STB proposes annulment of commodity exemptions

The U.S. Surface Transportation Board is seeking public comment on its proposal to revoke existing class exemptions from railroad transportation regulations on certain commodities.    The U.S. Surface Transportation Board (STB) is seeking public comment on its proposal to revoke existing class exemptions from railroad transportation regulations for certain commodities.
   The proposal is part of the STB’s ongoing examination of current rail regulations as they relate to recent changes and advancements in the industry. This is the first time the federal regulatory body has proposed to revoke any commodity exemptions since their adoption nearly 25 years ago.
   Specifically, STB is proposing to revoke exemptions on crushed or broken stone and rip rap, a type of loose stone used to maintain surface stability; hydraulic cement; coke produced from coal; primary iron or steel products; and iron or steel scrap, wastes, or tailings.
   “A number of factors suggest the transportation markets for these commodities have changed significantly since the exemptions were adopted, in ways that point toward an increased likelihood of railroad market power,” STB said in a statement. “The Board seeks additional information about these markets and comments addressing whether regulatory oversight is warranted.”
   In addition, STB asked interested parties to file comments regarding the possible revocation of other commodity class exemptions.
   “Today’s decision is an important step towards improving shippers’ access to the Board’s processes and addressing whether the Board’s regulatory approaches need modification in light of current market conditions,” STB Chairman Daniel R. Elliott said. “These are important issues and I look forward to the public comments addressing the proposed exemption revocations. My central goal is for all stakeholders to have an appropriate, meaningful path to the Board.”