[Federal Register Volume 59, Number 163 (Wednesday, August 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20841]
[[Page Unknown]]
[Federal Register: August 24, 1994]
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INTERSTATE COMMERCE COMMISSION
49 CFR Part 1039
[Ex Parte No. 346 (Sub-No. 35)]
Rail General Exemption Authority--Exemption of Ferrous Recycles
AGENCY: Interstate Commerce Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is considering whether to exempt from
regulation the rail transportation of ferrous recyclables, Standard
Transportation Commodity Code (STCC) Nos. 40211 (iron and steel scrap),
33119 (blast furnace, open hearth, rolling mill or coke oven products,
NEC), and 34912 (steel shipping containers). If these commodities are
exempted, they will be added to the list of exempt commodities in the
Commission's regulations, and the exemption will be subject to the
conditions and limitations provided therein.
DATES: Comments are due on September 23, 1994.
ADDRESSES: Participants must send an original and 10 copies of their
statement referring to Ex Parte No. 346 (Sub-No. 35) to: Office of the
Secretary, Case Control Branch, Interstate Commerce Commission,
Washington, DC 20423.
FOR FURTHER INFORMATION CONTACT:Beryl Gordon, (202) 927-5610. [TDD for
hearing impaired: (202) 927-5721.].
SUPPLEMENTARY INFORMATION: The Association of American Railroads (AAR),
numerous member railroads in their individual capacities,\1\ and the
Institute of Scrap Recycling Industries, Inc. (ISRI) (collectively,
petitioners) have petitioned the Commission to institute a proceeding
to consider the exemption from regulation under 49 U.S.C. 10505 of the
rail transportation of ferrous recycles, i.e., STCC Nos. 40211 (iron
and steel scrap), 33119 (blast furnace, open hearth, rolling mill, or
coke over products, NEC), and 34912 (steel shipping containers).\2\ The
proposed exemption would be effected by adding these ferrous
recyclables to the list of exempt commodities set forth at 49 CFR
1039.11(a) and adding conforming language at the beginning of the
second full paragraph of paragraph (a), as set forth below. The
proposed exemption would encompass all provisions of Subtitle IV of
Title 49 of the United States Code, subject to the exceptions set forth
in 49 CFR 1039.11, for all rail carriers nationwide. As discussed
below, we are instituting this rulemaking.
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\1\These railroads are: Burlington Northern Railroad Co.,
Chicago and North Western Railway Company, Consolidated Rail Corp.,
CSX Transportation, Inc., Norfolk Southern Railway Co., The
Atchison, Topeka and Santa Fe Railway Company, Soo Line, Inc.,
Southern Pacific Transportation Co., and Union Pacific Railroad Co.
\2\Accompanying the proposal are supporting verified statements
from AAR, AAR member railroad Consolidated Rail Corp., and ISRI
members Columbia Iron and Metal Co. and David J. Joseph Co.
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Section 10505 requires us to grant an exemption when we find that:
(1) regulation is not necessary to carry out the national rail
transportation policy of 49 U.S.C. 10101a (NRTP); and (2) either (a)
the transaction or service is of limited scope, or (b) regulation is
not needed to protect shippers from an abuse market power. Petitioners
assert that their proposal meets these criteria.
Petitioners propose the subject commodities for exemption for the
following reasons:
(1) Continued regulation of these commodities is not necessary to
carry out the NRTP at 49 U.S.C. 10101a. According to petitioners,
although the transportation of this traffic is highly competitive, an
exemption would further increase competition for this traffic and
promote numerous NRTP goals, such as (a) increased competition for the
traffic, (b) safe and efficient transportation, (c) reduced
administrative burdens for both rail carriers and shippers, and (d)
increased ratemaking flexibility and financial stability for rail
carriers (including, by eliminating tariff and contract filing
requirements, the ability to respond more quickly to market changes and
shipper demand for resulting rates and services).
Current competition is reflected in statistics on rates and
revenues from rail transportation of ferrous recyclables. These
allegedly demonstrate that market share, rates, and revenue for this
traffic have all declined in real dollar terms over the last 10-15
years.\3\
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\3\Petitioners claim that rail market share has dropped since
1977 from a high of 54.1% to 34% in 1990. Petitioners state that
industry revenue per ton-mile for ferrous recyclables declined from
8 cents in 1981 to 4.9 cents in 1991, a 39% decrease.
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(2) The involved rail transportation is limited in scope. The
transportation of ferrous recyclables is a small percentage of total
rail transportation.\4\
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\4\Petitioners state that ferrous recyclable traffic comprised
only 1.3% of total rail carloads of traffic in the United States in
1991.
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(3) This traffic is subject to significant intermodal, intramodal,
and geographic competition, making regulation unnecessary to protect
shippers from market power abuse. According to petitioners, this
competition in the transportation market is enhanced by competition in
the market for the commodities themselves.
We invite comments and data concerning the proposal. Persons
submitting comments should address whether the exemption of the subject
commodities meets the statutory criteria of 49 U.S.C. 10505. Persons
also may address the appropriateness of the exemption for any of these
commodities on an individual basis.
Environmental and Energy Considerations
We preliminarily conclude that, if an exemption is granted, it will
not significantly affect either the quality of the human environment or
the conservation of energy resources. We invite comments in this area.
Initial Regulatory Flexibility Analysis
Pursuant to 5 U.S.C. 605(b), we preliminarily conclude that an
exemption would not have a significant economic impact on a substantial
number of small entities. No new regulatory requirements would be
imposed, directly or indirectly, on such entities. The impact, if any,
would be to reduce the amount of paperwork, tariff filing, and related
activities. An exemption, if granted, would be based on a finding that
(a) the transportation at issue is of limited scope, and/or (b)
regulation of this transportation is not necessary to protect shippers
(including small shippers) from abuse of market power. See 49 U.S.C.
10505(a). Such findings, if made, would indicate that a significant
number of small entities would not be substantially affected. We invite
comments in this area.
List of Subjects in 49 CFR Part 1039
Agricultural commodities, Internmodal transportation, Manufactured
commodities, Railroads.
Decided: August 16, 1994.
By the Commission, Chairman McDonald, Vice Chairman Phillips,
and Commissioners Simmons and Morgan. Commissioner Simmons dissented
in part with a separate expression.
Vernon A. Williams,
Acting Secretary.
For the reasons set forth in the preamble, title 49, chapter X,
part 1039 of the Code of Federal Regulations is proposed to be amended
as follows:
PART 1039--EXEMPTIONS
1. The authority citation for part 1039 would continue to read as
follows:
Authority: 49 U.S.C. 10321 and 10505; and 5 U.S.C. 553.
2. In Sec. 1039.11, paragraph (a), the following new entries are
added at the end of the table, and the text following the table is
amended in the first sentence by removing the word ``Also'' and adding
in its place ``Other than the specific recyclable commodities listed
above, also''.
Sec. 1039.11 Miscellaneous commodities exemptions.
(a) * * *
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STCC
No. STCC tariff Commodity
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*****
33119.. 6001-V, eff. 1- Blast furnance, open hearth, rolling mill or
1-94. coke oven products, NEC.
34912.. ......do....... Steel shipping containers.
40211.. ......do....... Iron and steel scrap.
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[FR Doc. 94-20841 Filed 8-23-94; 8:45 am]
BILLING CODE 7035-01-P-M