---
kind: "section"
citation: "49 U.S.C. § 10704"
title: "49"
title_heading: "Transportation"
number: "10704"
heading: "Authority and criteria: rates, classifications, rules, and practices prescribed by Board"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/10704"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part A — Rail"
  - "Chapter 107 — Rates"
  - "Subchapter I — General Authority"
---

# §10704. Authority and criteria: rates, classifications, rules, and practices prescribed by Board

- (a)
  - (1) When the [Board](/usc/49/10102.md?p=1), after a full hearing, decides that a [rate](/usc/49/10102.md?p=7) charged or collected by a [rail carrier](/usc/49/10102.md?p=5) for [transportation](/usc/49/10102.md?p=9) subject to the jurisdiction of the [Board](/usc/49/10102.md?p=1) under this part, or that a classification, rule, or practice of that [carrier](/usc/49/13102.md?p=3), does or will violate this part, the [Board](/usc/49/10102.md?p=1) may prescribe the maximum [rate](/usc/49/10102.md?p=7), classification, rule, or practice to be followed. The [Board](/usc/49/10102.md?p=1) may order the [carrier](/usc/49/13102.md?p=3) to stop the violation. When a [rate](/usc/49/10102.md?p=7), classification, rule, or practice is prescribed under this subsection, the affected [carrier](/usc/49/13102.md?p=3) may not publish, charge, or collect a different [rate](/usc/49/10102.md?p=7) and shall adopt the classification and observe the rule or practice prescribed by the [Board](/usc/49/10102.md?p=1).
  - (2) The [Board](/usc/49/10102.md?p=1) shall maintain and revise as necessary standards and procedures for establishing revenue levels for [rail carriers](/usc/49/10102.md?p=5) providing [transportation](/usc/49/10102.md?p=9) subject to its jurisdiction under this part that are adequate, under honest, economical, and efficient management, for the infrastructure and investment needed to meet the present and future demand for rail services and 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](/usc/49/10102.md?p=1) shall make an adequate and continuing effort to assist those [carriers](/usc/49/13102.md?p=3) 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 equity capital, and cover the effects of inflation; and
    - (B) attract and retain capital in amounts adequate to provide a sound [transportation](/usc/49/10102.md?p=9) system in the [United States](/usc/49/10102.md?p=10).
  - (3) On the basis of the standards and procedures described in [paragraph (2)](#a-2), the [Board](/usc/49/10102.md?p=1) shall annually determine which [rail carriers](/usc/49/10102.md?p=5) are earning adequate revenues.
- (b) The [Board](/usc/49/10102.md?p=1) may begin a proceeding under this section only on complaint. A complaint under [subsection (a)](#a) of this section must be made under [section 11701 of this title](/usc/49/11701.md), but the proceeding may also be in extension of a complaint pending before the [Board](/usc/49/10102.md?p=1).
- (c) In a proceeding to challenge the reasonableness of a [rate](/usc/49/10102.md?p=7), the [Board](/usc/49/10102.md?p=1) shall make its determination as to the reasonableness of the challenged [rate](/usc/49/10102.md?p=7)—
  - (1) within 9 months after the close of the administrative record if the determination is based upon a stand-alone cost presentation; or
  - (2) within 6 months after the close of the administrative record if the determination is based upon the methodology adopted by the [Board](/usc/49/10102.md?p=1) pursuant to [section 10701(d)(3)](/usc/49/10701.md?p=d-3).
- (d)
  - (1) The [Board](/usc/49/10102.md?p=1) shall maintain procedures to ensure the expeditious handling of challenges to the reasonableness of [railroad](/usc/49/10102.md?p=6) [rates](/usc/49/10102.md?p=7). The procedures shall include appropriate measures for avoiding delay in the discovery and evidentiary phases of such proceedings and exemption or revocation proceedings, including appropriate sanctions for such delay, and for ensuring prompt disposition of motions and interlocutory administrative appeals.
  - (2)
    - (A) Except as provided under [subparagraph (B)](#d-2-B), in a stand-alone cost [rate](/usc/49/10102.md?p=7) challenge, the [Board](/usc/49/10102.md?p=1) shall comply with the following timeline:
      - (i) Discovery shall be completed not later than 150 days after the date on which the challenge is initiated.
      - (ii) The development of the evidentiary record shall be completed not later than 155 days after the date on which discovery is completed under [clause (i)](#d-2-A-i).
      - (iii) The closing brief shall be submitted not later than 60 days after the date on which the development of the evidentiary record is completed under [clause (ii)](#d-2-A-ii).
      - (iv) A final [Board](/usc/49/10102.md?p=1) decision shall be issued not later than 180 days after the date on which the evidentiary record is completed under [clause (ii)](#d-2-A-ii).
    - (B) The [Board](/usc/49/10102.md?p=1) may extend a timeline under [subparagraph (A)](#d-2-A) after a request from any party or in the interest of due process.

## Source credit

(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 810; amended Pub. L. 104–287, § 5(23), Oct. 11, 1996, 110 Stat. 3390; Pub. L. 114–110, §§ 11(b), 16, Dec. 18, 2015, 129 Stat. 2233, 2238.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 10704, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1373; Pub. L. 96–296, § 13(b), July 1, 1980, 94 Stat. 803; Pub. L. 96–448, title II, § 205(b), Oct. 14, 1980, 94 Stat. 1906; Pub. L. 97–261, § 9(b), Sept. 20, 1982, 96 Stat. 1109; Pub. L. 99–521, § 7(b), Oct. 22, 1986, 100 Stat. 2994, related to authority and criteria for rates, classifications, rules, and practices prescribed by Interstate Commerce Commission, prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a). See sections 10704, 13701, and 15503 of this title.

### Amendments

2015—Subsec. (a)(2). Pub. L. 114–110, § 16, inserted “for the infrastructure and investment needed to meet the present and future demand for rail services and” after “management,” in introductory provisions.

Subsec. (d). Pub. L. 114–110, § 11(b), designated existing provisions as par. (1), substituted “The Board shall maintain procedures to ensure the expeditious handling of challenges to the reasonableness of railroad rates.” for “Within 9 months after January 1, 1996, the Board shall establish procedures to ensure expeditious handling of challenges to the reasonableness of railroad rates.”, and added par. (2).

1996—Subsec. (d). Pub. L. 104–287 substituted “January 1, 1996” for “the effective date of the ICC Termination Act of 1995”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section 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 1301 of this title.