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In today’s episode, we're looking back to the East Palestine, Ohio train derailment of last year.
In the aftermath of the derailment, in which 38 railcars derailed and several caught fire, an urgent consensus among government and industry decision makers emerged: changes had to be made to rail safety. We previously touched on the potential changes and reforms in a client alert last year, but today we aim to provide you with a summary of the actions that have since transpired, and what we might expect in the future.
The tragic incident prompted the rail industry and government to actively address rail safety, but the substantial reforms, which were initially anticipated, have been slow to realize. In fact, in the wake of the incident, Norfolk Southern, the company responsible for the line, faced several lawsuits despite its significant investment in the local community.
The government has been proactive, with the Department of Transportation deploying a 'historic' amount of funding to improve rail safety. The introduction of the first ever Railroad Crossing Elimination Program and the Consolidated Rail Infrastructure and Safety Improvements program are examples of this.
The Federal Railroad Administration has also been working towards enhancing safety, conducting several inspection programs and increasing the scope of the High Hazard Flammable Trains route assessment program. Despite these initiatives, there has been a noticeable increase in rail derailments, leading us to wonder if there’s a growing trend that lawmakers need to address.
We saw strong bipartisan support for the Bipartisan Railway Safety Act initially. This legislation aimed to introduce several reforms in the rail industry. However, its progress has been stunted, largely due to resistance from the rail industry and also due to the upcoming 2024 election cycle. Nonetheless, we predict a reinvigorated push for this Act due to the increase in derailments in 2023 and the urgent need for rail safety improvements.
We also anticipate a continued focus from railcar financing sources on ensuring lessees adhere to government-mandated modifications. Alongside this, we predict that the FRA and DOT will continue to pursue rulemakings dealing with train safety, despite expected pushback from the rail industry citing potential high cost and inefficiency.
In conclusion, a year on from the East Palestine derailment, we’ve seen efforts from both private and government entities to improve rail safety. However, the momentum for substantial reform seems to have slowed. Despite this hiatus, we expect, following the conclusion of the 2024 election season, a renewed push to pass comprehensive legislation such as the Bipartisan Railway Safety Act.
For a complete rundown of what's taken place since the derailment, follow our link in the show notes.
Thank you for listening to Womble Perspectives. If you want to learn more about the topics discussed in this episode, please visit The Show Notes, where you can find links to related resources mentioned today. The Show Notes also have more information about our attorneys who provided today's insights, including ways to reach out to them.
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