[Federal Register Volume 73, Number 64 (Wednesday, April 2, 2008)]
[Notices]
[Page 18031]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6846]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 290 (Sub-No. 4)]


Railroad Cost Recovery Procedures--Productivity Adjustment

AGENCY: Surface Transportation Board, DOT.

ACTION: Adoption of a railroad cost recovery procedures productivity 
adjustment.

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SUMMARY: In a decision served on February 22, 2008, we proposed to 
adopt 1.008 (0.8% per year) as the measure of average change in 
railroad productivity for the 2002-2006 (5-year) averaging period. This 
value was a decline of 0.9 of a percentage point from the current 
measure of 1.7% that was developed for the 2001-2005 period. That 
decision stated that comments may be filed addressing any perceived 
data and computational errors in our calculation. It also stated that, 
if there were no further action taken by the Board, the proposed 
productivity adjustment would become effective on March 17, 2008.
    On March 13, 2008, the Board received comments from both the 
Association of American Railroads and the Western Coal Traffic League. 
Both parties requested that the Board revisit the development of the 
output index calculation and make certain other clarifications. By a 
decision served on March 17, 2008, we postponed the effective date of 
the annual productivity adjustment.
    We have reviewed the calculations of the output index for 2006. 
During that review, we found inconsistencies in the weights associated 
with certain movements reported in the waybill sample data, and found 
that these inconsistencies caused a distortion in the resulting 
productivity calculation. This circumstance has been rectified and the 
Board is issuing modifications to its annual productivity decision. The 
Board's original calculation of the output index for 2006 of 0.994 
should be modified to 1.018.
    We will adopt 1.013 (1.3% per year) as the measure of average 
change in railroad productivity for the 2002-2006 (5-year) averaging 
period. This value is a decline of 0.4 of a percentage point from the 
current measure of 1.7% that was developed for the 2001-2005 period. 
The proposed 5-year (2002-2006) productivity trend calculated using a 
geometric average is 1.012, or 1.2% per year.

EFFECTIVE DATE: The productivity adjustment is effective March 28, 
2008.

FOR FURTHER INFORMATION CONTACT: Pedro Ramirez, (202) 245-0333. 
[Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.]

SUPPLEMENTARY INFORMATION: Additional information is contained in the 
Board's decision, which is available on our Web site http://www.stb.dot.gov. To purchase a copy of the full decision, write to, e-
mail or call the Board's contractor, ASAP Document Solutions; 9332 
Annapolis Rd., Suite 103, Lanham, MD 20706; e-mail [email protected]; 
phone (202) 306-4004. [Assistance for the hearing impaired is available 
through FIRS: 1-800-877-8339.]
    This action will not significantly affect either the quality of the 
human environment or energy conservation.
    Pursuant to 5 U.S.C. 605(b), we conclude that our action will not 
have a significant economic impact on a substantial number of small 
entities within the meaning of the Regulatory Flexibility Act.

    Decided: March 27, 2008.

    By the Board, Chairman Nottingham, Vice Chairman Mulvey, and 
Commissioner Buttrey.
Anne K. Quinlan,
Acting Secretary.
 [FR Doc. E8-6846 Filed 4-1-08; 8:45 am]
BILLING CODE 4915-01-P