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Rail safety bill overview:
- Who: Norfolk Southern says it will establish a fund to reimburse East Palestine, Ohio, homeowners impacted by the February train derailment.
- Why: The railway says it wants to do right by homeowners who had their property values decline in the wake of the derailment.
- Where: The train derailed in East Palestine, Ohio.
Norfolk Southern is set to establish a fund that will reimburse homeowners in East Palestine, Ohio, who saw their property values decrease in the wake of a February train derailment and subsequent fire and chemical spill.
In a letter addressed to four senators on May 9, Alan Shaw, president and CEO of Norfolk Southern, says the railway is establishing the fund as part of a “commitment to make it right for the people of East Palestine.”
“We are committed to this community not just for the near term, but for the long haul, and are investing in the community and its citizens to ensure its long term success,” Shaw says in his letter.
The announcement follows Senate Commerce Committee approval of bipartisan rail safety legislation earlier this month, Cleveland.com reports.
Ohio Sens. Sherrod Brown and JD Vance sponsored the legislation, which aims to prevent future rail disasters like the Norfolk Southern train derailment.
Norfolk Southern to compensate residents within five miles of train derailment site
Norfolk Southern, meanwhile, says it will establish the fund immediately, rather than wait for the results of a National Transportation Safety Board investigation into the cause of the train derailment.
“Norfolk Southern has not waited for the judicial process to be completed prior to getting to work on the structure and shape of a real property fund that will compensate homeowners,” Shaw says in his letter.
Norfolk Southern says it expects to use the fund to compensate homeowners with properties located within five miles of the train derailment site, as well as homeowners who end up selling their homes for less than what their value was prior to the incident.
Consumers brought several class action lawsuits against Norfolk Southern in the wake of the Feb. 3 train derailment, including one arguing the incident caused East Palestine residents physical and monetary harm.
The train derailment allegedly caused hazardous materials, including vinyl chloride, to spill out of a total of 20 derailed train cars, leading to a fire and allegedly contaminating water, air, and land within a 30-mile radius of the crash site.
Do you qualify to receive compensation for the Norfolk Southern train derailment? Let us know in the comments!
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