94-20841. Rail General Exemption AuthorityExemption of Ferrous Recycles  

  • [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
    
    
    

Document Information

Published:
08/24/1994
Department:
Interstate Commerce Commission
Entry Type:
Uncategorized Document
Action:
Notice of proposed rulemaking.
Document Number:
94-20841
Dates:
Comments are due on September 23, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: August 24, 1994, Ex Parte No. 346 (Sub-No. 35)
CFR: (1)
49 CFR 1039.11