Notice2021-14680
Indexing the Annual Operating Revenues of Railroads
Primary source
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Published
July 12, 2021
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 86 Issue 130 (Monday, July 12, 2021)</title>
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[Federal Register Volume 86, Number 130 (Monday, July 12, 2021)]
[Notices]
[Pages 36590-36591]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14680]
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SURFACE TRANSPORTATION BOARD
[Docket No. EP 748]
Indexing the Annual Operating Revenues of Railroads
The Surface Transportation Board (Board) is publishing the annual
deflator factor and inflation-adjusted railroad revenue thresholds for
2020. The deflator factor is used by the railroads
[[Page 36591]]
to adjust their gross annual operating revenues for classification
purposes. This indexing methodology ensures that railroads are
classified based on real business expansion and not on the effects of
inflation. Classification is important because it determines the extent
to which individual railroads must comply with the Board's reporting
requirements.
The Board's annual deflator factor is based on the annual average
Railroad Freight Price Index developed by the Bureau of Labor
Statistics and is used to deflate revenues for comparison with
established revenue thresholds.
Railroad Revenue Thresholds \1\
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Year Factor Class I Class II
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2016............................................................ 0.5585 447,621,226 35,809,698
2017............................................................ 0.5390 463,860,933 37,108,875
2018............................................................ 0.5103 489,935,956 39,194,876
2019............................................................ 0.4952 504,803,294 40,384,263
2020 \2\........................................................ 1.0000 900,000,000 40,400,000
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DATES: The deflator factor is applicable January 1, 2020.
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\1\ In Montana Rail Link, Inc., & Wisconsin Central Ltd., Joint
Petition for Rulemaking with Respect to 49 CFR part 1201, 8 I.C.C.2d
625 (1992), the Board's predecessor, the Interstate Commerce
Commission, raised the revenue classification level for Class I
railroads from $50 million (1978 dollars) to $250 million (1991
dollars), effective for the reporting year beginning January 1,
1992. The Class II threshold was also raised from $10 million (1978
dollars) to $20 million (1991 dollars). On April 5, 2021, the Board
issued a Final Rule in Montana Rail Link, Inc.--Petition for
Rulemaking--Classification of Carriers, Docket No. EP 763, in which
the revenue classification level for Class I railroads was raised
from $250 million (1991 dollars) to $900 million (2019 dollars)
effective for the reporting year beginning January 1, 2020. The
Class II threshold was converted and rounded from $20 million (1991
dollars) to $40.4 million (2019 dollars).
\2\ The 2019 values reflect those in Indexing the Annual
Operating Revenues of Railroads, EP 748 (STB served June 10, 2020).
The 2020 values are based on the new thresholds established in
Docket No. EP 763 and the deflator factor is referenced to the new
base year of 2019. As the Railroad Freight Price Index remained the
same from 2019 to 2020, the annual deflator factor for 2020 is
1.0000.
FOR FURTHER INFORMATION CONTACT: Pedro Ramirez at (202) 245-0333.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.
Decided: July 6, 2021.
By the Board, William Brennan, Ph.D., Chief Economist &
Director, Office of Economics.
Eden Besera,
Clearance Clerk.
[FR Doc. 2021-14680 Filed 7-9-21; 8:45 am]
BILLING CODE 4915-01-P
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