By TIM ALEXANDER
Illinois Correspondent

WASHINGTON, D.C. — Despite earlier indications, the federal Surface Transportation Board (STB) did not rule by Dec. 1 on the Assoc. of American Railroads’ (AAR) request for release from their members’ common carrier obligation pertaining to toxic inhalation hazards (TIH) materials such as anhydrous ammonia and chlorine.

A ruling favorable to the AAR would mean the nation’s top four rail carriers would be exempt from hauling the materials as too hazardous and costly to transport. It would also exacerbate higher prices chemical companies and farmers pay for anhydrous and put a tighter hold on supply, according to officials with The Fertilizer Institute (TFI) and the Illinois Chemical and Fertilizer Assoc. (IFCA).

Though the STB had indicated it would rule on the AAR’s petition in November, its silence has all but guaranteed a decision will not be forthcoming during the remaining days of the Bush administration.
“We’re just waiting like everybody else,” said Pam Guffain, TFI spokesperson. “It is entirely possible that the STB will not issue any (decision). They have the option of issuing a statement or remaining silent; we hope they don’t choose to remain silent.”

The face of the STB will change with the Obama administration, as one of the board’s three commissioners has indicated they will retire early next year. Guffain said it’s likely a Democrat will be chosen to replace the departing Republican, though “it’s hard to say if that will be favorable” to a decision denying the AAR petition.
“Most of us believe the STB will wait until the new administration takes office to deal with this issue,” said Jean Payne, IFCA executive director.

The railroads are asking shippers and wholesalers to pay higher fees to offset the cost of railroads’ liability insurance if they wish to keep receiving toxic materials by rail, sources say, leading to higher prices for consumers.

Rail reform in stimulus?

House Judiciary Committee Chairman Rep. John Conyers (D-Mich.) and Judiciary Committee member Rep. Tammy Baldwin (D-Wis.) sent a letter to House Speaker Nancy Pelosi (D-Calif.) calling on Congress to protect consumers, farmers and rural communities from railroad monopoly abuses as part of any new economic stimulus package.

The two told Pelosi that consumers are paying higher prices for energy and other goods due to unrestrained railroad monopoly pricing power. They are urging legislation in any economic stimulus package, to force the railroads to adhere to the same U.S. antitrust laws as other businesses.

“Our national rail system is dominated by four major railroads that are exempt from some of the most important aspects of the nation’s antitrust laws,” the letter to Pelosi reads, in part. ‘The result is a lack of competition in freight rail transportation that is adversely affecting American consumers, as well as our nations’ agricultural and manufacturing sectors.”

The representatives are asking Congress to enact the Railroad Antitrust Enforcement Act of 2007 (HR-1650) as part of the economic stimulus package. HR-1650 was reported by a voice vote of the House Judiciary Committee without opposition earlier this year. Companion legislation, S-772, was reported last year by the Senate Judiciary Committee, also without opposition.

“As Congress continues to address the problems created in part by the lack of regulation and oversight in the largest financial institutions in America, we think the time is right to ensure antitrust compliance by our nation’s railroads,” wrote Conyers and Baldwin.
The U.S. Department of Transportation is investigating rail service at the behest of Sen. Byron Dorgan (D-N.D.), who recently called for an industry audit of transportation funding legislation. Guffain said the antitrust legislation before Congress probably didn’t factor into the STB’s decision not to rule on the common carrier issue by Dec. 1.