U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–010

" SENATE ! 107TH CONGRESS

2d Session 

REPORT

2002

107–232

Calendar No. 540

SAFE RAILS ACT OF 2001

REPORT

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

on

S. 1871

AUGUST 1, 2002.—Ordered to be printed 


congress.#13
(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED SEVENTH CONGRESS

SECOND SESSION

ERNEST F. HOLLINGS, South Carolina, Chairman 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

MAX CLELAND, Georgia 

BARBARA BOXER, California 

JOHN EDWARDS, North Carolina 

JEAN CARNAHAN, Missouri 

BILL NELSON, Florida 

JOHN MCCAIN, Arizona 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

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

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 

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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 adVerDate Aug 2, 2002 02:41 Aug 07, 2002 Jkt 099010 PO 00010 Frm 00004 Fmt 6659 Sfmt 6601 E:\HR\OC\SR232.XXX pfrm12 PsN: SR232
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dress 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).

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By fiscal year, in millions of dollars—

2003 2004 2005 2006 2007

SPENDING SUBJECT TO APPROPRIATION

Authorization Level ........................................................................................ 150 150 0 0 0

Estimated Outlays ......................................................................................... 7 24 40 51 63

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. 

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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. 

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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.

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