§10101a. Rail transportation policy

In regulating the railroad industry, it is the policy of the United States Government-

(1) to allow, to the maximum extent possible, competition and the demand for services to establish reasonable rates for transportation by rail;

(2) to minimize the need for Federal regulatory control over the rail transportation system and to require fair and expeditious regulatory decisions when regulation is required;

(3) to promote a safe and efficient rail transportation system by allowing rail carriers to earn adequate revenues, as determined by the Interstate Commerce Commission;

(4) to ensure the development and continuation of a sound rail transportation system with effective competition among rail carriers and with other modes, to meet the needs of the public and the national defense;

(5) to foster sound economic conditions in transportation and to ensure effective competition and coordination between rail carriers and other modes;

(6) to maintain reasonable rates where there is an absence of effective competition and where rail rates provide revenues which exceed the amount necessary to maintain the rail system and to attract capital;

(7) to reduce regulatory barriers to entry into and exit from the industry;

(8) to operate transportation facilities and equipment without detriment to the public health and safety;

(9) to cooperate with the States on transportation matters to assure that intrastate regulatory jurisdiction is exercised in accordance with the standards established in this subtitle;

(10) to encourage honest and efficient management of railroads and, in particular, the elimination of noncompensatory rates for rail transportation;

(11) to require rail carriers, to the maximum extent practicable, to rely on individual rate increases, and to limit the use of increases of general applicability;

(12) to encourage fair wages and safe and suitable working conditions in the railroad industry;

(13) to prohibit predatory pricing and practices, to avoid undue concentrations of market power and to prohibit unlawful discrimination;

(14) to ensure the availability of accurate cost information in regulatory proceedings, while minimizing the burden on rail carriers of developing and maintaining the capability of providing such information; and

(15) to encourage and promote energy conservation.

(Added Pub. L. 96–448, title I, §101(a), Oct. 14, 1980, 94 Stat. 1897 .)

Effective Date

Section effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title.

Congressional Declaration of Findings

Section 2 of Pub. L. 96–448 provided that: "The Congress hereby finds that-

"(1) historically, railroads were the essential factor in the national transportation system;

"(2) the enactment of the Interstate Commerce Act [Feb. 4, 1887, ch. 104, 24 Stat. 379 , which was repealed and is covered by this subtitle] was essential to prevent an abuse of monopoly power by railroads and to establish and maintain a national railroad network;

"(3) today, most transportation within the United States is competitive;

"(4) many of the Government regulations affecting railroads have become unnecessary and inefficient;

"(5) nearly two-thirds of the Nation's intercity freight is transported by modes of transportation other than railroads;

"(6) earnings by the railroad industry are the lowest of any transportation mode and are insufficient to generate funds for necessary capital improvements;

"(7) by 1985, there will be a capital shortfall within the railroad industry of between $16,000,000,000 and $20,000,000,000;

"(8) failure to achieve increased earnings within the railroad industry will result in either further deterioration of the rail system or the necessity for additional Federal subsidy; and

"(9) modernization of economic regulation for the railroad industry with a greater reliance on the marketplace is essential in order to achieve maximum utilization of railroads to save energy and combat inflation."

Statement of Purpose and Goals

Section 3 of Pub. L. 96–448 provided that: "The purpose of this Act [see Short Title of 1980 Amendment note set out under section 10101 of this title] is to provide for the restoration, maintenance, and improvement of the physical facilities and financial stability of the rail system of the United States. In order to achieve this purpose, it is hereby declared that the goals of this Act are-

"(1) to assist the railroads of the Nation in rehabilitating the rail system in order to meet the demands of interstate commerce and the national defense;

"(2) to reform Federal regulatory policy so as to preserve a safe, adequate, economical, efficient, and financially stable rail system;

"(3) to assist the rail system to remain viable in the private sector of the economy;

"(4) to provide a regulatory process that balances the needs of carriers, shippers, and the public; and

"(5) to assist in the rehabilitation and financing of the rail system."

Section Referred to in Other Sections

This section is referred to in sections 302, 10101, 10505, 10705a, 10706, 10707a, 10712 of this title.