[Senate Report 107-232]
[From the U.S. Government Publishing Office]
Calendar No. 540
107th Congress Report
SENATE
2d Session 107-232
_______________________________________________________________________
SAFE RAILS ACT OF 2001
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1871
August 1, 2002.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-010 WASHINGTON : 2002
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred seventh congress
second session
ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska
Virginia CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon SAM BROWNBACK, Kansas
MAX CLELAND, Georgia GORDON SMITH, Oregon
BARBARA BOXER, California PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri GEORGE ALLEN, Virginia
BILL NELSON, Florida
Kevin D. Kayes, Staff Director
Moses Boyd, Chief Counsel
Gregg Elias, General Counsel
Jeanne Bumpus, Republican Staff Director and General Counsel
Ann Begeman, Republican Deputy Staff Director
Calendar No. 540
107th Congress Report
SENATE
2d Session 107-232
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SAFE RAILS ACT OF 2001
_______
August 1, 2002.--Ordered to be printed
_______
Mr. Hollings, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 1871]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1871) to direct the Secretary
of Transportation to conduct a rail transportation security
risk assessment, and for other purposes, having considered the
same, reports favorably thereon with amendments and recommends
that the bill, as amended, do pass.
PURPOSE OF THE BILL
The purposes of the bill, as reported, are to direct the
Secretary of Transportation to assess security needs associated
with the transportation of hazardous materials by rail and to
provide funding to reimburse freight railroads, eligible
shippers and tank car owners for costs incurred to improve
railroad security on or after September 11, 2001.
BACKGROUND AND NEEDS
The terrorist attacks of September 11, 2001, unquestionably
have changed the paradigm for what constitutes safety in
transportation. As a consequence, attention has shifted from
mainly preventing accidents to protecting people and cargo from
deliberate acts of terrorism. Moreover, as a result of the
targeting of, and specific attacks on the World Trade Center
and the Pentagon, several major steps have been taken to
improve the nation's safety and security overall: a new Office
of Homeland Security has been created; supplemental
appropriations have been approved to fight the war on
terrorism; and U.S. border points of entry have been staffed at
higher levels. Congress is also considering legislation to
establish a Departmental agency dedicated to Homeland Security,
and legislation to improve cargo security.
With respect to transportation specifically, the terrorist
attacks of September 11, 2001, have clearly highlighted the
need for increased security and vulnerability awareness of the
nation's transportation infrastructure. While those attacks
were directed at the aviation system, the nation's other
transportation modes are also vulnerable. In a free and open
society, surface transportation systems such as transit
operations, railroad systems, seaports and vessels, bridges and
tunnels, and vehicles transporting hazardous materials may
become targets for terrorists. The terrorist attacks involving
four commercial airliners demonstrate that security concerns
involve not only passengers, but also the potential risk that
parts of the national transportation system can be used as
weapons. Additionally, because of the essential role of
transportation systems in the movement of goods and people,
terrorist actions have the potential to harm our economic well-
being, as well as public safety. As these risks are weighed in
the wake of last September's terrorist attacks, efforts to
protect the country's transportation infrastructure and to
reduce these vulnerabilities are essential to our national
security interests.
Though perhaps a less obvious target than the nation's air-
passenger system, freight transportation is critical to the
movement of goods. It is generally recognized, however, that it
is difficult to police the nation's rail transportation network
given the miles of rail lines operated throughout the United
States. As a result, the network could be a relatively easy
target, penetrating the heart of major cities and tunneling
beneath sites of national significance.
Possible industrial transportation targets include railroads,
highways, and marine vessels, which carry 800,000 shipments of
hazardous materials each day, and more than 4 billion tons per
year. The tonnage transported over land is equally divided
between truck and rail. Experts note that these shipments of
hazardous materials present significant safety and security
risks. Bridges and tunnels are also major points of
vulnerability to attacks that might both take lives and disrupt
transportation networks.
Since September 11, 2001, railroads have stepped up
inspection of tracks, bridges, tunnels, terminals, fuel depots,
freight cars, locomotives, and communication centers while
railroad police guard critical facilities. In addition, the
railroad industry through the Association of American Railroads
(AAR) undertook a comprehensive evaluation of its security
needs focusing on all aspects of rail transportation. The
railroads have maintained a heightened state of alert since
September 11, 2001, and have worked with national security
offices to address shipments of sensitive materials during
times of increased national security threats.
LEGISLATIVE HISTORY
On October 2, 2001, Senator Breaux chaired a hearing on rail
and maritime security. At the hearing, Rear Admiral James W.
Underwood, Director of the Office of Intelligence and Security
of the Department of Transportation, and Mr. Edward R.
Hamberger, President of the AAR, provided testimony on the
security risks confronting the industry, actions taken by the
railroad industry to address security concerns, and newly
identified needs facing the railroad industry in a post-
September 11 environment.
Senator John D. Rockefeller IV introduced S. 1871 on December
20, 2001. It was read twice and referred to the Committee on
Commerce, Science, and Transportation.
On April 18, 2002, the Committee on Commerce, Science, and
Transportation ordered S. 1871 to be reported favorably with
amendments. The amendments were offered by Senator Rockefeller
to update the short title of the bill and adjust the fiscal
years in which security funds would be authorized to be
appropriated from 2002 and 2003 to 2003 and 2004; an amendment
also corrected an incorrect section reference.
ESTIMATED COSTS
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 13, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1871, the Safe Rails
Act of 2002.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Julie
Middleton.
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 1871--Safe Rails Act of 2002
Summary: S. 1871 would authorize the establishment of a
Rail Security Fund that would be used to make grants to freight
railroads, hazardous materials shippers, and the owners of tank
cars used to transport hazardous materials for security costs
incurred on or after September 11, 2001. In addition, the bill
would authorize the Secretary of Transportation to perform a
risk assessment and security needs analysis of hazardous
materials transportation. Assuming appropriation of the
authorized amounts, CBO estimates that enacting S. 1871 would
cost $185 million over the 2003-2007 period, and an additional
$105 million after 2007. S. 1871 would not affect direct
spending or receipts; therefore, pay-as-you-go procedures would
not apply.
S. 1871 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impacts of S. 1871 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2003 2004 2005 2006 2007
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SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................................ 150 150 0 0 0
Estimated Outlays.................................................. 7 24 40 51 63
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Basis of estimate: For this estimate, CBO assumes that S.
1871 will be enacted early in fiscal year 2003 and the
necessary funds will be appropriated for each year. The bill
would authorize $150 million in both fiscal years 2003 and 2004
for the Rail Security Fund. Outlay estimates are based on
information from the Department of Transportation, as well as
historical spending patterns of similar programs.
In addition, the bill would require the Secretary of
Transportation to report on risk assessment on security needs
within six months of enactment. CBO expects that the report
would cost less than $1 million, subject to the availability of
appropriated funds.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 1871
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal Costs: Julie Middleton;
Impact on State, Local, or Tribal Governments: Susan Sieg
Tompkins; and Impact on the Private Sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
regulatory impact statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Because S. 1871 does not create any new programs, the
legislation will have no additional regulatory impact, and will
result in no additional reporting requirements. The legislation
will have no further effect on the number or types of
individuals and businesses regulated, the economic impact of
such regulation, or the personal privacy of affected
individuals. Any impact on paperwork would be dependent on
application procedures established by the Secretary of
Transportation.
SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section would entitle the Bill as ``The Safe Rails Act
of 2002.''
Section 2. Rail Transportation Security Risk Assessment
Subsection (a) would require the Secretary of Transportation
to conduct a comprehensive vulnerability and security needs
analysis of hazardous materials transportation by rail. The
Secretary would be required to make recommendations for
improving the security of rail infrastructure in areas
identified as posing a significant risk to human health, public
safety, and interstate commerce, and for dealing with the
immediate and long-term economic impact of implementing the
measures required to address those risks.
Subsection (b) would require that, in conducting the required
assessments, the Secretary consult with and use materials
prepared by the railroad, chemical, and tank car leasing
industries, as well as any relevant security analyses or
assessments prepared by Federal or State law enforcement,
public safety, or regulatory agencies.
Subsection (c) would require that within 180 days of
enactment of the Act, the Secretary issue a report to the
Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Transportation and
Infrastructure, without compromising national security. The
report will include proposals the Secretary feels are
appropriate for Federal financial, technological, or research
and development assistance in securing rail infrastructure.
Subsection (d) would provide that, with the exceptions of the
required report to Congress and instances when the limited
disclosure of certain information is required to protect human
health or public safety, the Secretary may keep the assessment
and analysis confidential. Such confidential information will
not be subject to disclosure under 5 U.S.C. 552 (the Freedom of
Information Act).
Section 3. Rail Security Fund
Subsection (a) would require that the Secretary of the
Treasury establish a Rail Security Fund account in the Treasury
into which the Secretary of Transportation would deposit
amounts appropriated for the Rail Security Fund.
Subsection (b) would authorize the Rail Security Fund to be
appropriated $150,000,000 for each of fiscal years 2003 and
2004. Amounts would remain available until expended.
Subsection (c) would prohibit grants in excess of
$100,000,000 to railroads annually unless the Secretary's risk
assessment determines that critical rail transportation
security needs require reimbursement above that amount.
Subsection (d) would provide that the fund is available for
the Secretary of Transportation to make grants to freight
railroads, hazardous materials shippers, or owners of tank cars
used in the transportation of hazardous materials for full or
partial reimbursement of the costs incurred on or after
September 11, 2001, to prevent or respond to acts of terrorism,
sabotage, or other security threats. Under this subsection,
activities eligible for full or partial reimbursement would
include: unanticipated rerouting or switching of trains
carrying hazardous materials to different routes or locations;
hiring additional manpower necessary for security; purchasing
equipment or training needed to enhance hazardous materials
emergency response operations; improvements in and securing of
critical communications; developing and deploying secure global
positioning satellite tracking systems on tank cars carrying
hazardous materials; investments in physical hardening of rail
infrastructure; tank car modifications; improved technology for
sealing rail cars; and research and development supporting
enhanced security.
Subsection (e) would require the Secretary of Transportation
to adopt necessary procedures, including audits, to ensure that
grants are used for their intended purposes.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, the Committee states that the bill as
reported would make no change to existing law.