1 / 26

Freight Railroads: Focus of 2008 Legislation

Freight Railroads: Focus of 2008 Legislation. Freight Railroads – Class One. The Public Generally Supports Railroad Transportation Congressional legislation very active in 2008 Neighbor & Community Views increasingly high profile. Consumers United for Rail Equity – “CURE”.

niyati
Download Presentation

Freight Railroads: Focus of 2008 Legislation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Freight Railroads: Focus of 2008 Legislation

  2. Freight Railroads – Class One • The Public Generally Supports Railroad Transportation • Congressional legislation very active in 2008 • Neighbor & Community Views increasingly high profile

  3. Consumers United for Rail Equity – “CURE” • Members include key groups of industries who rely on railroad transportation • Cite fundamental problems with railroads 25 years after Staggers Act partial de-regulation • Call for Congressional action to modify railroad regulation and business structure

  4. CURE has Three Main Constituent Groups • Grain transport – western states/ legislators; rates and service • Coal transport – rural electric cooperatives/mid-west legislators; rates and service, track access • Chemical transport – big U.S. chemical companies; rates, track access and safety

  5. Competition, not re-regulation? • CURE claim poor service AND high rates • Equate post-1980 mergers with a loss of competition (back to the future?) • Claim STB not effective enough to foster railroad transportation competition • Seek reduced transportation costs through legislation • Wedge issues for railroads and their unions

  6. 2006 Midterm Elections Democrats Take House Two Dozen Seats Gained in House Wednesday, November 8, 2006; Page A01

  7. Committee control changes Hearings scheduled, legislation moves • Fuel surcharge hearing • Rail labor injuries and intimidation hearing • Railroad competition legislation • Railroad Anti-trust legislation • Railroad safety reauthorization: “Christmas Tree” of work rules, Fed Preemption, PTC, and more

  8. Rail Safety H.R. 2095/S. 1889 • Passed by the House 10/17/07 (377-38) • Phase down use of Limbo Time – 40/30/10 hrs./month • PTC – Installed by 2014 • Open Switch Detectors • Compelling indicator to crews • DOT rule must be complete in 1-year • Banned the use of camp cars

  9. Senate Bill – railroad safety • Passed by the Senate 8/1/08 by UC Hours of Service 276 hour monthly limit including limbo 10 hours undisturbed rest 6 consecutive days on/48 hrs. off 7 days on/3 off if provide by CBA Camp cars - FRA regulation tightens

  10. Catalyst in closing days of Session • CA commuter train/freight train collision Sept 22 • Senator Feinstein calls for action • PTC front and center

  11. Congress: PTC is the solution • High cost to protection ratio: look at some other U.S. fatality trends • Pressure to implement regardless of cost benefits • Legislation does not get into many important details • Funded how?

  12. Final Railroad Safety Bill • Rail industry negotiated with rail labor • More like the Senate bill: • Phase down limbo time 40/30 hours/month • 6&2 and 7&3 • 276 hours monthly limit including limbo time • PTC 2015 – passenger & TIH mainlines with traffic greater than 5 million gross ton miles • Open switch detector provision dropped • Camp cars – retrofit/replace by end of 2009 • Signed into law 10/16/08

  13. Re-regulation S.953/H.R. 2125 • Potentially degrades the reforms of the 1980 Staggers Act • H.R. 2125 (Oberstar) ended up with 56 co-sponsors • S. 953 (Rockefeller) ended up with 11 co-sponsors • Hearings held in House/Senate committees; no further action taken

  14. Anti-Trust H.R. 1650/S.722 • Repeal limited anti-trust exemptions currently subject to STB regulatory jurisdiction • Seen as a stalking horse for more comprehensive re-regulation • S.722 (Kohl) reported from Senate Judiciary • Senate CST objects to S.722 • H.R.1650 (Baldwin) approved by House Judiciary; T&I and Energy Committees waive jurisdiction • Chairman Conyers presses for House floor consideration, but tight legislative schedule stymied effort

  15. The FRA, the STB and Justice? • Legislation would broaden railroad regulation • A dual regulatory scheme?

  16. STB responsive to issues • Reduces rate case filing fees • Targets reduction in time to resolve filings • DuPont wins a case as a “small shipper” • H.R. 6707 – “TRACS” – the STB cites existing authority but lack of resources

  17. Other Legislative Battles • Defeated H.R.6707 (Oberstar-Bean) requiring STB to give greater consideration to the public interest in evaluating mergers involving Class I and Class II/Class III railroads; targets the CN/EJE transaction; NIMBY-ism • Defeated chemical & utility industry efforts to advance re-regulation goals through NCSL, CSG, NAM, and COC.

  18. Investment Tax Credit (ITC) H.R.2116/S.1125 • 25% tax credit for the cost of new qualified freight rail infrastructure property & qualified locomotive property • H.R. 2116 (Meek) has 79 co-sponsors; S.1125 (Conrad) has 18 co-sponsors. • Obtained substantial congressional support despite best efforts of shippers & building trades to stop us • Go-21 helped secure co-sponsors • Expanded coalition includes National Retail Federation, COC, NCSL, Council of State Governments, AASHTO, and ARTBA

  19. 2008 Elections Obama Administration • Secretary of Transportation = ? Increased Democratic majorities • House: before 236-199/after 256-175-4? • Senate: before 50-49-1/after 58+? • Reshuffling of committee chairs • Appropriations Chair Byrd steps down • Rockefeller replaces Inouye as Senate Commerce Committee Chairman?

  20. In the State Houses • Labor legislation on agreement issues • Labor driven safety and security hearings • Community and neighbor legislation • Eminent domain legislation • State DEP action against solid waste transfer on railroad property

  21. 2009 Legislative Challenges • Railroad Competition “Oberstar bill” • Railroad Anti-trust bill • Investment Tax Credit (ITC) • “TEA” reauthorization • Public-Private Partnerships – the scramble • CREATE • Heartland Corridor • Crescent Corridor • Climate change legislation

  22. Hearings spur Federal research and reports • GAO 2007 report on rates & competition • Follow up study on railroad competition delivered by STB consultants Christensen, November 2008 • Both sides claim victory – “we were right” • Important points for consideration by all

  23. The STB/Christensen Study – We ARE right! • Revenue adequacy must be long term • Railroads use differential pricing to cover their total costs • Guard against debilitating changes to the industry structure in the name of creating competition • Start practicing your elevator speeches

  24. Take away • Differential pricing pays the costs • The system is safe and healthy and it attracts investors • But it’s not enough to point out a lack of capacity – railroads must increase investment

  25. On Our Side • The AAR • Go-21 Growth Options for the 21st Century • ASLRRA • You

  26. Thank you New England Railroad Club November 20, 2008 Scott Muir Norfolk Southern

More Related