S 2071 Introduced - Common Carrier Rules
Last month, Sen Baldwin (D,WI) introduced S 2071, the Reliable Rail Service Act. The bill would amend 49 USC 11101, expanding the railroad common carrier requirements to provide transportation upon a reasonable request to include requirements for ‘timely, efficient, and reliable rail service’. There is no funding provided in the legislation.
Subsection (a) Amendment Provisions
First, §2(1) of the bill modifies subsection (a), making the existing language into paragraph (1). It then modifies the first sentence of that paragraph to read:
“(1) A rail carrier providing transportation or service subject to the jurisdiction of the Board under this part shall provide the transportation or service on reasonable request, in a manner that meets the shipper’s need for timely, efficient, and reliable rail service and fulfills the shipper’s reasonable service requirements.”
Next, a paragraph (2) would be added that outlines the considerations that the Surface Transportation Board (STB) would use to evaluate complaints about paragraph (1). Those considerations would include:
The impacts of reductions or changes in the frequency of transportation or service, and the availability and maintenance of reasonable local service schedules and delivery windows, on the provision of reasonable transportation service,
The impacts of reductions in employment levels,
The impacts of reductions in equipment and the availability of equipment, maintenance of equipment or railroad infrastructure, lines and yards, or shifting of equipment across or within service territories or customer and commodity groups,
Whether the service reasonably meets the local operational and service requirements of the person requesting transportation or service that are consistent with the person’s needs and requirements for the efficient and reliable receipt, transportation and delivery of property,
The transportation needs or circumstances of the person requesting transportation or service based upon previous service experience and taking into account any physical or operational limitations or restrictions at a facility or location,
The commitment of the person requesting transportation or service of equipment or other resources to support the transportation or service,
Whether any conditions imposed by the rail carrier as requirements for service are required to meet the local service requirements of the person requesting service or permit the rail carrier to recover its variable cost of providing the requested transportation or service,
How the carrier is handling equipment owned by others, and
Whether conditions imposed by the rail carrier as requirements for service, including demurrage, are reasonably reciprocated to meet the service requirements of the person requesting service.
Other §11101 Changes
Section 2(2) of the bill would amend subsection (b) by revising the first sentence to read:
“(b) A rail carrier shall also provide to any person, on request, the carrier’s rates and other service terms, including reasonable transit or cycle times and other service standards, as requested, consistent with the needs and requirements of the person on whose behalf the request is made for the efficient and reliable receipt, transportation, and delivery of property.”
Section (2)(3) of the bill would add two new subsections, (g) and (h). Subsection (g) would require that the STB complete proceedings for complaints under this section to be completed within 180-days. Subsection (h) would allow STB to prescribe “reasonable transit or cycle times or other service standards to be established to deliver property consistent with the needs and requirements of the person making the request.”
Moving Forward
Baldwin is a member of the Senate Commerce, Science and Technology Committee to which this bill was assigned for consideration. This means that there may be sufficient influence to see the bill considered in Committee. Railroads are going to oppose this expansion of their common carrier responsibilities based upon their long-standing assertion that they are the only ones that have enough service situational awareness to establish what delivery schedules are reasonable. How that opposition would break down into votes in Committee and ultimately on the floor of the Senate is difficult to quantify. I suspect that any votes would be somewhat bipartisan and very close.
Commentary
This bill is an outgrowth of the continuing issues that shippers and receivers have had with railroad services. This bill is not going to solve the problem, but it does provide the STB with some additional tools to work out a solution.