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Freight rail plays a crucial role in Minnesota’s economy, facilitating the movement of commodities like minerals, timber, agricultural products and manufactured goods. Efficient and cost-effective rail access gives Minnesota businesses an edge — and our leaders are increasingly looking to rail in their economic development plans.
We saw this in May when the Minnesota Department of Transportation (MnDOT) announced $9.6 million in funding for 11 different rail projects to support local development. From building new track to enhancing the ability of Minnesota businesses to load railcars to fostering a new industrial park, the grants seek to leverage one of our state’s key transportation assets.
All of this could be dramatically impacted by a proposal under consideration at the U.S. Environmental Protection Agency (EPA). The California Air Resources Board (CARB) is seeking EPA authorization for a new rule requiring that all locomotives operating in California would need to be zero-emissions by the year 2035. The impacts of the proposed rule would extend far beyond California because 60% of the nation’s 25,000-strong locomotive fleet passes through that state at some point each year. If the EPA authorizes the California rule, all states, including Minnesota, will experience supply chain disruptions.
The challenge is that commercially viable zero-emission technology doesn’t exist yet for line-haul locomotives. This California rule would pose insurmountable challenges for railroads and the businesses in communities like ours in Lakeville. Because rail service depends heavily on the seamless interconnection of various systems, such a regulation would disrupt the flow of goods and raise costs for shippers, in turn impeding economic growth and jeopardizing jobs.
The freight rail industry directly and indirectly supports thousands of jobs in Minnesota, including direct railroad employees, maintenance workers and the rail suppliers. One study found that freight rail was responsible for a quarter-million Minnesota jobs and $40 billion in state GDP.
Unlike other transportation modes, railroads are almost entirely self-funding, and investments in rail infrastructure and operations contribute to job creation and growth across the Minnesota economy. Transporting goods via Minnesota’s freight rail network also helps alleviate pressure on the state’s roads and highways, reducing congestion, lowering maintenance costs and enhancing road safety. Trains annually replace about 13.3 million truckloads in Minnesota alone.
