[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2889 Reported in Senate (RS)]

                                                       Calendar No. 711
111th CONGRESS
  2d Session
                                S. 2889

    To reauthorize the Surface Transportation Board, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2010

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

                           December 17, 2010

             Reported by Mr. Rockefeller, with an amendment
 [Strike all after the enacting clause and insert the part printed in 
                                italic]

_______________________________________________________________________

                                 A BILL


 
    To reauthorize the Surface Transportation Board, and for other 
                               purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Surface Transportation 
Board Reauthorization Act of 2009''.</DELETED>

<DELETED>SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED>    The table of contents for this Act is as 
follows:</DELETED>

<DELETED>Sec. 1. Short title.
<DELETED>Sec. 2. Table of contents.
<DELETED>Sec. 3. Amendment of title 49, United States Code.
              <DELETED>Title I--Administrative Provisions

<DELETED>Sec. 101. Authorization of appropriations.
<DELETED>Sec. 102. Board members.
<DELETED>Sec. 103. Establishment of Board as independent agency.
<DELETED>Sec. 104. Filing fees for certain cases.
<DELETED>Sec. 105. Repeal of expired and obsolete provisions.
<DELETED>Sec. 106. Department of Transportation Inspector General 
                            authority.
<DELETED>Sec. 107. Railroad-Shipper Transportation Advisory Council.
               <DELETED>Title II--Authority Improvements

<DELETED>Sec. 201. Rail transportation policy update.
<DELETED>Sec. 202. Office of Public Assistance, Governmental Affairs, 
                            and Compliance.
<DELETED>Sec. 203. Investigative authority.
<DELETED>Sec. 204. Compilation of complaints.
<DELETED>Sec. 205. Exempt traffic.
<DELETED>Sec. 206. Railroad service metrics and performance data.
<DELETED>Sec. 207. Uniform railroad costing system.
<DELETED>Sec. 208. Replacement cost study.
<DELETED>Sec. 209. Rail practices study.
<DELETED>Sec. 210. Rail car interchange study.
<DELETED>Sec. 211. Offers of financial assistance.
<DELETED>Sec. 212. Adverse abandonments.
<DELETED>Sec. 213. Emergency service orders.
<DELETED>Sec. 214. Rate agreements.
<DELETED>Sec. 215. Miscellaneous provisions.
                 <DELETED>Title III--Regulatory Reform

<DELETED>Sec. 301. Paper barriers.
<DELETED>Sec. 302. Bottleneck and terminal switching rates.
<DELETED>Sec. 303. Terminal access.
<DELETED>Sec. 304. Service.
<DELETED>Sec. 305. Arbitration of certain rail rate, practice, and 
                            common carrier service expectation 
                            disputes.
<DELETED>Sec. 306. Maximum relief in certain rate cases.
<DELETED>Sec. 307. Advance rate challenge.
<DELETED>Sec. 308. Rate review timelines.
<DELETED>Sec. 309. Revenue adequacy study.
<DELETED>Sec. 310. Public usage of abandoned rail properties.
<DELETED>Sec. 311. Transactions.
<DELETED>Sec. 312. Considerations in consolidations, mergers, and 
                            acquisitions.
<DELETED>Sec. 313. Railroad development.
<DELETED>Sec. 314. Regulatory reform review.
                <DELETED>Title IV--Technical Corrections

<DELETED>Sec. 401. Technical corrections to Public Law 110-432.
                    <DELETED>Title V--Miscellaneous

<DELETED>Sec. 501. Pipeline investigative authority.
<DELETED>Sec. 502. Carbon dioxide pipelines.
<DELETED>Sec. 503. Effective dates; effect on existing rate 
                            prescriptions.

<DELETED>SEC. 3. AMENDMENT OF TITLE 49, UNITED STATES CODE.</DELETED>

<DELETED>    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.</DELETED>

         <DELETED>TITLE I--ADMINISTRATIVE PROVISIONS</DELETED>

<DELETED>SEC. 101. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    Section 705 is amended by striking paragraphs (1) through 
(3) and inserting the following:</DELETED>
        <DELETED>    ``(1) $37,670,000 for fiscal year 2010;</DELETED>
        <DELETED>    ``(2) $44,683,000 for fiscal year 2011;</DELETED>
        <DELETED>    ``(3) $37,857,000 for fiscal year 2012;</DELETED>
        <DELETED>    ``(4) $41,190,000 for fiscal year 2013; 
        and</DELETED>
        <DELETED>    ``(5) $44,690,000 for fiscal year 
        2014.''.</DELETED>

<DELETED>SEC. 102. BOARD MEMBERS.</DELETED>

<DELETED>    (a) Membership.--Section 701(b) is amended--</DELETED>
        <DELETED>    (1) by striking ``3 members,'' in paragraph (1) 
        and inserting ``5 members,'';</DELETED>
        <DELETED>    (2) by striking ``2 members'' in paragraph (1) and 
        inserting ``3 members''; and</DELETED>
        <DELETED>    (3) by striking paragraph (2) and inserting the 
        following:</DELETED>
<DELETED>    ``(2) At any given time, at least 3 members of the Board 
shall be individuals with professional standing and demonstrated 
knowledge in the fields of transportation, transportation regulation, 
or economic regulation, and at least 2 members shall be individuals 
with professional or business experience (including agriculture or 
other rail customers) in the private sector.''.</DELETED>
<DELETED>    (b) Repeal of Holdover Limitation.--Section 701(b) is 
amended by striking ``qualified, but for a period not to exceed one 
year.'' in paragraph (3) and inserting ``qualified.''.</DELETED>
<DELETED>    (c) Repeal of Obsolete Provision.--Section 701(b) is 
amended--</DELETED>
        <DELETED>    (1) by striking paragraph (4) and redesignating 
        paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), 
        respectively; and</DELETED>
        <DELETED>    (2) by striking ``In the case of an individual who 
        becomes a member of the Board pursuant to paragraph (4), or an 
        individual'' in paragraph (4), as redesignated, and inserting 
        ``An individual''.</DELETED>

<DELETED>SEC. 103. ESTABLISHMENT OF BOARD AS INDEPENDENT 
              AGENCY.</DELETED>

<DELETED>    (a) In General.--Section 701(a) is amended to read as 
follows:</DELETED>
<DELETED>    ``(a) Establishment of Board.--The Surface Transportation 
Board is an independent establishment of the United States 
Government.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) Administrative provisions.--Section 703 is 
        amended--</DELETED>
                <DELETED>    (A) by striking subsections (a), (c), (f), 
                and (g);</DELETED>
                <DELETED>    (B) by redesignating subsections (b), (d), 
                and (e) as subsections (a), (b), and (c), respectively; 
                and</DELETED>
        <DELETED>    (C) by adding at the end thereof the 
        following:</DELETED>
<DELETED>    ``(d) Submissions and Transmittals.--Whenever the Board 
submits or transmits any budget estimate, budget request, supplemental 
budget estimate, or other budget information, legislative 
recommendation, prepared testimony for congressional hearings, or 
comment on legislation to the President or to the Office of Management 
and Budget, it shall concurrently transmit a copy thereof to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure. No 
officer or agency of the United States shall have any authority to 
require the Board to submit its budget requests or estimates, 
legislative recommendations, prepared testimony for congressional 
hearings, or comments on legislation to any officer or agency of the 
United States for approval, comments, or review, prior to the 
submission of such recommendations, testimony, or comments to the 
Congress.''.</DELETED>
        <DELETED>    (2) Administrative support.--</DELETED>
                <DELETED>    (A) Subchapter II of chapter 7 is amended 
                by striking section 725.</DELETED>
                <DELETED>    (B) The table of contents for chapter 7 is 
                amended by striking the item relating to section 
                725.</DELETED>

<DELETED>SEC. 104. FILING FEES FOR CERTAIN CASES.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 7, as amended by 
section 103(b)(2)(A) of this Act, is amended by inserting after section 
724 the following:</DELETED>
<DELETED>``</DELETED><DELETED>725.Filing fees</DELETED>
<DELETED>    ``The Board may not require a party to pay a filing fee to 
bring a formal complaint before the Board that is greater than the fee 
provided by section 1914 of title 28 for bringing a civil action in a 
district court of the United States.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 7 is amended by inserting after the item relating to section 
724 the following:</DELETED>

<DELETED>``725. Filing fees''.

<DELETED>SEC. 105. REPEAL OF EXPIRED AND OBSOLETE PROVISIONS.</DELETED>

<DELETED>    (a) Contract Limitation.--Section 10709 is amended by 
striking subsection (h).</DELETED>
<DELETED>    (b) Agent in D.C.--</DELETED>
        <DELETED>    (1) Section 723 is amended--</DELETED>
                <DELETED>    (A) by striking ``in the District of 
                Columbia,'' in subsection (a); and</DELETED>
                <DELETED>    (B) by striking ``in the District of 
                Columbia'' in subsection (c).</DELETED>
        <DELETED>    (2) Section 724(a) is amended by striking ``in the 
        District of Columbia'' each place it appears.</DELETED>

<DELETED>SEC. 106. DEPARTMENT OF TRANSPORTATION INSPECTOR GENERAL 
              AUTHORITY.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 7 is amended--
</DELETED>
        <DELETED>    (1) by redesignating section 727 as section 728; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 726 the 
        following:</DELETED>
<DELETED>``</DELETED><DELETED>727. Authority of the Inspector 
              General</DELETED>
<DELETED>    ``(a) In General.--The Inspector General of the Department 
of Transportation, in accordance with the mission of the Inspector 
General to prevent and detect fraud and abuse, shall have authority to 
review only the financial management, property management, and business 
operations of the Surface Transportation Board, including internal 
accounting and administrative control systems, to determine compliance 
with applicable Federal laws, rules, and regulations.</DELETED>
<DELETED>    ``(b) Duties.--In carrying out this section, the Inspector 
General shall--</DELETED>
        <DELETED>    ``(1) keep the Chairman of the Board and the 
        Senate Committee on Commerce, Science, and Transportation and 
        the House of Representatives Committee on Transportation and 
        Infrastructure fully and currently informed about problems 
        relating to administration of the internal accounting and 
        administrative control systems of the Board;</DELETED>
        <DELETED>    ``(2) issue findings and recommendations for 
        actions to address such problems; and</DELETED>
        <DELETED>    ``(3) report periodically to the Senate Committee 
        on Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        on any progress made in implementing actions to address such 
        problems.</DELETED>
<DELETED>    ``(c) Access to Information.--In carrying out this 
section, the Inspector General may exercise authorities granted to the 
Inspector General under subsections (a) and (b) of section 6 of the 
Inspector General Act of 1978 (5 U.S.C. App.).</DELETED>
<DELETED>    ``(d) Authorizations of Appropriations.--</DELETED>
        <DELETED>    ``(1) Funding.--There are authorized to be 
        appropriated to the Secretary of Transportation for use by the 
        Inspector General of the Department of Transportation such sums 
        as may be necessary to cover expenses associated with 
        activities pursuant to the authority exercised under this 
        section.</DELETED>
        <DELETED>    ``(2) Reimbursable agreement.--In the absence of 
        an appropriation under this subsection for an expense referred 
        to in paragraph (1), the Inspector General and the Board shall 
        have a reimbursable agreement to cover such 
        expense.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 7 is amended by striking the item relating to section 701 and 
inserting the following:</DELETED>

<DELETED>``727. Authority of the Inspector General
<DELETED>``728. Definitions''.

<DELETED>SEC. 107. RAILROAD-SHIPPER TRANSPORTATION ADVISORY 
              COUNCIL.</DELETED>

<DELETED>    Section 726 is amended--</DELETED>
        <DELETED>    (1) by striking ``and'' after the semicolon in 
        subsection (a)(2)(A);</DELETED>
        <DELETED>    (2) by striking ``railroads.'' in subsection 
        (a)(2)(B) and inserting ``railroads; and'';</DELETED>
        <DELETED>    (3) by adding at the end of subsection (a)(2) the 
        following:</DELETED>
                <DELETED>    ``(C) the ninth voting member shall be a 
                member-at-large, and may be a representative of rail 
                labor, a State or local transportation agency, an 
                academic institution, or other relevant entity selected 
                by the Chairman.'';</DELETED>
        <DELETED>    (4) by striking the second sentence of subsection 
        (a)(4); and</DELETED>
        <DELETED>    (5) by striking the first sentence of subsection 
        (f)(4) and inserting ``The Council shall prepare an annual 
        report concerning its activities and the results of Council 
        efforts to resolve railroad and shipper issues and shall 
        include in the report at least one recommendation to the Board 
        stemming from the Council's activities and any proposal 
        regarding regulations or legislation it considers 
        appropriate.''.</DELETED>

          <DELETED>TITLE II--AUTHORITY IMPROVEMENTS</DELETED>

<DELETED>SEC. 201. RAIL TRANSPORTATION POLICY UPDATE.</DELETED>

<DELETED>    Section 10101 is amended to read as follows:</DELETED>
<DELETED>``</DELETED><DELETED>10101. Rail transportation 
              policy</DELETED>
<DELETED>    ``In regulating the railroad industry, it is the policy of 
the United States Government to balance the following 
objectives:</DELETED>
        <DELETED>    ``(1) To promote a safe and efficient rail 
        transportation system.</DELETED>
        <DELETED>    ``(2) To allow, to the maximum extent possible, 
        competition and the demand for services to establish reasonable 
        rates for transportation by rail.</DELETED>
        <DELETED>    ``(3) To protect rail shippers and to maintain 
        reasonable rates where there is an absence of effective 
        competition and where rail rates provide revenues that exceed 
        the amount necessary to maintain and expand the rail system and 
        to attract capital.</DELETED>
        <DELETED>    ``(4) To foster the continuation and expansion of 
        a sound rail transportation system while also preserving 
        effective competition among rail carriers and with other modes 
        to meet the needs of the public and National defense.</DELETED>
        <DELETED>    ``(5) To ensure that rail carriers can earn 
        adequate revenues to provide and sustain consistent, efficient, 
        and reliable transportation services and to maintain and expand 
        rail infrastructure, equipment, and technology.</DELETED>
        <DELETED>    ``(6) To prohibit predatory pricing and practices, 
        avoid undue concentrations of market power, and to prohibit 
        unlawful discrimination.</DELETED>
        <DELETED>    ``(7) To provide fair and expeditious regulatory 
        decisions and ensure that the regulatory process is accessible 
        and cost-effective for all affected parties.</DELETED>
        <DELETED>    ``(8) To advance the environmental and energy 
        efficiency advantages of rail transportation and encourage 
        energy conservation and environmentally-responsible practices 
        among rail carriers.</DELETED>
        <DELETED>    ``(9) To foster intercity and commuter rail 
        passenger service.</DELETED>
        <DELETED>    ``(10) To encourage fair wages and safe and 
        suitable working conditions in the railroad 
        industry.''.</DELETED>

<DELETED>SEC. 202. OFFICE OF PUBLIC ASSISTANCE, GOVERNMENTAL AFFAIRS, 
              AND COMPLIANCE.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 7, as amended by 
section 106 of this Act, is further amended--</DELETED>
        <DELETED>    (1) redesignating section 728 (as redesignated by 
        section 106 of this Act) as section 729; and</DELETED>
        <DELETED>    (2) by inserting after section 727 the 
        following:</DELETED>
<DELETED>``</DELETED><DELETED>728.Office of Public Assistance, 
              Governmental Affairs, and Compliance</DELETED>
<DELETED>    ``(a) In General.--The Board shall maintain an Office of 
Public Assistance, Governmental Affairs, and Compliance with authority 
over public assistance and outreach, governmental affairs, and 
compliance. The Office shall--</DELETED>
        <DELETED>    ``(1) mediate disputes between affected 
        parties;</DELETED>
        <DELETED>    ``(2) monitor rail carrier operations subject to 
        the Board's jurisdiction to ensure that such operations are in 
        compliance with each rail carrier's statutory and regulatory 
        responsibilities;</DELETED>
        <DELETED>    ``(3) act as the Board's point of contact with 
        government, public and private parties;</DELETED>
        <DELETED>    ``(4) facilitate communication among stakeholders 
        subject to the Board's jurisdiction; and</DELETED>
        <DELETED>    ``(5) carry out other duties and powers prescribed 
        by the Board.</DELETED>
<DELETED>    ``(b) Customer Advocate.--The Board shall appoint a rail 
customer advocate who shall report directly to the Board. The rail 
customer advocate--</DELETED>
        <DELETED>    ``(1) shall review or investigate rail customer 
        inquiries and complaints;</DELETED>
        <DELETED>    ``(2) shall serve as a technical advisor to a rail 
        customer in any appropriate proceeding of the Board;</DELETED>
        <DELETED>    ``(3) shall advise the Board in certain matters, 
        as appropriate;</DELETED>
        <DELETED>    ``(4) shall review information regarding the cost 
        and efficiency of rail transportation;</DELETED>
        <DELETED>    ``(5) shall carry out other duties and powers 
        prescribed by the Board; and</DELETED>
        <DELETED>    ``(6) may participate as a party in a proceeding 
        of the Board, as appropriate.</DELETED>
<DELETED>    ``(c) Ombudsman.--The Board may designate an employee of 
the Board to serve as an ombudsman of the Board in regional or local 
matters of Board interest, including matters related to railroad 
service, mergers and acquisitions, or any other matter designated by 
the Board.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 7, as amended by section 106 of this Act, is amended by 
striking the item relating to section 728 and inserting the 
following:</DELETED>

<DELETED>``728.Office of Public Assistance, Governmental Affairs, and 
                            Compliance
<DELETED>``729. Definitions''.

<DELETED>SEC. 203. INVESTIGATIVE AUTHORITY.</DELETED>

<DELETED>    (a) Authority To Initiate Investigation.--Section 11701(a) 
is amended by striking ``only on complaint.'' and inserting ``on the 
Board's own initiative or on complaint.''.</DELETED>
<DELETED>    (b) Rate Proceedings.--Section 10704(b) is amended by 
striking the first sentence and inserting ``The Board may begin a 
proceeding under subsection (a)(1) on its own initiative or upon 
complaint, except that a proceeding to determine the reasonableness of 
the level of a rate charged by a carrier may only be initiated upon 
complaint.''.</DELETED>

<DELETED>SEC. 204. COMPILATION OF COMPLAINTS.</DELETED>

<DELETED>    (a) In General.--Section 704 is amended--</DELETED>
        <DELETED>    (1) by striking the section heading and inserting 
        the following:</DELETED>
<DELETED>``</DELETED><DELETED>704. Reports'';</DELETED>
        <DELETED>    (2) by inserting ``(a) Annual Report.--'' before 
        ``The Board''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(b) Complaints.--</DELETED>
        <DELETED>    ``(1) The Board shall establish and maintain a 
        database of complaints received by the Board.</DELETED>
        <DELETED>    ``(2) The Board shall post a quarterly report of 
        formal and informal service complaints received by the Board 
        during the previous quarter that shall include--</DELETED>
                <DELETED>    ``(A) a list of the type of each 
                complaint;</DELETED>
                <DELETED>    ``(B) the geographic region of the 
                complaint; and</DELETED>
                <DELETED>    ``(C) the resolution of the complaint, if 
                appropriate.</DELETED>
        <DELETED>    ``(3) The quarterly report may identify a 
        complainant that submitted an informal complaint only upon the 
        written consent of the complainant.</DELETED>
        <DELETED>    ``(4) The report shall be posted on the Board's 
        public website.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 7 is amended by striking the item relating to section 704 and 
inserting the following:</DELETED>

<DELETED>``704. Reports''.

<DELETED>SEC. 205. EXEMPT TRAFFIC.</DELETED>

<DELETED>    (a) In General.--Section 10502 is amended--</DELETED>
        <DELETED>    (1) by striking ``the Board, to the maximum extent 
        consistent with this part, shall'' in subsection (a) and 
        inserting ``the Board shall''; and</DELETED>
        <DELETED>    (2) by striking ``title.'' in subsection (d) and 
        inserting ``title or to protect shippers from the abuse of 
        market power.''.</DELETED>
<DELETED>    (b) Current Class Exemptions.--Within 2 years after the 
date of enactment of this Act, the Surface Transportation Board shall 
conclude a study of class exemptions in effect on the date of enactment 
of this Act to determine whether any exemptions should be revoked 
pursuant to section 10502(d) of title 49, United States Code. In 
conducting the study, the Board shall provide public notice and 
opportunity for comment and conduct 1 or more public hearings. Upon 
completion of the study, the Board shall--</DELETED>
        <DELETED>    (1) revise any such exemptions as necessary on the 
        basis of the Board's findings and conclusions from the study; 
        and</DELETED>
        <DELETED>    (2) establish a process for the periodic review, 
        and revision as necessary, of class exemptions.</DELETED>

<DELETED>SEC. 206. RAILROAD SERVICE METRICS AND PERFORMANCE 
              DATA.</DELETED>

<DELETED>    (a) Reporting Requirements.--Within 2 years after the date 
of enactment of this Act, the Surface Transportation Board shall 
require Class I railroad carriers and other railroad carriers, as 
appropriate, to regularly report railroad service metrics and other 
performance data as prescribed by the Board. The metrics and data may 
include transportation cycle times and transit times and variations in 
such times, average train speed, and terminal dwell time by type of 
traffic and by geographic area and other metrics, as determined by the 
Board.</DELETED>
<DELETED>    (b) Confidentiality.--The Board shall ensure that metrics 
submitted pursuant to this section and data and deemed confidential by 
the Board are appropriately protected.</DELETED>

<DELETED>SEC. 207. UNIFORM RAILROAD COSTING SYSTEM.</DELETED>

<DELETED>    (a) Study.--Within 180 days after the date of enactment of 
this Act, the Surface Transportation Board shall initiate a proceeding 
to examine the Uniform Railroad Costing System. The examination shall 
consider matters deemed appropriate by the Board.</DELETED>
<DELETED>    (b) Update.--Within 3 years after the date of enactment of 
this Act, the Board shall update, revise, or replace the System and any 
related reporting of financial and operating information by rail 
carriers as deemed appropriate by the Board based on the examination 
required by subsection (a).</DELETED>
<DELETED>    (c) Interim Report.--Within 18 months after the date of 
enactment of this Act, the Board shall submit an interim report on its 
progress on the proceeding to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure.</DELETED>
<DELETED>    (d) Movement-Specific Adjustments.--Until the Board 
updates, revises, or replaces the system pursuant to subsection (b), or 
thereafter at the discretion of the Board, parties may make reasonable 
movement-specific adjustments to the variable costs calculated by the 
System in full stand-alone cost rate challenges.</DELETED>
<DELETED>    (e) Material Change Adjustments.--If the System is 
materially changed pursuant to subsection (b), the Board shall develop 
a one-time adjustment factor to be used to adjust the variable costs in 
rate prescriptions determined under the changed procedures to equal 
those that would have been obtained under the prior procedures, and 
will apply this adjustment factor, upon request, in rate prescriptions 
that are in effect as of the date of enactment of this Act.</DELETED>

<DELETED>SEC. 208. REPLACEMENT COST STUDY.</DELETED>

<DELETED>    (a) Study.--Within 180 days after the date of enactment of 
this Act, the Surface Transportation Board shall initiate a study to 
review the use of a replacement cost approach to value the assets of 
rail facilities. The review shall include matters deemed appropriate by 
the Board, but shall include, at a minimum, consideration of the 
feasibility, effectiveness, and appropriateness of using a replacement 
cost approach in Board proceedings where replacement costs may be 
relevant. In conducting the study, the Board shall provide public 
notice and opportunity for comment and conduct one or more public 
hearings. The Board shall complete the study within 2 years after its 
initiation.</DELETED>
<DELETED>    (b) Report to Congress.--Within 180 days after completion 
of the study, the Board shall provide a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on its 
findings.</DELETED>

<DELETED>SEC. 209. RAIL PRACTICES STUDY.</DELETED>

<DELETED>    (a) Study.--Within 180 days after the date of enactment of 
this Act, the Surface Transportation Board shall initiate a study of 
rail practices, including switching, surcharges, penalties, demurrage, 
and accessorial charges. In conducting the study, the Board shall 
provide public notice and opportunity for comment and conduct one or 
more public hearings.</DELETED>
<DELETED>    (b) Report to Congress.--Within 180 days after completion 
of the study, the Board shall provide a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on its 
findings.</DELETED>

<DELETED>SEC. 210. RAIL CAR INTERCHANGE STUDY.</DELETED>

<DELETED>    (a) Study.--Within 180 days after the date of enactment of 
this Act, the Surface Transportation Board shall initiate a study of 
rail interchange rules, including car service, interchange, and other 
operating rules adopted and administered by the Association of American 
Railroads and the effect of those rules on the national rail system. In 
conducting the study, the Board shall provide public notice and 
opportunity for comment and conduct one or more public 
hearings.</DELETED>
<DELETED>    (b) Report to Congress.--Within 180 days after completion 
of the study, the Board shall provide a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on its 
findings.</DELETED>

<DELETED>SEC. 211. OFFERS OF FINANCIAL ASSISTANCE.</DELETED>

<DELETED>    Section 10904 is amended--</DELETED>
        <DELETED>    (1) by striking so much of subsection (d) as 
        precedes paragraph (2) and inserting the following:</DELETED>
<DELETED>    ``(d)(1) Unless the Board, within 15 days after the 
expiration of the 4-month period described in subsection (c), finds 
that one or more financially responsible persons (including a 
governmental authority) have offered financial assistance and 
established a reasonable likelihood of freight rail service, public 
transportation, or intercity rail passenger transportation over that 
part of the railroad line to be abandoned or over which all rail 
transportation is to be discontinued, abandonment or discontinuance may 
be carried out in accordance with section 10903.''; and</DELETED>
        <DELETED>    (2) by striking ``30 days'' in subsection 
        (f)(1)(A) and inserting ``60 days''.</DELETED>

<DELETED>SEC. 212. ADVERSE ABANDONMENTS.</DELETED>

<DELETED>    Section 10903 is amended--</DELETED>
        <DELETED>    (1) by striking so much of subsection (a) as 
        precedes paragraph (2) and inserting the following:</DELETED>
<DELETED>    ``(a)(1) An application relating to the abandonment of or 
discontinuance of operation of all rail transportation over any part of 
a railroad line shall be filed with the Board. An abandonment or 
discontinuance may be carried out only as authorized under this 
chapter.'';</DELETED>
        <DELETED>    (2) by striking ``When a rail carrier providing 
        transportation subject to the jurisdiction of the Board under 
        this part files an application, the application'' in subsection 
        (a)(2) and inserting ``An application filed under this 
        section'';</DELETED>
        <DELETED>    (3) by striking ``rail carrier's'' in subsection 
        (a)(2)(A);</DELETED>
        <DELETED>    (4) by striking ``(C)(i)'' in subsection (a)(2)(C) 
        and inserting ``(C) if filed by a rail carrier, (i)''; 
        and</DELETED>
        <DELETED>    (5) by striking ``The rail carrier shall--'' in 
        subsection (a)(3) and inserting ``The applicant shall--
        ''.</DELETED>

<DELETED>SEC. 213. EMERGENCY SERVICE ORDERS.</DELETED>

<DELETED>    Section 11123(c)(1) is amended by striking the second 
sentence and inserting ``Action by the Board under subsection (a) of 
this section may be extended in 90-day increments until the Board finds 
that the emergency has ended.''.</DELETED>

<DELETED>SEC. 214. RATE AGREEMENTS.</DELETED>

<DELETED>    (a) In General.--Section 10706 is amended to read as 
follows:</DELETED>
<DELETED>``</DELETED><DELETED>10706. Rate agreements</DELETED>
<DELETED>    ``(a) In General.--In any proceeding in which it is 
alleged that a carrier was a party to an agreement, conspiracy, or 
combination in violation of the Sherman Act (15 U.S.C. 1 et seq.), the 
Clayton Act (15 U.S.C. 12 et seq.), sections 73 and 74 of the Wilson 
Tariff Act (15 U.S.C. 8 and 9), or the Act of June 19, 1936 (15 U.S.C. 
13, 13a, 13b, and 21a) or of any similar State law, proof of an 
agreement, conspiracy, or combination may not be inferred from evidence 
that two or more rail carriers acted together with respect to an 
interline rate or related matter and that a party to such action took 
similar action with respect to a rate or related matter on another 
route or traffic.</DELETED>
<DELETED>    ``(b) Inadmissible Evidence.--In any proceeding in which 
such a violation is alleged, evidence of a discussion or agreement 
between or among such rail carrier and one or more other rail carriers, 
or of any rate or other action resulting from such discussion or 
agreement, shall not be admissible if the discussion or agreement 
concerned an interline movement of the rail carrier, and the discussion 
or agreement would not, considered by itself, violate the laws referred 
to in subsection (a).</DELETED>
<DELETED>    ``(c) Determination by Court.--In any such proceeding 
before a jury, the court shall determine whether the requirements of 
subsection (b) are satisfied before allowing the introduction of any 
such evidence.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 107 is amended by striking the item relating to section 10706 
and inserting the following:</DELETED>

<DELETED>``10706. Rate agreements''.

<DELETED>SEC. 215. MISCELLANEOUS PROVISIONS.</DELETED>

<DELETED>    (a) Simplified Procedure.--Section 10701(d)(3) is amended 
to read as follows:</DELETED>
<DELETED>    ``(3) The Board shall maintain a simplified and expedited 
method for determining the reasonableness of challenged rates in those 
cases in which a full stand-alone cost presentation is too costly, 
given the value of the case.''.</DELETED>
<DELETED>    (b) Expeditious Handling.--Section 10704(d) is amended by 
striking the first sentence and inserting ``The Board shall maintain 
procedures to ensure expeditious handling of challenges to the 
reasonableness of railroad rates.''.</DELETED>

            <DELETED>TITLE III--REGULATORY REFORM</DELETED>

<DELETED>SEC. 301. PAPER BARRIERS.</DELETED>

<DELETED>    (a) Interchange Commitment Defined.--Section 10102 is 
amended--</DELETED>
        <DELETED>    (1) by redesignating paragraphs (4) through (10) 
        as paragraphs (5) through (11), respectively; and</DELETED>
        <DELETED>    (2) by inserting after paragraph (3) the 
        following:</DELETED>
        <DELETED>    ``(4) `interchange commitment' means a contractual 
        agreement between two or more rail carriers subject to the 
        jurisdiction of the Board reached as part of a sale or lease of 
        a rail line for which the approval of the Board is required 
        under chapter 109 or 113 of this part, which limits the 
        incentive or the ability of the purchaser or tenant rail 
        carrier to interchange traffic with a rail carrier other than 
        the seller or lessor rail carrier;''.</DELETED>
<DELETED>    (b) Authorizing an Acquisition or Operation Transaction.--
</DELETED>
        <DELETED>    (1) Section 10901(c) is amended by adding at the 
        end thereof ``The Board may not issue a certificate authorizing 
        an acquisition or operation transaction under subsection (a)(4) 
        that includes interchange commitments or other mechanisms 
        restricting the purchaser's or tenant's ability to interchange 
        with any other carrier unless such commitments or mechanisms 
        are reasonable and in the public interest.''.</DELETED>
        <DELETED>    (2) Section 10902(c) is amended by adding at the 
        end thereof ``The Board may not issue a certificate authorizing 
        an acquisition or operation transaction under this section that 
        includes interchange commitments or other mechanisms 
        restricting the purchaser's or tenant's ability to interchange 
        with any other carrier unless such commitments or mechanisms 
        are reasonable and in the public interest.''.</DELETED>
        <DELETED>    (3) Section 11323 is amended by adding at the end 
        thereof the following:</DELETED>
<DELETED>    ``(d) The Board may not authorize an acquisition or 
operation transaction under this section that includes interchange 
commitments or other mechanisms restricting the purchaser's or tenant's 
ability to interchange with any other carrier unless such commitments 
or mechanisms are reasonable and in the public interest.''.</DELETED>
<DELETED>    (c) Rights and Remedies of Persons Injured by Interchange 
Commitments.--Chapter 117 is amended by adding at end thereof the 
following:</DELETED>
<DELETED>``</DELETED><DELETED>11708. Interchange commitments: rights 
              and remedies</DELETED>
<DELETED>    ``(a) In General.--The Board shall maintain a process to 
allow persons to challenge existing interchange commitments as contrary 
to other provisions of this part. The Attorney General and the 
Secretary of Transportation may participate in such 
proceedings.</DELETED>
<DELETED>    ``(b) Access to Interchange Commitments.--After the filing 
of a complaint or petition, the Board shall provide affected persons 
access, upon request, to existing and proposed interchange commitments, 
subject to conditions protecting the confidentiality of those 
agreements.</DELETED>
<DELETED>    ``(c) Redress Authority.--The Board shall take appropriate 
action to address any conflict between an interchange commitment and 
the provisions of this part.</DELETED>
<DELETED>    ``(d) Purchase Authority.--</DELETED>
        <DELETED>    ``(1) In general.--Except as provided in paragraph 
        (5), if the Board finds that--</DELETED>
                <DELETED>    ``(A) an interchange commitment is found 
                to be in violation of this part, and</DELETED>
                <DELETED>    ``(B) the purchaser or tenant rail carrier 
                and the seller or lessor rail carrier cannot bring the 
                interchange commitment into compliance with this part 
                within a reasonable period of time,</DELETED>
        <DELETED>the Board may require, upon application by the 
        purchaser or tenant rail carrier, the elimination of the 
        interchange commitment at a price paid by the purchaser or 
        tenant rail carrier not less than the terms established under 
        paragraph (2).</DELETED>
        <DELETED>    ``(2) Terms.--In the case of an interchange 
        commitment subject to elimination under paragraph (1), the 
        Board shall determine the fair market value of an interchange 
        commitment by considering--</DELETED>
                <DELETED>     ``(A) any credits, payments, expenses, or 
                other income paid and due from the interchange 
                commitment to the seller or lessor rail 
                carrier;</DELETED>
                <DELETED>    ``(B) reasonable financial hardships of 
                the purchaser or tenant rail carrier due to 
                unreasonable terms, if any, of the interchange 
                agreement; and</DELETED>
                <DELETED>     ``(C) other relevant factors as 
                determined by the Board.</DELETED>
        <DELETED>    ``(3) Employee protection.--The Board shall 
        require protections consistent with the requirements of section 
        11326(a) for rail labor employees who are affected by an action 
        under this subsection.</DELETED>
        <DELETED>    ``(4) Purchaser preconditions.--Any purchaser or 
        tenant rail carrier that buys out an interchange commitment 
        under this subsection may determine preconditions, such as 
        payment of a subsidy, which must be met by shippers in order to 
        obtain service over such lines, but such rail carrier must 
        notify the shippers on the line of its intention to impose such 
        preconditions.</DELETED>
        <DELETED>    ``(5) Exception.--If the Board requires the 
        elimination of an interchange commitment under paragraph (1), 
        and the purchaser or tenant rail carrier or the seller or 
        lessor rail carrier demonstrates that the sale or lease 
        agreement containing the interchange commitment that contains a 
        provision governing the manner in which the agreement may be 
        terminated, the Board shall permit the agreement to be 
        terminated in accordance with that provision.</DELETED>
        <DELETED>    ``(6) Definitions.--In this subsection:</DELETED>
                <DELETED>    ``(A) Purchaser or tenant rail carrier.--
                The term `purchaser or tenant rail carrier' means a 
                Class II or Class III rail carrier that purchases or 
                leases a rail line that is subject to terms of an 
                interchange commitment.</DELETED>
                <DELETED>    ``(B) Seller or lessor rail carrier.--The 
                term `seller or lessor rail carrier' means a Class I 
                rail carrier that leased or sold a rail line subject to 
                terms of an interchange commitment.</DELETED>
<DELETED>    ``(e) Deadline for completion of proceeding.--The Board 
shall complete any proceeding under this section within 180 days after 
the close of the administrative record.''.</DELETED>
<DELETED>    (d) Railroad Rehabilitation and Improvement Financing.--
</DELETED>
        <DELETED>    (1) Section 502(b)(1) of the Railroad 
        Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
        822(b)(1)) is amended--</DELETED>
                <DELETED>    (A) by striking ``or'' after the semicolon 
                in subparagraph (B);</DELETED>
                <DELETED>    (B) by striking ``facilities.'' in 
                subparagraph (C) and inserting ``facilities; or''; 
                and</DELETED>
                <DELETED>    (C) by inserting after subparagraph (C) 
                the following:</DELETED>
                <DELETED>    ``(D) provide financial assistance to 
                purchase or lease a rail line subject to terms 
                established by the Surface Transportation Board under 
                section 11708(d) of title 49, United States 
                Code.''.</DELETED>
        <DELETED>    (2) Section 502 of that Act (45 U.S.C. 822) is 
        amended--</DELETED>
                <DELETED>    (A) by adding at the end of subsection (e) 
                the following:</DELETED>
        <DELETED>    ``(3) Interest rate reduction.--Subject to the 
        availability of funds authorized by subsection (k), the 
        Secretary may reduce the interest to be paid on direct loans 
        provided to a Class II or Class III rail carrier for the 
        purpose of subsection (b)(1)(D).'';</DELETED>
                <DELETED>    (B) in subsection (f)(1)--</DELETED>
                        <DELETED>    (i) by inserting ``or private 
                        insurance, including bond insurance,'' after 
                        ``in part credit risk''; and</DELETED>
                        <DELETED>    (ii) by inserting ``or insurance, 
                        including bond insurance,'' after ``authority 
                        and credit risk'';</DELETED>
                <DELETED>    (C) by striking ``amounts.'' in subsection 
                (f)(3) and inserting ``amounts or, at the discretion of 
                the Secretary, in a series of payments over the term of 
                the loan. If insurance, including bond insurance, is 
                used, the policy premium shall be paid before the loan 
                is disbursed.''; and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(k) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary for purposes of carrying 
out subsection (e)(3) such funds as may be necessary for fiscal years 
2010 through 2014.''.</DELETED>
<DELETED>    (e) Interchange Commitment Relief Grants.--Chapter 201 is 
amended by adding at end thereof the following:</DELETED>
<DELETED>``</DELETED><DELETED>20168. Interchange commitment relief 
              grants</DELETED>
<DELETED>    ``(a) In General.--Upon application, the Secretary of 
Transportation, in consultation with the Surface Transportation Board, 
may make grants available to assist any Class III rail carrier 
providing transportation subject to the jurisdiction of the Surface 
Transportation Board with the credit risk premium of a direct loan or 
loan guarantee made for the purposes of section 502(b)(1)(D) of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(b)(1)(D)).</DELETED>
<DELETED>    ``(b) Limitations.--The Secretary of Transportation--
</DELETED>
        <DELETED>    ``(1) shall award grants only to applicants with 
        financial need; and</DELETED>
        <DELETED>    ``(2) may approve a grant under this section only 
        as part of an application for a Railroad Rehabilitation and 
        Improvement Financing loan or loan guarantee.</DELETED>
<DELETED>    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary of Transportation for 
grants under this section $37,500,000 for fiscal years 2010 through 
2014.''.</DELETED>
<DELETED>    (f) Conforming Amendments.--</DELETED>
        <DELETED>    (1) The table of contents for chapter 117 is 
        amended by inserting after the item relating to section 11707 
        the following:</DELETED>

<DELETED>``11708. Interchange commitments: rights and remedies''.
        <DELETED>    (2) The table of contents for chapter 201 is 
        amended by inserting after the item relating to section 20167 
        the following:</DELETED>

<DELETED>``20168. Interchange commitment relief grants''.

<DELETED>SEC. 302. BOTTLENECK AND TERMINAL SWITCHING RATES.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 107 is amended by 
adding at the end thereof the following:</DELETED>
<DELETED>``</DELETED><DELETED>10710. Bottleneck and terminal switching 
              rates</DELETED>
<DELETED>    ``(a) A Class I rail carrier, or other rail carrier as 
deemed appropriate by the Board, that provides a rate for 
transportation between an origin and destination either as a single 
line movement or as part of an interline movement and over which the 
carrier has market dominance pursuant to section 10707 shall, upon the 
reasonable request of a rail customer, establish a bottleneck rate for 
the purpose of providing transportation over a bottleneck segment 
located between such an origin and destination pursuant to this 
section. If the rail carrier contends that the transportation is not 
subject to market dominance under that section, the rail carrier shall 
seek an expedited determination of that issue from the Board.</DELETED>
<DELETED>    ``(b) Such a carrier shall establish such a rate and 
provide service upon such request without regard to whether the shipper 
has made arrangements for transportation for any other part of that 
movement.</DELETED>
<DELETED>    ``(c)(1) If the Board determines, under section 10707 of 
this title, that such a rail carrier has market dominance between the 
origin and destination, the bottleneck rate established for 
transportation pursuant to this section must be reasonable.</DELETED>
<DELETED>    ``(2)(A) Not later than one year after the date of 
enactment of the Surface Transportation Board Reauthorization Act of 
2009, the Board shall establish and maintain standards for determining 
whether a bottleneck rate established by a rail carrier is reasonable 
for purposes of this section and establish a simplified and expedited 
method for determining the reasonableness of challenged bottleneck 
rates. In developing those standards the Board shall consider rail 
carriers' need to earn adequate revenues to provide and sustain 
consistent, efficient, and reliable transportation services and to 
maintain the national rail system.</DELETED>
<DELETED>    ``(B) In developing the standards, the Board shall 
include, as part of a reasonable rate-- -</DELETED>
        <DELETED>    ``(i) operating costs, including any additional 
        labor costs, of providing the requested transportation service 
        over the bottleneck segment;</DELETED>
        <DELETED>    ``(ii) maintenance costs associated with providing 
        the requested transportation service;</DELETED>
        <DELETED>    ``(iii) additional capital and investment costs 
        required to perform the requested transportation service over 
        the bottleneck segment;</DELETED>
        <DELETED>    ``(iv) a reasonable return on embedded capital 
        used for the requested transportation service over the 
        bottleneck segment sufficient to meet the rail carrier's cost 
        of capital or, if such cost is not available, the rail industry 
        cost of capital;</DELETED>
        <DELETED>    ``(v) a reasonable contribution, to the extent 
        appropriate, to that carrier's network infrastructure costs of 
        the non-bottleneck segment of the route offered by the 
        incumbent rail carrier that is sufficient, along with other 
        traffic on the segment, to maintain the non-bottleneck segment; 
        and</DELETED>
        <DELETED>    ``(vi) any other contributing factors appropriate 
        to meet the consideration in subparagraph (A).</DELETED>
<DELETED>    ``(d) In any proceeding in which a rail customer 
challenges a bottleneck rate established under this section as 
unreasonable, the burden of proof that the rate is reasonable shall be 
on the rail carrier.</DELETED>
<DELETED>    ``(e) In this section:</DELETED>
        <DELETED>    ``(1) The term `bottleneck rate' means a rate for 
        transportation over a bottleneck segment.</DELETED>
        <DELETED>    ``(2) The term `bottleneck segment' means the rail 
        facilities, including rail facilities located entirely in 
        terminal areas, between an origin on the carrier's system and 
        an interchange or between a destination on the carrier's system 
        and an interchange.</DELETED>
        <DELETED>    ``(3) The term `interchange' means an interchange 
        on such a rail carrier's system that exists on the date of the 
        shipper's request for a rate covered by this section that--
        </DELETED>
                <DELETED>    ``(A) is practicable and would not 
                significantly adversely affect such rail carrier's 
                network efficiency; and</DELETED>
                <DELETED>    ``(B) would not significantly impair 
                service to other customers of such rail 
                carrier.''.</DELETED>
<DELETED>    (b) Conforming Amendments.--</DELETED>
        <DELETED>    (1) The table of contents for chapter 107 is 
        amended by inserting after the item relating to section 10709 
        the following:</DELETED>

<DELETED>``10710. Bottleneck and terminal switching rates''.
        <DELETED>    (2) Section 10705(a)(2)(A) is amended by inserting 
        ``10710,'' after ``under section''.</DELETED>

<DELETED>SEC. 303. TERMINAL ACCESS.</DELETED>

<DELETED>    Section 11102 is amended to read as follows:</DELETED>
<DELETED>``</DELETED><DELETED>11102. Use of terminal 
              facilities</DELETED>
<DELETED>    ``(a) For a Class I rail carrier, or other rail carrier as 
deemed appropriate by the Board, providing transportation over which 
the rail carrier has market dominance pursuant to section 10707 in a 
terminal area, the Board may require the rail carrier to make its 
terminal facilities, including mainline tracks for a reasonable 
distance outside of that terminal, available for use by another rail 
carrier for such transporation.</DELETED>
<DELETED>    ``(b) The Board may only require that a rail carrier take 
such action under subsection (a) if the Board finds that such action--
</DELETED>
        <DELETED>    ``(1) would be practicable and would not 
        significantly adversely affect the operations of the terminal 
        or facility owned by such rail carrier or rail carriers 
        otherwise entitled to use the terminal or facilities;</DELETED>
        <DELETED>    ``(2) would not significantly adversely affect the 
        network efficiency of such rail carrier or rail carriers 
        otherwise entitled to use the terminal or facilities;</DELETED>
        <DELETED>    ``(3) would not significantly impair service to 
        other customers of such rail carrier or other rail carriers 
        entitled to use the terminal or facilities;</DELETED>
        <DELETED>    ``(4) is necessary to promote the efficient 
        operation of the railroad system and improve rail service; 
        and</DELETED>
        <DELETED>    ``(5) is in the public interest.</DELETED>
<DELETED>    ``(c) The rail carriers required to make facilities 
available or provide service pursuant to subsection (a) are responsible 
for establishing reasonable conditions and compensation for the use of 
the facilities. The compensation shall be paid or adequately secured 
before a rail carrier may begin to use the facilities of another rail 
carrier.</DELETED>
<DELETED>    ``(d)(1) Not later than one year after the date of 
enactment of the Surface Transportation Board Reauthorization Act of 
2009, the Board shall establish and maintain standards for determining 
whether compensation is reasonable for purposes of this section and 
establish a simplified and expedited method for determining the 
reasonableness of challenged compensation rates.</DELETED>
<DELETED>    ``(2) In developing such standards, the Board shall 
consider rail carriers' need to earn adequate revenues to provide and 
sustain consistent, efficient, and reliable transportation services and 
to maintain the national rail system.</DELETED>
<DELETED>    ``(e) In developing the standards required by subsection 
(d), the Board shall include, as part of a reasonable compensation-- -
</DELETED>
        <DELETED>    ``(1) operating costs, including any additional 
        labor costs, of providing the requested usage;</DELETED>
        <DELETED>    ``(2) maintenance costs associated with providing 
        the requested usage;</DELETED>
        <DELETED>    ``(3) additional capital and investment costs 
        required to perform the requested usage;</DELETED>
        <DELETED>    ``(4) a reasonable return on embedded capital 
        employed for the requested usage of terminal facilities 
        sufficient to meet the rail carrier's cost of capital or, if 
        such cost is not available, the rail industry cost of 
        capital;</DELETED>
        <DELETED>    ``(5) a reasonable contribution, to the extent 
        appropriate, to that carrier's network infrastructure costs of 
        the route beyond the terminal facilities and main line tracks 
        made available for the requested usage, that is sufficient, 
        along with other traffic on the route and mainline track, to 
        maintain the route beyond the terminal facilities and mainline 
        tracks made available for the requested usage; and</DELETED>
        <DELETED>    ``(6) any other contributing factors appropriate 
        to meet the considerations in subsection (d)(2).</DELETED>
<DELETED>    ``(g) A rail carrier whose terminal facilities are 
required to be used by another rail carrier under this section is 
entitled to recover compensation from the other rail carrier for 
damages sustained as the result of compliance with the requirement in a 
civil action.</DELETED>
<DELETED>    ``(h) In any proceeding in which a rail carrier challenges 
a compensation rate established under this section as unreasonable, the 
burden of proof that the rate is reasonable shall be on the rail 
carrier whose terminal facilities are required to be used by the other 
rail carrier.</DELETED>
<DELETED>    ``(i) If the Board requires that a rail carrier take such 
an action under subsection (a), the Board shall provide for the 
protection of the interests of employees affected thereby, consistent 
with the level of protection under section 10902 of this 
title.</DELETED>
<DELETED>    ``(j) The Board shall complete any proceeding under this 
section within 180 days after the closing of the evidentiary record. 
The Board may extend the deadline in incremental 30-day periods if it 
issues a decision demonstrating why such an extension is 
necessary.''.</DELETED>

<DELETED>SEC. 304. SERVICE.</DELETED>

<DELETED>    Section 11101 is amended--</DELETED>
        <DELETED>    (1) by redesignating subsection (f) as subsection 
        (g); and</DELETED>
        <DELETED>    (2) by inserting after subsection (e) the 
        following:</DELETED>
<DELETED>    ``(f) The Board shall, by regulation, require rail 
carriers to publish reasonable common carrier service expectation 
ranges. These may include ranges for normal car cycle times, transit 
times, switching frequency, and other service components as determined 
by the Board to be appropriate.''.</DELETED>

<DELETED>SEC. 305. ARBITRATION OF CERTAIN RAIL RATE, PRACTICE, AND 
              COMMON CARRIER SERVICE EXPECTATION DISPUTES.</DELETED>

<DELETED>    (a) In General.--Chapter 117, as amended by section 301, 
is further amended by adding at the end the following:</DELETED>
<DELETED>``</DELETED><DELETED>11709. Arbitration of certain rail rate, 
              practice, and common carrier service disputes</DELETED>
<DELETED>    ``(a) In General.--Not later than one year after enactment 
of the Surface Transportation Board Reauthorization Act of 2009, the 
Board shall promulgate regulations to establish a binding arbitration 
process to resolve rail rate, practice, and common carrier service 
expectation complaints subject to the jurisdiction of the 
Board.</DELETED>
<DELETED>    ``(b) Covered Disputes.--The binding arbitration process--
</DELETED>
        <DELETED>    ``(1) shall apply to disputes involving rates, 
        practices, and common carrier service expectations subject to 
        the jurisdiction of the Board;</DELETED>
        <DELETED>    ``(2) shall not apply to disputes to obtain the 
        grant, denial, stay or revocation of any license, authorization 
        or exemption, to prescribe for the future any conduct, rules, 
        or results of general, industry-wide applicability, or to 
        enforce labor protective conditions; and</DELETED>
        <DELETED>    ``(3) shall not apply to disputes solely between 2 
        or more rail carriers.</DELETED>
<DELETED>    ``(c) Arbitration Procedures.--</DELETED>
        <DELETED>    ``(1) The Board--</DELETED>
                <DELETED>    ``(A) may make the binding arbitration 
                process available only to the relevant parties--
                </DELETED>
                        <DELETED>    ``(i) after the filing of a formal 
                        complaint; or</DELETED>
                        <DELETED>    ``(ii) upon petition by a party at 
                        the conclusion of any informal dispute 
                        resolution process provided by the Board for a 
                        complaint subject to this section;</DELETED>
                <DELETED>    ``(B) with respect to rate disputes, may 
                make the binding arbitration process available only to 
                the relevant parties if the rail carrier has market 
                dominance, as determined under section 10707 of this 
                title; and</DELETED>
                <DELETED>    ``(C) shall determine whether to pursue 
                the binding arbitration process no later than 30 days 
                after the filing of a petition or formal 
                complaint.</DELETED>
        <DELETED>    ``(2) Initiation of the binding arbitration 
        process shall preclude the Board from separately reviewing a 
        complaint or dispute related to the same rate, practice, or 
        common carrier service expectation in a covered dispute 
        involving the same parties.</DELETED>
        <DELETED>    ``(3) In resolving disputes involving the 
        reasonableness of a rail carrier's rates, the arbitrator shall 
        consider the Board's methodologies for setting maximum lawful 
        rates, giving due consideration to the need for differential 
        pricing to permit a rail carrier to collect adequate revenues 
        within the meaning of section 10704(a)(2) of this 
        title.</DELETED>
        <DELETED>    ``(4) In resolving disputes involving common 
        carrier service expectations, the arbitrator shall consider 
        service expectations as published pursuant to section 
        11101(f).</DELETED>
<DELETED>    ``(d) Arbitration Decisions.--Any decision reached in an 
arbitration process under this section shall--</DELETED>
        <DELETED>    ``(1) be consistent with subtitle IV of this 
        title;</DELETED>
        <DELETED>    ``(2) be in writing and shall contain findings of 
        fact and conclusions;</DELETED>
        <DELETED>    ``(3) have no precedential effect in any other or 
        subsequent arbitration dispute; and</DELETED>
        <DELETED>    ``(4) be binding upon the parties.</DELETED>
<DELETED>    ``(e) Timelines.--</DELETED>
        <DELETED>    ``(1) The arbitrator shall be selected within 14 
        days after the Board's decision to initiate 
        arbitration.</DELETED>
        <DELETED>    ``(2) The evidentiary process of the arbitration 
        process shall be completed within 90 days after the date of 
        initiation of the arbitration process, unless a party requests 
        an extension and the arbitrator grants it.</DELETED>
        <DELETED>    ``(3) The arbitrator shall issue a decision within 
        30 days after the close of the evidentiary record.</DELETED>
        <DELETED>    ``(4) The Board may extend any of the timelines in 
        this subsection upon the agreement of all parties in the 
        dispute.</DELETED>
<DELETED>    ``(f) Arbitrators.--Arbitration under this section shall 
be conducted by an arbitrator selected from a roster, maintained by the 
Board, of persons with transportation, economic regulation, 
professional or business experience, including agriculture, in the 
private sector. If the parties cannot mutually agree on an arbitrator, 
the parties shall select an arbitrator from the roster by alternately 
striking names from the roster until only 1 name remains. The parties 
shall share the costs of the arbitration equally.</DELETED>
<DELETED>    ``(g) Relief.--</DELETED>
        <DELETED>    ``(1) Limitation.--A decision under this section 
        may award the payment of damages or rate prescriptive relief, 
        but the value of the award may not exceed $250,000 per year and 
        the award may not cover a total time period of more than 2 
        years.</DELETED>
        <DELETED>    ``(2) Review.--The board shall periodically review 
        the amount in paragraph (1) and adjust it as necessary to 
        reflect inflation.</DELETED>
<DELETED>    ``(h) Board Review.--If a party appeals an arbitrator's 
decision to the Board, the Board may review the decision under this 
section to determine if--</DELETED>
        <DELETED>    ``(1) the decision is consistent with subtitle IV 
        of this title as applied by the Board; or</DELETED>
        <DELETED>    ``(2) if the award limitation in subsection 
        (g).''.</DELETED>
<DELETED>    (b) Conforming Amendment.--The table of contents for 
chapter 117 is amended by adding at the end following:</DELETED>

<DELETED>``11709. Arbitration of certain rail rate, practice, and 
                            common carrier service disputes''.

<DELETED>SEC. 306. MAXIMUM RELIEF IN CERTAIN RATE CASES.</DELETED>

<DELETED>    (a) In General.--The Board shall revise the maximum amount 
of rate relief available to railroad shippers in cases brought pursuant 
to the methods developed under section 10701(d)(3) of title 49, United 
States Code, as that section existed as of the date of enactment of 
this Act, to be as follows--</DELETED>
        <DELETED>    (1) $1,500,000 in a rate case brought using the 
        Board's ``three-benchmark'' procedure; and</DELETED>
        <DELETED>    (2) $10,000,000 in a rate case brought using the 
        Board's ``simplified stand-alone cost'' procedure.</DELETED>
<DELETED>    (b) Periodic Review.--The Board shall periodically review 
the amounts established by subsection (a) and revise them as 
appropriate.</DELETED>

<DELETED>SEC. 307. ADVANCE RATE CHALLENGE.</DELETED>

<DELETED>    The Surface Transportation Board may consider the 
reasonableness of a rate quoted by a rail carrier up to 1 year before 
the date on which the rate is to take effect.</DELETED>

<DELETED>SEC. 308. RATE REVIEW TIMELINES.</DELETED>

<DELETED>    In stand-alone cost rate challenges, the Surface 
Transportation Board shall comply with the following timelines unless 
it extends them, after a request from any party or in the interest of 
due process:</DELETED>
        <DELETED>    (1) For discovery, 150 days after the date on 
        which the challenge is initiated.</DELETED>
        <DELETED>    (2) For development of the evidentiary record, 155 
        days after that date.</DELETED>
        <DELETED>    (3) For submission of parties' closing briefs, 60 
        days after that date.</DELETED>
        <DELETED>    (4) For a final Board decision, 180 days after the 
        date on which the parties submit closing briefs.</DELETED>

<DELETED>SEC. 309. REVENUE ADEQUACY STUDY.</DELETED>

<DELETED>    Within 180 days after the date of enactment of this Act, 
the Surface Transportation Board shall initiate a study to provide 
further guidance on how it will apply its revenue adequacy constraint. 
In conducting the study the Board shall provide public notice and 
opportunity for comment and conduct 1 or more public 
hearings.</DELETED>

<DELETED>SEC. 310. PUBLIC USAGE OF ABANDONED RAIL PROPERTIES.</DELETED>

<DELETED>    Section 10905 is amended--</DELETED>
        <DELETED>    (1) by striking ``other forms of mass 
        transportation,'' and inserting ``public 
        transportation,'';</DELETED>
        <DELETED>    (2) by striking ``the properties may be sold,'' 
        and inserting ``the Board may require that the properties be 
        sold,'';</DELETED>
        <DELETED>    (3) by striking ``only under conditions'' and 
        inserting ``pursuant to conditions, including the amount of 
        compensation,''; and</DELETED>
        <DELETED>    (4) by striking ``The conditions may include a 
        prohibition on any such disposal'' and inserting ``At a 
        minimum, the Board shall prohibit any disposal of such 
        properties''.</DELETED>

<DELETED>SEC. 311. TRANSACTIONS.</DELETED>

<DELETED>    Section 11325 is amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' after ``(a)'' in 
        subsection (a) and redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C);</DELETED>
        <DELETED>    (2) by adding at the end of subsection (a) the 
        following:</DELETED>
<DELETED>    ``(2) The Board may extend the time limits specified in 
subsections (b), (c), and (d) of this section when more time is 
necessary to complete the environmental review process.''; 
and</DELETED>
        <DELETED>    (3) by striking ``a transaction other than the 
        merger or control of at least two Class I railroads, as defined 
        by the Board, which the Board has determined to be of regional 
        or national transportation significance,'' in subsection (c) 
        and inserting ``the merger or control of one Class I railroad 
        and at least one Class II railroad, as defined by the Board, or 
        if it involves a merger or control transaction, other than a 
        transaction subject to subsection (b), which the Board has 
        determined to be of regional or national transportation 
        significance,''.</DELETED>

<DELETED>SEC. 312. CONSIDERATIONS IN CONSOLIDATIONS, MERGERS, AND 
              ACQUISITIONS.</DELETED>

<DELETED>    Section 11324 is amended--</DELETED>
        <DELETED>    (1) by striking paragraph (5) of subsection (b) 
        and inserting the following:</DELETED>
        <DELETED>    ``(5) the effect of the proposed transaction on 
        competition among rail carriers in the affected region or in 
        the national rail system.'';</DELETED>
        <DELETED>    (2) by redesignating subsections (e) and (f) as 
        subsections (f) and (g), respectively;</DELETED>
        <DELETED>    (3) by striking ``Board,'' in subsection (d) and 
        inserting ``Board, subject to subsection (e)''; and</DELETED>
        <DELETED>    (4) by inserting after subsection (d) the 
        following:</DELETED>
<DELETED>    ``(e) In considering whether to approve, deny, or approve 
with conditions a transaction covered under subsections (b) or (d) of 
this section, the Board may take into account any potentially 
significant effects of the transaction on--</DELETED>
        <DELETED>    ``(1) public health, safety, and the environment; 
        and</DELETED>
        <DELETED>    ``(2) intercity rail passenger transportation and 
        commuter rail passenger transportation, as defined by section 
        24102 of this title.''.</DELETED>

<DELETED>SEC. 313. RAILROAD DEVELOPMENT.</DELETED>

<DELETED>    Section 10907(h) is amended to read as follows:</DELETED>
<DELETED>    ``(h) If a purchasing carrier under this section proposes 
to sell or abandon all or any portion of a purchased railroad line 
within 5 years after the date of sale under this section, such 
purchasing carrier shall offer the right of first refusal with respect 
to such line or portion thereof to the carrier which sold such line 
under this section. The offer shall be made at a price equal to the sum 
of the price paid by such purchasing carrier to such selling carrier 
for such line or portion thereof and the fair market value (less 
deterioration) of any improvements made, as adjusted to reflect 
inflation.''.</DELETED>

<DELETED>SEC. 314. REGULATORY REFORM REVIEW.</DELETED>

<DELETED>    (a) Review.--The Comptroller General of the United States 
shall undertake a review of the regulatory changes made by this Act. 
The review shall include--</DELETED>
        <DELETED>    (1) a review of the Surface Transportation Board's 
        progress in implementing the provisions of this Act;</DELETED>
        <DELETED>    (2) an assessment of the impact on the rail 
        transportation system of the regulatory changes made by this 
        Act; and</DELETED>
        <DELETED>    (3) a specific analysis of the impact on railroad 
        operations, rates, competition, service, revenues, maintenance, 
        and investment resulting from the implementation of sections 
        11102 and 10710 of title 49, United States Code, as amended and 
        added, respectively, by this Act.</DELETED>
<DELETED>    (b) Consultation.--In conducting this review, the 
Comptroller General shall solicit input from the railroads, railroad 
shippers, railroad non-profit employee labor organizations, the Federal 
Railroad Administration, and other entities, as appropriate.</DELETED>
<DELETED>    (c) Report to Congress.--Not later than December 31, 2013, 
the Comptroller General shall transmit a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure 
containing the results of the review required by this section and any 
appropriate recommendations.</DELETED>

          <DELETED>TITLE IV--TECHNICAL CORRECTIONS.</DELETED>

<DELETED>SEC. 401. TECHNICAL CORRECTIONS TO PUBLIC LAW 110-
              432.</DELETED>

<DELETED>    (a) The title of Public Law 110-432 is amended by striking 
``Federal Railroad Safety Administration'' and inserting ``Federal 
Railroad Administration''.</DELETED>
<DELETED>    (b) The table of contents in section 1(b) of the Rail 
Safety Improvement Act of 2008 is amended--</DELETED>
        <DELETED>    (1) in the item relating to section 201 by 
        striking ``Pedestrian crossing safety'' and inserting 
        ``Pedestrian safety at or near railroad passenger stations''; 
        and</DELETED>
        <DELETED>    (2) in the item relating to section 403 by 
        striking ``Track inspection time study'' and inserting ``Study 
        and rulemaking on track inspection time; rulemaking on concrete 
        crossties''.</DELETED>
<DELETED>    (c) Section 2(a)(1) of the Rail Safety Improvement Act of 
2008 is amended by inserting a comma after ``railroad tracks at 
grade''.</DELETED>
<DELETED>    (d) Section 102(a)(6) of the Rail Safety Improvement Act 
of 2008 is amended to read as follows:</DELETED>
        <DELETED>    ``(6) Improving the safety of railroad bridges, 
        tunnels, and related infrastructure to prevent accidents, 
        incidents, injuries, and fatalities caused by catastrophic and 
        other failures of such infrastructure.''.</DELETED>
<DELETED>    (e) Section 108(f)(1) of the Rail Safety Improvement Act 
of 2008 is amended by striking ``requirements for recordkeeping and 
reporting for Hours of Service of Railroad Employees'' and inserting 
``requirements for record keeping and reporting for hours of service of 
railroad employees''.</DELETED>
<DELETED>    (f) Section 201 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) in the section heading by striking 
        ``PEDESTRIAN CROSSING SAFETY'' and inserting ``PEDESTRIAN 
        SAFETY AT OR NEAR RAILROAD PASSENGER STATIONS'';</DELETED>
        <DELETED>    (2) by striking ``strategies and methods to 
        prevent pedestrian accidents, incidents, injuries, and 
        fatalities at or near passenger stations, including'' and 
        inserting ``strategies and methods to prevent train-related 
        accidents, incidents, injuries, and fatalities that involve a 
        pedestrian at or near a railroad passenger station, 
        including''; and</DELETED>
        <DELETED>    (3) in paragraph (1) by striking ``at railroad 
        passenger stations''.</DELETED>
<DELETED>    (g) Section 206(a) of the Rail Safety Improvement Act of 
2008 is amended by striking ``Public Service Announcements'' and 
inserting ``public service announcements''.</DELETED>
<DELETED>    (h) Section 403 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) in the section heading by striking ``TRACK 
        INSPECTION TIME STUDY'' and inserting ``STUDY AND RULEMAKING ON 
        TRACK INSPECTION TIME; RULEMAKING ON CONCRETE CROSSTIES''; 
        and</DELETED>
        <DELETED>    (2) in subsection (d)--</DELETED>
                <DELETED>    (A) by striking ``Cross Ties'' in the 
                subsection heading and inserting 
                ``Crossties'';</DELETED>
                <DELETED>    (B) by striking ``cross ties'' and 
                inserting ``crossties''; and</DELETED>
                <DELETED>    (C) in paragraph (2) by striking ``cross 
                tie'' and inserting ``crosstie''.</DELETED>
<DELETED>    (i) Section 405 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) in subsection (a) by striking ``cell phones'' 
        and inserting ``cellular telephones''; and</DELETED>
        <DELETED>    (2) in subsection (d) by striking ``Secretary of 
        Transportation'' and inserting ``Secretary''.</DELETED>
<DELETED>    (j) Section 411(a) of the Rail Safety Improvement Act of 
2008 is amended--</DELETED>
        <DELETED>    (1) by striking ``5101(a)'' and inserting 
        ``5105(a)''; and</DELETED>
        <DELETED>    (2) by striking ``5101(b)'' and inserting 
        ``5105(b)''.</DELETED>
<DELETED>    (k) Section 412 of the Rail Safety Improvement Act of 2008 
is amended by striking ``Secretary of Transportation'' and inserting 
``Secretary''.</DELETED>
<DELETED>    (l) Section 414 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) in paragraph (2) by striking ``parts 171.8, 
        173.115,'' and inserting ``sections 171.8, 173.115,''; 
        and</DELETED>
        <DELETED>    (2) by striking ``part 1520.5'' and inserting 
        ``section 1520.5''.</DELETED>
<DELETED>    (m) Section 416 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) by striking ``Secretary of Transportation'' 
        and inserting ``Secretary'';</DELETED>
        <DELETED>    (2) in paragraphs (3) and (4), by striking 
        ``Federal Railroad Administration'' and inserting 
        ``Secretary''; and</DELETED>
        <DELETED>    (3) in paragraph (4) by striking ``subsection'' 
        and inserting ``section''.</DELETED>
<DELETED>    (n) Section 417(c) of the Rail Safety Improvement Act of 
2008 is amended by striking ``each railroad'' and inserting ``each 
railroad carrier''.</DELETED>
<DELETED>    (o) Section 503 of the Rail Safety Improvement Act of 2008 
is amended--</DELETED>
        <DELETED>    (1) in subsection (a) by striking ``rail 
        accidents'' and inserting ``rail passenger accidents''; 
        and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
<DELETED>    ``(d) Definitions.--In this section, the terms 
`passenger', `rail passenger accident', and `rail passenger carrier' 
have the meaning given those terms by section 1139 of title 49, United 
States Code.</DELETED>
<DELETED>    ``(e) Funding.--Out of funds appropriated pursuant to 
section 20117(a)(1)(A) of title 49, United States Code, there shall be 
made available to the Secretary of Transportation $500,000 for fiscal 
year 2009 to carry out this section. Amounts made available pursuant to 
this subsection shall remain available until expended.''.</DELETED>
<DELETED>    (p) Section 206(a) of the Passenger Rail Investment and 
Improvement Act of 2008 is amended by inserting ``of this division'' 
after ``302''.</DELETED>
<DELETED>    (q) Section 211 of the Passenger Rail Investment and 
Improvement Act of 2008 is amended--</DELETED>
        <DELETED>    (1) by inserting ``of this division'' after 
        ``101(c)'' in subsection (d); and</DELETED>
        <DELETED>    (2) by inserting ``of this division'' after 
        ``101(d)'' in subsection (e).</DELETED>
<DELETED>    (r) Section 1139 is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(1) by striking ``phone 
        number'' and inserting ``telephone number'';</DELETED>
        <DELETED>    (2) in subsection (a)(2) by striking ``post trauma 
        communication with families'' and inserting ``post-trauma 
        communication with families'';</DELETED>
        <DELETED>    (3) in subsection (h)(1)(A) by striking 
        ``interstate'';</DELETED>
        <DELETED>    (4) in subsection (h)(2)(A)--</DELETED>
                <DELETED>    (A) by striking ``interstate or 
                intrastate''; and</DELETED>
                <DELETED>    (B) by striking ``26105`` and inserting 
                ``26106(b)(4)'';</DELETED>
        <DELETED>    (5) in subsection (j)(1) by striking ``(other than 
        subsection (g))'' and inserting ``(other than subsections (g) 
        and (k))''; and</DELETED>
        <DELETED>    (6) in paragraphs (1) and (2) of subsection (j) by 
        striking ``railroad passenger accident'' and inserting ``rail 
        passenger accident''.</DELETED>
<DELETED>    (s) Section 10909(b) is amended by striking ``Clean 
Railroad Act of 2008,'' and inserting ``Clean Railroads Act of 
2008,''.</DELETED>
<DELETED>    (t) Section 20109(c)(1) is amended by striking ``the 
railroad shall promptly arrange'' and inserting ``the railroad carrier 
shall promptly arrange''.</DELETED>
<DELETED>    (u) Section 20120(a) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)(G), by inserting ``and'' at 
        the end; and</DELETED>
        <DELETED>    (2) in paragraph (5)(B) by striking 
        ``Administrative Hearing Officer or Administrative Law Judge'' 
        and inserting ``administrative hearing officer or 
        administrative law judge''.</DELETED>
<DELETED>    (v) Section 20151(d)(1) is amended by striking ``to drive 
around a grade crossing gate'' and inserting ``to drive through, 
around, or under a grade crossing gate''.</DELETED>
<DELETED>    (w) Section 20152(b) is amended by striking ``Class II and 
Class III rail carriers'' and inserting ``Class II and III railroad 
carriers''.</DELETED>
<DELETED>    (x) Section 20156 is amended--</DELETED>
        <DELETED>    (1) in subsection (c) by inserting a comma after 
        ``In developing its railroad safety risk reduction program''; 
        and</DELETED>
        <DELETED>    (2) in subsection (g)(1) by striking ``non-
        profit'' and inserting ``nonprofit''.</DELETED>
<DELETED>    (y) Section 20157(a)(1) is amended--</DELETED>
        <DELETED>    (1) by striking ``Class I railroad carrier'' and 
        inserting ``Class I railroad''; and</DELETED>
        <DELETED>    (2) by striking ``parts 171.8, 173.115, and 
        173.132'' and inserting ``sections 171.8, 173.115, and 
        173.132''.</DELETED>
<DELETED>    (z) Section 20158(b)(3) is amended by striking 
``20156(e)(2)'' and inserting ``20156(e)''.</DELETED>
<DELETED>    (aa) Section 20159 is amended by striking ``the 
Secretary'' and inserting ``the Secretary of 
Transportation''.</DELETED>
<DELETED>    (bb) Section 20160 is amended--</DELETED>
        <DELETED>    (1) in subsection (a)(1) by striking ``or with 
        respect to'' and inserting ``with respect to''; and</DELETED>
        <DELETED>    (2) in subsection (b)(1)(A) by striking ``or with 
        respect to'' and inserting ``with respect to''.</DELETED>
<DELETED>    (cc) Section 20162(a)(3) is amended by striking ``railroad 
compliance with Federal standards'' and inserting ``railroad carrier 
compliance with Federal standards''.</DELETED>
<DELETED>    (dd) Section 20164(a) is amended by striking ``the 
Railroad Safety Enhancement Act of 2008'' and inserting ``the Rail 
Safety Improvement Act of 2008''.</DELETED>
<DELETED>    (ee) Section 21102(c)(4) is amended by re-designating 
subparagraphs (C) and (D) as subparagraphs (B) and (C), 
respectively.</DELETED>
<DELETED>    (ff) Section 22106(b) is amended by striking ``interest 
thereof'' and inserting ``interest thereon''.</DELETED>
<DELETED>    (gg) Section 24105(e) of title 49, United States Code, is 
amended by striking ``section 301 of the Passenger Rail Investment and 
Improvement Act of 2008'' and inserting ``section 24406''.</DELETED>
<DELETED>    (hh) Section 24302(a)(3) is amended by striking ``5 
individuals'' and inserting ``4 individuals''.</DELETED>
<DELETED>    (ii) Section 24316 is amended by striking subsection 
(g).</DELETED>
<DELETED>    (jj) The item relating to section 24316 in the table of 
contents for chapter 243 is amended by striking ``to assist families of 
passengers'' and inserting ``to address needs of families of 
passengers''.</DELETED>
<DELETED>    (kk) Section 24402 is amended--</DELETED>
        <DELETED>    (1) by striking ``22506'' in subsection (d) and 
        inserting ``22706'';</DELETED>
        <DELETED>    (2) by striking ``22504(a)(5)'' in subsection (e) 
        and inserting ``22705(a)(5)'';</DELETED>
        <DELETED>    (3) by striking subsection (e) and inserting the 
        following:</DELETED>
<DELETED>    ``(e) Amtrak Eligibility.--Amtrak may be the recipient of 
a grant under this section if Amtrak has entered into a cooperative 
agreement with 1 or more applicants to carry out 1 or more projects on 
a State rail plan's list of rail capital projects developed under 
section 22705(a)(5) of this title. For such a grant, Amtrak may not use 
Federal funds authorized under section 101(a) or (c) of the Passenger 
Rail Investment and Improvement Act of 2008 to fulfill the non-Federal 
share requirements under subsection (g) of this section.'';</DELETED>
        <DELETED>    (4) by striking ``and Early Systems Work 
        Agreements'' in the heading of subsection (f);</DELETED>
        <DELETED>    (5) by striking ``A metropolitan planning 
        organization, State transportation department, or other project 
        sponsor'' in subsection (i)(1) and inserting ``An applicant''; 
        and</DELETED>
        <DELETED>    (6) by striking subsection (k) and inserting the 
        following:</DELETED>
<DELETED>    ``(k) Small Capital Projects.--The Secretary shall make 
not less than 5 percent annually available from the amounts 
appropriated under section 24406 beginning in fiscal year 2009 for 
grants for capital projects eligible under this section not exceeding 
$2,000,000, including costs eligible under section 209(d) of the 
Passenger Rail Investment and Improvement Act of 2008. For grants 
awarded under this subsection, the Secretary may waive requirements of 
this section, including State rail plan requirements, as 
appropriate.''.</DELETED>
<DELETED>    (ll) Section 24403(b)(1) is amended by striking ``oversee 
the construction of such projects'' and inserting ``for activities to 
award and oversee the implementation of such projects''.</DELETED>
<DELETED>    (mm) Section 24405(b)(2) is amended by striking ``43 16 
U.S.C. 151'' and inserting ``45 U.S.C. 151''.</DELETED>
<DELETED>    (nn) Section 24702(a) is amended by striking ``not 
included in the national rail passenger transportation 
system''.</DELETED>
<DELETED>    (oo) Section 24706 is amended--</DELETED>
        <DELETED>    (1) by striking ``a discontinuance under section 
        24704 or'' in subsection (a)(1);</DELETED>
        <DELETED>    (2) by striking ``section 24704 or'' in subsection 
        (a)(2); and</DELETED>
        <DELETED>    (3) by striking ``section 24704 or'' under 
        subsection (b).</DELETED>
<DELETED>    (pp) Section 24709 is amended by striking ``The Secretary 
of the Treasury and the Attorney General,`` and inserting ``The 
Secretary of Homeland Security,''.</DELETED>
<DELETED>    (qq) Section 24905(f)(1) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (C) by striking ``freight 
        carriers'' and inserting ``freight railroad carriers''; 
        and</DELETED>
        <DELETED>    (2) in subparagraph (F) by striking ``rail labor'' 
        and inserting ``representatives of nonprofit employee labor 
        organizations representing railroad employees''.</DELETED>
<DELETED>    (rr) Section 26106(e)(4) is amended by striking ``22506'' 
and inserting ``22706''.</DELETED>

               <DELETED>TITLE V--MISCELLANEOUS</DELETED>

<DELETED>SEC. 501. PIPELINE INVESTIGATIVE AUTHORITY.</DELETED>

<DELETED>    Section 15901(a) is amended by striking ``only on 
complaint.'' and inserting ``on the Board's own initiative or on 
complaint.''.</DELETED>

<DELETED>SEC. 502. CARBON DIOXIDE PIPELINES.</DELETED>

<DELETED>    (a) In General.--Section 15301(a) is amended by striking 
``gas, or oil.'' and inserting ``oil, or natural or artificial gases 
that are used primarily as a fuel or for other energy 
purposes.''.</DELETED>
<DELETED>    (b) Pipeline Study.--Not later than 18 months after the 
date of enactment of this Act, the Comptroller General shall submit a 
study to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure that analyzes the Federal and State regulatory framework 
to support the development of pipelines for the purposes of the 
capture, transportation, and sequestration of carbon dioxide. The study 
shall examine the Federal permitting process for new carbon dioxide 
pipelines, the regulatory process for access, siting, eminent domain, 
and rate regulation. In conducting the study, the Comptroller General 
shall consult with the Surface Transportation Board, the Federal Energy 
Regulatory Commission, and other entities as appropriate.</DELETED>

<DELETED>SEC. 503. EFFECTIVE DATES; EFFECT ON EXISTING RATE 
              PRESCRIPTONS.</DELETED>

<DELETED>    (a) In General.--Except as provided in subsection (b), 
this Act shall take effect on the date of enactment.</DELETED>
<DELETED>    (b) Section 214.--The amendments made by section 214 shall 
take effect 2 years after the date of enactment of this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Surface Transportation Board 
Reauthorization Act of 2009''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Amendment of title 49, United States Code.

                   Title I--Administrative Provisions

Sec. 101. Authorization of appropriations.
Sec. 102. Board members.
Sec. 103. Establishment of Board as independent agency.
Sec. 104. Filing fees for certain cases.
Sec. 105. Repeal of expired and obsolete provisions.
Sec. 106. Department of Transportation Inspector General authority.
Sec. 107. Railroad-Shipper Transportation Advisory Council.

                    Title II--Authority Improvements

Sec. 201. Rail transportation policy update.
Sec. 202. Office of Public Assistance, Governmental Affairs, and 
                            Compliance.
Sec. 203. Investigative authority.
Sec. 204. Compilation of complaints.
Sec. 205. Exempt traffic.
Sec. 206. Railroad service metrics and performance data.
Sec. 207. Uniform railroad costing system.
Sec. 208. Replacement cost study.
Sec. 209. Rail practices study.
Sec. 210. Rail car interchange study.
Sec. 211. Offers of financial assistance.
Sec. 212. Adverse abandonments.
Sec. 213. Emergency service orders.
Sec. 214. Rate agreements.
Sec. 215. Miscellaneous provisions.

                      Title III--Regulatory Reform

Sec. 301. Paper barriers.
Sec. 302. Bottleneck and terminal switching rates.
Sec. 303. Terminal access.
Sec. 304. Service.
Sec. 305. Arbitration of certain rail rate, practice, and common 
                            carrier service expectation disputes.
Sec. 306. Maximum relief in certain rate cases.
Sec. 307. Advance rate challenge.
Sec. 308. Rate review timelines.
Sec. 309. Revenue adequacy study.
Sec. 310. Public usage of abandoned rail properties.
Sec. 311. Transactions.
Sec. 312. Considerations in consolidations, mergers, and acquisitions.
Sec. 313. Railroad development.
Sec. 314. Regulatory reform review.

                    Title IV--Technical Corrections

Sec. 401. Technical corrections to Public Law 110-432.

                         Title V--Miscellaneous

Sec. 501. Pipeline investigative authority.
Sec. 502. Carbon dioxide pipelines.
Sec. 503. Effective dates.

SEC. 3. 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--ADMINISTRATIVE PROVISIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 705 is amended by striking paragraphs (1) through (3) and 
inserting the following:
            ``(1) $40,370,000 for fiscal year 2010;
            ``(2) $47,518,000 for fiscal year 2011;
            ``(3) $40,834,000 for fiscal year 2012;
            ``(4) $44,315,000 for fiscal year 2013; and
            ``(5) $47,971,000 for fiscal year 2014.''.

SEC. 102. BOARD MEMBERS.

    (a) Membership.--Section 701(b) is amended--
            (1) by striking ``3 members,'' in paragraph (1) and 
        inserting ``5 members,'';
            (2) by striking ``2 members'' in paragraph (1) and 
        inserting ``3 members''; and
            (3) by striking paragraph (2) and inserting the following:
    ``(2) At any given time, at least 3 members of the Board shall be 
individuals with professional standing and demonstrated knowledge in 
the fields of transportation, transportation regulation, or economic 
regulation, and at least 2 members shall be individuals with 
professional or business experience (including agriculture or other 
rail customers) in the private sector.''.
    (b) Repeal of Holdover Limitation.--Section 701(b) is amended by 
striking ``qualified, but for a period not to exceed one year.'' in 
paragraph (3) and inserting ``qualified.''.
    (c) Repeal of Obsolete Provision.--Section 701(b) is amended--
            (1) by striking paragraph (4) and redesignating paragraphs 
        (5), (6), and (7) as paragraphs (4), (5), and (6), 
        respectively; and
            (2) by striking ``In the case of an individual who becomes 
        a member of the Board pursuant to paragraph (4), or an 
        individual'' in paragraph (4), as redesignated, and inserting 
        ``An individual''.

SEC. 103. ESTABLISHMENT OF BOARD AS INDEPENDENT AGENCY.

    (a) In General.--Section 701(a) is amended to read as follows:
    ``(a) Establishment of Board.--The Surface Transportation Board is 
an independent establishment of the United States Government.''.
    (b) Conforming Amendments.--
            (1) Administrative provisions.--Section 703 is amended--
                    (A) by striking subsections (a), (c), (f), and (g);
                    (B) by redesignating subsections (b), (d), and (e) 
                as subsections (a), (b), and (c), respectively; and
            (C) by adding at the end thereof the following:
    ``(d) Submissions and Transmittals.--Whenever the Board submits or 
transmits any budget estimate, budget request, supplemental budget 
estimate, or other budget information, legislative recommendation, 
prepared testimony for congressional hearings, or comment on 
legislation to the President or to the Office of Management and Budget, 
it shall concurrently transmit a copy thereof to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure. No 
officer or agency of the United States shall have any authority to 
require the Board to submit its budget requests or estimates, 
legislative recommendations, prepared testimony for congressional 
hearings, or comments on legislation to any officer or agency of the 
United States for approval, comments, or review, prior to the 
submission of such recommendations, testimony, or comments to the 
Congress.''.
            (2) Administrative support.--
                    (A) Subchapter II of chapter 7 is amended by 
                striking section 725.
                    (B) The table of contents for chapter 7 is amended 
                by striking the item relating to section 725.

SEC. 104. FILING FEES FOR CERTAIN CASES.

    (a) In General.--Subchapter II of chapter 7, as amended by section 
103(b)(2)(A) of this Act, is amended by inserting after section 724 the 
following:
``725.Filing fees
    ``The Board may not require a party to pay a filing fee to bring a 
formal complaint before the Board that is greater than the fee provided 
by section 1914 of title 28 for bringing a civil action in a district 
court of the United States.''.
    (b) Conforming Amendment.--The table of contents for chapter 7 is 
amended by inserting after the item relating to section 724 the 
following:

``725. Filing fees''.

SEC. 105. REPEAL OF EXPIRED AND OBSOLETE PROVISIONS.

    (a) Contract Limitation.--Section 10709 is amended by striking 
subsection (h).
    (b) Agent in D.C.--
            (1) Section 723 is amended--
                    (A) by striking ``in the District of Columbia,'' in 
                subsection (a); and
                    (B) by striking ``in the District of Columbia'' in 
                subsection (c).
            (2) Section 724(a) is amended by striking ``in the District 
        of Columbia'' each place it appears.

SEC. 106. DEPARTMENT OF TRANSPORTATION INSPECTOR GENERAL AUTHORITY.

    (a) In General.--Subchapter II of chapter 7 is amended--
            (1) by redesignating section 727 as section 728; and
            (2) by inserting after section 726 the following:
``727. Authority of the Inspector General
    ``(a) In General.--The Inspector General of the Department of 
Transportation, in accordance with the mission of the Inspector General 
to prevent and detect fraud and abuse, shall have authority to review 
only the financial management, property management, and business 
operations of the Surface Transportation Board, including internal 
accounting and administrative control systems, to determine compliance 
with applicable Federal laws, rules, and regulations.
    ``(b) Duties.--In carrying out this section, the Inspector General 
shall--
            ``(1) keep the Chairman of the Board and the Senate 
        Committee on Commerce, Science, and Transportation and the 
        House of Representatives Committee on Transportation and 
        Infrastructure fully and currently informed about problems 
        relating to administration of the internal accounting and 
        administrative control systems of the Board;
            ``(2) issue findings and recommendations for actions to 
        address such problems; and
            ``(3) report periodically to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        on any progress made in implementing actions to address such 
        problems.
    ``(c) Access to Information.--In carrying out this section, the 
Inspector General may exercise authorities granted to the Inspector 
General under subsections (a) and (b) of section 6 of the Inspector 
General Act of 1978 (5 U.S.C. App.).
    ``(d) Authorizations of Appropriations.--
            ``(1) Funding.--There are authorized to be appropriated to 
        the Secretary of Transportation for use by the Inspector 
        General of the Department of Transportation such sums as may be 
        necessary to cover expenses associated with activities pursuant 
        to the authority exercised under this section.
            ``(2) Reimbursable agreement.--In the absence of an 
        appropriation under this subsection for an expense referred to 
        in paragraph (1), the Inspector General and the Board shall 
        have a reimbursable agreement to cover such expense.''.
    (b) Conforming Amendment.--The table of contents for chapter 7 is 
amended by striking the item relating to section 701 and inserting the 
following:

``727. Authority of the Inspector General
``728. Definitions''.

SEC. 107. RAILROAD-SHIPPER TRANSPORTATION ADVISORY COUNCIL.

    Section 726 is amended--
            (1) by striking ``and'' after the semicolon in subsection 
        (a)(2)(A);
            (2) by striking ``railroads.'' in subsection (a)(2)(B) and 
        inserting ``railroads; and'';
            (3) by adding at the end of subsection (a)(2) the 
        following:
                    ``(C) the ninth voting member shall be a member-at-
                large, and may be a representative of rail labor, a 
                State or local transportation agency, an academic 
                institution, or other relevant entity selected by the 
                Chairman.'';
            (4) by striking the second sentence of subsection (a)(4); 
        and
            (5) by striking the first sentence of subsection (f)(4) and 
        inserting ``The Council shall prepare an annual report 
        concerning its activities and the results of Council efforts to 
        resolve railroad and shipper issues and shall include in the 
        report at least one recommendation to the Board stemming from 
        the Council's activities and any proposal regarding regulations 
        or legislation it considers appropriate.''.

                    TITLE II--AUTHORITY IMPROVEMENTS

SEC. 201. RAIL TRANSPORTATION POLICY UPDATE.

    Section 10101 is amended to read as follows:
``10101. Rail transportation policy
    ``In regulating the railroad industry, it is the policy of the 
United States Government to balance the following objectives:
            ``(1) To promote a safe and efficient rail transportation 
        system.
            ``(2) To allow, to the maximum extent possible, competition 
        and the demand for services to establish reasonable rates for 
        transportation by rail.
            ``(3) To protect rail shippers and to maintain reasonable 
        rates where there is an absence of effective competition and 
        where rail rates provide revenues that exceed the amount 
        necessary to maintain and expand the rail system and to attract 
        capital.
            ``(4) To foster the continuation and expansion of a sound 
        rail transportation system while also preserving effective 
        competition among rail carriers and with other modes to meet 
        the needs of the public and National defense.
            ``(5) To ensure that rail carriers can earn adequate 
        revenues to provide and sustain consistent, efficient, and 
        reliable transportation services and to maintain and expand 
        rail infrastructure, equipment, and technology.
            ``(6) To prohibit predatory pricing and practices, avoid 
        undue concentrations of market power, and to prohibit unlawful 
        discrimination.
            ``(7) To provide fair and expeditious regulatory decisions 
        and ensure that the regulatory process is accessible and cost-
        effective for all affected parties.
            ``(8) To advance the environmental and energy efficiency 
        advantages of rail transportation and encourage energy 
        conservation and environmentally-responsible practices among 
        rail carriers.
            ``(9) To foster intercity and commuter rail passenger 
        service.
            ``(10) To encourage fair wages and safe and suitable 
        working conditions in the railroad industry.''.

SEC. 202. OFFICE OF PUBLIC ASSISTANCE, GOVERNMENTAL AFFAIRS, AND 
              COMPLIANCE.

    (a) In General.--Subchapter II of chapter 7, as amended by section 
106 of this Act, is further amended--
            (1) redesignating section 728 (as redesignated by section 
        106 of this Act) as section 729; and
            (2) by inserting after section 727 the following:
``728.Office of Public Assistance, Governmental Affairs, and 
              Compliance
    ``(a) In General.--The Board shall maintain an Office of Public 
Assistance, Governmental Affairs, and Compliance with authority over 
public assistance and outreach, governmental affairs, and compliance. 
The Office shall--
            ``(1) mediate disputes between affected parties;
            ``(2) monitor rail carrier operations subject to the 
        Board's jurisdiction to ensure that such operations are in 
        compliance with each rail carrier's statutory and regulatory 
        responsibilities;
            ``(3) act as the Board's point of contact with government, 
        public and private parties;
            ``(4) facilitate communication among stakeholders subject 
        to the Board's jurisdiction; and
            ``(5) carry out other duties and powers prescribed by the 
        Board.
    ``(b) Customer Advocate.--The Board shall appoint a rail customer 
advocate who shall report directly to the Board. The rail customer 
advocate--
            ``(1) shall review or investigate rail customer inquiries 
        and complaints;
            ``(2) shall serve as a technical advisor to a rail customer 
        in any appropriate proceeding of the Board;
            ``(3) shall advise the Board in certain matters, as 
        appropriate;
            ``(4) shall review information regarding the cost and 
        efficiency of rail transportation;
            ``(5) shall carry out other duties and powers prescribed by 
        the Board; and
            ``(6) may participate as a party in a proceeding of the 
        Board, as appropriate.
    ``(c) Ombudsman.--The Board may designate an employee of the Board 
to serve as an ombudsman of the Board in regional or local matters of 
Board interest, including matters related to railroad service, mergers 
and acquisitions, or any other matter designated by the Board.''.
    (b) Conforming Amendment.--The table of contents for chapter 7, as 
amended by section 106 of this Act, is amended by striking the item 
relating to section 728 and inserting the following:

``728.Office of Public Assistance, Governmental Affairs, and Compliance
``729. Definitions''.

SEC. 203. INVESTIGATIVE AUTHORITY.

    (a) Authority To Initiate Investigation.--Section 11701(a) is 
amended by striking ``only on complaint.'' and inserting ``on the 
Board's own initiative or on complaint.''.
    (b) Rate Proceedings.--Section 10704(b) is amended by striking the 
first sentence and inserting ``The Board may begin a proceeding under 
subsection (a)(1) on its own initiative or upon complaint, except that 
a proceeding to determine the reasonableness of the level of a rate 
charged by a carrier may only be initiated upon complaint.''.

SEC. 204. COMPILATION OF COMPLAINTS.

    (a) In General.--Section 704 is amended--
            (1) by striking the section heading and inserting the 
        following:
``704. Reports '';
            (2) by inserting ``(a) Annual Report.--'' before ``The 
        Board''; and
            (3) by adding at the end the following:
    ``(b) Complaints.--
            ``(1) The Board shall establish and maintain a database of 
        complaints received by the Board.
            ``(2) The Board shall post a quarterly report of formal and 
        informal service complaints received by the Board during the 
        previous quarter that shall include--
                    ``(A) a list of the type of each complaint;
                    ``(B) the geographic region of the complaint; and
                    ``(C) the resolution of the complaint, if 
                appropriate.
            ``(3) The quarterly report may identify a complainant that 
        submitted an informal complaint only upon the written consent 
        of the complainant.
            ``(4) The report shall be posted on the Board's public 
        website.''.
    (b) Conforming Amendment.--The table of contents for chapter 7 is 
amended by striking the item relating to section 704 and inserting the 
following:

``704. Reports''.

SEC. 205. EXEMPT TRAFFIC.

    (a) In General.--Section 10502 is amended--
            (1) by striking ``the Board, to the maximum extent 
        consistent with this part, shall'' in subsection (a) and 
        inserting ``the Board shall''; and
            (2) by striking ``title.'' in subsection (d) and inserting 
        ``title or to protect shippers from the abuse of market 
        power.''.
    (b) Current Class Exemptions.--Within 2 years after the date of 
enactment of this Act, the Surface Transportation Board shall conclude 
a study of class exemptions in effect on the date of enactment of this 
Act to determine whether any exemptions should be revoked pursuant to 
section 10502(d) of title 49, United States Code. In conducting the 
study, the Board shall provide public notice and opportunity for 
comment and conduct 1 or more public hearings. Upon completion of the 
study, the Board shall--
            (1) revise any such exemptions as necessary on the basis of 
        the Board's findings and conclusions from the study; and
            (2) establish a process for the periodic review, and 
        revision as necessary, of class exemptions.

SEC. 206. RAILROAD SERVICE METRICS AND PERFORMANCE DATA.

    (a) Reporting Requirements.--Within 2 years after the date of 
enactment of this Act, the Surface Transportation Board shall require 
Class I railroad carriers and other railroad carriers, as appropriate, 
to regularly report railroad service metrics and other performance data 
as prescribed by the Board. The metrics and data may include 
transportation cycle times and transit times and variations in such 
times, average train speed, and terminal dwell time by type of traffic 
and by geographic area and other metrics, as determined by the Board.
    (b) Confidentiality.--The Board shall ensure that metrics and other 
performance data submitted pursuant to this section and deemed 
confidential by the Board are appropriately protected.

SEC. 207. UNIFORM RAILROAD COSTING SYSTEM.

    (a) Study.--Within 180 days after the date of enactment of this 
Act, the Surface Transportation Board shall initiate a proceeding to 
examine the Uniform Railroad Costing System. The examination shall 
consider matters deemed appropriate by the Board.
    (b) Update.--Within 3 years after the date of enactment of this 
Act, the Board shall update, revise, or replace the System and any 
related reporting of financial and operating information by rail 
carriers as deemed appropriate by the Board based on the examination 
required by subsection (a).
    (c) Interim Report.--Within 18 months after the date of enactment 
of this Act, the Board shall submit an interim report on its progress 
on the proceeding to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure.
    (d) Movement-specific Adjustments.--Until the Board updates, 
revises, or replaces the system pursuant to subsection (b), or 
thereafter at the discretion of the Board, parties may make reasonable 
movement-specific adjustments to the variable costs calculated by the 
System in full stand-alone cost rate challenges.
    (e) Material Change Adjustments.--If the System is materially 
changed pursuant to subsection (b), the Board shall develop a one-time 
adjustment factor to be used to adjust the variable costs in rate 
prescriptions determined under the changed procedures to equal those 
that would have been obtained under the prior procedures, and will 
apply this adjustment factor, upon request, in rate prescriptions that 
are in effect as of the date of enactment of this Act.

SEC. 208. REPLACEMENT COST STUDY.

    (a) Study.--Within 180 days after the date of enactment of this 
Act, the Surface Transportation Board shall initiate a study to review 
the use of a replacement cost approach to value the assets of rail 
facilities. The review shall include matters deemed appropriate by the 
Board, but shall include, at a minimum, consideration of the 
feasibility, effectiveness, and appropriateness of using a replacement 
cost approach in Board proceedings where replacement costs may be 
relevant. In conducting the study, the Board shall provide public 
notice and opportunity for comment and conduct 1 or more public 
hearings. The Board shall complete the study within 2 years after its 
initiation.
    (b) Report to Congress.--Within 180 days after completion of the 
study, the Board shall provide a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure on its findings.

SEC. 209. RAIL PRACTICES STUDY.

    (a) Study.--Within 180 days after the date of enactment of this 
Act, the Surface Transportation Board shall initiate a study of rail 
practices, including switching, surcharges, penalties, demurrage, and 
accessorial charges. In conducting the study, the Board shall provide 
public notice and opportunity for comment and conduct 1 or more public 
hearings.
    (b) Report to Congress.--Within 180 days after completion of the 
study, the Board shall provide a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure on its findings.

SEC. 210. RAIL CAR INTERCHANGE STUDY.

    (a) Study.--Within 180 days after the date of enactment of this 
Act, the Surface Transportation Board shall initiate a study of rail 
interchange rules, including car service, interchange, and other 
operating rules adopted and administered by the Association of American 
Railroads and the effect of those rules on the national rail system. In 
conducting the study, the Board shall provide public notice and 
opportunity for comment and conduct one or more public hearings.
    (b) Report to Congress.--Within 180 days after completion of the 
study, the Board shall provide a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure on its findings.

SEC. 211. OFFERS OF FINANCIAL ASSISTANCE.

    Section 10904 is amended--
            (1) by striking so much of subsection (d) as precedes 
        paragraph (2) and inserting the following:
    ``(d)(1) Unless the Board, within 15 days after the expiration of 
the 4-month period described in subsection (c), finds that one or more 
financially responsible persons (including a governmental authority) 
have offered financial assistance and established a reasonable 
likelihood of freight rail service, public transportation, or intercity 
rail passenger transportation over that part of the railroad line to be 
abandoned or over which all rail transportation is to be discontinued, 
abandonment or discontinuance may be carried out in accordance with 
section 10903.''; and
            (2) by striking ``30 days'' in subsection (f)(1)(A) and 
        inserting ``60 days''.

SEC. 212. ADVERSE ABANDONMENTS.

    Section 10903 is amended--
            (1) by striking so much of subsection (a) as precedes 
        paragraph (2) and inserting the following:
    ``(a)(1) An application relating to the abandonment of or 
discontinuance of operation of all rail transportation over any part of 
a railroad line shall be filed with the Board. An abandonment or 
discontinuance may be carried out only as authorized under this 
chapter.'';
            (2) by striking ``When a rail carrier providing 
        transportation subject to the jurisdiction of the Board under 
        this part files an application, the application'' in subsection 
        (a) (2) and inserting ``An application filed under this 
        section'';
            (3) by striking ``rail carrier's'' in subsection (a)(2)(A);
            (4) by striking ``(C)(i)'' in subsection (a)(2)(C) and 
        inserting ``(C) if filed by a rail carrier, (i)''; and
            (5) by striking ``The rail carrier shall--'' in subsection 
        (a)(3) and inserting ``The applicant shall--''.

SEC. 213. EMERGENCY SERVICE ORDERS.

    Section 11123(c)(1) is amended by striking the second sentence and 
inserting ``Action by the Board under subsection (a) of this section 
may be extended in 90-day increments until the Board finds that the 
emergency has ended.''.

SEC. 214. RATE AGREEMENTS.

    (a) In General.--Section 10706 is amended to read as follows:
``10706. Rate agreements
    ``(a) In General.--In any proceeding in which it is alleged that a 
carrier was a party to an agreement, conspiracy, or combination in 
violation of the Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 
U.S.C. 12 et seq.), sections 73 and 74 of the Wilson Tariff Act (15 
U.S.C. 8 and 9), or the Act of June 19, 1936 (15 U.S.C. 13, 13a, 13b, 
21a) or of any similar State law, proof of an agreement, conspiracy, or 
combination may not be inferred from evidence that two or more rail 
carriers acted together with respect to an interline rate or related 
matter and that a party to such action took similar action with respect 
to a rate or related matter on another route or traffic.
    ``(b) Inadmissible Evidence.--In any proceeding in which such a 
violation is alleged, evidence of a discussion or agreement between or 
among such rail carrier and one or more other rail carriers, or of any 
rate or other action resulting from such discussion or agreement, shall 
not be admissible if the discussion or agreement concerned an interline 
movement of the rail carrier, and the discussion or agreement would 
not, considered by itself, violate the laws referred to in subsection 
(a).
    ``(c) Determination by Court.--In any such proceeding before a 
jury, the court shall determine whether the requirements of subsection 
(b) are satisfied before allowing the introduction of any such 
evidence.''.
    (b) Conforming Amendment.--The table of contents for chapter 107 is 
amended by striking the item relating to section 10706 and inserting 
the following:

``10706. Rate agreements''.

SEC. 215. MISCELLANEOUS PROVISIONS.

    (a) Simplified Procedure.--Section 10701(d)(3) is amended to read 
as follows:
    ``(3) The Board shall maintain a simplified and expedited method 
for determining the reasonableness of challenged rates in those cases 
in which a full stand-alone cost presentation is too costly, given the 
value of the case.''.
    (b) Expeditious Handling.--Section 10704(d) is amended by striking 
the first sentence and inserting ``The Board shall maintain procedures 
to ensure expeditious handling of challenges to the reasonableness of 
railroad rates.''.

                      TITLE III--REGULATORY REFORM

SEC. 301. PAPER BARRIERS.

    (a) Interchange Commitment Defined.--Section 10102 is amended--
            (1) by redesignating paragraphs (4) through (10) as 
        paragraphs (5) through (11), respectively; and
            (2) by inserting after paragraph (3) the following:
            ``(4) `interchange commitment' means a contractual 
        agreement between two or more rail carriers subject to the 
        jurisdiction of the Board reached as part of a sale or lease of 
        a rail line for which the approval of the Board is required 
        under chapter 109 or 113 of this part, which limits the 
        incentive or the ability of the purchaser or tenant rail 
        carrier to interchange traffic with a rail carrier other than 
        the seller or lessor rail carrier;''.
    (b) Authorizing an Acquisition or Operation Transaction.--
            (1) Section 10901(c) is amended by adding at the end 
        thereof ``The Board may not issue a certificate authorizing an 
        acquisition or operation transaction under subsection (a)(4) 
        that includes interchange commitments or other mechanisms 
        restricting the purchaser's or tenant's ability to interchange 
        with any other carrier unless such commitments or mechanisms 
        are reasonable and in the public interest.''.
            (2) Section 10902(c) is amended by adding at the end 
        thereof ``The Board may not issue a certificate authorizing an 
        acquisition or operation transaction under this section that 
        includes interchange commitments or other mechanisms 
        restricting the purchaser's or tenant's ability to interchange 
        with any other carrier unless such commitments or mechanisms 
        are reasonable and in the public interest.''.
            (3) Section 11323 is amended by adding at the end thereof 
        the following:
    ``(d) The Board may not authorize an acquisition or operation 
transaction under this section that includes interchange commitments or 
other mechanisms restricting the purchaser's or tenant's ability to 
interchange with any other carrier unless such commitments or 
mechanisms are reasonable and in the public interest.''.
    (c) Rights and Remedies for Interchange Commitments.--Chapter 117 
is amended by adding at end thereof the following:
``11708. Interchange commitments: rights and remedies
    ``(a) In General.--The Board shall maintain a process to allow 
affected persons to challenge existing interchange commitments as 
contrary to other provisions of this part. The Attorney General and the 
Secretary of Transportation may participate in such proceedings.
    ``(b) Access to Interchange Commitments.--After the filing of a 
complaint or petition, the Board shall provide affected persons access, 
upon request, to existing and proposed interchange commitments, subject 
to conditions protecting the confidentiality of those agreements.
    ``(c) Redress Authority.--The Board shall take appropriate action 
to address any conflict between an interchange commitment and the 
provisions of this part.
    ``(d) Purchase Authority.--
            ``(1) In general.--Except as provided in paragraph (5), if 
        the Board finds that--
                    ``(A) an interchange commitment is found to be in 
                violation of this part, and
                    ``(B) the purchaser or tenant rail carrier and the 
                seller or lessor rail carrier cannot bring the 
                interchange commitment into compliance with this part 
                within a reasonable period of time,
        the Board may require, upon application by the purchaser or 
        tenant rail carrier, the elimination of the interchange 
        commitment at a price paid by the purchaser or tenant rail 
        carrier not less than the terms established under paragraph 
        (2).
            ``(2) Terms.--In the case of an interchange commitment 
        subject to elimination under paragraph (1), the Board shall 
        determine the fair market value of an interchange commitment by 
        considering--
                     ``(A) any credits, payments, expenses, or other 
                income paid and due from the interchange commitment to 
                the seller or lessor rail carrier;
                    ``(B) reasonable financial hardships of the 
                purchaser or tenant rail carrier due to unreasonable 
                terms, if any, of the interchange agreement; and
                     ``(C) other relevant factors as determined by the 
                Board.
            ``(3) Employee protection.--The Board shall require 
        protections consistent with the requirements of section 
        11326(a) for rail labor employees who are affected by an action 
        under this subsection.
            ``(4) Purchaser preconditions.--Any purchaser or tenant 
        rail carrier that buys out an interchange commitment under this 
        subsection may determine preconditions, such as payment of a 
        subsidy, which must be met by shippers in order to obtain 
        service over such lines, but such rail carrier must notify the 
        shippers on the line of its intention to impose such 
        preconditions.
            ``(5) Exception.--If the Board requires the elimination of 
        an interchange commitment under paragraph (1), and the 
        purchaser or tenant rail carrier or the seller or lessor rail 
        carrier demonstrates that the sale or lease agreement 
        containing the interchange commitment contains a provision 
        governing the manner in which the agreement may be terminated, 
        the Board shall permit the agreement to be terminated in 
        accordance with that provision.
            ``(6) Definitions.--In this subsection:
                    ``(A) Purchaser or tenant rail carrier.--The term 
                `purchaser or tenant rail carrier' means a Class II or 
                Class III rail carrier that purchases or leases a rail 
                line that is subject to terms of an interchange 
                commitment.
                    ``(B) Seller or lessor rail carrier.--The term 
                `seller or lessor rail carrier' means a Class I rail 
                carrier that leased or sold a rail line subject to 
                terms of an interchange commitment.
    ``(e) Deadline for completion of proceeding.--The Board shall 
complete any proceeding under this section within 180 days after the 
close of the administrative record.''.
    (d) Railroad Rehabilitation and Improvement Financing.--
            (1) Section 502(b)(1) of the Railroad Revitalization and 
        Regulatory Reform Act of 1976 (45 U.S.C. 822(b)(1)) is 
        amended--
                    (A) by striking ``or'' after the semicolon in 
                subparagraph (B);
                    (B) by striking ``facilities.'' in subparagraph (C) 
                and inserting ``facilities; or''; and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) provide financial assistance to purchase or 
                lease a rail line subject to terms established by the 
                Surface Transportation Board under section 11708(d) of 
                title 49, United States Code.''.
            (2) Section 502 of that Act (45 U.S.C. 822) is amended--
                    (A) by adding at the end of subsection (e) the 
                following:
            ``(3) Interest rate reduction.--Subject to the availability 
        of funds authorized by subsection (k), the Secretary may reduce 
        the interest to be paid on direct loans provided to a Class II 
        or Class III rail carrier for the purpose of subsection 
        (b)(1)(D).'';
                    (B) in subsection (f)(1)--
                            (i) by inserting ``or private insurance, 
                        including bond insurance,'' after ``in part 
                        credit risk''; and
                            (ii) by inserting ``or insurance, including 
                        bond insurance,'' after ``authority and credit 
                        risk'';
                    (C) by striking ``amounts.'' in subsection (f)(3) 
                and inserting ``amounts or, at the discretion of the 
                Secretary, in a series of payments over the term of the 
                loan. If insurance, including bond insurance, is used, 
                the policy premium shall be paid before the loan is 
                disbursed.''; and
                    (D) by adding at the end the following:
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for purposes of carrying out subsection 
(e)(3) such funds as may be necessary for fiscal years 2010 through 
2014.''.
    (e) Interchange Commitment Relief Grants.--Chapter 201 is amended 
by adding at end thereof the following:
``20168. Interchange commitment relief grants
    ``(a) In General.--Upon application, the Secretary of 
Transportation, in consultation with the Surface Transportation Board, 
may make grants available to assist any Class III rail carrier 
providing transportation subject to the jurisdiction of the Surface 
Transportation Board with the credit risk premium of a direct loan or 
loan guarantee made for the purposes of section 502(b)(1)(D) of the 
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
822(b)(1)(D)).
    ``(b) Limitations.--The Secretary of Transportation--
            ``(1) shall award grants only to applicants with financial 
        need; and
            ``(2) may approve a grant under this section only as part 
        of an application for a Railroad Rehabilitation and Improvement 
        Financing loan or loan guarantee.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation for grants under this 
section $7,500,000 for fiscal years 2010 through 2014.''.
    (f) Conforming Amendments.--
            (1) The table of contents for chapter 117 is amended by 
        inserting after the item relating to section 11707 the 
        following:

``11708. Interchange commitments: rights and remedies''.
            (2) The table of contents for chapter 201 is amended by 
        inserting after the item relating to section 20167 the 
        following:

``20168. Interchange commitment relief grants''.

SEC. 302. BOTTLENECK AND TERMINAL SWITCHING RATES.

    (a) In General.--Subchapter I of chapter 107 is amended by adding 
at the end thereof the following:
``10710. Bottleneck and terminal switching rates
    ``(a) A Class I rail carrier, or other rail carrier as deemed 
appropriate by the Board, that provides a rate for transportation 
between an origin and destination either as a single line movement or 
as part of an interline movement and over which the carrier has market 
dominance pursuant to section 10707 shall, upon the reasonable request 
of a rail customer, establish a bottleneck rate for the purpose of 
providing transportation over a bottleneck segment located between such 
an origin and destination pursuant to this section. If the rail carrier 
contends that the transportation is not subject to market dominance 
under that section, the rail carrier shall seek an expedited 
determination of that issue from the Board.
    ``(b) Such a carrier shall establish such a rate and provide 
service upon such request without regard to whether the shipper has 
made arrangements for transportation for any other part of that 
movement.
    ``(c)(1) If the Board determines, under section 10707 of this 
title, that such a rail carrier has market dominance between the origin 
and destination, the bottleneck rate established for transportation 
pursuant to this section must be reasonable.
    ``(2)(A) Not later than one year after the date of enactment of the 
Surface Transportation Board Reauthorization Act of 2009, the Board 
shall establish and maintain standards for determining whether a 
bottleneck rate established by a rail carrier is reasonable for 
purposes of this section and establish a simplified and expedited 
method for determining the reasonableness of challenged bottleneck 
rates. In developing those standards the Board shall consider rail 
carriers' need to earn adequate revenues to provide and sustain 
consistent, efficient, and reliable transportation services and to 
maintain the national rail system.
    ``(B) In developing the standards, the Board shall include, as part 
of a reasonable rate-- -
            ``(i) operating costs, including any additional labor 
        costs, of providing the requested transportation service over 
        the bottleneck segment;
            ``(ii) maintenance costs associated with providing the 
        requested transportation service;
            ``(iii) additional capital and investment costs required to 
        perform the requested transportation service over the 
        bottleneck segment;
            ``(iv) a reasonable return on embedded capital used for the 
        requested transportation service over the bottleneck segment 
        sufficient to meet the rail carrier's cost of capital or, if 
        such cost is not available, the rail industry cost of capital;
            ``(v) a reasonable contribution, to the extent appropriate, 
        to that carrier's network infrastructure costs of the non-
        bottleneck segment of the route offered by the incumbent rail 
        carrier that is sufficient, along with other traffic on the 
        segment, to maintain the non-bottleneck segment; and
            ``(vi) any other contributing factors appropriate to meet 
        the consideration in subparagraph (A).
    ``(d) In any proceeding in which a rail customer challenges a 
bottleneck rate established under this section as unreasonable, the 
burden of proof that the rate is reasonable shall be on the rail 
carrier.
    ``(e) In this section:
            ``(1) The term `bottleneck rate' means a rate for 
        transportation over a bottleneck segment.
            ``(2) The term `bottleneck segment' means the rail 
        facilities, including rail facilities located entirely in 
        terminal areas, between an origin on the carrier's system and 
        an interchange or between a destination on the carrier's system 
        and an interchange.
            ``(3) The term `interchange' means an interchange on such a 
        rail carrier's system that exists on the date of the shipper's 
        request for a rate covered by this section that--
                    ``(A) is practicable and would not significantly 
                adversely affect such rail carrier's network 
                efficiency; and
                    ``(B) would not significantly impair service to 
                other customers of such rail carrier.''.
    (b) Conforming Amendments.--
            (1) The table of contents for chapter 107 is amended by 
        inserting after the item relating to section 10709 the 
        following:

``10710. Bottleneck and terminal switching rates''.
            (2) Section 10705(a)(2)(A) is amended by inserting 
        ``10710,'' after ``under section''.

SEC. 303. TERMINAL ACCESS.

    Section 11102 is amended to read as follows:
``11102. Use of terminal facilities
    ``(a) For a Class I rail carrier, or other rail carrier as deemed 
appropriate by the Board, providing transportation over which the rail 
carrier has market dominance pursuant to section 10707 in a terminal 
area, the Board may require the rail carrier to make its terminal 
facilities, including mainline tracks for a reasonable distance outside 
of that terminal, available for use by another rail carrier for such 
transporation.
    ``(b) The Board may only require that a rail carrier take such 
action under subsection (a) if the Board finds that such action--
            ``(1) would be practicable and would not significantly 
        adversely affect the operations of the terminal or facility 
        owned by such rail carrier or rail carriers otherwise entitled 
        to use the terminal or facilities;
            ``(2) would not significantly adversely affect the network 
        efficiency of such rail carrier or rail carriers otherwise 
        entitled to use the terminal or facilities;
            ``(3) would not significantly impair service to other 
        customers of such rail carrier or other rail carriers entitled 
        to use the terminal or facilities;
            ``(4) is necessary to promote the efficient operation of 
        the railroad system and improve rail service; and
            ``(5) is in the public interest.
    ``(c) The rail carriers required to make facilities available or 
provide service pursuant to subsection (a) are responsible for 
establishing reasonable conditions and compensation for the use of the 
facilities. The compensation shall be paid or adequately secured before 
a rail carrier may begin to use the facilities of another rail carrier.
    ``(d)(1) Not later than one year after the date of enactment of the 
Surface Transportation Board Reauthorization Act of 2009, the Board 
shall establish and maintain standards for determining whether 
compensation is reasonable for purposes of this section and establish a 
simplified and expedited method for determining the reasonableness of 
challenged compensation rates.
    ``(2) In developing such standards, the Board shall consider rail 
carriers' need to earn adequate revenues to provide and sustain 
consistent, efficient, and reliable transportation services and to 
maintain the national rail system.
    ``(e) In developing the standards required by subsection (d), the 
Board shall include, as part of a reasonable compensation-- -
            ``(1) operating costs, including any additional labor 
        costs, of providing the requested usage;
            ``(2) maintenance costs associated with providing the 
        requested usage;
            ``(3) additional capital and investment costs required to 
        perform the requested usage;
            ``(4) a reasonable return on embedded capital employed for 
        the requested usage of terminal facilities sufficient to meet 
        the rail carrier's cost of capital or, if such cost is not 
        available, the rail industry cost of capital;
            ``(5) a reasonable contribution, to the extent appropriate, 
        to that carrier's network infrastructure costs of the route 
        beyond the terminal facilities and main line tracks made 
        available for the requested usage, that is sufficient, along 
        with other traffic on the route and mainline track, to maintain 
        the route beyond the terminal facilities and mainline tracks 
        made available for the requested usage; and
            ``(6) any other contributing factors appropriate to meet 
        the considerations in subsection (d)(2).
    ``(g) A rail carrier whose terminal facilities are required to be 
used by another rail carrier under this section is entitled to recover 
compensation from the other rail carrier for damages sustained as the 
result of compliance with the requirement in a civil action.
    ``(h) In any proceeding in which a rail carrier challenges a 
compensation rate established under this section as unreasonable, the 
burden of proof that the rate is reasonable shall be on the rail 
carrier whose terminal facilities are required to be used by the other 
rail carrier.
    ``(i) If the Board requires that a rail carrier take such an action 
under subsection (a), the Board shall provide for the protection of the 
interests of employees affected thereby, consistent with the level of 
protection under section 10902 of this title.
    ``(j) The Board shall complete any proceeding under this section 
within 180 days after the closing of the evidentiary record. The Board 
may extend the deadline in incremental 30-day periods if it issues a 
decision demonstrating why such an extension is necessary.''.

SEC. 304. SERVICE.

    Section 11101 is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) The Board shall, by regulation, require rail carriers to 
publish reasonable common carrier service expectation ranges. These may 
include ranges for normal car cycle times, transit times, switching 
frequency, and other service components as determined by the Board to 
be appropriate.''.

SEC. 305. ARBITRATION OF CERTAIN RAIL RATE, PRACTICE, AND COMMON 
              CARRIER SERVICE EXPECTATION DISPUTES.

    (a) In General.--Chapter 117, as amended by section 301, is further 
amended by adding at the end the following:
``11709. Arbitration of certain rail rate, practice, and common 
              carrier service disputes
    ``(a) In General.--Not later than one year after enactment of the 
Surface Transportation Board Reauthorization Act of 2009, the Board 
shall promulgate regulations to establish a binding arbitration process 
to resolve rail rate, practice, and common carrier service expectation 
complaints subject to the jurisdiction of the Board.
    ``(b) Covered Disputes.--The binding arbitration process--
            ``(1) shall apply to disputes involving rates, practices, 
        and common carrier service expectations subject to the 
        jurisdiction of the Board;
            ``(2) shall not apply to disputes to obtain the grant, 
        denial, stay or revocation of any license, authorization or 
        exemption, to prescribe for the future any conduct, rules, or 
        results of general, industry-wide applicability, or to enforce 
        labor protective conditions; and
            ``(3) shall not apply to disputes solely between 2 or more 
        rail carriers.
    ``(c) Arbitration Procedures.--
            ``(1) The Board--
                    ``(A) may make the binding arbitration process 
                available only to the relevant parties--
                            ``(i) after the filing of a formal 
                        complaint; or
                            ``(ii) upon petition by a party at the 
                        conclusion of any informal dispute resolution 
                        process provided by the Board for a complaint 
                        subject to this section;
                    ``(B) with respect to rate disputes, may make the 
                binding arbitration process available only to the 
                relevant parties if the rail carrier has market 
                dominance, as determined under section 10707 of this 
                title; and
                    ``(C) shall determine whether to pursue the binding 
                arbitration process no later than 30 days after the 
                filing of a petition or formal complaint.
            ``(2) Initiation of the binding arbitration process shall 
        preclude the Board from separately reviewing a complaint or 
        dispute related to the same rate, practice, or common carrier 
        service expectation in a covered dispute involving the same 
        parties.
            ``(3) In resolving disputes involving the reasonableness of 
        a rail carrier's rates, the arbitrator shall consider the 
        Board's methodologies for setting maximum lawful rates, giving 
        due consideration to the need for differential pricing to 
        permit a rail carrier to collect adequate revenues within the 
        meaning of section 10704(a)(2) of this title.
            ``(4) In resolving disputes involving common carrier 
        service expectations, the arbitrator shall consider service 
        expectations as published pursuant to section 11101(f).
    ``(d) Arbitration Decisions.--Any decision reached in an 
arbitration process under this section shall--
            ``(1) be consistent with subtitle IV of this title;
            ``(2) be in writing and shall contain findings of fact and 
        conclusions;
            ``(3) have no precedential effect in any other or 
        subsequent arbitration dispute; and
            ``(4) be binding upon the parties.
    ``(e) Timelines.--
            ``(1) The arbitrator shall be selected within 14 days after 
        the Board's decision to initiate arbitration.
            ``(2) The evidentiary process of the arbitration process 
        shall be completed within 90 days after the date of initiation 
        of the arbitration process, unless a party requests an 
        extension and the arbitrator grants it.
            ``(3) The arbitrator shall issue a decision within 30 days 
        after the close of the evidentiary record.
            ``(4) The Board may extend any of the timelines in this 
        subsection upon the agreement of all parties in the dispute.
    ``(f) Arbitrators.--Arbitration under this section shall be 
conducted by an arbitrator selected from a roster, maintained by the 
Board, of persons with transportation, economic regulation, 
professional or business experience, including agriculture, in the 
private sector. If the parties cannot mutually agree on an arbitrator, 
the parties shall select an arbitrator from the roster by alternately 
striking names from the roster until only 1 name remains. The parties 
shall share the costs of the arbitration equally.
    ``(g) Relief.--
            ``(1) Limitation.--A decision under this section may award 
        the payment of damages or rate prescriptive relief, but the 
        value of the award may not exceed $250,000 per year and the 
        award may not cover a total time period of more than 2 years.
            ``(2) Review.--The board shall periodically review the 
        amount in paragraph (1) and adjust it as necessary to reflect 
        inflation.
    ``(h) Board Review.--If a party appeals an arbitrator's decision to 
the Board, the Board may review the decision under this section to 
determine if--
            ``(1) the decision is consistent with subtitle IV of this 
        title as applied by the Board; or
            ``(2) if the award limitation in subsection (g).''.
    (b) Conforming Amendment.--The table of contents for chapter 117 is 
amended by adding at the end following:

``11709. Arbitration of certain rail rate, practice, and common carrier 
                            service disputes''.

SEC. 306. MAXIMUM RELIEF IN CERTAIN RATE CASES.

    (a) In General.--The Board shall revise the maximum amount of rate 
relief available to railroad shippers in cases brought pursuant to the 
methods developed under section 10701(d)(3) of title 49, United States 
Code, as that section existed as of the date of enactment of this Act, 
to be as follows--
            (1) $1,500,000 in a rate case brought using the Board's 
        ``three-benchmark'' procedure; and
            (2) $10,000,000 in a rate case brought using the Board's 
        ``simplified stand-alone cost'' procedure.
    (b) Periodic Review.--The Board shall periodically review the 
amounts established by subsection (a) and revise them as appropriate.

SEC. 307. ADVANCE RATE CHALLENGE.

    The Surface Transportation Board may consider the reasonableness of 
a rate quoted by a rail carrier up to 1 year before the date on which 
the rate is to take effect.

SEC. 308. RATE REVIEW TIMELINES.

    In stand-alone cost rate challenges, the Surface Transportation 
Board shall comply with the following timelines unless it extends them, 
after a request from any party or in the interest of due process:
            (1) For discovery, 150 days after the date on which the 
        challenge is initiated.
            (2) For development of the evidentiary record, 155 days 
        after that date.
            (3) For submission of parties' closing briefs, 60 days 
        after that date.
            (4) For a final Board decision, 180 days after the date on 
        which the parties submit closing briefs.

SEC. 309. REVENUE ADEQUACY STUDY.

    Within 180 days after the date of enactment of this Act, the 
Surface Transportation Board shall initiate a study to provide further 
guidance on how it will apply its revenue adequacy constraint. In 
conducting the study the Board shall provide public notice and 
opportunity for comment and conduct 1 or more public hearings.

SEC. 310. PUBLIC USAGE OF ABANDONED RAIL PROPERTIES.

    Section 10905 is amended--
            (1) by striking ``other forms of mass transportation,'' and 
        inserting ``public transportation,'';
            (2) by striking ``the properties may be sold,'' and 
        inserting ``the Board may require that the properties be 
        sold,'';
            (3) by striking ``only under conditions'' and inserting 
        ``pursuant to conditions, including the amount of 
        compensation,''; and
            (4) by striking ``The conditions may include a prohibition 
        on any such disposal'' and inserting ``At a minimum, the Board 
        shall prohibit any disposal of such properties''.

SEC. 311. TRANSACTIONS.

    Section 11325 is amended--
            (1) by inserting ``(1)'' after ``(a)'' in subsection (a) 
        and redesignating paragraphs (1) through (3) as subparagraphs 
        (A) through (C);
            (2) by adding at the end of subsection (a) the following:
    ``(2) The Board may extend the time limits specified in subsections 
(b), (c), and (d) of this section when more time is necessary to 
complete the environmental review process.''; and
            (3) by striking ``a transaction other than the merger or 
        control of at least two Class I railroads, as defined by the 
        Board, which the Board has determined to be of regional or 
        national transportation significance,'' in subsection (c) and 
        inserting ``the merger or control of one Class I railroad and 
        at least one Class II railroad, as defined by the Board, or if 
        it involves a merger or control transaction, other than a 
        transaction subject to subsection (b), which the Board has 
        determined to be of regional or national transportation 
        significance,''.

SEC. 312. CONSIDERATIONS IN CONSOLIDATIONS, MERGERS, AND ACQUISITIONS.

    Section 11324 is amended--
            (1) by striking paragraph (5) of subsection (b) and 
        inserting the following:
            ``(5) the effect of the proposed transaction on competition 
        among rail carriers in the affected region or in the national 
        rail system.'';
            (2) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively;
            (3) by striking ``Board,'' in subsection (d) and inserting 
        ``Board, subject to subsection (e)''; and
            (4) by inserting after subsection (d) the following:
    ``(e) In considering whether to approve, deny, or approve with 
conditions a transaction covered under subsections (b) or (d) of this 
section, the Board may take into account any potentially significant 
effects of the transaction on--
            ``(1) public health, safety, and the environment; and
            ``(2) intercity rail passenger transportation and commuter 
        rail passenger transportation, as defined by section 24102 of 
        this title.''.

SEC. 313. RAILROAD DEVELOPMENT.

    Section 10907(h) is amended to read as follows:
    ``(h) If a purchasing carrier under this section proposes to sell 
or abandon all or any portion of a purchased railroad line within 5 
years after the date of sale under this section, such purchasing 
carrier shall offer the right of first refusal with respect to such 
line or portion thereof to the carrier which sold such line under this 
section. The offer shall be made at a price equal to the sum of the 
price paid by such purchasing carrier to such selling carrier for such 
line or portion thereof and the fair market value (less deterioration) 
of any improvements made, as adjusted to reflect inflation.''.

SEC. 314. REGULATORY REFORM REVIEW.

    (a) Review.--The Comptroller General of the United States shall 
undertake a review of the regulatory changes made by this Act. The 
review shall include--
            (1) a review of the Surface Transportation Board's progress 
        in implementing the provisions of this Act;
            (2) an assessment of the impact on the rail transportation 
        system of the regulatory changes made by this Act; and
            (3) a specific analysis of the impact on railroad 
        operations, rates, competition, service, revenues, maintenance, 
        and investment resulting from the implementation of sections 
        11102 and 10710 of title 49, United States Code, as amended and 
        added, respectively, by this Act.
    (b) Consultation.--In conducting this review, the Comptroller 
General shall solicit input from the railroads, railroad shippers, 
railroad non-profit employee labor organizations, the Federal Railroad 
Administration, and other entities, as appropriate.
    (c) Report to Congress.--Not later than December 31, 2013, the 
Comptroller General shall transmit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure containing the results 
of the review required by this section and any appropriate 
recommendations.

                    TITLE IV--TECHNICAL CORRECTIONS.

SEC. 401. TECHNICAL CORRECTIONS TO PUBLIC LAW 110-432.

    (a) The title of Public Law 110-432 is amended by striking 
``Federal Railroad Safety Administration'' and inserting ``Federal 
Railroad Administration''.
    (b) The table of contents in section 1(b) of the Rail Safety 
Improvement Act of 2008 is amended--
            (1) in the item relating to section 201 by striking 
        ``Pedestrian crossing safety'' and inserting ``Pedestrian 
        safety at or near railroad passenger stations''; and
            (2) in the item relating to section 403 by striking ``Track 
        inspection time study'' and inserting ``Study and rulemaking on 
        track inspection time; rulemaking on concrete crossties''.
    (c) Section 2(a)(1) of the Rail Safety Improvement Act of 2008 is 
amended by inserting a comma after ``railroad tracks at grade''.
    (d) Section 102(a)(6) of the Rail Safety Improvement Act of 2008 is 
amended to read as follows:
            ``(6) Improving the safety of railroad bridges, tunnels, 
        and related infrastructure to prevent accidents, incidents, 
        injuries, and fatalities caused by catastrophic and other 
        failures of such infrastructure.''.
    (e) Section 108(f)(1) of the Rail Safety Improvement Act of 2008 is 
amended by striking ``requirements for recordkeeping and reporting for 
Hours of Service of Railroad Employees'' and inserting ``requirements 
for record keeping and reporting for hours of service of railroad 
employees''.
    (f) Section 201 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) in the section heading by striking ``PEDESTRIAN 
        CROSSING SAFETY.'' and inserting ``PEDESTRIAN SAFETY AT OR NEAR 
        RAILROAD PASSENGER STATIONS.'';
            (2) by striking ``strategies and methods to prevent 
        pedestrian accidents, incidents, injuries, and fatalities at or 
        near passenger stations, including--'' and inserting 
        ``strategies and methods to prevent train-related accidents, 
        incidents, injuries, and fatalities that involve a pedestrian 
        at or near a railroad passenger station, including--''; and
            (3) in paragraph (1) by striking ``at railroad passenger 
        stations''.
    (g) Section 206(a) of the Rail Safety Improvement Act of 2008 is 
amended by striking ``Public Service Announcements'' and inserting 
``public service announcements''.
    (h) Section 403 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) in the section heading by striking ``TRACK INSPECTION 
        TIME STUDY.'' and inserting ``STUDY AND RULEMAKING ON TRACK 
        INSPECTION TIME; RULEMAKING ON CONCRETE CROSSTIES.''; and
            (2) in subsection (d)--
                    (A) by striking ``Cross Ties'' in the subsection 
                heading and inserting ``Crossties'';
                    (B) by striking ``cross ties'' and inserting 
                ``crossties''; and
                    (C) in paragraph (2) by striking ``cross tie'' and 
                inserting ``crosstie''.
    (i) Section 405 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) in subsection (a) by striking ``cell phones,'' and 
        inserting ``cellular telephones,''; and
            (2) in subsection (d) by striking ``of Transportation''.
    (j) Section 411(a) of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) by striking ``5101(a)'' and inserting ``5105(a)''; and
            (2) by striking ``5101(b)'' and inserting ``5105(b)''.
    (k) Section 412 of the Rail Safety Improvement Act of 2008 is 
amended by striking ``of Transportation''.
    (l) Section 414 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) in paragraph (2) by striking ``parts'' and inserting 
        ``sections''; and
            (2) by striking ``part 1520.5'' and inserting ``section 
        1520.5''.
    (m) Section 416 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) by striking ``of Transportation'';
            (2) in paragraphs (3) and (4), by striking ``Federal 
        Railroad Administration'' and inserting ``Secretary''; and
            (3) in paragraph (4) by striking ``subsection'' and 
        inserting ``section''.
    (n) Section 417(c) of the Rail Safety Improvement Act of 2008 is 
amended by striking ``each railroad'' and inserting ``each railroad 
carrier''.
    (o) Section 503 of the Rail Safety Improvement Act of 2008 is 
amended--
            (1) in subsection (a) by striking ``rail accidents,'' and 
        inserting ``rail passenger accidents,''; and
            (2) by adding at the end the following:
    ``(d) Definitions.--In this section, the terms `passenger', `rail 
passenger accident', and `rail passenger carrier' have the meaning 
given those terms by section 1139 of title 49, United States Code.
    ``(e) Funding.--Out of funds appropriated pursuant to section 
20117(a)(1)(A) of title 49, United States Code, there shall be made 
available to the Secretary of Transportation $500,000 for fiscal year 
2009 to carry out this section. Amounts made available pursuant to this 
subsection shall remain available until expended.''.
    (p) Section 206(a) of the Passenger Rail Investment and Improvement 
Act of 2008 is amended by inserting ``of this division'' after ``302''.
    (q) Section 211 of the Passenger Rail Investment and Improvement 
Act of 2008 is amended--
            (1) by inserting ``of this division'' after ``101(c)'' in 
        subsection (d); and
            (2) by inserting ``of this division'' after ``101(d)'' in 
        subsection (e).
    (r) Section 1139 is amended--
            (1) in subsection (a)(1) by striking ``phone number'' and 
        inserting ``telephone number'';
            (2) in subsection (a)(2) by striking ``post trauma'' and 
        inserting ``post-trauma'';
            (3) in subsections (h)(1)(A) and (h)(2)(A) by striking 
        ``interstate'';
            (4) in subsections (h)(1)(B) and (h)(2)(B)--
                    (A) by striking ``interstate or intrastate''; and
                    (B) by striking ``26105'' and inserting 
                ``26106(b)(4)'';
            (5) in subsection (j)(1) by striking ``(other than 
        subsection (g))'' and inserting ``(other than subsections (g) 
        and (k))''; and
            (6) in paragraphs (1) and (2) of subsection (j) by striking 
        ``railroad passenger accident'' and inserting ``rail passenger 
        accident''.
    (s) Section 10909(b) is amended by striking ``Railroad'' and 
inserting ``Railroads''.
    (t) Section 20109 is amended--
            (1) by striking ``the railroad shall promptly arrange'' in 
        subsection (c)(1) and inserting ``the railroad carrier shall 
        promptly arrange'';
            (2) by inserting ``subsection'' after ``under'' in 
        subsection (d)(2)(A)(i); and
            (3) by inserting ``section'' after ``set forth in'' in 
        subsection (d)(2)(A)(iii).
    (u) Section 20120(a) is amended--
            (1) in paragraph (2)(G), by inserting ``and'' at the end; 
        and
            (2) in paragraph (5)(B) by striking ``Administrative 
        Hearing Officer or Administrative Law Judge'' and inserting 
        ``administrative hearing officer or administrative law judge''.
    (v) Section 20151(d)(1) is amended by striking ``to drive around a 
grade crossing gate'' and inserting ``to drive through, around, or 
under a grade crossing gate''.
    (w) Section 20152(b) is amended by striking ``rail carriers'' and 
inserting ``railroad carriers''.
    (x) Section 20156 is amended--
            (1) in subsection (c) by inserting a comma after ``In 
        developing its railroad safety risk reduction program''; and
            (2) in subsection (g)(1) by striking ``non-profit'' and 
        inserting ``nonprofit''.
    (y) Section 20157(a)(1) is amended--
            (1) by striking ``Class I railroad carrier'' and inserting 
        ``Class I railroad''; and
            (2) by striking ``parts'' and inserting ``sections''.
    (z) Section 20158(b)(3) is amended by striking ``20156(e)(2)'' and 
inserting ``20156(e)''.
    (aa) Section 20159 is amended by inserting ``of Transportation'' 
after ``the Secretary''.
    (bb) Section 20160 is amended--
            (1) in subsection (a)(1) by striking ``or with respect to'' 
        and inserting ``with respect to''; and
            (2) in subsection (b)(1)(A) by striking ``or with respect 
        to'' and inserting ``with respect to''.
    (cc) Section 20162(a)(3) is amended by striking ``railroad 
compliance with Federal standards'' and inserting ``railroad carrier 
compliance with Federal standards''.
    (dd) Section 20164(a) is amended by striking ``Railroad Safety 
Enhancement Act of 2008,'' and inserting ``Rail Safety Improvement Act 
of 2008,''.
    (ee) Section 21102(c)(4) is amended by re-designating subparagraphs 
(C) and (D) as subparagraphs (B) and (C), respectively.
    (ff) Section 22106(b) is amended by striking ``interest thereof'' 
and inserting ``interest thereon''.
    (gg) Section 24105(e) of title 49, United States Code, is amended 
by striking ``section 301 of the Passenger Rail Investment and 
Improvement Act of 2008'' and inserting ``section 24406''.
    (hh) Section 24302(a)(3) is amended by striking ``5 individuals'' 
and inserting ``4 individuals''.
    (ii) Section 24316 is amended by striking subsection (g).
    (jj) The item relating to section 24316 in the table of contents 
for chapter 243 is amended by striking ``to assist families of 
passengers'' and inserting ``to address needs of families of 
passengers''.
    (kk) Section 24402 is amended--
            (1) by striking ``22506'' in subsection (d) and inserting 
        ``22706'';
            (2) by striking subsection (e) and inserting the following:
    ``(e) Amtrak Eligibility.--Amtrak may be the recipient of a grant 
under this section if Amtrak has entered into a cooperative agreement 
with 1 or more applicants to carry out 1 or more projects on a State 
rail plan's list of rail capital projects developed under section 
22705(a)(5) of this title. For such a grant, Amtrak may not use Federal 
funds authorized under section 101(a) or (c) of the Passenger Rail 
Investment and Improvement Act of 2008 to fulfill the non-Federal share 
requirements under subsection (g) of this section.'';
            (4) by striking ``and Early Systems Work Agreements'' in 
        the heading of subsection (f);
            (5) by striking ``A metropolitan planning organization, 
        State transportation department, or other project sponsor'' in 
        subsection (i)(1) and inserting ``An applicant''; and
            (6) by striking subsection (k) and inserting the following:
    ``(k) Small Capital Projects.--The Secretary shall make not less 
than 5 percent annually available from the amounts appropriated under 
section 24406 beginning in fiscal year 2009 for grants for capital 
projects eligible under this section not exceeding $2,000,000, 
including costs eligible under section 209(d) of the Passenger Rail 
Investment and Improvement Act of 2008. For grants awarded under this 
subsection, the Secretary may waive requirements of this section, 
including State rail plan requirements, as appropriate.''.
    (ll) Section 24403(b)(1) is amended by striking ``oversee the 
construction of such projects.'' and inserting ``for activities to 
award and oversee the implementation of such projects.''.
    (mm) Section 24702(a) is amended by striking ``not included in the 
national rail passenger transportation system''.
    (nn) Section 24706 is amended--
            (1) by striking ``a discontinuance under section 24704 or 
        or'' in subsection (a)(1);
            (2) by striking ``section 24704 or'' in subsection (a)(2); 
        and
            (3) by striking ``section 24704 or'' in subsection (b).
    (oo) Section 24709 is amended by striking ``The Secretary of the 
Treasury and the Attorney General,`` and inserting ``The Secretary of 
Homeland Security,''.
    (pp) Section 24905(f)(1) is amended--
            (1) in subparagraph (C) by striking ``freight carriers'' 
        and inserting ``freight railroad carriers''; and
            (2) in subparagraph (F) by striking ``rail labor;'' and 
        inserting ``representatives of nonprofit employee labor 
        organizations representing railroad employees;''.
    (rr) Section 26106(e)(4) is amended by striking ``22506'' and 
inserting ``22706''.

                         TITLE V--MISCELLANEOUS

SEC. 501. PIPELINE INVESTIGATIVE AUTHORITY.

    Section 15901(a) is amended by striking ``only on complaint.'' and 
inserting ``on the Board's own initiative or on complaint.''.

SEC. 502. CARBON DIOXIDE PIPELINES.

    (a) In General.--Section 15301(a) is amended by striking ``gas, or 
oil.'' and inserting ``oil, or natural or artificial gases that are 
used primarily as a fuel or for other energy purposes.''.
    (b) Pipeline Study.--Not later than 18 months after the date of 
enactment of this Act, the Comptroller General shall submit a study to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and Infrastructure 
that analyzes the Federal and State regulatory framework to support the 
development of pipelines for the purposes of the capture, 
transportation, and sequestration of carbon dioxide. The study shall 
examine the Federal permitting process for new carbon dioxide 
pipelines, the regulatory process for access, siting, eminent domain, 
and rate regulation. In conducting the study, the Comptroller General 
shall consult with the Surface Transportation Board, the Federal Energy 
Regulatory Commission, and other entities as appropriate.

SEC. 503. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this Act 
shall take effect on the date of enactment.
    (b) Section 214.--The amendments made by section 214 shall take 
effect 2 years after the date of enactment of this Act.
                                                       Calendar No. 711

111th CONGRESS

  2d Session

                                S. 2889

_______________________________________________________________________

                                 A BILL

To reauthorize the Surface Transportation Board, and for other purposes

_______________________________________________________________________

                           December 17, 2010

                       Reported with an amendment