Quarterly Rail Cost Adjustment Factor, 78508-78512 [2013-30821]
Download as PDF
<![CDATA[
78508
Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices
emcdonald on DSK67QTVN1PROD with NOTICES
On December 9, 2013, Michael
LaSalle filed a letter requesting that the
Board require the Authority to notify all
landowners within and along the
proposed Fresno-to-Bakersfield
alignments, as well as all parties of
record in the main docket (which
pertains to the Merced-to-Fresno
segment) of this proceeding and the
comment deadline. LaSalle also requests
that the Board amend the comment
deadline to a reasonable time following
the Authority’s and the Federal Railroad
Administration’s issuance of the Final
Environmental Impact Report/
Environmental Impact Statement (EIR/
EIS) and after their final decisions
regarding the proposed project,
including alignments and station
locations, have been made. On
December 16, 2013, the Community
Coalition on High Speed Rail filed a
letter joining in LaSalle’s requests.
On December 12, 2013, the Citizens
for California High Speed Rail
Accountability (CCHSRA) filed a letter
requesting that the Board extend the
comment period to January 31, 2014,
because it only recently became aware
of the petition and because the
December 24 deadline coincides with
the holiday season.2 CCHSRA also
requested that the Board consider
providing notice to all impacted
landowners in Fresno, Kings, Tulare,
and Kern Counties.
Notice of the Proceeding. Both LaSalle
and CCHSRA request that all affected
landowners be given direct notice of
this proceeding. Generally, however,
publication in the Federal Register is
legally sufficient notice to interested or
affected parties.3 Moreover, attempting
to identify and provide direct notice to
all landowners who might potentially be
affected would be unworkable.4 Also,
ample notice of the proposed
construction project and opportunity to
participate in the environmental review
for the proposed project have been
provided through the EIR/EIS process.
That process included five public
meetings in 2009 on the potential scope
of the Draft EIR/EIS, three public
hearings in 2011 on the Draft EIR/EIS,
and three public hearings in 2012 on the
Revised Draft EIR/Supplemental Draft
EIS. All the meetings and hearings were
2 In a letter filed on December 17, 2013, William
Descary, a Bakersfield resident, also requests an
extension of the comment period to January 31,
2014, in light of the holiday season.
3 Friends of Sierra R.R. v. ICC, 881 F.2d 663, 667–
68 (9th Cir. 1989) (citing Fed. Crop Ins. Corp. v.
Merrill, 332 U.S. 380 (1947)); accord State of Cal.
ex rel. Lockyer v. FERC, 329 F.3d 700, 707 (9th Cir.
2003).
4 See Nat’l Trails Sys. Act & R.R. Rights of Way,
EP 702, slip op. at 7–8 (STB served Feb. 16, 2011).
VerDate Mar<15>2010
18:06 Dec 24, 2013
Jkt 232001
held in the project area including
Fresno and Bakersfield.
However, given the significant public
interest in this proceeding, the Board
will require the Authority to notify all
parties of record in the main docket by
providing them with a copy of its
petition for exemption in this subdocket, as well as a copy of this
decision, by January 3, 2014, and to
certify contemporaneously to the Board
that it has done so. Those parties, and
any other interested persons who wish
to participate in this sub-docket as a
party of record, will then have until
January 21, 2014, to notify the Board of
their intent to participate in this subdocket as a party of record. Only
persons who participate as a party of
record in this sub-docket by filing a
notice of intent or filing comments (or
both) will be entitled to service of
pleadings and subsequent Board
decisions in this sub-docket.
Extension of the Comment Period. In
recognition of the new notice procedure
set forth above, and taking into
consideration the requests for an
extension of the current comment
deadline, we will extend the deadline
for comments on the transportation to
February 14, 2014. This extension
should provide sufficient time for
interested persons to comment on the
proposed transaction.
Waiver of service requirement for
individual private citizens. The Board is
interested in encouraging public
participation by all interested persons in
this proceeding. As was done in the
main docket,5 to help create a
comprehensive record that embodies the
full spectrum of interests involved and
to facilitate the ability of individual
private citizens to participate in that
process, the service requirements of 49
CFR 1104.12(a), which require every
document filed with the Board to be
served upon all parties to the
proceeding, will be waived for
individual private citizens who file
comments in this proceeding. Thus,
filings made by individual private
citizens will be included in the public
record of this proceeding (and posted on
the Board’s Web site) regardless of
whether the filings comply with the
service requirements of § 1104.12(a). All
other parties of record, including citizen
organizations, are expected to comply
with the Board’s service requirement
regulations and serve all parties of
record listed on the Board’s service list
for this proceeding.
5 See Cal. High-Speed Rail Auth.—Constr.
Exemption—in Merced, Madera, & Fresno Cntys.,
Cal., FD 35724 (STB served May 14, 2013).
PO 00000
Frm 00184
Fmt 4703
Sfmt 4703
This action will not significantly
affect either the quality of the human
environment or the conservation of
energy resources.
It is ordered:
1. Replies to the petition for
exemption are due by February 14,
2014.
2. As discussed above in this
decision, the Authority must notify all
parties of record in the main docket of
this proceeding of the proposed
transaction by January 3, 2014, and
certify contemporaneously to the Board
that it has done so.
3. Any person who wishes to
participate in this proceeding as a party
of record must file with the Board a
notice of intent to participate by January
21, 2014.
4. The service requirements under 49
CFR 1104.12(a) are waived for
individual private citizens participating
in this proceeding.
5. This decision will be published in
the Federal Register.
6. This decision is effective on its
service date.
Decided: December 20, 2013.
By the Board, Rachel D. Campbell,
Director, Office of Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013–30825 Filed 12–24–13; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. EP 290 (Sub-No. 5) (2014–1)]
Quarterly Rail Cost Adjustment Factor
AGENCY:
Surface Transportation Board,
DOT.
ACTION:
Approval of rail cost adjustment
factor.
The Board has approved the
first quarter 2014 rail cost adjustment
factor (RCAF) and cost index filed by
the Association of American Railroads.
The first quarter 2014 RCAF
(Unadjusted) is 0.980. The first quarter
2014 RCAF (Adjusted) is 0.424. The first
quarter 2014 RCAF–5 is 0.400.
DATES: Effective Date: January 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Pedro Ramirez, (202) 245–0333. Federal
Information Relay Service (FIRS) for the
hearing impaired: (800) 877–8339.
SUPPLEMENTARY INFORMATION: In
Railroad Cost Recovery Procedures, 1
I.C.C. 2d 207 (1984), the Interstate
Commerce Commission (ICC) outlined
the procedures for calculating the allinclusive index of railroad input prices
SUMMARY:
E:\FR\FM\26DEN1.SGM
26DEN1
78509
Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices
and the method for computing the rail
cost adjustment factor (RCAF). Under
the procedures, the Association of
American Railroads (AAR) is required to
calculate the index on a quarterly basis
and submit it to the agency on the fifth
day of the last month of each calendar
quarter. In Railroad Cost Recovery
Procedures—Productivity Adjustment, 5
I.C.C.2d 434 (1989), aff’d sub nom.
Edison Electric Institute v. ICC, 969 F.2d
1221 (D.C. Cir. 1992), the ICC adopted
procedures that require the adjustment
of the quarterly index for a measure of
productivity.
The provisions of 49 U.S.C. 10708
direct the Surface Transportation Board
(Board) to continue to publish both an
unadjusted RCAF and a productivityadjusted RCAF. In Productivity
Adjustment—Implementation, 1 S.T.B.
739 (1996), the Board decided to
publish a second productivity-adjusted
RCAF called the RCAF–5.
Consequently, three indices are now
filed with the Board: The RCAF
(Unadjusted), the RCAF (Adjusted), and
the RCAF–5. The RCAF (Unadjusted) is
an index reflecting cost changes
experienced by the railroad industry,
without reference to changes in rail
productivity. The RCAF (Adjusted) is an
index that reflects national average
productivity changes as originally
developed and applied by the ICC, the
calculation of which is currently based
on a 5-year moving average. The RCAF–
5 is an index that also reflects national
average productivity changes; however,
those productivity changes are
calculated as if a five-year moving
average had been applied consistently
from the productivity adjustment’s
inception in 1989.
In EP 290 (Sub No. 5) (2013–1), served
December 20, 2012, the Board noted that
AAR’s proposed rebasing calculations
were verified, and complied with the
statute. Because the revisions calculated
by AAR affected the fourth quarter 2012
basing factor, this decision contains the
revised 2012 fourth quarter basing
factor, from 297.5 to 297.6. The revised
rebasing calculations are shown in
Table C of the Appendix.
The index of railroad input prices,
RCAF (Unadjusted), RCAF (Adjusted),
and RCAF–5 for the first quarter of 2014
are shown in Table A of the Appendix
to this decision. Table B shows the
restated third quarter 2013 index and
the RCAF calculated on both an actual
and a forecasted basis. The difference
between the actual calculation and the
forecasted calculation is the forecast
error adjustment.
We have examined AAR’s
calculations and we find that AAR has
complied with our procedures, as well
as the Board’s November 27, 2013
decision directing AAR to restate the
2011, 2012, and 2013 RCAFs using
BNSF Railway Company’s (BNSF) and
Union Pacific Railroad Company’s (UP)
revised R–1 reports. The restated RCAFs
for the fourth quarter of 2011 through
the fourth quarter of 2013 were
recalculated as if AAR had made the
revisions in 2013 for the original
filings.1 We find that the first quarter
2014 RCAF (Unadjusted) is 0.980, an
increase of 0.5% from the restated
fourth quarter 2013 RCAF of 0.975. The
RCAF (Adjusted) is calculated, in part,
using the RCAF (Unadjusted) and a fiveyear moving geometric average of
productivity change for U.S. Class I
railroads from 2007–2011, which is
1.009 (0.9% per year). We find that the
RCAF (Adjusted) is 0.424, an increase of
0.2% from the restated fourth quarter
2013 RCAF (Adjusted) of 0.423.2
In accordance with Productivity
Adjustment—Implementation, 1 S.T.B.
at 748–49, the RCAF–5 for this quarter
will use a productivity trend for the
years 2007–2011, which is 1.009 (0.9%
per year). We find that the RCAF–5 for
the first quarter of 2014 is 0.400, an
increase of 0.3% from the restated
fourth quarter 2013 RCAF–5 of 0.399.3
This decision will not significantly
affect the quality of the human
environment or the conservation of
energy resources.
Authority: 49 U.S.C. 10708.
Decided: December 19, 2013.
By the Board, Chairman Elliott, Vice
Chairman Begeman, and Commissioner
Mulvey.
Jeffrey Herzig,
Clearance Clerk.
Appendix
TABLE A—EP 290 (SUB-NO. 5) (2014–1) ALL INCLUSIVE INDEX OF RAILROAD INPUT COSTS 1
[Endnotes following Table D]
Index component
2012
Weights
(in percent)
1 ...............
2 ...............
3 ...............
4 ...............
5 ...............
6 ...............
7 ...............
8 ...............
9 ...............
10 .............
11 .............
12 .............
13 .............
14 .............
emcdonald on DSK67QTVN1PROD with NOTICES
Line No.
LABOR ...............................................................................................................................
FUEL ..................................................................................................................................
MATERIALS AND SUPPLIES ...........................................................................................
EQUIPMENT RENTS ........................................................................................................
DEPRECIATION ................................................................................................................
INTEREST .........................................................................................................................
OTHER ITEMS 2 ................................................................................................................
WEIGHTED AVERAGE .....................................................................................................
LINKED INDEX 3 ...............................................................................................................
PRELIMINARY RAIL COST ADJUSTMENT FACTOR 4 ...................................................
FORECAST ERROR ADJUSTMENT 5 .............................................................................
RCAF (UNADJUSTED) (LINE 10 +LINE 11) ....................................................................
RCAF (ADJUSTED) ..........................................................................................................
RCAF–5 .............................................................................................................................
31.3
22.4
4.9
5.6
11.9
2.0
21.9
100.0
....................
....................
....................
....................
....................
....................
1 See
Table D.
first quarter 2014 RCAF Adjusted (0.424) is
calculated by dividing the first quarter 2014 RCAF
Unadjusted (0.980) by the first quarter productivity
adjustment factor of 2.3110. The first quarter 2014
productivity adjustment factor is calculated by
2 The
VerDate Mar<15>2010
18:06 Dec 24, 2013
Jkt 232001
multiplying the fourth quarter 2013 productivity
adjustment of 2.3059 by the fourth root (1.0022) of
the 2007–2011 annual average productivity growth
rate of 0.9%.
3 The first quarter 2014 RCAF–5 (0.400) is
calculated by dividing the first quarter 2014 RCAF
PO 00000
Frm 00185
Fmt 4703
Sfmt 4703
Fourth
quarter
2013
forecast
387.1
399.6
261.4
207.7
221.0
76.6
220.0
311.1
297.8
100.1
¥0.026
0.975
0.423
0.399
First quarter
2014
forecast
386.2
377.9
265.9
208.7
217.8
76.6
220.5
306.0
292.9
98.4
¥0.004
0.980
0.424
0.400
Unadjusted (0.980) by the first quarter productivity
adjustment factor-5 (PAF–5) of 2.4480. The first
quarter 2014 PAF–5 is calculated by multiplying
the fourth quarter 2013 PAF–5 of 2.4426 by the
fourth root (1.0022) of the 2007–2011 annual
average productivity growth rate of 0.9%.
E:\FR\FM\26DEN1.SGM
26DEN1
78510
Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices
TABLE B—EP 290 (SUB-NO. 5) (2014–1) COMPARISON OF THIRD QUARTER 2013 INDEX CALCULATED ON BOTH A
FORECASTED AND AN ACTUAL BASIS6
Line No.
Index component
2011 weight
(in percent)
1 ..................
2 ..................
3 ..................
4 ..................
5 ..................
6 ..................
7 ..................
8 ..................
9 ..................
10 ................
LABOR ...........................................................................................................................
FUEL ..............................................................................................................................
MATERIALS AND SUPPLIES .......................................................................................
EQUIPMENT RENTS ....................................................................................................
DEPRECIATION ............................................................................................................
INTEREST .....................................................................................................................
OTHER ITEMS ..............................................................................................................
WEIGHTED AVERAGE .................................................................................................
LINKED INDEX ..............................................................................................................
RAIL COST ADJUSTMENT FACTOR ...........................................................................
31.4
22.6
5.1
5.6
11.5
2.3
21.5
100.0
....................
....................
Third
quarter
2013
forecast
Third
quarter
2013 actual
391.3
375.6
264.2
208.0
218.9
87.3
221.4
307.7
294.4
98.9
391.3
376.0
264.2
207.6
217.8
87.3
218.8
307.0
293.1
98.5
TABLE C—REBASING THE DENOMINATOR OF THE RCAF TO THE FOURTH QUARTER 2012 LEVEL (RESTATED)7
emcdonald on DSK67QTVN1PROD with NOTICES
1.
2.
3.
4.
5.
6.
..............
..............
..............
..............
..............
..............
VerDate Mar<15>2010
Fourth Quarter 2012 Linked Index ................................................................................................................................
Second Quarter 2012 Linked Index Calculated Using Actual Data ..............................................................................
Second Quarter 2012 Linked Index Calculated Using forecasted Data .......................................................................
Difference ......................................................................................................................................................................
Rounding adjustment to force 1.000 .............................................................................................................................
Fourth Quarter 2012 Linked Index Adjusted for Second Quarter 2012 Forecast Error (Line 1 plus Line 4 plus Line
5).
18:06 Dec 24, 2013
Jkt 232001
PO 00000
Frm 00186
Fmt 4703
Sfmt 4703
E:\FR\FM\26DEN1.SGM
26DEN1
299.1
295.5
297.0
¥1.5
0.0
297.6
Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices
78511
TABLED
Restated RCAFs 2011 Q4 through 2013Q4
Endnotes:
I AAR has restated the 2012 weights in compliance to our November 27,2013
decision. The 2013 fourth quarter forecast is the restated version, not the September 5,
2013 filing. The 2012 basing factor has also been restated from 297.5 to 297.6.
"Other Items" is a combination of Purchased Services, Casualties and
Insurance, General and Administrative, Other Taxes, Loss and Damage, and Special
Charges, price changes for all of which are measured by the Producer Price Index for
Industrial Commodities Less Fuel and Related Products and Power.
2
3 Linking is necessitated by a change to the 2012 weights beginning in the fourth
quarter 2013. The following formula was used for the current quarter's index:
1st Qr. 2014 Index
(2012 Weights)
4th Qr. 2013 Index
(2012 Weights)
Times 4th Quarter Linked Index
(1980 = 100 Linked)
Equals Linked Index
(Current Quarter)
Or
292.9
4 The first quarter 2013 RCAF was rebased using the October 1,2012 level of
297.5 in accordance with the requirements of the Staggers Rail Act of 1980 (l0/1/2012 =
100). In compliance to our November 27,2013 decision, AAR has restated the October
1, 2012 level of297.5 to 297.6.
VerDate Mar<15>2010
18:06 Dec 24, 2013
Jkt 232001
PO 00000
Frm 00187
Fmt 4703
Sfmt 4725
E:\FR\FM\26DEN1.SGM
26DEN1
EN26de13.089</GPH>
emcdonald on DSK67QTVN1PROD with NOTICES
306.0 X 297.8
311.1
78512
Federal Register / Vol. 78, No. 248 / Thursday, December 26, 2013 / Notices
BILLING CODE 4915–01–P
DEPARTMENT OF THE TREASURY
Bureau of Engraving and Printing
Privacy Act of 1974, as Amended;
System of Records
Bureau of Engraving and
Printing (BEP), Department of the
Treasury.
ACTION: Notice of proposed Privacy Act
of 1974 system of records and request
for comments.
AGENCY:
In accordance with the
Privacy Act of 1974, 5 U.S.C. 552a the
Department of the Treasury, Bureau of
Engraving and Printing, proposes to
establish a new Privacy Act of 1974
system of records titled ‘‘Treasury/BEP
.049—Bureau of Engraving and Printing
Tour Scheduling System’’ also known as
BEP Tour Scheduling System.
DATES: Comments must be received no
later than January 27, 2014. This new
Privacy Act system of records will be
effective January 30, 2014, unless
comments are received which result in
a contrary determination.
ADDRESSES: Comments should be sent to
´
Leslie J. Rivera-Pagan, Privacy Officer,
Office of the Chief Counsel, U.S.
Department of the Treasury, Bureau of
Engraving and Printing, Room 419–A,
14th & C Streets SW., Washington, DC
20228, Attention: Revisions to Privacy
Act Systems of Records. Comments can
also be faxed to (202) 874–2951 or
emailed to Leslie.Rivera-Pagan@bep.gov.
For fax and emails, please place
emcdonald on DSK67QTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
18:06 Dec 24, 2013
Jkt 232001
‘‘Revisions to SORN .049–BEP Tour
Scheduling System’’ in the subject line.
Comments will be made available for
public inspection upon written request.
The BEP will make such comments
available for public inspection and
copying at the above listed location, on
official business days between 9:00 a.m.
and 5:00 p.m. eastern time. Persons
wishing to review the comments must
request an appointment by telephoning
(202) 874–2500. All comments received,
including attachments and other
supporting documents, are part of the
public record and subject to public
disclosure. You should submit only
information that you wish to make
available publicly. All comments
received will be posted without change
to https://www.regulations.gov, including
any personal information provided.
FOR FURTHER INFORMATION CONTACT:
´
Leslie J. Rivera-Pagan at (202) 874–2500
or Leslie.Rivera-Pagan@bep.gov.
SUPPLEMENTARY INFORMATION:
In accordance with the Privacy Act of
1974, 5 U.S.C. 552a, the Department of
the Treasury, Bureau of Engraving and
Printing, proposes to establish a new
system of records titled, ‘‘Treasury/BEP
.049–BEP Tour Scheduling System.’’
The new proposed system of records
is published in its entirety below.
Dated: December 6, 2013.
Helen Goff Foster,
Deputy Assistant Secretary for Privacy,
Transparency, and Records.
TREASURY/BEP .049
SYSTEM NAME:
Bureau of Engraving and Printing
Tour Scheduling System also known as
PO 00000
Frm 00188
Fmt 4703
Sfmt 4703
BEP Tour Scheduling System—
Treasury/BEP.
SYSTEM LOCATION:
Bureau of Engraving and Printing,
Office of External Relations (OEX)—
Public Service Division, Eastern
Currency Facility (ECF), 14th & C
Streets SW., Washington, DC 20228 and
Bureau of Engraving and Printing, Office
of External Relations (OEX)—External
Affairs Division, Western Currency
Facility (WCF), 9000 Blue Mound Road,
Fort Worth, TX 76131.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Primary and secondary contacts of
group of visitors or congressional groups
and Members of Congress and
congressional staffers scheduling tours
with the BEP’s Tour and Visitor Center
in Washington, DC, and Fort Worth, TX.
CATEGORIES OF RECORDS IN THE SYSTEM:
• Name of Primary and Secondary
Contact (WCF only) of Group of Visitors;
• Name of Constituent known as
Primary Contact of Congressional
Group, Member of Congress, and Staffer;
• Title and State of Member of
Congress;
• Phone Number, Email Address, Fax
Number of Congressional Staffer;
• Phone Number, Email Address, Fax
Number, Mailing Address, City, State,
Zip Code of Primary Contact of Group
of Visitors;
• Phone Number of Secondary
Contact of Group of Visitors (WCF only);
• Date, Time, and Type of Tour;
• Name of Group;
• Number of Individuals in group;
• Grade of School Group (WCF only);
• Information required to
accommodate a disability of an
E:\FR\FM\26DEN1.SGM
26DEN1
EN26de13.090</GPH>
[FR Doc. 2013–30821 Filed 12–24–13; 8:45 am]
]]>Agencies
[Federal Register Volume 78, Number 248 (Thursday, December 26, 2013)]
[Notices]
[Pages 78508-78512]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30821]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. EP 290 (Sub-No. 5) (2014-1)]
Quarterly Rail Cost Adjustment Factor
AGENCY: Surface Transportation Board, DOT.
ACTION: Approval of rail cost adjustment factor.
-----------------------------------------------------------------------
SUMMARY: The Board has approved the first quarter 2014 rail cost
adjustment factor (RCAF) and cost index filed by the Association of
American Railroads. The first quarter 2014 RCAF (Unadjusted) is 0.980.
The first quarter 2014 RCAF (Adjusted) is 0.424. The first quarter 2014
RCAF-5 is 0.400.
DATES: Effective Date: January 1, 2014.
FOR FURTHER INFORMATION CONTACT: Pedro Ramirez, (202) 245-0333. Federal
Information Relay Service (FIRS) for the hearing impaired: (800) 877-
8339.
SUPPLEMENTARY INFORMATION: In Railroad Cost Recovery Procedures, 1
I.C.C. 2d 207 (1984), the Interstate Commerce Commission (ICC) outlined
the procedures for calculating the all-inclusive index of railroad
input prices
[[Page 78509]]
and the method for computing the rail cost adjustment factor (RCAF).
Under the procedures, the Association of American Railroads (AAR) is
required to calculate the index on a quarterly basis and submit it to
the agency on the fifth day of the last month of each calendar quarter.
In Railroad Cost Recovery Procedures--Productivity Adjustment, 5
I.C.C.2d 434 (1989), aff'd sub nom. Edison Electric Institute v. ICC,
969 F.2d 1221 (D.C. Cir. 1992), the ICC adopted procedures that require
the adjustment of the quarterly index for a measure of productivity.
The provisions of 49 U.S.C. 10708 direct the Surface Transportation
Board (Board) to continue to publish both an unadjusted RCAF and a
productivity-adjusted RCAF. In Productivity Adjustment--Implementation,
1 S.T.B. 739 (1996), the Board decided to publish a second
productivity-adjusted RCAF called the RCAF-5. Consequently, three
indices are now filed with the Board: The RCAF (Unadjusted), the RCAF
(Adjusted), and the RCAF-5. The RCAF (Unadjusted) is an index
reflecting cost changes experienced by the railroad industry, without
reference to changes in rail productivity. The RCAF (Adjusted) is an
index that reflects national average productivity changes as originally
developed and applied by the ICC, the calculation of which is currently
based on a 5-year moving average. The RCAF-5 is an index that also
reflects national average productivity changes; however, those
productivity changes are calculated as if a five-year moving average
had been applied consistently from the productivity adjustment's
inception in 1989.
In EP 290 (Sub No. 5) (2013-1), served December 20, 2012, the Board
noted that AAR's proposed rebasing calculations were verified, and
complied with the statute. Because the revisions calculated by AAR
affected the fourth quarter 2012 basing factor, this decision contains
the revised 2012 fourth quarter basing factor, from 297.5 to 297.6. The
revised rebasing calculations are shown in Table C of the Appendix.
The index of railroad input prices, RCAF (Unadjusted), RCAF
(Adjusted), and RCAF-5 for the first quarter of 2014 are shown in Table
A of the Appendix to this decision. Table B shows the restated third
quarter 2013 index and the RCAF calculated on both an actual and a
forecasted basis. The difference between the actual calculation and the
forecasted calculation is the forecast error adjustment.
We have examined AAR's calculations and we find that AAR has
complied with our procedures, as well as the Board's November 27, 2013
decision directing AAR to restate the 2011, 2012, and 2013 RCAFs using
BNSF Railway Company's (BNSF) and Union Pacific Railroad Company's (UP)
revised R-1 reports. The restated RCAFs for the fourth quarter of 2011
through the fourth quarter of 2013 were recalculated as if AAR had made
the revisions in 2013 for the original filings.\1\ We find that the
first quarter 2014 RCAF (Unadjusted) is 0.980, an increase of 0.5% from
the restated fourth quarter 2013 RCAF of 0.975. The RCAF (Adjusted) is
calculated, in part, using the RCAF (Unadjusted) and a five-year moving
geometric average of productivity change for U.S. Class I railroads
from 2007-2011, which is 1.009 (0.9% per year). We find that the RCAF
(Adjusted) is 0.424, an increase of 0.2% from the restated fourth
quarter 2013 RCAF (Adjusted) of 0.423.\2\
---------------------------------------------------------------------------
\1\ See Table D.
\2\ The first quarter 2014 RCAF Adjusted (0.424) is calculated
by dividing the first quarter 2014 RCAF Unadjusted (0.980) by the
first quarter productivity adjustment factor of 2.3110. The first
quarter 2014 productivity adjustment factor is calculated by
multiplying the fourth quarter 2013 productivity adjustment of
2.3059 by the fourth root (1.0022) of the 2007-2011 annual average
productivity growth rate of 0.9%.
---------------------------------------------------------------------------
In accordance with Productivity Adjustment--Implementation, 1
S.T.B. at 748-49, the RCAF-5 for this quarter will use a productivity
trend for the years 2007-2011, which is 1.009 (0.9% per year). We find
that the RCAF-5 for the first quarter of 2014 is 0.400, an increase of
0.3% from the restated fourth quarter 2013 RCAF-5 of 0.399.\3\
---------------------------------------------------------------------------
\3\ The first quarter 2014 RCAF-5 (0.400) is calculated by
dividing the first quarter 2014 RCAF Unadjusted (0.980) by the first
quarter productivity adjustment factor-5 (PAF-5) of 2.4480. The
first quarter 2014 PAF-5 is calculated by multiplying the fourth
quarter 2013 PAF-5 of 2.4426 by the fourth root (1.0022) of the
2007-2011 annual average productivity growth rate of 0.9%.
---------------------------------------------------------------------------
This decision will not significantly affect the quality of the
human environment or the conservation of energy resources.
Authority: 49 U.S.C. 10708.
Decided: December 19, 2013.
By the Board, Chairman Elliott, Vice Chairman Begeman, and
Commissioner Mulvey.
Jeffrey Herzig,
Clearance Clerk.
Appendix
Table A--EP 290 (Sub-No. 5) (2014-1) All Inclusive Index of Railroad Input Costs \1\
[Endnotes following Table D]
----------------------------------------------------------------------------------------------------------------
Fourth First
2012 quarter quarter
Line No. Index component Weights (in 2013 2014
percent) forecast forecast
----------------------------------------------------------------------------------------------------------------
1............................... LABOR.................................. 31.3 387.1 386.2
2............................... FUEL................................... 22.4 399.6 377.9
3............................... MATERIALS AND SUPPLIES................. 4.9 261.4 265.9
4............................... EQUIPMENT RENTS........................ 5.6 207.7 208.7
5............................... DEPRECIATION........................... 11.9 221.0 217.8
6............................... INTEREST............................... 2.0 76.6 76.6
7............................... OTHER ITEMS \2\........................ 21.9 220.0 220.5
8............................... WEIGHTED AVERAGE....................... 100.0 311.1 306.0
9............................... LINKED INDEX \3\....................... ........... 297.8 292.9
10.............................. PRELIMINARY RAIL COST ADJUSTMENT FACTOR ........... 100.1 98.4
\4\.
11.............................. FORECAST ERROR ADJUSTMENT \5\.......... ........... -0.026 -0.004
12.............................. RCAF (UNADJUSTED) (LINE 10 +LINE 11)... ........... 0.975 0.980
13.............................. RCAF (ADJUSTED)........................ ........... 0.423 0.424
14.............................. RCAF-5................................. ........... 0.399 0.400
----------------------------------------------------------------------------------------------------------------
[[Page 78510]]
Table B--EP 290 (Sub-No. 5) (2014-1) Comparison of Third Quarter 2013 Index Calculated on Both a Forecasted and
an Actual Basis\6\
----------------------------------------------------------------------------------------------------------------
Third
2011 weight quarter Third
Line No. Index component (in 2013 quarter
percent) forecast 2013 actual
----------------------------------------------------------------------------------------------------------------
1................................. LABOR................................ 31.4 391.3 391.3
2................................. FUEL................................. 22.6 375.6 376.0
3................................. MATERIALS AND SUPPLIES............... 5.1 264.2 264.2
4................................. EQUIPMENT RENTS...................... 5.6 208.0 207.6
5................................. DEPRECIATION......................... 11.5 218.9 217.8
6................................. INTEREST............................. 2.3 87.3 87.3
7................................. OTHER ITEMS.......................... 21.5 221.4 218.8
8................................. WEIGHTED AVERAGE..................... 100.0 307.7 307.0
9................................. LINKED INDEX......................... ........... 294.4 293.1
10................................ RAIL COST ADJUSTMENT FACTOR.......... ........... 98.9 98.5
----------------------------------------------------------------------------------------------------------------
Table C--Rebasing the Denominator of the RCAF to the Fourth Quarter 2012
Level (Restated)\7\
------------------------------------------------------------------------
------------------------------------------------------------------------
1....................... Fourth Quarter 2012 Linked 299.1
Index.
2....................... Second Quarter 2012 Linked 295.5
Index Calculated Using Actual
Data.
3....................... Second Quarter 2012 Linked 297.0
Index Calculated Using
forecasted Data.
4....................... Difference.................... -1.5
5....................... Rounding adjustment to force 0.0
1.000.
6....................... Fourth Quarter 2012 Linked 297.6
Index Adjusted for Second
Quarter 2012 Forecast Error
(Line 1 plus Line 4 plus Line
5).
------------------------------------------------------------------------
[[Page 78511]]
[GRAPHIC] [TIFF OMITTED] TN26DE13.089
[[Page 78512]]
[GRAPHIC] [TIFF OMITTED] TN26DE13.090
[FR Doc. 2013-30821 Filed 12-24-13; 8:45 am]
BILLING CODE 4915-01-P
