Staggers Rail Act of 1980
PL 96-448 (S.1946), enacted 10/14/1980

Oct. 14, 1980 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1895 
Public Law 96-448 
96th Congress 
An Act 
To reform the economic r^nilation of railroads* and for otiher purposes. 
[S. 1946] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
I S f ilso^'^ 
49 use 10101 
SHOBT TITLB 
note. 
SECTION 1. This Act may be cited as the "Staggers Rail Act of 1980". 
TABLE OF CONTENTS 
Sec. 1. Short title. 
Sea 2. Findings. 
Sec. 3. Goals. 
TITLE I-RAIL TRANSPORTATION POLICY 
Sec. 101. Rail transportation policy. 
TITLE n—RAILROAD RATES AND INTERCARRIER PRACTICES 
Sea 201. Regulation of railroad rates. 
Sec. 202. Determination of market dominance. 
Sec. 203. Zone of rate flexibilily. 
Sec. 204. Transportation of recyclable materials. 
Sec. 205. Rate r^ulation proceedings adequate revenues. 
Sec. 206. Inflation-based rate increases. 
Sec. 207. Investigation and suspension of ratea 
Sec 208. Contracts. 
Se& 209. Demand sensitive rates. 
Sec. 210. Phaseout of capital incentive rates. 
Sec. 211. Permissive limited liability ratea 
Sec. 212. Rate discrimination. 
Sec. 213. Exemption. 
Sec. 214. Intrastate rates. 
Sec. 215. Business entertainment expenses. 
Sec. 216. Efficient marketing. 
Sec. 217. Compensatory joint rate relief. 
Sec. 218. Expedited division of revenues proceedings. 
Sec. 219. Rate bureaus. 
Sec. 220. Long and short haul transportation. 
Sec. 221. Raihoad entry. 
Sec. 222. Service during periods of peak demand. 
Sec. 223. Reciprocal switching. 
Sec. 224. Car service compensation. 
Sec. 225. Car utilization. 
Sec. 226. Car service orders for exigent circumstances. 
Sec. 227. Employee protection. 
Sec. 228. Mergers and other transactions. 
Sec. 229. Savings provisions. 
TITLE m—RAILROAD COST DETERMINATIONS 
Sec. 301. Uniform accounting system. 
Sec. 302. Railroad cost accounting. 
Sec. 303. Civil penalties for violations of accounting principles provisions. 
94 STAT. 1896 
PUBLIC LAW 96-448—OCT. 14, 1980 
TITLE IV-RAILROAD MODERNIZATION ASSISTANCE 
Sec. 401. Feeder railroad development program. 
Sec. 402. Abandounent. 
Sec. 403. Conversion of abandoned railroad rights-of-way. 
Sec. 404. Extension of redeemable preference share financing. 
Sec. 405. Financing. 
Sec. 406. Tremsaction assisttmce. 
Sec. 407. Electrification loan guarantees. 
Sec. 408. Amendment to the R^onal Rail Reorganization Act of 1973. 
Sec. 409. Federal assistance report. 
TITLE V-CONRAIL TITLE V LABOR PROTECTION 
Sec. 501. Monthly displacement allowance. 
Sec. 502. Duration of monthly displacement allowance. 
Sec. 503. Training and transfer. 
Sec. 504. Payment, audit, and report. 
Sec. 505. Railroad hiring. 
Sec. 506. Single collective-bargaining agreement. 
Sec. 507. Employee protection payments. 
Sec. 508. Technical amendments. 
TITLE VI—EXPEDITED SUPPLEMENTAL TRANSACTION PROPOSALS 
Sec. 601. Expedited supplemental transaction proposals. 
TITLE Vn—MISCELLANEOUS PROVISIONS 
Sec. 701. Rock Island and Milwaukee Railroads amendments. 
Sec. 702. Loan guarantees. 
Sec. 703. Conrail studies and emergency funding. 
Sec. 704. USRA authorization of appropriations. 
Sec. 705. Feeder line rehabilitation study. 
Sec. 706. Effect on pending matters. 
Sec. 707. Construction of amendments. 
Sec. 708. Surplus property. 
Sec. 709. Study of Alaska railroad rates. 
Sec. 710. Effective dates. 
FINDINGS 
49 use 10101a 
SEC. 2. The Congress hereby finds that— 
^°^- 
(1) historically, railroads were the essential factor in the 
national transportation system; 
(2) the enactment of the Interstate Commerce Act was essen-
tial to prevent an abuse of monopoly power by railroads and to 
establish and maintain a national railroad network; 
(3) today, most transportation within the United States is 
competitive; 
(4) many of the Government regulations affecting railroads 
have become unnecessary and inefficient; 
(5) nearly two-thirds of the Nation's intercity freight is trans-
ported by modes of 
transportation other than railroad; 
(6) earnings by the railroad industry are the lowest of any 
transportation mode and are insufficient to generate funds for 
necessary capital improvements; 
(7) by 1985, there will be a capital shortfall within the railroad 
industry of 
between $16,000,000,000 and $20,000,000,000; 
(8) failure to achieve increased earnings within the railroad 
industry will result in either further deterioration of the rail 
system or the necessity for additional Federal subsidy; and 
(9) modernization of economic regulation for the railroad 
industry with a greater reliance on the marketplace is essential 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1897 
in order to achieve maximum utilization of railroads to save 
energy and combat inflation. 
GOALS 
SEC. 3. The purpose of this Act is to provide for the restoration, 49 use loioia 
maintenance, and improvement of the physical facilities and finan- ^°^-
cial stability of the rail system of the United States. In order to 
achieve this purpose, it is hereby declared that the goals of this Act 
are— 
(1) to assist the railroads of the Nation in rehabilitating the 
rail system in order to meet the demands of interstate commerce 
and the national defense; 
(2) to reform Federal regulatory policy so as to preserve a safe, 
adequate, economical, efficient, and financially stable rail 
system; 
(3) to assist the rail system to remain viable in the private 
sector of 
the economy; 
(4) to provide a regulatory process that balances the needs of 
carriers, shippers, and the public; and 
(5) to assist in the rehabilitation and financing of the rail 
system. 
TITLE I—RAIL TRANSPORTATION POLICY 
RAIL TRANSPORTATION POUCY 
SEC. 101. (a) Chapter 101 of title 49, United States Code, is amended 
by inserting after section 10101 the following new section: 
"§ 10101a. Rail transportation policy 
"In regulating the railroad industry, it is the policy of the United 
States Government— 
"(1) to allow, to the maximum extent possible, competition and 
the demand for services to establish reasonable rates for trans-
portation by rail; 
"(2) to minimize the need for Federal regulatory control over 
the rail transportation system and to require fair £ind expedi-
tious regulatory decisions when regulation is required; 
"(3) to promote a safe and efficient rail transportation system 
by allowing rail carriers to earn adequate revenues, as deter-
mined by the Interstate Commerce Commission; 
"(4) to ensure the development and continuation of a sound rail 
transportation system with effective competition among rail 
carriers and with other modes, to meet the needs of the public 
and the national defense; 
"(5) to foster sound economic conditions in transportation and 
to ensure effective competition and coordination between rail 
carriers and other modes; 
"(6) to maintain reasonable rates where there is an absence of 
effective competition and where rail rates provide revenues 
which exceed the amount necessary to maintain the rail system 
and to attract capital; 
"(7) to reduce regulatory barriers to entry into and exit from 
the industry; 
"(8) to operate transportation facilities and equipment without 
detriment to the public health and safety; 
49 u s e 10101a. 
94 STAT. 1898 
PUBLIC LAW 96-448—OCT. 14, 1980 
Ante, p. 1897. 
"(9) to cooperate with the States on transportation matters to 
assure that intrastate regulatory jurisdiction is exercised in 
accordance with the standards established in this subtitle; 
"(10) to encourage honest and efficient management of rail-
roads and, in particular, the elimination of noncompensatory 
rates for rail transportation; 
"(11) to require rail carriers, to the maximum extent practica-
ble, to rely on individual rate increases, and to limit the use of 
increases of 
general applicability; 
"(12) to encourage fair wages and safe and suitable working 
conditions in the railroad industry; 
"(13) to prohibit predatory pricing and practices, to avoid 
undue concentrations of market power and to prohibit unlawful 
discrimination; 
"(14) to ensure the availability of accurate cost information in 
regulatory proceedings, while minimizing the burden on rail 
carriers of developing and maintaining the capability of provid-
ing such information; and 
"(15) to encourage and promote energy conservation.". 
(b) Section 10101(a) of title 49, United States Code, is amended by 
striking out "To ensure" and inserting in lieu thereof "Except where 
policy has an impact on rail carriers, in which case the principles of 
section 10101a of this title shall govern, to ensure". 
(c) The section analysis of chapter 101 of title 49, United States 
Code, is amended by inserting after the item relating to section 10101 
the following new item: 
"lOlOla. Rail transportation policy.". 
TITLE II—RAILROAD RATES AND INTER-CARRIER 
PRACTICES 
REGULATION OF RAILROAD RATES 
SEC. 201. (a) Subchapter I of chapter 107 of title 49, United States 
Code, is amended by inserting after section 10701 the following new 
section: 
49 use 10701a. 
"§ 10701a. Standards for rates for rail carriers 
"(a) Except as provided in subsection Qy) or (c) of this section and 
unless a rate is prohibited by a provision of this title, a rail carrier 
providing transportation subject to the jurisdiction of the Interstate 
Commerce Commission under subchapter I of chapter 105 of this title 
may establish any rate for transportation or other service provided 
by the carrier. 
"(bXl) If the Commission determines, under section 10709 of this 
title, that a rail carrier has market dominance over the transporta-
tion to which a particular rate applies, the rate established by such 
carrier for such transportation must be reasonable. 
"(2) In any proceeding to determine the reasonableness of a rate 
described in paragraph (1) of this subsection— 
"(A) the shipper challenging such rate shall have the burden of 
proving that such rate is not reasonable if^ 
"(i) such rate (I) is authorized under section 10707a of this 
title, and (II) results in a revenue-variable cost percentage 
for the transportation to which the rate applies that is less 
than the lesser of the percentages described in clauses (i) and 
(ii) of 
section 10707a(eX2)(A) of 
this title; or 
49 use 10501. 
49 use 10709. 
Post, p. 1901. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1899 
"(ii) such rate does not meet the description set forth in 
clause (i) of this subparagraph, but the Commission does not 
begin an investigation proceeding under section 10707 of this 
title to determine whether such rate is reasonable; and 
"(B) the rail carrier establishing the challenged rate shall have 
the burden of proving that such rate is reasonable if— 
"(i) such rate (I) is greater than that authorized under 
section 10707a of this title, or (II) results in a revenue-
variable cost percentage for the transportation to which the 
rate applies that is equal to or greater than the lesser of the 
percentages described in clauses (i) and (ii) of section 
10707a(eX2)(A) of this title; and 
"(ii) the Commission begins an investigation proceeding 
under section 10707 of this title to determine whether such 
rate is reasonable. 
"(3) In determining whether a rate established by a rail carrier is 
reasonable for purposes of this section, the Commission shall recog-
nize the policy of this title that rail carriers shall earn adequate 
revenues, as established by the Commission under section 10704(a)(2) 
of this title. 
"(cXl) A rate for transportation or other service provided by a rail 
carrier subject to the jurisdiction of the Commission under sub-
chapter I of chapter 105 of this title may not be established below a 
reasonable minimum. Any rate for transportation by such a rail 
carrier that does not contribute to the going concern value of such 
carrier is presumed to be not reasonable. A rate that contributes to 
the going concern value of such carrier is conclusively presumed not 
to be below a reasonable minimum. 
"(2) A rate for transportation by a rail carrier that equals or 
exceeds the variable cost of providing the transportation is conclu-
sively presumed to contribute to the going concern value of such rail 
carrier. 
"(3)(A) Upon the filing of a complaint alleging that a rate is in 
violation of this subsection, the Commission shall take final action 
thereon by the 90th day after the date such complaint is filed. 
"(B) If the Commission determines, based on the record after 
opportunity for a hearing, that a rate is in violation of this subsection, 
the Commission shall order such rate to be raised, but only to the 
minimum level required by this subsection. The complainant shall 
have the burden of proving that such rate is in violation of this 
subsection. 
"(4XA) For purposes of this subsection, variable costs shall be 
determined under formulas or procedures prescribed or certified by 
the Commission. 
"(B) In the determination of variable costs for purposes of mini-
mum rate regulation, the Commission shall, on application of the rail 
carrier proposing the rate, determine only the costs of such carrier 
and only those costs of the specific service in question unless the 
specific information is not available. The Commission may not 
include in such variable costs an expense that does not vary directly 
with the level of transportation provided under the proposed rate. . 
ObXD Section 10701(a) of title 49, United States Code, is amended— 
(A) by inserting "(other than a rail rate)" immediately after "A 
rate" in the first sentence; 
(B) by inserting "(including a rail carrier)" immediately after 
"such a carrier" in the second sentence thereof; and 
(C) by inserting "(including rail carriers)" immediately after 
"those carriers" in the third sentence thereof. 
49 use 10707. 
Post, p. 1901. 
Post, p. 1906. 
49 u s e 10501. 
94 STAT. 1900 
PUBLIC LAW 96-448—OCT. 14, 1980 
Repeal. 
(2) Section 10701(b) of title 49, United States Code, is repealed. 
(3) The section anedysis of chapter 107 of title 49, United States 
Code, is amended by inserting immediately below the item relating to 
section 10701 the following new item: 
"10701a. Standards for rates for rail carriers.". 
Definitions. 
Ante, p. 1895. 
C!ost recovery 
percentage. 
Revenue-
variable cost 
percentage. 
Ante, p. 1916. 
DETERMINATION OF MARKET DOMINANCE 
SEC. 202. Section 10709 of title 49, United States Code, is amended 
by adding at the end thereof the following new subsection: 
"(dXl) In this subsection— 
"(A) 'fixed and variable cost' means all cost incurred by r£ul 
carriers in the transportation of freight, but limiting the return 
on equity capital to a rate equal to the embedded cost of debt. 
"(BXi) 'cost recovery percentage' means the lowest revenue-
variable cost percentage which, if all movements that produced 
revenues resulting in revenue-variable cost percentages in excess 
of 
the cost recovery percentage are deemed to have produced only 
revenues resulting in the cost recovery percentage, would pro-
duce revenues which would be equal, when combined with total 
revenues produced by all other traffic transported by rail carrier, 
to the total fixed and variable cost of the transportation of all 
traffic by rail carrier. 
"(ii) for purposes of determining the cost recovery percentage 
only, 'revenue-variable cost percentage' means the quotient, 
expressed as a percentage figure, obtained by dividing the total 
revenues produced by the transportation of all traffic received by 
rail carriers for rail transportation by the total variable cost of 
such transportation. 
"(2) In making a determination under this section, the Commission 
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 rail carrier proves that the rate charged results in a 
revenue-variable cost percentage for such transportation that is less 
than— 
"(A) 160 percent during the period beginning on the effective 
date of the Staggers Rail Act of 1980 and ending September 30, 
1981; 
"(B) 165 percent during the period beginning October 1,1981, 
and ending September 30,1982; 
"(C) 170 percent during the period beginning October 1,1982, 
and ending September 30,1983; 
"(D) 175 percent or the cost recovery percentage, whichever is 
less, during the period beginning October 1, 1983, and ending 
September 30,1984; and 
"(E) the cost recovery percentage, during each 12-month period 
beginning on or after October 1,1984. 
For purposes of subparagraphs (D) and (E) of this paragraph, the cost 
recovery percentage shall in no event be less than a revenue-variable 
cost percentage of 170 percent or more than a revenue-variable cost 
percentage of 180 percent. 
"(3) For purposes of determining the revenue-variable cost percent-
age for a particular transportation, variable costs shall be determined 
pursuant to section 10705a(mXl) of this title, with adjustments 
specified by the Commission. A rail carrier may meet its burden of 
proof under this subsection by establishing its vsiriable costs in 
accordance with such section 10705a(mXl)> but a shipper may rebut 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1901 
Cost recovery 
percentages. 
Ante, p. 1895. 
that showing by evidence of such t5T)e, and in accordance with such 
burden of proof, as the Commission shall prescribe. 
"(4) A finding by the Commission that a rate charged by a rail 
carrier results in a revenue-variable cost percentage for the transpor-
tation to which the rate applies that is equal to or greater than the 
applicable percentage under paragraph (2) of this subsection 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. 
"(5XA) Within 180 days after the effective date of the Staggers Rail 
Act of 1980 and on an annual basis thereafter, the Commission shall 
determine the cost recovery percentage for the transportation of all 
traffic received by rail carriers. The Commission shall make such 
determination after considering each individual revenue-variable 
cost percentage resulting from the revenues and costs of a valid and 
reliable statistical sample of all movements of commodities trans-
ported by class I rail carriers during the most recent calendar year for 
which such information is available. 
"(B) If, on the basis of calculations under subparagraph (A) of this 
paragraph, the Commission determines that revenues earned by all 
class I rail carriers during the previous calendar year do not exceed 
the fixed and variable costs of such carriers, then the cost recovery 
percentage for purposes of this section shall be deemed to be equal to 
the cost recovery percentage last determined by the Commission. 
"(C) The Commission shall, in its annual report submitted to the 
Congress under section 10311 of this title, set forth the cost recovery 49 use I03ii 
percentage determined for that year under subparagraph (A) of this 
paragraph.". 
ZONE OF RATE FLEXIBIUTY 
SEC. 203. (a) Subchapter I of chapter 107 of title 49, United States 
Code, is amended by inserting after section 10707 the following new 
section: 
"§ 10707a. Zone of rail carrier rate flexibility 
"(a) In this section— 
"(1)(A) 'base rate' means, with respect to the transportation of 
a particular commodity (i) for the 24-month period beginning on 
October 1, 1980, the rate in effect on October 1, 1980, (ii) for the 
24-month period beginning on October 1,1982, the rate in effect 
on October 1, 1982, and (iii) for the 5-year period beginning on 
October 1, 1984, and for each subsequent 5-year period, the rate 
in effect on the first day of the applicable 5-year period. 
"(B) If no rate exists for the transportation of a particular 
commodity on October 1, 1980, the base rate for the transporta-
tion of such commodity shall be the rate established by the rail 
carrier (divided by the latest rail cost adjustment factor pub-
lished by the Commission), unless such rate is found to be 
unreasonable by the Commission, in which case the base rate 
shall be the rate authorized by the Commission (divided by the 
latest rail cost adjustment factor published by the Commission). 
"(2)(A) 'adjusted base rate' means the base rate for the trans-
portation of a particular commodity multiplied by the latest rail 
cost adjustment factor published by the Commission pursuant to 
this paragraph. 
"(B) Commencing with the fourth quarter of 1980, the Commis-
sion shall, as often £is practicable but in no event less often than 
49 u s e 10707a. 
"Base rate." 
"Adjusted base 
rate." 
Rail cost 
adjustment 
factor. 
94 STAT. 1902 
PUBLIC LAW 96-448—OCT. 14, 1980 
Rate increase. 
49 use 10501. 
49 use 10709. 
49 use 10706. 
49 use 10712. 
Ante, p. 1895. 
quarterly, publish a rail cost adjustment factor which shall be a 
fraction, the numerator of which is the latest published Index of 
Railroad Costs (which index shall be compiled or verified by the 
Commission, with appropriate adjustments to reflect the cnang-
ing composition of railroad costs, including the quality and mix 
of material and labor), and the denominator of which is the same 
index for the fourth quarter of 1980, or for the fourth quarter of 
1982 or for the fourth quarter of every fifth year thereafter, as 
appropriate. 
"0>)(1) Except as provided in paragraph (2) of this subsection, a rail 
carrier providing transportation subject to the jurisdiction of the 
Interstate Commerce Commission under subchapter I of chapter 105 
of this title may increase any rate over which the Commission has 
jurisdiction under section 10709 of this title so long as the increased 
rate is not greater than the adjusted base rate for the transportation 
involved, plus any rate increases implemented under subsection (c) or 
(d) of this section. 
"(2) A rate increase authorized under this subsection may not be 
found to exceed a reasonable maximum for the transportation 
involved. 
"(3) A rail carrier majr not increase a rate under this subsection to 
the extent that the cost increases to such carrier due to inflation are 
recovered through (A) general rate increases pursuant to section 
10706 of this title, or (B) inflation-based rate increases under section 
10712 of this title applicable to that rate. 
"(cXl) During the 12-month period beginning on the effective date 
of the Staggers Rail Act of 1980 and during each of the 3 succeeding 
12-month periods, a rail carrier may, in addition to rate increases 
authorized under subsection Qj) of this section, increase any rate over 
which the Commission has jurisdiction under section 10709 of this 
title by an annual amount of not more than 6 percent of the adjusted 
base rate, except that in no event shall the total increase under this 
subsection result in a rate which is more than 118 percent of the 
adiusted base rate. 
(2)(A) If any portion of a rate increase under this subsection is not 
implemented in the year in which it is authorized, such portion may, 
except as provided in subparagraph (B) of this paragraph, be imple-
mented only in the next succeeding year. 
"(B) If any portion of the total rate increase authorized under this 
subsection is not implemented by the end of the 4-year period 
beginning on the effective date of the Staggers Rail Act of 1980, such 
portion may be implemented in the next 2 succeeding years, except 
that in no event may a rail carrier increase a rate under this 
subsection or under subsection (d) of this section in either of such 2 
succeeding years by an annual amount of more than 10 percent of the 
adiusted base rate. 
(dXD Except as provided in paragraph (3) of this subsection, 
during the 12-month period beginning on October 1,1984, and during 
each succeeding 12-month period, a rail carrier may, in addition to 
rate increases under subsection (b) of this section, increase any rate 
over which the Commission has jurisdiction under section 10709 of 
this title by an annual amount of not more than 4 percent of the 
adiusted base rate. 
(2) No portion of any rate increase under this subsection which is 
not implemented in the year in which it is authorized may be 
implemented in any other year. 
(3)(A) The provisions of this subsection shall not apply to a rail 
carrier proposing to increase a single line rate if such carrier earns 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1903 
adequate revenues, as determined by the Commission under section 
10704(a)(2) of this title. 
"(B) The Commission shall, after a hearing on the record, prescribe 
such rules with respect to joint rates as necessary to ensure that rail 
carriers which earn adequate revenues, as determined under section 
10704(a)(2) of this title, do not receive the rate increases authorized by 
this subsection unless the Commission determines that it is unable to 
prescribe such rules without precluding rail carriers not earning 
adequate revenues from receiving the rate increases authorized 
under this subsection. 
"(e)(1) Notwithstanding the provisions of section 10707 of this title, 
in the case of any rate increase by a rail carrier that is authorized 
under subsection (c) or (d) of this section— 
"(A)(i) the Commission may not suspend such rate increase 
pending final Commission action; and 
"(ii) except as provided in par^raph (2) of this subsection, the 
Commission may not begin an investigation proceeding under 
section 10707 of this title with respect to the reasonableness of 
such rate increase; but 
"(B) an interested party may file a complaint under section 
11701(b) of this title alleging that such rate increase violates the 
provisions of this subtitle. 
In considering any complaint challenging a rate increase that is 
authorized under subsection (c) of this section and that results in a 
revenue-variable cost percentage that is less than the lesser of the 
percentages described in clauses (i) and (ii) of paragraph (2)(A), the 
Commission shall, in determining the reasonableness of such rate 
increase, give due consideration to whether the carrier proposing the 
rate increase has attained adequate revenues, as determined by the 
Commission under section 10704(a)(2) of this title, giving regard to 
preventing a carrier with adequate revenues from realizing excessive 
profits on the traffic involved and also the policy of bringing to an 
adequate level the revenues of carriers not having an adequate 
revenue level. 
"(2)(A) If a rate increase authorized under this section in any year 
results in a revenue-variable cost percentage for the transportation to 
which the rate applies that is equal to or greater than— 
"(i) 20 percentage points above the revenue-variable cost per-
centage applicable in that year under section 10709(d) of this 
title; or 
"(ii) a revenue-variable cost percentage of 190 percent, 
whichever is less, the Commission may, on its own initiative, or on 
complaint of an interested party, begin an investigation proceeding to 
determine whether the proposed rate increase violates this subtitle. 
"(B) In determining whether to investigate or not to investigate any 
proposed rate increase that results in a revenue-variable cost percent-
age for the transportation to which the rate applies that is equal to or 
greater than the lesser of the percentages described in clauses (i) and 
(ii) of subparagraph (A) of this paragraph (without regard to whether 
such rate increase is authorized under this section), the Commission 
shall set forth its reasons therefor, giving due consideration to the 
following factors: 
"(i) the amount of traffic which is transported at revenues 
which do not contribute to going concern value and efforts made 
to minimize such traffic; 
"(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 
Post, p. 1906. 
Joint rates, 
rules. 
49 use 10707. 
49 use 11701. 
Ante, p. 1900. 
79-194 
O—81—pt. 2 
40 : QL3 
94 STAT. 1904 
PUBLIC LAW 96-448—OCT. 14, 1980 
Ante, p. 1897. 
49 u s e 10704. 
Rail carrier rate 
increases. 
49 u s e 10707a 
note. 
Ante, p. 1898. 
Ante, p. 1900. 
"(iii) the impact of the proposed rate or rate increase on the 
attainment of the national energy goals and the rail transporta-
tion 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 accord-
ance 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 determination. 
"(C) In determining whether a rate is reasonable, the Commission 
shall consider, among other factors, evidence of the following: 
"(i) the amount of traffic which is transported at revenues 
which do not contribute to going concern value and efforts made 
to minimize such traffic; 
"(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 carrier's mix of rail traffic to determine whether one 
commodity is paying an unreasonable share of the carrier's 
overall revenues. 
"(f) In any proceeding under this section, evidence of the underly-
ing rail carrier rate is admissible. 
"(g) A finding by the Commission that a rate increase exceeds the 
increase authorized under this section does not establish a presump-
tion that (1) the rail carrier proposing such rate increase has or does 
not have market dominance over the transportation to which the rate 
applies, or (2) the proposed rate exceeds or does not exceed a 
reasonable maximum. 
"(h) The authority of the Commission to determine and prescribe 
reasonable rules, classifications, and practices may not be used, 
directly or indirectly, to limit the rates which rail carriers are 
otherwise authorized to establish under this subtitle.". 
Ot)) The section analysis of chapter 107 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 10707 the following new item: 
"10707a. Zone of rail carrier rate flexibility.". 
(c)(1) Any rail carrier rate which increased over 70 percent between 
1976 and 1979 inclusive for the transportation, in shipper owned 
equipment over a distance exceeding 1,550 miles between points 
within the United States, of coal pursuant to a tariff calling for an 
annual volume of more than 2,000,000 tons per year purchased by a 
municipally owned utility for the generation of electric power under 
a 20-year purchase agreement entered into by such utility in the year 
1974 shall not be increased so long as coal is purchased under such 
original agreement, except that— 
(A) during the period beginning October 1, 1980, and ending 
September 30, 1987, the Interstate Commerce Commission may 
permit increases in such rate which result in a revenue-variable 
cost percentage of not more than 162 percent; and 
(B) after October 1, 1987, such rate shall be subject to section 
10701a of title 49, United States Code, and related provisions of 
such title governing regulation of rail carrier rates, except that 
until such rate results in a revenue-variable cost percentage that 
is equal to or greater than the revenue-variable cost percentage 
applicable under section 10709(d) of such title, such rate may not 
be increased more than 4 percent, in addition to inflation, in any 
year. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1905 
(2) Neither the provisions of this subsection nor any rate subject to 
this subsection shall be admissible as evidence or considered in any 
way in any proceeding involving any other rail carrier rate that is 
commenced to determine market dominance under section 10709 of 
title 49, United States Code, or to determine reasonableness under 
section 10701a of such title. 
Ante, p. 1898. 
TRANSPORTATION OF RECYCLABLE MATERIALS 
SEC. 204. Section 10731 of title 49, United States Code, is amended 
by adding at the end thereof the following new subsection: 
"(e) Notwithstanding any other provision of this title or any other 
law, within 90 days after the effective date of the Staggers Rail Act of 
1980, all rail carriers providing transportation subject to the jurisdic-
tion of the Commission under subchapter I of chapter 105 of this title 
shall take all actions necessary to reduce and thereafter maintain 
rates for the transportation of recyclable or recycled materials, other 
than recyclable or recycled iron or steel, at revenue-to-variable cost 
ratio levels that are equal to or less than the average revenue-to-
variable cost ratio that rail carriers would be required to realize, 
under honest, economical, and efficient management, in order to 
cover total operating expenses, including depreciation and obsoles-
cence, plus a reasonable and economic profit or return (or both) on 
capital employed in the business sufficient to attract and retain 
capital in amounts adequate to provide a sound transportation 
system in the United States. As long as any such rate equals or 
exceeds such average revenue-to-variable cost ratio established by 
the Commission, such rate shall not be required to bear any further 
rate increase. The Commission shall have jurisdiction to issue all 
orders necessary to enforce the requirements of this subsection.". 
49 u s e 10501. 
RATE REGULATION PROCEEDINGS; ADEQUATE REVENUES 
SEC. 205. (aXl) The Interstate Commerce Commission shall com-
mence a proceeding for purposes of determining whether, and to 
what extent, product competition should be considered in proceedings 
under subtitle IV of title 49, United States Code, to determine the 
reasonableness of rail carrier rates. The Commission shall complete 
its proceeding under this subsection within 230 days after the 
effective date of this Act. 
(2XA) For purposes of this subsection, the term "product competi-
tion" means the availability to a consignee, at a competitive delivered 
cost and in sufficient quantities, of products or commodities which 
are of the same tjrpe as the commodity or product to which the rate in 
question applies, without regard to whether such products or com-
modities are available from the same or a different origin as those to 
which the rate applies. 
(B) In determining the availability of alternative sources of a 
particular commodity for purposes of this subsection, such commod-
ity must be capable, by reason of similar specifications, of being 
effectively utilized by the consignee. 
(C) In determining the availability of alternative sources of coal for 
purposes of this subsection, such coal must be capable, by reason of 
similar specifications such as Btu's, sulfur content, and ash content, 
of 
being effectively utilized by the consignee. 
(D) For purposes of this subsection, any coal imported in the United 
States for the generation of electricity by utilities sh^l not be taken 
49 u s e 10701a 
note. 
49 u s e 10101. 
"Product 
competition." 
94 STAT. 1906 
PUBLIC LAW 96-448—OCT. 14, 1980 
"Market 
dominance." 
Ante, p. 1895. 
into account in the determination of whether coal is available to a 
consignee from another source. 
(3)(A) Nothing in this subsection shall be construed as requiring the 
Commission to modify its standards for the determination of the 
reasonableness of rail carrier rates under existing law and 
procedures. 
(B) Nothing in this subsection shall be construed as altering the 
meaning, use, or interpretation by the Commission, the courts, or any 
party of the term "market dominance", as defined in section 10709(a) 
of title 49, United States Code. The enactment of this subsection shall 
not be considered by the Commission in any proceeding, or by any 
court on an appeal from that or any other proceeding, to determine 
the proper scope of the term "market dominance" or whether there is 
market dominance over the transportation to which any particular 
rate applies. 
(b)(1) Section 10704(a)(2) of title 49, United States Code, is amended 
by inserting "and revise as necessary" immediately after "shall 
maintain". 
(2) Section 10704(a) of title 49, United States Code, is amended by 
adding at the end thereof the following new paragraphs: 
"(3) The Commission shall conclude a proceeding under paragraph 
(2) of this subsection within 180 days after the effective date of the 
Staggers Rail Act of 1980 and thereafter as necessary. 
"(4) On the basis of the standards and procedures under paragraph 
(2) of this subsection, the Commission shall, within 180 days after the 
effective date of the Staggers Rail Act of 1980 and on an annual 
basis thereafter, determine which rail carriers are earning adequate 
revenues.". 
INFLATION-BASED RATE INCREASES 
SEC. 206. (a) Subchapter I of chapter 107 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
4
9 use 1
0
7
1
2 
"§ 10712. Inflation-based rate increases 
"(a) The Commission may, on a quarterly basis and consistent with 
the rail transportation policy set forth in section lOlOla of this title, 
prescribe a percentage rate increase or rate index for rail carriers in 
order to compensate for inflationary cost increases. Such percentage 
rate increase or rate index may be applicable on an industry-wide, 
territory-wide, or carrier-by-carrier basis. 
"(b) Within 60 days after the date the Commission prescribes a 
percentage rate increase or rate index under subsection (a) of this 
section, each rail carrier or group of rail carriers shall notify the 
Commission of any rate or group of rates which such carrier or 
carriers intend to be excluded from the application of such percent-
age rate increase or rate index. 
"(c) For purposes of this section, a percentage rate index may 
permit rate increases within a specified range to allow carriers to 
recover a total revenue increase specified by the Commission as 
necessary to compensate for inflationary cost increases.". 
(b) The section analysis for chapter 107 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 10711 the following new item: 
"10712. Inflation-based rate increases.". 
Ante, p. 1897. 
Percentage rate 
index. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1907 
INVESTIGATION AND SUSPiSNSION OF RATES 
SEC. 207. (a) Section 10707(b)(1) of title 49, United States Code, is 
amended to read as follows: 
"(b)(1) The Commission must complete a proceeding under this 
section and make its final decision by the end of the 5th month after 
the rate, classification, rule, or practice was to become effective, 
except that if the Commission reports to the Congress by the end of 
such 5th month that it cannot make a final decision by that time and 
explains the reason for the delay, it may take an additional 3 months 
to complete the proceeding and make its final decision. If the 
Commission does not reach a final decision within the applicable time 
period, the rate, classification, rule, or practice— 
"(A) is effective at the end of that time period; or 
"(B) if already in effect at the end of that time period, remains 
in effect.". 
(b) Section 10707(c) of title 49, United States Code, is amended to 
read as follows: 
"(c)(1) The Commission may not suspend a proposed rate, classifica-
tion, rule, or practice during the course of a Commission proceeding 
under this section unless it appears from the specific facts shown by 
the verified statement of a person that— 
"(A) it is substantially likely that the protestant will prevail on 
the merits; 
"(B) without suspension, the proposed rate change will cause 
substantial injury to the protestant or the party represented by 
the protestant; and 
"(C) because of the peculiar economic circumstances of the 
protestant, the provisions of subsection (d) of this section do not 
protect the protestant. 
"(2) The burden shall be on the protestant to prove the matters 
described in paragraph (1) (A), (B), and (C) of this subsection.". 
(c) Section 10707(d) of title 49, United States Code, is amended to 
read as follows: 
"(d)(1) If the Commission does not suspend a proposed rate increase 
under subsection (c) of this section, the Commission shall require the 
rail carrier to account for all amounts received under the increase 
until the Commission completes its proceedings under subsection (b) 
of this section. The accounting shall specify by whom and for whom 
the amounts are paid. When the Commission takes final action, it 
shall require the carrier to refund to the person for whom the 
amounts were paid that part of the increased rate found to be 
unreasonable, plus interest at a rate equal to the average yield (on 
the date the statement is filed) of marketable securities of the United 
States Government having a duration of 90 days. 
"(2) If a rate is suspended under subsection (c) of this section and 
any portion of such rate is later found to be reasonable under this 
title, the carrier shall collect from each person using the transporta-
tion to which the rate applies the difference between the original rate 
and the portion of the suspended rate found to be reasonable for any 
services performed during the period of suspension, plus interest at a 
rate equal to the average yield (on the date the statement is filed) of 
marketable securities of the United States Government having a 
duration of 90 days, except that this paragraph shall not apply to 
general rate increases under section 10706 of this title. 
49 USC 10706. 
"(3) If any portion of a proposed rate decrease is suspended under 
subsection (c) of this section and later found to be reasonable under 
this title, the rail carrier may refund any part of the portion of the 
94 STAT. 1908 
PUBLIC LAW 96-448—OCT. 14, 1980 
49 u s e 10741, 
10761. 
Repeal. 
decrease found to comply with this title if the carrier makes the 
refund available to each shipper who participated in the rate, in 
accordance with the relative amount of such shipper's traffic trans-
ported at such rate. 
"(4) Notwithstanding the provisions of section 10741 or section 
10761 of this title, the Commission shall, by rule, establish standards 
and procedures permitting a rail carrier to waive the collection of 
amounts due under this subsection if such amounts are not 
significant.". 
(d) Section 10707(e) of title 49, United States Code, is repealed. 
49 u s e 10713. 
49 u s e 10501. 
Special tariff 
rules. 
Approval. 
Review. 
eomplaint filing. 
49 u s e 11101. 
Agricultural 
commodities. 
CONTRACTS 
SEC. 208. (a) Subchapter I of chapter 107 of title 49, United States 
Code, as amended by this Act, is further amended by adding at the 
end thereof the following new section: 
"§ 10713. Contracts 
"(a) One or more rail carriers providing transportation subject to 
the jurisdiction of the Interstate Commerce Commission under sub-
chapter I of chapter 105 of this title may enter into a contract with 
one or more purchasers of rail services to provide specified services 
under specified rates and conditions. Such a rail carrier may not 
enter into a contract with purchasers of rail service except as 
provided in this section. 
"(b) Each contract entered into under this section shall be filed 
with the Commission, together with a summary of the contract 
containing such nonconfidential information as the Commission 
prescribes. The Commission shall publish special tariff rules for such 
contracts in order to assure that the essential terms of the contract 
are available to the general public in tariff format. 
"(c) A contract filed under this section shall be approved by the 
Commission, as provided in subsection (e) of this section, unless the 
Commission determines in a proceeding under subsection (d) of this 
section that such contract is in violation of this section. 
"(d)(1) No later than 30 days after the date of filing of a contract 
under this section, the Commission may, on its own initiative or on 
complaint, begin a proceeding to review such contract on the grounds 
described in this subsection. 
"(2)(A) In the case of a contract other than a contract for the 
transportation of agricultural commodities (including forest products 
and paper), a complaint may be filed— 
'^'(i) by a shipper only on the grounds that such shipper 
individually will be harmed because the proposed contract 
unduly impairs the ability of the contracting carrier or carriers 
to meet their common carrier obligations to the complainant 
under section 11101 of this title; or 
"(ii) by a port only on the grounds that such port individually 
will be harmed because the proposed contract will result in 
unreasonable discrimination against such port. 
"(B) In the case of a contract for the transportation of agricultural 
commodities (including forest products and paper), in addition to the 
grounds for a complaint described in subparagraph (A) of this 
paragraph, a complaint may be filed by a shipper on the grounds that 
such shipper individually will be harmed because— 
"(i) the rail carrier has unreasonably discriminated by refusing 
to enter into a contract with such shipper for rates and services 
for the transportation of the same type of commodity under 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1909 
similar conditions to the contract at issue, and that shipper was 
ready, willing, and able to enter into such a contract at a time 
essentially contemporaneous with the period during which the 
contract at issue was offered; or 
"(ii) the proposed contract constitutes a destructive competi-
tive practice under this subtitle. 
In making a determination under clause (ii) of this subparagraph, the 
Commission shall consider the difference between contract rates and 
published single car rates. 
"(C) For purposes of this paragraph, the term 'unreasonable dis-
crimination* has the same meaning as such term has under section 
10741 of this title. 
"(3XA) Within 30 days after the date a proceeding is commenced 
under paragraph (1) of this subsection, or within such shorter time 
period after such date as the Commission may establish, the Commis-
sion shall determine whether the contract that is the subject of such 
proceeding is in violation of this section. 
"(B) If the (Dommission determines, on the basis of a complaint filed 
under paragraph (2XBXi) of this subsection, that the grounds for a 
complEiint described in such paragraph have been established with 
respect to a carrier, the Commission shall, subject to the provisions of 
this section, order such carrier to provide rates and service substan-
tially similar to the contract at issue with such differentials in terms 
and conditions as are justified by the evidence. 
"(e) Approval of a contract filed under this section shall be 
effective— 
"(1) on the date the Commission expressly approves such 
contract, but in no event before the end of the 30-day period 
beginning on the date such contract is filed or after the end of the 
60-day period beginning on such date; or 
"(2) if the Commission has not disapproved such contract by 
the end of the 60-day period beginning on the date such contract 
is filed, at the end of such 60-day period. 
"(f) The Commission may limit the right of a rail carrier to enter 
into future contracts under this section following a determination 
that additional contracts would impair the ability of the rail carrier 
to fulfill its common carrier obligations under section 11101 of this 
title. 
"(g) The C!ommission may not require a rail carrier to violate the 
terms of a contract that has been approved under this section, except 
to the extent necessary to comply with section 11128 of this title. 
"(h) A party to a contract entered into under this section shall have 
no duty in connection with services provided under such contract 
other than those duties specified by the terms of the contract. 
"(iXD A contract that is approved by the Commission under this 
section, and transportation under such contract, shall not be subject 
to this subtitle, and may not be subsequently challenged before the 
Commission or in any court on the grounds that such contract 
violates a provision of this subtitle. 
"(2) The exclusive remedy for any alleged breach of a contract 
entered into under this section shall be an action in an appropriate 
State court or United States district court, unless the parties other-
wise agree. 
"(j) The provisions of this section shall not affect the status of any 
lawful contract between a rail carrier and one or more purchasers of 
rail service that is in effect on the effective date of the Staggers Rail 
Act of 1980. Any such contract shall hereafter have the same force 
and effect as if it had been entered into in accordance with the 
"Unreasonable 
discrimination.' 
49 u s e 10741. 
Rates and 
service. 
Effective dates. 
Future 
contracts. 
49 u s e 11101. 
49 u s e 11128. 
Ante, p. 1895. 
94 STAT. 1910 
PUBLIC LAW 96-448—OCT. 14, 1980 
Agricultural 
commodities, 
transportation. 
49 u s e 11101. 
49 u s e 11123. 
Railroad 
contract rate 
advisory service. 
Ante, p. 1895. 
Repeal. 
provisions of this section. Nothing in this section shall affect the 
rights of the parties to challenge the existence of such a contract. 
"(kXl) Any rail carrier may, in accordance with the terms of this 
section, enter into contracts for the transportation of agricultural 
commodities (including forest products and paper) involving the 
utilization of carrier owned or leased equipment not in excess of 40 
percent of the capacity of such carrier's owned or leased equipment 
by major car type (plain boxcars, covered hopper cars, gondolas and 
open top hoppers, coal cars, bulkhead flatcars, pulpwood rackcars, 
and flatbed equipment, including TOFC/COFC), except that in the 
case of a proposed contract between a class I carrier and a shipper 
originating an average of 1,000 cars or more per year during the prior 
3-year period by major car type on a particular carrier, not more than 
40 percent of carrier owned or leased equipment utilized on the 
average during the prior 3-year period may be used for such contract 
without prior authorization by the Commission. 
"(2) The Commission may, on request of a rail carrier or other party 
or on its own initiative, grant such relief from the limitations of 
paragraph (1) of this subsection as the Commission considers appro-
priate, if it appears that additional equipment may be made available 
without impairing the rail carriers ability to meet its common 
carrier obligations under section 11101 of this title. 
"(1) Service under a contract approved under this section shall be 
deemed to be a separate and distinct class of service, and the 
equipment used in the fulfillment of such a contract shall not be 
subject to car service decisions under section 11123 of this title, 
"(m) The Commission shall establish a railroad contract rate 
advisonr service. The advisory service shall— 
(1) compile and disseminate to interested parties nonconfiden-
tial summaries of the provisions of individual contract informa-
tion relating to the provisions of contracts entered into under 
this section with regard to various goods, items, and commodities 
covered by such contracts; 
"(2) provide the Commission and interested parties with advice 
regarding contracts; and 
(3) assess the impact on competition among shippers of 
variations between contract rates for various shipments and the 
published single car rates, and submit a report on such impact to 
the Congress not later than 90 days after the effective date of the 
Staggers Rail Act of 1980.". 
(b) The section analysis for chapter 107 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 10712, as added by this Act, the following new item: 
"10713. Contracts.". 
DEMAND SENSITIVE RATES 
SEC. 209. Section 10727 of title 49, United States Code, and the item 
relating to such section in the section analysis for chapter 107 of such 
title, are repealed. 
Repeal. 
49 u s e 10729 
note. 
PHASEOUT OP CAPITAL INCENTIVE RATES 
SEC. 210. (a) Section 10729 of title 49, United States Code, and the 
item relating to such section in the section analysis of chapter 107 of 
such title, are repealed. 
(b) Notwithstanding any other provision of law, any rate estab-
lished by a rail carrier under section 10729 of title 49, United States 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1911 
Code, prior to the effective date of this Act shall remain in effect in 
accordance with its terms, but for no longer than 5 years after the 
date it became effective, unless the parties otherwise agree. However, 
the Interstate Commerce Commission may, during the period such a 
rate is in effect, order such rate revised to a level equal to the 
incremental cost of providing the transportation if the Commission 
finds that the level then in effect reduces the going concern value of 
the rail carrier. 
Rate revision. 
PERMISSIVE UMITED LIABILITY RATES 
SEC. 211. (a) Section 10730(a) of title 49, United States Code, is 
amended by inserting "and excluding any rail carrier" immediately 
after "motor common carrier of property'. 
(b) Section 10730 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(c) A rail carrier providing transportation or service subject to the 
jurisdiction of the Commission under subchapter I of chapter 105 of 
this title may establish rates for transportation of property under 
which the liability of the carrier for such property is limited to a 
value established by written declaration of the shipper or by a 
written agreement between the shipper and the carrier, and may 
provide in such written declaration or agreement for specified 
amounts to be deducted from any claim against the carrier for loss or 
damage to the property or for delay in the transportation of such 
property.". 
(c) Section 11707(d) of title 49, United States Code, is amended— 
(1) by inserting "(1)" immediately after "(d)"; 
(2) by inserting "(other than a rail carrier)" immediately after 
"delivering carrier"; and 
(3) by adding at the end thereof the following new paragraph: 
"(2)(A) A civil action under this section may only be brought— 
"(i) against the originating rail carrier, in the judicial district 
in which the point of origin is located; 
"(ii) against the delivering rail carrier, in the judicial district 
in which the principal place of business of the person bringing 
the action is located if the delivering carrier operates a railroad 
or a route through such judicial district, or in the judicial district 
in which the point of 
destination is located; and 
"(iii) against the carrier alleged to have caused the loss or 
damage, in the judicial district in which such loss or damage is 
alleged to have occurred. 
"(B) A civil action under this section may be brought in a United 
States district court or in a State court. 
"(C) In this section, 'judicial district' means (i) in the case of a 
United States district court, a judicial district of the United States, 
and (ii) in the case of a State court, the applicable geographic area 
over which such court exercises 
jurisdiction. . 
(d) Within one year after the effective date of 
this Act, the Attorney 
General and the Interstate Commerce Commission shall independ-
ently investigate whether rail carriers should continue to be subject 
to section 11707 of 
title 49, United States Code, and submit a report to 
the Congress setting forth recommendations to Congress for appro-
priate legislative action. Each such investigation shall address the 
foUowing issues: 
(1) Whether, in the case of traffic with respect to which rail 
carriers do not have market dominance, such carriers should be 
49 u s e 10501. 
"Judicial 
district." 
Investigation; 
report to 
Congress. 
49 u s e 11707 
note. 
94 STAT. 1912 
PUBLIC LAW 96-448—OCT. 14, 1980 
subject to any higher level of liability for loss and damage than 
they are willing to agree to with the shippers of such traffic. 
(2) Whether, in the case of traffic with respect to which rail 
carriers have market dominance, such carriers should be subject 
to any greater liability than would be imposed under a statutory 
comparative negligence standard. 
(3) Whether liability for damage to rail traffic should be 
determined under a no-fault liability system and what shippers 
should bear the cost of such a system. 
(4) Whether venue in cases arising from rail carrier liability for 
damages to traffic should be further limited. 
(5) Whether rail carrier property damage cases should be 
subject to laws other than Federal law. 
(6) Whether the right to claims should be limited to either the 
shipper or receiver of property. 
(7) Whether maximum time limits should be imposed on the 
filing of claims with rail carriers and the courts. 
(8) Whether the prevailing party in a claims proceeding should 
be awarded attorneys fees in order to limit needless litigation. 
(9) Whether excessive attorneys fees are awarded in cases 
under section 11707 of title 49, United States Code. 
(10) Whether claimants should be able to recover damages in 
excess of the market value of the commodity transported unless 
liability for special or consequential damages is agreed to by the 
carrier in unity. 
RATE DISCRIMINATION 
SEC. 212. Section 10741 of title 49, United States Code, is amended 
by striking out subsection (e) and inserting in lieu thereof the 
following new subsections: 
"(e) Differences between rates, classifications, rules, and practices 
of rail carriers providing transportation subject to the jurisdiction of 
49 use 10501. 
the Commission under subchapter I of chapter 105 of this title do not 
constitute a violation of this section if such differences result from 
different services provided by rail carriers. 
"(f) This section shall not apply to— 
Ante, p. 1908. 
"(1) contracts approved under section 10713 of this title, other 
than as provided in subsection (dX2)(AXii) and (d)(2)(B) of such 
section; 
"(2) surcharges or cancellations under section 10705a of this 
title; 
"(3) separate rates for distinct rail services under section 10728 
49 use 10728. 
of this title; 
"(4) rail rates applicable to different routes; or 
49 use 10751. 
"(5) expenses authorized under section 10751 of this title, 
except that with respect to rates described in paragraphs (2), (3), and 
(4), nothing in this subsection shall affect the authority of the 
Commission under this section with respect to rate relationships 
between ports or within the same port.". 
EXEMPTION 
SEC. 213. Section 10505 of title 49, United States Code, is amended 
to read as follows: 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1913 
"§ 10505. Authority to exempt rail carrier transportation 
"(a) In a matter related to a rail carrier providing transportation 
subject to the jurisdiction of the Interstate Commerce Commission 
under this subchapter, the Commission shall exempt a person, class 
of persons, or a transaction or service when the Commission finds 
that the application of a provision of this subtitle— 
"(1) is not necessary to carry out the transportation policy of 
section 10101a of this title; and 
"(2) either (A) the transaction or service is of limited scope, or 
(B) the application of a provision of this subtitle is not needed to 
protect shippers from the abuse of market power. 
"(b) The Commission may, where appropriate, begin a proceeding 
under this section on its own initiative or on application by the 
Secretary of Transportation or an interested party. 
"(c) The Commission may specify the period of time during which 
an exemption granted under this section is effective. 
"(d) The Commission may revoke an exemption, to the extent it 
specifies, when it finds that application of a provision of this subtitle 
to the person, class, or transportation is necessary to carry out the 
transportation policy of section 10101a of this title. 
"(e) No exemption order issued pursuant to this section shall 
operate to relieve any rail carrier from an obligation to provide 
contractual terms for liability and claims which are consistent with 
the provisions of section 11707 of this title. Nothing in this subsection 
or section 11707 of this title shall prevent rail carriers from offering 
alternative terms nor give the Commission the authority to require 
any specific level of rates or services based upon the provisions of 
section 11707 of this title. 
"(f) The Commission may exercise its authority under this section 
to exempt transportation that is provided by a rail carrier as a part of 
a continuous intermodal movement. 
"(g) The Commission may not exercise its authority under this 
section (1) to authorize intermoded ownership that is otherwise 
prohibited by this title, or (2) to relieve a carrier of its obligation to 
protect the interests of employees as required by this subtitle." 
Ante, p. 1897. 
Exemption 
revocation. 
Liability and 
claims. 
49 u s e 11707. 
Intermodal 
ownership, 
prohibition. 
INTRASTATE RATES 
SEC. 214. (a) Section 11501(a) of title 49, United States Code, is 
amended— 
(1) by striking out paragraph (2). 
(2) by striking out "(aXl) and inserting in lieu thereof "(a)"; 
(3) by striking out "subchapter I or IV and inserting in lieu 
thereof "subchapter IV"; and 
(4) by redesignating subparagraphs (A) and (B) as paragraphs 
(1) and (2), respectively. 
(b) Section 11501 of title 49, United States Code, is amended by 
redesignating subsections (b) and (c) as subsections (d) and (e), 
respectively, and by inserting immediately after subsection (a) the 
following new subsections: 
"(bXD A State authority may only exercise jurisdiction over intra-
state transportation provided by a rail carrier providing transporta-
tion subject to the jurisdiction of the Commission under subchapter I 
of chapter 105 of this title if such State authority exercises such 49 use 10501. 
jurisdiction exclusively in accordance with the provisions of this 
subtitle. 
"(2) Within 120 days after the effective date of the Staggers Rail Act 
of 1980, each State authority exercising jurisdiction over intrastate Ante, p. 1895. 
94 STAT. 1914 
PUBLIC LAW 96-448—OCT. 14, 1980 
Certification 
denial. 
Ante, p. 1895. 
49 u s e 10501. 
5-year 
certification 
period. 
49 u s e 10706. 
Ante, p. 1906. 
rates, classifications, rules, and practices for intrastate transporta-
tion described in paragraph (1) of this subsection shall submit to the 
Commission the standards and procedures (including timing require-
ments) used by such State authority in exercising such jurisdiction. 
"(3XA) Within 90 days after receipt of the intrastate regulatory 
rate standards and procedures of a State authority under paragraph 
(2) of this subsection, the Commission shall certify such State authori-
ty for purposes of this subsection if the Commission determines that 
such standards and procedures are in accordance with the standards 
and procedures applicable to regulation of rail carriers by the 
Commission under this title. If the Commission determines that such 
standards and procedures are not in such accordance, it shall deny 
certification to such State authority, and such State authority may 
resubmit new standards and procedures to the Commission for review 
in accordance with this subsection. 
"(B) The standards and procedures existing in each State on the 
effective date of the Staggers Rail Act of 1980 for the exercise of 
jurisdiction over intrastate rail rates, classifications, rules, and 
practices shall be deemed to be certified by the Commission from that 
date until the date an initial determination is made by the Commis-
sion under subparagraph (A) of this paragraph. 
"(4)(A) Any State authority which is certified by the Commission 
under this subsection may use its standards and procedures in 
exercising jurisdiction over intrastate rail rates, classifications, rules, 
and practices during the 5-year period commencing on the date of 
such certification. Any State authority which is denied certification 
or which does not seek certification may not exercise any jurisdiction 
over intrastate rates, classifications, rules, and practices until it 
receives certification under this subsection. 
"(B) Any intrastate transportation provided by a rail carrier in a 
State which may not exercise jurisdiction over an intrastate rate, 
classification, rule, or practice of that carrier due to a denial of 
certification under this subsection shall be deemed to be transporta-
tion subject to the jurisdiction of the Commission under subchapter I 
of chapter 105 of this title. 
"(5)(A) Certification of a State authority under this subsection is 
valid for the 5-year period beginning on the date of such certification. 
Prior to the expiration of such 5-year period, the State authority shall 
resubmit its intrastate regulatory standards procedures to the 
Commission for subsequent certification in accordance with this 
subsection. 
"(B) During any 5-year certification period, a State may not change 
its certified standards and procedures without notifying and receiv-
ing express approval from the Commission. 
'(6) Notwithstanding any other provision of this subtitle, a State 
authority may not exercise any jurisdiction over general rate in-
creases under section 10706 of this title, inflation-based rate increases 
under section 10712 of this title, or fuel adjustment surcharges 
approved by the Commission. 
*(c) Any rail carrier providing transportation subject to the juris-
diction of the Commission under subchapter I of chapter 105 of this 
title may petition the Commission to review the decision of any State 
authority, in any administrative proceeding in which the lawfulness 
of an intrastate rate, classification, rule, or practice is determined, on 
the grounds that the standards and procedures applied by the State 
were not in accordance with the provisions of this subtitle. The 
Commission shall take final action on any such petition within 30 
days after the date it is received. If the Commission determines that 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1915 
the standards and procedures were not in accordance with the 
provisions of this subtitle, its order shall determine and authorize the 
carrier to establish the appropriate rate, classification, rule, or 
practice.". 
(c)(1) Section 11501(d)(2) of title 49, United States Code, as redesig-
nated by subsection (b) of this section, is amended by inserting "and 
chapter 107 of this title" immediately before the period at the end of 
the first sentence. 
(2) Section 10103(a) of title 49, United States Code, is amended by 
striking out "The" and inserting in lieu thereof "Except EIS otherwise 
provided in this subtitle, the". 
(3) Section 10501(a)(2) of title 49, United States Code, is amended by 
inserting "such jurisdiction is not limited by subsection (b) of this 
section or the extent" immediately after "to the extent". 
(4) Section 10501(c) of title 49, United States Code, is amended by 
inserting "(1) the transportation is deemed to be subject to the 
jurisdiction of the Commission pursuant to section 11501(b)(4)(B) of 
this title, or (2)" immediately after "unless". 
(5) Section 10501 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(d) The jurisdiction of the Commission and of State authorities (to 
the extent such authorities are authorized to administer the stand-
ards and procedures of this title pursuant to this section and section 
11501(b) of this title) over transportation by rail carriers, and the 
remedies provided in this title with respect to the rates, classifica-
tions, rules, and practices of such carriers, is exclusive.". 
Ante, p. 1913. 
BUSINESS ENTERTAINMENT EXPENSES 
SEC. 215. Section 10751 of title 49, United States Code, is amended 
by striking out "(other than transportation by rail)" in subsections (a) 
and (b). 
(b) The provisions of section 10751 of title 49, United States Code, as 
amended by subsection (a) of this section, shall apply to any expense 
of the type described in subsection (a) of such section 10751 that was 
incurred prior to the effective date of this Act (other than an expense 
with respect to which a penalty was paid pursuant to section 10761 of 
such title 49) or that is incurred on or after such effective date. 49 use 10761 
49 u s e 10751 
note. 
EFFICIENT MARKETING 
SEC. 216. (a) Section 10762(c)(3) of title 49, United States Code, is 
amended by striking out the second sentence and inserting in lieu 
thereof the following: "In the case of a carrier other than a rail 
carrier, a proposed rate change or a new or reduced rate may not 
become effective for 30 days after the notice is published, filed, and 
held open as required under subsections (a) and (b) of this section. In 
the case of a rail carrier, a proposed rate change resulting in an 
increased rate or a new rate shall not become effective for 20 days 
after the notice is published and a proposed rate change resulting in a 
reduced rate shall not become effective for 10 days after the notice is 
published, except that a contract authorized under section 10713 of 
this title shall become effective in accordance with the provisions of ^"^^' P- 1908. 
such section.". 
(b) Section 10762(d)(1) of title 49, United States Code, is amended by 
striking out "30-day" and inserting in lieu thereof "notice". 
94 STAT. 1916 
PUBLIC LAW 96-448—OCT. 14, 1980 
COMPENSATORY JOINT RATE RELIEF 
SEC. 217. (aXD Chapter 107 of title 49, United States Code, is 
amended by inserting after section 10705 the following new section: 
49 use 10705a. 
"§ 10705a. Joint rate surcharges and cancellations 
"(aXlXA) Except as provided in subparagraph (B) of this paragraph, 
a rail carrier providing transportation subject to the jurisdiction of 
the Interstate Commerce Commission under subchapter I of chapter 
49 use 10501. 
105 of this title may publish and apply a surcharge increasing or 
decreasing the through charge applicable to any movement between 
points designated by the surcharging carrier subject to a joint rate. 
Such a surcharge may be applied without the concurrence of the 
other carriers that are party in such joint rate. 
"(B) A carrier earning adequate revenues, as determined under 
Ante, p. 1906. 
section 10704(aX2) of this title, may not apply such a surcharge to any 
movement on a line operated by such carrier which carried more 
than 3,000,000 gross ton miles of traffic per mile in the preceding 
calendar year. 
"(C) Any surcharge applied pursuant to this subsection must be 
applied in equal dollar amounts to the movement subject to the 
surcharge over all routes between the points designated by the 
surcharging carrier which such carrier participates in under the joint 
rate involved, and when the surcharge increases the through charges, 
under any of such carrier's single line rates between the same points. 
"(2XA) Whenever a rail carrier applies a surcharge increasing a 
through charge pursuant to paragraph (1) of this subsection, any 
other rail carrier that participates in any movement subject to such 
surcharge may cancel the application of such surcharge to any route 
participated in by such other carrier, if such carrier makes the 
demonstration described in subparagraph (B) of this paragraph. 
"(B) A rail carrier may cancel the application of a surcharge under 
this paragraph if such carrier demonstrates to the Commission that 
the surcharging carrier's share of the revenues, at the time the 
surcharge was filed with the Commission, from its participation in 
the movement over the route involved would have been equal to or 
greater than 110 percent of its variable costs of providing service over 
such route, under either— 
"(i) the applicable joint rate in effect at the time the surcharge 
was filed with the Commission, without the surcharge; 
"(ii) a new rate division increasing the share of the surcharging 
carrier; 
"(iii) a new higher lawful rate published by the canceling 
carrier; or 
"(iv) a new, lesser surcharge which shall be prescribed by the 
Commission upon and in conformity with the request of the 
carrier proposing to cancel the surcharge. Any such prescribed 
surcharge shall, in conjunction with the surcharging carrier's 
division of the joint rate in effect on the date the original 
surcharge was filed with the Commission, provide the carrier 
proposing the original surcharge revenues equal to or greater 
than 110 percent of such surcharging carrier s variable cost of 
providing service over such route. 
"(CXi) The canceling tariff shall only become effective if the rail 
carrier proposing to cancel the application of the surcharge makes 
the demonstration described in subparagraph (B) of this paragraph, 
"(ii) If the demonstration described in clause (i) of this subpara-
graph is made on the basis of the applicable joint rate in effect at the 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1917 
Surcharge level, 
determination. 
time the surcharge was filed with the Commission, without the 
surcharge, the tariff shall become effective on one day's notice after 
such determination is made. 
"(iii) If the demonstration described in clause (i) of this subpara-
graph is made on the basis of a new rate, division, or surcharge 
prescribed pursuant to subparagraph (B)(iv) of this paragraph, the 
tariff shall become effective on the date such new rate, division, or 
surcharge becomes effective. 
"(D) The remedy available to a rail carrier canceling the applica-
tion of a surcharge under this paragraph shall be in addition to any 
other remedy available to such carrier under this chapter. 
"(3)(A) The Commission may cancel the application of a surcharge 
to a route to which such surcharge applies if a shipper moving traffic 
over such route demonstrates to the Commission that— 
"(i) there is no competitive alternative to such route for the 
movement of the traffic involved that is not subject to such 
surcharge; and 
"(ii) the surcharging carrier's share of the revenues from its 
participation in the movement over the route to which such 
surcharge applies, under the applicable joint rate in effect at the 
time the surcharge was filed with the Commission, with the 
surcharge, would be greater than 110 percent of its variable cost 
of providing service over such route. 
"(B) If the Commission cemcels the application of a surcharge to a 
particular route pursuant to subparagraph (A) of this paragraph, the 
Commission shall determine the level of surcharge which, in conjunc-
tion with the surcharging carrier's division of the joint rate in effect 
at the time the surcharge was filed with the Commission, would equal 
110 percent of the surcharging carrier's variable cost of providing 
service over such route, and shall authorize such carrier immediately 
to apply such a surcharge without any further proceedings under this 
subsection. 
"(4) A rail carrier may not apply a surcharge under this subsection 
unless, for the one-year period preceding the surcharge, such carrier 
has concurred in all rate increases of general applicability applicable 
to the joint rate to which such surcharge applies and agreed to by all 
other carriers that are party to such joint rate. 
"(5) A rail carrier may not apply a surcharge under this subsection 
increasing a through charge applicable to a particular movement 
more than once each calendar year. 
"(6) Notwithstanding any other provision of this subsection, a rail 
carrier may, by tariff, reduce the total charges applicable to a 
movement over any specific joint line or single line route or routes in 
which such carrier participates, if such reduction does not lower the 
total charges applicable to such movement to a level that is less than 
the lowest total charges applicable to the same movement over a 
competing route. Any such reduction may be made without the 
concurrence of any other rail carrier, and shall be borne solely by the 
carrier reducing the charge. Nothing in this paragraph shall be 
construed to limit the right of a carrier to reduce rates over routes not 
in direct competition between the same points with routes to which it 
has applied a surcharge. 
"(b)(1) Notwithstanding subsection (a) of this section— 
"(A) a rail carrier not earning adequate revenues, as deter-
mined under section 10704(a)(2) of this title, may publish and Ante, p. 1906. 
apply a surcharge applicable to traffic originating or terminating 
upon any of its lines that carried less than 3,000,000 gross ton 
Total charges, 
reduction. 
94 STAT. 1918 
PUBLIC LAW 96-448—OCT. 14, 1980 
miles of traffic per mile in the most recent calendar year for 
which traffic data is available; and 
"(B) a rail carrier earning adequate revenues, as so deter-
mined, may publish and apply a surcharge applicable to traffic 
originating or terminating upon any of its lines that carried less 
than 1,000,000 gross ton miles of trsiffic per mile in such most 
recent calendar year. 
Such a surcharge may be applied without the concurrence of any rail 
carrier. Any such surcharge may be allocated, subject to the provi-
sions of paragraph (4) of this subsection, in different amounts among 
different movements between different origins and destinations, and 
shall accrue solely to the surcharging carrier. 
"(2) A rail carrier may apply a surcharge under this subsection if, 
prior to the application of such surcharge, that portion of the charges 
applicable to traffic to and from the line to which the surcharge 
applies and accruing to the surcharging carrier does not provide such 
carrier revenues adequate to cover— 
"(A) 110 percent of such carrier's variable cost of transporting 
the traffic involved to or from such line; plus 
"(B) 100 percent of such carrier's reasonably expected costs of 
continuing to operate such line, which shall include all costs 
necessary to sustain service on the line. 
The Commission shall, within 120 days after the effective date of the 
Ante, p. 1895. 
Staggers Rail Act of 1980, complete a proceeding to define the term 
'reasonably expected costs' as used in subparagraph (B) of this 
paragraph. In the interim, the term shall be construed in accordance 
with Rail Services Planning Office subsidy standards. 
Shipper petition. 
"(3XA) Upon petition of a shipper located upon a line to which a 
surcharge under this subsection is applied, the Commission may 
cancel the application of a surcharge under this subsection if such 
shipper demonstrates to the Commission that, after application of the 
surcharge, the surcharging carrier's revenues from all traffic origi-
nating or terminating upon the line to which the surcharge applies 
exceed 110 percent of such carrier's variable cost of transporting all 
traffic to or from such line plus such carrier's reasonably expected 
costs of continuing to operate such line. 
"(B)(i) A rail carrier's revenue from all traffic originating or 
terminating upon a line shedl be presumed to exceed 110 percent of its 
variable cost of transporting all traffic to or from such line plus its 
reasonably expected costs of continuing to operate such line if the 
complaining shipper demonstrates that the carrier is earning rev-
enues from all traffic originating or terminating upon such line that 
result in a revenue-variable cost percentage that is equal to or greater 
than the revenue-variable cost percentage applicable in that year 
Ante, p. 1900. 
under section 10709(d) of this title. 
"(ii) A surcharging carrier may rebut the presumption set forth in 
clause (i) of this subparagraph by demonstrating to the Commission 
that its reasonably expected costs for operating the line to which the 
surcharge applies exceed the percentage of variable cost set forth in 
such clause (i). 
"(C) Upon a finding by the Commission that application of the 
surcharge will produce revenues in excess of 110 percent of the 
surcharging carrier's variable cost of transporting traffic to or from 
the line plus its reasonably expected costs for operating the line, the 
Commission shall determine the level of surcharge which would 
produce revenues equal to such figure and shall authorize such 
carrier immediately to apply such surcharges as will generate such 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1919 
Shipper 
complaint. 
revenues without any further proceedings, subject only to the right of 
a shipper to proceed under par£igraph (4) of this subsection. 
"(4)(A) A rail carrier may not apply a surcharge under this 
subsection that results in any shipper being required to bear more 
than a reasonable proportion of the reasonably expected costs of 
continuing to operate the line to which such surcharge applies. 
"(B) Upon complaint of a shipper, the Commission shall determine 
whether the shipper is being required to bear more than a reasonable 
proportion of the costs described in subparagraph (A) of this 
paragraph. 
"(C) If the Commission finds that a complaining shipper is being 
required to bear more than a reasonable proportion of the costs 
described in subparagraph (A) of this paragraph, the Commission 
may reallocate the surcharge among the traffic originating or termi-
nating on the line to which the surcharge applies, but may not order 
relief which would result in the surcharging carrier earning revenues 
less than those which the carrier would have earned had the 
surcharge been applied as filed. 
"(5) A shipper may, in a single complaint, seek relief under Relief. 
paragraphs (3) and (4) of this subsection. In any such complaint, the 
Commission shall first determine the right to relief under paragraph 
(3) and shall grant such relief as is appropriate under such 
paragraph. 
"(6) In any proceeding brought before the Commission challenging 
the application or amount of a surcharge under this subsection, 
whether the surcharge is claimed to violate this subsection or some 
other provision of this chapter, the Commission shall not suspend the 
application of any such surcharge unless the person filing the verified 
statement required by section 10707(c) of this title, in addition to the Ante, p. 1907. 
matters required by such section, also makes the demonstration 
required by paragraph (3)(A) of this subsection. If the demonstration 
required by such paragraph (3)(A) is made, the Commission may 
suspend the application of only so much of the surcharge as will 
produce revenues in excess of the amount so demonstrated. 
"(c)(1) Notwithstanding any other provision of this title, any prior 
agreement in effect on the effective date of the Staggers Rail Act of 
1980, or any requirement of the Commission, a rail carrier may Ante, p. 1895. 
cancel the application of a joint rate to a through route in which it 
participates, without the concurrence of any other rail carrier that is 
a party to such joint rate, unless another rail carrier that participates 
in such through route or a shipper that has no competitive alterna-
tive to such route makes the demonstration described in parsigraph 
(2) of this subsection. 
"(2) The application of a joint rate to a through route may not be 
canceled under this subsection if a rail carrier that participates in 
such through route or a shipper that h£is no competitive alternative 
to such route from an origin or destination served by such route 
demonstrates to the Commission that the canceling carrier's share of 
the revenues, under the joint rate in effect at the time the application 
of the joint rate is canceled, is equal to or greater than— 
"(A) 110 percent of the canceling carrier's variable cost of 
providing service over such route; or 
"(B) such lesser percent of the canceling carrier's variable cost 
as such carrier earns over a competing through route to which 
application of the joint rate has not been canceled, or over a 
competing single line route. 
79-194 O—81—pt. 2 
41: QL3 
94 STAT. 1920 
PUBLIC LAW 96-448—OCT. 14, 1980 
49 use 10705. 
Increased or 
decreased 
revenues. 
"(3) When a complaining party is unable to make the demonstra-
tion required by paragraph (2) of this subsection, the Commission 
may suspend the tariff canceling the joint rate only if^ 
"(A) a complaining carrier publishes a new rate division or a 
new higher lawful rate which increases the canceling carrier's 
share of the revenues over such route to the amount calculated 
under paragraph (2)(A) or (2)(B) of this subsection, whichever is 
less; or 
"(B) a complaining carrier or shipper petitions the Commission 
and the Commission imposes a surcharge, in conformity with 
such petition, upon the joint rate which will accrue solely to the 
canceling carrier and which, in conjunction with the canceling 
carrier's division of the joint rate in effect on the date the tariff 
canceling the joint rate W£is filed, will provide the canceling 
carrier revenues equal to or greater than 110 percent of its 
variable cost of providing service over such route. 
Unless a new rate, division, or surcharge described in this paragraph 
becomes effective within 120 days after the proposed effective date of 
the rate cancellation, the canceling tariff shall, nevertheless, become 
effective. 
"(4) If the demonstration described in paragraph (2) is made or a 
new rate, division, or surcharge described in paragraph (3) becomes 
effective, the tariff canceling the joint rate shall be considered by the 
Commission in accordance with section 10705 of this title. The 
existing joint rate or the new rate, division, or surcharge, shall 
remain in effect during the pendency of the Commission's 
consideration. 
"(5) Whenever the application of a joint rate to a through route is 
canceled under this subsection and a rate other than a joint rate is or 
has been published by the canceling carrier to apply to such route, 
such rate shall thereafter apply in lieu of all other rates (except joint 
rates subsequently agreed to by such carrier) and any through rate of 
which such rate is a factor shall divide as the separate factors of such 
rate are made. 
"(6) Nothing in this subsection shall be construed to limit the 
authority of the Commission under section 10705(a) of this title to 
prescribe joint rates which provide a rail carrier participating in such 
joint rate revenues equal to or greater than 110 percent of its variable 
cost of providing service over each route to which such rate applies. 
"(d)(1) Except as provided in paragraph (2) of this subsection, any 
increase or decrease in revenue resulting from the application of a 
surcharge under subsection (a) of this section, or from the cancella-
tion of the application of a joint rate under subsection (c) of this 
section, shall accrue solely to or be borne solely by the carrier 
applying the surcharge or canceling the application of the joint rate, 
as the case may be. 
"(2) Whenever a class III rail carrier which participates in a 
through route to which a surcharge has been applied under subsec-
tion (a) of this section by a carrier operating in the same rate territory 
as such class III carrier demonstrates to the Commission that the 
application of such surcharge to such route provides, in the absence of 
any increase in the joint rate in effect on the date the surcharge was 
filed with the Commission, revenues from traffic moving over such 
route to such surcharging carrier in excess of 110 percent of its 
variable costs over such route, such surcharging carrier shall, from 
the date of such demonstration, share those revenues from such 
route, from the surcharge and the applicable joint rate in effect on 
the date the surcharge was filed with the Commission, in excess of 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1921 
110 percent of its variable costs with all class III rail carriers in the 
same rate territory participating in such route, on the basis of their 
existing divisions of the joint rate to which the surcharge applies. 
"(eXD Except as provided in paragraph (2) of this subsection, 
whenever a rail carrier proposes to apply a surcharge under subsec-
tion (a) of this section or to cancel the application of a joint rate under 
subsection (c) of this section and another rail carrier subsequently 
agrees to a new rate division or a new lawful rate that increases the 
surcharging or canceling carrier's share of the total through charges 
for a movement over a particular through route subject to a joint 
rate, such other rail carrier shall also agree to any other new rate 
division and new lawful rate— 
"(A) that is proposed within 120 days after the date of the first 
agreement; and 
"(B) that increases the surcheurging or canceling carrier's share 
of the total through charges for movements over a competing 
through route subject to such joint rate. 
"(2) A rail carrier shgdl not be required to agree under this 
subsection to £uiy proposed new division or new rate which would— 
"(A) reduce such carrier's share of the total through charges 
for a movement over any through route to less than (i) 110 
percent of its variable costs of providing service over such route, 
or (ii) such lesser percent of its variable costs as such carrier 
earns from such movement over a competing through route with 
respect to which such carrier has agreed to a new division or rate; 
(B) increase the surcharging or canceling carrier's share of 
the total through charges for a movement over any through 
route to an amount in excess of 110 percent of its variable costs of 
providing service over such route; 
"(C) reduce such carrier's share of the total through charges 
for a movement over any through route by a dollar amount in 
excess of the greatest dollar reduction which such carrier has 
agreed to make, for purposes of increasing the surcharging or 
canceling carrier's share, to its share of the total through charges 
for a movement over any competing through route; or 
"(D) reduce such carrier's share of the total through charges 
for a movement over any through route in an amount in excess of 
such carrier's pro rata share (based on established divisions for 
movements over such route) of the increase of the surcharging or 
canceling carrier's share of the total through charges for move-
ments over such route. 
"(f) A rail carrier appl3dng a surcharge or canceling the application Tariff filing. 
of a joint rate under this section shall file a tariff with the Commis-
sion in accordance with section 10762 of this title. Such a tariff may 49 use 10762 
not become effective until the expiration of the 45-day period (or such 
longer period as the filing carrier specifies) beginning on the date 
such tariff is filed. 
"(gXD Any rail rate to which a surcharge is applied under this 
section shall be subject to section 10701a and 10709 of this title, and 
any such surcharge shall constitute a rate increase for purposes of 
such sections. 
"(2) For purposes of rate regulation under section 10701a of this 
title— 
"(A) only the rgdl carrier proposing a surcharge under this 
section shall be required to defend such surcharge; and 
"(B) the reasonableness of the surcharge and the revenues 
received by the rail carrier proposing the surcharge under the 
joint rate to which the surcharge applies shall be determined 
Ante, p. 1898. 
49 use 10709. 
94 STAT. 1922 
PUBLIC LAW 96-448—OCT. 14, 1980 
Variable costs 
and revenues, 
determination. 
Investigation. 
Rescinding 
order. 
without regard to amount received and services performed by 
other rail carriers that are party to such joint rate. 
"(3) Except as provided in subsection (i), (j), or (k) of this section, if 
the appHcation of a surcharge or the cancellation of the application of 
a joint rate under this section is found to constitute a violation of any 
provision of this title, such violation shall not be ordered remedied in 
any manner which— 
"(A) requires the carrier applying a surcharge under subsec-
tion (a) of this section or canceling the application of a joint rate 
under subsection (c) of this section to provide service over any 
rate under a rate that provides revenues to such carrier that are 
less than 110 percent of its variable costs of providing such 
service; or 
"(B) which requires the carrier applying a surcharge under 
subsection 0^) of this section to provide service over the route to 
which such surcharge applies in a manner that provides rev-
enues to such carrier that are less than 110 percent of such 
carrier's variable cost of transporting the traffic involved to or 
from the line to which the surcharge applies, plus such carrier's 
reasonably expected costs of providing service over such line. 
"(h) Within 5 days after the request of a rail carrier participating in 
a joint rate subject to a surcharge or cancellation under this section, a 
shipper moving traffic over a route to which such surcharge or 
cancellation applies, or an affected port, the Commission shall make 
available to such carrier, shipper, or port the Commission's determi-
nation of the variable costs and revenues, over the route or routes to 
which the surcharge or cancellation applies, of the carrier applying 
the surcharge or canceling the application of the joint rate. 
"(i)(l) Whenever a class III rail carrier, in a protest filed with the 
Commission, makes a prima facie showing that the application of a 
surcharge under subsection (a) of this section or the cancellation of 
the application of a joint rate under subsection (c) of this section will 
have an adverse effect on competition, the Commission shall investi-
gate such protest. If, on the basis of such investigation, the Commis-
sion finds that the protested surcharge or cancellation is or is 
intended to be anticompetitive, the Commission shall, within 30 days 
after the date such protest is filed, enter an order rescinding such 
surcharge or cancellation, and may, on presentation of an adequate 
record, prescribe new joint rates or divisions of 
joint rates. 
"(2) No order prescribed under this subsection shall require a 
carrier to provide service over any route under a rate which provides 
revenues less than 110 percent of the variable cost of providing such 
service unless the Commission determines that the public interest 
requires a lesser revenue to variable cost ratio to avoid anticompeti-
tive action and to preserve service on the route involved. 
"(j)(l) Any class III rail carrier which originates or terminates 
traffic subject to the application of a surcharge under subsection (a) of 
this section or the cancellation of the application of a joint rate under 
subsection (c) of this section may protest such surcharge or cancella-
tion whenever— 
"(A) such surcharge or cancellation affects the sole remaining 
route available to that carrier for that traffic; and 
"(B)(i) such carrier demonstrates that alternative transporta-
tion is available or that a shipper dependent on that carrier will 
suffer significant market loss because of such surcharge or 
cancellation; or 
"(ii) such surcharge or cancellation, alone or when considered 
in conjunction with other surcharges or cancellations affecting 
investigation. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1923 
the carrier, is likely to unduly impair a carrier's ability to earn 
an adequate rate of return. 
"(2XA) The Commission may, after an investigation on the basis of 
a protest under this subsection, prescribe a lesser surcharge or a 
different division of the joint rate. The Commission shall grant the 
surcharging or canceling carrier revenues not less than 110 percent 
of its variable cost of the movement involved, unless it determines 
that the public interest requires a lesser revenue to variable cost ratio 
to preserve service on the route involved. Any action by the Commis-
sion based on a protest under this subsection shall be taken within 30 
davs after the date such protest is filed. 
(B) If the Commission prescribes a different division of a joint rate 
under this paragraph, the Commission shall, upon petition of the 
surcharging or canceling carrier or the protesting class III rail 
carrier, reopen the proceeding in which such division WEIS prescribed 
to reconsider whether such prescribed division is reasonable. If, on 
the basis of such reconsideration, the Commission determines that 
such division is not reasonable, it shall prescribe a new, reasonable 
division of the joint rate to which the surcharge or cancellation 
applied. 
(kXl) Upon the complaint of a class III rail carrier which origi- Rail carrier 
nates or terminates traffic subject to the application of a surcharge 
f"^Swir 
under subsection (a) of this section or the cancellation of the applica-
tion of a joint rate under subsection (c) of this section that such 
surcharge or cancellation will result in differences or greater differ-
ences in rates, including any surcharges, for the traffic to which the 
surcharge or cancellation applies over different routes in which the 
surcharging or canceling carrier participates— 
"(A) from a single origin point to destination points within a 75 
mile direct radius from the destination point on such class III rail 
carrier; or 
"(B) to a single destination point from origin points within a 75 
mile direct radius from the origin point on such class III rail 
carrier, 
the Commission shall investigate such complaint and shall, within 30 
days after the date such complaint is filed, take such actions, 
including rescinding surcharges or cancellations or prescribing new 
joint rates or surcharges, as it determines are required to eliminate 
such differences in rates, unless it finds that such actions are not 
warranted by the public interest in ensuring effective competition 
among rail carriers or in the preservation of rail service on the route 
involved. 
"(2) No action taken by the Commission under this subsection shall 
require a carrier to provide service over any route under a rate which 
provides a revenue to variable cost ratio over such route less than 
that provided under the joint rate to which the surcharge or cancella-
tion was applied or less than 110 percent, whichever is greater, unless 
the Commission determines that the public interest in ensuring 
effective competition among rail carriers or in preserving service 
over such route warrants requiring the surcharging or canceling 
carrier to provide service at a lesser revenue to variable cost ratio. 
"(3) Notwithstanding subsection (mXD of this section, if, in a 
proceeding under this subsection or under subsection (i) or (j) of this 
section, the Commission considers whether to require the revenues of 
a carrier applying a surcharge under subsection (a) of this section or 
canceling the application of a joint rate under subsection (c) of this 
section to be less than 110 percent of its variable costs (as calculated 
using the Commission's Rail Form A cost finding methodology), such 
94 STAT. 1924 
PUBLIC LAW 96-448—OCT. 14, 1980 
New 
compensatory 
through rate. 
Variable costs 
and revenue 
share. 
49 u s e 10726. 
Ante, p. 1897. 
Ante, p. 1895. 
49 u s e 10705a 
note. 
Ante, p. 1916. 
surcharging or canceling carrier may prove its actual variable costs 
on the basis of evidence other than unadjusted costs calculated using 
such Rail Form A cost finding methodology. Such evidence shall 
be prepared in accordance with generally accepted accounting 
principles. 
"(1) Whenever the application of a joint rate to a through route is 
canceled under subsection (c) of this section, the Commission shall, 
upon petition by a class II or III rail carrier participating in such 
route, prescribe a new compensatory through rate or rates over such 
route within 30 days after the date such petition is filed. 
"(m) For purposes of this section— 
"(1) variable costs for a class I rail carrier shall be determined 
only by using such carrier's unadjusted costs, calculated using 
the Commission's Rail Form A cost finding methodology (or an 
alternative methodology adopted by the Commission in lieu 
thereof) and indexed quarterly to account for current wage and 
price levels in the region in which the carrier operates; 
"(2) variable costs for a rail carrier other than class I shall be 
presumed to be the average variable costs of all class I rail 
carriers in the region in which such carrier operates (as deter-
mined under paragraph (1) of this subsection) unless a rail 
carrier rebuts such presumption with other proof of variable 
costs; and 
"(3) at the option of a carrier applying a surcharge or canceling 
the application of a joint rate under this section, revenue share 
may be determined by reference to past revenue settlements 
actually made in the most recent calendar year by connecting 
lines. 
"(n) Surcharges applied under subsection (a) or (c) of this section 
and cancellations under subsection (c) of this section shall not be 
subject to the provisions of section 10726 (a)(lXB) of this title. 
"(o) The Special Counsel of the Commission may, consistent with 
the rail transportation policy in section 10101a of this title, provide 
assistance to class III rail carriers and small businesses in preparing 
actions under this section. 
"(p)(l) The authority to apply a surcharge under subsection (a) of 
this section, and (except as provided in paragraph (2)) the authority to 
cancel such a surcharge, shall expire 3 years after the effective date 
of the Staggers Rail Act of 1980 unless extended for one additional 
year by the Commission upon petition of any rail carrier and for good 
cause shown. 
"(2) Any surcharge lawfully applied under subsection (a) of this 
section shall remain in effect in accordance with its terms following 
the expiration of the provisions of this section. Any such surcharge 
applied during the 45-day period immediately preceding the date of 
the expiration of the provisions of this section shall, notwithstanding 
such expiration, be subject to cancellation under subsection (a)(2) or 
(aX3) of this section during the 45-day period beginning on the date 
such surcharge is applied.'. 
(2) The section analysis of chapter 107 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 10705 the following new item: 
"10705a. Joint rate surcharges and cancellations.". 
(b) For purposes of section 10705a of title 49, United States Code, 
the Interstate Commerce Commission shall classify all rail carriers 
on the basis of revenues, shall from time to time review its regula-
tions setting forth revenue-based classifications for rail carriers, and 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1925 
shall make appropriate changes in such regulations in order to reflect 
inflation. The Commission shall not reclassify switching and termi-
nal carriers, or any other rail carriers not classified on the basis of 
revenues on the effective date of this Act, for any purpose other than 
for purposes of such section 10705a. 
(c)(1) The Interstate Commerce Commission shall include in its 
annual report to the Congress under section 10311 of title 49, United 
States Code, a report with respect to the application of surcharges 
and the cancellation of the application of joint rates by the Consoli-
dated Rail Corporation and other rail carriers, during the preceding 
year, under section 10705a of title 49, United States Code. Each such 
report shall include— 
(A) an analysis of the effect of application of surcharges and 
the cancellation of the application of joint rates under such 
section 10705a on shippers, ports, class II and class III rail 
carriers, railroad employees, and other elements of the rail 
system; 
(B)(i) the number of surcharges applied by the Consolidated 
Rail Corporation and all other rail carriers under such section 
10705a and the amount of revenue received by the Corporation 
and all other rail carriers from the application of such sur-
charges, (ii) the number of surcharges applied by the Corporation 
and all other rail carriers that were canceled under the proce-
dures of such section 10705a, and (iii) the number of cancellations 
of the application of a joint rate by the Corporation and all other 
rail carriers under such section 10705a; and 
(C) an analysis of the operation of the remedies made available 
to class III rail carriers under subsections (i), (j), and (k) of such 
section 10705a and to class II and class III rail carriers under 
subsection (1) of such section 10705a. 
(2) The Interstate Commerce Commission shall, within 2 years 
after the effective date of this Act, submit a report to the Congress 
with respect to whether the provisions of section 10705a of title 49, 
United States Code, have adequately addressed the joint rate prob-
lems of rail carriers. The report shall include such recommendations 
with respect to such joint rate problems as the Commission considers 
necessary and appropriate. 
Ante, p. 1916. 
Report to 
Congress. 
49 u s e 10311 
note. 
Ante, p. 1916. 
Contents. 
Report to 
Congress. 
49 u s e 10705a 
note. 
Ante, p. 1916. 
EXPEDITED DIVISION OF REVENUES PROCEEDINGS 
SEC. 218. (a) Section 10705(f)(1) of title 49, United States Code, is 
amended to read as follows: 
"(f)(1)(A) The Commission may begin a proceeding under subsection 
(a) or (b) of this section on its own initiative or on complaint. The 
Commission must complete all evidentiary proceedings to adjust the 
division of joint rates for transportation by a rail carrier within 9 
months after the complaint is filed if the proceeding is brought on 
complaint or within 18 months after the commencement of a proceed-
ing on the initiative of the Commission. The Commission must take 
final action by the 180th day after completion of the evidentiary 
proceedings, except that— 
"(i) when the proceeding involves a railroad in reorganization 
or a contention that the divisions at issue do not cover the 
variable costs of handling the traffic, the Commission shall give 
the proceedings preference over all other proceedings and shall 
take final action at the earliest practicable time, which in no 
event may exceed 100 days after the completion of the eviden-
tiary proceedings; and 
94 STAT. 1926 
PUBLIC LAW 96-448—OCT. 14, 1980 
"(ii) in all cases other than those specified in clause (i) of this 
subparagraph, the Commission may decide to extend such a 
proceeding to permit its fair and expeditious completion, but 
whenever the Commission decides to extend a proceeding pursu-
ant to this clause, it must report its reasons to Congress. 
"(B) The provisions of this paragraph imposing time limitations 
upon Commission action shall not apply to any division proceeding 
involving a joint rate participated in by a class III rail carrier. , 
(b) Section 10705(f)(1) of title 49, United States Code, as amended by 
subsection (a) of this section, is further amended— 
(1) by striking out subparagraph (B); 
(2) by striking out "(A)" immediately before "The Commis-
sion"; 
(3) by striking out "(i)" and inserting in lieu thereof "(A)"; 
(4) by striking out "(ii)" and inserting in lieu thereof "(B)"; and 
(5) by striking out "clause (i) of this subparagraph" and 
inserting in lieu thereof "subparagraph (A) of this paragraph". 
RATE BUREAUS 
SEC. 219. (a) Section 10706(a)(1) of title 49, United States Code, is 
amended by adding at the end thereof the following new subpara-
graph: 
"(C) 'practicably participates in that movement' shall have 
such meaning as the Commission shall by regulation prescribe.", 
(b) Section 10706(a)(2)(A) of title 49, United States Code, is 
amended— 
(1) by inserting "publication," immediately after "initiation," 
in the first sentence; and 
(2) by striking out "section 10101" in the second sentence and 
inserting in lieu thereof "section 10101a". 
(c)(1) Section 10706(a)(3)(A) of title 49, United States Code, is 
amended to read as follows: 
"(3)(A) An organization established or continued under an agree-
ment approved under this subsection shall make a final disposition of 
a rule or rate docketed with it by the 120th day after the proposal is 
docketed. Such an organization may not— 
"(i) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on single line rates proposed by 
another rail carrier, except that for purposes of general rate 
increases and broad tariff changes only, if the Commission finds 
at any time that the implementation of this clause is not feasible, 
it may delay or suspend such implementation in whole or in part; 
"(ii) permit a rail carrier to discuss, to participate in agree-
ments related to, or to vote on rates related to a particular 
interline movement unless that rail carrier practicably partici-
pates in that movement; or 
"(iii) if there are interline movements over two or more routes 
between the same end points, permit a carrier to discuss, to 
participate in agreements related to, or to vote on rates except 
with a carrier which forms part of a particular single route. This 
clause shall take effect on January 1, 1984, or on such earlier 
date as the Commission determines. If the (Commission finds at 
any time that the implementation of this clause is not feasible, it 
may delay or suspend such implementation in whole or in part.". 
(2) Section 10706(a)(3)(B) of title 49, United States Code, is amended 
to read as follows: 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1927 
"(B) Until January 1, 1984, subparagraph (A)(ii) and (A)(iii) of this 
paragraph do not apply to— 
"(i) general rate increases to cover inflationary cost increases, 
or general rate decreases, for joint rates if the agreement gives 
shippers, under specified procedures, at least 15 days notice of 
the proposal and an opportunity to present comments on it 
before a tariff containing the increases or decreases is filed with 
the Commission; or 
"(ii) broad tariff changes that are of at legist substantially 
general application throughout the area where the changes will 
apply, except single line rates where subparagraph (A)(i) of this 
paragraph prohibits the participation of carriers with single line 
rates. 
If the Commission finds at any time that the implementation of this 
subparagraph is not feasible, it may delay or suspend such implemen-
tation in whole or in part.". 
(3) Section 10706(a)(3)(C) of title 49, United States Code, is 
amended— 
(A) by inserting "(i)" immediately after "(C)"; and 
(B) by adding at the end thereof the following new clause: 
"(ii) In any proceeding in which it is alleged that a carrier was a 
party to an agreement, conspiracy, or combination in violation of a 
Federal law cited in subsection (a)(2)(A) of this section or of any 
similar State law, proof of an agreement, conspiracy, or combination 
may not be inferred from evidence that two or more carriers acted 
together with respect to an interline rate or related matter and that a 
party to such action took similar action with respect to a rate or 
related matter on another route or traffic. In any proceeding in which 
such a violation is alleged, evidence of a discussion or agreement 
between or among such carrier and one or more other carriers, or of 
any rate or other action resulting from such discussion or agreement, 
shall not be admissible if the discussion or agreement— 
"(I) was in accordance with an agreement approved under 
paragraph (2) of this subsection; or 
"(II) concerned an interline movement of the carrier, and the 
discussion or agreement would not, considered by itself, violate 
the laws referred to in the first sentence of this clause. 
In any proceeding before a jury, the court shedl determine whether 
the requirements of clause (I) or (II) are satisfied before allowing the 
introduction of any such evidence.". 
(4) Section 10706(a)(3) of title 49, United States Code, is amended by 
adding at the end thereof the following new subparagraph: 
"(D) An organization described in subparagraph (A) of this para- Records. 
graph shall provide that transcripts or sound recordings be made of 
all meetings, that records of votes be made, and that such transcripts 
or recordings and voting records be submitted to the Commission and 
made available to other Federal agencies in connection with their 
statutory responsibilities over rate bureaus, except that such mate-
rial shall be kept confidential and shall not be subject to disclosure 
under section 552 of title 5, United States Code.". 
(d) Section 10706(a) of title 49, United States Code, is amended by 
adding at the end thereof the following new paragraph: 
"(4) Notwithstanding any other provision of this subsection, one or 
more rail carriers may enter into an agreement, without obtaining 
prior Commission approval, that provides solely for compilation, 
publication, and other distribution of rates in effect or to become 
effective. The Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 
U.S.C. 12 et seq.), the Federal Trade Commission Act (15 U.S.C. 41 et 
94 STAT. 1928 
PUBLIC LAW 96-448—OCT. 14, 1980 
Investigation. 
49 u s e 10101. 
Ante, p. 1897. 
49 u s e 10706 
note. 
49 u s e 10706 
note. 
"Employees." 
seq.), sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9), 
and the Act of June 19,1936, as amended (15 U.S.C. 13,13a, 13b, 21a) 
shall not apply to parties and other persons with respect to making or 
carrying out such agreement. However, the Commission may, upon 
application or on its own initiative, investigate whether the parties to 
such an agreement have exceeded its scope, and upon a finding that 
they have, the Commission may issue such orders as are necessary, 
including an order dissolving the agreement, to ensure that actions 
taken pursuant to the agreement are limited as provided in this 
paragraph.". 
(e) Section 10706(iXlXB) of title 49, United States Code, is amended 
by striking out "section 10101" and inserting in lieu thereof "section 
10101a". 
(f) The Interstate Commerce Commission may not take any action 
with respect to the elimination of general rate increases or decreases 
prior to April 1,1982. 
(g) The Interstate Commerce Commission shall require rail carrier 
members of a rate bureau to provide the employees of such rate 
bureau who are affected by the amendments made by this section 
with fair arrangements no less protective of the interests of such 
employees than those established pursuant to section 11347 of title 
49, United States Code. For purposes of this subsection, the term 
"employees" does not include any individual serving as president, 
vice-president, secretary, treasurer, comptroller, counsel, member of 
the board of directors, or any other person performing such functions. 
Repeal. 
LONG AND SHORT HAUL TRANSPORTATION 
SEC. 220. Section 10726(c) of title 49, United States Code, is repealed. 
49 u s e 11347. 
RAILROAD ENTRY 
SEC. 221. (a) Section 10901(a) of title 49, United States Code, is 
amended by striking "will be enhanced by" and inserting in lieu 
thereof "permit". 
(b) Section 10901 of title 49, United States Code, is further amended 
by adding at the end thereof the following new subsections: 
"(dXD Where a rail carrier has been issued a certificate of public 
convenience and necessity by the Commission authorizing the con-
struction or extension of a railroad line, no other rail carrier may 
block such construction or extension by refusing to permit the carrier 
to cross its property if (A) the construction does not unreasonably 
interfere with the operation of the crossed line, (B) the operation does 
not materially interfere with the operation of the crossed line, and (C) 
the owner of the crossing line compensates the owner of the crossed 
line. 
"(2) If the carriers are unable to agree on the terms of operation or 
the amount of payment for purposes of paragraph (1) of this subsec-
tion, either party may submit the matters in dispute to the Commis-
sion for determination. 
"(e) The Commission may require any rail carrier proposing both to 
construct and operate a new railroad line pursuant to this section to 
provide a fair and equitable arrangement for the protection of the 
interests of railroad employees who may be affected thereby no less 
protective of and beneficial to the interests of such employees than 
those established pursuant to section 11347 of this title.". 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1929 
SERVICE DURING PERIODS OF PEAK DEMAND 
SEC. 222. Section 11101(a) of title 49, United States Code, is 
amended by adding at the end thereof the following new sentence: "A 
rail carrier shall not be found to have violated this section because it 
fulfills its commitments under contracts approved under section 
10713 of this title before responding to reasonable requests for Ante, p. 1908. 
service.". 
RECIPROCAL SWITCHING 
SEC. 223. Section 11103 of title 49, United States Code, is amended 
by adding at the end thereof the following new subsection: 
"(c)(1) The Commission may require rail carriers to enter into 
reciprocal switching agreements, where it finds such agreements to 
be practicable and in the public interest, or where such agreements 
are necessary to provide competitive rail service. The carriers enter-
ing into such an agreement shall establish the conditions and 
compensation applicable to such agreement, but, if the carriers 
cannot agree upon such conditions and compensation within a 
reasonable period of time, the Commission may establish such condi-
tions and compensation. 
"(2) The Commission may require reciprocal switching agreements 
entered into by rail carriers pursuant to this subsection to contain 
provisions for the protection of the interests of employees affected 
thereby.". 
CAR SERVICE COMPENSATION 
SEC. 224. (a)(1) Section 11122(b)(2) of title 49, United States Code, is Repeal. 
(2) Section 11122(b)(1) of title 49, United States Code, is amended by 
striking out "(1)" immediately before "The rate". 
(b) Section i0706(a) of title 49, United States Code, as amended by 
this Act, is further amended by adding at the end thereof the 
following new paragraph: 
"(5)(A) Whenever two or more shippers enter into an agreement to 
discuss among themselves that relates to the amount of compensa-
tion such shippers propose to be paid by rail carriers providing 
transportation subject to the jurisdiction of the Commission under 
subchapter I of chapter 105 of this title, for use by such rail carriers of 49 USC 10501. 
rolling stock owned or leased by such shippers, the shippers shall 
apply to the Commission for approval of that agreement under this 
paragraph. The Commission shall approve the agreement only when 
it finds that the making and carrying out of the agreement will 
further the transportation policy set forth in section 10101a of this 
title and may require compliance with conditions necessary to make Ante, p. 1897. 
the agreement further that policy as a condition of approval. If the 
Commission approves the agreement, it may be made and carried out 
under its terms and under the terms required by the Commission, 
and the antitrust laws set forth in paragraph (2) of this subsection do 
not apply to parties and other persons with respect to making or 
carrying out the agreement. The Commission shall approve or disap-
prove an agreement under this paragraph within one year after the 
date application for approval of such agreement is made. 
"(B) If the Commission approves an agreement described in subpar-
agraph (A) of this paragraph and the shippers entering into such 
agreement and the rail carriers proposing to use rolling stock owned 
94 STAT. 1930 
PUBLIC LAW 96-448—OCT. 14, 1980 
Ante, p. 1895. 
or leased by such shippers, under payment by such carriers or under 
a published allowance, are unable to agree upon the amount of 
compensation to be paid for the use of such rolling stock, any party 
directly involved in the negotiations may require that the matter be 
settled by submitting the issues in dispute to the Commission. The 
Commission shall render a binding decision, based upon a standard of 
reasonableness and after taking into consideration any past prece-
dents on the subject matter of the negotiations, no later than 90 days 
after the date of the submission of the dispute to the Commission. 
"(C) Nothing in this paragraph shall be construed to change the law 
in effect prior to the effective date of the Staggers Rail Act of 1980 
with respect to the obligation of rail carriers to utilize rolling stock 
owned or leased by shippers.". 
CAR UTIUZATION 
SEC. 225. (a) Subchapter II of chapter 107 of title 49, United States 
Code, is amended by inserting at the end thereof the following new 
section: 
49 use 10734. 
«§ 10734. Car utilization 
"In order to encourage more efficient use of freight cars, notwith-
standing any other provision of this subtitle, rail carriers shall be 
permitted to establish tariffs containing premium charges for special 
services or special levels of services not provided in any tariff 
otherwise applicable to the movement. The Commission shall facili-
tate development of such tariffs so as to increase the utilization of 
equipment.'. 
O
t
>
) The section analysis of chapter 107 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 10731 the following new item: 
"10734. Car utilization.". 
Commission 
action, 
extension. 
CAR SERVICE ORDERS FOR EXIGENT CIRCUMSTANCES 
SEC. 226. Section 11123(a) of title 49, United States Code, is 
amended to read as follows: 
"(a)(1) When the Interstate Commerce Commission finds that a 
shortage of equipment, congestion of traffic, or other failure in traffic 
movement exists which creates an emergency situation of such 
magnitude as to have substantial adverse effects on rail service in the 
United States or a substantial region of the United States, the 
Commission may, for a period not to exceed thirty days— 
"(A) suspend any car service rule or practice; 
"(B) take action during the emergency to promote service in 
the interest of the public and of commerce regardless of the 
ownership (as between carriers) of a locomotive, car, or other 
vehicle on terms of compensation the carriers establish between 
themselves, subject to subsection Ot)X2) of this section; 
"(C) require joint or common use of facilities, on terms of 
compensation the carriers establish between themselves, subject 
to subsection Ot))(2) of this section, when that action will best meet 
the emergency and serve the public interest; and 
"(D) give directions for preference or priority in transporta-
tion, embargoes, or movement of traffic under permits. 
"(2) The Commission may extend any action taken under para-
graph (1) of this subsection beyond the thirty-day period provided in 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1931 
such paragraph only if the full Commission, after a hearing, certifies 
that a transportation emergency exists. 
"(3) In carrying out the provisions of this subsection, the Commis-
sion shall require, to the maximum extent practicable, the use of the 
employees who would normally have performed work in connection 
with the traffic subject to the action of 
the Commission.". 
EMPLOYEE PROTECTION 
SEC. 227. (a) Section 1170 of title 11, United States Code, is amended 
by adding at the end thereof the following new subsection: 
"(e)(1) In authorizing any abandonment of a railroad line under 
this section, the court shall require the rail carrier to provide a fair 
arrangement at least as protective of the interests of employees as 
that established under section 11347 of 
title 49. 
"(2) Nothing in this subsection shall be deemed to affect the 
priorities or timing of payment of employee protection which might 
have existed in the absence of 
this subsection. . 
(b) Section 1172 of title 11, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(cXl) In approving an application under subsection (b) of this 
section, the Commission shsdl require the rail carrier to provide a fair 
arrangement at least as protective of the interests of employees as 
that established under section 11347 of 
title 49. 
"(2) Nothing in this subsection shall be deemed to affect the 
priorities or timing of payment of employee protection which might 
have existed in the absence of this subsection. . 
Railroad line 
abandonments. 
MERGERS AND OTHER TRANSACTIONS 
SEC. 228. (a) Section 11344(b) of title 49, United States Code, is Applications. 
amended— 
(1) by inserting immediately after "section" the following: 
"which involves the merger or control of at least two class I 
railroads, as defined by the Commission"; and 
(2) by adding at the end thereof the following new paragraph: 
"(5) whether the proposed transaction would have an adverse 
effect on competition among rail carriers in the affected region.". 
(b) Section 11344 of title 49, United States (!)ode, is amended by 
adding at the end thereof the following new subsection: 
"(d) In a proceeding under this section which does not involve the 
merger or control of at least two class I railroads, as defined by the 
Commission, the C!ommission shall approve such an application 
unless it finds that— 
"(1) as a result of the transaction, there is likely to be 
substantial lessening of competition, creation of a monopoly, or 
restraint of trade in freight surface transportation in any region 
of the United States; and 
"(2) the anticompetitive effects of the transaction outweigh the 
public interest in meeting significant transportation needs. 
In making such findings, the Commission shall, with respect to any 
application that is part of a plan or proposal developed under section 
5 (a)-(d) of the Department of Transportation Act (49 U.S.C. 1654 
(a)-(d)), accord substantial weight to any recommendations of the 
Secretary of Transportation.". 
(c) Section 11344 of title 49, United States Code, as amended by this 
Act, is further amended by adding at the end thereof the following 
new subsection: 
94 STAT. 1932 
PUBLIC LAW 96-448—OCT. 14, 1980 
Applications. 
49 use 11345. 
49 use 10501. 
49 use 11343, 
11344. 
Publication in 
Federal 
Register. 
49 use 10327. 
eomments. 
"(e) A rail carrier, or a person controlled by or affiliated with a 
rail carrier, together with one or more affected shippers, may apply 
for approval under this subsection of a transaction for the purpose of 
providing motor carrier transportation prior or subsequent to rail 
transportation to serve inadequately served shippers located on a 
railroad other than the applicant carrier. Such application shall be 
approved hy^ the Commission if the applicants demonstrate presently 
impaired rail service and inadequate motor common carrier service 
which results in the serious failure of the rail carrier serving the 
shippers to meet the rail equipment or transportation schedules of 
shippers or seriously to fail otherwise to provide adequate normal rail 
services required by shippers and which shippers would reasonably 
expect the rail carrier to provide. The Commission shall approve or 
disapprove applications under this subsection within 30 days after 
receipt of such application. The Commission shall approve applica-
tions which are not protested by interested parties within 30 days 
following receipt of such application.". 
(d) Section 11345 of title 49, United States Code, is amended to read 
as follows: 
"§11345. Consolidation, merger, and acquisition of control: rail 
carrier procedure 
"(a) If a rail carrier providing transportation subject to the jurisdic-
tion of the Interstate Commerce Commission under subchapter I of 
chapter 105 of this title is involved in a proposed transaction under 
section 11343 of this title, this section and section 11344 of this title 
also apply to the transaction. The Commission shall publish notice of 
the application in the Federal Register by the end of the 30th day 
after the application is filed with the Commission and after a certified 
copy of it is furnished to the Secretary of Transportation. However, if 
the application is incomplete, the Commission shall reject it by the 
end of that period. The order of rejection is a final action of the 
Commission under section 10327 of this title. The published notice 
shall indicate whether the application involves— 
"(1) the merger or control of at least two class I railroads, as 
defined by the Commission, to be decided within the time limits 
specified in subsection (b) of this section; 
"(2) transactions of regional or national transportation signifi-
cance, to be decided within the time limits specified in subsection 
(c) of this section; or 
"(3) any other transaction covered by this section, to be decided 
within the time limits specified in subsection (d) of this section. 
"(h) If the application involves the merger or control of two or more 
class I railroads, as defined by the Commission: 
"(1) Written comments about an application may be filed with 
the Commission within 45 days after notice of the application is 
published under subsection (a) of this section. Copies of such 
comments shall be served on the Secretary of Transportation and 
the Attorney General, each of whom may decide to intervene as a 
party to the proceeding. That decision must be made by the 15th 
day after the date of receipt of the written comments, and if the 
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day 
after the date of receipt of the written comments. 
"(2) The Commission shall require that applications inconsist-
ent with an application, notice of which was published under 
subsection (a) of this section, and applications for inclusion in the 
transaction, be filed with it and given to the Secretary of 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1933 
Transportation by the 90th day after publication of notice under 
that subsection. 
"(3) The Commission must conclude evidentiary proceedings 
by the end of the 24th month after the date of publication of 
notice under subsection (a) of this section. The Commission must 
issue a final decision by the 180th day after the date on which it 
concludes the evidentiary proceedings. 
"(c) If the application involves a transaction other than the merger 
or control of at least two class I railroads, as defined by the 
Commission, which the Commission has determined to be of regional 
or national transportation significance: 
"(1) Written comments about an application may be filed with 
the Commission within 30 days after notice of the application is 
published under subsection (a) of this section. Copies of such 
comments shall be served on the Secretary of Transportation and 
the Attorney General, each of whom may decide to intervene as a 
party to the proceeding. That decision must be made by the 15th 
day after the date of receipt of the written comments, and if the 
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day 
after the date of receipt of the written comments. 
"(2) The Commission shall require that applications inconsist-
ent with an application, notice of which was published under 
subsection (a) of this section, and applications for inclusion in the 
transaction, be filed with it and given to the Secretary of 
Transportation by the 60th day after publication of notice under 
that subsection. 
"(3) The Commission must conclude any evidentiary proceed-
ings by the 180th day after the date of publication of notice under 
subsection (a) of this section. The Commission must issue a final 
decision by the 90th day after the date on which it concludes the 
evidentiary proceedings. 
"(d) For all applications under this section other than those 
specified in subsections (b) and (c) of this section: 
"(1) Written comments about an application may be filed with 
the Commission within 30 days after notice of the application is 
published under subsection (a) of this section. Copies of such 
comments shall be served on the Secretary of Transportation and 
the Attorney General, each of v/hom may decide to intervene £is a 
party to the proceeding. That decision must be made by the 15th 
day after the date of receipt of the written comments, and if the 
decision is to intervene, preliminary comments about the appli-
cation must be sent to the Commission by the end of the 15th day 
after the date of receipt of the written comments. 
"(2) The Commission must conclude any evidentiary proceed-
ings by the 105th day after the date of publication of notice under 
subsection (a) of this section. The Commission must issue a final 
decision by the 45th day after the date on which it concludes the 
evidentiary proceedings. 
"(e) If the Commission does not issue a decision that is a final action 
under section 10327 of this title, it shall send written notice to 
Congress that a decision was not issued and the reasons why it was 
not issued. 
"(f) The Commission may waive the requirement that an initial 
decision be made under section 10327 of this title and make a final 
decision itself when it determines that action is required for the 
timely execution of its functions under this subchapter or that an 
application governed by this section is of major transportation 
Evidentiary 
proceedings. 
Comments. 
Evidentiary 
proceedings. 
Comments. 
Evidentiary 
proceedings. 
Notice to 
Congress. 
49 u s e 10327. 
Waiver. 
49 u s e 11341. 
94 STAT. 1934 
PUBLIC LAW 96-448—OCT. 14, 1980 
49 u s e 10327. 
Adjudication. 
49 u s e 11343 
note. 
Ante, p. 1932. 
importance. The decision of the Commission under this subsection is 
a final action under section 10327 of this title.". 
(e) Any application filed or pending on the effective date of this Act 
under section 11343, 11344, or 11345 of title 49, United States Code, 
before the Secretary of Transportation, the Interstate Commerce 
Commission, or any court shall be adjudicated or determined as if this 
Act had not been enacted. 
Rate 
complaints. 
49 u s e 10701a 
note. 
49 u s e 10501. 
49 u s e 10709. 
Ante, p. 1898. 
SAVINGS PROVISIONS 
SEC. 229. (a) Any rate that is in effect on the effective date of this 
Act for transportation by a rail carrier providing transportation 
subject to the jurisdiction of the Interstate Commerce Commission 
under subchapter I of chapter 105 of title 49, United States Code, 
may, during the 180-day period beginning on such effective date, be 
challenged in a complaint filed with the Interstate Commerce Com-
mission by any interested party alleging that the rail carrier has 
market dominance over the transportation to which the rate applies, 
as determined under section 10709 of such title, and that the rate is 
not reasonable under section 10701a of such title. 
O
b
) Any rate described in subsection (a) of this section— 
(1) which is not challenged in a complaint filed within the 180-
day period provided in such subsection; or 
(2) which is challenged in such a complaint, but (A) the rail 
carrier is found not to have market dominance over the transpor-
tation to which the rate applies, or (B) the rate is found to be 
reasonable, 
shall be deemed to be lawful and may not thereafter be challenged in 
the Commission or in any court (other than on appeal from a decision 
of the Commission). 
(c) The provisions of this section shall not apply to any rate under 
which the volume of traffic moved during the 12-month period 
immediately preceding the effective date of this Act did not exceed 
500 net tons and has increased tenfold within the 3-year period 
immediately preceding the bringing of a challenge to the reasonable-
ness of such rate. 
(d) The burden of proof in any proceeding under this section shall 
be on the complainant. 
TITLE III-RAILROAD COST DETERMINATIONS 
49 u s e 11142. 
49 u s e 10521, 
10541, 10561. 
UNIFORM ACCOUNTING SYSTEM 
SEC. 301. Section 11142 of title 49, United States Code, is amended 
to read as follows: 
"§11142. Uniform accounting system 
"The Interstate Commerce Commission may prescribe a uniform 
accounting system for classes of carriers providing, and brokers for, 
transportation subject to the jurisdiction of the Commission under 
subchapters II, III, and IV of chapter 105 of this title.". 
RAILROAD COST ACCOUNTING 
SEC. 302. (a) Chapter 111 of title 49, United States Code, is amended 
by adding at the end thereof the following new subchapter: 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1935 
Establishment. 
49 u s e 11161. 
Membership. 
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING 
"§11161. Railroad Accounting Principles Board 
"(a)(1) There is established a Railroad Accounting Principles Board 
which shall be within and responsible to the legislative branch of the 
Federal Government. 
"(2) The Board shall be composed of the Comptroller General of the 
United States, who shall serve as chairman, and six members to be 
appointed by the Comptroller General. 
(3) The Comptroller General shall appoint members of the Board 
from among persons who are well qualified for such position by virtue 
of experience in or knowledge of rate regulation, accounting, or cost 
determinations. Of the members of the Board so appointed— 
"(A) one shall be from the accounting profession; 
"(B) one shall be from the railroad industry; 
"(C) one shall be a representative of major rail shippers; 
"(D) one shall be from the Interstate Commerce Commission; 
"(E) one shall be a representative of small rail shippers; and 
"(F) one shall be from the economics profession. 
"(4) The term of office of each appointed member of the Board shall 
be three years, except that any member appointed to fill a vacancy in 
the Board shall serve for the remainder of the term for which his 
predecessor was appointed. 
"(5) The Board shall not act in the absence of a quorum, which shall 
consist of three members. 
"(b) Each appointed member of the Board shall receive compensa-
tion at a rate equal to Vaeo of the rate prescribed for level IV of the 
Executive Schedule, under section 5315 of title 5, for each day 
(including traveltime) in which he is engaged in the actual perform-
ance of duties vested in the Board. 
"(c)(1) The Board may utilize personnel from the Federal Govern-
ment, with the consent of the head of the appropriate Federal 
department or agency, or appoint individuals from private life, to 
serve on advisory committees or to provide the staff services neces-
sary to assist the Board in carrsdng out its functions and responsibil-
ities under this subchapter. 
"(2) Individuals appointed by the Board under this subsection may 
be appointed without regard to the provisions of title 5 governing 
appointments in the competitive service, and may be paid without 
regard to the provisions of chapter 51 and subchapter III of chapter 53 
of such title, relating to classification and General Schedule pay 
rates. 
"(d) All Federal departments and agencies are authorized to 
cooperate with the Board and to furnish information, appropriate 
personnel (with or without reimbursement), and such financial and 
other assistance as may be agreed upon by the Board and the Federal 
department or agency involved. 
'(e) Members and employees of the Board and all other individuals 
appointed under this subsection having or having had access to 
information in the possession of the Board shall be subject to the 
provisions of section 1905 of title 18. 
"(f) The Board shall cease to exist three years after the effective 
date of the Staggers Rail Act of 1980. 
"§11162. Cost accounting principles 
"(a) Within two years after the effective date of the Staggers Rail 
Act of 1980, the Railroad Accounting Principles Board shall establish, ^nte, p. 1895 
for rail carriers providing transportation subject to the jurisdiction of 
Compensation. 
Advisory 
committees; 
staff services. 
5 u s e 5101 et 
seq., 5331. 
Confidential 
information. 
Termination. 
Ante, p. 1895. 
49 u s e 11162. 
79-194 
O—81—pt. 2 
42 : QL3 
94 STAT. 1936 
PUBLIC LAW 96-448—OCT. 14, 1980 
49 use 10501. 
the Interstate Commerce Commission under subchapter I of chapter 
105 of this title, principles governing the determination of economi-
cally accurate railroad costs directly and indirectly associated with 
particular movements of goods, including the variable costs asso-
ciated with particular movements of goods or such other costs as the 
Board believes most accurately represent the economic costs of such 
movements. Such principles shall govern the determination of all 
railroad costs for specific regulatory proceedings under this title. 
"(b) In developing cost accounting principles under this section, the 
Board shall take into account the following considerations: 
"(1) The specific regulatory purposes for which railroad costs 
are required. 
"(2) The degree of accuracy of the cost information which is 
needed to meet regulatory purposes. 
"(3) The existing capability and the probable future capability 
of rail carriers to provide such information and the relative 
benefits and costs of requiring development of additional 
capability. 
"(4) The means by which the degree of economic accuracy 
required can be obtained at the least possible expense and with 
the least possible information reporting. 
"(5) The means by which the confidentiality of such costs can 
best be maintained while meeting the need for such information 
in regulatory proceedings. 
"(c) The cost accounting principles established by the Board shall 
require that cost information be reported or disclosed only for the 
essential regulatory purposes defined by the Board. 
"§11163. Implementation of cost accounting principles 
"Upon the establishment of cost accounting principles by the 
Railroad Accounting Principles Board under section 11162 of this 
title, the Interstate Commerce Commission shall promptly promul-
gate rules to implement and enforce such principles. Not less than 
once every five years after the promulgation of the original rules, the 
Commission shall review the principles of the Board and shall, by 
rule, make such changes in such principles as are required to achieve 
the regulatory purposes of this title and the goals of this subchapter. 
The Commission shall insure that the rules promulgated under this 
section are the most efficient and least burdensome means by which 
the required information may be developed for regulatory purposes. 
49 use 11164. 
"§ 11164. Certification of rail carrier cost accounting systems 
"(a) Within 180 days after the effective date of the Staggers Rail 
Ante, p. 1895. 
Act of 1980, each rail carrier providing transportation subject to the 
jurisdiction of the Interstate Commerce Commission under sub-
49 use 10501. 
chapter I of chapter 105 of this title shall file with the Commission a 
request for preliminary certification of its cost accounting system. 
The Commission shall grant such preliminary certification if it 
determines that the cost accounting system of such rail carrier is in 
compliance with the accounting standards of the Commission in 
effect on the day prior to the effective date of the Staggers Rail Act of 
1980. 
"(b)(1) As soon as practicable, but not later than 9 months, after the 
promulgation of rules by the Commission under section 11163 of this 
title, each rail carrier described in subsection (a) of this section shall 
file with the Commission a request for final certification of its cost 
accounting system developed to comply with this section. 
Cost information 
disclosure. 
Rules. 
49 use 11163. 
Review. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1937 
"(2) Within 90 days, or such additional time as the Commission 
finds necessary, after a rail carrier files its request for final certifica-
tion under paragraph (1) of this subsection, the Commission shall 
grant such final certification to such carrier if the Commission 
determines that the cost accounting system of such carrier is in 
compliance with the rules promulgated by the Commission under 
section 11163 of this title. If the Commission denies such final 
certification, the rail carrier shall revise its cost accounting system 
and file a new request for certification within 90 days after the date of 
such denial. The Commission shall thereupon grant final certifica-
tion if it determines that such cost accounting system, as revised, is in 
compliance with such rules. If the Commission again denies final 
certification to the rail carrier, the Commission shall prescribe a cost 
accounting system which such carrier shall adopt within a reasonable 
time and which shall be considered a finally certified cost accounting 
system for purposes of this section. 
"(c) Each rail carrier shall have and maintain a cost accounting 
system that is in compliance with the rules promulgated by the 
Commission under section 11163 of this title. 
"(d)(1) Certification under this section that the cost accounting 
system of a rail carrier is in compliance with the rules promulgated 
by the Commission under section 11163 of this title shall be valid 
until the promulgation of new rules by the Commission. 
"(2) After the cost accounting system of a rail carrier is certified 
under this section, such rail carrier may, after notifying the Commis-
sion, make modifications in such system unless, within 60 days after 
the date of notification, the Commission finds such modifications to 
be inconsistent with the rules promulgated by the Commission under 
section 11163 of this title. 
"(e) For purposes of determining whether the cost accounting 
system of a rail carrier is in compliance with the rules promulgated 
by the Commission, the Commission shall have the right to examine 
and make copies of any documents, papers, or records of such rail 
carrier relating to compliance with such rules. Such documents, 
papers, and records (and any copies thereof) shall not be subject to the 
mandatory disclosure requirements of section 552 of title 5. 
"§11165. Cost availability 
"As required by the rules of the Interstate Commerce Commission 
governing discovery in Commission proceedings, rail carriers shall 
make relevant cost data available to shippers. States, ports, commu-
nities, and other interested parties that are a party to a Commission 
proceeding in which such data is required. 
"§ 11166. Accounting and cost reporting 
"(a) To obtain expense and revenue information for regulatory 
purposes, the Interstate Commerce Commission may promulgate 
reasonable rules for rail carriers providing transportation subject to 
the jurisdiction of the Commission under subchapter I of chapter 105 
of this title, prescribing expense and revenue accounting and report- 49 USC 10501 
ing requirements consistent with generally accepted accounting 
principles uniformly applied to such carriers. Such requirements 
shall be cost effective and compatible with and not duplicative of the 
managerial and responsibility accounting requirements of those 
carriers. To the extent such rules are required solely to provide 
expense and revenue information necessary for determining railroad 
costs in regulatory proceedings pursuant to this title, such rules shall 
be promulgated in accordance with the cost accounting principles 
Cost accounting 
systems, 
modification. 
Compliance 
determination. 
49 USC 11165. 
Rules. 
49 USC 11166. 
94 STAT. 1938 
PUBLIC LAW 96-448—OCT. 14, 1980 
Reports. 
Submittal to 
Congress. 
49 u s e 11167. 
Ante, p. 1895. 
49 u s e 10709. 
49 u s e 11168. 
established by the Railroad Accounting Principles Board under 
section 11162 of 
this title. 
"(b) Any reports required by the rules established by the Commis-
sion under this section shall include only information considered 
necessary for disclosure under the cost accounting principles estab-
lished by the Board or under generally accepted accounting princi-
ples or the requirements of the Securities and Exchange Commission. 
"§11167. Report 
"The Railroad Accounting Principles Board shall, within 2 years 
after the effective date of the Staggers Rail Act of 1980, submit to the 
Congress a report setting forth any recommendations of the Board for 
appropriate legislative or administrative action in order to integrate 
the cost accounting principles and the cost accounting system certifi-
cation process under this subchapter into existing rail carrier rate 
regulation under this title, including determinations under section 
10709 of this title. 
"§11168. Authorization of appropriations 
"There are authorized to be appropriated to carry out the provi-
sions of this subchapter not to exceed $1,000,000 for the fiscal year 
ending September 30,1981, not to exceed $1,000,000 for the fiscal year 
ending September 30,1982, and not to exceed $1,000,000 for the fiscal 
year ending September 30,1983.". 
Qy) The analysis of chapter 111 of title 49, United States Code, is 
amended by adding at the end thereof the following: 
"SUBCHAPTER IV—RAILROAD COST ACCOUNTING 
"11161. Railroad Accounting Principles Board. 
"11162. Cost accounting principles. 
"11163. Implementation of cost accounting principles. 
"11164. Certification of rail carrier cost accounting systems. 
"11165. Cost avaUabUity. 
"11166. Accounting and cost reporting. 
"11167. Report. 
"11168. Authorization of appropriations.". 
CIVIL PENALTIES FOR VIOLATIONS OF ACCOUNTING PRINCIPLES 
PROVISIONS 
SEC. 303. (a)(1) Chapter 119 of title 49, United States Code, is 
amended by inserting immediately after section 11913 the following 
new section: 
49 use 11913a. "§ 11913a. Accounting principles violations 
"Any rail carrier providing transportation subject to the jurisdic-
tion of the Interstate Commerce Commission under subchapter I of 
chapter 105 of this title that fails to obtain final certification of its 
cost accounting system under section 11164(b) of this title shall be 
fined not less than $50,000.". 
(2) The section analysis of chapter 119 of title 49, United States 
Code, is amended by inserting immediately after the item relating to 
section 11913 the following new item: 
"11913a. Accounting principles violations.". 
(b) Section 11910 of title 49, United States Code, is amended by 
adding at the end thereof the following new subsection: 
"(d) A person that knowingly discloses confidential data made 
available to such person under section 11165 of this title by a rail 
carrier providing transportation subject to the jurisdiction of the 
49 u s e 10501. 
Ante, p. 1936. 
Confidential 
data, disclosure. 
Ante, p. 1937. 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1939 
Commission under subchapter I of chapter 105 of this title shall be 49 use 10501. 
fined not more than $50,000.". 
TITLE IV—RAILROAD MODERNIZATION ASSISTANCE 
Ante, p. 1895. 
Railroad lines, 
sale. 
49 u s e 10903. 
FEEDER RAILROAD DEVELOPMENT PROGRAM 
SEC. 401. (a) Subchapter I of chapter 109 of title 49, United States 
Code, is amended by adding at the end thereof the following new 
section: 
"§ 10910. Railroad development 
49 use 10910. 
"(a) In this section— 
Definitions. 
"(1) 'financially responsible person' means a person who (A) is 
capable of pajdng the constitutional minimum value of the 
railroad line proposed to be acquired, and (B) is able to assure 
that adequate transportation will be provided over such line for a 
period of not less than 3 years. Such term includes a government 
authority but does not include a class I or a class II rail carrier. 
"(2) 'railroad line' means (A) during the 3-year period begin-
ning on the effective date of the Staggers Rail Act of 1980, a line 
of railroad which carried less than 3,000,000 gross ton miles of 
traffic per mile in the preceding calendar year, and (B) after the 
end of such 3-year period, any line of railroad. 
"(b)(1) When the Interstate Commerce Commission finds that— 
"(A)(i) the public convenience and necessity require or permit 
the sale of a particular railroad line under this section; or 
"(ii) a railroad line has been placed on a system diagram map 
as required under section 10904 of this title, but the rail carrier 49 USe 10904 
owning such line has not filed an application to abandon such 
line under sections 10903 and 10904 of this title; and 
"(B) an application to purchase such line has been filed, in 
accordance with regulations required under subsection (k) of this 
section, by a financially responsible person, 
the Commission shall require the rail carrier owning the railroad line 
to sell such line to such financially responsible person at a price not 
less than the constitutional minimum value. 
"(2) For purposes of this subsection, the constitutional minimum 
value of a particular railroad line shall be presumed to be not less 
than the net liquidation value of such line or the going concern value 
of such line, whichever is greater, but shall not include the cost of 
providing a protective arrangement under subsection (j) of this 
section. 
"(c)(1) For purposes of this section, the Commission may determine 
that the public convenience and necessity require or permit the sale 
of a railroad line if the Commission determines, after a hearing on 
the record, that— 
"(A) the rail carrier operating such line refuses within a 
reasonable time to make the necessary efforts to provide ade-
quate service to shippers who transport traffic over such line; 
"(B) the transportation over such line is inadequate for the 
majority of shippers who transport traffic over such line; 
"(C) the sale of such line will not have a significantly adverse 
financial effect on the rail carrier operating such line; 
"(D) the sale of such line will not have an adverse effect on the 
overall operational performance of the rail carrier operating 
such line; and 
94 STAT. 1940 
PUBLIC LAW 96-448—OCT. 14, 1980 
Publication in 
Federal 
Register. 
Trackage rights. 
Joint rates. 
49 use 10705. 
Exemptions. 
49 use 10701 et 
seq. 
Ante, p. 1895. 
Preconditions 
for shippers. 
Employee 
interests, 
protection. 
"(E) the sale of such line will be likely to result in improved 
railroad transportation for shippers that transport traffic over 
such line. 
"(2) In a proceeding under this subsection, the burden of proving 
that the public convenience and necessity require or permit the sale 
of a particular railroad line is on the person filing the application to 
acquire such line. If the Commission finds under this subsection that 
the public convenience and necessity require or permit the sale of a 
particular railroad line, the Commission shall concurrently notify 
the parties of such finding and publish such finding in the Federal 
Register. 
"(d) In the case of any railroad line subject to sale under subsection 
(a) of this section, the Commission shall, upon the request of the 
acquiring carrier, require the selling carrier to provide to the acquir-
ing carrier trackage rights to allow a reasonable interchange with the 
selling carrier or to move power equipment or empty rolling stock 
between noncontiguous feeder lines operated by the acquiring 
carrier. The Commission shall require the acquiring carrier to 
provide the selling carrier reasonable compensation for any such 
trackage rights. 
"(e) The Commission shall require, to the meiximum extent practi-
cable, the use of the employees who would normally have performed 
work in connection with a railroad line subject to a sale under this 
section. 
"(f) In the case of a railroad line which carried less than 3,000,000 
gross ton miles of traffic per mile in the preceding calendar year, 
whenever a purchasing carrier under this section petitions the 
Commission for joint rates applicable to traffic moving over through 
routes in which the purchasing carrier may practicably participate, 
the Commission shall, within 30 days after the date such petition is 
filed and pursuant to section 10705(a) of this title, require the 
establishment of reasonable joint rates and divisions over such route. 
"(g)(1) Any person operating a railroad line acquired under this 
section may elect to be exempt from any of the provisions of this title, 
except that such a person may not be exempt from the provisions of 
chapter 107 of this title with respect to transportation under a joint 
rate. 
"(2) The provisions of paragraph (1) of this subsection shall apply to 
any line of railroad which was abandoned during the 18-month period 
immediately prior to the effective date of the Staggers Rail Act of 
1980 and was subsequently purchased by a financially responsible 
person. 
"(h) If a purchasing carrier under this section proposes to sell or 
abandon all or any portion of a purchased railroad line, such 
purchasing carrier shall offer the right of first refusal with respect to 
such line or portion thereof to the carrier which sold such line under 
this section. Such offer shall be made at a price equal to the sum of 
the price paid by such purchasing carrier to such selling carrier for 
such line or portion thereof and the fair market value (less deteriora-
tion) of any improvements made, as adjusted to reflect inflation. 
"(i) Any person operating a railroad line acquired under this 
section may determine preconditions, such as payment of a subsidy, 
which must be met by shippers in order to obtain service over such 
lines, but such operator must notify the shippers on the line of its 
intention to impose such preconditions. 
"(j) In the case of any railroad line sold pursuant to this section, the 
Commission shall require the selling carrier to provide a fair arrange-
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1941 
ment at least as protective of the interests of employees as that 
established under section 11347 of this title. 
"(k) The Commission shall, within 60 days after the effective date of 
the Staggers Rail Act of 1980, prescribe such regulations and proce-
dures as may be necessary to carry out the provisions of this section.", 
O
t
)
) The section analysis of chapter 109 of title 49, United States 
Code, is amended by adding immediately after the item relating to 
section 10909 the following new item: 
"10910. Railroad development.". 
49 u s e 11347. 
Regulations and 
procedures. 
Ante, p. 1895. 
ABANDONMENT 
SEC. 402. (a)(1) Section 10903(b)(1) of title 49, United States Code, is 
amended by striking out the first sentence. 
(2) Section 10903(c) of title 49, United States Code, is repealed. 
(b)(1) Section 10904(a) of title 49, United States Code, is amended— 
(A) by striking out "at least 60" and all that follows through 
"effective" in paragraph (1); 
(B) by striking out "and" at the end of paragraph (2)(A); 
(C) by striking out the period at the end of paragraph (2)(B) and 
inserting in lieu thereof , and"; 
(D) by adding at the end of paragraph (2) the following new 
subparagraph: 
"(C)(i) a statement that the line is available for subsidy or sale 
in accordance with section 10905 of this title, (ii) a statement that Post, p. 1942. 
the carrier will promptly provide to each interested party an 
estimate of the subsidy and minimum purchase price required to 
keep the line in operation, calculated in accordance with section 
10905 of this title, and (iii) the name and business address of the 
person who is authorized to discuss sale or subsidy terms for the 
carrier."; and 
(E) by inserting immediately before the period at the end of 
paragraph (3XE) the following: ", and certifying that clauses 
(A)-(D) have been satisfied within the most recent 30 days prior 
to the date the application is filed". 
(2) Section 10904(b) of title 49, United States Code, is amended to 
read as follows: 
"(b) If no protest is received within 30 days after the application is 
filed, the Commission shall find that the public convenience and 
necessity require or permit the abandonment or discontinuance. In Certificate. 
such a case, the Commission shall, within 45 days after the applica-
tion is filed, issue a certificate which permits the abandonment or 
discontinuance to occur within 75 days after the application is filed.". 
(3) Section 10904(c) of title 49, United States Code, is amended to Protests. 
read as follows: 
"(c)(1) If a protest is received within 30 days after the application is 
filed, the Commission shall, within 45 days after the application is 
filed, determine whether an investigation is needed to assist in 
determining what disposition to make of the application. 
"(2) If the Commission decides that no investigation is to be 
undertaken, the Commission shall, within 75 days after the applica-
tion is filed, decide whether the present or future public convenience 
and necessity require or permit the abandonment or discontinuance, 
taking into consideration the application of the rail carrier and any 
materials submitted by protestants. If the Commission finds that the Certificate. 
present or future public convenience and necessity require or permit 
the abandonment, it shall, within 90 days after the date of applica-
94 STAT. 1942 
PUBLIC LAW 96-448—OCT. 14, 1980 
tion, issue a certificate which permits the abandonment or discon-
tinuance to occur within 120 days after the application is filed. 
Investigation. 
"(3) If the Commission decides that an investigation should be 
undertaken under this section, the investigation must be completed 
within 135 days, and an initial decision must be rendered within 165 
days, after the date the application is filed. Thirty days after such 
decision, the initial decision shall become the final decision of the 
Commission unless, during the interim, the Commission decides to 
hear appeals. If an initial decision is appealed and considered by the 
Commission, the Commission shall issue a final decision within 255 
days after the date of application. Whenever the Commission decides 
upon investigation that the present or future public convenience and 
necessity require or permit the abandonment or discontinuance of 
rail service, it shall, within 15 days of the final decision, issue a 
certificate which permits the abandonment or discontinuance to 
occur within 75 days of the date of the final decision. 
"(4) The effective date of any certificate which permits abandon-
ment or discontinuance may be stayed by the Commission pursuant 
Infra. 
to the provisions of section 10905 of this title.". 
(4) Section 10904 of title 49, United States Code, is amended by 
redesignating subsection (d) as subsection (e), and by inserting imme-
diately after subsection (c) the following new subsection: 
"(d)(1) The burden is on the person applying for the certificate to 
prove that the present or future public convenience and necessity 
require or permit the abandonment or discontinuance. 
"(2) For applications approved by the Secretary of Transportation 
as part of a plan or proposal under section 5(a)-(d) of the Department 
of Transportation Act (49 U.S.C. 1654(a)-(d)), the Commission shall 
consider whether any detriment from the abandonment or discon-
tinuance exceeds the transportation benefit from the plan or proposal 
as a whole.". 
Waiver. 
(5) Section 10904(e) of title 49, United States Code, as redesignated 
by paragraph (4) of this subsection, is amended by inserting immedi-
ately before the period at the end thereof the following: ", except that 
the requirement of such description or identification in such diagram 
may be waived by the Commission if the application was approved by 
the Secretary of Transportation as part of a plan or proposal under 
section 5(a)-(d) of the Department of Transportation Act (49 U.S.C. 
1654(a)-(d)), or the application is filed by a railroad in bankruptcy". 
(c) Section 10905 of title 49, United States Code, is amended to read 
as follows: 
49 use 10905. 
"§ 10905. Offers of flnancial assistance to avoid abandonment and 
discontinuance 
Definitions. 
"(a) In this section— 
"(1) 'avoidable cost' means all expenses that would be incurred 
by a rail carrier in providing transportation that would not be 
incurred if the railroad line over which the transportation was 
provided were abandoned or if the transportation were discontin-
ued. Expenses include cash inflows foregone and cash outflows 
incurred by the rail carrier as a result of not abandoning or 
discontinuing the transportation. Cash inflows foregone and cash 
outflows incurred include— 
"(A) working capital and required capital expenditure; 
"(B) expenditures to eliminate deferred maintenance; 
"(C) the current cost of freight cars, locomotives, and other 
equipment; and 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1943 
"(D) the foregone tax benefits from not retiring properties 
from rail service and other effects of applicable Federal and 
State income taxes. 
"(2) 'reasonable return' means— 
"(A) if a rail carrier is not in reorganization, the cost of 
capital to the rail carrier, as determined by the Interstate 
Commerce Commission; and 
"(B) if a rail carrier is in reorganization, the mean cost of 
capital of rail carriers not in reorganization, as determined 
by the Commission. 
"(b) Any rail carrier which has filed an application for a certificate 
of abandonment or discontinuance shall provide promptly to a party 
considering an offer of financial assistance and shall provide concur-
rently to the Commission— 
"(1) an estimate of the annual subsidy and minimum purchase 
price required to keep the line or a portion of the line in 
operation; 
"(2) its most recent reports on the physical condition of that 
part of the railroad line involved in the proposed abandonment 
or discontinuance; 
"(3) traffic, revenue, and other data necessary to determine the 
amount of annual financial assistance which would be required 
to continue rail transportation over that part of the rsdlroad line; 
and 
"(4) any other information that the Commission may deem 
necessary to allow a potential offeror to calculate an adequate 
subsidy or purchase offer. 
"(c) When the Commission finds under section 10903 of this title 
that the public convenience and necessity require or permit abandon-
ment or discontinuance of a particular railroad line, it shall, concur-
rently with service of the decision upon the parties, publish the 
finding in the Federal Register. Within 10 days following the publica-
tion, any person may offer to pay the carrier a subsidy or offer to 
purchase the line. Such offer shall be filed concurrently with the 
Commission. If the offer to subsidize or purchase the line is less than 
the carrier's estimate provided under subsection (b)(1) of this section, 
the offer shall explain the basis of the disparity, and the manner in 
which the offer of subsidy or purchase is calculated. 
"(d) If, within 15 days after the publication required in subsection 
(c) of this section, the Commission finds that— 
"(1) a financially responsible person (including a government 
authority) has offered financial assistance to enable the rail 
transportation to be continued over that part of the railroad line 
to be abandoned or over which all rail transportation is to be 
discontinued; and 
"(2) it is likely that the assistance would be equal to— 
"(A) the difference between the revenues attributable to 
that part of the railroad line and the avoidable cost of 
providing rail freight transportation on the line, plus a 
reasonable return on the value of the line; or 
"(B) the acquisition cost of that part of the railroad line; 
the Commission shall postpone the issuance of a certificate authoriz-
ing abandonment or discontinuance in accordance with subsections 
(e) and (f) of this section. 
"(e) If the carrier and a person offering financial assistance enter 
into an agreement which will provide continued rail service, the 
Commission shall postpone the issuance of the certificate for so long 
as the agreement, or an extension or modification of the agreement. 
Publication in 
Federal 
Register. 
49 u s e 10903. 
Subsidy or 
purchase offer. 
Abandonment or 
discontinuance, 
postponement. 
94 STAT. 1944 
PUBLIC LAW 96-448—OCT. 14, 1980 
Subsidy or 
purchase terms, 
establishment. 
Service 
discontinuance 
or transfer, 
prohibition. 
Subsidy 
discontinuance. 
is in effect. If the carrier and a person offering to purchase a line 
enter into an agreement which will provide continued rail service, 
the Commission shall approve the transaction and dismiss the appli-
cation for abandonment or discontinuance. If the carrier and a 
financially responsible person (including a government authority) 
fail to agree on the amount or terms of the subsidy or purchase, either 
party may, within 30 days after the offer is made, request that the 
Commission establish the conditions and amount of compensation. If 
no agreement is reached within 30 days after the offer is made and 
neither party requests that the Commission establish the conditions 
and amount of compensation during that same period, the Commis-
sion shall immediately issue a certificate authorizing the abandon-
ment or discontinuance, 
"(f)(1) Whenever the Commission is requested to establish the 
conditions and amount of compensation under this section— 
"(A) the Commission shall render its decision within 60 days; 
"(B) where subsidy has been offered, the Commission shall 
determine the amount and terms of subsidy based on the avoid-
able cost of providing continued rail transportation, plus a 
reasonable return on the value of the line; and 
"(C) where an offer of purchase has been made in order to 
continue rail service on the line, the Commission shall determine 
the price and other terms of sale. In no case shall the Commission 
set a price which is below the fair market value of the line 
(including, unless otherwise mutually agreed, all facilities on the 
line or portion necessary to provide effective transportation 
services). 
"(2) The decision of the Commission shall be binding on both 
parties, except that the person who has offered to subsidize or 
purchase the line may withdraw his offer within 10 days of the 
Commission's decision. In such a case, the Commission shall immedi-
ately issue a certificate authorizing the abandonment or discontinu-
ance, unless other offers are being considered pursuant to paragraph 
(3) of this subsection. 
"(3) If a carrier receives more than one offer to purchase or 
subsidize, it shall select the offeror with whom it wishes to transact 
business, and complete the sale or subsidy agreement, or request that 
the Commission establish the conditions and amount of compensation 
prior to the 40th day after the date on which notice was published 
under subsection (c) of this section. If no agreement on subsidy or sale 
is reached within the 40-day period and the Commission has not been 
requested to establish the conditions and amount of compensation, 
any other offeror may request that the Commission establish the 
conditions and amount of compensation. If the Commission has 
established the conditions and amount of compensation and the 
original offer has been withdrawn, any other offeror may accept the 
Commission's decision within 20 days of such decision, and the 
Commission shall require the carrier to enter into a sale or subsidy 
agreement with such offeror, if such sale or agreement incorporates 
the Commission's decision. 
"(4) No purchaser of a line or portion of line sold under this section 
may transfer or discontinue service on such line prior to the end of 
the second year after consummation of the sale, nor may such 
purchaser transfer such line, except to the carrier from whom it was 
purchased, prior to the end of the fifth year after consummation of 
the sale. 
"(5) Any subsidy provided under this section may be discontinued 
on notice of 60 days. Unless, within such 60-day period, another 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1945 
financially responsible party enters into a subsidy agreement at least 
as beneficial to the carrier as that which was or was to be discontin-
ued, the Commission shall, at the carrier's request, immediately issue 
a certificate authorizing the abandonment or discontinuance of 
service on the line.". 
CONVERSION OF ABANDONED RAILROAD RIGHTS-OF-WAY 
SEC. 403. Section 809(d) of the Railroad Revitalization and Regula-
tory Reform Act of 1976 is amended— 
(1) by inserting "(1)" immediately before the first sentence 
thereof; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) There are authorized to be appropriated, for the purposes of 
carrjdng out the provisions of subsection (bX2) of this section, not to 
exceed an aggregate amount of $10,000,000 for the fiscal years 1981, 
1982, and 1983. Such sums are authorized to remain available until 
expended. Notwithstsmding the provisions of subsection (b)(2) of this 
section, the Federal share for each grant made from the funds 
authorized to be appropriated pursuant to this paragraph may not 
exceed 80 percent of the total cost of any project.". 
49 u s e 10906 
note. 
Appropriation 
authorization. 
EXTENSION OF REDEEMABLE PREFERENCE SHARE FINANCING 
SEC. 404. Sections 505(e), 507(a), 507(d), and 509 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825(e), 
827(a), 827(d), and 829) are each amended by striking out "September 
30,1980" wherever it appears and inserting in lieu thereof Septem-
ber 30,1982" in each such place. 
FINANCING 
SEC. 405. (aXl) Section 505(dX3) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 825(dX3)) is amended by Post, p. 1947. 
striking 
out 
"$700,000,000" 
and 
mserting 
in 
lieu 
thereof 
"$1,400,000,000". 
(2) Sections 507(a) and 509 of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 827(a) and 829) are each 
amended by striking out "$600,000,000" and inserting in lieu thereof 
"$1,400,000,000". 
(bXD Section 509 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 829) is amended by inserting "(a)^' 
immediately after "SEC. 509." and by adding at the end thereof the 
following new subsection: 
"(bXD Not more than $200,000,000 of the funds received by the Funds transfer. 
Secretary of Transportation from amounts appropriated under sub-
section (a) of this section shall be transferred by the Secretary to the 
United States Railway Association for use by the Association in 
accordance with section 216(bX3) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 726(b)(3)). Such funds shall be transferred Post, p. 1946. 
immediately upon the finding by the Finance Committee under such 
section 216(bX3). 
"(2) Not less than 5 percent of the funds received by the Secretary 
of Transportation from amounts appropriated under subsection (a) 
(excluding funds transferred under paragraph (1) of this subsection) 
shall be available for the purchase or rehabilitation of railroad lines 
acquired under section 10910 of title 49, United States Code, except Ante, p. 1939. 
that no such funds shall be available for the purchase or rehabilita-
Purchase or 
rehabilitation. 
94 STAT. 1946 
PUBLIC LAW 96-448—OCT. 14, 1980 
49 u s e 1654. 
Appropriation 
authorization. 
Work force 
reduction. 
Ante, p. 1945. 
45 u s e 231t. 
Financial 
assistance. 
45 u s e 825. 
Ante, p. 1939. 
Ante, p. 1945. 
Ante, p. 1945. 
tion of such a railroad line unless such purchase or rehabilitation is 
consistent with the rail plan (as defined under section 5 of the 
Department of Transportation Act) of the State in which such line is 
located. 
"(3) Of the funds authorized to be appropriated under this section 
(other than funds described in paragraphs (1) and (2) of this subsec-
tion) not more than $180,000,000 are authorized to be appropriated in 
fiscal year 1981.". 
(2) Section 216(b) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 726(b)) is amended by adding at the end thereof the 
following new paragraph: 
"(3)(A) Amounts transferred to the Association pursuant to section 
5090t))(l) of the Railroad Revitalization and Regulatory Reform Act of 
1976 may be used to purchase series A preferred stock of the 
Corporation to provide for the implementation by the Corporation of 
a program to reduce the Corporation's work force, if the Finance 
Committee finds that the implementation of such program will result 
in substantial savings to the United States. 
"(B) An employee who ceases to be an employee £is a result of the 
reduction of work force under a program implemented pursuant to 
this paragraph shall not, by reason of so ceasing to be an employee, or 
by reason of any work or employment entered into after so ceasing to 
be an employee, lose such employee's current connection with the 
railroad industry for the purposes of the Railroad Retirement Act of 
1974.". 
(c)(1) Section 505(a) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 725(a)) is amended— 
(A) by inserting "(1)" immediately before "Any railroad"; and 
(B) by adding at the end thereof the following new paragraphs: 
"(2) An employee or employee-shipper group may apply to the 
Secretary for financial assistance pursuant to subsection (b)(3) of this 
section. 
"(3) A financially responsible person (as defined in section 
10910(a)(1) of title 49, United States Code) may apply to the Secretary 
for financial assistance from funds made available pursuant to 
section 509(b)(2) of this title.". 
(2) Section 505(b) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 825(b)) is amended by adding at the end 
thereof the following new paragraph: 
"(3) The Secretary may approve applications to provide financial 
assistance to any employee or employee-shipper ownership group 
formed pursuant to a plan for the purchase or rehabilitation of a line 
or lines of railroad or of rail facilities which are considered to be in 
the public interest. The Secretary shall not use more than 20 percent 
of the total funds available under this section for such financial 
assistance. In considering the allocation of available funds and 
priority of eligible projects under this subsection, the Secretary shall 
consider the availability of viable alternatives to the ownership or 
rehabilitation by the eligible employee-shipper group for the continu-
ation of rail service. Projects with no such alternative shall receive 
highest priority.". 
(3) Sections 506 through 509 of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 826 through 829) are 
amended by— 
(A) inserting "employee or employer-shipper group" immedi-
ately after "railroad wherever it appears; 
(B) inserting "employee or employee-shipper groups" immedi-
ately after "railroads" wherever it appears; and 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1947 
(C) inserting "employee or employee-shipper group's" immedi-
ately after "railroad's" wherever it appears. 
(4) Section 505(d) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 825(d)) is amended by redesignating Ante, p. 1945. 
paragraph (3) as paragraph (4) and by inserting after paragraph (2) 
the following new paragraph: 
"(3) In the case of a Government authority that applies for financial 
assistance from funds made available pursuant to section 509(b)(2) for Ante, p. 1945. 
the purchase or rehabilitation of railroad lines purchased under 
section 10910 of title 49, United States Code, financing pursuant to ^"^e- P 1939. 
this section shall be in the form of purchase by the Secretary of bonds 
or other debt obligations issued for such purpose by such Government 
authority.". 
(5) Paragraph (4) of section 505(d) of the Railroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 725(d)), as redesignated by 45 use 825. 
this subsection, is amended by inserting ", bonds, and other debt 
obligations" immediately after "trustee certificates". 
(d) Section 501 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 821), as amended, is further amended 
b y -
(1) striking out "and" at the end of paragraph (7); 
(2) inserting "acquisition or sale of assets or securities," imme-
diately after "merger," in paragraph (8); 
(3) striking out the period at the end of paragraph (8) and 
inserting in lieu thereof a semicolon; and 
(4) adding at the end thereof the following new paragraphs: Definitions. 
"(9) 'consolidation' means the combination of separate rail 
facilities and the abandonment of the excess facilities, except 
that such term does not include the combination by a single 
railroad of multiple tracks into fewer tracks where the tracks do 
not constitute separate physical and operating lines of railroad; 
and 
"(10) 'coordination' means the combination of rail freight 
traffic flows through the use of joint facilities arrangements or 
internally that result in a reduction of service on at least one 
facility and includes arrangements for joint use of tracks or other 
facilities and the acquisition or sale of assets.". 
(e) The first sentence of section 511(a) of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 831(a)) is amended by 
inserting immediately after "equipment" the following: "(which 
includes but is not limited to computerized car management 
systems)". 
TRANSACTION ASSISTANCE 
SEC. 406. Section 505(h) of the Railroad Revitalization and Regula-
tory Reform Act of 1976 (45 U.S.C. 825(h)) is amended by adding at the 
end thereof the following new paragraphs: 
"(5) Financial assistance made available under paragraph (1)(B) of 
this subsection may be used to purchase, for purposes of rail banking, 
properties of the Milwaukee Railroad located in the State of Montana 
with respect to which an interest in future rail common carrier 
operations has been evidenced. 
"(6) Applications for rail banking shall be treated equally with 
other applications for transaction assistance." 
94 STAT. 1948 
PUBLIC LAW 96-448—OCT. 14, 1980 
ELECTRIFICATION LOAN GUARANTEES 
SEC. 407. Section 211(i) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721(i)) is amended— 
(1) by inserting "or any other railroad" immediately after "the 
Corporation" the first place it appears; 
(2) by inserting "or such railroad" immediately after "the 
Corporation" the second and third places it appears; and 
(3) by inserting immediately after the first sentence the follow-
ing new sentences: "Upon application by the Corporation or by 
any railroad in reorganization in the region which receives a 
loan under section 211(a) of this Act, the Secretary shall, pursu-
ant to the provisions of and within the obligational limitations 
45 use 831-833. 
contained in sections 511 through 513 of such Act, guarantee 
obligations of the Corporation or such railroad for purposes of 
making capital improvements to coal export facilities.". 
AMENDMENT TO THE REGIONAL RAIL REORGANIZATION ACT OF 1973 
SEC. 408. (a) The second sentence of section 211(d) of the Regional 
Rail Reorganization Act of 1973 (45 U.S.C. 721(d)) is amended by 
inserting "is not required to make the findings with respect to 
subsections (e)(3) and (f) and" immediately after "the Association" 
the first place it appears. 
(b) Section 211(d)(2) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 721(d)(2)) is amended by striking out "$4,000,000" and 
inserting in lieu thereof "$7,500,000". 
(c) The last sentence of section 211(d) of the Regional Rail Reorgani-
zation Act of 1973 (45 U.S.C. 721(d)) is amended by striking out "1980" 
and inserting in lieu thereof "1981". 
FEDERAL ASSISTANCE REPORT 
Submittal to 
SEC. 409. Within 90 days after the end of each fiscal year, the 
49'ifsr^ifi'i4 
Secretary of Transportation shall submit a report to the Congress 
listing the specific Federal assistance provided the railroad industry 
during such fiscal year. Each such report shall set forth the reasons 
for each Federal loan or grant and explain the way in which such 
loan or grant contributed to the overall goal of providing a safe and 
efficient transportation system. 
TITLE V—CONRAIL TITLE V LABOR PROTECTION 
MONTHLY DISPLACEMENT ALLOWANCE 
Pay rate. 
SEC. 501. Section 505(b) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 7750))) is amended to read as follows: 
"(b) MONTHLY DISPLACEMENT ALLOWANCE.—A protected employee 
shall be paid a monthly displacement allowance for any calendar 
month within the period identified in subsection (c) of this section in 
which the employee is deprived of employment or adversely affected 
with respect to such employee's compensation, in accordance with the 
following provisions: 
"(1)(A) Effective on the effective date of the Staggers Rail Act 
Ante, p. 1895. 
of 1980, the protected rate of pay of a protected nonoperating 
employee (other than a maintenance-of-way employee) who has 
been deprived of employment or adversely affected with respect 
to such employee's compensation shall be based on the rate of 
pay of the position held by the employee on September 1,1979, or 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1949 
if the employee held no position on that date, the rate of pay of 
the last position held by the employee prior to that date. A 
guaranteed hourly rate of pay will be computed for each 
protected employee, based on the rate described in the preceding 
sentence, and will be (i) the actual hourly rate for hourly rated 
employees, (ii) the daily rate divided by 8 for daily rated employ-
ees, and (iii) the monthly rate divided by the working days in the 
claim month, further divided by 8, in the case of monthly rated 
employees. For employees occupying relief positions, the guaran-
tee shall be computed on the basis of the weighted average daily 
rate of the positions relieved. Extra list employees will be 
guaranteed the extra list rate. 
"(B) In the event a protected employee's position is abolished or 
such employee is displaced and is thereby required to occupy a 
position paying an hourly rate that is less than such employee's 
guaranteed hourly rate, the protected employee shall be paid the 
difference between the hourly rate of pay of the position such 
employee is occupying and his guaranteed hourly rate for all 
hours included in the straight time work schedule of such 
employee's position for the month of claim, less any time lost on 
account of voluntary absences other than vacations. Hours 
worked in excess of the straight time work schedule shall be paid 
in addition to the guarantee at the rate applicable to the position 
occupied, as provided for in the applicable collective bargaining 
agreement. 
"(C) For any month or portion thereof in which a protected 
employee is deprived of employment, the protected employee 
shall be paid such employee's guaranteed hourly rate for the 
number of hours such employee would have worked in the 
straight time work schedule of such employee's previously held 
position. 
"(D) Notwithstanding the provision that the protected rate 
shall be the rate of the position held on or immediately preceding 
September 1, 1979, if a protected employee becomes the perma-
nent incumbent of a higher rated position and is not disqualified 
therefrom, the higher rate shall become such employee's 
protected rate. 
"(2) Notwithstanding paragraph (1) of this subsection, effective 
on the effective date of the Staggers Rail Act of 1980, a protected Ante, p. 1895. 
maintenance-of-way employee shall be afforded his average 
monthly compensation, which is defined as the total compensa-
tion received by such employee during the 12 months immedi-
ately preceding January 1,1975, divided by his total time paid for 
during that period and multiplied by 174 or by his average 
monthly time paid for, whichever is less, and adjusted to reflect 
subsequent general wage increases. If a protected employee is 
deprived of employment or if the employee's straight-time com-
pensation in his current position is less in any month than the 
employee's average monthly compensation, the employee shall 
be paid the difference between his straight-time earnings, if any, 
and 80 percent of the average monthly compensation, less any 
time lost on account of voluntary absences other than vacations. 
If, at the close of the calendar year, the sum of the protected 
employee's annual straight-time compensation, monthly dis-
placement allowance payments and offsets applicable pursuant 
to this title is less than the employee's average monthly compen-
sation multiplied by 12, the employee shall receive an additional 
payment representing the difference. If in the previous calendar 
94 STAT. 1950 
PUBLIC LAW 96-448—OCT. 14, 1980 
year an employee has received displacement allowance pay-
ments in excess of his annual entitlement, the excess payments 
shall be recovered from any current or future entitlement to 
monetary benefits afforded by this title, exclusive of benefits 
45 use 775. 
afforded by section 505(g) of this title. 
"(3) Effective on the effective date of the Staggers Rail Act of 
Ante, p. 1895. 
1980 a protected operating employee (as defined in Interstate 
Commerce Commission classifications 107 through 128) who has 
been deprived of employment or adversely affected with respect 
to such employee's compensation shall be afforded his average 
monthly compensation computed in accordance with this subsec-
tion as in effect prior to such effective date, but subject to a 
maximum amount equal to one-twelfth of the average annual 
earnings of all employees in the Interstate Commerce Commis-
sion classification, computed by cumulating the employee earn-
ings reported to the Commission by the Corporation on a 
monthly basis for calendar year 1977 for the Interstate Com-
merce Commission classification of operating service in which 
such employee performed the preponderance of such employee's 
work in calendar year 1974, increased by applicable general wage 
increases. If the employee performed no operating service in 
1974, the Interstate Commerce Commission classification shall 
be determined by the preponderance of such employee's operat-
ing service in an immediately preceding calendar year. If the 
average monthly compensation of a protected 
operating 
employee exceeds the maximum amount described in the first 
sentence of this paragraph, the average monthly compensation 
of the employee will be reduced to such maximum amount for 
purposes of computing such employee's monthly displacement 
allowance, if any. If the average monthly compensation of a 
protected operating employee is less than such maximum 
amount, the average monthly compensation of the employee will 
be used to compute such employee's monthly displacement 
allowance, if any. If a protected employee is deprived of 
employment, or if the employee is adversely affected with 
respect to his compensation such that the compensation in such 
employee's current position is less in any month than the 
average monthly compensation of the employee or such maxi-
mum amount, whichever is less, the employee shall be paid 75 
per centum of the difference between such employee's earnings, 
if any, and the lesser figure, minus any time lost on account of 
voluntary absences other than vacations. If at the close of the 
calendar year the sum of the protected employee's annual 
earnings, monthly displacement allowance payments, and offsets 
applicable pursuant to this title is less than such employee's 
average monthly compensation subject to the maximum amount 
and multiplied by 12, the employee shall receive an additional 
payment representing the difference. In the computation of the 
annual payment, if during the calendar year an employee haj 
been force assigned to, or has been required to exercise seniority 
to, a position in an Interstate Commerce Commission classifica-
tion with a lesser maximum amount than the maximum amount 
applicable to such employee's 1974 Interstate Commerce Com-
mission classification, such employee shall be paid the difference 
without credit being taken for compensation earned by virtue of 
actual working hours in the calendar year in excess of the 
number of hours paid for in such employee's average monthly 
compensation multiplied by 12 or such employee's annual 1977 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1951 
maximum amount, whichever is less. An employee's compensa-
tion for purposes of this subsection shall not include savings 
sharing productivity payments received pursuant to paragraph 
(t) of the Crew Consist Agreement between the Corporation and 
the United Transportation Union dated September 8,1978. If, in 
the previous calendar year, an employee has received displace-
ment allowance payments in excess of such employee's annual 
entitlement, the excess pa5maents shall be recovered from any 
current or future entitlement to monetary benefits afforded by 
this title, exclusive of benefits afforded by subsection (g) of this 
section. 
"(4) Effective on the effective date of the Staggers Rail Act of 
1980, a protected noncontract employee who has been deprived of Ante, p. 1895. 
employment or adversely affected with respect to such em-
ployee's compensation shall retain his average monthly com-
pensation and monthly displacement allowance computed in 
accordance with this subsection as in effect prior to such effective 
date. In the event such noncontract employee exercises or has 
exercised seniority in a craft or class of operating employees, 
such employee's entitlement to a monthly displacement allow-
ance and fringe benefits, and such employee's eligibility for 
transfer, shall be the same as the entitlement and eligibility of 
other protected employees in the craft or class in which seniority 
is exercised. In the event such noncontract employee exercises or 
has exercised seniority in a craft or class of nonoperating 
employees, the entitlement of such employee to a monthly 
displacement allowance and fringe benefits, and such employee s 
eligibility for transfer, shall be consistent with the entitlement 
and eligibility of other protected employees in the craft or class 
in which seniority is exercised, except that the protected rate of 
pay shall be based on the rate of pay of the position first obtained 
through the exercise of seniority, rather than the rate of any 
position held on or prior to September 1,1979. 
"(5) Notwithstanding the preceding provisions of this subsec-
tion, employees who, prior to September 1,1979, accepted trans-
fer to positions requiring a change of residence pursuant to 
subsection (d) of this section, shall retain their average monthly 
compensation and monthly displacement allowance computed in 
accordance with this subsection prior to the effective date of the 
Staggers Rail Act of 1980. 
"(6) In determining compensation in a protected employee's 
current employment, such employee shall be treated as occupy-
ing the position producing the highest rate of pay to which such 
employee's qualifications and seniority entitle the employee 
under the applicable collective bargaining agreement and which 
does not require a change in residence. A protected operating 
employee will be considered to be occupying the position produc-
ing the highest rate of pay if the employee occupies a position 
producing compensation equal to such employee's average 
monthly compensation, subject to the maximum amount. 
"(7) With respect to a protected employee who has been 
deprived of employment, the monthly displacement allowance 
shall be reduced by (A) the full amount of any unemployment 
compensation benefits received by such employee, and (B) an 
amount equivalent to any outside earnings of such employee. 
"(8) A protected employee's average monthly compensation or 
protected rate of pay shall be adjusted from time to time 
thereafter to reflect subsequent general wage increases. 
79-194 O—81—pt. 2 
43 : QL3 
94 STAT. 1952 
PUBLIC LAW 96-448—OCT. 14, 1980 
"(9) The average monthly compensation or protected rate of 
pay provided by this section shall in no event exceed $2,500 in 
any month, except that such amount shall be adjusted to reflect 
general wage increases subsequent to April 1,1976. 
"(10) A protected employee and his representative shall be 
furnished with such employee's protected rate of pay, or average 
monthly compensation and average monthly time paid for, 
subject to the maximum amount, computed in accordance with 
the terms of this subsection. Each protected employee who has 
been deprived of employment or his representative and the 
employer shall agree upon a procedure by which the employee 
shall keep the employer currently informed of the unemploy-
ment compensation benefits received by such employee and the 
earnings of such employee in employment other than with such 
employer. 
(11) In the case of a supplemental transaction— 
"(A) with respect to an employee described in paragraph 
(1) of this subsection who was not employed on September 1, 
1979, the protected rate of pay of such employee shall be 
based on the rate of pay of the position held by such 
employee on the first day of the first month after September 
1979 in which such employee was employed; 
"(B) with respect to an employee described in paragraph 
(2) of this subsection who was not employed during the 12 
months immediately preceding January 1,1975, the average 
monthly compensation of such employee shall be determined 
on the basis of the first 12-month period after January 1, 
1974, during which such employee was employed; and 
"(C) with respect to an employee described in paragraph 
(3) of this subsection— 
"(i) if such employee was employed during the 12 
months immediately preceding January 1, 1975, the 
average monthly compensation of such employee shall 
be determined on the basis of such 12-month period; and 
"(ii) if such employee was not employed during the 12 
months immediately preceding January 1, 1975, the 
preponderance of work of such employee shall be de-
termined on the basis of the first 12-month period after 
January 1, 1974, during which such employee was 
employed.". 
DURATION OF MONTHLY DISPLACEMENT ALLOWANCE 
SEC. 502. Section 505(c) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 775(c)) is amended to read as follows: 
"(c) 
DURATION OF MONTHLY DISPLACEMENT ALLOWANCE.—The 
monthly displacement allowance provided for in subsection (b) of this 
section shall, in the case of a protected employee with 5 or more years 
of service on the effective date of this Act, continue until the 
attainment of age 65 by such employee, and shall, in the case of a 
protected employee who has less than 5 years of service on such date, 
continue for a period equal to the employee's total prior years of 
service, except that such monthly displacement allowance— 
"(1) shall terminate upon the protected employee's death, 
retirement, resignation, or dismissal for cause; 
"(2) shall not be paid with respect to any period of disciplinary 
suspension for cause, failure to work due to illness or disability, 
voluntary furlough, or failure to retain or obtain a position 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1953 
available to the employee by the exercise of such employee's 
seniority rights in accordance with the provisions of this section; 
"(3) shall not be paid to a protected employee deprived of 
employment with respect to any period of failure to work due to 
strike, fire, flood, snowstorm, hurricane, earthquake, tornado, or 
other similar natural occurrence that causes a suspension of 
operations in whole or in part and precludes performance of the 
work which would be performed by the incumbents of the 
positions to be abolished or the work which would be performed 
by the employees involved in the force reductions (but the 
payment of monthly displacement allowances shall be resumed 
upon termination of the emergency); and 
"(4) shall not be paid with respect to any month that com-
mences after the effective date of the Staggers Rail Act of 1980 Ante, p. 1895. 
for which the employee has failed to make a claim for such 
allowance within 3 full calendar months (unless otherwise 
agreed upon by the employee or his representative and the 
employer) after the last day of the month for which such 
allowance is sought, except that such 3-month limit shall not 
apply to any claim which is the subject of or is based upon an 
arbitration decision issued pursuant to section 507 of this title. 45 USC 777. 
Unless otherwise agreed upon by the employee or his representative 
and the employer, the entitlement of an employee to an allowance 
shall be approved or denied within 150 days after the claim therefor is 
made if such claim is filed during the 12-month period beginning on 
the effective date of the Staggers Rail Act of 1980, and within 90 days 
after the claim therefor is made if such claim is filed after such 12-
month period. Any claim not approved or denied at the expiration of 
the time limits described in the preceding sentence shall be deemed 
approved.". 
TRAINING AND TRANSFER 
SEC. 503. (a)(1) Section 505(d) (1) and (3) of the Regional Rail 
Reorganization Act of 1973 (45 U.S.C. 775(d) (1) and (3)) are each 
amended by inserting "or other employers with emplovees protected 
under this section" immediately after "Corporation 
wherever it 
appears. 
(2) Section 505(d)(1) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775(d)(1)) is amended by inserting "or the system of other 
employers with employees protected under this section" immediately 
after Corporation's system". 
(3) Section 505(d)(2) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775(d)(2)) is amended by adding at the end thereof the 
following new sentence: "Notwithstanding any other provision of this 
subsection, a protected employee of the National Railroad Passenger 
Corporation shall not be required to transfer to a location outside the 
seniority district of such protected employee.". 
(b) Section 505(d)(4) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775(d)(4)) is amended by striking out "Transfers" and 
inserting in lieu thereof "Except as provided in paragraph (5) of this 
subsection, transfers". 
(c) Section 505(d) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775(d)(4)), as amended, is further amended by adding at the 
end thereof the following new paragraph: 
"(5) In the case of a marine craft or class on the Corporation's 
system, or in the craft or class of a Penn Truck Lines, Incorporated, 
employee, transfers to vacancies requiring a change in residence 
shall be subject to the following: 
94 STAT. 1954 
PUBLIC LAW 96-448—OCT. 14, 1980 
"(A) The vacancy shall be first ofiered to the junior qualified 
protected employee or employees deprived of employment in the 
seniority district where the vacancy exists, and each such 
employee shall have 20 days to elect one of the options set forth 
in paragraph (1) of this subsection. The Corporation shall deter-
mine the number of junior qualified protected employees de-
prived of employment (not to exceed four employees per offer) 
who will be included in the offer of transfer. The vacancy will be 
awarded to the most junior qualified protected employee who 
accepts transfer. Other qualified protected employees who have 
accepted the transfer will retain their status as employees 
deprived of employment. Employees junior to the acceptor who 
have elected one of the options set forth in paragraph (1) of this 
subsection shall retain the option. If the vacancy is not filled, it 
may be again offered in inverse seniority order to remaining 
qualified protected employee(s) deprived of employment (not to 
exceed four employees per offer) in the seniority district. 
"(B) If there are no qualified protected employees deprived of 
employment in the seniority district where the vacancy exists, 
the vacancy may be offered in inverse seniority order to qualified 
protected employees deprived of employment (not to exceed four 
employees per offer) on the system, in accordance with the 
procedure in subparagraph (A) of this paragraph. Employees 
offered transfer pursuant to this paragraph will be afforded 30 
days to elect one of the options set forth in paragraph (1) of this 
subsection. 
"(C) The provisions of this paragraph shall not prevent the 
adoption of other procedures pursuant to an agreement made by 
the Corporation and representatives of the class or craft of 
employees involved. 
"(D) When no bona fide vacancies exist in such craft or class, 
the Corporation may offer such employee comparable employ-
ment for which the employee is qualified, or for which the 
employee can be trained, in another craft or class. The Corpora-
tion shall first attempt to locate a comparable position in a 
seniority district which encompasses the employee's last work 
location, and if successful, a transfer notice may be tendered 
pursuant to subparagraph (A) of this paragraph. If no such 
position exists, the Corporation may tender the employee a 
transfer notice involving a position elsewhere on the system 
pursuant to subparagraph (B) of this paragraph. In the event it is 
necessary to train an employee after such employee's acceptance 
of a position pursuant to this paragraph, such training shall be 
provided by the Corporation at no cost to the employee.". 
(d) Section 505(i)(l) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775(i)(l)) is amended by adding at the end thereof the 
following new sentences: "The Corporation may simultaneously offer 
a position to not more than 4 protected noncontract employees. The 
position shall be given to the protected employee accepting transfer 
whom the Corporation considers to be best qualified for the particular 
position involved. Other protected employees who have accepted the 
transfer shall retain their previous status. Employees who have 
elected a voluntary suspension of employment at their home location 
in lieu of protective benefits or a severance of employment shall 
retain the option elected.". 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1955 
PAYMENT, AUDIT, AND REPORT 
SEC. 504. Section 509 of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 779) is amended to read as follows: 
PAYMENT, AUDIT, AND REPORT 
"SEC. 509. (a) PAYMENT.—The Corporation, the Association (where 
applicable), replacement operators, and acquiring railroads, as the 
case may be, shall be responsible for the actual payment of all 
allowances, expenses, and costs provided protected employees pursu-
ant to the provisions of this title. The Corporation, the Association 
(where applicable), replacement operators, and acquiring railroads 
shall then be reimbursed for the actual amounts paid to, or for the 
benefit of, protected employees, pursuant to the provisions of this 
title (including such amounts paid by the employer prior to the 
effective date of the Staggers Rail Act of 1980 and training costs 
incurred by the Corporation pursuant to section 505(d)(4)(D) of this 
title), other than provisions with respect to employee pension bene-
fits, not to exceed an aggregate sum of $485,000,000, by the Railroad 
Retirement Board, upon certification to such Board in such detail as 
the Board may reasonably require, by the Corporation, the Associ-
ation (where applicable), replacements operators, and acquiring rail-
roads, of the amounts paid such employees, except that the aggregate 
amount of reimbursements made by the Board for the payment of 
monthly displacement allowances in the period after the effective 
date of the Staggers Rail Act of 1980 shall not exceed $180,000,000. 
There is authorized to be appropriated to the Secretary annually such 
sums as may be required to meet the obligations payable under this 
title, not to exceed the aggregate sum of $485,000,000. Upon the 
exhaustion of such authorization, the Corporation, the Association 
(where applicable), replacement operators, and acquiring railroads 
shall retain responsibility for the pajonent of benefits otherwise 
reimbursable under this title, but they shall not be reimbursed 
therefor. There is further authorized to be appropriated to the 
Secretary such sums as may be necessary to provide for additional 
administrative expenses to be incurred by the Railroad Retirement 
Board in the performance of its functions under this section. Appro-
priations authorized under this section may be allocated by the 
Secretary to the Railroad Retirement Board. 
"(b) AUDIT.—Beginning October 1, 1980, the Association shall 
conduct a program audit of the payment of benefits pursuant to this 
title and shall evaluate the effectiveness of the provisions of this title 
in improving the Corporation's management of certain protected 
employees in its workforce who are entitled to receive monthly 
displacement allowances. Such audits and evaluations shall be con-
ducted in accordance with such rules and regulations as the Associ-
ation may prescribe. The representatives of the Association shall 
have access to all books, accounts, records, reports, files, and other 
papers, things, or property belonging to, or in use by or in connection 
with, the Corporation, replacement operators, acquiring railroads, or 
the Railroad Retirement Board which pertain to the benefits pro-
vided protected employees pursuant to this title and which are 
necessary to facilitate such audit and evaluation. 
"(c) REPORT.—The Association shall transmit to the. Congress and 
the President, not later than 90 days after the end of each fiscal year, 
a comprehensive and detailed report on the payment of benefits 
under this title and the effectiveness of the provisions of this title in 
Ante, p. 1895. 
45 u s e 775. 
Appropriation 
authorization. 
Records, 
accessibility. 
Transmittal to 
Congress and 
the President. 
94 STAT. 1956 
PUBLIC LAW 96-448—OCT. 14, 1980 
improving the Corporation's management of certain protected 
employees in its workforce who are entitled to receive monthly 
displacement allowances.". 
RAILROAD HIRING 
SEC. 505. Title V of the Regional Rail Reorganization Act of 1973 (45 
U.S.C. 771 et seq.) is amended by adding at the end thereof the 
following new section: 
"RAILROAD HIRING 
45 use 780. 
"SEC. 510. Any protected employee of the Corporation and any 
employee of the Corporation who is separated or furloughed from his 
employment with the Corporation (other than for cause) shall, unless 
found to be less qualified than other applicants, have the first right of 
hire by any other railroad that is subject to regulation by the 
Commission for any vacancy that is not covered by (1) an affirmative 
action plan, or a hiring plan designed to eliminate discrimination, 
that is required by Federal or State statute, regulation, or Executive 
order, or by the order of a Federal court or agency, or (2) a permissible 
voluntary affirmative action plan. For purposes of this section, a 
railroad shall not be considered to be hiring new employees when it 
recalls any of its own furloughed employees.". 
SINGLE COLLECTIVE-BARGAINING AGREEMENT 
SEC. 506. Section 504(d) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 774(d)) is amended to read as follows: 
"(d) NEW COLLECTIVE-BARGAINING AGREEMENTS.—Not later than 
60 days after the effective date of any conveyance pursuant to the 
provisions of this Act, the representatives of the various classes of 
crafts of the employees of a railroad in reorganization involved in a 
conveyance and representatives of the Corporation shall commence 
negotiation of a new single collective-bargaining agreement for each 
class and craft of employees covering the rate of pay, rules, and 
working conditions of employees who are employees of the Corpora-
tion. Such collective-bargaining agreement shall include appropriate 
provisions concerning rates of pay, rules, and working conditions, but 
shall not include any provisions for job stabilization resulting from 
any transaction effected pursuant to this Act which may exceed or 
conflict with those established herein. Negotiations with respect to 
such single collective-bargaining agreement, and any successor 
thereto, shall be conducted systemwide.". 
EMPLOYEE PROTECTION PAYMENTS 
45 use 779 
SEC. 507. Notwithstanding any other provision of law, the 
"°*® 
Consolidated Rail Corporation and other employers with employees 
protected under the provisions of title V of the Regional Rail 
45 use 771. 
Reorganization Act of 1973 shall, until the effective date of this Act, 
continue to make payments for employee protection under such Act 
in accordance with the provisions of such Act which were in effect on 
January 1, 1979. Notwithstanding any other provision of law, such 
Corporation and employers shall be reimbursed for such payments in 
accordance with the provisions of section 509(a) of the Regional Rail 
Ante, p. 1955. 
Reorganization Act of 1973 (45 U.S.C. 779(a)). 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1957 
United States 
Railway 
Association, 
Board of 
Directors. 
TECHNICAL AMENDMENTS 
SEC. 508. (aXD The item relating to section 509 in the table of 
contents of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 
701 et seq.) is amended to read as follows: 
"Sec. 509. Payment, audit, and report.". 
(2) The table of contents of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 701 et seq.) is amended by inserting immediately after 
the item relating to section 509 the following new item: 
"Sec. 510. Railroad hiring.". 
(b) Section 102(16) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 702(16)) is amended to read as follows: 
"(16) 'Secretary' means the Secretary of Transportation or the "Secretary." 
designated representative of the Secretary;". 
(c) Section 201 of the Regional Rail Reorganization Act of 1973 (45 
U.S.C. 711) is amended— 
(1) by amending subsection (dX2) to read as follows: 
"(2) three Government members, who shall be (A) the Secre-
tary, acting directly or at any time through the Deputy Secretary 
of Transportation, the General Counsel of the Department of 
Transportation, the Federal Railroad Administrator, or the 
Deputy Administrator of the Federal Railroad Administration, 
(B) the Secretary of the Treasury, acting directly or at any time 
through an officer of the Department of the Treasury who has 
been appointed with the advise and consent of the Senate, and (C) 
the Chairman of the Commission, acting directly or at any time 
through the Vice Chairman of the Commission; and"; 
(2) striking out "through their respective Deputy Secretaries" 
from the first sentence of subsection (i) and inserting in lieu 
thereof "in the case of the Secretary, through the Deputy 
Secretary of Transportation, the General Counsel of the Depart-
ment of Transportation, the Federal Railroad Administrator, or 
the Deputy Administrator of the Federal Railroad Admin-
istration, and, in the case of the Secretary of the Treeisury, 
through an officer of the Department of the Treasury who has 
been appointed with the advise and consent of the Senate"; and 
(3) by striking out the first sentence of subsection (jX4). 
(d) Section 501 of the Regional Rail Reorganization Act of 1973 (45 
U.S.C. 771) is amended— 
(1) in paragraph (6), by inserting immediately after "disabil-
ity," the following: "failure to work due to strike, fire, flood, 
snowstorm, hurricane, earthquake, tornado, or other similar 
natural occurrence that causes a suspension of operations in 
whole or in part and precludes performance of the work which 
would be performed by the incumbents of the positions to be 
abolished or the work which would be performed by the employ-
ees involved in the force reductions,"; and 
(2) by striking out "and" at the end of paragraph (10), by 
striking out the period at the end of paragraph (11) and inserting 
in lieu thereof '; and", and by adding at the end thereof the 
following new paragraph: 
"(12) 'compensation' means earnings in employment subject to "Compensation.' 
the Railroad Retirement Act.". 
48 Stat. 1283. 
(e) Section 507 of the Regional Rail Reorganization Act of 1973 (45 45 use 201-208 
U.S.C. 777) is amended by inserting ", section 5090)), or section "°^^^ 
509(c)" immediately after "section 504(d)". 
94 STAT. 1958 
PUBLIC LAW 96-448—OCT. 14, 1980 
(f) The first sentence of section 403(d)(1) of the Rail Passenger 
Service Act (45 U.S.C. 563(d)(1)) is amended by striking out "if such 
State" and all that follows through "service". 
TITLE VI—EXPEDITED SUPPLEMENTAL TRANSACTION 
PROPOSALS 
Rail properties 
in Connecticut 
and Rhode 
Island, transfer. 
Ante, p. 1895. 
Conditions. 
45 u s e 716. 
Price 
establishment. 
Agreement. 
45 u s e 771. 
45 u s e 778. 
Ante, p. 1895. 
EXPEDITED SUPPLEMENTAL TRANSACTION PROPOSALS 
SEC. 601. (a) Section 305 of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 745) is amended by adding at the end thereof the 
following new subsection: 
"(f) EXPEDITED PROPOSALS.—(1) Within 240 days after the effective 
date of the Staggers Rail Act of 1980, the Secretary, after providing 
an opportunity for comments from interested parties, shall deter-
mine whether to initiate a proposal for a supplemental transaction 
under this section for the transfer of all rail properties of the 
Corporation in the States of Connecticut and Rhode Island to another 
railroad in the region, If the Secretary determines that— 
"(A) the proposed transferee railroad is financially and oper-
ationally capable of assuming the freight operations and freight 
service obligations of the Corporation on a financially self-
sustaining basis; 
"(B) the proposed transfer would promote the establishment 
and retention of a financially self-sustaining rail system in the 
States of Connecticut and Rhode Island adequate to meet the 
needs of 
such States; and 
"(C) the proposed transfer is consistent with the goals set forth 
in section 206(a)(8) of 
this Act, 
the Secretary shall develop such a proposal and m^, after providing 
the Association, the Commission, and the States of Connecticut and 
Rhode Island an opportunity to review and comment on such pro-
posal, petition the special court for an order to carry out such 
proposal. 
"(2) The Secretary shall establish a fair and equitable price for any 
rail properties transferred pursuant to a proposal developed under 
this subsection. 
"(3) If the special court determines that a proposal developed under 
this subsection is fair and equitable, meets the requirements of this 
subsection, and is in the public interest, it shall issue such orders as 
may be necessary to carry out such proposal. The provisions of 
paragraphs (2)-(6) of subsection (d) of this section shall apply to the 
determination of the special court under this subsection, except that 
the standards for such determination shall be those set forth in this 
paragraph. 
"(4) In complying with the requirements of subsection (dX7) of this 
section with respect to the application of the provisions of title V of 
this Act to supplemental transactions, the parties to an expedited 
supplemental transaction under this subsection and the representa-
tives of the employees affected thereby shall enter into a new 
agreement pursuant to section 508 of this Act and shall not be bound 
by the terms of any agreement executed under such section 508 and 
in effect on the date of enactment of the Staggers Rail Act of 1980.". 
(b) Section 102(19) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 702(19)) is amended by striking out ^, within 6 years after 
the date on which the special court orders conveyances of rail 
properties to the Corporation". 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1959 
TITLE VII—MISCELLANEOUS PROVISIONS 
ROCK ISLAND AND MILWAUKEE RAILROADS AMENDMENTS 
SEC. 701. (a)(l} The Rock Island Railroad Transition and Employee 45 USC lOOi 
Assistance Act (45 U.S.C. 1001 et seq.) is amended by redesignating ^°^-
section 124 as section 125 and by inserting immediately after section ^"^e. P 409. 
123 the following new section: 
"JUDICIAL REVIEW 
"SEC. 124. (a) Notwithstanding any other provision of law, any 45 use 1018. 
appeal from— 
"(1) any decision of the bankruptcy court with respect to the 
constitutionality of any provision of this Act; and 
"(2) any decision of the court having jurisdiction over the 
reorganization of the Milwaukee Railroad with respect to the 
constitutionality of the Milwaukee Railroad Restructuring Act 
(45 U.S.C. 901 et seq.), 
shall be taken to the United States Court of Appeals for the Seventh 
Circuit. 
"(b) If appeals are taken from decisions described in subsection (a) 
of this section involving section 106 or 110 of this title or section 9 or Ante, pp. 40i, 
15 of the Milwaukee Railroad Restructuring Act, the court of appeals 45^usc 908 914 
shall determine such appeals in a consolidated proceeding, sitting en 
banc, and shall render a final decision no later than 60 days after the 
date the last such appeal is filed. 
"(c) Nothing in this Act or in the Milwaukee Railroad Restructur-
ing Act (45 U.S.C. 901 et seq.) shall limit the right of any person to 
commence an action in the United States Court of Claims under 
section 1491 of title 28, United States Code (commonly referred to as 
the Tucker Act).". 
(2) Section 110(e) of the Rock Island Railroad Transition and 
Employee Assistance Act (45 U.S.C. 1008(e)) is amended by inserting Ante, p. 403. 
"to employees" immediately after "liability". 
(3) Section 15(e) of the Milwaukee Railroad Restructuring Act (45 
U.S.C. 914(E)) is amended by inserting "to employees" immediately 
after "liability". 
0))(1) Section 106 of the Rock Island Railroad Transition and 
Employee Assistance Act (45 U.S.C. 1005) is amended to read as Ante, p. 401. 
follows: 
"EMPLOYEE PROTECTION AGREEMENTS 
"SEC. 106. (a) No later than 5 days after the date of enactment of the 
Staggers Rail Act of 1980, in order to avoid disruption of rail service Ante, p. 1895. 
and undue displacement of employees, the Rock Island Railroad and 
labor organizations representing the employees of such railroad with 
the assistance of the National Mediation Board, may enter into an 
agreement providing protection for employees of such railroad who 
are adversely affected as a result of a reduction in service by such 
railroad. Such employee protection may include, but need not be 
limited to, employee relocation incentive compensation, moving 
expenses, and separation allowances. 
"(b) If the Rock Island Railroad and the labor organizations 
representing the employees of such railroad are unable to enter into 
an employee protection agreement under subsection (a) of this section 
within 5 days after the date of enactment of the Staggers Rail Act of 
94 STAT. 1960 
PUBLIC LAW 96-448—OCT. 14, 1980 
Ante, p. 1895. 
"Fair and 
equitable." 
Ante, p. 403. 
Employee 
benefits and 
allowances. 
Ante, p. 402. 
Ante, p. 399. 
1980, the matter shall be immediately submitted to the Commission. 
The Commission shall impose upon the parties by appropriate order a 
fair and equitable arrangement with respect to employee protection 
no later than 15 days after the date of enactment of the Staggers Rail 
Act of 1980, unless the Rock Island Railroad, and the authorized 
representatives of its employees have by then entered into a labor 
protection agreement. For purposes of this subsection, the term 'fair 
and equitable' means no less protective of the interests of employees 
than protection established by and pursuant to section 9 of the 
Milwaukee Railroad Restructuring Act (45 U.S.C. 908), subject to the 
limitations set forth in section 110 of this title. 
"(c) If an employee protection arrangement is imposed by the 
Commission under subsection (b) of this section, the bankruptcy court 
shall immediately authorize and direct the Rock Island Railroad 
trustee to, and the Rock Island Railroad trustee and the labor 
organizations representing the employees of the railroad shall, imme-
diately implement such arrangement. 
"(d) Any order of the Commission under subsection (b) of this 
section and any order of the bankruptcy court under subsection (c) of 
this section may be appealed only to the United States Court of 
Appeals for the Seventh Circuit. Any such appeal to such court of 
appeals shall be filed within 5 days after the date of entry of the order 
of the Commission or the bankruptcy court, as the case may be, and 
such court of appeals shall finally determine such appeal within 60 
days after the date such appeal is filed. 
"(e)(1) Any claim of an employee for benefits and allowances under 
an employee protection agreement or arrangement entered into 
under this section shall be filed with the Board in such time and 
manner as the Board by regulation shall prescribe. The Board shall 
determine the amount for which such employee is eligible under such 
agreement or arrangement and shall certify such amount to the Rock 
Island Railroad for pajrment. 
"(2) Benefits and allowances under such agreement or arrange-
ment entered into this section shall be paid by the Rock Island 
Railroad from its own assets or in accordance with section 110 of this 
title, and claims of employees for such benefits and allowances shall 
be treated as administrative expenses of the estate of the Rock Island 
Railroad. 
"(f) The first sentence of section 7(bX'7) of the Railroad Retirement 
Act of 1974 (45 U.S.C. 231f[b)(7)) is amended by striking out "Milwau-
kee Railroad Restructuring Act" and inserting in lieu thereof ", the 
Milwaukee Railroad Restructuring Act, and the Rock Island Railroad 
Transition and Employee Assistance Act.". 
(2) Section 108(a) of the Rock Island Railroad Transition and 
Employee Assistance Act (45 U.S.C. 1007(a)) is amended by inserting 
immediately before the period at the end thereof the following: 
"(other than as provided in the agreement entered into in Washing-
ton, District of Columbia, on March 4,1980, entitled 'Labor Protective 
Agreement Between Railroads Parties Hereto Involved in Midwest 
Rail Restructuring and Employees of Such Railroads Represented by 
the Rail Labor Organizations Operating Through the Railway Labor 
Executives' Association')". 
(3) Section 103(5) of the Rock Island Railroad Transition and 
Employee Assistance Act (45 U.S.C. 1002(5)) is amended by inserting 
immediately before the period at the end thereof the following: ", the 
estate of such Company in its reorganization proceeding, or the 
trustee appointed in such proceeding". 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1961 
Appropriation 
authorization. 
Ante, p. 404. 
(c)(1) Section 7 of the Milwaukee Railroad Restructuring Act (45 
U.S.C. 906) is amended by adding at the end thereof the following new 
subsection: 
"(h)(1) All obligations to the United States or any agency or 
instrumentality of the United States incurred pursuant to this 
section by the Milwaukee Railroad or the trustee of the property of 
the Milwaukee Railroad shall be waived and canceled when— 
"(A) the Milwaukee Railroad is reorganized as an operating 
rail carrier; or 
"(B) substantially all of the Milwaukee Railroad is purchased. 
"(2) For purposes of this subsection, substantially all of the Milwau-
kee Railroad shall be considered as having been purchased when (A) 
more than 50 percent of the rail system operated by the Milwaukee 
Railroad on the date of enactment of the Staggers Rail Act of 1980 has ^«^e, p. 1895. 
been purchased, and (B) more than 50 percent of the employees 
employed by the Milwaukee Railroad on such date of enactment have 
obtained employment with other rail carriers.". 
(2) Section 14 of the Milwaukee Railroad Restructuring Act (45 
U.S.C. 913) is amended by redesignating subsection (d) as subsection 
(e) and by inserting after subsection (c) the following new subsection: 
"(d) There are authorized to be appropriated $15,000,000 for pur-
poses of providing transaction assistance in accordance with section 
505(h)(1) (A) and (B) of the Railroad Revitalization and Regulatory 
Reform Act of 1976.". 
(d) Section 505(h) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 825(h)) is amended— 
(1) in paragraph dXA), by striking out "$25,000,000" and 
inserting in lieu thereof "$38,000,000"; 
(2) in paragraph (IXB), by striking out "$18,000,000" and 
inserting in lieu thereof "$27,000,000"; and 
(3) by amending paragraph (4) to read as follows: 
"(4) This subsection shall apply to (A) purchase offers submitted to 
the Trustee of the Rock Island Railroad Estate and filed with the 
Commission prior to September 15, 1980 (or such other time as the 
Secretary considers appropriate), and (B) purchase applications filed 
with the Commission prior to September 15,1980 (or such other time 
as the Secretary considers appropriate) and approved by the court 
having jurisdiction over the reorganization of the Rock Island Rail-
road or the Milwaukee Railroad, as the case may be, and by the 
Commission.". 
LOAN GUARANTEES 
SEC. 702. (a) To promote competition in the transportation of coal, 
the Secretary of Transportation shall, no later than 75 days after the 
date of the issuance of the final environmental impact statement 
with respect to the loan application, take final action on any applica-
tion for loan guarantees, under section 511 of the Railroad Revitaliza-
tion and Regulatory Reform Act of 1976, to be used in connection with 
joint ownership, construction, or rehabilitation of any facilities 
(including support facilities) for a second rail carrier to serve the 
Powder River (5oal Region in Montana and Wyoming. 
(b)(1) The Secretary of Transportation shall review the proposed 
Chicago and North Western connector line route and shall not 
approve any route which requires the use of any agricultural land 
unless (A) there is no feasible and prudent alternative to the use of 
such land, and (B) the proposed route construction plan requires all 
possible planning to minimize harm to such agricultural land result-
Powder River 
Coal Region, 
Mont, and Wyo. 
45 u s e 831 note. 
45 u s e 831. 
ehicago and 
Northwestern 
connector line 
route, review. 
94 STAT. 1962 
PUBLIC LAW 96-448—OCT. 14, 1980 
ing from such use. The Secretary of Transportation may not other-
wise disapprove a proposed route for the Chicago and North Western 
line under the authority of this subsection. This review of a proposed 
route shall be conducted within 90 days sifter the final action 
specified in subsection (a) of this section. 
Private grade 
(2)(A) The Secretary shall review the use of any agricultural land 
crossings. 
used in any route for newly constructed line and shall require, to the 
maximum extent prudent and feasible, that such railroad provide a 
private grade crossing for the convenience of each landowner whose 
agricultural holdings are divided by such newly constructed line 
when the Secretary finds that such division of property will cause a 
substantial disruption to the agricultural use of such land. The 
owners of such property shall file a request for such grade crossing 
with the Secretarj?^ within 180 days of the final determination of the 
route. The finding of the Secretary under this subsection shall be 
final. 
(B) The Secretary shall render a decision on each request for grade 
crossing under this paragraph within 180 days of its receipt. Such 
review shall not require the delay of construction of new line under 
subsection (a) of this section. 
Claims and 
(c)(1) Notwithstanding any other provision of law, the actions of 
judicial review, 
^j^g Secretary of Transportation taken pursuant to subsections (a) 
and 0^) of this section shall not be subject to judicial review except as 
provided in this section. 
(2) A claim alleging the invalidity of this section may be brought no 
later than the 60th day following the date a final action is taken 
pursuant to subsections (a) and (b) of this section. 
(3) A claim challenging an action of the Secretary of Transporta-
tion under subsection (a) or (b) of this section may be brought only on 
use prec. title 1. the grounds that such action will deny rights under the Constitution 
of the United States, is arbitrary, capricious, or an abuse of discre-
tion, exceeds statutory jurisdiction, authority, or limitations, or is 
short of statutory right. Such a claim may be brought not later than 
the 60th day following the date of such action. 
(4) A claim under paragraph (2) or (3) shall be barred unless prior to 
the expiration of such time limits, a complaint is filed in the United 
States Court of Appeals for the District of Columbia acting as a 
special court. Such court shall have exclusive jurisdiction to deter-
mine such proceeding in accordance with the procedures hereinafter 
provided, and no other court of the United States, of any State, 
territory, or possession of the United States, or of the District of 
Columbia, shall have jurisdiction of any such claim in any proceeding 
instituted prior to or on or after the date of enactment of this Act. 
Hearing. 
(5) Any such proceeding shall be assigned for hearing and 
completed at the earliest possible date, and to the greatest extent 
practical shall take precedence over all other matters pending on the 
docket of the court at that time, and shall be expedited in every way 
by such court, and such court shall render its decision relative to any 
claim within 90 days from the date such claim is brought unless such 
court determines that a longer period is required to satisfy require-
ments of the Constitution of the United States. 
(d) Notwithstanding any other provision of law, the Secretary shall 
take the final action described in subsection (a) of this section without 
regard to the consent, or lack thereof, of any Committee of the 
Congress. 
CONRAIL STUDIES AND EMERGENCY FUNDING 
Definitions. 
45 u s e 747 note. 
SEC. 703. (a) For purposes of this section, the term-
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1963 
(1) "Association" means the United States Railway Associ-
ation; 
(2) "Commission" means the Interstate Commerce Commis-
sion; 
(3) "Corporation" means the ConsoHdated Rail Corporation; 
(4) "rail properties" means assets or rights owned, leased, or 
otherwise controlled by the Corporation which are used or useful 
in rail transportation service; 
(5) "region" has the meaning given such term in section 101(15) 
of the Regional Rail Reorganization Act of 1973; and 
45 use 702. 
(6) "Secretary" means the Secretary of Transportation. 
ObXD No later than April 1,1980, the Association and the Corpora- Report to 
tion shall each submit a report to the Congress analyzing the impact, Congress. 
upon the Corporation, rail service in the region, railroad employees, 
the economy of the region, and other rail carriers in the region and 
elsewhere, and the Federal budget, of— 
(A) no further Federal funding for the Corporation; 
(B) continued Federal funding of the rail system of the Corpo-
ration as it is presently structured; and 
(C) future Federal funding of the Corporation to the extent 
necessary to preserve rail service in the region which can be self-
supporting, without undue interim disruption of operations 
which will be maintained. 
(2) Each report submitted under paragraph (1) of this subsection 
shall contain a description, under each of the Federal funding 
alternatives set forth in subsection (a) of this section, of the lines of 
the Corporation which would be maintained, the lines of the Corpora-
tion which would be abandoned, and the lines which would be 
transferred. 
(3) Each report submitted under paragraph (1) of this subsection 
shall also include specific recommendations with respect to— 
(A) future projected funding requirements of the Corporation; 
(B) future structure and activities of the Corporation in the 
region; 
(C) any legislative action needed with respect to the matters 
described in subparagraphs (A) and (B) of this paragraph; and 
(D) any other matters which the Association or the Corpora-
tion considers appropriate. 
The specific recommendations submitted under this paragraph shall 
set forth alternatives for the Congress to consider in the event it 
determines 
that 
modification 
of 
such 
recommendations 
is 
appropriate. 
(4) In developing recommendations in accordance with this subsec-
tion, the Association and the Corporation shall identify measures 
designed to ensure a financially self-sustaining rail system in the 
region. The recommendations shall be based on analyses of rail 
properties which might be proposed for abandonment or transfer to 
another railroad or qualified person and proposed operating efficien-
cies which could improve the Corporation's revenue-to-cost ratio. 
(5) In developing recommendations under this subsection, the 
Association and the Corporation shall each analyze and consider— 
(A) projections of the Corporation's future traffic, revenues, 
operating costs, and capital requirements; 
(B) rail properties which might be proposed for abandonment 
or transfer to another railroad or qualified person, taking into 
account the potential impact of changes in the regulatory 
environment; 
94 STAT. 1964 
PUBLIC LAW 96-448—OCT. 14, 1980 
Publication in 
Federal 
Register. 
Comments, 
submittal to 
Congress. 
Recommenda-
tions, submittal 
to Congress. 
Analysis, 
submittal to 
Congress. 
Ante, p. 1895. 
Ante, p. 1946. 
(C) the impact on communities served by lines proposed for 
abandonment or transfer; 
(D) proposed operating efficiencies which could improve the 
Corporation's revenue-to-cost ratio; 
(E) the impact on the Corporation of proposed mergers by 
connecting or competing railroads; 
(F) employee motivation and labor productivity programs and 
a projection of labor protection costs which could result from the 
recommendations; 
(G) the future capital structure of the Corporation; and 
(H) any other factors identified by the Association as relevant 
to the recommendations required to be developed and submitted 
pursuant to this section. 
(6)(A) The Association and the Corporation shall, on the date of 
submission of their recommendations to the Congress under this 
subsection, transmit copies of such recommendations to the Secre-
tary, the Commission, and the Governor of each State that could be 
affected by such recommendations. Upon request, the Association 
and the Corporation shall furnish a copy of their recommendations to 
any interested person. 
(B) As soon as practicable after submission of their recommenda-
tions to the Congress, the Association and the Corporation shall 
publish in the Federal Register a summary of such recommendations 
and invite interested parties to comment on such recommendations. 
(7) The Commission shall, no later than May 1,1981, submit to the 
Congress its comments on the reports of the Association, the Secre-
tary, and the Corporation under this subsection. 
(8) Not later than April 1, 1981, the Secretary shall submit to the 
Congress his recommendations with respect to the future structure 
and operations of the Corporation. Not later than May 1, 1981, the 
Secretary shall submit to the Congress his comments and recommen-
dations with respect to the reports of the Association and the 
Corporation under this subsection, and shall msike any changes in his 
recommendations that he determines are necessary. 
(9) The antitrust laws, as defined in section 601(a)(3) of the 
Regional Rail Reorganization Act of 1973 (45 U.S.C. 791(a)(3)), shall 
not apply to any action taken by the Association or the Secretary 
prior to May 1,1981, in accordance with and under the authority of 
the provisions of this subsection. 
(c) The Corporation shall, no later than March 15, 1981, submit to 
the Congress an analysis of the effects upon the Corporation and its 
employees of alternative changes in labor agreements and related 
operational changes. Such report shall include an analysis of any 
Federal funding that will be required. 
(d) The Corporation shall, no later than January 15,1981, submit to 
the Association its projections of the benefits to the Corporation of 
the Staggers Rail Act of 1980, its projections of changes needed in the 
structure of the rail system of the Corporation including properties 
which may be abandoned or transferred, and other projections of 
potential savings or increased revenues to the Corporation. 
(e) Section 216(b) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 726(b)), as amended by this Act, is further amended by 
adding at the end thereof the following new paragraph: 
"(4) Purchases of up to $329,000,000 of a series A preferred stock 
shall be made by the Association, subject to the availability of 
appropriations, as required and requested by the Corporation, if the 
Finance Committee makes an affirmative finding that the Corpora-
tion has taken appropriate action to eliminate losses on light density 
PUBLIC LAW 96-448—OCT. 14, 1980 
94 STAT. 1965 
lines and other lines which are unprofitable. Such action shall 
include the imposition of surcharges on such lines, the abandonment 
of such lines, and the transfer of such lines.". 
(f)(1) Section 216(a) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 726(a)) is amended by striking out "$2,300,000,000" and 
inserting in lieu thereof "$2,629,000,000". 
(2) Section 216(g) of such Act (45 U.S.C. 726(g)) is amended by 
striking out 
"$8,300,000,000" and 
inserting in lieu 
thereof 
"$3,629,000,000". 
(3) Section 210(e) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 720(e)) is amended by inserting immediately after "section" 
in the first sentence thereof the following: "or under subsection (a) of 
section 306 of this Act". 
USRA AUTHORIZATION OF APPROPRIATIONS 
SEC. 704. Section 214(c) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 724(c)) is amended to read as follows: 
"(c) ASSOCIATION.—For the fiscal year ending September 30, 1981, 
there are authorized to be appropriated to the Association for 
purposes of carrying out its administrative expenses under this Act 
such sums as are necessary, not to exceed $30,000,000. Sums appropri-
ated under this subsection are authorized to remain available until 
expended.". 
FEEDER LINE REHABILITATION STUDY 
SEC. 705. (a) The Secretary of Transportation and the Secretary of Report to 
the Treasury shall jointly submit to the Congress, within 9 months of Congress. 
the effective date of this Act, a comprehensive report on the antici-
pated effect (including the loss of revenue to the Federal Treasury) of 
amending section 103 of the Internal Revenue Code of 1954 to provide 26 USC 103. 
an exemption from taxation for obligations incurred in connection 
with the rehabilitation of railroad feeder lines. Such report shall also 
include such criteria as may be necessary to prevent the abuse of such 
special tax status. 
(b) For purposes of this section, railroad feeder line rehabilitation 
includes the acquisition, construction, reconstruction, or erection of 
any feeder line roadbed, track, trestle, depot, switching, and signaling 
equipment, or any other rail equipment (other than rolling stock). 
EFFECT ON PENDING MATTERS 
SEC. 706. In the case of any proposal docketed with a rate bureau 
prior to the effective date of this Act which is or becomes the subject 
of an application or proceeding before the Interstate Commerce 
Commission, such application or proceeding shall be determined as if 
this Act had not been enacted, and the antitrust immunity provided 
in section 10706(b) of title 49, United States Code, resulting from 
approval of such agreement shall continue in effect. 
49 USC 10706 
note. 
CONSTRUCTION OF AMENDMENTS 
SEC. 707. With respect to the relationship between water carriers 
and rail carriers, none of the amendments made by this Act shall be 
construed to make lawful (1) any competitive practice that is unfair, 
destructive, predatory, or otherwise undermines competition and 
that was unlawful on the effective date of this Act, or (2) any other 
49 USC 10706 
note. 
94 STAT. 1966 
PUBLIC LAW 96-448—OCT. 14, 1980 
competitive practice that is unfair, destructive, predatory, or other-
wise undermines competition. 
SURPLUS PROPERTY 
Consolidated 
Rail 
Corporation, 
contract 
authority. 
SEC. 708. Notwithstanding any other provision of law, the Consoli-
dated Rail Corporation shdl be considered a Federal agency for the 
sole purpose of Department of the Army Regulations 735-5, para-
graph 1-16. Such Corporation may enter into a contract under the 
authori^ granted by this section only when it determines that the 
safely ofthe public so requires. 
Ante, p. 1898. 
49 u s e 10101 
note. 
STUDY OF ALASKA RAILROAD RATES 
SEC. 709. Within 6 months after the effective date of this Act, the 
Interstate Commerce Ck)mmission shall commence and complete a 
study to determine whether the rates charged by the Alaska Railroad 
pursuant to ICC-ARR Freight Tariffs 4108 and 4109 (as supple-
mented by supplements 1-4) would, if such rates had been entered 
into after the effective date of 
this Act, have constituted a violation of 
section 10701a(cXl) of 
title 49, United States Code, as amended by this 
Act. To the extent feasible, such study shall be coordinated with the 
study by the State of Alaska in progress on the effective date of this 
Act. 
EFFECTIVE DATES 
SEC. 710. (a) Except as provided in subsections (b), (c), and (d) of this 
section, the provisions of this Act and the amendments made by this 
Act shall take effect on October 1,1980. 
(b) Section 206 of this Act shall take effect on January 1, 1981. 
(c) Section 218(b) of this Act shall take effect on October 1,1983. 
(d) Section 701 of 
this Act shall take effect on the date of enactment 
of 
this Act. 
Approved October 14, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-1035 accompanying H.R. 7235 (Comm. on Interstate and 
Foreign Commerce) and No. 96-1430 (Comm. of Conference). 
SENATE REPORT No. 96-470 (Comm. on Commerce, Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Apr. 1, considered and passed Senate. 
Apr. 3, Senate considered and agreed to an amendment. 
June 25, 26, 30, July 2, 24, Sept. 5, 9, H.R. 7235 considered and passed House; 
passage vacated and S. 1946, amended, passed in lieu. 
Sept. 18, Senate agreed to House amendment with amendments. 
Sept. 30, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 42: 
Oct. 14, Presidential statement.