Changes to Delegations

SURFACE TRANSPORTATION BOARD

49 CFR Parts 1011, 1152, and 1244

Changes to Delegations

Surface Transportation Board.

Final rule.

In this final rule, the Board is revising its regulations to clarify certain existing delegations of authority and create certain new delegations for the Board's Chief Counsel and Chief of Passenger Rail and Investigations (COPRI). The Board is also creating a new regulation that codifies and expands the Board's grant stamp procedures and is revising certain regulations to make nomenclature changes.

This final rule is effective on September 17, 2026.

Amy Ziehm at (202) 918-5462. If you require an accommodation under the Americans with Disabilities Act, please call (202) 245-0245.

As discussed in more detail below, the Board is revising its existing delegations at 49 CFR 1011.6 and 1011.7 to clarify that the Board's Chief Counsel has authority to (i) resolve discovery disputes in Board proceedings and (ii) with respect to routine procedural matters, determine whether to accept late-filed procedural motions, revise deadlines established by entire Board decision, and establish reply deadlines that differ from the default 20-day reply period in the Board's regulations. The Board also is newly delegating to the Chief Counsel the authority to determine (i) whether to approve, and if necessary, condition, certain transactions involving motor carriers of passengers subject to the Board's jurisdiction and (ii) whether to waive the advance notice requirements in certain exempt acquisition and operation proceedings. Additionally, the Board will newly delegate to the COPRI the authority to perform certain functions related to the submission of evidence and routine procedural matters in passenger rail proceedings under 49 U.S.C. 24308. The Board will also create a new section at 49 CFR 1011.8 to codify and expand its grant stamp procedures. Finally, the Board will make nomenclature corrections at 49 CFR 1152.20, 49 CFR 1152.50, and 49 CFR 1244.9 to reflect a name change for the U.S. Army Transportation Command and to clarify and standardize other agency references.

Delegations of Authority to the Chief Counsel

i. Discovery Disputes

It has been the Board's practice that discovery disputes may be resolved initially by the Director of the Office of Proceedings (the Director), now the Chief Counsel.\1\ See, e.g., Evergy, Inc. v. BNSF Ry., NOR 42180 (STB served Sept. 24, 2024); Canadian Pac. Ry.-- Control--Dakota, Minn. & E. R.R., FD 35081 (Sub-No. 2) (STB served Mar. 26, 2014); Ballard Terminal R.R.--Acquis. & Operation Exemption-- Woodinville Subdiv., FD 35731 et al. (STB served Jan. 31, 2014). For clarity, the Board will revise its regulations at 49 CFR 1011.7(a) to codify that the Chief Counsel has the authority to resolve discovery disputes raised in Board proceedings.

\1\ In August 2025, the Board's two legal offices (the Office of Proceedings and the Office of the General Counsel) were combined to form the Office of Chief Counsel, and the Chief Counsel assumed the responsibilities and delegations previously held by the Director. Interim Delegations, EP 784 (STB served Aug. 4, 2025); see also Nomenclature Corrs. Due to Office Reorg., Removal of Obsolete References, & Payment Processing Changes, EP 786 (STB served Jan. 30, 2026). The Office of Chief Counsel also houses the COPRI.

ii. Routine Procedural Matters

Under 49 CFR 1011.6(c)(3), the Chief Counsel is delegated the "authority to dispose of routine procedural matters in proceedings assigned for handling under modified procedure, other than those assigned to an administrative law judge or a Board Member." In practice, this delegation has been applied to permit the Chief Counsel to accept and decide pleadings related to routine procedural matters even when those pleadings are untimely. See, e.g., Oakland Global Rail Enter.--Pet. for Declaratory Ord., FD 36168, slip op. at 2 n.2 (STB served Aug. 1, 2018); Atlanta Dev. Auth.--Verified Pet. for Declaratory Ord., FD 35991, slip op. at 3 n.5 (STB served June 8, 2016). It has also been applied to permit the Chief Counsel to revise filing deadlines, including those set by entire Board decision,\2\ and establish deadlines for replies that differ from the default 20-day reply period in 49 CFR 1104.13.\3\ See, e.g., Norfolk S. Corp.--Acquis. of Control--Norfolk & Portsmouth Belt Line R.R., FD 36836 (STB served Aug. 21, 2025) (granting motion to modify procedural schedule initially set by entire-Board decision); Norfolk S. Corp.--Acquis. of Control-- Norfolk & Portsmouth Belt Line R.R., FD 36836 (STB served June 16, 2025) (setting four-day deadline for comments limited to the completeness of the application); Union Pac. R.R.--Operation Exemption--in Tooele Cnty., Utah, FD 36741 (STB served Dec. 22, 2023) (approving extension of default 20-day reply period set forth in 49 CFR 1104.13(a)). In this final rule, the Board will revise and clarify 49 CFR 1011.6(c)(3) to codify these existing practices. The Board will decide appeals from decisions of employees acting under authority delegated under 49 CFR 1011.6. See 49 CFR 1011.6(b).

\2\ Under 49 CFR 1011.4(a)(2), "[e]xtensions of time for compliance with orders and procedural matters in any formal case or pending matter" are issues generally referred to the Chairman of the Board. Section 1011.6 delegates the authority to dispose of routine procedural matters (e.g., extension of time requests) from the Chairman to the Chief Counsel. \3\ Section 1104.13 provides that "[a] party may file a reply or motion addressed to any pleading within 20 days after the pleading is filed with the Board, unless otherwise provided," (emphasis added).

The Board will also update its regulations to reflect that the Board assigns and authorizes administrative law judges in Board proceedings. See Lucia v. Sec. & Exch. Comm'n, 585 U.S. 237, 247-252 (2018). Specifically, in 49 CFR 1011.6(c)(1), the Board will remove "the assignment of proceedings to administrative law judges" from the definition of "procedural matter" and, in 49 CFR 1011.2(a), the Board will add a new paragraph clarifying that the Board reserves to itself the assignment of proceedings to administrative law judges.

iii. Motor Carrier Transactions

The Board will revise 49 CFR 1011.7(a) to newly delegate to the Chief Counsel the authority to determine whether to approve and, where appropriate, condition unopposed transactions involving motor carriers of passengers governed by 49 U.S.C. 14303 and 49 CFR part 1182. Part 1182 covers applications for authority under 49 U.S.C. 14303 to consolidate, merge, purchase, lease, or contract to operate the properties or franchises of motor carriers of passengers, or to acquire control of motor carriers of passengers. Board approval is only required for transactions where the aggregate gross operating revenues of the parties to the proposed transaction exceed $2 million during a period of 12 consecutive months, ending no more than six months prior to the date of the parties' agreement. 49 U.S.C. 14303(g). The Board is required to approve the proposed transaction when it finds it consistent with the public interest and may impose conditions governing the transaction. 49 U.S.C. 14303(b). In considering an application, the Board must consider the effect of the proposed transaction on the adequacy of transportation to the public, the total fixed charges that result from the proposed transaction, and the interest of carrier employees affected by the proposed transaction. 49 U.S.C. 14303(b). Within 30 days after an application is filed, the Board must either publish notice of the application in the Federal Register or reject the

application if it is incomplete. 49 U.S.C. 14303(c). Under 49 CFR 1182.4(a), applicants may be given an opportunity to correct minor errors or omissions. If the application is accepted, the Federal Register publication gives notice to the public, in the form of a tentative grant of authority, and sets a deadline for comments on the proposed transaction. 49 CFR 1182.4(b), 1182.5. If no opposing comments are timely filed, the notice takes effect automatically and is the final Board action in the proceeding. 49 CFR 1182.5(a). If timely comments are submitted in opposition to the application, the tentative grant of authority is void and the Board may issue a decision making a final determination \4\ on whether to grant the application. 49 CFR 1182.6(a), (c).

\4\ The Board may issue a procedural schedule seeking additional evidence prior to issuing its final decision. 49 CFR 1182.6(c)(2).

Proceedings filed under 49 U.S.C. 14303 and 49 CFR part 1182 are rarely controversial. Most proposed transactions are found to be consistent with the public interest based on the information applicants provide to the Board and are unopposed. Delegating authority to the Chief Counsel to accept and approve unopposed applications will enhance administrative efficiency and save Board resources. This new delegation will permit the Chief Counsel to tentatively approve complete applications, impose conditions on such approvals when necessary, direct applicants to file additional information to correct minor errors or omissions, and reject incomplete applications. This delegation, however, would not extend to opposed applications under 49 CFR 1182.6 or grants of interim approval under 49 CFR 1182.7.\5\ Rather, those issues will be addressed by a full Board decision. Additionally, pursuant to 49 CFR 1011.2(a)(6), the Board will continue to reserve to itself the consideration and disposition of all matters involving issues that it finds to be of general transportation importance.

\5\ Under 49 CFR 1182.7(a), a party may request interim approval of the operation of the properties sought to be acquired through the proposed transaction, for a period of not more than 180 days pending determination of the application. Such a request must show that failure to grant interim approval of operation may result in destruction of or injury to those properties or substantially interfere with their future usefulness in providing adequate and continuous service to the public. 49 CFR 1182.7(b).

iv. Waivers of Advance Notice Requirements

The Board will revise 49 CFR 1011.7(a) to newly delegate to the Chief Counsel the authority to determine whether to approve requests for waiver of the 60-day advance notice requirements of 49 CFR 1150.32(e) and 1150.42(e). Section 1150.32 governs noncarriers that seek acquisition or operation authority under the Board's notice of exemption procedures, and section 1150.42 governs established Class III carriers that seek acquisition or operation authority under the same procedures. Under 49 CFR 1150.32(e), if the projected annual revenue of the carrier to be created by the transaction exceeds $5 million, an applicant must, at least 60 days before the exemption becomes effective, post a notice of intent to undertake the proposed transaction at the workplace of employees on the affected lines, serve a copy of the notice on the national offices of the labor unions with employees on the affected lines, and certify to the Board that it has done so. Under 49 CFR 1150.42(e), an applicant must satisfy the same 60-day advance notice requirement if the projected annual revenue of the rail lines to be acquired or operated, together with the acquiring carrier's projected annual revenue, exceeds $5 million. In some cases, parties seeking authority for transactions subject to 49 CFR 1150.32 or 1150.42 ask the Board to waive the 60-day advance notice requirement where the subject transaction would have no impact on any railroad employees. The Board has routinely granted such unopposed waivers where the purpose behind the notice requirement would not be thwarted or substantially diminished by the waiver. See, e.g., Ark. Midland R.R.--Lease & Operation Exemption Including Interchange Commitment--Union Pac. R.R., FD 36885 (STB served Dec. 9, 2025) (waiving notice requirement in 49 CFR 1150.42 to allow incumbent carrier to extend lease where no employees would be adversely affected by the waiver); Willamette & Pac. R.R.--Lease & Operation Exemption Including Interchange Commitment--Union Pac. R.R., FD 36827 (STB served May 9, 2025) (same); Tex. N.M. Ry., L.L.C.--Acquis. Exemption--Austin & NW R.R., FD 35930 (STB served June 26, 2015) (granting unopposed request for partial waiver of notice requirement in 49 CFR 1150.32 to facilitate expedited consummation); Keystone R.R. LLC-Acquis. & Operation Exemption--Keystone R.R., FD 34157 (Dec. 27, 2001) (waiving notice requirement where transaction would not result in changes to operations, bargaining agreements, or personnel). To enhance the administrative efficiency of the agency, the Board will delegate to the Chief Counsel the authority to determine whether to grant such requests for waiver. These waiver requests are rarely controversial. Additionally, as noted above, these requests are filed in cases proceeding under the Board's notice of exemption procedures, and the authority to decide whether to issue notices of exemption under 49 CFR part 1150 is already delegated to the Chief Counsel. See 49 CFR 1011.7(a)(3)(x)(A). When appropriate, the Chief Counsel may grant such waiver requests using the Board's grant stamp procedures, which are discussed in more detail below. As with other delegated authorities, the Board will decide appeals of decisions issued by the Chief Counsel.

Delegations to the COPRI

The Board will delegate to the COPRI the authority to perform certain functions in connection with passenger rail proceedings conducted pursuant to 49 U.S.C. 24308, which include proceedings in which a rail carrier or regional transportation authority and Amtrak cannot reach agreement on Amtrak's use of facilities, 49 U.S.C. 24308(a), and investigations regarding Amtrak's on-time performance, 49 U.S.C. 24308(f). Specifically, consistent with prior practice,\6\ the Board will revise 49 CFR 1011.7 to delegate to the COPRI the authority, in section 24308 proceedings, to direct parties to clarify, modify, or reformat evidence that was previously submitted, or to produce evidence to supplement evidence that was previously submitted (including evidence that was provided pursuant to a decision of the entire Board). Additionally, the Board will revise 49 CFR 1011.6 to delegate to the COPRI the authority to dispose of routine procedural matters in section 24308 proceedings.\7\ The COPRI will also be authorized to issue decisions by grant stamp, where appropriate, as discussed further below.

\6\ Compl. & Pet. of the Nat'l R.R. Passenger Corp. Under 49 U.S.C. 24308(f)--for Substandard Performance of Amtrak's Sunset Ltd. Trains 1 & 2, NOR 42175, slip op. at 1-2, 2 n.2 (STB served Feb. 6, 2024). \7\ This delegation to the COPRI does not limit or change the existing delegation to the Chief Counsel to dispose of routine procedural matters in cases pending before the Board. See 49 CFR 1011.6.