Board overview | |
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Formed | January 1, 1996 |
Preceding Board | |
Jurisdiction | United States Government |
Headquarters | Washington, D.C. |
Board executive |
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Parent department | Independent agency |
Key document | |
Website | www |
The Surface Transportation Board (STB) of the United States is an independent federal agency that serves as an adjudicatory board. The board was created in 1996 following the abolition of the Interstate Commerce Commission (ICC) and absorbed regulatory powers relevant to the railroad industry previously under the ICC's purview. [1]
The STB has broad economic regulatory oversight of railroads in the United States, including matters related to the construction, acquisition, abandonment of rail lines, carrier mergers, and interchange of traffic between carriers and some passenger rail matters.
The board also has jurisdiction over the "intercity bus industry, non-energy pipelines, household goods carriers’ tariffs, and rate regulation of non-contiguous domestic water transportation". [2]
The board comprises five members nominated by the President, each subject to Senate confirmation. Since 2024, Democrat Robert E. Primus has served as chair of the STB.
The STB was established on January 1, 1996 to assume some of the regulatory functions that had been administered by the Interstate Commerce Commission when the ICC was abolished. [1] Other ICC regulatory functions were either eliminated or transferred to the Federal Motor Carrier Safety Administration or the Bureau of Transportation Statistics within the Department of Transportation.
Since its founding, various legislation pertaining to the STB's functions has been introduced in Congress. In 2015, the Surface Transportation Board Reauthorization Act was passed, which expanded the Board from three to five members. [3] The passage of the legislation transformed the STB, which had been "administratively aligned" with the Department of Transportation while still decisionally independent, into an entirely independent federal agency.
In response to concerns regarding increasing corporate concentration in the rail industry, the STB has considered proposals to encourage rail competition. In 2016, a proposal was made to establish "reciprocal switching rules" to require railroads to create arrangements where shippers could access competing carriers instead of other options. In 2022, Chairman Oberman supported reciprocal switching rules, arguing they would address shippers' complaints and encourage industry competition. [4]
The STB has the authority to regulate rates, service, construction, acquisition, and abandonment of rail lines, carrier mergers, and traffic interchanges.
The STB also has oversight of pipeline carriers, intercity bus carriers, moving van companies, trucking companies involved in collective activities, and water carriers engaged in non-contiguous domestic trade. The Board has broad discretion, through its exemption authority from federal, state, and local laws, to implement transportation regulation.
The Board provides a forum for resolving surface transportation disputes and other matters within its jurisdiction. It has the authority to limit or remove regulatory requirements where appropriate. [5]
The Board comprises five members nominated by the President and confirmed by the Senate for five-year terms. The President designates the Board's chairman from among the members. As its chief executive, the chairman coordinates and organizes the agency's work and acts as its representative in legislative matters and relations with other governmental bodies.
The current chairman is Democrat Robert E. Primus, who was nominated to the STB by President Donald Trump in 2020, confirmed by the Senate, and sworn in in January 2021. Primus was chosen by President Joe Biden to serve as chairman of the STB on May 11, 2024, succeeding Martin J. Oberman, who had been Chairman between January 2021 and May 2024.
The vice chairman represents the Board and assumes the chairman's duties as appropriate. Additionally, the vice chairman oversees matters involving the admission, discipline, and disbarment of non-attorney Board practitioners. The current vice chairman is Karen Hedlund, appointed on January 9, 2023, succeeding Michelle A. Schultz in the board's annual rotation of that position.
Name | Position | Party | Sworn in | Term expires |
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Robert E. Primus | Chair [6] | Democratic | January 7, 2021 [7] | December 31, 2027 |
Karen Hedlund | Vice Chair [8] | Democratic | January 3, 2022 [7] | December 31, 2025 |
Patrick Fuchs | Board Member | Republican | January 17, 2019 [7] | January 14, 2029 |
Michelle A. Schultz | Board Member | Republican | January 11, 2021 [7] | January 11, 2026 |
Vacant | Board Member | December 31, 2028 |
Assisting the Board in carrying out its responsibilities is a staff of 117 (FY2018) with experience in economics, law, accounting, transportation analysis, finance, and administration. [11]
The Office of Public Assistance, Governmental Affairs, and Compliance is the agency's principal point of contact with Congress, state and local governments, the media, industry stakeholders, and the general public. This office includes the Rail Customer and Public Assistance Program, where Board staff solves problems ranging from a simple answer to a telephone inquiry to lengthy informal dispute resolution efforts between railroads and shippers. [13]
The Office of Economics analyzes rate cases, conducts economic and financial analyses of the railroad industry, and audits Class I railroads.
The Office of Economics, Environmental Analysis and Administration is responsible for undertaking environmental reviews of proposed STB actions in accordance with the National Environmental Policy Act and other environmental laws and making environmental recommendations to the STB.
The Office of the Managing Director handles administrative matters such as personnel, budget, and information technology.
The Office of Proceedings (OP) is primarily responsible for developing the public record in formal cases (or proceedings) filed with the STB, making recommendations regarding the resolution of issues presented in those cases, and preparing the decisions issued by the Board.
The Office of Proceedings is a legal office consisting almost entirely of attorneys and paralegal specialists responsible for the majority of the cases at the STB. The office applies the Interstate Commerce Act, as amended by the ICC Termination Act of 1995, as well as the Board's regulations. [14] In carrying out its responsibilities, the Office of Proceedings obtains and applies any necessary input from economic, financial, operational, environmental, and other legal staff experts throughout the agency.
The Office of Proceedings includes a clearance unit responsible for tabulating votes on STB cases and recording the official outcome of those votes and a recordations unit that enters data about a filing's primary and secondary documents into the STB Recordations database, which is accessible to the public on the STB web site.
The Office of the General Counsel (OGC) responds to questions on various legal issues. However, its primary mission is to defend the STB's decisions in court and assess the defensibility of agency decisions that might be challenged in court. Unlike most Federal agencies, the STB has independent litigating authority (49 U.S.C. § 703(d)). Under the Hobbs Act, when an STB order or decision is challenged in the U.S. Court of Appeals, both the STB (represented by the agency's attorneys) and the United States (represented by U.S. Department of Justice (DOJ) attorneys) must be named as "respondents" (defendants), and both have authority to appear in court in such cases. [15] STB and DOJ attorneys jointly defend the agency's decisions, with the STB's attorneys preparing written briefs (in consultation with DOJ attorneys) and presenting oral arguments on behalf of the Federal Government.
In performing defensibility assessments, OGC attorneys meet with other STB staff to discuss cases before draft decisions are prepared. Defensibility assessments are crucial to issuing sound choices that are less likely to be challenged and, if challenged, are more likely to be upheld.
The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies. Congress expanded ICC authority to regulate other modes of commerce beginning in 1906. Throughout the 20th century, several of ICC's authorities were transferred to other federal agencies. The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board.
The Elkins Act is a 1903 United States federal law that amended the Interstate Commerce Act of 1887. The Act authorized the Interstate Commerce Commission (ICC) to impose heavy fines on railroads that offered rebates, and upon the shippers that accepted these rebates. The railroad companies were not permitted to offer rebates. Railroad corporations, their officers, and their employees, were all made liable for discriminatory practices.
The United States Department of Transportation is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the president of the United States and is a member of the president's Cabinet.
The Staggers Rail Act of 1980 is a United States federal law that deregulated the American railroad industry to a significant extent, and it replaced the regulatory structure that had existed since the Interstate Commerce Act of 1887.
The Railroad Revitalization and Regulatory Reform Act of 1976, often called the "4R Act," is a United States federal law that established the basic outlines of regulatory reform in the railroad industry and provided transitional operating funds following the 1970 bankruptcy of Penn Central Transportation Company. The law approved the "Final System Plan" for the newly created Conrail and authorized acquisition of Northeast Corridor tracks and facilities by Amtrak.
In the United States government, independent agencies are agencies that exist outside the federal executive departments and the Executive Office of the President. In a narrower sense, the term refers only to those independent agencies that, while considered part of the executive branch, have regulatory or rulemaking authority and are insulated from presidential control, usually because the president's power to dismiss the agency head or a member is limited.
Railroad classes are the system by which freight railroads are designated in the United States. Railroads are assigned to Class I, II or III according to annual revenue criteria originally set by the Surface Transportation Board in 1992. With annual adjustments for inflation, the 2019 thresholds were US$504,803,294 for Class I carriers and US$40,384,263 for Class II carriers.
The Office of Economics, Environmental Analysis, and Administration (OEEAA) is a part of the Surface Transportation Board of the United States Department of Transportation, a United States government agency. It does work related to railroads.
The Midland Railway was a heritage railroad operating 16 miles of line in Franklin County and Douglas County in Kansas between Ottawa, Kansas and Baldwin City, Kansas.
Pan Am Railways, Inc. (PAR) is a subsidiary of CSX Corporation that operates Class II regional railroads covering northern New England from Mattawamkeag, Maine, to Rotterdam Junction, New York. Pan Am Railways is primarily made up of former Class II regional railroads such as Boston and Maine Corporation, Maine Central Railroad Company, Portland Terminal Company, and Springfield Terminal Railway Company. It was formerly known as Guilford Transportation Industries and was also known as Guilford Rail System. Guilford bought the name, colors, and logo of Pan American World Airways in 1998.
The Railroad Commission of Texas is the state agency that regulates the oil and gas industry, gas utilities, pipeline safety, safety in the liquefied petroleum gas industry, and surface coal and uranium mining. Despite its name, it ceased regulating railroads in 2005, when the last of the rail functions were transferred to the Texas Department of Transportation.
The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates. It also required that railroads publicize shipping rates and prohibited short haul or long haul fare discrimination, a form of price discrimination against smaller markets, particularly farmers in Western or Southern Territory compared to the official Eastern states. The Act created a federal regulatory agency, the Interstate Commerce Commission (ICC), which it charged with monitoring railroads to ensure that they complied with the new regulations.
The Warren and Saline River Railroad is an 8-mile (13 km) short-line railroad connecting Cloquet, Arkansas to the Arkansas Midland Railroad at Warren. It has always been independent of larger carriers, and was previously owned by the Potlatch Corporation, a lumber company, until January 2010. WSR is currently operated by the Arkansas Midland Railroad and was sold by Pinsly Railroad Company to sold to Genesee & Wyoming Industries in 2014.
United States v. Students Challenging Regulatory Agency Procedures (SCRAP), 412 U.S. 669 (1973), was a landmark decision of the United States Supreme Court in which the Court held that the members of SCRAP—five law students from the George Washington University Law School—had standing to sue under Article III of the Constitution to challenge a nationwide railroad freight rate increase approved by the Interstate Commerce Commission (ICC). SCRAP was the first full-court consideration of the National Environmental Policy Act (NEPA). The Court also reversed the lower court decision that an injunction should be issued at the suspension stage of the ICC rate proceeding. The standing decision has retained its place as the high mark in the Court's standing jurisprudence.
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Sarah Keys v. Carolina Coach Company, 64 MCC 769 (1955) is a landmark civil rights case in the United States in which the Interstate Commerce Commission, in response to a bus segregation complaint filed in 1953 by a Women's Army Corps (WAC) private named Sarah Louise Keys, broke with its historic adherence to the Plessy v. Ferguson separate but equal doctrine and interpreted the non-discrimination language of the Interstate Commerce Act of 1887 as banning the segregation of black passengers in buses traveling across state lines.
The Youngstown and Southeastern Railroad is a short-line railroad subsidiary of Midwest & Bluegrass Rail that operates freight trains between Youngstown, Ohio and Darlington, Pennsylvania, United States. The line is owned by the Columbiana County Port Authority, leased to the Eastern States Railroad, which is owned by the line's primary shipper, and contracted out to the YSRR. Freight is interchanged with CSX Transportation and the Norfolk Southern Railway at the Youngstown end.
Martin Jay Oberman is an American government official and attorney who served as a member of the Surface Transportation Board (STB) from 2019 to 2024 and as STB chair from 2021 to 2024. He previously served as the chair of the board of directors at Metra, the Chicago commuter rail system.
Karen Jean Hedlund is an American attorney and governmental advisor who has served as a member of the Surface Transportation Board since January 2022.
Transportation in the United States is governed by laws and regulations of the federal government. The Department of Transportation is responsible for carrying out federal transportation policy, and the Department of Homeland Security is responsible for security in transportation.