Indiana Administrative Code
Title 105 - INDIANA DEPARTMENT OF TRANSPORTATION
Article 5 - RAILROADS
Rule 1 - Tariffs and Rates
Section 1-2 - Standards and procedures
Current through March 20, 2024
Authority: IC 8-1-1-3
Affected: IC 8-3-1-3; IC 8-3-1-8
Sec. 2.
The Staggers Act requires the states to adopt uniform standards and procedures for regulating railroad rates, rules and practices which are in accord with the provisions of the Act. This and the following administrative rules constitute Indiana's revised approach to railroad regulation. The standards and procedures included in 170 IAC 3-1.1-3 through 3-1.1-56[sections 3 through 51 of this rule] supersede any previous rules or regulations to the extent that the previous rules or regulations might be in conflict with them.
Indiana shall not exercise jurisdiction over general rate increases, inflation-based rate increases, and fuel adjustment surcharges. Further, Indiana shall not require prejustification of rate increases. These points are treated in 170 IAC 3-1.1-6 through 3-1.1-16 and 170 IAC 3-1.1-21 through 3-1.1-37[sections 6 through 16 of this rule and sections 21 through 37 of this rule].
The timing for rail rate changes shall be 10 days and 20 days for decreases and increases, respectively. These points are covered in 170 IAC 3-1.1-3 through 3-1.1-5[sections 3 through 5 of this rule].
Indiana shall complete investigation and suspension cases within five months, although a three month extension may be applied for in each case. Indiana shall not suspend rates on its own motion, and shall not suspend a proposed rate change unless a protestant shows that he is substantially likely to prevail on the merits of his case; that without suspension the proposed rate will cause him substantial injury; and that an investigation with a refund and trust account provision will afford him insufficient protection. Indiana shall handle refund requirements in accordance with the provisions of 49 U.S.C. Sec. 10707. These points are treated in 170 IAC 3-1.1-6 through 3-1.1-16[sections 6 through 16 of this rule].
In approaching the issue of rate reasonableness, Indiana shall first consider, within 90 days, whether or not the traffic in question is subject to market dominance. Standards for market dominance determinations are treated in 170 IAC 3-1.1-17 through 3-1.1-20[sections 17 through 20 of this rule]. A finding that no market dominance exists shall be conclusive evidence that a rate is reasonable. Should market dominance be found, a reasonableness determination shall be made based on the principle of railroad revenue adequacy, an evaluation of the ratio of revenue to variable cost for the traffic involved, the revenue contribution of the traffic to the railroad's revenue base, and national energy and transportation goals. These procedures are treated in 170 IAC 3-1.1-6 through 3-1.1-16[sections 6 through 16 of this rule].
Railroad rates may be altered in accordance with the zone of rate flexibility provisions of 49 U.S.C. Sec. 10707a. These provisions are incorporated in 170 IAC 3-1.1-6 through 3-1.1-16 and 170 IAC 3-1.1-21 through 3-1.1-37[sections 6 through 16 of this rule and sections 21 through 37 of this rule].
To encourage shipper and railroad planning, Indiana shall regulate intrastate contract rates in accordance with 49 U.S.C. Sec. 10713. These points are treated in 170 IAC 3-1.1-38 through 3-1.1-50.1[sections 38 through 50 of this rule].
Indiana adopts the applicable provisions of 49 U.S.C. Sec. 10741 on discrimination. Indiana shall not make a finding of discrimination if differences in rates, classification, rules and practices result from differences in service provided. Discrimination shall not be found to apply to the following sections of 49 U.S.C.:
(1) Sec. 10713-Contract rates, other than as provided for in subsection (d)(2)(B);
(2) Sec. 10705a-Surcharges or cancellations;
(3) Sec. 10728-Separate rates for distinct rail services;
(4) Rail rates applicable to different routes; or
(5) Sec. 10751-Business entertainment expenses.
Indiana may undertake an exemption proceeding either on its own motion or upon petition from any interested party. An exemption granted for a class of interstate traffic shall automatically apply in Indiana. Each exemption initiative shall be considered individually, in accordance with the provisions of 170 IAC 3-1.1-56[section 51 of this rule].
Indiana shall regulate two special classes of rates, limited liability rates and rates on recyclable materials, in a manner consistent with federal law, specifically 49 U.S.C. Sec. 10730, and 49 U.S.C. Sec. 10731, respectively. Recyclable materials shall be transported at a revenue to variable cost ratio of no more than that allowed by the Staggers Act as amended from time to time. Railroads are free to publish rates under which the liability of the carrier is limited to a value established by the written declaration of the shipper or by written agreement between the shipper and railroad. These points are treated in 170 IAC 3-1.1-6 through 3-1.1-16[sections 6 through 16 of this rule].
To further clarify the regulatory approach which Indiana will employ, the public service commission of Indiana hereby adopts the following sections of the Interstate Commerce Act as amended by Staggers Rail Act of 1980.
Section 10505 - Exemption
Section 10701a - Standards for rates for rail carriers
Section 10704(a)(2)(4) - Adequate revenues
Section 10705 - Authority: through routes, joint classifications, rates and divisions
Section 10705a - Joint rate surcharges and cancellations
Section 10706 - Rate agreements; exemption from antitrust laws
Section 10707 - Investigation and suspension of rates
Section 10707a - Zone of rail carrier rate flexibility
Section 10709 - Determination of market dominance
Section 10712 - Inflation-based rate increases
Section 10713 - Contracts
Section 10726 - Long and short haul transportation
Section 10730 - Rates and liability based on value
Section 10731e - Transportation of recyclable materials
Section 10741 - Rate discrimination
Section 10751 - Business entertainment expenses
Section 10762 - General tariff requirements
Transferred from Department of Transportation ( 100 IAC 6-1-2 ) to Indiana Department of Transportation ( 105 IAC 5-1-2 ) by P.L. 112-1989, SECTION 5, effective July 1, 1989.
