Association of American Railroads (AAR)

Background

The Association of American Railroads (AAR) is a 501(c)(6) trade organization that represents major freight railroad companies in the United States, Canada, and Mexico. In addition to providing industry data, research, and standards setting, AAR lobbies in Washington, D.C. for “sound public policy that supports the interests of the freight rail industry.” ¹

AAR boasts on its website that rail has been responsible for moving nearly 70% of coal in the U.S., and that it moved 4.4 million carloads in 2018. Rail is also a major transporter of crude oil. “The push for U.S. energy independence from foreign sources of fossil fuel relies extensively on freight rail as an important transportation partner. Railroads are an essential contributor to the success of the crude oil industry,” AAR notes.²

AAR describes rail as the “the most environmentally friendly way” to move cargo over land, and boasts it is “well ahead of other modes of transportation when it comes to limiting greenhouse gas emissions, increasing fuel efficiency and reducing its carbon footprint.”³ ⁴

The largest class of railroads made a total of $10.7 billion in 2018 from hauling coal, so “while rail companies say they emitted only about 0.6 percent of U.S. greenhouse-gas pollution last year, their indirect carbon footprint may be gargantuan,” reported The Atlantic.⁵

Stance on Climate Change

Despite expressing concern for reducing emissions in public, all four of America’s largest railroads – each a member of AAR – have joined and funded groups opposing climate legislation or promoting coal use, such as the American Coalition for Clean Coal Electricity (ACCCE) and the National Association of Manufacturers (NAM).⁶

AAR itself was involved in opposition to regulation of greenhouse gas emissions. In a document titled “Strategic Initiatives for 2007,” AAR‘s Policy and Advocacy Management Committee listed the “defeat of legislation or regulation imposing onerous restrictions on carbon dioxide emissions and fossil fuel use” as one of the group’s goals.

The Railroad Industry’s Role in Climate Change Denial

An October 2019 study by Drexel University sociologist and environmental scientist Robert J. Brulle revealed that the railroad industry has been among some of the most prominent members and funders of a group of organizations actively advocating climate science denial and blocking climate legislation. This includes the Association of American Railroads as well as BNSF Railway, Norfolk Southern, Union Pacific, and CSX, four of the biggest freight rail companies in North America. ⁷ ⁸

“In conjunction with their allied trade associations, these coalitions have served as a central coordination mechanism in efforts opposed to mandatory limits on carbon emissions,” Brulle found in his research.

As DeSmog’s Justin Mikulka reported,⁹ Brulle’s research revealed that the rail industry was part of “key political coalitions that worked to oppose climate action.” ¹⁰

“We can now identify railroads as an integral component of opposition to climate action,” Brulle told The Atlantic. “There’s no doubt in my mind about that.”¹¹

Geoffrey Supran, a Harvard history researcher focused on climate change politics, told The Atlantic that Brulle’s research had revealed that railroads were “central” to climate change denial. “They’re not peripheral. These are key cogs in a multidecade, well-oiled, well-funded denial machine,” he commented. ¹²

Brulle examined 25 years of data on groups involved in “the organized efforts to oppose meaningful climate action,” and found that railroads were consistently part of coalitions dedicated to blocking climate policies or pushing climate change denial.¹³

Involvement by AAR and its major member railroads in groups opposing climate legislation goes back as far as 1991, when they joined the Coalition for Vehicle Choice, a group created by the auto industry to fight increases in federal fuel efficiency standards.

In 1992, AAR and the railroad companies joined the now-defunct Global Climate Coalition, a group that worked to undermine the United Nations Intergovernmental Panel on Climate Change (IPCC) while suggesting human-caused climate change was largely a natural cycle. Trade associations such as the American Petroleum Institute, National Association of Manufacturers, and National Mining Association were also GCC members, as well as fossil fuel giants like ExxonMobil.¹⁴

In 1996, AAR and all four major railroads joined the Center for Energy and Economic Development (CEED). The founding chairman of the CEED board was John Snow, president and CEO of CSX Corporation, a major American freight rail company.¹⁵

CEED described itself as “a non-profit group dedicated to protecting the viability of coal-based electricity.” CEED opposed the 1992 Kyoto Protocol, the first international climate change treaty, as well as other efforts to regulate greenhouse gas emissions.¹⁶

In 2007 the railroads joined a similar group, Americans for Balanced Energy Choices (ABEC). Coal-dependent energy companies were ABEC‘s primary sources of funding.¹⁷

Both CEED and ABEC pushed the idea of “clean coal,” a concept repeatedly referenced by AAR.¹⁸

CEED and ABEC merged around 2008 to form the American Coalition for Clean Coal Electricity (ACCCE). AAR joined the group that year.

In 2009, ACCCE was number three on the Mother Jones “Dirty Dozen” list of organizations most loudly denying the reality of human-propelled climate change.¹⁹

Funding

Donations made by the Association of American Railroads

Robert Brulle found that since 2012, three of the major railroads had paid the American Coalition for Clean Coal Energy a combined total of more than $3 million to lobby on their behalf, according to disclosure forms. The railroad companies CSX, Norfolk Southern, and Union Pacific also gave at least $28 million to other groups opposing climate policy.²⁰

E&E News reported in late 2009 that “ACCCE‘s largest single contributor is the Association of American Railroads, which paid the trade group $6 million last year.” E&E News noted this put AAR in the company of numerous other coal and utility companies. “Peabody Energy Corp., Arch Coal Inc. and Consol Energy Inc. each paid $5 million to ACCCE. Atlanta-based utility Southern Co. gave ACCCE $2.1 million. American Electric Power Co. Inc. and FirstEnergy Corp., both Ohio-based utilities, each paid $2 million.”²¹

The following is based on data collected by DeSmog from publicly available IRS Form 990 filings of donations made by AAR.

View the attached spreadsheet for additional information on AAR’s donations by year (.xlsx)Download

Third-Party Contractors Hired by AAR

IRS Form 990 Filings

Key People

The following key people were listed on the AAR website in 2018²² or 2019:²³

Name	Title	Years
Ian Jefferies	AAR President & CEO	2019 — Present
Michael Rush	Senior Vice President, AAR Safety & Operations	1980 — Present
John Gray	Senior Vice President, AAR Policy & Economics	2008 — Present
Kristin Smith	Senior Vice President, AAR Communications	2009 — Present
Jeffrey Marsh	Senior Vice President, AAR Finance & Administration / Chief Financial Officer	2012 — Present
Kathryn D. Kirmayer	Senior Vice President, AAR Law & General Counsel	2015 — Present
Adrian Arnakis	Senior Vice President, Government Affairs	2018 — Present
Lisa Stabler	President, Transportation Technology Center, Inc.	2010 — Present
Allen West	President & CEO, Railinc	2006 — Present
Edward R. Hamberger	Association of American Railroads President & CEO (Outgoing in 2019)	1998 — 2019
Jeffery Marsh	Senior Vice President, AAR Finance & Administration / Chief Financial Officer	2012 — Present

Compensation of AAR Board of Directors

Actions

May 2019

AAR released a report in 2018 estimating that despite recent declines, coal still generated over 16% of revenue for the largest or “Class 1” railroads in North America. The report also outlined “environmental challenges” to coal-related revenues, and advocated “clean coal” technology as a solution to reduce coal’s greenhouse gas emissions:²⁴

“In addition to reasonable EPA regulations, railroads support the development of advanced carbon capture and storage and other clean coal technologies. By developing these technologies, America would continue to produce affordable electricity from its abundant domestic coal, energy independence would be promoted, and the environment would be protected — a win-win-win situation for all parties involved,” the report stated.²⁵

September 2016

In part two of a multipart DeSmog investigation of the reasons for oil train derailments, several experts told DeSmog that “sloshing”—the back-and-forth motion of the liquid contents of oil rail cars while a train is moving—could be a factor.²⁶

An AAR spokesperson responded by stating that sloshing “is something that has been studied over the decades and continues to be monitored, but, evidence to date indicates sloshing does not have an effect on overall train handling.” However, DeSmog was unable to obtain copies of industry-funded studies and findings that sloshing was not a significant factor in derailments. AAR was “not in a position to release industry research at this time as it contains proprietary information,” according to the spokesperson. ²⁷

A note on page 30 of a 2010 AAR publication titled “Field Guide to Tank Cars,” found by DeSmog, suggested the rail industry was aware that “lading surges,” or sloshing, was a potential issue in rail tank cars:²⁸

“Unlike highway cargo tanks, tank car compartments are not constructed by applying interior walls within a single tank. Further, unlike some cargo tanks, tank cars do not have interior baffles to control lading surges.” (Emphasis added).

According to this document, in 2010 rail transportation of oil was not yet a significant portion of the industry’s revenues.

2015

The Association of American Railroads threatened to shut down the American economy by ceasing rail services unless Congress granted the industry another extension on implementing stronger safety measures. ²⁹

The regulations had first been recommended in 1970, and then mandated in 2008 following a fatal train collision.³⁰

Norfolk Southern released a statement saying it would begin shutting down service in December if positive train control regulations were not pushed back.³¹

“Norfolk Southern sincerely regrets the inconvenience that customers, passengers, and commuters will experience,” said James A. Squires, president and CEO. “Our strong hope is that Congress will act quickly and decisively to allow us to restore full access to our rail network.”³²

The New York Times editorial board warned that, if an extension were granted, it should also put in place safeguards to ensure that stronger safety measures would not be further delayed by rail companies:³³

“Clearly, nobody wants a large-scale rail shutdown. That would make it much harder and more expensive for businesses to transport goods and for commuters to get to work. Congress should extend the deadline but make sure railroads are not in a position to demand another delay in three years by holding the economy hostage again.”³⁴

2007

AAR‘s Policy and Advocacy Management Committee, as in prior years, listed the “defeat of legislation or regulation imposing onerous restrictions on carbon dioxide emissions and fossil fuel use” as one of the group’s goals.

Another goal was to “[d]efeat safety and security legislation and regulation at federal, state and local levels that would impose onerous operating requirements or unjustified costs on rail transport.”

2005

The AAR‘s 2005 IRS Form 990 filing outlined goals of its Policy and Advocacy Management Committee. The first bullet under “Offensive Goals” was to enact energy legislation including clean coal and locomotive R&D Provisions.”

2004

In a Government Affairs Department strategy document for the coming year, AAR outlined its goal to oppose any legislation that would reduce carbon dioxide emissions, noting it was working in concert with the Business Roundtable. Other areas of focus included Congress’s consideration of nuclear waste, Superfund reform, and other environmental legislation. The document also listed an objective of seeking federal support for “clean coal” technology.

Goals in the safety category included minimizing the impact of “burdensome new safety requirements” such as “positive train control” – systems that prevent collisions between trains – as well as in operational arenas including “fatigue” and “roadability.”

GoRail — Several of AAR‘s members are also members of GoRail, an industry advocacy and grant-making group, and AAR has funded the organization. AAR president and CEO Ian Jefferies was a GoRail board member as of 2019.³⁵
Railinc — Information technology subsidiary of AAR.³⁶
Transportation Technology Center (TTCI) — Wholly owned subsidiary of AAR.³⁷