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Clean Track Ahead
Commentary
September 06, 2023 | Locomotives
Clean Track Ahead
Written by Robert H. Cantwell, Contributing Editor
Wabtec diesel engine rebuilds at the Fort Worth remenufacturing plant. Carolina Worrell photo
RAILWAY AGE, SEPTEMBER 2023 ISSUE: The California Air Resources Board (CARB) fired a shot across the freight rail industry’s bow to accelerate the drive to lower locomotive emissions to zero by 2035. In response, the Association of American Railroads (AAR) has filed suit against CARB. Regardless of the outcome, there is now heightened awareness of locomotive emissions. The issue isn’t going away. Instead, the economic impact to implement tighter emission regulations will be in the billions for as far as the eye can see.
Don Graab, of Triangle Brothers Associates and previously Vice President Mechanical of Norfolk Southern, recently authored an excellent article sharing an unfortunate gloomy outlook, “New Locomotive Build Market: Non-Existent for Now?” Within the article, he highlights the two main drivers of locomotive demand: fleet replacement and traffic growth.
There will be a third driver for new locomotive demand: emissions.
On April 27, 2023, CARB issued an “In-Use” Locomotive Regulation laying out a roadmap toward zero emission locomotives in California by 2035. Highlights of the regulation:
• Establishment of a “spending account” that collects fees (taxes) commencing in 2024 on locomotives that operate in California. This will be calculated as a function of their operating use and emission levels. The funds will eventually be used to purchase new low/zero emission locomotives.
• Limit idle time to 30 minutes.
• Prohibit the use of locomotives over the age of 23 years by 2030. This is a very critical feature of the CARB regulation with far reaching impact.
• Mandating Zero Emission (ZE) locomotives to operate exclusively by 2035.
Rail Industry reactions to the CARB regulation have been resoundingly negative: ASLRRA (Class II and III) hates it, while the AAR has gone so far as to sue CARB. Matt Elkott of TD Cowen has speculated on the potential demand spike for new locomotives should this regulation gain traction (pun intended).
{snip}
September 06, 2023 | Locomotives
Clean Track Ahead
Written by Robert H. Cantwell, Contributing Editor
Wabtec diesel engine rebuilds at the Fort Worth remenufacturing plant. Carolina Worrell photo
RAILWAY AGE, SEPTEMBER 2023 ISSUE: The California Air Resources Board (CARB) fired a shot across the freight rail industry’s bow to accelerate the drive to lower locomotive emissions to zero by 2035. In response, the Association of American Railroads (AAR) has filed suit against CARB. Regardless of the outcome, there is now heightened awareness of locomotive emissions. The issue isn’t going away. Instead, the economic impact to implement tighter emission regulations will be in the billions for as far as the eye can see.
Don Graab, of Triangle Brothers Associates and previously Vice President Mechanical of Norfolk Southern, recently authored an excellent article sharing an unfortunate gloomy outlook, “New Locomotive Build Market: Non-Existent for Now?” Within the article, he highlights the two main drivers of locomotive demand: fleet replacement and traffic growth.
There will be a third driver for new locomotive demand: emissions.
On April 27, 2023, CARB issued an “In-Use” Locomotive Regulation laying out a roadmap toward zero emission locomotives in California by 2035. Highlights of the regulation:
• Establishment of a “spending account” that collects fees (taxes) commencing in 2024 on locomotives that operate in California. This will be calculated as a function of their operating use and emission levels. The funds will eventually be used to purchase new low/zero emission locomotives.
• Limit idle time to 30 minutes.
• Prohibit the use of locomotives over the age of 23 years by 2030. This is a very critical feature of the CARB regulation with far reaching impact.
• Mandating Zero Emission (ZE) locomotives to operate exclusively by 2035.
Rail Industry reactions to the CARB regulation have been resoundingly negative: ASLRRA (Class II and III) hates it, while the AAR has gone so far as to sue CARB. Matt Elkott of TD Cowen has speculated on the potential demand spike for new locomotives should this regulation gain traction (pun intended).
{snip}
1 replies
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