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(1) striking ‘‘Subject to this chapter and other
law, the’’ in subsection (a), and inserting ‘‘The’’;
(2) inserting ‘‘of property’’ after ‘‘transpor-
tation’’ in subsection (a);
(3) striking ‘‘express carrier, sleeping car car-
rier,’’ in subsection (a)(1);
(4) striking ‘‘passengers or’’ in subsection (b)(1);
(5) by striking ‘‘or’’ at the end of subsection
(b)(1);
(6) by striking the period at the end of sub-
section (b)(2) and inserting a semicolon and ‘‘or’’;
(7) by adding at the end of subsection (b) the fol-
lowing:
‘‘(3) transportation by a commuter authority, as
defined in section 24102 of this title, except for sec-
tions 11103, 11104, and 11503.’’;
(8) striking ‘‘subchapter’’ in subsection (c) and
inserting ‘‘chapter’’ and by striking ‘‘(1) the trans-
portation is deemed to be subject to the jurisdiction
of the Commission pursuant to section 11501(b)(4)(B)
of this title, or (2)’’ in subsection (c); and
(9) striking ‘‘(b)’’ after ‘‘section 11501’’ in sub-
section (d).
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SEC. 305. RAILROAD AND WATER TRANSPORTATION CON-
NECTIONS AND RATES.
Section 10503 is amended by—
(1) striking ‘‘passengers or’’ each place it ap-
pears in subsection (a)(2); and
(2) 
striking 
‘‘passengers,’’ 
in 
subsection
(a)(2)(B).
SEC. 306. AUTHORITY TO EXEMPT RAIL CARRIER AND
MOTOR CARRIER TRANSPORTATION.
Section 10505 is amended by—
(1) striking ‘‘rail carrier and motor carrier’’
from the section heading;
(2) striking subsection (a) and inserting the fol-
lowing:
‘‘(a) In a matter subject to the jurisdiction of the Inter-
modal Surface Transportation Board under this chapter,
the Transportation Board shall exempt a person, class of
persons, or a transaction or service from the application
of a provision of this title in whole or in part within 180
days after the filing of an application for an exemption,
when the Transportation Board finds that the application
of that provision in whole or in part—
‘‘(1) is not necessary to carry out the transpor-
tation policy of section 10101 or section 10101a of
this title; and
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‘‘(2) either (A) the transaction or service is of
limited scope, or (B) the application of a provision
of this title is not needed to protect shippers from the
abuse of market power.’’;
(3) striking subsection (d) and inserting the fol-
lowing:
‘‘(d) The Transportation Board shall revoke an exemp-
tion in whole or in part, to the extent that application of
a provision of this title to the person, class, or transpor-
tation is necessary to carry out the transportation policy
of section 10101a of this title. The Transportation Board
shall conclude a proceeding under this subsection within
180 days. In acting upon a request for revocation, the
Transportation Board shall consider the availability of
other economic transportation alternatives, in addition to
any other competitive factors it deems relevant. If a request
for revocation under this subsection is accompanied by a
complaint seeking monetary damages for a violation of a
provision of this title by a railroad, and the Transportation
Board does not render a final decision on such request with-
in 180 days after the filing of the revocation request and
complaint, then any monetary damages which the Trans-
portation Board may award at the conclusion of the pro-
ceeding shall be calculated from no later than the 181st day
following the filing of the revocation request and complaint
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if the Transportation Board finds that such failure to
render a final decision within 180 days is due in substan-
tial part to dilatory practices of the railroad.’’;
(4) striking subsection (f) and inserting the fol-
lowing:
‘‘(f) The Transportation Board may exercise its au-
thority under this section to exempt transportation that is
provided by a carrier as a part of a continuous intermodal
movement.’’; and
(5) striking subsection (g) and inserting the fol-
lowing:
‘‘(g) The Transportation Board may not exercise its
authority under this section to relieve a carrier of its obliga-
tion to protect the interests of employees as required by this
part.’’.
SEC. 307. STANDARDS FOR RATES, CLASSIFICATIONS, ETC.
Section 10701 is amended by—
(1) redesignating subsection (c) as subsection (b);
(2) striking ‘‘subchapter I or III of chapter 105’’
in subsection (b) as so redesignated and inserting
‘‘chapter 105’’;
(3) striking ‘‘the jurisdiction of the Commission
under either of those subchapters’’ in subsection (b) as
so redesignated and inserting ‘‘jurisdiction either
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under chapter 105 of this part or under part B of this
subtitle’’; and
(4) striking subsections (d) through (f).
SEC. 308. STANDARDS FOR RATES FOR RAIL CARRIERS.
Section 10701a is amended by—
(1) striking ‘‘subchapter I of’’ in subsection (a);
(2) striking ‘‘lesser of the percentages described
in clauses (i) and (ii) of section 10707a(e)(2)(A) of
this title’’ in subparagraphs (2)(A)(i) and (2)(B)(i) of
subsection (b), and inserting ‘‘percentage described in
section 10707a(d)(1)’’; and
(3) adding at the end of subsection (b) the follow-
ing:
‘‘(4)(A) Within 1 year after the date of enact-
ment of the Interstate Commerce Commission Sunset
Act of 1995, the Transportation Board shall complete
the Interstate Commerce Commission non-coal rate
guidelines proceeding pending on the date of enact-
ment of the Interstate Commerce Commission Sunset
Act of 1995 to establish a simplified and expedited
method for determining the reasonableness of chal-
lenged rail rates in those cases in which a full stand-
alone cost presentation is too costly given the value of
the case.
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‘‘(B) Within 6 months after that date of enact-
ment, the Transportation Board shall establish proce-
dures to ensure expeditious handling of challenges to
the reasonableness of railroad rates. The procedures
shall include appropriate measures for avoiding delay
in the discovery and evidentiary phases of such pro-
ceedings and for ensuring prompt disposition of mo-
tions and interlocutory administrative appeals.
‘‘(C) In a proceeding to challenge the reasonable-
ness of a railroad rate, other than a proceeding aris-
ing under section 10707 of this title, the Transpor-
tation Board shall make its determination as to the
reasonableness of the challenged rate—
‘‘(i) within 6 months after the close of the
administrative record if the determination is
based upon a stand-alone cost presentation, or
‘‘(ii) within 3 months after the close of the
administrative record if the determination is
based upon the methodology adopted by the
Board pursuant to paragraph (4)(A).’’.
SEC. 309. AUTHORITY FOR CARRIERS TO ESTABLISH RATES,
CLASSIFICATIONS, ETC.
Section 10702 is amended by—
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(1) beginning with ‘‘service,’’ in paragraph (2)
of subsection (a) striking all that follows and insert-
ing ‘‘service.’’; and
(2) striking subsections (b) and (c).
SEC. 310. AUTHORITY FOR CARRIERS TO ESTABLISH
THROUGH ROUTES.
Section 10703 is amended by—
(1) striking ‘‘, express, sleeping car,’’ in para-
graph (1) of subsection (a);
(2) striking paragraphs (3) and (4) of subsection
(a); and
(3) replacing ‘‘Commission under subchapter I,
II (insofar as motor carriers of property are con-
cerned), or III of’’ in subsection (b) with ‘‘Transpor-
tation Board under’’.
SEC. 311. AUTHORITY AND CRITERIA FOR PRESCRIBED
RATES, CLASSIFICATIONS, ETC.
Section 10704 is amended by—
(1) striking ‘‘subchapter I of’’ and ‘‘(including a
maximum or minimum rate, or both)’’ in the first
sentence of subsection (a)(1);
(2) striking ‘‘subchapter’’ in the first sentence of
subsection (a)(2) and inserting ‘‘chapter’’;
(3) striking the third sentence of subsection
(a)(2);
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(4) striking paragraph (3) of subsection (a) and
redesignating paragraph (4) as (3);
(5) striking ‘‘within 180 days after the effective
date of the Staggers Rail Act of 1980 and’’ and
‘‘thereafter’’ in subsection (a)(3), as redesignated;
(6) striking subsections (b), (c), (d) and (e);
(7) redesignating subsection (f) as subsection (b);
(8) striking ‘‘on its own initiative or’’ in sub-
section (b) as redesignated; and
(9) striking the last sentence of subsection (b), as
redesignated.
SEC. 312. AUTHORITY FOR PRESCRIBED THROUGH ROUTES,
JOINT CLASSIFICATIONS, ETC.
Section 10705 is amended by—
(1) striking ‘‘subchapter I, II (except a motor
common carrier of property), or III of’’, and ‘‘(in-
cluding maximum or minimum rates or both)’’ in
paragraph (1) of subsection (a);
(2) striking paragraph (3) of subsection (a);
(3) striking subsections (b) and (h) and redesig-
nating subsections (c) through (g) as subsections (b)
through (f);
(4) striking ‘‘or (b)’’ and ‘‘, water carrier, or
motor common carrier of property’’ in subsection (b),
as redesignated;
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(5) striking ‘‘tariff’’ in subsection (d), as redesig-
nated, and inserting ‘‘proposed rate change’’;
(6) striking ‘‘, water common carrier, or motor
common carrier of property’’ in subsection (d), as re-
designated;
(7) striking ‘‘or (b)’’ and ‘‘on its own initiative
or’’ in the first sentence of subsection (e)(1) as redes-
ignated;
(8) striking ‘‘if the proceeding is brought on com-
plaint or within 18 months after the commencement
of a proceeding on the initiative of the Commission’’
in the second sentence of subsection (e)(1), as redesig-
nated; and
(9) striking ‘‘subsection (f)’’ in subsection (f), as
redesignated, and inserting ‘‘subsection (e)’’.
SEC. 313. ANTITRUST EXEMPTION FOR RATE AGREEMENTS.
Section 10706 is amended by—
(1) striking subsection (a)(3)(B);
(2) redesignating paragraphs (3)(C) and (D) of
subsection (a) as paragraphs (3)(B) and (C);
(3) 
striking 
‘‘consider’’ 
in 
subsection
(a)(3)(B)(ii)(II), as redesignated, and inserting ‘‘con-
sidered’’;
(4) striking ‘‘subchapter I of’’ in subsection
(a)(5)(A);
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(5) striking ‘‘the effective date of the Staggers
Rail Act of 1980’’ in subsection (a)(5)(C), and insert-
ing ‘‘October 1, 1980,’’;
(6) striking subsections (b), (c), and (d) and re-
designating subsections (e) through (g) as subsections
(b) through (d);
(7) striking the first sentence of subsection (c), as
redesignated, and inserting ‘‘The Transportation
Board may review an agreement approved under sub-
section (a) of this section and shall change the condi-
tions of approval or terminate it when necessary to
comply with the public interest.’’;
(8) striking ‘‘subsection (a), (b), or (c) of this
section.’’ in subsection (d), as redesignated and insert-
ing ‘‘subsection (a).’’; and
(9) striking subsections (h) and (i).
SEC. 314. INVESTIGATION AND SUSPENSION OF NEW RAIL
RATES, ETC.
Section 10707 is amended by—
(1) striking the first sentence of subsection (a)
and inserting ‘‘When a new individual or joint rate
or individual or joint classification, rule, or practice
related to a rate is proposed by a rail carrier provid-
ing transportation subject to the jurisdiction of the
Intermodal Surface Transportation Board under
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chapter 105 of this title, the Transportation Board
may begin a proceeding, on complaint of an inter-
ested party, to determine whether the proposed rate,
classification, rule, or practice violates this part.’’;
(2) striking subsection (d)(3) and redesignating
subsection (d)(4) as (d)(3);
(3) striking ‘‘or section 10761’’ in subsection
(d)(3), as redesignated; and
(4) striking ‘‘the Commission shall, by rule, es-
tablish standards and procedures permitting a rail
carrier to ’’ in subsection (d)(3), as redesignated, and
inserting ‘‘a rail carrier may’’.
SEC. 315. ZONE OF RAIL CARRIER RATE FLEXIBILITY.
Section 10707a is amended by—
(1) striking ‘‘Commencing with the fourth quar-
ter of 1980, the’’ in subsection (a)(2)(B) and inserting
‘‘The’’;
(2) striking ‘‘subchapter I of chapter 105 of this
title may’’ in subsection (b)(1) and inserting ‘‘chapter
105 of this title is authorized to’’;
(3) inserting a period after ‘‘involved’’ in para-
graph (1) of subsection (b) and striking the remainder
of the paragraph;
(4) striking ‘‘may not’’ in subsection (b)(3) and
inserting ‘‘is not authorized to’’;
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(5) striking ‘‘(A)’’ and ‘‘or (B) inflation based
rate increases under section 10712 of this title appli-
cable to that rate’’ in subsection (b)(3);
(6) striking subsections (c), (d) and (e), redesig-
nating subsections (f), (g), and (h) as subsections (d),
(e), and (f), and inserting after subsection (b) the fol-
lowing:
‘‘(c) In determining whether a rate is reasonable, the
Transportation Board shall consider, among other factors,
evidence of the following:
‘‘(1) the amount of traffic which is transported
at revenues which do not contribute to going concern
value and efforts made to minimize such traffic;
‘‘(2) the amount of traffic which contributes only
marginally to fixed costs and the extent to which, if
any, rates on such traffic can be changed to maximize
the revenues from such traffic; and
‘‘(3) the carrier’s mix of rail traffic to determine
whether one commodity is paying an unreasonable
share of the carrier’s overall revenues.’’; and
(7) by striking subsection (d), as redesignated,
and inserting the following:
‘‘(d)(1) A finding by the Board that a rate increase
exceeds the increase authorized under this section does not
establish a presumption that (A) the rail carrier proposing
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‘‘(ii) the amount of traffic which contributes only
marginally to fixed costs and the extent to which, if
any, rates on such traffic can be changed to maximize
the revenues from such traffic; and
‘‘(iii) the impact of the proposed rate or rate in-
crease on the attainment of the national energy goals
and the rail transportation policy under section
10101a of this title, taking into account the railroads’
role as a primary source of energy transportation and
the need for a sound rail transportation system in ac-
cordance with the revenue adequacy goals of section
10704 of this title.
This subparagraph shall not be construed to change existing
law with regard to the nonreviewability of such determina-
tion.’’.
SEC. 316. INVESTIGATION AND SUSPENSION OF NEW PIPE-
LINE CARRIER RATES, ETC.
Section 10708 is amended by—
(1) striking subsection (a)(1) and inserting the
following:
‘‘(a)(1) The Intermodal Surface Transportation Board
may begin a proceeding to determine the lawfulness of a
proposed rate, classification, rule, or practice on applica-
tion of an interested party when a new individual or joint
rate or individual or joint classification, rule, or practice
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affecting a rate is proposed by a pipeline carrier subject
to the Transportation Board’s jurisdiction under chapter
105 of this part.’’;
(2) striking ‘‘an express, sleeping car, or’’ in the
third sentence of subsection (b) and inserting ‘‘a’’;
and
(3) striking subsections (d) through (g).
SEC. 317. DETERMINATION OF MARKET DOMINANCE.
Section 10709 is amended by—
(1) adding at the end of subsection (a) the fol-
lowing: ‘‘In making a determination under this sec-
tion, the Transportation Board shall consider the
availability of other economic transportation alter-
natives, in addition to any other competitive factors
it deems relevant.’’;
(2) striking ‘‘subchapter I of ’’ in the first sen-
tence of subsection (b); and
(3) striking subsection (d) and inserting the fol-
lowing:
‘‘(d) DETERMINATIONS OF RATE CHALLENGES.—
‘‘(1) 180 PERCENT SAFE HARBOR.—In making a
determination under this section, the Transportation
Board shall find that the rail carrier establishing the
challenged rate does not have market dominance over
the transportation to which the rate applies if such
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rail carrier proves that the rate charged results in a
revenue-variable cost percentage for such transpor-
tation that is less than 180 percent.
‘‘(2) METHODOLOGY.—For purposes of determin-
ing the revenue-variable cost percentage for a particu-
lar transportation, variable costs shall be determined
by using the carrier’s costs, calculated using the Uni-
form Railroad Costing System (or an alternative cost
finding methodology adopted by the Transportation
Board in lieu thereof), with use of the current cost of
capital for calculating the return on investment, and
indexed quarterly to account for current wage and
price levels in the region in which the carrier oper-
ates.
‘‘(3) BURDEN
OF
PROOF; REBUTTAL.—A rail
carrier may meet its burden of proof under this sub-
section by so establishing its variable costs, but a
shipper may rebut that showing by evidence of such
type, and in accordance with such burden of proof, as
the Transportation Board may prescribe.
‘‘(4) NO
PRESUMPTIONS
CREATED.—A finding
by the Transportation Board that a rate charged by
a rail carrier results in a revenue-variable cost per-
centage for the transportation to which the rate ap-
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plies that is equal to or greater than 180 percent does
not establish a presumption that—
‘‘(A) such rail carrier has or does not have
market dominance over such transportation, or
‘‘(B) the proposed rate exceeds or does not
exceed a reasonable maximum.’’.
SEC. 318. CONTRACTS.
Section 10713 is amended by—
(1) striking ‘‘subchapter I of ’’ in the first sen-
tence of subsection (a);
(2) striking subsection (b)(1) and inserting the
following:
‘‘(b)(1) A summary of each contract for the transpor-
tation of agricultural products, including grain as defined
in section 3 of the United States Grain Standards Act (7
U.S.C. 75) and products thereof, entered into under this sec-
tion shall be filed with the Transportation Board, contain-
ing such nonconfidential information as the Transportation
Board prescribes. The Transportation Board shall publish
special rules for such contracts in order to assure that the
essential terms of the contract are available to the general
public. The parties to any such contract shall supply a copy
of the full contract to the Transportation Board upon re-
quest.’’;
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(3) striking ‘‘in tariff format’’ in subparagraphs
(A) and (C) of subsection (b)(2);
(4) striking subsection (b)(2)(D);
(5) striking ‘‘other than a contract for the trans-
portation of agricultural commodities (including for-
est products and paper),’’ in subsection (d)(2)(A) and
inserting ‘‘for the transportation of agricultural com-
modities,’’;
(6) strike ‘‘only’’ in (d)(2)(A)(i);
(7) striking ‘‘the case of a contract for the trans-
portation of agricultural commodities (including for-
est products and paper), in’’ in subsection (d)(2)(B);
(8) inserting ‘‘of agricultural commodities’’ after
‘‘filed by a shipper’’ in subsection (d)(2)(B);
(9) striking the last sentence of subsection
(d)(2)(B);
(10) striking ‘‘A contract that is approved by the
Commission’’ in subsection (i)(1) and inserting ‘‘In
any contract entered into after the effective date of the
Interstate Commerce Commission Sunset Act of 1995,
if the shipper in writing expressly waives all rights
and remedies under this part for the transportation
covered by the contract, a contract entered into’’;
(11) striking subsections (l) and (m); and
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(12) striking ‘‘(including forest products but not
including wood pulp, wood chips, pulpwood or
paper)’’ in subsection (i)(1).
SEC. 319. GOVERNMENT TRAFFIC.
The text of section 10721 is amended to read as follows:
‘‘A carrier providing transportation or service for the
United States Government may transport property or indi-
viduals for the United States Government without charge
or at a rate reduced from the applicable commercial rate.
Section 3709 of the Revised Statutes (41 U.S.C. 5) does not
apply when transportation for the United States Govern-
ment can be obtained from a carrier lawfully operating in
the area where the transportation would be provided.’’.
SEC. 320. RATES AND LIABILITY BASED ON VALUE.
Section 10730 is amended by—
(1) striking subsections (a) and (b);
(2) striking ‘‘(c)’’;
(3) striking ‘‘rail carrier’’ and inserting ‘‘car-
rier’’; and
(4) striking ‘‘subchapter I of ’’.
SEC. 321. PROHIBITIONS AGAINST DISCRIMINATION BY
COMMON CARRIERS.
Section 10741 is amended by—
(1) striking ‘‘subchapter I of ’’ in subsection (a);