Rail Bill Would Increase Energy Costs, Bureaucracy

It is not unusual to see Democrats blurring the line between the free market and top-down big government policies. It’s the kind of behavior that conservatives in Congress have resisted for generations. That’s why it’s alarming to hear Republicans sounding more like Bernie Sanders or Elizabeth Warren lately.

The legislation in question is the Rail Safety Act, currently under consideration in the Senate. The bill was introduced in the aftermath of the tragic derailment of a freight train in Ohio. Oversight is a crucial congressional responsibility, but the current proposal strays so far from the conservative principles of fiscal responsibility and economic growth that it’s dividing Republicans.

Given the tragic circumstances of the train derailment, it’s understandable that Ohio Republican Senator J.D. Vance and other members of Congress would support efforts to improve rail safety. Unfortunately, the Rail Safety Act is a blunt instrument rather than a scalpel and takes an approach toward the freight rail industry typically associated with progressives than conservatives. The roughly 80-page bill is stuffed with new regulations, government intervention and red tape.

Just as the Inflation Reduction Act was not about reducing inflation, the Rail Safety Act has little to do with improving safety. What proponents are touting as crucial legislation to safeguard the public is a prime example of a regulatory framework that is more about bureaucracy than protecting the public.

Regulations should be rooted in solid research and risk assessment. However, the Rail Safety Act prioritizes political considerations and public perception over data.

Texas Senator Ted Cruz emerged as a voice of reason during a recent hearing in the Senate Commerce, Science and Transportation Committee, where he is the senior Republican member. Senator Cruz referred to the Rail Act as “overly and needlessly prescriptive in certain places” and would allow the Biden administration to “aggressively restrict the movement of American energy products.”

The legislation would impose a significant financial burden on the energy industry. New regulatory mandates will increase the cost of transporting energy. These costs, in turn, will be passed on to consumers, resulting in higher electricity bills, increased fuel prices, and inflated costs for goods and services that rely on rail transportation.

Supporters of the Rail Safety Act argue that the increased costs are a necessary trade-off for improved safety standards. But as Senator Cruz further stated, “the many regulatory requirements of this bill would always carry some risk of harm to our supply chain and increased cost to American consumers. I think that was a trade many of us were willing to make for improved rail safety, but without sufficient guide rails in the hands of overzealous Biden bureaucrats, the new mandates in this bill would make it much easier for this administration to restrict the transportation of coal, of oil, of natural gas, and of ethanol.”

By placing additional financial burdens on the energy industry, the Rail Safety Act risks disrupting progress toward energy affordability and independence. Higher energy costs would disproportionately impact low-income households and small businesses that rely on affordable energy sources to thrive. Moreover, increased fuel prices would impact transportation costs, leading to a ripple effect throughout the economy, driving up the prices of goods and services and undermining economic growth when the country is already facing a potential recession.

Republicans who traditionally champion free-market principles seem to have lost sight of the detrimental economic impact burdensome regulations can have. Instead of supporting legislation that would saddle American businesses and households with higher energy costs, Republicans should advocate for market-based solutions that prioritize safety without compromising economic growth.

Members of Congress should encourage the freight rail industry to invest in innovation that improves safety. Collaborative efforts between industry, regulators and local communities can improve safety without stifling economic growth.

An overregulated industry suppresses innovation and discourages investment, ultimately undermining safety and economic vitality. Republicans should know better.