Transportation Committee

The following policy was passed by the Transportation Standing Committee and approved at the NCSL Spring Forum Business Meeting on April 26, 2008

Rail Capacity

NCSL recognizes that the federal government has a direct interest in promoting the efficient movement of goods throughout the nation. Economic forecasts show that freight volumes will increase dramatically in the years ahead. Given that freight railroads can move one ton of freight 423 miles on just one gallon of fuel, moving freight by rail helps America save fuel, reduces pollution, and eases congestion on the nation’s highways.

NCSL recognizes that without private sector rail investment in infrastructure to accommodate increasing demand for goods movement, freight increases will necessarily be diverted to highways, further congesting and damaging America's already challenged highway infrastructure. State legislators, as policymakers making program and financing decisions about highways and other aspects of the transportation system, are appropriately interested in and concerned about railroads' ability to shoulder their fair share because of freight's impact on the overall transportation system.

A 2007 National Rail Freight Infrastructure Capacity and Investment Study commissioned by the National Surface Transportation Policy and Revenue Study Commission concludes that current and planned capital investment levels in the freight rail system will be insufficient to meet projected freight demand. Anticipated future revenues will be inadequate to allow the railroads to privately finance all capacity improvements required even to maintain current market share of freight traffic.

NCSL therefore encourages Congress to pass legislation that would provide investment tax credits for railroad infrastructure investments that expand capacity. NCSL supports efforts by Congress to design a tax credit program that encourages new capital investment in capacity of a national significance in which railroads would not otherwise invest.

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For further information about the Transportation Committee or any questions about NCSL's policy process, please contact Jeremy Meadows or Paul Snow in NCSL's Washington office.

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