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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- Nos. 90-1419 and 90-1769
- --------
- NATIONAL RAILROAD PASSENGER CORPORATION,
- et al., PETITIONERS
- 90-1419 v.
- BOSTON AND MAINE CORPORATION et al.
-
- INTERSTATE COMMERCE COMMISSION AND
- UNITED STATES, PETITIONERS
- 90-1769 v.
- BOSTON AND MAINE CORPORATION et al.
- on writs of certiorari to the united states court of
- appeals for the district of columbia circuit
- [March 25, 1992]
-
- Justice Kennedy delivered the opinion of the Court.
- The Interstate Commerce Commission (ICC) issued an
- order, upon the request of petitioner National Railroad
- Passenger Corporation, requiring conveyance of 48.8 miles
- of railroad track from respondent Boston and Maine
- Corporation (B&M) to the Corporation. In these consolidat-
- ed cases we must decide whether the ICC's decision was
- based on a reasonable interpretation and application of
- 402(d) of the Rail Passenger Service Act, 45 U. S. C.
- 562(d), the statute the Corporation invoked in the proceed-
- ing. We hold the ICC's decision is authorized by the
- statute, and so reverse the judgment of the Court of
- Appeals for the District of Columbia Circuit, which set
- aside the agency's action.
- I
- The National Railroad Passenger Corporation, or Amtrak,
- is a private, for-profit corporation created by Congress in
- the Rail Passenger Service Act of 1970 (RPSA), Pub. L.
- 91-518, 84 Stat. 1328, 45 U. S. C. 501 et seq. The purpose
- of Amtrak is to provide modern and efficient intercity and
- commuter rail passenger service. 501, 541. Amtrak is
- not an agency or instrumentality of the United States
- Government, 541, but it has been supported over the years
- by congressional appropriations. Most of Amtrak's passen-
- ger trains run over existing track systems owned and used
- by freight railroads. In the RPSA Congress authorized
- Amtrak to enter into ``trackage rights'' agreements which
- would allow Amtrak to use those tracks. When Amtrak and
- a freight railroad are unable to agree on the terms of such
- an agreement, Amtrak may request the ICC to order the
- track to be provided on reasonable terms. 562(a).
- In 1973 Congress amended the RPSA to add subsection
- (d) of 402, 45 U. S. C. 562(d). Section 562(d) provides in
- pertinent part:
- ``(1) If the Corporation [Amtrak] and a railroad are
- unable to agree upon terms for the sale to the Corpora-
- tion of property (including interests in property) owned
- by the railroad and required for intercity rail passenger
- service, the Corporation may apply to the Commission
- [ICC] for an order establishing the need of the Corpora-
- tion for the property at issue and requiring the convey-
- ance thereof from the railroad to the Corporation on
- reasonable terms and conditions, including just com-
- pensation. Unless the Commission finds that-
- ``(A) conveyance of the property to the Corporation
- would significantly impair the ability of the railroad to
- carry out its obligations as a common carrier; and
- ``(B) the obligations of the Corporation to provide
- modern, efficient, and economical rail passenger service
- can adequately be met by the acquisition of alternative
- property (including interests in property) which is
- available for sale on reasonable terms to the Corpora-
- tion, or available to the Corporation by the exercise of
- its authority under section 545(d) of this title,
-
- ``the need of the Corporation for the property shall be
- deemed to be established and the Commission shall
- order the conveyance of the property to the Corporation
- on such reasonable terms and conditions as it may
- prescribe, including just compensation.''
- Amtrak may condemn nonrail property under a somewhat
- similar provision, 545(d), a statute not at issue here.
- The Amtrak train the ``Montrealer'' began offering
- passenger service between Washington, D.C. and Montreal
- in 1972. In parts of Massachusetts, Vermont, and New
- Hampshire the train used the tracks of the Connecticut
- River Line (Conn River Line), portions of which are owned
- by B&M and other portions by the Central Vermont
- Railroad (CV). B&M and CV have operated freight trains
- on the Conn River Line under reciprocal trackage rights
- agreements dating back to 1930.
- In 1977 Amtrak entered into a trackage rights agreement
- with B&M under which B&M agreed to maintain its
- portions of the Conn River Line. Those portions include a
- 48.8 mile segment of track on the Conn River Line between
- Brattleboro and Windsor, Vermont. This is the segment of
- track at issue here. At first the arrangement to maintain
- the track proceeded well, but in the early 1980's problems
- developed. Guilford Transportation Industries, Inc., pur-
- chased B&M out of bankruptcy, and purchased also a
- railroad operating a parallel line. Amtrak's claim is that
- neglect of track maintenance resulting from this purchase
- caused delays in Montrealer service. Maintenance of the
- Brattleboro-Windsor track was so poor that at points the
- train was slowed to five miles an hour. Negotiations for
- better maintenance were unsuccessful. In April 1987
- Amtrak was forced to discontinue its Montrealer service.
-
- Congress responded to these events in July of 1987 by
- appropriating $5 million to upgrade the Montrealer route.
- Act of July 11, 1987, Pub. L. 100-71, 101 Stat. 447-448.
- Amtrak decided not to spend the money to upgrade the
- Conn River Line while B&M continued to own it, because
- in Amtrak's view B&M could not be relied upon to maintain
- the track once restored. Amtrak began negotiations with
- CV, and in early 1988 reached a preliminary agreement.
- Amtrak promised to use its statutory condemnation power
- to acquire the 48.8 miles of track in question, to at once
- reconvey the track to CV, and to provide up to $3.1 million
- to upgrade and rehabilitate the segment. In return, CV
- promised to provide the balance of the funds necessary to
- upgrade the track, to maintain the track for 20 years in a
- condition meeting Amtrak's standards, to grant Amtrak
- trackage rights for 20 years, and to grant B&M trackage
- rights to serve its existing customers. As a prerequisite
- to invoking 562(d), Amtrak made an offer to B&M to
- purchase the segment for $1 million, on a take-it-or-leave-it
- basis. B&M offered to negotiate the terms under which it
- would be willing to upgrade the segment, and stated, ``it
- appears clear that there is no need to pursue the very
- complex `offer to purchase' set forth in your letter.'' App.
- 60. B&M's refusal to accept the offer seems to have been
- anticipated by Amtrak and CV, as indicated by an internal
- CV Memorandum written in January, 1988. App. 94.
- Interpreting the B&M communication as a rejection of its
- offer, Amtrak instituted this proceeding before the ICC to
- compel conveyance of the track. CV filed a simultaneous
- request for an exemption from ICC regulation for its
- acquisition of the segment upon reconveyance from Amtrak.
- B&M assessed the transaction as a significant shift in its
- long competition with CV for freight traffic. CV already
- owned large parts of the Conn River Line and after the
- proposed transaction it would own most of it. Though
- B&M would have trackage rights, CV would gain not only
- ownership of the segment, but also the right to obtain
- new customers on its route. B&M alleged this gave a
- new advantage to CV's corporate parent, the Canadian
- National Railway Company, for each railroad links up with
- competing companies in Canada. CV's lines link to Canadi-
- an National, while B&M's lines link to the Canadian
- Pacific, Ltd., Canadian National's competitor. B&M
- challenged the transaction as simply a device to shift
- ownership among railroads, not to give ownership to
- Amtrak which, B&M argued, was the sole purpose of the
- condemnation provision.
- B&M filed initial objections to the 562(d) proceeding on
- two grounds: that Amtrak had not shown that the parties
- were unable to agree on reasonable terms of sale, and that
- 562(d) did not authorize condemnation of railroad lines.
- The ICC rejected B&M's arguments and in a condemnation
- proceeding held that Amtrak had shown the inability of the
- parties to agree to terms. It ruled that 562(d) covers
- railroad tracks because tracks are ``rail property `required
- for intercity rail passenger service.''' App. to Pet. for Cert.
- in No. 90-1419, pp. 130a-133a. B&M next sought to
- convert the proceeding into a trackage rights proceeding
- under 562(a), but the ICC again rejected B&M's position,
- holding that Amtrak had an ``election of remedies'' under
- 562 and so had no obligation to seek trackage rights under
- subsection (a) before invoking subsection (d). Id., at
- 115a-116a. Meanwhile, CV and the States of Vermont and
- Massachusetts, as well as numerous other parties, inter-
- vened in the ICC proceeding. (CV appears as a petitioner
- before this Court, and Vermont and Massachusetts support
- petitioners.)
- This was the first decided case involving Amtrak's
- condemnation powers under 562(d). Id., at 39a. The ICC
- issued its final decision in 1988 and ordered conveyance of
- the segment with just compensation of $2,373,286. It
- reaffirmed earlier rulings and found that Amtrak ``ha[d]
- met the statutory criteria for the institution of a proceed-
- ing'' under 562(d). Id., at 40a-42a, 81a.
- The ICC concluded that the presumption of Amtrak's
- need for the track contained in 562(d)(1) was applicable.
- In its view both statutory criteria must be met to rebut the
- presumption, and B&M had established neither. As to
- alternative property (subsection (B)), the ICC found that no
- reasonable alternative route existed for the Montrealer
- service. And as to significant impairment of B&M's ability
- to carry out its common carrier obligations (subsection (A)),
- the ICC found that because B&M had been awarded just
- compensation and could continue to serve its customers
- under the trackage rights agreement which was part of the
- transaction, its ability had not been impaired. Id., at
- 45a-46a. The bulk of the ICC's final decision deals with
- the question of just compensation, which is not before this
- Court. See infra.
- On petition for review, a divided panel of the Court of
- Appeals for the District of Columbia Circuit granted the
- petition and remanded the matter to the ICC for further
- proceedings. 286 U. S. App. D.C. 1, 911 F.2d 743 (1990).
- The majority held that 562(d) does not permit Amtrak to
- condemn railroad property which it intends to reconvey to
- another railroad. It acknowledged that the ICC had
- interpreted 562 in a different way, and that in the usual
- course judicial deference would be given to its interpreta-
- tion under the principles enunciated in Chevron U.S.A. Inc.
- v. Natural Resources Defense Council, Inc., 467 U. S. 837
- (1984); but the court concluded 562(d) is unambiguous in
- light of its language and history, and so no deference was
- due. The panel majority reasoned that because Amtrak did
- not intend to retain the track to be condemned, it needed
- only its use, not its ownership. As Amtrak could obtain use
- of the property by obtaining either a trackage rights agree-
- ment under 562(a), or by condemning an easement under
- 562(d), the entire fee interest was not ```required for
- intercity rail passenger service.''' 286 U. S. App. D.C., at 8,
- 911 F.2d, at 750. The majority stated that its holding was
- confirmed by other considerations, including: (1) the
- potential constitutional problems, under the Takings
- Clause, raised by the ICC's interpretation of 562(d); (2)
- the structure of 562, which indicated an intent on the part
- of Congress to relegate Amtrak to trackage rights under
- 562(a) when seeking only the use of track; and (3) Con-
- gress' policy against cross-subsidization between sectors of
- the railroad industry, which the majority concluded would
- have been violated by this transaction. Judge Ruth B.
- Ginsburg concurred separately, rejecting the majority's
- interpretation of the statute, but concluding that a remand
- to the ICC was necessary because the ICC had not made
- adequate findings to determine whether Amtrak in fact
- needed to shift ownership of the segment from B&M to CV
- to protect its interests. Id., at 11-13, 911 F.2d, at 753-755.
- This factual question, whether Amtrak's portrayal of a
- recalcitrant B&M is accurate, remains in dispute. Under
- our resolution of the case, however, the issue need not be
- reached.
- Amtrak and the ICC filed petitions for rehearing, and
- while the petitions were pending Congress amended
- 562(d). The amendment, adopted in specific response to
- the Court of Appeals' decision in this case, added the
- following sentence to 562(d)(1): ``The Corporation may
- subsequently convey title or other interest in such property
- to a third party, if such reconveyance is found by the
- Commission to further the purposes of this Act.'' Indepen-
- dent Safety Board Act Amendments of 1990 9(a), Pub. L.
- 101-641, 104 Stat. 4658. The amendment was made
- applicable to all pending cases, 9(b), and B&M does not
- dispute that it applied in this case even while it was before
- the Court of Appeals on rehearing. Brief for Respondent
- B&M 33-35. The Court of Appeals considered the 1990
- amendment, but denied rehearing nonetheless. 288 U. S.
- App. D.C. 196, 925 F.2d 427 (1991). The panel majority
- held that while 9 made it clear Amtrak was authorized to
- reconvey condemned property ``subsequent to a condemna-
- tion that is otherwise valid under [562(d)],'' it did not
- change the statutory limitation that the property be
- ```required for intercity rail passenger service''' in the first
- place. Id., at 197, 925 F. 2d, at 428 (emphasis in original).
- The majority reasoned that since its original decision was
- based on Amtrak's failure to satisfy that requirement, the
- amendment did not affect its holding. The majority also
- distinguished a case from the Second Circuit, National R.R.
- Passenger Corp. v. Two Parcels of Land, 822 F.2d 1261
- (1987), cert. denied 484 U. S. 954, which had interpreted
- 545(d)(1) (the provision authorizing Amtrak to condemn
- nonrail property) to permit reconveyance following condem-
- nation. 288 U. S. App. D.C., at 196-197, 425 F. 2d, at
- 427-428. In a separate opinion, Judge Ginsburg wrote that
- the amendment confirmed her view that the ICC had not
- misinterpreted the statute, but that a remand remained
- necessary for further factual determinations.
- Amtrak and CV, in No. 90-1419, and the ICC, in No.
- 90-1769, filed separate petitions seeking review of the
- Court of Appeals' decision. We granted certiorari and
- consolidated the cases. 502 U. S. --- (1991). We now
- reverse.
- II
- The primary question raised by the case is a straightfor-
- ward matter of statutory interpretation: whether 562(d),
- as amended, authorizes the condemnation and transaction
- approved by the ICC but set aside by the Court of Appeals.
- The Court of Appeals disallowed the transaction based on
- its own interpretation of the language ``required for inter-
- city rail passenger service'' in 562(d)(1). In so holding it
- limited Amtrak's condemnation authority to property which
- was necessary, in the sense of indispensable, to Amtrak's
- operations. The ICC interpreted the relevant statutory
- language to give Amtrak more latitude, and it is our task
- to determine whether the agency had authority for its
- statutory interpretation.
- Judicial deference to reasonable interpretations by an
- agency of a statute that it administers is a dominant, well
- settled principle of federal law. We relied upon it in
- Chevron U.S.A., supra, and have reaffirmed it often. See,
- e.g., K Mart Corp. v. Cartier, Inc., 486 U. S. 281, 292-293
- (1988); Pauley v. Bethenergy Mines, Inc., 501 U. S. ---, ---
- (1991). These decisions mandate that when a court is
- reviewing an agency decision based on a statutory interpre-
- tation, ``if the statute is silent or ambiguous with respect to
- the specific issue, the question for the court is whether the
- agency's answer is based on a permissible construction of
- the statute.'' Chevron U.S.A., 467 U. S., at 843. If the
- agency interpretation is not in conflict with the plain
- language of the statute, deference is due. K Mart Corp.,
- 486 U. S., at 292. In ascertaining whether the agency's
- interpretation is a permissible construction of the language,
- a court must look to the structure and language of the
- statute as a whole. Id., at 291; Sullivan v. Everhart, 494
- U. S. 83, --- (1990). If the text is ambiguous and so open
- to interpretation in some respects, a degree of deference is
- granted to the agency, though a reviewing court need not
- accept an interpretation which is unreasonable.
- Under these principles the ICC's interpretation of 562(d)
- was permissible, and the Court of Appeals' decision was in
- error to disregard it. While the ICC's opinion is not explicit
- in all of its details, the agency's decision is based on a
- reading of the statute quite different from the Court of
- Appeals'. The ICC agreed that property Amtrak seeks to
- condemn under 562(d) must be ``required for intercity rail
- passenger service.'' It determined however that the word
- ``required'' need not mean, as the Court of Appeals' opinion
- suggests, indispensable or necessary. Instead, the ICC gave
- effect to the statutory presumption of Amtrak's need for the
- track, and in so doing implemented and interpreted the
- statute in a manner that comports with its words and
- structure. The analysis of the Court of Appeals is inconsis-
- tent with the agency's interpretation of the statutory
- presumption of need. The ICC's position before the Court
- is that ``required'' can also mean ``useful or appropriate,''
- Brief for Petitioners in No. 90-1769, p. 17, and that the
- order under review adopted that meaning. We agree that
- the manner in which the ICC's applied the statute in this
- case has that interpretation as its basic premise. App. to
- Pet. for Cert. in No. 90-1419, pp. 42a-46a.
- In its brief the ICC cites a dictionary definition in support
- of its view. Brief for Petitioners in No. 90-1769, p. 17,
- citing Webster's Third New International Dictionary 1929
- (1986). The existence of alternative dictionary definitions
- of the word ``required,'' each making some sense under the
- statute, itself indicates that the statute is open to interpre-
- tation. See Sullivan v. Everhart, supra. Few phrases in a
- complex scheme of regulation are so clear as to be beyond
- the need for interpretation when applied in a real context.
- Further, the structure of the provision reinforces our
- conclusion that statutory interpretation is appropriate and
- that the Court of Appeals' interpretation is itself open to
- serious question. The court defined the word ``required,'' to
- establish a separate condition that the property sought to
- be condemned be necessary (indispensable) for Amtrak's
- operations, a view which is not without support. See e.g.,
- American Heritage Dictionary of the English Language
- 1105 (1981). This interpretation, though, leaves little
- substance to the statutory presumption in favor of Amtrak's
- need, and so is in clear tension with that part of the
- statute.
- We decide that 562(d) is ambiguous in some respects
- and conclude that the ICC's interpretation of the word
- ``required'' is a reasonable one. We defer to its interpreta-
- tion. This is not to say that the issue is beyond dispute, but
- these alternative interpretations are as old as the jurispru-
- dence of this Court. In McCulloch v. Maryland, 4 Wheat.
- 316, 413 (1819), Chief Justice Marshall, in a choice of
- interpretations with some parallels to this one, read the
- word ``necessary'' to mean ``convenient, or useful,'' rejecting
- a stricter reading of the term which would have limited
- congressional power under the Constitution to the ``most
- direct and simple'' means available. We think that as a
- matter of definition and interpretation in the context of this
- statute it is plausible, if not preferable, to say that Amtrak
- can find that an acquisition is required when it is a useful
- and appropriate way to accomplish its goals.
- The agency's interpretation is consistent also with the
- 1990 statutory addition enacted by the Congress. While
- the amendment does not modify the specific language of
- 562(d) at issue here, it confirms the ICC's view. The
- interpretation given to 562(d) by the Court of Appeals and
- B&M, on the other hand, would make the amendment
- superfluous, because if the word ``required'' has the strict
- meaning they seek to attribute to it, condemnations by
- Amtrak would seem to be barred whenever Amtrak's
- purpose is to reconvey the property.
- Contrary to the position of the dissent, we are not
- ``deferring to what we imagine an agency had in mind.''
- Post, at 4. Rather, we defer to an interpretation which was
- a necessary presupposition of the ICC's decision. We
- recognize the well-established rule that an agency's action
- may not be upheld on grounds other than those relied on by
- the agency. SEC v. Chenery Corp., 318 U. S. 80, 88 (1943).
- But the fact that the ICC did not in so many words articu-
- late its interpretation of the word ``required'' does not mean
- that we may not defer to that interpretation, since the only
- reasonable reading of the agency's opinion, and the only
- plausible explanation of the issues that the agency ad-
- dressed after considering the factual submissions by all of
- the parties, is that the ICC's decision was based on the
- proffered interpretation. Chenery does not require a
- remand under those circumstances. It is noteworthy in this
- regard that neither party contends the ICC's decision was
- not informed and governed by this statutory interpretation.
- B&M's primary argument to the Court is that the word
- required must mean necessary. Brief for Respondent B&M
- 16, 22, 44. But this, as we have said, is quite inconsistent
- with the statutory presumption of need to which the ICC
- gave effect.
- There is no dispute on this record that Amtrak intends to
- use the condemned track for its Montrealer service. Under
- the ICC's view that use is sufficient to satisfy the statutory
- command that the rail property be ``required for intercity
- rail passenger service.'' This is a reasonable interpretation
- and application of the RPSA. And it ends the judicial
- inquiry on this point.
- What we have said also answers Judge Ginsburg's
- concern that the ICC must make specific findings regarding
- Amtrak's actual need for the condemnation. The contention
- that such a finding was necessary, to implement the
- statutory criterion that the property be ``required for
- intercity rail passenger service,'' was the basis for Judge
- Ginsburg's concurrence in the Court of Appeals. 286 U. S.
- App. D.C., at 12, 911 F.2d, at 754. That position, however,
- appears to be based on the same interpretation of the word
- ``required'' as adopted by the Court of Appeals' majority,
- and so is inconsistent with the ICC's interpretation. The
- ICC contends that the factual finding is not mandated. It
- argues that the structure of the statute, combined with the
- presumption created by the statute of Amtrak's need for the
- property sought, creates a strong inference that the statute
- authorizes Amtrak to make a reasonable business judgment
- that condemnation of the property is advisable. We agree.
- The ICC's oversight responsibility, exercised by enforcing
- the ``required for intercity rail passenger service'' language
- as interpreted by the agency, is limited to ensuring that the
- condemned property will be used in Amtrak's rail opera-
- tions. The further determination of need is delegated to
- Amtrak, unless the statutory presumption is rebutted; and
- it is not rebutted here. Indeed, as our discussion above
- indicates, supra, at __, it seems to us that any other
- interpretation may be inconsistent with the statutory
- presumption of need. In all events, the ICC's interpretation
- is a reasonable one and we may not substitute a different
- view.
- Arguing against the ICC's interpretation, B&M cites to us
- cases such as United States v. Carmack, 329 U. S. 230, 243,
- n. 13 (1946), which suggest that delegations of eminent
- domain power to private entities are of a limited nature.
- We do not believe that argument has any relevance here
- because Amtrak does not exercise eminent domain power
- under 562(d). Rather, the statute gives that power to the
- ICC, a Government agency. To be sure, the statute creates
- a presumption in favor of conveyance to Amtrak. But the
- ICC must assess the impact of any condemnation and make
- a determination as to just compensation. Since 562(d) is
- a proper exercise of regulatory authority, and the ICC's
- oversight of Amtrak is intended to ensure compliance with
- the statute, the eminent domain power here is not private.
- Furthermore, this case turns on the need for deference to
- the ICC, not Amtrak. There is nothing in the cases B&M
- cites contradicting the rule of judicial deference to an
- agency's statutory interpretation, even when the statute is
- one authorizing condemnation of private property. In short,
- the principle advanced by B&M does not prevail over
- Chevron's rule of deference.
- We also reject B&M's constitutional objections. B&M
- claims that 562(d) as interpreted by the agency violates
- the ``public use'' requirement of the Fifth Amendment's
- Takings Clause, because the transaction leaves unchanged
- the use made by Amtrak of the condemned track. B&M's
- position cannot be reconciled with our precedents. We have
- held that the public use requirement of the Takings Clause
- is coterminous with the regulatory power, and that the
- Court will not strike down a condemnation on the basis
- that it lacks a public use so long as the taking ``is rationally
- related to a conceivable public purpose.'' Hawaii Housing
- Authority v. Midkiff, 467 U. S. 229, 240-241 (1984); see also
- Berman v. Parker, 348 U. S. 26, 32-34 (1954). In Midkiff
- we upheld land reform legislation which authorized
- condemnations for the specific purpose of transferring
- ownership to another private party, in order to eliminate a
- land oligopoly. In Berman we permitted land condemna-
- tions which contemplated reselling the land to redevelopers,
- as part of a plan to restore dilapidated sections of the
- District of Columbia. In both Midkiff and Berman, as in
- the present case, condemnation resulted in the transfer of
- ownership from one private party to another, with the basic
- use of the property by the government remaining un-
- changed. The Court held these exercises of the condemna-
- tion power to be constitutional, as long as the condemning
- authorities were rational in their positions that some public
- purpose was served. Those holdings control here, for there
- can be no serious argument that the ICC was irrational in
- determining that the condemnation will serve a public
- purpose, by facilitating Amtrak's rail service. That suffices
- to satisfy the Constitution, and we need not make a specific
- factual determination as to whether the condemnation will
- accomplish its objectives. Midkiff, supra, at 242-243.
- As a last effort, B&M argues that this matter must be
- remanded to the ICC because the agency did not make
- adequate and accurate findings regarding several different
- matters. B&M claims that Amtrak failed to prove the
- parties were ```unable' to agree'' on terms of sale. In B&M's
- view 562(d) demands that Amtrak engage in ``good faith
- . . . negotiations'' before it may invoke its condemnation
- powers. Brief for Respondent B&M 42. The ICC construed
- the language of 562(d) in a more narrow fashion, to
- mandate nothing more than a factual determination that
- the parties will not be able to reach agreement through
- further negotiations. App. to Pet. for Cert. in No. 90-1419,
- pp. 130a-131a (``Nothing in this record provides any
- indication that Amtrak and B&M will ever reach agreement
- on terms of sale''). This is a reasonable interpretation of
- the phrase ``unable to agree upon terms for the sale,'' and
- we do not substitute a different view. Thus the agency did
- not err in concluding that this statutory prerequisite was
- satisfied.
- B&M argues further that the ICC made inadequate
- factual findings in concluding: (1) that this conveyance will
- not significantly impair B&M's ability to carry out its
- obligations as a common carrier, 562(d)(1)(A), and (2) that
- Amtrak's obligations cannot be met by the acquisition of
- alternative property, 562(d)(1)(B). As to significant
- impairment, B&M's argument, like the decision of the Court
- of Appeals on this point, 286 U. S. App. D.C., at 8-9, 911
- F.2d, at 750-751, relies on the notion that in assessing
- impairment the ICC may consider only the conveyance
- itself, not any mitigating measures adopted in response to
- the conveyance such as the grant of trackage rights to
- B&M. We find no basis in the text or structure of 562(d)
- for this position, and cannot say that the statute must be
- interpreted to mandate such a restrictive inquiry. The ICC
- was not unreasonable in considering the effect of the
- trackage rights agreements and the just compensation
- award in assessing significant impairment; and the ICC's
- conclusion, that B&M's ability to carry out its common
- carrier obligations will not be impaired by the transaction
- in any significant way, is supported by substantial evidence.
- As to the availability of alternative property, the ICC
- interpreted that provision as referring only to whether
- Amtrak could provide service using an alternative route,
- not whether a lesser interest in property would suffice to
- meet Amtrak's needs. Again, this was a reasonable reading
- to which we defer. Since B&M would have to prevail on
- both the significant impairment and alternative property
- issues to rebut Amtrak's presumption of need, there can be
- no doubt that the ICC's finding that Amtrak established its
- need for the property must be affirmed.
- III
- For the reasons we have stated, we hold that the ICC did
- not exceed its authority in ordering conveyance of the 48.8
- mile segment of the Conn River Line from B&M to Amtrak.
- Because of its contrary holding on this point, the Court of
- Appeals did not address the parties' challenges to the ICC's
- just compensation finding as well as certain other issues.
- 286 U. S. App. D.C., at 11, 911 F. 2d, at 753. These
- questions should be resolved on remand. The judgment of
- the Court of Appeals is reversed, and the case is remanded
- for further proceedings consistent with this opinion.
- It is so ordered.
-