[Congressional Record Volume 161, Number 179 (Thursday, December 10, 2015)]
[House]
[Pages H9218-H9223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SURFACE TRANSPORTATION BOARD REAUTHORIZATION ACT OF 2015
Mr. SHUSTER. Mr. Speaker, I move to suspend the rules and pass the
bill (S. 808) to establish the Surface Transportation Board as an
independent establishment, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 808
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.
[[Page H9219]]
``(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;
[[Page H9220]]
``(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
[[Page H9221]]
(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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Pennsylvania (Mr. Shuster) and the gentleman from Massachusetts (Mr.
Capuano) each will control 20 minutes.
The Chair recognizes the gentleman from Pennsylvania.
General Leave
Mr. SHUSTER. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks and
include extraneous materials on S. 808.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Pennsylvania?
There was no objection.
Mr. SHUSTER. Mr. Speaker, I yield such time as he may consume to the
gentleman from California (Mr. Denham), the chairman of the
Subcommittee on Railroads, Pipelines, and Hazardous Materials.
Mr. DENHAM. Mr. Speaker, I thank the chairman for giving me time to
speak on the Surface Transportation Board Reauthorization Act of 2015.
This is an important piece of legislation that will reform the STB to
work more efficiently to better regulate the railroads. This year is
the 35th anniversary of the passage of the Staggers Rail Act of 1980,
which saved the railroad industry from bankruptcy.
Earlier this year, my subcommittee held a hearing on the successes of
the railroad deregulation. We heard how railroads were freed to act
more like true businesses by charging market-driven rates and being
able to right-size their operations along rail lines, which made
economic sense.
This deregulation effort culminated in the creation of the STB in the
Interstate Commerce Commission Termination Act of 1995. The STB is a
small but significant agency that conducts the economic regulation of
the railroads and has not been reauthorized since its creation.
{time} 1500
The bill we consider today would streamline and simplify regulatory
activities, a hallmark of this Congress.
While the STB has successfully overseen a stronger railroad industry,
this bill will help the rail industry better serve its customers:
First, it streamlines dispute resolution procedures and sets hard
deadlines for completion of rate cases to reduce litigation costs;
Second, it provides greater transparency into complaints received by
the STB and requires enhanced reporting by the agency;
Third, it rejects Big Government re-regulatory action that has been
proposed in the past. Instead, it makes necessary reforms to the agency
to improve its processes and procedures;
Finally, the bill has broad support from shipper groups across the
country, including the National Grain and Feed Association, the
American Chemistry Council, The Fertilizer Institute, and the American
Farm Bureau Federation.
I am pleased to stand here today and support the STB Reauthorization
Act. It is only fitting that we are considering this bill just over 35
years since Congress passed the Staggers Rail Act, which allowed the
railroads to thrive. I believe this bill will continue to make the STB
and the rail industry better for the Nation's rail shippers, and I urge
my colleagues to support this critical legislation.
Mr. CAPUANO. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am getting sick and tired of agreeing with my
colleagues. This is the way transportation issues are supposed to be:
bipartisan, thoughtful, and relatively easy to pass.
Mr. Speaker, I rise to support S. 808, which reauthorizes the STB, as
you have already heard. This Board has not been reauthorized since it
was created by the Interstate Commerce Commission Termination Act of
1995. That is ridiculous. It is about time we do it, and I am happy
that I am here today to participate in that.
For those who don't know, the Surface Transportation Board is
currently a three-member, bipartisan agency within the Department of
Transportation. They have regulatory jurisdiction over the rates
freight railroads charge their customers, mergers between railroad
companies, new rail line construction, abandonment and conversion of
existing rail lines, and other such matters.
Though an agency very few Americans know about, the STB has a
profound impact on the availability and cost of goods across our
Nation. This bill makes a number of commonsense reforms to the Board.
It establishes the STB as an independent entity, rather than as part
of the Department of Transportation, and expands Board membership from
three to five. I know that sounds like a small matter, but by doing so,
it allows members to actually talk to each other without breaking
certain laws of members being unable to talk for obvious open
government purposes.
The bill requires the STB to streamline their processes for certain
rate cases; sets rate review timelines for full, standalone cost rate
challenges; and requires the STB to initiate a proceeding to develop
other methods to expedite rate cases.
For the first time, the STB will be able to initiate their own
investigations on different allegations. Right now, current law
requires someone to bring a complaint before they can initiate a
review. This is a major improvement.
The bill requires the STB to establish a voluntary and binding
arbitration process to resolve rail rate and service complaints, and it
requires the STB to evaluate whether current large rate case
methodologies are sufficient, cost-effective, and are not unduly
complex.
S. 808 is an important step forward on an important, if not widely
known, issue. I urge Members to support this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I just want to thank Mr. Capuano, Mr. Denham, Mr.
DeFazio, and, of course, our colleagues in the Senate for bringing this
bill forward.
I think Mr. Capuano said it accurately: Transportation and
infrastructure bills should come to the floor in a bipartisan way,
figuring these things out, because this is good for America. It has
nothing to do with Republicans or Democrats. It has to do with what is
good for the American people, what is good for the American economy.
The Surface Transportation Board is the Federal economic regulator of
the Nation's freight system, and that has been a real success story.
Since the Staggers Rail Act was passed, I believe, as the gentleman
from Massachusetts mentioned, in 1980, our freight rail system is the
envy of the world. It is strong. It is vibrant. It does a great job.
But I know the STB reauthorization and making some of these significant
changes is going to be beneficial to everybody.
I think the gentleman from California ticked off a list of different
outside groups or stakeholders and people that utilize rail that are in
favor of this. Again, they sat down and worked it out. This will allow
the STB to run
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more efficiently and, ultimately, again, as I said, improve the
Nation's economy.
I am not going to go through all the description--Mr. Capuano did a
great job of that--of the changes that it makes and the authorities it
gives them. It is going to streamline this and get these rate cases to
the STB faster and get us through that process quicker. That is
extremely important. So I believe this legislation is a crucial step
for the railroad industry, the folks that use it on a day-to-day basis,
and the American economy.
As mentioned, the Senate passed this bill with broad support, and I
am pleased that we are moving this forward today.
Mr. Speaker, I reserve the balance of my time.
Mr. CAPUANO. Mr. Speaker, I yield such time as he may consume to the
gentleman from Oregon (Mr. DeFazio), my friend, the ranking member of
the Transportation and Infrastructure Committee.
Mr. DeFAZIO. Mr. Speaker, I thank the ranking member of the
subcommittee for yielding. He has already explained in detail what is
important about this legislation: the first reauthorization since the
creation of the agency, the streamlining of rate dispute processes, the
potential of arbitration in the future, and enlarging the Board so they
can be more facile in terms of making decisions without violating
public meetings laws. All those things are very important. I am just
going to add a little bit of what this means to me kind of stuff for
anybody who might be interested.
When I was a relatively junior Member of Congress--I think I am
probably the only Member of Congress who has testified twice before the
Surface Transportation Board--we had a huge crisis in the West--I think
it was after the UP-SP merger--where my Christmas tree growers couldn't
get railcars. So I famously made the ``How the Grinch Stole Christmas''
presentation to the Surface Transportation Board. We did, not too long
thereafter, get some railcars delivered and got those trees to families
all across the Western United States. That was important to an
important little industry that we have in Oregon.
More importantly, I went to the Surface Transportation Board again.
We had something called RailAmerica, which was an accumulation of many,
many short line railroads across the country. It was bought by and
being managed by one of those wonderful Wall Street hedge funds, who
were driving both our rail line and other rail lines into the ground.
They didn't have the slightest bit of interest in being in the rail
business. They were just trying to drain what money they could out of
those railroads.
One bright, sunny day, they decided to abandon the Coos Bay Railroad.
It runs from the Willamette Valley all the way down to Coos Bay,
Oregon, and back up to Coquille. It covers about 150 miles. It was the
only rail to the coast and to a major port in Oregon, the Port of Coos
Bay, North Bend.
They managed to get their equipment back, but they stranded railcars
full of lumber and other goods by saying: ``Sorry, it is done. We are
done.'' They didn't notify anybody. No proper procedures were filed.
``We are abandoning the line, and we are going to rip it up, and we are
going to sell the rails to the Chinese for scrap.''
Well, that didn't come to pass. I got together with the then-Governor
and we brought some legal clout to the table. We partnered with the
Port of Coos Bay, North Bend, and said what if we can get Federal and
State money and buy this railroad? The hedge fund said they weren't
interested. They thought they could make more money by ripping it up,
selling the right-of-way, and selling the scrap steel to China.
So I went to the Surface Transportation Board. The Surface
Transportation Board made the hedge fund sell the railroad as a
railroad. As decrepit as it was, it was an incredibly critical piece of
infrastructure.
I took one of those horrible earmarks that we don't do around here
anymore that I had gotten to improve the rail bridge over the harbor
and got that converted in a technical correction to money to help
purchase the railroad from this rotten hedge fund. The State partnered.
The port became the operator.
Last year, the Coos Bay Rail Link got the Short Line Operator of the
Year award. It is providing a tremendous economic benefit and future
for the south coast of my district. And absent the regulators--we all
want to carry on about how bad regulators are, but when you have
abusers out there like hedge funds that buy up critical infrastructure
and couldn't give a damn about them--we need people like the Surface
Transportation Board to preserve critical assets for our communities.
So I am thrilled to be here today to reauthorize, for the first time,
the Surface Transportation Board, streamline them, and enhance their
capabilities so that in the future, other aggrieved communities or
business sectors can go to the STB and get a quick judgment when they
need and deserve it.
Mr. CAPUANO. Mr. Speaker, I yield back the balance of my time.
Mr. SHUSTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I include in the Record a list of over 160 organizations
that support S. 808. They are users of the railroad system, from
agriculture interests to chemical, auto, pipe manufacturers, and energy
companies.
Agribusiness Association of Iowa, Agribusiness Council of
Indiana, Agricultural Retailers Association, Agriculture
Transportation Coalition, Alabama Crop Management
Association, Alliance for Rail Competition, Alliance of
Automobile Manufacturers, American Chemistry Council,
American Farm Bureau Federation, American Forest & Paper
Association, American Fuel & Petrochemical Manufacturers,
American Fuel & Petrochemical Manufacturers Association,
American Iron and Steel Institute, American Malting Barley
Association, Inc., American Public Power Association,
American Soybean Association, Auto Care Association, Chemical
Industry Council of Delaware, Chemical Industry Council of
Illinois, Chemistry Council of Missouri.
Chemistry Council of New Jersey, Colorado Association of
Wheat Growers, Connecticut Business & Industry Association,
Corn Refiners Association, Edison Electric Institute, Florida
Fertilizer & Agrichemical Association, Foundry Association of
Michigan, Freight Rail Customer Alliance, Georgia
Agribusiness Council, Georgia Chemistry Council, Glass
Packaging Institute, Grain and Feed Association of Illinois,
Green Coffee Association, Grocery Manufacturers Association,
Growth Energy, Idaho Barley Commission, Idaho Grain Producers
Association.
Idaho Wheat Commission, Illinois Fertilizer & Chemical
Association, Indiana Corn Growers Association, Indiana Farm
Bureau, Indiana Soybean Alliance, Institute of Makers of
Explosives, Institute of Scrap Recycling Industries, Inc.,
Institute of Shortening and Edible Oils, International Liquid
Terminals Association, International Warehouse Logistics
Association, Kansas Grain and Feed Association, Louisiana
Chemical Association, Manufacture Alabama, Manufacturers
Association of Florida, Massachusetts Chemistry & Technology
Alliance, Michigan Agri-Business Association, Michigan Bean
Shippers, Michigan Chemistry Council.
Midwest Food Processors Association, Minnesota AgriGrowth
Council, Minnesota Crop Production Retailers, Minnesota Grain
and Feed Association, Mississippi Manufacturers Association,
Missouri Agribusiness Association, Missouri Forest Products
Association, Montana Agricultural Business Association,
Montana Farmers Union, Montana Grain Elevators Association,
Motorcycle Industry Council, National Association of Chemical
Distributors, National Association of State Departments of
Agriculture, National Association of Wheat Growers, National
Barley Growers Association, National Corn Growers
Association, National Cotton Council of America, National
Council of Farmer Cooperatives, National Farmers Union.
National Grain and Feed Association, National Industrial
Transportation League, National Oilseed Processors
Association, National Onion Association, National Pasta
Association, National Retail Federation, National Rural
Electric Cooperative Association, National Shippers Strategic
Transportation Council, National Sunflower Association,
Nebraska Agri-Business Association, Inc., Nebraska Grain and
Feed Association, Nebraska Soybean Association, Nebraska
Wheat Board, Nebraska Wheat Growers Association, New York
State Agribusiness Association, New York State Chemistry
Council, North American Millers' Association, North Carolina
Manufacturers Alliance.
North Dakota Grain Dealers Association, Northeast
Agribusiness and Feed Alliance, Ohio Agribusiness
Association, Ohio Chemistry Technology Council, Oklahoma
Agribusiness Retailers Association, Oklahoma Grain and Feed
Association, Oregon Wheat Growers League, Outdoor Power
Equipment Association, Inc., Pennsylvania Chemical Industry
Council, Plastic Pipe and Fittings Association, Plastics Pipe
and Fittings Association, Portland Cement Association,
Promotional Products Association International, PVC Pipe
Association, Rail Customer Coalition, Renewable Fuels
Association, Rocky Mountain Agribusiness Association.
[[Page H9223]]
Society of Chemical Manufacturers and Affiliates, South
Carolina Fertilizer and Agrichemicals Association, South
Carolina Manufacturers Alliance, South Dakota Farmers Union,
South Dakota Grain & Feed Association, South Dakota Wheat
Inc., SPI: The Plastics Industry Trade Association, Steel
Manufacturers Association, Texas Ag Industries Association,
Texas Chemical Council, Texas Grain & Feed Association, Texas
Wheat Producers Association, The Chlorine Institute, The
Fertilizer Institute, The National Industrial Transportation
League, The Sulphur Institute, The Vinyl Institute.
United States Fashion Industry Association, US Canola
Association, US Dry Bean Council, US Dry Pea & Lentil
Council, USA Rice Federation, Vinyl Building Council, Vinyl
Siding Institute, Inc., Washington Association of Wheat
Growers, Washington Grain Commission, West Virginia
Manufacturers Association, Western Fuels Association, Western
Governors' Association, Western Plant Health Association,
Wisconsin Agri-Business Association, Wisconsin Corn Growers
Association, Wisconsin Electric Cooperative Association,
Wyoming Ag Business Association, Wyoming Wheat Marketing
Commission.
Mr. SHUSTER. Again, I would just urge all my colleagues to support
this important reauthorization and reform to the Surface Transportation
Board.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Pennsylvania (Mr. Shuster) that the House suspend the
rules and pass the bill, S. 808.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________