[Federal Register Volume 84, Number 180 (Tuesday, September 17, 2019)]
[Notices]
[Pages 48982-48983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20076]
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SURFACE TRANSPORTATION BOARD
[Docket No. EP 761; Docket No. EP 722]
Hearing on Revenue Adequacy; Railroad Revenue Adequacy
AGENCY: Surface Transportation Board.
ACTION: Notice of Public Hearing.
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SUMMARY: The Surface Transportation Board (Board) will hold a public
hearing on December 12, 2019, on revenue adequacy issues raised in the
report issued by the Board's Rate Reform Task Force (RRTF). The hearing
will be held in the James E. Webb Memorial Auditorium of the National
Aeronautics and Space Administration (NASA), located at 300 E Street
SW, Washington, DC. All interested persons are invited to appear.\1\
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\1\ These proceedings are not consolidated. A single decision is
being issued for administrative purposes.
DATES: The hearing will be held on December 12, 2019, beginning at 9:30
a.m., in NASA's James E. Webb Memorial Auditorium and will be open for
public observation. Any person wishing to speak at the hearing should
file with the Board a notice of intent to participate (identifying the
party, proposed speaker, and amount of time requested) no later than
October 31, 2019. All hearing participants are required to submit
written testimony by November 26, 2019. Written submissions by
interested persons who will not appear at the hearing should also be
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filed by November 26, 2019.
ADDRESSES: All filings, referring to Docket No. EP 761 et al., must be
filed with the Surface Transportation Board either via e-filing or in
writing addressed to 395 E Street SW, Washington, DC 20423-0001.
Filings will be posted to the Board's website and need not be
served on the other hearing participants or written commenters. Copies
of the filings will also be available (for a fee) by contacting the
Board's Chief Records Officer at (202) 245-0238 or 395 E Street SW,
Washington, DC 20423-0001.
FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: In April 2014, the Board instituted a
proceeding in Docket No. EP 722 and invited interested persons to
comment on the Board's methodology for determining revenue adequacy,
the revenue adequacy component for judging the reasonableness of rail
freight rates, and what, if any, changes the Board should consider. See
R.R. Revenue Adequacy, EP 722 et al., slip op. at 4 (STB served Apr. 2,
2014). The Board held a public hearing on those issues in 2015.\2\
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\2\ The Board subsequently clarified that informal discussions
between the agency and stakeholders are permitted in the proceeding.
See R.R. Revenue Adequacy, EP 722, slip op. at 1-2 (STB served Mar.
28, 2018).
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In January 2018, the Board established its RRTF with the objectives
of developing recommendations to reform and streamline the Board's rate
review process for large cases, and determining how to best provide a
rate review process for smaller cases. After holding informal meetings
throughout 2018, the RRTF issued a report on April 25, 2019 (RRTF
Report).\3\ The RRTF Report recommended, among other things, that the
Board consider policy changes regarding revenue adequacy. RRTF Report
12-13, 32-42.
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\3\ The RRTF Report was posted on the Board's website on April
29, 2019, and can be accessed at https://www.stb.gov/stb/rail/Rate_Reform_Task_Force_Report.pdf.
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The Board will hold a public hearing on December 12, 2019, and
invites interested persons to provide input on the RRTF's
recommendations regarding revenue adequacy.\4\ All hearing participants
are required to submit written testimony by November 26,
[[Page 48983]]
2019. Written submissions by interested persons who will not appear at
the hearing should also be filed by November 26, 2019. All participants
and interested persons are asked to address the following RRTF
recommendations in their written testimony or submissions and at the
hearing:
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\4\ Under 49 U.S.C. 10701(d)(2), when determining whether a rate
is reasonable, the Board is directed to give due consideration to
three factors, recognizing the policy that ``rail carriers shall
earn adequate revenues.'' The Board is required to ``annually
determine which rail carriers are earning adequate revenues.'' 49
U.S.C. 10704(a)(3); see, e.g., R.R. Revenue Adequacy--2017
Determination, EP 552 (Sub-No. 22) (STB served Dec. 21, 2018). This
annual determination is distinct from long-term revenue adequacy,
which ``calls for a company, over time, to average return on
investment equal to its cost of capital.'' Coal Rate Guidelines,
Nationwide, 1 I.C.C.2d 520, 536 (1985).
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Definition of long-term revenue adequacy: The RRTF
recommended determining long-term revenue adequacy by looking at the
annual determinations over ``the shortest period of time, not less than
five years, that includes both a year in which a recession began and a
year that follows a year in which a recession began.'' RRTF Report 13,
33.
Rate increase constraint: The RRTF recommended considering
a rate increase constraint for long-term revenue-adequate carriers,
which would identify a point beyond which further application of
differential pricing would be unwarranted. See RRTF Report 13, 36-39.
Bottleneck changes: The RRTF recommended considering
suspension of the Board's Bottleneck \5\ protections as applied to
long-term revenue-adequate carriers. See RRTF Report 13, 39-41.
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\5\ See Cent. Power & Light Co. v. S. Pac. Transp. Co., 1 S.T.B.
1059 (1996), clarified, 2 S.T.B. 235 (1997), aff'd sub nom.
MidAmerican Energy Co. v. STB, 169 F.3d 1099 (8th Cir. 1999).
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Simplified Stand-Alone Cost (Simplified-SAC) changes: For
purposes of considering whether a long-term revenue-adequate carrier's
rate is reasonable under Simplified-SAC, the RRTF recommended
reinstating the simplification of the Road Property Investment
analysis. See RRTF Report 13, 41-42, & app. B.
Board Releases and Transcript Availability: Decisions and notices
of the Board, including this notice, are available on the Board's
website at www.stb.gov. The Board will issue a separate notice
containing instructions for attendance at the hearing and the schedule
of appearances. Please note that streaming and recording systems will
not be available for this hearing. As soon as a transcript is
available, it will be posted on the Board's website.
It is ordered
1. A public hearing will be held on December 12, 2019, at 9:30
a.m., in the James E. Webb Memorial Auditorium of the National
Aeronautics and Space Administration (NASA), located at 300 E Street
SW, Washington, DC.
2. By October 31, 2019, any person wishing to speak at the hearing
shall file with the Board a notice of intent to participate identifying
the party, the proposed speaker, and the amount of time requested.
3. Written testimony by hearing participants, and written
submissions by interested persons who will not appear at the hearing,
shall be filed by November 26, 2019.
4. Filings will be posted to the Board's website and need not be
served on any hearing participants or other commenters.
5. This decision is effective on its service date.
6. This decision will be published in the Federal Register.
Decided: September 12, 2019.
By the Board, Allison C. Davis, Director, Office of Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2019-20076 Filed 9-16-19; 8:45 am]
BILLING CODE 4915-01-P