To authorize appropriations for the Surface Transportation Board, to enhance railroad competition, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Surface Transportation Board Reform 
Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
                     TITLE I--RAILROAD COMPETITION

Sec. 101. Clarification of rail transportation policy.
Sec. 102. Fostering rail to rail competition.
Sec. 103. Simplified relief process for small captive grain shippers.
Sec. 104. Competitive rail service in terminal areas.
Sec. 105. Simplified standards for market dominance.
Sec. 106. Revenue adequacy determinations.
Sec. 107. Rail carrier service quality performance reports.
                        TITLE II--MISCELLANEOUS

Sec. 201. Effect of mergers on local communities and rail passenger 
                            transportation.
Sec. 202. Use of facilities by commuter authorities.
Sec. 203. Side tracks.
Sec. 204. Public availability of water carrier tariffs.
               TITLE III--AUTHORIZATION OF APPROPRIATIONS

Sec. 301. Authorization of appropriations.

                     TITLE I--RAILROAD COMPETITION

SEC. 101. CLARIFICATION OF RAIL TRANSPORTATION POLICY.

    Section 10101 of title 49, United States Code, 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 shall be--
            ``(1) to ensure effective competition among rail carriers 
        at origin and destination;
            ``(2) to maintain reasonable rates in the absence of 
        effective competition;
            ``(3) to maintain consistent and efficient rail 
        transportation service to shippers, including the timely 
        provision of railcars requested by shippers; and
            ``(4) to ensure that smaller carload and intermodal 
        shippers are not precluded from accessing rail systems due to 
        volume requirements.''.

SEC. 102. FOSTERING RAIL TO RAIL COMPETITION.

    (a) Establishment of Rate.--Section 11101(a) of title 49, United 
States Code, is amended by inserting after the first sentence the 
following: ``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--
            ``(1) whether the rate established is for only part of a 
        movement between an origin and a destination;
            ``(2) whether the shipper has made arrangements for 
        transportation for any other part of that movement; or
            ``(3) whether the shipper currently has a contract with any 
        rail carrier for part or all of its transportation needs over 
        the route of movement.
If such a contract exists, the rate established by the carrier shall 
not apply to transportation covered by the contract.''.
    (b) Review of Reasonableness of Rates.--Section 10701(d) of title 
49, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
    ``(3) A shipper may challenge the reasonableness of any rate 
established by a rail carrier in accordance with section 11101(a) or 
with subsection (c) of this section. The Board shall determine the 
reasonableness of the rate so challenged without regard to--
            ``(A) whether the rate established is for only part of a 
        movement between an origin and a destination;
            ``(B) whether the shipper has made arrangements for 
        transportation for any other part of that movement; or
            ``(C) whether the shipper currently has a contract with a 
        rail carrier for any part of the rail traffic at issue, 
        provided that the rate prescribed by the Board shall not apply 
        to transportation covered by such a contract.''.

SEC. 103. SIMPLIFIED RELIEF PROCESS FOR SMALL CAPTIVE GRAIN SHIPPERS.

    (a) Limitation on Fees.--Notwithstanding any other provision of 
law, the Surface Transportation Board shall not impose fees in excess 
of $1,000 for services collected from an eligible facility in 
connection with rail maximum rate complaints under part 1002 of title 
49, Code of Federal Regulations.
    (b) Simplified Rate and Service Relief.--Section 10701 of title 49, 
United States Code, is amended by adding at the end thereof the 
following:
    ``(e) Simplified Rates and Services.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a rail carrier may not charge a rate for shipments from or 
        to an eligible facility which results in a revenue-to-variable 
        cost percentage, using system average costs, for the 
        transportation service to which the rate applies that is 
        greater than 180 percent.
            ``(2) Acceptance of requests.--Notwithstanding any other 
        provision of law, a rail carrier shall accept all requests for 
        grain service from an eligible facility up to a maximum of 110 
        percent of the grain carloads shipped from or to the facility 
        in the immediately preceding calendar year. If, in a majority 
        of instances, a rail carrier does not in any 45-day period, 
        supply the number of grain cars so ordered by an eligible 
        facility or does not initiate service within 30 days of the 
        reasonably specified loading date, the eligible facility may 
        request that an alternative rail carrier provide the service 
        using the tracks of the original carrier. If the alternative 
        rail carrier agrees to provide such service, and such service 
        can be provided without substantially impairing the ability of 
        the carrier whose tracks reach the facility to use such tracks 
        to handle its own business, the Board shall order the 
        alternative carrier to commence service and to compensate the 
        other carrier for the use of its tracks. The alternative 
        carrier shall provide reasonable compensation to the original 
        carrier for the use of the original carrier's tracks.
            ``(3) Cancellation penalties.--A carrier may accept car 
        orders under paragraph (2) subject to reasonable penalties for 
        service requests that are canceled by the requester. If the 
        carrier fills such orders more than 15 days after the 
        reasonably specified loading date, the carrier may not assess a 
        penalty for canceled car orders.
            ``(4) Damages.--A rail carrier that fails to provide 
        service under the requirements of paragraph (2) is liable for 
        damages to an eligible facility that does not have access to an 
        alternative carrier, including lost profits, attorney's fees, 
        and any other consequences attributable to the carrier's 
        failure to provide the ordered service. A claim for such damage 
        may be brought in an appropriate United States District Court 
        or before the Board.
            ``(5) Timetable for board proceeding.--The Board shall 
        conclude any proceeding brought under this subsection no later 
        than 180 days from the date a complaint is filed.
            ``(6) Definitions.--In this subsection:
                    ``(A) Eligible facility.--The term `eligible 
                facility' means a shipper facility that--
                            ``(i) is the origin or destination for not 
                        more than 4,000 carloads annually of grain as 
                        defined in section 3(g) of the United States 
                        Grain Standards Act (7 U.S.C. 75(g));
                            ``(ii) is served by a single rail carrier 
                        at its origin;
                            ``(iii) has more than 60 percent of the 
                        facility's inbound or outbound grain and grain 
                        product shipments (excluding the delivery of 
                        grain to the facility by producers), measured 
                        by weight or bushels moved via a rail carrier 
                        in the immediately preceding calendar year; and
                            ``(iv) the rate charged by the rail carrier 
                        for the majority of shipments of grain and 
                        grain products from or to the facility, 
                        excluding premium for special service programs, 
                        results in a revenue-to-variable cost 
                        percentage, using system average costs, for the 
                        transportation to which the rate applies that 
                        is equal to or greater than 180 percent.
                    ``(B) Reasonable compensation.--The term 
                `reasonable compensation' shall mean an amount no 
                greater than the total shared costs of the original 
                carrier and the alternative carrier incurred, on a 
                usage basis, for the provision of service to an 
                eligible facility. If the carriers are unable to agree 
                on compensation terms within 15 days after the facility 
requests service from the alternative carrier, the alternative carrier 
or the eligible facility may request the Board to establish the 
compensation and the Board shall establish the compensation within 45 
days after such request is made.
                    ``(C) Original carrier.--The term `original 
                carrier' means a rail carrier which provides the only 
                rail service to an eligible facility using its own 
                tracks or provides such service over an exclusive lease 
                of the tracks serving the eligible facility.
                    ``(D) Alternative carrier.--The term `alternative 
                carrier' means a rail carrier that is not an original 
                carrier to an eligible facility.''.

SEC. 104. COMPETITIVE RAIL SERVICE IN TERMINAL AREAS.

    (a) Trackage Rights.--Section 11102(a) of title 49, United States 
Code, is amended--
            (1) by striking ``may'' in the first sentence and inserting 
        ``shall'';
            (2) by inserting after ``business.'' the following: ``In 
        making this determination, the Board shall not require evidence 
        of anticompetitive conduct by the rail carrier from which 
        access is sought.''; and
            (3) by striking ``may'' in the next-to-last sentence and 
        inserting ``shall''.
    (b) Reciprocal Switching.--Section 11102(c)(1) of title 49, United 
States Code, is amended--
            (1) by striking ``may'' in the first sentence and inserting 
        ``shall'';
            (2) by inserting after ``service.'' the following: ``In 
        making this determination, the Board shall not require evidence 
        of anticompetitive conduct by the rail carrier from which 
        access is sought.''; and
            (3) by striking ``may'' in the last sentence and inserting 
        ``shall''.

SEC. 105. SIMPLIFIED STANDARDS FOR MARKET DOMINANCE.

    Section 10707(d)(1)(A) of title 49, United States Code, is amended 
by adding at the end thereof the following: ``The Board shall not 
consider evidence of product or geographic competition in making a 
market dominance determination under this section.''.

SEC. 106. REVENUE ADEQUACY DETERMINATIONS.

    (a) Rail Transportation Policy.--Section 10101(a)(3) of title 49, 
United States Code (as so redesignated by section 101 of this Act), is 
amended by striking ``revenues, as determined by the Board;'' and 
inserting ``revenues;''.
    (b) Standards for Rates.--Section 10701(d)(2) of title 49, United 
States Code, is amended by striking ``revenues, as established by the 
Board under section 10704(a)(2) of this title'' and inserting 
``revenues''.
    (c) Revenue Adequacy Determinations.--Section 10704(a) of title 49, 
United States Code, is amended--
            (1) by striking ``(a)(1)'' and inserting ``(a)''; and
            (2) by striking paragraphs (2) and (3).

SEC. 107. RAIL CARRIER SERVICE QUALITY PERFORMANCE REPORTS.

    (a) In General.--Chapter 5 of subtitle I of title 49, United States 
Code, is amended by adding at the end thereof the following:

                 ``SUBCHAPTER III--PERFORMANCE REPORTS

``Sec. 541. Rail carrier service quality performance reports
    ``(a) In General.--The Secretary of Transportation shall require, 
by regulation, each rail carrier to submit a monthly report to the 
Secretary, in such uniform format as the Secretary may by regulation 
prescribe, containing information about--
            ``(1) its on-time performance;
            ``(2) its car availability deadline performance;
            ``(3) its average train speed;
            ``(4) its average terminal dwell time;
            ``(5) the number of its cars loaded (by major commodity 
        group); and
            ``(6) such other aspects of its performance as a rail 
        carrier as the Secretary may require.
    ``(b) Information Furnished to STB; the Public.--The Secretary 
shall furnish a copy of each report required under subsection (a) to 
the Surface Transportation Board no later than the next business day 
following its receipt by the Secretary, and shall make each such report 
available to the public.
    ``(c) Annual Report to the Congress.--The Secretary shall transmit 
to the Congress an annual report based upon information received by the 
Secretary under this section.
    ``(d) Definitions.--In this section, the definitions in section 
10102 apply.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 5 of 
subtitle I of title 49, United States Code, is amended by adding at the 
end thereof the following:

                 ``SUBCHAPTER III--PERFORMANCE REPORTS

``541. Rail carrier service quality performance reports.''.

                        TITLE II--MISCELLANEOUS

SEC. 201. EFFECT OF MERGERS ON LOCAL COMMUNITIES AND RAIL PASSENGER 
              TRANSPORTATION.

    Section 11324 of title 49, United States Code, is amended--
            (1) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (4);
                    (B) by striking the period at the end of paragraph 
                (5) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(6) the safety and environmental effects of the proposed 
        transaction, including the effect on local communities, and the 
        public interest in enforcing Federal, State, and local safety 
        and environmental laws; and
            ``(7) the effect of the proposed transaction on rail 
        passenger transportation.''; and
            (2) in subsection (c), by inserting ``The Board shall 
        impose conditions under this subsection to mitigate the effects 
        of the transaction on local communities when such conditions 
        are in the public interest. In imposing such conditions, the 
        Board shall consider the effect of those conditions on local 
        communities, and shall consider the public interest in the 
        enforcement of Federal, State, and local safety and 
        environmental laws.'' after ``effects are alleviated.''.

SEC. 202. USE OF FACILITIES BY COMMUTER AUTHORITIES.

    (a) Amendment.--Chapter 241 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 24105. Use of facilities by commuter authorities
    ``A commuter authority may make an agreement with a rail carrier or 
regional transportation authority to use facilities of, and have 
services provided by, the carrier or authority in the same manner and 
under the same conditions as may Amtrak under section 24308. In 
carrying out this section, the Board shall ensure that commuter 
authorities are able to provide commuter rail passenger transportation 
that develops the potential of modern rail transportation to meet the 
commuter rail passenger transportation needs of the United States.''.
    (b) Table of Sections.--The table of sections for such chapter 241 
is amended by adding at the end the following new item:

``24105. Use of facilities by commuter authorities.''.

SEC. 203. SIDE TRACKS.

    Section 10906 of title 49, United States Code, and the item 
relating thereto in the table of sections of chapter 109 of that title, 
are repealed.

SEC. 204. PUBLIC AVAILABILITY OF WATER CARRIER TARIFFS.

    Section 13702(b) of title 49, United States Code, is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) Tariff availability.--A carrier providing 
        transportation or service described in subsection (a)(1) shall 
        make its tariffs available electronically to any person, 
        without time, quantity, or other limitation, through 
        appropriate access from remote locations, and a reasonable 
        charge may be assessed for such access. No charge may be 
        assessed a Federal agency for such access.'';
            (2) in paragraph (3), by striking ``tariff filings'' and 
        inserting ``tariffs'';
            (3) in paragraph (4), by striking ``filed under this 
        subsection''; and
            (4) in paragraph (5), by striking ``filing complete tariffs 
        under this subsection'' and inserting ``changing their complete 
        electronic tariffs''.

               TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 705 of title 49, United States Code, is amended by striking 
paragraphs (1) through (3) and inserting the following:
            ``(1) $20,000,000 for fiscal year 2004;
            ``(2) $25,000,000 for fiscal year 2005; and
            ``(3) $27,000,000 for fiscal year 2006.''.

Summary: Surface Transportation Board Reform Act of 2003 - Declares as primary objectives for US rail transportation policy: (1) ensuring effective competition among rail carriers at origin and destination, (2) maintaining reasonable rates in the absence of such competition. (3) maintaining consistent and efficient rail transportation service to shippers, including the timely provision of railcars requested by them. And (4) ensuring that smaller carload and intermodal shippers are not precluded from assessing rail systems due to volume requirements. Requires a rail carrier, upon a shipper's request, to establish a rail transportation rate. Requires the Surface Transportation Board, if a shipper challenges the reasonableness of such a rate, to then determine its reasonableness without regard to specified factors. Sets forth certain requirements with respect to: (1) acceptance of requests for grain service by rail carriers. And (2) the Board's mandate to require terminal facilities owned by a rail carrier providing rail transportation to be used by another rail carrier. Requires the Board in a proceeding involving the approval of the merger or control of at least two Class I railroads to consider, among other things, at least the: (1) safety and environmental effects of the proposed transaction. And (2) the effect of such transaction on rail passenger transportation. Sets forth certain requirements with respect to: (1) the Board ensuring that commuter authorities are able to provide commuter rail passenger transportation that meets the commuter rail passenger transportation needs of the United States. And (2) water carriers making their tariffs containing the rates established for their transportation or service available electronically to any person.