The Association of American Railroads (AAR) and the American Short Line and Regional Railroad Association (ASLRRA), on behalf of their members, filed suit against the California Air Resources Board (CARB) in the Eastern District of California over the In-Use Locomotive regulation. The CARB rule would limit the useful life of today’s locomotive fleet (over 25,000 locomotives) and mandate their premature replacement with zero-emissions locomotives. This technology has not been sufficiently tested in prototype or operational service and is not commercially available on the market today. In the past, railroads have worked with CARB to further initiatives that have dramatically enhanced air quality surrounding operations in the state and helped pave the way for more sustainable operations across the nation.

“Movement of goods and movement toward greater sustainability is not an either-or proposition; for rail, these are mutually inclusive,” said AAR President and CEO Ian Jefferies. “All American families want and deserve clean air and a competitive economy that can support quality jobs. Rail supports both and has an unwavering commitment to continue to go even further in advancing sustainability.”
California has long been the proving ground where the railroads and CARB have partnered and worked collaboratively to drive significant reductions in emissions. Railroads’ partnerships with CARB in past years have successfully reduced emissions from line haul and yard operations across the state. Initiatives such as zero-emission cranes, yard service vehicles and other technology are at work in yards across California and the nation as anti-idling systems, fuel management systems and the use of renewable fuels are simultaneously reducing locomotive emissions.

Today, the industry continues to pilot emerging technologies such as battery-electric and fuel-cell locomotives that can potentially reduce greenhouse gas emissions and criteria pollutants across the state and nationwide. However, despite billions in investments and an industry-wide push to unlock a zero-emissions solution, a clear technological path has not yet emerged and will require additional testing and development.

“While the urgency to act is real and unquestionable, CARB uses unreasonable, flawed assumptions to support a rule that will not result in emissions reductions,” Jefferies continued. “Railroads have urged CARB to take the proven path of collaboration and build on our shared successes, but those arguments were rejected out of hand. Railroads are working toward reliable, efficient zero-emissions technologies; however, they cannot simply be willed into immediate existence by policymakers.”

Throughout the rulemaking process, railroads, suppliers and other stakeholders made clear the entire industry is working to develop and test zero-emissions technologies and the supporting infrastructure capable of powering the complex, interconnected rail industry. Although significant progress has been made in recent years, these same parties argued before CARB that zero-emissions locomotives are not yet commercially viable. Despite these arguments and the unavailability of qualifying zero-emission locomotives, the CARB rule would begin charging railroads that operate locomotives within the state billions of dollars annually starting when the rule is expected to go into effect in October 2023.

“Short line railroads operating in California provide critical first- and last-mile service on lower density branch lines, keeping smaller shippers in rural areas and small towns connected to the national freight rail network,” said Chuck Baker, President, ASLRRA. “While the spirit behind this regulation is consistent with railroad’s environmental commitment, the rule itself is unworkable and infeasible for short lines – its implementation would literally bankrupt some small business short lines. And the rulemaking does not acknowledge the impact of the elimination of some short line rail service to Californians. For shippers, it eliminates an efficient means to market and threatens the competitiveness of California’s products. For the public, it means the rising cost of products and a modal shift to trucks – a far less safe means of transportation resulting in more fatalities and injuries, more congestion on California’s roads, more burden on the California taxpayer to pay for road damage, and more micro plastics from shredded truck tires in the environment and water supply.”

Similar to the larger railroads, short line railroads are testing hydrogen and battery-electric powered locomotives, installing fuel optimization software and anti-idling technology, testing biodiesel and renewable diesel, and exploring fuel additives to lower emissions, in addition to upgrading locomotives to higher tier levels when practical. However, short lines largely rely on government support for these targeted pilot projects. There is no viable path for a widespread transition to zero-emission short line freight rail operations in the foreseeable future.

In the lawsuit, AAR and ASLRRA, on behalf of their members, argue that CARB lacks the legal authority to promulgate the In-Use Locomotive Rule. Due to the interconnected nature of rail operations and the need for uniform regulatory policies, Congress, the courts, federal regulators, and even CARB itself have long acknowledged that the federal government has exclusive authority to regulate rail operations. As a part of the suit, AAR and ASLRRA filed to preliminarily enjoin implementation and enforcement of the rule while the district court considers the case.