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Congress Passes Bill Reforming Rail Regulatory Agency

Dec 17, 2015

Another item on the American Soybean Association (ASA) priority list was achieved last week with the House passage of S. 808, the Surface Transportation Board Reauthorization Act.  The bill was previously passed by the Senate and now goes to President Barack Obama, who is expected to sign it into law. ASA supported this legislation as a significant step toward improving rail oversight and the ability of rail customers to have disputes addressed more effectively and efficiently.

As stated in this letter sent earlier this year by the ASA and 34 other agricultural and agri-business organizations, the bill provides many common-sense reforms that will improve the Surface Transportation Board (STB). These reforms include the strengthening of the independence of the STB and improving how it functions; requiring more transparency on the status of STB proceedings and the nature and disposition of complaints brought before the agency; and providing for a voluntary arbitration process to resolve disputes involving unreasonable rail rates, unreasonable rail practices and rail carriers’ common-carrier service obligations.

The bill expressly authorizes the STB to initiate an investigation of rail practices – except for rate complaints – on its own initiative, without having to wait for the filing of a formal complaint by a freight rail user or group of users, which can be a difficult and costly process.