Page:United States Statutes at Large Volume 94 Part 2.djvu/665

 PUBLIC LAW 96-448—OCT. 14, 1980

94 STAT. 1943

"(D) the foregone tax benefits from not retiring properties from rail service and other effects of applicable Federal and State income taxes. "(2) 'reasonable return' means— "(A) if a rail carrier is not in reorganization, the cost of capital to the rail carrier, as determined by the Interstate Commerce Commission; and "(B) if a rail carrier is in reorganization, the mean cost of capital of rail carriers not in reorganization, as determined by the Commission. "(b) Any rail carrier which has filed an application for a certificate of abandonment or discontinuance shall provide promptly to a party considering an offer of financial assistance and shall provide concurrently to the Commission— "(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 rsdlroad line; and "(4) any other information that the Commission may deem necessary to allow a potential offeror to calculate an adequate subsidy or purchase offer. "(c) When the Commission finds under section 10903 of this title that the public convenience and necessity require or permit abandonment or discontinuance of a particular railroad line, it shall, concurrently with service of the decision upon the parties, publish the finding in the Federal Register. Within 10 days following the publication, any person may offer to pay the carrier a subsidy or offer to purchase the line. Such offer shall be filed concurrently with the Commission. If the offer to subsidize or purchase the line is less than the carrier's estimate provided under subsection (b)(1) of this section, the offer shall explain the basis of the disparity, and the manner in which the offer of subsidy or purchase is calculated. "(d) If, within 15 days after the publication required in subsection (c) of this section, the Commission finds that— "(1) a financially responsible person (including a government authority) has offered financial assistance to enable the rail transportation to be continued over that part of the railroad line to be abandoned or over which all rail transportation is to be discontinued; and "(2) it is likely that the assistance would be equal to— "(A) 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; or "(B) the acquisition cost of that part of the railroad line; the Commission shall postpone the issuance of a certificate authorizing abandonment or discontinuance in accordance with subsections (e) and (f) of this section. "(e) If the carrier and a person offering financial assistance enter into an agreement which will provide continued rail service, the Commission shall postpone the issuance of the certificate for so long as the agreement, or an extension or modification of the agreement.

Publication in Federal Register. 49 USC 10903. Subsidy or purchase offer.

Abandonment or discontinuance, postponement.

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