Chairman Nehls criticizes CARB locomotive regulation during subcommittee hearing

Washington, D.C. - Opening remarks, as prepared, of Railroads, Pipelines, and Hazardous Materials Subcommittee Chairman Troy E. Nehls (R-TX) from today’s hearing entitled “An Examination of the California Air Resources Board’s (CARB) In-Use Locomotive Regulation”:

"At almost 145,000 route miles, the United States has one of the most efficient and comprehensive freight rail systems in the world. It is also one of the safest. The benefits of this system aren’t just measured in miles and tons of freight shipped; they can also be measured in other benefits including reduced fuel consumption and associated emissions reductions. Rail is capable of transporting a ton of freight for more than 450 miles on only one gallon of diesel fuel."

Nehls expressed concerns about the Biden Administration's and California's approach to environmental regulations: "Unfortunately, the Biden Administration and the State of California remain intent on pushing an unwanted, radical Green New Deal agenda on the American people, regardless of the cost and consequences to our economic and national security."

The hearing was called to discuss CARB’s request for authorization for a state-based regulation with potential national implications. "According to CARB’s own analysis," Nehls stated, "the rule would require both BNSF and Union Pacific to replace their entire fleet of locomotives nationwide to comply with the regulation, which will cost billions of dollars and will make freight transportation and the costs of goods drastically more expensive."

Concerns were raised about short line operations' impact by Mr. Olvera in his testimony: "As the United States rail transportation system is intrinsically linked and vital to the safe and efficient movement of freight and passengers in interstate commerce, other rail operators would also be forced to adjust their own operations."

Nehls highlighted several statutes aimed at preserving rail transportation: "For example," he noted, "railroads were the first American industry to be regulated under the Interstate Commerce Act of 1887." He also mentioned other key legislations such as "the Railroad Labor Act of 1927" designed to prevent disruptions due to labor disputes; "the Staggers Rail Act of 1980" enacted during financial struggles within the industry; and finally "the Interstate Commerce Committee Termination Act," which created the Surface Transportation Board.

Addressing CARB's request within federal regulatory frameworks: “Unfortunately,” Nehls remarked that “this CARB request for authorization is an attempt to circumvent statutory requirements.” He further criticized how considering it as a waiver rather than an agency rule bypasses coverage under relevant acts like “the Small Business Regulatory Efficiency Act” or “the Congressional Review Act.”

Furthermore: “CARB’s proposal would fail any meaningful cost-benefit analysis,” particularly noting costs related to non-existent zero-emission locomotives infrastructure.

A coalition comprising railroads shippers union organizations strongly opposes this regulation according To Nehls. Concluding his statement said he looked forward To witnesses’ insights into improving commuter services while maintaining operational efficiencies.