Notice2022-13845

Indexing the Annual Operating Revenues of Railroads

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
June 29, 2022
Effective
January 1, 2021

Issuing agencies

Surface Transportation Board

Full Text

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<title>Federal Register, Volume 87 Issue 124 (Wednesday, June 29, 2022)</title>
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[Federal Register Volume 87, Number 124 (Wednesday, June 29, 2022)]
[Notices]
[Page 38808]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13845]



[[Page 38808]]

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SURFACE TRANSPORTATION BOARD

[Docket No. EP 748]


Indexing the Annual Operating Revenues of Railroads

    The Surface Transportation Board (the Board) is publishing the 
annual inflation-adjusted index and deflator factors for 2021. The 
deflator factors are used by the railroads 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 deflator factors are based on the annual average 
Railroad Freight Price Index developed by the Bureau of Labor 
Statistics. The Board's deflator factor 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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2017............................................................          0.5390     463,860,933      37,108,875
2018............................................................          0.5103     489,935,956      39,194,876
2019 \2\........................................................          0.4952     504,803,294      40,384,263
2020 \3\........................................................          1.0000     900,000,000      40,400,000
2021............................................................          0.9535     943,898,958      42,370,575
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    Dates: The inflation-adjusted indexes and deflator factors are 
effective January 1, 2021.
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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). In Montana Rail Link, Inc.--
Petition for Rulemaking--Classification of Carriers, EP 763 (STB 
served Apr. 5, 2021), the revenue classification level for Class I 
railroads was raised from $250 million (1991 dollars) to $900 
million (2019 dollars), and the Class II threshold was converted and 
rounded from $20 million (1991 dollars) to $40.4 million (2019 
dollars), effective for the reporting year beginning January 1, 
2020.
    \2\ The 2019 values reflect those in Indexing the Annual 
Operating Revenues of Railroads, EP 748 (STB served June 10, 2020).
    \3\ The 2020 and subsequent values are based on the 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 was 1.0000.
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    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: June 23, 2022.

    By the Board, Francis O'Connor, Acting Director, Office of 
Economics.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2022-13845 Filed 6-28-22; 8:45 am]
BILLING CODE 4915-01-P


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Indexed from Federal Register on June 29, 2022.

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