(The following story by John Boyd appeared on the Journal of Commerce website on March 17, 2010.)
WASHINGTON, D.C. — Sen. John Thune, R-S.D., said he would like to see the emerging rail regulation overhaul put a “more robust” Surface Transportation Board in charge of rail competition issues, rather than Congress stripping railroads of their limited antitrust exemption.
How to add promised language that changes railroads’ antitrust treatment has become a significant issue in recent months, after the Commerce, Science and Transportation Committee on Dec. 17 passed a rail competition bill without it.
“Seems to me there’s a better way of addressing this through the Surface Transportation Board, and so I hope we can do it that way,” Thune said.
As the top Republican on the subcommittee that handles rail issues, Thune is a key sponsor of the bill that would reauthorize and expand the STB while setting new rules on rail services and rate competition that lean toward shipper goals.
When the commerce panel passed its bill, Chairman Jay Rockefeller, D-W.Va., said he had to leave off the antitrust piece to get the legislation through his committee. However, Rockefeller said he opposes leaving railroads treated differently from other companies under antitrust law, and would craft an antitrust provision before sending the bill to the full Senate.
Since then, railroad executives have sharply criticized the bill, saying it goes too far to toughen federal regulations and would threaten their profits. Many railroad leaders say the undecided antitrust language remains a major concern for them, as it could potentially open them to legal challenges over issues now handled just by the STB.
“I think an empowered, more robust STB can certainly handle these issues in a way that doesn’t involve more of the litigation, and more, that could come with the other approach,” Thune told The Journal of Commerce
He said the Senate’s 2010 legislative calendar is quickly filling up with legislation other than the STB bill, but “I hope that it still can be voted on this year.”
Meantime, talks continue with all the parties involved, Thune added.
“The railroads have some concerns about the final product – or at least the product to date. But we continue to visit, to discuss with them and with the shipper community, how best to resolve them.”