RICHMOND, Va. — A new law in Virginia aimed at expediting broadband deployment across railroad tracks has led to multiple legal disputes even as it starts to transform rural connectivity. Since the law’s enactment on July 1, 2023, Virginia’s electric cooperatives have successfully navigated about 37 railroad crossings to enhance internet access in some of the state’s most secluded areas, reports the Virginia, Maryland, and Delaware Association of Electric Cooperatives.
Previously, negotiations with railroad companies like Norfolk Southern and CSX were fraught with high fees and extensive delays, effectively acting as barriers to broadband expansion, according to Casey Logan, CEO of Mecklenburg Electric Cooperative. The recent legislation has sought to streamline these processes, reducing both the time and financial costs associated with securing crossing approvals.
The law mandates a more streamlined process, requiring railways to acknowledge receipt of crossing applications within a definite timeframe and to either approve these permits within 35 days or contest them through the State Corporation Commission (SCC). This has significantly cut down the wait times and reduced the costs for internet service providers.
Railpros, a contractor for Norfolk Southern, has notably improved its response times since the law’s introduction, Logan noted. Despite the positive advancements, the legislative changes have triggered lawsuits from major rail companies and a national railroad industry group, which argue that the law could be unconstitutional.
Rail companies have specifically raised concerns through both state and federal lawsuits about the potential violation of the takings clause of the U.S. Constitution, questioning whether the legislation unfairly limits their compensation for the use of their property. These cases are ongoing, with some awaiting decisions from higher courts, including the Virginia Supreme Court.
The urgency for enhanced broadband infrastructure became particularly evident during the COVID-19 pandemic when the necessity for reliable internet services became a lifeline for remote work, education, and healthcare. In response, federal and state resources have been marshaled to support these initiatives. Virginia alone has approximately $750 million in federal funds earmarked for broadband expansion that must be utilized by the end of 2026.
This law is part of broader legislative efforts in Virginia aimed at clearing the logistical hurdles associated with infrastructure projects that span both private and public land. The challenges are especially pronounced in rural areas where the physical landscape and the regulatory environment can impede swift development.
Despite the legislation and improved cooperation from some rail companies, costs remain a contentious issue. In one instance, Norfolk Southern quoted $70,000 to Mecklenburg Electric Cooperative for an underground crossing that would service about 20 homes. Facing such high costs, the cooperative elected for a less direct, overhead crossing that proved less expensive.
As these legal and operational challenges unfold, the experiences in Virginia could offer valuable lessons for other states grappling with similar broadband expansion hurdles. The outcomes here could also influence future legislation and corporate practices concerning utility access and infrastructure development nationwide.
Meanwhile, the electric cooperatives and their representatives continue to press for more equitable treatment from railroad companies, emphasizing that the costs imposed can disproportionately affect rural Virginians who are most in need of reliable internet service.