45 U.S.C. § 716 — Final system plan

Page 162 TITLE 45—RAILROADS § 713 Subsec. (e). Pub. L. 94–210, § 607(b), in cl. (4) inserted ‘‘, certificates of value issued, securities purchased,’’ after ‘‘obligations issued’’. Subsec. (f). Pub. L. 94–210, § 607(c), inserted provisions relating to receipts and disbursements under sections 726 and 746 of this title. 1975—Subsec. (b)(2). Pub. L. 94–5, § 2(a)(1), inserted ‘‘and express’’ after ‘‘rail’’ wherever appearing. Subsec. (b)(7). Pub. L. 94–5, § 2(a)(2), substituted ‘‘; and’’ for a period at end of par. (7). Subsec. (b)(8). Pub. L. 94–5, § 2(a)(3), added par. (8). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1169 of Pub. L. 97–35, set out as an Effective Date note under section 1101 of this title. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–73 effective Oct. 1, 1979, see section 501(a) of Pub. L. 96–73. TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which reports required under subsecs. (d)(1), (3), (e), and (f) of this section are listed as the 3rd through 6th items on page 195), see sec- tion 3003 of Pub. L. 104–66, as amended, and section 1(a)(4) [div. A, § 1402(1)] of Pub. L. 106–554, set out as notes under section 1113 of Title 31, Money and Fi- nance. ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGA- NIZATION ACT OF 1973, AND TRANSFER OF FUNCTIONS Special court abolished and all jurisdiction and func- tions transferred to United States District Court for District of Columbia, see section 719(b)(2) of this title. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 713. Access to information The Corporation shall make available to the Association such information as the Association determines necessary for the Association to carry out its functions under this chapter. The Association shall request from other parties which are affected by this chapter information which will enable the Association to fulfill its functions under this chapter. (Pub. L. 93–236, title II, § 203, Jan. 2, 1974, 87 Stat. 992; Pub. L. 94–210, title VI, § 607(d), Feb. 5, 1976, 90 Stat. 96; Pub. L. 97–35, title XI, § 1149, Aug. 13, 1981, 95 Stat. 675.) Editorial Notes AMENDMENTS 1981—Pub. L. 97–35 substituted provisions relating to the Corporation making available to the Association all necessary information for provisions set out as sub- secs. (a) to (d) respecting planning and other informa- tion availability, and enforcement procedures. 1976—Subsec. (a). Pub. L. 94–210 struck out provisions prohibiting requests for information under this sub- section after effective date of the final system plan. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1169 of Pub. L. 97–35, set out as an Effective Date note under section 1101 of this title. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 714. Omitted Editorial Notes CODIFICATION Section, Pub. L. 93–236, title II, § 204, Jan. 2, 1974, 87 Stat. 993, directed the Secretary, within 30 days after Jan. 2, 1974, to prepare a report, with recommendations, with respect to the geographic zones within the region in which said service should be provided, to submit the report to the Office, the Association, the Governor, and the public utilities commission of each State studied in the report and to local governments, consumer organi- zations, environmental groups, the public, and to Con- gress, and to publish the report in the Federal Register. Statutory Notes and Related Subsidiaries DELAWARE-MARYLAND-VIRGINIA PENINSULA RAIL STUDY; REPORT TO CONGRESS Pub. L. 94–555, title III, § 302, Oct. 19, 1976, 90 Stat. 2631, directed Interstate Commerce Commission to sub- mit a report to Congress, within six months of Oct. 19, 1976, regarding problems of and need for rail transpor- tation services on Delaware-Maryland-Virginia penin- sula. § 715. Repealed. Pub. L. 95–473, § 4(b), Oct. 17, 1978, 92 Stat. 1466 Section, Pub. L. 93–236, title II, § 205, Jan. 2, 1974, 87 Stat. 993, Pub. L. 94–5, § 3, Feb. 28, 1975, 89 Stat. 7; Pub. L. 94–210, title III, § 309, Feb. 5, 1976, 90 Stat. 57, estab- lished Rail Services Planning Office. § 716. Final system plan (a) Goals The final system plan shall be formulated in such a way as to effectuate the following goals: (1) the creation, through a process of reorga- nization, of a financially self-sustaining rail and express service system in the region; (2) the establishment and maintenance of a rail service system adequate to meet the rail transportation needs and service requirements of the region; (3) the establishment of improved high-speed rail passenger service, consonant with the rec- ommendations of the Secretary in his report of September 1971, entitled ‘‘Recommenda- tions for Northeast Corridor Transportation’’; (4) the preservation, to the extent consistent with other goals, of existing patterns of serv- ice by railroads (including short-line and ter- minal railroads), and of existing railroad trackage in areas in which fossil fuel natural resources are located, and the utilization of Page 163 TITLE 45—RAILROADS § 716 1 See References in Text note below. those modes of transportation in the region which require the smallest amount of scarce energy resources and which can most effi- ciently transport energy resources; (5) the retention and promotion of competi- tion in the provision of rail and other trans- portation services in the region; (6) the attainment and maintenance of any environmental standards, particularly the ap- plicable national ambient air quality stand- ards and plans established under the Clean Air Act Amendments of 1970, taking into consider- ation the environmental impact of alternative choices of action; (7) the movement of passengers and freight in rail transportation in the region in the most efficient manner consistent with safe op- eration, including the requirements of com- muter and intercity rail passenger service; the extent to which there should be coordination with the National Railroad Passenger Cor- poration and similar entities; and the identi- fication of all short-to-medium distance cor- ridors in densely populated areas in which the major upgrading of rail lines for high-speed passenger operation would return substantial public benefits; and (8) the minimization of job losses and associ- ated increases in unemployment and commu- nity benefit costs in areas in the region pres- ently served by rail service. (b) Factors The final system plan shall be based upon due consideration of all factors relevant to the real- ization of the goals set forth in subsection (a) of this section. Such factors include the need for and the cost of rehabilitation and modernization of track, equipment, and other facilities; meth- ods of achieving economies in the cost of rail op- erations in the region; means of achieving ra- tionalization of rail services and the rail service system in the region; marketing studies; the im- pact on railroad employees; consumer needs; traffic analyses; financial studies; and any other factors identified by the Association under sec- tion 712(b) 1 of this title or in the report of the Secretary required under section 714(a) of this title. (c) Designations The final system plan shall designate— (1) which rail properties of railroads in reor- ganization in the region or of railroads leased, operated, or controlled by any railroad in re- organization in the region— (A) shall be transferred to the Corporation: Provided, That the Corporation shall, within 95 days after the effective date of the final system plan, give notice to the Association of which such rail properties, if any, are to be transferred to a subsidiary of the Cor- poration in the event that the Board of Di- rectors of the Association finds that such transfer would be consistent with the final system plan; (B) shall be offered for sale to a profitable railroad operating in the region and, if such offer is accepted, operated by such railroad; the plan shall designate what additions shall be made to the designation under subpara- graph (A) of this paragraph and what alter- native designations shall be made under this paragraph in the event such profitable rail- road fails to accept such offer; (C) shall be purchased, leased, or otherwise acquired from the Corporation by the Na- tional Railroad Passenger Corporation in ac- cordance with the exercise of its option under section 791(d) of this title for improve- ment to achieve the goal set forth in sub- section (a)(3) of this section; (D) may be purchased or leased from the Corporation by (i) a State or a local or re- gional transportation authority to meet the needs of commuter and intercity rail pas- senger service, or (ii) the National Railroad Passenger Corporation to meet the needs of improved rail passenger service over inter- city routes, other than properties designated pursuant to subparagraph (C) of this para- graph; and (E) if not otherwise required to be oper- ated by the Corporation, a government enti- ty, or a responsible person, are suitable for use for other public purposes, including highways, other forms of transportation, conservation, energy transmission, edu- cation or health care facilities, or recre- ation. In carrying out this subparagraph, the Association shall solicit the views and rec- ommendations of the Secretary, the Sec- retary of the Interior, the Administrator of the Environmental Protection Agency, and other agencies of the Federal Government and of the States and political subdivisions thereof within the region, and the general public; and (2) which rail properties of profitable rail- roads operating in the region may be offered for sale to the Corporation or to other profit- able railroads operating in the region subject to paragraphs (3) and (4) of subsection (d) of this section. Any rail properties designated to be offered for sale to the Corporation may be sold instead to a subsidiary of the Corpora- tion. (d) Transfers All transfers or conveyances pursuant to the final system plan shall be made in accordance with, and subject to, the following principles: (1) All rail properties to be transferred to the Corporation or any subsidiary thereof by a profitable railroad, by trustees of a railroad in reorganization, or by any railroad leased, op- erated, or controlled by a railroad in reorga- nization in the region, shall be transferred in exchange for stock and other securities of the Corporation or any subsidiary thereof (includ- ing obligations of the Association) and the other benefits accruing to such railroad by reason of such transfer. (2) All rail properties to be conveyed to a profitable railroad operating in the region by trustees of a railroad in reorganization, or by any railroad leased, operated, or controlled by a railroad in reorganization in the region, shall be conveyed in exchange for compensa- tion from the profitable railroad. (3) Notwithstanding any other provision of this chapter, no acquisition under this chapter Page 164 TITLE 45—RAILROADS § 716 shall be made by any profitable railroad oper- ating in the region without a determination with respect to each such transaction and all such transactions cumulatively (A) by the As- sociation, upon adoption and release of the preliminary system plan, that such acquisi- tion or acquisitions will not materially impair the profitability of any other profitable rail- road operating in the region or of the Corpora- tion, and (B) by the Commission, which shall be made within 90 days after adoption and re- lease by the Association of the preliminary system plan, that such acquisition or acquisi- tions will be in full accord and comply with the provisions and standards of subchapter III 1 of chapter 113 of title 49. All determinations made by the Association in the correction to the preliminary system plan published on April 11, 1975 (40 Fed. Reg. 16377), shall be treated for all purposes as if they had been made upon adoption and release by the Asso- ciation of the preliminary system plan. All de- terminations made by the Commission with respect to such correction shall be treated for all purposes as if they had been made within 90 days after adoption and release by the Asso- ciation of the preliminary system plan. All de- terminations made by the Commission with respect to acquisitions by profitable railroads referred to in any supplement to the prelimi- nary system plan published under section 717(b)(2) of this title shall be deemed to be timely if made prior to the adoption of the final system plan under section 717(c) of this title. The determination by the Association shall not be reviewable in any court. The de- termination by the Commission shall not be reviewable in any court. (4) Where the final system plan designates specified rail properties of a railroad in reor- ganization in the region, or of a railroad leased, operated, or controlled by a railroad in reorganization in the region, to be offered for sale to and operated by a profitable railroad operating in the region, such designation shall terminate 7 days after February 5, 1976, unless, prior to such date, such profitable railroad has notified the Association in writing of its ac- ceptance of such offer. Any such offer may be modified until the date of acceptance thereof, unless such modification results in an offer for the sale of rail properties at less than the net liquidation value thereof. Where the final sys- tem plan designates specified rail properties of a profitable railroad operating in the region as authorized to be offered for sale or lease to the Corporation or to other profitable railroads operating in the region, such designation and authorization shall terminate 95 days after the effective date of the final system plan unless, prior to such date, a binding agreement with respect to such properties has been entered into and concluded. (5) All properties— (A) transferred by the Corporation pursu- ant to subsection (c)(1)(C) of this section and section 791(d) of this title; (B) transferred by the Corporation to any State (or local or regional transportation authority), pursuant to subsection (c)(1)(D) of this section, or (C) transferred by the Corporation to any State, local or regional transportation au- thority, or the National Railroad Passenger Corporation, within 3 years after the date of conveyance, pursuant to section 743(b)(1) of this title, to meet the needs of commuter or intercity rail passenger service, shall be transferred at a value related to the value received from the Corporation pursuant to the final system plan for the transfer to such Corporation of such properties. The value of any such properties, which are transferred pursuant to subparagraph (B) or (C) of this paragraph, shall be adjusted to reflect the value attributable to any applicable mainte- nance and improvement provided by the Cor- poration (to the extent the Corporation has not been released from the obligation to pay for such improvements) and the cost to the Corporation of transferring such properties. The Corporation, its Board of Directors, and its individual directors shall not be liable to any party, for money damages or in any other manner, solely by reason of the fact that the Corporation transferred property pursuant to section 743 of this title to meet the needs of commuter or intercity rail passenger service or for purposes of providing rail marine freight floating service, except as otherwise provided with respect to the Corporation pursuant to section 743(c)(2) of this title. (6) Notwithstanding any statement to the contrary in the final system plan, a State (or a local or regional transportation authority) shall not be required to deliver to the Corpora- tion a firm commitment to acquire rail prop- erties designated to such State or authority prior to 7 days after February 5, 1976. (7) Notwithstanding any contrary provision in the options conveyed to the Corporation by railroads in reorganization, or railroads leased, operated, or controlled by a railroad in reorganization, with respect to the acquisition by the Corporation pursuant to the final sys- tem plan, on behalf of a State (or a local or re- gional transportation authority) of rail prop- erties designated under subsection (c)(1)(D) of this section, such options shall not be deemed to have expired prior to 7 days after Sep- tember 30, 1976. The exercise by the Corpora- tion of any such option shall be effective if it is made, prior to the expiration of such 7-day period, in the manner prescribed in such op- tions. (e) Corporation features The final system plan shall set forth— (1) pro forma earnings for the Corporation, as reasonably projected and considering the additions or changes in the designation of rail properties to be operated by the Corporation which may be made under subsection (d)(4) of this section; (2) the capital structure of the Corporation, based on the pro forma earnings of the Cor- poration as set forth, including such debt cap- italization as shall be reasonably deemed to conform to the requirements of the public in- terest with respect to railroad debt securities, including the adequacy of coverage of fixed charges; and Page 165 TITLE 45—RAILROADS § 716 (3) the manner in which employee stock ownership plans may, to the extent prac- ticable, be utilized for meeting the capitaliza- tion requirements of the Corporation, taking into account (A) the relative cost savings com- pared to conventional methods of corporate fi- nance; (B) the labor cost savings; (C) the po- tential for minimizing strikes and producing more harmonious relations between labor or- ganizations and railway management; (D) the projected employee dividend incomes; (E) the impact on quality of service and prices to rail- way users; and (F) the promotion of the objec- tives of this chapter of creating a financially self-sustaining railway system in the region which also meets the service needs of the re- gion and the Nation. (f) Value The final system plan shall designate the value of all rail properties to be transferred under the final system plan and the value of the securities and other benefits to be received for transferring those rail properties to the Cor- poration in accordance with the final system plan. (g) Other provisions The final system plan may recommend ar- rangements among various railroads for joint use or operation of rail properties on a shared ownership, cooperative, pooled, or condo- minium-type basis, subject to such terms and conditions as may be specified in the final sys- tem plan. The final system plan shall also make such designations as are determined to be nec- essary in accordance with the provisions of sec- tion 762 or 763 1 of this title. (h) Obligational authority The final system plan shall recommend the amount of obligations of the Association which are necessary to enable it to implement the final system plan. (i) Terms and conditions for securities The final system plan may include terms and conditions for any securities to be issued by the Corporation in exchange for the conveyance of rail properties under the final system plan which in the judgement of the Association will minimize any actual or potential debt burden on the Corporation. Any such terms and conditions for securities of the Corporation which purport to directly obligate the Association shall not be- come effective without affirmative approval, with or without modification by a joint resolu- tion of the Congress. (j) Additional properties deemed designated Any rail properties over which rail service was being provided as of February 5, 1976, and which were recommended in the preliminary system plan for transfer to the Corporation, shall be deemed to be designated in the final system plan for transfer to the Corporation under subsection (c)(1)(A) of this section. Any designation in the final system plan, pursuant to subsection (c)(1)(B) of this section, of overhead trackage rights to be acquired by a profitable railroad op- erating in the region over specified rail prop- erties to be acquired by the Corporation, where such designation does not (1) authorize such profitable railroad to interchange traffic with at least one railroad, or (2) provide for the connec- tion of portions of such profitable railroad’s rail properties, and where the transfer of ownership of such rail properties (including trackage rights) to such profitable railroad was rec- ommended in the preliminary system plan, and the Commission has made a determination with respect thereto, in accordance with subsection (d)(3) of this section, shall be deemed to author- ize such profitable railroad to interchange traf- fic with the Corporation and any other profit- able railroad connecting with such specified rail properties. (Pub. L. 93–236, title II, § 206, Jan. 2, 1974, 87 Stat. 994; Pub. L. 94–5, § 2(b), Feb. 28, 1975, 89 Stat. 7; Pub. L. 94–210, title VI, § 607(e)–(j), (o)–(q), title VIII, § 807, Feb. 5, 1976, 90 Stat. 96–98, 143; Pub. L. 94–436, §§ 2, 4, Sept. 30, 1976, 90 Stat. 1398; Pub. L. 94–555, title II, § 202(a), (c), Oct. 19, 1976, 90 Stat. 2616, 2617; Pub. L. 95–611, § 4(a), Nov. 8, 1978, 92 Stat. 3090.) Editorial Notes REFERENCES IN TEXT Clean Air Act Amendments of 1970, referred to in sub- sec. (a)(6), mean Pub. L. 91–604, Dec. 31, 1970, 84 Stat. 1676. For complete classification of this Act to the Code, see Short Title of 1970 Amendment note set out under section 7401 of Title 42, The Public Health and Welfare, and Tables. Section 712(b) of this title, referred to in subsec. (b), which related to additional duties of the Association, was repealed and section 712(c) of this title was redesig- nated section 712(b) by Pub. L. 97–35, title XI, § 1148(a), Aug. 13, 1981, 95 Stat. 674. Section 714 of this title, referred to in subsec. (b), was omitted from the Code. Subchapter III of chapter 113 of title 49, referred to in subsec. (d)(3), was omitted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804. Pre- viously, in subsec. (d)(3), ‘‘subchapter III of chapter 113 of title 49’’ was substituted for ‘‘section 5 of part I of the Interstate Commerce Act (49 U.S.C. 5)’’ on author- ity of Pub. L. 95–473, § 3(b), Oct. 17, 1978, 92 Stat. 1446, the first section of which enacted subtitle IV (§ 10101 et seq.) of Title 49. Sections 762 and 763 of this title, referred to in sub- sec. (g), were repealed by Pub. L. 94–210, title VIII, § 806, Feb. 5, 1976, 90 Stat. 143, eff. Apr. 1, 1978. AMENDMENTS 1978—Subsec. (d)(5)(C). Pub. L. 95–611 substituted ‘‘3 years’’ for ‘‘900 days’’. 1976—Subsec. (c)(1)(A). Pub. L. 94–210, § 607(g), inserted proviso relating to notice by the Corporation to the As- sociation. Subsec. (c)(1)(B). Pub. L. 94–210, § 607(f), inserted pro- vision relating to alternative designations to be made under this paragraph. Subsec. (c)(1)(D). Pub. L. 94–210, § 607(j), designated ex- isting provision as cl. (i) and added cl. (ii). Subsec. (c)(2). Pub. L. 94–210, § 607(h), inserted provi- sion relating to sale of designated properties to a sub- sidiary of the Corporation. Subsec. (d)(1). Pub. L. 94–210, § 607(i), inserted ‘‘or any subsidiary thereof’’ after ‘‘Corporation’’ wherever ap- pearing. Subsec. (d)(3). Pub. L. 94–210, § 607(e), inserted provi- sions relating to correction to the preliminary system plan published in 40 Fed. Reg. 16377, determinations made with respect to such correction by the Commis- sion, and determinations made with respect to acquisi- tions referred to in any supplement to the preliminary system plan. Page 166 TITLE 45—RAILROADS § 717 Subsec. (d)(4). Pub. L. 94–210, § 607(o), inserted provi- sion relating to modification of offer until the date of acceptance, and substituted ‘‘95’’ for ‘‘60’’ and ‘‘7 days after February 5, 1976,’’ for ‘‘30 days after the effective date of the final system plan’’. Subsec. (d)(5). Pub. L. 94–555, § 202(a), inserted ‘‘or for purposes of providing rail marine freight floating serv- ice’’ after ‘‘intercity rail passenger service’’. Pub. L. 94–436, § 2, inserted provision relieving the Corporation, its Board of Directors, and its individual directors from liability to any party by reason of the fact that the Corporation transferred property pursu- ant to section 743 of this title. Pub. L. 94–210, § 807, restructured provisions and sub- stituted provisions relating to valuation of transferred properties transferred by the Corporation and adjust- ment of such valuation, for provisions relating to valu- ation of transferred properties sold by the Corporation. Subsec. (d)(6). Pub. L. 94–210, § 607(p), added par. (6). Subsec. (d)(7). Pub. L. 94–555, § 202(c), inserted ‘‘by the Corporation pursuant to the final system plan’’ after ‘‘with respect to the acquisition’’. Pub. L. 94–436, § 4, added par. (7). Subsec. (j). Pub. L. 94–210, § 607(q), added subsec. (j). 1975—Subsec. (a)(1). Pub. L. 94–5 inserted ‘‘and ex- press’’ after ‘‘rail’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95–611, § 4(b), Nov. 8, 1978, 92 Stat. 3090, pro- vided that: ‘‘The amendment made by this Act [prob- ably meaning this section 4, which amended section 716 of this title] shall be effective on January 2, 1974.’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–555 effective Oct. 1, 1976, see section 303 of Pub. L. 94–555, set out as a note under section 702 of this title. ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF FUNCTIONS Interstate Commerce Commission abolished and func- tions of Commission transferred, except as otherwise provided in Pub. L. 104–88, to Surface Transportation Board effective Jan. 1, 1996, by section 1302 of Title 49, Transportation, and section 101 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. References to Interstate Commerce Commission deemed to refer to Surface Transportation Board, a member or employee of the Board, or Secretary of Transportation, as appro- priate, see section 205 of Pub. L. 104–88, set out as a note under section 1301 of Title 49. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT Application of National Environmental Policy Act to actions of Commission not affected by title VI of Pub. L. 94–210, see section 619 of Pub. L. 94–210, set out as a note under section 791 of this title. § 717. Adoption of final system plan (a) Preliminary system plan (1) Within 420 days after January 2, 1974, the Association shall adopt and release a prelimi- nary system plan prepared by it on the basis of reports and other information submitted to it by the Secretary, the Office, and interested persons in accordance with this chapter and on the basis of its own investigations, consultations, re- search, evaluation, and analysis pursuant to this chapter. Copies of the preliminary system plan shall be transmitted by the Association to the Secretary, the Office, the Governor and public utility commission of each State in the region, the Congress, each court having jurisdiction over a railroad in reorganization in the region, the special court, and interested persons, and a copy shall be published in the Federal Register. The Association shall invite and afford inter- ested persons an opportunity to submit com- ments on the preliminary system plan to the As- sociation within 60 days after the date of its re- lease. (2) The Office is authorized and directed to hold public hearings on the preliminary system plan and to make available to the Association a summary and analysis of the evidence received in the course of such proceedings, together with its critique and evaluation of the preliminary system plan, not later than 60 days after the date of release of such plan. The Office is au- thorized to hold public hearings on any supple- ment to the preliminary system plan and to make available to the Association a summary and analysis of the evidence received in the course of such proceedings, together with its cri- tique and evaluation of such supplement, not later than 30 days after the release of such sup- plement. (b) Approval (1) Within 120 days after January 2, 1974, each United States district court or other court hav- ing jurisdiction over a railroad in reorganization shall decide whether the railroad is reorganiz- able on an income basis within a reasonable time under section 77 of the Bankruptcy Act and that the public interest would be better served by continuing the present reorganization pro- ceedings than by a reorganization under this chapter. Within 60 days after the submission of the report by the Office, under section 715(d)(1) of this title, on the Secretary’s report on rail services in the region, each United States dis- trict court or other court having jurisdiction over a railroad in reorganization shall decide whether or not such railroad shall be reorga- nized by means of transferring some of its rail properties to the Corporation pursuant to the provisions of this chapter. Because of the strong public interest in the continuance of rail trans- portation in the region pursuant to a system plan devised under the provisions of this chap- ter, each such court shall order that the reorga- nization be proceeded with pursuant to this chapter unless it (1) has found that the railroad is reorganizable on an income basis within a rea- sonable time under section 77 of the Bankruptcy Act and that the public interest would be better served by such a reorganization than by a reor- ganization under this chapter, or (2) finds that this chapter does not provide a process which would be fair and equitable to the estate of the railroad in reorganization in which case it shall dismiss the reorganization proceeding. If a court does not enter an order or make a finding as re- quired by this subsection, the reorganization shall be proceeded with pursuant to this chap- ter. An appeal from an order made under this section may be made only to the special court. Appeal to the special court shall be taken with- in 10 days following entry of an order pursuant