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With rail safety legislation looking “ice cold” in the Senate (Politico, August 1) and in the House, CRC is working with Rep. Rudy Yakym (R-IN) to identify a legislative vehicle to move his proposed legislation that would extend the excess liability implementation timeline. Rep. Yakym has taken up the mantle on this legislative fix that would solve a looming threat to the continued operation of commuter railroads nationwide. Current law only allows for a 30-day implementation period when the federal cap on liability for passenger rail is adjusted; Mr. Yakym’s bill would extend that to 365 days by starting the clock early. Calculating and announcing the new cap one full year before what is provided for under current law would allow all commuter railroads up to 365 days to acquire the additional liability coverage. That’s an essential – but easy and noncontroversial fix. CRC has been warning that the CPI multiplier used to calculate the cap every five years could put the new threshold at $400 million per railroad. In an already tight – and shrinking – insurance market, asking all railroads to acquire an additional $70 million (or more) insurance within a 30-day window is a recipe for failure. Mr. Yakym’s legislation relieves one of the complicating factors that threaten the railroads: time. CRC asks its members to engage with their representatives in the House to ask for support of Mr. Yakym’s bill. It is essential that Members of Congress understand that this simple fix – which has the support of AAR, the Shortlines and the Trial Lawyers – will be essential to uninterrupted railroad operations.
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