NCGA Comments on Surface Transportation Board Proposed Rate Case Revisions (10-25-06)
The National Corn Growers Association (NCGA), as part of the Agricultural Transportation Working Group, submitted comments today to the Surface Transportation Board (STB) reiterating the need for simplified and improved small rail rate case procedures.
The comments were in response to the STB rulemaking on proposed revisions to its small rail rate case guidelines.
NCGA joined a broad coalition of shipper groups to obtain professional analysis of proposed eligibility standards and how those standards would affect access to rate relief; evaluation of the cost of litigating proposed STB standards, in particular the “simplified” rate case approach; and alternative proposals that could be suggested to the STB.
According to the organizations, unless the STB drastically revises its recent proposal, agricultural shippers will continue to be shut out of an opportunity to challenge unreasonable rates with the federal regulatory agency charged to provide such an opportunity. This is one of the most significant rulemakings for agriculture to come before the STB in many years.
“While the STB has strong desire to see expedited, simple, clear and cost-effective rules for cases that cannot practicably utilize full stand-alone costs (SAC) procedures, unfortunately, these proposals are not a solution,” the comments said. “The adoption of the STB’s proposal would make a currently poor situation much worse and would effectively foreclose all possible small case rate challenges in the future.”
Since the passage of the Staggers Rail Act of 1980, the STB has been charged with implementing a process for shippers to challenge unreasonable rates in “small cases.” In 1998, the STB developed a standard for small rate cases that has never been used by agricultural shippers because of its uncertainty and cost.
The STB, in an attempt to further refine its processes for shippers to obtain rate relief, issued a new proposal that paradoxically increases the cost, complexity and uncertainty of bringing a small rate case. Under the STB’s new proposal, the cost of presenting a challenge is so high that bringing an agricultural rate case remains prohibitive.
“Reliable, cost-effective transportation is important to agriculture, producers and rural America,” said NCGA President Ken McCauley. “Corn growers are pleased to see the Surface Transportation Board initiate these proceedings, and it must keep working to seek a more reasonable complaint procedure .”
To read the comments in their entirety, please click on:
|
KEY ISSUES
