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United States · Law · S

S. 1946 (96th)

Staggers Rail Act of 1980

openUnited States· United States Congress· EN

Introduced

29 October 1979

Last action

—

Status

Public Law 96-448.

Sponsors

—

Subjects

Discovery layer

Source updated

14 January 2025

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Summary

Railroad Transportation Policy Act of 1979 - Directs the Interstate Commerce Commission, in regulating rail transportation, to consider the following as being in the public interest: (1) the development of an efficient freight transportation system, in the private sector, in which various modes of transportation are subject to impartial regulation; (2) the maximum reliance on competitive market forces on all transportation modes to provide transportation services; (3) the avoidance of undue concentrations of market power; (4) the reduction of regulatory barriers to entry into and exit from the industry; (5) the elimination of noncompensatory rates for rail transportation; and (6) the encouragement and promotion of energy conservation. Title I: Ratemaking - Directs the Commission, at least once a year, to establish an average ratio of revenue-to-variable cost that the rail carrier would be required to realize from all transportation provided by the industry in order to cover total operating expenses including depreciation and obsolescence, plus a reasonable and economic return on capital employed in the business. Authorizes rail carriers to establish any transportation rate which is equal to or less than such ratio. Prohibits the Commission from finding a railroad rate to be unreasonable or unjust on the basis that such rate exceeds a reasonable maximum for the services rendered. Allows rail carriers to increase any rate so long as such rate is equal to or less than an adjusted base rate for such transportation. Defines "base rate" as those rates in effect on January 1, 1980, for the transportation of such a commodity, or if no such commodity rate existed on such date, the rate in effect on such date for the most nearly comparable service. Directs the Commission, at least quarterly, to publish a rail cost adjustment factor to adjust such base rate based on changes in the Index of Railroad Material Prices and Wage Rates. Authorizes rail carriers to further increase such rates by an amount not exceeding four percent per year of such adjusted base rate. Directs the Commission to submit, at least every three years, a report which analyzes the revenue needs of rail carriers and which makes recommendations for modifying such allowable rate increases. Sets forth the allowable general rate increases which a rail carrier may institute for the six years following the effective date of this Act. Directs the Commission, within four years, to submit a report to the Congress on the effect of such general rate increase limitations including the feasibility of eliminating general rate increases. Authorizes one or more rail carriers to enter into contracts with one or more purchasers of rail services to provide specified services under specified rates and conditions. Authorizes the Commission, upon request, to limit the right of a rail carrier to enter into future contracts of such type if it determines that such additional contracts would impair the ability of the rail carrier to provide transportation to other shippers on reasonable request. Directs the Commission to determine annually the percentage of the equipment of each class I rail carrier that may be made available for use in fulfilling such contracts without impairing the carrier's ability to meet its non-contract obligations. Entitles any interested party to request a modification of such a determination upon a showing of changed circumstances or any other good cause. Exempts such contracts from specified regulations. Removes the requirement that the Commission conduct a hearing when prescribing through routes, joint classifications, joint rates, or the division of joint rates. Reduces the time period during which the Commission must take final action regarding such proceedings. Requires that rate bureau meetings be open to the public. Prohibits secret voting at such meetings. Authorizes a rail carrier to participate in discussions related to single-line rates proposed by another rail carrier or rates related to a particular interline movement. Stipulates that such discussions shall be limited to comments upon the proposal and shall exclude any agreement to approve, modify, disapprove or withdraw the proposal, except that in the case of a proposed interline movement, such agreements may be made by a rail carrier that can practicably participate in that movement. Authorizes rail carriers to establish demand-sensitive rates. Directs the Commission to facilitate the establishment of such rates. Authorizes rail carriers to establish transportation rates under which the liability of a carrier for property damage or loss is limited to a value established by written declaration of the shipper or by written agreement between the carrier and the shipper. Sets forth filing requirements with respect to a rail carrier's contract rates and services. Decreases the time period after which a rail rate change shall become effective after filing. Title II: Structure - Directs the Commission, in determining whether to approve a consolidation, merger, or acquisition of control application which does not involve two class I railroads to consider: (1) whether the transaction is likely to result in a substantial lessening of competition, creation of a monopoly, or restraint of trade in freight surface transportation; and (2) whether the anticompetitive effects of the transaction outweigh the public interest in meeting significant transportation needs. Sets forth administrative procedures regarding applications for the approval of such a transaction involving a rail carrier. Sets forth time limits during which the Commission must act on such applications. Stipulates that, with respect to the abandonment or a discontinuance of a rail line of a carrier in bankruptcy, the provisions of the Interstate Commerce Act shall prevail over any conflicting provisions of the bankruptcy laws. Requires rail carriers, in filing a notice of intent to abandon a discontinue rail line, to include in such a notice a statement that the line is available for subsidy or sale together with a statement that the carrier will provide to each interested party an estimate of the subsidy or minimum purchase price required to keep the line in operation. Directs the Commission to approve such an abandonment or discontinuance if no protest is received within 30 days after such an application is filed from shippers or other persons who have made significant use of the railroad involved during the 12-month period preceding the filing of the application, or from States or political subdivisions thereof in which any part of the railroad line is included. Establishes procedures and time limitations which the Commission is to follow in the event that such a protest is filed. Requires the Commission to publish in the Federal Register any decision to permit the abandonment or discontinuance of a rail line. Allows any person or governmental authority to make an offer to pay the rail carrier involved a subsidy or offer to purchase such a line within ten days after such publication. Directs the Commission to postpone the issuance of a certificate authorizing such abandonment or discontinuance if the terms of such financial assistance meet specified criteria. Directs the Commission to continue such postponement so long as a subsidy agreement is in effect or to dismiss the application in the event of the purchase of a line which will provide for continued rail service. Stipulates that such a purchaser may not transfer or discontinue service on such a line for a two year period nor may the purchaser transfer such line for a five-year period (except to the carrier from whom it was purchased). Stipulates that any such subsidy may be discontinued upon 60-days notice. Directs the Commission to authorize the extension of an existing rail carrier's lines or the construction or acquisition of additional lines upon a finding that the public convenience and necessity will permit such an action. Stipulates that where a railroad has been issued a certificate authorizing such an action, no other railroad may block the construction or extension by refusing to permit the carrier to cross its property so long as the construction or operation of the line does not reasonably interfere with the operation of the crossed line and the owner of the crossing line pays compensation for such crossing. Authorizes the Commission to require railroads to enter reciprocal switching agreements where it finds such an agreement to be practicable and in the public interest. Title III: General Provisions - Stipulates that any action undertaken or order issued by the Commission pursuant to its powers to deal with rail service emergencies shall be limited to a 30-day period unless, during such period, the Commission has begun proceedings to resolve the service problems on a more permanent basis. Stipulates that such an order may be extended for a 60-day period if such a proceeding is undertaken. Authorizes the Commission to exempt a person, class of persons, or a transaction from rail transportation regulation if it finds that the application of such a regulation is not necessary to carry out the national transportation policy as set forth in this Act.

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