49 U.S.C. § 10904. Offers of financial assistance to avoid
abandonment and discontinuance
(1) the term “avoidable cost” means all expenses
that would be incurred by a rail carrier in providing transportation
that would not be incurred if the railroad line over which the
transportation was provided were abandoned or if the transportation
were discontinued. Expenses include cash inflows foregone and cash
outflows incurred by the rail carrier as a result of not abandoning
or discontinuing the transportation. Cash inflows foregone and cash
outflows incurred include--
(A) working capital and required capital expenditure;
(B) expenditures to eliminate deferred maintenance;
(C) the current cost of freight cars, locomotives, and other
equipment; and
(D) the foregone tax benefits from not retiring properties
from rail service and other effects of applicable Federal and State
income taxes; and
(2) the term “reasonable return” means--
(A) if a rail carrier is not in reorganization, the cost of
capital to the rail carrier, as determined by the Board; and
(B) if a rail carrier is in reorganization, the mean cost of
capital of rail carriers not in reorganization, as determined by the
Board.
(b) Any rail carrier which has filed an application for
abandonment or discontinuance shall provide promptly to a party
considering an offer of financial assistance and shall provide
concurrently to the Board--
(1) an estimate of the annual subsidy and minimum purchase
price required to keep the line or a portion of the line in
operation;
(2) its most recent reports on the physical condition of that
part of the railroad line involved in the proposed abandonment or
discontinuance;
(3) traffic, revenue, and other data necessary to determine
the amount of annual financial assistance which would be required to
continue rail transportation over that part of the railroad line; and
(4) any other information that the Board considers necessary
to allow a potential offeror to calculate an adequate subsidy or
purchase offer.
(c) Within 4 months after an application is filed under
section
10903, any person may offer to subsidize or purchase
the railroad line that is the subject of such application. Such offer
shall be filed concurrently with the Board. If the offer to subsidize
or purchase is less than the carrier's estimate stated pursuant to
subsection (b)(1), the offer shall explain the basis of the
disparity, and the manner in which the offer is calculated.
(d)(1) Unless the Board, within 15 days after the expiration
of the 4-month period described in subsection (c), finds that one or
more financially responsible persons (including a governmental
authority) have offered financial assistance regarding that part of
the railroad line to be abandoned or over which all rail
transportation is to be discontinued, abandonment or discontinuance
may be carried out in accordance with section
10903.
(2) If the Board finds that such an offer or offers of
financial assistance has been made within such period, abandonment or
discontinuance shall be postponed until--
(A) the carrier and a financially responsible person have
reached agreement on a transaction for subsidy or sale of the line;
or
(B) the conditions and amount of compensation are established
under subsection (f).
(e) Except as provided in subsection (f)(3), if the rail
carrier and a financially responsible person (including a
governmental authority) fail to agree on the amount or terms of the
subsidy or purchase, either party may, within 30 days after the offer
is made, request that the Board establish the conditions and amount
of compensation.
(f)(1) Whenever the Board is requested to establish the
conditions and amount of compensation under this section--
(A) the Board shall render its decision within 30 days;
(B) for proposed sales, the Board shall determine the price
and other terms of sale, except that in no case shall the Board set a
price which is below the fair market value of the line (including,
unless otherwise mutually agreed, all facilities on the line or
portion necessary to provide effective transportation services); and
(C) for proposed subsidies, the Board shall establish the
compensation as the difference between the revenues attributable to
that part of the railroad line and the avoidable cost of providing
rail freight transportation on the line, plus a reasonable return on
the value of the line.
(2) The decision of the Board shall be binding on both
parties, except that the person who has offered to subsidize or
purchase the line may withdraw his offer within 10 days of the
Board's decision. In such a case, the abandonment or discontinuance
may be carried out immediately, unless other offers are being
considered pursuant to paragraph (3) of this subsection.
(3) If a rail carrier receives more than one offer to
subsidize or purchase, it shall select the offeror with whom it
wishes to transact business, and complete the subsidy or sale
agreement, or request that the Board establish the conditions and
amount of compensation before the 40th day after the expiration of
the 4-month period described in subsection (c). If no agreement on
subsidy or sale is reached within such 40-day period and the Board
has not been requested to establish the conditions and amount of
compensation, any other offeror whose offer was made within the
4-month period described in subsection (c) may request that the Board
establish the conditions and amount of compensation. If the Board has
established the conditions and amount of compensation, and the
original offer has been withdrawn, any other offeror whose offer was
made within the 4-month period described in subsection (c) may accept
the Board's decision within 20 days after such decision, and the
Board shall require the carrier to enter into a subsidy or sale
agreement with such offeror, if such subsidy or sale agreement
incorporates the Board's decision.
(4)(A) No purchaser of a line or portion of line sold under
this section may transfer or discontinue service on such line prior
to the end of the second year after consummation of the sale, nor may
such purchaser transfer such line, except to the rail carrier from
whom it was purchased, prior to the end of the fifth year after
consummation of the sale.
(B) No subsidy arrangement approved under this section shall
remain in effect for more than one year, unless otherwise mutually
agreed by the parties.
(g) Upon abandonment of a railroad line under this chapter,
the obligation of the rail carrier abandoning the line to provide
transportation on that line, as required by section
11101(a), is extinguished.
CREDIT(S)
(Added Pub.L.
104-88, Title I, § 102(a), Dec. 29, 1995, 109
Stat. 825.)
49 U.S.C. § 10905. Offering abandoned rail properties for
sale for public purposes
When the Board approves an application to abandon or discontinue
under section
10903, the Board shall find whether the rail
properties that are involved in the proposed abandonment or
discontinuance are appropriate for use for public purposes, including
highways, other forms of mass transportation, conservation, energy
production or transmission, or recreation. If the Board finds that
the rail properties proposed to be abandoned are appropriate for
public purposes and not required for continued rail operations, the
properties may be sold, leased, exchanged, or otherwise disposed of
only under conditions provided in the order of the Board. The
conditions may include a prohibition on any such disposal for a
period of not more than 180 days after the effective date of the
order, unless the properties have first been offered, on reasonable
terms, for sale for public purposes.
CREDIT(S)
(Added Pub.L.
104-88, Title I, § 102(a), Dec. 29, 1995, 109
Stat. 827.)
49 U.S.C. § 10907. Railroad development
(a) In this section, the term “financially responsible
person” means a person who--
(1) is capable of paying the constitutional minimum value of
the railroad line proposed to be acquired; and
(2) is able to assure that adequate transportation will be
provided over such line for a period of not less than 3 years.
Such term includes a governmental authority but does not include a
Class I or Class II rail carrier.
(b)(1) When the Board finds that--
(A)(i) the public convenience and necessity require or permit
the sale of a particular railroad line under this section; or
(ii) a railroad line is on a system diagram map as required
under section
10903 of this title, but the rail carrier owning such
line has not filed an application to abandon such line under section
10903 of this title before an application to purchase
such line, or any required preliminary filing with respect to such
application, is filed under this section; and
(B) an application to purchase such line has been filed by a
financially responsible person,
the Board shall require the rail carrier owning the railroad line to
sell such line to such financially responsible person at a price not
less than the constitutional minimum value.
(2) For purposes of this subsection, the constitutional
minimum value of a particular railroad line shall be presumed to be
not less than the net liquidation value of such line or the going
concern value of such line, whichever is greater.
(c)(1) For purposes of this section, the Board may determine
that the public convenience and necessity require or permit the sale
of a railroad line if the Board determines, after a hearing on the
record, that--
(A) the rail carrier operating such line refuses within a
reasonable time to make the necessary efforts to provide adequate
service to shippers who transport traffic over such line;
(B) the transportation over such line is inadequate for the
majority of shippers who transport traffic over such line;
(C) the sale of such line will not have a significantly
adverse financial effect on the rail carrier operating such line;
(D) the sale of such line will not have an adverse effect on
the overall operational performance of the rail carrier operating
such line; and
(E) the sale of such line will be likely to result in improved
railroad transportation for shippers that transport traffic over such
line.
(2) In a proceeding under this subsection, the burden of
proving that the public convenience and necessity require or permit
the sale of a particular railroad line is on the person filing the
application to acquire such line. If the Board finds under this
subsection that the public convenience and necessity require or
permit the sale of a particular railroad line, the Board shall
concurrently notify the parties of such finding and publish such
finding in the Federal Register.
(d) In the case of any railroad line subject to sale under
subsection (a) of this section, the Board shall, upon the request of
the acquiring carrier, require the selling carrier to provide to the
acquiring carrier trackage rights to allow a reasonable interchange
with the selling carrier or to move power equipment or empty rolling
stock between noncontiguous feeder lines operated by the acquiring
carrier. The Board shall require the acquiring carrier to provide the
selling carrier reasonable compensation for any such trackage
rights.
(e) The Board shall require, to the maximum extent
practicable, the use of the employees who would normally have
performed work in connection with a railroad line subject to a sale
under this section.
(f) In the case of a railroad line which carried less than
3,000,000 gross ton miles of traffic per mile in the preceding
calendar year, whenever a purchasing carrier under this section
petitions the Board for joint rates applicable to traffic moving over
through routes in which the purchasing carrier may practicably
participate, the Board shall, within 30 days after the date such
petition is filed and pursuant to section
10705(a) of this title, require the establishment of
reasonable joint rates and divisions over such route.
(g)(1) Any person operating a railroad line acquired under
this section may elect to be exempt from any of the provisions of
this part, except that such a person may not be exempt from the
provisions of chapter 107 of this title with respect to
transportation under a joint rate.
(2) The provisions of paragraph (1) of this subsection shall
apply to any line of railroad which was abandoned during the 18-month
period immediately prior to October 1, 1980, and was subsequently
purchased by a financially responsible person.
(h) If a purchasing carrier under this section proposes to
sell or abandon all or any portion of a purchased railroad line, such
purchasing carrier shall offer the right of first refusal with
respect to such line or portion thereof to the carrier which sold
such line under this section. Such offer shall be made at a price
equal to the sum of the price paid by such purchasing carrier to such
selling carrier for such line or portion thereof and the fair market
value (less deterioration) of any improvements made, as adjusted to
reflect inflation.
(i) Any person operating a railroad line acquired under this
section may determine preconditions, such as payment of a subsidy,
which must be met by shippers in order to obtain service over such
lines, but such operator must notify the shippers on the line of its
intention to impose such preconditions.
CREDIT(S)
(Added Pub.L.
104-88, Title I, § 102(a), Dec. 29, 1995, 109
Stat. 828.)
1247. State and local area recreation and historic trails
(a) Secretary of the Interior to encourage States, political
subdivisions, and private interests; financial assistance for State
and local projects
The Secretary of the Interior is directed to encourage States to
consider, in their comprehensive statewide outdoor recreation plans
and proposals for financial assistance for State and local projects
submitted pursuant to the Land and Water Conservation Fund Act [16
U.S.C.A. § 460l-4
et seq.], needs and opportunities for establishing
park, forest, and other recreation and historic trails on lands owned
or administered by States, and recreation and historic trails on
lands in or near urban areas. The Secretary is also directed to
encourage States to consider, in their comprehensive statewide
historic preservation plans and proposals for financial assistance
for State, local, and private projects submitted pursuant to the Act
of October 15, 1966 (80 Stat. 915), as amended [16
U.S.C.A. § 470 et seq.], needs and opportunities
for establishing historic trails. He is further directed, in
accordance with the authority contained in the Act of May 28, 1963
(77 Stat. 49) [16
U.S.C.A. § 460l
et seq.], to encourage States, political subdivisions,
and private interests, including nonprofit organizations, to
establish such trails.
(b) Secretary of Housing and Urban Development to encourage
metropolitan and other urban areas; administrative and financial
assistance in connection with recreation and transportation planning;
administration of urban open-space program
The Secretary of Housing and Urban Development is directed, in
administering the program of comprehensive urban planning and
assistance under section 701 of the Housing Act of 1954 [40
U.S.C.A. § 461], to encourage the planning of
recreation trails in connection with the recreation and
transportation planning for metropolitan and other urban areas. He is
further directed, in administering the urban open-space program under
title VII of the Housing Act of 1961 [42
U.S.C.A. § 1500 et seq.], to encourage such
recreation trails.
(c) Secretary of Agriculture to encourage States, local agencies, and
private interests
The Secretary of Agriculture is directed, in accordance with
authority vested in him, to encourage States and local agencies and
private interests to establish such trails.
(d) Interim use of railroad rights-of-way
The Secretary of Transportation, the Chairman of the Surface
Transportation Board, and the Secretary of the Interior, in
administering the Railroad Revitalization and Regulatory Reform Act
of 1976 [45
U.S.C.A. § 801 et seq.], shall encourage State
and local agencies and private interests to establish appropriate
trails using the provisions of such programs. Consistent with the
purposes of that Act, and in furtherance of the national policy to
preserve established railroad rights-of-way for future reactivation
of rail service, to protect rail transportation corridors, and to
encourage energy efficient transportation use, in the case of interim
use of any established railroad rights-of-way pursuant to donation,
transfer, lease, sale, or otherwise in a manner consistent with this
chapter, if such interim use is subject to restoration or
reconstruction for railroad purposes, such interim use shall not be
treated, for purposes of any law or rule of law, as an abandonment of
the use of such rights-of-way for railroad purposes. If a State,
political subdivision, or qualified private organization is prepared
to assume full responsibility for management of such rights-of-way
and for any legal liability arising out of such transfer or use, and
for the payment of any and all taxes that may be levied or assessed
against such rights-of-way, then the Board shall impose such terms
and conditions as a requirement of any transfer or conveyance for
interim use in a manner consistent with this chapter, and shall not
permit abandonment or discontinuance inconsistent or disruptive of
such use.
(e) Designation and marking of trails; approval of Secretary of the
Interior
Such trails may be designated and suitably marked as parts of the
nationwide system of trails by the States, their political
subdivisions, or other appropriate administering agencies with the
approval of the Secretary of the Interior.
CREDIT(S)
(Pub.L. 90-543, § 8, Oct. 2, 1968, 82 Stat.
925; Pub.L.
95-625, Title V, § 551(22), Nov. 10, 1978, 92
Stat. 3516; Pub.L.
98-11, Title II, § 208, Mar. 28, 1983, 97 Stat.
48; Pub.L.
104-88, Title III, § 317(1), Dec. 29, 1995, 109
Stat. 949.)
| File Type | application/msword |
| File Title | 49 U |
| Author | OehrleC |
| Last Modified By | OehrleC |
| File Modified | 2012-08-09 |
| File Created | 2012-08-09 |