Positive Train Control Systems

Score: 21 / 60
35%
F

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What this Rule is Proposing

Under the Federal Railroad Administration’s (FRA) statutory authority, the regulation issued on September 27, 2010, requires Positive Train Control (PTC) systems to be installed on lines specifically required by Congress under the Rail Safety Improvement Act of 2008 (RSIA) and on lines that fail to meet one of two tests: the ‘alternative route test’ and the ‘residual risk test.’ FRA is now proposing to amend the final PTC rule so that railroads will no longer be required to meet the two tests. The FRA agreed to amend the final rule after the Association of American Railroads (AAR) filed a lawsuit.

Given the elimination of these two tests, the FRA estimates that between 14,000 and 7,000 miles—or a mean of 10,000 miles—of track will no longer be required to install PTC systems. Over the first 20 years, the net benefit to society is estimated to be between $1,041,764,269 (at a discount rate of 3%) or $793,856,299 (at a discount rate of 7%) and $581,441,797 (at a discount rate of 3%) or $442,825,061 (at a discount rate of 7%).

The proposal contains no mention of market failure or whether there is a systemic problem associated with certain train lines that carry passengers and PIH materials. Previous rulemaking may have identified various reasons used to justify PTC regulations, but there is no mention made in this economic analysis. There is also no mention that the agency may have made a mistake, as this proposed regulation represents a lessening of a previous government rulemaking. The agency also failed to propose an alternative regulatory approach or to establish measures or goals that could be used to track the regulation's effects in the future.

Under the Federal Railroad Administration’s (FRA) statutory authority, the regulation issued on September 27, 2010, requires Positive Train Control (PTC) systems to be installed on lines specifically required by Congress under the Rail Safety Improvement Act of 2008 (RSIA) and on lines that fail to meet one of two tests: the ‘alternative route test’ and the ‘residual risk test.’ FRA is now proposing to amend the final PTC rule so that railroads will no longer be required to meet the two tests. The FRA agreed to amend the final rule after the Association of American Railroads (AAR) filed a lawsuit. 

Given the elimination of these two tests, the FRA estimates that between 14,000 and 7,000 miles—or a mean of 10,000 miles—of track will no longer be required to install PTC systems. Over the first 20 years, the net benefit to society is estimated to be between $1,041,764,269 (at a discount rate of 3%) or $793,856,299 (at a discount rate of 7%) and $581,441,797 (at a discount rate of 3%) or $442,825,061 (at a discount rate of 7%).

Commentary

The proposal contains no mention of market failure or whether there is a systemic problem associated with certain train lines that carry passengers and PIH materials. Previous rulemaking may have identified various reasons used to justify PTC regulations, but there is no mention made in this economic analysis. There is also no mention that the agency may have made a mistake, as this proposed regulation represents a lessening of a previous government rulemaking. The agency also failed to propose an alternative regulatory approach or to establish measures or goals that could be used to track the regulation's effects in the future.