2016 was a busy year at the Surface Transportation Board. Our primary focus has been implementation of the STB Reauthorization Act of 2015. I am pleased to report significant progress on the key initiatives of the law, which required the agency to examine or modify a number of its regulatory processes to make the agency more accessible and responsive to stakeholders. Since reauthorization, we have, among other things, issued final rules modifying our arbitration process as well as instituting final rules for the board’s new investigative authority.
Along the same theme, I have focused heavily on improving accessibility to the board’s processes for all stakeholders. The board has proposed streamlined rate reasonableness rules specifically for small shippers. In addition, our independent consultants finalized a study examining our rate case procedures. Upon releasing the study, the board held a public roundtable discussion with leading economists to further our review of the board’s rate case methodologies.
We also proposed new rules for granting reciprocal switching, a statutory remedy that was enacted by Congress but has been virtually dormant due to prior agency precedent. The proposed rules mirror the language of the statute, which allows the STB to grant reciprocal switching only when it is practicable and in the public interest or necessary for competitive rail service.
Finally, as an outgrowth of the rail service issues of 2013-2014, the board issued final rules establishing the permanent collection of service data. Although the industry is at a much better place from an operational standpoint, we will continue to watch service levels to ensure a fluid system.