Notice2023-13852

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, 2023
Effective
January 1, 2022

Issuing agencies

Surface Transportation Board

Full Text

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<title>Federal Register, Volume 88 Issue 124 (Thursday, June 29, 2023)</title>
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[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Page 42130]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13852]


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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 2022. 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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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
2022...........................................................          0.8721    1,032,002,719      46,325,455
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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.


DATES: The inflation-adjusted indexes and deflator factors are 
effective January 1, 2022.

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, 2023.

    By the Board, William Brennan, Ph.D., Chief Economist & 
Director, Office of Economics.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2023-13852 Filed 6-28-23; 8:45 am]
BILLING CODE 4915-01-P


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Indexed from Federal Register on June 29, 2023.

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