“Zero Emission” Could Lead to Railway Freight Exit in California Replaced by Trucks.

In the wake of California regulations requiring trains passing through the state to achieve zero emissions standards gradually, the U.S. railway transportation industry has expressed concerns that the policy introduced by California in May 2023 might lead to increased costs and make it difficult to achieve emission targets. This could potentially result in short-line railway companies exiting the California market, with heavy-duty truck freight taking over.

On June 13, the United States House Committee on Science, Space, and Technology held a hearing under the theme “Environmentalism Off the Rails: How CARB Will Cripple the National Rail Network”. Chuck Baker, the president of the American Short Line and Regional Railroad Association (ASLRRA), testified during the hearing that the new regulations by the California Air Resources Board (CARB) regarding railway locomotives would have significant consequences. It would force railway companies to allocate substantial funds to purchase low and zero-emission locomotives. However, these locomotives are not yet commercially available on a large scale and small railway companies cannot afford the replacement costs.

“If these businesses cannot pass on the costs to their customers, some of them may be eliminated,” Baker stated. He pointed out that CARB acknowledges the impacts of the new regulations, but fails to recognize the extensive negative national effects on shippers, the economy (especially small towns and rural areas in the U.S.), and the American public. With railway freight being replaced, tens of thousands or even hundreds of thousands of heavy-duty trucks could increase on the national highways.

ASLRRA, founded in 1913, represents approximately 550 small railway transportation companies across the U.S., advocating for the interests of 603 short-line railways.

Baker also raised two crucial objections: firstly, no state government should regulate the national rail network, and secondly, California’s new regulations are arbitrary and capricious, demanding the railway industry to overturn its financial foundation and operational practices by adopting technologies that are still in the early stages and not commercially viable for the demanding work in various harsh environments.

During the hearing, Alan Abbs, a legislative official from the San Francisco Bay Area Air Quality Management District, countered the railway association’s perspective by stating that the new regulations require a gradual reduction in emissions over the next 30 years while allowing the use of existing technologies and the development of new and more advanced zero-emission technologies. He also mentioned that such railway locomotives are already available for purchase.

“Zero-emission railway transport is not a novelty, with electrified railways having over a hundred years of history, widely used worldwide, with nearly every operating locomotive now being driven by all-electric motors. In addition to using diesel generators, locomotives can be powered by other means,” said Abbs. He emphasized that previous concerns from the business sector regarding costs, timetables, and operational losses have not materialized, and California has tightened environmental laws to make the state cleaner, striving to become the 5th largest energy state in the nation.

Through written testimonies, the railway association also highlighted that the new rules would force shippers to shut down or workers to be laid off, disrupting seamless transportation of goods between interstate railways. Additionally, it would lead to higher transportation costs for customers and greater expenses for ordinary consumers. Replacing short-line railway transport with a large number of heavy-duty trucks could result in more traffic congestion, accidents, deaths, road damage, and increased maintenance.

The testimonies outlined that in alignment with the California Air Resources Board on the perspective of “continually reducing emissions”, short-line railways are investing substantial funds to improve their already low environmental impact, accounting for just 1.8% of the transportation system’s greenhouse gas emissions and approximately 0.6% of the national greenhouse gas emissions.

The new regulations by the California Air Resources Board entail:

– Passenger, industrial, and switching locomotives manufactured after 2030 must operate in California with zero emissions, with a deadline for mainline freight locomotives by 2035; locomotives with less than a 23-year-old until 2030 are allowed.
– From 2024 onwards, locomotives without automatic shutdown devices are not allowed to idle for more than 30 minutes unless maintenance crew require heating or air conditioning, or to maintain air brake pressure, etc.
– Starting from 2024, railway operators in California are required to establish a trust fund for the purchase or lease of low/zero-emission locomotives, with more funds required for locomotives with higher emission levels.
– California has set four stages of emission standards (2030, 2035, 2042, and 2047), requiring all railway locomotive equipment passing through California to achieve zero emissions by 2047.

At the time, CARB Chairman Liane Randolph mentioned in a press release that the emissions from a single train exceed those of 400 heavy-duty trucks, emphasizing that locomotives are crucial members of California’s transportation network and it is time for them to become part of the solution to reduce pollution and clean the air.

Subsequently, the Association of American Railroads stated in a declaration that there is currently no clear path to achieve zero-emission locomotives. “The primary technologies replacing diesel – battery electric and hydrogen fuel cell locomotives are still in their early stages, being enforced regulations ignore the complexity and interconnectedness of railway operations, as well as the current status of zero-emission locomotive technology and infrastructure.”

ASLRRA at that time referred to this decision as extremely, “sudden, dramatic, unrealistic, and counterproductive in forcing locomotives to make changes.”

Railway locomotives are not the only industry impacted as CARB also banned the sale of new diesel trucks and mandated all trucks to achieve zero emissions by 2042. Chris Spear, the CEO of the American Trucking Associations, at the time said that California had set “unrealistic goals and impractical timetables, which will lead to higher prices for goods and services in the state, reducing consumer choices”.