An Act to amend the Rail Passenger Service Act to provide financing for the National Railroad Passenger Corporation, to amend the Regional Rail Reorganization Act of 1973 to increase the amount of loan authority under section 211(h)(1) of such Act, and for other purposes.
PL 94-555 (S.3131), enacted 10/19/1976

PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2613 
Public Law 94-555 
94th Congress 
An Act 
To amend the Rail Passenger Service Act to provide financing for tlie National 
Uct. 19, 1976 
Railroad Passenger Corporation, to amend the Regional Rail Reorganization 
[S. 3131] 
Act of 1973 to increase the amount of loan authority under section 211(Ii) (1) 
of such Act, and for other purposes. 
Be it cna^'ted 
by the Senate 
and House 
of Representatives 
of the 
United 
States 
of America 
in Congress 
assembled, 
T h a t this A c t , Rail Transpor-
divided into titles a n d sections according to t h e following table of 
tation Improve-
contents, may be cited as the "Rail T r a n s p o r t a t i o n I m p r o v e m e n t Act'*. 
™^"L^^1', 
' 
-
^ 
1 
£- 
45 ug(^ 501 note. 
TITLE I—AMTKAK IMPROVEMENT 
Sec. 101. Short title. 
Sec. 102. Authorization of appropriations. 
Sec. 103. Board membership. 
Sec. 104. Security guards. 
Sec. 105. Waste disposal. 
Sec. 106. Through routes and joint fares. 
Sec. 107. Cost computation. 
Sec. lOH. Hours of food service. 
TITLE II—RAIL AMENDMENTS 
Sec. 201. Short title. 
Sec. 202. Rail marine freight service; options. 
Sec. 203. Loans for payment of obligations. 
Sec. 204. Protection of employees' pension benefits. 
Sec. 205. Evidentiary use of certain determinations; reimbursement for rail 
service. 
Sec. 206. Authority of the Interstate Commerce Commission. 
Sec. 207. Replacement operators. 
Sec. 208. Collective bargaining and FELA claims. 
Sec. 209. P^mployee displacement allowance. 
Sec. 210. Noncontract employees. 
Sec. 211. United States Railway Association Board membership. 
Sec. 212. Financial assistance. 
Sec. 213. Priority of redeemable preference shares. 
Sec. 214. Redemption payments and interest rate. 
Sec. 215. Obligation guarantees. 
Sec. 216. Rehabilitation and financing amendments. 
Sec. 217. Northeast Corridor acquisitions. 
Sec. 218. Discontinuance and abandonment procedures. 
Sec. 219. Preservation of historical rail facilities. 
Sec. 220. Technical amendments. 
TITLE III—GENERAL PROVISIONS 
Sec. 301. Environmental study. 
Sec. 302. Delmarva rail study. 
Sec. 303. Effective date. 
T I T L P : 
I — A . A I T R A K 
I M P R O V E M E N T 
Amtrak improve-
ment Act of 1976. 
SHORT TITIJi 
S E C . 101. This title m a y be cited as the " A m t r a k I m p r o v e m e n t A c t 45 USC 501 note, 
of 1976". 
AUTHORIZATIOX OF APPROPRIATIONS 
S E C . 102. ( a ) Section 601(a) of the Rail Passenger Service A c t (45 
U.S.C. 6 0 1 ( a ) ) is amended by striking out the second a n d t h i r d sen-
90 STAT. 2614 
PUBLIC LAW 94-555—OCT. 19, 1976 
tences thereof and inserting in lieu thereof the following: "There are 
authorized to be appropriated to the Secretary for the benefit of the 
Corporation—• 
"(1) for the payment of operating expenses for the basic sys-
tem, except for the additional expenses that are to be paid from 
funds authorized by clause (3) of this sentence, and for operating 
and capital expenses of rail passenger service provided pursuant 
45 use 563. 
to section 403(b) of this Act, not to exceed $350,000,000 for the 
fiscal year ending June 30, 1976, not to exceed $105,000,000 for 
the transitional fiscal period ending September 30, 1976, not to 
exceed $130,000,000 for the fiscal year ending September 30,1977, 
and not to exceed $470,000,000 for the fiscal year ending Septem-
ber 30, 1978; 
, . 
"(2) for the payment of the costs of capital acquisitions or 
improvements of the basic system, not to exceed $110,000,000 for 
the fiscal year ending June 30, 1976, not to exceed $25,000,000 for 
the transitional fiscal period ending September 30, 1976, not to 
exceed $130,000,000 for the fiscal year ending September 30,1977, 
and not to exceed $130,000,000 for the fiscal year ending Septem-
ber 30, 1978; 
"(3) for the payment of the additional operating expenses of 
the Corporation which result from the operation, maintenance, 
and ownership or control of the Northeast Corridor, pursuant to 
title VII of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 851 et seq.), not to exceed a total amount 
of $68,000,000 for the transitional fiscal period ending Septem-
ber 30, 1976, and the fiscal year ending September 30, 1977, and 
not to exceed $75,000,000 for the fiscal year ending September 30, 
1978; and 
" 
"(4) for the payment of the principal amount of obligations 
(other than leases) of the Corporation which are guaranteed by 
45 use 602. 
the Secretary pursuant to section 602 of this Act, not to exceed 
$25,000,000 for the fiscal year ending September 30, 1978. 
Not more than $25,000,000 of the amounts authorized by clause (1) 
of the preceding sentence for the fiscal year ending June 30,1976; not 
more than $7,000,000 of the amounts so authorized for the transitional 
fiscal period ending September 30, 1976, not more than $35,000,000 
of the amounts so authorized for the fiscal year ending September 30, 
1977, and not more than $40,000,000 of the amounts so authorized for 
the fiscal year ending September 30, 1978, shall be available for pay-
ment of rail passenger service operating and capital expenses, pursu-
ant to section 403(b) of this Act.". 
(b) Section 601(a) of the Rail Passenger Service Act (45 U.S.C. 
601 (a)) is fui'ther amended— 
(1) by inserting "(1)" immediately after '"(a)"; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) Funds appropriated for capital grants pursuant to this sec-
V 
tion (other than subsection (a) (4)) shall be paid to the Corporation 
in each fiscal quarter, and such grants may be used by the Corporation 
for temporary reduction of outstanding loan balances, including loans 
.: 
guaranteed by the Secretary pursuant to section 602 of this Act.". 
(c) Section 602(d) of the Rail Passenger Service Act (45 U.S.C. 
602(d)) is amended by inserting immediately after the first sentence 
thereof the following new sentence: "Such $900,000,000 maximum 
shall be reduced by an amount equal to the total principal amount of 
such securities, obligations, or loans paid by the Corporation from 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2615 
funds made available pursuant to clause (4) of section 601(a) of this 
Act". 
45 use 601. 
BOARD MEMBERSHIP 
SEC. 103. Section 303(a)(1) of the Kail Passenger Service Act 
(45 U.S.C. 543 (a) (1)) is amended— 
(1) by striking out the period at the end of subparagraph (A) 
thereof and inserting in lieu thereof ", and the President of the 
Corporation, ex officio."; and 
(2) by striking out "Nine" in subparagraph (B) thereof and 
inserting in lieu thereof "Eight". 
SECURITY GUARDS 
SEC. 104. Section 305 of the Rail Passenger Service Act (45 U.S.C. 
545) is amended by adding at the end thereof the following new 
subsection: 
"(i) The Corporation is authorized to employ security guards for 
purposes of providing security and protection for rail passengers of 
the Corporation and for rail properties owned by the Corporation. 
Security guards employed by the Corporation who have complied 
with the provisions of any State law setting forth licensing, residency, 
or related requirements applicable to security guards or persons 
employed in similar positions may be employed without regard to the 
provisions of any other State's laws setting forth such requirements.". 
WASTE DISPOSAL 
SEC. 105. Section 306 (i) of the Rail Passenger Service Act (45 
U.S.C. 546(i)) is amended by inserting "waste disposal from" imme-
diately after "shall not apply to". 
THROUGH 
R O U T E S AND JOINT FARES 
SEC. 106. Section 306 of the Rail Passenger Service Act (45 U.S.C. 
546) is amended by adding at the end thereof the following two new 
subsections: 
"(j)(l) The establishment of through routes and joint fares, 
between the National Railroad Passenger Corporation and other 
intercity common carriers of passengers by rail and motor carriers 
of passengers, is consistent with the public interest and the national 
transportation policy. The Congress encourages the making of such 
arrangements. 
"(2) The Corporation may establish through routes and joint fares 
with any motor carrier. 
"(k) The Commission shall, by September 30, 1977, conduct and Study, 
transmit to the Congress a study of through routes and joint fares transmittal 
between the Corporation and other intercity common carriers by rail *° Congress, 
and motor carriers of passengers. Such study shall include, but not be 
limited to— 
"(1) a history of through route and joint fare arrangements 
between motor carriers of passengers and carriers of passengers 
by rail; 
"(2) laws and regulations presently applicable or related to 
such through route and joint fare arrangements; 
^ "(3) analysis of the need for intermodal terminals, through 
ticketing and baggage handling arrangements, and the means by 
which such needs should be met; 
90 STAT. 2616 
PUBLIC LAW 94-555—OCT. 19, 1976 
"(4) the extent to which any existing arrangements have 
improved or lessened, or might improve or lessen, the adequacy 
of service and passenger convenience; 
"(5) methods of formulating joint fares and divisions thereof; 
"(6) views of the Corporation, other intercity common car-
riers by rail and of organizations representing intercity bus 
operators; and 
"(7) recommendations relative to the establishment of through 
routes and joint fares between railroads and motor carriers of 
passengers, including any recommendations for legislation.". 
COST COMPUTATION 
SEC. 107. Section 403(b) of the Rail Passenger Service Act (45 
U.S.C. 563(b)) is amended— 
Contract. 
(1) in paragraph (1), by adding at the end thereof the fol-
lowing new sentence: "Any decisions which are likely to have 
a significant effect on the scheduling, marketing, or operations 
of the service provided pursuant to this section shall be made 
by contract or other agreement between the Corporation and the 
State or agency which is obligated to reimburse the Corporation 
for all or part of the operating loss, and associated capital costs, 
of such service."; 
(2) in paragraph (1), by striking out "total operating losses" 
in the second sentence thereof and inserting in lieu thereof "solely 
related costs"; and 
(3) in paragraph (3), by striking out "total" the first place 
it appears and inserting in lieu thereof "solely related costs and 
associated capital". 
Rail 
Amendments 
of 1976. 
45 use 701 note. 
HOURS OF FOOD SERVICE 
SEC. 108. Section 801(a) of the Rail Passenger Service Act (45 
U.S.C. 641(a)) is amended by inserting immediately after the first 
sentence thereof the following new sentence: "No regulation issued 
by the Commission under this section shall require the Corporation 
or any railroad providing intercity rail passenger service to provide 
food service other than during customary dining hours.". 
TITLE II—RAIL AMENDMENTS 
SHORT TITLE 
SEC. 201. This title may be cited as the "Rail Amendments of 1976". 
RAIL MARINE FREIGHT SERVICE; OPTIONS 
SEC. 202. (a) The last sentence of section 206(d) (5) of the Regional 
Rail Reorganization Act of 1973 (45 U.S.C. 716(d) (5)) is amended by 
inserting immediately after "passenger service" the following: "or for 
purposes of providing rail marine freight floating service". 
(b) Section 303(c) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 743(c)) is amended by adding at the end thereof the 
following new paragraph: 
"(6) Whenever the Corporation exercises an option to acquire, or 
acquires, interests in rail marine freight floating equipment pursuant 
to the recommendations of the final system plan, and the Corporation 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2617 
thereafter makes such floating equipment available to a profitable 
railroad operating in the region, a State, or a responsible person 
including a government entity), the United States shall indemnify— 
" ( A ) the Corporation against any costs or liabilities imposed 
on the Corporation as the result of any judgment entered against 
it, with respect to such equipment, under paragraph (2) of this 
subsection; and 
"(B) such profitable railroad, State, or responsible person 
against any costs or liabilities imposed thereon as the result of any 
judgment entered agaiiist such profitable railroads, State, or 
responsible person under paragraph (3) of this subsection, 
plus interest on the amount of such judgment at such rate as is con-
stitutionally required.". 
(c) Section 206(d)(7) of the Eegional Eail Reorganization Act 
of 1973 (45 U.S.C. 716(d) (7)) is amended by inserting immediately 
after "acquisition" the following: "by the Corporation pursuant to the 
final system plan". 
LOANS FOR PAYMENT OF OBLIGATIONS 
SEC. 203. (a) Section 211(h) (1) of the Regional Rail Reorganiza-
tion Act of 1973 (45 U.S.C. 721 (h) (1)) is amended to read as folloAvs: 
"(h) 
LOANS FOR PAYMENT OF OBLIGATIONS.— (1) (A) 
The Associa-
tion is authorized, subject to the limitations set forth in section 210(b) 
of this title, to enter into loan agreements, in amounts not to exceed, Post, p. 2620. 
at any given time, $350,000,000 in the aggregate principal amount, 
with the Corporation, the National Railroad Passenger Corporation, 
and any profitable railroad to which rail properties are transferred 
or conveyed pursuant to section 303(b) (1) of this Act, under which 45 USC 743. 
the Corporation, the National Railroad Passenger Corpoi'ation, and 
any profitable railroad entering into such agreement will agree to 
meet existing or prospective obligations of the railroads in reorga-
nization in the region which the Association, in accordance with pro-
cedures established by the Association, determines should be paid by 
the Corporation, the National Railroad Passenger Corporation, or a 
profitable railroad, on behalf of such railroads in reorganization, in 
order to avoid disruptions in ordinary business relationships. Such 
obligations shall be limited to— 
"(i) amounts claimed by suppliers (including private car 
lines) of materials or services utilized or purchased in current 
rail operations ; 
"(ii) claims by shippers arising from current rail services; 
"(iii) payments to railroads for settlement of current inter-
line accounts and all other current accounts and obligations; 
"(iv) claims of employees arising under the collective-bargain-
ing agreements of the railroads in reorganization in the region 
and subject to section 3 of the Railway Labor Act (including 45 USC 153. 
claims for accrued vacation and wages and similar claims arising 
in connection with labor and services performed); 
"(v) claims of all employees or their personal representatives 
for personal injuries or death and subject to the provisions of 
Employers' Liability Act (45 U.S.C. 51-60); 
"(vi) amounts required for adequate funding of accrued pen-
sion benefits existing at the time of a conveyance or discontinuance 
of service under employee pension benefit plans described in sec-
tion 505 (a) of this Act; 
45 USC 775. 
90 STAT. 2618 
PUBLIC LAW 94-555—OCT. 19, 1976 
"(vii) amounts required to provide adequate funding for pay-
ment, when due, of claims deriving from membership in any 
employee voluntary relief plan which provides benefits to its 
members and their beneficiaries in the event of sickness, accident, 
disability, or death, and to which both a railroad in reorgani-
zation and employee members have made contributions; 
"(viii) amounts required to provide adequate funding for 
payment, when due, of medical and life insurance benefits for 
employees (whether or not their employment was governed by 
a collective bargaining agreement) on account of their service 
with a railroad in reorganization prior to the date of convey-
45 use 743. 
ance pursuant to section 803(b) (1) of this Act, and for individ-
uals who retired, prior to such date of conveyance, from service 
with a railroad in reorganization; 
"(ix) amounts required to discharge the obligations of each 
such railroad in reorganization to nonemployee claimants for 
personal injuries suffered during the period such railroad has 
been in leorganization; and 
"(x) amounts required to discharge any obligation of a rail-
road in reorganization in the region to the National Railroad 
Passenger Corporation, arising out of a contract between such 
railroad in reorganization and such Corporation under which 
such railroad in reorganization is required to provide a suitable 
rail passenger station, in any case in which such railroad in reor-
ganization sold a rail passenger station pursuant to a judicial 
order of condemnation prior to April 1, 1976. 
"(B) The Association shall make a loan pursuant to subparagraph 
(A) of this paragraph if, notwithstanding any other requirement of 
this subsection, it finds that the Corpration, the National Railroad 
Passenger Corporation, or a profitable railroad is entitled to a loan 
Post, pp. 2622, 
pursuant to section 303(b) (6), 604(e), or 504(g) of this Act, or if, 
2623. 
with respect to an obligation referred to in subparagraph (A) of this 
paragraph, it finds that— 
"(i) provision for the payment of such obligation was not 
included in the financial projections of the final system plan; 
"(ii) such obligation arose from rail operations prior to the 
date of conveyance of rail properties pursuant to section 303 
(b) (1) of this Act and is, under other applicable law, the respon-
sibility of a railroad in reorganization in the region, and a claim 
is presented to a railroad in reorganization in the region, or the 
Corporation within 2 years after the date of enactment of the 
Ante, p. 2616. 
Rail Amendments of 1976; 
"(iii) the Corporation, the National Railroad Passenger Cor-
poration, or a profitable railroad has advised the Association that 
the direct payment of such obligation by the Corporation, the 
National Railroad Passenger Corporation, or a profitable rail-
road is for services or materials, the furnishing of Avhicli served 
to avoid disruptions in ordinary business relationships prior to 
the date of conveyance of rail properties pursuant to section 303 
(b) (1) of this Act, or is necessary to avoid postconveyance dis-
ruptions in ordinary business relationships; 
"(iv) the transferor is unable to pay such obligation within a 
reasonable period of time; and 
"(v) with respect to loans made to the Corporation, the pro-
cedures to be followed by the Corporation, in seeking reim-
. V . ; t 
bursement from a railroad in reorganization in the region for an 
obligation paid on its behalf under this subsection, have been 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2619 
jointly agreed to by the Finance Committee and the Corporation, 
and the joint agreement— 
"(1) provides for the Corporation to receive reimburse-
ment from the Association for any expenses incurred in seek-
ing reimbursement from any railroad in reorganization in 
the region for an obligation paid on its behalf under this 
subsection; and 
"(II) includes a stipulation of the exact procedures the 
Corporation shall undertake to avoid the finding, referred 
to in paragraph (6)(A)(i) of this subsection, that it has 
not exercised due diligence.". 
(b) Section 211(h) (2) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721 (h) (2)) is amended— 
(1) by inserting immediately before the period at the end of the 
first sentence thereof the following: "and for the payment of only 
those accounts payable which relate to obligations of the estates 
identified in paragraph (1) of this subsection"; and 
(2) by adding at the end thereof the following new sentences: Jurisdiction. 
"Nothing in this subsection shall be construed as permitting any 
district court of the United States having jurisdiction over the 
reorganization of a railroad in reorganization in the region to 
enjoin, restrain, or limit the Corporation, the National Railroad 
Passenger Corporation, or a profitable railroad from applying, 
to payment of the obligations of the estates identified in para-
graph (1) of this subsection, amounts collected as (A) accounts 
receivable pursuant to this paragraph, (B) cash or other current 
assets identified pursuant to paragraph (3) of this subsection, 
or (C) proceeds of loans pursuant to paragraph (1) of this sub-
section. Any agency agreement executed prior to the date of the 
enactment of the Rail Transportation Improvement Act shall be Ante, p. 2613. 
deemed amended to the extent necessary to conform such agree-
ment or order to the provisions of this paragraph. Nothing in 
this paragraph shall be construed to affect any payment made 
prior to such date of enactment with respect to obligations other 
than those identified in paragraph (1) of this subsection.". 
? ' 
; » 
(c) Section 211(h) (4) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 721(h) (4)) is amended by adding at the end thereof 
the following new subparagraph: 
"(D) (i) Except as provided in clause (ii] of this subparagraph, 
any funds held in an escrow account by a railroad in reorganization 
on the date of enactment of the Rail Transportation Improvement Act 
which are thereafter determined to be cash and other current assets of 
the estate of such railroad in reorganization, for purposes of para-
graph (3) of this subsection, shall be applied as follows— 
" (I) first, to the reduction of any outstanding loans to the Cor-
poration by the Association, pursuant to paragraph (1) of this 
subsection, the proceeds of which were used to discharge obliga-
tions of such railroad in reorganization; 
"(II) second, to the Association to the extent of any such loans 
which have been forgiven pursuant to paragraph (5) of this sub-
section ; and 
"(III) third, to the payment of any remaining obligations of 
such railroad in reorganization, in accordance with the provision 
of the agency agreement entered into pursuant to paragraph (2) 
of this subsection, 
"(ii) The manner of disposition set forth in clause (i) of this sub-
paragraph shall not apply with respect to a railroad in reorganization 
90 STAT. 2620 
PUBLIC LAW 94-555—OCT. 19, 1976 
if the Secretary (I) determines that a different disposition of assets is 
necessary to carry out a reorganization plan of such railroad in reorga-
nization, and that such different disposition adequately protects the 
interests of the United States, and (II) transmits his determination to 
the court having jurisdiction over the reorganization of such railroad.". 
Administrative 
(d) Section 211(h)(5)(B) of the Regional Rail Reorganization 
expense, proof 
Act of 1973 (45 U.S.C. 721 (h) (5) (B)) is amended by adding at the 
of claim, filing. ^^^ thereof the following new sentences: "The Corporation, the 
National Rail Passenger Corporation, or a profitable railroad, as the 
case may be, shall, with respect to each direct claim for reimbursement 
pursuant to paragraph (4) of this subsection, file a proof of adminis-
trative expense claim with the trustees of the railroad in reorganization 
from whom reimbursement is sought. Each such proof of administra-
tive expense claim shall set forth, by category and amount, the obliga-
tions of such railroad in reorganization which were paid pursuant to 
such paragraph (4).". 
(e) The first sentence of section 210(b) of the Regional Rail Reor-
ganization Act of 1973 (45 U.S.C. 720(b)) is amended to read as 
follows: "The aggregate principal amount (exclusive of interest or 
additions to principal on account of accrual of interest) of obligations 
issued by the Association under this section which may be outstanding 
at any one time shall not exceed $395,000,000.". 
PROTECTION OF EMPLOYEES' PENSION BENEFITS 
SEC. 204. Section 303(b)(6) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 743(b) (6)) is amended by striking out the 
period at the end of the last sentence thereof and inserting in lieu 
thereof the following: ", except that in any case in which the Corpora-
tion, on or after the date of transfer or assignment as provided by this 
paragraph, terminates in whole or in part any such plan, the benefits 
under which are not guaranteed under title IV of the Employee Retire-
29 use 1301. 
ment Income Security Act of 1974, the Corporation shall guarantee the 
payment when due of the accrued pension benefits provided for there-
under at the time of termination. The Corporation shall be entitled 
Ante, p. 2617. 
to a loan pursuant to section 211(h) of this Act in an amount required 
for the adequate funding of accrued pension benefits under all plans 
transferred or assigned to the Corporation in accordance with this 
paragraph (whether or not terminated by the Corporation). For pur-
poses of such section 211(h) and notwithstanding any other provision 
of Federal or State law, amounts required for such adequate funding 
shall be deemed to be expenses of administration of the respective 
estates of the railroads in reorganization, due and payable as of the 
date of transfer or assignment of the plans to the Corporation.". 
EVIDENTIARY USE OF CERTAIN DETERMINATIONS; REIMBURSEMENT 
FOR RAIL SERVICE 
Sec. 205. (a) Section 304(d) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 744(d)) is amended by adding at the end 
thereof the following new paragraph: 
"(4) No determination of reasonable payment for the use of rail 
properties of a railroad in reorganization in the region, and no deter-
mination of value of rail properties of such a railroad (including 
supporting or related documents or reports of any kind) which is 
made in connection with any lease agreement, contract of sale, or 
other agreement or understanding which is entered into after the date 
of enactment of the Rail Transportation Improvement Act— 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2621 
" (A) pursuant to this section; or 
"(B) pursuant to section 402 of this Act or section 17 of the 45 U
S
C 562. 
Urban Mass Transportation Act of 1964 (49 U.S.C. 1613), 
shall be admitted as evidence, or used for any other purpose, in any 
civil action, or any other proceeding for damages or compensation, 
arising under this Act.". 
(b) Section 304(e) (5) of the Kegional Rail Reorganization Act of 
1973 (45 U.S.C. 744(e)) is amended by redesignating subparagraph 
(C) thereof as subparagraph (D), and by inserting immediately after 
subparagraph (B) thereof the following new subparagraph,: 
"(C) For purposes of the obligation of the Secretary to reimburse 
the Corporation (or a profitable railroad) or States, local public 
bodies, and agencies thereof under subparagraphs (A) and (B) of 
this paragraph, the level of rail passenger service shall be determined 
on the basis of train miles, car miles, or some other appropriate indicia 
of scheduled train movements. Programs to correct deferred mainte-
nance on rolling stock, right-of-way, and other facilities which are 
designed to maintain service, meet on-time performance, and maintain 
a reasonable degree of passenger comfort (and costs incurred incident 
thereto) shall be included within the meaning of the term "loss" as 
used in subparagraph (A) of this paragraph and within the meaning 
of the term "additional costs" as used in subparagraph (B) of this 
paragraph and section 17(a) (2) of the Urban Mass Transportation 
Act of 1964 (49 U.S.C. 1613(a) (2)).". 
AUTHORITY OF THE INTERSTATE COMMERCE 
COMMISSION 
SEC. 206. Section 304( j) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 744(j) is amended— 
(1) by striking out paragraph (1) thereof and inserting in lieu 
thereof the following: "(1) (A) Except as provided in subpara-
graph (B) of this paragraph, no local public body which 
provides mass transportation services by rail, and which is other-
wise subject to the Interstate Commerce Act shall, with respect 
to the provision of such services, be subject to the Interstate 
Commerce Act or to rules, regulations, and orders promulgated 
under such Act, if the interstate fares, or the ability to apply 
to the Interstate Commerce Commission for changes thereto, of 
such local public body is subject to approval or disapproval by 
a Governor of any State in which it provides services. 
"(B) Any local public body described in subparagraph (A) of 
this paragraph shall continue to be subject to applicable Federal 
laws pertaining to (i) safety, (ii) the representation of employees 
for purposes of collective bargaining, and (iii) employment 
retirement, annuity, and unemployment systems or any other pro-
vision pertaining to dealings between employees and employers." ; 
and 
(2) by striking out paragraph (2) (B) thereof and inserting in 
lieu thereof the following: 
"(B) 'mass transportation services' means transportation serv-
ices described in section 12(c) (5) of the Urban Mass Transporta-
tion Act (49 U.S.C. 1608(c)(5)) which are provided by rail.". 
49 U
S
C prec. 1 
note. 
"Mass trans-
portation 
services." 
REPLACEMENT OPERATORS 
SEC. 207. (a) Section 501 of the Regional Rail Reorganization Act 
of 1973 (45 U.S.C. 771) is amended— 
90 STAT. 2622 
PUBLIC LAW 94-555--OCT. 19, 1976 
(1) by striking out "and" at the end of paragraph (9) thereof; 
(2) by striking out the period at the end of paragraph (10) 
thereof, and inserting in lieu thereof "; and"; and 
"Replacement 
(3) by adding at the end thereof the following new paragraph: 
operator." 
"(H) 'replacement operator'means— 
"(A) a State which has acquired all or part of the rail proper-
ties of any railroad in reorganization in the region and which 
intends to replace any class I railroad as the operator of rail serv-
ice over such rail properties; or 
"(B) any class I railroad which is designated, by a State which 
has acquired such rail properties, to replace the State or any other 
class I railroad as the operator of rail service over such rail 
properties.". 
(b) Section 504(f) (3) of the Kegional Eail Eeorganization Act of 
1973 (45 U.S.C. 774(b) (3)) is amended— 
(1) in the first sentence thereof, by striking out "shall upon 
transfer" and all that follows through "status." and inserting in 
lieu thereof the following: ", or as a result of the designation of 
a replacement operator, shall, upon transfer to the National Rail-
road Passenger Corporation, an acquiring railroad, or a replace-
ment operator, carry with him his protected status."; and 
(2) in the second sentence thereof by striking out "or an acquir-
ing railroad," and inserting in lieu thereof ", an acquiring rail-
road, or a replacement operator,". 
(c) Section 509 of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 779) is amended— 
(1) by inserting immediately after "the Association (where 
applicable)," each time it appears the following: "replacement 
operators,"; and 
(2) in the third sentence thereof, by inserting immediately 
after "the Corporation nor" the following: "a replacement 
operator nor". 
COLLECTIVE BARGAINING AND TELA CLAIMS 
SEC. 208. (a) Section 504(e) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 774 (e)) is amended— 
(1) by striking out the period at the end of the first sentence 
thereof, and inserting in lieu thereof the following: ", to the 
extent that such claims are determined by the Association to be 
the obligation of a railroad in reorganization in the region."; and 
(2) by inserting immediately after the first sentence thereof 
the following new sentences: "Any liability of an estate of a rail-
road in reorganization to its employees which is assumed, 
processed, and paid, pursuant to this subsection, by the Corpora-
tion, the National Railroad Passenger Corporation, or an acquir-
ing carrier shall remain the preconveyance obligation of the estate 
Ante, p. 2617. 
of such railroad for purposes of section 211(h) (1) of this Act. 
The Corporation, the National Railroad Passenger Corporation, 
an acquiring carrier, or the Association, as the case may be, shall 
be entitled to a direct claim as a current expense of administration, 
in accordance with the provisions of section 211(h) of this Act 
(other than paragraph (4) (A) thereof), for reimbursement 
(including costs and expenses of processing such claims) from the 
estate of the railroad in reorganization on whose behalf such 
obligations are discharged or paid.". 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2623 
(b) Section 504(g) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 774(g)) is amended— 
(1) by striking out the period at the end of the last sentence 
thereof and inserting in lieu thereof the following:", to the extent 
that such claims are determined by the Association to be the 
obligation of such railroad."; and 
(2) by adding at the end thereof the following new sentences: 
"Any liability of an estate of a railroad in reorganization which 
is assumed, processed, and paid, pursuant to this subsection, by 
the Corporation or an acquiring railroad shall remain the pre-
conveyance obligation of the estate of such railroad for purposes 
of section 211(h) (1) of this Act. The Corporation, an acquiring Ante, p. 2617. 
railroad, or the Association, as the case may be, shall be entitled 
to a direct claim as a current expense of administration, in accord-
ance with the provisions of section 211(h) of this Act (other than 
paragraph (4) (A) thereof), for reimbursement (including costs 
and expenses of processing such claims) from the estate of the 
railroad in reorganization on whose behalf such obligations are 
discharged or paid.". 
EMPLOYEE DISPLACEMENT ALLOWANCE 
SEC. 209. (a) Section 505(b) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 775 (b)) is amended— 
(1) in paragraph (1) thereof, by striking out "February 26, 
1975" and inserting in lieu thereof "January 1,1975"; 
(2) in paragraph (3) thereof, by striking out "February 26, 
1975" and inserting in lieu thereof "January 1, 1975"; and 
(3) in paragraph (4) thereof, by striking out "February 26, 
1975" and inserting in lieu thereof "January 1, 1975". 
(b) Section 505(b)(1)(B) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 775(b) (1) (B)) is amended by inserting imme-
diately after "(B)" the following: "with respect to a protected 
employee who has been deprived of his employment,". 
NOXCONTRACT EMPLOYEES 
SEC. 210. (a) Section 505 (i) (2) of the Regional Rail Reorganiza-
tion Act of 1973 (45 U.S.C. 775 (i)(2)) is amended by inserting 
immediately after the first sentence thereof the following new sjentence: 
"Such resolution procedure shall be the exclusive means available to 
the parties for resolving such dispute, and any arbitration decision 
rendered shall be final and binding on all parties.". 
(b) Section 505(i) of the Regional Rail Reorganization Act of 1973 
(45 U.S.C. 775 (i)) is amended by adding at the end thereof the fol-
lowing new paragraph: 
" (3) Except as otherwise provided in this title, a protected employee 
whose employment is not governed by the terms of a collective bar-
gaining agreement and who has been deprived of employment shall 
not, during the period in which he is entitled to protection, be placed 
in a worse position with respect to any voluntary relief plan benefits 
or preretirement benefits provided under any life or medical insurance 
plan, except that the level of benefits to which such an employee is 
entitled under this paragraph shall not exceed the level of benefits 
which is afforded to the Corporation's active noncontract employees of 
comparable age, position, and level of compensation.". 
90 STAT. 2624 
PUBLIC LAW 94-555—OCT. 19, 1976 
(c) Section 505(b) (4) of the Kegional Kail Reorganization Act of 
1973 (45 U.S.C. 775(b) (4)) is amended by adding at the end thereof 
the following new sentence: "This paragraph shall not apply to any 
noncontract employee whose noncontract position has been abolished.". 
UNITED STATES RAILWAY ASSOCIATION BOARD MEMBERSHIP 
SEC. 211. (a) Section 102(16) of the Regional Rail Reorganization 
Act of 1973 (45 U.S.C. 702(16)) is amended by striking out "the duly 
authorized representatives of either of them" and inserting in lieu 
thereof ", in his absence, the Deputy Secretary of Transportation". 
(b) Section 201(d) (2) of such Act (45 U.S.C. 711) is amended by 
striking out "their duly authorized representatives" and inserting in 
lieu thereof "the Deputy Secretary of Transportation, the Vice Chair-
man of the Commission, or the Deputy Secretary of the Treasury, as 
the case may be". 
(c) Section 201(h) of such Act (45 U.S.C. 711(h)) is amended by 
striking out the second sentence thereof. 
(d) Section 201 (i) of such Act (45 U.S.C. 711 (i)) is amended, in 
the first sentence thereof, by striking out "duly authorized representa-
tives" and inserting in lieu thereof "Deputy Secretaries". 
(e) Section 201 (j) (4) of such Act (45 U.S.C. 711 (j) (4)) is amended 
to read as follows: "Any reference in this Act to the Secretary of the 
Treasury is to the Secretary of the Treasury or the person who is at the 
time performing the duties of the Office of the Secretary of the 
Treasury in accordance with law or, in his absence, the Deputy Sec-
retary of the Treasury. Any reference in this Act to the Chairman of 
the Commission is to the Chairman of the Commission or the person 
who is at the time performing the duties of the Chairman of the Com-
mission in accordance with law.". 
FINANCIAL ASSISTANCE 
SEC. 212. (a) Section 505(a) of the Railroad Revitalization and 
Ante, p. 71. 
Regulatory Reform Act of 1976 (45 U.S.C. 825(a)) is amended to 
read as follows: 
"SEC. 505. (a) I N GENERAL.—Any railroad may apply to the Sec-
retary, following the date of enactment of this Act and in accord-
ance with regulations promulgated by the Secretary, for financial 
assistance for facilities rehabilitation and improvement financing 
and for such other financial assistance as may be approved by the 
Secretary. Any regulations promulgated by the Secretary pursuant 
to this section shall include specific and detailed standards in accord-
ance with which the Secretary shall conduct the evaluations and make 
the determinations required in subsection (b) (2) of this section.". 
PRIORITY OF REDEEMABLE PREFERENCE SHARES 
SEC. 213. Section 506(a) (2) of the Railroad Revitalization and 
Ante, p. 73. 
Regulatory Reform Act of 1976 (45 U.S.C. 826(a) (2)) is amended— 
(1) in clause (i) thereof, by inserting immediately after 
"whenever issued," the following: "except that the Secretary may 
make any such redeemable preference share subordinate to any 
common stock which was issued as a result of an exchange for 
securities which were senior in right to common stock, if (I^ 
such exchange took place pursuant to a court-approved reorgani-
zation plan under section 77 of the Bankruptcy Act (11 U.S.C. 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2625 
205), and (II) the railroad subject to such reorganization plan 
was in reorganization under such section 77 prior to the date of H USC 205. 
enactment of this Act,"; 
(2) in clause (iii) thereof, by inserting immediately after 
"other than common stock" the following: "(except in those 
cases in which the Secretary has provided for subordination pur-
suant to clause (i) of this paragraph) which is"; 
REDEMPTIOISr PAYMENTS AND INTEREST RATE 
SEC. 214. (a) Section 506(a) (4) of the Kailroad Revitalization and 
Regulatory Reform Act of 1976 (45 U.S.C. 826(a) (4)) is amended Ante, p. 73. 
by striking out the period at the end thereof and inserting in lieu 
thereof the following: "and, except to permit the railroad to prepay 
its redemption payments, the number of such annual redemption pay-
ments shall in no event be less than 15; and". 
(b) Section 506(a) of the Railroad Revitalization and Regula-
tory Reform Act of 1976 (45 U.S.C. 826(a)) is amended by adding 
at the end thereof the following new paragraph: 
"(5) the proceeds from the issuance of which are to be 
expended solely to reduce the deferred maintenance on facilities, 
shall in no event yield (A) less than the minimum permissible 
yield determinable in accordance with paragraphs (3) and (4) 
of this subsection, nor (B) more than such railroad's rate of 
return on total capital (represented by the ratio which such car-
rier's net income, including interest on long-term debt, bore to 
the sum of the average shareholder's equity, long-term debt, and 
accunuilated deferred income tax credits for the three fiscal years 
preceding the date of submission of the application) as deter-
mined in accordance with the uniform system of accounts pro-
mulgated by the Commission in those cases in which such rate of 
return exceeded such minimum permissible yield.". 
OBLIGATION GUARANTEES 
SEC. 215. (a) Section 511 of the Railroad Revitalization and Regu-
latory Reform Act of 1976 (45 U.S.C. 831) is amended by striking out Ante, p. 76. 
subsection (c) thereof and inserting in lieu thereof the following new 
subsection: 
"(c) FULL. FAITH AND CREDIT.—All guarantees entered into by the 
Secretary under this section shall constitute general obligations of the 
United States of America backed by the full faith and credit of the 
United States of America.". 
(b) Section 511(h) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(h)) is amended— 
(1) in paragraph (1) thereof, by inserting "(A)" immediately 
after "secured", and by inserting immediately before the semi-
colon the following ", or (B) in the case of the rehabilitation or 
improvement of leased equipment, by the lease"; and 
(2) by amending paragraph (5) thereof to read as follows— 
"(5) the prospective earning power of the applicant, or the 
value or prospective earning power of any equipment or facilities 
to be improved, rehabilitated, or acquired (or any combination 
of the foregoing), together with any other security offered by the 
applicant, is sufficient to provide the United States with reason-
able security and protection, except that if the value or prospec-
tive earning power of such equipment or facilities is equal to or 
90 STAT. 2626 
PUBLIC LAW 94-555—OCT. 19, 1976 
greater than the amount of the obligation to be guaranteed, the 
Secretary may not, on the basis of the lack of prospective earning 
power of the applicant, find that the United States will not be 
provided with the reasonable security and protection referred to 
in this paragraph; and". 
Ante, f. 76. 
(c) Section 511 (j) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831 (j)) is amended to read as follows: 
"(j) CONDITIONS OF GUARANTEES.—(1) The Secretary shall, before 
making, approving, or extending any guarantee or commitment to 
guarantee any obligation under this section, require the obligor to 
agree to such terms and conditions as are sufficient, in the judgment 
of the Secretary, to assure that, as long as any principal or interest is 
due and payable on such obligation, such obligor— 
"(A) will not make any discretionary dividend payments, 
except as provided in paragraph (2) of this subsection; and 
"(B) will not use any funds or assets from railroad operations 
for nonrail purposes, 
if such payments or use will impair the ability of such obligor to pro-
vide rail services in an efficient and economic manner or will adversely 
effect the ability of such obligor to perform any obligation guaranteed 
by the Secretary. 
"(2) An obligor shall not be restricted with respect to making divi-
dend payments from its net income for any fiscal year, if such pay-
ments do not exceed— 
" (A) when compared to the net income of such obligor for such 
fiscal year, the ratio which aggregate dividends paid by such 
obligor, during the 5 fiscal years prior to the granting of the earli-
est loan guarantee then outstanding under this section, bore to 
aggregate net income of such obligor for such period; or 
"(B) 50 per centum of the total additions to the retained 
income of such obligor (computed on a cumulative basis and giv-
ing cognizance to dividends paid) during the period commencing 
with the fiscal year prior to the granting of the earliest loan guar-
antee then outstanding under this section, 
whichever is greater. 
"(3) The restrictions set forth in paragraphs (1) of this subsection 
shall not apply with respect to an obligation guaranteed under this 
section if, in the event of a default by the obligor, the Secretary would 
be subrogated to the rights of the lender under section 77(j) of the 
11 use 205. 
Bankruptcy Act.". 
(d) Section 511 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831) is amended by striking out sub-
section (g) thereof and redesignating subsections (h) through (n) 
thereof as subsections (g) through (m), respectively. 
REHABILITATION AND FINANCING AMENDMENTS 
SEC. 216. (a) Section 505(b)(2) of the Railroad Revitalization 
Ante, ^.71. 
and Regulatory Reform Act of 1976 (45 U.S.C. 825(b)(2)) is 
amended— 
(1) by inserting in the third sentence thereof, immediately after 
"shall" the following: "evaluate and"; 
(2) by inserting immediately after "financed" in clause (A) the 
following: "and the railroad's rate of return on total capital (rep-
resented by the ratio which such carriers net income, including 
interest on long-term debt, bore to the sum of average sharehold-
er's equity, long-term debt, and accumulated deferred income tax 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2627 
for fiscal year 1975) as determined in accordance with the uniform 
system of accounts pronmlgated by the Commission"; and 
(3) by inserting immediately after the third sentence thereof 
the following new sentence: "Except as provided in the last sen-
tence of this paragraph, the Secretary, in determining the extent 
to which a project will provide public benefits, shall give the high-
est priority to projects which will enhance the ability of the appli-
cant carrier or other carriers to provide essential freight services.". 
(b) Section 503(e) of the Kailroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 823(e)) is amended by striking out Ante, p. 69. 
"60" and inserting in lieu thereof "150". 
(c) Section 504(b) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 824(b)) is amended— 
Ante, p. 70. 
(1) by striking out "360" and inserting in lieu thereof "540"; 
and 
(2) by inserting in paragraph (A) thereof, immediately after 
"needs," the following: "the projected gross national product, the 
ix)tential demand for rail service and the types of service capable 
of meeting that potential demand, the potential revenues and 
costs (including capital costs associated with those levenues), the 
demand for rail services for which the railroads could compete 
on an economic basis, the probable sources of funding for the 
capital costs of providing those services, and which of those costs 
must be provided by public financing,". 
(d) Section 509 of the Railroad Revitalization and Regulatoiy 
Reform Act of 1976 (45 U.S.C. 829) is amended by striking out "Sep- Ante, p. 76. 
tember 30, 1978" and inserting in lieu thereof "March 31, 1979". 
(e) Section 901 of the Railroad Revitalization and Re.q-ulatorv 
Reform Act of 1976 (49 U.S.C. 1654 note) is amended by striking out Ante, p. 147. 
"540" and inserting in lieu thereof "720". 
NORTHEAST CORRIDOR ACQUISITIONS 
SEC. 217. (a) Section 704(a) (3) (B) of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 854(a)(3)(B)) is Ante,f. 122. 
amended by striking out "$85,182,956" and inserting in lieu thereof 
"$120,000,000". 
(b) Section 704(a) (3) of the Railroad Revitalization and Regula-
tory Reform Act of 1976 (45 U.S.C. 854(a)(3)) is amended by 
adding at the end thereof the following: 
"Amounts appropriated pursuant to subparagraphs (B) and (D) 
of this paragraph shall be used first for the repayment, with interest, 
of that portion of obligations issued by the National Railroad Pas-
senger Corporation and guaranteed pursuant to section 602 of the Rail 
Passenger Service Act (34 U.S.C. 602), the proceeds of which have 
45 USC 602. 
been used for the payment of expenses resulting from the acquisition of 
the properties referred to in such subparagraphs (B) and (D).", 
(c) Section 704 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 854) is amended by adding at the 
end thereof the following new subsections: 
"(e) NOTE AND MORTGAGE.—In order to protect and secure the 
expenditure of funds by the United States on account of the acquisi-
tion and improvement of properties designated under section 206 
(c) (1) (C) and (D) of the Regional Rail Reorganization Act of 
1973 (45 U.S.C. 716(c)(1) (C) and (D)), the Secretary is author-
ized to obtain a note of indebtedness from, and to enter into a mort-
gage agreement with, the National Railroad Passenger Corporation 
90 STAT. 2628 
PUBLIC LAW 94-555—OCT. 19, 1976 
in order to establish a mortgage lien on such properties for the United 
States securing such expenditure. Such note and mortgage shall not 
infringe upon or supersede the authority conferred upon the National 
Ante, p. 119. 
Railroad Passenger Corporation by section 701 of this Act. 
45 use 851. 
"(f^ 
EXEMPTION AND IMMUNITY.—Any agreement, security, or 
obligation obtained by the Secretary pursuant to subsection (e) of 
this section, and any transaction in connection with any such agree-
ment, security, or obligation, shall be exempt from the provisions 
of the Interstate Commerce Act (49 U.S.C. 1 et seq.), the Securities 
Act of 1933 (15 U.S.C. 77a et seq.), and any other Federal, State, 
or local law or regulation which regulates securities or the issuance 
thereof. Any such agreement, security, obligation, or transaction shall 
enjoy all of the immunities from other laws which section 601 of 
the Regional Rail Reorganization Act of 1973 (45 U.S.C. 791) accords 
to transactions which are in compliance with or implement the final 
system plan. The conveyance or transfer of rail properties resulting 
from any such agreement, security, obligation, or transaction shall 
enjoy the same exemptions, privileges, and immunities which the 
Regional Rail Reorganization Act of 1973 (including section 303(e) 
thereof) accords to conveyances ordered or approved by the special 
court under section 306(b) of such Act (45 U.S.C. 743(b)). 
" ( g ) PROTECTION FROM LIABILITY.—The Corporation, its Board 
of Directors, and its individual directors shall not be liable to any 
party for any damages, or in any other manner, by reason of the 
fact that the Corporation has given or issued a security or obligation 
to the United States pursuant to the provisions of subsection (e) of 
this section. The immunity granted by this subsection shall also 
extend to any agreement entered into by the Corporation pursuant 
to such subsection (e) and to any transaction in connection with. 
The United States shall indemnify the Corporation, its Board of 
Directors, and its individual directors against all costs and expenses 
(including fees of accountants, experts, and attorneys) actually and 
reasonably incurred in defending any litigation testing the legal 
validity of any security, obligation, agreement, or transaction, given, 
issued, or entered into pursuant to such subsection (e).". 
DISCONTINUANCE AND ABANDONMENT PROCEDURES 
SEC. 218. (a) Section l a ( l ) of the Interstate Commerce Act (49 
TT.S C l a ( l ) ) i'^ -Imended by adding; at the end thereof the following 
new sentence: "The authority granted to the Commission under this 
section shall not apply to (a) abandonment or discontinuance with 
respect to spur, industrial, team, switching, or side tracks if such 
tracks are located entirely within one State, or (b) any street, sub-
urban, or interurban electric railway which is not operated as part 
of a general system of rail transportation.". 
(b) Section la(4) of the Interstate Commerce Act (49 U.S.C. 
la (4)) is amended— 
(1) by adding immediately before the last sentence thereof 
the following new sentence "If such certificate is issued without 
an investigation pursuant to paragraph (3) of this section, actual 
abandonment or discontinuance may take effect, in accordance 
with such certificate, 30 days after the date of issuance thereof."; 
and 
(2) in the last sentence thereof, by inserting immediately after 
"issued" the following: "after an investigation pursuant to such 
paragraph (3)". 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2629 
PRESERVATION OF HISTORICAL RAIL FACILITIES 
SEC. 219. (a) Section 4(i)(9) of the Department of Transportation 
Act (49 U.S.C. 1653) is amended by— 
(1) Striking out "$5,000,000" in clauses (ii) and (iii) of sub-
paragraph (A) thereof and inserting in lieu thereof "2,500,000"; 
(2) striking out subparagraph (B) thereof and redesignating 
subparagraph (C) thereof as subparagraph (B) thereof. 
(b) Section 11(a)(1) of the National Foundation on the Arts Appropriation 
and the Humanities Act of 1965 (20 U.S.C. 960(a) (1)) is amended authorization, 
by adding after subparagraph (B) thereof the following new sub-
paragraph : 
"(C) There are authorized to be appropriated to the National 
Endowment for the Arts for the fiscal year ending September 30, 
1977, not to exceed— 
"(i) $2,500,000 for planning pursuant to paragraph (1) (D) 
of section 4(i) of the Department of Transportation Act (49 
U.S.C. 1652(i)), 
^ 
49 use 1653. 
"(ii) $2,500,000 for interim maintenance pursuant to para-
graph (1) (B) of such section 4(i); and 
"(iii) $250,000 for administrative expenses. 
Sums appropriated for the purposes of this subparagraph shall 
remain available until expended.". 
TECHNICAL AMENDMENTS 
SEC. 220. (a) Section 211(h) (6) (A) (i) of the Regional Rail 
Reorganization Act (45 U.S.C. 721(h) (6) (A) (i)) is amended by 
striking out "paragraph (1) (E)" and inserting in lieu thereof "para-
graph. (l).(B) (v)". 
(b) Section 303(c) of the Regional Rail Reorganization Act of 
197^^(45 U.S.C. 743(c)) is amended— 
; (1) in paragraph (2) (A) thereof, by striking out "securities, 
certificates of value of the Corporation" and inserting in lieu 
thereof "securities and certificates of value"; 
(2) in paragraph (2) (A) thereof, by striking out "it has" 
and inserting in lieu thereof "they have"; 
(3) in paragraph (2) (B) thereof, by striking out "Corpo-
ration's securities, certificates of value" and inserting in lieu 
thereof "securities and certificates of value"; 
(4) in paragraph (2) (B) thereof, by striking out "other secu-
rities, certificates of value" and inserting in lieu thereof "other 
securities"; and 
(5) in the fourth sentence of paragraph (3) thereof, by strik-
ing out "section 303(a) (2)" and inserting in lieu thereof "subsec-
tion (a) (2) of this section". 
(c) Section 308(d)(2) of the Railroad Revitalization and Regu-
latory Reform Act of 1976 (15 U.S.C. 80a-3 note) is amended by Ante, p. 56. 
striking out "subsection (c)" and inserting in lieu thereof "subsection 
(d) Section 504(a) (2) of the Railroad Revitalization and Regu-
latory Reform Act of 1976 (45 U.S.C. 824(a)) is amended by insert- Ante, p. 70. 
ing "and equipment" immediately after "railroad's facilities". 
(e) The first sentence of section 511(a) of the Rail Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 831(a)) is amended 
by inserting immediately before the period at the end thereof the 
following: ", or to develop or establish new railroad facilities". 
90 STAT. 2630 
PUBLIC LAW 94^555—OCT. 19, 1976 
Ante, i>. 76. 
(f) Section 511(h) of the Rail Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(h)) is amended by striking out 
"PREQUISITES FOR GUARANTEES." 
and 
inserting 
in 
lieu 
thereof 
"PREREQUISITES FOR GUARANTEES.". 
(g) Section 809(a)(1) of the Railroad Revitalization and Reg-
49 use la note, 
ulatory Reform Act of 1976 (45 U.S.C. la note) is amended by 
striking out "abandoned" and inserting "abandoned since 1970'' 
immediately^ after "railroad right-of-way". 
(h) Section 901(8) of the Railroad Revitalization and Regulatory 
49 use 1654 
Reform Act of 1976 (49 U.S.C. 1654(8)) is ain^nded to read as 
note. 
follows: 
; 
" (8) a survey and analysis of the railroad industry in the United 
States to determine its financial condition and the physical con-
dition of its facilities, rolling stock, and equipment.", 
(i) The second sentence of section 5(16) of the Interstate Com-
merce Act (49 U.S.C. 5(16)) is amended by striking out "paragraph 
(16)" and inserting in lieu thereof "paragraph (17)'. 
(j) The first sentence of section 17(9) (e) of the Interstate Com-
merce Act (49 U.S.C. 17(9) (e)) is amended by striking out "section" 
and inserting in lieu thereof "paragraph". 
(k) Section 5b(5) (a) (iii) of the Interstate Commerce Act (49 
49 use 5c. 
U.S.C. 5b(5) (a) (iii)) is amended by striking out "section 15(7)" and 
inserting in lieu thereof "section 15(8)". 
(1) Section 13(5) of the Interstate Commerce Act (49 U.S.C. 13 
(5)) is amended by adding at the end thereof the following: 
"Nothing in this paragraph shall affect the authority of the Com-
mission to institue an investigation or to act in such investigation as 
provided in paragraphs (3) and (4) of this section.". 
(m) The final sentence of section 15(19) of the Interstate Com-
merce Act (49 U.S.C. 15(19)) is amended by striking out "section 
2" and inserting in lieu thereof "section 1, 2". 
(n) Section 22(2) of the Interstate Commerce Act (49 U.S.C. 22 
(2)) is amended— 
(1) by inserting immediately after "under section 5a" the fol-
lowing: "or section 5b"; and 
(2) by striking out "said section 5a" and inserting in lieu 
thereof "such section 5a or paragraph (8) of such section 5b". 
(o) Part I of the Interstate Commerce Act (49 U.S.C. 1 et seq.) 
49 use 26c. 
is amended by inserting immediately before section 28 the following 
center heading: 
"DISCRIMINATORY STATE TAXATION". 
T I T L E I I I — G E N E R A L P R O V I S I O N S 
ENVIRONMENTAL STUDY 
Report to 
SEC. 301. The Secretary of Health, Education, and Welfare, in 
Congress. 
consultation with the Interstate Conunerce Commission and the Sec-
^^•^^^ ^ ^ 
retary of Ti'ansportation, shall submit a report to the Congress within 
18 months after the enactment of this Act concerning (1) the risk 
of outbreaks of disease or illnesses and any other adverse environ-
mental effects resulting from the discharge of waste from railroad 
conveyances operated in intercity rail passenger service, in rail com-
muter service, and in rail freight service, and (2) the financial and 
operating hardships on railroads or public authorities which would 
note. 
PUBLIC LAW 94-555—OCT. 19, 1976 
90 STAT. 2631 
result from a prohibition of waste disposal. Such report shall con- Recommenda-
tain such recommendations as the Secretary of Health, Education, tions. 
and Welfare, the Interstate Commerce Commission, or the Secretary 
of Transportation considers appropriate to balance possible dangers 
of disease or illness and environmental considerations with operating 
or financial considerations relevant to the railroad industry, including 
any distinction considered appropriate between new railroad rolling 
stock and existing railroad rolling stock, and shall consider any reg-
ulations pertaining to waste disposal from railroad conveyances oper-
ated in other Nations. 
DELMARVA RAIL STUDY 
SEC. 302. The Interstate Commerce Commission shall, within 6 Report to 
months after the date of enactment of this Act, submit a report to the Congress. 
Congress with respect to the problems of, and need for, rail trans- *^ ^^^ ^^^ 
portation services on the Delaware-Maryland-Virginia peninsula. Such ^°^^' 
report shall include— 
(1) an analysis of why the acquisitions proposed under the final 
system plan with respect to rail properties on such peninsula were 
not consummated; and 
(2) recommendations with respect to the continuation or 
extension of viable rail transportation service on such peninsula. 
EFFECTIVE DATE 
SEC. 303. The provisions of this Act and the amendments made by 45 USC 543 note, 
this Act shall take effect on October 1,1976. 
Approved October 19, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1168 accompanying H.R. 13601 and No. 94-1479 
accompanying H.R. 14932 (both from Comm. on Interstate and 
Foreign Commerce) and No. 94-1743 (Comm. of Conference). 
SENATE REPORT No. 94-851 (Comm. on Commerce). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
June 9, 11, H.R. 13601 considered and passed House. 
Sept. 1, considered and passed Senate, in lieu of H.R. 13601. 
Sept. 27, considered and passed House, amended, in lieu of H.R. 14932. 
Sept. 30, Senate agreed to conference report. 
Oct. 1, House agreed to conference report.