Oversight Hearing Pertaining to Union Pacific Railroad Company's Embargoes, 73062-73064 [2022-25855]
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73062
Federal Register / Vol. 87, No. 227 / Monday, November 28, 2022 / Notices
Economic Injury (EIDL) Loan
Application Deadline Date: 08/21/2023.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
11/21/2022, Private Non-Profit
organizations that provide essential
services of a governmental nature may
file disaster loan applications at the
address listed above or other locally
announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Berkeley, Charleston,
Clarendon, Georgetown, Horry,
Jasper, Williamsburg.
The Interest Rates are:
Percent
For Physical Damage:
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Non-Profit Organizations without Credit Available Elsewhere .....................................
1.875
Submit comments on or before
January 27, 2023.
DATES:
Send all comments
regarding whether this information
collection is necessary for the proper
performance of the function of the
agency, whether the burden estimates
are accurate, and if there are ways to
minimize the estimated burden and
enhance the quality of the collections, to
Louis Cupp, New Markets Policy
Analyst, Office of Investment and
Innovation, Small Business
Administration, 409 3rd Street, 6th
Floor, Washington, DC 20416.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Louis Cupp, New Markets Policy
Analyst, 202–619–0511, louis.cupp@
sba.gov; Curtis B. Rich, Agency
Clearance Officer, 202–205–7030,
curtis.rich@sba.gov.
SBA
Forms 2181, 2182 and 2183 provide
SBA with the necessary information to
make decisions regarding the approval
or denial of an applicant for a small
business investment company (SBIC)
license. SBA uses this information to
assess an applicant’s ability to
successfully operate an SBIC within the
scope of the Small Business Investment
Act of 1958, as amended.
SUPPLEMENTARY INFORMATION:
Solicitation of Public Comments
SBA is requesting comments on (a)
Whether the collection of information is
necessary for the agency to properly
perform its mission and functions with
1.875 respect to the SBIC program; (b) whether
the burden estimates are accurate; (c)
The number assigned to this disaster
whether there are ways to minimize the
for physical damage is 17713 8 and for
burden, including through the use of
economic injury is 17714 0.
automated techniques or other forms of
information technology; and (d) whether
(Catalog of Federal Domestic Assistance
there are ways to enhance the quality,
Number 59008)
utility, and clarity of the information.
1.875
Rafaela Monchek,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2022–25916 Filed 11–25–22; 8:45 am]
BILLING CODE 8026–09–P
SMALL BUSINESS ADMINISTRATION
Data Collection Available for Public
Comments
60-day notice and request for
comments.
khammond on DSKJM1Z7X2PROD with NOTICES
ACTION:
In accordance with the
Paperwork Reduction Act of 1995, this
notice announces the Small Business
Administration’s (SBA) intentions to
request approval for reinstatement with
modification of a previously approved
information collection.
SUMMARY:
VerDate Sep<11>2014
19:33 Nov 25, 2022
Jkt 259001
OMB Control Number 3245:0062
Title: SBIC Management Assessment
Questionnaire & License Application;
Exhibits to Management Assessment
Questionnaire & SBIC License
Application.
Frequency: On occasion.
SBA Form Numbers: 2181, 2182, and
2183.
Description of Respondents: Small
Business Investment Company (SBIC)
applicants.
Responses: 375.
Annual Burden: 24,625.
Curtis Rich,
Agency Clearance Officer.
[FR Doc. 2022–25785 Filed 11–25–22; 8:45 am]
BILLING CODE 8026–09–P
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17644 and #17645;
FLORIDA Disaster Number FL–00178]
Presidential Declaration Amendment of
a Major Disaster for the State of Florida
U.S. Small Business
Administration.
ACTION: Amendment 8.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for the State of Florida (FEMA–
4673–DR), dated 09/29/2022.
Incident: Hurricane Ian.
Incident Period: 09/23/2022 through
11/04/2022.
DATES: Issued on 11/21/2022.
Physical Loan Application Deadline
Date: 01/12/2023.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/29/2023.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for the State of Florida,
dated 09/29/2022, is hereby amended to
extend the deadline for filing
applications for physical damages as a
result of this disaster to 01/12/2023.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Number 59008)
Rafaela Monchek,
Acting Associate Administrator for Disaster
Assistance.
[FR Doc. 2022–25903 Filed 11–25–22; 8:45 am]
BILLING CODE 8026–09–P
SURFACE TRANSPORTATION BOARD
[Docket No. EP 772]
Oversight Hearing Pertaining to Union
Pacific Railroad Company’s
Embargoes
Surface Transportation Board.
Notice of public hearing.
AGENCY:
ACTION:
The Surface Transportation
Board (Board) will hold an in-person
public hearing on December 13 and 14,
2022, with Union Pacific Railroad
Company (UP), pertaining to the
significant increase in its use of
SUMMARY:
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Federal Register / Vol. 87, No. 227 / Monday, November 28, 2022 / Notices
embargoes. The hearing will be held in
the Hearing Room of the Board’s
headquarters, located at 395 E Street
SW, Washington, DC 20423–0001. The
Board will direct the following
executive-level officials of UP to appear
in person: Lance M. Fritz, Chairman,
President, and Chief Executive Officer;
Kenny Rocker, Executive Vice
President—Marketing and Sales; Eric
Gehringer, Executive Vice President—
Operations; and Bradley Moore, Vice
President—Customer Care and Support.
UP may bring additional personnel to
the hearing who may be able to provide
helpful information to the Board. In
addition, the Board invites testimony
from shippers and other stakeholders
who can contribute to the Board’s
understanding of the cause and/or
impact of the embargoes.
DATES: The hearing will be held on
December 13 and 14, 2022, beginning at
9:30 a.m. ET, in the Hearing Room of the
Board’s headquarters and will be open
for public observation. Interested
stakeholders who wish to provide
testimony at the hearing about the
topics described in this notice should
file with the Board a notice of intent to
participate (identifying the party,
proposed speaker, and amount of time
requested) as soon as possible but no
later than December 5, 2022. UP may
bring other persons in addition to the
executive-level officials directed to
appear, and they may also provide
Year
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2017
2018
2019
2020
2021
2022
27 .....................................................
140 ...................................................
413 ...................................................
251 ...................................................
662 ...................................................
886 (as of October 2022) .................
1 See Letter from Hon. Jim Costa, Ralph Norman,
Mary E. Miller, Charles J. Fleischmann, James R.
Baird, Kat Cammack, W. Gregory Steube, Glenn
Grothman, John Rose, Austin Scott, Trent Kelly,
Rick W. Allen, Dan Newhouse, Mark E. Green,
M.D., Louie Gohmert, Frank D. Lucas, Tracey Mann,
Vicky Hartzler, Mike Thompson, Jimmy Panetta,
Clay Higgins, David Rouzer, Byron Donalds, Tim
Burchett, Darin LaHood, Josh Harder, Salud
Carbajal, Cynthia Axne, Kim Schrier, M.D., David
G. Valadao, Randy Feenstra, Julia Letlow, Sanford
D. Bishop, Jr., Lisa C. McClain, Mariannette MillerMeeks, M.D., Robert E. Latta, Daniel Meuser, Bob
Gibbs, Cathy McMorris Rodgers, Jefferson Van
Drew, Ashley Hinson, Daniel T. Kildee, Sharice L.
Davids, Ro Khanna, John R. Moolenaar, David
Kustoff, Al Lawson, Tom O’Halleran, Andrew S.
Clyde, Michael Cloud, & Angie Craig, June 29, 2022,
Urgent Issues in Freight Rail Serv., EP 770; Letter
from Hon. Jim Costa, June 21, 2022, Urgent Issues
in Freight Rail Serv., EP 770; Letter from Hon. Alex
Padilla & Dianne Feinstein to Chairman Martin J.
Oberman, June 1, 2022, Urgent Issues in Freight Rail
19:33 Nov 25, 2022
Jkt 259001
19
99
74
85
94
98
Percentage
caused by
catastrophic
event
Percentage
caused by
other
70
........................
21
........................
6
........................
11
1
........................
9
........................
........................
22
........................
5
6
........................
2
Serv., EP 770; Letter from Hon. Kevin Cramer,
Tammy Baldwin, Chuck Grassley, Shelley Moore
Capito, Sherrod Brown, M. Michael Rounds, Patty
Murray, Joni Ernst, Marco Rubio, Tammy
Duckworth, Mike Crapo, James Risch, Tina Smith,
Mark Kelly, John Hoeven, John Kennedy, Joe
Manchin III, Roger Marshall M.D., Amy Klobuchar,
Mike Braun, & Richard J. Durbin to Chairman
Martin J. Oberman, May 24, 2022, Urgent Issues in
Freight Rail Serv., EP 770; Letter from SMARTTransp. Div. to Chairman Martin J. Oberman (Apr.
1, 2022), available at www.stb.gov (open tab ‘‘News
& Communications’’ & select ‘‘Non-Docketed Public
Correspondence’’); Letter from Hon. Thomas J.
Vilsack, U.S. Dep’t of Agric., Mar. 30, 2022,
Reciprocal Switching, EP 711 (Sub-No. 1); Letter
from Hon. Shelley Moore Capito to Board Members
Martin J. Oberman, Michelle A. Schultz, Patrick J.
Fuchs, Robert E. Primus, & Karen J. Hedlund (Mar.
29, 2022), available at www.stb.gov (open tab
‘‘News & Communications’’ & select ‘‘Non-Docketed
Public Correspondence’’); Letter from the Nat’l
Grain & Feed Ass’n to Board Members Martin J.
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Company; CSX Transportation, Inc.;
Norfolk Southern Railway Company;
and UP, including substantial increases
in problems arising from tight car
supply and unfilled car orders, delays in
transportation for carload and bulk
traffic, increased origin dwell time for
released unit trains, missed switches,
and ineffective customer assistance. The
Board has received reports, from the
Secretary of Transportation, the
Secretary of Agriculture, members of the
U.S. Congress, and other stakeholders,
about the serious impact of these service
trends on rail users, particularly
shippers of agricultural and energy
products.1
As a Class I rail carrier, UP occupies
a major and essential role in the
movement of goods across the country.
It carries approximately 26.8% of freight
served by rail 2 and approximately
10.7% of all long-distance freight
volume.3 Therefore, disruptions in UP’s
service levels have a significant
detrimental impact on the supply chain
and the economy of the United States.
As such, the Board has been closely
monitoring UP’s recent use of
embargoes 4 and has observed a
disturbing upward trend in their usage.
In recent years, there has been a
significant increase in UP’s use of
embargoes, and congestion is the stated
cause for almost of all of the embargoes,
as shown in the below chart.5
Percentage
caused by
weather
Percentage
caused by
congestion
Number of embargoes
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
VerDate Sep<11>2014
testimony. If UP intends for any
additional persons to appear, it should
notify the Board by December 5, 2022.
Furthermore, by December 6, 2022, UP
is directed to file certain information
and documents, detailed below,
pertaining to its embargoes and how UP
is using and plans to use the Customer
Inventory Management System (CIMS)
as a tool to reset inventory levels in the
short-term and for continual
maintenance in the long-term. Interested
stakeholders may file written testimony
or comment about the topics described
in this Notice by December 14, 2022.
ADDRESSES: All filings should be
submitted via e-filing on the Board’s
website at www.stb.gov. Filings will be
posted to the Board’s website and need
not be served on any other party to the
proceeding.
FOR FURTHER INFORMATION CONTACT:
Nathaniel Bawcombe at (202) 245–0376.
Assistance for the hearing impaired is
available through the Federal Relay
Service at (800) 877–8339.
SUPPLEMENTARY INFORMATION: Rail
network reliability is essential to the
Nation’s economy and is a foremost
priority of the Board. As discussed in
prior decisions in Docket No. EP 770
and Docket No. EP 770 (Sub-No. 1), the
Board has heard from a broad range of
stakeholders about the significant
challenges they have experienced
because of inconsistent and unreliable
rail service from BNSF Railway
73063
Oberman, Michelle A. Schultz, Patrick J. Fuchs,
Robert E. Primus, & Karen J. Hedlund (Mar. 24,
2022), available at www.stb.gov (open tab ‘‘News &
Communications’’ & select ‘‘Non-Docketed Public
Correspondence’’).
2 This figure is derived from the Class I railroads’
Annual Report of Operations and Finances, known
as R–1 reports, submitted to the Board.
3 This figure is derived from the Association of
American Railroads (AAR) at www.aar.org/factsfigures.
4 According to AAR Circular No. TD–1, an
embargo is ‘‘a method of controlling Traffic
movements when, in the judgment of the serving
railroad, an actual or threatened Physical or
Operational Impairment, of a temporary nature,
warrants restrictions against such movements.’’
5 This information was obtained from the AAR
Embargo System at https://embargo.railinc.com/#/
home.
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73064
Federal Register / Vol. 87, No. 227 / Monday, November 28, 2022 / Notices
This pattern shows no signs of
abating. Between November 1, 2022,
and November 17, 2022, UP issued an
additional 126 embargoes with
congestion as the stated cause. Of those
126 embargoes, 89 were issued on
November 16, 2022; as of November 17,
2022, UP had 128 active embargoes in
place and, for all, congestion was the
stated cause. The Board understands
that embargoes may vary in scope and
that all carriers do not report and use
embargoes in the same way.
Nevertheless, the use of embargoes by
all other Class I carriers, combined,
pales in comparison to the number of
embargoes issued by UP. Given UP’s
sizeable role in freight rail, its increased
use of embargoes in recent years, and
the considerable increase just this
month, it is imperative that the Board
hear from UP directly about this matter
and how UP plans to reduce, if not
eliminate, the use of embargoes to
control congestion.
The Board will hold a public hearing
on December 13 and 14, 2022, beginning
at 9:30 a.m. ET, at its offices in
Washington, DC, to hear firsthand from
senior officials of UP about the
substantial increase in the use of
embargoes in recent years. The Board
will direct the following executive-level
officials of UP to appear at the hearing:
Lance M. Fritz, Chairman, President,
and Chief Executive Officer; Kenny
Rocker, Executive Vice President—
Marketing and Sales; Eric Gehringer,
Executive Vice President—Operations;
and Bradley Moore, Vice President—
Customer Care and Support. UP is
directed to ensure that its
representatives can provide the Board
with detailed information pertaining to
UP’s embargoes. Accordingly, in
addition to those directed, UP may bring
additional personnel to the hearing that
may be able to provide helpful
information to the Board. If UP intends
to have any other persons appear, UP
should notify the Board by December 5,
2022.
At the hearing, UP should be prepared
to discuss in detail the following topics:
• UP’s decision-making process in
determining to issue an embargo,
including underlying causes (e.g.,
network issues and crew shortages),
whether UP’s market power plays a role
in the decision making, and UP’s
consideration of alternatives to
embargoes;
• How UP measures congestion and
total excess cars throughout its system;
• The explanations for the dramatic
increase in embargoes since 2017,
including whether UP has maintained
sufficient resources during that time
period;
VerDate Sep<11>2014
19:33 Nov 25, 2022
Jkt 259001
• UP’s practices and policies with
respect to notification and outreach to
shippers;
• UP’s consideration of shippers’
operational needs, including alternative
avenues to meet their shipping
requirements;
• UP’s implementation and use of the
CIMS;
• Whether UP has considered the
impact of its embargoes on its common
carrier and other legal obligations, and
if so, the specifics of that consideration;
and
• UP’s plans, if any, to decrease the
need for embargoes going forward.
Additionally, in advance of the
hearing, UP is directed to file with the
Board information and documents in
support of the above topics so that the
Board may understand UP’s processes
for deciding when and how to use
embargoes. Furthermore, UP is directed
to file with the Board information and
documents so that the Board may
understand how UP is using and
intends to use the CIMS as a tool to reset
inventory levels in the short-term and
for continual maintenance in the longterm.
UP is also directed to preserve all
paper and electronic records, including
all correspondence, related to its
embargoes and the CIMS.
In addition to directing UP’s
participation at the hearing, the Board
will invite shippers and other
stakeholders who can contribute to the
Board’s understanding of the cause and/
or impact of UP’s embargoes and the
CIMS to testify.6
Board Releases and Transcript
Availability: Decisions and notices of
the Board, including this notice, are
available on the Board’s website at
www.stb.gov. The Board will issue a
separate notice containing the schedule
of appearances. A transcript of the
hearing will be posted on the Board’s
website once it is available.
It is ordered:
1. A public hearing will be held on
December 13 and 14, 2022, beginning at
9:30 a.m. ET, in the Hearing Room of the
Board’s headquarters, located at 395 E
Street SW, Washington, DC 20423–0001.
2. The following executive-level
officials of UP are directed to appear at
the public hearing: Lance M. Fritz,
Chairman, President, and Chief
Executive Officer; Kenny Rocker,
Executive Vice President—Marketing
and Sales; Eric Gehringer, Executive
6 The Board’s public hearing is not intended to
replace the informal and confidential dispute
resolution process facilitated by the Board’s Rail
Customer and Public Assistance, and stakeholders
are encouraged to continue communicating through
that office.
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
Vice President—Operations; and
Bradley Moore, Vice President—
Customer Care and Support. By
December 5, 2022, UP must notify the
Board if it intends to bring additional
persons to appear.
3. By December 5, 2022, interested
stakeholders who wish to provide
testimony at the hearing about the
topics described in this Notice shall file
with the Board a notice of intent to
participate identifying the party, the
proposed speaker(s), and the time
requested. Interested stakeholders may
file written testimony or comment about
the topics described in this Notice by
December 14, 2022.
4. By December 6, 2022, UP is
directed to file information with the
Board, as discussed above.
5. UP is directed to preserve all
records, including all correspondence,
pertaining to its embargoes and the
CIMS.
6. Filings will be posted to the Board’s
website and need not be served on any
other party to the proceeding.
7. This decision is effective on its
service date.
8. This decision will be published in
the Federal Register.
Decided: November 22, 2022.
By the Board, Board Members, Fuchs,
Hedlund, Oberman, Primus, and Schultz.
Eden Besera,
Clearance Clerk.
[FR Doc. 2022–25855 Filed 11–25–22; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2022–0004]
Equivalent Protective Arrangements
for Railroad Employees
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
ACTION: Notice of final guidance.
AGENCY:
This is a notice of final
guidance issued by the Federal Railroad
Administration (FRA) in connection
with statutorily required protective
arrangements for employees impacted
by certain projects financed by the
Federal government.
DATES: The final guidance is effective
December 28, 2022.
FOR FURTHER INFORMATION CONTACT:
Kevin MacWhorter, Attorney Advisor,
Office of the Chief Counsel, telephone:
(202) 641–8727, email:
kevin.macwhorter@dot.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
E:\FR\FM\28NON1.SGM
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]]>Agencies
[Federal Register Volume 87, Number 227 (Monday, November 28, 2022)]
[Notices]
[Pages 73062-73064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25855]
=======================================================================
-----------------------------------------------------------------------
SURFACE TRANSPORTATION BOARD
[Docket No. EP 772]
Oversight Hearing Pertaining to Union Pacific Railroad Company's
Embargoes
AGENCY: Surface Transportation Board.
ACTION: Notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: The Surface Transportation Board (Board) will hold an in-
person public hearing on December 13 and 14, 2022, with Union Pacific
Railroad Company (UP), pertaining to the significant increase in its
use of
[[Page 73063]]
embargoes. The hearing will be held in the Hearing Room of the Board's
headquarters, located at 395 E Street SW, Washington, DC 20423-0001.
The Board will direct the following executive-level officials of UP to
appear in person: Lance M. Fritz, Chairman, President, and Chief
Executive Officer; Kenny Rocker, Executive Vice President--Marketing
and Sales; Eric Gehringer, Executive Vice President--Operations; and
Bradley Moore, Vice President--Customer Care and Support. UP may bring
additional personnel to the hearing who may be able to provide helpful
information to the Board. In addition, the Board invites testimony from
shippers and other stakeholders who can contribute to the Board's
understanding of the cause and/or impact of the embargoes.
DATES: The hearing will be held on December 13 and 14, 2022, beginning
at 9:30 a.m. ET, in the Hearing Room of the Board's headquarters and
will be open for public observation. Interested stakeholders who wish
to provide testimony at the hearing about the topics described in this
notice should file with the Board a notice of intent to participate
(identifying the party, proposed speaker, and amount of time requested)
as soon as possible but no later than December 5, 2022. UP may bring
other persons in addition to the executive-level officials directed to
appear, and they may also provide testimony. If UP intends for any
additional persons to appear, it should notify the Board by December 5,
2022. Furthermore, by December 6, 2022, UP is directed to file certain
information and documents, detailed below, pertaining to its embargoes
and how UP is using and plans to use the Customer Inventory Management
System (CIMS) as a tool to reset inventory levels in the short-term and
for continual maintenance in the long-term. Interested stakeholders may
file written testimony or comment about the topics described in this
Notice by December 14, 2022.
ADDRESSES: All filings should be submitted via e-filing on the Board's
website at www.stb.gov. Filings will be posted to the Board's website
and need not be served on any other party to the proceeding.
FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe at (202) 245-0376.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: Rail network reliability is essential to the
Nation's economy and is a foremost priority of the Board. As discussed
in prior decisions in Docket No. EP 770 and Docket No. EP 770 (Sub-No.
1), the Board has heard from a broad range of stakeholders about the
significant challenges they have experienced because of inconsistent
and unreliable rail service from BNSF Railway Company; CSX
Transportation, Inc.; Norfolk Southern Railway Company; and UP,
including substantial increases in problems arising from tight car
supply and unfilled car orders, delays in transportation for carload
and bulk traffic, increased origin dwell time for released unit trains,
missed switches, and ineffective customer assistance. The Board has
received reports, from the Secretary of Transportation, the Secretary
of Agriculture, members of the U.S. Congress, and other stakeholders,
about the serious impact of these service trends on rail users,
particularly shippers of agricultural and energy products.\1\
---------------------------------------------------------------------------
\1\ See Letter from Hon. Jim Costa, Ralph Norman, Mary E.
Miller, Charles J. Fleischmann, James R. Baird, Kat Cammack, W.
Gregory Steube, Glenn Grothman, John Rose, Austin Scott, Trent
Kelly, Rick W. Allen, Dan Newhouse, Mark E. Green, M.D., Louie
Gohmert, Frank D. Lucas, Tracey Mann, Vicky Hartzler, Mike Thompson,
Jimmy Panetta, Clay Higgins, David Rouzer, Byron Donalds, Tim
Burchett, Darin LaHood, Josh Harder, Salud Carbajal, Cynthia Axne,
Kim Schrier, M.D., David G. Valadao, Randy Feenstra, Julia Letlow,
Sanford D. Bishop, Jr., Lisa C. McClain, Mariannette Miller-Meeks,
M.D., Robert E. Latta, Daniel Meuser, Bob Gibbs, Cathy McMorris
Rodgers, Jefferson Van Drew, Ashley Hinson, Daniel T. Kildee,
Sharice L. Davids, Ro Khanna, John R. Moolenaar, David Kustoff, Al
Lawson, Tom O'Halleran, Andrew S. Clyde, Michael Cloud, & Angie
Craig, June 29, 2022, Urgent Issues in Freight Rail Serv., EP 770;
Letter from Hon. Jim Costa, June 21, 2022, Urgent Issues in Freight
Rail Serv., EP 770; Letter from Hon. Alex Padilla & Dianne Feinstein
to Chairman Martin J. Oberman, June 1, 2022, Urgent Issues in
Freight Rail Serv., EP 770; Letter from Hon. Kevin Cramer, Tammy
Baldwin, Chuck Grassley, Shelley Moore Capito, Sherrod Brown, M.
Michael Rounds, Patty Murray, Joni Ernst, Marco Rubio, Tammy
Duckworth, Mike Crapo, James Risch, Tina Smith, Mark Kelly, John
Hoeven, John Kennedy, Joe Manchin III, Roger Marshall M.D., Amy
Klobuchar, Mike Braun, & Richard J. Durbin to Chairman Martin J.
Oberman, May 24, 2022, Urgent Issues in Freight Rail Serv., EP 770;
Letter from SMART-Transp. Div. to Chairman Martin J. Oberman (Apr.
1, 2022), available at www.stb.gov (open tab ``News &
Communications'' & select ``Non-Docketed Public Correspondence'');
Letter from Hon. Thomas J. Vilsack, U.S. Dep't of Agric., Mar. 30,
2022, Reciprocal Switching, EP 711 (Sub-No. 1); Letter from Hon.
Shelley Moore Capito to Board Members Martin J. Oberman, Michelle A.
Schultz, Patrick J. Fuchs, Robert E. Primus, & Karen J. Hedlund
(Mar. 29, 2022), available at www.stb.gov (open tab ``News &
Communications'' & select ``Non-Docketed Public Correspondence'');
Letter from the Nat'l Grain & Feed Ass'n to Board Members Martin J.
Oberman, Michelle A. Schultz, Patrick J. Fuchs, Robert E. Primus, &
Karen J. Hedlund (Mar. 24, 2022), available at www.stb.gov (open tab
``News & Communications'' & select ``Non-Docketed Public
Correspondence'').
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As a Class I rail carrier, UP occupies a major and essential role
in the movement of goods across the country. It carries approximately
26.8% of freight served by rail \2\ and approximately 10.7% of all
long-distance freight volume.\3\ Therefore, disruptions in UP's service
levels have a significant detrimental impact on the supply chain and
the economy of the United States. As such, the Board has been closely
monitoring UP's recent use of embargoes \4\ and has observed a
disturbing upward trend in their usage. In recent years, there has been
a significant increase in UP's use of embargoes, and congestion is the
stated cause for almost of all of the embargoes, as shown in the below
chart.\5\
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\2\ This figure is derived from the Class I railroads' Annual
Report of Operations and Finances, known as R-1 reports, submitted
to the Board.
\3\ This figure is derived from the Association of American
Railroads (AAR) at www.aar.org/facts-figures.
\4\ According to AAR Circular No. TD-1, an embargo is ``a method
of controlling Traffic movements when, in the judgment of the
serving railroad, an actual or threatened Physical or Operational
Impairment, of a temporary nature, warrants restrictions against
such movements.''
\5\ This information was obtained from the AAR Embargo System at
https://embargo.railinc.com/#/home.
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Percentage
Number of Percentage Percentage caused by Percentage
Year embargoes caused by caused by catastrophic caused by
congestion weather event other
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2017.......................... 27.............. 19 70 11 22
2018.......................... 140............. 99 .............. 1 ..............
2019.......................... 413............. 74 21 .............. 5
2020.......................... 251............. 85 .............. 9 6
2021.......................... 662............. 94 6 .............. ..............
2022.......................... 886 (as of 98 .............. .............. 2
October 2022).
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[[Page 73064]]
This pattern shows no signs of abating. Between November 1, 2022,
and November 17, 2022, UP issued an additional 126 embargoes with
congestion as the stated cause. Of those 126 embargoes, 89 were issued
on November 16, 2022; as of November 17, 2022, UP had 128 active
embargoes in place and, for all, congestion was the stated cause. The
Board understands that embargoes may vary in scope and that all
carriers do not report and use embargoes in the same way. Nevertheless,
the use of embargoes by all other Class I carriers, combined, pales in
comparison to the number of embargoes issued by UP. Given UP's sizeable
role in freight rail, its increased use of embargoes in recent years,
and the considerable increase just this month, it is imperative that
the Board hear from UP directly about this matter and how UP plans to
reduce, if not eliminate, the use of embargoes to control congestion.
The Board will hold a public hearing on December 13 and 14, 2022,
beginning at 9:30 a.m. ET, at its offices in Washington, DC, to hear
firsthand from senior officials of UP about the substantial increase in
the use of embargoes in recent years. The Board will direct the
following executive-level officials of UP to appear at the hearing:
Lance M. Fritz, Chairman, President, and Chief Executive Officer; Kenny
Rocker, Executive Vice President--Marketing and Sales; Eric Gehringer,
Executive Vice President--Operations; and Bradley Moore, Vice
President--Customer Care and Support. UP is directed to ensure that its
representatives can provide the Board with detailed information
pertaining to UP's embargoes. Accordingly, in addition to those
directed, UP may bring additional personnel to the hearing that may be
able to provide helpful information to the Board. If UP intends to have
any other persons appear, UP should notify the Board by December 5,
2022.
At the hearing, UP should be prepared to discuss in detail the
following topics:
UP's decision-making process in determining to issue an
embargo, including underlying causes (e.g., network issues and crew
shortages), whether UP's market power plays a role in the decision
making, and UP's consideration of alternatives to embargoes;
How UP measures congestion and total excess cars
throughout its system;
The explanations for the dramatic increase in embargoes
since 2017, including whether UP has maintained sufficient resources
during that time period;
UP's practices and policies with respect to notification
and outreach to shippers;
UP's consideration of shippers' operational needs,
including alternative avenues to meet their shipping requirements;
UP's implementation and use of the CIMS;
Whether UP has considered the impact of its embargoes on
its common carrier and other legal obligations, and if so, the
specifics of that consideration; and
UP's plans, if any, to decrease the need for embargoes
going forward.
Additionally, in advance of the hearing, UP is directed to file
with the Board information and documents in support of the above topics
so that the Board may understand UP's processes for deciding when and
how to use embargoes. Furthermore, UP is directed to file with the
Board information and documents so that the Board may understand how UP
is using and intends to use the CIMS as a tool to reset inventory
levels in the short-term and for continual maintenance in the long-
term.
UP is also directed to preserve all paper and electronic records,
including all correspondence, related to its embargoes and the CIMS.
In addition to directing UP's participation at the hearing, the
Board will invite shippers and other stakeholders who can contribute to
the Board's understanding of the cause and/or impact of UP's embargoes
and the CIMS to testify.\6\
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\6\ The Board's public hearing is not intended to replace the
informal and confidential dispute resolution process facilitated by
the Board's Rail Customer and Public Assistance, and stakeholders
are encouraged to continue communicating through that office.
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Board Releases and Transcript Availability: Decisions and notices
of the Board, including this notice, are available on the Board's
website at www.stb.gov. The Board will issue a separate notice
containing the schedule of appearances. A transcript of the hearing
will be posted on the Board's website once it is available.
It is ordered:
1. A public hearing will be held on December 13 and 14, 2022,
beginning at 9:30 a.m. ET, in the Hearing Room of the Board's
headquarters, located at 395 E Street SW, Washington, DC 20423-0001.
2. The following executive-level officials of UP are directed to
appear at the public hearing: Lance M. Fritz, Chairman, President, and
Chief Executive Officer; Kenny Rocker, Executive Vice President--
Marketing and Sales; Eric Gehringer, Executive Vice President--
Operations; and Bradley Moore, Vice President--Customer Care and
Support. By December 5, 2022, UP must notify the Board if it intends to
bring additional persons to appear.
3. By December 5, 2022, interested stakeholders who wish to provide
testimony at the hearing about the topics described in this Notice
shall file with the Board a notice of intent to participate identifying
the party, the proposed speaker(s), and the time requested. Interested
stakeholders may file written testimony or comment about the topics
described in this Notice by December 14, 2022.
4. By December 6, 2022, UP is directed to file information with the
Board, as discussed above.
5. UP is directed to preserve all records, including all
correspondence, pertaining to its embargoes and the CIMS.
6. Filings will be posted to the Board's website and need not be
served on any other party to the proceeding.
7. This decision is effective on its service date.
8. This decision will be published in the Federal Register.
Decided: November 22, 2022.
By the Board, Board Members, Fuchs, Hedlund, Oberman, Primus,
and Schultz.
Eden Besera,
Clearance Clerk.
[FR Doc. 2022-25855 Filed 11-25-22; 8:45 am]
BILLING CODE 4915-01-P
