STB Publishes Reciprocal Switching Final Rule

Today, the Surface Transportation Board (STB) published a final rule in the Federal Register (89 FR 38646-38710) on “Reciprocal Switching for Inadequate Service”. The rule adds 49 CFR 1145, Reciprocal Switching for Inadequate Service, that provides for the prescription of reciprocal switching agreements to promote adequate rail service through access to an additional line haul carrier. The notice of proposed rulemaking (NPRM) for this action was published (removed from paywall) on September 7^th, 2023.

Performance Standards

Section 1145.2 establishes Class I railroad performance standards that would apply only to petitions for prescription of a reciprocal switching agreement under Part 1145. Those performance standards include:

• Service reliability (original estimated time of arrival),

• Service consistency (transit time),

• Lanes,

• Empty railcars, and

• Industry spot and pull,

The following changes were made to the performance standards proposed in the NPRM based upon the comments received by the STB (links below to discussion in preamble):

• The reliability standard was raised from 60% to 70%,

• Revised the definition of ‘delivery’ at an interchange,

• Clarify that cars arriving more than 24 hours before the OETA will count against the carrier for purposes of the service reliability standard,

• Will limit action under Part 1145 to situations where there is a distinguishable movement in the United States, specifically when the carrier records receipt or delivery at or near the U.S. border, and

• Withdrew prescriptions that cover multiple lanes.

Effective Date

This rule will be effective September 4^th, 2024.