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FEDERALhearing transcript

Senate Hearing on Freight Rail Reform and STB Oversight

Original title: FREIGHT RAIL REFORM: IMPLEMENTATION OF THE SURFACE TRANSPORTATION BOARD REAUTHORIZATION ACT OF 2015

January 1, 2017

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The Frame

What this does

The hearing evaluates how federal oversight changes affect the cost and reliability of shipping goods by rail, which is critical for South Dakota's agricultural and energy sectors that rely on rail to reach national markets.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Agricultural producers

These businesses rely on rail to transport products to market and are impacted by rail efficiency and shipping costs.

Energy suppliers

These companies depend on freight rail to transport fuel and energy resources.

Surface Transportation Board

The agency is subject to new regulatory authorities and structural changes mandated by the 2015 Act.

What changed

Last recorded activity January 1, 2017.

What's next

Next step not available in the current record.

Summary

This Senate Commerce Committee field hearing examined the implementation of the 2015 Surface Transportation Board (STB) Act. The hearing focused on how the new law addresses long-standing issues with rail efficiency, rate dispute resolution, and the agency's ability to investigate systemic problems.

Key Facts

  • The Surface Transportation Board (STB) had not been reauthorized or reformed since its creation in 1996 prior to the 2015 Act.
  • Approximately 40 percent of U.S. freight ton-miles are moved by rail.
  • South Dakota originates three times as many rail cars as it terminates, making the state highly dependent on rail for economic growth.
  • Prior to the 2015 Act, the STB lacked authority to proactively investigate issues of regional or national significance.
  • Rate disputes before the STB previously cost over $5 million and took more than three years to resolve.
  • The STB's previous three-member structure hindered communication between members due to quorum requirements.
  • The hearing was held on August 11, 2016, in Sioux Falls, South Dakota.

Frequently Asked Questions

What is the Surface Transportation Board?
It is the federal agency responsible for overseeing the efficiency and regulation of the U.S. freight rail network.
Why was the 2015 Reauthorization Act necessary?
The agency had not been updated since 1996, and existing processes for resolving rate disputes were too slow and expensive, while the agency lacked the power to investigate systemic rail issues.

Why It Matters

The hearing evaluates how federal oversight changes affect the cost and reliability of shipping goods by rail, which is critical for South Dakota's agricultural and energy sectors that rely on rail to reach national markets.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Shift to Proactive Oversight

The 2015 Act marked a transition for the STB from a reactive body to one with the authority to proactively investigate systemic rail issues.

Connected Entities

personDan MackVice President, CHS Inc.Map →
personJohn ThuneU.S. Senator from South Dakota and Chairman of the CommitteeMap →
personThomas J. HellerCEO, Missouri River Energy ServicesMap →
personDaniel R. Elliott IIIChairman, Surface Transportation BoardMap →
organizationSurface Transportation BoardFederal agency responsible for overseeing freight rail efficiencyMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance60
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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