Railroad Competition Act of 2005 - Amends Federal transportation law to specify the primary objectives of U.S. rail transportation policy.
Requires a rail carrier, upon shipper request, to establish a rate for transportation and provide requested service between any two points on the carrier's system where traffic originates, terminates, or may reasonably be interchanged. Specifies matters the carrier must disregard when establishing such rate.
Prohibits the Surface Transportation Board (STB) from issuing a certificate authorizing construction and operation of railroad lines, or exempt from such certificate requirement any related activity, that involves a transfer of interest in a line of railroad, from a Class I rail carrier to a Class II or III rail carrier, if the activity directly or indirectly would result in a restriction of: (1) the ability of the Class II or Class III rail carrier to interchange traffic with other carriers; or (2) competition between or among rail carriers in the region affected by the activity in a manner or to an extent that would violate Federal antitrust laws.
Prescribes a procedure for shipper petition and STB review of any activity alleged to have resulted in a restriction of competition for at least ten years.
Changes from discretionary to mandatory the authority of the STB to require rail carriers to enter into reciprocal switching agreements. Prohibits the STB from requiring evidence of anticompetitive conduct by a rail carrier from which access is sought.
Requires the STB to designate any State or part of a State as an area of inadequate rail competition after making certain findings.
Requires the STB to post rail service complaints on its website.
Requires submission to arbitration of certain rail rate, service, and other disputes.
Requires the STB, with respect to the filing of a complaint, to adopt an alternative method of determining the reasonableness of rail rates using the railroad's actual costs.
Amends the Department of Agriculture Reorganization Act of 1994 to establish within the Department of Agriculture an Office of Rail Customer Advocacy with respect to rail transportation of agricultural and forestry commodities or products.
Amends the Railroad Revitalization and Regulatory Reform Act of 1976 to make mandatory the Secretary's authority to provide direct loans and loan guarantees to State and local governments, approved agreements or interstate compacts, sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad for railroad rehabilitation and improvement projects.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 919 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 919
To amend title 49, United States Code, to enhance competition among and
between rail carriers in order to ensure efficient rail service and
reasonable rail rates, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 2005
Mr. Burns (for himself, Mr. Rockefeller, Mr. Dorgan, Mr. Craig, Mr.
Dayton, Mr. Vitter, Mr. Thune, Mr. Johnson, Mr. Baucus, and Mr.
Coleman) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend title 49, United States Code, to enhance competition among and
between rail carriers in order to ensure efficient rail service and
reasonable rail rates, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED STATES CODE.
(a) Short Title.--This Act may be cited as the ``Railroad
Competition Act of 2005''.
(b) Amendment of Title 49, United States Code.--Except as otherwise
expressly provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or a repeal of, a section or
other provision, the reference shall be considered to be made to a
section or other provision of title 49, United States Code.
TITLE I--RAIL TRANSPORTATION COMPETITION
SEC. 101. CLARIFICATION OF RAIL TRANSPORTATION POLICY.
Section 10101 is amended--
(1) by inserting ``(a) In General.--'' before ``In
regulating''; and
(2) by adding at the end the following:
``(b) Primary Objectives.--The primary objectives of the rail
transportation policy of the United States are--
``(1) to promote effective competition among rail carriers
at origins and destinations;
``(2) to maintain reasonable rates in the absence of
effective competition; and
``(3) to maintain consistent and efficient rail
transportation service for shippers, including the timely
provision of rail cars requested by shippers.''.
SEC. 102. REQUIREMENT FOR RATE QUOTES.
Section 11101(a) is amended--
(1) by inserting ``(1)'' after ``(a)''; and
(2) by adding at the end of subsection (a) the following:
``(2) Upon the request of a shipper, a rail carrier shall establish
a rate for transportation and provide service requested by the shipper
between any two points on the system of that carrier where traffic
originates, terminates, or may reasonably be interchanged. A carrier
shall establish a rate and provide service upon such request without
regard to--
``(A) the location of the movement on the rail system,
including terminal areas;
``(B) whether the rate established is for only part of a
movement between a point of origin and a destination;
``(C) whether the shipper has made arrangements for
transportation for any other part of that movement; or
``(D) whether the shipper has a contract with any rail
carrier for part or all of its transportation needs over the
route of movement, in which case the rate established by the
carrier shall not apply to transportation covered by the
contract.''.
SEC. 103. ELIMINATION OF BARRIERS TO COMPETITION BETWEEN CLASS I
CARRIERS AND CLASS II AND CLASS III RAIL CARRIERS.
(a) Restriction on Approval or Exemption of Rail Carriers'
Activities by Surface Transportation Board.--Section 10901 is amended
by adding at the end the following:
``(e)(1) The Board may not issue under this section a certificate
authorizing an activity described in subsection (a), or exempt from the
applicability of this section under section 10502 such an activity,
that involves a transfer of interest in a line of railroad, from a
Class I rail carrier to a Class II or a Class III rail carrier, if the
activity directly or indirectly would result in--
``(A) a restriction of the ability of the Class II or Class
III rail carrier to interchange traffic with other carriers; or
``(B) a restriction of competition between or among rail
carriers in the region affected by the activity in a manner or
to an extent that would violate antitrust laws of the United
States (notwithstanding any exemption from the applicability of
antitrust laws that is provided under section 10706 of this
title or any other provision of law).
``(2) Any party to an activity referred to in paragraph (1) that
has been carried out, or any rail shipper affected by such an activity,
may request that the Board review the activity to determine whether the
activity has resulted in a restriction described in that paragraph. If,
upon review of the activity, the Board determines that the activity
resulted in such a restriction and the restriction has been in effect
for at least 10 years, the Board shall declare the restriction to be
unlawful and terminate the restriction unless the Board finds that the
termination of the restriction would materially impair the ability of
an affected rail carrier to provide service to the public or would
otherwise be inconsistent with the public interest.
``(3) In this subsection:
``(A) The term `antitrust laws' has the meaning given that
term in subsection (a) of the first section of the Clayton Act
(15 U.S.C. 12(a)), except that such term also means section 5
of the Federal Trade Commission Act (15 U.S.C. 45) to the
extent that such section 5 applies to unfair methods of
competition.
``(B) The terms `Class I rail carrier', `Class II rail
carrier', and `Class III rail carrier' mean, respectively, a
rail carrier classified under regulations of the Board as a
Class I rail carrier, Class II rail carrier, and Class III rail
carrier.''.
(b) Applicability to Previously Approved or Exempted Activities.--
Paragraph (2) of section 10901(e) of title 49, United States Code (as
added by subsection (a)), shall apply with respect to any activity
referred to in that paragraph for which the Surface Transportation
Board issued a certificate authorizing the activity under section 10901
of such title, or exempted the activity from the necessity for such a
certificate under section 10502 of such title, before, on, or after the
date of the enactment of this Act.
SEC. 104. RECIPROCAL SWITCHING ON COMPETITIVE TERMS.
Section 11102(c) is amended--
(1) by striking ``may require'' in paragraph (1) and
inserting ``shall require'';
(2) by striking ``may establish'' in paragraph (1)
inserting ``shall establish''; and
(3) by adding at the end the following:
``(3) In making any finding for the purposes of the first sentence
of paragraph (1), the Board may not require that there be evidence of
anticompetitive conduct by a rail carrier from which access is
sought.''.
SEC. 105. AREAS OF INADEQUATE RAIL COMPETITION.
(a) Designation and Remedies.--
(1) In general.--Chapter 105 is amended by adding at the
end the following:
``Sec. 10503. Areas of inadequate rail competition
``(a) Designation.--The Board shall designate any State or part of
a State as an area of inadequate rail competition after finding either
of the grounds set forth in subsection (b). An area of inadequate rail
competition may be limited to be composed of the facilities of a group
of shippers or receivers of one or more specific commodities within a
geographic area.
``(b) Grounds for Designation.--The grounds for designating a State
or part of a State as an area of inadequate rail competition are as
follows:
``(1) The State or part of a State encompasses a
significant number of rail shipping origins and destinations
that are served exclusively by only one Class I railroad.
``(2) A significant number of the persons that ship by rail
or receive rail shipments in the State or part of a State--
``(A) usually find it necessary to pay rates for
the rail shipments that exceed the rates necessary to
yield recovery by the rail carrier of 180 percent of
revenue-variable costs, as determined under standards
applied in the administration of section 10707(d); or
``(B) has experienced competitive disadvantage in
the marketplace or other economic adversity because of
high cost or poor quality of rail service in the State
or part of a State, as the case may be.
``(c) Authorized Petitioners.--The following persons may petition
the Board for a designation of a State or part of a State as an area of
inadequate rail competition:
``(1) The Governor from the State.
``(2) A Member of Congress from the State.
``(3) As provided in section 10504, the Rail Customer
Advocate of the Department of Agriculture and any State
official referred to in subsection (a)(2) of such section.
``(d) Actions.--Upon designating a State or a part of a State as an
area of inadequate rail competition, the Board shall attempt to
resolve, within 60 days after the date of the designation, the
conditions described in subsection (b) that justify the designation. In
addition to providing other remedies authorized by law, the Board may,
when requested in a petition, order any of the following actions:
``(1) Provision of reciprocal switching and access to
tracks of another rail carrier beyond the limits specified in
section 11102(a) of this title.
``(2) Haulage transportation of railroad cars by a rail
carrier to or from facilities that such carrier alone
physically serves on behalf of another rail carrier, for a fee
prescribed by the Board.
``(3) Regarding rates on any rail segments within or
connected to the area of inadequate rail competition on which
rail service is susceptible to delay or interruption due to
traffic congestion--
``(A) expedited review of the reasonableness of the
rates under section 10701(d)(3); or
``(B) expedited final offer arbitration of the
reasonableness of the rates under section 11708(e).
``(4) Expedited review, under section 10701(d)(3), of the
reasonableness of--
``(A) increases in rates or other charges; and
``(B) new transportation service tariffs.
``(5) Expedited review of whether a rate violates the
prohibition against discriminatory rates contained in section
10741, without regard to subsection (b)(2) of such section.
``(e) Limitations and Conditions Applicable to Specific Remedies.--
``(1) In the case of a petition for an order for reciprocal
switching or access to tracks of another rail carrier under
subsection (d)(1), the Board may not require that there be
evidence of anticompetitive conduct by a rail carrier as a
prerequisite for ordering such action.
``(2) In the case of a petition for expedited review of
rates or final offer arbitration of rates under subsection
(d)(3)--
``(A) the Board or arbitrator or panel of
arbitrators, as the case may be, shall accord, with
respect to rail transportation of a specific commodity,
significant persuasive weight to evidence comparing--
``(i) rates charged for rail transportation
of various quantities of that commodity within
the area of inadequate rail competition; and
``(ii) rates charged for rail
transportation of similar quantities of that
commodity or any similar commodity or
commodities in areas where there is competition
among rail carriers for shipments of such
commodity or commodities; and
``(B) the Board or arbitrator or panel of
arbitrators, as the case may be, shall not apply the
stand-alone cost test that the Board applies in
determining the reasonableness of rates reviewed in
cases not involving rail service in an area of
inadequate rail competition.
``(3) In the case of a petition for expedited review, under
subsection (d)(4), of an increase of a rate or other charge or
the imposition of a new service tariff by a rail carrier--
``(A) the rail carrier shall have the burden of
proving the reasonableness of the increase or tariff
charge; and
``(B) the Board shall consider any evidence
comparing--
``(i) the increased rate or other charge,
or the tariff charge, as the case may be; and
``(ii) corresponding rates, other charges,
or new service tariff charges, respectively,
imposed for rail transportation in areas where
there is a significant level of competition
among the rail carriers.''.
(2) Clerical amendment.--The chapter analysis for chapter
105 is amended by inserting after the item relating to section
10502 the following:
``10503. Areas of inadequate rail competition.''.
(b) Study and Report on Areas of Inadequate Rail Competition.--
(1) Study required.--The Rail Customer Advocate of the
Department of Agriculture shall carry out a study of the
process provided under section 10503 of title 49, United States
Code (as added by subsection (a)), for challenging and
remedying conditions described in subsection (b) of such
section in States and parts of States designated under such
section as areas of inadequate rail competition insofar as such
conditions adversely affect rail shippers of agricultural or
forestry commodities and products.
(2) Findings on effectiveness of process.--The Rail
Customer Advocate shall make findings, on the basis of the
study under paragraph (1), regarding the effectiveness of the
process for remedying the conditions studied, particularly in
the case of customers that ship agricultural or forestry
commodities and products by rail in annual volumes of 1,500
rail cars or less.
(3) Report.--Not later than 3 years after the date of the
enactment of this Act, the Rail Customer Advocate shall submit
to Congress a report on the results of the study under
paragraph (1), including the findings required under paragraph
(2).
TITLE II--RAIL SERVICE
SEC. 201. RAIL SERVICE.
(a) Public Notice.--The Board shall, within 7 days after receipt of
a formal or informal complaint by the Board or any Member or staff of
the Board, post on the Board's internet web site information
identifying the railroad in question, the general geographic area of
the customer's movement, a general description of the service
complaint, the date upon which the service problem occurred and the
date notice of the service complaint was made to the Board, any Member
or staff of the Board. The Board shall not identify the rail customer,
unless the customer has consented in writing to the release of this
information. When and if the service complaint is resolved, whether or
not by action of the Board or any Member or staff of the Board, the
Board shall amend the information posted to indicate that the service
complaint has been resolved, the means of its resolution, and the date
of its resolution.
(b) Annual Report to Congress.--The Board shall, by March 15th of
each year, file with Congress, and post on its internet web site, a
comprehensive report on the service complaints received in the previous
calendar year for each Class I railroad, including all of the
information posted for such service complaints on the internet web site
of the Board.
(c) Time Limit on Petitions for Injunctive Relief.--Section 721 is
amended by adding at the end the following:
``(f) Time Limit on Petitions for Injunctive Relief.--If a
complaint is filed and injunctive or similar relief is sought within 20
days after the publication of a new or revised rail rate, rule, or
practice, based on an allegation of unlawfulness other than an
allegation that a rate level is not reasonable within the meaning of
section 10701(d) of this title, the Board shall determine whether or
not to grant the requested relief within 90 days of receiving the
request. If the moving party establishes that the rule of practice
complained of is unlawful per se, there shall be a strong presumption
of irreparable harm regardless of the availability of monetary relief.
If the Board denies injunctive or similar relief based in whole or in
part on the absence of irreparable harm due to the availability of
adequate monetary relief, then the Board may award requested monetary
damages to the complaining party if that party prevails in its
complaint.''.
TITLE III--REASONABLE RATES FOR CAPTIVE RAIL CUSTOMERS
SEC. 301. ARBITRATION OF CERTAIN RAIL RATE, SERVICE, AND OTHER
DISPUTES.
(a) In General.--
(1) Authority.--Chapter 117 is amended by adding at the end
the following:
``Sec. 11708. Arbitration of certain rail rate, service, and other
disputes
``(a) Election of Arbitration.--A dispute described in subsection
(b) shall be submitted for resolution by arbitration upon the election
of any party to the dispute that is not a rail carrier.
``(b) Covered Disputes.--
``(1) In general.--Except as provided in paragraph (2),
subsection (a) applies to any dispute between a party described
in subsection (a) and a rail carrier that--
``(A) arises under section 10701(c), 10701(d),
10702, 10704(a)(1), 10707, 10741, 10745, 10746,
11101(a), 11102, 11121, 11122, or 11706 of this title;
and
``(B) involves--
``(i) the payment of money;
``(ii) a rate or charge imposed by the rail
carrier; or
``(iii) transportation or other service by
the rail carrier.
``(2) Exception.--Subsection (a) does not apply to a
dispute if the resolution of the dispute would necessarily
involve the promulgation of regulations generally applicable to
all rail carriers.
``(c) Arbitration Procedures.--The Secretary of Transportation
shall prescribe in regulations the procedures for the resolution of
disputes submitted for arbitration under subsection (a). The
regulations shall include the following:
``(1) Procedures, including time limits, for the selection
of an arbitrator or panel of arbitrators for a dispute from
among arbitrators listed on the roster of arbitrators
established and maintained by the Secretary under subsection
(d)(1).
``(2) Policies, requirements, and procedures for the
compensation of each arbitrator for a dispute to be paid by the
parties to the dispute.
``(3) Procedures for expedited arbitration of a dispute,
including procedures for discovery authorized in the exercise
of discretion by the arbitrator or panel of arbitrators.
``(d) Selection of Arbitrators.--
``(1) In general.--The Secretary of Transportation shall
establish, maintain, and revise as necessary a roster of
arbitrators who--
``(A) are experienced in transportation or economic
issues within the jurisdiction of the Board or issues
similar to those issues;
``(B) satisfy requirements for neutrality and other
qualification requirements prescribed by the Secretary;
``(C) consent to serve as arbitrators under this
section; and
``(D) are not officers or employees of the United
States.
``(2) Smaller disputes.--For a dispute involving an amount
not in excess of $1,000,000, the regulations under subsection
(c) shall provide for arbitration by a single arbitrator who--
``(A) is selected by the parties to the dispute; or
``(B) if the parties cannot agree, is selected by
the Secretary from among the arbitrators listed on the
roster of arbitrators under paragraph (1).
``(3) Larger disputes.--
``(A) For a dispute involving an amount in excess
of $1,000,000, the regulations under subsection (c)
shall provide for arbitration by a panel of three
arbitrators selected as follows:
``(i) One arbitrator selected by the party
electing the arbitration.
``(ii) One arbitrator selected by the rail
carrier or all of the rail carriers who are
parties to the dispute, as the case may be.
``(iii) One arbitrator selected by the two
arbitrators selected under clauses (i) and
(ii).
``(B) If a selection of an arbitrator is not made
under clause (ii) or (iii) of subparagraph (A) within
the time limits prescribed in the regulations, then the
Secretary shall select the arbitrator from among the
arbitrators listed on the roster of arbitrators under
paragraph (1).
``(e) Disputes Over Rates or Charges.--
``(1) Limitation.--The requirements of this subsection
apply to a dispute submitted under this section concerning a
rate or charge imposed by a rail carrier.
``(2) Awards.--
``(A) Subject to subparagraph (B), the decision of
an arbitrator or panel of arbitrators in a dispute on
an issue described in paragraph (1) shall be the final
offer of one of the parties to the dispute.
``(B) A decision under subparagraph (A) may not
provide for a rate for transportation by a rail carrier
that would result in a revenue-variable cost percentage
for such transportation that is less than 180 percent,
as determined under standards applied in the
administration of section 10707(d).
``(3) Rate and charge disputes.--If the party electing
arbitration of a dispute described in paragraph (1) seeks
compensation for damages incurred by the party as a result of a
specific rate or charge imposed by a rail carrier for the
transportation of items for the party and the party alleges an
amount of damages that does not exceed $500,000 for any year as
a result of the imposition of the specific rate or charge, the
arbitrator, in making a decision on the dispute, shall consider
the rates or charges, respectively, that are imposed by rail
carriers for the transportation of similar items under similar
circumstances in rail transportation markets where there is
effective competition, as determined under standards applied by
the Board in the administration of section 10707(a).
``(f) Time for Issuance of Arbitration Decision.--Notwithstanding
any other provision of this subtitle limiting the time for the taking
of an action under this subtitle, the arbitrator or panel of
arbitrators for a dispute submitted for resolution under this section
shall issue a final decision on the dispute within the maximum period
after the date on which the arbitrator or panel is selected to resolve
the dispute under this section, as follows:
``(1) In the case of a dispute involving $1,000,000 or
less, 120 days.
``(2) In the case of a dispute involving more than
$1,000,000, 180 days.
``(g) Authorized Relief.--A decision of an arbitrator or panel of
arbitrators under this section shall grant relief in either or both of
the following forms:
``(1) Monetary damages, to the extent authorized to be
provided by the Board in such a dispute under this subtitle.
``(2) An order that requires specific performance under any
applicable law, including any law limiting rates to reasonable
rates, for any period not in excess of 2 years beginning on the
date of the decision.
``(h) Judicial Confirmation and Review.--The following provisions
of title 9 shall apply to an arbitration decision issued in a dispute
under this section:
``(1) Section 9 (relating to confirmation of an award in an
arbitration decision), which shall be applied as if the parties
had entered into an agreement under title 9 to submit the
dispute to the arbitration and had provided in that agreement
for a judgment of an unspecified court to be entered on the
award made pursuant to the arbitration.
``(2) Section 10 (relating to judicial vacation of an award
in an arbitration decision).''.
(2) Clerical amendment.--The chapter analysis for chapter
117 is amended by inserting after the item relating to section
11707 the following: The table of sections at the beginning of
such chapter is amended by inserting after the item relating to
section 11707 the following:
``11708. Arbitration of certain rail rate, service, and other
disputes.''.
(b) Time for Implementing Certain Requirements.--Not later than 180
days after the date of the enactment of this Act, the Secretary of
Transportation shall promulgate regulations, prescribe a roster of
arbitrators, and complete any other action that is necessary for the
implementation of section 11708 of title 49, United States Code (as
added by subsection (a)).
SEC. 302. FILING FEES ON PETITIONS FOR CAPTIVE RATE RELIEF.
Section 721 is amended by adding at the end the following:
``(f) Limitation on Fees.--The Board may not charge a fee for the
filing of a complaint, protest, or other request for relief in an
amount greater than fees charged by district courts of the United
States for a comparable filing.''.
SEC. 303. RATE REASONABLENESS.
Section 10701(d) is amended by adding at the end the following:
``(4)(A) Not later than one year after the date of enactment of the
Railroad Competition Act of 2005, the Board shall adopt an alternative
method for determining the reasonableness of rail rates using the
railroad's actual costs, including a portion of fixed costs and an
adequate return on equity. The method shall permit a final
determination within nine months of filing a complaint, shall ensure
that necessary cost, financial and operational information is
available, and shall not require excessive litigation costs.
``(B) The Board may not, on or after the date of enactment of that
Act, use any method for determining the reasonableness of challenged
rail rates based on the costs of a hypothetical competitor, except in a
proceeding pending on the date of enactment of that Act or where the
complainant so elects. The simplified and expedited method for
determining the reasonableness of challenged rail rates provided for in
paragraph (3) shall remain available at the election of qualifying
complainants.
``(C) The Board shall adopt a method for applying the `phasing
constraint' in its existing rail rate method so that it can be
practically administered without substantial litigation-related costs
in any proceeding involving a challenge to a rail rate in which the
Board determines that the phasing constraint applies.
``(5) Upon a challenge made by a shipper to the reasonableness of
any rate established by a rail carrier in accordance with subsection
(c) or section 11101(a), the Board shall determine the reasonableness
of the rate without regard to whether--
``(A) the rate is for part of a movement between a point of
origin and a destination;
``(B) the shipper has made arrangements for transportation
for any other part of that movement; or
``(C) the shipper currently has a contract with a rail
carrier for any part of the rail traffic involved, except that
any rate prescribed by the Board shall not apply to
transportation covered by such a contract.''.
TITLE IV--MISCELLANEOUS
SEC. 401. RAIL CUSTOMER ADVOCATE IN THE DEPARTMENT OF AGRICULTURE.
(a) Participation of Rail Customer Advocate in STB Proceedings.--
(1) Authority and responsibilities.--Chapter 105, as
amended by section 105 of this Act, is further amended by
adding at the end the following:
``Sec. 10504. Participation of Rail Customer Advocate in Board
proceedings
``(a) Authority.--The following persons are authorized to petition
the Board for an exercise of authority of the Board regarding rail
transportation of any agricultural or forestry commodity or product,
and to participate in any proceeding of the Board regarding rail
transportation of such a commodity or product:
``(1) The Rail Customer Advocate of the Department of
Agriculture.
``(2) Any official of the government of a State whose
functions are the same as or similar to the functions of the
Rail Customer Advocate of the Department of Agriculture.
``(b) Consideration of Presentations by Advocate.--
``(1) The Board shall accord significant persuasive weight
to any material evidence, proposal, or view that is presented
by an official referred to in subsection (a) with respect to
rail transportation of an agricultural or forestry commodity or
product.
``(2) In disposing of any matter before the Board in which
an official referred to in subsection (a) has participated
under the authority of such subsection, the Board shall present
in writing a detailed explanation of any disagreement of the
Board with matters presented to the Board by that official.''.
(2) Clerical amendment.--The chapter analysis for chapter
105, as amended by section 105, is further amended by inserting
after the item relating to section 10503 the following:
``10504. Participation of Rail Customer Advocate in Board
proceedings.''.
(b) Establishment and Duties.--
(1) In general.--Subtitle I of title II of the Department
of Agriculture Reorganization Act of 1994 (7 U.S.C. 7005) is
amended by adding at the end the following:
``SEC. 286. RAIL CUSTOMER ADVOCATE.
``(a) Establishment of Office.--There is established within the
Department an Office of Rail Customer Advocacy.
``(b) Rail Customer Advocate.--
``(1) Appointment.--The Secretary shall appoint the Rail
Customer Advocate.
``(2) Head of office.--The Rail Customer Advocate is the
head of the Office of Rail Customer Advocacy.
``(c) Functions.--The Rail Customer Advocate has the following
functions:
``(1) Participation in stb proceedings.--To participate as
a party in proceedings of the Surface Transportation Board on
petitions for action by the Board regarding the regulation of
rail transportation of agricultural or forestry commodities or
products, and to initiate any such action.
``(2) Compilation of information.--To collect, compile, and
maintain information regarding the cost and efficiency of rail
transportation of agricultural commodities and products and
forestry commodities and products.
``(3) Studies.--To perform studies regarding rail
transportation of agricultural commodities and products and
forestry commodities and products.
``(d) Access to STB Information.--To carry out the functions under
subsection (c), the Rail Customer Advocate shall have access to
information, including databases, of the Surface Transportation
Board.''.
(2) Conforming amendments.--Section 296(b) of the
Department of Agriculture Reorganization Act of 1994 (7 U.S.C.
7014(b)) is amended--
(A) by striking ``or'' after the semicolon in
paragraph (4);
(B) by striking ``218.'' in paragraph (5) and
inserting ``218; or''; and
(C) by adding at the end the following:
``(6) the establishment of the Office of Rail Consumer
Advocacy of the Department under section 286.''.
SEC. 402. STUDY OF COMPETITION AMONG RAIL CARRIERS.
(a) Requirement for Study.--Chapter 101 is amended by adding at the
end the following:
``Sec. 10103. Study of rail carrier competition and processes of the
Board
``(a) Requirement for Study.--Within 2 years after the date of
enactment of the Railroad Competition Act of 2005, the Secretary of
Transportation shall conduct a comprehensive study of rail carrier
competition and the processes of the Board, after consulting with the
Department of Justice, the Department of Energy, the Department of
Defense, the Department of Agriculture, rail users and railroads. The
study shall include an assessment of--
``(1) the availability of effective competitive options
among and between rail carriers;
``(2) the effectiveness of the processes of the Board,
including the process used for determining the reasonableness
of rates of rail carriers;
``(3) the availability to rail users of effective
regulatory dispute resolution options;
``(4) the Board's implementation of the Railroad
Competition Act of 2005; and
``(5) the overall level of rail-to-rail competition in
serving rail users in the United States.
``(b) Report to Congress.--Not later than November 15 of the year
in which the study is conducted under subsection (a), the Secretary
shall submit a report on the results of the study to Congress. The
report shall include--
``(1) the Secretary's assessment of the overall level of
rail-to-rail competition in the rail carrier industry in the
United States;
``(2) the markets that have limited rail-to-rail
competition;
``(3) recommendations for enhancing rail-to-rail
competition, particularly in markets identified as having
limited rail-to-rail competition;
``(4) an assessment of the Board's performance of its
purpose to promote and enhance competition among and between
railroads by--
``(A) implementing the provisions and policies of
the Railroad Competition Act of 2005;
``(B) addressing complaints regarding rates,
charges, and service; and
``(C) promulgating regulations of general
applicability or taking other actions;
``(5) recommendations for modification of any of the
decisions of the Board (or decisions of the former Interstate
Commerce Commission continuing in effect) or for modification
of the general authority or jurisdiction of the Board; and
``(6) any other findings, analyses, assessments, and
recommendations that result from the study.
``(c) Updates.--The Secretary shall update the study every 3 years
after the initial study is completed and report the results to the
Congress.''.
(b) Clerical Amendment.--The chapter analysis for chapter 101 is
amended by inserting after the item relating to section 10102 the
following:
``10103. Periodic study of rail carrier competition and processes of
the Board''.
TITLE V--REHABILITATION, IMPROVEMENT, AND SECURITY FINANCING
SEC. 501. REHABILITATION AND IMPROVEMENT FINANCING.
(a) Definitions.--Section 102(7) of the Railroad Revitalization and
Regulatory Reform Act of 1976 (45 U.S.C. 802(7)) is amended to read as
follows:
``(7) `railroad' has the meaning given that term in section
20102 of title 49, United States Code; and''.
(b) General Authority.--Section 502(a) of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(a)) is
amended by striking ``Secretary may provide direct loans and loan
guarantees to State and local governments,'' and inserting ``Secretary
shall provide direct loans and loan guarantees to State and local
governments, agreements or interstate compacts consented to by Congress
under section 410(a) of Public Law 105-134 (49 U.S.C. 24101 nt),''.
(c) Extent of Authority.--Section 502(d) of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(d)) is
amended--
(1) by striking ``$3,500,000,000'' and inserting
``$35,000,000,000'';
(2) by striking ``$1,000,000,000'' and inserting
``$7,000,000,000''; and
(3) by adding at the end ``The Secretary shall not
establish any limit on the proportion of the unused amount
authorized under this subsection that may be used for 1 loan or
loan guarantee.''.
(d) Cohorts of Loans.--Section 502(f) of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822(f)) is
amended--
(1) by striking ``and'' after the semicolon in subparagraph
(D) of paragraph (1);
(2) by redesignating subparagraph (E) of paragraph (1) as
subparagraph (F);
(3) by inserting after subparagraph (D) of paragraph (1)
the following:
``(E) the size and characteristics of the cohort of which
the loan or loan guarantee is a member; and''; and
(4) by adding at the end of paragraph (4) ``A cohort may
include loans and loan guarantees. The Secretary shall not
establish any limit on the proportion of a cohort that may be
used for 1 loan or loan guarantee.''.
(e) Conditions of Assistance.--Section 502 of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822) is
amended--
(1) by striking ``offered;'' in subsection (f)(2)(A) and
inserting ``offered, if any;''; and
(2) by adding at the end of subsection (h) ``The Secretary
shall not require an applicant for a direct loan or loan
guarantee under this section to provide collateral. The
Secretary shall not require that an applicant for a direct loan
or loan guarantee under this section have previously sought the
financial assistance requested from another source. The
Secretary shall require recipients of direct loans or loan
guarantees under this section to apply the standards of section
22301(b) and (c) of title 49, United States Code, to their
projects.''.
(f) Time Limit for Approval or Disapproval.--Section 502 of the
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C.
822) is amended by adding at the end the following:
``(i) Time Limit for Approval or Disapproval.--Not later than 180
days after receiving a complete application for a direct loan or loan
guarantee under this section, the Secretary shall approve or disapprove
the application.''.
(g) Fees and Charges.--Section 503 of the Railroad Revitalization
and Regulatory Reform Act of 1976 (45 U.S.C. 823) is amended--
(1) by adding at the end of subsection (k) ``Funds received
by the Secretary under the preceding sentence shall be credited
to the appropriation from which the expenses of making such
appraisals, determinations, and findings were incurred.''; and
(2) by adding at the end the following:
``(l) Fees and Charges.--Except as provided in this title, the
Secretary may not assess any fees, including user fees, or charges in
connection with a direct loan or loan guarantee provided under section
502.''.
(h) Substantive Criteria and Standards.--Not later than 30 days
after the date of the enactment of this Act, the Secretary of
Transportation shall publish in the Federal Register and post on the
Department of Transportation website the substantive criteria and
standards used by the Secretary to determine whether to approve or
disapprove applications submitted under section 502 of the Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 822).
(i) Operators and Service Providers Deemed Rail Carriers.--Section
502 of the Railroad Revitalization and Regulatory Reform Act of 1976
(45 U.S.C. 822), as amended by subsection (f), is amended by adding at
the end the following:
``(j) Operators and Certain Service Providers Deemed Rail
Carriers.--A person that conducts rail operations, or performs
catering, cleaning, construction, maintenance, or other services for
rail operations, funded or otherwise receiving assistance under this
section is deemed to be a rail carrier for purposes of part A of
subtitle IV of title 49, United States Code, when so operating or
performing such services.''.
<all>D23/
Introduced in Senate
Sponsor introductory remarks on measure. (CR S4407-4408)
Read twice and referred to the Committee on Commerce, Science, and Transportation.
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