The independent U.S. federal agency responsible for the economic regulation of the nation's freight railroads, including jurisdiction over rates, mergers, acquisitions, line sales, and abandonments. The STB was created by the ICC Termination Act of 1995 as the successor to the Interstate Commerce Commission. It adjudicates shipper complaints about unreasonable rates and competitive access.
The U.S. Department of Transportation agency responsible for railroad safety regulation and enforcement, including track standards, equipment inspection, operating rules, and hazardous materials transportation. The FRA conducts safety inspections, investigates accidents, and issues emergency orders when immediate safety threats exist. It also administers federal rail investment programs.
A proceeding before the Surface Transportation Board in which a shipper challenges a railroad rate as unreasonably high, typically under the Simplified Standards for Rail Rate Cases or the Full Stand-Alone Cost methodology. Rate cases are complex, expensive, and time-consuming, often involving detailed economic and engineering analyses. A successful rate case can result in a refund of overcharges and a maximum reasonable rate going forward.
A formal filing by a shipper with the Surface Transportation Board alleging that a railroad's rate or practice is unreasonable, discriminatory, or otherwise unlawful. Complaints can seek rate relief, damages, or changes in railroad practices. The complaint process provides shippers a regulatory remedy when commercial negotiations fail.
A regulatory standard under which a railroad is considered revenue adequate if its revenues are sufficient to cover all costs and earn a return on investment equal to that of a company of comparable risk. The STB annually determines whether each Class I railroad is revenue adequate. Revenue adequacy status affects a railroad's ability to defend rates in STB proceedings.
STB regulations that define the circumstances under which a shipper may petition for a mandatory interchange arrangement to gain access to a competing railroad. The rules set standards for when competitive access relief is warranted and what conditions apply. Competitive access rulemaking has been contentious, with railroads and shippers advocating opposing positions.