Preventing a Regulatory Train Wreck: Mandated Regulation and the Cautionary Tale of Positive Train Control

Abstract

When Congress passes legislation that mandates prescriptive regulations, legislators are under no obligation to understand the problem they are trying to solve, assess alternative solutions, or understand the benefits and costs of their choices. Passage of the positive train control mandate in response to several high-profile train accidents amply illustrates how haphazardly the legislative branch can authorize regulations. Congressional hearings and committee reports on the Rail Safety Improvement Act of 2008 contain no analysis of the causes and extent of the safety problem, alternative solutions, and the benefits and costs of alternatives to this $12.5 billion mandate. Given that major regulations are often required by statute, the time has come for Congress to subject regulatory legislation to the same kind of analysis that presidents have required regulatory agencies to conduct for more than three decades.

Keywords: regulation, regulatory impact analysis, regulatory analysis, benefit-cost analysis, cost-benefit analysis, positive train control, railroad, administrative law

JEL Classification: D61, D72, D73, D78, K23, L51, L92, L98