Railroad Revitalization and Regulatory Reform Act of 1976

Summary

Rail Services Act - States that the purposes of this Act are to revitalize the American railway system through regulatory reform, to change the procedure for considering merger and consolidation applications, to finance the rehabilitation of facilities and equipment and to provide for the continuation of service on light density rail lines that are necessary to continued employment. Title I: Rate Modernization - Revises provisions of the Interstate Commerce Act which provide for Interstate Commerce Commission prescription of the division of joint rates among carriers. Provides that the Commission shall establish rules for the conduct of division of such rates and fares. Directs the Commission to issue a final order in division cases within 270 days after the submission of a complete evidentiary case. Requires carriers to file all supporting evidence with their complaint in division proceedings and thereafter submit only rebuttal evidence. Provides new standards and procedures for the regulation of railroad rates subject to the jurisdiction of the Interstate Commerce Commission. States that Commission regulation of maximum rate levels will apply only when the railroad, publishing a rate increase, set market dominance over the service involved. Defines "market dominance." Requires the Commission to make a market dominance determination within 90 days after a rate is challenged as being unreasonably high. Provides that no rate of a carrier shall be held up to a particular level to protect the traffic of any other carrier or mode of transportation unless the Commission finds that such rate reduces or would reduce the going concern value of the carrier charging the rate. Enables the Commission and carriers to adjust rates in response to market demands. Requires the Commission to establish procedures for the establishment of separate rates for distinct rail services. Specifies factors which the Commission must take into account in its consideration of the public interest when deciding to cancel joint rates and/or through routes. Directs the Commission to investigate all allegations that rate increases or decreases will have the effect of disrupting relationships between commodities, ports, points, regions, territories, and other particular descriptions of traffic. Requires the Commission to conduct an investigation of the rate structure for the transportation of recyclable or recyled materials and competing virgin natural resource materials and the manner in which that rate structure has been affected by general rate increases approved by the Commission. Directs the Administrator of the Environmental Protection Agency to take such steps as are necessary to insure that the Commission undertakes this investigation as expeditiously as possible by authorizing him to participate as a party in the Commission proceedings. Calls for a research, development and demonstration program to improve transportation methods, equipment operations and terminal facilities, for the movement of recyclable materials. Provides that the program is to be undertaken by the Secretary of Transportation in cooperation with the Commission and the Federal Maritime Commission. Provides that Commission orders pursuant to this title shall be reviewable in the courts in the same manner as other Commission orders. Requires the Commission, within 24 months after the enactment of this Act, to develop and promulgate reasonable standards and procedures for the establishment of adequate revenue levels for railroads. Provides a new investigation and suspension procedure for use when a carrier files a new rate schedule contingent upon a total capital investment of $1,000,000 or more. Authorizes the Commission, upon request of an interested person, to investigate the lawfulness of the new rate, and until 180 days after such filing, the Commission may find the schedule unlawful in whole or in part. States that if the Commission has not acted within 180 days the carrier may put the rate into effect. Grants the Commission authority, under specified circumstances, to exempt regulated carrier services from all or part of the regulations provided under this Act if such regulation is found fully or partially unnecessary to effectuate the goals of the National Transportation Policy, to effective regulation under that policy and when such regulation would serve little or no useful public purpose. Authorizes the Commission to order that a regulation be withdrawn in whole or in part for such period of time as it might prescribe. States that such an exemption may be revoked after notice and a hearing upon a finding that the conditions which gave rise to the exemption no longer exist or that the continuance of the exemption is not consistent with the National Transportation Policy. Requires the Commission to report annually to Congress on all such actions. Requires (presently permits) the Commission to prescribe rules and regulations, and terms and conditions, for the approval of agreements between carriers. Outlines the type of agreements which shall not be approved. Authorizes the Commission to review agreements previously approved to determine if such agreements are in conformity with standards set forth in this Act. Directs the Federal Trade Commission, in consultation with the Department of Justice, to furnish assessments to the Interstate Commerce Commission with respect to the competitive effects of rate bureau agreements. States that such reports shall be made available to the public. Provides that rate bureaus must make a final disposition of proposed rules, rates or charges docketed before a bureau within 120 days after the proposal is docketed. Directs the Commission, beginning two years after the date of enactment of this Act, to require that all rates be incorporated into individual carrier or rate-making association tariff publications within two years of the initial publication of the rate. Provides that failure on the part of carriers to accomplish this would result in nullification of the rate. Grants the Commission exclusive authority to determine and prescribe rates for traffic moving in intrastate commerce if a carrier has filed with the appropriate state administrative agency or regulatory body a change in such rates for the purpose of adjusting such rates to accord with rates on similar traffic moving in interstate or foreign commerce and the state agency has not acted within 120 days of such filing. Requires that notice of an application to the Commission under this paragraph shall be served on the appropriate State body. Title II: Interstate Commerce Commission Improvements - Provides that the Interstate Commerce Commission shall be composed of 11 Commissioners appointed by the President by and with the advice and consent of the Senate for terms of seven years. Provides that not more than six Commissioners shall be appointed from the same political party and continues the existing prohibition against a Commissioner having any relationship with a common carrier subject to the provisions of this Act. Provides that the President shall appoint a Commissioner to serve as Chairman, by and with the advice and consent of the Senate, and the Chairman shall serve at the pleasure of the President. Authorizes the Commission to appoint such other agency employees as it deems necessary or appropriate to the proper performance of its duties, and states that such appointments are not subject to approval by any office or agency other than the Commission or the Civil Service Commission. States that the Chairman shall be the chief executive officer of the Commission and shall set the policies and exercise the executive and administrative functions of the Commission. Requires the Commission to prepare and submit its budget estimates not less than 10 months prior to the start of each new fiscal year. Directs that such estimates must be submitted concurrently to the Congress and the President. Provides that whenever the Commission submits any budget requests, other budget information, legislative recommendations, prepared testimony, or comments on legislation to the Executive Branch, it is required to concurrently send a copy to Congress, and no Executive Branch official or agency can require the Commission to transmit any such document to it prior to submission of such document to Congress. Redesignates the Rail Services Planning Office as the Transportation Services Planning Office and establishes it as a permanent office of the Commission. Provides that the Commission may commence, defend, or intervene in and supervise the litigation of, any civil action involving the Interstate Commerce Act. Gives the Commission the same authority in any action relating to injunctive relief; relating to consumer redress; and to obtain judicial review of a rule, regulation, or order issued by the Commission. Requires that wherever the Commission has reason to believe a person is liable for a criminal penalty under this Act, it shall certify the facts to the Attorney General who has the duty to cause appropriate criminal proceedings to be brought. Removes the requirement that all orders of the Commission, except orders for the payment of money, shall not take effect until 30 days after issuance. Revises provisions of the Interstate Commerce Act outlining procedural requirements affecting all formal Commission proceedings. Defines the term "hearing" to include an opportunity for the submission of all evidence in written form, followed by an opportunity for briefs, written statements or conferences. Provides that any interested party may, subject to rules promulgated by the Commission, petition the Commission for rehearing, reargument or reconsideration of a decision, order or requirement of the Commission. Establishes an independent office affiliated with the Commission to be known as the Office of the Public Counsel. Provides that the Office shall be administered by a Director, to be appointed by the President from among persons recommended by the Commission, with the advice and consent of the Senate. Provides that the Director shall be appointed for a four-year term, shall be responsible for the discharge of the functions of the Office, and may be removed for cause. Gives the Office standing to become a party to Commission proceedings. Authorizes the Office to petition the Commission for the initiation of proceedings, to seek judicial review of Commission action, and to represent the public interest in safe, efficient transportation service. Authorizes the appropriation of funds to the Office through September 30, 1977, to carry out its functions under this Act. Declares the following taxation activities to be an undue burden on interstate commerce: (1) the assessment of transportation property at a value which bears a higher ratio to the true market value of such transportation property than the ratio which the assessed value of all other commercial and industrial property bears to the true market value of such property in the same assessment jurisdiction; (2) the levy or collection of a tax on an assessment unlawful pursuant to (1); (3) the levy or collection of an ad valorem property tax on transportation property at a tax rate higher than that generally applicable to commercial and industrial property in the same assessment jurisdiction; and (4) the imposition of any other tax which results in the discriminatory treatment of any common or contract carrier subject to the Interstate Commerce Act. Directs the Commission to establish standards and procedures for the presentation by rail carriers of expense and revenue data required in Commission proceedings. Provides that the Commission shall also consider whether there should be any modification in the uniform system of accounts. Requires the Commission to review the uniform system of accounts as least every five years and make any necessary changes. Authorizes an appropriation of $1,000,000 to the Commission to carry out these functions. Title III: Investigations - Directs the Secretary of Transportation to study and evaluate governmental aid to all forms of transportation, assess the impact of these policies, and recommend such changes in government aid as may be necessary to encourage the establishment and maintenance of an open and competitive market. Gives the Secretary powers to require data and other information from both for-hire and private carriers. Requires the Secretary to study and formulate a national transportation program to be submitted to the Congress and the President. Provides that the report shall include the criteria, standards and data utilized in formulating the program. States that the study shall consider all relevant factors including the need for coordinated development and improvement of all modes of transportation. Directs the Secretary to survey existing transportation services and analyze the effectiveness of each in meeting the immediate and long-term national transportation needs. Directs the Commission to prepare a proposed modernization and revision of the Interstate Commerce Act and codification of all Acts supplementary thereto. Title IV: Mergers and Consolidations - Revises the Department of Transportation Act. Empowers the Secretary to plan for and develop proposals for mergers and similar arrangements intended to achieve a more adequate rail system. Authorizes the Secretary, upon request of any railroad, to hold conferences concerning any proposed unification or coordination project. Requires the Secretary to conduct a comprehensive study of the American railway system. States that the study will include an examination of possible advantages of restructuring the railroads. Imposes deadlines on the Commission and otherwise modifies the procedures to be followed in merger cases for the purpose of expediting the processing of such cases before the Commission. Title V: Railroad Rehabilitation and Improvement Financing - Establishes in the Treasury of the United States the Railroad Rehabilitation and Improvement Trust Fund under the direction of the United States Railway Association. Provides that the fund shall be used to provide specific financial assistance to the Consolidated Rail Corporation. Sets forth the duties and powers of the Association with respect to the administration of the Fund. Establishes original jurisdiction in the district courts of the United States for all civil actions in which the Association or the Fund is a party. Establishes the procedures for the establishment by the Secretary of Transportation of a classification of rail lines on the basis of the essentiality of each line to the rail transportation system and economic viability of each line. Directs each of the nation's railroads (except the Consolidated Rail Corporation and those railroads which have elected to be reorganized pursuant to the provisions of the Regional Rail Reorganization Act) to prepare and submit to the Secretary of Transportation and the Commission a traffic density schedule on each main and branch line for each of the preceding five calendar years. Directs the Secretary of Transportation to develop and publish a set of preliminary standards for classifying main and branch rail lines according to the degree to which they are essential to the rail transportation system. Requires each railroad to prepare and submit to the Secretary of Transportation and the United States Railway Association a full and complete schedule of its deferred maintenance and delayed capital expenditures as of December 31, 1975, with a 10-year projection of desired maintenance and capital expenditures. Provides for the Secretary of Transportation to develop and publish preliminary financing recommendations to meet the railroads' capital needs. States that the Association shall evaluate the Secretary's preliminary financial recommendations and the Secretary of Transportation shall transmit his final recommendations to Congress within 90 days after the receipt of the Association's evaluation. Sets forth the mechanism for railroads, other than the Consolidated Rail Corporation, to receive financial assistance for facilities rehabilitation improvement, working capital, and other financial needs. Authorizes the Association to issue Trust Fund Anticipation Notes and Trust Fund Bonds pursuant to guidelines and restrictions set forth in the Act. Title VI: Implementation of the Final System Plan - Revises the Regional Rail Reorganization Act to exempt all transfers or conveyances of properties made pursuant to the Final System Plan from transfer taxes of the United States, or any State, or of any political subdivision of a State. Provides that actions brought to challenge or to enforce or declare rights under or pursuant to this Act or the final system plan are within the original and exclusive jurisdiction of the Special Court. Reduces the aggregate amount of obligations of the Association which may be outstanding at any one time from $1,500,000,000 to $500,000,000. Allows purchases by the Association of ConRail debentures and Preferred Stock. Establishes the purposes and procedures for the investment in ConRail's securities. Provides that the terms and conditions of the debentures and Series A Preferred Stock which the Association will acquire will be prescribed solely by the Association. Authorizes an additional $200,000,000 for the electrification of high density mainline routes where to do so will aid the financial performance of the Corporation. Protects the interest of employees of railroads in reorganization prior to the effective date of conveyance and their rights under collective bargaining agreements. Title VII: Northeast Corridor Project Implementation - Establishes a wholly-owned corporate subsidiary of the National Railroad Passenger Corporation to be called the Northeast Corridor Improvement Corporation. States that the Northeast Corridor operation, improvements and finances shall be segregated from the operation of the rest of Amtrak's intercity rail passenger system. Authorizes the Corporation to acquire and sell property, provide for the continuous operation of rail freight, improve rail transportation between Boston and the District of Columbia, and take other specified action to improve high-speed rail passenger service. Establishes the Northeast Corridor Disputes Board to resolve disputes between the Corporation and other parties. Directs that the decisions of the Board shall be final and binding on all parties. Sets as a goal to be achieved by the Northeast Corridor improvement project the improvement of rail services and passenger radio telephone service aboard trains. Provides that the cost of improvement of railroad rights-of-way, and other facilities shall be borne by the Federal Government. Authorizes the appropriation of $3,000,000,000 to the United States Railway Association to permit the Association to make available non-interest-bearing 30-year loans to the National Railroad Passenger Corporation for use of the Northeast Corridor Improvement Corporation. Revises the Department of Transportation Act in order to allow the Department of Transportation to construct or acquire space in suitable buildings of a non-historic nature where no suitable historical or architecturally significant facility is available. Title VIII: Local Rail Service Continuation - Revises the Interstate Commerce Act to restate the Interstate Commerce Commission's authority to require railroads to obtain a certificate of convenience and necessity from the Commission for the extension or construction of lines. Prohibits the abandonment of rail service unless covered by a certificate which is issued by the Commission. Directs the Secretary of Transportation to provide financial assistance to States for rail freight assistance programs designed to cover the cost of servicing, purchasing, and rehabilitating rail lines. Provides that in order for a State to be eligible for such funds it must establish a plan for rail services which meets the requirements specified in the Act. Allows the termination of service on all lines not included in the Final System Plan if not prohibited by the terms of existing leases and agreements. Requires the Secretary to provide financial assistance to provide rail service continuation payments, acquisition and modernization payments, and to finance rail banking and the construction and improvement of facilities necessary to carry freight now carried on lines not included in the Final System Plan. Provides that the Federal share of such costs is 100 percent for the first year and 90 percent for the second year. Directs the Interstate Commerce Commission, within 180 days after the effective date of the Final System Plan, to issue regulations for the determination of payments to be made by commuter authorities to operating railroads for commuter services. Provides emergency operating assistance for commuter services affected by the implementation of the Final System Plan. Requires that consideration be given to future public use of abandoned railroad rights-of-way and adequate funds ;be provided for conversion to alternative public uses where possible. Authorizes the appropriation of $25,000,000 for fiscal years 1976 through 1978 to carry out such purposes. Title IX: National Railroad Minority Resource Center - Requires the Association to establish a National Railroad Minority Resource Center. Authorizes the Center to conduct the following activities: (1) establish a national clearing house for minority enterprises which will assimilate information and business material concerning the reorganization of the Northeast railroads; (2) develop sources of investment capital; (3) conduct the research necessary to define the opportunities available to minority firms; (4) contract with minority firms to carry out the studies under part 3; (5) conduct a liason in the public and private sectors in support of minority participation programs; (6) develop corporate entities to provide venture capital and technical assistance to minority firms; and (7) participate in Federal programs designed to provide financial assistance to minority firms. Authorizes the appropriation of funds to carry out such functions.

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3 official files

• Public Law (PDF)

  Public Law · EN · 6 February 1976

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• Conference report filed in House

  summary · EN · 23 January 1976

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• Introduced in Senate

  summary · EN · 26 November 1975

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