S.Amdt. 2608

1. Adds SEC. __. AREAS OF INADEQUATE RAIL COMPETITION at the in the amendment being amended

   Adds a section

   Inserted: SEC. __. AREAS OF INADEQUATE RAIL COMPETITION.

   Inserted: (a) Designation and Remedies.--

   Inserted: (1) In general.--Chapter 105 of title 49, United States Code, is amended by adding at the end the following new section:

   Inserted: "Sec. 10503. Areas of inadequate rail competition

   Inserted: "(a) Designation.--The Board shall designate any State or part of a State as an area of inadequate rail competition after finding either of the grounds set forth in subsection (b). An area of inadequate rail competition may be limited to be composed of the facilities of a group of shippers or receivers of one or more specific commodities within a geographic area.

   Inserted: "(b) Grounds for Designation.--The grounds for designating a State or part of a State as an area of inadequate rail competition are as follows:

   Inserted: "(1) The State or part of a State encompasses a significant number of rail shipping origins and destinations that are served exclusively by only one Class I railroad.

   Inserted: "(2) A significant number of the persons that ship by rail or receive rail shipments in the State or part of a State--

   Inserted: "(A) usually find it necessary to pay rates for the rail shipments that exceed the rates necessary to yield recovery by the rail carrier of 180 percent of revenue-variable costs, as determined under standards applied in the administration of section 10707(d) of this title; or

   Inserted: "(B) have experienced competitive disadvantage in the marketplace or other economic adversity because of high cost or poor quality of rail service in the State or part of a State, as the case may be.

   Inserted: "(c) Authorized Petitioners.--The following persons are authorized to petition the Board for a designation of a State or part of a State as an area of inadequate rail competition:

   Inserted: "(1) The chief executive of the State or another official of the State who is designated to do so by the chief executive or is authorized to do so under the laws of that State.

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   Inserted: "(2) A Member of Congress from the State.

   Inserted: "(3) As provided in section 10504 of this title, the Rail Customer Advocate of the Department of Agriculture and any State official referred to in subsection (a)(2) of such section.

   Inserted: "(4) A person that ships by rail or receives rail shipments in that State or part of a State.

   Inserted: "(d) Actions.--Upon designating a State or a part of a State as an area of inadequate rail competition, the Board shall attempt to resolve, within 60 days after the date of the designation, the conditions described in subsection (b) that justify the designation. In addition to providing other remedies authorized by law, the Board may, when requested in a petition, order any of the following actions:

   Inserted: "(1) Provision of reciprocal switching and access to tracks of another rail carrier beyond the limits specified in section 11102(a) of this title.

   Inserted: "(2) Haulage transportation of railroad cars by a rail carrier to or from facilities that such carrier alone physically serves on behalf of another rail carrier, for a fee prescribed by the Board.

   Inserted: "(3) Regarding rates on any rail segments within or connected to the area of inadequate rail competition on which rail service is susceptible to delay or interruption due to traffic congestion--

   Inserted: "(A) expedited review of the reasonableness of the rates under section 10701(d)(3) of this title; or

   Inserted: "(B) expedited final offer arbitration of the reasonableness of the rates under section 11708(e) of this title.

   Inserted: "(4) Expedited review, under section 10701(d)(3) of this title, of the reasonableness of--

   Inserted: "(A) increases in rates or other charges; and

   Inserted: "(B) new transportation service tariffs.

   Inserted: "(5) Expedited review of whether a rate violates the prohibition against discriminatory rates contained in section 10741 of this title, without regard to subsection (b)(2) of such section.

   Inserted: "(e) Limitations and Conditions Applicable to Specific Remedies.--(1) In the case of a petition for an order for reciprocal switching or access to tracks of another rail carrier under subsection (d)(1), the Board may not require that there be evidence of anticompetitive conduct by a rail carrier as a prerequisite for ordering such action.

   Inserted: "(2) In the case of a petition for expedited review of rates or final offer arbitration of rates under subsection (d)(3)--

   Inserted: "(A) the Board or arbitrator or panel of arbitrators, as the case may be, shall accord, with respect to rail transportation of a specific commodity, significant persuasive weight to evidence comparing--

   Inserted: "(i) rates charged for rail transportation of various quantities of that commodity within the area of inadequate rail competition; and

   Inserted: "(ii) rates charged for rail transportation of similar quantities of that commodity or any similar commodity or commodities in areas where there is competition among rail carriers for shipments of such commodity or commodities; and

   Inserted: "(B) the Board or arbitrator or panel of arbitrators, as the case may be, shall not apply the stand-alone cost test or any other test that the Board applies in determining the reasonableness of rates reviewed in cases not involving rail service in an area of inadequate rail competition.

   Inserted: "(3) In the case of a petition for expedited review, under subsection (d)(4), of an increase of a rate or other charge or the imposition of a new service tariff by a rail carrier--

   Inserted: "(A) the rail carrier shall have the burden of proving the reasonableness of the increase or tariff charge; and

   Inserted: "(B) the Board shall consider any evidence comparing--

   Inserted: "(i) the increased rate or other charge, or the tariff charge, as the case may be; and

   Inserted: "(ii) corresponding rates, other charges, or new service tariff charges, respectively, imposed for rail transportation in areas where there is a significant level of competition among the rail carriers.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

   Inserted: 10503. Areas of inadequate rail competition.".

   Inserted: (b) Study and Report on Areas of Inadequate Rail Competition.--

   Inserted: (1) Study required.--The Rail Customer Advocate of the Department of Agriculture shall carry out a study of the process provided under section 10503 of title 49, United States Code (as added by subsection (a)), for challenging and remedying conditions described in subsection (b) of such section in States and parts of States designated under such section as areas of inadequate rail competition insofar as such conditions adversely affect rail shippers of agricultural or forestry commodities and products.

   Inserted: (2) Findings on effectiveness of process.--The Rail Customer Advocate shall make findings, on the basis of the study under paragraph (1), regarding the effectiveness of the process for remedying the conditions studied, particularly in the case of customers that ship agricultural or forestry commodities and products by rail in annual volumes of 1,500 rail cars or less.

   Inserted: (3) Report.--Not later than 3 years after the date of the enactment of this Act, the Rail Customer Advocate shall submit to Congress a report on the results of the study under paragraph (1), including the findings required under paragraph (2).

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   At the end of the amendment, add the following:

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As printed