[Federal Register Volume 77, Number 147 (Tuesday, July 31, 2012)]
[Proposed Rules]
[Page 45327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18687]



[[Page 45327]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

49 CFR Chapter X

[Docket No. EP-711]


Petition for Rulemaking To Adopt Revised Competitive Switching 
Rules

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of commencement of proceeding and request for comments.

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SUMMARY: The Surface Transportation Board (the Board) is commencing a 
proceeding to consider a proposal submitted by The National Industrial 
Transportation League (NITL) to increase rail-to-rail competition. The 
Board is seeking empirical evidence about the impact of the proposal, 
if it were to be adopted. Specifically, the Board is seeking public 
input on the proposal's impact on rail shippers' rates and service, 
including shippers that would not benefit under NITL's proposal; the 
proposal's impact on the rail industry, including its financial 
condition and network efficiencies; along with methodologies for the 
access price that would be used in conjunction with competitive 
switching.

DATES: Comments are due by November 23, 2012; responses are due 
February 21, 2013.

ADDRESSES: Comments may be submitted either via the Board's e-filing 
format or in the traditional paper format. Any person using e-filing 
should attach a document and otherwise comply with the instructions at 
the ``E-Filing'' link on the Board's Web site, at http://www.stb.dot.gov. Any person submitting a filing in the traditional 
paper format should send an original and 10 copies to: Surface 
Transportation Board, Attn: Docket No. EP 711, 395 E Street SW., 
Washington, DC 20423-0001.

FOR FURTHER INFORMATION CONTACT: Lucille Marvin at the Board's Office 
of Public Assistance, Governmental Affairs, and Compliance, (202) 245-
0238. Assistance for the hearing impaired is available through the 
Federal Information Relay Service (FIRS) at (800) 877-8339.

SUPPLEMENTARY INFORMATION: In 2011, the Board held a hearing to 
consider the state of competition in the railroad industry and what 
steps, if any, it should take to increase rail-to-rail competition. See 
Competition in the Railroad Industry, Docket No. EP 705. After the 
hearing, NITL proposed that the Board modify its standards for 
mandatory competitive switching. NITL suggests that the Board mandate 
switching where a ``captive shipper''--one that lacks competitive 
transportation options--is located within a terminal area and also 
within 30 miles of a working interchange, and the transportation rate 
charged by the Class I carrier from origin to destination exceeds 240% 
of that carrier's variable costs of providing service. This proposal 
has the potential to promote more rail-to-rail competition and reduce 
the agency's role in regulating the reasonableness of transportation 
rates. It could permit the agency to rely on competitive market forces 
to discipline railroad pricing from origin to destination, and regulate 
only the access price for the first (or last) 30 miles.
    As described more fully in our decision, however, additional 
information is needed before we can determine how to proceed. The Board 
therefore is instituting a proceeding to receive empirical evidence on 
the impact of the proposal on shippers and the railroad industry. 
Specifically, interested parties are invited to submit information on 
the following: (1) The impact on rates and service for shippers that 
would qualify under the competitive switching proposal; (2) the impact 
on rates and service for captive shippers that would not qualify under 
this proposal (because they are not located in a terminal area or 
within 30 miles of a working interchange); (3) the impact on the 
railroad industry, including its financial condition, network 
efficiencies or inefficiencies (including the potential for increased 
traffic); and (4) an access pricing proposal. The empirical evidence we 
are now requesting would be used to augment the Board's ongoing 
analysis of NITL's proposal as well as to evaluate other issues raised 
in the Competition in the Railroad Industry proceeding.
    Additional information is contained in the Board's decision, which 
is available on our Web site at www.stb.dot.gov. Copies of the decision 
may also be purchased by contacting the Board's Office of Public 
Assistance, Governmental Affairs, and Compliance at (202) 245-0238.
    This action will not significantly affect either the quality of the 
human environment or the conservation of energy resources.

    Decided: July 25, 2012.

    By the Board, Chairman Elliott, Vice Chairman Mulvey, and 
Commissioner Begeman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-18687 Filed 7-30-12; 8:45 am]
BILLING CODE 4915-01-P