Indiana Administrative Code › Title 105 - INDIANA DEPARTMENT OF TRANSPORTATION › Article 5 - RAILROADS › Rule 1 - Tariffs and Rates › Section 1-2 - Standards and procedures

Current through July 10, 2024
Authority: IC 8-1-1-3
Affected: IC 8-3-1-3; IC 8-3-1-8
Sec. 2.
The Staggers Act requires the states to adopt uniform
				  standards and procedures for regulating railroad rates, rules and practices
				  which are in accord with the provisions of the Act. This and the following
				  administrative rules constitute Indiana's revised approach to railroad
				  regulation. The standards and procedures included in 170 IAC 3-1.1-3 through
				  3-1.1-56
[sections 3 through 51 of this rule]
supersede any
				  previous rules or regulations to the extent that the previous rules or
				  regulations might be in conflict with them.
Indiana shall not exercise jurisdiction over general rate
				  increases, inflation-based rate increases, and fuel adjustment surcharges.
				  Further, Indiana shall not require prejustification of rate increases. These
				  points are treated in 170 IAC 3-1.1-6 through 3-1.1-16 and 170 IAC 3-1.1-21
				  through 3-1.1-37
[sections 6 through 16 of this rule and sections 21
				  through 37 of this rule]
.
The timing for rail rate changes shall be 10 days and 20 days
				  for decreases and increases, respectively. These points are covered in 170 IAC
				  3-1.1-3 through 3-1.1-5
[sections 3 through 5 of this
				  rule]
.
Indiana shall complete investigation and suspension cases
				  within five months, although a three month extension may be applied for in each
				  case. Indiana shall not suspend rates on its own motion, and shall not suspend
				  a proposed rate change unless a protestant shows that he is substantially
				  likely to prevail on the merits of his case; that without suspension the
				  proposed rate will cause him substantial injury; and that an investigation with
				  a refund and trust account provision will afford him insufficient protection.
				  Indiana shall handle refund requirements in accordance with the provisions of
				  49 U.S.C. Sec. 10707. These points are treated in 170 IAC 3-1.1-6 through
				  3-1.1-16
[sections 6 through 16 of this rule]
.
In approaching the issue of rate reasonableness, Indiana
				  shall first consider, within 90 days, whether or not the traffic in question is
				  subject to market dominance. Standards for market dominance determinations are
				  treated in 170 IAC 3-1.1-17 through 3-1.1-20
[sections 17 through 20 of
				  this rule]
. A finding that no market dominance exists shall be
				  conclusive evidence that a rate is reasonable. Should market dominance be
				  found, a reasonableness determination shall be made based on the principle of
				  railroad revenue adequacy, an evaluation of the ratio of revenue to variable
				  cost for the traffic involved, the revenue contribution of the traffic to the
				  railroad's revenue base, and national energy and transportation goals. These
				  procedures are treated in 170 IAC 3-1.1-6 through 3-1.1-16
[sections 6
				  through 16 of this rule]
.
Railroad rates may be altered in accordance with the zone of
				  rate flexibility provisions of 49 U.S.C. Sec. 10707a. These provisions are
				  incorporated in 170 IAC 3-1.1-6 through 3-1.1-16 and 170 IAC 3-1.1-21 through
				  3-1.1-37
[sections 6 through 16 of this rule and sections 21 through 37
				  of this rule]
.
To encourage shipper and railroad planning, Indiana shall
				  regulate intrastate contract rates in accordance with 49 U.S.C. Sec. 10713.
				  These points are treated in 170 IAC 3-1.1-38 through
				  3-1.1-50.1
[sections 38 through 50 of this rule]
.
Indiana adopts the applicable provisions of 49 U.S.C. Sec.
				  10741 on discrimination. Indiana shall not make a finding of discrimination if
				  differences in rates, classification, rules and practices result from
				  differences in service provided. Discrimination shall not be found to apply to
				  the following sections of 49 U.S.C.:
(1) Sec. 10713-Contract rates, other than as
				provided for in subsection (d)(2)(B);
(2) Sec. 10705a-Surcharges or
				cancellations;
(3) Sec.
				10728-Separate rates for distinct rail services;
(4) Rail rates applicable to different
				routes; or
(5) Sec. 10751-Business
				entertainment expenses.
Indiana may undertake an exemption proceeding either on its
				  own motion or upon petition from any interested party. An exemption granted for
				  a class of interstate traffic shall automatically apply in Indiana. Each
				  exemption initiative shall be considered individually, in accordance with the
				  provisions of 170 IAC 3-1.1-56
[section 51 of this
				  rule]
.
Indiana shall regulate two special classes of rates, limited
				  liability rates and rates on recyclable materials, in a manner consistent with
				  federal law, specifically 49 U.S.C. Sec. 10730, and 49 U.S.C. Sec. 10731,
				  respectively. Recyclable materials shall be transported at a revenue to
				  variable cost ratio of no more than that allowed by the Staggers Act as amended
				  from time to time. Railroads are free to publish rates under which the
				  liability of the carrier is limited to a value established by the written
				  declaration of the shipper or by written agreement between the shipper and
				  railroad. These points are treated in 170 IAC 3-1.1-6 through
				  3-1.1-16
[sections 6 through 16 of this rule]
.
To further clarify the regulatory approach which Indiana will
				  employ, the public service commission of Indiana hereby adopts the following
				  sections of the Interstate Commerce Act as amended by Staggers Rail Act of
				  1980.
Section 10505 - Exemption
Section 10701a - Standards for rates for rail carriers
Section 10704(a)(2)(4) - Adequate revenues
Section 10705 - Authority: through routes, joint
				  classifications, rates and divisions
Section 10705a - Joint rate surcharges and
				  cancellations
Section 10706 - Rate agreements; exemption from antitrust
				  laws
Section 10707 - Investigation and suspension of rates
Section 10707a - Zone of rail carrier rate flexibility
Section 10709 - Determination of market dominance
Section 10712 - Inflation-based rate increases
Section 10713 - Contracts
Section 10726 - Long and short haul transportation
Section 10730 - Rates and liability based on value
Section 10731e - Transportation of recyclable
				  materials
Section 10741 - Rate discrimination
Section 10751 - Business entertainment expenses
Section 10762 - General tariff requirements
Transferred from Department of Transportation ( 100 IAC
					 6-1-2 ) to Indiana Department of Transportation ( 105 IAC 5-1-2 ) by P.L.
					 112-1989, SECTION 5, effective July 1, 1989.