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Energy Policy Act Transportation Rate Study: Final Report on Coal Transportation

October 1, 2000

Preface

This is the final in a series of reports prepared for the U.S. Congress by the Secretary of Energy on coal distribution and transportation rates as mandated by Title XIII, Section 1340, “Establishment of Data Base and Study of Transportation Rates,” of the Energy Policy Act of 1992 (P.L. 102-486).

Section 1340 of the Energy Policy Act of 1992 states:

(a) Data Base - The Secretary [of Energy] shall review the information currently collected by the Federal Government and shall determine whether information on transportation rates for rail and pipeline transport of domestic coal, oil, and gas during the period of January 1, 1988, through December 31, 1997, is reasonably available. If he determines that such information is not reasonably available, the Secretary shall establish a data base containing, to the maximum extent practicable, information on all such rates. The confidentiality of contract rates shall be preserved. To obtain data pertaining to rail contract rates, the Secretary shall acquire such data in aggregate form only from the Interstate Commerce Commission, under terms and conditions that maintain the confidentiality of such rates.

(b) Study - The Energy Information Administration shall determine the extent to which any agency of the Federal Government is studying the rates and distribution patterns of domestic coal, oil, and gas to determine the impact of the Clean Air Act as amended by the Act entitled “An Act to amend the Clean Air Act to provide for attainment and maintenance of health protective national ambient air quality standards, and for other purposes,” enacted November 15, 1990 (Public Law 101-549), and other Federal policies on such rates and distribution patterns. If the Energy Information Administration finds that no such study is underway, or that reports of the results of such study will not be available to the Congress providing the information specified in this subsection and subsection (a) by the dates established in subsection (c), the Energy Information Administration shall initiate such a study.

(c) Reports to Congress - Within one year after the date of enactment of this Act, the Secretary shall report to the Congress on the determination the Energy Information Administration is required to make under subsection (b). Within three years after the date of enactment of this Act, the Secretary shall submit reports on any data base or study developed under this section. Any such reports shall be updated and resubmitted to the Congress within eight years after such date of enactment. If the Energy Information Administration has determined pursuant to subsection (b) that another study or studies will provide all or part of the information called for in this section, the Secretary shall transmit the results of that study by the dates established in this subsection, together with his comments.

(d) Consultation with Other Agencies - The Secretary and the Energy Information Administration shall consult with the Chairmen of the Federal Energy Regulatory Commission and the Interstate Commerce Commission in implementing this section.

The data for this report were collected and processed through the considerable effort and cooperation of a number of people: Doug Matyas and Patricia Morris of the Federal Energy Regulatory Commission (FERC); Jim Nash and Bill Washburn of the Surface Transportation Board; Dan Walzer of SAIC, who pored over thousands of pages of FERC Form 580 reports over the years; Abbas Malekghassemi, who developed programs and systems to process and analyze the Coal Transportation Rate Database; Dan Hurley of Washington Consulting Group, who contributed tirelessly in data validation and analysis; Terry Varley, Terri Thigpen, and Sarah Loats of Walcoff Technologies who put text and statistics into clear formats and a readable report, and Kenny McClevey of EIA, who lent his expertise with FERC Form 423 to resolve differences with FERC Form 580 data.

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