Overview of the history and importance of railbanking, and how the Rails to Trails Landowner Rights Act (H.R. 4924) would inhibit railbanking and rail-to-trail projects.
Railbanking limits the fragmentation of railroad corridors through the cost-effective means of permitting a trail sponsor to take on maintenance responsibility of a corridor unless and until rail service reactivates. Congress amended the Trails Act and created the federal railbanking program specifically to ensure that the federal government’s exclusive jurisdiction over certain corridors could be preserved. Railbanked rail-to-trail projects have helped to achieve this important goal while also generating net positive economic benefits for local communities.
The Rails to Trails Landowner Rights Act (H.R. 4924) would create onerous requirements for railbanking, rendering the process unworkable. A particularly defeating example of the legislation is that it would give a single landowner, who may not even hold a property interest in a rail corridor, the power to veto a railbanking proposal. This would prohibit virtually all railbanked rail-to-trail projects from proceeding.
Another troubling feature is the bill’s proposal to require trail sponsors to compensate landowners. While courts have recognized some railbanking projects could result in a Fifth Amendment taking of property and in such cases, the landowners would likely be eligible for just compensation by the federal government, this legislation would shift the burden of compensation from the federal government to trail sponsors. The bill would also impose other liabilities and unnecessary costs on trail sponsors that would greatly deter trail sponsors from pursuing rail-to-trail projects. These changes will result in the loss of strategic rail corridors throughout the country.
All rail-to-trail projects are ultimately local endeavors that require significant community buy-in, including support from adjacent landowners and funding investment from the community. With every project, ensuring adjacent landowners are not negatively impacted is a primary consideration for trail sponsors. Indeed, case studies demonstrate how rail-trail projects benefit adjacent landowners by increasing property values and direct access to a desirable amenity. Nevertheless, Congress was clear in its intent to preserve rail corridors through railbanking and maintain federal jurisdiction. This legislation would completely frustrate the purposes of railbanking and would severely restrict all rail-to-trail projects going through the railbanking process.