Norfolk Southern announced new details Monday about its plan to compensate East Palestine residents for lost home values since the fiery derailment disrupted life in the eastern Ohio city in February.
The railroad’s program will undoubtedly be welcomed by some people who want to sell their homes and leave the city rather than face ongoing health problems. But some critics say the railroad should do more to address these health problems, instead of worrying so much about the area’s economic recovery.
And the details are still preliminary, as the Ohio Attorney General’s office is still negotiating an agreement that will create a long-term fund to compensate homeowners, along with two other funds to pay for any health or water pollution problems that arise later occur. The Attorney General’s Office said it is not clear when these funds will be finalized due to all the unanswered questions at this stage.
The railroad already estimates that the cleanup will cost more than $800 million, including the $74 million that Norfolk Southern has committed to East Palestine to help the city recover. That total will continue to grow as cleanup efforts continue, funding is finalized and various lawsuits are filed. The railroad will also receive compensation from its insurers and likely from other companies involved in the derailment.
“This is another step in fulfilling our promise to East Palestine to make things right. Norfolk Southern is steadfast in meeting our commitments, including protecting the community’s home values,” said CEO Alan Shaw, who works to improve rail safety. “This program is designed to give homeowners the peace of mind they need.”
The new program will pay homeowners in East Palestine and the surrounding area about five miles around the derailment the difference between the appraised market value of their homes and the sales price. But if they accept compensation through the program, homeowners must waive claims for property damage that they could ultimately collect as part of one of the lawsuits against the railroad.
Texas Sen. Ted Cruz, a Republican, praised the railroad for keeping the promise it made in the spring. “I plan to keep the pressure on Norfolk Southern to make things right for the community,” he said.
J.D. Vance, one of Ohio’s U.S. senators who proposed a package of rail safety reforms after the derailment that still needs to be voted on, said he remains skeptical of Norfolk Southern.
“My expectations that they will deliver on their promises are low,” said Vance, a Republican. “I will continue to hold the railroad and its supporters in Congress accountable for the promises they made to Ohioans.”
Jami Wallace, a longtime resident of East Palestine who still hasn’t moved home since the derailment, said she and the Unity Council group she helps lead are much more focused on residents’ health rather than on things like home values, even though the government and the railroad have continued to insist that ongoing tests of the area’s air and water provide no clues about chemical levels.
Additionally, she said, “many of our most vulnerable are the people who rent,” so this program to help homeowners won’t do much for them.
“Human health must come first,” Wallace said.
And getting answers to the community’s questions about potential health concerns is the priority for Wallace, who is frustrated that she hasn’t been able to convince the EPA to conduct detailed testing in the basement of her home.
Moreover, people who have lived in the city for generations are not eager to sell their homes. They just want to know if their homes are safe.
“It’s not just about selling the house and being able to move to another house. We don’t want to move,” Wallace said.