[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

[[Page H9222]]

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.

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