Following the 2025 introduction of Senate Bill 2758 by Sen. Jim Banks (R-IN) and original co-sponsor Sen. Chris Coons (D-DE), Sen. Merkley’s co-sponsorship of the Freight RAILCAR Act helps advance the bill to benefit environmental and operational sustainability in the freight railcar sector
(Washington, D.C.) – Today, the Rail Security Alliance applauds U.S. Sen. Jeff Merkley (D-OR) for his recent co-sponsorship of the Freight RAILCAR Act, which was introduced by Jim Banks (R-IN) and original co-sponsor Chris Coons (D-DE).
While moving consumer goods and products by freight is the most environmentally sustainable form of transportation, the Freight RAILCAR Act increases that sustainability by providing freight railcar manufacturers with a time-limited tax credit that promotes investment in more efficient, modernized freight railcars, enabling less efficient assets to be retired.
“Sen. Merkley is a strong supporter of policies that benefit stewardship of our natural resources, and his co-sponsorship of the Freight RAILCAR Act is in line with that commitment,” said Erik Olson, executive director of the Rail Security Alliance. “We are grateful for his support and believe that this bill, when enacted, will make a big difference in not only the freight railcar sector but in communities nationwide.”
The bill’s downstream benefits include:
Fuel Savings: Replacing older railcars (especially hopper cars) with higher-capacity modern ones reduces the number of trips needed to move the same volume of freight.
- Replacing just one-third of nearly 300,000 outdated hopper cars could save 4.3 million gallons of diesel fuel in the first year alone.
Lower Greenhouse Gas and Other Emissions: Greater fuel efficiency directly translates to reduced CO₂ and other emissions from diesel locomotives.
- Modern railcars can improve overall system efficiency, helping lower the carbon footprint of freight transportation (a sector that contributes significantly to U.S. transportation emissions).
Broader Sustainability Support: By promoting fleet modernization, S. 2758 supports long-term reductions in emissions intensity per ton-mile moved.
- In addition to maintaining fuel efficiency compared to transport by trucks, freight rail’s higher capacity also eases congestion and associated idling emissions.
Learn more about the Freight RAILCAR Act. The full text of the bill can be found here.
About the Rail Security Alliance
The Rail Security Alliance supports and encourages the adoption and enactment of U.S. policies, procedures and laws that promote the security of the railroads and the railroad system of the United States of America. RSA represents 65,000 domestic and North American freight railcar manufacturers and suppliers and an industry that contributes $6.5 billion annually to the U.S. GDP.
