Justia Government & Administrative Law Opinion Summaries
Articles Posted in Transportation Law
Sierra Club v. DOT
The case involves a challenge to a rule promulgated by the Pipeline and Hazardous Materials Safety Administration (PHMSA) in 2020, which authorized the transportation of liquefied natural gas (LNG) by rail in newly designed tank cars without requiring a permit. LNG is a hazardous material that poses significant risks if released, including explosions, fires, and the formation of ultra-cold gas clouds. The rule did not limit the number of LNG tank cars per train or set a mandatory speed limit, raising safety concerns among various stakeholders.The rule was challenged by a coalition of environmental nonprofits, several states, and the Puyallup Tribe of Indians. They argued that PHMSA did not adequately consider the safety risks and that the National Environmental Policy Act (NEPA) required the preparation of an Environmental Impact Statement (EIS). The petitioners contended that the decision not to prepare an EIS was arbitrary and capricious.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court found that PHMSA's decision not to prepare an EIS was indeed arbitrary and capricious. The court noted that transporting LNG by rail poses a low-probability but high-consequence risk of derailment, which could result in catastrophic environmental impacts. The court emphasized that PHMSA failed to adequately consider the probability and potential consequences of such accidents and did not impose sufficient safety measures, such as a mandatory speed limit or a cap on the number of LNG tank cars per train.The court held that PHMSA's failure to prepare an EIS violated NEPA and vacated the LNG Rule, remanding the case to PHMSA for further proceedings. The court's decision underscores the importance of thoroughly assessing environmental risks and adhering to NEPA's requirements in rulemaking processes. View "Sierra Club v. DOT" on Justia Law
City and County of San Francisco v. Public Utilities Commission
The City and County of San Francisco and the San Francisco County Transportation Authority challenged a decision by the Public Utilities Commission (PUC) to issue a phase I driverless autonomous vehicle (AV) deployment permit to Waymo, LLC for fared passenger service in San Francisco and parts of San Mateo County. The petitioners argued that the PUC failed to follow the law and disregarded significant public safety issues. However, the record showed that the PUC considered and responded to the safety concerns raised by the petitioners, noting that few incidents involved Waymo driverless AVs, each was minor, and none involved injuries.The PUC had previously issued a decision establishing a pilot program for the regulation of AV passenger carriers, which included both drivered and driverless AVs. The petitioners participated in these proceedings but did not challenge the decision at that time. Waymo submitted an advice letter in December 2022 seeking a phase I driverless AV deployment permit, which was protested by the San Francisco entities. The PUC's Consumer Protection and Enforcement Division circulated a draft resolution authorizing Waymo's permit, and after considering comments and holding meetings, the PUC issued a final resolution in August 2023, authorizing Waymo to provide fared driverless AV service.The California Court of Appeal reviewed the case and found that the PUC acted within its authority and did not abuse its discretion. The court noted that the PUC's decision was supported by substantial evidence, including data showing that Waymo driverless AVs had not been involved in any collisions resulting in injuries. The court also upheld the PUC's use of the advice letter process, as it was authorized by the PUC's prior decision. The court denied the relief requested by the petitioners, affirming the PUC's decision to issue the phase I driverless AV deployment permit to Waymo. View "City and County of San Francisco v. Public Utilities Commission" on Justia Law
Blazer v. Department of Public Safety
Donald Blazer was involved in a vehicle accident and voluntarily submitted to a preliminary breath test (PBT), which showed a blood alcohol content of .102 percent. However, he refused to submit to a blood draw. The South Dakota Department of Public Safety (Department) notified Blazer of its intent to disqualify his commercial driver’s license (CDL) for life, citing this refusal as a second violation of SDCL 32-12A-36, with the first being a 2014 DUI conviction. Blazer requested an administrative hearing, and the Department affirmed the disqualification of his CDL for life.Blazer appealed to the circuit court, which reversed the Department’s decision. The circuit court concluded that Blazer’s voluntary submission to the breath test constituted a submission to a chemical analysis, meaning his refusal to submit to the blood draw could not result in the disqualification of his CDL. The Department then appealed to the South Dakota Supreme Court.The South Dakota Supreme Court reviewed the case and reversed the circuit court’s decision. The Court held that under SDCL 32-23-1.2, a preliminary breath test (PBT) is permitted and may be required in addition to a chemical test. The Court determined that Blazer’s refusal to submit to the blood draw constituted a refusal to submit to a chemical analysis as required by SDCL 32-12A-46. This refusal was a second violation under SDCL 32-12A-36, justifying the disqualification of Blazer’s CDL for life under SDCL 32-12A-37. The Court emphasized that a PBT is a preliminary test and does not fulfill the requirement for a chemical analysis under the implied consent laws. View "Blazer v. Department of Public Safety" on Justia Law
Wisconsin Central Ltd. v. Surface Transportation Board
Wisconsin Central Ltd. and Soo Line Railroad Company are in dispute over the location for exchanging rail traffic in the Chicago area. Wisconsin Central prefers the Belt Railway yard near Chicago, while Soo Line prefers the Spaulding yard near Bartlett, 35 miles away. The Surface Transportation Board initially ruled against Wisconsin Central, stating that it could not use Belt Railway's yard because it did not own it outright, despite having a contractual right to use it. The Seventh Circuit Court of Appeals remanded the case, clarifying that a railroad could have the power to designate facilities by contract as well as by ownership.Upon remand, the Surface Transportation Board held that the Belt Railway yard was not a reasonable location for the exchange. The Board found that both locations could cause congestion but concluded that it was unreasonable for Wisconsin Central to insist that Soo Line bear the costs of moving cars to Chicago and the fees charged by Belt Railway. Additionally, the Board emphasized the importance of negotiation and agreement in selecting exchange locations, rather than allowing one party to unilaterally change the location.The United States Court of Appeals for the Seventh Circuit reviewed the Board's decision. The court held that the Board's interpretation of "reasonable" was within its discretion and that considering costs as part of reasonableness was appropriate. The court also noted that Wisconsin Central did not preserve its argument regarding substantial evidence for review. Consequently, the court found that the Board's decision was neither arbitrary nor capricious and did not embody a legal error. The petition for review was denied. View "Wisconsin Central Ltd. v. Surface Transportation Board" on Justia Law
Bonnet v. Whitaker
Two pilots, Luis F. Bonnet and Carlos R. Benítez Maldonado, were employed by Benítez Aviation, Inc. (BAI), which managed a Cessna aircraft. In April and May 2019, Bonnet and Benítez piloted several flights without the required certificates for commercial operations. The FAA suspended their Airline Transport Pilot (ATP) certificates for 270 days, alleging they operated the flights as air carriers or commercial operators without proper certification. The pilots received their regular salaries but no additional compensation for these flights.The FAA issued a Notice of Proposed Certificate Action, which the pilots appealed to the National Transportation Safety Board (NTSB). An administrative law judge (ALJ) upheld the FAA's suspension order, finding that the flights were conducted for compensation and hire, thus requiring compliance with Part 135 regulations. The NTSB affirmed the ALJ's decision, concluding that the flights were subject to air carrier or commercial operator requirements and that the pilots violated multiple FAA regulations. The NTSB also found that the ALJ did not exhibit bias and that the 270-day suspension was appropriate.The United States Court of Appeals for the First Circuit reviewed the case. The court held that substantial evidence supported the NTSB's findings that the flights were operated as common carriers for compensation, thus requiring Part 135 certification. The court also found that the pilots were responsible for ensuring compliance with FAA regulations, regardless of BAI's role in booking the flights. The court upheld the NTSB's decision, including the 270-day suspension of the pilots' certificates, finding it justified based on the pilots' regulatory violations and the potential risk to passenger safety. The petition for review was denied. View "Bonnet v. Whitaker" on Justia Law
MENDOCINO RAILWAY V. AINSWORTH
Mendocino Railway, a California corporation, owns and operates a railroad line known as the "Skunk Train" between Fort Bragg and Willits, California. The City of Fort Bragg and the California Coastal Commission sought to regulate the use and maintenance of the Railway's properties within the City, which the Railway resisted, claiming federal preemption under the Interstate Commerce Commission Termination Act (ICCTA). The City filed a state court action seeking declaratory and injunctive relief to compel the Railway to comply with local regulations. The Railway argued that federal law preempted these local regulations. Subsequently, the Railway filed a federal lawsuit seeking a declaration that the City's and Commission's regulatory actions were preempted by federal law and an injunction to prevent interference with its operations.The Mendocino County Superior Court overruled the Railway's demurrer, which argued that federal law preempted all local regulations. The Railway's subsequent petitions to the California Court of Appeal and the California Supreme Court were unsuccessful. The Railway then filed an answer in the state court, asserting federal preemption as an affirmative defense. Meanwhile, the Commission intervened in the state court action, seeking a declaration that the Coastal Act and local coastal program applied to the Railway's activities and were not preempted by federal law. The Railway also attempted to remove the state action to federal court, but the district court remanded it back to state court.The United States Court of Appeals for the Ninth Circuit reviewed the district court's dismissal of the Railway's federal lawsuit under the Colorado River doctrine, which allows federal courts to abstain from exercising jurisdiction in favor of parallel state court proceedings. The Ninth Circuit affirmed the district court's dismissal, finding that the state court proceedings were sufficiently parallel to the federal action and that considerations of avoiding piecemeal litigation, forum shopping, and the order in which the forums obtained jurisdiction supported the dismissal. The court held that the state court could adequately protect the Railway's rights and that the federal preemption issue could be resolved in the state court proceedings. View "MENDOCINO RAILWAY V. AINSWORTH" on Justia Law
Union Pacific Railroad Co. v. STB
Union Pacific Railroad Company and the Association of American Railroads challenged the Surface Transportation Board's (Board) adoption of the Final Offer Rate Review (FORR) procedure for determining the reasonableness of rail carrier rates in smaller cases. Under FORR, the Board selects either the shipper’s or the rail carrier’s final offer without modification. The petitioners argued that the Board lacked statutory authority to implement FORR, that FORR was unconstitutionally vague, and that it was arbitrary and capricious.The Board is tasked with resolving rate disputes between rail carriers and shippers when rates are not set by private contract. The Board must hold a "full hearing" and give due consideration to specific statutory factors before determining the reasonableness of a rate. The Board adopted FORR to streamline the process for smaller disputes, allowing it to choose between the final offers submitted by the parties.The United States Court of Appeals for the Eighth Circuit reviewed whether the Board had statutory authority to implement FORR. The court concluded that FORR conflicted with the Board’s statutory duties. The court held that the Board must hold a "full hearing" and that the shipper must bear the burden of proof on the final offer, which FORR did not require. Additionally, the court found that FORR improperly limited the Board’s ability to prescribe the maximum rate, as required by statute, by forcing the Board to choose between the parties' final offers without modification.The Eighth Circuit granted the petitions for review and vacated the final rule, holding that the Board lacked statutory authority to implement FORR. View "Union Pacific Railroad Co. v. STB" on Justia Law
Airlines for America v. Department of Transportation
The Department of Transportation (DOT) issued a Rule on April 30, 2024, requiring airlines to disclose ancillary service fees, such as baggage and change fees, during the booking process. The Rule aims to protect consumers from surprise charges and is expected to provide significant societal and consumer benefits. The Rule took effect on July 1, 2024, with compliance deadlines for airlines and third-party ticket agents set for later dates. Various airlines and airline associations challenged the Rule, arguing it exceeds DOT’s authority, is arbitrary and capricious, and bypassed the required notice and comment process.The airlines and associations first sought a stay from the DOT, which was denied. They then petitioned the United States Court of Appeals for the Fifth Circuit for a stay pending review. The petitioners argued that the Rule exceeds DOT’s statutory authority under 49 U.S.C. § 41712(a), which allows the DOT Secretary to investigate and adjudicate unfair or deceptive practices but does not authorize the creation of detailed legislative rules. The petitioners also claimed that the Rule imposes significant compliance costs that would cause irreparable harm.The United States Court of Appeals for the Fifth Circuit granted the stay, finding that the petitioners made a strong showing that the Rule likely exceeds DOT’s authority. The court noted that the Rule mandates specific disclosure practices without the adjudicatory process required by the statute. The court also found that the petitioners would suffer irreparable harm due to the nonrecoverable compliance costs. The court concluded that there is no public interest in perpetuating unlawful agency action and expedited the petition for review to the next available oral argument panel. View "Airlines for America v. Department of Transportation" on Justia Law
In re: Western Coal Traffic League
The case involves the Western Coal Traffic League (the League), a coalition of coal shippers, petitioning for a writ of mandamus to compel the Surface Transportation Board (the Board) to take action on a proceeding related to the concept of "revenue adequacy" in freight rail shipping rates. The Board had opened an informational docket in April 2014 to gather public comments on how it calculates and applies revenue adequacy in rate cases. Over the next six years, the Board collected information through written comments and public hearings but had not issued a decision since February 2020. The League participated in the hearings and submitted comments advocating for changes to the Board's framework.The League filed a petition for a writ of mandamus in May 2023, arguing that the Board's delay in responding to the comments was unreasonable and requesting the court to compel the Board to publish a notice of proposed rulemaking or issue a final decision within 90 days. The League relied on the Administrative Procedure Act (APA) to argue that the Board's inaction was a clear violation of its duty to act promptly.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court noted that mandamus is an extraordinary remedy reserved for clear violations of a duty to act. The court found that it lacked jurisdiction to issue the writ because the Board's management of the Revenue Adequacy docket did not constitute a "final order" subject to judicial review under the Hobbs Act. The Board had convened the proceeding solely to gather public comments without any statutory duty or plans to undertake a rulemaking or specific regulatory action. Consequently, the court dismissed the League's petition for mandamus for lack of jurisdiction. View "In re: Western Coal Traffic League" on Justia Law
Kovac v. Wray
The plaintiffs, five Muslim U.S. citizens, allege they have been placed on the Terrorist Screening Dataset, commonly known as the "terrorist watchlist." This list includes the No-Fly List, which prevents individuals from boarding flights, and the Selectee List, which subjects individuals to enhanced security screening. Four plaintiffs claim they are on the Selectee List due to repeated enhanced screenings, while one plaintiff, Adis Kovac, claims he is on both the No-Fly List and the Selectee List. Each plaintiff sought redress through the Department of Homeland Security’s Traveler Redress Inquiry Program (TRIP), but only Kovac received confirmation of his No-Fly List status.The plaintiffs filed a lawsuit in the U.S. District Court for the Northern District of Texas against various federal agency heads, alleging violations of their constitutional rights and unlawful agency action under the Administrative Procedure Act (APA). The district court dismissed several claims, including due process and equal protection claims, and later dismissed Kovac’s No-Fly List claims as moot after he was removed from the list. The remaining APA claims were addressed at summary judgment, where the district court ruled that the agencies had statutory authority to maintain the watchlist and that the TRIP procedures were not arbitrary and capricious.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court affirmed the district court’s decision, holding that the relevant federal agencies have clear statutory authority to create, maintain, and use the watchlist for screening airline passengers. The court found that the statutory framework, including the Aviation and Transportation Security Act, the Homeland Security Act, and subsequent legislation, provided unambiguous authority for the watchlist. The court did not address whether the major questions doctrine applied, as the statutory authority was clear. The court also concluded that the plaintiffs lacked standing to challenge the watchlist’s use in contexts unrelated to airport security. View "Kovac v. Wray" on Justia Law