, and1524grade crossing installations are the result.1525 Led by an unwavering employee commitment, railroads today1526lead major industries in worker safety, safer than trucking,1527safer than airlines, safer than manufacturing, construction,1528and agriculture--just to name a few.1529 Yet our work in this space is never finished. Economically,1530freight rail supports nearly every industry, moving 1.5 billion1531tons of goods each year. That is 40 percent of all long-haul1532freights. From ag products to automobiles, chemicals to1533consumer goods, railroads connect communities and businesses,1534the country, and beyond. Railroads' efficiency saves businesses1535billions annually and enhances U.S. global competitiveness.1536With rail rates 42 percent below where they were in 1980, we1537are an ally in the ever-present fight against inflation.1538 And our environmental impact is another advantage. Freight1539rail is three to four times more fuel efficient than our1540trucking partners. We reduce greenhouse gas emissions by up to154175 percent comparatively. As the demand for transportation1542grows, railroads are well positioned to meet continuing1543challenges.1544 And it makes good business sense to be more efficient, as1545fuel is the second largest cost of our operations.1546 As this committee begins to consider the next surface1547transportation bill, we encourage Congress to prioritize1548policies that uphold our ability to invest in infrastructure,1549support innovation, and advance data-driven safety1550improvements. We urge outcomes-based regulation to enable1551further deployment of next-generation technologies. Automated1552track inspections, for example, can improve safety outcomes but1553have been hindered by outdated requirements that mandate manual1554inspections. A nimbler regulatory approach would allow1555railroads to innovate while advancing rigorous safety1556standards.1557 Policies should be geared to meet specific challenges. If a1558policy cannot be said what problem it is solving, then I1559question its validity.1560 Additionally, Congress should address the insolvency of the1561Highway Trust Fund. The CBO projects that, without legislative1562action, the Highway Trust Fund will face insolvency by 2028,1563accumulating a $280 billion deficit by 2034--only increasing in1564reliance on general fund transfers, like the $118 billion1565provided under the IIJA.1566 Reauthorization must also reject calls to increase truck1567size and weight limits, which would exacerbate these funding1568gaps, degrade roads, further increase congestion on our already1569clogged highways, and further create a competitive imbalance1570against our largest competitor.1571 Additionally, programs, such as the Railroad Crossing1572Elimination Grant Program, are crucial in collaborating with1573our public partners to improve grade crossing safety and reduce1574accidents. Commonsense permitting reforms can also put dollars1575to work more quickly.1576 Freight railroads will continue supporting the economy and1577driving growth through investment and innovation. We look1578forward to working with this committee to ensure the policies1579enacted in the reauthorization enable the freight rail industry1580to drive safety, efficiency, and economic growth for years to1581come.1582 Thank you. And I look forward to your questions.1583 [Mr. Jefferies' prepared statement follows:]15841585 Prepared Statement of Ian Jefferies, President and Chief Executive1586 Officer, Association of American Railroads1587 On behalf of the members of the Association of American Railroads1588(AAR), thank you for the opportunity to discuss the reauthorization of1589federal surface transportation legislation. AAR freight railroad1590members account for some 84 percent of U.S. freight railroad mileage,159193 percent employees, and 97 percent of revenue. The major freight1592railroads in Canada and Mexico are AAR members, as are Amtrak and1593several commuter rail systems.1594 For those who may be less familiar with the AAR, we've been around1595for 90 years, though our predecessors date back to the early days of1596railroading in the 19th century. We advocate for policies that promote1597the economic and operational health of the freight rail industry and1598that allow railroads to better serve their customers, the communities1599in which they operate, and the broader economy.1600 AAR's members are committed to working cooperatively with their1601employees, their customers, policymakers, and others to help railroads1602meet the freight transportation needs of our country safely and1603efficiently.1604 America Benefits Greatly When Freight Moves by Rail1605 America's freight rail network is the best in the world, spanning1606more than 135,000 route-miles.\1\ By linking businesses to each other1607domestically and abroad, freight railroads have played an essential1608role in America's economic development for nearly 200 years.1609---------------------------------------------------------------------------1610 \1\ Route-miles refers to the length of a single rail route even if1611the track is double or triple-tracked in some sections. Including1612parallel tracks, rail yards, and sidings adds tens of thousands of1613miles to the rail mileage total.1614---------------------------------------------------------------------------16151616 North America's Freight Rail Network16171618 Freight railroads remain indispensable today, serving nearly every1619industrial, wholesale, retail, and resource-based sector of our1620economy. They carry enormous amounts of corn, wheat, soybeans, and1621other farm products; fertilizers, plastic resins, and a vast array of1622other chemicals; coal to generate electricity; cement, sand, and1623crushed stone to build our highways; lumber and drywall to build our1624homes; animal feed, canned goods, corn syrup, frozen chickens, beer,1625and countless other food products; steel and other metal products;1626newsprint and other paper products; autos and auto parts; iron ore for1627steelmaking; wind turbines; airplane fuselages; machinery and other1628industrial equipment; and much more.1629 Meanwhile, rail intermodal--the transport of shipping containers1630and truck trailers on railroad flatcars--has grown tremendously over1631the past 30 years. Today, just about everything found on a retailer's1632shelves may have traveled on an intermodal train. Large amounts of1633industrial goods, such as auto parts, are transported by intermodal1634trains as well.1635 Each year, railroads move more than 1.5 billion tons of freight and163628 million carloads and intermodal units nearly 1,000 miles on average1637per shipment, underscoring their critical role in the U.S. economy.1638However, freight railroads contribute to our nation in many other ways1639and help explain why supporting freight rail is sound public policy:1640 Safety. Safety is the top priority for railroads, and the1641industry is steadfast in its commitment to reducing accident frequency1642and severity and enhancing safety measures. While any train accident is1643one too many, data from the Federal Railroad Administration (FRA)1644indicate moving freight by rail is extremely safe. Between 2000 and16452023, the train accident rate decreased by 24% and the employee injury1646rate dropped by 49%. Railroads today have lower employee injury rates1647than most other major industries, including trucking, airlines,1648agriculture, mining, manufacturing, and construction--even grocery1649stores. The grade crossing collision rate in 2023 was down 37 percent1650from 2000. By these and other measures, the past decade has been the1651safest in rail history thanks to continuous improvements through1652investments in technology, infrastructure and training.16531654 The Environment. Moving freight by rail meaningfully1655reduces greenhouse gas emissions while helping the economy. On average,1656railroads are three to four times more fuel efficient than trucks,1657meaning that moving freight by rail instead of truck reduces greenhouse1658gas emissions by up to 75 percent.16591660 Re-Investments. Unlike trucks, barges, and airlines,1661America's privately-owned freight railroads operate overwhelmingly on1662infrastructure they own, build, maintain, and pay for themselves. From16631980 to 2024, America's freight railroads spent more than $830 billion1664($1.3 trillion in today's dollars) of their own funds on capital1665expenditures and upkeep expenses related to locomotives, freight cars,1666tracks, bridges, tunnels and other infrastructure and equipment.1667``Crumbling'' might describe some U.S. infrastructure, but not freight1668rail. The American Society of Civil Engineers has consistently1669recognized these achievements, awarding rail the highest grade of all1670American infrastructure.\2\ Freight rail infrastructure is in better1671overall condition than ever before.1672---------------------------------------------------------------------------1673 \2\ See American Society of Civil Engineers, 2023 Report Card for1674America's Infrastructure (available at: https://1675infrastructurereportcard.org/).16761677 Affordability. The affordability of freight rail saves1678rail customers billions of dollars each year, enhances the global1679competitiveness of U.S. products, and helps American consumers. Average1680rail rates (measured by inflation-adjusted revenue per ton-mile) were168142 percent lower in 2023 than in 1981. Millions of Americans work in1682industries that are more competitive in the tough global economy thanks1683to the affordability and productivity of America's freight railroads.1684Changes in rail rates over time compare extremely favorably to changes1685in the prices of goods we buy every day.16861687 Appealing Jobs. The approximately 140,000 freight rail1688employees are among America's most highly compensated workers. In 2023,1689the average U.S. Class I freight rail employee earned wages of $112,6001690and fringe benefits of $36,300, for total compensation of $149,000. By1691contrast, the average wage per full-time equivalent U.S. employee in16922023 was $80,300 (71 percent of the rail figure) and average total1693compensation was $97,200 (65 percent of the rail figure). Finally, the1694median tenure of railroad employees is 13 years, compared to 3.9 years1695for private sector workers.16961697 Fighting Highway Congestion. Because a single train can1698replace several hundred trucks, railroads reduce highway gridlock and1699the need to spend taxpayer dollars on highways.17001701 International Trade. Without railroads, American firms1702and consumers would be unable to participate in the global economy1703anywhere near as fully as they do today.17041705 Passenger rail. Freight railroads provide a crucial1706foundation for passenger rail. More than 70 percent of the miles1707traveled by Amtrak trains are on tracks owned by other railroads--1708mainly freight railroads. In addition, approximately half of America's1709commuter railroads operate at least partially on right-of-way owned by1710freight railroads.1711 Looking Ahead to Surface Transportation Reauthorization1712 The rail industry respectfully suggests that a series of1713overarching principles should guide surface transportation1714reauthorization. Adherence to these principles would enhance our1715nation's ability to transport people and goods safely, efficiently, and1716cost-effectively.17171. Restore the Highway Trust Fund (HTF) to a True User-Based System1718 The United States has historically relied on a user-pays system to1719fund investments in highway infrastructure. Unfortunately, revenues1720into the HTF have failed to keep pace with spending needs. According to1721the Congressional Budget Office (CBO), balances in both the highway and1722transit accounts of the HTF will be exhausted in 2028. The CBO says1723that if the taxes that are currently credited to the trust fund1724remained in place and if funding for highway and transit programs1725increased annually at the rate of inflation, the shortfalls accumulated1726in the HTF highway and transit accounts from 2024 to 2033 would total1727$241 billion.\3\1728---------------------------------------------------------------------------1729 \3\ Testimony of Chad Shirley, Principal Analyst Microeconomic1730Studies Division, Congressional Budget Office, Before the U.S. House of1731Representatives Subcommittee on Highways and Transit, Committee on1732Transportation and Infrastructure, October 18, 2023.1733---------------------------------------------------------------------------1734 This shortfall has previously been covered by transfers from the1735general fund, but general fund transfers to the HTF distort the freight1736transportation marketplace in favor of trucking and put other1737transportation modes at an unfair competitive disadvantage. This is1738especially problematic for railroads, which build, maintain, and pay1739for their own infrastructure.1740 Studies indicate that trucks cause the overwhelming majority of the1741damage to our nation's roads and bridges as compared to other vehicles,1742and the fuel taxes and other fees heavy trucks pay do not come close to1743covering the costs of that damage.\4\ The taxes and fees trucks pay to1744help maintain our nation's roads and bridges have not been1745substantially changed since 1993, resulting in a multibillion-dollar1746annual underpayment compared to the damage they cause.1747---------------------------------------------------------------------------1748 \4\ Congress should require that the Federal Highway Administration1749finalize the highway cost allocation study required in the last surface1750transportation reauthorization. This would provide needed precision1751regarding the damage to our nation's roadways caused by each highway1752user class.1753---------------------------------------------------------------------------1754 Congress should remedy this modal inequity by either increasing the1755fuel tax or imposing a vehicle-miles traveled fee or a weight-distance1756fee for motor carriers. An appropriate user fee would be self-1757sustaining; would not increase taxes or fees for non-highway1758transportation modes; and would create a competitive tax environment1759across modes.1760 On a related note, Congress should reject calls to increase federal1761truck size and weight limits until, at a minimum, trucks pay the full1762cost of the damage they cause to our roads and bridges. The1763multibillion-dollar annual underpayment would become even greater if1764truck length and weight limits were increased. Raising truck size and1765weight limits would also artificially shift freight from rail to truck.1766Given rail's inherent environmental advantages and the many other1767benefits of moving freight by rail, imposing artificial impediments to1768rail, such as increasing federal truck size and weight limits, is not1769sound policy.17702. Improve Safety by Allowing Railroads to Innovate and Deploy Safety1771 Technologies1772 New technologies are changing transportation. For example,1773widespread efforts are underway today to develop autonomous motor1774vehicles, including autonomous trucks that would compete directly with1775railroads. Autonomous vehicle technologies and other technologies1776impacting transportation vary in their stage of development, presenting1777challenges and opportunities that railroads must be able to address.1778 This means railroads must themselves look to new technologies to1779make their operations safer and more efficient. The use of technology1780to improve safety and efficiency is nothing new for railroads, but it's1781taken on a new urgency as transportation markets have evolved.1782 The further use of emerging technologies to enhance rail safety and1783operations, however, will be needlessly stunted if regulators at the1784FRA and elsewhere in DOT fail to embrace technological change, or if1785they lock in existing technologies and processes so that new1786innovations and new technologies that could improve safety and improve1787efficiency are stifled.1788 For example, automated track inspection can improve detection of1789defects and dramatically reduce response time leading to fewer track-1790related accidents. Safety data collected from automated track1791inspection programs clearly support further deployment of this1792important technology. Unfortunately, due to the existing regulatory1793framework, the railroad industry is prevented from using the optimal1794combination of automated track inspections and manual inspections that1795would yield significant safety benefits.1796 As a result, this regulatory framework creates disincentives for1797the development and use of emerging technologies that would ultimately1798enhance rail safety and efficiency. Railroads will continue to develop1799and implement new technologies, but achieving maximum benefit will1800require regulatory flexibility that allows railroads to find what works1801best and encourages railroads to keep investing in those technologies.18023. Provide Robust Funding For and Streamline Safety-Enhancing Grant1803 Programs1804 Collisions at highway-rail crossings are a serious safety concern.1805According to the FRA, in 2023 the nearly 2,200 grade crossing1806collisions were associated with more than 240 fatalities and 7701807injuries. These accidents can also involve significant property damage,1808clean-up costs, and costs associated with motorist and train delays1809while the accident is investigated and cleared. We should also remember1810the forgotten victims of grade crossing accidents: train crews, who are1811usually helpless (and blameless) in terms of preventing an accident but1812who have a front and center view of the tragedy and must live forever1813with its memory. Grade crossing incidents typically arise from factors1814outside railroad control, and highway-rail crossing warning devices are1815there for the benefit of motorists, not trains. Nevertheless, railroads1816are committed to reducing the frequency of crossing incidents.18171818 Section 130 of the Surface Transportation and Uniform Relocation1819Assistance Act of 1987, provides HTF money to states and local1820governments to eliminate or reduce hazards at highway-rail crossings.1821The Section 130 program has been retained under subsequent legislation.1822Most recently, the Infrastructure Investment and Jobs Act (IIJA)1823allocates $245 million in Section 130 funds each year through 2026 for1824installing new and upgraded warning devices and for improving grade1825crossing surfaces. The program has helped prevent tens of thousands of1826fatalities and injuries associated with crossing accidents. Section 1301827funding should continue at current or higher levels.1828 The safest grade crossing is the crossing that is not there. That's1829why the elimination of grade crossings yields the biggest safety1830benefit, and why railroads strongly support the Railroad Crossing1831Elimination Grant Program (RCE). This competitive grant program, run by1832the FRA and created by the IIJA, provides more than $500 million per1833year through 2026 to local and state governments and other public1834entities for grade separation or closure, track relocation, and the1835improvement or installation of grade crossing warning devices. Earlier1836this month, the FRA announced the most recent RCE grants, which total1837more than $1.1 billion and will fund 123 projects associated with more1838than 1,000 grade crossings nationwide. Railroads commend policymakers1839for creating and funding this important program and respectfully1840suggest the program should be expanded to further improve grade1841crossing safety.18424. Support Funding Public Entities Partnering with Host Freight1843 Railroads1844 The freight rail industry supports funding for grant programs that1845enable the public sector, including state and local governments, to1846partner with freight railroads and others to advance projects of mutual1847interest that improve the overall fluidity of supply chains, reduce1848highway and port congestion, improve safety, facilitate passenger rail,1849and improve the quality of life for communities. To that end, the1850following U.S. DOT programs should continue to be authorized at1851existing or increased levels:1852 The Infrastructure for Rebuilding America (INFRA) grant1853program. INFRA funds projects that address significant challenges in1854U.S. transportation infrastructure, particularly highways, bridges,1855railroads, and ports. INFRA encourages the use of private investments,1856state and local funding, and innovative financing to maximize the1857impact of federal dollars. INFRA prioritizes projects that demonstrate1858a significant regional or national impact, alignment with national and1859economic priorities, and readiness for implementation.18601861 The National Infrastructure Project Assistance grant1862program. Often referred to as the ``Mega'' grant program, this federal1863initiative is designed to support transformational infrastructure1864projects that have significant national or regional impact and are too1865large or complex to be funded by other federal programs alone. Examples1866include large highway expansions, major bridge replacements, and1867multimodal freight and passenger transportation projects. Mega grants1868prioritize projects that combine federal support with state, local, and1869private sector funding, ensuring a shared commitment.18701871 The Rebuilding American Infrastructure with1872Sustainability and Equity program. Formerly known as TIGER1873(Transportation Investment Generating Economic Recovery) and later1874BUILD (Better Utilizing Investments to Leverage Development), RAISE is1875a discretionary funding initiative that provides competitive grants to1876support infrastructure projects with a focus on sustainability, equity,1877and innovation. By prioritizing projects that align with national and1878local priorities, RAISE contributes to the development of modern,1879resilient, and equitable transportation infrastructure across the1880country.18811882 The Consolidated Rail Infrastructure and Safety1883Improvements (CRISI) program. CRISI grants are designed to enhance the1884safety, efficiency, and reliability of U.S. freight and passenger rail1885systems. Program goals include improving safety through projects that1886improve rail infrastructure and reduce accidents and fatalities;1887modernizing aging rail infrastructure to enhance reliability and1888capacity; supporting efficient goods movement; and bolstering local and1889regional economies. Emphasis is placed on projects that provide public1890benefits, particularly in rural areas and for smaller railroads.18911892 Federal-State Partnership for Intercity Passenger Rail1893(FSP) grant program. This program focuses on ensuring the safety,1894reliability, and efficiency of passenger rail by funding projects that1895bring rail assets to a state of good repair. Eligible projects include1896replacing or rehabilitating deteriorating infrastructure, such as1897tracks, bridges, tunnels, or signal systems; modernizing rail equipment1898or facilities to improve safety and efficiency; and addressing deferred1899maintenance. The program typically requires state or local governments1900or other non-federal entities to contribute matching funds.19011902 These essential programs are partnerships that solve critical1903transportation challenges by combining federal and non-federal1904resources for specific projects. Without these partnerships, many1905projects that promise substantial public benefits (such as reduced1906highway congestion or increased rail capacity for use by passenger1907trains) in addition to private benefits (such as enabling faster1908freight trains) are likely to be delayed or never started because none1909of the involved parties can justify the full investment needed to1910complete them by themselves.19115. Streamline the Environmental Permitting Process1912 While efforts to cut red tape associated with infrastructure1913project approval and construction have borne some fruit in recent1914years, more can still be done to fast-track routine rail construction1915projects without ignoring environmental or historical preservation1916concerns.1917 For example, policymakers could codify that, for rail projects1918whose purpose is to replace existing infrastructure on existing1919operating railroad right-of-way, a categorical exclusion and a finding1920of no significant impact are the only NEPA documentations necessary.\5\1921In addition, policymakers could convert to statute select executive1922orders on streamlining the permitting process, such as timeclocks,1923intermediate deadlines, and One Decision.\6\ Policymakers could also1924continue to streamline the ``Section 106'' historic preservation1925process for projects needed to enhance or maintain rail1926infrastructure.\7\1927---------------------------------------------------------------------------1928 \5\ The National Environmental Policy Act (NEPA) requires federal1929agencies to assess the environmental impacts of their proposed actions1930before making decisions. A categorical exclusion is a category of1931actions determined not to have significant environmental impacts,1932allowing them to bypass detailed reviews like Environmental Assessments1933(EA) or Environmental Impact Statements (EIS). A finding of no1934significant impact (FONSI) is a determination that a proposed project,1935based on an EA, will not significantly impact the environment,1936eliminating the need for a more detailed EIS. A FONSI ensures1937environmental oversight while allowing projects with minimal impacts to1938proceed efficiently.1939 \6\ ``One Decision'' in the context of permitting for large1940projects refers to a streamlined approach where a designated lead1941agency coordinates all necessary reviews and approvals from multiple1942entities to deliver a single, consolidated decision within a clear1943timeframe. This method reduces duplication, ensures regulatory1944certainty, and accelerates project timelines by aligning agency efforts1945and eliminating conflicting requirements.1946 \7\ Section 106 of the National Historic Preservation Act requires1947federal agencies to assess the impact of their projects on historic1948properties. Streamlining this process means making the review and1949consultation more efficient, potentially speeding up decisions without1950sacrificing protections for historic sites.1951---------------------------------------------------------------------------1952 These approaches to environmental review would expedite projects1953that would enhance supply chain fluidity while ensuring comprehensive1954and effective environmental reviews are maintained. The environment1955would still be protected, while supply chains would benefit from1956greater efficiency and more environmentally friendly performance.19576. Oppose Policies that Harm Railroads' Ability to Operate Safely and1958 Efficiently1959 Railroads respectfully urge members of this committee and other1960policymakers to reject policy riders to surface transportation1961legislation that would hinder railroads' ability to operate safely and1962efficiently.1963 Minimum Crew Size1964 For example, policymakers should oppose proposals mandating two1965crew members in freight locomotive cabs. There is no quantitative1966evidence that a two-person crew mandate would enhance safety. Moreover,1967a two-person mandate could stifle the adoption of new technologies that1968would enhance safety. Railroads aren't seeking the ability to impose1969one-person crews haphazardly or unilaterally. Rather, they seek1970flexibility to continue to work with rail labor under the existing1971collective bargaining framework--as they have for decades--to identify1972when conditions allow a reduction in the number of crewmembers without1973jeopardizing safety.1974 Technology Mandates1975 Likewise, technology mandates should be avoided. Flexible,1976technology-driven solutions are preferable to rigid regulatory1977requirements. For example, advances in on-board monitoring systems and1978automated data collection are likely to be just as effective, or more1979so, in detecting potential problems without the need for fixed wayside1980detectors at prescribed distances. Regulatory flexibility regarding1981technology allows for better allocation of resources, focusing on1982specific track conditions and areas with higher risks instead of1983adherence to arbitrary rules. More broadly, any new operational1984restrictions should be science-based and data-driven, designed to1985correct a specific problem, and incorporate solutions to address that1986deficiency as efficiently as possible. Otherwise, the nation's freight1987supply chain would be needlessly weakened.1988 Access to Railroad Rights-of-Way1989 Legislative or regulatory actions aimed at granting access to1990railroad rights of way to non-railroad entities, such as1991telecommunications companies, must be carefully proscribed. Safety must1992be the top priority. Railroads must have sufficient time and1993information to process applications for access, and railroads should be1994given fair and complete reimbursement, including reimbursement of any1995out-of-pocket costs associated with facilitating that access and work1996associated with it. To prevent a hodgepodge of conflicting state1997requirements, laws governing access to the right-of-way should be1998uniform across the country. Finally, the U.S. DOT, not the FCC nor any1999state or local entities, must be the primary overseer of these2000agreements.2001 Marijuana Reclassification2002 Finally, as the Drug Enforcement Agency continues to analyze a2003proposal to reschedule marijuana from a Schedule I to a Schedule III2004drug, Congress should ensure that employers whose employees conduct2005safety-sensitive activities each day, like the railroads, maintain the2006ability to drug test employees for marijuana usage and treat positive2007tests as proof of unacceptable employee conduct.2008 Cargo Theft2009 In recent years, the freight rail network has seen a sharp increase2010in incidents of theft, with criminals targeting high-value goods such2011as electronics and consumer products, and unintentionally impact food2012and medicine shipments. These thefts have become more organized and2013sophisticated, with the total costs for the freight rail industry2014anticipated to exceed $100 million annually for 2024. While these2015criminals have targeted nearly every mode, the disruptions to freight2016rail operations are acutely felt, as incidents can involve damage to2017rail equipment that forces trains to stop, thereby resulting in costly2018delays in service that ripple across the interconnected network.2019 This growing threat requires urgent attention, and while it may not2020neatly fit within the scope of traditional surface transportation2021reauthorization, federal resources must be allocated to address the2022problem. A dedicated federal response is crucial to disrupting these2023criminal elements, supporting ongoing enforcement efforts, and2024protecting the integrity of the freight rail system. This intervention2025must be paired with timely, efficient, and effective prosecutions at2026the federal, state, and local levels of the individuals and2027organizations committing the thefts. Without federal intervention,2028industry's vulnerability to theft will continue to escalate,2029undermining the efficiency of the broader supply chain and costing2030stakeholders and consumers significantly.2031 Conclusion2032 America's freight railroads are a vital national resource. With2033highway congestion becoming more acute and with public pressure growing2034to combat climate change, conserve fuel, and promote safety, railroads2035are well positioned to take on a larger role in meeting these2036challenges, given their substantial advantages in these areas over2037other transportation modes. Demands for use of freight-owned track by2038passenger trains are mounting and will probably continue to grow. And,2039of course, as our economy evolves, railroads will continue to be called2040upon to make additional investments in their networks to provide the2041efficient, reliable, and cost-effective freight transportation service2042that their customers, and our nation, need to prosper.2043 For that to happen, members of this committee and others must craft2044appropriate policies. Freight railroads stand ready to work with you to2045ensure that our nation's transportation needs are met in a responsible,2046environmentally sound, and safe manner.20472048 Mr. Webster of Florida. Thank you very much.2049 Mr. Baker, you are recognized for 5 minutes.20502051 TESTIMONY OF CHUCK BAKER, PRESIDENT, AMERICAN SHORT LINE AND2052 REGIONAL RAILROAD ASSOCIATION20532054 Mr. Baker. Thank you. Good morning, I am Chuck Baker,2055president of the American Short Line and Regional Railroad2056Association, representing the Nation's 600 small Class II and2057III freight railroads. Short lines are the first and last miles2058of the freight rail network. We move industrial, agricultural,2059and energy products between ports, factories, and farms, and2060the larger Class I railroads, which connect us to the national2061and global markets.2062 Short lines used to be the unprofitable branch lines of the2063larger railroads. Following partial deregulation, rather than2064abandon those lines, the Class I's sold those lines to local2065entrepreneurs. Those newly minted short lines didn't have much2066traffic and weren't in great shape, but the local folks who2067took over these lines were eager to make a go of it. They ran2068efficiently, focused on getting just one more new customer or2069carload, and bent over backwards to serve their existing2070customers, and it worked.2071 Today, short lines are critical in your communities and2072ensure that the goods your constituents rely upon to get to2073their homes and businesses safely and affordably. We now manage207450,000 miles of track, which is one-third of the freight rail2075network, and touch one-fifth of all carloads but only account2076for about 6 percent of the industry's total revenue. So short2077lines are small businesses, but we have a large impact on the2078U.S. economy.2079 We operate in 49 States, support 478,000 jobs, and produce2080$56 billion in value added to the economy.2081 For decades, members of this subcommittee have supported2082policies that allow short lines to survive and thrive. Almost2083every one of you has a short line in your district. Chairman2084Webster has two with the Florida Central and Florida Midland.2085Congressman Garcia has nine. Congressman Westerman, who is not2086here at the moment, he has 15. That is the most of anybody in2087Congress. Congressman Begich in Alaska is one of the States2088where short lines are the entire freight rail network in the2089State.2090 The title of this hearing is ``America Builds,'' and short2091lines are indeed eager to build. The next surface2092transportation reauthorization bill will have a long-term2093impact on the country. Our top priority in that bill is robust2094funding for the CRISI Program. It is the only Federal program2095that short lines are directly eligible for, and it has been2096transformational: 240 short line CRISI grants have been2097awarded. These are bridge rehabilitations, tie changeouts, and2098rail replacement projects that simply would not have been2099possible without CRISI.2100 With March approaching, to use a college basketball2101analogy, CRISI helps get projects off of the bubble and into2102the big dance. Because of CRISI, short line railroads are safer2103and customers are better served. Small towns and rural2104communities have new jobs. The air is cleaner. Streets are less2105congested, and taxpayers are on the hook for less highway2106maintenance.2107 My testimony provides a lengthy list of completed CRISI2108projects with specific statements of support. Here is one2109example: the plant manager of the wood panel processing2110facility in northeastern Michigan said, ``Lake State Railway's2111service has allowed our operation to be cost-competitive2112despite our remote location. CRISI has allowed us to load2113286,000-pound railcars, reducing our cost and helping to ensure2114our long-term success.''2115 Beyond robust funding, CRISI also needs advance2116appropriations to continue to be most effective. For long-term2117infrastructure investments, certainty and predictability are2118crucial. To make CRISI even more effective, we need to speed up2119the process and shorten the time from announcement to2120obligation. Good options include batch processing of NEPA2121categorical exclusions, more aggressive use of pre-award2122authority, or simply setting deadlines. This program can move2123faster with no real additional risk, and that would be good for2124getting America to build.2125 On the safety and regulatory front, I would ask that the2126committee keep the big picture in mind. Rail is the safest mode2127of surface transportation, and the industry is already highly2128regulated. Any new regulations should be focused on solving2129actual safety problems and be practical for short line2130railroads to implement.2131 For short lines, the biggest derailment risk comes from2132broken rail and wide gauge. And the best way to fix that is2133simply to invest in the track, and that is what CRISI already2134does. For railroads in general, the biggest safety risk comes2135from grade crossing and trespasser accidents. The Section 1302136Program and the Rail Crossing Elimination Program address those2137issues, as does support for Operation Lifesaver.2138 Finally, I ask the Congress not increase the size and2139weight of trucks on our Nation's already overcrowded, under2140maintained, and excessively dangerous highway system. We are2141joined by a broad coalition of cities, counties, police, first2142responders, labor organizations, and highway safety groups in2143that request. For railroads, trucks are direct competition.2144They already don't pay their fair share of highway maintenance,2145and making them bigger would make that problem worse. It would2146shift freight from rail to truck, and we would end up with not2147only bigger trucks, but more of them, too.2148 Thank you.2149 [Mr. Baker's prepared statement follows:]21502151 Prepared Statement of Chuck Baker, President, American Short Line and2152 Regional Railroad Association2153 Thank you for the opportunity to testify to this subcommittee as2154you examine America's freight rail network and discuss the future of2155rail infrastructure funding in America and how America builds.2156 My name is Chuck Baker, and I am the President of the American2157Short Line and Regional Railroad Association (ASLRRA). Our association2158represents over 600 Class II and Class III small business freight2159railroads across the nation. These railroads, commonly referred to as2160short line railroads, are the essential ``first-mile, last-mile'' lines2161of the freight rail network.2162 Industry Overview2163 The short line industry is a great American success story. It is a2164story about entrepreneurs taking financial risks to purchase and2165preserve 50,000 miles of rail line, most of which was headed for2166abandonment; about keeping rural and small-town shippers connected to2167the national railroad network; about small businesses investing a huge2168portion of their revenue to improve the efficiency and safety of aging2169railroad infrastructure. For decades, the Members of this Subcommittee2170have devoted the time and effort needed to understand our industry and2171have been the leading congressional advocates for public policies that2172have allowed short lines to do what they do best. We are truly grateful2173for that effort and look forward to continuing opportunities such as2174this hearing today to participate in your deliberations.2175 For those new to this Subcommittee let me briefly describe our2176industry. Short lines are small businesses: the typical short line2177employs about 30 people, operates about 80 route miles, and earns about2178$8 million in annual revenue. Our significance is not our size but who2179and where short lines serve. For large areas of rural and small-town2180America short lines are the only connection to the national rail2181network, or as we call it, the first mile/last mile in the freight rail2182supply chain. As any short line shipper will tell you, ``You can't get2183there from here without short line service.''2184 The short line industry as we know it is the product of the2185Staggers Act of 1980, which made the sale of light-density branch lines2186from Class I railroads to local entrepreneurs possible, thankfully2187avoiding the abandonment of those lines and the ripping up of their2188track for scrap. These lines were spun off by the Class 1 network for a2189reason: they weren't profitable, were burdened with decades of daunting2190deferred maintenance, and had a declining customer base.2191 To bring these businesses back from the brink, small railroads had2192to be scrappy and smart and make a huge commitment to their local2193communities. They would knock on every door they could find, bend over2194backwards for every existing and possibly new customer, put family2195members to work, find used locomotives, and look for assistance when2196possible. They invest up to a third of their annual revenues back into2197maintaining and upgrading that infrastructure that they often inherited2198in tough conditions, making short line railroading one of the most2199capital-intensive industries in the country.2200 That investment combined with the flexibility and customer-focused2201service that new local ownership provided allowed short lines to revive2202these marginal lines, turning them into small but thriving enterprises2203that preserve service for more than 10,000 customers and local jobs for2204thousands of employees. America's 600 short line railroads now manage2205one-third of the national freight rail network and touch in origination2206or destination one-fifth of all carloads moving on that national2207network. Together, short lines operate in 49 states, are tied to2208478,000 jobs nationwide, $26.1 billion in labor income and $56.22209billion in economic value-add \1\--providing a service that over 10,0002210businesses and countless farmers and agricultural co-ops nationwide2211rely upon to receive their raw materials and get their products to2212market.2213---------------------------------------------------------------------------2214 \1\ The Section 45G Tax Credit and the Economic Contribution of the2215Short Line Railroad Industry, prepared by PWC for ASLRRA (2018).22162217 As you will note from the map above, almost every Member of this2218Subcommittee has one or more short lines operating in their district,2219and in many cases these short lines are one of the significant2220businesses in their town. I am particularly pleased to note that2221Congressman Westerman has 15 short lines in his district, more than any2222other Congressman in the country. He has visited many of these2223properties and is well acquainted with short line operations and2224economics. For those who want to learn more about short lines, he's2225your guy.2226 The next Surface Transportation Reauthorization bill will impact2227railroad transportation for years to come and I am grateful for today's2228opportunity to share policy priorities that are top of mind for the2229short line industry. I believe these priorities will help America build2230and we are very eager to do our part.2231 Surface Transportation Reauthorization Priorities for the Short Line2232 Rail Industry22331. Short Lines and Transportation Grant Programs2234 Consolidated Rail Infrastructure and Safety Improvements2235 Program2236 In 2015 Congress created the Consolidated Rail Infrastructure and2237Safety Improvements Program (CRISI) to invest in projects that improve2238railroad safety, efficiency and reliability for both freight rail and2239intercity passenger rail. Unlike other federal rail infrastructure2240grant programs that only provide eligibility for public applicants,2241Congress made short line railroads directly eligible applicants for2242CRISI. This was hugely beneficial for the program and for short lines2243because it streamlined the application process, made for better2244alignment between available project funding and project outcomes, and2245allowed short lines to better compete with well-funded larger entities2246with more publicly prominent projects. The result is that short lines2247have become one of the major classes of grant awards in the CRISI2248program. Since the program was enacted, some 240 CRISI grants have been2249awarded that benefited short lines, totaling over $2.7 billion. In the2250most recent round of CRISI awards short lines garnered 81 of the 1222251projects awarded totaling $1.29 billion, about half of the $2.482252billion in total awarded funds.2253 Significantly, these federal funds were typically matched anywhere2254from 20% to 80% by local and private sector funds--drawing in non-2255federal monies that otherwise would not have been forthcoming for these2256improvements. It is worth noting that virtually every one of these2257short line CRISI applications received one or more letters of support2258from individual Members of Congress, both Democrats and Republicans,2259including most of you. It is a welcome bipartisan development in an era2260of increasingly intense partisanship.2261 CRISI grants provide six important benefits for short line2262railroads and for the communities and customers they serve.2263 1) Tackling the Biggest Problems--As a college basketball fan if I2264might be permitted a March Madness reference, CRISI projects are most2265often those ``on the bubble''--on the cusp of making the cut but not2266quite there. Railroad rehabilitation is extraordinarily expensive and2267the most needed projects are on the bubble because short line revenues2268are often not sufficient to complete the job. Again, there is a reason2269these lines became short lines in the first place. For instance,2270replacing lightweight jointed rail with new heavier welded rail costs2271hundreds of thousands of dollars per mile and there are limited2272operating and safety benefits if only a few miles a year can be2273completed. Bridges are especially important bubble projects. Short2274lines operate over many of the oldest railroad bridges in the country,2275some built over a century ago. Replacing or repairing a bridge, be it a2276highway or railroad bridge, is an expensive proposition. The federal2277and state governments spend huge sums of public money on highway2278bridges, but short line railroads have never had access to that kind of2279public money. Today CRISI is providing short lines the last dollars2280needed to get important projects off the bubble. These types of2281projects can be transformational for the future of a short line the2282communities and customers it serves and just simply wouldn't be2283possible without CRISI.22842285 2) Safety--Every dollar invested in improving rail infrastructure2286is a dollar invested in rail safety. Better tie conditions, newer rail,2287and rehabilitated bridges reduce derailments, making rail2288transportation safer for short line employees and for the communities2289they serve. For short lines, the biggest causes of derailments are2290simply worn-out track, i.e., broken rail and wide gauge. The best way2291to address that is simply to invest in the track, which is exactly what2292CRISI funds do. It's not complicated, it's not controversial, and it2293works.22942295 3) Jobs--Short line railroads are small businesses that hire2296outside contractors for most capital investment projects, making CRISI2297an engine for job creation, which is particularly impactful in the2298rural and small-town areas we serve. Whether these are short line jobs2299or contractor jobs, they are good blue-collar family-wage American jobs2300that can never be taken overseas. Upon project completion, better rail2301leads to better more efficient transportation service, attracting new2302volume and new customers to rail, creating additional new jobs. It's a2303virtuous circle.23042305 4) Environment--The environmental advantages of moving freight by2306rail are well documented. Upgrading track and bridges to handle the2307industry-standard 286,000-pound cars, building new sidings and yards to2308meet increasing customer demand, and reducing bottlenecks that create2309inefficiencies all contribute to diverting truck loads to railcar2310loads. That diversion reduces harmful emissions due to rail's inherent2311fuel efficiency advantages. CRISI can also provide funds for upgrading2312old locomotives to allow short lines to get even cleaner than we2313already are--this is particularly helpful in communities with2314significant residential development close to rail yards, and short2315lines are committed to being good neighbors in their communities.23162317 5) Economic Development--Funding economic development in rural2318areas is a challenge. Existing businesses are relatively small, and2319transportation infrastructure is often inadequate. Short lines are2320using CRISI grants to expand capacity, improve rail connections to2321existing industries, and develop industrial parks that can attract2322additional businesses to the area. South Carolina's Lancaster and2323Chester Railroad's 2021 CRISI rehabilitation project elicited what is2324an oft-repeated refrain from an economic development official in their2325area: ``Over the last 11 years, Chester County has attracted over $32326billion in new industrial development creating almost 4,000 new jobs.2327This opportunity is a direct result of having the L&C railroad as our2328partner.''23292330 6) Improving Service to Customers--Short line shippers are the2331ultimate beneficiaries of improved railroad service. There are2332thousands of those shippers, the majority of which operate their2333businesses in rural and small-town America where efficient and reliable2334transportation is the life blood of their business. A short line2335railroad is often their only connection to the national railroad system2336and CRISI grants are making those short lines a more efficient and2337competitive part of their transportation supply chain.23382339 Attached to my testimony is a CRISI Project Addendum that provides2340a brief description of completed short line CRISI projects, including2341project costs, scope, and benefits. This is a work in progress as we2342endeavor to collect this information as each short line completes a2343project and we will continue to forward the updated list to the2344Subcommittee as the information is compiled.2345 As you will note, these are not splashy high-profile projects that2346capture public attention. Few Americans know what continuous welded2347rail is and why it is so important in reducing derailments, or why2348short lines can't interchange traffic with Class I railroads if the2349track can't handle 286,000-pound railcars. But these are real benefits2350that create the foundation for preserving and growing short line2351railroad service. Likewise, the benefits garnered by shippers may not2352appear extraordinary. Increasing carload volume by 25 carloads a year,2353getting 500 feet of new track to handle a longer train, reducing2354freight transit times by 5 hours, eliminating a derailment--these are2355not eye-popping numbers but are the things that lower a shipper's2356transportation costs and that is the foundation of success for these2357small businesses.2358 Support for Advance Appropriations2359 CRISI is critical to upgrading short line infrastructure and2360enabling major projects. To do that effectively, to help America build,2361funding must be both robust and predictable.2362 Current CRISI funding levels are $1 billion per year in advance2363appropriations through Fiscal Year 2026, with up to an additional $12364billion per year possible through discretionary appropriations.2365Maintaining or expanding these funding levels is a top priority for2366short lines.2367 The advance appropriations provided in the current surface2368transportation reauthorization bill created funding stability and2369predictability that has been particularly important for the short line2370community and rail shippers nationwide.2371 Short lines are small businesses with limited human and financial2372resources. The grant application process is time consuming and, to be2373competitive, requires significant up-front investment by applicants.2374For example, for more complex projects, costly engineering work must be2375conducted to assemble a competitive project scope and budget that can2376demonstrate project readiness. Short lines must also marshal committed2377matching funds of at least 20%, but often up to 50% to be competitive2378with larger applicants. The annual appropriations process is always2379uncertain and that uncertainty makes it difficult for applicants to2380start those upfront activities until they know if there will be2381adequate resources for which to compete. If the program maintains2382funding stability as provided by advance appropriations, these small2383businesses can take steps to set aside these resources over time that2384they must provide to compete for and receive the federal funds. In2385short, advance appropriations allows the federal investment to be much2386more effective and meaningful. If the next surface transportation2387reauthorization bill were to authorize CRISI but not provide any2388advance or guaranteed appropriations, that would be a step backwards.2389 Protect CRISI's Ability to Bolster the Freight Rail Network2390 Congress has been eager to collaborate and work in a bipartisan way2391to strengthen CRISI and other programs important to short lines, and we2392are appreciative of the commitment. We believe these programs can be2393further improved.2394 ASLRRA discourages set-asides within CRISI for passenger rail2395projects or expansions of the program to include major new eligible2396applicants such as commuter railroads. With so many challenges facing2397our freight supply chain, short lines need to remain viable competitors2398for these limited funds. While we have no opposition to passenger rail,2399there are other federal grant programs which provide passenger rail2400applicants with funding levels that dwarf CRISI.2401 Likewise, commuter rail already has access to substantial, well-2402established, and dedicated funding programs administered through the2403Federal Transit Administration, such as formula funding and the Capital2404Investment Grant program. Commuter entities are also eligible for2405department-wide competitive grant programs, like Mega and RAISE.2406 By contrast, CRISI is essentially the only federal grant program2407for which short lines are a viable competitor. We also note that short2408line projects provide an excellent bang for the federal buck and tend2409to produce meaningful results quickly with comparatively modest federal2410investment. Short lines can take small federal investments and start2411building right away.2412Speed2413 Simply put, CRISI projects need to move from announcement to2414obligation to completion faster than they currently do. For almost all2415short line projects, most of which are quite simple in the context of2416infrastructure investments, this would result in better outcomes for2417the public, for short lines, for communities, and for shippers with no2418additional risk, and would help avoid the significant cost escalation2419associated with delay.2420 Whether it be through batch processing of NEPA categorical2421exclusions, more aggressive use of pre-award authority to allow2422projects to get going immediately upon award, the blunt instrument of2423just setting deadlines for agency processing, or all of the above,2424Congress can and should insist that this process move faster. In our2425experience, FRA agency staff would similarly agree that the process2426should move faster, but nevertheless in the real world the process2427remains unnecessarily slow. It may be unrealistic to expect government2428to move at the speed of business, but let's give it a shot.2429Increase Transparency across the Grant Lifecycle to Enable Benchmarking2430 and Process Improvement2431 Congress could require that FRA file regular reports on the status2432of processing grants, from award notification through obligation to2433closeout, to the transportation authorizing and appropriating2434committees. This data would be important to help stakeholders2435understand how long it takes the agency to move through the process for2436each award to achieve grant obligation and begin work and would create2437pressure to move the process faster. This has been required2438intermittently in appropriations legislation, but the agency has not2439regularly provided timely reporting. This could include key milestones2440of approval of pre-award authority, if applicable, and approval of the2441environmental decision document for the project. This could begin2442immediately through administrative action, followed by Congressional2443action to make the requirement enduring. As Peter Drucker's famous2444business saying goes, ``What gets measured gets managed,'' and this2445process would encourage quicker and more consistent grant processing.2446Prohibit Agencies from Integrating Policy Requirements into Grant2447 Programs with No Basis in Law2448 Congress could prohibit U.S. DOT from establishing policy2449requirements that are not in law as conditions for grant awardees to2450achieve obligation. DOT NOFOs now routinely integrate ``Administrative2451and National Policy Requirements'' that can impose costly and2452burdensome requirements on grant recipients. Most of these have no2453basis in law and can condition achieving grant obligation on2454satisfaction of the requirements. This step could be taken immediately2455through administrative action, followed by Congressional action to make2456the requirement broad and enduring.2457Improve Elements of the National Environmental Policy Act Process2458 Short lines are an environmentally friendly way to move goods. We2459encourage efforts to ensure National Environmental Policy Act (NEPA)2460requirements reflect this sustainable way to move freight and do not2461undermine it.2462 Specifically, we believe there could be room within USDOT's NEPA2463implementing regulations to expand definitions of selected categorical2464exclusions (CEs) without risking significant environmental impacts.2465 One area is for bridge rehabilitation projects and for construction2466of smaller railroad facilities. The definitions for these CEs have some2467fixed elements--such as ground coverage and watercourse definitions--2468that could be adjusted to grant the agency more discretion and2469flexibility to make its class of action determination. The definitions2470built into these CEs have arbitrary elements that can force certain2471projects into costlier and more time-consuming environmental2472assessments than are justified by the environmental impacts of the2473project. We encourage USDOT and FRA to explore their regulations in2474this area and seek to increase their flexibility.2475 We appreciate the efforts of USDOT, and especially FRA, to continue2476to standardize their NEPA review procedures and to improve the guidance2477and documentation they provide to grant applicants.2478 Clarification of guidance documentation is helpful, as is the2479provision of clearer guidance on analyses and permitting requirements2480associated with different environmental impact areas. Examples of2481environmental impact area analyses products or awarded permits can be2482especially helpful to applicants and awardees that are new to NEPA.2483NEPA compliance is a complex topic. The provision of better information2484to applicants on exactly what needs to be done and when during pre- and2485post-award period can reduce delays in getting to grant agreement.2486FRA's grant and environmental specialists have done extensive outreach2487to the short line community on NEPA topics, including through2488participation in ASLRRA conferences and webinars, reaching many2489hundreds of short line railroads. We greatly appreciate these outreach2490efforts and look forward to continuing educational collaboration and2491dialogue with FRA on these topics under the new Administration.24922. Modal Equity With Trucks2493 Railroads compete fiercely with trucks to move America's freight,2494which is as it should be. In our view, there would be tremendous public2495policy benefits to the country if more freight would move by rail:2496safety, as rail is 3-20x safer than trucking depending on what is being2497measured; congestion reduction, as one train can keep hundreds of2498trucks off the road; taxpayer savings, as heavy trucks produce a2499disproportionate share of highway damage; and environmental benefits as2500railroads are widely recognized as the cleanest way to move freight2501over land.2502 Given that, public policies that support freight rail make sense2503for Congress to consider. But at the very least, we ask that Congress2504not drive policy the other direction and further shift freight to2505trucks.2506 Highway Trust Fund--Restore the Highway Trust Fund (HTF) to2507 a true user-based system.2508 Since 2008, the Highway Trust Fund has received a stunning $2752509billion from the U.S. Treasury's general fund to cover shortfalls.2510That's more than a quarter of a trillion dollars. This is a gigantic2511subsidy to our biggest competitor.2512 Congress should require that the FHWA finalize the cost allocation2513study required in the last reauthorization. This will give needed2514insight into the damage to our nation's roadways caused by each user2515class. Congress should then devise and implement a user fee for the HTF2516that accounts for proportional damages caused by different weights of2517vehicles.2518 Truck Size and Weight--Do Not Make the Problem Worse2519 The existing 80,000-pound trucks on our interstate system already2520don't cover the full cost of their infrastructure damage. Increasing2521the size and weight of those trucks would make the problem worse and2522have negative consequences for both the short line railroad industry2523and the public. It would shift freight from rail to trucks, resulting2524in more trucks on our nation's highways, more congestion and wear and2525tear, more pollution, and more deadly crashes. There were already more2526than 40,000 fatalities on U.S. roads last year--that's already far, far2527too many without adding bigger and heavier trucks into the mix.2528 As noted above, small railroads are largely privately-owned, and2529they reinvest 25% to 33% of their annual revenue maintaining and2530improving their capital-intensive infrastructure. Trucks enjoy the2531inherent advantage of operating over publicly subsidized highways,2532while underpaying for the damage to roads and bridges they cause. This2533problem would be further exacerbated by heavier and longer trucks,2534which cause significantly more damage to public infrastructure. All of2535this occurs as fuel taxes and user fees have consistently proven2536insufficient to fully fund the HTF, and general fund taxpayer dollars2537are increasingly applied to road projects. Consequently, as taxpayers2538we are not only paying for our own infrastructure, but also that of our2539competition.2540 Public opinion polls have also shown year-after-year that the2541public does not feel safe with larger trucks on the highways. One poll2542conducted by the Coalition Against Bigger Trucks found that 7 in 102543respondents were opposed to increases in length and weight. The Truck2544Safety Coalition publishes a record of decades of polling on the topic,2545with some polls showing up to 88% of Americans opposed to bigger and2546heavier trucks on the highways.2547 The short line industry is part of a broad coalition of cities,2548counties, municipalities, first responders, labor organizations, and2549highway safety groups. Together, we have repeatedly urged Congress to2550refrain from wholesale or incremental changes disguised as pilot2551projects and waivers to truck size and weight, and we renew that call2552today.25533. Rail Safety Regulations2554 As any new regulations are considered for what is already a highly2555regulated industry, we urge that they be focused on solving actual2556safety problems and be practical for small business short line2557railroads to implement. Further, we encourage Congress to be aware of2558unintended consequences to broader transportation safety--when2559regulations increase the cost of freight railroading or degrade freight2560rail service, they risk shifting freight traffic from the largely2561privately funded and safer rail network to the largely publicly funded2562and less safe highway network. Short lines can only thrive if our2563mostly small business entrepreneurs are given the flexibility and2564discretion to run their railroads in a manner that is safe, customer-2565focused, and still cost-effective. And as noted previously, for short2566lines the biggest risks of derailment come from worn out track and the2567best way to address that is simply to invest in the track, which is2568exactly what CRISI does.25694. Continued Federal Support for Grade Crossing and Trespasser Safety2570 Issues2571 By far, the most significant areas of rail safety related to2572interactions with the public are grade crossing accidents and2573trespasser issues. An industry and government-supported effort,2574Operation Lifesaver, focuses on educating the public both about the2575importance of staying off railroad tracks and the need for passenger2576and commercial vehicle drivers to exercise caution at grade crossings.2577The federal government has been an important participant in these2578efforts, largely through the FHWA Railway-Highway Crossings Program,2579known widely as the ``Section 130'' Program. This program significantly2580improves grade crossing safety by providing funding to improve grade2581crossing protection equipment. More recently, the Rail Crossing2582Elimination program has also been successful in providing options for2583communities to close unnecessary crossings.2584 Conclusion2585 As I indicated at the outset, it was provisions of the 19802586Staggers Act that created the potential to create short line railroads2587as an alternative to rail line abandonment. No current Member of the2588House of Representatives was in office in 1980 so there is little2589institutional memory of how economically damaging railroad abandonment2590was for communities across the country, and how vociferously Members of2591Congress opposed every abandonment in their district because it severed2592a vital transportation link for the communities and businesses they2593represented. A search of the term ``rail line abandonment'' in the pre-25941980 Congressional Record would return countless House Floor speeches2595detailing the harm and urging the then Interstate Commerce Commission,2596now the Surface Transportation Board, to oppose abandonment petitions.2597Today, abandoning a rail line is a rarity and it is taken for granted2598that the 50,000 miles of light density rail no longer operated by the2599Class I railroads are securely in place.2600 But the fact is short lines still face challenging economics that2601jeopardize that security. They operate over aging infrastructure which2602received little or no capital investment from its previous owners and2603which requires investing between 25% and 33% of revenues to maintain2604track and bridges required to handle modern freight cars, remove2605bottlenecks, increase capacity and improve safety. Even still it is2606estimated that there is a backlog of more than $12 billion of2607improvements still to be completed, a heavy lift for an industry that2608earns just 6% of the revenue of the total U.S. freight railroad2609industry. The programs and policies discussed above have played a very2610important role in the short line industry's ability to meet these2611challenges and we urge that they be continued as you write the2612country's next surface transportation bill.2613 Thank you for your time and consideration.2614 __________26152616 Addendum26172618 Short Line Railroad Completed CRISI Project Examples2619Chicago South Shore & South Bend Railroad (CSS)2620FRA Project Name: Chicago South Shore & South Bend Rail Rehabilitation2621and Safety Improvement Project2622CRISI Grant: $2,831,7052623Local Match: $707,926 (20%)2624Total Project Cost: $3,539,6312625Member/District: Rep. Rudy Yakym (IN-02), Rep. Frank Mrvan (IN-01)26262627 The project replaced 7.5 miles of 90-lb rail with 115-pound rail on2628Kingsbury Industrial Lead, improving safety associated with the heavier2629rail, and increasing train speed on new section of track to improve car2630cycle times for customers.2631 ``The CRISI project being done by CSS shows a commitment to safety2632and the growth of CSS customers located between Michigan City and2633Kingsbury. My company truly appreciates the project to help our company2634grow.'' David Gelwicks, President--Hickman Williams Co.26352636Iowa Interstate Railroad (IAIS)2637Project Name: Booneville Bridge Project2638CRISI Grant: $3,470,5002639Local Match: $3,470,500 (50%)2640Total Project Cost: $6,941,0002641Member/District: Rep. Zach Nunn (IA-03)26422643 The project replaced the 118-year-old Booneville Bridge over the2644Raccoon River, located approximately 15 miles west of Des Moines. The2645bridge carries over 42,000 carloads per year on the Class II Iowa2646Interstate Railroad's (IAIS) Council Bluffs, Iowa, to Chicago, Ill.,2647service. The bridge was in danger of being put out of service in the2648near future under previous conditions, which would result in costly and2649inefficient rerouting of traffic and economic disruption in Nebraska,2650Iowa, Illinois, and points beyond. The new bridge will be able to2651withstand increasingly common flooding events.2652 ``The majority of the 8,000 carloads we ship go over that bridge2653and if that infrastructure was out, it would have a multi-million2654impact on the efficiency and cost-competitiveness of our business.''2655Nick Bowdish, CEO Elite Octane2656 Video of Completed Project--here [https://www.youtube.com/2657watch?v=PZbq7d1VPD8].26582659Iowa Interstate Railroad (IAIS)2660Project Name: IAIS Continuous Welded Rail Upgrade2661CRISI Grant: $5,579,3572662Local Match: $6,291,615 (53%)2663Total Project Cost: $11,870,9722664Member/District: Rep. Zach Nunn (IA-03), Rep. Randy Feenstra (IA-04)26652666 The project is a capstone project to complete the replacement of2667jointed rail with modern continuous welded rail (CWR) on the IAIS2668between Council Bluffs and Des Moines, IA. The upgrade will replace the2669last 18.95 miles of jointed rail with CWR and allow for track speeds of267040 to 49 mph. As freight traffic grows on IAIS, the remaining 1950s-era2671Rock Island Railroad legacy jointed rail decreases the reliability and2672resiliency of the line by requiring slower speeds. Jointed rail has the2673propensity to have joint failures during Iowa's harsh winters creating2674hazards for maintenance of way employees and train crews. Replacing2675jointed rail will increase safety, lower maintenance costs, increase2676rail resiliency, and improve system and service performance by2677increasing train speeds. The project will allow IAIS to meet future2678freight demand for Nebraska, Iowa, and Illinois farmers, manufacturers,2679and ethanol refineries.2680 ``Jointed rail on the IAIS mainline creates higher maintenance2681costs and leads to slower operating speeds and lower efficiency between2682Omaha and Des Moines for rail customers like my company. Replacing this2683rail will lead to a more resilient railroad which is important for the2684Iowa economy, and for the success of our business. Our business has2685made a sizeable investment in an ethanol plant where its viability is2686solely dependent on the long-term sustainability of the Iowa Interstate2687Railroad.'' Ryan Pellett, C.E.O., JD & Co.26882689Lake State Railway (LSRC)2690FRA Project Name: Infrastructure Enhancement Program for Lake State2691Railway's Huron Subdivision2692CRISI Grant: $7,875,7702693Local Match: $8,197,230 (51%)2694Total Project Cost: $16,073,0002695Member/District: Rep. Jack Bergman (MI-01)26962697 The project rehabilitated 30.3 miles of track with 115-lb.2698continuous welded rail, tie and turnout renewal and crossing2699rehabilitation. This project allowed for elimination of 23.8 miles of2700excepted track which resulted in increased speed from 10 mph to 25 mph2701and the upgrade of 6 miles from 25 mph to 40 mph. These improvements2702allowed for the full use of the heavier 286-lb. railcars required by2703LSRC customers and Class I railroad interchange partners. The2704elimination of the aging and lighter 85-lb rail enhanced safety along2705the entire segment.2706 ``Lake State Railway's service to our facility has allowed our2707operation to be cost competitive despite our remote location in2708relation to the majority of our customers and suppliers. The CRISI2709grant has allowed us to increase the railcar load capacity associated2710with the heavier 286-lb railcars, reducing our cost and helping ensure2711our long-term success.'' Jim Spens, Plant Manager Panel Processing,2712Inc.27132714Lancaster & Chester Railroad (L&C)2715FRA Project Name: South Carolina Piedmont Freight Rail Service2716Improvement Program2717CRISI Grant: $8,752,1852718Local Match: $4,712,715 (35%)2719Total Project Cost: $13,465,9002720Member/District: Rep. Ralph Norman (SC-05)27212722 The project provided funding for the acquisition of three Tier IV2723locomotives, the rehabilitation of 46 miles and one bridge upgrade to2724allow for the handling of 286-lb. railcars. The project increased track2725speed from10 mph to 25 mph, gave customers the ability to utilize 286-2726lb railcars and decreased locomotive emissions. The upgraded track2727resulted in the railroad attracting three new customers to the line.2728 ``Over the last 11 years, Chester County has attracted over $32729billion in new industrial development creating almost 4,000 new jobs.2730This massive amount of opportunity is a direct result of having the2731short line L&C railroad as our partner.'' Alex Oliphant, City Council2732Member, Chester County, SC27332734Napoleon, Defiance & Western (NDW)2735Project Name: NDW Safety Upgrade in Opportunity Zones Project2736Grantee: Ohio Rail Development Corporation2737CRISI Grant: $4,112,4522738Local Match: $4,112,452 (50%)2739Total Project Cost: $8,224,9042740Member/District: Rep. Martin Stutzman (IN-03), Rep. Bob Latta (OH-274105), Rep. Marcy Kaptur (OH-09)27422743 The project upgraded approximately 10 miles of 80-lb. rail with 1322744to 136-lb. rail, and replaced approximately 29,000 ties on 29 miles of2745rail between Woodburn, Indiana and Defiance, Ohio. The project was2746required to reduce the number of derailments previously occurring on2747this segment.2748 ``The NDW provides transportation for our tomato paste from2749California to our facility saving us a lot of time and money versus2750going over the road. The rehabilitation also offers us new2751opportunities to move more materials by rail.''--Gavin Serrao,2752Cambell's Soup Logistics Manager, Napoleon, OH2753 ``This has been a railroad that's needed a lot of investment for a2754long time. Every State DOT knows there are these railroads that can be2755so much more for the local economy than they are now and NDW brought2756the professionalism, the expertise, and the financial resources to make2757this project possible.'' Matt Dietrich, Ex. Dir. Ohio Rail Development2758Commission2759 Video overview of project--here [https://youtu.be/IwFm_a_KWs4].27602761Nebraska Kansas Colorado Railway (NKCR)2762Project Name: Velocity Enhanced Rail Transportation Project2763CRISI Grant: $4,505,5422764Local Match: $4,505,542 (50%)2765Total Project Cost: $9,011,0842766Member/District: Rep. Lauren Boebert (CO-04), Rep. Adrian Smith (NE-276703)27682769 The project installed approximately 42,595 ties, 15,990 tons of2770ballast, and resurfaced 562,848 track feet on the NKCR in western2771Nebraska and eastern Colorado. The project allows for removal of slow2772orders on approximately 106.6 miles of track and restores efficient2773operating speeds over most of the line. The improvements reduced2774overall trip times along the corridor by a minimum of four hours and2775reduced operating costs by reducing locomotive utilization and allowing2776for crews to make a round-trip along the line within one day.2777 ``The Velocity project will be a major rehabilitation of the2778freight rail line from Sterling, CO, to Wallace, NE, focused on2779removing slow orders where track conditions force trains to slow to a2780crawl. This line is the only rail connection for many agricultural2781customers in western Nebraska and eastern Colorado.'' U.S. Senator Deb2782Fischer (R-NE)27832784OmniTRAX Holdings Combined Short Lines2785Project Name: Transportation Investments for Employment and Safety2786(TIES1)2787CRISI Grant: $37,364,5042788Local Match: $9,341,126 (20%)2789Total Project Cost: $46,705,6302790Member/District: Rep. Sanford Bishop (GA-02)27912792 The project replaced approximately 1,000 railroad ties per mile on2793135 high-density track miles on three OmniTRAX short line railroads--2794Illinois Railway, Alabama & Tennessee River Railway, and Georgia &2795Florida Railway, which will help sustain current FRA track safety2796standards and maintain current timetable speeds. The project is2797estimated to reduce track-related accidents by 67%, saving $11MM in2798losses, reduce locomotive utilization by 186,000 hours, eliminate 272799tons of NOx, 1 ton of PM2.5 and 4.5 tons of SO2. The project will2800eliminate the need for 16 subsequent tie spot replacement mobilizations2801saving $43MM.2802 ``Covia Holdings is a major supplier of elemental raw materials2803used in a variety of industries, including glass production and housing2804construction. The majority of shipments to Covia's customers throughout2805the U.S. are handled by railroads such as those managed by OmniTrax2806Rail Holdings. Covia supports the TIES Project [and] reasonably2807believes that TIES will improve safety on the Illinois Railway (IR) by2808replacing a simple yet essential element of safe railroad2809infrastructure: the wooden railroad tie. The IR's ability to service2810Covia's plants, uninterrupted, in Illinois is fundamental to Covia's2811daily operations.'' Russell Montgomery, EVP/COO, Covia Holdings LLC28122813Red River Valley & Western Railroad2814FRA Project Name: Rural Economic Preservation Through Rail Replacement2815CRISI Grant: $6,704,5442816Local Match: $2,915,234 (30.3%)2817Total Project Cost: $9,620,7782818Member/District: Rep. Julie Fedorchak, At Large28192820 The Red River Valley & Western serves the southeast corner of the2821state of North Dakota, linking numerous rural agricultural shippers2822with the national rail system. The project replaced 14.5 miles of old2823jointed rail with continuous welded rail on between Independence and2824Oakes, North Dakota.2825 The project has resulted in a safer, dependable rail system that2826will maintain economic competitiveness for current shippers, and2827provides the capacity to meet the anticipated future demand with2828climate change pushing the grain industry and growing conditions2829northward.2830 ``North Dakota is heavily reliant on railroads for the shipment of2831bulk commodities from our rural communities to their distant final2832destinations. A large portion of the grains produced in North Dakota2833are shipped over 1,200 miles by rail to Pacific Northwest port2834facilities at Seattle and Portland. North Dakota is therefore keenly2835interested in a safe, efficient, and reliable railroad network to2836provide value to the thousands of tons of bulk agricultural and energy2837products produced each year in our state. Preserving this vital rail2838network is essential for the economic development and sustainment in2839the rural communities served by short lines.'' Commissioners Fedorchak,2840Kroshus, and Christmann, North Dakota Public Service Commission28412842Sierra Northern Railroad (SERA)2843FRA Project Name: Sierra Northern Railway's Consolidated Rail2844Infrastructure and Safety Improvement2845CRISI Grant: $17,415,0002846Local Match: $18,300,000 (51.3%)2847Total Project Cost: $35,700,0002848Member/District: Rep. Tom McClintock (CA-05)28492850 Sierra Northern Railway (SERA) was challenged to add and manage2851current customers along the 55-mile-long Oakdale Division excepted2852track, built in 1897, servicing Riverbank, California in the Central2853Valley to Standard, California in the Sierra Nevada foothills. As2854excepted track, freight could move at no more than 10 mph along the2855route, taking 5 hours to transport freight from one end to the other.2856The project included replacing 20 miles of track with 115-pound rail,285790,000 railroad ties, and rehabilitating ten grade crossings.2858 The CRISI Grant transformed the operation, adding a 116-acre2859transload site for building manifest unit trans without causing2860gridlock along the active line, and improving delivery time from end to2861end by 250%. The increased throughput has enabled SERA to:2862 Quadrupled carload business2863 Add new customers--such as a new grainload shipper2864 Reduce derailments2865 Provided 30 new railroad jobs in the area2866 Improved grade crossings and increase speed led to less2867time blocking motoring public2868 Took an estimated 5,000 trucks of propane off local2869highways in year one28702871 ``The project began in 2019, and was completed a year and a half2872later. It has achieved everything we had anticipated, and more for the2873region. It has allowed the Sierra Northern dramatically increase2874carloads by better serving current customers, and by attracting new2875business to rail. We are especially proud of how this project has2876served our local community--taking trucks off the road, especially on2877narrow mountain roads, reducing time spent at railroad crossings, and2878providing more well-paying railroad jobs in our region.'' Ken Beard,2879President, Sierra Northern Railway28802881Texas, Gonzales & Northern Railway (TXGN)2882FRA Project Name: Harwood Interchange Improvement Project2883CRISI Grant: $2,223,7682884Local Match: $2,223,768 (50%)2885Total Project Cost: $4,447,5362886Member/District: Rep. Michael Cloud (TX-27)28872888 The project extended the siding at the interchange with the Union2889Pacific Railroad (UP) to 9,000 feet. The construction project included2890installing welded rail, steel ties, new modern power switches and the2891replacement of two aging wooden trestles enhanced drainage. With2892concrete culverts. The purpose of the project was to enhance capacity,2893improve service, enhance safe operations and help relieve highway2894congestion by moving shipments from truck to rail.2895 The project has allowed TXGN to accommodate UP's Unit Train traffic2896simultaneously with our carload traffic which allowed for double2897capacity at interchange and a more fluid handoff with UP. Prior to the2898CRISI project completion UP could deliver only 1 of those trains while2899then waiting on TXGN to clear the interchange before a second train2900could arrive. The increased operating capacity has saved customers up2901to 24 hours of transit time. The expanded capacity has allowed TXGN to2902attract two new storage customers and annual carloads have increased2903from 3,726 in the year prior to the project to 4,634 carloads in the2904first year following project completion, a 24% increase. Most recently2905TXGN attracted a new major company that has just announced that they2906are building a new facility on the TXGN and will increase carloads by2907700 annually.2908 Livestock Nutrition Center (LNC) is a leading feed manufacturing2909and grain handling company with facilities in 5 southwestern states,2910including a facility on the TXGN.2911 ``The TXGN CRISI Grant Interchange Project has been a game-changer2912for our operations at Livestock Nutrition Center. By enabling the2913seamless handling of Unit Trains, this project has significantly2914improved the efficiency of our railcar traffic and opened the door for2915potential Unit Train movements into TXGN Railway. Without the2916enhancements brought by this project, we wouldn't have the opportunity2917to consider expanding our location. This improvement has not only2918reduced turnaround times for our railcars, improving utilization and2919operational efficiency, but it has also positioned us to better serve2920our customers and explore new growth opportunities. We are truly2921grateful for the partnership with TXGN Railway and the commitment they2922have shown to helping businesses like ours thrive.'' Maurice Janda,2923Fulfillment Manager, LNC29242925Twin Cities & Western Railroad Company (TCWR)2926FRA Project Name: Joint Elimination--Rail Infrastructure and Safety2927Improvement2928CRISI Grant: $2,000,8392929Local Match: $2,000,839 (50%)2930Total Project Cost: $4,001,6782931Member/District: Michelle Fischbach (MN-7), Tom Emmer (MN-6), Kelly2932Morrison (MN-3)29332934 The Twin Cities & Western Railroad upgraded 1.3 miles of track with2935slow orders--a local speed restriction imposed that is slower than the2936track's normal speed limit due to deficient track--to high-speed welded2937rail. The replacement resulted in significantly improved safety, as2938measured by decreased year-over-year rail defects found via ultrasonic2939tests from 106 defects in 2017 to 48 defects in 2020 (after project).2940The upgraded rail also reduced annual tie replacement from 20,0002941required in 2019, to 17,000 by 2021.2942 For customers, the improved quality of the rail contributed to a2943decrease in shipping time, decreases in delays due to mainline2944derailments, and maintaining efficient pricing due to decreased2945maintenance costs.2946 Subsequent CRISI grants in FY 20 and FY 21 replaced rail on an2947additional 2 and 1 miles of track respectively, leading to an overall2948reduction in point-to-point shipping time of 56% across the 3 miles,2949and a further reduction in tie replacement needs of 30%, to 12,000 ties2950per year.2951 ``The Twin Cities & Western Railroad is a vital east-west railway2952that carries over 30,000 freight cars annually throughout the south-2953central and western Minnesota. Its rail lines are essential to the2954local and regional economy, connecting countless businesses and farmers2955to their commercial needs. Not only would these improvement ensure that2956our railways are safer and more reliable, but they would also minimize2957transportation costs for businesses, enhance Minnesota's economic2958competitiveness, support the regional supply chain and reduce the need2959for future maintenance and repairs. Completing these updates would2960support the needs of countless Minnesotans by improving and modernizing2961the regional rail network.'' Senator Amy Klobuchar, Unites States2962Senator, Minnesota2963 ``Rail is one of the primary arteries of Minnesota commerce. This2964investment in the Twin Cities & Western Railroad Company will increase2965service, while also ensuring the safety of all those who live in2966communities along these vital transportation routes.'' Representative2967Tom Emmer, MN-629682969 Mr. Webster of Florida. Thank you.2970 Now, Mr. Daloisio.29712972 TESTIMONY OF JOSEPH DALOISIO III, TRACK DIVISION MANAGER,2973 RAILROAD CONSTRUCTION COMPANY, INC., AND CHAIRMAN, NATIONAL2974 RAILROAD CONSTRUCTION AND MAINTENANCE ASSOCIATION29752976 Mr. Daloisio. Thank you, Mr. Chairman. Good morning,2977Chairman Webster, Ranking Member Titus, and members of this2978esteemed subcommittee. My name is Joe Daloisio. I am track2979division manager at a company called Railroad Construction2980Company, or RCC. And I currently serve as chairman of the board2981of the National Railroad Construction and Maintenance2982Association, or NRC.2983 Let me first begin by congratulating Chairman Graves for2984another term as chairman of this vital committee. I would also2985like to congratulate Chairman Webster and Ranking Member Titus2986for your new positions on this important committee.2987 Mr. Webster of Florida. Could you move the mic just a2988little closer?2989 Mr. Daloisio. Sure. The NRC is an association that advances2990the mutual interests of railway contractors and suppliers who2991construct, maintain, and supply both freight and passenger2992railroads. I happen to be a third-generation railroader. My2993grandfather, Joe, Sr., built railroad track as a track foreman2994for the Erie Railroad and later established the company I work2995for in 1926. My father, Joe, Jr., served in the Army Corps of2996Engineers, who began building American infrastructure towards2997the end of the Korean War.2998 Multiple generations of my family, including aunts, uncles,2999cousins, all follow along this path. Building rail and building3000America quite literally runs in my blood. As I like to say, we3001are not just in this industry; we are this industry, and I view3002this industry as a family.3003 My company, RCC, has a rich legacy of providing3004comprehensive track services on the eastern coast of the United3005States. But RCC is just one company within the NRC. Our member3006companies generate more than 100,000 jobs nationwide, supplying3007building and maintaining freight, passenger, and industrial3008rail networks. Our members are also mostly small businesses. So3009we focus on safely delivering quality goods and services for3010our railroad customers, while also doing so in an efficient and3011cost-effective manner.3012 NRC members perform every type of rail infrastructure work3013and serve every type of railway owner, including Class I's,3014short lines, and regional railroads, and intercity passenger3015rail systems.3016 In 2024, contractors played an invaluable role in helping3017railroads and industrial shippers in the Southeastern United3018States respond to damages from Hurricanes Helene and Milton,3019and we expect that helping tradition to continue throughout30202025 and beyond.3021 As this committee begins the process of reauthorizing3022surface transportation programs, the NRC offers the following3023recommendations that we suggest will help America build. More3024detailed information is in my written testimony. We would like3025to seek to provide robust funding for our core rail grant3026programs. The IIJA made many substantial impacts to our3027industry, including unprecedented levels of funding to rail3028programs. Spending on infrastructure, especially rail3029infrastructure, is truly a sound investment that pays dividends3030to our economy, supply chain, and transportation networks.3031 The NRC supports funding at existing or increased levels3032for rail grant programs that improve efficiency, safety, and3033environmentally friendly freight and passenger rail3034transportation. In particular, the CRISI grant program is a3035vital source of funding of the industry to address key safety3036improvement projects.3037 Cutting redtape. The IIJA provided unprecedented levels of3038funding for key rail discretionary grant programs, which had3039been critical to improving both the freight supply chain as3040well as enhancing passenger rail in the U.S. However, the speed3041at which agreements have been executed has been too slow. We3042encourage Congress and the new administration to deliver grant3043funding in a responsible but more expedient manner.3044 Support increased competition. The NRC strongly supports3045increased opportunities for contracting out and competition3046within these programs to stretch Federal funds further. This is3047not an attempt to take work from in-house labor forces. Rather,3048it is intended to help the industry as a whole perform more3049work more efficiently. Oftentimes our members are able to find3050the most efficient ideas and methods to deliver projects for3051less cost without compromising safety.3052 Separately but related, there have been attempts in past3053reauthorization bills to insert language that provides3054restrictions around the definitions of a rail carrier that are3055excessive, unnecessary, and attempt to fix a problem that3056doesn't exist. These provisions would increase cost and reduce3057flexibility and would make it hard to initiate or expand3058passenger systems.3059 We focus on safety. It is imperative to allow railroads and3060rail contractors and suppliers to initiate and deploy safety3061technologies. We urge Congress to use data-driven solutions3062that would effectively increase the safety of the rail network3063and avoid policy changes that would place unnecessary and3064excessive mandates on the rail industry that would not enhance3065rail safety.3066 The NRC supports maintaining existing Federal truck size3067and weight maximums to help ensure safety on our roads and to3068control damage trucks cause on our highway infrastructure.3069 Finally, the NRC has long supported safety in the industry,3070but numerous FRA regulations have not been data driven, have3071had tenuous safety benefits despite being pitched as safety3072sensitive, and have been cumbersome to implement. Many times3073this has placed undue paperwork on small businesses.3074 Though this seems to be a top priority for every surface3075transportation reauthorization bill, the unfortunate reality is3076that the permitting process for rail projects still moves way3077too slow.3078 The NRC supports efforts to speed up Federal permitting and3079review processes in order to deliver critical infrastructure3080projects without delays on a reasonable timeline.3081 Thank you for this opportunity to share my perspectives3082today, and I look forward to any questions. Thank you.3083 [Mr. Daloisio's prepared statement follows:]30843085 Prepared Statement of Joseph Daloisio III, Track Division Manager,3086 Railroad Construction Company, Inc., and Chairman, National Railroad3087 Construction and Maintenance Association3088 Introduction3089 Good morning, Mr. Chairman, Ranking Member Titus, and Members of3090this esteemed subcommittee. My name is Joe Daloisio and I am Track3091Division Manager at Railroad Construction Company (RCC) and I currently3092serve as the Chairman of the Board of Directors of the National3093Railroad Construction and Maintenance Association (the ``NRC'').3094 The NRC is an association that advances the mutual interests of3095railway contractors and suppliers who construct, maintain, and supply3096both freight and passenger railroads. Founded in 1978, the NRC connects3097members with other railway industry professionals and government3098legislators and policymakers. Together we work to create a positive3099business climate and to make railway construction and maintenance safer3100and more efficient.3101 Although NRC members often compete against each other, our3102collaboration furthers the railway construction industry and benefits3103American freight, transit and commuter rail lines, our member3104contractors and suppliers, the general public, and our own professional3105growth.3106 I am a third-generation railroader. My grandfather, Joe Sr., built3107railroad track as a track gang foreman on the Erie Railroad and later3108established RCC. My father, Joe Jr., served in the U.S. Army Corps of3109Engineers and began helping America build infrastructure towards the3110end of the Korean War. Multiple generations of my family, including3111aunts, uncles, and cousins all followed along the same path. Building3112rail and building America quite literally runs in my blood. As I like3113to say, we are not just in this industry, we are this industry!3114 I also wanted to thank my fellow witnesses today who we work3115closely and in collaboration with on a daily basis. Our concerns are3116the railroads' concerns. When they move more volume and have increased3117traffic, it directly drives the size and spending of their rail capital3118programs, which in turn increases opportunities for our member3119companies. Our members are also mostly small businesses so we focus on3120safely delivering quality goods and services for our railroad3121customers, while also doing so in an efficient and cost effective3122manner.3123 I am honored to join this distinguished panel today and to provide3124our perspective on the important topic of building America's freight3125and passenger rail network. We appreciate this subcommittee hitting the3126ground running by holding this crucial hearing right out of the gate.3127Railroad Construction Company (RCC)3128 Let me first begin by congratulating Chairman Graves for another3129term as Chairman of this vital committee. I would also like to3130congratulate the Chairman and Ranking Member Titus for your new3131positions on this important subcommittee. And finally, I would like to3132congratulate Rep. Nellie Pou, who represents our headquarters in3133Paterson, New Jersey, for getting appointed to serve on this critical3134committee.3135 Established in 1926, RCC has a rich legacy of providing3136comprehensive track services on the east coast of the United States. We3137have evolved into a leading general contractor that excels in heavy3138civil, track, and facility construction. From excavation and grading to3139utility installation, bridges, roadways, and at our core, railroad3140track services, we continue to uphold the highest level of excellence.3141NRC and the Rail Contracting Industry3142 While RCC is just one company within the NRC, our member companies3143generate more than 100,000 jobs nationwide supplying, building and3144maintaining freight, public transit and industrial rail networks.3145 As I mentioned in my opening, I serve as the Chairman of the NRC.3146The NRC is a U.S. trade association that represents nearly 4003147companies in the rail contracting and rail supply industry, with3148employees in all 50 states. Most NRC member companies are small family3149owned, multi-generational businesses with operations, manufacturing3150facilities, and offices located all across the United States.31513152 NRC\\ members perform every type of rail infrastructure work--from3153design and engineering to basic construction and maintenance to highly3154specialized and custom design-build jobs. This work includes building3155new tracks, repairing and maintaining existing track, laying and3156replacing rail, welding and grinding, surfacing, ballast distribution,3157tie insertion and removal, grade crossings, signal systems, switches3158and turnouts, bridge deck replacement and maintenance, track design,3159crane rail, inspection services, emergency maintenance, and more.3160---------------------------------------------------------------------------3161 \1\ Source: US DOT National Transportation Atlas Database, July31622020 revision3163---------------------------------------------------------------------------3164 The freight railroad industry has grown dramatically since the3165partial de-regulation of the Staggers Act in 1980. The prevalence of3166rail transit systems throughout the country have also increased3167dramatically over the last generation resulting in increased3168urbanization and density. The size of the rail construction and3169maintenance contractor and supplier community has grown in proportion.3170More than 500 independent rail contracting companies in the United3171States perform more than $10 billion worth of rail infrastructure3172construction and maintenance work every year.3173 In 2024, contractors played an invaluable role in helping railroads3174and industrial shippers in the southeastern United States respond to3175damage from Hurricanes Helene and Milton. We expect this trend to3176continue into 2025 and beyond.3177 In addition to the contracting community, in 2020, the rail supply3178industry directly employed almost 240,000 workers, who directly3179contributed $27.7 billion of value-added economic activity across the3180United States.\2\ Rail suppliers also deliver secondary benefits that3181other modes of transportation cannot, such as reductions in road3182congestion, highway fatalities, fuel consumption, greenhouse gases,3183cost of logistics, and public infrastructure maintenance costs.3184---------------------------------------------------------------------------3185 \2\ Rail Supply Industry: Manufacturing and Services Keeping the3186American Economy on Track. January 2023. www.remsa.org/files/3187RailSupplyIndustry_EconomicImpactStudy.pdf3188---------------------------------------------------------------------------3189 NRC members serve every type of railway owner, including Class 1,3190short line and regional railroads, industrial track owners, the U.S.3191military, port facilities and terminals, and rail transit agencies3192operating light rail, streetcars, subways, metro, commuter rail3193operations, and intercity passenger rail systems.3194 In addition to my role on the NRC Board, RCC is also a proud and3195active member of the American Short Line and Regional Railroad3196Association (ASLRRA), the Association of General Contractors (AGC), the3197Moles, the Beavers, and other construction industry associations.3198 Finally, of note, NRC collaborates on an industry grassroots3199program that brings Members of Congress out to our member company3200facilities and job sites, so we can help further educate Congress on3201the work that our members do. These visits give Members of Congress a3202firsthand look at the impact our members have in their community, on3203rail safety, and on the local economy. We encourage all Members of this3204subcommittee to come visit and see how our member contractors and3205suppliers are positively impacting your districts.3206 Recommendations to Congress3207 As Congress, and particularly this committee, begins the process of3208reauthorizing surface transportation programs, the NRC offers the3209following recommendations that we suggest will help America build:32101. Provide Robust Funding for Core Rail Grant Programs3211 The Infrastructure Investment and Jobs Act (IIJA) made many3212substantial impacts to our industry including unprecedented levels of3213funding to rail programs. This has no doubt been a boon to rail3214contractors and suppliers and has also allowed railroads to enhance3215safety as well as decrease the backlog of their state of good repair.3216Spending on infrastructure, especially rail infrastructure, is truly a3217sound investment that pays dividends to our economy, supply chain, and3218our transportation network.3219 A strong rail infrastructure is critical to the vitality of our3220nation's economy. The NRC supports funding at existing or increased3221levels for rail grant programs that improve efficiencies, safety and3222environmentally friendly freight and passenger rail transportation.3223These funds will also help stimulate additional infrastructure3224investment by states, localities, and private sector partners.3225 The Consolidated Rail Infrastructure and Safety Improvements3226(CRISI) grant program, in particular, is a vital source of funding for3227the industry to address key safety improvement projects.3228 In addition to CRISI, other critical grant programs at USDOT should3229be provided with as robust funding as possible in the next3230reauthorization bill, including FRA Rail Crossing Elimination,3231passenger rail funding through the Federal-State Partnership and Amtrak3232grants, INFRA, Mega, RAISE, Rural Surface Transportation, and MARAD3233Port Infrastructure Development Program.32342. Cut Red Tape3235 The IIJA provided unprecedented levels of funding for key rail3236discretionary grant programs which has been key in improving both the3237freight supply chain as well as enhancing passenger rail in the U.S.3238However, the speed at which grant agreements have been executed has3239been way too slow. By the time the construction phase begins, a number3240of variables, most notably the increase in costs, jeopardizes the3241successful execution of these important projects. We encourage Congress3242and the new Administration to deliver grant funding in a responsible3243but more expedient manner.32443. Support Increased Competition3245 Competitive Bidding. The NRC strongly supports increased3246opportunities for contracting out and competition within these programs3247to stretch federal funds further. Increased flexibility for railroads3248and commuter rail agencies to contract out work will benefit the3249industry. This is not an attempt to take work from in-house labor3250forces, rather it is intended to help the industry as a whole perform3251more work more efficiently. Often times our members are able to find3252the most innovative ideas and methods to deliver projects for less cost3253without compromising safety. Our member companies are both specialized3254in and incentivized to accomplish this on a daily basis. Therefore, we3255would like to strongly urge that all rail construction and maintenance3256work performed with federal assistance be competitively bid out to the3257independent railroad construction industry, to the fullest extent3258possible, to ensure the most efficient use of taxpayer dollars.3259 Railroad contractors have a long and well-documented history of3260safely providing quality services at competitive prices. We have3261learned how to do more with less, and the efficiency and competence we3262bring to this task will be a big benefit as we all search for ways to3263improve America's transportation infrastructure and stretch available3264capital dollars as far as possible.3265 Rail Carrier Definition. There have been attempts in past3266reauthorization bills to insert language that provides restrictions3267around the definition of a rail carrier that are excessive,3268unnecessary, and attempt to fix a problem that does not exist. These3269are attempts by certain stakeholders to restrict competition and3270legislate a permanent mandate that only certain laborers perform3271certain types of rail-related work. These provisions would increase3272costs and reduce flexibility for states, transit agencies, and commuter3273and passenger rail authorities, and would make it harder to initiate or3274expand passenger rail service. There is not a good reason to use the3275law in this way to mandate that certain laborers do certain types of3276work forever, especially since this would make new intercity rail3277services harder and more expensive to start up, when we already have3278limited resources and limited labor pools. These provisions are not pro3279passenger rail, they are just labor protection for an already stretched3280collective labor force. We would recommend inclusion of language3281clarifying that States who sponsor, but do not operate intercity3282passenger rail services, are not classified as railroads, nor are they3283railroad carriers.32844. Focus on Safety3285 It is imperative to allow railroads and rail contractors and3286suppliers to innovate and deploy safety technologies. We urge Congress3287to use data-driven solutions that would effectively increase the safety3288of the rail network and avoid policy changes that would place3289unnecessary or excessive mandates on the rail industry that would not3290enhance rail safety.3291 In the wake of the February 2023 derailment incident in East3292Palestine, Ohio, numerous legislative proposals have been floated that3293have no relationship to the derailment, no relevance to safety, and are3294unrealistic to implement.3295 In addition, the speed at which both the government and the3296railroads adopt new technologies and the speed at which technology-3297related projects are funded have a negative impact on the growth of our3298businesses and the industry. Our member companies exist to help the3299railroads move people and goods more safely and efficiently, but we3300will not grow quick enough if technology adoption and project phases do3301not move faster.3302 Truck Size and Weight. The NRC supports maintaining existing3303federal truck size and weight maximums to help ensure safety on our3304roads and to control the damage trucks cause to our highway3305infrastructure.3306 FRA Regulations. The NRC has long supported safety in the industry,3307but numerous FRA regulations have not been data-driven, have had3308tenuous safety benefits despite being pitched as safety-sensitive, and3309have been cumbersome to implement. Many times, this has placed undue3310paperwork burdens on small businesses including our member companies.3311Congress and FRA should thoroughly examine existing regulations to3312ensure they are reasonable and practical to implement.3313 In addition, FRA should avoid mandates and more rapidly embrace and3314allow for readily available technologies that would enhance safety.3315Some examples include automated track inspection, newer AI integrated3316technologies, technologies and methods that allow for better roadway3317worker protection, etc.33185. Workforce Development3319 As an industry we are all struggling to attract and retain a good3320workforce. Railroads and their partners must understand their rail3321programs and needs and communicate them better than ever because the3322labor pool is becoming more expensive and harder to attract and retain.3323We welcome any initiatives to further educate and recruit workers into3324the rail industry. The NRC has worked diligently with veterans groups,3325trade schools, colleges and universities in this area and we would3326embrace additional collaboration in this effort.33276. Permitting Reform3328 Though this seems to be a top priority for every surface3329transportation reauthorization bill the unfortunate reality is that the3330permitting process for rail projects still moves way too slow. The NRC3331supports efforts to speed up the federal permitting and review3332processes in order to deliver critical infrastructure projects without3333delays and on reasonable timeframes. NEPA and other processes involving3334multiple federal agencies and levels of government still cause too many3335delays and unnecessary duplication which prevents many worthy projects3336from getting the green light.3337 The project delivery process must be reformed by significantly3338shortening the time it takes to complete reviews and obtain permits.3339Projects must be designed, approved and built as quickly as possible if3340we are to meet the huge transportation capacity challenges facing us.3341It takes too long to deliver projects, and the waste due to delay in3342the form of administrative and planning costs, inflation, and lost3343opportunities for alternative use of the capital, hinder us from3344achieving our capacity expansion goals.3345 The expediting of transportation projects can be accomplished while3346retaining all current environmental safeguards.33477. Build America and Buy America3348 Though NRC members are not direct recipients of federal funds,3349historically NRC members are interested in requirements regarding the3350American production of materials used in supply and construction. We3351appreciate any efforts to ensure that these mandates come with the3352recognition that they may be exceedingly difficult to satisfy, and thus3353the waiver process should be fair and efficient.3354 Closing3355 Thank you for the opportunity to share our perspective today on3356surface transportation reauthorization and building America's freight3357and passenger rail network. I look forward to answering any questions3358you may have.33593360 Mr. Webster of Florida. Thank you.3361 Mr. Cassity, you are recognized for 5 minutes.33623363 TESTIMONY OF JARED CASSITY, DEPUTY NATIONAL SAFETY AND3364LEGISLATIVE DIRECTOR, SHEET METAL, AIR, RAIL AND TRANSPORTATION3365 WORKERS-TRANSPORTATION DIVISION (SMART-TD)33663367 Mr. Cassity. Yes, sir.3368 Thank you, Chair Webster, Ranking Member Titus, and members3369of the subcommittee for the opportunity to testify this morning3370on the current state of America's freight and passenger rail3371network. As deputy national safety and legislative director,3372the chief safety officer for SMART-TD, I speak on behalf of the3373men and women of the rail industry who are committed to3374ensuring a safe, efficient, and robust transportation system3375for our Nation.3376 I have had no greater pleasure in my career than the3377opportunity to represent the single most significant factor of3378what sets our railroad industry apart from the rest of the3379world, and that is the American railroad worker. It is because3380of their efforts and their dedication that the rail industry3381has been able to achieve so many improvements over the last3382couple of decades, but there is still much work that needs to3383be done.3384 Currently, we are enjoying some of the most robust funding3385in Amtrak's history. So it should be no surprise that 2024 was3386a record year for ridership. Not only were more people able to3387enjoy the benefits of rail travel, but rural communities were3388better equipped to directly connect their citizens with the3389rest of the country. This means better access to work and3390medical care with fewer cars on roads and the highways. But,3391like every other passenger rail service on the planet, Amtrak3392cannot survive on farebox revenue alone, which is why adequate3393funding is so important.3394 But it is not just funding that is needed on Amtrak; it is3395legislative and regulatory support to protect the workers and3396riders from violent assailants. Almost daily, a train,3397platform, or customer service worker is threatened verbally or3398physically while simply trying to perform the functions of3399their job. It is not uncommon for conductors to be cussed out,3400spit on, punched, or worse. But even more troubling is the3401limitations on responding law enforcement officers to do3402anything about it.3403 Unlike aviation, rail lacks sufficient statutes to handle3404bad actors accordingly. More often than not, an assaulter, once3405detained, is forced to disembark the train in which the assault3406took place, but because arrest is not permissible, they are3407permitted to just wait on the platform and then board the next3408train--expanding the threat and not limiting it.3409 Our members' main priority when they are at work is to3410perform the functions of their jobs to the best of their3411ability day in and day out. They want to get to where they are3412going safely, without incident, and then back home to their3413families the same way they went to work. They take pride in3414safely moving passengers and freight, and they are proud to see3415a job well done. I think this is why there is so much internal3416conflict in the rail space today, because workers are being3417asked to do more with less, resulting in diminished service and3418deficient safety processes and protocols.3419 Training in the freight rail side of the industry has3420become abysmal in the majority of Class I railroads. While some3421positive changes have been made on at least one major railroad,3422the reality is that carriers are more focused on the shortest3423path rather than the most efficient one.3424 Serious and concerning reductions in training timelines are3425now present, and they are having an adverse impact, not just on3426safety but also on the attraction and retention of the railroad3427workforce. Trains are growing longer, heavier, and more3428burdensome on neighborhoods and communities. Conductors and3429engineers are being asked to do more with less. The onboard3430technologies are not wholly reliable, while others, like3431wayside detectors, are still seemingly flipped on and off like3432a switch.3433 Train accident and incident frequency continues to creep3434up, despite fewer trains on the system, an indicator of the3435dangers of long trains. And yard accidents are becoming a3436serious concern.3437 The answer does not lie simply in new technology and3438waivers from critical safe rulemaking and/or regulations. It3439lies in a steadfast commitment to achieving the safest course.3440Technology is not safer simply because it is technological. It3441is people that make the difference.3442 President Trump acknowledged this truth in his support of3443the International Longshoremen's Association's fight against3444automation. Labor should not be viewed as adversaries; we are3445the key to success. After all, it is a two-person crew that has3446brought about the safest and richest era ever in railroading3447history. It is the carmen and electricians best qualified to3448perform the required inspections that produce the best results.3449And it is all of the craft workers that drive the truest3450pursuit to achieving the safest course.3451 To close, I want to align my comment with the President's3452recent statements about the need for a transparent Government.3453The only way to gather, analyze, and interpret data, or to3454introduce new innovations is to do so transparently and3455inclusively, with all stakeholders having a seat at the table3456and an equal voice in the process. After all, it is the workers3457that are best suited to speak to the truths and realities of3458the impacts or potential effects of the consistency of the data3459and the technology desired and being developed.3460 Innovation should absolutely be considered but not for the3461sake of safety. There is no one better suited to drive every3462conversation and every effort toward safety than labor. Our3463mission is simple, and it does not waver. Safety will always3464lead the way. We stand ready to work with you and your offices3465to get us there. Again, I thank you for the opportunity.3466 [Mr. Cassity's prepared statement follows:]34673468 Prepared Statement of Jared Cassity, Deputy National Safety and3469 Legislative Director, Sheet Metal, Air, Rail and Transportation3470 Workers-Transportation Division (SMART-TD)3471 Chairman Webster, Ranking Member Titus, and Honorable Members of3472the Subcommittee,3473 Thank you for the opportunity to testify today on the current state3474of America's freight and passenger rail network. As Deputy National3475Safety and Legislative Department Director for SMART-TD and head of3476SMART-TD's National Safety Team, which collaborates with the National3477Transportation Safety Board (NTSB) in investigating rail disasters and3478incidents, I speak on behalf of the men and women of the rail industry3479who are committed to ensuring a safe, efficient, and robust3480transportation system for our nation.3481 I have had no greater pleasure in my career than the opportunity to3482represent the single most significant factor of what sets our railroad3483industry above the rest--and that is the American railroad worker. It3484is because of their efforts and their dedication that the rail industry3485has been able to achieve so many improvements over the last couple of3486decades, but there is still much work that needs to be done.3487 As we look to the future, the continued investment in passenger3488rail throughout the United States is not only a critical step forward3489in addressing transportation needs but also an investment in our3490economy, our workforce, and our future. Over the past few years, the3491Bipartisan Infrastructure Law (IIJA) has laid a foundational framework3492for this transformation by granting five years of advanced3493appropriations for passenger rail development. This funding has played3494a pivotal role in accelerating the progress of intercity passenger rail3495and has brought us closer than ever to realizing the vision of a high-3496speed rail network that can compete with the best in the world.3497 Unfortunately, there is no passenger rail line in operation today--3498anywhere in the world--that came into existence or continues to operate3499successfully based solely on fare box revenue. These systems are, first3500and foremost, investments in the infrastructure of nations and in their3501economic growth. Without the necessary funding to ensure their3502development, construction, and maintenance, passenger rail will not be3503able to reach its full potential in the U.S., nor will it be able to3504sustain current levels of service.3505 The importance of continued government commitment cannot be3506overstated. Maintaining, operating, and expanding our passenger rail3507network is a complex and large-scale endeavor that requires public3508investment to guarantee success. President Trump has long been3509recognized as a builder of big things--projects that are ambitious,3510transformative, and capable of changing the future of our country.3511Reinvigorating our national passenger rail system and igniting possible3512high-speed rail partners is a project that is perfectly tailored to his3513capabilities and expertise. These projects offer an unprecedented3514opportunity to create jobs, stimulate economic growth, and enhance our3515nation's competitiveness in the global economy.3516 We know that investments in rail will generate significant benefits3517for the American people. First and foremost, it will create a vast3518number of good-paying union jobs in the building and maintaining of the3519necessary infrastructure. These jobs will not only help to construct3520the rail network but will also support the daily operation of an3521expanded rail industry, bringing economic prosperity to communities3522across the nation. By connecting more cities, regions, and markets,3523especially rural, passenger rail has the potential to provide greater3524accessibility to opportunities, reduce congestion in other forms of3525transportation, and lower the carbon footprint of travel.3526 Moreover, adequately funding our passenger rail systems will create3527a competitive market that will directly challenge the air and auto3528industries. This competition will drive innovation, lower prices, and3529improve services for all travelers. Additionally, this expansion will3530profoundly impact American manufacturing, including the production of3531rail cars, locomotives, and other critical components, helping3532revitalize American industry and ensure our nation remains globally3533competitive.3534 The expansion of passenger rail across the United States has the3535potential to usher in a transportation renaissance not seen since the3536establishment of the Interstate Highway System under President Dwight3537D. Eisenhower. Just as that investment transformed our nation's3538mobility; passenger rail can be the catalyst for a new era of economic3539growth, environmental sustainability, and national connectivity.3540 At this moment, the rail industry is ready to make this vision a3541reality. Rail labor is committed to ensuring that the employees and3542communities involved in this monumental effort are safeguarded3543throughout the process. We are prepared to work together with all3544stakeholders to build a safe and sustainable passenger rail network3545that benefits all Americans.3546 To achieve the goals of national interconnectivity and economic3547revitalization, we must ensure long-term, guaranteed funding for the3548development of high-speed rail and the continued modernization of our3549passenger rail network. The future of passenger rail in the United3550States depends on it, and I urge the members of this subcommittee to3551support a legislative and financial framework that guarantees the3552success of this transformative initiative.3553 In addition to the infrastructure needed to make freight and3554passenger rail a success in this country, I would like to focus on the3555equally important workforce development component.3556 One of the most significant opportunities we have to improve the3557rail systems in this country is the development of a robust, well-3558trained workforce. However, expanding our rail systems without3559addressing the holes in the current training programs offered by the3560rail carriers is a missed opportunity that could increase the risk to3561workers and the communities we serve.3562 The railroads have made some significant improvements to their3563infrastructure, but if we are serious about the future of rail3564transportation, it is time we commit to ensuring that our workforce is3565properly trained, supported, and capable of meeting the growing demands3566of the system and the future.3567 Currently, the Federal Railroad Administration (FRA) is responsible3568for approving initial training and ongoing education programs for3569certified railroad workers. However, little specificity is required3570within those programs, which results in a lack of safety standards and3571deficiencies within the rail network. Additionally, the regulations are3572written so that rail carriers are free to make significant reductions3573to their programs without any meaningful consideration or oversight.3574This has resulted in sub-par training programs prioritizing operational3575needs over a safe work environment.3576 This gap in training oversight is a disservice to our members and3577the American public. Inadequate training programs that focus only on3578meeting the bare minimum federal standards do not equip railroad3579workers with the skills necessary to operate safely in a rapidly3580evolving industry. It is time we recognize that proper safety is rooted3581in the quality and depth of training, not just ticking boxes to fulfill3582regulatory requirements.3583 At the same time, expanding and improving the rail system presents3584an opportunity to incentivize rail carriers to do the right thing by3585their workforce. With the federal government investing heavily in the3586expansion of rail infrastructure, including through the Bipartisan3587Infrastructure Law and other programs, there is a clear opportunity to3588require carriers to invest in high-quality training programs for their3589workers. The federal government has the power to link funding and new3590market opportunities to the implementation of robust training and3591safety programs. Given the financial influence that Congress and the3592Administration hold, there is no reason why the rail industry should3593not be compelled to improve its training practices, with clear3594incentives tied to safety outcomes.3595 The rail labor community has been actively working to fill the gaps3596left by rail corporations in terms of training. For example, SMART-TD3597recently secured a grant of over $600,000 from the FRA's Consolidated3598Rail Infrastructure and Safety Improvements (CRISI) program. Combined3599with matching funds, this allows us to invest in training programs that3600supplement deficiencies in the carriers' programs. A critical gap we've3601identified is the lack of formal training for conductors and engineers3602who are tasked with overseeing On-the-Job Training (OJT) for new hires.3603Too often, these seasoned workers are placed in the role of a trainer3604without receiving any training on how to be effective educators. They3605are given no checklists of skills to guide their trainees or even a say3606in whether they want to assume this responsibility. The result is too3607often poor training provided by reluctant coaches who are not equipped3608with the tools necessary to develop new railroaders into safety-3609conscious, skilled workers.3610 For example, on most Class I carriers, it is not uncommon to see a3611conductor working on their first day as a promoted conductor (having3612never worked alone) and being required to train an on-the-job trainee.3613 SMART-TD is working to develop a comprehensive training curriculum3614for conductors and engineers focused on improving OJT practices and3615ensuring that new hires receive consistent, high-quality instruction.3616We are also pursuing the development of online training tools and are3617actively seeking partnerships with railroads to expand the reach of3618these training programs. Our hope is to coordinate these federally3619funded efforts with those of our brothers and sisters in the Railroad3620Signalmen Union, who have also received a CRISI grant. By pooling our3621resources, we can maximize the return on investment in safety and3622training programs and better protect both railroad workers and the3623communities we serve.3624 One of the programs SMART-TD is investing in is our workforce3625development grant, which is intended to spearhead de-escalation3626training for our members in passenger and commuter rail operations.3627Again, we can invest in expanding rail service, but if the crews3628providing that passenger service are not equipped to maintain civility3629on the trains, it will not be successful in the long term. With transit3630violence on the rise in recent years, it is of the utmost importance to3631offer these frontline employees the training necessary to keep3632themselves and the passengers they will serve safe.3633 Currently, our Amtrak members do not receive significant de-3634escalation training. As we push to expand passenger and high-speed rail3635to the forefront of American everyday life, this cannot be the accepted3636standard.3637 This SMART-TD project is an example of federal dollars (in this3638case, a CRISI grant) being used by labor organizations to bring about3639mutual benefit for members as well as the general public. It is also an3640example of a project that would benefit from a long-term commitment of3641federal support. Safety on our nation's rails and throughout transit is3642a problem that can no longer be ignored. With federal assistance, our3643labor organization is perfectly situated to address it effectively3644through partnering with the federal government.3645 This brings me to my final point: the critical state of rail safety3646in the U.S. Each year, there are approximately 1,000 train derailments3647in this country. That's nearly three derailments every day. Every one3648of these incidents signifies a breakdown in the system and the3649potential to cause catastrophic harm to rail workers, the communities3650we travel through, and the environment. The derailment of a Norfolk3651Southern train in East Palestine, Ohio, on February 3, 2023, is a3652tragic example of what can happen when safety is compromised and the3653consequences of poor safety oversight are ignored. Two years later, the3654situation has little improved, and the rail industry continues to face3655the consequences of decades of underinvestment in safety.3656 Despite the growing body of evidence pointing to systemic safety3657issues within the rail industry, legislative efforts to address these3658problems have been stalled. Both the Vance/Brown Rail Safety Act of36592023 and the Rail Safety Enhancement Act of 2024 were introduced in3660both the House and Senate during the 118th Congress. As we hold this3661hearing today, neither have been given the opportunity to receive a3662floor vote in either chamber of Congress. These bills address key3663concerns, including the need for more substantial safety standards,3664more thorough safety inspections of locomotives and rail cars, and more3665accountability for rail companies. These efforts must be given the3666chance to move forward because the current state of rail safety is3667simply unacceptable.3668 The rail industry has become dangerously unchecked, driven by Wall3669Street metrics at the expense of safety. Trains have grown longer,3670heavier, and more complex, while rail workers are pushed to move3671freight faster, with fewer resources and less training. If we continue3672down this path, the inevitable result will be catastrophic for both our3673workers and the American economy.3674 This is especially true considering the ever-expanding reduction in3675inspections and inspection times, the intermittent use of technology3676safety devices (like wayside detectors and camera systems), and the3677unjustified and pervasive desire of railroads to reduce onboard crew3678size on the majority of this nation's freight trains.3679 One of the most significant pieces of the puzzle to achieving true3680safety in the rail industry is the data that isn't collected. Every3681single day, accidents are prevented in this country because of the3682presence of a two-person crew, yet no reports or data are collected to3683measure those successes. If we were to collect them, it would reveal3684why the advent of the two-person crew has brought about the safest and3685wealthiest era in railroading history. Data is important, but it does3686not tell the whole story unless it is pulled from the whole story. To3687this point, we know that two-person crews present the safest method of3688freight train operations because the data tell us so, but because there3689is no meaningful or applicable American data to support a reduction,3690then the suggestion to make such a reduction can only equate to risk.3691 Sharp shooting data to fulfill a narrative or business plan is an3692unfortunate reality in the railroad industry. It is easy to say ``data-3693based decisions,'' but how does one determine the appropriate data is3694actually being considered? This is why it is critical that the3695government maintain transparency and accountability in the waiver and3696rulemaking process. We cannot accept that technology is safer simply3697because it is technological, nor should we accept information as fact-3698based without hearing from the people most affected by these types of3699program developments and operational changes. The American people3700depend on us to get it right, and, rightfully, the only way to do so is3701with all stakeholders having a seat at the table.3702 I urge this committee and the whole of the 119th Congress to3703recognize that the safety of rail workers and the communities we serve3704must be prioritized. The railroads can no longer be allowed to act as3705their own regulatory authority. It is time to restore oversight,3706strengthen training, and ensure that the safety of the American people3707is put ahead of corporate profits.3708 In conclusion, it is clear that a multifaceted approach is needed3709to address the rail industry's shortcomings. This includes robust,3710federally backed workforce development, enforceable safety regulations,3711and a commitment to building a safe and sustainable world-class3712passenger rail system for the future.3713 I am confident that, with the leadership on this committee and3714President Trump's support, we can make this vision a reality and3715provide the resources and safeguards necessary to protect our workers3716and our communities.3717 Thank you for your time and for considering the critical role of3718long-term investment in high-speed rail in America's transportation3719future.37203721 Mr. Webster of Florida. Thank you very much.3722 I will now turn to questions from the panel. I recognize3723myself for 5 minutes. My first question goes both to Mr.3724Jefferies and Mr. Baker.3725 The purpose of safety regulations should be to achieve a3726safety outcome in the most efficient means possible. Most FRA3727regulations are prescriptive in their approach. How could the3728industry benefit from a more performance-based approach to3729establish standards while also allowing operators flexibility3730in how the standards are achieved? I will start with Mr.3731Jefferies.3732 Mr. Jefferies. Thank you for the question, Mr. Chairman.3733 So we are a 200-plus-year-old industry and the original3734federally regulated industry. And we've got the Code of Federal3735Regulations to support that. We still have regulations on the3736books from the steam engine era that are 50 years old. And what3737that does, what that results in when they aren't updated, when3738they don't evolve with the railroad, with the evolution of3739technology and innovation is to lock you into perhaps a3740backwards-looking operating practice that may or may not result3741in the highest level of safety.3742 And, when you think about regulations, I think we would all3743agree you should be thinking about the outcomes that you are3744seeking, the safety outcome you are seeking versus the input3745you are providing. And so, when you have a performance-based3746regulation, when you have an outcomes-based regulation, you set3747a standard, and you allow for multiple ways to achieve that3748standard, also allowing for new developments in technology, new3749developments in innovation, new operating practices that can3750achieve, if not exceed, that standard. So not locking in3751current technology or current operating practice is key, in our3752opinion, in order to advance safety down the road into the3753future.3754 Mr. Baker. I would add, Mr. Chairman, that the difference3755between short lines and Class I's I think illustrates your3756point: A regulation that would work for a 20,000-person Fortune3757500 company with 13 different unions probably makes no sense3758for a 5-person company with 1 locomotive and maybe 1 union.3759 And so I think common sense would tell you, in that3760scenario, that a performance-based, outcome-based regulation3761would make more sense than a prescriptive Government telling3762you exactly how to do it.3763 Mr. Webster of Florida. Anyone else want to comment on3764that?3765 Yes, Mr. Cassity.3766 Mr. Cassity. Chairman Webster, thank you for the question.3767What I will add is labor supports the idea of performance-based3768regulations inasmuch as that what we are doing or trying to3769achieve is done safely. We do have a lot of regulations that3770look backward, but that speaks to the fact that how we achieve3771the level of safety we have today is that regulations made sure3772we have the guidelines and protocols to get us there.3773 And so, when we consider innovation, please rest assured3774that labor supports new technology and innovation to help us3775work safer. But we need to make sure that the umbrella is not3776too big so that, when the new technologies are being developed,3777that there is not too much freedom because the impact could be3778great on the American public. These are new ideas and new3779things. So we need to make sure that we have the right3780processes in place.3781 And, when I said in my testimony that labor stands ready to3782work, it is vitally important that we play a role in these3783technologies and innovations because we are the ones that are3784most impacted by it. And we are also the ones best suited to3785protect the public and how it can impact them. So, when we look3786forward to a new process for regulations, safety has got to3787lead the way. We cannot accept technology is safer simply3788because it is technological. We have to make sure we are doing3789what is right.3790 Mr. Webster of Florida. Can each of you or one or all of3791you describe the importance of permitting reform for building3792and maintaining robust and safe rail infrastructure networks?3793You want to take that one?3794 Mr. Baker. I would be happy to. It is a cliche, but it is3795very true in this case: Time is money. Permitting reform--when3796projects are delayed--and CRISI projects are a great example--3797when they are delayed, costs go up, and scope gets reduced. So3798getting it done faster just means more gets done and the3799communities and shippers feel the benefits sooner.3800 So, for most short line projects, CRISI projects, they are3801really quite simple. They typically involve track rehab in an3802existing right-of-way. It is obvious from day one that a3803project like that is going to have no significant environmental3804impact, and yet still we somehow frequently spend a year or3805more in sort of an elaborate box-checking exercise when3806everyone knows the outcome, and I would say, let's just get to3807it.3808 Mr. Webster of Florida. That is the end of my time. So I3809recognize Ms. Titus for questions.3810 Ms. Titus. We will hear a lot about safety today, and3811certainly it is a priority.3812 Mr. Cassity, you said transportation workers are the3813backbone of our infrastructure system, and I certainly agree3814with that. We need to be sure that they can perform their3815duties in a knowledgeable way, in a safe way, in a way that3816benefits themselves as well as their communities.3817 I understand that SMART participated in nine National3818Transportation Safety Board investigations last year. And I3819would just ask you, with all this emphasis on safety, why are3820conductors still getting hurt on the job? Do you notice3821patterns? Is there anything that we can do about it that might3822be helpful?3823 Mr. Cassity. Thank you for the question, Ranking Member3824Titus. That is a loaded question. Why are our members still3825getting hurt on the job is a multitude of reasoning. I would3826start with training. When I hired on with the railroad--I come3827from the craft that--those who may not know that I started as a3828conductor on CSX Transportation and was promoted to a3829locomotive engineer in 2008.3830 Our training was robust, and it was quite different. In3831fact, I actually had to pay almost $6,000 just to hire on with3832the railroad to transition that to what we are looking at today3833where you get a bonus for taking the job. But the point I am3834trying to make is that the emphasis was on training. We had to3835go through a regimented process in a school of roughly 6 weeks.3836And we had roughly 6 months of training.3837 The way the training programs work in the regulatory world3838is that the railroads are required to develop programs and3839submit those programs to FRA. But there is so much freedom in3840the training programs the way that they are approved that they3841are able to make adjustments or slash timelines without any3842oversight whatsoever. And what we are seeing now today is3843training that is being rushed through at astronomical levels.3844In some cases, in 6 weeks, you see people from hire to working3845as a conductor, and so that is the single greatest factor.3846 There is not an incident anywhere in this country that we3847have had the opportunity to investigate with the NTSB that3848training did not have a role in that. When you look at some of3849the practices and the efficiencies and the pressures, the3850external pressures that are being put on workers, then you have3851a recipe for disaster.3852 So there are a lot of things that we can improve, but to3853make the answer short, we have got to get back to taking on3854training--not focusing on regulatory minimums and only doing3855what is required by the regulation, but actually owning safety3856and making sure that our folks are comfortable in their own3857skin when they are at work and aware of what is going on and3858what changes have been made and how to do the job effectively3859and efficiently.3860 Ms. Titus. Thank you very much. I think we should look at3861that as we move forward. I appreciate that.3862 Mr. Jefferies, I have just been in this position a short3863time, and I have already had a number of Members talk to me3864about blocked crossings and long trains and the problems that3865they cause in their communities. I understand that this3866committee was told last year that they shouldn't act on any3867legislation until the report came out of the National Academies3868of Sciences on the problem of long trains that was mandated by3869the Bipartisan Infrastructure Law. Has that report come out?3870 Mr. Jefferies. I believe it may have, yes.3871 Ms. Titus. I think it came out September 17th.3872 Mr. Jefferies. Okay.3873 Ms. Titus. So I would just ask you, what is in that report3874that says that we now can act on or should act on to address3875this problem of long trains and blocked crossings?3876 Mr. Jefferies. So I thank you for the question, Ranking3877Member. If I could quickly hit on Mr. Cassity's comments before3878I get into this question: 2023 was actually the industry's all-3879time low in employee injuries, the rate of injuries, in the3880entire industry's history for Class I's. For 2024, we are still3881closing out that data. Through 10 months, it is slightly lower3882than 2023. Always more work to be done. Rigorous training is3883absolutely key, but I just wanted to include that data point.3884 When it comes to trains and train makeup and train length,3885the median train length of a Class I train right now, meaning388650 percentile, is about 5,000 feet, and about 90 percent are3887shorter than 10,000 feet, and 99 percent are shorter than388814,000 feet. And train makeup is a subject of commodity mix. It3889is a subject of what the infrastructure capacity is. And trains3890are built to be managed based on what the capacity of both the3891commodities being moved and the length of the train. And I can3892tell you, in looking at the train accident rate, as we have3893seen in certain areas, trains grow a bit longer depending on3894commodity mix, largely driven by the decrease in coal, increase3895in intermodal----3896 Ms. Titus [interrupting]. Let's get to the report.3897 Mr. Jefferies [continuing]. We have seen the rate decrease3898from 2022 through 2023 through the first 10 months of 2024. And3899so we continue to operate trains in a safe manner regardless of3900length and commodity mix.3901 Ms. Titus. I appreciate that, but my question was about the3902report, what it said that Congress can now act on, since this3903information has come out about these long trains and blocked3904crossings. I could just briefly say that Congress should3905empower regulatory agencies to address challenges by requiring3906railroads to put cars together in the safest configuration,3907ensuring crews are trained, authorizing the FRA to obtain and3908publicly share data on blocked crossings, and imposing3909financial penalties of sufficient magnitude to ensure the3910crossings don't remain blocked. And I think this is something3911we need to look at as we move forward with this3912reauthorization.3913 Thank you. And I yield back.3914 Mr. Webster of Florida. The gentlelady yields back.3915 Mr. LaMalfa you are recognized for 5 minutes.3916 Mr. LaMalfa. Thank you, Mr. Chairman, I appreciate it.3917 And thanks to our panelists. And I am going to have a3918couple of questions for Mr. Jefferies and Mr. Baker to start up3919with. And it is going to be based on our old pals CARB in3920California, California Air Resources Board. As you know, they3921submitted in 2023 a petition to EPA to be granted yet another3922waiver under the Clean Air Act to set its own standards for3923locomotives called the In-Use Locomotive Regulation. It would3924require by 2030--not loud enough? Part of it is me. I am kind3925of broken too, so anyway.3926 So, by 2030, only locomotive engines made 2008 or newer are3927available in California under that reg. So it could be that3928that reg, that request would violate the Clean Air Act, which3929explicitly prohibits States from setting their own standards3930whenever we use locomotive engines but also isn't3931technologically feasible at this point.3932 Now CARB has seen the light and withdrawn for now its3933waiver application to EPA for the in-use locomotive reg. So,3934gentlemen, please tell this committee what the economic impact3935of the railroad issue would have been if EPA had gone through3936with this rule, and how would any cost increases basically hit3937the consumers? So, first, Mr. Jefferies for a moment and then3938Mr. Baker.3939 Mr. Jefferies. So what the impact of the rule would have3940been? Well, I can tell you for the two Class I railroads3941located in California, BNSF and Union Pacific, the annual cost3942would have been $800 million per year, so $1.6 billion3943collectively. And I know that the short lines have reported3944that at least 25 percent of their companies would be put out of3945business. We are gratified that CARB withdrew its request to3946EPA. The request was unlawful, not only under the Clean Air Act3947but also under ICCTA, the Interstate Commerce Committee3948Termination Act. Certainly the overarching goals of the3949regulation were laudable, to move to further decrease3950emissions, and that is something railroads continue to work on3951to this day.3952 Mr. LaMalfa. Well, you are working as technology improves,3953not heavy-handed mandates.3954 Mr. Baker.3955 Mr. Baker. Yes, sir. We were extraordinarily concerned3956about that waiver. You would not have thought that CARB could3957come up with a waiver that the last EPA wouldn't have approved,3958but they seem to have found one. And so we were pleased when it3959was finally withdrawn. It would have been completely3960catastrophic for the short line railroad industry.3961 Mr. LaMalfa. Tell me, Mr. Baker, there is a quote out there3962saying that CARB acknowledges that a percentage of short lines,3963they know they would go out of business.3964 Mr. Baker. Yes, even CARB's own rule, they said, if short3965line railroads can't pass on these costs to their customers,3966which most couldn't, they would just go out of business. And3967they just left that in there as, like, well, that is an okay3968result. And we obviously found that pretty horrifying, and3969their shippers found that horrifying and the communities.3970 Mr. LaMalfa. It is very important in my area of ag3971products, moving rice or other things in the area or wood from3972the mill, being able to get it to the mainline in a timely3973manner. And it is just over. It is amazing.3974 So tell me about this, gentlemen, if President Trump has3975come out on the side of not allowing this mandate to come3976forward, but what if we have a change politically, and should3977we have a change of the laws to make certain that CARB doesn't3978have the ability to get waivers in the future and then just3979keep some continuity in the industry?3980 Mr. Jefferies. I would say absolutely. Again, we think it3981is what CARB tried to do with locomotive regulations was in3982conflict with two existing laws, but apparently that needs3983further clarification.3984 Mr. LaMalfa. Yes.3985 Mr. Jefferies, you touched on at-grade crossing. And I have3986great concern with that because, in rural areas, that is about3987it. And my understanding from a previous hearing, and if I am3988remembering correctly, is that to make an at-grade crossing3989into a split crossing is about $40 million, at least in my3990high-cost State of California. So what do you see in that at-3991grade elimination program? For every one that goes out, are we3992going to put one in that is a split grade, or are we going to3993see a bunch eliminated? Because we have this mess of high-speed3994rail going through the Central Valley that is going to cut off3995a lot of farms and access. So touch on that, please.3996 Mr. Jefferies. So I think grade crossing elimination is3997absolutely key in certain situations. Certainly, it doesn't3998apply everywhere, but I think, in areas anywhere you have a3999grade crossing, an at-grade crossing, driver education is4000important so that folks know to ``see track, think trains and4001look for trains that might be oncoming.'' Having appropriate4002safety equipment at the crossing, again, is a key safety4003attribute. But there is no one-size-fits-all. The important4004thing, though, is that folks understand that, when road and4005rail connects, the drivers need to assume there is a train4006coming and verify that that is not happening before trying to4007get across the track.4008 Mr. LaMalfa. Yes, I mean, if we have got lights and signals4009and arms and all this stuff. So, after a point, it becomes the4010Darwin awards or something.4011 So, anyway, I yield back, Mr. Chairman.4012 Mr. Webster of Florida. The gentleman yields back.4013 Mr. Carson.4014 Mr. Carson. Thank you, Chairman.4015 One of the many Executive orders this week froze hiring and4016infrastructure funding. Considering that many infrastructure4017projects really get started in the spring, as you all know,4018this timing was anything but good. In fact, the Federal Highway4019Administration had to shut down all payments because of this4020very poorly drafted Executive order.4021 Last evening, I, along with my team, heard from the4022metropolitan planning organization, our local one, and they are4023very concerned about the damage this will do to infrastructure4024projects that are underway or at least soon to start. Do any of4025you have concerns about this new funding freeze damaging your4026priority objectives? And, if so, please tell us how these4027Executive orders will effectively hurt your progress.4028 Mr. Baker. I would agree, Congressman, the Executive order4029was not real well worded. I think the initial 1-day reaction4030was a blanket pause across all of DOT on all disbursements. I4031do think that the clarification memo posted on the White House4032website last night clarified that it was really only meant to4033deal with what they are calling Green New Deal projects and EV4034mandates. So I think, in reality, after 36 hours of extreme4035concern, I don't think really many rail projects at all will be4036affected, but it was probably a lesson in being careful with4037words that get posted to the Federal Register in Executive4038orders.4039 Mr. Carson. To that point, while we are there, Mr. Baker,4040you know very well that the great Hoosier State, Indiana, is4041the home to many very thriving short line railroads, which4042helps us live up to the Hoosier nickname, the Crossroads of4043America.4044 What is working well now in terms of short lines and your4045customers? And what are the challenges ahead for this very4046unique sector? And how can this committee help your efforts4047effectively?4048 Mr. Baker. Yes, sir. There are a lot of short lines in all4049of Indiana. I believe there are four in your district alone.4050The Napoleon, Defiance & Western is a great example. Ten years4051ago, there was a viral--at least viral for the world of freight4052railroading--a viral video showing a train moving down that4053track at about 5 miles an hour, and it was wavy, and it was4054messy, and it was called the worst railroad in America, and it4055probably was.4056 That railroad has now received a CRISI grant. It has4057upgraded its infrastructure. It has doubled its customer base.4058It is moving faster and moving safer. It is good for the4059community. It is good for the State. It is good for the4060shippers. It is a fabulous success story, and that is4061replicated in multiple places in Indiana. And, again, at the4062risk of harping over and over on the same point, the CRISI4063grant is a huge help for short line railroads. It can be4064transformational. And it just lets railroads like Napoleon,4065Defiance & Western in Indiana do projects that otherwise4066wouldn't be possible.4067 Mr. Carson. Thank you, Chairman.4068 I yield back.4069 Mr. Webster of Florida. The gentleman yields back.4070 Mr. Nehls, you are recognized for 5 minutes.4071 Mr. Nehls. Well, I appreciate that, Mr. Chairman.4072 I appreciate the opportunity to discuss the freight and4073passenger rail network. As we gear up for the surface4074reauthorization, I have several priorities that I will be4075advocating for and that I believe will increase safety.4076 Mr. Jefferies, I want to commend you for your comments on4077the Railroad Crossing Elimination Grant Program. I do believe4078we are of one mind, one mind that the safest crossing is the4079crossing that is not there. I believe labor supports it as4080well.4081 I would like to say, hey, good to see you Greg, good to see4082you, Jared.4083 As we work on surface reauthorization and specifically the4084rail title, I will most assuredly be advocating for that4085program and another one to modernize the tank fleet with 21st-4086century telematics. The Telematics Grant Program that I4087authored in the Railway Safety Enhancement Act will give4088shippers and tank car owners vital information about their4089assets' health and information about where their products are4090in the rail network. I believe this information is the property4091of the tank car owners and must be shared with the operators in4092real time as their goods are moving along the rail network.4093 Mr. Jefferies, the FCC's allocation for the 900 megahertz4094spectrum is a valuable opportunity for the railroads to enhance4095safety, reliability, and operational efficiency. Will the Class4096I railroads commit to comply with the FCC order on spectrum by4097September of this year? I think they want to know by September4098of 2025. Will you do that?4099 Mr. Jefferies. Thank you for the question. And you are spot4100on with our shared views on rail crossing elimination, and4101thank you for your support on that. Yes, we will comply. I have4102talked to our internal experts, and we are on schedule to4103comply. Be happy to bring in those experts to sit down with you4104and your team in more detail. But that process is in place, and4105we are moving forward.4106 Mr. Nehls. And will you commit to promptly inform the FCC4107and members of this committee if there are any issues with4108compliance?4109 Mr. Jefferies. Absolutely.4110 Mr. Nehls. Once the railroads are done moving to the A-4111block within the 900 band, can you share what the railroad4112industry's plans are to further develop that spectrum to show a4113continued commitment to safety and what the timeframe the4114industry will need to achieve that?4115 Mr. Jefferies. Well, certainly, that is what we are4116developing right now. And, when you look at spectrum use and4117what we have been able to build out along our network, through4118our PTC network, we have got a 54,000-mile 5G network now,4119moving on to tighter bands of spectrum, that will open up more4120capacity, allow to us to really take kind of the wireless4121backbone to new heights.4122 Mr. Nehls. Okay. I am going to have followup questions for4123the record on this topic, and I expect them to be answered. I4124would like to pivot to a discussion about C3RS. Mr. Jefferies,4125what changes do railroads recommend to the Confidential Close4126Call Reporting System, which is at C3RS, to get more of the4127Class I railroads to enroll in the program? Because, if you4128remember, you sent a letter saying all the Class I's would4129enroll in this after East Palestine.4130 Mr. Jefferies. Thank you for that. And it is a good4131discussion to have again.4132 So two of the Class I's have signed up to the program. We4133have long held views that edits need to be made to the program.4134When folks think about the ability to report concerns4135confidentially--first and foremost, every railroad has a system4136like that in place.4137 Mr. Nehls. Sure.4138 Mr. Jefferies. And following the aviation----4139 Mr. Nehls [interrupting]. Let's just--Mr. Jefferies, hate4140to cut you off, but let's get it done. I have 1 minute left.4141 Mr. Jefferies. Okay.4142 Mr. Nehls. I believe you testified before the Senate4143Commerce Committee in March of 2023. Then-Senator Vance asked4144if 30 seconds was enough time to perform car inspections, to4145which you replied, quote, ``Thirty seconds doesn't seem like a4146long enough time to do an indepth inspection.''4147 Should there be a minimum time requirement for carmen to do4148inspections? And if not, what do you recommend?4149 Mr. Jefferies. So I would say there is no one-size-fits-4150all. There are myriad inspections that occur. And while 304151seconds may not be a lot, there may be zero time required if it4152is an autonomous inspection.4153 Mr. Nehls. All right. Fair enough.4154 Let the record reflect that Vice President Vance introduced4155legislation to mandate two-person crew size. That was endorsed4156by President Trump. Incoming Secretary Duffy, who just moved4157out of Commerce Committee by a vote of 28 to zero, confirmed he4158would not pull back the two-man work rule.4159 As a member of this committee, I support that rule. The4160idea that Republicans will do whatever Big Business wants and4161will not take into account the needs of the working men, it is4162outdated. I will just say, that dog doesn't hunt.4163 With that, I yield back.4164 Mr. Webster of Florida. The gentleman yields back.4165 Mr. Moulton.4166 Mr. Moulton. Thank you, Mr. Chairman.4167 And I just want to begin with a word of appreciation for4168the comments from my colleague from Texas, who has been a real4169partner on working to find good solutions for rail safety, rail4170safety solutions that take the industry forward, not backward,4171and improve safety for all, and make the point to all of4172America that rail is a far safer way to transport things,4173especially hazmat, than trucks. And that point seems to be lost4174on a lot of people.4175 Mr. Chairman, in your opening remarks, you talked about4176improving safety through technology and innovation. That is4177what we are talking about. When the industry comes back to us4178and says you just want to install defect detectors, a 1960s4179technology, when you have the opportunity to put in telematics4180so that every engineer on every train knows the instantaneous4181bearing temperature of every wheel and can immediately respond4182to a problem--and, oh, by the way, it is not so bad that the4183customers also know where their cars are for the first time in4184history. That is about taking the industry forward, not back.4185 Now, Mr. Chairman, I would be remiss if I didn't also4186mention that you talked about decreasing dependence on4187Government funding for railroads. It is interesting that you4188don't talk about decreasing dependence on Government funding4189for highways or airlines. We have subsidized highways and4190airlines to the tune of billions and billions--hundreds of4191billions of dollars over the decades.4192 It is interesting that the freight railroad system is asked4193to compete against this heavily subsidized alternative. Freight4194railroads are really the only transportation system in America4195that funds its own infrastructure through the private sector,4196right?4197 Now, President Trump has instituted this new Department of4198Government Efficiency. I think the idea is that the Government4199should invest in efficiency and perhaps not subsidize4200inefficiency.4201 So, if the only transportation system efficient enough to4202pay for its own infrastructure is freight rail, then why do we4203continue spending billions and billions and billions of4204taxpayer dollars every year subsidizing highways and truckers?4205Shouldn't we be investing in efficiency?4206 Does that make sense to you, Mr. Jefferies?4207 Mr. Jefferies. One hundred percent.4208 Mr. Moulton. You also mentioned, Mr. Chairman, that Amtrak4209should be off Government support, but you didn't mention that4210our highways should be off Government support or that our4211airlines should be off Government support. It is an interesting4212contrast.4213 Mr. Cassity, you mentioned high-speed rail in your opening4214comments, or your testimony. It is interesting that America is4215the only developed country in the world not investing in high-4216speed rail--the only developed country in the entire world. I4217would challenge anyone here to think of another developed4218country that is not investing in high-speed rail. We are just4219barely starting.4220 Now, is that because there is some vast high-speed-rail4221conspiracy that has infected every other country on Earth and4222just hasn't hit the United States yet? Or does it actually make4223sense--make economic sense to invest in high-speed rail?4224 Mr. Cassity. Thank you for the question, Congressman.4225 It absolutely makes sense to invest in high-speed rail. We4226fall short in comparison to the other countries, and one of the4227most advantageous opportunities we have is to expand the rail4228system in this country, and high-speed rail is that4229opportunity. And we fully support and are on board to see more4230rail for the citizens of this country.4231 And so, we need to capitalize on that, we need to accept4232that. There are no conspiracies out there, as far as I am4233aware, of high-speed rail.4234 The one hurdle we do have is that, for some reason, in this4235country, people hear ``railroads'' and they think of ancient4236technology or ancient methods of transportation. And we have to4237get outside of that box and make sure that we are talking to4238folks and letting them know what rail can do for them and how4239we can make their lives better.4240 Mr. Moulton. Rail is a more efficient use of taxpayer4241dollars. It is a more efficient way to simply transport goods.4242One single train can take 150 to 300 trucks off the highway.4243That is good for everybody who uses our highways--truckers,4244passenger cars.4245 We know that tens of thousands of Americans die on our4246highways every year. Railroads are far safer. They are also4247better for the environment. I mean, the benefits go on. So4248let's invest in efficiency.4249 Mr. Jefferies, why does the rail industry have a reputation4250for being stodgy and old-fashioned and doing things like Mr.4251Nehls and I described, investing in old-fashioned technology4252rather than growing for the future?4253 Mr. Jefferies. Well, I would beg to differ, not4254surprisingly.4255 Look, we are a 200-year-old industry, we are a legacy4256industry, but I can assure you, we are not your grandfather's4257railroad, we are not your father's railroad, and tomorrow's4258railroad is not going to be our railroad. And innovation and4259technology are that path forward.4260 You talked about using detectors from the 1960s. That is4261why we are developing inspection portals, machine visioning,4262acoustic bearing detectors, autonomous track inspection4263technology. All of that should be encouraged, because there is4264a positive safety outcome.4265 Mr. Moulton. I have lost my time. But let's hope you do4266enough of that that it actually becomes the reputation of the4267industry. That----4268 Mr. Jefferies [interposing]. I am with you on that. Thank4269you.4270 Mr. Moulton [continuing]. Is the opportunity before us.4271 Thank you, Mr. Chairman. I yield back.4272 Mr. Webster of Florida. The gentleman yields back.4273 Mr. Owens, you are recognized for 5 minutes.4274 Mr. Owens. Thank you. Thank you so much, Mr. Chairman and4275Ranking Member Titus. Thank you for holding this hearing today4276as the committee prepares for the surface transportation4277reauthorization. And, of course, I thank our guests.4278 I am thrilled to be a new member of this subcommittee. Utah4279boasts a rich rail history, from hosting the completion of the4280transcontinental railroad at the Golden Spike Ceremony in 18694281to our vision of a statewide inland port. Our goal is to be the4282crossroads of the West, as we serve as a vital hub for freight4283exchange across the country.4284 The rail industry is one I deeply admire. In my position as4285vice chair of a subcommittee over on the Committee on Education4286and Workforce, I applaud America's freight rails in using their4287own funds on capital expenditures and upkeep expenses. While4288much of our country's infrastructure lags behind, modern4289standards and needed upgrades to freight rail is at the tip of4290the spear in its innovation.4291 With an average compensation of over $149,000 and a median4292tenure of railroad employees of 13 years, this industry4293continues to be the place where people want to work, enjoy4294working, and supporting a family without a large amount of4295student debt. As a member of the Education and Workforce4296Committee, I look forward to working with you to better connect4297America's great talent to this essential industry.4298 Mr. Jefferies, from the workforce perspective, what does4299your industry do differently? And how can other industries4300struggling with stagnant wages, employment and retention, and4301low morale learn from the railroads?4302 Mr. Jefferies. Thank you for the question.4303 And you hit the nail on the head. Our employees--as Mr.4304Cassity made the point, our employees are the key reason that4305we are able to serve America's communities and customers so4306well and do it at such a high level of safety. And they deserve4307our thanks every day.4308 And you are right that the average tenure for a rail4309employee is almost four times that of other industries. And so4310we are very proud of that, and we want to keep our folks--keep4311them online. And that is why we have fourth-generation4312railroaders working on our teams.4313 So I would put a few different pieces together.4314 One, we have worked very hard over the past few years to4315build a positive momentum with our employees, whether that is4316scheduling agreements that provide a more predictable schedule4317for our operating crafts to better plan their lives; whether it4318is negotiating out paid sick benefits, of which over 93 percent4319of our employees now have; or whether it is getting a jump on4320collective bargaining so that our employees don't have to wait4321several years before they get their additional pay increases.4322 And I am very pleased that, while the latest round of4323bargaining started just this past November, we already have4324five national agreements fully ratified, in place. So the4325employees of those five unions know what their salary increases4326are going to be for the next 5 years, they know their4327healthcare is going to be almost half that--the cost of their4328healthcare is going to cost almost half that of the general4329population, and they know that they are going to get additional4330days off early in their careers. Not to mention additional4331deals that have been done on a railroad-by-railroad basis to4332lock in agreements as well.4333 And so it is about listening to the employees. It is about4334understanding what their priorities are. Again, we have a new4335generation of railroaders coming onto the railroad that have4336different priorities, different desires from what they want to4337see. And a lot of that is about work-life balance and,4338understandably, being able to plan your life and schedule your4339life and be home for planned events.4340 And so that is a continuing effort, but I think that is a4341priority you hear from our executive level day in and day out,4342and that resonates, and we are seeing progress there.4343 Mr. Owens. I just want to make a point. I mentioned earlier4344that the median tenure of a railroad employee is 13 years. The4345private sector is 3. So there is something that you are doing4346right, for sure.4347 I want to add just one other question before we let you go.4348The efforts to cut redtape associated with--has been successful4349in recent years. What more can be done to fast-track routine4350maintenance and replacement construction projects without4351ignoring environmental or historic preservation concerns?4352 Mr. Jefferies.4353 Mr. Jefferies. So, quickly, a couple different things.4354 One, Congress has already taken a huge step--in fact, taken4355it twice--when it directed the Advisory Council on Historic4356Preservation to provide the same categorical exclusions to rail4357properties as it does highway properties when replacing old4358assets. However, the ACHP has continued to ignore Congress'4359direction. So they need another reminder.4360 Two, when replacing existing assets, same infrastructure,4361whether it is rail, whether it is bridges, one, limited4362reviews, of course, but also looking at the impact of that4363project. Some of the things we have seen also look at the4364impacts of the commodities that move over that project once4365complete, commodities we have a common-carrier obligation to4366move. To us, that is not part of an appropriate environmental4367review. We should be talking about the project itself with set4368timelines and shot clocks.4369 Mr. Owens. Okay.4370 I just want to wrap up by saying, Mr. Cassity, we are going4371to do our best in Education and Workforce to prepare some of4372the greatest kids in our country for a great industry. So just4373know, we are on top of that. We are going to make sure we4374address it in a big way.4375 Thank you so much.4376 And I yield back.4377 Mr. Webster of Florida. The gentleman yields back.4378 Mrs. Foushee.4379 Mrs. Foushee. Thank you, Mr. Chairman and Ranking Member4380Titus, for holding this hearing.4381 And thank you to the witnesses for being with us today.4382 Mr. Jefferies, are railroads currently using artificial4383intelligence to perform safety inspections? And if so, are they4384doing so in a wholly automated way, or are these AI programs4385being monitored by or used in conjunction with railroad safety4386inspectors?4387 Mr. Jefferies. So the short answer is, yes, AI is being4388deployed.4389 And when you think about what happens every day on the4390network, whether it is via detectors, sensors, other4391information, we gather an immense amount of data about not only4392the operations, the safety, but the service of our network.4393 And so, the more data we continue to gather, we can use AI,4394through predictive analytics, to determine when a product might4395begin to show wear and tear based on historical performance.4396Or, in a service standpoint, we might be able to further4397calibrate delivery windows so that our customers can better4398have a sense of when we are going to arrive, plan their4399workday, have their employees ready. And so there are myriad4400ways.4401 But, certainly, there is always a human element to that.4402So, for example, if an inspection portal identifies a potential4403flaw in a train as it runs through it, that is when you have4404the employee then take a look at that and determine exactly4405what is going on and then, if there is a need to fix it, have4406the employee go out and fix it.4407 So I would say we are very much in the embryonic stage of4408how AI might be able to be deployed, but we are certainly using4409it as a way to really conduct indepth analysis to what is a4410gargantuan amount of data we pull and will continue to pull.4411 Mrs. Foushee. And, secondly, I am curious what standards,4412if any, AAR has in place or is planning to put in place4413regarding the use of artificial intelligence in railway safety,4414building on what you just said.4415 Mr. Jefferies. So, not only at the AAR but, also, we have4416an IT company called Railinc, located in Cary, North Carolina,4417and I would say we are figuring out that path forward now.4418 Right now, AI, like I said, we are in the embryonic stages,4419and as we mature our practices at the industry level, there is4420always an opportunity to compare best practices and determine4421maybe what the best use of information may be or how to best4422address any issues identified by technology might be.4423 And so, AI-specific, we don't have any sort of specific4424standard in place, but I would talk more about how technology4425plays into inspections, repairs, car repairs, et cetera.4426Absolutely, we do.4427 Mrs. Foushee. Thank you.4428 Mr. Cassity, we just had a near-shutdown of some of our4429Nation's ports due to disagreement between labor and management4430over increased automation.4431 From your perspective with SMART-TD, in what ways do you4432see the freight railroads seeking to automate their safety4433work?4434 Mr. Cassity. Sure. Thank you for the question,4435Congresswoman.4436 So AI is becoming a unique challenge in that, one, it is4437needed and it has its purpose, but, two, it also is one of4438those things that we have to make sure happens in the light of4439day.4440 And so, to speak to your direct question about the4441longshoremen, ways that we can see AI, obviously, there is an4442appetite or a growing desire for the railroads to eliminate4443onboard crew staff on the locomotives and the trains that are4444being operated. When you look at the technologies being4445developed and the tasks that they are equipped to do and the4446way that the railroads are approaching it, you can see the4447writing on the wall for automation.4448 Very quickly, as an example, CSX recently put out a letter4449to their training mentors that they are encouraged to reduce4450training time where PTC is present, simply because they feel as4451though it relieves some of the pressures put on the conductor.4452And that is not true. When we are talking about artificial4453intelligence, it is deployed in the railroad.4454 And to Mr. Jefferies' point, we do have these car portals,4455we do have track inspection, but it is not being communicated4456to the people that need it most, and that is the workers.4457 And I will give you two very quick examples. In Lexington,4458Kentucky, a few weeks ago, we had a derailment. Technology that4459was deployed on a locomotive that is there through AI to scan4460the track identified a defect in the rail and said, basically,4461there was a wide gauge that was about to happen. And that4462defect went unacted on for 5 days. And then, sure enough, a4463derailment occurred on that exact point of that railroad where4464the AI detected it.4465 To the flip side of that, when you talk about car portals,4466in Nebraska, we had a train with a broken wheel. It was a4467system train that went back and forth. There were at least five4468times that train and that particular car with the broken wheel4469went through the car portal, and it was identified--we have the4470pictures--but it wasn't acted upon on the railroad until the4471actual wheel failed and we had a derailment that we went to it.4472 So, when we develop new technologies and we have4473innovation, we have to make sure, to Congressman Nehls' point4474and Congressman Moulton's point, that the information is going4475to where it needs to go, not just to a back room or a closet4476where it is hidden in the dark, but to the employees who hold4477that responsibility and hold that accountability to make sure4478that they stay safe, that the public stays safe, and that we4479are doing the right thing.4480 AI is important, but it has to be done in the light of day.4481 Mrs. Foushee. Thank you for that.4482 Mr. Chairman, that is my time. I yield back.4483 Mr. Webster of Florida. The gentlelady yields back.4484 Mr. Burlison, you are recognized for 5 minutes.4485 Mr. Burlison. Thank you, Mr. Chairman.4486 Mr. Baker, you didn't mention my district, so I will say,4487in southwest Missouri, there are 315 miles of track that is4488owned or operated by short line and regional rail. And you4489emphasized in your testimony that these are small businesses. I4490mean, it is thrown out that these are big corporations, but,4491no, these are small businesses. And I think small businesses4492are the backbone of the American economy and vital to every4493State, including the State of Missouri.4494 That being said, if you had to rank in order the most4495egregious, the most burdensome and ridiculous regulations that4496your industry faces, what are the top three?4497 Mr. Baker. Well, first of all, I apologize for not4498mentioning your district. I would have loved to, but I have4499found Congress is very strict about the 5-minute rule.4500 Mr. Burlison. You are welcome to come to southwest4501Missouri. It is beautiful.4502 Mr. Baker. I will happily accept that invitation. I would4503love to join. Maybe combine it with a visit to the chairman's4504district also.4505 Mr. Burlison. Sounds good.4506 Mr. Baker. Boy, the most egregious?4507 I will say, one, which is really more kind of redtape than4508a regulation, but on the CRISI grants, when they come, there4509are recipients of the grants who just ask for permission to use4510pre-award authority. That is basically to spend their own money4511at risk before the grant gets finalized just so they can get4512things going: buy materials, for instance, hire engineers, hire4513contractors, start the work. And it is very difficult to even4514get authority for pre-award approval from the FRA. For the life4515of me, I cannot figure out why that is anything other than an4516easy ``yes'' almost instantaneously.4517 That is one.4518 Dispatcher certifications. Dispatcher and signalmen4519certifications is a new rule that is coming that I believe is a4520textbook example of solving a problem that just doesn't exist.4521There is no data, no reason to believe that we have dispatchers4522or signalmen who are untrained or undertrained or causing4523accidents because of a lack of training. We find the4524certifications to be----4525 Mr. Burlison [interrupting]. I mean, it seems that you are4526employing these individuals, and if they are not doing a good4527job or they are not safe, then they are not going to have that4528job, right?4529 Mr. Baker. That is right. And there is perfect alignment of4530incentives. It is not like there is some world where we4531wouldn't want our own employees to be trained to do the job.4532 Mr. Burlison. Well, anybody that understands licensure laws4533and certification laws understands it is all about reducing the4534number of people that are eligible to work, right, so you can4535drive up labor costs. This is what happens in the healthcare4536system. Every work, labor-related industry that wants to impose4537Government certification requirements is just about reducing4538the labor pool.4539 Mr. Baker. The--yes.4540 Mr. Burlison. I wanted to ask, I believe, Mr. Jefferies: In4541your testimony, you highlighted the importance of Congress to4542oppose policies that harm the railroads' ability to operate4543safely and efficiently, such as requiring a two-person crew in4544freight locomotive cabs. Which, there has been zero4545quantitative evidence that a two-person-crew mandate would4546actually enhance safety.4547 So could you highlight, what is the impact and the effect4548in the industry that this two-person rule has?4549 Mr. Jefferies. So, as I mentioned at the outset, locking in4550current operating practice in perpetuity, in our view, is never4551a good idea in industries that continue to evolve, whether it4552is the rail industry or any other industry.4553 And your point is spot-on; there is absolutely no data to4554show that that regulation advances safety. In 2016, the Obama4555administration, in its preamble to the NPRM it put out,4556acknowledged as much. In 2019, when the Trump administration4557withdrew it, they acknowledged as much. In 2020, on the4558campaign trail, President Biden made a campaign promise that he4559was going to put the rule back out. He did. Still a lack of4560data. Technology has only continued to advance. PTC has only4561continued to advance.4562 Our view is that, look, train consist has always been a4563matter for collective bargaining between us and our employees.4564That is where it should be. There is no data to support another4565outcome. And we think locking in current operating practice is4566counterintuitive to the continued progress of the industry,4567especially when--especially when one of the core priorities4568identified by our employees is establishing more of a work-life4569balance.4570 And when we can create a scenario when an employee works a4571scheduled shift, goes home to bed in their home every night,4572then we believe there are opportunities to continue to have4573that conversation with our unions to see if there are4574agreements that can be met in certain situations.4575 Mr. Burlison. Thank you.4576 My time has expired. I yield back.4577 Mr. Webster of Florida. The gentleman yields back.4578 Mr. Deluzio.4579 Mr. Deluzio. Thank you, Mr. Chairman.4580 And good morning, gentlemen.4581 I want to start on a place, I think, around safety where we4582agree in industry--Mr. Jefferies, you represent the big Class I4583railroads; Mr. Baker, the short line railroads--Railroad4584Crossing Elimination Program.4585 And for folks at home, it is a pretty important program4586that can fund safety improvements at rail crossings.4587 I will talk about my district in western Pennsylvania.4588Nearly half of my constituents live within 1 mile of the4589tracks. Ninety-five percent or so live within 5 miles. I hear4590from local government all the time about concerns and safety4591issues around crossings. Cheswick, in my district, home to a4592crossing with the second highest accident rate in the Northeast4593United States. McKees Rocks, in my district, fifth worst rate4594in Pennsylvania.4595 So I see you both nodding.4596 Mr. Jefferies, I will start with you. You agree this4597program is important and can help improve safety for the big4598railroads?4599 And, Mr. Baker, I will ask you the same question about your4600railroads.4601 Mr. Jefferies. One hundred percent. We supported it in the4602development of the IIJA, and we look forward to supporting it4603in the next reauthorization effort.4604 Mr. Deluzio. Very good.4605 Mr. Baker?4606 Mr. Baker. The program works. I think we only all wish4607there could be more of it. The biggest challenge with grade4608separations is just they are quite expensive.4609 Mr. Deluzio. It is not hypothetical in my district or, I4610assume, many of my colleagues'. This really is a risk to our4611communities. I hear from so many local officials about this4612problem. We need to make sure we continue to fund this in a4613real way.4614 Now, maybe where we aren't going to agree so much are4615broader rail safety efforts that have been quite bipartisan. I4616commend Mr. Nehls from Texas, Mr. Moulton, Mrs. Sykes, Mr.4617Rulli, who represents East Palestine. I represent the western4618Pennsylvanians also impacted by the terrible derailment in East4619Palestine with Norfolk Southern almost 2 years ago. And yet we4620still have not had Congress take any action on rail safety.4621 That is unacceptable to me and my constituents. I have4622heard Mr. Rulli talk about his constituents in East Palestine.4623I have heard it from Vice President Vance, President Trump. I4624heard it from the prior administration. They support these rail4625safety efforts, and yet nothing has happened. I don't accept4626that.4627 And I guess a simple part of this is whether we are going4628to trust the rail industry to regulate themselves.4629 So, Mr. Cassity, let me start with you. You represent men4630and women who work in this industry, who work to keep the4631trains moving, moving safely and efficiently. Mr. Cassity, do4632you trust the railroads to regulate themselves?4633 Mr. Cassity. Unfortunately, I do not. They make a lot of4634unilateral changes quite regularly that are the outcome of4635external pressures, whether that be Wall Street or scheduling4636or whatever that may be. And they find ways to capitulate to4637those pressures which unfortunately end up cutting corners that4638affect our people.4639 When you look at long trains, when you look at the4640scheduling, when you look at attendance policies, all of these4641things have impacts on the workforce and ultimately the4642service.4643 A two-person crew, if they had their way--Mr. Jefferies4644just said it--they don't feel the need to keep the conductor.4645But if we remove the conductor off the cab of the locomotive,4646we do have a history that shows two-person crews and the4647conductor deliver a level of safety. To remove that person, you4648are going to equate to risk; you are going to bring a new risk4649into it.4650 And so we have to make sure that we have guidelines and4651guardrails that we are doing the right things, because they are4652going to have impacts on the American public.4653 And when you look at attendance policies--just an example.4654Last week, I believe it was, maybe two, BNSF decided to cut and4655slash their attendance policy without any conversation or4656consideration. Work-life balance is being used up here as4657though it is a gift, but it is not a gift; it is a hammer over4658our workers' head.4659 And so we have to make sure that we are doing the right4660things for the workers and, in turn, do the right things for4661the American public.4662 We want and need the railroads to succeed; please don't get4663me wrong. Rich railroads work well for our membership.4664Successful railroads work well for our membership. We need them4665to do the right thing. But, unfortunately, we cannot trust them4666to do that, because there are pressures that they capitulate4667to, and we can't account for that.4668 Mr. Deluzio. Well, Mr. Cassity, you made a point about4669railroads succeeding being good for your members and being good4670for our country, right? We have to move goods safely and4671quickly. I am not willing to use my constituents as collateral4672damage in the way of profits, we have to move things on the4673rails safely.4674 And, to the point of trusting the railroads to regulate4675themselves, in the year after the derailment, the Class I4676railroads' derailment rate increased.4677 I will read you a quote about those figures. Quote, ``These4678figures show the railroad industry's safety standards are4679getting worse. We can reverse the trend by passing the Railroad4680Safety Act immediately.'' That was Senator Vance, who is now4681our Vice President.4682 Let's pass the legislation and protect my community,4683protect communities like ours all over the country.4684 Mr. Chairman, I yield back.4685 Mr. Webster of Florida. The gentleman yields back.4686 Mr. Fong, you are recognized for 5 minutes.4687 Mr. Fong. Thank you, Mr. Chairman.4688 I wanted to ask a few questions of Mr. Jefferies and Mr.4689Baker.4690 I certainly share your perspective. It was important that4691CARB withdrew their petition to implement an unworkable in-use4692locomotive rule, and I think that is important for our supply4693chain.4694 I did want to ask if there were other State or Federal4695policies that are going to hinder rail operations in California4696specifically.4697 Mr. Jefferies. Well, thank you for the question.4698 And if I could just comment quickly, the 2023 derailment4699rate was significantly lower than 2022, and in the first 104700months of 2024, it was lower than 2023--2.77 incidents per4701million train-miles. That is not good enough; it should be4702zero. But progress continues to be made on that front. And I4703just wanted to make sure the record reflected that.4704 And thank you for your support on CARB's misguided efforts.4705You were a leader in the efforts in calling out the, while4706noble in the pursuit, the complete unrealistic attempt and4707illegal attempt for CARB to do what it did.4708 Look, at the end of the day, California, and CARB in4709particular, they seem to be a model for bureaucratic overreach4710time and time again. And our concern, especially when it is the4711rail industry, if CARB acts and they are allowed to act, that4712is not a State regulation. It is effectively a Federal4713regulation because we are a nationwide, interconnected network.4714 Now, fortunately, that is why the STB, Surface4715Transportation Board, has strong, strong, strong preemption4716authority. And that was the second law that CARB was violating4717trying to regulate this.4718 But I would be happy to sit down with your team and get4719into more specifics on individual regs, but thank you for your4720support on the loco emissions piece.4721 Mr. Fong. Thank you.4722 Mr. Baker. I would say that the CARB rule was so egregious4723and so, kind of, terrifying for the short line industry, about4724essentially threatening to put us out of business, we are,4725again, thrilled that it was withdrawn and appreciate your4726support in particular on helping with that.4727 I do think that Congress would be wise to consider taking a4728look at the Clean Air Act and the authority that is given to4729CARB and changing--at least limiting that in scope so that, at4730least on industries that are clearly meant to be regulated at4731the Federal level, not the State level, like railroads, that we4732can't revisit this nightmare the next time they have an4733administration that might be willing to approve such a waiver.4734 Mr. Fong. Absolutely.4735 Certainly, we all know that rail is a key component of the4736supply chain. That is not only in California but across the4737country. Certainly, that is part of our concern about CARB's4738rule.4739 I did want to ask, how can freight rail infrastructure be4740expanded or optimized to accommodate the increasing demand and4741supply chains and capacity? And, of course, what are the key4742rail corridors in California that can be improved? How can we4743expand rail capacity at the ports to create some coordination4744to reduce congestion and improve the flow of goods?4745 Mr. Jefferies. So one of the common themes we have heard, I4746think, is, through sensible permitting reform, to let dollars4747get put to work more quickly in a more efficient way. And that4748is really just about setting timelines, recognizing what should4749be preexisting categorical exclusions, and avoiding unnecessary4750costs through inflationary delay.4751 In our ports, we have seen significant efforts to increase4752information-sharing among the supply-chain stakeholders. That4753is key.4754 The Barstow Intermodal Gateway in southern California, a4755massive investment occurring. Getting that approved so it can4756be built quickly. Get those containers out of the southern4757California basin quickly, let them be built into trains and4758dispersed throughout the country out in a big, open space--key.4759There are other massive projects like that.4760 And, really, the Surface Transportation Board, who I4761mentioned before, exercising its permitting--or, excuse me, its4762preemption authority over both rail projects and our customers'4763projects.4764 Mr. Fong. Mr. Baker.4765 Mr. Baker. I would add, again, at the risk of harping on4766it, the CRISI Program is extraordinarily effective at investing4767in short line infrastructure, including in California. The4768Sierra Northern recently received one for building out a big4769rail loading yard.4770 And so further support of programs like that and having it4771move faster, I think, will accomplish exactly what you are4772looking for.4773 Mr. Fong. I appreciate that.4774 I think my time is running out, but I appreciate the work4775that is being done in the rail industry to move our products4776and our goods across the country and get them from the ports4777and to our homes and businesses and farms.4778 So thank you, and I yield back.4779 Mr. Webster of Florida. The gentleman yields back.4780 Mr. Garcia, you are recognized for 5 minutes.4781 Mr. Garcia of Illinois. Thank you, Mr. Chairman and Ranking4782Member, to our witnesses here today.4783 I represent Chicago, the Nation's busiest freight hub. One4784of every four U.S. freight trains passes through Chicago. That4785is about 500 freight trains and 800 passenger and commuter4786trains every day.4787 I was glad to see that the Chicago Region Environmental and4788Transportation Efficiency Program, better known as CREATE,4789received two important grants from U.S. DOT. Nearly $3004790million will go to improvements on a 3-mile elevated rail4791corridor on Chicago's South Side, and another $43 million will4792be invested in building a grade separation along 65th Street4793and Harlem Avenue, across the street from my district.4794 Together, this funding will help relieve congestion along4795Chicago's rail network, improve supply-chain efficiency, and4796make communities safer as well. This is made possible through4797the collaboration between public sector and Class I railroads.4798 Mr. Jefferies, can you speak about how important programs4799like CREATE are for our national rail and freight network?4800 Mr. Jefferies. Well, thank you for that question. And it4801was great to see you at the event in December on the South Side4802of Chicago.4803 It is critically important, and CREATE is the model program4804for the rest of the country. And we often get approached from4805other communities of, ``Hey, we want to do a CREATE,'' and we4806explain the commitment from not only the freight railroads but4807the commuter railroads, Amtrak, the city, the county, the4808State, the U.S. DOT, and how we have all worked together to4809identify a discrete set of very large projects that different4810parties benefit from at different times but everyone has skin4811in the game, everyone has maintained the commitment. Absolutely4812critically important. And we are thrilled with the outcome of4813last fall's awards.4814 And I will just give you a quick example. Our leader of4815CREATE in Chicago was invited to southern California to talk4816about the CREATE program. And he said it dawned on him that the4817close to 100 officials who were there representing local4818governments, it was probably the first time they had been in a4819room together. And so the amount of coordination in Chicagoland4820is to be applauded and something we are very proud of.4821 Mr. Garcia of Illinois. Yes. Let's keep it going, by all4822means.4823 Mr. Cassity, changing gears, I appreciate you mentioning4824high-speed rail in your testimony.4825 Thousands of miles of railroad tracks crisscross Chicago,4826making rail essential to supporting a robust economy in the4827Midwest. It supports thousands of good-paying union jobs. It4828connects small towns to big cities. It connects people to4829schools and jobs and connects businesses to commodities as4830well.4831 That is why high-speed rail is an exciting prospect for the4832Midwest. Not only would it spur economic development, it would4833lower carbon emissions and create thousands of good jobs. A4834commission in Illinois is currently studying the Chicago-to-St.4835Louis route and will produce a statewide plan.4836 Can you address how transformational a high-speed rail4837system in the Midwest would be? And what role can the Federal4838Government play to support development plans for high-speed4839rail?4840 Mr. Cassity. Sure. Thank you for the question.4841 High-speed rail would be absolutely transformational for4842the rail industry and for all the reasons that you addressed. I4843mean, the efficiency and the effectiveness and the benefits for4844the American public are exponential and hard to be quantified4845in such a short statement like this.4846 But for the rail workers as well, to know that we would4847have the opportunity to see the economy and the infrastructure4848grow is something that we haven't seen for a long time.4849 That is why Brightline West is so encouraging. Because the4850more we look at transportation in our country, the more we4851recognize that the highway system isn't doing what it is4852supposed to be doing anymore, that it is too crowded, that it4853is not efficient the way it should be. High-speed rail gives us4854the opportunity to alleviate a lot of those pressures.4855 But we need the Government's help to encourage those4856construction projects, we need the Government's help to fund4857those projects, and we need the Government's buy-in on the rail4858industry to make sure that we are expanding that.4859 Kind of like what has been talked about already this4860morning, is that, for whatever reason--and I know Mr. Jefferies4861talked about ``this isn't your granddad's railroad,'' but the4862public view, when they see the railroad system, we have been in4863the background for so long that they don't view it as the next4864step. For some reason, aviation gets this ``whatever'' put on4865it to make it seem as though that is the ultimate future. But4866the ultimate future doesn't have to be there. We have4867opportunities in the rail space to take people where they are4868not easily able to go: smaller routes, longer routes, faster4869routes.4870 High-speed rail is absolutely critical in development for4871our country. And we just need the Government's buy-in and we4872need financial support and support across the board.4873 Mr. Garcia of Illinois. Thank you, sir.4874 Mr. Chair, I yield back.4875 Mr. Webster of Florida. The gentleman yields back.4876 Mr. Begich, you are recognized for 5 minutes.4877 Mr. Begich. Thank you, Mr. Chair.4878 My first question is to Mr. Baker.4879 So, Mr. Baker, you noted in your testimony that 100 percent4880of Alaska's rail is short line rail. Alaskans have long sought4881a rail connection that would tie Alaska to the rest of the4882North American rail network. In your view, what steps should we4883consider to support such a connection?4884 Mr. Baker. That is a fabulous question. I mean, the current4885route of connecting is quite elaborate and involves ferries and4886is not, sort of, realistic for where I think you would like to4887take the State and the country.4888 A project like that is really--is really a Mega grant. And4889so I think it would be important for Congress to continue grant4890programs like INFRA and RAISE and Mega that really contemplate4891some of these maybe not quite moonshot but big-deal4892infrastructure programs.4893 There are a lot of short line projects, including some on4894the existing Alaska Railroad infrastructure, where $5 million4895or $10 million or $20 million can really move the dial. And we4896do a lot of those, and we are very proud of that.4897 A project like you are talking about is, sort of,4898exponentially more than that. And I do think that the country4899and the people of the country have appetite for that sort of4900thing. And the project you are talking about is a great4901example. I would be thrilled to support it.4902 Mr. Begich. Thank you.4903 This is a question for Mr. Jefferies.4904 Mr. Jefferies, in your testimony, you mentioned that, in4905real terms, inflation-adjusted real terms, costs of moving4906freight on rail have declined by 42 percent since 1980.4907 Do you have any information--and, if not, could you at some4908future time provide this committee with information--on what4909has happened to the cost of new rail construction over that4910same period of time? Has that also trended down or has that4911gone up in real terms?4912 Mr. Jefferies. I wish. Unfortunately, no, it hasn't, due to4913cost of materials, due to inflationary pressures, as every4914other industry has seen.4915 And if I could be so bold, I would expect my colleague, Mr.4916Daloisio, can comment on it a little more sophisticatedly than4917I might be able to.4918 Mr. Daloisio. No, definitely. Thank you, Congressman. Thank4919you, Ian.4920 So material pricing has gone up, labor pricing has gone up,4921equipment pricing--everything has gone up almost exponentially.4922 And we talked earlier about the grant time process, about4923these grants. So, a lot of times, contractors and our4924consulting engineer members are involved in the initial stages4925of putting together budget pricing for some of these grants,4926and we do that with good faith, hoping that they are going to4927escalate maybe a year out, and then we get a call 3 years later4928that, hey, the grant got approved and the price now is one-4929third of what it should be.4930 So, yes, to answer your question, everything is--we see4931that continually going up.4932 Mr. Begich. Then this is a question for anyone who might4933have an answer to it. Do you have any suggestions on how we can4934drive down the cost of new rail construction?4935 Mr. Jefferies. Not to hit on the same theme, but I would4936say, getting projects approved more quickly to allow the money4937to be put in the ground more quickly. Not to circumvent any4938appropriate reviews, but let's just put some certainty into the4939process so that the money you have now is used and you don't4940need twice as much 10 years from now when the project is4941approved.4942 Mr. Daloisio. Just to chime in there, so I think, with new4943technologies, especially on the contracting side, whether it is4944new tools, new equipment that is helping us be more efficient4945and be able to build track faster, I mean, that definitely is a4946way to lower the costs.4947 Mr. Begich. Very good.4948 And does anyone here today know how the Tier 1 network was4949originally financed? Was it Government grants? Was it private4950money?4951 Mr. Jefferies. The ultimate public-private partnership.4952 Mr. Begich. Okay.4953 I think it is fantastic that we are hearing about high-4954speed rail, rail that goes 200 miles an hour. It is great for4955passengers. There is a lot of innovation on the freight side.4956 Let's connect Alaska to the North American rail network so4957that we can be a part of this same success story.4958 Thank you, and I yield back.4959 Mr. Webster of Florida. The gentleman yields back.4960 Mr. Cohen, you are recognized.4961 Mr. Cohen. Thank you. Thank you.4962 The Infrastructure Investment and Jobs Act, also known as4963the IIJA, also known as the bipartisan infrastructure bill,4964also known as the Biden infrastructure bill--I would prefer to4965call it the Biden-Cohen bill--has provided an unprecedented4966opportunity to modernize our rail system, strengthen our4967economy, and improve connectivity for millions of Americans.4968 One program I would like to highlight is the Corridor4969Identification and Development, also known as the Corridor ID4970Program, which has awarded $500,000 to study the feasibility of4971a passenger rail corridor connecting Memphis to Nashville and4972then on to Chattanooga and to Atlanta.4973 This Sunbelt-Atlantic Connector will connect major4974population centers, fostering economic growth and reducing4975traffic congestion in our region. Tennesseeans and Georgians4976alike are eager for the eventual completion of this project. I4977am hopeful it can move to the next phase expeditiously.4978 I also remain committed to enhancing the passenger4979experience on Amtrak. Mr. Garcia didn't mention the Amtrak4980service that goes through Memphis into New Orleans. When I was4981a kid, I rode the Panama Limited and the City of New Orleans,4982and we went up to Chicago quite a few times, and down to New4983Orleans as well.4984 We had great food on some of those, particularly the Panama4985Limited. They had the best service, a Pullman train. But they4986had big, thick steaks and big, thick French toast, and they4987don't have that anymore.4988 So I have introduced two bills, the Train FOOD Act and the4989Train EATS Act, which aim to restore and improve onboard dining4990services on long-distance routes. I think it would improve the4991experience and the ridership.4992 When reauthorizing surface transportation programs for4993Amtrak, we must not neglect the passenger experience. Quality4994dining service is essential to attracting and retaining riders4995and making rail travel an enjoyable alternative to driving or4996flying.4997 Finally, I want to address a pressing issue in America and4998in Memphis: cargo theft. Unfortunately, sadly, Memphis, which4999has a large logistics hub in cargo, has seen cargo theft spike5000alarmingly in recent years, posing threats to businesses and5001supply chains. Addressing this problem is not just a local5002concern; it is a national concern.5003 And I believe Mr. Jefferies, but even more so Mr. Baker,5004discussed trucks and your competition with trucks. Obviously,5005you don't like trucks. Trucks have 80 percent of the cargo5006theft, so you like that.5007 But it is a great problem in Memphis. We are trying to deal5008with it, and we need more solutions.5009 Mr. Jefferies, the FBI has developed a task force composed5010of members of the U.S. Marshals Service, Memphis Police, and5011Shelby County Sheriff's Office. What additional areas of5012collaboration could be established between freight railroads,5013law enforcement, and other stakeholders to enhance preemptive5014measures and effectively combat cargo theft on trains?5015 Mr. Jefferies. Well, thank you for highlighting that. And5016that is a priority of ours, is making headway, because not only5017is it an issue in Memphis, it is an issue across several parts5018of the country and, frankly, the epitome of interstate crime.5019It is a Federal issue that we need Federal attention to.5020 And one of the most frustrating things we have seen is that5021arrests are made and prosecutions don't occur. And that is why5022we are advocating, and hopefully this task force will draw some5023attention to getting some resources behind prosecutions and5024putting folks behind bars and moving up the chain. Because this5025is absolutely an organized effort, a sophisticated effort. And5026railroads are investing on their own to increase deterrence,5027increase monitoring and vigilance, but it is going to take5028everybody working together, because the problem is not going5029away.5030 And we will look forward to partnering with you on this.5031 Mr. Cohen. Thank you. I know, in the 1880s, when Jesse and5032Frank were doing their job on the trains, the trains jumped5033into it and hired the Pinkertons. So you need to get the 21st-5034century Pinkertons on this.5035 Mr. Baker. And if I may, Congressman, we certainly view5036trucks as our big competitors, but we would absolutely view--we5037are on the same page as them on cargo theft issues. We would5038not wish theft on even our harshest competitors.5039 Mr. Cohen. But if you had a choice.5040 Mr. Baker. Please stay away from the trains. Yes.5041 Mr. Cohen. Right.5042 Mr. Jefferies, this corridor I talked about, Memphis on to5043Atlanta, could do a lot to improve congestion and the5044environment as well, reducing emissions.5045 How can freight railroad partners work with passenger rail5046projects to advance these climate goals and equitable5047development?5048 Mr. Jefferies. So, when we have seen these projects work5049well, of which there are numerous examples around the country,5050all stakeholders get together at the front end and sit down and5051talk about desired outcomes--and so that is the municipality,5052that is the State, that is the passenger entity, that is the5053affected freight railroad--and talk about, okay, what do we5054want to achieve, what capacity is necessary, what investment is5055necessary to ensure that capacity, and who is going to pay for5056it?5057 And so----5058 Mr. Cohen [interrupting]. I have 4 seconds, and I wanted to5059ask Mr. Cassity something.5060 You talked about the ultimate future and where we should5061look at transportation. Elon says it is Mars. Should we be5062putting all of that money into planting a flag on Mars, or5063should we maybe do it somewhere like Memphis?5064 Mr. Cassity. Thank you for the question.5065 I mean, I am intrigued by the thought of going to Mars, but5066the reality is, when we are talking about investments and5067taxpayer money, the investment is here in the country. And the5068biggest benefit is moving them to where they need to go, safely5069and efficiently.5070 And there is no better opportunity than the railroad5071system. And high-speed rail, in my opinion, is the greatest5072opportunity for funding to do something meaningful for the5073people of America, to make an impact on the economy and the5074infrastructure as a whole.5075 Mr. Cohen. Thank you. Unless you are Ralph Kramden's wife,5076you are not going to the Moon.5077 I yield back the balance of my time.5078 Mr. Webster of Florida. The gentleman yields.5079 Mr. Kennedy, you are recognized for 5 minutes.5080 Dr. Kennedy of Utah. Thank you, Chair Webster and Ranking5081Member Titus. I appreciate you convening this committee.5082 And thanks to the witnesses. You have been here for a5083while, and I appreciate your willingness to elucidate these5084important issues.5085 Uinta Basin Railway is an important project in Utah's Third5086District, and my district is home to the Uinta Basin, with its5087major oil fields. There are several crude-by-rail projects in5088the works in my district, and that is one of them. And it is an5089opportunity for us to reduce truck traffic on dangerous roads--5090these are mountain roads with terrible weather sometimes--and5091move that crude oil out of the basin and move goods into the5092basin.5093 So, with that in mind, Mr. Baker, I was interested in your5094take on this. What are some of the major regulatory issues that5095face the railroad industry generally as it relates to American5096energy? And what steps can we take to enhance energy dominance5097in the United States of America, in Utah and my congressional5098district specifically?5099 Mr. Baker. The Uinta Basin project is very exciting. It5100would be served by a short line railroad which would then5101connect to Union Pacific and connect it to the world.5102 There was a big regulatory threat to that particular5103project. As you know, the Surface Transportation Board approved5104it with its environmental analysis. It was an extremely5105exhaustive and, I thought, impressive analysis. And then a5106court overturned it and said that they didn't properly consider5107essentially the downstream effects of how the oil would be5108used, which is--Ian referenced a similar issue earlier today.5109 That was just reargued in front of the Supreme Court, and I5110think the outcome is heading in a direction that makes sense,5111where the reviews will now be limited--and this is to answer5112your question. The important outcome is that reviews be limited5113to the actual project, rather than sort of a holistic view of5114how every commodity is going to be used. Because, if we do5115that, then we will never build anything.5116 And there are, frankly, not a lot of brandnew rail lines5117that get built in this country. The Uinta Basin one is an5118exciting one. I am sure Mr. Daloisio's members would be very5119excited to get to work building it. And we are excited to get5120to work moving it. And the folks in Uinta Basin are excited to5121get to work selling it.5122 And, probably most importantly, this stuff already moves,5123like you said, on trucks on dangerous mountain roads. Moving it5124by rail is a better outcome for literally everybody.5125 Dr. Kennedy of Utah. Thank you.5126 And, with that, Mr. Daloisio, would you tell us what that5127would mean, if you were able to participate--you and those that5128you represent were able to participate in building that5129railway?5130 Mr. Daloisio. Thank you, Congressman. I am sorry. Could you5131please repeat that?5132 Dr. Kennedy of Utah. What would that mean to you, if we5133could--you and your industry--if we could actually start to5134build that railway that we are seeking to build there in my5135district?5136 Mr. Daloisio. Thank you.5137 Well, it means a lot. I mean, our member companies are5138all--a lot of them are small, family-owned companies. A lot of5139them are larger companies. But to get those funds to be able to5140give those projects and get involved--I mean, all that money5141that is spent to get those companies out there, get the5142workforce on the ground, get their equipment on the ground,5143start laying material, that all trickles down to feed their5144families. I mean, it is so vital.5145 I mean, we have so many members all across this country5146that are just itching to build more track. We just need help to5147be able to do that and do it safely and start to get those5148trains on them and get them moving.5149 Dr. Kennedy of Utah. Well, we are itching to help you5150accomplish that goal, because it would be outstanding for us.5151 Mr. Jefferies, I had a question for you along these lines.5152Efforts to cut redtape associated with these infrastructure5153projects' approval and construction have been successful in5154recent years, but what more can still be done to fast-track5155routine maintenance and replacement construction projects5156without ignoring environmental or historical preservation5157concerns?5158 Mr. Jefferies. Thank you for the question.5159 So, two things.5160 One--and Congress has already told the Advisory Council on5161Historic Preservation to do this--provide the same categorical5162exclusions to replacement of historic assets as you do5163highways. Again, Congress has spoken twice on this. The5164independent agency has not yet acted. So maybe the third time's5165the charm.5166 And then you kind of gave me the answer with your question.5167For routine maintenance, routine replacement, again,5168categorical exclusions that limit the actual construction,5169versus that which flows over it, versus other extraneous5170activities.5171 Dr. Kennedy of Utah. Thank you for those responses.5172 And, once again, thank you, all of you, for being here with5173us.5174 And, Mr. Chair, I yield back.5175 Mr. Webster of Florida. The gentleman yields back.5176 Mr. Johnson, you are recognized for 5 minutes.5177 Mr. Johnson of Georgia. Thank you, Mr. Chairman, and thank5178you, Madam Ranking Member, for hosting this critical hearing5179today.5180 And thank you to the witnesses for your time and for your5181testimony.5182 The United States leads the world with the most extensive5183rail transport network, spanning approximately 160,000 miles.5184Many of our communities, especially in regions like my home5185State of Georgia, started with a railroad stop. Entire towns5186were built around these vital pieces of infrastructure because5187we understand their importance. Yet, today, it operates without5188consistent long-term funding required to maintain and expand5189this essential infrastructure.5190 As we all know, climate change is one of the greatest5191challenges of our time, and rail emerges as a transformative5192solution. Our system provides the safest, most energy-efficient5193and environmentally sustainable mode of transportation. By5194alleviating traffic congestion and reducing reliance on fossil5195fuels, rail plays a vital role in creating a cleaner future.5196Its ability to reduce greenhouse gas emissions far surpasses5197road and air transport.5198 Without the security of long-term funding, however, it is a5199challenge to build on the progress achieved from long ago and5200through President Biden's Bipartisan Infrastructure Law.5201 Mr. Cassity, expanding and modernizing our rail network to5202reach more communities with improved service means creating5203good-paying jobs, fostering domestic manufacturing, and5204ensuring our infrastructure meets the demands of the 21st5205century.5206 This effort requires significant investments in projects5207all across the country, with funding such as the $52.79 billion5208allocated by the Federal Railroad Administration for 594 safety5209rail improvement projects.5210 Can you explain what it would mean for communities if5211Federal funding like this was not available?5212 Mr. Cassity. Sure. Thank you for the question, Congressman.5213 I knew at one point I was going to get some sort of5214economical question, and I want to remind everybody, I am a5215locomotive engineer. So I am going to take my biggest swing5216here.5217 But railroading is an industry worth investing in. We are5218absolutely critical to moving forward with everything that we5219do, whether it is passenger or freight. There was discussion5220about the Uinta Basin. We, as laborers, support the notion that5221there is no safer or better way to move commodities on the5222planet Earth than through our rail system.5223 And so everything that we depend on in our day-to-day5224lives--food in the stores, the technology in Best Buy or5225wherever else you may go--odds are that has touched a train at5226some point. And so, if we don't fund the railroad5227systematically, we stand to lose a lot of the benefits we have5228in our daily lives.5229 And on the flip side of that, we also stand the opportunity5230to not have the safest work environment that we should have.5231Funding allows us to do all of the right things and to expand5232in a world where we need expansion so that we can make things5233easier to get to so that we can have products more readily5234available and, hopefully, frankly, cheaper to buy.5235 Mr. Johnson of Georgia. And you create more economic5236development----5237 Mr. Cassity [interrupting]. You create more----5238 Mr. Johnson of Georgia [continuing]. And more jobs.5239 Mr. Cassity. Absolutely. You create more jobs. You have5240more workers. You have more good-paying jobs. And, in turn, it5241recycles, and all of the good benefits of that pay out to5242everybody.5243 Mr. Johnson of Georgia. Well, thank you.5244 It has been said at this hearing, Mr. Cassity, that the5245number of derailments has gone down over the last few years.5246But, according to the Federal Railroad Administration data, the5247number of derailments has increased year over year in 2021,52482022, and 2023.5249 Mr. Cassity, as Congress and the new administration prepare5250for the new surface transportation bill, what key protections5251should be prioritized to enhance rail safety for workers and5252passengers?5253 Mr. Cassity. Sure. There is a lot. And, basically, I will5254start with the Railroad Safety Enhancement Act that Congressman5255Nehls introduced last year. It hit a lot of those priorities5256that we need to do to make sure that safety is heading down the5257right path.5258 The data in this industry obviously can be interpreted5259differently. Clearly, Mr. Jefferies and myself are of different5260opinions on where we are at with the derailment rate or5261frequency in this country. But we need to take a real look at5262what is going on and not accept that we are increasing or we5263are running flat. We are not doing enough to stop these5264accidents.5265 To Ranking Member Titus' point earlier, our organization5266personally went on nine investigations with the National5267Transportation Safety Board. All of those are indicative of the5268fact that we need to do more with safety in the rail space. We5269need to take a look at the crew staffing, we need to take a5270look at long trains, we need to take a look at technology, we5271need to take a look at detectors.5272 We need to do a lot of things to make sure the innovation5273is welcome in the industry but it is done so in a way that5274others have the ability to make an input that is in the5275interest of all stakeholders, but then we put the proper5276guidelines where we need to to ensure that minimum level of5277safety, but allow them to do the development they need to do in5278the interest of workers, in the interest of public.5279 But we can collaborate on that. We have to collaborate on5280that. And I do think that is our challenge going forward.5281 Mr. Johnson of Georgia. Thank you.5282 And I appreciate the grace of the chair. And I yield back.5283 Mr. Webster of Florida. The gentleman yields back.5284 Mr. Stauber, you are recognized for 5 minutes.5285 Mr. Stauber. Thank you, Mr. Chair.5286 Mr. Cassity, I have to correct you. You said you are just a5287railroad engineer. No, you are more than that. You are an5288expert. That is why you are here today. That is why you are5289sharing your vision of a safer, more reliable railroad.5290 So please accept my correction. You are more than just a5291railroad engineer. And we appreciate you all.5292 Mr. Jefferies, I had some comments here prepared. You5293talked about some very important things on NEPA reforms and5294railroad construction and fixing.5295 Why do you have to wait 7 to 9, 11 years for the Government5296to put forth their okay for you to move forward with5297construction? That is all money and all time that is5298unnecessary.5299 And so I am going to encourage you, as this next Congress5300gets going, we are going to look at NEPA reviews.5301 And you said something that I totally agree with. We are5302not cutting corners. We are going to keep the same5303environmental standards, same labor standards on these5304projects. We care about the environment, too.5305 And so I think you all can have a strong voice in those5306reviews. So please be present, and we may ask you to be a5307witness and such.5308 And I will go to the mining issue for just one moment. It5309takes on average 29 years to open a mine in the United States5310of America. Canada and Australia and others, 2 to 3 years.5311 Come on, we can do better than that. And I ask for your5312professional voices during that time.5313 You also talked about prosecutions and arrests. So being a5314former law enforcement officer, that is one of the things that5315frustrated me the most, and it still frustrates the American5316law enforcement community.5317 You could have your railroad police arrest these organized5318criminals and they get a slap on the hand, even if that. And5319they are out the next night doing the same thing to your5320railcars, stealing the products off there. And so if we don't5321have prosecutions, it is going to continue and continue and5322continue.5323 I hope and I trust that this new administration, they are5324going to crack down on rail thefts, because it is getting big5325and you all know that. I mean, you are adding more railroad5326police, et cetera.5327 But I want to stand with you on the prosecutions, because5328when we don't prosecute that, guess who pays more for the end5329product? We, the American people. And so I am absolutely with5330you on that.5331 I want to say something that I think is really important.5332 So I came from the county government in St. Louis County in5333northern Minnesota. So when we had issues with railroad5334crossing or safety, the community and the rail professionals5335always were there to help us out, to make sure that that5336crossing was the safest it can be.5337 I want to just tell you that I understand safety is your5338first, second, and third priority, not only for the public, but5339for the passengers, et cetera. So I have been on this committee5340since day one and we are all almost on the same page. And when5341we do that, we can move mountains.5342 And I think that as we continue in this Congress, let's5343have that discussion, because I think rail is a huge part of5344our mode of transportation, amongst others. I mean, we have5345room for the aviation community, certainly aviation. We have5346room for using our ships and ports, et cetera. Certainly we can5347do that.5348 I would be remiss if I didn't say that Duluth, Minnesota,5349has the most inland port in the country.5350 With that being said, so we also, when we look at passenger5351safety, crew safety, et cetera, we are also, I think, where we5352can up it a little bit is training for our first responders5353across the Nation. Because if there is an incident, it is5354oftentimes in the rural communities where those first5355responders are the first ones there.5356 We have to really get really good at notifying and5357preparing and training for our rural first responders, and that5358includes our Native American communities, because we are going5359through a lot of Tribal lands too. We need to make sure that we5360prepare them so that in case there is an incident, that we are5361well prepared and that we can reduce the harm.5362 And so I, for a legislator like me, I am looking for all of5363you for that expertise, advice, so when we talk about rail5364safety, when we need to put legislation, that you are at the5365table.5366 I really appreciate the expertise in this panel, and thank5367you for your time for coming this afternoon.5368 And, Mr. Chair, I yield back.5369 Mr. Webster of Florida. The gentleman yields back.5370 Mr. Ryan, you are recognized for 5 minutes.5371 Mr. Ryan. Thank you, Mr. Chairman. I am excited to join5372this subcommittee for the first time.5373 And thank you to the ranking member as well.5374 Thank you to our witnesses for now many hours of your time5375this morning.5376 I proudly represent the Hudson Valley region, which is5377north of New York City, a significant amount of railroad5378traffic, both of freight and passenger, including 123 miles of5379CSX-run freight on the west side of the Hudson River.5380 Many areas and crossings specifically in my district, as5381has been discussed, desperately need safety enhancements and5382investment and redesigns, from traffic signal upgrades to5383prevent congestion backups, roadway redesigns, and enhanced5384warning systems, even basic signage, which we are lacking at5385many of these crossings.5386 For example, the town of Saugerties in my district, which5387is an entirely ungated crossing, lacks any warning lights. And5388in 2017, a constituent, riding in a taxi, was killed when her5389taxi driver missed a stop sign and drove right into the path of5390an oncoming train. A simple fix like warning signage would have5391helped avoid this tragic incident.5392 CSX operates, as I said, trains throughout many densely5393populated urban areas in my district, including the city of5394Kingston, my hometown, which has 35, on average, freight trains5395a day running through the heart of a pretty busy city, carrying5396a lot of things, but including waste, petroleum, industrial5397chemicals, and other potentially harmful substances.5398 We greatly appreciate the role CSX plays in our economy, as5399has been discussed here, but it has been a repeated point of5400challenge--I was also in county government, like my colleague5401said--to get cooperation from CSX to really work with us on5402that.5403 So I will continue to focus on that. In fact, in the town5404of Ulster last year a constituent of mine was struck and killed5405by a CSX train due to a lack of any pedestrian crossing5406signage.5407 So I want to work in good faith, in a bipartisan way, to5408figure out how to address things like this.5409 In an encouraging sign, and you mentioned this in your5410testimony, Mr. Jefferies, your written testimony, the city of5411Port Jervis, also in my district, just received one of the5412Railroad Crossing Elimination, RCE, Grants thanks to funding5413from the bipartisan infrastructure legislation.5414 This was another very problematic intersection where a few5415years ago someone was struck and killed, and this funding will5416be a game changer to help address that.5417 So my first question is to you, Mr. Jefferies, just to ask5418on that point of the RCE grants and other similar grants. Can5419you talk about the value of that? And I would ask your help to5420work at a local, tactical level in a constructive way to speed5421up all of these.5422 Mr. Jefferies. Absolutely. Thank you for the question.5423 So pedestrian and motor vehicle accidents at crossings are5424the toughest safety challenge we continue to face. We have seen5425dramatic decreases in every other type of accident. And so that5426starts, first of all, with every opportunity eliminating the5427crossing.5428 And so with the grant you referred to, that is huge. And5429while we wish we had endless sources of funds to separate all5430high-impact crossings, that the reality is we don't.5431 And so, secondary, we have got to have the best safety5432equipment there, warning devices, through the Section 1305433Program. Driver education, public education through partners5434such as Operation Lifesaver, who, if you haven't done any work5435with them, would certainly love to get you involved with that.5436Making the public aware when you see tracks, think trains. It5437is a commonsense statement, but not something that is always5438reality.5439 And I would love to work with you and your office to5440continue, one, to prioritize the two programs I mentioned, and,5441two, look for ways to further educate the public and get that5442out there, because it is an immensely avoidable tragedy that5443happens too often and something that we are invested in making5444further progress on.5445 Mr. Ryan. I appreciate that. And I think as we enter this5446new administration and the new moment we are in, I think it is5447very important to note grants like the RCE grants and other5448lifesaving funding in the Bipartisan Infrastructure Law should5449not be politicized.5450 And I hope--and many of you said this in both your spoken5451testimony and written--that we can at least agree that5452maintaining, if not bolstering funding to those programs5453benefits everyone, including the industry, so that they are not5454having to invest fully on their own in that regard.5455 I am an Irish Catholic. I am going to do the best with your5456name, sir. I know. I apologize. Mr. Daloisio.5457 Mr. Daloisio. No, that was pretty good.5458 Mr. Ryan. All right, all right. I apologize.5459 In terms of your membership and yourself and your5460experience, what are the challenges that you all have faced in5461actually installing and driving through projects? Say we have5462funding, how do we drive through--oh, I am sorry, I apologize.5463I got too excited.5464 I am going to have to yield back, and would love to follow5465up with all of you on followup questions.5466 Mr. Daloisio. I appreciate that, and please feel free.5467Afterwards I will give you my information. I am happy to talk5468to you. We are actually neighbors. I live in northern New5469Jersey, so I am not far from you.5470 Mr. Ryan. I am sorry to hear you are from New Jersey.5471 Mr. Daloisio. Yes, I know.5472 Mr. Ryan. Thank you.5473 Mr. Webster of Florida. The gentleman yields back.5474 Mr. Mann, you are recognized.5475 Mr. Mann. Thank you, Mr. Chairman.5476 A lot different from New Jersey, I am from Kansas. But New5477Jersey, Kansas, California all rely on rail. And I appreciate5478you all and what you do.5479 In my State, we have 4,600 miles of rail track. It runs the5480gamut. My district is the western two-thirds of Kansas, except5481for the counties around Wichita. And so we need good rail5482networks, Class I's and short line, to get our ag products out5483of fields, out of packing plants, and to the mouths that are5484going to feed them. So I appreciate you all and what you do.5485 As you all know, this committee is beginning to work on the5486next surface transportation reauthorization, which is a big5487thing that we are going to focus on this year.5488 A pretty high-level question, but for you, Mr. Jefferies.5489Can you highlight the areas that you think we should be5490targeting for improvements to ensure that goods, people, or ag5491products are moved safe and in an efficient manner? How would5492you like--there are going to be limited resources, but in your5493view, how should we be targeting those funds?5494 Mr. Jefferies. So I would say there are a few different5495things.5496 One is maintaining these grant programs that do have such5497strong bipartisan support in allowing our public partners and5498our short lines to receive those funds on a merit-based basis5499to invest to create and expand capacity to serve customers like5500all the good folks in your community.5501 Two, I would say you can make those programs run better,5502either by Congress or the administration, by getting dollars5503out the door more quickly. We talked about delays. By5504permitting reforms, allowing projects and money to be put to5505work more quickly.5506 And then, on the operational side, creating a more5507outcomes-based regulatory environment. And I know there are5508differing views on this, but I think there is a lot of common5509ground about how do we achieve the best safety outcome in a way5510that allows for innovation, frees up the network, allows goods5511to continue to move, takes people out of risky situations.5512 And at the end of the day, promoting American5513competitiveness in a way that encourages investment, encourages5514goods to move, encourages products to move out of your State to5515other States and to other countries, at the end of the day.5516 So we are not looking for funds primarily, but the Highway5517Trust Fund sure is, and that needs to be fixed in a dramatic5518way.5519 Mr. Mann. That is right. Yes. Our whole transportation5520network, as we know it, is interconnected, which is important5521to this committee.5522 Next question is for you, Mr. Baker.5523 Kansas is served by 14 short line and regional railroads.5524We have 2,000 miles of track. Short lines play a vital role in5525the network.5526 In your opinion, what are the biggest barriers that our5527short line operators are facing right now?5528 Mr. Baker. The biggest barrier short lines face is a lack5529of funds. And it goes back to the origin story. The reason5530there are so many short line railroads in Kansas is, if you go5531back a couple of generations, those were the unprofitable,5532unloved, kind of marginal branch lines of larger railroads.5533 Luckily, rather than being abandoned, they got sold to5534short lines. And those folks are hustling, scrapping, knocking5535on every door, working every day to try to keep those railroads5536in existence and let them survive and thrive.5537 And it is largely working, but we need help. We are not,5538like the Class I's, totally self-sufficient. We are not too5539proud to say we do need Congress' help. Blessedly, Congress has5540long been very supportive of short lines, particularly folks5541from Kansas. Now-Senator Moran has been a longtime, very5542aggressive supporter of short lines, and you have been, too.5543 The CRISI Program, again, is the single most important5544program under this committee's jurisdiction that really matters5545to short lines. The Nebraska, Kansas, and Colorado Railway, the5546South Kansas and Oklahoma Railroad, they have both benefited5547from CRISI grants and short lines. And there is more to come,5548as long as we can keep that program going.5549 Mr. Mann. Yes, which is incredibly important to support5550because when short lines don't function well, we can't get our5551ag products to the mouths that feed it. And it is going to5552cause food inflation because you can't move these fields. You5553can move the products if they grow and that matters.5554 I think about our family's farm 130 years ago. If you go5555back on the abstracts, our homeplace used to be owned by the5556railroad, that the Federal Government gave it to the railroad.5557 We and many other people settling Kansas purchased that,5558and that is what the railroad used to continue to fund,5559building more track. And so literally, the railroads were5560instrumental in us building western Kansas, building the5561Midwest, really the western part of this country. So we need to5562keep supporting you guys.5563 Thanks for being here. I appreciate we are having this5564hearing.5565 And I yield back the balance of my time. Thanks.5566 Mr. Webster of Florida. The gentleman yields back.5567 Mrs. Sykes, you are recognized for 5 minutes.5568 Mrs. Sykes. Thank you, Mr. Chair. And thank you, as well as5569the ranking member, for holding this hearing today, kicking us5570off for this rail subcommittee hearing.5571 As you all know, on February 3, 2023, a Norfolk Southern5572train carrying hazardous materials derailed in East Palestine,5573Ohio. To prevent a potential explosion, a controlled burn was5574also ignited, spewing these chemicals into the air and sparking5575health concerns for Ohioans and Pennsylvanians alike.5576 What occurred in the 2 years following, no one should have5577had to deal with the horror and the fallout of such a5578disastrous derailment, which has impacted this community and5579continues to impact this community.5580 So one of the things that I did after being a Member of5581Congress for less than a month was introduce a bill with my5582colleagues, a bipartisan bill from Democrats and Republicans in5583Ohio, the RAIL Act, which was a piece of legislation to address5584the needs of the community.5585 And we heard from folks in East Palestine, Ohio, we heard5586from labor unions, we heard from stakeholders. And we put this5587bill together, hoping that we could address the issue of rail5588safety.5589 And one of those provisions specifically came from our5590Governor, Mike DeWine, which was around the temperature5591threshold requirements for safety placards, because what we5592found in the subsequent report was the first responders went5593looking for the placards, but they had melted, and they had no5594idea what they were dealing with.5595 And I bring that up because the work that many of us have5596done, you heard from my colleague from Pennsylvania, our5597colleague from Texas, who have been trying to figure out a5598solution to this issue, yet we have no solution to this issue.5599And people in East Palestine are still wondering why Congress5600refused to act.5601 We heard a lot of criticism of the former President not5602showing up. The current President did show up. We still have no5603legislation that addresses the needs of the people, not only in5604East Palestine, Ohio, but all across the country who have been5605subjected to train derailments and had their lives turned5606upside down.5607 And I will briefly share a story, because I was speaking to5608a law school class earlier this week and they were asking me5609about the RAIL Act. And one of the students asked, ``Well, with5610the fact that we now have a Vice President Vance who was the5611co-lead for the Railway Safety Act, do you think that we will5612see train safety in the future?''5613 And my response was no. And they waited for me to say5614something else. But my response was no, because after ruining5615these people's lives in East Palestine and constantly begging5616for hearings, having two or three or four or five different5617versions of the bill trying to find a solution that would5618ultimately address the needs of everyone, we still have5619nothing.5620 And as my colleague from Pennsylvania said, I find that to5621be wholly unacceptable. It is unacceptable to have not done5622anything for the people of East Palestine, Ohio, and all across5623this country who are concerned.5624 And so I was going to ask you, Mr. Jefferies, what could we5625do? What would you be okay with? But my colleague had already5626asked and you have answered the question, so now I know.5627 But I am going to ask Mr. Cassity, what are some of the5628things that you would suggest that we could do?5629 Because at this point, I just want you all to be on the5630record as expressing solutions that we can hear, that we can5631put to paper, and then we can implement and keep our community5632safe.5633 Mr. Cassity. Sure. Thank you for the question,5634Congresswoman.5635 East Palestine brought to light a lot of failures within5636the system of railroading, and defect detectors are kind of at5637the center point of that. And the purpose of the defect5638defector, it is a wayside detector. It lets you know if there5639are defects in the cars or the train, if there are trending5640indicators, to give a heads-up that something might be going5641wrong.5642 Now, like in a car when you have wheel bearings, if those5643bearings start to seize, the temperature, obviously you have5644metal on metal, friction takes place, and you have temperature5645that rises.5646 Historically, at least from when I hired on in 2005, these5647defect detectors gave you audible warnings. When you hit one or5648when you started to go over one, it gave you an introduction--5649CSX milepost, blah, blah, blah, defect detector--just to let5650you know it is on. And then as you went over, if there is a5651defect, it would sound an audible alarm, and then it would give5652you a closing announcement saying: CSX defect or milepost,5653blah, blah, blah, this is what the issues are.5654 Somewhere along the way we lost the priority of those5655communications. And defect detectors started turning off the5656entrance alarm, so you didn't know if they were working or they5657weren't working.5658 And then somewhere else along the way and the next step in5659the transition is that railroaders decided that they didn't5660want to give the operating crew that information about the5661defects, that they were better suited to determine whether5662there was a defect, it should be appropriate, it should be5663reported, or not.5664 And then we get into the temperature thresholds like you5665addressed. There should be a standard on those thresholds.5666There should be a point at where we need to say: Hey, look, you5667have got to be notified of it.5668 But to Congressman Moulton's point earlier too, there is no5669reason we shouldn't be in a place where technology doesn't5670exist that is providing real-time information to the crew in5671the cab of the locomotive because that is who needs that5672information. We are not going to keep operating a train when we5673know there is a problem behind us.5674 Now, we are the ones that are responsible for its5675operation. We are the ones whose lives are at stake. And we are5676the ones that want to make sure that we get the job done the5677way we are supposed to.5678 If there is any one thing in East Palestine that we can5679fix, it is making sure that the defect detectors are5680communicating, that they are relaying the information to the5681crew, to the people that have to have it in real time, and5682getting those things done. But the Rail Safety Act, the Rail5683Safety Enhancement Act, did approach a lot of those issues.5684 Mrs. Sykes. Thank you, Mr. Speaker.5685 I know we are out of time, but I am on this committee to5686make sure that we figure out these solutions and implement5687them. And I look forward to working with everyone in order to5688do that.5689 Thank you for letting us go over, Mr. Chair. I yield back.5690 Mr. Webster of Florida. The gentlelady yields back.5691 Mr. Burchett, you are recognized.5692 Mr. Burchett. Thank you, Mr. Chairman, Speaker.5693 Mr. Jefferies, what priorities or revisions would you like5694to see in the surface transportation reauthorization5695legislation?5696 Mr. Jefferies. To name a few, fix the Highway Trust Fund.5697Our competitors have gotten and are on pace to get over $3005698billion in public subsidy for the infrastructure they operate5699over----5700 Mr. Burchett [interrupting]. How would you suggest we fix5701it?5702 Mr. Jefferies. The VMT with the weight variance on it.5703Their initial pilot program is out there. It is very eminently5704doable right now and it is the most equitable way to do it.5705 Two, no truck size and weight increases.5706 Three, maintain multimodal competitive grant programs for5707our public partners and our short line colleagues.5708 Four, create an outcomes-, regulation-based paradigm that5709focuses on safety outcomes versus inputs, to name a few.5710 Mr. Burchett. All right.5711 Mr. Jefferies. Permitting reforms, sensible permitting5712reform.5713 Mr. Burchett. Sir, we are Government, we are not in the5714business of fixing things. We are in the business of making it5715worse.5716 Mr. Jefferies. Well, you asked.5717 Mr. Burchett. But I appreciate that. We will work on that.5718 The Highway Trust Fund, tell me how it impacts the rail5719industry.5720 Mr. Jefferies. As I mentioned, freight railroads, Class I5721railroads, we pay for almost 100 percent of our own funding of5722our infrastructure to the tune of, when you account for5723inflation, $1.1 trillion of private funding since 1980.5724 And we compete strongly against our trucking partners. They5725are partners, they are also competitors, and they operate over5726a public highway system that is woefully underfunded by the5727user fee structure, and all that leads to is a competitive5728imbalance.5729 Look, I have heard the ATA advocate for paying more into5730the system. I have heard countless stakeholders advocate for5731paying more into the system. We haven't had a change since57321993. Think about how much inflation has occurred and how much5733less the dollar is worth now.5734 Mr. Burchett. I hear it every day, every day.5735 I had a question about new technologies, but I believe Mr.5736Cassity addressed some of those with the bearing indicators. I5737have packed a few of those Timken bearings in my life, big and5738small. It is something everybody ought to do at some point.5739 Have the Federal regulations slowed the implementation of5740these technologies, Mr. Jefferies? A simple yes or no.5741 Mr. Jefferies. Yes.5742 Mr. Burchett. Thank you.5743 Mr. Baker, how has the short line rail industry utilized5744the Consolidated Rail Infrastructure and Safety Improvements5745grants?5746 Mr. Baker. Yes, sir. CRISI allows us to do projects that we5747just simply couldn't afford.5748 Mr. Burchett. And what is your biggest barrier for that,5749with that?5750 Mr. Baker. The biggest challenge going forward is: Will5751CRISI continue to exist? Because the need exists. And so we5752need to make sure in the next surface reauth bill that the5753program continues with advance appropriations.5754 Once the grant has been given, the biggest barrier is just5755how slow it is to get from--the award date is incredibly5756exciting and everyone is happy and there is a press release and5757a press conference, and then the next couple of years is sort5758of a painful slog of getting it--actually getting money in the5759ground and ties and rail. And it just really doesn't need to be5760that slow.5761 Mr. Burchett. Okay. And that is how you think we should5762improve that, is to make it faster?5763 Mr. Baker. Yes, sir.5764 Mr. Burchett. All right. Don't call me sir, it is just Tim.5765You will get nowhere showing me any respect in Washington, sir,5766I can assure you.5767 Mr. Baker. Noted.5768 Mr. Burchett. Thank you.5769 Let me ask you one more question, Mr. Baker. You have been5770very helpful.5771 Has the bureaucratic redtape interfered with short lines'5772ability to build? And how can Congress remove those barriers? I5773don't need the lawyer answer, I need the ``me and you sitting5774here talking'' answer.5775 Mr. Baker. The answer is yes, the redtape has slowed the5776process of building. And there are simple things--and I am not5777even a lawyer, so I won't give the lawyer answer. But----5778 Mr. Burchett [interrupting]. You work for a living, you5779choose not to steal, is what you are telling me.5780 Mr. Baker. Things such as permit by rule, where if it is5781obviously----5782 Mr. Burchett [interposing]. Yes.5783 Mr. Baker [continuing]. A rehabilitation in an existing5784right-of-way. The answer is obvious. There is going to be no5785significant environmental impact. It is going to get a5786categorical exclusion. There is no reason that process needs to5787take months or years. That should be essentially instantaneous.5788 Mr. Burchett. All right.5789 Mr. Baker. Also pre-award authority. Let us spend our own5790money at risk and then we can get the project going. And then,5791if you want to spend a few months arguing over paperwork, it is5792not as painful, because at least we are making progress.5793 Mr. Burchett. Would either of you two gentlemen like to add5794anything to that in the next 12 seconds?5795 Mr. Daloisio. I would just like to add that I agree. I5796spoke a little bit earlier about sometimes the process is like5797as a contractor we want to give our partners those budget5798prices. Sometimes years later they get the funding, and now5799that budget price we gave 3 years ago, really it doesn't pay5800for the project anymore. So we have to go for change orders and5801things of that nature. So the timing really is an important5802thing.5803 Mr. Burchett. Thank you, Mr. Chairman. I yield back.5804 Mr. Chairman, I would like to say for the record that I5805have an intern with me named Emma Grace from Nashville,5806Tennessee, and she is wonderful. We hear a lot of bad things5807about what is going on with our young people in this country,5808and around a young person like that it makes me feel a whole5809lot better about where our country is headed.5810 Thank you, Mr. Chairman.5811 Mr. Webster of Florida. The gentleman yields back.5812 Ms. Friedman, you are recognized for 5 minutes.5813 Ms. Friedman. Thank you, Mr. Chair.5814 We have heard a lot about the importance of rail5815investments on farms and on freight, and that is wonderful and5816true. And we have also heard about the need to find ways of5817really funding our rail infrastructure, both for safety and for5818economic development. And I want to bring up another facet of5819this that is very important to my district, which is housing.5820 I represent Los Angeles. As you know, we have been5821devastated by recent wildfires that have left maybe 12,0005822people or more homeless. That is running straight into an5823existing housing crisis in Los Angeles that already had tens of5824thousands of people homeless in our community and many others5825facing severe overcrowding and thousands of people who can't5826afford their rent because of the housing shortage driving up5827the price of rent.5828 To me, it has been obvious for many years working on5829transportation issues that we are not going to solve our5830housing crisis in Los Angeles or many parts of our country5831without figuring out mobility. Because the first thing that5832neighbors always say when anyone wants to add new housing in5833Los Angeles and in many parts of the country is that they are5834concerned about the impact on parking and traffic congestion,5835which makes sense because we don't always give people other5836options for good mobility.5837 And that means that for us to fix housing we have to fix5838transit and better invest in transit. And rail, of course,5839plays a huge role in that, in getting people to and from work,5840which sometimes in Los Angeles can mean traveling many miles5841because people are priced out or are working in areas where5842they can't find housing.5843 So that is the lens that I am looking at transportation5844investments through, that it is not just about moving freight,5845it is not just about moving maybe from region to region, but5846also solving our housing crisis, which makes it even more5847important.5848 Now, the FTA's Pilot Program for Transit-Oriented5849Development, or TOD, Planning, helps to create communities that5850are walkable and bikeable and more connected, and the5851Bipartisan Infrastructure Law provided a 38-percent increase5852for TOD programs.5853 But transportation costs are still one of the highest5854consumer costs that we see. And in 2023, L.A. area households5855spent 16 percent of their budget on average on transportation,5856totaling almost $15,000 a year.5857 And for people who are transit dependent, people who can't5858afford a car or for a variety of reasons can't have a car, we5859actually give them a pretty miserable experience because we5860don't invest enough in transit, partially because our formulas5861from the Federal Government don't reflect the real need.5862 So I am wondering--and I guess I am going to direct this to5863Mr. Cassity but it really can be any of you--how can the5864Federal Government be a better partner? I know that, of course,5865funding is a part of it. But I am looking for ways to help5866support rail, rail expansion, upgrading rail, faster headways.5867 And so is there something I should be looking at, certain5868programs that I should be fighting for, or policy changes that5869I can help push forward to help with transit in Los Angeles and5870across the country?5871 Mr. Cassity. Sure. Thank you for the question,5872Congresswoman. I wish I was better equipped to really speak to5873this and the funding nature of it.5874 What I will say, one, I want it to be understood that labor5875is fully on board with helping to rebuild the L.A. community.5876And anything that we can do to encourage the growth or new5877introduction of transit and rail, we are 100 percent on board.5878 The one critique I would offer about Government and its5879role and how we do that is just having an open communication5880and an honest conversation about what we can do to make things5881better, especially in the rail space.5882 Safety for us is not a partisan issue. It should not be5883``us versus them.'' It is simply one of those things that we5884must accept and we must drive towards.5885 Improving communities is one of those things that we have5886got to be talking about real-world solutions that are doable5887and then not worrying about what party might do what. We have5888just got to get down to the fact that, hey, we need to do what5889is right for the American public. We need to do what is right,5890make sure they have the opportunity to get to work.5891 And I know this effect all too well. I will be really5892honest here. I lived in the Huntington, West Virginia, area for5893the last 15 years. When I was elected to this position and5894moved here, never was I smacked so hard in the face about the5895difficulties of transportation than living in Washington, DC.5896 And I understand the realities and the challenges. So I5897can't necessarily recommend the fundamentals. But what I can5898tell you is that Congress has got to step in. You have got to5899figure out how to work together and just realize this is5900something we need desperately, to make sure we get it done and5901then let it roll. And we are fully on board to make sure we get5902over the finish line with that.5903 Mr. Jefferies. I would just add--well, first and foremost,5904my condolences to the entire L.A. community. I have family who5905has lost a home, friends, no doubt you do as well, and an5906absolute tragedy.5907 I think a lot of it comes down to southern California is5908another one of those parts of the country that has so many5909different governments. And we talked about a program earlier in5910Chicago called the CREATE Program, where the city, county,5911State, freight rail, passenger rail, commuter rail have all5912worked together to talk about investments to be made to free up5913capacity to create more service.5914 And I think there was a real opportunity there to5915coordinate and identify shared priorities that will have the5916biggest impact for the whole community versus community by5917community.5918 And so I would encourage you to take a look at that program5919and how we might be able to work to be part of that sort of5920establishment moving down the road.5921 Mr. Baker. I would also note we have talked about the5922Highway Trust Fund a few times. And Ian and I tend to approach5923that from the concept of freight and freight rail competing5924against trucks. But I think our transit friends would have a5925similar vantage point on rail transit or even bus transit5926versus roads.5927 And the reality is L.A. is very different than perhaps a5928rural area. In a rural area perhaps the money is best used to5929expand the county road. But in L.A., New York, Chicago you5930cannot build your way out of traffic congestion by more roads.5931It doesn't work. You need to invest more in rail transit.5932 Ms. Friedman. Thank you so much. I yield.5933 Mr. Webster of Florida. The gentlelady yields back.5934 Mr. Taylor, you are recognized for 5 minutes.5935 Mr. Taylor. Thank you, Chairman Webster and Ranking Member5936Titus, for holding this meeting.5937 And thank you, witnesses, for being here with us today. I5938appreciate it very much.5939 As it stands, Ohio has 44 operating railroads and over59405,000 miles of track, making Ohio the third largest rail5941infrastructure State in the Nation. Manufacturing, steel,5942agriculture, and international trade all depend on railways to5943connect Ohio products with national and global markets.5944 As one of two Ohioans serving on the Transportation and5945Infrastructure rail subcommittee, ensuring rail safety after5946the incident in East Palestine is one of my top priorities.5947 Mr. Daloisio, in your testimony you mentioned how railroads5948across the country following East Palestine created and5949implemented new safety measures to ensure derailments like this5950didn't occur again.5951 Can you go into further detail about specific safety5952measures that the National Railroad Construction and5953Maintenance Association has taken to this point?5954 Mr. Daloisio. Thank you, Congressman.5955 So our association of contractors and engineers and5956suppliers, they are constantly looking at new technologies,5957like these hot box detectors, like signaling information, data5958processing things.5959 Our contractors are constantly looking at safer and better5960and more efficient ways to fix the tracks and also to work with5961the railroad, the operating railroads.5962 I mean, our association, we started, we have a robust5963safety committee which talks constantly about safer railroads,5964safer way to do things, safer procedures.5965 While we don't get into the actual operations of the5966trains, our contractor members help our Class I and our short5967line partners in making things safer.5968 So when it's insulation [inaudible] detectors or whatever5969new technology comes out there, we are definitely on board to5970try to help them and support them and be a sounding board for5971them to try to advance some of these technologies.5972 Mr. Taylor. Thank you.5973 Mr. Jefferies, we have heard conflicting statements over5974the course of today about derailment statistics over the last 35975years.5976 Would you mind sharing some of the underpinnings of your5977testimony earlier that the rate of derailments is going down5978over the last few years?5979 Mr. Jefferies. Sure. I would be glad to. And just to add on5980to my colleague's comments, freight rail has taken a number of5981steps as well. Increased the number of wayside detection,5982whether it is hot box, whether it is acoustic bearing, whether5983it is machine inspection portals, whether it is reducing5984absolute threshold on bearing increases, whether it is5985establishing new trending algorithms for troubling trends and5986increasing temperatures on bearings, or whether it is making5987sure first responders have real-time information; 2.3 million5988first responders now have access to our real-time app.5989 Shifting to the safety numbers. So we saw in 2023 the5990employee injury rate was at the industry's all-time low. We are5991a 200-year-old industry. All-time low. Final 2024 numbers5992haven't come in yet. We are neck and neck with that, slightly5993below, but that is through 10 months. So hopefully the last 25994months of the year will bear that out. Of course, any number5995above zero, we have got a lot more work to do.5996 On the derailment rate, rate is the key measure, rate. In59972023, the rate was 3.46 incidents per million train-miles. So5998far in 2024, the number is 2.77 per million train-miles. Again,5999that is above zero. That is not acceptable. We have got a lot6000more work to do.6001 But the vast majority of those incidents occur within the6002yard or on industry track, not on the mainline, the mainline6003being the interstate highway of the rail network.6004 That does not diminish those incidents. They can absolutely6005result in tragedy, and do. And so we have got to minimize those6006in-yard incidents. We have seen a significant downtick there.6007Those incidents also largely include a wheel coming off a rail6008during the switch. So we cannot equate all derailments.6009 Mr. Taylor. Thank you for that.6010 Many short line railroads across Ohio and the United States6011operate on decades-old or century-old existing infrastructure.6012I support investing in infrastructure, but we also have to be6013mindful of the deficit.6014 Consolidated Rail Infrastructure and Safety Improvements--6015or CRISI--grant programs seem to be transformative in repairing6016outdated infrastructure without wasting taxpayer dollars.6017 What is the biggest barrier for short line operators when6018they consider or apply for a CRISI grant at this time?6019 Mr. Baker. Right. Well, I appreciate the underpinning of6020the question. Short lines, we take a lot of pride in the fact6021they are very, very lean, there is almost no bureaucracy. If a6022short line gets $10, $12, even $5 million from the FRA in a6023CRISI grant, that money goes right into the track. There is not6024a big engineering study, there are not layers of management to6025process it through. So we feel very happy that we can deliver6026Government a good bang for the buck.6027 The delays, from announcement to obligation, that is really6028the biggest hurdle to overcome, and then, of course, just6029making sure that the program continues to exist, because we6030have a lot more to go in Ohio. We have made great progress, but6031there is a lot more to do.6032 Mr. Taylor. Thank you again, Chairman. I yield back.6033 Mr. Webster of Florida. The gentleman yields back.6034 Mr. Nadler, you are recognized for 5 minutes.6035 Mr. Nadler. Thank you.6036 Let me start by thanking Chairman Webster and Ranking6037Member Titus for holding this hearing and the witnesses for6038appearing.6039 Before I go into my questions, I want to express my concern6040again about President Trump's hastily and poorly drafted6041Executive order that froze a substantial portion of critical6042Bipartisan Infrastructure Law funding. Despite the White House6043drafting memos and OMB trying to clarify, States are still6044being told that their approved funding for bridges and highways6045is on pause.6046 I remain concerned that the White House triggered an6047entirely avoidable crisis, and I urge the White House to6048finally clean up this mess.6049 Mr. Jefferies, your testimony underscored the many6050advantages of rail freight compared to trucking, particularly6051in terms of safety, efficiency, and infrastructure6052sustainability. Studies suggest that increasing truck size and6053weight limits could divert as much as 20 percent of freight6054from rail to roads.6055 Could you elaborate on the potential consequences of such a6056shift for the communities we serve, including the strain on the6057Nation's road and bridge infrastructure?6058 Mr. Jefferies. Thank you for the question. Welcome back to6059the committee. And thank you for your longstanding championship6060of this issue.6061 The impact would be immense, to put it lightly. We already6062have a Highway Trust Fund that is underfunded by hundreds of6063billions of dollars. We have long since abandoned the user pays6064fee. Our trucking partners operate over infrastructure of which6065most estimates say they pay, max, 60 percent to cover the cost6066of the infrastructure damage.6067 Increasing truck weights would only exacerbate6068infrastructure damage, exacerbate congestion. That is more6069trucks moving up and down the I-95 corridor, the I-81 corridor,6070which every time I am on it, I feel like I am the only car6071driving on it. Increase emissions.6072 It is not good for customers, consumers, communities. It is6073not good for, frankly, society.6074 And at the end of day, from my perspective--and, oh, by the6075way, I know we have had our differences today, but this is an6076issue I guarantee you every single one of us sees eye to eye on6077and supports. So at least there are a few things out there.6078 But from my perspective, look, we are just looking for a6079level playing field here. We pay for our infrastructure and we6080expect our competitors to pay for their infrastructure and then6081let the chips fall where they may.6082 But when you are subsidizing infrastructure to the tune of6083hundreds of billions of dollars, that just flips the scale on6084its side and pushes freight where it is going to go to the6085cheapest level, which is going to be the highways if it is6086allowed to increase weights at, in addition to that level of6087subsidy.6088 Mr. Nadler. Does everybody on the panel in fact agree with6089Mr. Jefferies on this?6090 Mr. Baker. I do, for sure.6091 I would also note there is a huge safety concern, which you6092all have pointed out. There are 40,000 people dead last year on6093the Interstate Highway System. We are used to that as a country6094because it happens every year, for decades, but that is a6095horrifying number. And the fact that anybody could look at that6096scenario and say what we ought to do is add bigger and heavier6097and more trucks to that, I just don't think that makes a lot of6098sense.6099 Mr. Nadler. Thank you.6100 Mr. Jefferies, your testimony also mentioned the disparity6101in funding between rail and trucking. What policy changes could6102Congress implement to address this imbalance while ensuring a6103fair and competitive freight transportation market?6104 Mr. Jefferies. Well, first of all, don't make any changes6105to truck size and weight. And second of all, we have to get6106ahold of how the highways are funded. It has got to be done by6107the user.6108 And I would just say it is not just the folks on this panel6109that share our concerns. It is truckdrivers. There are a lot of6110trucking companies. To my knowledge, the ATA is not advocating6111for this. This is a select group of shippers advocating for6112this.6113 And so we believe the citizens don't support it. So we6114believe the vast majority of this country opposes any sort of6115change.6116 Mr. Nadler. Thank you.6117 Finally, your testimony highlighted the importance of6118programs like the Infrastructure for Rebuilding America, which6119I was proud to help create a decade ago, and the Mega Grant6120Program. These initiatives have been instrumental in addressing6121critical infrastructure challenges nationwide.6122 They also represent vital funding opportunities for6123transformative projects like the Cross-Harbor Freight Tunnel6124project, which has the potential to significantly divert6125freight from trucks to rail, enabling the more efficient6126movement of millions of tons of goods each year through New6127York and New Jersey.6128 Mr. Jefferies, in your view, what steps can Congress take6129to improve these grant programs to support even more6130transformative projects, particularly in high-need areas?6131 Mr. Jefferies. I will be quick.6132 Keep funding them, get the money out quicker, and make sure6133that distributions and awards are merit based.6134 And finally, one application, one central application for6135all these different programs so that folks don't have to6136reinvent the wheel every time they are applying for funding6137from a different program.6138 But fully support.6139 Mr. Nadler. Thank you. I yield back.6140 Mr. Webster of Florida. The gentleman yields back.6141 And I don't see anybody else who hasn't been recognized. So6142I thank the witnesses. Thank you for coming, staying until the6143end, giving us great, direct answers on all kinds of issues.6144 And with that, the meeting is--yes, go ahead.6145 Ms. Titus. Thank you.6146 I just heard several mentions of cargo theft. We have been6147working on retail theft, and that is much more than stealing a6148candy bar now. I suspect there is some overlap between these6149circles that are involved in this. Maybe we need to put a6150roundtable together with some of the stakeholders and look at6151how we can do a concerted effort on this issue.6152 Mr. Jefferies. We would be happy to.6153 Ms. Titus. Thank you.6154 Thank you, Mr. Chairman.6155 Mr. Webster of Florida. Now, no one else is asking to be6156recognized, so the meeting stands adjourned.6157 [Whereupon, at 12:46 p.m., the subcommittee was adjourned.]61586159 Submissions for the Record61606161 ----------61626163 Statement of Rob Benedict, Vice President, Petrochemicals and6164 Midstream, American Fuel & Petrochemical Manufacturers, Submitted for6165 the Record by Hon. Daniel Webster6166 The American Fuel & Petrochemical Manufacturers (AFPM) is a trade6167association representing high-tech American refiners and petrochemical6168manufacturers. AFPM members produce and deliver the fuels and6169petrochemicals that make modern life possible and enable people and the6170U.S. economy to thrive.6171 On behalf of the AFPM, we want to thank you for your leadership6172ensuring our United States freight rail system remains competitive and6173operates efficiently, ensuring economic prosperity.6174 Railroads are an integral part of our nation's infrastructure, and6175all stakeholders benefit from a healthy, competitive, and dependable6176freight rail system. The economic contributions and planned growth6177associated with the refining and petrochemical industries are dependent6178on the ability to move products and feedstocks reliably and efficiently6179to, and from, their facilities. Refineries and petrochemical6180manufacturers rely on a healthy rail network as a vital part of their6181supply chains and in turn our industry's growth strategy. Annually in6182the United States, over 2.3 million carloads of our members' feedstocks6183and products are transported by rail.6184 We appreciate the attention the subcommittee's hearing brought to6185important rail issues and railroad's role in a thriving economy. AFPM6186members were disappointed the witness list failed to include a key6187stakeholder rail customer and shippers. Rail shippers have important6188perspectives on the state of the freight rail network and these views6189were absent from the hearing. With that absence, key perspectives were6190raised on critical rail service issues, rail competition and rail6191safety from only the invited witness's perspective, and thus only6192provided one, unchecked side of the story. AFPM urges the subcommittee6193to include rail shippers in future hearings to obtain a balanced,6194comprehensive hearing record.6195 While AFPM members support many of the points made by the witnesses6196regarding infrastructure investments, permitting reform, rail6197inspections and the need for innovation, we would like to provide the6198following rail shipper perspective on two important topics covered at6199the hearing.6200 Improving Rail Safety is a Shared Responsibility6201 Rail safety is a shared responsibility that includes railroads,6202rail shippers, emergency responders and the regulatory agencies6203responsible for oversight. AFPM members prioritize the safety of our6204people, communities, and products above everything else, and that6205includes the safety of our products in transit.\1\ As rail shippers, we6206control the tank cars we own and lease up to the point when we hand6207them over to the railroads. To date, shippers have replaced nearly6208110,000 tank cars on the tracks with new or retrofitted cars,6209substantially reducing the probability of tank car breaches in the6210event of a derailment.\2\6211---------------------------------------------------------------------------6212 \1\ See AFPM Blog: Transporting fuels and chemicals by rail: What6213AFPM members do to keep rail shipments safe.6214 \2\ These massive investments by shippers have resulted in6215significant rail safety improvements. According to the Association of6216American Railroads, since 2013 the U.S. flammable liquid fleet has6217realized a 60 to 80% reduction in Conditional Probability of Release, a6218common measure of tank car puncture resistance as a result of fleet6219upgrades. See Tank Car Resource Center--Progress.6220---------------------------------------------------------------------------6221 The primary goal of rail safety policy is to reduce or eliminate6222the risk of derailments in the first place. To this end, Wayside6223detectors and telematics are valuable diagnostic tools for the rail6224industry that can help prevent derailments. Wayside detectors collect6225information on the health of passing rail cars, transmit that data back6226to railroad personnel who then can identify rail safety issues and6227potentially mitigate issues and prevent derailments. Similarly, rail6228telematics can provide information on the health and location of tank6229car assets to the shippers that own them.6230 Installing more Wayside detectors across freight rail routes that6231frequently transport hazardous materials would improve the frequency of6232real-time data transmissions, enhance safety warning systems by helping6233to identify escalating problems early, enable immediate response6234measures, and prevent derailments.6235 Currently, the frequency and placements of wayside detectors is not6236regulated by the United States Department of Transportation (US DOT).6237In addition, the protocols related to when a wayside detector reading6238would require action from a train crew (such as additional inspection,6239reducing train speed or even stopping a train) are left to rail6240industry developed standards. More wayside detectors and clear6241protocols to identify potential dangers would also enhance safety6242warning systems by helping to identify escalating problems early and6243hopefully the prevention of rail incidents.6244 To this end, AFPM supports efforts to establish requirements for6245the installation, maintenance, and placement of wayside defect6246detectors. Similarly, AFPM is open to further researching the role6247telematics can play in improving safety.6248 Reduced Rail Competition Has Harmed Rail Efficiency6249 During the hearing the Staggers Act of 1980 was referenced, and it6250was noted that freight rail transportation has become ``cheaper and6251more efficient.'' The rail industry has made significant improvements,6252particularly in safety, since 1980. From a rail shipper perspective6253today, the consolidation within the rail industry, particularly over6254the past 15 years, has decreased competition, led to increased shipper6255costs, and had negative impacts on the rail network.6256 Rail shippers, including AFPM member companies, face escalating6257rates, service challenges, a lack of competitive options, and6258ineffective means to resolve commercial disputes with railroads. With6259limited competition, freight rail rates continue to increase whereas6260railroad costs have remained relatively flat. Approximately 75% of6261refiners and petrochemical manufacturers are only served by a single6262railroad (i.e., are captive) and thus have been negatively impacted by6263the lack of competitive rail service for far too long.6264 Further, the widespread introduction of Precision Scheduled6265Railroading--a railroad operational method focused on maximum asset6266utilization and reduction of operating ratios--exacerbated rail6267competition issues and has caused a shift in railroads' focus from6268serving rail customers to maximizing profits.6269 To this end, when considering rail policies, AFPM asks Congress to6270consider reforms that promote greater access to competitive rail6271services wherever possible, reform the outdated policies of dispute6272resolution processes and the definition of the common carrier6273obligation, and equip the surface transportation board with more data6274to identify rail network issues prior to them becoming an emergency.\3\6275---------------------------------------------------------------------------6276 \3\ See AFPM Blog: Freight Rail in America: Can a Market Be `Free'6277if There's Almost No Competition?6278---------------------------------------------------------------------------6279 AFPM thanks the subcommittee for its time and consideration of all6280stakeholder viewpoints. AFPM shares Congress's goal of ensuring the6281safe and efficient flow of commerce on our nation's rail system and6282looks forward to continued collaboration. AFPM and our members6283appreciate your consideration of perspectives and urge you to include6284rail shippers in future discussions on freight rail topics.62856286 Statement of the Wabtec Corporation, Submitted for the Record by6287 Hon. Daniel Webster6288 Introduction6289 Wabtec Corporation submits this statement for the record to the6290Committee on Transportation and Infrastructure Subcommittee on6291Railroads, Pipelines, and Hazardous Materials to provide insight into6292the company's role in rail technology, innovation, and safety. Wabtec6293is the leading provider of advanced technologies that improve rail6294safety and efficiency, building on our 150-year legacy of innovation to6295design and manufacture the most competitive locomotives, digital6296technologies that support a safer and more efficient rail network, and6297rolling stock components for passenger and freight rail fleets.6298 Wabtec is a rail technology partner that works with a broad range6299of stakeholders--both private and public--to advance safety,6300efficiency, and the long-term competitiveness of the freight and6301passenger rail sectors. As the industry continues to evolve, federal6302investment in infrastructure and technology remains vital to ensuring6303the competitiveness of U.S. rail manufacturing and the continued6304modernization of rail operations. Public-private partnerships, such as6305the Consolidated Rail Infrastructure and Safety Improvements (CRISI)6306program and other federal initiatives, provide essential funding that6307enables rail operators to adopt next-generation technologies, enhance6308safety, and improve operational performance. Continued support for6309these programs is critical to Wabtec's ability to innovate, expand6310domestic manufacturing, and contribute to a stronger, more resilient6311rail network and national economy.6312 Wabtec's Legacy and Global Impact6313 Wabtec's history is deeply rooted in innovation, dating back to its6314founding in 1869 by George Westinghouse. The development of the air6315brake system revolutionized rail safety and efficiency, and the company6316has maintained its leadership in the industry by continually6317introducing advanced rail technologies. Today, Wabtec operates in over631850 countries with a workforce of 29,500 employees, including 12,000 in6319the United States. The company primarily serves the global freight rail6320and passenger transit industries, including locomotives, braking6321systems, digital solutions, and propulsion technologies that enhance6322the performance of rail networks worldwide.6323 As a global leader, Wabtec's impact extends beyond manufacturing6324and technology development. The company plays a key role in advancing6325rail infrastructure through strategic partnerships, acquisitions, and6326investment in emerging technologies. Wabtec's commitment to research6327and development ensures that the rail industry continues to evolve to6328meet the needs of modern transportation.6329 Beyond North America, Wabtec has a significant presence in Europe,6330Asia, Africa, South America, and Australia. This international6331footprint enables Wabtec to leverage global best practices and6332collaborate with rail operators worldwide to drive advancements in6333transportation systems and rail networks. Despite increasing6334competition from foreign manufacturers, Wabtec remains a leader in6335locomotive and transit solutions by investing in proprietary technology6336and maintaining strong partnerships with international rail6337authorities. In an era where global rail infrastructure is rapidly6338evolving, Wabtec continues to provide innovative solutions that keep it6339at the forefront of the industry.6340 Locomotive Technologies6341 Freight and passenger rail operators across North America rely on6342Wabtec locomotives to deliver a safe and reliable operation for their6343customers. Continuing to invest in new and modernized locomotives,6344along with the development of a portfolio of alternative fuel6345capabilities to meet a variety of operator needs, will be vital to the6346continued competitiveness of freight rail relative to other modes.6347 Freight Locomotives: Wabtec's Tier 4 locomotives6348represent the most advanced, fuel-efficient, diesel-electric6349locomotives available today. These locomotives meet the Environmental6350Protection Agency's (EPA) stringent Tier 4 emissions standards, which6351require a 76% reduction in nitrogen oxide (NOx) and a 70% reduction in6352particulate matter (PM) emissions, compared to previous generations.6353With over 1,000 Tier 4 locomotives in operation, Wabtec continues to6354set the standard for sustainable rail transportation. Railroads6355adopting these locomotives benefit from improved fuel efficiency, lower6356maintenance costs, and a reduced environmental footprint.63576358 Locomotive Modernization Programs: Wabtec modernizes6359aging locomotive fleets to extend their operational life while6360incorporating the latest efficiency and safety enhancements. These6361efforts have resulted in up to 30% improvement in fuel efficiency and a6362more than 50% increase in haulage ability.63636364 Hybrid and Alternative Fuel Technologies: Wabtec is6365investing in hybrid-electric and alternative fuel technologies to6366support a range of next-generation propulsion technologies. The6367development of fuel-agnostic, battery-electric and hydrogen internal6368combustion engine locomotives represents a significant step toward6369implementing innovative technology solutions and increasing energy6370efficiency within the rail sector.6371 Leadership in Positive Train Control (PTC) and Wayside Safety Systems6372 Wabtec is at the forefront of rail safety through its leadership in6373Positive Train Control implementation. A federal requirement, PTC is6374designed to prevent train-to-train collisions, over-speed derailments,6375and unauthorized train movements. Since the passage of the Rail Safety6376Improvement Act of 2008, Wabtec has deployed PTC solutions on more than637724,000 locomotives across North America, significantly enhancing safety6378and operational efficiency.6379 In addition to PTC, Wabtec is a pioneer in the inspection and6380monitoring of rail assets to improve safety through our KinetiX6381Inspection Technologies portfolio. These wayside systems evaluate the6382condition of key railcar components, including wheels, brakes,6383bearings, and pantographs, delivering a detailed overview of the6384train's overall health. Integrating machine vision, laser scanning,6385remote sensing with acoustic and thermal technology, load monitoring,6386and AI-driven analytics, the technology sets the standard for6387automating inspection processes, enhancing asset availability and life,6388significantly reducing operational costs and service disruptions.6389 Advancements in Rail Technology and Digital Infrastructure6390 Wabtec is driving innovation in rail technology through the6391development of digital solutions that enhance visibility, optimize6392train operations, and enable real-time decision-making. These6393advancements improve network capacity, reduce congestion, and support6394precision scheduling, leading to a more efficient and resilient6395transportation system.6396 Wabtec's artificial intelligence capabilities facilitate predictive6397maintenance, minimizing unplanned downtime and improving asset6398utilization. By integrating AI-driven diagnostics with real-time6399monitoring, the company helps railroads reduce mechanical failures and6400increase train reliability. For example, our Railcar Telematics6401portfolio includes state-of-the-art sensors that turn freight cars into6402smart connected assets that allow operators and shippers to see the GPS6403location of freight and better manage the safety and maintenance of the6404fleet.6405 Wabtec's Trip Optimizer is a smart cruise control system for trains6406that is certified by the U.S. EPA to deliver 10% fuel savings. By6407taking into account the terrain, train make-up, speed restrictions, and6408operating conditions, it calculates an optimum speed profile and can6409automatically control the locomotive throttle and dynamic brakes to6410reduce fuel burn and provide efficient train handling onboard6411locomotives. The system is installed on over 11,000 locomotives6412globally and has saved more than 400 million gallons of fuel, cutting6413carbon emissions by over 500,000 tons annually. Based on the typical6414price for No. 2 diesel fuel, Wabtec has saved customers hundreds of6415millions of dollars in fuel expenses.6416 Similarly, Movement Planner is a real-time planning solution that6417optimizes train scheduling, improving network throughput while reducing6418congestion and energy use. By leveraging predictive analytics and AI-6419enhanced decision-making, Movement Planner enables freight and6420passenger trains to operate more efficiently within existing6421infrastructure.6422 CRISI Grants6423 The Consolidated Rail Infrastructure and Safety Improvements6424(CRISI) program is a critical funding mechanism that supports rail6425safety, efficiency, and infrastructure modernization across the United6426States. This program plays an essential role in enabling short line and6427regional railroads to make necessary investments in modern rail6428technologies, safety enhancements, and operational improvements.6429 Short line and regional railroads, which provide crucial first- and6430last-mile connectivity for freight shipments, often lack the financial6431resources needed to upgrade their aging fleets and infrastructure.6432CRISI grants bridge this gap by providing the investments necessary to6433acquire advanced locomotive technologies, implement digital safety6434solutions, and improve fuel efficiency.6435 Wabtec has actively supported CRISI grant applications for various6436railroads, assisting them in securing federal investments for6437innovative rail technology acquisitions. As a result, rail operators6438have been able to invest in innovative technology that enhances safety6439and operational performance. The ability of railroads to access CRISI6440funding directly impacts their capacity to improve network efficiency6441and reliability and ensure compliance with evolving safety standards.6442 Continued investment in the CRISI program is essential for6443fostering a more resilient and competitive rail network. By supporting6444smaller railroads in adopting cutting-edge solutions, these investments6445contribute to the overall strength of the U.S. transportation6446infrastructure while promoting sustainable rail operations. Wabtec6447remains committed to collaborating with rail partners and policymakers6448to maximize the impact of the CRISI program and advance the future of6449rail technology.6450 Wabtec's Work with Transit Agencies and Amtrak6451 Funding for passenger rail and transit allows operators to make6452critical investments in infrastructure and systems that enable safer6453and more efficient travel throughout the country. Wabtec supplies many6454of the critical components and systems to deliver safe and reliable6455service to passengers, such as locomotive maintenance, PTC,6456dispatching, and components for the fleet like brakes, doors, HVAC, and6457pantographs. Wabtec offers Amtrak and transit agencies proven6458technologies that have been deployed in the United States and globally6459because they deliver a return on investment for funding partners.6460Wabtec's team members manufacture these technologies and components for6461passenger rail in several locations across the country, including in6462South Carolina, upstate New York, and western Pennsylvania.6463 Advancing the Future of Rail6464 Wabtec remains dedicated to delivering innovative transportation6465solutions that support a safe, efficient, and sustainable rail network.6466Wabtec looks forward to continued collaboration with Congress, transit6467agencies, Amtrak, and freight rail operators to drive technological6468advancements and strengthen rail infrastructure. Ongoing investment in6469research and development will ensure that the rail industry remains a6470cornerstone of the U.S. transportation system, driving economic growth6471through advanced manufacturing, job creation, and the expansion of6472efficient transportation networks that strengthen supply chains,6473commerce, and the travel experience.6474 Wabtec appreciates the opportunity to submit this testimony and6475looks forward to working with the Committee to support the future of6476rail transportation in the United States.64776478 Action Plan, ``An Action Plan for Rail Energy and Emissions6479 Innovation,'' U.S. Department of Energy, U.S. Department of6480 Transportation, U.S. Environmental Protection Agency, U.S. Department6481 of Labor, and U.S. Department of Housing and Urban Development,6482 December 2024, Submitted for the Record by Hon. Christopher R. Deluzio6483 The 158-page action plan is retained in committee files and is6484available online at https://www.energy.gov/sites/default/files/2024-12/6485doe-eere-modal-reports_rail-energy-emissions-action-plan.pdf64866487 Appendix64886489 ----------64906491 Questions to Ian Jefferies, President and Chief Executive Officer,6492 Association of American Railroads, from Hon. Troy E. Nehls64936494 Question 1. You have stated that the railroads will meet the6495September 2025 move-off date for the legacy 900 MHz network, as agreed6496upon by the AAR and the FCC. However, to date, the AAR has not6497communicated to the FCC how the railroads plan to accomplish this6498transition. Please provide a detailed explanation of how each AAR6499member railroad is addressing this task, including the specific6500technologies being implemented.6501 Answer. During the 5-year transition period, which encompassed a6502global pandemic and significant supply chain challenges, the railroad6503industry has been diligently progressing towards the completion of its6504900 MHz transition in a manner consistent with the requirements of the6505FCC's 2020 Order. AAR members will meet their deadline of removing six6506legacy channel pairs from its 900 MHz license (WPSF894) on or before6507September 14, 2025. AAR has conveyed this information to the FCC on6508multiple occasions, including most recently in a letter submitted to6509the agency on February 2, 2025.6510 Exiting the legacy 900 MHz channels has been a significant effort,6511requiring the clearing of six legacy paired channels from approximately65129,500 radio locations along nearly 140,000 miles of track spread out6513across the contiguous United States. As of March 10, 2025, the rail6514industry has cleared over 75% of those 9,500 radio locations, with the6515remaining facilities on track to be cleared from legacy frequency use6516on or before the September 14, 2025 deadline.6517 Railroad expenses for this transition were initially estimated at6518$70 million, but total industry costs are expected to exceed $1106519million upon completion. Of this amount, approximately $41 million will6520be spent solely on the clearing effort to accommodate the new paired 36521MHz broadband segment over the five-year transition period. Post-6522transition, additional time, funding, and effort will be required for6523the development and deployment of next-generation rail-safety6524applications and technology.65256526 Question 2. The agreement between the AAR and the FCC requires a6527substantial build-out of the A Block of the 900 MHz spectrum by April65282026. To date, to the best of my knowledge, the AAR has not6529communicated to any stakeholders, including the FCC and this committee,6530how the railroads intend to meet this requirement. Please provide a6531detailed description of how each Class I railroad plans to accomplish6532this build-out, including the intended timelines.6533 Answer. The rail industry has used and will continue to use its 9006534MHz license to support both legacy and future train safety applications6535in a manner consistent with its FCC license authorization. How the6536railroads will continue to utilize their post-transition license will6537vary by railroad depending on their needs, including:6538 1. Continued support of legacy operations retuned during the6539transition effort,6540 2. Capacity needs of other railroad frequency bands on an interim6541transition basis, and6542 3. Future rail-safety applications and deployments.65436544 Currently, the rail industry utilizes its 900 MHz spectrum for6545centralized train control (CTC), Advanced Train Control Systems (ATCS),6546communications at interlockings, and remote monitoring, among other6547critical rail safety applications. The industry continues to evaluate6548and seeks to develop new technologies to enhance rail safety.65496550 Question 3. Moving to the A Block of the 900 MHz spectrum presents6551a unique opportunity for railroads to enhance both safety and6552operational efficiency. Please provide a detailed explanation of the6553specific safety and operational use cases the railroads aim to address6554by transitioning operations to the A Block. Additionally, describe the6555specific technologies and applications that will be implemented to6556leverage the additional capacity provided by the A Block. How do these6557technologies and applications integrate with existing railroad6558operating systems such as Centralized Traffic Control (CTC), Advanced6559Train Control Management Systems (ATCMS), Positive Train Control (PTC),6560and others?6561 Answer. The railroad industry has made significant time and6562financial investments in rail safety innovation, exploring new6563technologies and waveforms to enhance spectral efficiency, address6564network capacity constraints across its narrowband assets, interconnect6565or federate application-specific deployments, and support new safety6566applications. By the end of 2024, AAR had already invested more than $26567million in testing and adapting the recently developed, open IEEE6568802.16t standard to meet the unique operational requirements of the6569freight rail industry. Further research into the 802.16t protocol is6570planned for 2025 and 2026 to evaluate its applicability to railroad6571operations and overall industry needs. However, the railroads' spectrum6572use is not necessarily tied to--or contingent upon--the railroad6573industry's potential adoption of specific technology or protocols. As6574noted in the answer to Question 2, railroads continue to utilize and6575expand their 900 MHz narrowband channels for critical operations,6576including centralized train control (CTC), Advanced Train Control6577Systems (ATCS), communications at interlockings, and remote monitoring,6578among other critical rail safety applications.65796580 Questions to Ian Jefferies, President and Chief Executive Officer,6581 Association of American Railroads, from Hon. Christopher R. Deluzio65826583 Question 1.a. What investments or actions are the Class 1 railroads6584planning to take to reduce their air pollution and greenhouse gas6585emissions?6586 Question 1.b. What investments or actions have the Class 16587railroads made towards electrification and achieving zero emissions?6588 Answer to 1.a. and 1.b. Railroads have deployed new technologies,6589invested in next-generation locomotives, and modernized the existing6590locomotive fleet all with the aim of reducing emissions. Examples of6591these efforts include:6592 Initiated extensive research and development efforts6593aimed at developing more environmentally friendly locomotives,6594including those powered by both batteries and hydrogen;6595 Introduced pioneering technologies, such as highly6596advanced fuel management systems;6597 Modernized thousands of locomotives in the existing fleet6598to improve fuel efficiency and reduce emissions;6599 Installed idling-reduction technologies, such as stop-6600start systems, and expanded the use of distributed power to reduce fuel6601consumption;6602 Introduced zero-emission equipment such as cranes to rail6603yards; and6604 Adopted approved targets with the Science Based Target6605Initiative.66066607 Question 2. Furthermore, how many locomotives do the Class Is6608currently have in operation and how many meet Tier 4 emissions6609standards?6610 Answer. As of 2023, 6.7% of the Class I locomotive fleet is Tier 4,6611over 1,700 locomotives in total.66126613 [all]Witnesses
4 witnesses appeared, with 12 papers on file.
Documents
The committee filed 3 documents for the meeting.