Statutory Authority

§ 10702

TITLE 49—TRANSPORTATION

(B) the amount of traffic which contributes
only marginally to fixed costs and the extent
to which, if any, rates on such traffic can be
changed to maximize the revenues from such
traffic; and
(C) the carrier’s mix of rail traffic to determine whether one commodity is paying an unreasonable share of the carrier’s overall revenues,
recognizing the policy of this part that rail carriers shall earn adequate revenues, as established by the Board under section 10704(a)(2) of
this title.
(3) The Board shall, within one year after January 1, 1996, complete the pending Interstate
Commerce Commission non-coal rate guidelines
proceeding to establish a simplified and expedited method for determining the reasonableness of challenged rail rates in those cases in
which a full stand-alone cost presentation is too
costly, given the value of the case.
(Added Pub. L. 104–88, title I, § 102(a), Dec. 29,
1995, 109 Stat. 809; amended Pub. L. 104–287,
§ 5(22), Oct. 11, 1996, 110 Stat. 3390.)
PRIOR PROVISIONS
Prior sections 10701 and 10701a were omitted in the
general amendment of this subtitle by Pub. L. 104–88,
§ 102(a).
Section 10701, Pub. L. 95–473, Oct. 17, 1978, 92 Stat.
1371; Pub. L. 96–296, § 13(a), July 1, 1980, 94 Stat. 803;
Pub. L. 96–448, title II, § 201(b)(1), (2), Oct. 14, 1980, 94
Stat. 1899, 1900; Pub. L. 97–261, § 9(a), Sept. 20, 1982, 96
Stat. 1109; Pub. L. 103–180, § 2(a), (b), (g), Dec. 3, 1993, 107
Stat. 2044, 2047, 2049, related to standards for rates,
classifications, through routes, rules, and practices.
See sections 10701, 13701, 13709, and 15501 of this title.
Section 10701a, added Pub. L. 96–448, title II, § 201(a),
Oct. 14, 1980, 94 Stat. 1898; amended Pub. L. 103–272,
§ 4(j)(19), July 5, 1994, 108 Stat. 1369, related to standards
for rates for rail carriers. See section 10701 of this title.
AMENDMENTS
1996—Subsec. (d)(3). Pub. L. 104–287 substituted ‘‘January 1, 1996’’ for ‘‘the effective date of this paragraph’’.
EFFECTIVE DATE
Chapter effective Jan. 1, 1996, except as otherwise
provided in Pub. L. 104–88, see section 2 of Pub. L.
104–88, set out as a note under section 701 of this title.
ABOLITION OF INTERSTATE COMMERCE COMMISSION
Interstate Commerce Commission abolished by section 101 of Pub. L. 104–88, set out as a note under section 701 of this title.

§ 10702. Authority for rail carriers to establish
rates, classifications, rules, and practices
A rail carrier providing transportation or
service subject to the jurisdiction of the Board
under this part shall establish reasonable—
(1) rates, to the extent required by section
10707, divisions of joint rates, and classifications for transportation and service it may
provide under this part; and
(2) rules and practices on matters related to
that transportation or service.
(Added Pub. L. 104–88, title I, § 102(a), Dec. 29,
1995, 109 Stat. 810.)
PRIOR PROVISIONS
A prior section 10702, Pub. L. 95–473, Oct. 17, 1978, 92
Stat. 1372; Pub. L. 103–180, § 6(a), Dec. 3, 1993, 107 Stat.

Page 298

2050; Pub. L. 103–311, title II, § 206(a), Aug. 26, 1994, 108
Stat. 1684, related to authority for carriers to establish
rates, classifications, rules, and practices, prior to the
general amendment of this subtitle by Pub. L. 104–88,
§ 102(a). See sections 10702 and 15502 of this title.

§ 10703. Authority for rail carriers to establish
through routes
Rail carriers providing transportation subject
to the jurisdiction of the Board under this part
shall establish through routes (including physical connections) with each other and with
water carriers providing transportation subject
to chapter 137, shall establish rates and classifications applicable to those routes, and shall
establish rules for their operation and provide—
(1) reasonable facilities for operating the
through route; and
(2) reasonable compensation to persons entitled to compensation for services related to
the through route.
(Added Pub. L. 104–88, title I, § 102(a), Dec. 29,
1995, 109 Stat. 810.)
PRIOR PROVISIONS
A prior section 10703, Pub. L. 95–473, Oct. 17, 1978, 92
Stat. 1372; Pub. L. 96–296, § 22(a), (h), July 1, 1980, 94
Stat. 812, 814; Pub. L. 97–449, § 5(g)(5), Jan. 12, 1983, 96
Stat. 2443; Pub. L. 98–216, § 2(11), Feb. 14, 1984, 98 Stat.
5; Pub. L. 99–521, § 7(a), Oct. 22, 1986, 100 Stat. 2994; Pub.
L. 103–272, § 5(m)(21), July 5, 1994, 108 Stat. 1377, related
to authority for carriers to establish through routes,
prior to the general amendment of this subtitle by Pub.
L. 104–88, § 102(a). See sections 10703 and 13705 of this
title.

§ 10704. Authority and criteria: rates, classifications, rules, and practices prescribed by
Board
(a)(1) When the Board, after a full hearing, decides that a rate charged or collected by a rail
carrier for transportation subject to the jurisdiction of the Board under this part, or that a
classification, rule, or practice of that carrier,
does or will violate this part, the Board may
prescribe the maximum rate, classification,
rule, or practice to be followed. The Board may
order the carrier to stop the violation. When a
rate, classification, rule, or practice is prescribed under this subsection, the affected carrier may not publish, charge, or collect a different rate and shall adopt the classification and
observe the rule or practice prescribed by the
Board.
(2) The Board shall maintain and revise as necessary standards and procedures for establishing
revenue levels for rail carriers providing transportation subject to its jurisdiction under this
part that are adequate, under honest, economical, and efficient management, to cover total
operating expenses, including depreciation and
obsolescence, plus a reasonable and economic
profit or return (or both) on capital employed in
the business. The Board shall make an adequate
and continuing effort to assist those carriers in
attaining revenue levels prescribed under this
paragraph. Revenue levels established under this
paragraph should—
(A) provide a flow of net income plus depreciation adequate to support prudent capital
outlays, assure the repayment of a reasonable
level of debt, permit the raising of needed eq-