[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 808 Enrolled Bill (ENR)]
S.808
One Hundred Fourteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and fifteen
An Act
To establish the Surface Transportation Board as an independent
establishment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Surface
Transportation Board Reauthorization Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. References to title 49, United States Code.
Sec. 3. Establishment of Surface Transportation Board as an independent
establishment.
Sec. 4. Surface Transportation Board membership.
Sec. 5. Nonpublic collaborative discussions.
Sec. 6. Reports.
Sec. 7. Authorization of appropriations.
Sec. 8. Agent in the District of Columbia.
Sec. 9. Department of Transportation Inspector General authority.
Sec. 10. Amendment to table of sections.
Sec. 11. Procedures for rate cases.
Sec. 12. Investigative authority.
Sec. 13. Arbitration of certain rail rates and practices disputes.
Sec. 14. Effect of proposals for rates from multiple origins and
destinations.
Sec. 15. Reports.
Sec. 16. Criteria.
Sec. 17. Construction.
SEC. 2. REFERENCES TO TITLE 49, UNITED STATES CODE.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of title 49, United States
Code.
SEC. 3. ESTABLISHMENT OF SURFACE TRANSPORTATION BOARD AS AN INDEPENDENT
ESTABLISHMENT.
(a) Redesignation of Chapter 7 of Title 49, United States Code.--
Title 49 is amended--
(1) by moving chapter 7 after chapter 11 in subtitle II;
(2) by redesignating chapter 7 as chapter 13;
(3) by redesignating sections 701 through 706 as sections 1301
through 1306, respectively;
(4) by striking sections 725 and 727;
(5) by redesignating sections 721 through 724 as sections 1321
through 1324, respectively; and
(6) by redesignating section 726 as section 1325.
(b) Independent Establishment.--Section 1301, as redesignated by
subsection (a)(3), is amended by striking subsection (a) and inserting
the following:
``(a) Establishment.--The Surface Transportation Board is an
independent establishment of the United States Government.''.
(c) Conforming Amendments.--
(1) Administrative provisions.--Section 1303, as redesignated
by subsection (a)(3), 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 the following:
``(d) Submission of Certain Documents to Congress.--
``(1) In general.--If the Board submits any budget estimate,
budget request, supplemental budget estimate, or other budget
information, legislative recommendation, prepared testimony for a
congressional hearing, or comment on legislation to the President
or to the Office of Management and Budget, the Board shall
concurrently submit a copy of such document to--
``(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
``(B) the Committee on Transportation and Infrastructure of
the House of Representatives.
``(2) No approval required.--No officer or agency of the United
States has any authority to require the Board to submit budget
estimates or requests, 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 before submitting such recommendations, testimony, or
comments to Congress.''.
SEC. 4. SURFACE TRANSPORTATION BOARD MEMBERSHIP.
(a) In General.--Section 1301(b), as redesignated by subsection
3(a), is amended--
(1) in paragraph (1)--
(A) by striking ``3 members'' and inserting ``5 members'';
and
(B) by striking ``2 members'' and inserting ``3 members'';
and
(2) by striking paragraph (2) and inserting the following:
``(2) At all times--
``(A) 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
``(B) at least 2 members shall be individuals with professional
or business experience (including agriculture) in the private
sector.''.
(b) Repeal of Obsolete Provision.--Section 1301(b), as amended by
this section, is further amended--
(1) by striking paragraph (4);
(2) by redesignating paragraphs (5), (6), and (7) as paragraphs
(4), (5), and (6), respectively; and
(3) in paragraph (4), as redesignated, by striking ``who
becomes a member of the Board pursuant to paragraph (4), or an
individual''.
SEC. 5. NONPUBLIC COLLABORATIVE DISCUSSIONS.
Section 1303(a), as redesignated by subsections (a) and (c) of
section 3, is amended to read as follows:
``(a) Open Meetings.--
``(1) In general.--The Board shall be deemed to be an agency
for purposes of section 552b of title 5.
``(2) Nonpublic collaborative discussions.--
``(A) In general.--Notwithstanding section 552b of title 5,
a majority of the members may hold a meeting that is not open
to public observation to discuss official agency business if--
``(i) no formal or informal vote or other official
agency action is taken at the meeting;
``(ii) each individual present at the meeting is a
member or an employee of the Board; and
``(iii) the General Counsel of the Board is present at
the meeting.
``(B) Disclosure of nonpublic collaborative discussions.--
Except as provided under subparagraph (C), not later than 2
business days after the conclusion of a meeting under
subparagraph (A), the Board shall make available to the public,
in a place easily accessible to the public--
``(i) a list of the individuals present at the meeting;
and
``(ii) a summary of the matters discussed at the
meeting, except for any matters the Board properly
determines may be withheld from the public under section
552b(c) of title 5.
``(C) Summary.--If the Board properly determines matters
may be withheld from the public under section 555b(c) of title
5, the Board shall provide a summary with as much general
information as possible on those matters withheld from the
public.
``(D) Ongoing proceedings.--If a discussion under
subparagraph (A) directly relates to an ongoing proceeding
before the Board, the Board shall make the disclosure under
subparagraph (B) on the date of the final Board decision.
``(E) Preservation of open meetings requirements for agency
action.--Nothing in this paragraph may be construed to limit
the applicability of section 552b of title 5 with respect to a
meeting of the members other than that described in this
paragraph.
``(F) Statutory construction.--Nothing in this paragraph
may be construed--
``(i) to limit the applicability of section 552b of
title 5 with respect to any information which is proposed
to be withheld from the public under subparagraph (B)(ii);
or
``(ii) to authorize the Board to withhold from any
individual any record that is accessible to that individual
under section 552a of title 5, United States Code.''.
SEC. 6. REPORTS.
(a) Reports.--Section 1304, as amended by section 3, is further
amended--
(1) by striking the section heading and inserting the
following:
``Sec. 1304. Reports'';
(2) by inserting ``(a) Annual Report.--'' before ``The Board'';
(3) by striking ``on its activities.'' and inserting ``on its
activities, including each instance in which the Board has
initiated an investigation on its own initiative under this chapter
or subtitle IV.''; and
(4) by adding at the end the following:
``(b) Rate Case Review Metrics.--
``(1) Quarterly reports.--The Board shall post a quarterly
report of rail rate review cases pending or completed by the Board
during the previous quarter that includes--
``(A) summary information of the case, including the docket
number, case name, commodity or commodities involved, and rate
review guideline or guidelines used;
``(B) the date on which the rate review proceeding began;
``(C) the date for the completion of discovery;
``(D) the date for the completion of the evidentiary
record;
``(E) the date for the submission of closing briefs;
``(F) the date on which the Board issued the final
decision; and
``(G) a brief summary of the final decision;
``(2) Website posting.--Each quarterly report shall be posted
on the Board's public website.''.
(b) Compilation of Complaints at Surface Transportation Board.--
(1) In general.--Section 1304, as amended by subsection (a), is
further amended by adding at the end the following:
``(c) Complaints.--
``(1) In general.--The Board shall establish and maintain a
database of complaints received by the Board.
``(2) Quarterly reports.--The Board shall post a quarterly
report of formal and informal service complaints received by the
Board during the previous quarter that includes--
``(A) the date on which the complaint was received by the
Board;
``(B) a list of the type of each complaint;
``(C) the geographic region of each complaint; and
``(D) the resolution of each complaint, if appropriate.
``(3) Written consent.--The quarterly report may identify a
complainant that submitted an informal complaint only upon the
written consent of the complainant.
``(4) Website posting.--Each quarterly report shall be posted
on the Board's public website.''.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
Section 1305, as redesignated by section 3, is amended by striking
paragraphs (1) through (3) and inserting the following:
``(1) $33,000,000 for fiscal year 2016;
``(2) $35,000,000 for fiscal year 2017;
``(3) $35,500,000 for fiscal year 2018;
``(4) $35,500,000 for fiscal year 2019; and
``(5) $36,000,000 for fiscal year 2020.''.
SEC. 8. AGENT IN THE DISTRICT OF COLUMBIA.
(a) Designation of Agent and Service of Notice.--Section 1323, as
redesignated by section 3(a), is amended--
(1) in subsection (a), by striking ``in the District of
Columbia,''; and
(2) in subsection (c), by striking ``in the District of
Columbia''.
(b) Service of Process in Court Proceedings.--Section 1324(a), as
redesignated by section 3(a), is amended by striking ``in the District
of Columbia'' each place such phrase appears.
SEC. 9. DEPARTMENT OF TRANSPORTATION INSPECTOR GENERAL AUTHORITY.
Subchapter II of chapter 13, as redesignated by section 3(a)(2), is
amended by inserting after section 1325, as redesignated by section
3(a)(6), the following:
``Sec. 1326. 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 the Board's
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, the Committee on
Commerce, Science, and Transportation of the Senate, and the
Committee on Transportation and Infrastructure of the House of
Representatives 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
the problems referred to in paragraph (1); and
``(3) submit periodic reports to the Committee on Commerce,
Science, and Transportation of the Senate, and the Committee on
Transportation and Infrastructure of the House of Representatives
that describe any progress made in implementing actions to address
the problems referred to in paragraph (1).
``(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) Authorization 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
reimbursement agreement to cover such expense.''.
SEC. 10. AMENDMENT TO TABLE OF SECTIONS.
The table of sections for chapter 13, as redesignated by section
3(a), is amended to read as follows:
``CHAPTER 13--SURFACE TRANSPORTATION BOARD
``i--establishment
``Sec.
``1301. Establishment of Board
``1302. Functions.
``1303. Administrative provisions.
``1304. Reports.
``1305. Authorization of appropriations.
``1306. Reporting official action.
``ii--administrative
``1321. Powers.
``1322. Board action.
``1323. Service of notice in Board proceedings.
``1324. Service of process in court proceedings.
``1325. Railroad-Shipper Transportation Advisory Council.
``1326. Authority of the Inspector General.''.
SEC. 11. PROCEDURES FOR RATE CASES.
(a) Simplified Procedure.--Section 10701(d)(3) is amended to read
as follows:
``(3) The Board shall maintain 1 or more simplified and expedited
methods 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) Expedited Handling; Rate Review Timelines.--Section 10704(d) is
amended--
(1) by striking ``(d) Within 9 months'' and all that follows
through ``railroad rates.'' and inserting the following:
``(d)(1) The Board shall maintain procedures to ensure the
expeditious handling of challenges to the reasonableness of railroad
rates.''; and
(2) by adding at the end the following:
``(2)(A) Except as provided under subparagraph (B), in a stand-
alone cost rate challenge, the Board shall comply with the following
timeline:
``(i) Discovery shall be completed not later than 150 days
after the date on which the challenge is initiated.
``(ii) The development of the evidentiary record shall be
completed not later than 155 days after the date on which discovery
is completed under clause (i).
``(iii) The closing brief shall be submitted not later than 60
days after the date on which the development of the evidentiary
record is completed under clause (ii).
``(iv) A final Board decision shall be issued not later than
180 days after the date on which the evidentiary record is
completed under clause (ii).
``(B) The Board may extend a timeline under subparagraph (A) after
a request from any party or in the interest of due process.''.
(c) Procedures.--Not later than 180 days after the date of the
enactment of this Act, the Surface Transportation Board shall initiate
a proceeding to assess procedures that are available to parties in
litigation before courts to expedite such litigation and the potential
application of any such procedures to rate cases.
(d) Expired Rail Service Contract Limitation.--Section 10709 is
amended by striking subsection (h).
SEC. 12. INVESTIGATIVE AUTHORITY.
(a) Authority To Initiate Investigations.--Section 11701(a) is
amended--
(1) by striking ``only on complaint'' and inserting ``on the
Board's own initiative or upon receiving a complaint pursuant to
subsection (b)''; and
(2) by adding at the end the following: ``If the Board finds a
violation of this part in a proceeding brought on its own
initiative, any remedy from such proceeding may only be applied
prospectively.''.
(b) Limitations on Investigations of the Board's Initiative.--
Section 11701, as amended by subsection (a), is further amended by
adding at the end the following:
``(d) In any investigation commenced on the Board's own initiative,
the Board shall--
``(1) not later than 30 days after initiating the
investigation, provide written notice to the parties under
investigation, which shall state the basis for such investigation;
``(2) only investigate issues that are of national or regional
significance;
``(3) permit the parties under investigation to file a written
statement describing any or all facts and circumstances concerning
a matter which may be the subject of such investigation;
``(4) make available to the parties under investigation and
Board members--
``(A) any recommendations made as a result of the
investigation; and
``(B) a summary of the findings that support such
recommendations;
``(5) to the extent practicable, separate the investigative and
decisionmaking functions of staff;
``(6) dismiss any investigation that is not concluded by the
Board with administrative finality within 1 year after the date on
which it was commenced; and
``(7) not later than 90 days after receiving the
recommendations and summary of findings under paragraph (4)--
``(A) dismiss the investigation if no further action is
warranted; or
``(B) initiate a proceeding to determine if a provision
under this part has been violated.
``(e)(1) Any parties to an investigation against whom a violation
is found as a result of an investigation begun on the Board's own
initiative may, not later than 60 days after the date of the order of
the Board finding such a violation, institute an action in the United
States court of appeals for the appropriate judicial circuit for de
novo review of such order in accordance with chapter 7 of title 5.
``(2) The court--
``(A) shall have jurisdiction to enter a judgment affirming,
modifying, or setting aside, in whole or in part, the order of the
Board; and
``(B) may remand the proceeding to the Board for such further
action as the court may direct.''.
(c) Rulemakings for Investigations of the Board's Initiative.--Not
later than 1 year after the date of the enactment of this Act, the
Board shall issue rules, after notice and comment rulemaking, for
investigations commenced on its own initiative that--
(1) comply with the requirements of section 11701(d) of title
49, United States Code, as added by subsection (b);
(2) satisfy due process requirements; and
(3) take into account ex parte constraints.
SEC. 13. ARBITRATION OF CERTAIN RAIL RATES AND PRACTICES DISPUTES.
(a) In General.--Chapter 117 is amended by adding at the end the
following:
``Sec. 11708. Voluntary arbitration of certain rail rates and practices
disputes
``(a) In General.--Not later than 1 year after the date of the
enactment of the Surface Transportation Board Reauthorization Act of
2015, the Board shall promulgate regulations to establish a voluntary
and binding arbitration process to resolve rail rate and practice
complaints subject to the jurisdiction of the Board.
``(b) Covered Disputes.--The voluntary and binding arbitration
process established pursuant to subsection (a)--
``(1) shall apply to disputes involving--
``(A) rates, demurrage, accessorial charges, misrouting, or
mishandling of rail cars; or
``(B) a carrier's published rules and practices as applied
to particular rail transportation;
``(2) shall not apply to disputes--
``(A) to obtain the grant, denial, stay, or revocation of
any license, authorization, or exemption;
``(B) to prescribe for the future any conduct, rules, or
results of general, industry-wide applicability;
``(C) to enforce a labor protective condition; or
``(D) that are solely between 2 or more rail carriers; and
``(3) shall not prevent parties from independently seeking or
utilizing private arbitration services to resolve any disputes the
parties may have.
``(c) Arbitration Procedures.--
``(1) In general.--The Board--
``(A) may make the voluntary and binding arbitration
process established pursuant to subsection (a) available only
to the relevant parties;
``(B) may make the voluntary and binding arbitration
process available only--
``(i) after receiving the written consent to arbitrate
from all relevant parties; and
``(ii)(I) after the filing of a written complaint; or
``(II) through other procedures adopted by the Board in
a rulemaking proceeding;
``(C) with respect to rate disputes, may make the voluntary
and binding arbitration process available only to the relevant
parties if the rail carrier has market dominance (as determined
under section 10707); and
``(D) may initiate the voluntary and binding arbitration
process not later than 40 days after the date on which a
written complaint is filed or through other procedures adopted
by the Board in a rulemaking proceeding.
``(2) Limitation.--Initiation of the voluntary and binding
arbitration process shall preclude the Board from separately
reviewing a complaint or dispute related to the same rail rate or
practice in a covered dispute involving the same parties.
``(3) Rates.--In resolving a covered dispute involving the
reasonableness of a rail carrier's rates, the arbitrator or panel
of arbitrators, as applicable, 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 (as determined under section
10704(a)(2)).
``(d) Arbitration Decisions.--Any decision reached in an
arbitration process under this section--
``(1) shall be consistent with sound principles of rail
regulation economics;
``(2) shall be in writing;
``(3) shall contain findings of fact and conclusions;
``(4) shall be binding upon the parties; and
``(5) shall not have any precedential effect in any other or
subsequent arbitration dispute.
``(e) Timelines.--
``(1) Selection.--An arbitrator or panel of arbitrators shall
be selected not later than 14 days after the date of the Board's
decision to initiate arbitration.
``(2) Evidentiary process.--The evidentiary process of the
voluntary and binding arbitration process shall be completed not
later than 90 days after the date on which the arbitration process
is initiated unless--
``(A) a party requests an extension; and
``(B) the arbitrator or panel of arbitrators, as
applicable, grants such extension request.
``(3) Decision.--The arbitrator or panel of arbitrators, as
applicable, shall issue a decision not later than 30 days after the
date on which the evidentiary record is closed.
``(4) Extensions.--The Board may extend any of the timelines
under this subsection upon the agreement of all parties in the
dispute.
``(f) Arbitrators.--
``(1) In general.--Unless otherwise agreed by all of the
parties, an arbitration under this section shall be conducted by an
arbitrator or panel of arbitrators, which shall be selected from a
roster, maintained by the Board, of persons with rail
transportation, economic regulation, professional or business
experience, including agriculture, in the private sector.
``(2) Independence.--In an arbitration under this section, the
arbitrators shall perform their duties with diligence, good faith,
and in a manner consistent with the requirements of impartiality
and independence.
``(3) Selection.--
``(A) In general.--If the parties cannot mutually agree on
an arbitrator, or the lead arbitrator of a panel of
arbitrators, the parties shall select the arbitrator or lead
arbitrator from the roster by alternately striking names from
the roster until only 1 name remains meeting the criteria set
forth in paragraph (1).
``(B) Panel of arbitrators.--If the parties agree to select
a panel of arbitrators, instead of a single arbitrator, the
panel shall be selected under this subsection as follows:
``(i) The parties to a dispute may mutually select 1
arbitrator from the roster to serve as the lead arbitrator
of the panel of arbitrators.
``(ii) If the parties cannot mutually agree on a lead
arbitrator, the parties shall select a lead arbitrator
using the process described in subparagraph (A).
``(iii) In addition to the lead arbitrator selected
under this subparagraph, each party to a dispute shall
select 1 additional arbitrator from the roster, regardless
of whether the other party struck out the arbitrator's name
under subparagraph (A).
``(4) Cost.--The parties shall share the costs incurred by the
Board and arbitrators equally, with each party responsible for
paying its own legal and other associated arbitration costs.
``(g) Relief.--
``(1) In general.--Subject to the limitations set forth in
paragraphs (2) and (3), an arbitral decision under this section may
award the payment of damages or rate prescriptive relief.
``(2) Practice disputes.--The damage award for practice
disputes may not exceed $2,000,000.
``(3) Rate disputes.--
``(A) Monetary limit.--The damage award for rate disputes,
including any rate prescription, may not exceed $25,000,000.
``(B) Time limit.--Any rate prescription shall be limited
to not longer than 5 years from the date of the arbitral
decision.
``(h) Board Review.--If a party appeals a decision under this
section to the Board, the Board may review the decision under this
section to determine if--
``(1) the decision is consistent with sound principles of rail
regulation economics;
``(2) a clear abuse of arbitral authority or discretion
occurred;
``(3) the decision directly contravenes statutory authority; or
``(4) the award limitation under subsection (g) was
violated.''.
(b) Conforming Amendment.--The table of contents for chapter 117 is
amended by adding at the end the following:
``11708. Voluntary arbitration of certain rail rates and practice
disputes.''.
SEC. 14. EFFECT OF PROPOSALS FOR RATES FROM MULTIPLE ORIGINS AND
DESTINATIONS.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the Comptroller General of the United States
shall commence a study of rail transportation contract proposals
containing multiple origin-to-destination movements.
(b) Report.--Not later than 1 year after commencing the study
required under subsection (a), the Comptroller General shall submit a
report containing the results of the study to--
(1) the Committee on Commerce, Science, and Transportation of
the Senate; and
(2) the Committee on Transportation and Infrastructure of the
House of Representatives.
SEC. 15. REPORTS.
(a) Report on Rate Case Methodology.--Not later than 1 year after
the date of the enactment of this Act, the Surface Transportation Board
shall submit a report to the congressional committees referred to in
section 14(b) that--
(1) indicates whether current large rate case methodologies are
sufficient, not unduly complex, and cost effective;
(2) indicates whether alternative methodologies exist, or could
be developed, to streamline, expedite, and address the complexity
of large rate cases; and
(3) only includes alternative methodologies, which exist or
could be developed, that are consistent with sound economic
principles.
(b) Quarterly Reports.--Beginning not later than 60 days after the
date of the enactment of this Act, the Surface Transportation Board
shall submit quarterly reports to the congressional committees referred
to in section 14(b) that describes the Surface Transportation Board's
progress toward addressing the issues raised in each unfinished
regulatory proceeding, regardless of whether the proceeding is subject
to a statutory or regulatory deadline.
SEC. 16. CRITERIA.
Section 10704(a)(2) is amended by inserting ``for the
infrastructure and investment needed to meet the present and future
demand for rail services and'' after ``management,''.
SEC. 17. CONSTRUCTION.
Nothing in this Act may be construed to affect any suit commenced
by or against the Surface Transportation Board, or any proceeding or
challenge pending before the Surface Transportation Board, before the
date of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.