II 

114TH CONGRESS 

1ST SESSION S. 853 

To improve the efficiency and reliability of rail transportation by reforming 

the Surface Transportation Board, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 24, 2015 

Ms. BALDWIN introduced the following bill; which was read twice and referred 

to the Committee on Commerce, Science, and Transportation 

A BILL 

To improve the efficiency and reliability of rail transportation 

by reforming 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 ‘‘Rail Shipper Fairness 

5 Act of 2015’’. 

6 SEC. 2. IMPROVING RAIL SERVICE. 

7 (a) COMMON CARRIER OBLIGATIONS.—Section 

8 11101(a) of title 49, United States Code, is amended by 

9 inserting ‘‘, as necessary for the efficient and reliable 


smartinez on DSK4TPTVN1PROD with BILLS
2 

•S 853 IS

1 transportation based on the shipper’s reasonable service 

2 requirements,’’ after ‘‘the transportation or service’’. 

3 (b) EMERGENCY SERVICE ORDERS.—Section 

4 11123(b) of such title is amended by adding at the end 

5 the following: 

6 ‘‘(4) The Board may issue emergency service orders 

7 that cover shipments moving under contract if such ship8 ments are part of a regional service order issued in accord9 ance with this section.’’. 

10 (c) REPORTS.—Section 11145(a) of such title is 

11 amended— 

12 (1) in paragraph (1), by striking ‘‘and’’ at the 

13 end; 

14 (2) by redesignating paragraph (2) as para15 graph (3); and 

16 (3) by inserting after paragraph (1) the fol17 lowing: 

18 ‘‘(2) reports, service plans, or other documents 

19 that cover shipments moving under contract if such 

20 shipments are part of a general report, service plan, 

21 or other document that generally covers the geo22 graphic area or commodity; and’’. 

23 (d) EQUITABLE RELIEF; DAMAGES.—Section 11704 

24 of such title is amended— 


smartinez on DSK4TPTVN1PROD with BILLS
3 

•S 853 IS

1 (1) in subsection (a), by inserting ‘‘or subjected 

2 to inadequate or deficient service’’ after ‘‘injured’’; 

3 (2) by amending subsection (b) to read as fol4 lows: 

5 ‘‘(b) A rail carrier providing transportation subject 

6 to the jurisdiction of the Board under this part is liable— 

7 ‘‘(1) for damages sustained by a person as a re8 sult of an act or omission of that carrier in violation 

9 of this part; 

10 ‘‘(2) to a person for amounts charged to that 

11 person that exceed the applicable rate for the trans12 portation; and 

13 ‘‘(3) to a person for damages or equitable relief 

14 as a result of inadequate or deficient service in viola15 tion of this part.’’; and 

16 (3) in subsection (c), by adding at the end the 

17 following: 

18 ‘‘(3) The Board may order a rail carrier to pay dam19 ages or to provide equitable relief, as appropriate, to a 

20 person subjected to inadequate or deficient service as a 

21 result of a violation of this part by that carrier.’’. 

22 (e) FINES.—Section 11901 of such title is amend23 ed— 

24 (1) in subsection (a), by striking ‘‘$5,000’’ and 

25 inserting ‘‘$25,000’’; 


smartinez on DSK4TPTVN1PROD with BILLS
4 

•S 853 IS

1 (2) in subsection (c), by striking ‘‘$5,000’’ and 

2 inserting ‘‘$25,000’’; and 

3 (3) in subsection (e), by striking ‘‘$100’’ each 

4 place such term appears and inserting ‘‘$1,000’’. 

5 SEC. 3. IMPROVING RAIL COMPETITION. 

6 (a) RAIL TRANSPORTATION POLICY.—Section 10101 

7 of title 49, United States Code, is amended— 

8 (1) by redesignating paragraphs (14) and (15) 

9 as paragraphs (15) and (16), respectively; and 

10 (2) by inserting after paragraph (13) the fol11 lowing: 

12 ‘‘(14) to provide for and promote the protection 

13 of the shipping public;’’. 

14 (b) RATES.—Section 10705 of such title is amended 

15 by adding at the end the following: 

16 ‘‘(d) Shippers may obtain rates to or from any inter17 change points of 2 or more rail carriers.’’. 

18 (c) MARKET DOMINANCE.—Section 10707(b) of such 

19 title is amended by inserting ‘‘A rail carrier could have 

20 market dominance even in circumstances in which a ship21 per is served by 2 carriers.’’ after ‘‘the rate applies.’’. 

22 (d) TERMINAL FACILITIES.—Section 11102(c) of 

23 such title is amended to read as follows: 

24 ‘‘(c)(1) Except as provided in paragraph (2), the 

25 Board shall require a Class 1 rail carrier to enter into 


smartinez on DSK4TPTVN1PROD with BILLS
5 

•S 853 IS

1 a competitive switching agreement if a shipper or receiver, 

2 or a group of shippers or receivers, files a petition with 

3 the Board that demonstrates, to the satisfaction of the 

4 Board, that— 

5 ‘‘(A) the facilities of the shipper or receiver for 

6 whom such switching is sought are served by rail 

7 only by a single, Class I rail carrier; and 

8 ‘‘(B) subject to paragraph (4), there is, or can 

9 be a working interchange between— 

10 ‘‘(i) the Class I rail carrier serving the 

11 shipper or receiver for whom such switching is 

12 sought; and 

13 ‘‘(ii) another rail carrier within a reason14 able distance of the facilities of such shipper or 

15 receiver. 

16 ‘‘(2) Competitive switching may not be imposed 

17 under this subsection if— 

18 ‘‘(A) either rail carrier between which such 

19 switching is to be established demonstrates that the 

20 proposed switching is not feasible or is unsafe; or 

21 ‘‘(B) the presence of reciprocal switching will 

22 unduly restrict the ability of a rail carrier to serve 

23 its own shippers. 


smartinez on DSK4TPTVN1PROD with BILLS
6 

•S 853 IS

1 ‘‘(3) The requirement set forth in paragraph (1)(B) 

2 is satisfied if each facility of the shipper or receiver for 

3 which competitive switching is sought is— 

4 ‘‘(A) within the boundaries of a terminal of the 

5 Class I rail carrier; or 

6 ‘‘(B) within a 100-mile radius of an interchange 

7 between the Class I rail carrier and another carrier 

8 at which rail cars are regularly switched.’’. 

9 SEC. 4. IMPROVING REASONABLE RATE STANDARDS. 

10 (a) STAND-ALONE COST CASES.—Section 10702 of 

11 title 49, United States Code, is amended— 

12 (1) by inserting ‘‘(a)’’ before ‘‘A rail carrier’’; 

13 and 

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

15 ‘‘(b)(1) The Board shall prohibit a rail carrier pro16 viding transportation subject to the jurisdiction of the 

17 Board under this part to charge the challenged rate for 

18 providing such transportation to rail customers while a 

19 maximum reasonable rate case brought by such rail cus20 tomers is pending before the Board. 

21 ‘‘(2) A rail customer may file a maximum reasonable 

22 rate case with the Board after the date that is 2 years 

23 before the date on which a common carrier shipment rate 

24 is anticipated to begin. 


smartinez on DSK4TPTVN1PROD with BILLS
7 

•S 853 IS

1 ‘‘(3) The Board may not use cross-subsidy tests in 

2 deciding stand-alone cost cases. 

3 ‘‘(4) The Board shall use market-based revenue divi4 sions methodology in deciding stand-alone cost cases. 

5 ‘‘(5) In a stand-alone cost case, if the Board deter6 mines that the rail carrier is revenue adequate, the rail 

7 carrier shall have the burden of proof to demonstrate that 

8 the railroad carrier is charging a reasonable rate.’’. 

9 (b) MARKET DOMINANCE.—Section 10707 of such 

10 title, as amended by section 3(c), is further amended— 

11 (1) in subsection (d)(1)(B), by adding at the 

12 end the following ‘‘A shipper may introduce move13 ment-specific Uniform Rail Costing System cost cal14 culations.’’; and 

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

16 ‘‘(e) In making a determination under this section, 

17 the Board may not utilize a qualitative analysis in which 

18 the Board attempts to identify any feasible transportation 

19 alternatives that could be used by the shipper.’’. 

20 SEC. 5. REVENUE ADEQUACY. 

21 (a) ELIMINATION OF REVENUE ADEQUACY TEST.— 

22 Section 10704(a) of title 49, United States Code, is 

23 amended by striking paragraph (3). 


smartinez on DSK4TPTVN1PROD with BILLS
8 

•S 853 IS

1 (b) RAILROAD COST OF CAPITAL.—Section 10704(a) 

2 of such title, as amended by subsection (a), is further 

3 amended by adding at the end the following: 

4 ‘‘(3) In calculating a rail carrier’s cost of capital, the 

5 Board shall multiply the value of the capital by the sum 

6 of— 

7 ‘‘(A) the current annual yield on a 10-year 

8 United States Treasury Bond; and 

9 ‘‘(B) a prospective market risk premium, which 

10 shall not exceed 5 percent per year.’’. 

11 SEC. 6. SURFACE TRANSPORTATION BOARD STRUCTURAL 

12 CHANGES. 

13 Chapter 7 of title 49, United States Code, is amend14 ed— 

15 (1) in section 701(b)— 

16 (A) in paragraph (1)— 

17 (i) by striking ‘‘3 members’’ and in18 serting ‘‘5 members’’; and 

19 (ii) by striking ‘‘2 members’’ and in20 serting ‘‘3 members’’; and 

21 (B) in paragraph (2)— 

22 (i) by striking ‘‘time, at least 2 mem23 bers’’ and inserting the following: ‘‘time— 

24 ‘‘(A) at least 2 members’’; and 


smartinez on DSK4TPTVN1PROD with BILLS
9 

•S 853 IS

1 (ii) by striking ‘‘regulation, and at 

2 least one member’’ and inserting the fol3 lowing: ‘‘regulation; 

4 ‘‘(B) at least 2 members shall have a back5 ground in shipping or consumer advocacy; and 

6 ‘‘(C) at least 1 member’’; and 

7 (2) in section 703, by amending subsection (b) 

8 to read as follows: 

9 ‘‘(b) MEETINGS.— 

10 ‘‘(1) REGULAR MEETINGS.—The Board shall 

11 meet regularly. 

12 ‘‘(2) OPEN MEETINGS.—The Board shall be 

13 deemed to be an agency of the United States Gov14 ernment and subject to the provisions set forth in 

15 section 552b of title 5.’’. 

Æ 


smartinez on DSK4TPTVN1PROD with BILLS