2140-XXXX Supporting Statement - Arbitration for Small Rate Disputes (to ROCIS)

2140-00XX
March 2022
SUPPORTING STATEMENT
FOR REQUEST OF OMB APPROVAL
UNDER THE PAPERWORK REDUCTION ACT AND 5 C.F.R. § 1320
The Surface Transportation Board (STB or Board) requests approval for the information
collections of the Arbitration Program for Small Rate Disputes.
A. Justification:
1. Need for Information in Collection. Under 49 U.S.C. § 11708, the Board is required
to “promulgate regulations to establish a voluntary and binding arbitration process to resolve rail
rate and practice complaints” that are subject to the Board’s jurisdiction. In a Notice of Proposed
Rulemaking (NPRM), the Board proposes to provide parties with additional options for
resolution of smaller rail rate disputes, furthering the Board’s policy favoring the use of
mediation and arbitration procedures. To be effective, the proposed Arbitration Program for
Small Rate Cases provides the parties with alternatives to traditional litigation, encompassing (a)
Arbitration “Opt-In” Notices, (b) Initial Notices of Intent to Arbitrate, (c) Joint Notices to
Arbitrate, (d) Post-Arbitration Summaries, and (e) Appeals of Arbitrators’ Decision.
2. Use of Data Collected. Under the proposed 49 C.F.R. part 1108, subpart B, Class I
(large) rail carriers subject to the Board’s jurisdiction may agree to participate in the Board’s
arbitration program by filing a notice with the Board to “opt in” to arbitration. These “Opt-In”
Notices have a five-year term, and, once a rail carrier is participating in the Board’s arbitration
program, it may withdraw from participation only if there is a material change in the law
regarding how the railroad rates are challenged.
To initiate an actual arbitration over a rate dispute, a shipper may submit an Initial Notice
of Intent to Arbitrate to the railroad stating that it wishes to invoke the arbitration process. The
parties may then explore mediation. If the mediation is waived or is unsuccessful, the parties
may send a Joint Notice to Arbitrate to the Board’s Office of Public Assistance, Governmental
Affairs, and Compliance, alerting that office that they intend to proceed to the arbitration phase
of the Board’s proposed small rate case arbitration program, upon which time certain waybill
data may be available to them.
Upon conclusion of arbitration, the arbitrator’s decision is confidential and not filed with
the Board. The parties are required, however, to provide a post-arbitration summary to the Board
within 14 days after the arbitrators’ decision. Finally, the parties may appeal an arbitration
decision, requesting that the Board vacate or modify the arbitrators’ decision (at which time, a
confidential version of the arbitration decision would be provided to the Board). To implement
these new rules, the Board initiated a notice of proposed rulemaking proceeding. Joint Petition
for Rulemaking to Establish a Voluntary Arbitration Program for Small Rate Disputes, EP 765
(Small Disputes Arbitration NPRM). These are the steps that provide for the collection of
information under the PRA.

3. Reduction through Improved Technology. The Board expects all respondents to file
any of the proposed notices, summaries, and appeals electronically.
4. Identification of Duplication. No other federal agency collects the information in
these collections, and the information in these collections is not available from any other source.
5. Minimizing Burden for Small Business. None of these collections will have a
significant economic impact on a substantial number of small entities. The collections allow
parties to resolve potential small rate disputes more quickly and efficiently.
6. Consequences if Collection not Conducted or Conducted Less Frequently. Without
these collections, the Board could not encourage greater use of arbitration, and rail carriers and
shippers may not have access to the Board’s dispute resolution program in some situations.
7. Special Circumstances. No special circumstances apply to this collection.
8. Compliance with 5 C.F.R. § 1320.8. As required, the Board published its proposed
rule change in Small Disputes Arbitration NPRM (86 Fed. Reg. 67588 (November 26, 2021)),
which provided for a 49-day comment period (and an additional 60-day period for reply
comments through March 15, 2022) regarding this collection, with specific reference to concerns
detailed in the Paperwork Reduction Act, 44 U.S.C. §§ 3501-3521 and Office of Management
and Budget (OMB) regulations at 5 C.F.R. § 1320.8(d)(3). The comment period was extended in
Small Disputes Arbitration NPRM (87 Fed. Reg. 536 (January 5, 2022)), which provided for an
additional 31-day period for reply comments through April 15, 2022.
9. Payments or Gifts. The Board does not provide any payment or gifts for this
collection.
10. Assurance of Confidentiality. All information collected through this report will be
subject to the Board’s confidentiality procedures.
11. Sensitive Information. This collection may contain sensitive information, but it is
necessary to process information for the Board’s arbitration program, and sensitive information
is collected and handled consistent with the Board’s rules.

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12. Estimated Burden Hours. 273 hours. As provided in Table – Total Estimated
Annual Burden Hours below (using sum of estimated hours per response x number of annual
responses for each type of filing).
Table – Total Estimated Annual Burden Hours
Type of filing
“Opt-In” Notices*
Initial Notices
Joint Notices
Post-Arbitration Summaries
Appeals of Arbitrators’ Decision
Total annual burden hours

Hours per
response
1
1
2
3
25

Annual number of Total annual burden
filings
hours
3
3
21
21
18
36
21
63
6
150
69
273

* Each of the seven “Opt-In” Notices have a five-year term and have been averaged over three
years and rounded up.

13. Estimated Total Annual Cost to Respondents. There are no non-hourly burden costs
for this collection. The itemized collections may be filed electronically.
14. Annualized Cost to the Federal Government. We estimate that the maximum cost to
the Board of entering the notices into the Board’s e-Library under the appropriate docket and
posting the searchable pdf's to the website would total no more than 69 staff hours (one hour per
notice X 69 notices filed (for notices, summaries, and appeals)) at a GS-12 pay grade.
15. Explanation of Program Changes or Adjustments. This ICR is due to the Board
creating an arbitration program for small rate disputes that did not exist.
16. Plans for tabulation and publication. The information in this collection that is not
confidential will be posted on the Board’s website, located at www.stb.gov.
17. Display of expiration date for OMB approval. The new expiration date for this
collection will be published in the Federal Register when the collection is approved by OMB.
18. Exceptions to Certification Statement. Not applicable.

B. Collections of Information Employing Statistical Methods.
Not applicable.

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