Table Of Content

FUNCTIONS OF THE INTERSTATE COMMERCE \^ COMMISSION YI 4^.rP 9760//1i1i:.1i0uo3-55 HEARING Functions of the Interstate Connerc. ..fore the oui3^uiViiviiiij:.j^ uiN iSURFACE TRANSPORTATION OF THE COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION AND THE SUBCOMMITTEE ON TRANSPORTATION AND HAZARDOUS MATERIALS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS SECOND SESSION JUNE 9, 1994 (103-55) (Committee on Public Works and Transportation) Serial No. 103-111 (Committee on Energy and Commerce) Printed for the use of the Committee on Public Works and Transportation and the Conunittee on Energy and Commerce U.S. GOVERNMENT PRINTING OFFICE "-Si'v^ / 82-618CC WASHINGTON : 1994 / ForsalebytheU.S.GovernmentPrintingOffice ' '^^C^^rr.,^'" " SuperintendentofDocuments,CongressionatSalesOffice.Washington,DC 20405^' '''' ISBN 0-16-044896-4 FUNCTIONS OF THE INTERSTATE COMMERCE \^ COMMISSION Y 4 P 96/11:103-55 HEARING Functions of the Interstate Connerc. ..fore the oui^^mviiViiiiiLr. uiN ;SURFACE TRANSPORTATION OF THE COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION I AND THE SUBCOMMITTEE ON TRANSPORTATION AND HAZARDOUS MATERIALS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRD CONGRESS SECOND SESSION JUNE 9, 1994 (103-55) (Committee on Public Works and Transportation) Serial No. 103-111 (Committee on Energy and Commerce) Printed for the use of the Committee on Public Works and Transportation and the Committee on Energy and Commerce L'*-t.-/,'^'^TiQS^'^'^'^'yS U.S. GOVERNMENT PRINTING OFFICE "^ '^S^ 82-618CC WASHINGTON : 1994 ForsalebytheU.S.GovernmentPrinittiinnggOOffffiiccee'''^'f"^^U|£c^^r-J^X'"'* ' SuperintendentofDocuments,CongressionalSalesO)ffffiicc:eee,,,WWWaaassslhhiiiinnngggttoonn,,DD(C 2040^^^-:C* ISBN 0-16-044896-4 COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION NORMAN Y. MINETA. California, Chair JAMES L. OBERSTAR, Minnesota BUD SHUSTER, Pennsylvania NICKJ. RAHALL II, West Virginia WILLIAM F. CLINGER, Jr., Pennsylvania DOUGLAS APPLEGATE. Ohio THOMAS E. PETRI, Wisconsin RON DE LUGO, Virgin Islands SHERWOOD L. BOEHLERT, NewYork ROBERT A. BORSKI, Pennsylvania JAMES M. INHOFE, Oklahoma TIM VALENTINE, North CaroUna BILL EMERSON, Missouri WILLIAM O. LIPINSKI, IlUnois JOHN J. DUNCAN, Jr., Tennessee ROBERT E. WISE, Jr., WestVirginia SUSAN MOLINARI. New York JJPAAEMMTEEERSSAAA. DTHeRAFAYAFEZISIC,OA,LNoTOu,riesJgirao.nn,aOhio WTWIHALOYLMNIAEASMT.WH..GIEZLEWCLIHINRFGFE,,STIJ,lrl.i,MnoaNirseywlaHnadmpshire BOB CLEMENT, Tennessee JENNIFER DUNN, Washington JERRY F. COSTELLO, Illinois Y. TIM HUTCHINSON, Arkansas MIKE PARKER, Mississippi BILL BAKER, California GREG LAUGHLIN, Texas MICHAEL A. "MAC" COLLINS, Georgia PETE GEREN, Texas JAY KIM, California GEORGE E. SANGMEISTER, Illinois DAVID A. LEVY, New York GLENN POSHARD, Illinois STEPHEN HORN, California DICK SWETT, New Hampshire BOB FRANKS, New Jersey BUD CRAMER, Alabama PETER I. BLUTE, Massachusetts BARBARA-ROSE COLLINS, Michigan HOWARD P. "BUCK" McKEON, California ELEANOR HOLMES NORTON, District of JOHN L. MICA, Florida Columbia PETER HOEKSTRA, Michigan LUCIEN E. BLACKWELL, Pennsylvania JACK QUINN, New York JERROLD NADLER, NewYork VERNON J. EHLERS, Michigan SAM COPPERSMITH, Arizona LESLIE L. BYRNE, Virginia MARIA CANTWELL, Washington PAT DANNER, Missouri KAREN SHEPHERD, Utah ROBERT MENENDEZ, New Jersey JAMES E. CLYBURN, South Carolina CORRINE BROWN, Florida NATHAN DEAL, Georgia JAMES A BARCIA, Michigan DAN HAMBURG, California BOB FILNER, CaUfomia WALTER R. TUCKER III, California EDDIE BERNICE JOHNSON, Texas PETER W. BARCA, Wisconsin Subcommittee on Surface Transportation NICKJ. RAHALL II, West Virginia, Chair TIM VALENTINE, North CaroUna, THOMAS E. PETRI, Wisconsin Vice Chair WILLIAM F. CLINGER, Jr., Pennsylvania BOB CLEMENT, Tennessee BILL EMERSON, Missouri JERRY F. COSTELLO, Illinois WILLIAM H. ZELIFF, Jr., New Hampshire GREG LAUGHLIN, Texas JENNIFER DUNN, Washington GLENN POSHARD, IlUnois Y. TIM HUTCHINSON, Arkansas DICK SWETT, New Hampshire BILL BAKER, CaUfornia BUD CRAMER, Alabama MICHAEL A. "MAC" COLLINS, Georgia PETER A. DeFAZIO, Oregon JAY KIM. CaUfornia JERROLD NADLER, New York DAVID A. LEVY, New York LESLIE L. BYRNE, Virginia BOB FRANKS, New Jersey MPAATRIDAANCNAENRT,WEMLiLss,ouWraishington HPEOTWEARRID. BP.LU"TBEU,CKM"assMaccKhEusOeNt,tsCaUfomia ROBERT MENENDEZ, New Jersey VERNON J. EHLERS, Michigan JAMES E. CLYBURN, South CaroUna BUD SHUSTER, Pennsylvania DAN HAAIBURG, CaUfomia (Ex Officio) WALTER R. TUCKER III, California EDDIE BERNICE JOHNSON, Texas DOUGLAS APPLEGATE, Ohio RON DE LUGO, Virgin Islands WILLIAM O. LIPINSKI, IlUnois JAMES A. TRAFICANT, Jr., Ohio PETER W. BARCA, Wisconsin NORMAN Y. MINETA, CaUfornia {Ex Officio) (H) COMMITTEE ON ENERGY AND COMMERCE JOHN D. DINGELL, Michigan, Chairman HENRYA. WAXMAN, California CARLOS J. MOORHEAD. California PHILIP R. SHARP, Indiana THOMAS J. BLILEY, Jr., Virginia EDWARD J. MARKEY, Massachusetts JACK FIELDS, Texas AL SWIFT, Washington MICHAEL G. OXLEY, Ohio CARDISS COLLINS, Ilhnois MICHAEL BILIRAKIS, Florida MIKE SYNAR, Oklahoma DAN SCHAEFER, Colorado W.J. "BILLY" TAUZIN, Louisiana JOE BARTON, Texas RON WYDEN, Oregon ALEX MCMILLAN, North Carolina RALPH M. HALL, Texas J. DENNIS HASTERT, Illinois BILL RICHARDSON, New Mexico FRED UPTON, Michigan JIM SLATTERY, Kansas CLIFF STEARNS, Florida JOHN BRYANT, Texas BILL PAXON, New York RICK BOUCHER, Virginia PAUL E. GILLMOR, Ohio JIM COOPER, Tennessee SCOTT KLUG, Wisconsin J. ROY ROWLAND, Georgia GARY A. FRANKS, Connecticut THOMAS J. MANTON, New York JAMES C. GREENWOOD, Pennsylvania EDOLPHUS TOWNS, New York MICHAEL D. CRAPO, Idaho GERRY E. STUDDS, Massachusetts RICHARD H. LEHMAN, California FRANK PALLONE, Jr., New Jersey CRAIG A. WASHINGTON, Texas LYNN SCHENK, CaHfomia SHERROD BROWN, Ohio MIKE KREIDLER, Washington MARJORIE MARGOLIES-MEZVINSKY, Pennsylvania BLANCHE M. LAMBERT, Arkansas Alan J. Roth, StaffDirector and ChiefCounsel Dennis B. Fitzgibbons, Deputy StaffDirector Margaret A Durbin, Minority ChiefCounsel and StaffDirector Subcommittee on Transportation and Hazardous Materials AL SWIFT, Washington, Chairman BLANCHE M. LAMBERT, Arkansas MICHAEL G. OXLEY, Ohio W.J. "BILLY" TAUZIN, Louisiana JACK FIELDS, Texas RICK BOUCHER, Virginia DAN SCHAEFER, Colorado J. ROY ROWLAND, Georgia FRED UPTON, Michigan THOMAS J. MANTON, New York BILL PAXON, New York GERRY E. STUDDS, Massachusetts PAUL E. GILLMOR, Ohio FRANK PALLONE, Jr., New Jersey MICHAEL D. CRAPO, Idaho LYNN SCHENK, California CARLOS J. MOORHEAD, CaUfomia PHILIP R. SHARP, Indiana (Ex Officio) EDWARD J. MARKEY, Massachusetts BILL RICHARDSON, New Mexico JOHN D. DINGELL, Michigan (Ex Officio) Arthur P. Endres, Jr., StaffDirectorIChiefCounsel Scott Cooper, SpecialAssistant H. Glenn Scammel, Minority Counsel (III) CONTENTS Page Testimonyof: Condit, Hon. Gary A., a Representative in Congress from the State of California 21 DeLay, Hon. Tom, a Representative in Congress fromthe State ofTexas 19 . Hefley, Hon. Joel, a Representative in Congress from the State of Colo- rado 11 Jorgenson, Richard A., Resources, Community and Economic Develop- mentDivision, GeneralAccountingOffice 134 Kasich, Hon. John R., a Representative in Congress from the State of Ohio 17 Kruesi, Frank E., Assistant Secretary for Transportation Policy, Depart- mentofTransportation 128 McDonald, Hon. Gail C, Chairman, Interstate Commerce Commission 28 Mead, Kenneth M., Director, Transportation Issues, General Accounting Office 134 Morgan, Linda, Commissioner, Interstate Commerce Commission 55 Mulvey, Frank, Assistant Director, Transportation Issues, General Ac- counting Office 134 Phillips, Karen Borlaug, Vice Chairman, Interstate Commerce Commis- sion 52 Rush, Henri F., General Counsel, Interstate Commerce Commission 28 Sanders, Hon. Bernard, a Representative in Congress from the State ofVermont 5 Simmons, J.J., III, Commissioner, Interstate Commerce Commission 53 Smith, LeslieA., SeniorAccountant, General AccountingOffice 134 Material submitted forthe recordby: Interstate Commerce Commission: Correspondence submitted regardingWall StreetJournal article enti- tled*'ICC KeepsTruckin" 121 Memorandum datedJune 1, 1994 to Chairman McDonald from Henri F. Rush re compendium ofICC responsibilities 69 Responses toquestions submittedby: Hon. Michael G. Oxley 163 Hon. Bernard Sanders 172 Hon. Bud Shuster 66 National Association ofRegulatoryUtility Commissioners: Statement 198 National Coal Association: Statement ofJoseph E. Lima, vice president fortransportation 208 National Motor Freight Traffic Association, Inc.: Letter dated June 2, 1994 to Chairman Nick J. Rahall, from Martin E. Foley, executive director 204 National Small Shipments Traffic Conference, Inc., and Health and Per- sonal Care Distribution Conference, Inc.: Combined statement of Charles Girardi and CharlesE. Bennett 221 Orange Countv, California Transportation Authority: Comments on study ofaxleweights ofpublic transitbuses, with attachments 188 Rails toTrails Conservancy: StatementofCharles H. Montange 229 Regular Common Carrier Conference: Statement of James C. Harkins, executive director 225 Transportation Trades Department, AFL-CIO: Statement of Walter J. Shea, president 209 (V) FUNCTIONS OF THE INTERSTATE COMMERCE COMMISSION THURSDAY, JUNE 9, 1994 House of Representatives, Committee on Public Works and Transportation, Subcommittee on Sur- face Transportation, and Committee on Energy AND Commerce, Subcommittee on Transportation AND Hazardous Materials, Washington, DC. The joint subcommittees met, pursuant to notice, at 1:35 p.m., in room 2167, Rayburn House Office Building, Hon. Nick J. Rahall H (chairman, Subcommittee on Surface Transportation) and Hon. Al Swift (chairman. Subcommittee on Transportation and Hazardous Materials) presiding. Mr. Rahall. The subcommittees will come to order, please. The Subcommittees on Surface Transportation of the Committee on Public Works and Transportation and the Subcommittee on Trans- portation and Hazardous Materials of the Committee on Energy and Commerce are conducting a joint hearing today on the general functions ofthe Interstate Commerce Commission [ICC]. I will now recognize our good friend and distinguished colleague, the chairman of the Subcommittee on Transportation and Hazard- ous Materials, the gentleman from Washington State, Mr. Al Swift. Mr. Swift. Thank you very much, Chairman Rahall. It has been a pleasure to work with you on this joint hearing of the two subcommittees withjurisdiction over activities ofthe ICC. This has been a constructive effort which reflects, I think, the good working relationship between our two full committees. I wel- come the opportunity to work together to ensure that our Nation's surface transportation system continue to be appropriately regulated. In 1980, through the Staggers Rail Act and the Motor Carrier Act, our respective committees introduced major changes in the way we traditionally regulated our transportation industries. Those efforts have proved successful and I believe have been suc- cessfully mirrored in the subsequent downsizing of the ICC, a 70 percent reduction in staffing in the past 15 years. But regulation reform has been confused by some as an opportunity to abandon basic protections for the public, for shippers, for communities, and for labor, and that brings us to the current at- tacks on the existence ofthe ICC. Some have suggested we abolish the ICC and spin its duties off to other agencies. H.L. Mencken once said, there is always an easy solution to every human problem, neat, plausible, and wrong. (1) I believe that today's testimony from the GAO will clearly show that shippers and carriers believe that they are best served by an independent commission, that the quasi judicial and the adjudica- tory authority of the ICC are more responsive to problems in the transportation industry than an executive bureaucracy, and that the independence of the ICC avoids the appearance, and, I suspect, the reality of political pressures and potential conflicts of interest. But even if we decided for whatever reason that these attributes should be sacrificed if we can save the government some money, the GAO study responds by saying that killing the ICC and trans- ferring its functions and expertise would, and I quote, "Compromise the independence ofthe decisionmaking process without generating meaningful cost savings," end quote. Killing the ICC will not be neat given the difficulties enumerated by the GAO testimony, and ifyou study their analysis, it no longer even has a surface plausibility. Certainly let's use this hearing to discuss how to improve the functions of our oversight agencies to reflect rapid and constant change in transportation technologies and in economics. That is what our subcommittees do and we should carefully scru- tinize the activities of the ICC, as we do any other agency or department. But let's not fool ourselves or the public that there is an easy way out of this or any other problem. It is intellectually dis- honest, procedurally lazy and to quote Mencken again, it is wrong. I yield back the balance ofmy time. Mr. Rahall. Thank you. Chairman Swift. The interest of the Subcommittee on Surface Transportation as it relates to the ICC primarily concerns the Commission's remaining jurisdiction over the motor carrier industry. While the Motor Carrier Act of 1980 did indeed reduce the Com- mission's role in regulating the industry, the ICC retains some basic and essential functions, including enforcement of the filed rate doctrine and the issuance ofoperating permits. One of the purposes of this hearing is to determine whether or not it is in the public interest to maintain these functions under the auspices of an independent regulatory Agency, the ICC, or transfer them to an Agency such as the Department of Transpor- tation. Several of our colleagues from whom we will hear this afternoon, John Kasich, Joel Hefley, Tom DeLay, and Gary Condit, in particu- lar, are seeking to sunset the ICC and facilitate the transfer of its responsibilities to the DOT. In this regard, we have pending before the subcommittee several bills, including H.R. 3127, submitted by Mr. Kasich. Today we will examine their proposal, but we will do so only in terms ofwhether or not it would reduce the Federal budget deficit. The public interest in this matter transcends the budgetary situ- ation. Therefore, we will also investigate whether the transfer of the ICC's responsibilities would impede or enhance the effective ad- ministration ofits regulatory consumer protection mandates. I now recognize our ranking minority member, the gentleman from Wisconsin, Mr. Petri. Mr. Petri. Thank you very much, Mr. Chairman.