Diesel-powered on-track equipment: decommissioning: resale and transfer restrictions.

Senator Cortese, joined by Senator Arreguín, presents a measure that would bar public entities from selling, donating, or otherwise transferring diesel-powered on-track equipment for continued use after it has been decommissioned, unless a narrow set of exemptions applies. The core change centers on restricting post-decommission dispositions of such equipment, with decommission defined as permanently ceasing service when replacing it with lower-emission equipment and continued use defined as ongoing diesel engine operation. The measure targets equipment operated on stationary rails and commonly used in public rail systems, and it anchors its policy rationale in the bill’s findings about diesel emissions and health impacts in communities near rail operations, framed within a climate restoration and net-zero policy priority.

Key mechanisms and details include the creation of a new provision governing the disposition of diesel-powered on-track equipment after decommissioning. A general prohibition on selling, donating, or transferring such equipment for continued diesel use is paired with exemptions that apply only if both of the following criteria are met: the equipment either meets EPA Tier 2, 3, or 4 designations (or produces emissions equivalent to those tiers), or the diesel engine has been removed; and the public entity authorizes the transaction in a public hearing. The bill does not specify how “emissions equivalent” should be determined, nor does it provide procedural specifics for the required public hearing.

Implementation considerations include the need to document decommission events and subsequent equipment replacements to determine applicability, and the potential ambiguity surrounding engine-removal assets within the exemption framework. The measure requires fiscal review by the appropriate committee but does not include an explicit appropriation or an effective date in the text, and it does not set penalties or explicit enforcement mechanisms. Guidance would likely be needed to operationalize the emissions-equivalence standard and to outline hearing procedures and timelines.

Context and potential policy implications emphasize a health- and environment-oriented rationale, tying the proposal to emissions reduction goals and climate policy priorities cited by the authors. By tying exemptions to federal EPA tiers and requiring a public hearing for exempt transactions, the measure introduces a transparent, standards-based approach to the disposition of decommissioned equipment and may influence asset management, procurement strategies, and the market for decommissioned assets. The proposal would interact with existing regulatory structures and disposal markets, potentially affecting rail operators, equipment manufacturers, salvage entities, and communities near rail operations, while leaving several operational details to implementing regulations or future clarifications.