Electric Co-op Today

A Senate committee has approved the most sweeping railroad reform bill in a generation, though shippers plan to work with lawmakers to strengthen the measure as it heads to the floor.

Sen. Jay Rockefeller

After months of behind-the-scenes negotiations, Senate Commerce Committee Chairman Jay Rockefeller, D-W.V., unveiled a comprehensive reform measure in mid-December, and his panel approved it Dec. 17.

“I’ve got to say, it’s an emotional day for me,” said Rockefeller, whose state includes a heavy coal shipping presence. “I started on this 25 years ago and I’ve gotten nowhere since then.”

Shippers said they were pleased by the committee’s action, but will seek additional changes to the legislation, including the elimination of the rail industry’s exemption from antitrust laws.

NRECA CEO Glenn English called the bill “historic legislation,” and said it represents the first time since 1980 that a bill with improvements to the rail regulatory program advocated by customers has cleared the Senate Commerce Committee.

“There is still much work to be done to see the consumer-oriented reforms included in this bill, as well as others advocated by freight rail shippers, enacted into law and implemented,” said English, who also serves as chairman of Consumers United for Rail Equity, a shippers group.

“But this bill is an important step forward in the long effort to increase fairness and competition in the nation’s freight rail system,” he said.

AGENCY OVERHAUL

The bill revamps the Surface Transportation Board, which oversees the freight rail industry, by expanding it to five members from three; giving it new authority to investigate irregular rail practices and adding a rail customer advocate position to the agency.

It also allows shippers to initiate binding arbitration proceedings at the STB for cases that involve up to $250,000 a year for two years. The board has an arbitration process, but it never has been used.

Tags: Captive Shipper, Legislation, Railroad Reform, Surface Transportation Board