Opinion for the court filed by Circuit Judge GINSBURG.
Opinion concurring in part and dissenting in part filed by Circuit Judge MacKINNON.
GINSBURG, Circuit Judge:
This is a petition to review a rulemaking decision of the Interstate Commerce Commission, Ex Parte No. 361, Exemption of Certain Designated Operators from Section 11343, 361 I.C.C. 379 (1979). The Commission’s decision exempts companies operating exclusively as “designated operators” from the requirements of 49 U.S.C. §§ 11343 and 11347 (Supp. Ill 1979) (formerly section 5(2) of the Interstate Commerce Act) and 49 U.S.C. § 11322(a) (Supp. Ill 1979) (formerly section 20a(12) of the Act). Authority to issue the exemption rests on section 207 of the Railroad Revitalization and Regulatory Reform Act of 1976 (the “4-R Act”), 49 U.S.C. § 10505 (Supp. Ill 1979) (amended 1980). As originally enacted,1 the exemption authorization read:
Whenever the Commission determines, upon petition by the Secretary or an interested party or upon its own initiative, in matters relating to a common carrier by railroad subject to this part, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part (i) to any person or class of persons, or (ii) to any services or transactions by reason of the limited scope of such services or transactions, is not necessary to effectuate the national transportation policy declared in this Act, would be an undue burden on such person or class of persons or on interstate and foreign commerce, and would serve little or no useful public purpose, it shall, by order, exempt such persons, class of persons, services, or transactions from such provisions to the extent and for such period of time as may be specified in such order. The Commission may, by order, revoke any such exemption whenever it finds, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part to the exempted person, class of persons, services, or transactions, to the extent specified in such order, is necessary to effectuate the national transportation policy declared in this Act and to achieve effective regulation by the Commission, and would serve a useful public purpose.
“Designated operators” are rail carriers conducting operations pursuant to section 304(d) of the Regional Rail Reorganization Act of 1973 (the “3-R Act”), 45 U.S.C. § 744(d) (1976); 2 they provide service over minor segments of track. The ICC’s decision exempts these operators from provi[299]*299sions that (1) require Commission approval for mergers and similar transactions, 49 U.S.C. § 11343,3 (2) require carriers to protect the interests of their employees when they enter into mergers and similar transactions, 49 U.S.C. § 11347, and (3) prohibit interlocking directorates among carriers without prior Commission approval, 49 U.S.C. § 11322(a).
John W. McGinness, acting on behalf of the Illinois Legislative Board of the United Transportation Union, submitted comments to the Commission in opposition to the proposed exemption. When the ICC published its decision, McGinness, the Railway Labor Executives’ Association, and the Brotherhood of Locomotive Engineers unsuccessfully petitioned for reconsideration; thereafter, they petitioned this court for review.
Petitioners raise two issues. First, they contend that the 4-R Act authority to grant exemptions is confined to certain statutory sections governing rates and does not extend to any of the sections addressed in the ICC’s designated operators exemption decision. Second, they urge that even if the 4-R Act’s exemption authority encompasses the merger (49 U.S.C. § 11343) and interlocking directorate (49 U.S.C. § 11322(a)) provisions, the ICC may not exempt any carrier, including designated operators, from the statutory labor protection requirement (49 U.S.C. § 11347). While we find petitioner’s first contention insubstantial, we hold that the Commission lacks authority to relieve any carrier, even a designated operator, of the obligations imposed by 49 U.S.C. § 11347 to protect the interests of employees. Accordingly, we remand this case to the Commission for modification of its exemption decision, so that designated operators will not be released from the labor protection requirement.
I.
Petitioners, in support of their contention that the 4-R Act’s exemption authority applies only to certain railroad rate adjustments,4 point out that the exemption provision, when enacted in 1976, appeared in a title captioned “Railroad Rates.” This argument is unpersuasive. Rather than creating an entirely new statutory scheme, the 4-R Act worked within the framework of the existing Interstate Commerce Act. The intended placement of the exemption provision in the Interstate Commerce Act, therefore, is a more reliable indication of the congressional design than the location of the provision in the amending public law. The exemption provision was an amendment to section 12 of the Interstate Commerce Act, a section ¡headlined “Authority and duties of Commission.” Nothing in section 12’s caption ¡suggests, confinement of the ICC’s exemption authority to rate
Moreover, in plain language, the exemption provision empowers the Commission to grant exemptions from “the application of this part.” (Emphasis added.) The word “part” evidently refers to part I of the Interstate Commerce Act, the part of that Act in which the exemption provision was to be inserted. (The 4-R Act was organized by sections and titles, not by parts.) The second conference report on the 4-R Act confirms this view. It states that the House version of the provision — the version the conferees adopted — permits the ICC “to grant exemptions from Part I of the Interstate Commerce Act.” H.R.Rep.No.781, 94th Cong., 2d Sess. 152-53 (1976). Part I of the Interstate Commerce Act was not confined to rates; it contained most of the provisions relating to railroad regulation, including the provisions at issue in this case. See 49 U.S.C. §§ 1-27 (1976).
[300]*300Furthermore, the 4-R Act legislative history is consistent with a straightforward reading of the language of the exemption provision.
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Opinion for the court filed by Circuit Judge GINSBURG.
Opinion concurring in part and dissenting in part filed by Circuit Judge MacKINNON.
GINSBURG, Circuit Judge:
This is a petition to review a rulemaking decision of the Interstate Commerce Commission, Ex Parte No. 361, Exemption of Certain Designated Operators from Section 11343, 361 I.C.C. 379 (1979). The Commission’s decision exempts companies operating exclusively as “designated operators” from the requirements of 49 U.S.C. §§ 11343 and 11347 (Supp. Ill 1979) (formerly section 5(2) of the Interstate Commerce Act) and 49 U.S.C. § 11322(a) (Supp. Ill 1979) (formerly section 20a(12) of the Act). Authority to issue the exemption rests on section 207 of the Railroad Revitalization and Regulatory Reform Act of 1976 (the “4-R Act”), 49 U.S.C. § 10505 (Supp. Ill 1979) (amended 1980). As originally enacted,1 the exemption authorization read:
Whenever the Commission determines, upon petition by the Secretary or an interested party or upon its own initiative, in matters relating to a common carrier by railroad subject to this part, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part (i) to any person or class of persons, or (ii) to any services or transactions by reason of the limited scope of such services or transactions, is not necessary to effectuate the national transportation policy declared in this Act, would be an undue burden on such person or class of persons or on interstate and foreign commerce, and would serve little or no useful public purpose, it shall, by order, exempt such persons, class of persons, services, or transactions from such provisions to the extent and for such period of time as may be specified in such order. The Commission may, by order, revoke any such exemption whenever it finds, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part to the exempted person, class of persons, services, or transactions, to the extent specified in such order, is necessary to effectuate the national transportation policy declared in this Act and to achieve effective regulation by the Commission, and would serve a useful public purpose.
“Designated operators” are rail carriers conducting operations pursuant to section 304(d) of the Regional Rail Reorganization Act of 1973 (the “3-R Act”), 45 U.S.C. § 744(d) (1976); 2 they provide service over minor segments of track. The ICC’s decision exempts these operators from provi[299]*299sions that (1) require Commission approval for mergers and similar transactions, 49 U.S.C. § 11343,3 (2) require carriers to protect the interests of their employees when they enter into mergers and similar transactions, 49 U.S.C. § 11347, and (3) prohibit interlocking directorates among carriers without prior Commission approval, 49 U.S.C. § 11322(a).
John W. McGinness, acting on behalf of the Illinois Legislative Board of the United Transportation Union, submitted comments to the Commission in opposition to the proposed exemption. When the ICC published its decision, McGinness, the Railway Labor Executives’ Association, and the Brotherhood of Locomotive Engineers unsuccessfully petitioned for reconsideration; thereafter, they petitioned this court for review.
Petitioners raise two issues. First, they contend that the 4-R Act authority to grant exemptions is confined to certain statutory sections governing rates and does not extend to any of the sections addressed in the ICC’s designated operators exemption decision. Second, they urge that even if the 4-R Act’s exemption authority encompasses the merger (49 U.S.C. § 11343) and interlocking directorate (49 U.S.C. § 11322(a)) provisions, the ICC may not exempt any carrier, including designated operators, from the statutory labor protection requirement (49 U.S.C. § 11347). While we find petitioner’s first contention insubstantial, we hold that the Commission lacks authority to relieve any carrier, even a designated operator, of the obligations imposed by 49 U.S.C. § 11347 to protect the interests of employees. Accordingly, we remand this case to the Commission for modification of its exemption decision, so that designated operators will not be released from the labor protection requirement.
I.
Petitioners, in support of their contention that the 4-R Act’s exemption authority applies only to certain railroad rate adjustments,4 point out that the exemption provision, when enacted in 1976, appeared in a title captioned “Railroad Rates.” This argument is unpersuasive. Rather than creating an entirely new statutory scheme, the 4-R Act worked within the framework of the existing Interstate Commerce Act. The intended placement of the exemption provision in the Interstate Commerce Act, therefore, is a more reliable indication of the congressional design than the location of the provision in the amending public law. The exemption provision was an amendment to section 12 of the Interstate Commerce Act, a section ¡headlined “Authority and duties of Commission.” Nothing in section 12’s caption ¡suggests, confinement of the ICC’s exemption authority to rate
Moreover, in plain language, the exemption provision empowers the Commission to grant exemptions from “the application of this part.” (Emphasis added.) The word “part” evidently refers to part I of the Interstate Commerce Act, the part of that Act in which the exemption provision was to be inserted. (The 4-R Act was organized by sections and titles, not by parts.) The second conference report on the 4-R Act confirms this view. It states that the House version of the provision — the version the conferees adopted — permits the ICC “to grant exemptions from Part I of the Interstate Commerce Act.” H.R.Rep.No.781, 94th Cong., 2d Sess. 152-53 (1976). Part I of the Interstate Commerce Act was not confined to rates; it contained most of the provisions relating to railroad regulation, including the provisions at issue in this case. See 49 U.S.C. §§ 1-27 (1976).
[300]*300Furthermore, the 4-R Act legislative history is consistent with a straightforward reading of the language of the exemption provision. The House Report, for example, states that “[t]he Committee has given the Commission [the exemption] power to study and review those areas of its regulation so as to eliminate from regulation those areas where regulation is not required.” H.R. Rep.No.725, 94th Cong., 1st Sess. 75 (1975) (emphasis added). Similarly, the Senate Report declared that the exemption provision “would grant the Commission authority ... to exempt regulated carrier services from all or part of the regulations provided under the Act.” S.Rep.No.499, 94th Cong., 1st Sess. 53 (1975) (emphasis added). Use of the general terms “regulation” and “areas” is hardly indicative of an intent to limit exemption authority to railroad rate deregulation.
Petitioners urge that the Secretary of Transportation sought an exemption provision so that the Commission could try out deregulation for railroads of “certain commodities not regulated for trucks and barges.” Railroad Revitalization: Hearings on H.R.6351 & H.R.7681 before the Sub-comm. on Transportation and Commerce of the House Comm, on Interstate and Foreign Commence, 94th Cong., 1st Sess. 153, 191 (1975). The House Report cites the Secretary’s rate-related concern as one, but not the exclusive, reason for the exemption provision: “The provision is also addressed to the present inequity of the Interstate Commerce Act which regulates certain commodities for the railroad, but exempts them from other modes.” H.R.Rep.No.94-725, at 75 (emphasis added).5
Finally, we note that when Congress reorganized the Interstate Commerce Act in 1978, it placed the exemption provision in a chapter titled “Jurisdiction.” While petitioners correctly point out that the reorganizing statute specifically provided both that the reorganization effected no substantive change in the law and that inferences of legislative intent should not be drawn from the new location or caption of a provision,6 Congress’ treatment of the exemption provision in 1978 fully accords with the original language and legislative history of the provision. Furthermore, in 1980 Congress considerably revised the exemption provision. Staggers Rail Act of 1980, Pub.L.No.96-448, § 213, 94 Stat. 1895, 1912-13.7 Despite several ICC proceedings such as this one applying the exemption provision to non-rate matters,8 Congress did not include in [301]*301the revision any stipulation indicating that it intended to restrict the Commission’s exemption authority to railroad rates. In light of all these considerations, we conclude that the Commission’s reading of the exemption to extend beyond rail rate matters is reasonable and in accordance with law.
Two further challenges to the legality and reasonableness of the Commission’s designated operators exemption decision may be quickly dispatched. First, petitioners complain that the ICC should have included a termination date in its exemption order. While the statute provides that the Commission may set an expiration date in an exemption order, it does not mandate such a stipulation.9 Second, petitioners argue that under the 4-R Act exemption provision,10 the ICC may exempt only “services or transactions” because of their “limited scope” but, in this case, the Commission issued the exemption because it found the class of carriers (designated operators), not the services or transactions, limited in scope. As the Commission notes, the “limited scope” language in the 4-R Act exemption provision is directed to Commission proposals to exempt a “service or transaction,” not to Commission exemptions of a “person or class of persons” from regulation. At any rate, transactions among designated operators are necessarily “limited in scope,” for those operators comprise a slender part of the national rail system. At the time of the Commission’s exemption decision, there were 26 designated operators, providing service over only 1,341.2 miles of track in 11 states (J.A. 28, 37-50).11
II.
Petitioners maintain that the ICC unlawfully exempted designated operators from the section 11347 labor protection requirement applicable when a rail carrier merges or otherwise coordinates or consolidates its activities in a manner identified in 49 U.S.C. § 11343. Section 11347 requires rail carriers involved in a section 11343 transaction to provide a fair arrangement protective of the interests of employees.12 The [302]*302ICC counters that Congress intended, when it passed the 3-R Act in 1973,13 “to encourage continued rail service over lines which would otherwise be discontinued or abandoned.” 14 Imposition of labor protection obligations in section 11343 transactions among designated operators, the ICC argues, would conflict with this broad legislative objective; it would render more costly, and therefore deter, efforts by designated operators to improve their efficiency through coordination and consolidation.
After the ICC’s decision, and the initial briefing in this court, Congress enacted the Staggers Rail Act of 1980.15 That Act, we conclude, is dispositive of the labor protection controversy. The Staggers Act revised 49 U.S.C. § 10505, the provision authorizing the ICC to grant exemptions from regulation. Section 10505(g), a subsection added by the 1980 Act, states explicitly that “[t]he Commission may not exercise its authority [to grant exemptions] . . . to relieve a carrier of its obligation to protect the interests of employees as required by this subtitle.” The Conference Report on the Staggers Act states a general expectation that exemption orders issued prior to the effective date of the Act (October 1, 1980) would remain in full force and effect, unless revoked by the Commission. However, the conferees excepted, inter alia, the section 10505(g) prohibition against relieving a carrier of its obligation to protect the interests of employees. The Report indicates that existing as well as future exemptions would be subject to the section 10505(g) prohibition. Specifically, the conferees stated:
[W]e also expect that except to the extent necessary to comply with subsections (e) and (g) of section 10505 [(g) bars exemption from the labor protection requirement] . . ., an exemption order issued by the Commission prior to the effective date of the Staggers Rail Act of 1980 shall remain in full force and effect unless revoked pursuant to subsection (d) of section 10505 of title 49 U.S.C. as amended.
H.R.Rep.No.1430, 96th Cong., 2d Sess. 105 (1980) (emphasis added).
We need not dwell on the ICC’s argument that, despite the Conference Report, no provision newly introduced in the Staggers Act is retroactive. Nor need we address petitioners’ argument that the Report confirms a constant congressional intent that labor protection must attend all section 11343 transactions. The ICC concedes that its rulemaking decision has future effect;16 it is designed for application to post-October I, 1980, merger transactions between designated operators. Thus there is plainly no warrant in this case for departing from the well-established principle that “courts are obligated to apply law (otherwise valid) as they find it at the time of final judgment, including, when a case is on review, the time of the appellate judgment.” P. Bator, P. Mishkin, D. Shapiro & H. Wechsler, Hart & Wechsler’s The Federal Courts and The Federal System 316 n.4 (2d ed. 1973); see Bradley v. School Board, 416 U.S. 696, 711, 94 S.Ct. 2006, 2016, 40 L.Ed.2d 476 (1974) (“[A] court is to apply the law in effect at the time it renders its decision, unless doing so would result in manifest injustice or there is a statutory direction or legislative [303]*303history to the contrary.”); Thorpe v. Housing Authority, 393 U.S. 268, 281-82, 89 S.Ct. 518, 525-26, 21 L.Ed.2d 474 (1969); Eikenberry v. Callahan, 653 F.2d 632 (D.C.Cir.1981); Coca-Cola Co. v. FTC, 642 F.2d 1387, 1389-90 (D.C.Cir.1981) (court set aside an FTC order that was inconsistent with a federal statute enacted during pendency of the appeal).
Although the ICC acknowledges that the decision under review has prospective thrust, it asks us not to apply the Staggers Act at this time because petitioners, in a new petition, can invite the Commission to reconsider the matter in light of that Act and can return to this court after Commission reconsideration. We do not agree with the ICC that the proposed course would serve the interests of “judicial economy and the sound administration of justice.” 17 We see only delay, unnecessary expense, and inefficiency in the suggestion that we remit petitioners to the Commission to start over with a fresh petition. The ICC’s position in this regard is all the more puzzling because it has presented to this court a decided view: the Commission asserts that the Staggers Act effects no relevant change in the law. Now, as before, the ICC maintains, it has authority to exempt designated operators from the labor protection obligation.18
On that dispositive question, whether the Staggers Act affords the Commission discretion to allow designated operators to merge free from section 11347 labor protection strictures, the ICC refers to “the unique characteristics of [such] operators.” They “are not the functional equivalent of rail common carriers,” the Commission underscores.19 But in the very decision on review, the ICC quoted from its 1976 notice, in implementation of the 3-R Act: 20
Although the Designated Operator will not be required to seek and obtain authority from the Commission pursuant to section la and 1(18) of the [Interstate Commerce Act] for either commencement or termination of operations, the Designated Operator will be subject to all other provisions of the Act ... as a common carrier by railroad. (Emphasis added.)
In 1976, evidently, the Commission recognized that designated operators were “rail carriers” 21 and, except with respect to commencement and termination, were subject to generally applicable rail carrier regulation. Nor has the Commission retracted that published position. The Commission points to no statutory text that gives it leeway to treat designated operators as anything other than a rail carrier for the purpose at hand.
It is not within the ICC’s province, nor is it within this court’s, to decide whether it is wise policy to saddle designated operators with the section 11347 labor protection requirement. We cannot indulge the Commission’s plea that we read exceptions into unqualified statutory texts and thus presume to decide how Congress would respond if the exceptions were put to a vote. To summarize what Congress did instruct: (1) the Commission “shall require” a rail carrier involved in a section 11343 transaction “to provide a fair arrangement” to protect the interests of rail employees who may be affected, 49 U.S.C. § 11347; (2) the Commission may not relieve a carrier of the section 11347 labor protection requirement, 49 U.S.C. § 10505(g).22 Since section 11347, [304]*304as Congress wrote it, does not afford the Commission discretion to narrow the term “rail carrier” by nonstatutory definition,23 and section 10505(g), as Congress wrote it, affords the Commission no leeway to create exceptions,24 we must reject the ICC’s endeavor to release designated operators from the employee protection burden.25
For the reasons stated above we remand the order under review for modification to assure that, in accordance with 49 U.S.C. § 10505(g), designated operators are not relieved of the obligation imposed by 49 U.S.C. § 11347 to protect the interest of employees. In all other respects, the Commission’s order is affirmed.
Affirmed in part and remanded for modification consistent with this opinion.