Senate Rail Bill Set to Be Introduced Tuesday

Senate Commerce, Science and Transportation Committee Chairman Jay Rockefeller (D-W.Va.) will introduce a long-awaited rail bill on Dec. 15 that expands the Surface Transportation Board and adds several provisions that could give shippers more choices of rail carriers, committee officials said.

A draft of the bipartisan bill circulated in Washington last week would enlarge STB to five members from three and increase its regulatory powers. A hearing could occur as soon as this Thursday.

Competition-related provisions require railroads to quote rates to introduce competition where it doesn’t exist today and to expand competition in terminal areas. Future sale or lease-related deals containing clauses to limit competition would be banned.

Binding arbitration was proposed for rate cases with awards under $250,000 and upper limits were set on reparations for some rate cases.

The draft lacked language about ending railroads’ anti-trust immunity, which was agreed to earlier this year by Rockefeller and Sen. Herb Kohl (D-Wis.).