Agricultural industry shippers, who are reliant on the nation’s freight railroads to move their goods, have asked for the expedient confirmation of two Trump administration nominees for the Surface Transportation Board.
Agricultural industry shippers, who are reliant on the nation’s freight railroads to move their goods, have asked for the expedient confirmation of two Trump administration nominees for the Surface Transportation Board (STB).
The STB nominees, Michelle A. Schultz and Patrick J. Fuchs, who testified before the Senate Commerce Committee on Wednesday, would fill four of the five board member seats, if confirmed. Ann Begeman currently serves as chairman, while Deb Miller is vice chairman. STB board members serve for five-year terms.
Chris Jahn, president of The Fertilizer Institute, said inclusion of Schultz and Fuchs “will allow the STB to operate at near full capacity and enact reforms necessary to help farmers, agribusinesses and manufacturers be more competitive in the global marketplace. It has been far too long since the STB was fully staffed.”
Other agricultural trade groups to voice support for the two STB nominees include the Agricultural Retailers Association and myriad state groups, such as the Ohio AgriBusiness Association, Illinois Fertilizer and Chemical Association, Minnesota Crop Production Retailers, Texas Ag Industries Association and Wyoming Wheat Marketing Commission.
The ag shippers are particularly eager to see the full implementation of provisions in the 2015 STB Reauthorization Act. The legislation made the STB a fully independent agency by removing it from under the U.S. Department of Transportation umbrella; directed the STB to shorten time frames for reviewing rate cases; and provided the agency with investigative abilities to resolve problems between railroads and shoppers before they become larger disputes.
The railroads have expressed similar interest in the STB nominations.
“We are eager for the Senate Commerce Committee to act on the recent nominations of Patrick Fuchs and Michelle Schultz to the board, as well as a forthcoming Democratic nominee, so that the board can reap the benefits of a full complement of members and ultimately chart a path of sensible, deregulatory policies,” said Edward R. Hamberger, president and CEO of the Association of American Railroads, in a statement.
Prior to his nomination, Fuchs served three years on the Senate Commerce Committee staff and helped draft and facilitate passage of the 2015 STB Reauthorization Act, the first reauthorization of the board since its inception in 1996.
Shultz has worked for the past 11 years as deputy general counsel for the Southern Eastern Pennsylvania Transportation Authority, the nation’s sixth-largest provider of public transportation. She provided guidance to the Senate on compliance issues involving the federal mandate for positive train control implementation.
During questioning, the nominees emphasized the importance of the STB’s role to resolve rate and service disputes between shippers and railroads before they escalate to costly and timely litigation. “The first stop of the board is to shine a light” on the issue and gather the necessary data and facts, Fuchs said, adding, “I would use the authority judiciously.”
Schultz told the committee,“If confirmed, I would take service disruptions very seriously to address service issues as soon as possible.”
She noted in her prepared testimony, “While our nation’s rail system generally performs well, challenges arise due to numerous issues including increased demand for service; track sharing; the ongoing need to maintain existing infrastructure; and the need for increased capacity.”
At the end of the hearing, Sen. John Thune, Senate Commerce Committee chairman, told Fuchs and Schultz, “We want to try and process your nominations as quickly as possible. We want to get them reported to the [Senate] floor.”
