§10731. Investigation of discriminatory rail rates for transportation of recyclable or recycled materials

(a) In this section—

(1) “recyclable material” means material collected or recovered from waste for a commercial or industrial use whether the collection or recovery follows end usage as a product.

(2) “virgin material” means raw material, including previously unused metal or metal ore, woodpulp or pulpwood, textile fiber or material, or other resource that, through the application of technology, is or will become a source of raw material for commercial or industrial use.

(b) When appropriate, the Interstate Commerce Commission shall—

(1) investigate the rate structure for the transportation of recyclable or recycled materials and competing virgin material by rail carriers providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title and the manner in which that rate structure has been affected by successive general rate increases approved by the Commission for those carriers;

(2) determine whether those rate increases affect any part of the rate structure in violation of section 10701 or 10741 of this title and order the rate found to be in violation of either of those sections removed from the rate structure; and

(3) report to the President and Congress, in each of the annual reports of the Commission for 1978 and 1979, and in other appropriate reports, all proceedings started or completed under this subsection.

(c) A determination under subsection (b)(2) of this section may be made only after a public hearing. During the hearing, the rail carriers have the burden of proving that rate increases that affect the rate structure applicable to the transportation of those competing materials comply with sections 10701 and 10741 of this title.

(d) In cooperation with the Commission, the Secretary of Transportation shall maintain a research, development, and demonstration program to develop and improve transport terminal operations, transport service characteristics, transport equipment, and collection and processing methods to facilitate the competitive and efficient transportation of recyclable or recycled materials by rail carriers providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title.

(e) Notwithstanding any other provision of this subtitle or any other law, within 90 days after the effective date of the Staggers Rail Act of 1980, all rail carriers providing transportation subject to the jurisdiction of the Commission under subchapter I of chapter 105 of this title shall take all actions necessary to reduce and thereafter maintain rates for the transportation of recyclable or recycled materials, other than recyclable or recycled iron or steel, at revenue-to-variable cost ratio levels that are equal to or less than the average revenue-to-variable cost ratio that rail carriers would be required to realize, under honest, economical, and efficient management, in order 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 sufficient to attract and retain capital in amounts adequate to provide a sound transportation system in the United States. As long as any such rate equals or exceeds such average revenue-to-variable cost ratio established by the Commission, such rate shall not be required to bear any further rate increase. The Commission shall have jurisdiction to issue all orders necessary to enforce the requirements of this subsection.

(Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1389; Pub. L. 96–448, title II, §204, Oct. 14, 1980, 94 Stat. 1905; Pub. L. 103–272, §4(j)(23), July 5, 1994, 108 Stat. 1369.)

In subsection (b), the words “within 12 months after the date of enactment of this Act” are omitted as executed. The words “When appropriate” are substituted for “and thereafter as appropriate” for clarity. The words “conduct an” are omitted as surplus. The words “any part of” are substituted for “in whole or in part” as being more precise and for consistency. The words “order the rate . . . removed” are substituted for “issue . . . orders requiring the removal” for clarity. The words “1978 and 1979” are substituted “for each of the 3 years following the date of enactment of this Act” as being more precise. Reference to the first year after enactment (1977) is omitted as executed. The words “section 10701 or 10741 of this title” are substituted for “just, reasonable, and nondiscriminatory”, “unjustly discriminatory or unreasonable”, and “unreasonableness or unjust discrimination” in view of the restatement. See the revision note to section 10101 of the revised title.

In subsection (d), the words “Secretary of Transportation” are substituted for “Secretary” for clarity in view of section 102(8) of the Railroad Revitalization and Regulatory Reform Act of 1976 (90 Stat. 34).

Subsection (b) of 45:793 (note) is omitted as executed. The first sentence of subsection (d) of 45:793 (note) is omitted as unnecessary since 45:793 (note) is codified in the revised title. The 2d sentence of subsection (d) of 45:793 (note) is omitted as surplus in view of sections 4332 and 4333 of title 42.

References in Text

The effective date of the Staggers Rail Act of 1980, referred to in subsec. (e), probably means Oct. 1, 1980, the general effective date of Pub. L. 96–448. See section 710 of Pub. L. 96–448, set out as an Effective Date of 1980 Amendment note under section 10101 of this title.

Amendments

1994—Subsec. (e). Pub. L. 103–272 substituted “provision of this subtitle” for “provision of this title”.

1980—Subsec. (e). Pub. L. 96–448 added subsec. (e).

Effective Date of 1980 Amendment

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