(The following story by Priyanka Dayal appeared on the Telegram & Gazette website on June 12.)
WASHINGTON, D.C. — Members of Congress have asked the Government Accountability Office, the investigative arm of Congress, to conduct a study on how much railroad liability agreements cost taxpayers across the country.
The proposed study comes at a time when officials in Massachusetts are trying to speed up negotiations to purchase sections of track from railroad company CSX Corp. The 22.8-mile track from Worcester to Framingham is one of the few pieces of railroad that is used for commuter service, but is not owned by the state. Politicians say acquiring that track is the best way to increase commuter service to the area.
Negotiations have been hindered by CSX’s insistence on maintaining a no-fault liability policy on the track, even after the state purchases it. That means CSX and the state would each pay for damages to what they own, regardless of fault. Politicians say such a policy is risky and unfair, because it could force taxpayers to fork over millions of dollars for accidents caused by CSX’s negligence.
CSX officials say that kind of policy is an industry standard, and that fault-based insurance leads to finger-pointing and superfluous lawsuits.
This week U.S. Reps. James P. McGovern, D-Worcester; John W. Olver, D-Amherst; Kathy Castor, D-Fla.; and James L. Oberstar, D-Minn., sent a letter to GAO’s comptroller general, asking his office to examine liability and indemnity provisions of existing and pending commuter-freight rail agreements, and to study the effects those agreements have on federal and state governments.
Congressmen want the study to include liability agreements involving all commuter rail authorities, Amtrak and freight railroads. They are asking for the study to be completed by the end of the year. The liability issue has stalled efforts to increase the number of commuter trains on the track.
Mr. McGovern and others have said no-fault insurance agreements between rail companies and Amtrak have soaked up too many tax dollars.
“We’re trying to get accurate numbers about how much these no-fault liability deals are costing the taxpayers,” said Michael D. Mershon, spokesman for Mr. McGovern. “There are significant concerns that these agreements cost taxpayers millions and millions of dollars.”
The GAO, widely regarded as an independent and accurate source of information, conducts about 1,000 reports or testimonies each year. The office receives about 12 requests for studies every week. GAO spokesman Chuck Young said the office has received the request for the railroad liability study and will decide in a few weeks if it will conduct the study.
The request is signed by Mr. Oberstar, who wields power in the House as chairman of the Transportation and Infrastructure Committee, so it could be bumped up the list of studies being considered by GAO, Mr. Mershon said.
Sen. John F. Kerry, D-Mass., also has been vocal in his opposition to the no-fault liability policies favored by CSX and other rail companies. Last month he called a meeting during which elected officials and rail officials again attempted to hash out a compromise on liability.
The contentious issue also has made headlines in Florida, where state lawmakers were unwilling to sign a deal with CSX because of similar liability concerns.