Surface Transportation Board Reform Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2192 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 2192

To authorize appropriations for the Surface Transportation Board, to
enhance railroad competition, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 21, 2003

Mr. Oberstar introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure

_______________________________________________________________________

A BILL

To authorize appropriations for the Surface Transportation Board, to
enhance railroad competition, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Surface Transportation Board Reform
Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--RAILROAD COMPETITION

Sec. 101. Clarification of rail transportation policy.
Sec. 102. Fostering rail to rail competition.
Sec. 103. Simplified relief process for small captive grain shippers.
Sec. 104. Competitive rail service in terminal areas.
Sec. 105. Simplified standards for market dominance.
Sec. 106. Revenue adequacy determinations.
Sec. 107. Rail carrier service quality performance reports.
TITLE II--MISCELLANEOUS

Sec. 201. Effect of mergers on local communities and rail passenger
transportation.
Sec. 202. Use of facilities by commuter authorities.
Sec. 203. Side tracks.
Sec. 204. Public availability of water carrier tariffs.
TITLE III--AUTHORIZATION OF APPROPRIATIONS

Sec. 301. Authorization of appropriations.

TITLE I--RAILROAD COMPETITION

SEC. 101. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

Section 10101 of title 49, United States Code, is amended--
(1) by inserting ``(a) In General.--'' before ``In
regulating''; and
(2) by adding at the end the following:
``(b) Primary Objectives.--The primary objectives of the rail
transportation policy of the United States shall be--
``(1) to ensure effective competition among rail carriers
at origin and destination;
``(2) to maintain reasonable rates in the absence of
effective competition;
``(3) to maintain consistent and efficient rail
transportation service to shippers, including the timely
provision of railcars requested by shippers; and
``(4) to ensure that smaller carload and intermodal
shippers are not precluded from accessing rail systems due to
volume requirements.''.

SEC. 102. FOSTERING RAIL TO RAIL COMPETITION.

(a) Establishment of Rate.--Section 11101(a) of title 49, United
States Code, is amended by inserting after the first sentence the
following: ``Upon the request of a shipper, a rail carrier shall
establish a rate for transportation and provide service requested by
the shipper between any two points on the system of that carrier where
traffic originates, terminates, or may reasonably be interchanged. A
carrier shall establish a rate and provide service upon such request
without regard to--
``(1) whether the rate established is for only part of a
movement between an origin and a destination;
``(2) whether the shipper has made arrangements for
transportation for any other part of that movement; or
``(3) whether the shipper currently has a contract with any
rail carrier for part or all of its transportation needs over
the route of movement.
If such a contract exists, the rate established by the carrier shall
not apply to transportation covered by the contract.''.
(b) Review of Reasonableness of Rates.--Section 10701(d) of title
49, United States Code, is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) A shipper may challenge the reasonableness of any rate
established by a rail carrier in accordance with section 11101(a) or
with subsection (c) of this section. The Board shall determine the
reasonableness of the rate so challenged without regard to--
``(A) whether the rate established is for only part of a
movement between an origin and a destination;
``(B) whether the shipper has made arrangements for
transportation for any other part of that movement; or
``(C) whether the shipper currently has a contract with a
rail carrier for any part of the rail traffic at issue,
provided that the rate prescribed by the Board shall not apply
to transportation covered by such a contract.''.

SEC. 103. SIMPLIFIED RELIEF PROCESS FOR SMALL CAPTIVE GRAIN SHIPPERS.

(a) Limitation on Fees.--Notwithstanding any other provision of
law, the Surface Transportation Board shall not impose fees in excess
of $1,000 for services collected from an eligible facility in
connection with rail maximum rate complaints under part 1002 of title
49, Code of Federal Regulations.
(b) Simplified Rate and Service Relief.--Section 10701 of title 49,
United States Code, is amended by adding at the end thereof the
following:
``(e) Simplified Rates and Services.--
``(1) In general.--Notwithstanding any other provision of
law, a rail carrier may not charge a rate for shipments from or
to an eligible facility which results in a revenue-to-variable
cost percentage, using system average costs, for the
transportation service to which the rate applies that is
greater than 180 percent.
``(2) Acceptance of requests.--Notwithstanding any other
provision of law, a rail carrier shall accept all requests for
grain service from an eligible facility up to a maximum of 110
percent of the grain carloads shipped from or to the facility
in the immediately preceding calendar year. If, in a majority
of instances, a rail carrier does not in any 45-day period,
supply the number of grain cars so ordered by an eligible
facility or does not initiate service within 30 days of the
reasonably specified loading date, the eligible facility may
request that an alternative rail carrier provide the service
using the tracks of the original carrier. If the alternative
rail carrier agrees to provide such service, and such service
can be provided without substantially impairing the ability of
the carrier whose tracks reach the facility to use such tracks
to handle its own business, the Board shall order the
alternative carrier to commence service and to compensate the
other carrier for the use of its tracks. The alternative
carrier shall provide reasonable compensation to the original
carrier for the use of the original carrier's tracks.
``(3) Cancellation penalties.--A carrier may accept car
orders under paragraph (2) subject to reasonable penalties for
service requests that are canceled by the requester. If the
carrier fills such orders more than 15 days after the
reasonably specified loading date, the carrier may not assess a
penalty for canceled car orders.
``(4) Damages.--A rail carrier that fails to provide
service under the requirements of paragraph (2) is liable for
damages to an eligible facility that does not have access to an
alternative carrier, including lost profits, attorney's fees,
and any other consequences attributable to the carrier's
failure to provide the ordered service. A claim for such damage
may be brought in an appropriate United States District Court
or before the Board.
``(5) Timetable for board proceeding.--The Board shall
conclude any proceeding brought under this subsection no later
than 180 days from the date a complaint is filed.
``(6) Definitions.--In this subsection:
``(A) Eligible facility.--The term `eligible
facility' means a shipper facility that--
``(i) is the origin or destination for not
more than 4,000 carloads annually of grain as
defined in section 3(g) of the United States
Grain Standards Act (7 U.S.C. 75(g));
``(ii) is served by a single rail carrier
at its origin;
``(iii) has more than 60 percent of the
facility's inbound or outbound grain and grain
product shipments (excluding the delivery of
grain to the facility by producers), measured
by weight or bushels moved via a rail carrier
in the immediately preceding calendar year; and
``(iv) the rate charged by the rail carrier
for the majority of shipments of grain and
grain products from or to the facility,
excluding premium for special service programs,
results in a revenue-to-variable cost
percentage, using system average costs, for the
transportation to which the rate applies that
is equal to or greater than 180 percent.
``(B) Reasonable compensation.--The term
`reasonable compensation' shall mean an amount no
greater than the total shared costs of the original
carrier and the alternative carrier incurred, on a
usage basis, for the provision of service to an
eligible facility. If the carriers are unable to agree
on compensation terms within 15 days after the facility
requests service from the alternative carrier, the alternative carrier
or the eligible facility may request the Board to establish the
compensation and the Board shall establish the compensation within 45
days after such request is made.
``(C) Original carrier.--The term `original
carrier' means a rail carrier which provides the only
rail service to an eligible facility using its own
tracks or provides such service over an exclusive lease
of the tracks serving the eligible facility.
``(D) Alternative carrier.--The term `alternative
carrier' means a rail carrier that is not an original
carrier to an eligible facility.''.

SEC. 104. COMPETITIVE RAIL SERVICE IN TERMINAL AREAS.

(a) Trackage Rights.--Section 11102(a) of title 49, United States
Code, is amended--
(1) by striking ``may'' in the first sentence and inserting
``shall'';
(2) by inserting after ``business.'' the following: ``In
making this determination, the Board shall not require evidence
of anticompetitive conduct by the rail carrier from which
access is sought.''; and
(3) by striking ``may'' in the next-to-last sentence and
inserting ``shall''.
(b) Reciprocal Switching.--Section 11102(c)(1) of title 49, United
States Code, is amended--
(1) by striking ``may'' in the first sentence and inserting
``shall'';
(2) by inserting after ``service.'' the following: ``In
making this determination, the Board shall not require evidence
of anticompetitive conduct by the rail carrier from which
access is sought.''; and
(3) by striking ``may'' in the last sentence and inserting
``shall''.

SEC. 105. SIMPLIFIED STANDARDS FOR MARKET DOMINANCE.

Section 10707(d)(1)(A) of title 49, United States Code, is amended
by adding at the end thereof the following: ``The Board shall not
consider evidence of product or geographic competition in making a
market dominance determination under this section.''.

SEC. 106. REVENUE ADEQUACY DETERMINATIONS.

(a) Rail Transportation Policy.--Section 10101(a)(3) of title 49,
United States Code (as so redesignated by section 101 of this Act), is
amended by striking ``revenues, as determined by the Board;'' and
inserting ``revenues;''.
(b) Standards for Rates.--Section 10701(d)(2) of title 49, United
States Code, is amended by striking ``revenues, as established by the
Board under section 10704(a)(2) of this title'' and inserting
``revenues''.
(c) Revenue Adequacy Determinations.--Section 10704(a) of title 49,
United States Code, is amended--
(1) by striking ``(a)(1)'' and inserting ``(a)''; and
(2) by striking paragraphs (2) and (3).

SEC. 107. RAIL CARRIER SERVICE QUALITY PERFORMANCE REPORTS.

(a) In General.--Chapter 5 of subtitle I of title 49, United States
Code, is amended by adding at the end thereof the following:

``SUBCHAPTER III--PERFORMANCE REPORTS

``Sec. 541. Rail carrier service quality performance reports
``(a) In General.--The Secretary of Transportation shall require,
by regulation, each rail carrier to submit a monthly report to the
Secretary, in such uniform format as the Secretary may by regulation
prescribe, containing information about--
``(1) its on-time performance;
``(2) its car availability deadline performance;
``(3) its average train speed;
``(4) its average terminal dwell time;
``(5) the number of its cars loaded (by major commodity
group); and
``(6) such other aspects of its performance as a rail
carrier as the Secretary may require.
``(b) Information Furnished to STB; the Public.--The Secretary
shall furnish a copy of each report required under subsection (a) to
the Surface Transportation Board no later than the next business day
following its receipt by the Secretary, and shall make each such report
available to the public.
``(c) Annual Report to the Congress.--The Secretary shall transmit
to the Congress an annual report based upon information received by the
Secretary under this section.
``(d) Definitions.--In this section, the definitions in section
10102 apply.''.
(b) Conforming Amendment.--The chapter analysis for chapter 5 of
subtitle I of title 49, United States Code, is amended by adding at the
end thereof the following:

``SUBCHAPTER III--PERFORMANCE REPORTS

``541. Rail carrier service quality performance reports.''.

TITLE II--MISCELLANEOUS

SEC. 201. EFFECT OF MERGERS ON LOCAL COMMUNITIES AND RAIL PASSENGER
TRANSPORTATION.

Section 11324 of title 49, United States Code, is amended--
(1) in subsection (b)--
(A) by striking ``and'' at the end of paragraph
(4);
(B) by striking the period at the end of paragraph
(5) and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(6) the safety and environmental effects of the proposed
transaction, including the effect on local communities, and the
public interest in enforcing Federal, State, and local safety
and environmental laws; and
``(7) the effect of the proposed transaction on rail
passenger transportation.''; and
(2) in subsection (c), by inserting ``The Board shall
impose conditions under this subsection to mitigate the effects
of the transaction on local communities when such conditions
are in the public interest. In imposing such conditions, the
Board shall consider the effect of those conditions on local
communities, and shall consider the public interest in the
enforcement of Federal, State, and local safety and
environmental laws.'' after ``effects are alleviated.''.

SEC. 202. USE OF FACILITIES BY COMMUTER AUTHORITIES.

(a) Amendment.--Chapter 241 of title 49, United States Code, is
amended by adding at the end the following new section:
``Sec. 24105. Use of facilities by commuter authorities
``A commuter authority may make an agreement with a rail carrier or
regional transportation authority to use facilities of, and have
services provided by, the carrier or authority in the same manner and
under the same conditions as may Amtrak under section 24308. In
carrying out this section, the Board shall ensure that commuter
authorities are able to provide commuter rail passenger transportation
that develops the potential of modern rail transportation to meet the
commuter rail passenger transportation needs of the United States.''.
(b) Table of Sections.--The table of sections for such chapter 241
is amended by adding at the end the following new item:

``24105. Use of facilities by commuter authorities.''.

SEC. 203. SIDE TRACKS.

Section 10906 of title 49, United States Code, and the item
relating thereto in the table of sections of chapter 109 of that title,
are repealed.

SEC. 204. PUBLIC AVAILABILITY OF WATER CARRIER TARIFFS.

Section 13702(b) of title 49, United States Code, is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Tariff availability.--A carrier providing
transportation or service described in subsection (a)(1) shall
make its tariffs available electronically to any person,
without time, quantity, or other limitation, through
appropriate access from remote locations, and a reasonable
charge may be assessed for such access. No charge may be
assessed a Federal agency for such access.'';
(2) in paragraph (3), by striking ``tariff filings'' and
inserting ``tariffs'';
(3) in paragraph (4), by striking ``filed under this
subsection''; and
(4) in paragraph (5), by striking ``filing complete tariffs
under this subsection'' and inserting ``changing their complete
electronic tariffs''.

TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

Section 705 of title 49, United States Code, is amended by striking
paragraphs (1) through (3) and inserting the following:
``(1) $20,000,000 for fiscal year 2004;
``(2) $25,000,000 for fiscal year 2005; and
``(3) $27,000,000 for fiscal year 2006.''.
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