[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1103 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1103

To amend title 49, United States Code, to enhance competition among and 
  between rail carriers in order to ensure efficient rail service and 
   reasonable rail rates in any case in which there is an absence of 
             effective competition, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2001

Mr. Rockefeller (for himself, Mr. Dorgan, and Mr. Burns) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
To amend title 49, United States Code, to enhance competition among and 
  between rail carriers in order to ensure efficient rail service and 
   reasonable rail rates in any case in which there is an absence of 
             effective 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; AMENDMENT OF TITLE 49, UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Railroad 
Competition Act of 2001''.
    (b) Amendment of Title 49, United States Code.--Except as otherwise 
expressly provided, whenever in this Act an amendment or repeal is 
expressed in terms of an amendment to, or a repeal of, a section or 
other provision, the reference shall be considered to be made to a 
section or other provision of title 49, United States Code.

SEC. 2. PURPOSES.

    The purposes of this Act are as follows:
            (1) To clarify the rail transportation policy of the United 
        States by requiring the Surface Transportation Board to accord 
        greater weight to the need for increased competition between 
        and among rail carriers and consistent and efficient rail 
        service in its decisionmaking.
            (2) To eliminate unreasonable barriers to competition among 
        rail carriers serving the same geographic areas.
            (3) To ensure reasonable rail rates for captive rail 
        shippers by removing unnecessary regulatory burdens from the 
        rate reasonableness procedures of the Surface Transportation 
        Board.

              TITLE I--INCREASED RAIL-TO-RAIL COMPETITION

SEC. 101. FOSTERING OF RAIL-TO-RAIL COMPETITION.

    Section 11101(a) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by striking ``A rail carrier'' at the beginning of the 
        second sentence and inserting the following:
    ``(2) 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--
            ``(A) the location of the movement on the rail system, 
        including terminal areas;
            ``(B) whether the rate established is for only part of a 
        movement between a point of origin and a destination;
            ``(C) whether the shipper has made arrangements for 
        transportation for any other part of that movement; or
            ``(D) whether the shipper has a contract with any rail 
        carrier for part or all of its transportation needs over the 
        route of movement, in which case the rate established by the 
        carrier shall not apply to transportation covered by the 
        contract.
    ``(3) A rail carrier''.

SEC. 102. PROMOTION OF COMPETITIVE RAIL SERVICE OPTIONS.

    (a) Approvals of Combinations.--Section 11324 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 ``; and''; and
                    (C) by adding at the end the following:
            ``(6) means and methods to encourage and expand competition 
        between and among rail carriers in the region affected by the 
        transaction or in the national rail system.''; and
            (2) in subsection (c), by inserting after the first 
        sentence the following: ``The Board shall impose any conditions 
        that the Board considers appropriate to encourage and expand 
        competition between and among rail carriers in the region 
        affected by the transaction or in the national rail system.''.
    (b) Applicability.--The amendments made by this section shall apply 
with respect to proceedings of the Surface Transportation Board that 
are initiated on or after the effective date specified in section 401.

SEC. 103. COMPETITIVE RAIL SERVICE IN TERMINAL AREAS.

    (a) Use of Terminal Areas.--Section 11102(a) is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``may'' in the first sentence and inserting 
        ``shall'';
            (3) by inserting after the first sentence the following: 
        ``In making any determination for the purposes of the preceding 
        sentence, the Board may not require evidence of anticompetitive 
        conduct by a rail carrier from which access is sought.'';
            (4) by striking ``The rail carriers'' at the beginning of 
        the sentence following the sentence inserted by paragraph (3) 
        and inserting the following:
    ``(2) The rail carriers''; and
            (5) by striking ``may establish conditions'' in the 
        penultimate sentence and inserting ``shall establish 
        conditions''.
    (b) Reciprocal Switching.--Section 11102(c) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``may require'' in the first 
                sentence and inserting ``shall require''; and
                    (B) by striking ``may establish'' in the last 
                sentence and inserting ``shall establish''; and
            (2) by adding at the end the following new paragraph:
    ``(3) In making any determination for the purposes of the first 
sentence of paragraph (1), the Board may not require evidence of 
anticompetitive conduct by a rail carrier from which access is 
sought.''.

   TITLE II--IMPROVEMENTS IN THE RATE REASONABLENESS PROCESS OF THE 
                      SURFACE TRANSPORTATION BOARD

SEC. 201. FILING FEES.

    Section 721 is amended by adding at the end the following new 
subsection:
    ``(f) Limitation on Fees.--The Board may not charge a fee for the 
filing of a complaint, protest, or other request for relief in an 
amount greater than fees charged by district courts of the United 
States for a comparable filing.''.

SEC. 202. SIMPLIFIED STANDARDS FOR MARKET DOMINANCE DETERMINATIONS.

    Section 10707 is amended by adding at the end the following new 
subsection:
    ``(e) The Board may not consider evidence of product or geographic 
competition in making a market dominance determination under this 
section.''.

SEC. 203. REVIEW OF RATES.

    (a) Reasonableness.--Section 10701(d) is amended by striking 
paragraph (3) and inserting the following:
    ``(3) Upon a challenge made by a shipper to the reasonableness of 
any rate established by a rail carrier in accordance with subsection 
(c) or section 11101(a) of this title, the Board shall determine the 
reasonableness of the rate without regard to whether--
            ``(A) the rate is for only part of a movement between a 
        point of origin and a destination;
            ``(B) the shipper has made arrangements for transportation 
        for any other part of that movement; or
            ``(C) the shipper currently has a contract with a rail 
        carrier for any part of the rail traffic involved, except that 
        any rate prescribed by the Board shall not apply to 
        transportation covered by such a contract.''.
    (b) Burden of Proof.--
            (1) Proving reasonableness.--Section 10701(d), as amended 
        by subsection (a), is further amended by adding at the end the 
        following new paragraphs:
    ``(4) In the determining of whether a rate established by a rail 
carrier is reasonable for the purposes of this subsection, the rail 
carrier shall have the burden of proving that the maximum rate set 
forth in the complainant's evidence does not exceed the reasonable 
maximum rate.
    ``(5) The sequence for the presentation of evidence by the 
complainant and the defendant that is provided under the rules of the 
Board governing the procedural schedule for cases under this 
subsection, as in effect on the date of the enactment of the Railroad 
Competition Act of 2001, shall apply in such cases.''.
            (2) Applicability.--The amendment made by this section 
        shall apply with respect to proceedings of the Surface 
        Transportation Board that are initiated on or after the 
        effective date specified in section 401.

 TITLE III--IMPROVEMENTS IN THE OVERSIGHT OF THE RAIL INDUSTRY AND IN 
           THE OPERATION OF THE SURFACE TRANSPORTATION BOARD

SEC. 301. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

    Section 10101 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 are as follows:
            ``(1) To ensure effective competition among rail carriers 
        at origins and destinations.
            ``(2) To maintain reasonable rates in the absence of 
        effective competition.
            ``(3) To maintain consistent and efficient rail 
        transportation service for shippers, including the timely 
        provision of rail cars requested by shippers.
            ``(4) To ensure that smaller carload and intermodal 
        shippers are not precluded from accessing rail systems due to 
        volume requirements.''.

SEC. 302. ADEQUACY OF REVENUE.

    (a) Repeal of Authority To Establish Revenue Standards and 
Procedures.--Section 10704(a) is amended by striking paragraphs (2) and 
(3).
    (b) Conforming Amendments.--
            (1) Rail transportation policy.--Section 10101 is amended 
        by striking ``, as determined by the Board'' in paragraph (3) 
        of subsection (a), as designated by section 3(1).
            (2) Reasonableness of rates.--Section 10701(d)(2) is 
        amended by striking ``, as established by the Board under 
        section 10704(a)(2) of this title''.
            (3) Clerical amendment.--Section 10704(a), as amended by 
        subsection (a), is further amended by striking ``(1)'' after 
        ``(a)''.

SEC. 303. ARBITRATION.

    (a) Authority.--Chapter 105 is amended by adding at the end the 
following new section:
``Sec. 10503. Arbitration of qualifying controversies
    ``(a) Authority.--(1) Subject to subsection (b), disputes subject 
to the statutory jurisdiction of the Board that involve the 
reasonableness of rates or other charges or the provision of service 
may be resolved under the alternative dispute resolution process 
prescribed by the Board for the arbitration of such disputes upon the 
election of a party filing with the Board a written complaint regarding 
the rates, charges, or service, as the case may be.
    ``(2) Discovery shall be authorized in a case submitted to 
arbitration under this section if requested by a party to the 
arbitration.
    ``(b) Disputes Involving Rates and Other Charges.--In an 
arbitration of a dispute on a rate or other financial charge under the 
process applied under subsection (a), each party to the dispute shall 
submit to the arbitrator the party's final proposal regarding what 
level of rate or charge is appropriate. All such proposals shall be 
submitted simultaneously. The arbitrator shall select one of the 
submitted proposals, without modification, to be the arbitrator's final 
decision on the disputed rate or charge.
    ``(c) Judicial Review.--(1) The district courts of the United 
States shall have jurisdiction to review the final decision of an 
arbitrator in a proceeding conducted under subsection (a).
    ``(2) An action for review of a final decision of an arbitrator 
referred to in paragraph (1) may be brought only in the district court 
of the United States for the district in which the party electing the 
arbitration under subsection (a) has its principal place of business.
    ``(3) An action for review of the final decision of an arbitrator 
may not be commenced under this subsection more than 30 days after the 
date on which the arbitrator issues the decision.
    ``(4) In an action brought under this subsection for review of the 
decision of an arbitrator, the district court may--
            ``(A) vacate the decision on any ground set forth in 
        section 10 of title 9; or
            ``(B) modify or correct the decision on any ground set 
        forth in section 11 of title 9.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``10503. Arbitration of qualifying controversies.''.

SEC. 304. RAIL CARRIER SERVICE QUALITY PERFORMANCE REPORTS.

    (a) In General.--Chapter 111 is amended by adding at the end of 
subchapter III the following new section:
``Sec. 11146. Service quality reports
    ``(a) Monthly Report of Carriers.--(1) Regulations prescribed by 
the Secretary of Transportation shall require each rail carrier to 
submit to the Secretary a monthly report on the quality of the service 
provided by the rail carrier.
    ``(2) The report shall contain, for the month covered by the 
report, information about--
            ``(A) the carrier's on-time performance;
            ``(B) the carrier's car availability deadline performance;
            ``(C) the average speed at which the carrier's trains were 
        operated;
            ``(D) the average time that the carrier's trains dwelled in 
        terminals;
            ``(E) the number of the carrier's cars that were loaded 
        (expressed separately for each major commodity group); and
            ``(F) any other aspects of the carrier's performance (as a 
        rail carrier) that the Secretary may require.
    ``(3) The information shall be set forth in the monthly report in a 
uniform format prescribed by the Secretary.
    ``(b) Availability of Monthly Report to Board and Public.--(1) The 
Secretary shall furnish a copy of the monthly reports of rail carriers 
to the Surface Transportation Board not later than the next business 
day following receipt by the Secretary.
    ``(2) The Secretary shall make the monthly reports of rail carriers 
available to the public.
    ``(c) Annual Report to Congress.--The Secretary shall transmit to 
Congress an annual report containing a summary and discussion of the 
information in the reports submitted under this section to the 
Secretary for the months of the year covered by the annual report.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
11145 the following:

``11146. Service quality reports.''.

SEC. 305. PERIODIC STUDY OF COMPETITION AMONG RAIL CARRIERS.

    (a) Requirement for Study.--
            (1) Triennial study.--Chapter 101 is amended by adding at 
        the end the following new section:
``Sec. 10103. Periodic study of rail carrier competition and processes 
              of the Surface Transportation Board
    ``(a) Requirement for Study.--Every three years, the Secretary of 
Transportation shall conduct a comprehensive study of rail carrier 
competition and the processes of the Board. The study shall include an 
assessment of the following:
            ``(1) The availability of effective competitive options 
        among and between rail carriers.
            ``(2) The effectiveness of the processes of the Surface 
        Transportation Board, including the process used for 
        determining the reasonableness of rates of rail carriers.
            ``(3) The availability to rail users of effective 
        regulatory dispute resolution options.
    ``(b) Study To Include Assessment of Rail-to-Rail Competition.--In 
carrying out the study, the Board shall assess the overall level of 
rail-to-rail competition in the rail carrier industry in the United 
States. In making the assessment, the Board shall consider the views of 
users of the services of rail carriers.
    ``(c) Report to Congress.--Not later than November 15 of each year 
in which a study is conducted under subsection (a), the Secretary shall 
submit a report on the results of the study to Congress. The report 
shall include the following:
            ``(1) The Board's assessment of the overall level of rail-
        to-rail competition in the rail carrier industry in the United 
        States.
            ``(2) The markets that have limited rail-to-rail 
        competition.
            ``(3) Any recommendations for enhancing rail-to-rail 
        competition, particularly in markets identified as having 
        limited rail-to-rail competition.
            ``(4) An assessment of the Board's performance of its 
        purpose to promote and enhance competition among and between 
        railroads by--
                    ``(A) addressing complaints regarding rates and 
                service; and
                    ``(B) promulgating regulations of general 
                applicability or taking other actions.
            ``(5) Any recommendations for modification of any of the 
        decisions of the Surface Transportation Board (or decisions of 
        the former Interstate Commerce Commission continuing in effect) 
        or for modification of the general authority or jurisdiction of 
        the Board.
            ``(6) Any other findings, analyses, assessments, and 
        recommendations that result from the study.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following:

``10103. Periodic study of rail carrier competition and processes of 
                            the Surface Transportation Board.''.
    (b) Time for First Study.--The first study under section 10103 of 
title 49, United States Code (as added by subsection (a)), shall be 
carried out not later than two years after the effective date specified 
in section 401.

                       TITLE IV--EFFECTIVE DATES

SEC. 401. EFFECTIVE DATE.

    Except as provided in section 402, this Act and the amendments made 
by this Act shall take effect on October 1, 2001.

SEC. 402. EXCEPTIONS.

    The following provisions shall take effect on the date of the 
enactment of this Act:
            (1) Section 303 and the amendments made in that section.
            (2) Section 305.
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