1370 Ontario St. - Mezzanine, Cleveland, Ohio 44113 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Secretary-Treasurers
Information
Merchandise
Communications
FELA
Events
Links
User Info

STB seeks public comment on 'safe harbor' provision of rail fuel surcharge rules

(Source: Surface Transportation Board press release, May 29, 2014)

WASHINGTON, D.C. The Surface Transportation Board today instituted an Advance Notice of Proposed Rulemaking proceeding to provide interested persons the opportunity to comment on whether the "safe harbor" provision of the Board's current rail fuel surcharge rules should be modified or removed.

In its January 26, 2007 decision in the proceeding titled Rail Fuel Surcharges, EP 661, the Board prohibited rate-based fuel surcharges as an unreasonable practice and established as a "safe harbor" an index upon which railroads could rely to measure changes in fuel costs for purposes of a fuel surcharge program. In a later complaint proceeding, Cargill, Inc. v. BNSF Ry. (Cargill), a shipper challenged BNSF Railway's fuel surcharge program. A critical issue in Cargill was the manner in which BNSF's incremental fuel costs should be measured. The Board utilized the safe harbor index in Cargill but indicated that it would revisit the safe harbor in light of the issues raised in the case.

The agency is now seeking public comment on whether the safe harbor provision of its fuel surcharge rules should be modified or removed. In particular, the Board seeks comments on whether:

--A growing spread between a railroad's internal fuel costs and the safe harbor index, as observed in Cargill, is likely an aberration;

--Problems are associated with the Board's use of the index as a safe harbor in judging the reasonableness of fuel surcharge programs;

--Problems with the safe harbor could be addressed through its modification; and

--Problems with the safe harbor outweigh its benefits.

The Board also seeks comments on any other matter that may bear on whether the safe harbor should be modified or removed.

The Board's Advance Notice of Proposed Rulemaking in the proceeding titled Rail Fuel Surcharges (Safe Harbor), Docket No. EP 661 (Sub-No.2), may be viewed and downloaded at the Board's website, www.stb.dot.gov, under "E-LIBRARY / Decisions & Notices / 05/29/14 ".

Friday, May 30, 2014

Like us on Facebook at
Facebook.com/BLETNational

© 1997-2014 Brotherhood of Locomotive Engineers and Trainmen

 


Safety Task Force Hotline
800-306-5414

Decertification Helpline
800-393-2716

DAILY HEADLINES

Teamster Nation: Get the latest updates in the War on Workers
CSX and Canadian Pacific Railway call off merger talks
Kansas City Southern reports record quarterly revenue and carloads in 3Q 2014
Kansas City Southern touts solid growth, but stock slips further behind rivals
FRA gives Caltrain green light to start PTC implementation
Rail industry racing to keep up with demand
With cold approaching, Upper Midwest utilities keep eye on coal stockpiles, rail service
FRA directs Metra to improve safety culture, technology
Union Pacific boosts rail inspections in high-hazard mountain passes
Sioux City to get rail car service plant, 250 jobs
FRA develops first multi-state planning study for high-performance rail in the Southwest
Teen sues after Amtrak bans travel because of nut allergy
Credit for military service under the Railroad Retirement Act

More Headlines


Enter your e-mail address to receive BLET news updates.

Subscribe  Unsubscribe