II 

111TH CONGRESS 

1ST SESSION S. 2889 

To reauthorize the Surface Transportation Board, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 16, 2009 

Mr. ROCKEFELLER (for himself, Mrs. HUTCHISON, Mr. LAUTENBERG, Mr. 

THUNE, and Mr. DORGAN) introduced the following bill; which was read 

twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To reauthorize the Surface Transportation Board, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Surface Transpor5 tation Board Reauthorization Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. Amendment of title 49, United States Code. 

TITLE I—ADMINISTRATIVE PROVISIONS


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Sec. 101. Authorization of appropriations. 

Sec. 102. Board members. 

Sec. 103. Establishment of Board as independent agency. 

Sec. 104. Filing fees for certain cases. 

Sec. 105. Repeal of expired and obsolete provisions. 

Sec. 106. Department of Transportation Inspector General authority. 

Sec. 107. Railroad-Shipper Transportation Advisory Council. 

TITLE II—AUTHORITY IMPROVEMENTS

Sec. 201. Rail transportation policy update. 

Sec. 202. Office of Public Assistance, Governmental Affairs, and Compliance. 

Sec. 203. Investigative authority. 

Sec. 204. Compilation of complaints. 

Sec. 205. Exempt traffic. 

Sec. 206. Railroad service metrics and performance data. 

Sec. 207. Uniform railroad costing system. 

Sec. 208. Replacement cost study. 

Sec. 209. Rail practices study. 

Sec. 210. Rail car interchange study. 

Sec. 211. Offers of financial assistance. 

Sec. 212. Adverse abandonments. 

Sec. 213. Emergency service orders. 

Sec. 214. Rate agreements. 

Sec. 215. Miscellaneous provisions. 

TITLE III—REGULATORY REFORM

Sec. 301. Paper barriers. 

Sec. 302. Bottleneck and terminal switching rates. 

Sec. 303. Terminal access. 

Sec. 304. Service. 

Sec. 305. Arbitration of certain rail rate, practice, and common carrier service 

expectation disputes. 

Sec. 306. Maximum relief in certain rate cases. 

Sec. 307. Advance rate challenge. 

Sec. 308. Rate review timelines. 

Sec. 309. Revenue adequacy study. 

Sec. 310. Public usage of abandoned rail properties. 

Sec. 311. Transactions. 

Sec. 312. Considerations in consolidations, mergers, and acquisitions. 

Sec. 313. Railroad development. 

Sec. 314. Regulatory reform review. 

TITLE IV—TECHNICAL CORRECTIONS

Sec. 401. Technical corrections to Public Law 110–432. 

TITLE V—MISCELLANEOUS

Sec. 501. Pipeline investigative authority. 

Sec. 502. Carbon dioxide pipelines. 

Sec. 503. Effective dates; effect on existing rate prescriptions. 


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1 SEC. 3. AMENDMENT OF TITLE 49, UNITED STATES CODE. 

2 Except as otherwise expressly provided, whenever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or a repeal of, a section or other 

5 provision, the reference shall be considered to be made to 

6 a section or other provision of title 49, United States 

7 Code. 

8 TITLE I—ADMINISTRATIVE 

9 PROVISIONS 

10 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

11 Section 705 is amended by striking paragraphs (1) 

12 through (3) and inserting the following: 

13 ‘‘(1) $37,670,000 for fiscal year 2010; 

14 ‘‘(2) $44,683,000 for fiscal year 2011; 

15 ‘‘(3) $37,857,000 for fiscal year 2012; 

16 ‘‘(4) $41,190,000 for fiscal year 2013; and 

17 ‘‘(5) $44,690,000 for fiscal year 2014.’’. 

18 SEC. 102. BOARD MEMBERS. 

19 (a) MEMBERSHIP.—Section 701(b) is amended— 

20 (1) by striking ‘‘3 members,’’ in paragraph (1) 

21 and inserting ‘‘5 members,’’; 

22 (2) by striking ‘‘2 members’’ in paragraph (1) 

23 and inserting ‘‘3 members’’; and 

24 (3) by striking paragraph (2) and inserting the 

25 following: 


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1 ‘‘(2) At any given time, at least 3 members of the 

2 Board shall be individuals with professional standing and 

3 demonstrated knowledge in the fields of transportation, 

4 transportation regulation, or economic regulation, and at 

5 least 2 members shall be individuals with professional or 

6 business experience (including agriculture or other rail 

7 customers) in the private sector.’’. 

8 (b) REPEAL OF HOLDOVER LIMITATION.—Section 

9 701(b) is amended by striking ‘‘qualified, but for a period 

10 not to exceed one year.’’ in paragraph (3) and inserting 

11 ‘‘qualified.’’. 

12 (c) REPEAL OF OBSOLETE PROVISION.—Section 

13 701(b) is amended— 

14 (1) by striking paragraph (4) and redesignating 

15 paragraphs (5), (6), and (7) as paragraphs (4), (5), 

16 and (6), respectively; and 

17 (2) by striking ‘‘In the case of an individual 

18 who becomes a member of the Board pursuant to 

19 paragraph (4), or an individual’’ in paragraph (4), 

20 as redesignated, and inserting ‘‘An individual’’. 

21 SEC. 103. ESTABLISHMENT OF BOARD AS INDEPENDENT 

22 AGENCY. 

23 (a) IN GENERAL.—Section 701(a) is amended to 

24 read as follows: 


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1 ‘‘(a) ESTABLISHMENT OF BOARD.—The Surface 

2 Transportation Board is an independent establishment of 

3 the United States Government.’’. 

4 (b) CONFORMING AMENDMENTS.— 

5 (1) ADMINISTRATIVE PROVISIONS.—Section 703 

6 is amended— 

7 (A) by striking subsections (a), (c), (f), 

8 and (g); 

9 (B) by redesignating subsections (b), (d), 

10 and (e) as subsections (a), (b), and (c), respec11 tively; and 

12 (C) by adding at the end thereof the following: 

13 ‘‘(d) SUBMISSIONS AND TRANSMITTALS.—Whenever 

14 the Board submits or transmits any budget estimate, 

15 budget request, supplemental budget estimate, or other 

16 budget information, legislative recommendation, prepared 

17 testimony for congressional hearings, or comment on legis18 lation to the President or to the Office of Management 

19 and Budget, it shall concurrently transmit a copy thereof 

20 to the Senate Committee on Commerce, Science, and 

21 Transportation and the House of Representatives Com22 mittee on Transportation and Infrastructure. No officer 

23 or agency of the United States shall have any authority 

24 to require the Board to submit its budget requests or esti25 mates, legislative recommendations, prepared testimony 


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1 for congressional hearings, or comments on legislation to 

2 any officer or agency of the United States for approval, 

3 comments, or review, prior to the submission of such rec4 ommendations, testimony, or comments to the Congress.’’. 

5 (2) ADMINISTRATIVE SUPPORT.— 

6 (A) Subchapter II of chapter 7 is amended 

7 by striking section 725. 

8 (B) The table of contents for chapter 7 is 

9 amended by striking the item relating to section 

10 725. 

11 SEC. 104. FILING FEES FOR CERTAIN CASES. 

12 (a) IN GENERAL.—Subchapter II of chapter 7, as 

13 amended by section 103(b)(2)(A) of this Act, is amended 

14 by inserting after section 724 the following: 

15 ‘‘§ 725. Filing fees 

16 ‘‘The Board may not require a party to pay a filing 

17 fee to bring a formal complaint before the Board that is 

18 greater than the fee provided by section 1914 of title 28 

19 for bringing a civil action in a district court of the United 

20 States.’’. 

21 (b) CONFORMING AMENDMENT.—The table of con22 tents for chapter 7 is amended by inserting after the item 

23 relating to section 724 the following: 

‘‘725. Filing fees’’. 


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1 SEC. 105. REPEAL OF EXPIRED AND OBSOLETE PROVI2 SIONS. 

3 (a) CONTRACT LIMITATION.—Section 10709 is 

4 amended by striking subsection (h). 

5 (b) AGENT IN D.C.— 

6 (1) Section 723 is amended— 

7 (A) by striking ‘‘in the District of Colum8 bia,’’ in subsection (a); and 

9 (B) by striking ‘‘in the District of Colum10 bia’’ in subsection (c). 

11 (2) Section 724(a) is amended by striking ‘‘in 

12 the District of Columbia’’ each place it appears. 

13 SEC. 106. DEPARTMENT OF TRANSPORTATION INSPECTOR 

14 GENERAL AUTHORITY. 

15 (a) IN GENERAL.—Subchapter II of chapter 7 is 

16 amended— 

17 (1) by redesignating section 727 as section 728; 

18 and 

19 (2) by inserting after section 726 the following: 

20 ‘‘§ 727. Authority of the Inspector General 

21 ‘‘(a) IN GENERAL.—The Inspector General of the 

22 Department of Transportation, in accordance with the 

23 mission of the Inspector General to prevent and detect 

24 fraud and abuse, shall have authority to review only the 

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1 cluding internal accounting and administrative control 

2 systems, to determine compliance with applicable Federal 

3 laws, rules, and regulations. 

4 ‘‘(b) DUTIES.—In carrying out this section, the In5 spector General shall— 

6 ‘‘(1) keep the Chairman of the Board and the 

7 Senate Committee on Commerce, Science, and 

8 Transportation and the House of Representatives 

9 Committee on Transportation and Infrastructure 

10 fully and currently informed about problems relating 

11 to administration of the internal accounting and ad12 ministrative control systems of the Board; 

13 ‘‘(2) issue findings and recommendations for 

14 actions to address such problems; and 

15 ‘‘(3) report periodically to the Senate Com16 mittee on Commerce, Science, and Transportation 

17 and the House of Representatives Committee on 

18 Transportation and Infrastructure on any progress 

19 made in implementing actions to address such prob20 lems. 

21 ‘‘(c) ACCESS TO INFORMATION.—In carrying out this 

22 section, the Inspector General may exercise authorities 

23 granted to the Inspector General under subsections (a) 

24 and (b) of section 6 of the Inspector General Act of 1978 

25 (5 U.S.C. App.). 


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1 ‘‘(d) AUTHORIZATIONS OF APPROPRIATIONS.— 

2 ‘‘(1) FUNDING.—There are authorized to be ap3 propriated to the Secretary of Transportation for 

4 use by the Inspector General of the Department of 

5 Transportation such sums as may be necessary to 

6 cover expenses associated with activities pursuant to 

7 the authority exercised under this section. 

8 ‘‘(2) REIMBURSABLE AGREEMENT.—In the ab9 sence of an appropriation under this subsection for 

10 an expense referred to in paragraph (1), the Inspec11 tor General and the Board shall have a reimbursable 

12 agreement to cover such expense.’’. 

13 (b) CONFORMING AMENDMENT.—The table of con14 tents for chapter 7 is amended by striking the item relat15 ing to section 701 and inserting the following: 

‘‘727. Authority of the Inspector General 

‘‘728. Definitions’’. 

16 SEC. 107. RAILROAD-SHIPPER TRANSPORTATION ADVISORY 

17 COUNCIL. 

18 Section 726 is amended— 

19 (1) by striking ‘‘and’’ after the semicolon in 

20 subsection (a)(2)(A); 

21 (2) by striking ‘‘railroads.’’ in subsection 

22 (a)(2)(B) and inserting ‘‘railroads; and’’; 

23 (3) by adding at the end of subsection (a)(2) 

24 the following: 


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1 ‘‘(C) the ninth voting member shall be a 

2 member-at-large, and may be a representative 

3 of rail labor, a State or local transportation 

4 agency, an academic institution, or other rel5 evant entity selected by the Chairman.’’; 

6 (4) by striking the second sentence of sub7 section (a)(4); and 

8 (5) by striking the first sentence of subsection 

9 (f)(4) and inserting ‘‘The Council shall prepare an 

10 annual report concerning its activities and the re11 sults of Council efforts to resolve railroad and ship12 per issues and shall include in the report at least 

13 one recommendation to the Board stemming from 

14 the Council’s activities and any proposal regarding 

15 regulations or legislation it considers appropriate.’’. 

16 TITLE II—AUTHORITY 

17 IMPROVEMENTS 

18 SEC. 201. RAIL TRANSPORTATION POLICY UPDATE. 

19 Section 10101 is amended to read as follows: 

20 ‘‘§ 10101. Rail transportation policy 

21 ‘‘In regulating the railroad industry, it is the policy 

22 of the United States Government to balance the following 

23 objectives: 

24 ‘‘(1) To promote a safe and efficient rail trans25 portation system. 


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1 ‘‘(2) To allow, to the maximum extent possible, 

2 competition and the demand for services to establish 

3 reasonable rates for transportation by rail. 

4 ‘‘(3) To protect rail shippers and to maintain 

5 reasonable rates where there is an absence of effec6 tive competition and where rail rates provide reve7 nues that exceed the amount necessary to maintain 

8 and expand the rail system and to attract capital. 

9 ‘‘(4) To foster the continuation and expansion 

10 of a sound rail transportation system while also pre11 serving effective competition among rail carriers and 

12 with other modes to meet the needs of the public 

13 and National defense. 

14 ‘‘(5) To ensure that rail carriers can earn ade15 quate revenues to provide and sustain consistent, ef16 ficient, and reliable transportation services and to 

17 maintain and expand rail infrastructure, equipment, 

18 and technology. 

19 ‘‘(6) To prohibit predatory pricing and prac20 tices, avoid undue concentrations of market power, 

21 and to prohibit unlawful discrimination. 

22 ‘‘(7) To provide fair and expeditious regulatory 

23 decisions and ensure that the regulatory process is 

24 accessible and cost-effective for all affected parties. 


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1 ‘‘(8) To advance the environmental and energy 

2 efficiency advantages of rail transportation and en3 courage energy conservation and environmentally-re4 sponsible practices among rail carriers. 

5 ‘‘(9) To foster intercity and commuter rail pas6 senger service. 

7 ‘‘(10) To encourage fair wages and safe and 

8 suitable working conditions in the railroad indus9 try.’’. 

10 SEC. 202. OFFICE OF PUBLIC ASSISTANCE, GOVERNMENTAL 

11 AFFAIRS, AND COMPLIANCE. 

12 (a) IN GENERAL.—Subchapter II of chapter 7, as 

13 amended by section 106 of this Act, is further amended— 

14 (1) redesignating section 728 (as redesignated 

15 by section 106 of this Act) as section 729; and 

16 (2) by inserting after section 727 the following: 

17 ‘‘§ 728. Office of Public Assistance, Governmental Af18 fairs, and Compliance 

19 ‘‘(a) IN GENERAL.—The Board shall maintain an Of20 fice of Public Assistance, Governmental Affairs, and Com21 pliance with authority over public assistance and outreach, 

22 governmental affairs, and compliance. The Office shall— 

23 ‘‘(1) mediate disputes between affected parties; 

24 ‘‘(2) monitor rail carrier operations subject to 

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1 ations are in compliance with each rail carrier’s stat2 utory and regulatory responsibilities; 

3 ‘‘(3) act as the Board’s point of contact with 

4 government, public and private parties; 

5 ‘‘(4) facilitate communication among stake6 holders subject to the Board’s jurisdiction; and 

7 ‘‘(5) carry out other duties and powers pre8 scribed by the Board. 

9 ‘‘(b) CUSTOMER ADVOCATE.—The Board shall ap10 point a rail customer advocate who shall report directly 

11 to the Board. The rail customer advocate— 

12 ‘‘(1) shall review or investigate rail customer in13 quiries and complaints; 

14 ‘‘(2) shall serve as a technical advisor to a rail 

15 customer in any appropriate proceeding of the 

16 Board; 

17 ‘‘(3) shall advise the Board in certain matters, 

18 as appropriate; 

19 ‘‘(4) shall review information regarding the cost 

20 and efficiency of rail transportation; 

21 ‘‘(5) shall carry out other duties and powers 

22 prescribed by the Board; and 

23 ‘‘(6) may participate as a party in a proceeding 

24 of the Board, as appropriate. 


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1 ‘‘(c) OMBUDSMAN.—The Board may designate an 

2 employee of the Board to serve as an ombudsman of the 

3 Board in regional or local matters of Board interest, in4 cluding matters related to railroad service, mergers and 

5 acquisitions, or any other matter designated by the 

6 Board.’’. 

7 (b) CONFORMING AMENDMENT.—The table of con8 tents for chapter 7, as amended by section 106 of this 

9 Act, is amended by striking the item relating to section 

10 728 and inserting the following: 

‘‘728. Office of Public Assistance, Governmental Affairs, and Compliance 

‘‘729. Definitions’’. 

11 SEC. 203. INVESTIGATIVE AUTHORITY. 

12 (a) AUTHORITY TO INITIATE INVESTIGATION.—Sec13 tion 11701(a) is amended by striking ‘‘only on complaint.’’ 

14 and inserting ‘‘on the Board’s own initiative or on com15 plaint.’’. 

16 (b) RATE PROCEEDINGS.—Section 10704(b) is 

17 amended by striking the first sentence and inserting ‘‘The 

18 Board may begin a proceeding under subsection (a)(1) on 

19 its own initiative or upon complaint, except that a pro20 ceeding to determine the reasonableness of the level of a 

21 rate charged by a carrier may only be initiated upon com22 plaint.’’. 

23 SEC. 204. COMPILATION OF COMPLAINTS. 

24 (a) IN GENERAL.—Section 704 is amended— 


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1 (1) by striking the section heading and insert2 ing the following: 

3 ‘‘§704. Reports’’; 

4 (2) by inserting ‘‘(a) ANNUAL REPORT.—’’ be5 fore ‘‘The Board’’; and 

6 (3) by adding at the end the following: 

7 ‘‘(b) COMPLAINTS.— 

8 ‘‘(1) The Board shall establish and maintain a 

9 database of complaints received by the Board. 

10 ‘‘(2) The Board shall post a quarterly report of 

11 formal and informal service complaints received by 

12 the Board during the previous quarter that shall in13 clude— 

14 ‘‘(A) a list of the type of each complaint; 

15 ‘‘(B) the geographic region of the com16 plaint; and 

17 ‘‘(C) the resolution of the complaint, if ap18 propriate. 

19 ‘‘(3) The quarterly report may identify a com20 plainant that submitted an informal complaint only 

21 upon the written consent of the complainant. 

22 ‘‘(4) The report shall be posted on the Board’s 

23 public website.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of con2 tents for chapter 7 is amended by striking the item relat3 ing to section 704 and inserting the following: 

‘‘704. Reports’’. 

4 SEC. 205. EXEMPT TRAFFIC. 

5 (a) IN GENERAL.—Section 10502 is amended— 

6 (1) by striking ‘‘the Board, to the maximum ex7 tent consistent with this part, shall’’ in subsection 

8 (a) and inserting ‘‘the Board shall’’; and 

9 (2) by striking ‘‘title.’’ in subsection (d) and in10 serting ‘‘title or to protect shippers from the abuse 

11 of market power.’’. 

12 (b) CURRENT CLASS EXEMPTIONS.—Within 2 years 

13 after the date of enactment of this Act, the Surface Trans14 portation Board shall conclude a study of class exemptions 

15 in effect on the date of enactment of this Act to determine 

16 whether any exemptions should be revoked pursuant to 

17 section 10502(d) of title 49, United States Code. In con18 ducting the study, the Board shall provide public notice 

19 and opportunity for comment and conduct 1 or more pub20 lic hearings. Upon completion of the study, the Board 

21 shall— 

22 (1) revise any such exemptions as necessary on 

23 the basis of the Board’s findings and conclusions 

24 from the study; and 


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1 (2) establish a process for the periodic review, 

2 and revision as necessary, of class exemptions. 

3 SEC. 206. RAILROAD SERVICE METRICS AND PERFORM4 ANCE DATA. 

5 (a) REPORTING REQUIREMENTS.—Within 2 years 

6 after the date of enactment of this Act, the Surface Trans7 portation Board shall require Class I railroad carriers and 

8 other railroad carriers, as appropriate, to regularly report 

9 railroad service metrics and other performance data as 

10 prescribed by the Board. The metrics and data may in11 clude transportation cycle times and transit times and 

12 variations in such times, average train speed, and terminal 

13 dwell time by type of traffic and by geographic area and 

14 other metrics, as determined by the Board. 

15 (b) CONFIDENTIALITY.—The Board shall ensure that 

16 metrics submitted pursuant to this section and data and 

17 deemed confidential by the Board are appropriately pro18 tected. 

19 SEC. 207. UNIFORM RAILROAD COSTING SYSTEM. 

20 (a) STUDY.—Within 180 days after the date of enact21 ment of this Act, the Surface Transportation Board shall 

22 initiate a proceeding to examine the Uniform Railroad 

23 Costing System. The examination shall consider matters 

24 deemed appropriate by the Board. 


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1 (b) UPDATE.—Within 3 years after the date of enact2 ment of this Act, the Board shall update, revise, or replace 

3 the System and any related reporting of financial and op4 erating information by rail carriers as deemed appropriate 

5 by the Board based on the examination required by sub6 section (a). 

7 (c) INTERIM REPORT.—Within 18 months after the 

8 date of enactment of this Act, the Board shall submit an 

9 interim report on its progress on the proceeding to the 

10 Senate Committee on Commerce, Science, and Transpor11 tation and the House of Representatives Committee on 

12 Transportation and Infrastructure. 

13 (d) MOVEMENT-SPECIFIC ADJUSTMENTS.—Until the 

14 Board updates, revises, or replaces the system pursuant 

15 to subsection (b), or thereafter at the discretion of the 

16 Board, parties may make reasonable movement-specific 

17 adjustments to the variable costs calculated by the System 

18 in full stand-alone cost rate challenges. 

19 (e) MATERIAL CHANGE ADJUSTMENTS.—If the Sys20 tem is materially changed pursuant to subsection (b), the 

21 Board shall develop a one-time adjustment factor to be 

22 used to adjust the variable costs in rate prescriptions de23 termined under the changed procedures to equal those 

24 that would have been obtained under the prior procedures, 

25 and will apply this adjustment factor, upon request, in 


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1 rate prescriptions that are in effect as of the date of enact2 ment of this Act. 

3 SEC. 208. REPLACEMENT COST STUDY. 

4 (a) STUDY.—Within 180 days after the date of enact5 ment of this Act, the Surface Transportation Board shall 

6 initiate a study to review the use of a replacement cost 

7 approach to value the assets of rail facilities. The review 

8 shall include matters deemed appropriate by the Board, 

9 but shall include, at a minimum, consideration of the fea10 sibility, effectiveness, and appropriateness of using a re11 placement cost approach in Board proceedings where re12 placement costs may be relevant. In conducting the study, 

13 the Board shall provide public notice and opportunity for 

14 comment and conduct one or more public hearings. The 

15 Board shall complete the study within 2 years after its 

16 initiation. 

17 (b) REPORT TO CONGRESS.—Within 180 days after 

18 completion of the study, the Board shall provide a report 

19 to the Senate Committee on Commerce, Science, and 

20 Transportation and the House of Representatives Com21 mittee on Transportation and Infrastructure on its find22 ings. 

23 SEC. 209. RAIL PRACTICES STUDY. 

24 (a) STUDY.—Within 180 days after the date of enact25 ment of this Act, the Surface Transportation Board shall 


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1 initiate a study of rail practices, including switching, sur2 charges, penalties, demurrage, and accessorial charges. In 

3 conducting the study, the Board shall provide public notice 

4 and opportunity for comment and conduct one or more 

5 public hearings. 

6 (b) REPORT TO CONGRESS.—Within 180 days after 

7 completion of the study, the Board shall provide a report 

8 to the Senate Committee on Commerce, Science, and 

9 Transportation and the House of Representatives Com10 mittee on Transportation and Infrastructure on its find11 ings. 

12 SEC. 210. RAIL CAR INTERCHANGE STUDY. 

13 (a) STUDY.—Within 180 days after the date of enact14 ment of this Act, the Surface Transportation Board shall 

15 initiate a study of rail interchange rules, including car 

16 service, interchange, and other operating rules adopted 

17 and administered by the Association of American Rail18 roads and the effect of those rules on the national rail 

19 system. In conducting the study, the Board shall provide 

20 public notice and opportunity for comment and conduct 

21 one or more public hearings. 

22 (b) REPORT TO CONGRESS.—Within 180 days after 

23 completion of the study, the Board shall provide a report 

24 to the Senate Committee on Commerce, Science, and 

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1 mittee on Transportation and Infrastructure on its find2 ings. 

3 SEC. 211. OFFERS OF FINANCIAL ASSISTANCE. 

4 Section 10904 is amended— 

5 (1) by striking so much of subsection (d) as 

6 precedes paragraph (2) and inserting the following: 

7 ‘‘(d)(1) Unless the Board, within 15 days after the 

8 expiration of the 4-month period described in subsection 

9 (c), finds that one or more financially responsible persons 

10 (including a governmental authority) have offered finan11 cial assistance and established a reasonable likelihood of 

12 freight rail service, public transportation, or intercity rail 

13 passenger transportation over that part of the railroad line 

14 to be abandoned or over which all rail transportation is 

15 to be discontinued, abandonment or discontinuance may 

16 be carried out in accordance with section 10903.’’; and 

17 (2) by striking ‘‘30 days’’ in subsection 

18 (f)(1)(A) and inserting ‘‘60 days’’. 

19 SEC. 212. ADVERSE ABANDONMENTS. 

20 Section 10903 is amended— 

21 (1) by striking so much of subsection (a) as 

22 precedes paragraph (2) and inserting the following: 

23 ‘‘(a)(1) An application relating to the abandonment 

24 of or discontinuance of operation of all rail transportation 

25 over any part of a railroad line shall be filed with the 


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1 Board. An abandonment or discontinuance may be carried 

2 out only as authorized under this chapter.’’; 

3 (2) by striking ‘‘When a rail carrier providing 

4 transportation subject to the jurisdiction of the 

5 Board under this part files an application, the appli6 cation’’ in subsection (a)(2) and inserting ‘‘An appli7 cation filed under this section’’; 

8 (3) by striking ‘‘rail carrier’s’’ in subsection 

9 (a)(2)(A); 

10 (4) by striking ‘‘(C)(i)’’ in subsection (a)(2)(C) 

11 and inserting ‘‘(C) if filed by a rail carrier, (i)’’; and 

12 (5) by striking ‘‘The rail carrier shall—’’ in 

13 subsection (a)(3) and inserting ‘‘The applicant 

14 shall—’’. 

15 SEC. 213. EMERGENCY SERVICE ORDERS. 

16 Section 11123(c)(1) is amended by striking the sec17 ond sentence and inserting ‘‘Action by the Board under 

18 subsection (a) of this section may be extended in 90-day 

19 increments until the Board finds that the emergency has 

20 ended.’’. 

21 SEC. 214. RATE AGREEMENTS. 

22 (a) IN GENERAL.—Section 10706 is amended to read 

23 as follows: 


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1 ‘‘§ 10706. Rate agreements 

2 ‘‘(a) IN GENERAL.—In any proceeding in which it is 

3 alleged that a carrier was a party to an agreement, con4 spiracy, or combination in violation of the Sherman Act 

5 (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12 et 

6 seq.), sections 73 and 74 of the Wilson Tariff Act (15 

7 U.S.C. 8 and 9), or the Act of June 19, 1936 (15 U.S.C. 

8 13, 13a, 13b, and 21a) or of any similar State law, proof 

9 of an agreement, conspiracy, or combination may not be 

10 inferred from evidence that two or more rail carriers acted 

11 together with respect to an interline rate or related matter 

12 and that a party to such action took similar action with 

13 respect to a rate or related matter on another route or 

14 traffic. 

15 ‘‘(b) INADMISSIBLE EVIDENCE.—In any proceeding 

16 in which such a violation is alleged, evidence of a discus17 sion or agreement between or among such rail carrier and 

18 one or more other rail carriers, or of any rate or other 

19 action resulting from such discussion or agreement, shall 

20 not be admissible if the discussion or agreement concerned 

21 an interline movement of the rail carrier, and the discus22 sion or agreement would not, considered by itself, violate 

23 the laws referred to in subsection (a). 

24 ‘‘(c) DETERMINATION BY COURT.—In any such pro25 ceeding before a jury, the court shall determine whether 


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1 the requirements of subsection (b) are satisfied before al2 lowing the introduction of any such evidence.’’. 

3 (b) CONFORMING AMENDMENT.—The table of con4 tents for chapter 107 is amended by striking the item re5 lating to section 10706 and inserting the following: 

‘‘10706. Rate agreements’’. 

6 SEC. 215. MISCELLANEOUS PROVISIONS. 

7 (a) SIMPLIFIED PROCEDURE.—Section 10701(d)(3) 

8 is amended to read as follows: 

9 ‘‘(3) The Board shall maintain a simplified and expe10 dited method for determining the reasonableness of chal11 lenged rates in those cases in which a full stand-alone cost 

12 presentation is too costly, given the value of the case.’’. 

13 (b) EXPEDITIOUS HANDLING.—Section 10704(d) is 

14 amended by striking the first sentence and inserting ‘‘The 

15 Board shall maintain procedures to ensure expeditious 

16 handling of challenges to the reasonableness of railroad 

17 rates.’’. 

18 TITLE III—REGULATORY 

19 REFORM 

20 SEC. 301. PAPER BARRIERS. 

21 (a) INTERCHANGE COMMITMENT DEFINED.—Section 

22 10102 is amended— 

23 (1) by redesignating paragraphs (4) through 

24 (10) as paragraphs (5) through (11), respectively; 

25 and 


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1 (2) by inserting after paragraph (3) the fol2 lowing: 

3 ‘‘(4) ‘interchange commitment’ means a con4 tractual agreement between two or more rail carriers 

5 subject to the jurisdiction of the Board reached as 

6 part of a sale or lease of a rail line for which the 

7 approval of the Board is required under chapter 109 

8 or 113 of this part, which limits the incentive or the 

9 ability of the purchaser or tenant rail carrier to 

10 interchange traffic with a rail carrier other than the 

11 seller or lessor rail carrier;’’. 

12 (b) AUTHORIZING AN ACQUISITION OR OPERATION

13 TRANSACTION.— 

14 (1) Section 10901(c) is amended by adding at 

15 the end thereof ‘‘The Board may not issue a certifi16 cate authorizing an acquisition or operation trans17 action under subsection (a)(4) that includes inter18 change commitments or other mechanisms restrict19 ing the purchaser’s or tenant’s ability to interchange 

20 with any other carrier unless such commitments or 

21 mechanisms are reasonable and in the public inter22 est.’’. 

23 (2) Section 10902(c) is amended by adding at 

24 the end thereof ‘‘The Board may not issue a certifi25 cate authorizing an acquisition or operation transVerDate Nov 24 2008 04:01 Dec 17, 2009 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S2889.IS S2889

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1 action under this section that includes interchange 

2 commitments or other mechanisms restricting the 

3 purchaser’s or tenant’s ability to interchange with 

4 any other carrier unless such commitments or mech5 anisms are reasonable and in the public interest.’’. 

6 (3) Section 11323 is amended by adding at the 

7 end thereof the following: 

8 ‘‘(d) The Board may not authorize an acquisition or 

9 operation transaction under this section that includes 

10 interchange commitments or other mechanisms restricting 

11 the purchaser’s or tenant’s ability to interchange with any 

12 other carrier unless such commitments or mechanisms are 

13 reasonable and in the public interest.’’. 

14 (c) RIGHTS AND REMEDIES OF PERSONS INJURED

15 BY INTERCHANGE COMMITMENTS.—Chapter 117 is 

16 amended by adding at end thereof the following: 

17 ‘‘§ 11708. Interchange commitments: rights and rem18 edies 

19 ‘‘(a) IN GENERAL.—The Board shall maintain a 

20 process to allow persons to challenge existing interchange 

21 commitments as contrary to other provisions of this part. 

22 The Attorney General and the Secretary of Transportation 

23 may participate in such proceedings. 

24 ‘‘(b) ACCESS TO INTERCHANGE COMMITMENTS.— 

25 After the filing of a complaint or petition, the Board shall 


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1 provide affected persons access, upon request, to existing 

2 and proposed interchange commitments, subject to condi3 tions protecting the confidentiality of those agreements. 

4 ‘‘(c) REDRESS AUTHORITY.—The Board shall take 

5 appropriate action to address any conflict between an 

6 interchange commitment and the provisions of this part. 

7 ‘‘(d) PURCHASE AUTHORITY.— 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (5), if the Board finds that— 

10 ‘‘(A) an interchange commitment is found 

11 to be in violation of this part, and 

12 ‘‘(B) the purchaser or tenant rail carrier 

13 and the seller or lessor rail carrier cannot bring 

14 the interchange commitment into compliance 

15 with this part within a reasonable period of 

16 time, 

17 the Board may require, upon application by the pur18 chaser or tenant rail carrier, the elimination of the 

19 interchange commitment at a price paid by the pur20 chaser or tenant rail carrier not less than the terms 

21 established under paragraph (2). 

22 ‘‘(2) TERMS.—In the case of an interchange 

23 commitment subject to elimination under paragraph 

24 (1), the Board shall determine the fair market value 

25 of an interchange commitment by considering— 


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1 ‘‘(A) any credits, payments, expenses, or 

2 other income paid and due from the inter3 change commitment to the seller or lessor rail 

4 carrier; 

5 ‘‘(B) reasonable financial hardships of the 

6 purchaser or tenant rail carrier due to unrea7 sonable terms, if any, of the interchange agree8 ment; and 

9 ‘‘(C) other relevant factors as determined 

10 by the Board. 

11 ‘‘(3) EMPLOYEE PROTECTION.—The Board 

12 shall require protections consistent with the require13 ments of section 11326(a) for rail labor employees 

14 who are affected by an action under this subsection. 

15 ‘‘(4) PURCHASER PRECONDITIONS.—Any pur16 chaser or tenant rail carrier that buys out an inter17 change commitment under this subsection may de18 termine preconditions, such as payment of a subsidy, 

19 which must be met by shippers in order to obtain 

20 service over such lines, but such rail carrier must 

21 notify the shippers on the line of its intention to im22 pose such preconditions. 

23 ‘‘(5) EXCEPTION.—If the Board requires the 

24 elimination of an interchange commitment under 

25 paragraph (1), and the purchaser or tenant rail carVerDate Nov 24 2008 04:01 Dec 17, 2009 Jkt 089200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S2889.IS S2889

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1 rier or the seller or lessor rail carrier demonstrates 

2 that the sale or lease agreement containing the 

3 interchange commitment that contains a provision 

4 governing the manner in which the agreement may 

5 be terminated, the Board shall permit the agreement 

6 to be terminated in accordance with that provision. 

7 ‘‘(6) DEFINITIONS.—In this subsection: 

8 ‘‘(A) PURCHASER OR TENANT RAIL CAR9 RIER.—The term ‘purchaser or tenant rail car10 rier’ means a Class II or Class III rail carrier 

11 that purchases or leases a rail line that is sub12 ject to terms of an interchange commitment. 

13 ‘‘(B) SELLER OR LESSOR RAIL CARRIER.— 

14 The term ‘seller or lessor rail carrier’ means a 

15 Class I rail carrier that leased or sold a rail line 

16 subject to terms of an interchange commitment. 

17 ‘‘(e) DEADLINE FOR COMPLETION OF PRO18 CEEDING.—The Board shall complete any proceeding 

19 under this section within 180 days after the close of the 

20 administrative record.’’. 

21 (d) RAILROAD REHABILITATION AND IMPROVEMENT

22 FINANCING.— 

23 (1) Section 502(b)(1) of the Railroad Revital24 ization and Regulatory Reform Act of 1976 (45 

25 U.S.C. 822(b)(1)) is amended— 


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1 (A) by striking ‘‘or’’ after the semicolon in 

2 subparagraph (B); 

3 (B) by striking ‘‘facilities.’’ in subpara4 graph (C) and inserting ‘‘facilities; or’’; and 

5 (C) by inserting after subparagraph (C) 

6 the following: 

7 ‘‘(D) provide financial assistance to pur8 chase or lease a rail line subject to terms estab9 lished by the Surface Transportation Board 

10 under section 11708(d) of title 49, United 

11 States Code.’’. 

12 (2) Section 502 of that Act (45 U.S.C. 822) is 

13 amended— 

14 (A) by adding at the end of subsection (e) 

15 the following: 

16 ‘‘(3) INTEREST RATE REDUCTION.—Subject to 

17 the availability of funds authorized by subsection 

18 (k), the Secretary may reduce the interest to be paid 

19 on direct loans provided to a Class II or Class III 

20 rail carrier for the purpose of subsection 

21 (b)(1)(D).’’; 

22 (B) in subsection (f)(1)— 

23 (i) by inserting ‘‘or private insurance, 

24 including bond insurance,’’ after ‘‘in part 

25 credit risk’’; and 


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1 (ii) by inserting ‘‘or insurance, includ2 ing bond insurance,’’ after ‘‘authority and 

3 credit risk’’; 

4 (C) by striking ‘‘amounts.’’ in subsection 

5 (f)(3) and inserting ‘‘amounts or, at the discre6 tion of the Secretary, in a series of payments 

7 over the term of the loan. If insurance, includ8 ing bond insurance, is used, the policy premium 

9 shall be paid before the loan is disbursed.’’; and 

10 (D) by adding at the end the following: 

11 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary for pur13 poses of carrying out subsection (e)(3) such funds as may 

14 be necessary for fiscal years 2010 through 2014.’’. 

15 (e) INTERCHANGE COMMITMENT RELIEF GRANTS.— 

16 Chapter 201 is amended by adding at end thereof the fol17 lowing: 

18 ‘‘§ 20168. Interchange commitment relief grants 

19 ‘‘(a) IN GENERAL.—Upon application, the Secretary 

20 of Transportation, in consultation with the Surface Trans21 portation Board, may make grants available to assist any 

22 Class III rail carrier providing transportation subject to 

23 the jurisdiction of the Surface Transportation Board with 

24 the credit risk premium of a direct loan or loan guarantee 

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1 road Revitalization and Regulatory Reform Act of 1976 

2 (45 U.S.C. 822(b)(1)(D)). 

3 ‘‘(b) LIMITATIONS.—The Secretary of Transpor4 tation— 

5 ‘‘(1) shall award grants only to applicants with 

6 financial need; and 

7 ‘‘(2) may approve a grant under this section 

8 only as part of an application for a Railroad Reha9 bilitation and Improvement Financing loan or loan 

10 guarantee. 

11 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary of 

13 Transportation for grants under this section $37,500,000 

14 for fiscal years 2010 through 2014.’’. 

15 (f) CONFORMING AMENDMENTS.— 

16 (1) The table of contents for chapter 117 is 

17 amended by inserting after the item relating to sec18 tion 11707 the following: 

‘‘11708. Interchange commitments: rights and remedies’’. 

19 (2) The table of contents for chapter 201 is 

20 amended by inserting after the item relating to sec21 tion 20167 the following: 

‘‘20168. Interchange commitment relief grants’’. 

22 SEC. 302. BOTTLENECK AND TERMINAL SWITCHING RATES. 

23 (a) IN GENERAL.—Subchapter I of chapter 107 is 

24 amended by adding at the end thereof the following: 


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1 ‘‘§ 10710. Bottleneck and terminal switching rates 

2 ‘‘(a) A Class I rail carrier, or other rail carrier as 

3 deemed appropriate by the Board, that provides a rate for 

4 transportation between an origin and destination either as 

5 a single line movement or as part of an interline movement 

6 and over which the carrier has market dominance pursu7 ant to section 10707 shall, upon the reasonable request 

8 of a rail customer, establish a bottleneck rate for the pur9 pose of providing transportation over a bottleneck segment 

10 located between such an origin and destination pursuant 

11 to this section. If the rail carrier contends that the trans12 portation is not subject to market dominance under that 

13 section, the rail carrier shall seek an expedited determina14 tion of that issue from the Board. 

15 ‘‘(b) Such a carrier shall establish such a rate and 

16 provide service upon such request without regard to 

17 whether the shipper has made arrangements for transpor18 tation for any other part of that movement. 

19 ‘‘(c)(1) If the Board determines, under section 10707 

20 of this title, that such a rail carrier has market dominance 

21 between the origin and destination, the bottleneck rate es22 tablished for transportation pursuant to this section must 

23 be reasonable. 

24 ‘‘(2)(A) Not later than one year after the date of en25 actment of the Surface Transportation Board Reauthor26 ization Act of 2009, the Board shall establish and mainVerDate Nov 24 2008 04:01 Dec 17, 2009 Jkt 089200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S2889.IS S2889

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1 tain standards for determining whether a bottleneck rate 

2 established by a rail carrier is reasonable for purposes of 

3 this section and establish a simplified and expedited meth4 od for determining the reasonableness of challenged bottle5 neck rates. In developing those standards the Board shall 

6 consider rail carriers’ need to earn adequate revenues to 

7 provide and sustain consistent, efficient, and reliable 

8 transportation services and to maintain the national rail 

9 system. 

10 ‘‘(B) In developing the standards, the Board shall in11 clude, as part of a reasonable rate— 

12 ‘‘(i) operating costs, including any additional 

13 labor costs, of providing the requested transpor14 tation service over the bottleneck segment; 

15 ‘‘(ii) maintenance costs associated with pro16 viding the requested transportation service; 

17 ‘‘(iii) additional capital and investment costs re18 quired to perform the requested transportation serv19 ice over the bottleneck segment; 

20 ‘‘(iv) a reasonable return on embedded capital 

21 used for the requested transportation service over 

22 the bottleneck segment sufficient to meet the rail 

23 carrier’s cost of capital or, if such cost is not avail24 able, the rail industry cost of capital; 


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1 ‘‘(v) a reasonable contribution, to the extent ap2 propriate, to that carrier’s network infrastructure 

3 costs of the non-bottleneck segment of the route of4 fered by the incumbent rail carrier that is sufficient, 

5 along with other traffic on the segment, to maintain 

6 the non-bottleneck segment; and 

7 ‘‘(vi) any other contributing factors appropriate 

8 to meet the consideration in subparagraph (A). 

9 ‘‘(d) In any proceeding in which a rail customer chal10 lenges a bottleneck rate established under this section as 

11 unreasonable, the burden of proof that the rate is reason12 able shall be on the rail carrier. 

13 ‘‘(e) In this section: 

14 ‘‘(1) The term ‘bottleneck rate’ means a rate 

15 for transportation over a bottleneck segment. 

16 ‘‘(2) The term ‘bottleneck segment’ means the 

17 rail facilities, including rail facilities located entirely 

18 in terminal areas, between an origin on the carrier’s 

19 system and an interchange or between a destination 

20 on the carrier’s system and an interchange. 

21 ‘‘(3) The term ‘interchange’ means an inter22 change on such a rail carrier’s system that exists on 

23 the date of the shipper’s request for a rate covered 

24 by this section that— 


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1 ‘‘(A) is practicable and would not signifi2 cantly adversely affect such rail carrier’s net3 work efficiency; and 

4 ‘‘(B) would not significantly impair service 

5 to other customers of such rail carrier.’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) The table of contents for chapter 107 is 

8 amended by inserting after the item relating to sec9 tion 10709 the following: 

‘‘10710. Bottleneck and terminal switching rates’’. 

10 (2) Section 10705(a)(2)(A) is amended by in11 serting ‘‘10710,’’ after ‘‘under section’’. 

12 SEC. 303. TERMINAL ACCESS. 

13 Section 11102 is amended to read as follows: 

14 ‘‘§ 11102. Use of terminal facilities 

15 ‘‘(a) For a Class I rail carrier, or other rail carrier 

16 as deemed appropriate by the Board, providing transpor17 tation over which the rail carrier has market dominance 

18 pursuant to section 10707 in a terminal area, the Board 

19 may require the rail carrier to make its terminal facilities, 

20 including mainline tracks for a reasonable distance outside 

21 of that terminal, available for use by another rail carrier 

22 for such transporation. 

23 ‘‘(b) The Board may only require that a rail carrier 

24 take such action under subsection (a) if the Board finds 

25 that such action— 


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1 ‘‘(1) would be practicable and would not signifi2 cantly adversely affect the operations of the terminal 

3 or facility owned by such rail carrier or rail carriers 

4 otherwise entitled to use the terminal or facilities; 

5 ‘‘(2) would not significantly adversely affect the 

6 network efficiency of such rail carrier or rail carriers 

7 otherwise entitled to use the terminal or facilities; 

8 ‘‘(3) would not significantly impair service to 

9 other customers of such rail carrier or other rail car10 riers entitled to use the terminal or facilities; 

11 ‘‘(4) is necessary to promote the efficient oper12 ation of the railroad system and improve rail service; 

13 and 

14 ‘‘(5) is in the public interest. 

15 ‘‘(c) The rail carriers required to make facilities avail16 able or provide service pursuant to subsection (a) are re17 sponsible for establishing reasonable conditions and com18 pensation for the use of the facilities. The compensation 

19 shall be paid or adequately secured before a rail carrier 

20 may begin to use the facilities of another rail carrier. 

21 ‘‘(d)(1) Not later than one year after the date of en22 actment of the Surface Transportation Board Reauthor23 ization Act of 2009, the Board shall establish and main24 tain standards for determining whether compensation is 

25 reasonable for purposes of this section and establish a simVerDate Nov 24 2008 04:01 Dec 17, 2009 Jkt 089200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S2889.IS S2889

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1 plified and expedited method for determining the reason2 ableness of challenged compensation rates. 

3 ‘‘(2) In developing such standards, the Board shall 

4 consider rail carriers’ need to earn adequate revenues to 

5 provide and sustain consistent, efficient, and reliable 

6 transportation services and to maintain the national rail 

7 system. 

8 ‘‘(e) In developing the standards required by sub9 section (d), the Board shall include, as part of a reason10 able compensation— 

11 ‘‘(1) operating costs, including any additional 

12 labor costs, of providing the requested usage; 

13 ‘‘(2) maintenance costs associated with pro14 viding the requested usage; 

15 ‘‘(3) additional capital and investment costs re16 quired to perform the requested usage; 

17 ‘‘(4) a reasonable return on embedded capital 

18 employed for the requested usage of terminal facili19 ties sufficient to meet the rail carrier’s cost of cap20 ital or, if such cost is not available, the rail industry 

21 cost of capital; 

22 ‘‘(5) a reasonable contribution, to the extent ap23 propriate, to that carrier’s network infrastructure 

24 costs of the route beyond the terminal facilities and 

25 main line tracks made available for the requested 


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1 usage, that is sufficient, along with other traffic on 

2 the route and mainline track, to maintain the route 

3 beyond the terminal facilities and mainline tracks 

4 made available for the requested usage; and 

5 ‘‘(6) any other contributing factors appropriate 

6 to meet the considerations in subsection (d)(2). 

7 ‘‘(g) A rail carrier whose terminal facilities are re8 quired to be used by another rail carrier under this section 

9 is entitled to recover compensation from the other rail car10 rier for damages sustained as the result of compliance 

11 with the requirement in a civil action. 

12 ‘‘(h) In any proceeding in which a rail carrier chal13 lenges a compensation rate established under this section 

14 as unreasonable, the burden of proof that the rate is rea15 sonable shall be on the rail carrier whose terminal facilities 

16 are required to be used by the other rail carrier. 

17 ‘‘(i) If the Board requires that a rail carrier take such 

18 an action under subsection (a), the Board shall provide 

19 for the protection of the interests of employees affected 

20 thereby, consistent with the level of protection under sec21 tion 10902 of this title. 

22 ‘‘(j) The Board shall complete any proceeding under 

23 this section within 180 days after the closing of the evi24 dentiary record. The Board may extend the deadline in 


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1 incremental 30-day periods if it issues a decision dem2 onstrating why such an extension is necessary.’’. 

3 SEC. 304. SERVICE. 

4 Section 11101 is amended— 

5 (1) by redesignating subsection (f) as sub6 section (g); and 

7 (2) by inserting after subsection (e) the fol8 lowing: 

9 ‘‘(f) The Board shall, by regulation, require rail car10 riers to publish reasonable common carrier service expec11 tation ranges. These may include ranges for normal car 

12 cycle times, transit times, switching frequency, and other 

13 service components as determined by the Board to be ap14 propriate.’’. 

15 SEC. 305. ARBITRATION OF CERTAIN RAIL RATE, PRACTICE, 

16 AND COMMON CARRIER SERVICE EXPECTA17 TION DISPUTES. 

18 (a) IN GENERAL.—Chapter 117, as amended by sec19 tion 301, is further amended by adding at the end the 

20 following: 

21 ‘‘§ 11709. Arbitration of certain rail rate, practice, 

22 and common carrier service disputes 

23 ‘‘(a) IN GENERAL.—Not later than one year after en24 actment of the Surface Transportation Board Reauthor25 ization Act of 2009, the Board shall promulgate regulaVerDate Nov 24 2008 04:01 Dec 17, 2009 Jkt 089200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S2889.IS S2889

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1 tions to establish a binding arbitration process to resolve 

2 rail rate, practice, and common carrier service expectation 

3 complaints subject to the jurisdiction of the Board. 

4 ‘‘(b) COVERED DISPUTES.—The binding arbitration 

5 process— 

6 ‘‘(1) shall apply to disputes involving rates, 

7 practices, and common carrier service expectations 

8 subject to the jurisdiction of the Board; 

9 ‘‘(2) shall not apply to disputes to obtain the 

10 grant, denial, stay or revocation of any license, au11 thorization or exemption, to prescribe for the future 

12 any conduct, rules, or results of general, industry13 wide applicability, or to enforce labor protective con14 ditions; and 

15 ‘‘(3) shall not apply to disputes solely between 

16 2 or more rail carriers. 

17 ‘‘(c) ARBITRATION PROCEDURES.— 

18 ‘‘(1) The Board— 

19 ‘‘(A) may make the binding arbitration 

20 process available only to the relevant parties— 

21 ‘‘(i) after the filing of a formal com22 plaint; or 

23 ‘‘(ii) upon petition by a party at the 

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1 tion process provided by the Board for a 

2 complaint subject to this section; 

3 ‘‘(B) with respect to rate disputes, may 

4 make the binding arbitration process available 

5 only to the relevant parties if the rail carrier 

6 has market dominance, as determined under 

7 section 10707 of this title; and 

8 ‘‘(C) shall determine whether to pursue the 

9 binding arbitration process no later than 30 

10 days after the filing of a petition or formal 

11 complaint. 

12 ‘‘(2) Initiation of the binding arbitration proc13 ess shall preclude the Board from separately review14 ing a complaint or dispute related to the same rate, 

15 practice, or common carrier service expectation in a 

16 covered dispute involving the same parties. 

17 ‘‘(3) In resolving disputes involving the reason18 ableness of a rail carrier’s rates, the arbitrator shall 

19 consider the Board’s methodologies for setting max20 imum lawful rates, giving due consideration to the 

21 need for differential pricing to permit a rail carrier 

22 to collect adequate revenues within the meaning of 

23 section 10704(a)(2) of this title. 

24 ‘‘(4) In resolving disputes involving common 

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1 sider service expectations as published pursuant to 

2 section 11101(f). 

3 ‘‘(d) ARBITRATION DECISIONS.—Any decision 

4 reached in an arbitration process under this section 

5 shall— 

6 ‘‘(1) be consistent with subtitle IV of this title; 

7 ‘‘(2) be in writing and shall contain findings of 

8 fact and conclusions; 

9 ‘‘(3) have no precedential effect in any other or 

10 subsequent arbitration dispute; and 

11 ‘‘(4) be binding upon the parties. 

12 ‘‘(e) TIMELINES.— 

13 ‘‘(1) The arbitrator shall be selected within 14 

14 days after the Board’s decision to initiate arbitra15 tion. 

16 ‘‘(2) The evidentiary process of the arbitration 

17 process shall be completed within 90 days after the 

18 date of initiation of the arbitration process, unless a 

19 party requests an extension and the arbitrator 

20 grants it. 

21 ‘‘(3) The arbitrator shall issue a decision within 

22 30 days after the close of the evidentiary record. 

23 ‘‘(4) The Board may extend any of the 

24 timelines in this subsection upon the agreement of 

25 all parties in the dispute. 


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1 ‘‘(f) ARBITRATORS.—Arbitration under this section 

2 shall be conducted by an arbitrator selected from a roster, 

3 maintained by the Board, of persons with transportation, 

4 economic regulation, professional or business experience, 

5 including agriculture, in the private sector. If the parties 

6 cannot mutually agree on an arbitrator, the parties shall 

7 select an arbitrator from the roster by alternately striking 

8 names from the roster until only 1 name remains. The 

9 parties shall share the costs of the arbitration equally. 

10 ‘‘(g) RELIEF.— 

11 ‘‘(1) LIMITATION.—A decision under this sec12 tion may award the payment of damages or rate pre13 scriptive relief, but the value of the award may not 

14 exceed $250,000 per year and the award may not 

15 cover a total time period of more than 2 years. 

16 ‘‘(2) REVIEW.—The board shall periodically re17 view the amount in paragraph (1) and adjust it as 

18 necessary to reflect inflation. 

19 ‘‘(h) BOARD REVIEW.—If a party appeals an arbitra20 tor’s decision to the Board, the Board may review the deci21 sion under this section to determine if— 

22 ‘‘(1) the decision is consistent with subtitle IV 

23 of this title as applied by the Board; or 

24 ‘‘(2) if the award limitation in subsection (g).’’. 


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1 (b) CONFORMING AMENDMENT.—The table of con2 tents for chapter 117 is amended by adding at the end 

3 following: 

‘‘11709. Arbitration of certain rail rate, practice, and common carrier service 

disputes’’. 

4 SEC. 306. MAXIMUM RELIEF IN CERTAIN RATE CASES. 

5 (a) IN GENERAL.—The Board shall revise the max6 imum amount of rate relief available to railroad shippers 

7 in cases brought pursuant to the methods developed under 

8 section 10701(d)(3) of title 49, United States Code, as 

9 that section existed as of the date of enactment of this 

10 Act, to be as follows— 

11 (1) $1,500,000 in a rate case brought using the 

12 Board’s ‘‘three-benchmark’’ procedure; and 

13 (2) $10,000,000 in a rate case brought using 

14 the Board’s ‘‘simplified stand-alone cost’’ procedure. 

15 (b) PERIODIC REVIEW.—The Board shall periodically 

16 review the amounts established by subsection (a) and re17 vise them as appropriate. 

18 SEC. 307. ADVANCE RATE CHALLENGE. 

19 The Surface Transportation Board may consider the 

20 reasonableness of a rate quoted by a rail carrier up to 

21 1 year before the date on which the rate is to take effect. 

22 SEC. 308. RATE REVIEW TIMELINES. 

23 In stand-alone cost rate challenges, the Surface 

24 Transportation Board shall comply with the following 


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1 timelines unless it extends them, after a request from any 

2 party or in the interest of due process: 

3 (1) For discovery, 150 days after the date on 

4 which the challenge is initiated. 

5 (2) For development of the evidentiary record, 

6 155 days after that date. 

7 (3) For submission of parties’ closing briefs, 60 

8 days after that date. 

9 (4) For a final Board decision, 180 days after 

10 the date on which the parties submit closing briefs. 

11 SEC. 309. REVENUE ADEQUACY STUDY. 

12 Within 180 days after the date of enactment of this 

13 Act, the Surface Transportation Board shall initiate a 

14 study to provide further guidance on how it will apply its 

15 revenue adequacy constraint. In conducting the study the 

16 Board shall provide public notice and opportunity for com17 ment and conduct 1 or more public hearings. 

18 SEC. 310. PUBLIC USAGE OF ABANDONED RAIL PROP19 ERTIES. 

20 Section 10905 is amended— 

21 (1) by striking ‘‘other forms of mass transpor22 tation,’’ and inserting ‘‘public transportation,’’; 

23 (2) by striking ‘‘the properties may be sold,’’ 

24 and inserting ‘‘the Board may require that the prop25 erties be sold,’’; 


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1 (3) by striking ‘‘only under conditions’’ and in2 serting ‘‘pursuant to conditions, including the 

3 amount of compensation,’’; and 

4 (4) by striking ‘‘The conditions may include a 

5 prohibition on any such disposal’’ and inserting ‘‘At 

6 a minimum, the Board shall prohibit any disposal of 

7 such properties’’. 

8 SEC. 311. TRANSACTIONS. 

9 Section 11325 is amended— 

10 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’ in subsection 

11 (a) and redesignating paragraphs (1) through (3) as 

12 subparagraphs (A) through (C); 

13 (2) by adding at the end of subsection (a) the 

14 following: 

15 ‘‘(2) The Board may extend the time limits specified 

16 in subsections (b), (c), and (d) of this section when more 

17 time is necessary to complete the environmental review 

18 process.’’; and 

19 (3) by striking ‘‘a transaction other than the 

20 merger or control of at least two Class I railroads, 

21 as defined by the Board, which the Board has deter22 mined to be of regional or national transportation 

23 significance,’’ in subsection (c) and inserting ‘‘the 

24 merger or control of one Class I railroad and at 

25 least one Class II railroad, as defined by the Board, 


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1 or if it involves a merger or control transaction, 

2 other than a transaction subject to subsection (b), 

3 which the Board has determined to be of regional or 

4 national transportation significance,’’. 

5 SEC. 312. CONSIDERATIONS IN CONSOLIDATIONS, MERG6 ERS, AND ACQUISITIONS. 

7 Section 11324 is amended— 

8 (1) by striking paragraph (5) of subsection (b) 

9 and inserting the following: 

10 ‘‘(5) the effect of the proposed transaction on 

11 competition among rail carriers in the affected re12 gion or in the national rail system.’’; 

13 (2) by redesignating subsections (e) and (f) as 

14 subsections (f) and (g), respectively; 

15 (3) by striking ‘‘Board,’’ in subsection (d) and 

16 inserting ‘‘Board, subject to subsection (e)’’; and 

17 (4) by inserting after subsection (d) the fol18 lowing: 

19 ‘‘(e) In considering whether to approve, deny, or ap20 prove with conditions a transaction covered under sub21 sections (b) or (d) of this section, the Board may take 

22 into account any potentially significant effects of the 

23 transaction on— 

24 ‘‘(1) public health, safety, and the environment; 

25 and 


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1 ‘‘(2) intercity rail passenger transportation and 

2 commuter rail passenger transportation, as defined 

3 by section 24102 of this title.’’. 

4 SEC. 313. RAILROAD DEVELOPMENT. 

5 Section 10907(h) is amended to read as follows: 

6 ‘‘(h) If a purchasing carrier under this section pro7 poses to sell or abandon all or any portion of a purchased 

8 railroad line within 5 years after the date of sale under 

9 this section, such purchasing carrier shall offer the right 

10 of first refusal with respect to such line or portion thereof 

11 to the carrier which sold such line under this section. The 

12 offer shall be made at a price equal to the sum of the 

13 price paid by such purchasing carrier to such selling car14 rier for such line or portion thereof and the fair market 

15 value (less deterioration) of any improvements made, as 

16 adjusted to reflect inflation.’’. 

17 SEC. 314. REGULATORY REFORM REVIEW. 

18 (a) REVIEW.—The Comptroller General of the United 

19 States shall undertake a review of the regulatory changes 

20 made by this Act. The review shall include— 

21 (1) a review of the Surface Transportation 

22 Board’s progress in implementing the provisions of 

23 this Act; 


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1 (2) an assessment of the impact on the rail 

2 transportation system of the regulatory changes 

3 made by this Act; and 

4 (3) a specific analysis of the impact on railroad 

5 operations, rates, competition, service, revenues, 

6 maintenance, and investment resulting from the im7 plementation of sections 11102 and 10710 of title 

8 49, United States Code, as amended and added, re9 spectively, by this Act. 

10 (b) CONSULTATION.—In conducting this review, the 

11 Comptroller General shall solicit input from the railroads, 

12 railroad shippers, railroad non-profit employee labor orga13 nizations, the Federal Railroad Administration, and other 

14 entities, as appropriate. 

15 (c) REPORT TO CONGRESS.—Not later than Decem16 ber 31, 2013, the Comptroller General shall transmit a 

17 report to the Senate Committee on Commerce, Science, 

18 and Transportation and the House of Representatives 

19 Committee on Transportation and Infrastructure con20 taining the results of the review required by this section 

21 and any appropriate recommendations. 


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1 TITLE IV—TECHNICAL 

2 CORRECTIONS. 

3 SEC. 401. TECHNICAL CORRECTIONS TO PUBLIC LAW 110– 

4 432. 

5 (a) The title of Public Law 110–432 is amended by 

6 striking ‘‘Federal Railroad Safety Administration’’ and in7 serting ‘‘Federal Railroad Administration’’. 

8 (b) The table of contents in section 1(b) of the Rail 

9 Safety Improvement Act of 2008 is amended— 

10 (1) in the item relating to section 201 by strik11 ing ‘‘Pedestrian crossing safety’’ and inserting ‘‘Pe12 destrian safety at or near railroad passenger sta13 tions’’; and 

14 (2) in the item relating to section 403 by strik15 ing ‘‘Track inspection time study’’ and inserting 

16 ‘‘Study and rulemaking on track inspection time; 

17 rulemaking on concrete crossties’’. 

18 (c) Section 2(a)(1) of the Rail Safety Improvement 

19 Act of 2008 is amended by inserting a comma after ‘‘rail20 road tracks at grade’’. 

21 (d) Section 102(a)(6) of the Rail Safety Improvement 

22 Act of 2008 is amended to read as follows: 

23 ‘‘(6) Improving the safety of railroad bridges, 

24 tunnels, and related infrastructure to prevent acci25 dents, incidents, injuries, and fatalities caused by 


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1 catastrophic and other failures of such infrastruc2 ture.’’. 

3 (e) Section 108(f)(1) of the Rail Safety Improvement 

4 Act of 2008 is amended by striking ‘‘requirements for rec5 ordkeeping and reporting for Hours of Service of Railroad 

6 Employees’’ and inserting ‘‘requirements for record keep7 ing and reporting for hours of service of railroad employ8 ees’’. 

9 (f) Section 201 of the Rail Safety Improvement Act 

10 of 2008 is amended— 

11 (1) in the section heading by striking ‘‘PE12 DESTRIAN CROSSING SAFETY’’ and in13 serting ‘‘PEDESTRIAN SAFETY AT OR 

14 NEAR RAILROAD PASSENGER STA15 TIONS’’; 

16 (2) by striking ‘‘strategies and methods to pre17 vent pedestrian accidents, incidents, injuries, and fa18 talities at or near passenger stations, including’’ and 

19 inserting ‘‘strategies and methods to prevent train20 related accidents, incidents, injuries, and fatalities 

21 that involve a pedestrian at or near a railroad pas22 senger station, including’’; and 

23 (3) in paragraph (1) by striking ‘‘at railroad 

24 passenger stations’’. 


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1 (g) Section 206(a) of the Rail Safety Improvement 

2 Act of 2008 is amended by striking ‘‘Public Service An3 nouncements’’ and inserting ‘‘public service announce4 ments’’. 

5 (h) Section 403 of the Rail Safety Improvement Act 

6 of 2008 is amended— 

7 (1) in the section heading by striking 

8 ‘‘TRACK INSPECTION TIME STUDY’’ and 

9 inserting ‘‘STUDY AND RULEMAKING ON 

10 TRACK INSPECTION TIME; RULE11 MAKING ON CONCRETE CROSSTIES’’; 

12 and 

13 (2) in subsection (d)— 

14 (A) by striking ‘‘CROSS TIES’’ in the sub15 section heading and inserting ‘‘CROSSTIES’’; 

16 (B) by striking ‘‘cross ties’’ and inserting 

17 ‘‘crossties’’; and 

18 (C) in paragraph (2) by striking ‘‘cross 

19 tie’’ and inserting ‘‘crosstie’’. 

20 (i) Section 405 of the Rail Safety Improvement Act 

21 of 2008 is amended— 

22 (1) in subsection (a) by striking ‘‘cell phones’’ 

23 and inserting ‘‘cellular telephones’’; and 

24 (2) in subsection (d) by striking ‘‘Secretary of 

25 Transportation’’ and inserting ‘‘Secretary’’. 


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1 (j) Section 411(a) of the Rail Safety Improvement 

2 Act of 2008 is amended— 

3 (1) by striking ‘‘5101(a)’’ and inserting 

4 ‘‘5105(a)’’; and 

5 (2) by striking ‘‘5101(b)’’ and inserting 

6 ‘‘5105(b)’’. 

7 (k) Section 412 of the Rail Safety Improvement Act 

8 of 2008 is amended by striking ‘‘Secretary of Transpor9 tation’’ and inserting ‘‘Secretary’’. 

10 (l) Section 414 of the Rail Safety Improvement Act 

11 of 2008 is amended— 

12 (1) in paragraph (2) by striking ‘‘parts 171.8, 

13 173.115,’’ and inserting ‘‘sections 171.8, 173.115,’’; 

14 and 

15 (2) by striking ‘‘part 1520.5’’ and inserting 

16 ‘‘section 1520.5’’. 

17 (m) Section 416 of the Rail Safety Improvement Act 

18 of 2008 is amended— 

19 (1) by striking ‘‘Secretary of Transportation’’ 

20 and inserting ‘‘Secretary’’; 

21 (2) in paragraphs (3) and (4), by striking 

22 ‘‘Federal Railroad Administration’’ and inserting 

23 ‘‘Secretary’’; and 

24 (3) in paragraph (4) by striking ‘‘subsection’’ 

25 and inserting ‘‘section’’. 


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1 (n) Section 417(c) of the Rail Safety Improvement 

2 Act of 2008 is amended by striking ‘‘each railroad’’ and 

3 inserting ‘‘each railroad carrier’’. 

4 (o) Section 503 of the Rail Safety Improvement Act 

5 of 2008 is amended— 

6 (1) in subsection (a) by striking ‘‘rail acci7 dents’’ and inserting ‘‘rail passenger accidents’’; and 

8 (2) by adding at the end the following: 

9 ‘‘(d) DEFINITIONS.—In this section, the terms ‘pas10 senger’, ‘rail passenger accident’, and ‘rail passenger car11 rier’ have the meaning given those terms by section 1139 

12 of title 49, United States Code. 

13 ‘‘(e) FUNDING.—Out of funds appropriated pursuant 

14 to section 20117(a)(1)(A) of title 49, United States Code, 

15 there shall be made available to the Secretary of Transpor16 tation $500,000 for fiscal year 2009 to carry out this sec17 tion. Amounts made available pursuant to this subsection 

18 shall remain available until expended.’’. 

19 (p) Section 206(a) of the Passenger Rail Investment 

20 and Improvement Act of 2008 is amended by inserting 

21 ‘‘of this division’’ after ‘‘302’’. 

22 (q) Section 211 of the Passenger Rail Investment and 

23 Improvement Act of 2008 is amended— 

24 (1) by inserting ‘‘of this division’’ after 

25 ‘‘101(c)’’ in subsection (d); and 


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1 (2) by inserting ‘‘of this division’’ after 

2 ‘‘101(d)’’ in subsection (e). 

3 (r) Section 1139 is amended— 

4 (1) in subsection (a)(1) by striking ‘‘phone 

5 number’’ and inserting ‘‘telephone number’’; 

6 (2) in subsection (a)(2) by striking ‘‘post trau7 ma communication with families’’ and inserting 

8 ‘‘post-trauma communication with families’’; 

9 (3) in subsection (h)(1)(A) by striking ‘‘inter10 state’’; 

11 (4) in subsection (h)(2)(A)— 

12 (A) by striking ‘‘interstate or intrastate’’; 

13 and 

14 (B) by striking ‘‘26105‘‘ and inserting 

15 ‘‘26106(b)(4)’’; 

16 (5) in subsection (j)(1) by striking ‘‘(other than 

17 subsection (g))’’ and inserting ‘‘(other than sub18 sections (g) and (k))’’; and 

19 (6) in paragraphs (1) and (2) of subsection (j) 

20 by striking ‘‘railroad passenger accident’’ and insert21 ing ‘‘rail passenger accident’’. 

22 (s) Section 10909(b) is amended by striking ‘‘Clean 

23 Railroad Act of 2008,’’ and inserting ‘‘Clean Railroads 

24 Act of 2008,’’. 


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1 (t) Section 20109(c)(1) is amended by striking ‘‘the 

2 railroad shall promptly arrange’’ and inserting ‘‘the rail3 road carrier shall promptly arrange’’. 

4 (u) Section 20120(a) is amended— 

5 (1) in paragraph (2)(G), by inserting ‘‘and’’ at 

6 the end; and 

7 (2) in paragraph (5)(B) by striking ‘‘Adminis8 trative Hearing Officer or Administrative Law 

9 Judge’’ and inserting ‘‘administrative hearing officer 

10 or administrative law judge’’. 

11 (v) Section 20151(d)(1) is amended by striking ‘‘to 

12 drive around a grade crossing gate’’ and inserting ‘‘to 

13 drive through, around, or under a grade crossing gate’’. 

14 (w) Section 20152(b) is amended by striking ‘‘Class 

15 II and Class III rail carriers’’ and inserting ‘‘Class II and 

16 III railroad carriers’’. 

17 (x) Section 20156 is amended— 

18 (1) in subsection (c) by inserting a comma after 

19 ‘‘In developing its railroad safety risk reduction pro20 gram’’; and 

21 (2) in subsection (g)(1) by striking ‘‘non-profit’’ 

22 and inserting ‘‘nonprofit’’. 

23 (y) Section 20157(a)(1) is amended— 

24 (1) by striking ‘‘Class I railroad carrier’’ and 

25 inserting ‘‘Class I railroad’’; and 


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1 (2) by striking ‘‘parts 171.8, 173.115, and 

2 173.132’’ and inserting ‘‘sections 171.8, 173.115, 

3 and 173.132’’. 

4 (z) Section 20158(b)(3) is amended by striking 

5 ‘‘20156(e)(2)’’ and inserting ‘‘20156(e)’’. 

6 (aa) Section 20159 is amended by striking ‘‘the Sec7 retary’’ and inserting ‘‘the Secretary of Transportation’’. 

8 (bb) Section 20160 is amended— 

9 (1) in subsection (a)(1) by striking ‘‘or with re10 spect to’’ and inserting ‘‘with respect to’’; and 

11 (2) in subsection (b)(1)(A) by striking ‘‘or with 

12 respect to’’ and inserting ‘‘with respect to’’. 

13 (cc) Section 20162(a)(3) is amended by striking 

14 ‘‘railroad compliance with Federal standards’’ and insert15 ing ‘‘railroad carrier compliance with Federal standards’’. 

16 (dd) Section 20164(a) is amended by striking ‘‘the 

17 Railroad Safety Enhancement Act of 2008’’ and inserting 

18 ‘‘the Rail Safety Improvement Act of 2008’’. 

19 (ee) Section 21102(c)(4) is amended by re-desig20 nating subparagraphs (C) and (D) as subparagraphs (B) 

21 and (C), respectively. 

22 (ff) Section 22106(b) is amended by striking ‘‘inter23 est thereof’’ and inserting ‘‘interest thereon’’. 

24 (gg) Section 24105(e) of title 49, United States Code, 

25 is amended by striking ‘‘section 301 of the Passenger Rail 


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1 Investment and Improvement Act of 2008’’ and inserting 

2 ‘‘section 24406’’. 

3 (hh) Section 24302(a)(3) is amended by striking ‘‘5 

4 individuals’’ and inserting ‘‘4 individuals’’. 

5 (ii) Section 24316 is amended by striking subsection 

6 (g). 

7 (jj) The item relating to section 24316 in the table 

8 of contents for chapter 243 is amended by striking ‘‘to 

9 assist families of passengers’’ and inserting ‘‘to address 

10 needs of families of passengers’’. 

11 (kk) Section 24402 is amended— 

12 (1) by striking ‘‘22506’’ in subsection (d) and 

13 inserting ‘‘22706’’; 

14 (2) by striking ‘‘22504(a)(5)’’ in subsection (e) 

15 and inserting ‘‘22705(a)(5)’’; 

16 (3) by striking subsection (e) and inserting the 

17 following: 

18 ‘‘(e) AMTRAK ELIGIBILITY.—Amtrak may be the re19 cipient of a grant under this section if Amtrak has entered 

20 into a cooperative agreement with 1 or more applicants 

21 to carry out 1 or more projects on a State rail plan’s list 

22 of rail capital projects developed under section 

23 22705(a)(5) of this title. For such a grant, Amtrak may 

24 not use Federal funds authorized under section 101(a) or 

25 (c) of the Passenger Rail Investment and Improvement 


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1 Act of 2008 to fulfill the non-Federal share requirements 

2 under subsection (g) of this section.’’; 

3 (4) by striking ‘‘AND EARLY SYSTEMS WORK

4 AGREEMENTS’’ in the heading of subsection (f); 

5 (5) by striking ‘‘A metropolitan planning orga6 nization, State transportation department, or other 

7 project sponsor’’ in subsection (i)(1) and inserting 

8 ‘‘An applicant’’; and 

9 (6) by striking subsection (k) and inserting the 

10 following: 

11 ‘‘(k) SMALL CAPITAL PROJECTS.—The Secretary 

12 shall make not less than 5 percent annually available from 

13 the amounts appropriated under section 24406 beginning 

14 in fiscal year 2009 for grants for capital projects eligible 

15 under this section not exceeding $2,000,000, including 

16 costs eligible under section 209(d) of the Passenger Rail 

17 Investment and Improvement Act of 2008. For grants 

18 awarded under this subsection, the Secretary may waive 

19 requirements of this section, including State rail plan re20 quirements, as appropriate.’’. 

21 (ll) Section 24403(b)(1) is amended by striking 

22 ‘‘oversee the construction of such projects’’ and inserting 

23 ‘‘for activities to award and oversee the implementation 

24 of such projects’’. 


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1 (mm) Section 24405(b)(2) is amended by striking 

2 ‘‘43 16 U.S.C. 151’’ and inserting ‘‘45 U.S.C. 151’’. 

3 (nn) Section 24702(a) is amended by striking ‘‘not 

4 included in the national rail passenger transportation sys5 tem’’. 

6 (oo) Section 24706 is amended— 

7 (1) by striking ‘‘a discontinuance under section 

8 24704 or’’ in subsection (a)(1); 

9 (2) by striking ‘‘section 24704 or’’ in subsection 

10 (a)(2); and 

11 (3) by striking ‘‘section 24704 or’’ under sub12 section (b). 

13 (pp) Section 24709 is amended by striking ‘‘The Sec14 retary of the Treasury and the Attorney General,‘‘ and 

15 inserting ‘‘The Secretary of Homeland Security,’’. 

16 (qq) Section 24905(f)(1) is amended— 

17 (1) in subparagraph (C) by striking ‘‘freight 

18 carriers’’ and inserting ‘‘freight railroad carriers’’; 

19 and 

20 (2) in subparagraph (F) by striking ‘‘rail labor’’ 

21 and inserting ‘‘representatives of nonprofit employee 

22 labor organizations representing railroad employ23 ees’’. 

24 (rr) Section 26106(e)(4) is amended by striking 

25 ‘‘22506’’ and inserting ‘‘22706’’. 


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1 TITLE V—MISCELLANEOUS 

2 SEC. 501. PIPELINE INVESTIGATIVE AUTHORITY. 

3 Section 15901(a) is amended by striking ‘‘only on 

4 complaint.’’ and inserting ‘‘on the Board’s own initiative 

5 or on complaint.’’. 

6 SEC. 502. CARBON DIOXIDE PIPELINES. 

7 (a) IN GENERAL.—Section 15301(a) is amended by 

8 striking ‘‘gas, or oil.’’ and inserting ‘‘oil, or natural or arti9 ficial gases that are used primarily as a fuel or for other 

10 energy purposes.’’. 

11 (b) PIPELINE STUDY.—Not later than 18 months 

12 after the date of enactment of this Act, the Comptroller 

13 General shall submit a study to the Senate Committee on 

14 Commerce, Science, and Transportation and the House of 

15 Representatives Committee on Transportation and Infra16 structure that analyzes the Federal and State regulatory 

17 framework to support the development of pipelines for the 

18 purposes of the capture, transportation, and sequestration 

19 of carbon dioxide. The study shall examine the Federal 

20 permitting process for new carbon dioxide pipelines, the 

21 regulatory process for access, siting, eminent domain, and 

22 rate regulation. In conducting the study, the Comptroller 

23 General shall consult with the Surface Transportation 

24 Board, the Federal Energy Regulatory Commission, and 

25 other entities as appropriate. 


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1 SEC. 503. EFFECTIVE DATES; EFFECT ON EXISTING RATE 

2 PRESCRIPTONS. 

3 (a) IN GENERAL.—Except as provided in subsection 

4 (b), this Act shall take effect on the date of enactment. 

5 (b) SECTION 214.—The amendments made by sec6 tion 214 shall take effect 2 years after the date of enact7 ment of this Act. 

Æ 


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