Authority To Acquire Trackage Rights and Equipment in Order To Provide Essential Transportation Services

An opinion was requested regarding the extent to which the Secretary of Transportation was authorized under the Emergency Rail Service Act to acquire trackage rights and equipment in order to provide essential transportation services. The law provided that the Secretary must obtain an option to procure or lease trackage rights and equipment necessary to provide essential transportation services in return for guarantees of the issuance of trustee's certificates, but there is no authority for the Secretary to exercise these options in the absence of further action by the Congress. Spending under this section of the act appears to be limited to $125 million for loan guarantees.