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Analysis and Modeling 45 The RSIA requires PTC installation by 2015 on most freight main lines used for passenger service and/or for conveying certain hazardous materials. The same legislation required the rail- road industry, in consultation with the FRA, to develop PTC interoperability standards. Since then, both the railroad industry and the FRA have been actively making plans to implement the legislation, but many of the details are still to be determined. Further discussion of the issues relating to PTC implementation since the October 2008 legislation and FRA safety regulations are provided in Appendices B and C. Even though the details of PTC as applied to the U.S. rail system are still to be worked out, passenger rail operators outside the NEC area will clearly be affected: With few exceptions, locomotives and multiple-unit driving cabs will have to be equipped with PTC equipment that conforms to national interoperability standards. Each passenger service operator will be responsible for the costs of equipping its own rolling stock. Passenger rail agencies may have to bear all or part of the costs of wayside PTC apparatus on routes used by their trains. The actual shares will depend on whether the PTC is needed any- way because of corridor use for specified hazardous materials, corridor ownership, and whether the passenger service is Amtrak intercity or commuter. Cost-sharing arrangements will have to be negotiated among users, and it is possible that the STB will become involved in resolv- ing disputes in this area and establishing cost-sharing principles. It is not clear at this point whether a "basic" PTC system installed in response to RSIA require- ments for a hazardous materials corridor will also allow passenger trains to operate at speeds exceeding 79 mph, or whether additional requirements will be imposed above 79 mph or at higher speed thresholds. Passenger rail interests need to be engaged with the FRA as require- ments for higher-speed operations are developed. The uncertainties include what additional requirements, if any, may be imposed on freight operations sharing track with passenger oper- ations exceeding 79 mph. 3.4 Operations and Maintenance Costs and Cost Sharing 3.4.1 Overview This section discusses the technical issues associated with estimating how O&M costs should be distributed among each railroad corridor user in a corridor shared by multiple users, includ- ing the differences between avoidable and fully allocated costs. The different cost categories are identified, together with the operating parameters that drive costs. This is followed by a discus- sion of methods used to estimate costs as a function of usage by freight and passenger trains. The discussion is primarily concerned with the costs of operating a privately owned freight railroad that hosts a passenger rail service. Costing principles are the same where the host railroad is owned by a public agency, but the public agency normally does not expect to make a profit on invested capital and may treat expenses like depreciation differently. The resulting cost estimates may be used to support contractual agreements between host and tenant as described in Chapter 4 and the process for amending and updating contracts as described in Chapter 5. Much of the material in this section is taken from a predecessor study, "Cost Allocation Methods for Commuter, Intercity and Freight Rail Operations on Shared-Use Rail Systems and Corridors" (AECOM 2006). Allocating railroad infrastructure and overhead costs fairly among different types of rail traf- fic is technically difficult, and in many situations there is really no single "right" answer. Once a rail line is put in place, a significant fraction of infrastructure O&M costs are fixed and can only be changed by either changing track quality or adding or removing features of the route, such as