Democratic senators grill Norfolk Southern CEO on deregulatory lobbying

Sens. Sheldon Whitehouse (D-R.I.) and Jeff Merkley (D-Ore.) pressed Norfolk Southern CEO Alan Shaw Thursday on the railroad’s history of lobbying against stricter safety regulations at a Senate Environment and Public Works Committee hearing on the derailment of a Norfolk Southern train in East Palestine, Ohio.

Whitehouse specifically cited a 2015 Obama-era regulation that required more modern electronic brakes for trains carrying hazardous materials, which Norfolk Southern called “not in the public interest” and lobbied to weaken before the Trump administration scrapped it outright in 2018.

The Rhode Island Democrat went on to note the industry has spent more than $650 million on lobbying against regulations over the last two decades, including $69 million spent by Norfolk Southern. Shaw countered by pointing out that the National Transportation Safety Board has said the Obama-era braking regulation would not have prevented the East Palestine derailment.

Whitehouse responded by asking Shaw if he was aware of how much Norfolk Southern spent lobbying against the regulation in question through its trade group. Shaw responded that he did not know but added that the Government Accountability Office and the National Academy of Sciences determined that the Federal Railroad Administration’s review of electronic brakes “was unjustified.”

Whitehouse also invoked reporting from The New York Times indicating Norfolk Southern paid shareholders nearly $18 billion in stock buybacks and dividends last year.

“I have a different perspective on that,” Shaw replied.

“Is the number right, setting aside your perspective?” Whitehouse countered, which Shaw also denied.

Merkley, meanwhile, asked if Norfolk Southern could be counted on to lobby for improved rather than reduced safety regulations going forward.

“I share your concern and your focus,” Shaw began.

“I just want to know, will your team lobby for safety improvements rather than against them?” Merkley broke in. “I just really thought, when you said ‘turn over a new leaf,’ you meant you were saying you were going to now support safety regulations. I’m sorry you can’t tell this crowd today that would like to hear that, that that is the case.”

Shaw was noncommittal when Merkley asked if he would commit to ending stock buybacks until new safety measures could be enacted.

Shaw said in prepared remarks ahead of his testimony that he is “deeply sorry” for the disaster, which occurred Feb. 3 and included cars carrying hazardous substances. The Environmental Protection Agency has said it will hold the railroad fully financially responsible for the cleanup and relief process.