Opinion | Rail rule would take Michigan backward

I recently traveled from Lansing to another important capital, Washington D.C., to discuss rail infrastructure with Michigan’s congressional delegation — namely the critical role railroads play in propelling our state economy and its continued growth.

Rail connections attract and sustain business. They help expand our communities while mitigating increased traffic from heavy trucks. When freight travels by rail, it travels over infrastructure that is, for the most part, paid for by the railroads themselves rather than motorists. Not to mention the efficiency and environmental advantages of steel wheels on steel rail.

“Rail systems are key components for Michigan’s economy, helping to move agricultural products, automobiles, consumer goods, and building materials,” said Michigan State Transportation Director Bradley Wieferich on a round of grants the state awarded to 10 regional and short line railroads in March. It’s just good sense to back the projects and policies that will enhance rail efficiency.

But if some regulators in California get their way, much of our success on rail — even here in Michigan — could be eroded. The California Air Resources Board (CARB) has put forward a proposal to mandate "zero emissions" locomotives in California by 2035, despite the current lack of commercially viable technology. And if CARB receives the waiver it’s requesting from the Environmental Protection Agency (EPA), the locomotive rule would take effect in California and also be open for adoption by other states.

The stakes for our logistics sector are high. Without a suitable replacement, some 25,000 locomotives that are currently in use would be rendered obsolete. Supply chains, which don’t have state boundaries, would slow across the country as rail operators struggle to comply with the mandate. After all, some 65% of the nation’s locomotive fleet travel through California annually. 

Michigan itself, as a vital spur between the East-West and North-South flow of goods, would be disproportionately disadvantaged. We should also be concerned that this rule would negatively impact cross-border trade with Canada, which supports millions of U.S. jobs. According to USDOT, over 11% of this trade, or $214 billion, is facilitated by rail. 

Over 200 state business and industry groups, including the Michigan Aggregates Association, Michigan Chamber, and Michigan Corn Growers Association, recently signed a letter urging the EPA to reject CARB’s waiver request. As they wrote, “It is difficult to see how the CARB regulation, which would undermine freight rail’s efficiencies and could divert rail freight to highways, is in the national interest.” 

The 29 privately owned, operated, and maintained freight railroads in Michigan move about 74 million tons of freight every year (the equivalent of over 4.1 million heavy trucks). Slower rail service would not only raise costs but also push freight to our roads as businesses seek viable ways to move what they need to move. 

In fact, adoption of the CARB regulation could lead to more carbon emissions over time. Rail is the most fuel-efficient way to move freight over land, cutting down on emissions by 75% over trucking. Most of our railroads are also smaller locally owned operations that could be forced out of business by the rule’s compliance costs, which include state monitored “spending accounts” for future zero-emissions equipment. CARB itself noted that about 20% of California’s short line railroads would face bankruptcy, cutting some rural communities off from vital rail service entirely.  

When I visited with members of Michigan’s congressional delegation on Railroad Day, I was encouraged by many of the conversations I had. Most of our leaders appreciate the efficiencies afforded by rail and how these connections bring with them sustainable economic growth. We cannot pledge to support rail while also passing misguided policy that will erode its ability to function.

Allowing California and other states to circumvent interstate commerce and create their own rules would undermine the rail network Michigan and the entire country rely on.