Newly Proposed Railroad Safety Enhancement Act: What You Need to Know

In July 2024, the House of Representatives introduced the Railroad Safety Enhancement Act (H.R. 8996), a proposed bipartisan legislation that would add resources and regulations for new safety mandates for rail shippers.

A similar version of this bill, the Railway Safety Act (S.576), was first proposed by the Senate in 2023. It outlines key initiatives for improving safety measures and redundancies for railcars deemed high-hazard to minimize rail accidents and injuries.

The revised, House-proposed legislation was issued in response to the NTSB final report of the derailment in East Palestine, Ohio in 2023. It builds upon the previous Senate bill and focuses on railcars loaded with hazardous materials such as flammable liquids, radioactive or toxic waste, or explosive material.

What Does This Mean for Rail Shippers?

The proposed bill includes several key additions to last year’s proposed Railway Safety Act, including:

• All Class I freight trains will require a minimum of two crew members.
• An additional $1 billion for the Railroad Grade Crossing Elimination Program.
• $100 million annually for an FRA grant program to install railcar telematics systems and gateway devices on railcars with a priority on Hazmat tank cars.
• All Class I railroads must join the Federal Railroad Administration’s Confidential Close Call Reporting System for at least two years.
• States must notify first responders of the AskRail app – part of a pilot program to proactively fix app connectivity problems throughout the rail network.
• Increases penalties and fines for hazmat violations.

Read the full H.R. 8996 bill here.

H.R. 8996 Has Agreement from Both Political Parties

While Congress is notorious for not moving quickly or aligning across party lines, H.R. 8996 is a bipartisan bill – sponsored by Rep. Troy Nehls (R-Texas, chair of the Railroads, Pipelines, and Hazardous Materials Committee) and Rep. Seth Moulton (D-Massachusetts).

“Freight rail is the most efficient and safest way to transport goods across our country, and it provides over 160,000 American jobs, but these improvements are overdue,” Moulton said. “This bill would ensure that this $80 billion industry operates more safely and efficiently for years to come.”

Should the bill pass, rail shippers can expect significantly enhanced safety measures (on- and off-rail), additional maintenance and security protocols, and a boost in associated funding.

Additionally, it introduces new grant programs for railcar telematics systems such as RailPulse for improved visibility and requires all Class I railroads to submit emergency response plans for transporting hazardous materials. This also includes regular reviews and audits of those emergency plans with an emphasis on communication improvements to ensure timely responses to incidents.

DOT 111 Tanks in Flammable Service Would Phase Out in 2029

The bill also provides an earlier phase-out date for DOT 111 tank cars, set at May 1, 2029. This means companies who operate or lease DOT 111 cars will need alternate tank car options – such as DOT 117 tanks – well before that date.

If you have questions about how the new bill might affect your rail operation or its impact on railcar leasing, please reach out to our team.