[Federal Register Volume 86, Number 130 (Monday, July 12, 2021)]
[Notices]
[Pages 36590-36591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14680]


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SURFACE TRANSPORTATION BOARD

[Docket No. EP 748]


Indexing the Annual Operating Revenues of Railroads

    The Surface Transportation Board (Board) is publishing the annual 
deflator factor and inflation-adjusted railroad revenue thresholds for 
2020. The deflator factor is used by the railroads

[[Page 36591]]

to adjust their gross annual operating revenues for classification 
purposes. This indexing methodology ensures that railroads are 
classified based on real business expansion and not on the effects of 
inflation. Classification is important because it determines the extent 
to which individual railroads must comply with the Board's reporting 
requirements.
    The Board's annual deflator factor is based on the annual average 
Railroad Freight Price Index developed by the Bureau of Labor 
Statistics and is used to deflate revenues for comparison with 
established revenue thresholds.

                                         Railroad Revenue Thresholds \1\
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                              Year                                    Factor          Class I        Class II
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2016............................................................          0.5585     447,621,226      35,809,698
2017............................................................          0.5390     463,860,933      37,108,875
2018............................................................          0.5103     489,935,956      39,194,876
2019............................................................          0.4952     504,803,294      40,384,263
2020 \2\........................................................          1.0000     900,000,000      40,400,000
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DATES: The deflator factor is applicable January 1, 2020.
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    \1\ In Montana Rail Link, Inc., & Wisconsin Central Ltd., Joint 
Petition for Rulemaking with Respect to 49 CFR part 1201, 8 I.C.C.2d 
625 (1992), the Board's predecessor, the Interstate Commerce 
Commission, raised the revenue classification level for Class I 
railroads from $50 million (1978 dollars) to $250 million (1991 
dollars), effective for the reporting year beginning January 1, 
1992. The Class II threshold was also raised from $10 million (1978 
dollars) to $20 million (1991 dollars). On April 5, 2021, the Board 
issued a Final Rule in Montana Rail Link, Inc.--Petition for 
Rulemaking--Classification of Carriers, Docket No. EP 763, in which 
the revenue classification level for Class I railroads was raised 
from $250 million (1991 dollars) to $900 million (2019 dollars) 
effective for the reporting year beginning January 1, 2020. The 
Class II threshold was converted and rounded from $20 million (1991 
dollars) to $40.4 million (2019 dollars).
    \2\ The 2019 values reflect those in Indexing the Annual 
Operating Revenues of Railroads, EP 748 (STB served June 10, 2020). 
The 2020 values are based on the new thresholds established in 
Docket No. EP 763 and the deflator factor is referenced to the new 
base year of 2019. As the Railroad Freight Price Index remained the 
same from 2019 to 2020, the annual deflator factor for 2020 is 
1.0000.

FOR FURTHER INFORMATION CONTACT: Pedro Ramirez at (202) 245-0333. 
Assistance for the hearing impaired is available through the Federal 
Relay Service at (800) 877-8339.
    Board decisions and notices are available at www.stb.gov.

    Decided: July 6, 2021.

    By the Board, William Brennan, Ph.D., Chief Economist & 
Director, Office of Economics.
Eden Besera,
Clearance Clerk.
[FR Doc. 2021-14680 Filed 7-9-21; 8:45 am]
BILLING CODE 4915-01-P