[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 919 Introduced in Senate (IS)]






109th CONGRESS
  1st Session
                                 S. 919

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, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2005

  Mr. Burns (for himself, Mr. Rockefeller, Mr. Dorgan, Mr. Craig, Mr. 
    Dayton, Mr. Vitter, Mr. Thune, Mr. Johnson, Mr. Baucus, and Mr. 
   Coleman) 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, 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 2005''.
    (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.

                TITLE I--RAIL TRANSPORTATION COMPETITION

SEC. 101. 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--
            ``(1) to promote effective competition among rail carriers 
        at origins and destinations;
            ``(2) to maintain reasonable rates in the absence of 
        effective competition; and
            ``(3) to maintain consistent and efficient rail 
        transportation service for shippers, including the timely 
        provision of rail cars requested by shippers.''.

SEC. 102. REQUIREMENT FOR RATE QUOTES.

    Section 11101(a) is amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end of subsection (a) 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.''.

SEC. 103. ELIMINATION OF BARRIERS TO COMPETITION BETWEEN CLASS I 
              CARRIERS AND CLASS II AND CLASS III RAIL CARRIERS.

    (a) Restriction on Approval or Exemption of Rail Carriers' 
Activities by Surface Transportation Board.--Section 10901 is amended 
by adding at the end the following:
    ``(e)(1) The Board may not issue under this section a certificate 
authorizing an activity described in subsection (a), or exempt from the 
applicability of this section under section 10502 such an activity, 
that involves a transfer of interest in a line of railroad, from a 
Class I rail carrier to a Class II or a Class III rail carrier, if the 
activity directly or indirectly would result in--
            ``(A) a restriction of the ability of the Class II or Class 
        III rail carrier to interchange traffic with other carriers; or
            ``(B) a restriction of competition between or among rail 
        carriers in the region affected by the activity in a manner or 
        to an extent that would violate antitrust laws of the United 
        States (notwithstanding any exemption from the applicability of 
        antitrust laws that is provided under section 10706 of this 
        title or any other provision of law).
    ``(2) Any party to an activity referred to in paragraph (1) that 
has been carried out, or any rail shipper affected by such an activity, 
may request that the Board review the activity to determine whether the 
activity has resulted in a restriction described in that paragraph. If, 
upon review of the activity, the Board determines that the activity 
resulted in such a restriction and the restriction has been in effect 
for at least 10 years, the Board shall declare the restriction to be 
unlawful and terminate the restriction unless the Board finds that the 
termination of the restriction would materially impair the ability of 
an affected rail carrier to provide service to the public or would 
otherwise be inconsistent with the public interest.
    ``(3) In this subsection:
            ``(A) The term `antitrust laws' has the meaning given that 
        term in subsection (a) of the first section of the Clayton Act 
        (15 U.S.C. 12(a)), except that such term also means section 5 
        of the Federal Trade Commission Act (15 U.S.C. 45) to the 
        extent that such section 5 applies to unfair methods of 
        competition.
            ``(B) The terms `Class I rail carrier', `Class II rail 
        carrier', and `Class III rail carrier' mean, respectively, a 
        rail carrier classified under regulations of the Board as a 
        Class I rail carrier, Class II rail carrier, and Class III rail 
        carrier.''.
    (b) Applicability to Previously Approved or Exempted Activities.--
Paragraph (2) of section 10901(e) of title 49, United States Code (as 
added by subsection (a)), shall apply with respect to any activity 
referred to in that paragraph for which the Surface Transportation 
Board issued a certificate authorizing the activity under section 10901 
of such title, or exempted the activity from the necessity for such a 
certificate under section 10502 of such title, before, on, or after the 
date of the enactment of this Act.

SEC. 104. RECIPROCAL SWITCHING ON COMPETITIVE TERMS.

    Section 11102(c) is amended--
            (1) by striking ``may require'' in paragraph (1) and 
        inserting ``shall require'';
            (2) by striking ``may establish'' in paragraph (1) 
        inserting ``shall establish''; and
            (3) by adding at the end the following:
    ``(3) In making any finding for the purposes of the first sentence 
of paragraph (1), the Board may not require that there be evidence of 
anticompetitive conduct by a rail carrier from which access is 
sought.''.

SEC. 105. AREAS OF INADEQUATE RAIL COMPETITION.

    (a) Designation and Remedies.--
            (1) In general.--Chapter 105 is amended by adding at the 
        end the following:
``Sec. 10503. Areas of inadequate rail competition
    ``(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.
    ``(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:
            ``(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.
            ``(2) A significant number of the persons that ship by rail 
        or receive rail shipments in the State or part of a State--
                    ``(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); or
                    ``(B) has 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.
    ``(c) Authorized Petitioners.--The following persons may petition 
the Board for a designation of a State or part of a State as an area of 
inadequate rail competition:
            ``(1) The Governor from the State.
            ``(2) A Member of Congress from the State.
            ``(3) As provided in section 10504, the Rail Customer 
        Advocate of the Department of Agriculture and any State 
        official referred to in subsection (a)(2) of such section.
    ``(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:
            ``(1) Provision of reciprocal switching and access to 
        tracks of another rail carrier beyond the limits specified in 
        section 11102(a) of this title.
            ``(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.
            ``(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--
                    ``(A) expedited review of the reasonableness of the 
                rates under section 10701(d)(3); or
                    ``(B) expedited final offer arbitration of the 
                reasonableness of the rates under section 11708(e).
            ``(4) Expedited review, under section 10701(d)(3), of the 
        reasonableness of--
                    ``(A) increases in rates or other charges; and
                    ``(B) new transportation service tariffs.
            ``(5) Expedited review of whether a rate violates the 
        prohibition against discriminatory rates contained in section 
        10741, without regard to subsection (b)(2) of such section.
    ``(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.
            ``(2) In the case of a petition for expedited review of 
        rates or final offer arbitration of rates under subsection 
        (d)(3)--
                    ``(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--
                            ``(i) rates charged for rail transportation 
                        of various quantities of that commodity within 
                        the area of inadequate rail competition; and
                            ``(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
                    ``(B) the Board or arbitrator or panel of 
                arbitrators, as the case may be, shall not apply the 
                stand-alone cost 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.
            ``(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--
                    ``(A) the rail carrier shall have the burden of 
                proving the reasonableness of the increase or tariff 
                charge; and
                    ``(B) the Board shall consider any evidence 
                comparing--
                            ``(i) the increased rate or other charge, 
                        or the tariff charge, as the case may be; and
                            ``(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.''.
            (2) Clerical amendment.--The chapter analysis for chapter 
        105 is amended by inserting after the item relating to section 
10502 the following:

``10503. Areas of inadequate rail competition.''.
    (b) Study and Report on Areas of Inadequate Rail Competition.--
            (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.
            (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.
            (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).

                         TITLE II--RAIL SERVICE

SEC. 201. RAIL SERVICE.

    (a) Public Notice.--The Board shall, within 7 days after receipt of 
a formal or informal complaint by the Board or any Member or staff of 
the Board, post on the Board's internet web site information 
identifying the railroad in question, the general geographic area of 
the customer's movement, a general description of the service 
complaint, the date upon which the service problem occurred and the 
date notice of the service complaint was made to the Board, any Member 
or staff of the Board. The Board shall not identify the rail customer, 
unless the customer has consented in writing to the release of this 
information. When and if the service complaint is resolved, whether or 
not by action of the Board or any Member or staff of the Board, the 
Board shall amend the information posted to indicate that the service 
complaint has been resolved, the means of its resolution, and the date 
of its resolution.
    (b) Annual Report to Congress.--The Board shall, by March 15th of 
each year, file with Congress, and post on its internet web site, a 
comprehensive report on the service complaints received in the previous 
calendar year for each Class I railroad, including all of the 
information posted for such service complaints on the internet web site 
of the Board.
    (c) Time Limit on Petitions for Injunctive Relief.--Section 721 is 
amended by adding at the end the following:
    ``(f) Time Limit on Petitions for Injunctive Relief.--If a 
complaint is filed and injunctive or similar relief is sought within 20 
days after the publication of a new or revised rail rate, rule, or 
practice, based on an allegation of unlawfulness other than an 
allegation that a rate level is not reasonable within the meaning of 
section 10701(d) of this title, the Board shall determine whether or 
not to grant the requested relief within 90 days of receiving the 
request. If the moving party establishes that the rule of practice 
complained of is unlawful per se, there shall be a strong presumption 
of irreparable harm regardless of the availability of monetary relief. 
If the Board denies injunctive or similar relief based in whole or in 
part on the absence of irreparable harm due to the availability of 
adequate monetary relief, then the Board may award requested monetary 
damages to the complaining party if that party prevails in its 
complaint.''.

         TITLE III--REASONABLE RATES FOR CAPTIVE RAIL CUSTOMERS

SEC. 301. ARBITRATION OF CERTAIN RAIL RATE, SERVICE, AND OTHER 
              DISPUTES.

    (a) In General.--
            (1) Authority.--Chapter 117 is amended by adding at the end 
        the following:
``Sec. 11708. Arbitration of certain rail rate, service, and other 
              disputes
    ``(a) Election of Arbitration.--A dispute described in subsection 
(b) shall be submitted for resolution by arbitration upon the election 
of any party to the dispute that is not a rail carrier.
    ``(b) Covered Disputes.--
            ``(1) In general.--Except as provided in paragraph (2), 
        subsection (a) applies to any dispute between a party described 
        in subsection (a) and a rail carrier that--
                    ``(A) arises under section 10701(c), 10701(d), 
                10702, 10704(a)(1), 10707, 10741, 10745, 10746, 
                11101(a), 11102, 11121, 11122, or 11706 of this title; 
                and
                    ``(B) involves--
                            ``(i) the payment of money;
                            ``(ii) a rate or charge imposed by the rail 
                        carrier; or
                            ``(iii) transportation or other service by 
                        the rail carrier.
            ``(2) Exception.--Subsection (a) does not apply to a 
        dispute if the resolution of the dispute would necessarily 
        involve the promulgation of regulations generally applicable to 
        all rail carriers.
    ``(c) Arbitration Procedures.--The Secretary of Transportation 
shall prescribe in regulations the procedures for the resolution of 
disputes submitted for arbitration under subsection (a). The 
regulations shall include the following:
            ``(1) Procedures, including time limits, for the selection 
        of an arbitrator or panel of arbitrators for a dispute from 
        among arbitrators listed on the roster of arbitrators 
        established and maintained by the Secretary under subsection 
        (d)(1).
            ``(2) Policies, requirements, and procedures for the 
        compensation of each arbitrator for a dispute to be paid by the 
        parties to the dispute.
            ``(3) Procedures for expedited arbitration of a dispute, 
        including procedures for discovery authorized in the exercise 
        of discretion by the arbitrator or panel of arbitrators.
    ``(d) Selection of Arbitrators.--
            ``(1) In general.--The Secretary of Transportation shall 
        establish, maintain, and revise as necessary a roster of 
        arbitrators who--
                    ``(A) are experienced in transportation or economic 
                issues within the jurisdiction of the Board or issues 
                similar to those issues;
                    ``(B) satisfy requirements for neutrality and other 
                qualification requirements prescribed by the Secretary;
                    ``(C) consent to serve as arbitrators under this 
                section; and
                    ``(D) are not officers or employees of the United 
                States.
            ``(2) Smaller disputes.--For a dispute involving an amount 
        not in excess of $1,000,000, the regulations under subsection 
        (c) shall provide for arbitration by a single arbitrator who--
                    ``(A) is selected by the parties to the dispute; or
                    ``(B) if the parties cannot agree, is selected by 
                the Secretary from among the arbitrators listed on the 
                roster of arbitrators under paragraph (1).
            ``(3) Larger disputes.--
                    ``(A) For a dispute involving an amount in excess 
                of $1,000,000, the regulations under subsection (c) 
                shall provide for arbitration by a panel of three 
                arbitrators selected as follows:
                            ``(i) One arbitrator selected by the party 
                        electing the arbitration.
                            ``(ii) One arbitrator selected by the rail 
                        carrier or all of the rail carriers who are 
                        parties to the dispute, as the case may be.
                            ``(iii) One arbitrator selected by the two 
                        arbitrators selected under clauses (i) and 
                        (ii).
                    ``(B) If a selection of an arbitrator is not made 
                under clause (ii) or (iii) of subparagraph (A) within 
                the time limits prescribed in the regulations, then the 
                Secretary shall select the arbitrator from among the 
                arbitrators listed on the roster of arbitrators under 
                paragraph (1).
    ``(e) Disputes Over Rates or Charges.--
            ``(1) Limitation.--The requirements of this subsection 
        apply to a dispute submitted under this section concerning a 
        rate or charge imposed by a rail carrier.
            ``(2) Awards.--
                    ``(A) Subject to subparagraph (B), the decision of 
                an arbitrator or panel of arbitrators in a dispute on 
                an issue described in paragraph (1) shall be the final 
                offer of one of the parties to the dispute.
                    ``(B) A decision under subparagraph (A) may not 
                provide for a rate for transportation by a rail carrier 
                that would result in a revenue-variable cost percentage 
                for such transportation that is less than 180 percent, 
                as determined under standards applied in the 
                administration of section 10707(d).
            ``(3) Rate and charge disputes.--If the party electing 
        arbitration of a dispute described in paragraph (1) seeks 
        compensation for damages incurred by the party as a result of a 
        specific rate or charge imposed by a rail carrier for the 
        transportation of items for the party and the party alleges an 
        amount of damages that does not exceed $500,000 for any year as 
        a result of the imposition of the specific rate or charge, the 
        arbitrator, in making a decision on the dispute, shall consider 
        the rates or charges, respectively, that are imposed by rail 
        carriers for the transportation of similar items under similar 
        circumstances in rail transportation markets where there is 
        effective competition, as determined under standards applied by 
        the Board in the administration of section 10707(a).
    ``(f) Time for Issuance of Arbitration Decision.--Notwithstanding 
any other provision of this subtitle limiting the time for the taking 
of an action under this subtitle, the arbitrator or panel of 
arbitrators for a dispute submitted for resolution under this section 
shall issue a final decision on the dispute within the maximum period 
after the date on which the arbitrator or panel is selected to resolve 
the dispute under this section, as follows:
            ``(1) In the case of a dispute involving $1,000,000 or 
        less, 120 days.
            ``(2) In the case of a dispute involving more than 
        $1,000,000, 180 days.
    ``(g) Authorized Relief.--A decision of an arbitrator or panel of 
arbitrators under this section shall grant relief in either or both of 
the following forms:
            ``(1) Monetary damages, to the extent authorized to be 
        provided by the Board in such a dispute under this subtitle.
            ``(2) An order that requires specific performance under any 
        applicable law, including any law limiting rates to reasonable 
        rates, for any period not in excess of 2 years beginning on the 
        date of the decision.
    ``(h) Judicial Confirmation and Review.--The following provisions 
of title 9 shall apply to an arbitration decision issued in a dispute 
under this section:
            ``(1) Section 9 (relating to confirmation of an award in an 
        arbitration decision), which shall be applied as if the parties 
        had entered into an agreement under title 9 to submit the 
        dispute to the arbitration and had provided in that agreement 
        for a judgment of an unspecified court to be entered on the 
        award made pursuant to the arbitration.
            ``(2) Section 10 (relating to judicial vacation of an award 
        in an arbitration decision).''.
            (2) Clerical amendment.--The chapter analysis for chapter 
        117 is amended by inserting after the item relating to section 
        11707 the following: The table of sections at the beginning of 
        such chapter is amended by inserting after the item relating to 
        section 11707 the following:

``11708. Arbitration of certain rail rate, service, and other 
                            disputes.''.
    (b) Time for Implementing Certain Requirements.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Transportation shall promulgate regulations, prescribe a roster of 
arbitrators, and complete any other action that is necessary for the 
implementation of section 11708 of title 49, United States Code (as 
added by subsection (a)).

SEC. 302. FILING FEES ON PETITIONS FOR CAPTIVE RATE RELIEF.

    Section 721 is amended by adding at the end the following:
    ``(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. 303. RATE REASONABLENESS.

    Section 10701(d) is amended by adding at the end the following:
    ``(4)(A) Not later than one year after the date of enactment of the 
Railroad Competition Act of 2005, the Board shall adopt an alternative 
method for determining the reasonableness of rail rates using the 
railroad's actual costs, including a portion of fixed costs and an 
adequate return on equity. The method shall permit a final 
determination within nine months of filing a complaint, shall ensure 
that necessary cost, financial and operational information is 
available, and shall not require excessive litigation costs.
    ``(B) The Board may not, on or after the date of enactment of that 
Act, use any method for determining the reasonableness of challenged 
rail rates based on the costs of a hypothetical competitor, except in a 
proceeding pending on the date of enactment of that Act or where the 
complainant so elects. The simplified and expedited method for 
determining the reasonableness of challenged rail rates provided for in 
paragraph (3) shall remain available at the election of qualifying 
complainants.
    ``(C) The Board shall adopt a method for applying the `phasing 
constraint' in its existing rail rate method so that it can be 
practically administered without substantial litigation-related costs 
in any proceeding involving a challenge to a rail rate in which the 
Board determines that the phasing constraint applies.
    ``(5) 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), the Board shall determine the reasonableness 
of the rate without regard to whether--
            ``(A) the rate is for 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.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. RAIL CUSTOMER ADVOCATE IN THE DEPARTMENT OF AGRICULTURE.

    (a) Participation of Rail Customer Advocate in STB Proceedings.--
            (1) Authority and responsibilities.--Chapter 105, as 
        amended by section 105 of this Act, is further amended by 
        adding at the end the following:
``Sec. 10504. Participation of Rail Customer Advocate in Board 
              proceedings
    ``(a) Authority.--The following persons are authorized to petition 
the Board for an exercise of authority of the Board regarding rail 
transportation of any agricultural or forestry commodity or product, 
and to participate in any proceeding of the Board regarding rail 
transportation of such a commodity or product:
            ``(1) The Rail Customer Advocate of the Department of 
        Agriculture.
            ``(2) Any official of the government of a State whose 
        functions are the same as or similar to the functions of the 
        Rail Customer Advocate of the Department of Agriculture.
    ``(b) Consideration of Presentations by Advocate.--
            ``(1) The Board shall accord significant persuasive weight 
        to any material evidence, proposal, or view that is presented 
        by an official referred to in subsection (a) with respect to 
        rail transportation of an agricultural or forestry commodity or 
        product.
            ``(2) In disposing of any matter before the Board in which 
        an official referred to in subsection (a) has participated 
        under the authority of such subsection, the Board shall present 
        in writing a detailed explanation of any disagreement of the 
        Board with matters presented to the Board by that official.''.
            (2) Clerical amendment.--The chapter analysis for chapter 
        105, as amended by section 105, is further amended by inserting 
        after the item relating to section 10503 the following:

``10504. Participation of Rail Customer Advocate in Board 
                            proceedings.''.
    (b) Establishment and Duties.--
            (1) In general.--Subtitle I of title II of the Department 
        of Agriculture Reorganization Act of 1994 (7 U.S.C. 7005) is 
        amended by adding at the end the following:

``SEC. 286. RAIL CUSTOMER ADVOCATE.

    ``(a) Establishment of Office.--There is established within the 
Department an Office of Rail Customer Advocacy.
    ``(b) Rail Customer Advocate.--
            ``(1) Appointment.--The Secretary shall appoint the Rail 
        Customer Advocate.
            ``(2) Head of office.--The Rail Customer Advocate is the 
        head of the Office of Rail Customer Advocacy.
    ``(c) Functions.--The Rail Customer Advocate has the following 
functions:
            ``(1) Participation in stb proceedings.--To participate as 
        a party in proceedings of the Surface Transportation Board on 
        petitions for action by the Board regarding the regulation of 
        rail transportation of agricultural or forestry commodities or 
        products, and to initiate any such action.
            ``(2) Compilation of information.--To collect, compile, and 
        maintain information regarding the cost and efficiency of rail 
        transportation of agricultural commodities and products and 
        forestry commodities and products.
            ``(3) Studies.--To perform studies regarding rail 
        transportation of agricultural commodities and products and 
        forestry commodities and products.
    ``(d) Access to STB Information.--To carry out the functions under 
subsection (c), the Rail Customer Advocate shall have access to 
information, including databases, of the Surface Transportation 
Board.''.
            (2) Conforming amendments.--Section 296(b) of the 
        Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
        7014(b)) is amended--
                    (A) by striking ``or'' after the semicolon in 
                paragraph (4);
                    (B) by striking ``218.'' in paragraph (5) and 
                inserting ``218; or''; and
                    (C) by adding at the end the following:
            ``(6) the establishment of the Office of Rail Consumer 
        Advocacy of the Department under section 286.''.

SEC. 402. STUDY OF COMPETITION AMONG RAIL CARRIERS.

    (a) Requirement for Study.--Chapter 101 is amended by adding at the 
end the following:
``Sec. 10103. Study of rail carrier competition and processes of the 
              Board
    ``(a) Requirement for Study.--Within 2 years after the date of 
enactment of the Railroad Competition Act of 2005, the Secretary of 
Transportation shall conduct a comprehensive study of rail carrier 
competition and the processes of the Board, after consulting with the 
Department of Justice, the Department of Energy, the Department of 
Defense, the Department of Agriculture, rail users and railroads. The 
study shall include an assessment of--
            ``(1) the availability of effective competitive options 
        among and between rail carriers;
            ``(2) the effectiveness of the processes of the 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;
            ``(4) the Board's implementation of the Railroad 
        Competition Act of 2005; and
            ``(5) the overall level of rail-to-rail competition in 
        serving rail users in the United States.
    ``(b) Report to Congress.--Not later than November 15 of the year 
in which the study is conducted under subsection (a), the Secretary 
shall submit a report on the results of the study to Congress. The 
report shall include--
            ``(1) the Secretary'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) 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) implementing the provisions and policies of 
                the Railroad Competition Act of 2005;
                    ``(B) addressing complaints regarding rates, 
                charges, and service; and
                    ``(C) promulgating regulations of general 
                applicability or taking other actions;
            ``(5) recommendations for modification of any of the 
        decisions of the Board (or decisions of the former Interstate 
        Commerce Commission continuing in effect) or for modification 
        of the general authority or jurisdiction of the Board; and
            ``(6) any other findings, analyses, assessments, and 
        recommendations that result from the study.
    ``(c) Updates.--The Secretary shall update the study every 3 years 
after the initial study is completed and report the results to the 
Congress.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 101 is 
amended by inserting after the item relating to section 10102 the 
following:

``10103. Periodic study of rail carrier competition and processes of 
                            the Board''.

      TITLE V--REHABILITATION, IMPROVEMENT, AND SECURITY FINANCING

SEC. 501. REHABILITATION AND IMPROVEMENT FINANCING.

    (a) Definitions.--Section 102(7) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as 
follows:
            ``(7) `railroad' has the meaning given that term in section 
        20102 of title 49, United States Code; and''.
    (b) General Authority.--Section 502(a) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(a)) is 
amended by striking ``Secretary may provide direct loans and loan 
guarantees to State and local governments,'' and inserting ``Secretary 
shall provide direct loans and loan guarantees to State and local 
governments, agreements or interstate compacts consented to by Congress 
under section 410(a) of Public Law 105-134 (49 U.S.C. 24101 nt),''.
    (c) Extent of Authority.--Section 502(d) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is 
amended--
            (1) by striking ``$3,500,000,000'' and inserting 
        ``$35,000,000,000'';
            (2) by striking ``$1,000,000,000'' and inserting 
        ``$7,000,000,000''; and
            (3) by adding at the end ``The Secretary shall not 
        establish any limit on the proportion of the unused amount 
        authorized under this subsection that may be used for 1 loan or 
        loan guarantee.''.
    (d) Cohorts of Loans.--Section 502(f) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is 
amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (D) of paragraph (1);
            (2) by redesignating subparagraph (E) of paragraph (1) as 
        subparagraph (F);
            (3) by inserting after subparagraph (D) of paragraph (1) 
        the following:
            ``(E) the size and characteristics of the cohort of which 
        the loan or loan guarantee is a member; and''; and
            (4) by adding at the end of paragraph (4) ``A cohort may 
        include loans and loan guarantees. The Secretary shall not 
        establish any limit on the proportion of a cohort that may be 
        used for 1 loan or loan guarantee.''.
    (e) Conditions of Assistance.--Section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is 
amended--
            (1) by striking ``offered;'' in subsection (f)(2)(A) and 
        inserting ``offered, if any;''; and
            (2) by adding at the end of subsection (h) ``The Secretary 
        shall not require an applicant for a direct loan or loan 
        guarantee under this section to provide collateral. The 
        Secretary shall not require that an applicant for a direct loan 
        or loan guarantee under this section have previously sought the 
        financial assistance requested from another source. The 
        Secretary shall require recipients of direct loans or loan 
        guarantees under this section to apply the standards of section 
        22301(b) and (c) of title 49, United States Code, to their 
        projects.''.
    (f) Time Limit for Approval or Disapproval.--Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822) is amended by adding at the end the following:
    ``(i) Time Limit for Approval or Disapproval.--Not later than 180 
days after receiving a complete application for a direct loan or loan 
guarantee under this section, the Secretary shall approve or disapprove 
the application.''.
    (g) Fees and Charges.--Section 503 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended--
            (1) by adding at the end of subsection (k) ``Funds received 
        by the Secretary under the preceding sentence shall be credited 
        to the appropriation from which the expenses of making such 
        appraisals, determinations, and findings were incurred.''; and
            (2) by adding at the end the following:
    ``(l) Fees and Charges.--Except as provided in this title, the 
Secretary may not assess any fees, including user fees, or charges in 
connection with a direct loan or loan guarantee provided under section 
502.''.
    (h) Substantive Criteria and Standards.--Not later than 30 days 
after the date of the enactment of this Act, the Secretary of 
Transportation shall publish in the Federal Register and post on the 
Department of Transportation website the substantive criteria and 
standards used by the Secretary to determine whether to approve or 
disapprove applications submitted under section 502 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).
    (i) Operators and Service Providers Deemed Rail Carriers.--Section 
502 of the Railroad Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 822), as amended by subsection (f), is amended by adding at 
the end the following:
    ``(j) Operators and Certain Service Providers Deemed Rail 
Carriers.--A person that conducts rail operations, or performs 
catering, cleaning, construction, maintenance, or other services for 
rail operations, funded or otherwise receiving assistance under this 
section is deemed to be a rail carrier for purposes of part A of 
subtitle IV of title 49, United States Code, when so operating or 
performing such services.''.
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