The rail industry in the United States is governed by federal laws and regulations designed to ensure the safety of rail employees, passengers, and the public. As early as 1893, Congress began enacting legislation to deal with rail safety issues. Over the last century, laws have been passed, and remain in force today, establishing a variety of safety standards in the rail industry.

These laws give the Department of Transportation's Federal Railroad Administration (FRA) broad authority to issue and enforce regulations that ensure the safety of the rail system. As a result, the FRA has issued numerous regulations regarding the safety of locomotive equipment, track and signal systems, and railroad operating procedures. It is Watco Companies policy and practice to operate in full compliance with all applicable federal safety regulations.

The following laws provide the framework for federal rail safety standards:

• Hazardous Materials Transportation Act authorizes the Secretary of Transportation to designate materials as hazardous and to issue and enforce (through civil penalties and other means) regulations providing for their safe transport in all modes of transportation. This law, enacted in 1974, applies to shippers and carriers alike.
   
• Federal Railroad Safety Act of 1970 grants the Secretary of Transportation rule-making authority (subsequently delegated to the Administrator of the FRA) over all areas of railroad safety, and conferring all the powers necessary to detect and penalize violations of any rail safety law. As a result of this legislation, FRA issued rules concerning track, freight cars, operating rules, operating practices, including control of alcohol and drug use, engineer qualifications, bridge worker safety, radio use, rear end markers, glazing of windows on locomotives, cabooses, and passenger cars.
• Hours of Service Act prohibits railroads from requiring or permitting their employees to work excessive hours, and granting FRA authority over the safety regulation of employee sleeping quarters.
   
• Signal Inspection Act grants FRA authority to regulate the maintenance, testing, removal or modification of signal systems.
   
• Accident Reports Act requires railroads to report accidents to FRA and authorizing FRA to investigate accidents.
   
• Locomotive Inspection Act prohibits the use of unsafe locomotives and authorizing the Federal Railroad Administration (FRA) to issue standards for maintenance and testing.
   

Safety Appliance Act requires the use and maintenance of specific appliances, e.g., handholds, on rail cars to protect rail employees, especially those involved in switching operations. This legislation also included provisions concerning the use and maintenance of power brakes.

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