DM&E loan would be a bad investment

The federal government should support alternative fuels, not antiquated coal technology

by Ruth Johnson

(The author is a former Minnesota state legislator representing St. Peter, North Mankato, Nicollet County and parts of Sibley County. This article was originally published in the Mankato Free Press.)

As a former legislator from the area that will be negatively affected should the DM&E Railroad loan be approved and the railroad expansion become reality, I would like to share my opposition to this proposal with the public, as I have already done with several Washington officials. Just last Thanksgiving we were reminded of the potential harm of accidental toxic chemical release, when ethanol tankers derailed not far from the Minnesota River. What if the tankers had been carrying anhydrous ammonia, which, as they court support from ag producers, DM&E officials have suggested would be increasingly likely?

I have long had a variety of concerns and questions about the DM&E expansion, and frankly, since 1998 I have heard nothing that convinces me of its necessity or its safety. On the contrary, the impression continues to grow that this is a bailout for a weak railroad, one likely to be sold to the highest bidder if this loan goes through. The fact that the free market did not leap at the opportunity to support this expansion speaks volumes about the line's credibility. Why then, should taxpayers be asked to foot the bill?

As up to 34 DM&E trains slice through southern Minnesota every day, their presence will be highly disruptive, with traffic delays at crossings, increased numbers of whistles, and increased air-borne particulates and toxics along the way. Further, I fear that farmer support for the expansion as a way to reduce freight costs will be betrayed once the coal cars start moving night and day. Will there really be space for corn and soybean hoppers as promised? Are there written assurances, similar to the mitigation compacts with affected cities, that the 100+ car unit-trains will stop on their way to Chicago and pick up grain and ethanol? And what happens to those promises if the railroad is sold to the highest bidder if the loan goes through, as some expect?

Using vast amounts of diesel fuel to move soft coal to burn for electricity will significantly increase pollution along the railroad line as well as in the areas where the intended (and out of date) coal plants are located. The 30% moisture content of the coal means in effect that 30 of those 100 coal cars are hauling water. It would be far better to invest taxpayer dollars in research and development of renewable fuel and energy. Better yet, we should all practice much more conservation in our personal, institutional, and business use of fuel and energy, whether from national or foreign sources.

Last, but certainly not least, are the safety risks this line poses. DM&E has an abysmal safety record, and the thought of rail cars carrying dust-laden coal through communities in southern Minnesota on a railroad with such a history is very disturbing. Oddly, after receiving $233 million from the Federal Railroad Administration for safety improvements several years ago, the DM&E safety record got worse. In fact, the FRA recently revealed that in 2003, when DM&E received the $233 million loan, its accident rate was 6.8 times the rail industry average. Two years later, in 2005, the DM&E accident rate was 7.8 times the rail industry average. What, exactly, did they do with those tax dollars that might encourage skeptics about their use of a $2.3 billion dollar loan snuck into a Senate appropriations bill in the dead of night by their former lobbyist now South Dakota Senator John Thune?

I am heartened that Congressman Tim Walz has requested that Congressman Henry Waxman examine this loan proposal in the clear light of day in a Congressional hearing. Also heartening is Senator Norm Coleman's announcement that he will oppose this project if the required mitigations are not met. I would vastly prefer, however, that Congress ax this loan and the proposed DM&E expansion for all the reasons above. Put the money into renewable energy instead. Rail is critical to American transportation, but I fear the public is getting railroaded on this project.