performance based regulations

Trump and the Rail Industry Had a Great First Year Together

Oil tank cars

The election of Donald Trump was a big win for the oil and rail industries. Shortly after the election, Edward Hamberger, CEO of the trade group the Association of American Railroads, addressed a conference in New York City, noting that “the policy landscape in Washington, D.C., dramatically shifted on Election Day.”

The trade publication Railway Age also reported Hamberger saying that “Washington leaders can be powerful change agents in fixing a broken regulatory system.”

Of course when the top rail lobbyist talks about “fixing” a broken regulatory system, what he means is moving to a system where the rail industry regulates itself — which is why the rail industry is so fond of President Trump. And why the American public should worry.

Federal Railroad Administration Nominee Plans to Push Rail Industry to Self-Regulate

Train in Alaska

Ronald Batory — President Trump’s nominee to lead the Federal Railroad Administration (FRA) — will be pushing for the controversial self-regulatory approach to safety known as “performance-based regulations,” according to his July 26 statement for the U.S. Senate Committee on Commerce, Science and Transportation. Shifting toward this self-regulatory approach could have major implications for the safety of trains carrying potentially dangerous cargo, including oil and ethanol.

Senator Backed by Rail Companies Introduces New Bill That Would De-Regulate Rail Industry

Locomotive

A new bill by one of the rail industry’s favorite senators looks to change how the industry is regulated to allow “market forces to improve rail safety.” In June, Sen. Deb Fischer (R-Neb.), who happens to chair the Senate Surface Transportation Subcommittee, introduced the Railroad Advancement of Innovation and Leadership with Safety (RAILS) Act.

In essence, the bill seeks to shift the rail industry toward a self-regulatory — and more difficult to enforce — approach to safety known as “performance-based regulation,” an effort first reported by DeSmog after a Congressional hearing in May.

Trump’s New Era of Industry Self-Regulation Begins for Oil by Rail

Crossing train tracks

In case you were wondering how industry-friendly the federal government is becoming, look no futher than Representative Jeff Denham (R-CA), chair of the Congressional Subcommittee on Railroads, Pipelines, and Hazardous Materials. He recently opened a hearing on pipeline and rail regulations with the following sentiment: 

Regulation has grown significantly in recent years and so we are here to ask stakeholders about the impact and burden of regulation on their businesses and ways to ease the burden without compromising safety.” 

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