STB Approves Construction of 11-Mile Utah Rail Line (UPDATED 4/3)

Savage Tooele Railroad Company has proposed reinstituting common carrier freight rail service over an approximately six-mile segment of the former “Warner Branch” (abandoned in 1983 by UP predecessor Western Pacific Railroad Company), and to construct approximately five miles of new railroad line within the Lakeview Business Park, which has been under development since 2020 in Tooele County, Utah. (STB Photograph)

The Surface Transportation Board (STB) on April 1 signed off on Savage Tooele Railroad Company’s proposal to build and operate approximately 11 miles of rail line in Tooele County, Utah, subject to certain environmental mitigation conditions.

The decision follows the STB Office of Environmental Analysis’ (OEA) release last month of a Final Environmental Assessment, which recommended voluntary mitigation measures proposed by Savage Tooele Railroad Company and mitigation developed by OEA, “to avoid, minimize, or mitigate the potential environmental impacts” of the rail line.  

The line would re-establish a former branch line’s connection to Union Pacific’s (UP) Shafter Subdivision at Burmester, Utah, and link with the 1,700-acre Lakeview Business Park in Grantsville, Utah (see map below). Savage Tooele Railroad Company in June 2022 sought authorization for its proposal stating that Park tenants are currently only able to receive and ship commodities by truck.

Savage Tooele Railroad Company would re-institute common carrier service over an approximately 6-mile segment of the former Warner Branch (abandoned in 1983 by UP predecessor Western Pacific Railroad Company); tracks remain on some 5.75 miles of the right-of-way. It would also construct about five miles of rail line within the Park, which is currently under development and has two tenants receiving commercial truck service. Additionally, it would build four 2,500-foot segments of ancillary switching (or interchange) track to offload and onload railcars to and from the UP main line. Savage Tooele Railroad Company anticipates that construction would take approximately six months.

Savage Tooele Railroad Company forecasted the operation of one roundtrip train (two trains per day, one in each direction) along the line and the transport of 1,200 carloads in the first year of operation, which could expand to up to 8,000 carloads in the future, depending on Park tenants and their demand for rail transportation. Train lengths are estimated to range between 900 feet and 1,500 feet and comprise between 12 and 20 railcars on average per train. Savage Tooele Railroad Company plans to use two locomotives per train: Tier 0+ GP-38s or similar units with approximately 2,000 h.p. It also projects that gross tonnage would be approximately 2,600 tons southbound into the Park and 680 tons northbound to the interchange tracks.

“Construction and operation of the line will give shippers a new freight rail option, which will support business diversification within the Park and more competitive transportation rates,” the STB said in its decision (download below). “With OEA’s final recommended mitigation, there will be no potential for significant environmental impacts; indeed, the line will facilitate the diversion of traffic from truck to rail, thereby increasing overall energy efficiency and reducing emissions from trucks. After carefully considering the transportation merits and environmental issues, the Board, considering the entire record, finds that the petition for exemption to allow STR’s [Savage Tooele Railroad Company’s] construction and operation of the approximately 11-mile line of railroad in Tooele County assessed in the Draft and Final EAs [Environmental Assessments] should be granted, subject to compliance with the environmental mitigation measures in Appendix A.” Mitigation includes general measures, noise, grade crossing safety and delay, biological resources, water resources, hazardous materials, cultural resources, air quality, and climate change.

The STB noted that it “is satisfied that OEA has taken the requisite hard look at the potential environmental impacts associated with the proposed construction and operation of the line and properly determined that with the recommended environmental mitigation in the final EA, the proposed line will not have potentially significant environmental impacts, and that preparation of an EIS [Environmental Impact Statement] is unnecessary.”

Board members Michelle Schultz and Patrick Fuchs dissented in part with a separate expression. They reported joining “the majority’s decision except for the last mitigation measure. In response to EPA’s environmental comments, OEA proposed, and the Board now adopts, language stating that STR’s climate change plan ‘shall use’ certain CEQ [Council on Environmental Quality] guidance to achieve objectives in an executive order.” Schultz and Fuchs said they “would not include that requirement as it is drafted. For one, it is vague in what it requires. Moreover, relatedly, and more importantly, its impacts are uncertain.” They said they “do not know whether guidance designed for federal agencies should be wholesale applied to businesses; whether that guidance could be better tailored to the specifics of this particular project; or whether STR has the information that would be necessary to implement that guidance effectively.” Without further detail and more information “about likely compliance strategies including both their effectiveness and burden,” they said they “would not impose the condition in its current form.”

The STB’s decision is effective May 1. Petitions for reconsideration must be filed by April 22, 2024.

Savage Tooele Railroad Company, Utah Governor Weigh In

“We’re pleased that federal regulators recognize the transportation and environmental benefits the STR rail line offers for Utah businesses and communities,” said Kirk Aubry, President and CEO of Savage, which noted that STR is one of the first railroads owned and operated by a Utah-headquartered company in the state’s history. “[W]e appreciate the many state and local leaders, and other stakeholders, who supported this project and look forward to safely and responsibly building and operating this new Utah-based railroad.”

“I want to congratulate Savage Tooele Railroad on the approval of their Tooele Valley rail project by the Surface Transportation Board,” Utah Gov. Spencer J. Cox said in an April 3 statement. “The historic nature of this project, including its positive economic and environmental impacts, will be a tremendous advantage for Utahns and our businesses for generations to come.”