Interstate Commerce or Local Control? PHMSA Asked for a Decision

In two actions published in today’s Federal Register, the American Trucking Associations (ATA) has made an application to the Pipeline and Hazardous Materials Safety Administration (PHMSA) for an administrative determination on whether Federal hazardous materials laws would pre-empt requirements put in place by the cities of New York, NY and Pittsburgh, PA.

Both cities apparently require motor carriers to apply for a permit to transport hazardous materials, for which a fee is payable. The ATA contends that the permitting system imposes an unfair burden on motor carriers, as it is not applied to other modes of transport, and that neither city can show that the funds generated from their permitting systems are used for related enforcement or training activities.

One can posit a scenario whereby the parties ruled against in these actions may file suit in Federal Court over it, leading to further precedent in law. To this point in time, federal courts have tended to fall overwhelmingly onto the side of interstate commerce (common carriers) vice local communities in matters of this nature; however, given recent concerns over the transport of hazardous materials through areas of high population and substantial infrastructure (Lac Megantic, yet again), it would be premature to forecast an outcome in this circumstance. Unlike railroads, which mainly operate over their own privately owned rights-of-way, and in many cases enjoy the protections of federal charters granted as far back as the 19th Century, that is not the case with motor carriers. One thing only is relatively certain; whatever decision PHMSA announces is unlikely to be the last word on the matter.

Here are links to the two announcements in the Federal Register:

http://www.gpo.gov/fdsys/pkg/FR-2014-04-17/pdf/2014-08691.pdf

http://www.gpo.gov/fdsys/pkg/FR-2014-04-17/pdf/2014-08690.pdf

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