House reauthorizes Surface Transportation Board

A bipartisan bill reauthorizing and reforming the Surface Transportation Board (STB) was unanimously passed by the House on Thursday in an attempt to improve the efficiency, effectiveness and accountability of the board in regulating the U.S. freight rail industry.

“The STB plays an important role in ensuring a balanced, fair regulatory environment for both the railroads and its customers, but the agency hasn’t been reauthorized or reformed since it was created,” Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) said. “This bill makes common sense improvements to increase the efficiency of the agency’s processes and decision-making, and ensures that the successful U.S. freight rail transportation system is not smothered by unnecessary regulatory burdens.”

The Surface Transportation Board Reauthorization Act of 2015, S. 808, passed by the Senate with unanimous consent earlier this year, was passed by voice vote in the House and now goes to the president.

“These much-needed reforms give the STB the ability to be responsive and effective as they work with our railroads to ensure safe and efficient transportation for goods and passengers nationwide,” Railroads, Pipelines, and Hazardous Materials Subcommittee Chairman Jeff Denham (R-CA) said.

Established in 1996 following the termination of the Interstate Commerce Commission, the STB is tasked with resolving railroad rate and service disputes, as well as reviewing proposed railroad mergers and other duties. S. 808 is the first reauthorization of the STB and marks the first update to railroad economic regulation in 20 years.

Rather than re-regulate the rail industry, which was deregulated in 1980 to stave off looming bankruptcy, the bill provides reforms that reduce litigation costs for small businesses, gives more certainty to railroads and shippers in the decision-making timeline and process, and provides more efficient options for service dispute resolutions.