Floor Statement of The Honorable James L. Oberstar
on the “H.R. 6707, the Taking Responsible Action for Community Safety Act”
Madam Speaker, I rise in strong support of H.R. 6707, the Taking Responsible Action for Community Safety Act.
The bill will ensure that the Surface Transportation Board (STB) has the legal authority and policy direction to deal with railroad mergers that have the potential to cause serious safety, environmental, and other quality of life problems for affected communities.
A recently filed merger application by the Canadian National Railway (CN) has called attention to the need for enhancing the authority of the STB. CN is seeking the Board’s approval to acquire control of the Elgin, Joliet, and Eastern Railway Company (EJ&E). If the Board approves CN’s application, the railroad will divert traffic on three of its lines running through Chicago, Illinois, onto the EJ&E’s main line, a 198-mile line that encircles the City of Chicago. CN contends that this will lead to faster transit times, better service, decreased rail traffic in the City of Chicago, and improved flow of rail traffic in the region.
Opponents of the transaction contend that it will have serious safety and environmental consequences on the 50 communities living along the EJ&E line as a result of increased train traffic (an increase of 15 to 24 trains per day), while proponents of the transaction maintain that it will benefit communities along CN’s current lines to and from Chicago through reduced train traffic.
The communities impacted by the proposed acquisition have raised significant concerns related to public safety, grade crossing safety, hazardous materials transportation safety, noise, and economic job loss. For example, the EJ&E line includes 133 at-grade crossings that intersect with existing roadways. Increased traffic on the line will adversely impact motorist safety, and emergency response time and vehicle access, which are growing concerns for many communities across the nation.
Under current law, the STB has very limited power to consider these concerns. There is a provision in STB’s basic law which appears to require STB to approve all mergers and consolidations between a Class I railroad (such as CN) and a Class II railroad (such as EJ&E) unless the Board finds that the merger is likely to cause a substantial lessening of competition, create a monopoly, or restrain trade in freight surface transportation in any region of the United States; and that the anticompetitive effects of the transaction outweigh the public interest in meeting significant transportation needs.
Critics of this legislation claim that the Board does have the authority to disapprove such transactions on environmental grounds. However, the STB has never denied a transaction involving a Class I railroad and a Class II or Class III railroad due to environmental or safety concerns. Further, Chairman Nottingham acknowledged at a recent Committee hearing that the Board’s authority to disapprove a transaction on general public interest grounds was “a legal issue of first impression that has not been addressed by the Board or any court.”
While the Board may have authority to impose conditions to address community concerns on any approval of a merger between a Class I railroad and Class II railroad, the Board has decided to significantly limit the types of conditions it will impose. Under its regulations, the STB will not impose conditions that may “undermine or defeat” a transaction, even if those conditions are critical to ensuring the safety and health of communities.
H.R. 6707 will enable the STB to thoroughly consider the public interest when evaluating a proposed railroad merger or consolidation that includes at least one Class I railroad.
Specifically, the bill requires the STB to consider, in a merger or consolidation proceeding, the safety and environmental effects of the proposed transaction, including the effects on local communities, such as public safety, grade crossing safety, hazardous materials transportation safety, emergency response time, noise, and socioeconomic impacts. It also requires the STB to consider the effects of the proposed transaction on intercity passenger rail and commuter rail.
The bill prohibits the STB from approving or authorizing a merger or consolidation if it finds that the transaction is inconsistent with the public interest because the transaction’s impacts on safety and on all the affected communities outweigh the transaction’s benefits. Further, the bill authorizes the STB to impose conditions to mitigate the effects of the transaction on local communities when such conditions are in the public interest.
With these new powers and policy directives, the STB will have greatly enhanced ability to protect local communities against the adverse effects of rail mergers. I urge my colleagues to join me in supporting this important legislation.
###
