Norfolk Southern CEO Alan Shaw will testify before the Senate Committee on Environment and Public Works on Thursday
On the eve of testimony by Norfolk Southern Corp. CEO Alan Shaw on Capitol Hill, Sen. Shelley Moore Capito of West Virginia said that the rail carrier will pay for the environmental impact of the disastrous train derailment in East Palestine, Ohio.
The Senate Committee on Environment and Public Works will hold a hearing on the Feb. 3 derailment of the train carrying hazardous materials on Thursday.
"Norfolk Southern will pay for the harm it has caused, as required by the CERCLA Act, which is the Comprehensive Environment Response, Compensation, and Liability Act," said Capito, who is the top Republican member of the committee. "Norfolk Southern will be held completely liable, and no expense should be spared in their cleanup efforts."
Related:After disastrous Ohio derailment, Norfolk Southern announces 6-point safety plan
CERCLA provides a federal "superfund" to clean up accidents, spills and emergency releases of pollutants and contaminants into the environment. Through CERCLA, the Environmental Protection Agency has power to hold parties responsible for such releases and to compel their cooperation in the cleanup.
"The liabilities for Norfolk Southern under CERCLA are among the broadest and strictest in our federal laws, so there's no gray area there," Capito added.
Norfolk Southern's (NSC) stock, which has fallen 14.7% since the Feb. 3 derailment, rose 0.2% Wednesday.
Now read: Ohio derailment a 'PR nightmare' for Norfolk Southern and the rail industry
Capito said she has already read most of the statement that Shaw plans to give tomorrow. "He will be getting into what happened, he thinks, and some of the lead-up to that," she said.
Sen. Tom Carper, who chairs the committee, also emphasized that Norfolk Southern will be held legally accountable for the cleanup and the damages from the derailment.
"We have got to ensure that Norfolk Southern remains in the [East Palestine] community over the long term to help address the ongoing impacts from this disaster," said Carper, a Delaware Democrat.
Related:Norfolk Southern CEO personally donates $445,000 to East Palestine scholarship fund -- meanwhile, residents want help moving away
A spokesperson for Norfolk Southern said that, from the outset, the company has recognized its responsibility and is committed to doing what's right for the residents of East Palestine. "We have been paying for the cleanup activities to date and will continue to do so," the spokesperson said in a statement emailed to MarketWatch. "We are committed to thoroughly and safely cleaning the site, and we are reimbursing residents for the disruption this has caused in their lives."
Norfolk Southern is investing in helping East Palestine thrive for the long term and will continue to be in the community for as long as it takes, according to the spokesperson. "We are going to learn from this terrible accident and work with regulators and elected officials to improve railroad safety," he added.
Norfolk Southern announced a new six-point safety plan in the wake of the derailment. The company is also building a new facility in Ohio to train first responders.
No one was killed or injured in the Feb. 3 derailment, but the incident has been described as a "PR nightmare" for Norfolk Southern and the rail industry. The derailed cars included 11 tank cars carrying hazardous materials that subsequently ignited, fueling fires that damaged an additional 12 railcars, according to the National Transportation Safety Board.
Federal officials have said an overheated bearing on a railcar was the likely cause of the derailment.