CEI Co-Leads Coalition Letter on Railroad Safety Act

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Dear Members of Congress:

The undersigned individuals write to express concerns with the Railway Safety Act (S. 576). Safety advancement in any mode of transportation, including U.S. freight railroading, is critical; but public policy should be written to address specific problems. It should be rooted in data and pass the muster of cost-benefit analysis.

While the legislation that cleared the Senate Commerce Committee is better than the original bill introduced in March, it still includes far too many prescriptive policies, unduly favors organized labor, and would unduly empower unelected bureaucrats. This is why it garnered the support of just two Republicans on the Committee.

Sen. Ted Cruz, ranking member of the Commerce Committee, and energy experts have also outlined how the bill would disrupt domestic energy production, while the agriculture, propane, and intermodal transportation industries, to name a few, remain opposed.

The most glaring issues with the legislation include the following:

  • The bill seeks to mandate that large railroads maintain two-person crews – the current standard set by voluntary collective bargaining – in perpetuity. Public policy groups have opposed this measure, also being pursued by the Biden administration’s Department of Transportation, because it is unneeded, ignores technology backstops, and would lessen competition. Two may seem better than one, and perhaps two will be the voluntary standard into the future, but lawmakers should not cement this into law, especially not in reaction to a February train derailment that included a three-member crew. Railroads should have the flexibility to adjust their operations in the future. This measure is likely why Sen. John Thune (R-SD) called the bill a “stalking horse for onerous regulatory mandates and union giveaways.”
  • The largest section of the bill deals with the movement of hazardous materials, triggering an unfathomable number of future rulemakings pertaining to issues such as train size. As currently written, these rulemakings would avoid cost-benefit analysis (CBA). Conservatives have long championed the need for CBA because no human activity is 100% safe 100% of the time. Every activity involves some form of CBA. New railroad safety laws should certainly require them, including a survey of the likely risks created as railroads and shippers alter procedures to mitigate the cost of the new rules.
  • Lastly, the bill also includes prescriptions on the use of trackside detectors, which exist today not because of regulatory wisdom but market innovation. Rather than dictate expansion of these proven technologies, government policies should seek to incentivize their evolution and adoption. Time and time again, when the federal government locks into a single technology the public suffers as industry lacks the flexibility or incentive to pursue next-generation technologies.

Railroads are crucial for the efficient running of the nation’s supply chain. That makes it all the more important that Congress pursue wise, cost-effective policies that benefit the entire nation, as opposed to ones that primarily aid a few well-placed special interests. Congress needs to avoid rushed policymaking that caters to special interests rather than addressing the issues at hand in a thoughtful, cost-effective manner.

Sincerely,

Iain Murray

Senior Fellow
Competitive Enterprise Institute

Sean Higgins

Research Fellow
Competitive Enterprise Institute

Paul J. Gessing

President
Rio Grande Foundation

James L. Martin

Founder/Chairman
60 Plus Association

John Shelton

Policy Advisor
Advancing American Freedom

Saul Anuzis

President
American Association of Senior Citizens

Steve Pociask

President and CEO
American Consumer Institute

Richard Manning

President
Americans for Limited Government

Brent Gardner

Chief Government Affairs Officer
Americans for Prosperity

John Hart

Executive Director
C3 Action (Conservative Coalition for Climate Solutions Action)

Garrett Ballengee 

Executive Director 
Cardinal Institute for West Virginia Policy

Ryan Ellis

President
Center for a Free Economy

Timothy H. Lee

Senior Vice President of Legal and Public Affairs
Center for Individual Freedom

Roslyn Layton

Co-Founder
China Tech Threat

Matthew Kandrach

President
Consumer Action for a Strong Economy

Nathan A. Benefield

Senior Vice President
Commonwealth Foundation

Hon. Kenneth “Ken” Cuccinelli II

Former VA Attorney General,
Former Acting Deputy Secretary of Homeland Security

Benjamin R. Dierker

Executive Director
Alliance for Innovation and Infrastructure*

Steve Forbes

Chairman and Editor-in-Chief
Forbes Media

Adam Brandon

President
FreedomWorks

George Landrith

President
Frontiers of Freedom

Cameron Sholty

Executive Director
Heartland Impact

James Taylor

President
Heartland Institute

David R. Henderson

Research Fellow
Hoover Institution, Stanford University

Tom Giovanetti

President
Institute for Policy Innovation

Andrew Langer 

Founder
Institute for Regulatory Analysis and Engagement

Ike Brannon

Senior Fellow
Jack Kemp Foundation

Alfredo Ortiz

President & CEO
Job Creators Network

Brett Healy

President
The John K. MacIver Institute for Public Policy 

Drew Cline

President
Josiah Bartlett
Center for Public Policy (NH)

Patrick McLaughlin

Senior Research Fellow, Dir. of Policy Analytics
Mercatus Center at George Mason University*

Matthew Gagnon

CEO
Maine Policy Institute

Charles Sauer

President
Market Institute

Douglas Carswell

President and CEO
Mississippi Center for Public Policy

Brandon Arnold

Executive Vice President
National Taxpayers Union

Marcos Lopez

Outreach & Coalitions Director
Nevada Policy Research Institute  

Daniel J. Erspamer

CEO
Pelican Institute for Public Policy

Karen Kerrigan

President & CEO
Small Business & Entrepreneurship Council

David Williams

President
Taxpayers Protection Alliance

Mike Gallagher

Vice President
Washington Policy Center

Carol Platt Liebau

President
Yankee Institute

*Affiliation for Identification Purposes Only