On August 13, 2024, Washington Legal Foundation filed a comment with the U.S. Surface Transportation Board urging the Board to consider its enforcement of the Staggers Act’s common-carrier obligation during an upcoming two-day hearing. The hearing will address STB’s concern with perceived stagnating growth and the need for increased innovation in the freight rail industry. WLF’s comment, drawing on a WLF Legal Backgrounder by regulatory expert Bernard Sharfman, argues that the Board’s shifting position on when it can compel a rail carrier to haul a shipper’s freight poses heightened regulatory risk and deprives carriers and shippers of the clear standards needed for growth and innovation. The Board’s departure from the Staggers Act also exposes it to APA legal challenges, which could foment additional uncertainty.
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