Leadership through environmental innovation

Bringing it Home Whats a Freight Train? An Even Cleaner Tomorrow

I N T R O D U C T I O N

e are in the midst of exciting and challenging times. To increase energy security and avert the worst possible consequences of a warming globe, the Natural Resources Defense Council (NRDC) believes the United States must redirect our resources toward cleaner and energy-efficient technologies to reduce emissions by 80 percent by 2050. To get there we must put in place a system that will cap global warming pollution by unleashing innovation in the private sector across the country.

Americas freight and passenger railroads offer a compelling and effective way to help us meet our energy and climate goals. Building a modern and efficient rail infrastructure will reduce highway congestion, generate needed jobs, combat global warming, retain and increase freight and passenger rail capacity, and strengthen the foundation of a new, clean energy economy. Now is the time to make smart investments in low-carbon rail infrastructure. In large part due to the steadily rising number of miles being driven on Americas roads and highways, the transportation sector has been the second largest, fastest growing contributor to global warming pollution in the United States during the past two decades. But we can reduce congestion and pollution if we move more freight to rail, since one freight train can carry the load of 280 trucks. Since the U.S. Department of Transportation predicts that demand for freight transportation will increase over 90% by 2035, we must take steps today to ensure that freight rail infrastructure is in place to handle this increased freight load. Rail is also more energy efficient. In 2007, railroads moved a ton of freight an average of 436 miles per gallon of fuel, which is three times as far as that freight could be moved by truck, giving rail a much smaller carbon footprint. If we decided to shift just 10 percent of long-haul truck traffic to rail, the cumulative greenhouse gas savings would be 12 million tons per year. This would result in a national fuel savings of over 1 billion gallons of fuel a year. Investments in greater rail capacity will prove essential to lowering the carbon intensity of the U.S. transportation sector. Thats why I look forward to working with CSX and the rail industry to make these the best of times by rapidly enacting policies that cap carbon emissions and boost investment in our nations rail system. Sincerely,

Peter Lehner, Executive Director Natural Resources Defense Council

Vol. 1 No.1

LEADERSHIP THROUGH ENVIRONMENTAL INNOVATION

Bringing it Home
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Ordinary products travel an extraordinary distance to find their way to our homes. Find out how railroads are making this trip cleaner than ever.

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10 Whats a Freight Train?
Though railroads have long been a fixture in American commerce, todays railroads rely on cutting-edge technology to deliver superior efficiency and reliability.

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How Tomorrow Moves is published exclusively for CSX by: Onward Publishing, Inc. In partnership with National Geographic For more information about CSXs environmental initiatives please call 1-877-TellCSX (1-877-835-5279). 6 Bayview Avenue, Northport, NY 11768 Phone: 631.757.8300 2009 CSX All rights reserved

14 An Even Cleaner Tomorrow

CSX is committed to leadership in technology and operational efficiency leadership that promises a clean future for transportation.

Publisher Jeffrey Barasch Editorial Director Wendy Murphy Art Director Bruce McGowin Writer Don Heymann

FPO
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Bringingit

ome
W

Just how do all those products find their way to our homes?

hat do computers, refrigerators, TVs, tomatoes, clothing, shoes, toys, automobiles and the boards that frame your house have in common? Chances are, freight railroads played a major role in moving these varied products, and many others, to your front door.

A system that works

Americas rail system, an impressive and efficient network that connects major cities, ports, and centers of industry, has developed and evolved over the last 200 years to become the circulatory system of North American commerce. Freight railroads are an economically viable and ecologically sound solution for long-haul shipments of all kinds. This efficiency enables the movement of vast amounts of freight while expending relatively little energy. Each year, railroads safely and economically move 29 percent of the total ton-miles of freight conveyed in the U.S.

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As the most environmentally friendly mode of ground-based transportation, railroads are an important part of the solution to a growing challenge facing our nation. The U.S. Department of Transportation estimates that freight transportation demand will rise over 90 percent by 2035 that means more pressures on greenhouse gas emissions and traffic. While there is no perfect solution, rail offers the opportunity to increase freight tonnage while reducing greenhouse gas emissions and highway congestion. Thats largely due to a commitment by CSX and the industry to continuous improvement and the inherent efficiency of rail. Since 1980, railroads have improved locomotive fuel efficiency by more than 80 percent through advances in technology and operations.

On their own, railroads excel at shipping everything from automobiles to grain but through the use of intermodal transport as well as TRANSFLO services, freight is easily moved between railroads and trucks allowing for the most efficient and flexible movement of goods. TRANSFLO, a CSX subsidiary specializing in safely transferring products such as ethanol, plastics and specialty chemicals from railcar to truck, allows for essential materials to be moved long distances by freight railroads, enhancing safety and reducing the greenhouse gas emissions. Intermodal transportation is a complex system of freight movement in large containers by rail, ship, and truck. The only things that get moved among these modes of transportation are the containers themselves the cargo inside is secured at origin and not touched until

final delivery of the container. This not only reduces material handling, but it also improves security, cuts damage and loss, and transports goods faster at lower cost. In addition to all of these benefits, the portability provides energy savings and significant reductions in carbon emissions. Freight railroads efficiently handle the long-distance ground travel portion of the route, quickly transferring containers to and from ships and trucks at intermodal terminals. The result is an unbeatable combination of efficiency and flexibility. One train can transport a ton of goods more than 436 miles on a single gallon of fuel. And one train can carry the load of 280 trucks. That makes freight trains the most efficient component of the intermodal system, approximately three times more fuel efficient than

Its true If 1% of freight currently moved by truck each year were moved by rail

instead, we would save 110 million gallons of fuel and reduce greenhouse gases by 1.2 million tons.

The tricky challenge of transporting perishable goods

How do heavy-duty railroads transport fragile goods like fruits and vegetables across the country and do so in an environmentally responsible manner? For CSX, one of the answers is Railex, a unique cross-country service created through a partnership between CSX and a western railroad that links the specialized needs of growers, shippers, and manufacturers with retail and food service distribution centers on the East and West Coasts. In addition to fresh produce, Railex is used to transport frozen foods, cosmetics, wine and beer, and perishable concentrates and juices. Railex features three refrigerated, mega-load distribution centers in Delano, California; Wallula, Washington; and Rotterdam, New York. These coast-to-coast distribution centers run a scheduled, five-day per week service featuring a 55-car refrigerated unit train with a freight capacity equivalent to hundreds of trucks. With fast, reliable shipment of temperaturesensitive products, Railex trains consist of new 64-foot cars with fresh air exchange, GPS tracking and temperature control. Railex incorporates the latest technologies with its own infrastructure and private non-stop rail service to ensure timely service and the same scheduled departure day and time every week, 52 weeks a year. All 55 cars stay intact as one unit, so products are not moved or shifted throughout the coast-to-coast journey, avoiding the use of multiple rail yards and car handling. If you are transporting goods the 2,700 miles from Wallula, Washington to Rotterdam, New York, for example, a single Railex train can move approximately 4,125 tons of goods, versus 21 tons that can be moved by a typical truck. By shipping perishables across the country by rail as opposed to truck, Railex saves approximately 524 tons of CO2 emissions per trip the same amount of CO2 that is neutralized by more than 44,000 tree seedlings growing for 10 years. In addition to the ecological value of the Railex service, West Coast growers are able to meet the ever-changing needs of far-away consumers with the freshest possible products and generate higher returns.

How far can you move a ton of freight on a gallon of fuel?

long-haul trucks. In addition to fuel and emissions savings, moving freight by rail reduces interstate highway traffic and wear and tear on the roads, thereby reducing highway maintenance costs. CSX is a global industry leader in fuel efficiency and many other aspects of freight transportation services. The company on average operates 1,300 trains and transports approximately 19,000 loads of goods per day over 21,000 route miles in 23 U.S. states, the District of Columbia and two Canadian provinces.

Boston, MA

Freight Train 436 miles

Trenton, NJ Baltimore, MD

A renewed commitment
So just how is it that railroads, one of the oldest modes of transport for moving goods still in use, became the model of operational and fuel efficiency that they are today? It started with a renewed commitment to continuous improvement. Though trains have served as the workhorses of American industry since the 19th century, by the middle of the 20th century, due to a number of changing circumstances, the continued on page 8

Highway Truck 140 miles

and hazardous material

Fruits and vegetables may be one challenge, but what about the difficulty of transporting hazardous materials safely across the country? Each year, CSX moves over 350,000 shipments of hazardous materials volatile compounds necessary to create the products consumers rely on every day. Railroads are the safest mode of ground transportation for these sensitive products. In fact, trains are 10 times safer than alternate modes of transportation. As a common carrier under U.S. law, a railroad cannot choose the cargo that it carries so a culture of safety is of paramount importance. To further limit the chances of an accident, CSX has developed some of the most effective programs in the rail industry, with a strong commitment to continually improve its safety record. In fact, CSX is a leader among all major U.S. rail carriers in train accident prevention. To promote safety even further, CSX annually recognizes major customers who ship hazardous materials without any releases during a year. The goal is to honor those shippers who keep their rail fleets well maintained and provide safety training for their employees. CSX also provides emergency planning assistance and training to local fire, police, and emergency response personnel in communities served by its rail network.

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Its true A single CSX train can carry the load of more than 280 trucks
industry had given up much of its leadership, allowing equipment and infrastructure to become outdated. At the same time, the popularity of cars and trucks had started to change the landscape of the nation. Trucks could move freight inexpensively over wellmaintained, newly constructed public highways. As the trucking industry grew, railroads, which bore the expense of maintaining their own infrastructure, struggled to compete. Adding to these difficulties was a complex and outdated system of federal regulations. With the combination of outdated equipment, new competition from interstate highways and commercial air travel, and a challenging regulatory environment, many storied railroads were forced to file for bankruptcy. It wasnt until the passage of the Staggers Rail Act in 1980 that antitrust regulations were overhauled and brought more in line with the modern transportation system. This balanced regulation sparked a revolution in efficiency and a new commitment to improvement. The surviving railroad companies began to work overtime to upgrade equipment and practices to become the safest, cleanest and most efficient option that they are today. Once again, railroads have earned their place as an efficient option for moving goods of all kinds and today are creating new capacity to handle a predicted 90 percent increase in freight rail demand by 2035. dramatically improved fuel efficiency and quality service at significantly lower environmental impact. CSX, for example, is leading the way in utilizing new technology and systems, as well as creating strategic partnerships that are fueling the greening of the railroad industry. Take the locomotive. CSX has invested more than one billion dollars since 2000 to upgrade its fleet, retrofitting existing locomotives to improve efficiency and introducing new Tier I and II clean air locomotives, which meet the latest EPA emission requirements. The upgraded locomotives promise to reduce emissions and lower fuel consumption by nearly 10 million gallons annually. To put that in perspective, 10 million gallons of fuel is enough energy to power over 11,000 homes for a year.

Growth and sustainability

More than anything, leading railroad companies have seized the moment balancing the challenging equation of economic growth and sustainable environmental stewardship by offering

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An important pit stop

Even in a well-managed rail yard, locomotives often must wait to transfer cargo. Traditional locomotives, which take a long time to start up and shut down, often have to idle during these down times. Reducing the time that locomotives idle at rail yards provides another opportunity to cut emissions and save fuel. CSX has train handling rules for manual shutdown of locomotives that have saved almost one million gallons of fuel each year. To further help curb emissions from idling locomotives, CSX has embraced leading-edge technologies including AESS (Automatic Engine Start Stop) and the APU (Auxiliary Power Unit). AESS automatically shuts down an idle diesel engine while keeping the locomotive ready to start on demand. The Auxiliary Power Unit (APU), which CSX designed, patented, and made available to the industry, provides power during idling conditions while allowing the main engine to be shut down. This innovative technology, recognized by the EPA with a Clean Air Excellence Award, reduces nitrogen oxide emissions by 91 percent, hydrocarbons by 95 percent, carbon monoxide by 96 percent and particulate matter by 84 percent while the engine is idling. The projected fuel savings from 3,600 CSX locomotives equipped with this and other fuel savings technologies is estimated at 25 to 30 million gallons per year.

GenSet Locomotive, Chicago

Leading the charge

New and improved long-haul locomotives as well as high-efficiency switching locomotives, know as GenSets, are just part of the story at CSX, where everyday the focus is on delivering goods more safely and efficiently to help preserve our natural resources and reduce greenhouse gas emissions. With its commitment to continuous improvement, the company will continue to keep pace with new challenges and new demands well into the future.

How Much CO2 Could You Be Saving?

To compare carbon emissions easily online, CSX launched an online Carbon Calculator. Now shippers and others have the ability to make the best environmental choice among transportation options. The userfriendly tool quickly calculates the carbon dioxide (CO2) emissions savings of specific rail shipments and provides comparative data among transportation choices. The Carbon Calculator can be accessed through the companys web site, www.csx.com.
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TRAIN?
Thanks to new technology, this is not your grandfathers locomotive.
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Whats a freight

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At first glance, a freight train today resembles one from ten years ago. But if you look a little deeper, youll find plenty of new technology and complex processes and procedures that are making trains quieter, more energy efficient and more environmentally friendly than ever before.

Getting to cleaner air

You may not know it, but nearly all locomotives in service use a large diesel engine that drives a generator to produce electricity. That electricity powers the traction motors connected to the wheels. In order to minimize the amount of CO2 emissions and fuel consumed, CSX has introduced ultra-low emission GenSet locomotives in multiple states throughout its network including Michigan, Illinois, New York, New Jersey and Indiana.

Used primarily within rail yards to switch cars, GenSet locomotives meet and exceed all current EPA railroad emission standards for locomotives and achieve the most stringent noise level requirements for off-road diesel equipment. In contrast to existing locomotives, GenSets can be started as quickly as a truck engine, avoiding the need to leave them idling for long periods of time. As a result, they reduce nitrous oxide and particulate matter emissions by 80 percent and can create carbon dioxide emissions savings of over 25 percent by monitoring engine idling and switching to a sleep mode after a period of inactivity. With innovations like GenSet and the Auxiliary Power Unit (APU), as well as smart train handling, a gallon of fuel is able to move a ton of freight almost twice as far today as a gallon of fuel would have

20 years ago. For more information on an APU, see Bringing it Home on page 5.

Extreme make-over the locomotive edition

CSX has invested a great deal in transforming freight locomotives. The company designed, piloted and implemented a horsepower reduction program for over 100 locomotives, which greatly reduced fuel consumption and emissions. When retrofitted in this way, a typical locomotives horsepower is permanently reduced by up to 27 percent without compromising its ability to pull freight. As locomotives are moved around the system and perform different jobs, the horsepower requirements change. By adjusting the locomotives horsepower based on its use, the company realizes significant savings. Projected over
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five years, these reductions will save an estimated 12.5 million gallons of fuel and eliminate nearly 100,000 tons of emissions, including nitrous oxides, particulate matter, hydrocarbons and carbon dioxide.

be used directly to identify fuel saving opportunities, measure locomotive operating fuel efficiency, and quantify other fuel saving initiatives.

Moving more, using less

The rail yard, where rail cars are processed, offers a number of opportunities for further fuel savings. CSX initiatives have resulted in better-managed rail yards and intermodal terminals, which mean marked fuel savings for terminal operations, increased capacity and a ripple effect of energy efficiency improvements and reduced emissions. Technologies such as radio frequency identification (RFID) better coordinate the transfer of loads, improving freight transfer times and drastically reducing truck idling time. The less time a driver has to wait to be told where the container is, the less time the truck engine is idling reducing CO2 emissions and fuel use. Future initiatives, including rail-mounted cranes, promise further improvements.

to keep tracks in good working order. These solar panels power the batteries that operate the bottom dump mechanism used to install stone ballast in tracks, providing energy savings and reducing waste. Solar powered signals save energy, providing a reliable alternate power source to this vital component of the system. Solar powered hot water heaters apply solar technology to heat the water used at several CSX facilities, an efficient way to use solar energy and reduce fuel consumption. Low-VOC paints are being used to repaint locomotives. Low-VOC (volatile organic compound) paints release fewer and less harmful emissions than older paint formulas, protecting the environment.

Improving operational efficiency along the route

CSX has even developed an innovative monitoring technology that helps improve operational efficiency and reduce fuel consumption as trains travel thousands of miles of track carrying freight to customers and distribution centers. Known as ERAD (event recorder automatic download), the monitoring system has saved more than 13.5 million gallons of fuel since 2005 and reduced nearly 150,000 tons of CO2 emissions. ERAD monitors locomotive operation at a level of coverage unattainable by an unaided supervisor. The system covers 150 wireless access points in 50 locations across the CSX system. Because of the frequency of feedback provided by ERAD, fuel inefficient practices have been reduced substantially throughout the system, contributing to lower fuel consumption overall. A fuel burn analysis component of ERAD is also being launched to capture the fuel burned by the entire fleet. This data will

Proactive environmental management

CSX doesnt limit its environmental activities just to core transportation systems. The company has also finetuned its proactive Environmental Management System to standardize and guide all environmental actions for all CSX facilities and rail hubs. Part of this system includes a comprehensive recycling program through which CSX strives toward a goal of zero waste. Recycled materials include:

Small steps to big change

Meanwhile, many other technologies, including renewable energy tools, are being used to develop the next generation of freight railroads. For example: Solar panels have been installed on many ballast cars that work across the network

On the record to reduce emissions

In March 2007, CSX became the first railroad to join the EPA Climate Leaders Program, pledging to publicly report its greenhouse gas emissions and establish a voluntary goal for emissions reduction. The EPA estimates that for every ton-mile, a locomotive emits roughly one-third the nitrogen oxides and particulates of alternate modes of transportation. That means every time a customer diverts freight traffic from highway to the railway, they are taking steps to improve the environment. In addition, the Association of American Railroads (AAR) estimates that if just 10 percent of the nations freight diverted to rail, fuel savings would approach one billion gallons annually. CSX also participates in the Carbon Disclosure Project (CDP), a voluntary, not-for-profit organization representing the interests of 385 mostly institutional investors with more than 57 trillion dollars in assets under management. CDPs role is to, act as an intermediary between shareholders and corporations on all climate changerelated issues, providing primary climate change data from the worlds largest corporations, to the global market place. CSX achieved the best score among Class I freight railroads in the CDP 2008 Report and third best in the overall Transports and Logistics category.

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Average Ton-miles per Gallon of Fuel Consumed

(RTM/gal is a Fuel Efficiency Measure Bigger is better)
500 400 300 200 100 0 436

242

A gallon of diesel fuel moves a ton of freight by train 194 miles farther than it did 25 years ago.
1980 1990 2000 2007
Web-based computer programs are used to monitor water flow and quality throughout the network Products are properly stored, used and transported, preventing seepage into groundwater supplies The latest treatment technologies are used to treat wastewater generated from the maintenance and service of locomotives and railcars With nearly 200 wastewater facilities, CSX is considered an industry leader, having received numerous awards and recognition by state agencies and industry organizations.

Steel scrap steel from old locomotives, rail cars, rails and other equipment is sent out for recycling. Batteries spent batteries from locomotive and signal operations throughout the system are collected and properly recycled. Oil millions of gallons of engine oil are recycled annually, including a portion used as an alternative fuel to heat CSX facilities. Crossties three million are replaced each year and recycled, used as an alternative fuel source, or reused as landscape timbers. Land when necessary, property owned by CSX is remediated, restored

and redeveloped. The company has also remodeled, donated or sold unused rail corridors to create public spaces and hiking trails. Two notable instances are the much-celebrated High Line corridor on the West Side of Manhattan, New York, and the extension to the Pinellas Trail in St. Petersburg, Florida, linking downtown St. Petersburg with the 34-mile urban trail. CSX is also committed to protecting the nations streams, rivers, lakes, oceans and groundwater supplies over and above its commitments to meeting Clean Water Act regulations through a host of initiatives: Independent labs monitor water discharged from facilities

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An Even Cleane

ner T omorrow
National Gateway project reflects a growing commitment to the future
While CSX has had a long and distinguished role in the development of American enterprise, the future holds even greater promise, as the company helps to strengthen freight railroads capacity and also plays a leading role in forging environmental improvements. These advances are being accomplished in many ways not only through the implementation of new technologies discussed on the preceding pages, but also through groundbreaking public-private partnerships.

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A renewed commitment to efficient infrastructure systems

In May of 2008, CSX launched the National Gateway, an over 700 million dollar public-private infrastructure initiative to create a highly efficient, double-stack cleared freight transportation link between the Mid-Atlantic and Midwest regions. When completed, the National Gateway will provide greater capacity for product shipments between the Mid-Atlantic and Midwest, reduce traffic on already crowded highways, and create thousands of jobs. By avoiding nearly 3 billion truck miles, the National Gateway will provide over 6 billion dollars in public benefit, including nearly three-million-ton reduction in CO2 emissions, more than 2.75 billion dollars in shipping cost savings and a fuel consumption reduction of over 250 million gallons over 10 years.

CSX has committed 350 million dollars to the initiative, and is working closely with state governments to secure additional funding to realize the public benefits. Already, several states have committed funds in support of the project funds which will help clear the way for double-stack rail container service along the National Gateway corridors and assist in securing matching federal funds needed to complete the project. Intermodal transportation combines the efficiency of rail with the flexibility of trucks, says Michael J. Ward, Chairman, President and Chief Executive Officer of CSX. By hauling more freight on fewer trains, the National Gateway would reduce traffic on the nations crowded highways and improve rail fluidity. To create the National Gateway, CSX, through its affiliates, is planning to build or upgrade several high-capacity intermodal terminals where product shipments are exchanged between trucks and trains. The company completed

a new terminal in Chambersburg, Pennsylvania in late 2007 and plans to build another terminal in Pittsburgh, Pennsylvania. Existing terminals in Charlotte, North Carolina, and Baltimore, Maryland, will also be expanded to meet growing needs once the initiative is implemented. Additionally, a new intermodal terminal in Northwest Ohio will be built by the Evansville Western Railway, a CSX affiliate. CSX is working closely with state and federal government agencies to create double-stack clearances beneath public overpasses along the railroad. With double-stack clearances, rail carriers can stack intermodal containers on top of each other, so trains can carry twice as many containers per train as they could otherwise. The National Gateway will enhance three existing rail corridors that run through Maryland, Virginia, North Carolina, Pennsylvania, Ohio, West Virginia and the District of Columbia.

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Those corridors include: The I-70/I-76 Corridor between Washington, D.C. and northwest Ohio via Pittsburgh; The I-95 Corridor between North Carolina and Baltimore via Washington, D.C.; The Carolina Corridor between Wilmington and Charlotte, North Carolina. The U.S. Department of Transportation predicts that freight transportation demand will rise over 90 percent by 2035 from 2002 levels. The National Gateway infrastructure initiative is designed to address the everincreasing demands placed on the nations capacity-strained freight network. A study of the National Gateway project by Cambridge Systematics, a nationally recognized transportation research firm based in Cambridge, Massachusetts, found that every dollar of public money invested in the National Gateway infrastructure initiative will lead to 16 dollars in public benefits. The study noted that by improving the flow of freight and shifting freight transportation from the highway to the railway, the initiative will improve safety, relieve traffic, benefit the environment and reduce highway maintenance costs.

A future with hybrid locomotives and renewable energy

More efficient rail systems are one part of the equation. The other is the ongoing effort to improve the fuel efficiency of the locomotives themselves. Significant improvements have been achieved already, but like hybrid cars, trains of the future may also embrace hybrid technology and the use of renewable energy like biofuels.

The smart way to reduce emissions

CSX is a charter member of the U.S. EPAs SmartWay program, a voluntary initiative designed to reduce emissions of all mobile sources, including locomotives. SmartWay was launched in 2004 with a select group of 15 shipping and business leaders, including CSX. The program is an innovative, market-based partnership to reduce fuel use, greenhouse gas emissions, and air pollutants from the freight transportation sector. Based on their three-year commitments, these companies have conserved more than 600 million gallons of diesel fuel per year, saving the transport industry nearly two billion dollars in annual fuel costs and eliminating nearly seven million metric tons of carbon dioxide emissions. In October 2007, CSX received the EPAs SmartWay Excellence Award, which recognizes freight carriers that have made significant contributions to protecting the environment. CSX is the only railroad among the SmartWay Transport Partnerships 600-plus members to receive this distinction during that time period.

Its true According to the EPA, freight railroads account for less than 3%

of U.S. greenhouse gas emissions from transportation sources and well under 1% of greenhouse gas emissions from all sources.
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Hybrid locomotives being researched use a rechargeable energy storage system that is placed between the power source (often a diesel engine) and the traction transmission system connected to the wheels. Surplus energy from the power source, or energy derived from regenerative braking, charges the storage system. During acceleration, stored energy is directed to the transmission system, boosting the energy available from the main power source. For more information on exciting improvements to trains, see Whats a Freight Train? on page 10.

economic prosperity and energy security of the U.S. CSX values an open dialogue with all stakeholders on a wide array of options to further policies that meet these objectives, among them market-based incentives, a cap and trade system and carbon taxes or fees. Finally, CSX believes that rapid and widespread research, development, deployment and commercialization of innovations in clean coal and other energy technologies are vital to the success of climate change and energy policies.

Leadership on the issues

CSX continues to support both federal and state legislation to reduce greenhouse gases and traffic congestion, and help expand needed infrastructure programs that stimulate the economy and strengthen rails positive impact on the environment. To advance these goals, CSX supports: Passage of the Freight Rail Infrastructure Capacity Expansion Act, which would provide a 25 percent tax credit for any business investing in new track, siding, intermodal facilities, locomotives or other rail infrastructure expansion projects. This includes rail shippers, ports, and even truckers who might substitute rail for highway moves. This bill has been supported by a wide consortium of rail customers, including the Waterfront Coalition, the American Association of Port Authorities, the National Retail Federation, The National Mining Association, the U.S. Chamber of Commerce and the Alliance of Automobile Manufacturers. Expansion of public-private partnerships that strengthen the U.S. economy, create jobs, protect

Moving transportation forward

our environment, meet the nations energy needs, while maintaining and expanding our nations infrastructure. The National Gateway is a prime example. CSX also believes that climate change is a global issue requiring leadership by the United States and actions by all nations in a spirit of shared responsibility to devise and carry out practical, cost-effective public-private measures that reduce manmade greenhouse gas emissions. Legislation that contains incentives to use the least carbon-intensive transportation options as well as support investments in additional new track, siding, facilities, clean locomotives or other rail infrastructure expansion projects. The immediate adoption of climate policies that promote sustainable approaches to the global reduction of greenhouse gas emissions and recognize freight railroads significant contribution to a cleaner environment while preserving and enhancing the Improving the fuel efficiency of our vital transportation systems and significantly reducing greenhouse gas emissions are two challenging and interrelated goals that CSX has embraced wholeheartedly. In fact, CSX has willingly taken on a leadership role in this critical effort by working hard on several key fronts continually researching and developing cutting-edge train and rail systems technologies, upgrading and revitalizing operations to reduce the use of fossil fuels and recycle waste, collaborating with government agencies and other businesses to forge new and more sustainable transportation approaches, and supporting legislation and policies that will encourage businesses to respond more effectively to climate change. With these and other ambitious programs underway, CSX hopes to have a strong, positive impact on the environment we all share, while continuing to contribute to the smooth flow of our nations commerce on which we all depend.

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CSX Transportation Rail Network

The envelope please

CSX knows the difference that a sustained commitment to improvement can make. The company and its employees are honored to have been recognized as leaders in environmental stewardship with these coveted awards:
The John H. Chafee Environmental Award This honor has been awarded to a CSX employee six of the last nine years. U.S. EPA SmartWay Excellence Award CSX received the award in 2007 and is the only railroad among the SmartWay Transport Partnerships 600-plus members to receive this distinction. The North American Environmental Employee Excellence Award CSX employees have been the recipient of this award four of the last seven years. U.S. EPA Clean Air Excellence Award CSX received the award in 2001 for the design of the Auxiliary Power Unit (APU).