49 U.S.C. § 10502

Authority to exempt rail carrier transportation

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(a) In a matter related to a rail carrier providing transportation subject to the jurisdiction of the Board under this part, the Board, to the maximum extent consistent with this part, shall exempt a person, class of persons, or a transaction or service whenever the Board finds that the application in whole or in part of a provision of this part—(1) is not necessary to carry out the transportation policy of section 10101 of this title; and(2) either—(A) the transaction or service is of limited scope; or(B) the application in whole or in part of the provision is not needed to protect shippers from the abuse of market power.(b) The Board may, where appropriate, begin a proceeding under this section on its own initiative or on application by the Secretary of Transportation or an interested party. The Board shall, within 90 days after receipt of any such application, determine whether to begin an appropriate proceeding. If the Board decides not to begin a class exemption proceeding, the reasons for the decision shall be published in the Federal Register. Any proceeding begun as a result of an application under this subsection shall be completed within 9 months after it is begun.(c) The Board may specify the period of time during which an exemption granted under this section is effective.(d) The Board may revoke an exemption, to the extent it specifies, when it finds that application in whole or in part of a provision of this part to the person, class, or transportation is necessary to carry out the transportation policy of section 10101 of this title. The Board shall, within 90 days after receipt of a request for revocation under this subsection, determine whether to begin an appropriate proceeding. If the Board decides not to begin a proceeding to revoke a class exemption, the reasons for the decision shall be published in the Federal Register. Any proceeding begun as a result of a request under this subsection shall be completed within 9 months after it is begun.(e) No exemption order issued pursuant to this section shall operate to relieve any rail carrier from an obligation to provide contractual terms for liability and claims which are consistent with the provisions of section 11706 of this title. Nothing in this subsection or section 11706 of this title shall prevent rail carriers from offering alternative terms nor give the Board the authority to require any specific level of rates or services based upon the provisions of section 11706 of this title.(f) The Board may exercise its authority under this section to exempt transportation that is provided by a rail carrier as part of a continuous intermodal movement.(g) The Board may not exercise its authority under this section to relieve a rail carrier of its obligation to protect the interests of employees as required by this part.(Added Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 808.)Editorial NotesPrior Provisions

Provisions similar to those in this section were contained in section 10505 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Prior sections 10502 to 10505, 10521 to 10531, 10541 to 10544, and 10561, were omitted in the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Section 10502, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1360, related to Interstate Commerce Commission jurisdiction over express carrier transportation.

Section 10503, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1360, related to railroad and water transportation connections and rates. See section 10703 of this title.

Section 10504, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1360; Pub. L. 97–449, § 4(b)(4), Jan. 12, 1983, 96 Stat. 2441; Pub. L. 103–272, § 4(j)(16), July 5, 1994, 108 Stat. 1369, related to jurisdiction of Commission over mass transportation provided by local governments. See section 10501 of this title.

Section 10505, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1361; Pub. L. 96–448, title II, § 213, Oct. 14, 1980, 94 Stat. 1912; Pub. L. 103–311, title II, § 205(a), (c)(1), Aug. 26, 1994, 108 Stat. 1683, 1684, related to authority of Commission to exempt rail carrier and motor carrier transportation. See sections 10502 and 13541 of this title.

Section 10521, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1361; Pub. L. 96–296, § 31(b), July 1, 1980, 94 Stat. 824; Pub. L. 97–261, § 6(f), Sept. 20, 1982, 96 Stat. 1107; Pub. L. 99–521, § 6(a), Oct. 22, 1986, 100 Stat. 2994; Pub. L. 103–305, title VI, § 601(b)(2)(C), Aug. 23, 1994, 108 Stat. 1606; Pub. L. 103–311, title II, § 211(b)(1), Aug. 26, 1994, 108 Stat. 1689, related to jurisdiction of Commission over motor carrier transportation. See section 13501 of this title.

Section 10522, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1362, related to exempt transportation between Alaska and other States. See section 13502 of this title.

Section 10523, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1362; Pub. L. 99–521, § 6(b), Oct. 22, 1986, 100 Stat. 2994, related to exempt motor vehicle transportation in terminal areas. See section 13503 of this title.

Section 10524, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1363; Pub. L. 96–296, § 9, July 1, 1980, 94 Stat. 798, related to Commission jurisdiction over transportation furthering a primary business. See section 13505 of this title.

Section 10525, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1363; Pub. L. 96–258, § 1(4), June 3, 1980, 94 Stat. 425; Pub. L. 97–261, § 30, Sept. 20, 1982, 96 Stat. 1128, related to exempt motor carrier transportation entirely in one State. See section 13504 of this title.

Section 10526, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1364; Pub. L. 96–258, § 1(5), June 3, 1980, 94 Stat. 425; Pub. L. 96–296, §§ 7, 21(a), 24(a), July 1, 1980, 94 Stat. 797, 812, 814; Pub. L. 96–454, § 11(a), Oct. 15, 1980, 94 Stat. 2023; Pub. L. 97–261, § 14(d), Sept. 20, 1982, 96 Stat. 1114; Pub. L. 97–377, § 152, Dec. 21, 1982, 96 Stat. 1918; Pub. L. 97–449, § 5(g)(1), Jan. 12, 1983, 96 Stat. 2442; Pub. L. 98–216, § 2(8), Feb. 14, 1984, 98 Stat. 5; Pub. L. 98–554, title II, § 227(c), Oct. 30, 1984, 98 Stat. 2852; Pub. L. 103–272, § 4(j)(17), July 5, 1994, 108 Stat. 1369, related to miscellaneous motor carrier transportation exemptions. See section 13506 of this title.

Section 10527, added Pub. L. 96–296, § 16(a), July 1, 1980, 94 Stat. 810; amended Pub. L. 103–272, § 5(m)(16), July 5, 1994, 108 Stat. 1377, related to written contracts pertaining to certain interstate movements by motor vehicle.

Section 10528, added Pub. L. 96–296, § 21(b)(1), July 1, 1980, 94 Stat. 812; amended Pub. L. 96–454, § 11(b), Oct. 15, 1980, 94 Stat. 2023; Pub. L. 103–272, § 5(m)(17), July 5, 1994, 108 Stat. 1377, related to mixed loads of regulated and unregulated property. See section 13507 of this title.

Section 10529, added Pub. L. 96–296, § 24(b)(1), July 1, 1980, 94 Stat. 814; amended Pub. L. 103–272, § 5(m)(18), July 5, 1994, 108 Stat. 1377, related to authority of Commission over cooperative associations. See section 13508 of this title.

Section 10530, added Pub. L. 98–554, title II, § 226(a)(1), Oct. 30, 1984, 98 Stat. 2848; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–690, title IX, § 9111(a)–(f), Nov. 18, 1988, 102 Stat. 4531–4533; Pub. L. 103–272, § 4(j)(18), (o), July 5, 1994, 108 Stat. 1369, 1371, related to certificates of registration for certain foreign carriers. See section 13902 of this title.

Section 10531, added Pub. L. 103–272, § 3(1), July 5, 1994, 108 Stat. 1360, related to mass transportation exemption from Commission jurisdiction.

Section 10541, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1365, related to jurisdiction of Commission over transportation by water carriers. See section 13521 of this title.

Section 10542, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1366; Pub. L. 98–89, § 3(b), Aug. 26, 1983, 97 Stat. 599; Pub. L. 98–216, § 2(9), (10), Feb. 14, 1984, 98 Stat. 5; Pub. L. 103–272, § 5(m)(19), July 5, 1994, 108 Stat. 1377, related to exemption of transportation by water carriers of commodities in bulk from Commission jurisdiction.

Section 10543, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1367, related to exemption of certain incidental water transportation from jurisdiction of Commission.

Section 10544, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1368; Pub. L. 96–258, § 1(6), June 3, 1980, 94 Stat. 425; Pub. L. 97–449, § 5(g)(2), Jan. 12, 1983, 96 Stat. 2443; Pub. L. 98–216, § 2(11), Feb. 14, 1984, 98 Stat. 5; Pub. L. 103–272, § 5(m)(19), July 5, 1994, 108 Stat. 1377, related to exemption of certain miscellaneous water carrier transportation from Commission jurisdiction.

Section 10561, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1369; Pub. L. 99–521, § 6(c), Oct. 22, 1986, 100 Stat. 2994; Pub. L. 103–272, § 5(m)(20), July 5, 1994, 108 Stat. 1377, related to jurisdiction of Commission over services of household goods freight forwarders. See section 13531 of this title.

A prior section 10562, Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1369; Pub. L. 97–449, § 5(g)(3), Jan. 12, 1983, 96 Stat. 2443, related to exempt freight forwarder service, prior to repeal by Pub. L. 99–521, §§ 6(d)(1), 15, Oct. 22, 1986, 100 Stat. 2994, 2999, effective 60 days after Oct. 22, 1986.

Statutory Notes and Related SubsidiariesEffective 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.

Notes of Decisions

Cited in 145 cases (13 in the last 5 years), 1995–2026 · leading case: Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp., 561 U.S. 89 (2010).

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Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp., 561 U.S. 89 (2010). · cites it 8× “(exercising STB’s deregulation authority under 49 U. S. C. §10502 (f)). Finally, the cargo owners miss the mark in relying on the recent United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, 20 KAWASAKI KISEN KAISHA LTD.”

Alaska Survival v. Surface Transp. Bd., 705 F.3d 1073 (9th Cir. 2013). · cites it 6× “The STB granted ARRC an exemption under 49 U.S.C. § 10502 of the Interstate Commerce Commission Termination Act of 1995 (ICCTA) and authorized ARRC to construct the rail line.”

Sompo Japan Ins. Co. of Am. v. Union Pac. R.R. Co., Docket No. 04-4066-Cv, 456 F.3d 54 (2d Cir. 2006). · cites it 4× “” 49 U.S.C. § 10502 (f). Pursuant to this authority, the ICC exempted from regulation rail carriers, like Union Pacific, that operate one leg of a continuous intermodal movement.”

Medina Cnty. Env't Action Ass'n v. Surface Transp. Bd., 602 F.3d 687 (5th Cir. 2010). · cites it 3× “The Decision granted an exemption under 49 U.S.C. § 10502 that allows the intervenor, Southwest Gulf Railroad Co.”

Caldwell, Iii v. United States, 391 F.3d 1226 (Fed. Cir. 2004). · cites it 2× “§ 10903 ; or (2) seek an exemption, under 49 U.S.C. § 10502 . 2 If the STB approves a standard abandonment application or grants an exemption and the railroad ceases operation, the STB relinquishes jurisdiction over the abandoned railroad right-of-way and state law reversionary…”

CNA Ins. v. Hyundai Merch. Marine Co., 747 F.3d 339 (6th Cir. 2014). · cites it 4× “2009) (relying on 49 U.S.C. § 10502 (e) and § 11706). Here, both rail carriers offered Carmack coverage to Hyundai (at a higher price) and Hyundai declined — but neither rail carrier nor Hyundai ever offered a Carmack coverage option to Corning.”

Chartis Seguros Mexico, S.A. de C.V. v. HLI Rail & Rigging, LLC, 3 F. Supp. 3d 171 (S.D.N.Y. 2014). · cites it 4× “96-448 (1980), continued deregulation by providing mechanisms for rail carriers to *181 transport goods at negotiated contract rates rather than at prescribed common carrier rates through exemption under 49 U.S.C. § 10502 or private contract under 49 U.”

Ladd v. United States, 630 F.3d 1015 (Fed. Cir. 2010). · cites it 2× “2 miles of the railway by filing a petition with the STB under 49 U.S.C. § 10502 seeking exemption from the requirements of 49 U.”

Schoenmann Produce Co. v. Burlington N. & Santa Fe Ry. Co., 420 F. Supp. 2d 757 (S.D. Tex. 2006). · cites it 6× “Burlington has responded to the motion to remand, asserting that the potato shipments were governed by a different statute, 49 U.S.C. § 10502 (e), which authorizes the exemption of potato shipments from regulatory oversight and allows carriers to offer alternative terms to the…”

Hardy v. United States, 127 Fed. Cl. 1 (Fed. Cl. 2016). · cites it 2× “§ 10903 , or by requesting that the STB exempt it from such proceedings pursuant to 49 U.S.C. § 10502 . When considering the railroad company’s abandonment application or exemption request, the STB will entertain protests and comments from interested third parties.”

Rogers v. United States, 90 Fed. Cl. 418 (Fed. Cl. 2009). · cites it 2× “§ 10903 ; or (2) seeking an exemption under 49 U.S.C. § 10502 . Caldwell v. United States, 391 F.”

United Transp. Union v. Burlington N. Santa Fe R.R., 528 F.3d 674 (9th Cir. 2008). · cites it 4× “LSC’s acquisition of trackage rights is an exempt transaction under 49 U.S.C. § 10502 (a). The first step in the analysis is to characterize the trackage rights agreement under the ICA.”

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