ARA Endorses Thune / Nelson STB Reauthorization Act of 2015 (S. 808)

U.S. Senate Commerce, Science and Transportation Committee Chairman John Thune (R-SD) and Ranking Member Bill Nelson (D-FL) introduced the “Surface Transportation Board Reauthorization Act of 2015”.  The Thune-Nelson bill is designed to make the STB work more efficiently and equitably through simple improvements such as allowing the Board members to talk with each other, providing timelines for rate cases, making arbitration meaningful and allowing the Board to investigate complaints.  This legislation is similar to last year’s bill (S. 2777) approved by the committee by voice vote during the 113th Congress.

“Rail service plays a critical role in distributing fertilizers, crop protection materials, and other essential agricultural products.  The Agricultural Retailers Association strongly supports the efforts of Senators Thune and Nelson to push legislation that will create meaningful reform to the Surface Transportation Board (STB) and move the agency into the 21st Century,” said Daren Coppock, President and CEO of the Agricultural Retailers Association.  “An efficient and economical freight rail system is critical to farmers and agricultural retailers. The ongoing rail delays and associated increases in shipping costs highlight the need for a more independent STB.”

Some of the key provisions of the Thune-Nelson STB Reauthorization Act include:

• Authorizes the STB for FY 2015 through FY 2019 (previous authorization lapsed in 1998);

• Expands voluntary arbitration procedures to make rate cases quicker and less costly;

• Provides the STB with the authority to initiate investigations on matters other than rate cases;

• Sets rate review timelines for the stand-alone cost test to ensure the STB efficiently decides on relief;

• Requires the STB to establish a database of complaints and prepare quarterly reports on them;

• Expands membership from three to five members and allows board members to talk with one another without a prior public hearing notice;

• Requires the STB to study more efficient and simplified rate review methodologies and to maintain at least on such methodology, given the challenges with the burdensome stand-alone cost test; and

• Requires the GAO to report on the effects of proposals with multiple origin to destination pairs.

This legislation may be considered for a vote by the full Senate Commerce, Science and Transportation Committee as early as next Wednesday.  View the Thune press release here. 

Some of the shipper groups supporting this important legislation include Agricultural Retailers Association; American Chemistry Council; American Farm Bureau Federation; American Forest & Paper Association; American Iron and Steel Institute; American Public Power Association; The Chlorine Institute; Connecticut Business and Industry Association; Consumers United for Rail Equity; Edison Electric Institute; The Fertilizer Institute; Glass Packaging Institute; Growth Energy; International Liquid Terminals Association; National Association of Chemical Distributors; National Farmers Union; The National Industrial  Transportation League; National Rural Electric Cooperative Association; Nebraska Wheat Board; Renewable Fuels Association; Society of Chemical Manufacturers and Affiliates; Steel Manufacturers Association; and Vinyl Institute.