[Federal Register Volume 67, Number 167 (Wednesday, August 28, 2002)]
[Rules and Regulations]
[Page 55166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21767]



[[Page 55166]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Parts 1135 and 1137

[STB Ex Parte No. 637]


Removal and Revision of Regulations

AGENCY: Surface Transportation Board, Transportation.

ACTION: Final rules.

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SUMMARY: The Surface Transportation Board (Board) is revising its 
regulations concerning rail cost recovery procedures to reflect changes 
made by the ICC Termination Act of 1995, (ICCTA). The Board is also 
removing the regulations concerning expeditious procedures for 
publication of separate rates for distinct services, because the 
statutory basis for these regulations was eliminated by the ICCTA.

EFFECTIVE DATE: These rules are effective September 27, 2002.

FOR FURTHER INFORMATION CONTACT: John Sado, (202) 565-1661. [Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.]

SUPPLEMENTARY INFORMATION: Section 203 of the Staggers Rail Act of 
1980, codified at former 49 U.S.C. 10707a (1995), required the 
Interstate Commerce Commission (ICC) to publish a rail cost adjustment 
factor (RCAF) on at least a quarterly basis. The RCAF is an index 
intended to reflect the impact of inflation. Former section 10707a 
established a mechanism by which rail rates could be changed quickly to 
reflect changes in rail costs based on the RCAF while largely being 
insulated from shipper protest.\1\ The ICC issued regulations, 
currently found at 49 CFR part 1135, implementing the statute.
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    \1\ In general, under former section 10707a(b), tariff rates 
that did not exceed a current quarter's maximum RCAF rate level 
could not be found to be unreasonable. The statute also provided a 
zone of rate freedom (ZORF) that allowed carriers to take increases 
above the RCAF index. The ICC could not investigate or suspend ZORF 
increases, but shippers were allowed to file complaints challenging 
these increases.
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    Under the ICC Termination Act of 1995, Pub. L. No. 104-88, 109 
Stat. 803 (1995) (ICCTA), former section 10707a has been removed, 
although under new 49 U.S.C. 10708, the Board must still publish an 
RCAF at least quarterly. The ICCTA eliminated, however, the provisions 
of former section 10707a that allowed carriers to take increases based 
on the RCAF with limited rights of shipper challenge. Accordingly, we 
are revising the regulations in part 1135 to remove references to rate 
increases based on the RCAF.
    We are also removing section 1137.2, concerning expeditious 
procedures for publishing separate rates for distinct services. These 
rules were based on former section 15(18) of the Interstate Commerce 
Act, enacted in the Railroad Revitalization and Regulatory Reform Act 
of 1976 (4R Act) and subsequently recodified at 49 U.S.C. 10728. 
Section 10728 was repealed by the ICCTA. At this time, we are not 
revising the regulations at 49 CFR 1137.1 involving divisions of 
revenues. This section was also issued in response to the enactment of 
the 4R Act. We will examine this regulation in a separate proceeding.
    Because these changes remove and revise obsolete regulations based 
on statutory provisions that have been eliminated, we find good cause 
to dispense with notice and comment. See 5 U.S.C. 553(b)(B).
    Copies of the decision may be purchased from Da-2-Da Legal Copy 
Service by calling 202-293-7776 (assistance for the hearing impaired is 
available through Federal Information Relay Service (FIRS) at 1-800-
877-8339) or visiting Suite 405, 1925 K Street, NW., Washington, DC 
20006.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

List of Subjects

49 CFR 1135

    Administrative practice and procedure, Railroads, Reporting and 
recordkeeping requirements.

49 CFR Part 1137

    Administrative practice and procedure, Railroads.

    Decided: August 21, 2002.

    By the Board, Chairman Morgan and Vice Chairman Burkes.
Vernon A. Williams,
Secretary.

    For the reasons set forth in the preamble, part 1135 and 1137, of 
title 49, chapter X, of the Code of Federal Regulations are amended as 
follows:

PART 1135--RAIL COST ADJUSTMENT FACTOR

    1. The authority citation for part 1135 continues to read as 
follows:

    Authority: 5 U.S.C. 553 and 49 U.S.C. 721 and 10708.


Sec. 1135.1  [Revised]

    2. Revise Sec. 1135.1 to read as follows:


Sec. 1135.1  Quarterly adjustment.

    To enable the Board to publish the rail cost adjustment factor 
(RCAF) as required by 49 U.S.C. 10708, the Association of American 
Railroads (AAR) shall calculate and file with the Board by the fifth 
day of December, March, June and September of each year its forecast 
for the next calendar quarter of the all-inclusive index of railroad 
costs and calculate and file the RCAF unadjusted for changes in 
railroad productivity as prescribed in Railroad Cost Recovery 
Procedures, 1 I.C.C.2d 207 (1984), and any subsequent amendments 
thereto. In addition, the AAR shall calculate the productivity-adjusted 
RCAF as prescribed in Railroad Cost Recovery Procedures, 5 I.C.C.2d 434 
(1989), and any subsequent amendments thereto. The AAR shall submit 
workpapers detailing its calculations. The Board will review and verify 
the AAR submissions and make its RCAF publication by the twentieth day 
of December, March, June and September of each year.

    3. The authority citation for Part 1137 continues to read as 
follows:

    Authority: 49 U.S.C. 721, 10705.


Sec. 1137.2  [Removed]

    4. Sec. 1137.2 is removed.

[FR Doc. 02-21767 Filed 8-27-02; 8:45 am]
BILLING CODE 4915-00-P