Presenting a live 90-minute webinar with interactive Q&A Local Regulation of Railroads: Guidance for Municipal Attorneys on Navigating the Complexities of Federal Preemption Strategies for Exercising Local Control to Address Nuisance, Liability and Economic Issues TUESDAY, MARCH 8, 2016 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Michael N. Conneran, Partner , Hanson Bridgett , San Francisco Charles Spitulnik, Partner , Kaplan Kirsch Rockwell , Washington, D.C. The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .
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Local Regulation of Railroads: Guidance for Municipal Attorneys on Navigating the Complexities of Federal Preemption Strafford Live Webinar Strafford Live Webinar March 8, 2016 Charles Spitulnik, Partner Michael Conneran, Partner
THE BASICS • Surface Transportation Board • Federal Railroad Administration • Labor Issues • The Courts - FELA 6
Interstate Commerce Act of 1887 Imposed regulation of railroads: • Prohibited discrimination among shippers • Required publication of rates 7
Deregulation – 1976-1995 Combatting “the disappearing railroad blues,” Congress enacted new laws aimed at making railroads solvent: • 4R Act (1976) – Fewer controls on rates • 4R Act (1976) – Fewer controls on rates • Staggers Rail Act of 1980– More deregulation, allows railroads to share tracks • Interstate Commerce Commission Termination Act (ICCTA) of 1995 8
ICCTA of 1995 • Abolished Interstate Commerce Commission (ICC) • Established Surface Transportation Board (STB) under the U.S. Department of Transportation under the U.S. Department of Transportation • Now independent based on recent legislative changes • More limited control of rail operations by federal agency 9
STB 10
The STB • Jurisdiction: Interstate Commerce • Rail (all), Water (some), Motor Carrier (some) • … “exclusive and plenary” • … “exclusive and plenary” • Commerce – rates; sales, leases and use agreements; abandonments 11
Other Agencies • Federal Railroad Administration (FRA) – Safety Agency that regulates tracks, vehicles, speeds, and conducts safety inspections • State Public Utilities Commission (PUC) • State Public Utilities Commission (PUC) 12
Basics for Federal Jurisdiction • Commerce Clause – Art. I, §8, Cl. 3 • Supremacy Clause – Art. VI, Cl. 2 13
• PREEMPTION – 49 U.S.C. 10502 49 U.S.C. 11321 14
Federal Pre-Emption • Remember the key words: “exclusive and plenary” • Chicago and North Western Transportation Company v. Kalo Brick and Tile Co. (1991) 450 U.S. 311: “The ICA is among the most pervasive and comprehensive of federal regulatory schemes . . . . Since the turn of the century, we have frequently invalidated attempts by the States to impose on common carriers obligations that are plainly inconsistent with the plenary authority of the [ICC] . . .” 15
Federal Pre-Emption • Chicago and North Western Transportation Company v. Kalo Brick and Tile Co. (1991) 450 U.S. 311: “[There] can be no divided authority over interstate commerce, and . . . the acts of Congress on that commerce, and . . . the acts of Congress on that subject are supreme and exclusive. [Citation.] Consequently, state efforts to regulate commerce must fall when they conflict with or interfere with federal authority over the same activity.” (Id. at 318-9.) 16
• IT’S ALL ABOUT SAFETY • 49 U.S.C. §20106: National Uniformity of Regulation National Uniformity of Regulation Preemption of State Law 17
• 49 CFR Part 209, Appendix A Joint Use of Rail Lines “Connection” of “electric interurban rail system” to interstate rail system system” to interstate rail system 18
What is an Interstate Carrier? • Active • Discontinued • Abandoned (not the same as easement abandonment) • Rails to Trails (“Railbanking”)– Grantwood • Rails to Trails (“Railbanking”)– Grantwood Village v. Missouri Pacific Railroad Company • Railroads that look wholly Intrastate • Tourist railroads, plant railroads not included (not point-to-point) 19
Railway Labor: Also a World Unto Itself • Railway Labor Act, National Mediation Board • Railroad Retirement/Railroad Unemployment Insurance • LABOR PROTECTION • LABOR PROTECTION • STB • Collective Bargaining • Transit Industry • FELA 20
City of Auburn v Surface Transportation Board, 154 F.3d 1025 (9th Cir. 1998) Auburn: Cities file legal challenges to the re-opening of Stampede Pass line • 229 miles through the Cascades • Auburn at Western terminus – near Seattle N/S line 21
City of Auburn v Surface Transportation Board , 154 F.3d 1025 (9th Cir. 1998) BNSF sought STB approval to reacquire line it had sold to short line operator and segment it used only for local traffic • STB prepared Environmental Assessment (EA) • STB prepared Environmental Assessment (EA) under National Environmental Policy Act (NEPA) under National Environmental Policy Act (NEPA) 22
City of Auburn v Surface Transportation Board , 154 F.3d 1025 (9th Cir. 1998) City challenged STB decision that found that: i. Local environment permitting laws were preempted by ICCTA ii. ii. STB’s use of Environmental Assessment STB’s use of Environmental Assessment (i.e. finding that no Environmental Impact Statement (EIS) needed to be prepared) 23
City of Auburn v Surface Transportation Board , 154 F.3d 1025 (9th Cir. 1998) City of Auburn contentions on appeal to 9 th Circuit: • City claims no express preemption of local regulation: – Says Congress meant to preempt economic – Says Congress meant to preempt economic regulation, not “essential local police power required to protect the health or safety of citizens.” 24
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