FRA launches streamlined settlement negotiation process

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The Federal Railroad Administration (FRA) announced it would implement a new settlement negotiation process aimed at collecting a record $15.4 million in civil penalties issued to Class I railroads.

The streamlined process centers on meaningful discussions in most cases, while continuing to collect data to improve railroad safety, officials said. Under the new process, Class I railroads, like Amtrak, BNSF, CN, CPKC, CSX, NS and UP, may receive a civil penalty when inspectors identify issues like defective wheels. The penalties may be lessened when repairs are made and discussions are help with employees about how to prevent a recurrence of the issue, officials said.

The agency said the process will reinforce safety as a top priority by focusing on corrections, improved practices and more risk mitigation.

“Under (U.S. Transportation) Secretary (Sean) Duffy’s leadership, safety is our number one priority,” FRA Administrator David Fink said. “Our new civil penalty process is already delivering results – forcing Class I railroads to step up, improve safety, and address immediately noncompliance. I am grateful to our dedicated safety inspectors who are right there with the railroad workforce in the field.”

The agency said the settlement conferences provide valuable opportunities for regulators and railroads and help the two sides of the coin work together toward safety improvement. The discussions would help achieve resolution to safety concerns while supporting railroad employees, he said.

Civil penalties are just one of the tools in rails safety inspector’s arsenal, officials said and are reserved for severe instances of noncompliance. The penalties are based on specific guidelines outlined in the Code of Federal Regulations.