WASHINGTON—A bill to reauthorize the Surface Transportation Board will provide more protection for the rights of workers and consumers. Rep. James L. Oberstar (Minn.), ranking Democrat on the House Transportation Committee, introduced the bill Thursday as the House of Representatives wrapped up its legislative activity for the year.

The Surface Transportation Board Reform Act of 1999 (H.R. 3446) authorizes a total of $58 million for the board for Fiscal Years 2000 through 2002.

The bill also limits the so-called "cramdown" exemption, which allows carriers to abrogate worker contracts following a merger approved by the STB. The bill narrows the scope of federal, state and local laws a railroad can bypass to carry out the approved merger, and limits the exemption to one year after the acquisition.

The bill further clarifies labor protection for freight railroad employees. The bill makes clear that workers adversely affected by a merger will get six full years of protection, as they were guaranteed before the passage of the ICC Termination Act of 1995.

Oberstar said the bill provides needed reforms made evident by recent railroad mergers approved by the STB.

"First, the Board approved a huge merger between the Union Pacific and Southern Pacific railroads. Shippers were promised dramatically improved service. Instead, a year later, they got the biggest meltdown in rail service in history," Oberstar said. "Last year, the board approved another huge restructuring of the industry when it allowed Conrail to be divided between Norfolk Southern and CSX. After spending a year planning the transaction so as to minimize adverse consequences, the transaction became effective on June 1^st, and service almost instantly collapsed."

Oberstar said the mergers revealed weaknesses in the STB’s exercise of its oversight authority.

"Clearly, the STB failed to analyze these rail transactions adequately to avoid such service disasters. Because of the reduced competition that has resulted, the board needs to provide more aggressive support to shippers who come to the board for relief from high rates and poor service," Oberstar said. "This bill directs the STB to move in that direction."

In brief, the bill

• Addresses the "bottleneck" issue by allowing shippers to challenge the reasonableness of the rate charged on particular route segments;
• Simplifies the rate protest process for small captive grain shippers;
• Provides for mandatory terminal access and reciprocal switching rights under certain circumstances;
• Simplifies standards for determining market dominance;
• Requires carriers to submit monthly service quality performance reports to the Department of Transportation;
• Requires the board to impose conditions on mergers it approves to mitigate the effects of the merger on local communities;
• Gives commuter rail authorities guaranteed access to freight railroads’ rights of way;
• Provides the STB the authority to regulate construction and use of rail lines and facilities throughout the country; and
• Requires water carriers in domestic offshore trade to Alaska, Hawaii, Puerto Rico and Guam to make their tariffs available over the Internet instead of filing paper with the STB.