# Petition for Writ of Certiorari — Public Utilities Commission of Ohio v. CSX Transportation, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1991
- **Citation:** 498 U.S. 1066

## Text

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In The WL 12
Supreme Court of the Unig Stas”

OCTOBER TERM, 1989 —

“Supreme cour US |
> FILED

THE PUBLIC UTILITIES COMMISSION OF OHIO, et al.,

Petitioners,
v.

CSX TRANSPORTATION, INC., et al.,

Respondents.

Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Sixth Circuit
and
Appendix

ANTHONY J. CELEBREZZE, JR.
Attorney General of Ohio

ROBERT S. TONGREN
Assistant Attorney General
Counsel of Record

JAMES B. GAINER
Assistant Attorney General

Office of the Ohio Attorney General
Public Utilities Section

180 East Broad Street

Columbus, OH 43266-0573

(614) 466-4397

Attorneys for Petitioners,
The Public Utilities Commission
of Ohio, et al.

QUESTION PRESENTED

Whether the United States Court of Appeals for the Sixth
Circuit erred in concluding that a provision of the Federal Railroad
Safety Act, 45 U.S.C. § 434, may be construed as the express
intention of Congress to preempt Ohic statutes and administrative
regulations that are expressly preserved by the federal Hazardous
Materials Transportation Act, 49 U.S.C.App. § 1811(a).

LIST OF PARTIES

The Public Utilities Commission of Ohio, and,

Jolynn Barry Butler, Chair

J. Michael Biddison, Commissioner

Ashiey C. Brown, Commissioner

Richard M. Fanelly, Commissioner

Lenworth Smith, Commissioner,

in their respective capacities as Chair and Commissioners of the
Public Utilities Commission of Ohio

CSX Transportation, Inc.

Consolidated Rail Corporation

Norfolk and Western Railway Company
Grand Trunk Western Railroad Company

AMICUS CURIAE

The State of Washington
The State of Tennessee
The State of Texas

The State of Oregon
The State of Nevada
The State of Missouri
The State of California

TABLE OF CONTENTS

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acct lis gtsschbndnsaeasaneaseubiasineraniebens 2
STATUTORY PROVISIONS AT ISSUE...............::ccccsssssssseseseseseees 2
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REASONS FOR GRANTING THE WRIT..............:.::::eseeee0 eee 7

I. The decision of the lower court conflicts with applicable
cal nae eeednnbananannananenbennennens 7

A. Inenacting the HMTA, Congress established a dual
system of federal and consistent state regulation....... 7

B. This Court has consistently held that preemption is
precluded where a state acts within its sphere of
authority under a dual system of federal and state
regulation established by Congress ...............s0e00e 8

C. The decision of the lower court conflicts with the
decisions of this Court in Louisiana and Pacific Gas ... 10

Il. The decision of the lower court raises an important

question of federal law that should be settled by this
NAb attendant naciectninponininnscuinasnansnieannwiserannesen 14

iii

TABLE OF CONTENTS

A. _Inenacting the HMTA, Congress expressly
required that the transportation of hazardous
materials be regulated only on an intermodal
RES aceeeccvecevwsncecnsssvecesnsravarcovanerencsoncsnnscanenecncssenenensecencecenes 15

B. Congress has specifically defined the scope of
preemption under the FRSA to exclude state
laws expressly preserved by the HMTA ............-.-..--- 18

C. The decision of the lower court created a
statutory conflict between the HMTA and
the FRSA, and resolved that conflict by

nullifying the requirements of the HMTA.............----. 27
CONCLUSION ........cccscscsssssssessssesscssnensnsnenenenesesenensnsnenenenentsnsnnenennsenes 30
APPENDIX

iv

TABLE OF AUTHORITIES

Page(s)
Cases:
CSX Transp., Inc. v. Public Utilities Comm'n of Ohio,
701 F. Supp. 608 (S.D. Ohi0 1988) ..........0.ceseseseeseeeesneeeseeneenees 2, 4,5
CSX Transp., Inc. v. Public Utilities Comm'n of Ohio,
Se a re et, SD perentieiccieivintnsininrsernenennnsisieneiansneniiinn 2, 5,
11, 14, 17, 19, 20, 28
Jones v. Rath Packing Co., 430 U.S. 519 (1977) .......ccccecececeeseeeeesees 11
Louisiana Public Service Comm'n v. FCC, 476 U.S. 355 (1986) ..... 8, 9,
10, 11, 12, 13, 27
Merrill Lynch v. Ware, 414 U.S. 117 (1973) ........cccccceseseeeeseneeeseenees 27

Pacific Gas and Elec. Co. v. State Energy Resources
Conservation & Development Comm'n, 461 U.S. 190 (1983)...10, 13

Rice v. Santa Fe Elevator Corp., 331 U.S. 218 (1947) .......ccccceeee 11

Silver v. New York Stock Exchange, 373 U.S. 341 (1963) ...........0+ 27
Statutes:

Federal Railroad Safety Authorization Act of 1980,
Pub. L. No. 96-423, 94 Stat. 1811 (1980), (amending
eID easecncieesicainttnsstsanetnitneeptanatiennincanannemnneses 20

Federal Railroad Safety Authorization Act of 1980,
Pub. L. No. 96-423, 94 Stat. 1811 (1980)
I siietctensinnepereneensntanennnencnerrnancanes 20

Federal Railroad Safety Authorization Act of 1980, § 10(e),
Pub. L. No. 96-423, 94 Stat. 1811 (1980)
ge Oe a an Op CI rnrniicanecesecnenenencesinnsintanborlinncnie 25

TABLE OF AUTHORITIES

Page(s)
"ENTRAR, TEE, aia Meme ere 2
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nL TNR 26
SALE AERA Ue reeae ca ether 25
EE ES NMR. 25, 26
a li a ae 22, 26
a 26
SRR LU a Oe A ~~ &
45 U.S.C. § 439(a) .cccossssersonee siuidenieleniasl hidden ane 26
EE AIEEE OIE TINE 6, 12,

18
49 U.S.C. § 103(c)(1) (1982 & Supp. V 1987) .cccccocssseeeseeeeeereeen 26
PIII ipa soncnssniciigoaisiaetenabensiumaibabtbsoeionas 6

vi

TABLE OF AUTHORITIES

Page(s)
49 U.S.C.App. § 1655(e) (repealed in part 1983) .............0.008 23
49 U.S.C.App. § 1655 (e)(1), (e)(2), (@MG)A) .....ecccecenecreeneennenns 22, 24,
25, 26
49 U.S.C.App. § 1055(e)(4) (repealed 1983) ...........eeeeeneeens 24
49 U.S.C. § 1655(F(3)(A) (repealed 1983)... 19, -
Oe ie eireenicrtensnenvesennesevamncncenteresnmersensencsestincessiiiinh 2,3,
12, 14,15
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29
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9, 12, 14
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SP re Ge CA, re reneivrrrnerinnenen 4

vii

TABLE OF AUTHORITIES

Page(s)

Administrative Regulations:

DCRR, BB eI FB nnernnnmnnnnnnnnernnnnnennnn 6
DCRR. BABII vere nwnnnwnrennnnnnnnnnenmnnmnnen 24
DCRR. 8B WO BGB wore wnnnnnnnnnnnmnnn 6
Ohio Admin. Code §§ 4901:2-7-01 through 4901:2-7-22 «0.0.0... 5
Ohio Admin. Code § 4901:3-1-10 ......ccccceccecseneeneenennnnaneens 5
Other Authorities:

H. R. Rep. No. 1025, 96th Cong., 2d Sess., reprinted in 1980 ee

US. Code Cong. & Admin. News 3830 ............cccccecennneens

viii

No.

In The
Supreme Court of the Anited States

OCTOBER TERM, 1989

THE PUBLIC UTILITIES COMMISSION OF OHIO, et al.,

Petitioners,
v.

CSX TRANSPORTATION, INC, et al.,
Respondents.

Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Sixth Circuit

Petitioners respectfully pray that a writ of certiorari issue to
review the judgment and opinion of the United States Court of
Appeals for the Sixth Circuit issued on April 13, 1990.

OPINIONS BELOW

The judgment and opinion of the United States Court of
Appeals for the Sixth Circuit, issued on April 13, 1990, is reported at
901 F 2d 497 (6th Cir. 1990). The judgment and opinion in the
original action giving rise to this Petition was issued by the United
States District Court for the Southern District of Ohio, Eastern
Division, on December 12, 1988, and is reported at 701 F. Supp. 608
(S.D. Ohio 1988).

JURISDICTION

The jurisdiction of this Court is invoked under 28 U.S.C. §
1254(1). The judgment of the United States Court of Appeals for
the Sixth Circuit was issued on April 13, 1990.

STATUTORY PROVISIONS AT ISSUE

The relevant portions of the Hazardous Materials
Transportation Act (HMTA), 49 U.S.C.App. §§ 1801 et seq., and the
Federal Railroad Safety Act (FRSA), 45 U.S.C. §§ 421 et seq., are
reproduced in full in the proceeding Statement and Reasons For
Granting the Writ.

STATEMENT

Thousands of tons of highly toxic or explosive "hazardous
materials" are transported through the communities of this Nation
on a daily basis. Accidents do happen. One recent railroad disaster
near Miamisburg, Ohio ignited a rail car of phosphorous, spreading
a cloud of toxic gas throughout the area and causing the evacuation
of 40,000 state citizens. See CSX Transp., Inc. v. Public Utilities
Comm'n of Ohio, 701 F. Supp. 608, 610 (S.D. Ohio 1988).

In 1974, Congress recognized the inherent problems of
regulating these dangerous substances that are moved by several
different modes of transportation, and called upon the states for
help in enforcing the federal standards. The federal Hazardous

Materials Transportation Act (HMTA) requires that the transport of
hazardous materials, by any mode of transportation, be regulated
on an "intermodal" basis:

It is declared to be the policy of Congress in this
chapter to improve the regulatory and enforcement
authority of the Secretary of Transportation to
protect the Nation adequately against the risks to life
and property which are inherent in the
transportation of hazardous materials in commerce.

49 U.S.C.App. § 1801.

‘hazardous material’ means a substance or material
in a quantity and form which may pose an
unreasonable risk to health and safety or property
when transported in commerce;

‘transports’ or ‘transportation’ means any movement
of property by any mode, and any loading,
unloading, or storage incidental thereto.

49 US.C.§ 1802(2), (6).

Further, the HMTA establishes a dual system of federal and
state regulation, specifically preserving state laws that are
consistent with the HMTA, and requiring that federal preemption
questions be determined under the HMTA:

(a) Except as provided in subsection (b) of this
section, any requirement, of a State or political
subdivision thereof, which is inconsistent with any
requirement set forth in this chapter, or in a
regulation issued under this chapter, is preempted.

(b) Any requirement, of a State or political
subdivision thereof, which is not consistent with any
requirement set forth in this chapter, or in a
regulation issued under this chapter, is not
preempted if, upon the application of an appropriate
State agency, the Secretary determines, in accordance
with procedures to be prescribed by regulation, that
such requirement (1) affords an equal or greater
level of protection to the public than is afforded by
the requirements of this chapter or of regulations
issued under this chapter and (2) does not
unreasonably burden commerce. Such requirement

shall not be preempted to the extent specified in such
determination by the Secretary for so long as such
State or political subdivision thereof continues to
administer and enforce effectively such requirement.

49 U.S.C.App. § 1811(a), (b).

Following the Miamisburg disaster, the State of Ohio
undertook a detailed study of federal enforcement of the
intermodal hazardous materials regulations under the HMTA and
found federal enforcement to be inadequate. CSX, 701 F Supp. at
610. Pursuant to the express requirements of the¢ederal HMTA, on
September 26, 1988, the Ohio General Assembly enacted the Ohio
Hazardous Materials Transportation Act, providing that:

The public utilities commission may adopt safety
rules governing the transportation and offering for
transportation of hazardous materials by railroad.
The rules adopted under this section shall be consistent
with, and equivalent in scope, coverage, and content to,
the provisions of the ‘Hazardous Materials
Transportation Act,’ 88 Stat. 2156 (1975), 49 U.S.C.A.
1801, as amended, and regulations adopted under it.
No person shall violate a rule adopted under this
section or any order of the commission issued to
secure conipliance with any such rule.

Ohio Rev. Code Ann. § 4907.64 (emphasis added).

On December 10, 1988, the Public Utilities Commission of
Ohio adopted the federal hazardous materials administrative
regulations, promulgated under the federal HMTA, in order to
provide for state enforcement of the intermodal federal rules:

For the purpose of enforcing federal rules for
railroads and shippers by railroad, the commission
hereby adopts those portions of the hazardous
materials transportation regulations contained in
Title 49, Parts 171 through 179, CFR, as are
applicable to transportation or offering for
transportation by railroad including future
modifications or additions. These federal rules shall
be applicable to all railroads operating within or
through this state, their agents and employees, as
well as to any person offering hazardous materials
for transportation within or through this state by

4

railroad. These federal rules shall be enforced so as to
impose no operating requirements upon railroads or
shippers by railroad to which these person have not been
made subject under federal rules. Enforcement of these
federal rules shall be subject to any exemptions
granted by the U.S. department of transportation
pursuant to Title 49, Part 107, CFR, and shall be
consistent with interpretations issued by the research
and special programs administration, U.S.
department of transportation.

Ohio Admin. Code § 4901:3-1-10 (emphasis added).

On December 12, 1988, the United States District Court for the
Southern District of Ohio, Eastern Division, granted summary
judgment to the plaintiff railroads, finding the Ohio statutes and
regulations to be preempted by the Federal Railroad Safety Act
(FRSA), 45 U.S.C. § 434. Specifically, the District Court held that
the FRSA preempted Sections 4905.83 and 4907.64 of the Ohio
Revised Code, and Sections 4901:2-7-01 through 4901:2-7-22 and
4901:3-1-10 of the Ohio Administrative Code, and permanently
enjoined the Public Utilities Commission of Ohio from enforcing
the state laws. CSX, 701 F. Supp. at 617. The State of Ohio
appealed.

On April 13, 1990, the United States Court of Appeals for the
Sixth Circuit affirmed the decision of the District Court, finding that
the foregoing state administrative regulations and statutes were
preempted by the general railroad safety requirements of the
Federal Railroad Safety Act, and that preemption under such modal
safety requirements did not frustrate the mandate of the federal
HMITA requiring that the transportation of hazardous materials be
regulated only on an intermodal basis. CSX Transp., Inc. v. Public
Utilities Comm'n of Ohio, 901 F. 2d 497 (6th Cir. 1990). The
preemption provision of the FRSA provides that:

The Congress declares that laws, rules,
regulations, orders, and standards relating to
railroad safety shall be nationally uniform to the
extent practicable. A State may adopt or continue in
force any law, rule, regulation, order, or standard
relating to railroad safety until such time as the
Secretary has adopted a rule, regulation, order, or
standard covering the subject matter of such State

requirement. A State may adopt or continue in force
an additional or more stringent law, rule, regulation,
order, or standard relating to railroad safety when
necessary to eliminate or reduce an essentially local
safety hazard, and when not incompatible with any
Federal law, rule, regulation, order, or standard, and
when not creating an undue burden on interstate
commerce.

45 US.C.§ 434.

Under the federal statutory scheme, the United States
Secretary of Transportation (Secretary) is required to regulate the
transportation of hazardous materials on an intermodal basis. 49
U.S.C.App. § 1804(a). Pursuant to this grant of authority, the
Secretary has promulgated administrative rules applicable to all
modes of transportation. See 49 C.F.R. §§ 171-79. The Secretary
may delegate authority to enforce the intermodal regulations to the
separate modal administrations comprising the Department of
Transportation, such as the Federal Railroad Administration (FRA).
49 U.S.C.App. § 1808(c).

The modal administrations, including the FRA, are limited by
statute to administering the statutory authority of the Secretary
related to the general safety of the respective modes, and such
enforcement authority as is delegated by the Secretary. See, e.g., 49
U.S.C. § 103(c) (1982 & Supp. V 1987). For example, the FRA is
limited to administering the "duties and powers related to railroad
safety vested in the Secretary . . . and additional duties and powers
prescribed by the Secretary." 49 U.S.C. §103(c) (1982 & Supp.
V 1987). Thus, the FRA is responsible for exercising the Secretary's
statutory regulatory authority related to railroad safety under the
FRSA, and has promulgated general rail safety regulations
applying only to railroad safety (49 C.ER. §§ 200-268). Under the
HMTA, the FRA is limited to enforcement of the intermodal
regulations pertaining to rail transportation (49 C.ER. §§ 171-179).
Neither the Secretary, nor the FRA, has statutory authority to
promulgate intermodal hazardous materials regulations under the
FRSA. 45 U.S.C. § 431; 49 U.S.C. § 103(c) (1982 & Supp. V 1987).
The Secretary is expressly forbidden from varying this statutory
scheme of intermodal regulation and delegated modal enforcement
authority. 49 U.S.C. § 103(d).

REASONS FOR GRANTING THE WRIT

I. The decision of the lower court conflicts with
applicable decisions of this Court.

In order to find preemption in the case below, the lower court
overruled the express requirements of a federal statute. The state
statutes and regulations found to be preempted are identical to the
federal HMTA and implementing federal regulations, providing
only for state enforcement of the federal requirements.

Unlike the lower court, in enacting the HMTA, Congress
recognized the impossibility of effective federal enforcement, given
the incredible volume of hazardous materials transported in this
country on a daily basis. Congress invited and encouraged state
enforcement of consistent hazardous materials requirements. The
HMTA preempts inconsistent state requirements, expressly
preserves consistent state requirements, and provides a statutory
means to resolve jurisdictional conflicts in the dual system of
federal and state enforcement of intermodal hazardous materials
requirements. The decision of the lower court has precluded any
state enforcement, ieaving to state citizens across the nation only
the meager protection offered by an overburdened federal
bureaucracy. See CSX Transp., Inc. v. Public Utilities Comm'n of Ohio,
701 F. Supp. 608, 610 (S.D. Ohio 1988).

The purpose of federal preemption, as consistently held by
this Court, is to avoid frustrating the purpose of Congress with a
multiplicity of inconsistent state regulations. Louisiana Public
Service Comm'n v. FCC, 476 U.S. 355, 368-69 (1986). In the case at
bar, the federal and state regulations are identical, and the Ohio
regulations expressly require consistent enforcement. Thus, the
purpose served by the lower court's decision is not that of
Congress; rather, it is the economic interest of the nation's railroads,
hoping to avoid effective enforcement of the existing federal
regulations.

A. In enacting the HMTA, Congress established a dual
system of federal and consistent state regulation.

The HMTA expressly limits federal preemption of state
hazardous materials laws to state requirements that are inconsistent

with the HMTA, or a regulation issued under the HMTA. 49
US.C.App. § 1811(a). Accordingly, the police power of the states to
protect citizens through consistent regulation, or as in this case,
enforcement of the federal regulations, is expressly preserved. 49
US.C.App. § 1811(a).

Congress confirmed this reservation of police power authority
to the states by providing a statutory means within the HMTA to
resolve jurisdictional tensions between the federal and state
governments. In this regard, Congress authorized the Secretary,
upon application of a state, to determine that even "inconsistent"
state requirements might survive preemption, so long as such state
requirements provide an equal or greater level of protection to the
public and avoid placing an unreasonable burden on interstate
commerce. 49 U.S.C.App. § 1811(b).

Thus, the manifest intent of Congress is clear on the face of the
HMTA: avoid inconsistent state regulation, but foster the help of
the states to consistently enforce the federal requirements in order
to better protect the public. The decision of the lower court has
frustrated this congressional purpose, and has violated the
precedential decisions of this Court.

B. This Court has consistently held that preemption is
precluded where a state acts within its sphere of
authority under a dual system of federal and state
regulation established by Congress.

As noted by this Court, the "critical question in any pre-
emption analysis is always whether Congress intended that federal
regulation supersede state law." Louisiana Public Service Comm'n v.
FCC, 476 U.S. 355, 369 (1986). The lower court avoided answering
this question by ignoring the intention of Congress expressed in the
HMITA, and by attempting to distinguish the applicable decisions of
this Court. The precedents established by this Court dictate a
different result.

In Louisiana Public Service Comm'n v. FCC, 476 U.S. 355 (1986),
this Court addressed the issue of federal preemption in the
telecommunications industry. In order to determine the issue, the
Court compared the general authority vested in the federal
government to regulate interstate telecommunications, with a
specific reservation of state intrastate regulatory authority. Id. at

8

369-70.!_ The Court held that the broad authority over interstate
telecommunications conveyed to the federal government in the
“declaration of purpose” provision of the Communications Act
could not be construed to supersede an express reservation of state
authority. Id. at 370. Further, the Court found in Louisiana that
jurisdictional tensions arising under the dual system of federal and
state regulation should be resolved by reference to the statute itself,
which both established the dual system of regulation, and provided
a statutory process to resolve areas of conflicting regulatory
jurisdiction. Id. at 375.

Despite the protestations of the telephone companies, hoping
to avoid state regulation by asserting that the "federal purpose" of
the statute to ensure national uniformity was frustrated by state
regulation, the Court refused in Louisiana to impose federal
preemption over the clear intent of Congress to preserve a measure
of state regulatory authority. Id. at 370. The Court noted that a
tangential relationship between federal and state regulation did not
amount to an express intent to preempt. Id. at 375-76. With regard
to the protestants, the Court had a short answer: "As we so often
admonish, only Congress can rewrite this statute." id. at 376.

In the case at bar, as in Louisiana, Congress has clearly
expressed an intention to preserve the authority of the states to
regulate. The only stricture placed by Congress upon the states’
authority is that such regulation must be consistent with federal
regulation. 49 U.S.C.App. § 1811(a). As was the case in Louisiana,
in enacting the HMTA, Congress tempered its preemption by
preserving a measure of state authority, and by including a
statutory means to resolve jurisdictional tensions that might arise.
49 U.S.C.App. § 1811(a), (b).

The Court noted the relevant statutory provisions of the Communications
Act of 1934:

The Act establishes, among other things, a system of dual state
and federal regulation over telephone service, and it is the
nature of that division of authority that these cases are about. In
broad terms, the Act grants to the FCC the authority to regulate
"interstate and foreign commerce in wire and radio
communication,” 47 USC § 151 [47 USCS § 151], while expressly
denying that agency “jurisdiction with respect to . . . intrastate
communication service ...." 47 USC § 152(b) [47 USCS §
152(b)].

Louisiana, 476 U:S. at 360.

Similarly, in Pacific Gas and Elec. Co. v. State Energy Resources
Conservation & Development Comm'n, 461 U.S. 190 (1983), this Court
found that the federal government had completely occupied the
field of general safety regulation covering every aspect of nuclear
energy generation. Id. at 212-13. Against the backdrop of complete
federal preemption over “all matters nuclear," the Court examined
the language and history of the controlling federal statute, and
found an explicit congressional purpose to preserve traditional
state authority to regulate the economics of energy production,
including the production of nuclear energy. Id. at 213-17. In the
face of a clear congressional intent to establish such a dual system
of federal and state regulation, the Court concluded that federal
preemption could not be imposed over the intent of Congress to
preserve state regulatory authority. Id. at 216. In reaching this
conclusion, the Court noted that an express reservation of state
authority obviates any need to inquire into the tangential effects
that state regulation might have on federal regulatory jurisdiction.
Id.

Thus, this Court has examined statutory schemes similar to
the HMTA, and has consistently held that broad preemption
language, such as the FRSA preemption of state “laws relating to
railroad safety," cannot be interpreted as overriding a specific
statutory reservation of state authority. The HMTA clearly provides
such an express reservation of state authority to consistently
regulate the intermodal transportation of hazardous materials.

C. The decision of the lower court conflicts with the
decisions of this Court in Louisiana and Pacific Gas.

The lower court declined to apply the decisions of this Court,
based upon an illusory distinction. In this regard, the lower court
found that:

In this case, federal power to regulate
transportation of hazardous materials is absolute;
state power is limited. Thus, unlike Louisiana Public
Service where the Court was concerned that. . . a
federal agency may preempt state law only when
and if acting within the scope of its congressionally
delegated authority,’ 476 U.S. at 374, 106 S.Ct. at

_ 1901, we have no qualms about the scope of the

10

DOT's authority to promulgate hazardous material
transportation regulations. The only question is
whether the PUCO also may do so for railroads.

In Pacific Gas & Electric, the state had express
power to regulate the economics of nuclear
production. 461 U.S. at 205-06, 103 S.Ct. at 1722-23.
The federal law, the Atomic Energy Act, did not
explicitly prohibit states from exercising economic
regulation. The question before the Pacific Gas &
Electric Court was whether federal regulatory
authority over nuclear production preempted a state
regulation which arguably came within the express
state authority. Again, the question before us is
different. The federal government clearly has the
power to regulate all aspects of railroad safety; state
power is limited. Thus, the HMTA does not present
the same type of dual regulatory authority presented
in Louisiana Public Service or Pacific Gas & Electric.

CSX Transp., Inc. v. Public Utilities Comm'n of Ohio, 901 F. 2d at 497,
502 (6th Cir. 1990). The effect of the lower court's analysis of
Louisiana and Pacific Gas is to deny the states’ historic police power,
and limit the Court's decisions to the specific statutory schemes
examined in those cases. No such limitation was imposed by this
Court.

Rather, this Court has consistently emphasized that in
reviewing preemption cases, courts must start with the assumption
that the historic police power of the states is not to be superceded
by federal enactments “unless that was the clear and manifest
purpose of Congress." jones v. Rath Packing Co., 430 U.S. 519, 525
(1977) (quoting Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230
(1947)). Clearly, an express grant of federal statutory authority to
the states is not necessary to avoid preemption. The states’ police
power is assumed; the only relevant question is whether Congress
has exhibited an intention to displace that police power.

Thus, regarding the applicability of the Louisiana decision, the
lower court simply begged the question by noting that with respect
to hazardous materials, “federal power . . . is absolute; state power
is limited." CSX, 901 F. 2d at 502. In Louisiana, the decision of this
Court turned upon the fact that Congress had specifically preserved
state authority from preemption, not the fact that federal power

11

was limited by such a reservation of authority to the states.
Louisiana, 476 U.S. at 373. The limitation on federal authority was
examined in order to determine what authority Congress had
reserved to the states. Thus, this Court noted that "the best way of
determining whether Congress intended the regulations of an
administrative agency to displace state law is to examine the nature
and scope of the authority granted by Congress to the agency."
Louisiana, 476 US. at 374.

Had the lower court applied the Louisiana test, a different result
would have been reached. The "nature and scope” of the authority
granted by Congress to the Secretary under the HMTA was limited
to regulating the transportation of hazardous materials on an
intermodal basis, and preempting inconsistent state regulations.
See 49 US.C.App. §§ 1801, 1802, 1811(a). The FRSA clearly does
not convey congressional authority upon the Secretary to either
regulate the intermodal transportation of hazardous materials, or to
preempt state requirements that are preserved by the HMTA. See
45 US.C.§ 434; 49 U.S.C. § 103(c) (1982 & Supp. V 1987).

The lower court recognized that with enactment of the
HMTA, “the regulation of the transportation of hazardous materials
moved from a modal to an intermodal basis." CSX, 901 F. 2d at 500.
Further, the lower court recognized that the "HMTA allows state
regulations which are consistent with federal regulations." Id. at
501. Nonetheless, the lower court found preemption, and
attempted to distinguish Louisiana, based upon the authority
granted to the Secretary by the FRSA, a modal enabling statute
applying only to railroad safety.

Contrary to the lower court's analysis, this Court found in
Louisiana that like the HMTA, the Communications Act required a
dual system of regulation in an area where federal and state
jurisdictions necessarily overlap:

However, while the Act would seem to divide the
world of domestic telephone service neatly into two
hemispheres—one comprised of interstate service,
over which the FCC would have plenary authority,
and the other made up of intrastate service, over
which the States would retain exclusive juris-
diction—in practice, the realities of technology and
economics belie such a clean parceling of
responsibility. This is so because virtually all

12

a

telephone plant that is used to provide intrastate
service is also used to provide interstate service, and
is thus conceivably within the jurisdiction of both state
and federal authorities. Moreover, because the same
carriers provide both interstate and intrastate
service, actions taken by federal and state regulators
within their respective domains necessarily affect the
1 financial health of those carriers, and hence
their ability to provide service, in the other
“hemisphere.”
Louisiana, 476 US. at 360 (emphasis added). Thus, the fact that
“federal power is absolute” and "state oe is limited" under the
HMTA, has no bearing on the applicability of Louisiana. By limiting
federal preemption to inconsistent state laws, Congress expressly
preserved a measure of state police power authority to enforce
consistent state requirerrents. In the case at bar, as in Louisiana, the
“dual system of regulation” established by Congress applies to the
joint regulation of one subject, defines the reach of federal
jurisdiction, and preserves a measure of the states’ police power to
regulate that same subject. There is simply no basis for the lower
court's conclusion that the system of regulation created by the
HMITA “is of a different character than that at issue in Louisiana."
CSX, 901 F. 2d at 502.

Similarly, in Pacific Gas, the fact that federal power was
“absolute” had no bearing on this Court's decision. Specifically, this
Court found that "the Federal Government has occupied the entire
field of nuclear safety concerns, except the limited powers expressly
ceded to the States." Pacific Gas, 461 U.S. at 212. Despite such
“absolute” federal power, the Court declined to preempt state laws
within the sphere of statutory authority reserved to the states by
Congress. Id. at 213-16.

Further, in Pacific Gas, this Court expressly held that an
affirmative grant of congressional authority to the states was not
necessary in order to avoid preemption. The Court noted that
although Congress had not affirmatively granted regulatory
authority to the states, by reserving state authority to regulate the
economics of nuclear energy production, Congress “underscored
the distinction . . . between the spheres of activity left respectively
to the Federal Government and the States." Pacific Gas, 461 U.S. at
210.

13

In enacting the HMTA, Congress created the same type of
distinction found by this Court in Louisiana and Pacific Gas. The
federal government was granted authority to “Try the
intermodal transportation of hazardous materials. 49 U.S.C.App.
§§ 1801, 1802. Although affirmative regulatory authority was not
granted to the states, the authority of the federal government was
expressly limited to preemption of inconsistent state intermodal
hazardous materials requirements. 49 U.S.C.App. § 1811(a). In the
case below, the lower court expanded the authority of the federal
government, beyond that conferred by the HMTA, to preempt all
state intermodal hazardous materials requirements related to rail
transportation, whether consistent with the HMTA or not. This
Court should not permit its precedential decisions, and the express
requirements of the HMTA, to be ignored.

Il. The decision of the lower court raises an important
question of federal law that should be settled by this
Court.

The lower court correctly found that the HMTA requires that
the transportation of hazardous materials, by any mode, including
rail, must be regulated on an intermodal basis. CSX Transp., Inc. v.
Public Utilities Comm'n of Ohio, 901 F. 2d 497, 500 (6th Cir. 1990).
Further, the lower court correctly found that "the HMTA allows
state regulations which are consistent with federal regulations.” Id .
at 501.

With regard to the FRSA, the lower court correctly found that
the statutory authority of the United States Secretary of
Transportation, and the Federal Railroad Administration, is
expressly limited under the FRSA to the modal regulation of
railroad safety. Id. at 500. Further, the lower court correctly found
that in enacting the HMTA in 1974, Congress expressly removed the
transportation of hazardous materials from the purview of the
FRSA. Id.

The lower court framed the legal issue, as follows:

The question before us is simply this: should a
train carrying a load of hazardous waste be
considered a railroad which happens to be carrying
hazardous waste (thus suggesting application of the
FRSA preemption provision) or hazardous waste

14

which happens to be carried by rail (thus suggesting

application of the HMTA preemption provision)?
CSX, 901 F. 2d at 501. Congress answered this question by
requiring intermodal regulation of the transportation of hazardous
materials under the A; by expressly removing the HMTA from
the “laws relating to railroad safety" comprising the Secretary's
authority under the FRSA; and, by expressly preserving state
in 1 hazardous materials laws that are consistent with the
HMTA.

The lower court erred by concluding that the general
preemption provision of the FRSA may be construed as the
intention of Congress to preempt state intermodal hazardous
materials laws that are expressly preserved by the HMTA. Id. The
effect of the lower court decision is to render null the express
requirements of the HMTA preserving consistent state laws, and
requiring that the transportation of hazardous materials be
regulated only on an intermodal basis.

A. In enacting the HMTA, Congress expressly required
that the transportation of hazardous materials be
regulated only on an intermodal basis.

The very purpose of enactinent of the HMTA was to require
that the tra tion of hazardous materials be regulated only on
an intermodal basis. As expressly noted in the first section of the
HMTA, it is "the policy of Congress in this chapter to improve the
regulatory and enforcement authority of the Secretary of
Transportation to protect the Nation adequately against the risks to
life and property which are inherent in the transportation of
hazardous materials in commerce.” 49 U.S.C.App. § 1801.

In recognition of the fact that a single shipment of hazardous
maierials is routinely transported by several different modes of
transportation (ie, motor carrier to railroad), Congress applied the
HMTA to “any movement of property by any mode, and any
loading, unloading, or storage incidental thereto." 49 U.S.C.App.
§ 1802(6). Thus, the HMTA governs the regulation of shippers of
hazardous materials, manufacturers of containers by which such
materials are shipped, and transporters by any mode.
49 U.S.C.App. § 1804(a).

15

Prior to enactment of the HMTA, the transportation of
hazardous materials was regulated, on a separate modal basis, by
several modal administrations of the Department of Transportation,
exercising the statutory authority of the Secretary. In this regard,
the statutory authority of the Secretary to regulate the
transportation of hazardous materials, the Explosives and Other
Dangerous Articles Act, was delegated to the Federal Railroad
Administration. The lower court correctly noted this legislative
history of the HMTA:

In 1966, Congress created the Department of
Transportation (DOT). See 49 U.S.C. §§ 1651-1660, as
amended. The DOT received the authority under
several laws previously vested in a number of
government agencies and departments to regulate,
among other things, the transportation of hazardous
materials. P.L. 89-670, 49 U.S.C. 1651 (1966). The
authority to regulate under one of these laws, the
Explosives and Other Dangerous Articles Act, was
transferred from the Interstate Commerce
Commission. 49 U.S.C. § 1655(e)(4).

This authority to regulate, among other things,
the transportation of hazardous materials transferred
to the Secretary was delegated by statute to modal
administrations (in this case, the Federal Railroad
Administration and the Federal Highway
Administration). The Federal Railroad
Administration (FRA) had authority to promulgate
hazardous material transportation regulations for
railroads through its administration of the
Explosives Act. 49 U.S.C. § 1665(f)(3)(A) (1966),
amended by 49 U.S.C. § 1655(f)(3)(A) (1974). The
Federal Highway Administration (FHA) had similar
authority for motor carriers. 49 U.S.C. §
1655(f)(3)(B) (1966), amended by 49 U.S.C. §
1655(f)(3)(B) (1974). In both cases, the Secretary had
no power either to retain the authority or transfer it
to a modal administration other than the FRA (for
railroads) or FHA (for motor carriers). 49 U.S.C. §
1655(f)(3) (1966), amended by 49 U.S.C. § 1655(f)(3)
(1974).

16

CSX, 901 F. 2d at 499-500.

Further, the lower court correctly found that with the
enactment of the HMTA in 1974, Congress expressly removed the
authority of the Secretary to regulate the transportation of
hazardous materials on a modal basis. As noted by the lower court:

The HMTA amended the DOT enabling act to
prohibit the Secretary from delegating the functions,
powers, and duties to administer the Explosives Act
to the FRA or the FHA. Pub. L. 93-633, § 113(e)(1),
(2). The amended provision read in relevant part for
the FRA:

The Federal Railroad Administrator
shall carry out the functions, powers,
and duties of the Secretary pertaining
to railroad safety as set forth in the
statutes transferred to the Secretary
by subsection (e) of this section (other
than [the Explosives and Other
Dangerous Articles Act)).

49 U.S.C. § 1655(f)(3)(A). Thus, the regulation of the
transportation of hazardous materials moved from a
modal to an intermodal basis.

CSX, 901 F. 2d at 500 (emphasis added).

Notwithstanding its own findings that with the enactment of
the HMTA Congress expressly withdrew the statutory authority of
the Secretary to regulate the transportation of hazardous materials
on a modal basis, and expressly required intermodal regulation
under the HMTA, the lower court failed to apply its own correct
analysis. In this regard, the lower court reached the anomalous
conclusion that the Secretary may preempt state hazardous
materials lawvs pursuant to the FRSA, regardless of the fact that the
Secretary has no statutory authority to regulate the transportation
of hazardous materials under the FRSA:

Although we credit the PUCO's compelling
argument that the creation of the HMTA in 1974
removed promulgation (though not enforcement) of
regulations under the Explosives Act from the FRA,
we do not believe that such removal changes the fact
that FRSA preemption relates to all rules and
regulations regarding railroad safety promulgated by

17

the Secretary, whether or not such regulations are
promulgated by the FRA through power delegated
by the Secretary. See 45 U.S.C. § 434. Clearly, the
HMTA is a law relating to railroad safety, even if
regulations pursuant to it are promulgated by the
Secretary directly, not by the FRA.

CSX, 901 F. 2d at 501.

The analysis by the lower court overlooked the fact that the
HMITA did not merely transfer regulatory @uthority over hazardous
materials from the FRA to the Secretary. In enacting the HMTA,
Congress expressly removed the regulatory authority of the
Secretary from the general modal safety statutes, including the
FRSA, and required that the regulation of hazardous materials
transportation be addressed on an intermodal basis.

The Secretary is required by statute to delegate regulatory
authority over general modal safety to the modal administrations.
See, e.g., 49 U.S.C. § 103(c) (1982 & Supp. V 1987). The Secretary
has no statutory authority under the FRSA separate from that
exercised by the Federal Railroad Administration. Id. It is
incongruous to conclude, as did the lower court below, that
Congress intended to preempt state intermodal hazardous
materials regulations by means of a statue under which the
authority of the Secretary to regulate hazardous materials
transportation was expressly removed. The only statutory
authority granted to the Secretary to regulate hazardous materials
transportation is contained in the HMTA, under which Congress
expressly required intermodal regulation, and expressly preserved
consistent state laws.

B. Congress has specifically defined the scope of
preemption under the FRSA to exclude state laws
expressly preserved by the HMTA.

The lower court was able to reach the inconsistent conclusion
that Congress intended the FRSA to preempt state intermodal
hazardous materials laws only by ignoring the express provisions
of the HMTA, and by misconstruing the preemption provision of
the FRSA. The court fourd that the following ianguage of the
FRSA exhibited the manifest intent of Congress to preempt state
intermodal hazardous materials laws: "A State may adopt or

18

| . |

continue in force any law, rule, regulation, order, or standard
relating to railroad safety until such time as the Secretary has adopted
a rule, regulation, order, or standard covering the subject matter of
such State requirement." 45 U.S.C. § 434 (emphasis added).

Specifically, the lower court mistakenly concluded "that FRSA

ion relates to all rules and regulations regarding railroad

, and that "the HMTA is a law relating to railroad safety."

, 901 F 2d at 501. In reaching this conclusion, the lower court
disregarded the fact that Congress has expressly defined the "laws
relating to railroad safety" that comprise the Secretary's statutory
authority under the FRSA, and has specifically excluded the
HMTA.

The congressional purpose to preempt state laws "relating to
railroad safety," as expressed in 45 U.S.C. § 434, is clearly defined
and delimited by the general authority conveyed upon the
Secretary by the FRSA to "prescribe, as necessary, appropriate rules,
regulations, orders, and standards for all areas of railroad safety
supplementing provisions of law and regulations in effect on
October 16, 1970." 45 U.S.C. § 431(a). When the FRSA was enacted
in 1970, the only existing statute governing the transportation of
hazardous materials, the Explosives and Other Dangerous Articles
Act, was included within the statutes supplemented by the FRSA.
In 1974, statutory authority for the regulation of hazardous
materials was expressly removed from the FRSA, and consolidated
on an intermodal basis in the HMTA. 49 U.S.C. § 1655(f)(3)(A)
(1966), amended by 49 U.S.C. § 1655(f)(3)(A) (1974) (repealed 1983).
Congress limited the authority of the Secretary to preempt state
hazardous materials requirements to the intermodal authority
granted by the HMTA, by expressly excluding the Explosives Act
from the list of laws relating to railroad safety that comprised the
Secretary's authority under the FRSA.

In this regard, with enactment of the HMTA, Congress limited
the statutory authority of the Secretary that could be delegated for
administration under the FRSA, as follows:

The Federal Railroad Administrator shall carry
out the functions, powers, and duties of the
Secretary pertaining to railroad safety as set forth in the
statutes transferred to the Secretary by subsection (e)
of this section (other than [the Explosives and Other
Dangerous Articles Act)).

19

49 U.S.C. § 1655(f)(3)(A) (1966) amended by 49 U.S.C. § 1655(f)(3)(A)
(1974) (repealed 1983) (emphasis added).

The lower court recognized that "[t]he HMTA amended the
DOT enabling act to prohibit the Secretary from delegating the
functions, powers, and duties to administer the Explosives Act to
the FRA ...." CSX, 901 F 2d at 500. Accordingly, the lower court's
finding of FRSA preemption was based upon the statutory
authority of the Secretary, under a statute that Congress clearly
amended to exclude any authority to regulate the intermodal
transportation of hazardous materials.

In 1980, Congress again amended several provisions of the
FRSA. Federal Railroad Safety Authorization Act of 1980, Pub. L.
No. 96-423, 94 Stat. 1811 (1980), (amending 45 U.S.C. §§ 431-443).
The 1980 amendments clarified the congressional intention to limit
both preemption and state participation to the specific "laws related
to railroad safety" supplemented by the FRSA. In this regard, the
1980 amendments expanded both the authority of the Secretary,
and the authority of the states to participate in certified
enforcement under the FRSA, by incorporating those laws which
had only been "supplemented" in the original 1970 enactment.
Once again, the regulation of hazardous materials transportation
was not considered germane to either the authority of the Secretary,
or to the preemption and participation of the states, under the
FRSA definition of "laws relating to railroad safety."2 This fact was
expressly noted in the legislative history:

: Previously, state enforcement of federal railroad safety requirements was
limited to regulations promulgated under the FRSA: “A state may participate
in carrying out investigative and surveillance activities in connection with any
rule . . . under this subchapter.” 45 U.S.C. § 435(a) (emphasis added). The 1980
amendments clarified state authority under the FRSA “laws relating to
railroad safety," excluding any state enforcement of regulations promulgated
under the HMTA:

In addition to the provisions for State participation set forth in
subsections (a) and (c) of this section, the Secretary may enter
into agreements with any State to provide investigative and
surveillance activities with respect to those functions transferred
to the Secretary by section 1655(e)(1), (e)(2), and (e)(6)(A) of Title
49 ["railroad safety laws” listed in the Department of
Transportation Act].

Federal Railroad Safety Authorization Act of 1980, Pub. L. No. 96-423, 94 Stat.
1811 (1980) (enacting 45 U.S.C. § 435(g)).

20

Section 4 changes existing law by expanding the
permissible scope of state participation in railroad
safety activity under the State safety participation
program. Currently, states can only participate in
investigation and enforcement activity under the
1970 Safety Act and regulations thereunder. Existing
law does not allow state participation with regard to
the earlier safety laws. These laws are the Safety
Appliance Acts (45 U.S.C. 1-16), Locomotive
Inspection Act (45 U.S.C. 22-34), Signal Inspection
Act (49 U.S.C. 26), Hours of Service Act (45 U.S.C.
61-64b), and Accident Reports Act (45 U.S.C. 38-43).
This section would make it clear that the states could
participate in investigation and enforcement
activities under these other railroad safety laws.
Since the Hazardous Materials Transportation Act is not
directed specifically and solely at railroad safety, that Act
is not within the scope of the amendment.

H. R. Rep. No. 1025, 96th Cong., 2d Sess. 13, reprinted in 1980 U.S.
Code Cong. & Admin. News 3830, 3837-38 (emphasis added).

Similarly, Congress granted the same authority to the
Secretary, and clarified the duties of the Secretary with respect to
"railroad safety" under the FRSA without regard to the intermodal
regulation of hazardous materials transportation. As noted in the
legislative history:

Section 6 [amending 45 U.S.C. § 437] would
consolidate and clarify the general powers available

to the Secretary in carrying out his duties with respect to
railroad safety within the [Federal Railroad] Safety Act.

Subsection 6(a) of the bill includes within section
208(b) of the Safety Act (45 U.S.C. 437(b)) the
inspection authority available to the Secretary for the
purpose of carrying out his duties under the Safety
Appliance Acts, the Locomotive Inspection Act, the
Hours of Service Act, the Accident Reports Act, and
the Signal Inspection Act. These duties had been
transferred to the Secretary from the Interstate
Commerce Commission by the Department of
Transportation Act.

Id. at 3839 (emphasis added).

21

Thus, both the authority of the Secretary and participating
states under the FRSA was clarified by reference to the Department
of Transportation Act, which incorporated "laws relating generally
to safety appliances and equipment on railroad engines and cars,"
and transferred the administration of such laws from the ICC to the
Secretary. In this regard, both of the 1980 amendments clarifying
the purpose of the FRSA referred to the functions transferred to the
Secretary by sections 6(e)(1), (e)(2), and (e)(6)(A) of the Department
of Transportation Act (49 U.S.C.App. §§ 1655 (e)(1), (e)(2), and
(e)(6)(A)). See 45 U.S.C. §§ 435(g), 437(b). The Department of
Transportation Act, in pertinent part, provided that:

(e) There are hereby transferred to and vested in
the Secretary all functions, powers, and duties of the
Interstate Commerce Commission, and of the
Chairman, members, officers, and offices thereof,
under ---

(1) the following laws relating generally to
safety appliances and equipment on railroad engines
and cars, and protection of employees and
travelers:

(A) The Act of March 2, 1893, as
amended (27 Stat. 531; 45 U.S.C. 1 et seq.)
[Safety Appliance Act].

(B) The Act of March 2, 1903, as
amended (32 Stat. 943; 45 U.S.C. 8 et seq.)
[Safety Appliance Act].

(C) The Act of April 14, 1910, as
amended (36 Stat. 298; 45 U.S.C. 11 et
seq.) [Safety Appliance Act].

(D) The Act of May 30, 1908, as
amended (35 Stat. 476; 45 U.S.C. 17 et
seq.) [Safety Apptiance Act].

(E) The Act of February 17, 1911, as
amended (36 Stat. 913; 45 U.S.C. 22 et
seq.) [Locomotive Inspection Act].

(F) The Act of March 4, 1915, as

amended (38 Stat. 1192; 45 U.S.C. 30)
[Locomotive Inspection Act].

(G) Reorganization Plan No. 3 of 1965
(79 Stat. 1320).

(H) Joint Resolution of June 30, 1906,
as amended (34 Stat. 838; 45 U.S.C. 35)
[Accident Reports Act].

(I) The Act of May 27, 1908, as
amended (35 Stat. 325; 45 U.S.C. 36 et
seq.) [Accident Reports Act].

(J) The Act of March 4, 1909, as
amended (35 Stat. 965; 45 U.S.C. 37)
[Accident Reports Act].

(K) The Act of May 6, 1910, as
amended (36 Stat. 350; 45 U.S.C. 38 et
seq.) [Accident Reports Act].

(2) the following law relating generally to
hours of service of employees: The Act of
March 4, 1907, as amended (34 Stat. 1415; 45
US.C. 61 et seq.) [Hours of Service Act).

(4) the following provisions of law relating
generally to explosives and other dangerous
articles: Sections 831-835 of Title 18 [the
Explosives and Other Dangerous Articles Act].

(6) the following provisions of the
Interstate Commerce Act, as amended ---

(A) relating generally to safety
appliances methods and systems: Section
25 (49 App.U.S.C. 26) [Safety Appliance
Act].

49 U.S.C.App. § 1655(e) (repealed in part 1983) (emphasis added).

Three aspects of the 1980 amendments of the Department of
Transportation Act are especially noteworthy. First, Congress
expressly indicated that the purpose of the amendments was to
"clarify the general powers available to the Secretary in carrying out
his duties with respect to railroad safety within the [Federal

Railroad] Safety Act."3 Secondly, Congress expressly noted that the
HMTA was not within the scope of the clarifying amendments.
And finally, Congress clarified the intent of the FRSA by reference
to "laws relating generally to safety appliances and equipment on
railroad engines and cars, and protection of employees and
travelers," and specifically excluded any reference to either the
Explosives and Other Dangerous Articles Act, a hazardous
materials transportation statute within the same subsection as the
referenced “laws relating generally to safety appliances and
equipment," or to the HMTA. Compare 49 U.S.C.App. § 1655(e)(1),
(e)(2), (e)(6)(A) with 49 U.S.C.App. § 1655(e)(4) (repealed 1983).
Thus, the "list of other railroad safety statutes" to be supplemented
by the FRSA was expressly incorporated into the FRSA, and the
statutory basis for intermodal hazardous materials regulation was
expressly excluded from the “laws relating to railroad safety" that
comprise the Secretary's statutory authority under the FRSA.

Finally, in amending the FRSA in 1980, Congress conclusively
demonstrated that the HMTA was not to be considered as a "law
relating to railroad safety" under the FRSA, unless Congress
expressly required otherwise. In this regard, Congress included the
HMITA within only one section of the FRSA:

As used in this section, the term ‘Federal railroad
safety laws' means this Act, the Hazardous Materials
Transportation Act (49 U.S.C. 1801 et seq.), and those
laws transferred to the jurisdiction of the Secretary of
Transportation by subsection (e)(1), (2), and (6)(A) of
section 6 of the Department of Transportation Act (49
U.S.C. 1655(e)(1), (2), and (6)(A)).

$ H.R. Rep. No. 1025, 96th Cong., 2d Sess. 13, reprinted in 1980 U.S. Code
Cong. & Admin. News 3830, 3839. It is important to note that in defining its
own authority, the FRA expressly recognizes its limited authority to enforce
regulations under the HMTA, separate from its general regulatory authority for
railroad safety under the FRSA statutorily delegated from the Secretary:

By delegation from the Secretary of Transportation, the
Administrator has responsibility for: (a) Enforcement of
Subchapters B and C of Chapter I, Subtitle B, Title 49, CFR, with
respect to the transportation or shipment of hazardous materials
by railroad (49 CFR 1.4%s)); (b) Exercise of the authority vested in
the Secretary by the Federal Railroad Safety Act of 1970, 45
U.S.C. 421, et seq. (49 CFR 1.49(m)).

49 C.ER. § 209.1 (emphasis added).

24

_— ” |

Federal Railroad Safety Authorization Act of 1980, § 10(e), Pub. L.
No. 96-423, 94 Stat. 1811 (1980) (codified at 45 U.S.C. § 441(e))
(emphasis added).

Clearly, had Congress considered the FRSA to be generally
applicable to the intermodal regulation of hazardous materials
transportation, there would have been no need to expressly include
the HMTA in one specific section of the FRSA, or to limit the
definition to that particular section. Neither the FRSA generally,
nor the preemption provision of the FRSA, was intended by
Congress to apply to consistent state enforcement of federal
intermodal hazardous materials requirements.

It is difficult to imagine a more conclusive expression of the
legislative intention to separate the general safety authority over
railroads under the FRSA, from the specific intermodal authority
over the regulation of hazardous materials transportation contained
within the HMTA. Unquestionably, the authority of the Secretary
under the FRSA, state participation authority under the FRSA, and
federal preemption of state laws under the FRSA, were intended by
Congress to exclude any consideration of the transportation of
hazardous materials. Congress expressly recognized and reserved
the intermodal regulation of hazardous materials to the HMTA.

As it stands today, the Secretary is empowered under the
FRSA to "prescribe, as necessary, appropriate rules, regulations,
orders, and standards for all areas of railroad safety supplementing
provisions of law and regulations in effect on October 16, 1970." 45
U.S.C. § 431(a) (emphasis added). “All areas of railroad safety" is
expressly defined without reference to the regulation of hazardous
materials transportation. 45 U.S.C. § 431(k). The HMTA, enacted
in 1974, is clearly not a law that was "in effect on October 16, 1970."

As noted by Congress, "the general powers available to the
Secretary in carrying out his duties with respect to railroad safety
within the [Federal Railroad] Safety Act,” is clarified by 45 U.S.C. §
437. H.R. Rep. No. 1025, 96th Cong., 2d Sess. 14, reprinted in USS.
Code Cong. & Admin. News 3830, 3839. In this regard, the
Secretary has broad authority "to issue orders directing compliance
with this chapter or with any railroad safety rule, regulation, order,
or standard issued under this chapter." 45 U.S.C. § 437(a) (emphasis
added). The FRSA conveys broad inspection authority "[t]o carry
out the Secretary's responsibilities under this subchapter and under
the functions transferred by section 1655(e)(7’, (e)(2), and (e)(6)(A) of

{

25

Title 49." 45 U.S.C. § 437(b) (emphasis added). Neither the
Secretary, nor the FRA by statutory delegation, has any authority to

ate the intermodal transportation of hazardous materials as an
area of “railroad safety" under the FRSA.

The authority of the states to participate in “investigative and
surveillance activities" under the FRSA is also defined "with respect
to those functions transferred to the Secretary by section 1655(e)(1),
(e)(2), and (e)(6)(A)." 45 U.S.C. § 435(g). See also 45 U.S.C. §
436(a)(1), (b)(1). Similarly, the jurisdiction of the United States
district courts to enforce the orders of the Secretary is defined by
reference to orders "under this subchapter," and under the laws
transferred by section 1655(e)(1), (e)(2), and (e)(6)(A) of Title 49. 45
US.C. § 437(a), (d)(1), (d)(2); 45 U.S.C. § 439(a).

Thus, in requiring preemption of state "laws, rules,
regulations, orders, and standards relating to railroad safety,"
Congress clearly defined “railroad safety" as the specific subjects
addressed by the provisions of the FRSA and Sections 1655(e)(1),
(e)(2), and (e)(6)(A) of Title 49. 45 U.S.C. § 434. Congress expressly
excluded intermodal hazardous materials regulations from the
definition of “Igws. . . relating to railroad safety." 49 U.S.C. §
103(c)(1) (1982 & Supp. V 1987). As recently as 1983, Congress
recodified 49 U.S.C. § 1655(f)(3)(A), and again expressly defined
“railroad safety" as excluding hazardous materials regulation under
the HMTA:

(c) The [Federal Railroad] Administrator shall carry
out—

(1) duties and powers related to railroad safety
vested in the Secretary by section 6(e)(1), (2), and
(6)(A) of the Department of Transportation Act (49
App.U.S.C. 1655(e)(1), (2), and (6)(A)).

49 U.S.C. § 103(c)(1) (1982 & Supp. V 1987). Neither the Explosives
Act, nor the HMTA, were included by Congress in the statutes
comprising the authority over "railroad safety vested in the
Secretary" under the FRSA. The preemption of state hazardous
materials requirements has clearly been left to the express
provisions of the HMTA.

The clear and manifest intent of Congress requires that
questions of federal preemption of state intermodal hazardous
materials laws be resolved by reference to the only federal statute
that governs the intermodal transportation of hazardous materials,

26

the HMTA. In enacting the HMTA, Congress expressly removed
from the FRSA any statutory authority to either regulate the
transportation of hazardous materials, or to preempt state
hazardous materials laws. Congress expressly required that
hazardous materials transportation be regulated under the HMTA
on an intermodal basis, and expressly preserved the authority of
the states to regulate the intermodal transportation of hazardous
materials in a manner consistent with the HMTA.

C. The decision of the lower court created a statutory
conflict between the HMTA and the FRSA, and
resolved that conflict by nullifying the requirements
of the HMTA.

Despite finding that in enacting the HMTA, Congress
removed the statutory authority of the Secretary from the respective
modal safety statutes, including the FRSA, the lower court applied
the preemption provision of the FRSA to state intermodal
hazardous materials requirements. The effect of this
misconstruction is to defeat beth the congressional purpose of the
HMTA to require intermodal regulation, and the express
congressional intent to provide for consistent state regulation.

The rule of statutory construction that should govern this case
is that such a preemption analysis “is also to be tempered by the
conviction that the proper approach is to reconcile 'the operation of
both statutory schemes with one another rather than holding one
completely ousted.'" Merrill Lynch v. Ware, 414 U.S. 117, 127 (1973)
(quoting Silver v. New York Stock Exchange, 373 U.S. 341, 357 (1963)
(citations omitted)). Thus, in Louisiana, this Court held that where a
finding of preemption necessitated a finding that two federal
statutes were in conflict, the statutory provisions should be
reconciled, if possibli:, to preserve the authority of the state, and to
avoid the conflict. Louisiana, 476 U.S. at 370. The lower court
agreed with this rule of statutory construction, but then ignored it.
CSX, 901 F. 2d at 502.

Specifically, the lower court found that:

A failure to follow the preemption provision of the
HMITA in no respect ousts the HMTA. In this case,
the decision of the district court, applying the FRSA
preemption provision to regulations promulgated

27

under the HMTA, retains the essential character and
purpose of both statutes. The national character of
railroad regulation and the need for regulation of
hazardous material transportation on an intermodal
basis are both respected.

CSX, 901 F. 2d at 503.

The conclusion of the lower court is wrong. In expressly
requiring that the transportation of hazardous materials, by any
mode, be regulated under the HMTA, Congress did not create an
exception for hazardous materials transported by rail. By expressly
preserving consistent state intermodal hazardous materials
regulatio.is, Congress did not intend to preempt those same state
requirements by means of an earlier statute that addresses a
different subject.

By first concluding that the HMTA is a "law relating to
railroad safety" under the FRSA, the lower court necessarily
concluded that the two federal statutes were in conflict. CSX, 901 F
2d at 501. As the lower court noted, “unlike the preemption
provision of the FRSA, which forbids state regulation on subject
matter on which the Secretary has already adopted a regulation, the
HMITA allows state regulations which are consistent with federal
regulations." Id. The lower court "resolved" this conflict by
nullifying the express requirements of the HMTA.

If the HMTA is not properly considered to be one of the
“railroad safety laws" comprising the Secretary's authority under
the FRSA, there is no conflict between the respective preemption
provisions. The FRSA preempts state laws "relating to railroad
safety" where the Secretary has promulgated a regulation under the
FRSA "covering the subject matter." The HMTA preempts
inconsistent state intermodal hazardous materials requirements,
and preserves the states’ authority to enforce consistent intermodal
regulations.

While the lower court was correct that its decision does not
completely oust the HMTA, it certainly does so with respect to any
state enforcement of federal intermodal regulations that apply to
the transportation of hazardous materials by rail. The effect of this
decision is to render the statutory scheme of the HMTA anomalous,
and unworkable, subjecting state citizens to the harm that congress
intended to preclude through enactment of the HMTA.

;
28

. | | -

Under the provisions of the HMTA left undisturbed by the
lower court, states retain the right to regulate, consistent with the
requirements of the HMTA, s ge of hazardous materials,
manufacturers of containers such materials are shipped,
and transporters by any mode, except railroad. 49 U.S.C.App.
§ 1804(a). , Thus, the decision of the lower court results in the
anomalous situation of consistent state regulations applying to the
container in which a particular shipment of hazardous materials is
packaged, to the shipper, to the motor carrier who would transport
the shipment to the railyard, and to the motor cartier who would
transport the shipment from the railyard—but not to the
transporting railroad. It defies reason to believe that Congress
would have required this result without creating an express
exception for railroads.

Thus, “the need for regulation of hazardous materials
transportation on an intermodal basis," expressly recognized by
Congtess, was clearly not "respected" by the lower court. In
contravention of the intent of Congress, the lower court prohibited
the states from enforcing intermodal hazardous materials
requirements that are consistent with the HMTA. The decision of
the lower court should be reversed.

CONCLUSION

The decision of the lower court defeats the manifest
intention of Congress, prohibiting the sovereign states from
protecting their citizens from the very real threat posed by the daily
transportation of toxic and explosive substances through their
communities. Congress clearly did not envision such a result, and
this Court should not permit it to stand.

For the foregoing reasons, Petitioners respectfully submit
that this petition for certiorari to the United States Court of Appeals
for the Sixth Circuit should be granted.

Respectfully submitted,

ANTHONY J. CELEBREZZE, JR.
Attorney General of Ohio

ROBERT S. TONGREN
Assistant Attorney General
Counsel of Record

JAMES B. GAINER
Assistant Attorney General

Office of the Ohio Attorney General
Public Utilities Section

180 East Broad Street

Columbus, OH 43266-0573

(614) 466-4397

Attorneys for Petitioners,
The Public Utilities Commission
of Ohio, et al.

In The
Supreme Court of the United States

OCTOBER TERM, 1989

THE PUBLIC UTILITIES COMMISSION OF OHIO, et al.,

Petitioners,
v.

CSX TRANSPORTATION, INC., et al.,

Respondents.

Appendix

ANTHONY J. CELEBREZZE, JR.
Attorney General of Ohio

ROBERT S. TONGREN
Assistant Attorney General
Counsel of Record

JAMES B. GAINER
Assistant Attorney General

Office of the Ohio Attorney General
Public Utilities Section

180 East Broad Street

Columbus, OH 43266-0573

(614) 466-4397

Attorneys for Petitioners,
The Public Utilities Commission
of Ohio, et al.

TABLE OF CONTENTS

CSX Transp., Inc. v. Public Utilities Comm'n of Ohio,

701 F. Supp. 608 (S.D. Ohi0 1988)...........ssessecesecnessesseeneesnenneens

CSX Transp., Inc. v. Public Utilities Comm'n of Ohio,
901 F. 2d 497 (6th Cir. 1990)..........scssesesssesessssssesessnsnsnsseessesnenes

CSX TRANSPORTATION, INC.,
et al., Plaintiffs,

Vv.

The PUBLIC UTILITIES COMMISSION
OF OHIO, et al., Defendants.

No. C2-88-1023.

United States District Court,
S.D. Ohio, E.D.

Dec. 12, 1988.
OPINION AND ORDER

GRAHAM, District Judge.

In 1970 Congress enacted the Federal Railroad Safety Act
(FRSA), 45 U.S.C. § 421 et seq. which authorized the Secretary of the
Department of Transportation to adopt railroad safety regulations.
Congress included in that act broad preemption provisions
excluding the states from legislating in any area of railroad safety
already cuvered by regulations adopted by the Secretary. In 1974
Congress enacted the Hazardous Materials Transportation Act
(HMTA), 49 U.S.C.App. § 1801 et seq. authorizing the Secretary to
adopt rules and regulations governing the transportation of
hazardous materials by any mode of transportation. The
preemption provisions of the HMTA permit the states to adopt and
enforce their own laws and rules regulating the transportation of
hazardous materials so long as they are not inconsistent with
federal rules adopted under the HMTA. This case presents the
question of whether state legislation regulating the transportation
of hazardous materials by rail is governed by the strict preemption
provisions of the FRSA or by the more liberal preemption
provisions of the HMTA.

The State of Ohio has recently passed legislation
incorporating into Ohio law the federal regulations adopted by the
Secretary of Transportation under the HMTA relating to the
transportation of hazardous materials by rail. See Ohio Rev.Code §
4907.64 (effective September 26, 1988) (authorizing the Public

A-1

Utilities Commission of Ohio (PUCO) to adopt railroad safety laws
"consistent with, and equivalent in scope, coverage, and content to,
the provisions of the [HMTA], and regulations adopted under it.");
Ohio Admin.Code § 4901:3-1-10 (effective December 10, 1988)
(adopting the provisions of the HMTA regulations contained in 49
C.F.R. §§ 171-179 governing the transportation of hazardous
materials by rail). Ohio seeks to enforce these rules against
railroads through its own system of enforcement, which includes
civil penalties. See Ohio Rev.Code § 4905.83; Ohio Admin.Code §§
4902:2-7-01 through 4901:2-7-22.

This legislation resulted from a study of state and federal
hazardous materials regulation, enforcement and emergency
response conducted by a group of state agencies collectively known
as the Ohio Hazardous Substances Emergency Team (OHSET)
which was formed in response to the July, 1986 disaster in
Miamisburg, Ohio when a number of railroad cars operated by
plaintiff CSX Transportation, Inc., derailed near Miamisburg, Ohio.
A rail car containing phosphorous ignited and burned, spreading a
cloud of toxic gas throughout the area and forcing the evacuation of
40,000 citizens. The Ohio act reflects the judgment of the executive
and legislative branches of state government that federal
enforcement of regulations governing hazardous materials
transported by rail is inadequate.

Plaintiffs are four major railroads engaged in interstate rail
transportation in and through Ohio who challenge the
constitutionality of the newly enacted Ohio statutes and
administrative regulations. Defendants are the PUCO, its chairman
and commissioners. Plaintiffs challenge the Ohio statutes and
regulations on the grounds that they violate the Supremacy Clause
of the United States Constitution, the preemption provisions of the
FRSA and the HMTA and on the further grounds that they impose
an undue burden on interstate commerce. The matter is now before
the Court on the plaintiffs' motion for summary judgment and the
defendants’ cross motion for summary judgment. In their motions,
the parties seek summary judgment on the issue of federal
preemption.

The United States Supreme Court has recently summarized
the various tests enunciated for determining whether federal law
has preempted state legislation:

A-2

The Supremacy Clause of Art. VI of the
Constitution provides Congress with the power to
pre-empt state law. Pre-emption occurs when
Congress, in enacting a federal statute, expresses a
clear intent to pre-ernpt state law, Jones v. Rath Packing
Co., 430 US. 519, [97 S.Ct. 1305, 51 L.Ed.2d 604] (1977),
when there is outright or actual conflict between
federal and state law, e.g., Free v. Bland, 369 U.S. 663,
[82 S.Ct. 1089, 8 L.Ed.2d 180] (1962), where
compliance with both federal and state law is in effect
physically impossible, Florida Lime & Avocado Growers,
Inc. v. Paul, 373 U.S. 132 [83 S.Ct. 1210, 10 L.Ed.2d
248] (1963), where there is implicit in federal law a
barrier to state regulation, Shaw v. Delta Air Lines, Inc.,

& 463 US. 85 [, 103 S.Ct. 2890, 77 L.Ed.2d 490] (1983),
where Congress has legislated comprehensively, thus
occupying an entire field of regulation and leaving no
room for the States to supplement federal law, Rice v.
Santa Fe Elevator Corp., 331 U.S. 218 [67 S.Ct. 1146, 91
L.Ed. 1447] (1947), or where the state law stands as an
obstacle to the accomplishment and execution of the
full objectives of Congress. Hines v. Davidowitz, 312
U.S. 52 [, 61 S.Ct. 399, 85 L.Ed. 581] (1941).
Pre-emption may result not only from action taken by
Congzess itself; a federal agency acting within the
scope of its congressionally delegated authority may
pre-empt state regulation. Fidelity Federal Savings &
Loan Assn. v. De la Cuesta, 458 U.S. 141 [, 102 S.Ct. 3014,
73 L.Ed.2d 664] (1982); Capital Cities Cable, Inc. v.
Crisp, 467 U.S. 691 [ ,104 S.Ct. 2694, 81 L.Ed.2d 580)
(1984).

Louisiana Public Service Commission v. FCC, 476 U.S. 355 358-369, 106
S.Ct. 1890, 1989-99, 90 L.Ed.2d 369 (1986).

At the heart of each of these standards is the discernment of
the true purpose of Congress. "The critical question in any
pre-emption analysis is always whether Congress intended that

federal regulation supersede state law.";, Louisiana Public Service
Commission, 476 U.S. at 369, 106 S.Ct. at 1899.

The stated purpose of the FRSA is "to promote safety in all
areas Of railroad operations." 45 U.S.C. § 421. The Act requires the
Secretary of Transportation to prescribe appropriate rules,

A-3

regulations, orders and standards for all areas of railroad safety and
to conduct research, development, testing, evaluation and training
in all areas of railroad safety. In 45 U.S.C. § 434 Congress declared
its intention that laws, rules, regulations, orders and standards
relating to railroad safety should be nationally uniform to the extent
practicable. The statute reads as follow:

The Congress declares that laws, rules,
regulations, orders, and standards relating to railroad
safety shall be nationally uniform to the extent
practicable. A State may adopt or continue in force
any law, rule, regulation, order, or standard relating to
railroad safety until such time as the Secretary has
adopted a rule, regulation, order, or standard covering
the subject matter of such State requirement. A State
may adopt or continue in force an additional or more
stringent law, rule, regulation, order, or standard
relating to railroad safety when necessary to eliminate
or reduce an essentially local safety hazard, and when
not incompatible with any Federal law, rule,
regulation, order, or standard, and when not creating
an undue burden on interstate commerce.

Thus, under 45 U.S.C. § 434, a state may legislate in areas relating
to railroad safety only until such time as the Secretary has adopted
a rule, regulation, order or standard covering the same subject
matter. A state, within limitation, may adopt an additional or more
stringent rule only when necessary to address a local safety hazard.
This exception does not apply to this case.

The FRSA, however, does contemplate a limited state role in
enforcement. Title 45, U.S.C. § 435 provides that a state may
participate in investigation and surveillance in connection with any
rule or standard prescribed by the Secretary under the FRSA
pursuant to certification provisions contained in the statute. The
section provides, however, that "the Secretary shall retain the
exclusive authority to assess and compromise penalties ... for the
violation of rules, regulations, orders, and standards prescribed by
the Secretary" under the FRSA.

The stated purpose of the HMTA is "to improve the regulatory
and enforcement authority of the Secretary of Transportation to
protect the Nation adequately against the risks to life and property
which are inherent in the trarsportation of hazardous materials in

A-4

commerce." 49 U.S.C.App. § 1801. The Act authorizes the
Secretary to issue regulations for the safe transportation of
hazardous materials which "shall be applicable to any person who
transports ... a hazardous material." 49 U.S.C.App. § 1804(a).
The Act authorizes the Secretary to issue regulations governing not
only the transportation of hazardous materials, but also their
handling and the manufacture, repair and testing of the containers
in which they are transported. 49 U.S.C.App. §§ 1804, 1805.

In 49 U.S.C.App. § 1811, Congress provided for preemption
of state laws on the subjects covered by the HMTA only when they
are inconsistent with the Act or regulations adopted pursuant to it.

(a) Except as provided in subsection (b) of this
section, any requirement, of a State or political _
subdivision thereof, which is inconsistent with any
requirement set forth in this chapter, or in a regulation
issued under this chapter, is preempted.

Section 49 U.S.C.App. § 1811(b) provides a procedure whereby a
state may request the Secretary of Transportation to make an
administrative determination whether or not a state requirement is
inconsistent with the HMTA or a regulation adopted pursuant to it.
The Secretary has delegated this authority to the Office of
Hazardous Materials Transportation, Research and Special
Programs Administration (RSPA), 49 C.ER. § 107.201 et seq.

Acting pursuant to the HMTA, the Secretary has adopted a
body of regulations defining hazardous materials, establishing
requirements for the containers they are transported in, and
regulating their transportation by any mode, including air, water,
rail and highway. These regulations are known as the Hazardous
Materials Rules (HMR) and they are found at 49 C.F.R. §§ 171-179.
The HMR's which relate specifically to railroads are found at 49
C.ER. § 174.

Plaintiffs contend that this case is controlled by the broad
preemption provisions of FRSA and that Congress intended to
preclude state regulation of the transportation of hazardous
materials by rail. Plaintiffs argue that regulations relating to the
transportation of hazardous materials by rail are regulations
“relating to railroad safety" within the meaning of 45 U.S.C. § 434
and that the states are precluded thereby from adopting or
enforcing dual standards which relate to the transportation of
hazardous materials by rail. Defendants contend, on the other

A-5

hand, that Congress intended that the FRSA and its preemption
provisions should apply only to general railroad safety regulations
pertaining essentially to equipment, track and operating procedures
whereas Congress addressed the subject of hazardous materials in
the HMTA and intended that its preemption provisions should
apply to such regulations.

It is clear that when Congress enacted the FRSA in 1970 it
addressed not only general rail safety but also specifically
addressed the transportation of hazardous materials.

The Congress declares that the purpose of this
Chapter [FRSA] is to promote safety in all areas of
railroad operations . . . and to reduce deaths and
injuries to persons and to reduce damage to property
caused by accidents involving any carrier of hazardous
materials.

45 U.S.C. § 421 (emphasis added). There is no dichotomy, as
defendants suggest, between the FRSA and the HMTA, with the
former limited to general railroad safety and the latter directed
specifically toward the intermodal regulation of the transportation
of hazardous materiais. Indeed the regulation of the transportation
of hazardous materials by rail is inextricably intertwined with the
regulation of railroad equipment and operating procedures.

The legislative history of the FRSA evidences a clear
Congressional intent that rail safety regulations be nationally
uniform and that all enforcement should be by federal authorities.

With the exception of industrial or plant
railroads, the railroad industry has very few local
characteristics. Rather, in terms of its operations, it has
a truly interstate character calling for a uniform body
of regulations and enforcement. It is a national
system. ... In addition to the obvious areas of rolling
stock and employees, such elements as operating
rules, signal systems, power supply systems, and
communication systems of a single company normally
cross many State lines. To subject a carrier to
enforcement before a number of different State
administrative and judicial systems in several areas of
operation could well result in an undue burden on
interstate commerce.

H.R.Rep. No. 1194, 91st Cong., 2d Sess., reprinted in 1970 U.S.Code

A-6
%

a tre ; mn -

Cong. & Admin.News 4104, 4110-4111.

The Committee does not believe that safety in the
Noton's railroads would be advanced sufficiently by
suvjecting the national rail system to a variety of
enforcement in 50 different judicial and administrative
systems. Accordingly, while it has preserved the
framework of certification, it has modified the concept
insofar as it applies to the nation's rail system to make
all enforcement Federal in nature. The Secretary will
have exclusive authority to assess and compromise
penalties and to recommend court action for recovery of
such penalties .. . [States] will have no authority to
assess and compromise penalties or to seek State judicial
action.

Id. at 4109.

The scope of preemption under the FRSA has been broadly
construed by the courts. See National Association of Regulatory
Utility Commissioners v. Coleman, 542 F.2d 11 (3d Cir.1976);
Chesapeake & Ohio Railway Co. v. City of Bridgman, 669 FSupp. 823,
825 (W.D.Mich.1987); Consolidated Rail Corp. v. Pennsylvania Public
Utility Commission, 536 FSupp. 653 (E.D.Pa.), aff'd mem., 696 F.2d
981 (3rd Cir. 1982), aff'd mem. 461 U.S. 912, 103 S.Ct. 1888, 77
L.Ed/2d 280 (1983); Missouri Pacific Railroad Co. v. Railroad
Commission of Texas, 671 F.Supp. 466 (W.D.Tex.1987), aff'd, 850 F2d
264 (5th Cir.1988).

As noted above, the preemption clause of the FRSA provides
in part as follows:

A State may adopt or continue in force any law, rule,
regulation, order, or standard relating to railroad
safety until such time as the Secretary has adopted a
rule, regulation, order or standard covering the subject
matter of such State requirement.

45 US.C. § 434. A central issue in this case is the meaning of the
phrase "any law, rule, regulation, order or standard relating to
railroad safety." The key components of the phrase are: “any law,
etc.," "relating to," “railroad safety." These are words of broad
meaning and in ordinary usage they would certainly include rules
relating to the transportation of hazardous materials by rail.
Defendants have a heavy burden to show that the phrase should be
interpreted so as to exclude such rules.

A-7

The legislative history of FRSA indicates that Congress
intended the phrase, “relating to railroad safety," as used in 45
U.S.C. § 434, to include intermodal safety regulations insofar as
they apply to rail transport. For instance, Congress included in a
list of “existing railroad safety laws" the Explosives and Other
Dangerous Articles Act, a predecessor of the HMTA which
provided for intermodal regulation of the transportation of
hazardous materials. H.R.Rep. No. 1194, 9ist Cong., 2d Sess.
(Appendix B).

In 1980 when Congress defined the term “railroad safety laws"
in the context of a “whistle blower" statute, the definition expressly
included the HMTA. See 45 U.S.C. § 441(e). The statutes listed in
this section are the same statutes set forth in the list mentioned in
the preceding paragraph, except for the substitution of the HMTA
for the Explosives Act.

The legislative history of the FRSA shows that the issue of
federal preemption was vigorously debated, leaving a clear record
of Congressional intent for virtually complete federal preemption in
the area of railroad safety laws. The legislative history of HMTA,
which was enacted just four years later, is devoid of any debate or
discussion on the standard of preemption applicable to rules which
regulate the transportation of hazardous materials by rail.

Representative Springer observed during the hearings on
FRSA:

I think this [preemption] is the great area or problem, Mr.
Secretary where there would be a possibility, this is
just opinion, but I think I can read that this would be
the area probably where we might have the most
agreement or disagreement about what ought to be
done. | think this is really what the turning point of ihe
bill will be, in my opinion.

Hearings Before the Subcommittee on Transportation and Aeronautics of
the Committee on Interstate and Foreign Commerce, 91st Cong., 2d Sess.
43 (1970) (emphasis added).

Representative Kuykendall made the following comment:

Yes. Mr. Reed, I think you have gathered-I know you
were here this morning and heard the testimony and
probably at least had representatives at some of the
other sessions. There is not much disagreement with
this bill and it seems to me that almost thesentire area of

A-8

disagreement has now been pretty well isolated.
Disagreeing with your position on the overal! goals of
this bill would be just like disagreeing with God and
motherhood. You just don't do it. So let's get to the
area of discussion of what we are faced with, the problem of
preemption and authority of the different levels of

regulatory agencies.
See id. at 141 (emphasis added).

It would certainly seem that if Congress had intended rail
safety regulations adopted under the HMTA to be subject to a
different standard than the one so recently and vigorously debated
during the adoption of the FRSA, then the legislative history would
reflect such a decision. The absence of debate or comment on the
issue of preemption of railroad regulations in the legislative history
of the HMTA leads to the conclusion that in enacting the HMTA
Congress must have intended that any rail safety regulations
adopted pursuant to it would fall under the same preemption
standard already established for all rail safety regulations under the
FRSA.

Defendants are unable to point to any specific provision of the
HMTA which negates the express preemption provisions of the
FRSA. Defendants’ argument is based upon an implied repeal of
the preemption provisions of the FRSA by the more liberal
preemption provisions of the HMTA. The implied repeal of an
earlier statute by the mere enactment of a later, even potentially
conflicting one, is disfavored and should be avoided whenever
possible. See, e.g., Ruckelshaus v. Monsanto Co., 467 U.S. 986, 1013,
194 S.Ct. 2862, 2878, 81 L.Bd.2d 815 (1984); TVA v. Hill, 437 U.S. 153,
189-190, 98 S.Ct. 2279, 2299-2300, 57 L.Ed.2d 117 (1987); United
States v. United Continental Tuna Corp., 425 U.S. 164, 168-169, 96 S.Ct.
1319, 1322-23, 47 L.Ed.2d 653 (1976); Davis v. Devine, 736 F.2d 1108,
1114 (6th Cir.), cert. denied., 469 U.S. 1020, 105 S.Ct. 436, 83 L.Bd.2d
362 (1984). Here, the most logical way to resolve any conflict is to
give effect to the specific preemption language of the FRSA (which
by its literal language applies to al! rai! safety regulations adopted
by the Secretary) while applying the more liberal preemption
standard of the HMTA to regulations adopted with respect to other
modes of transportation.

Defendants point out that the HMTA transferred regulatory
authority over hazardous materials transportation from the Federal

A-9

Railroad Administration (FRA) to the Secretary of the Department
of Transportation and argue that this signifies a Congressional
intent that Stich regulations should not be governed by the
preemption provisions of the FRSA. Defendants overlook the fact
that the preemption provisions of the page ig to rail safety
measures adopted by the Secretary, not the FRA. By transferring
hazardous materials regulation from the FRA to the Secretary,
Congress did not in any way sepatate tailroad safety regulation
from hazatdous materials regulation, rather, the Secretary is
responsible for both. Indeed, as noted, the FRSA preemption
provision is tied to railroad safety regulations adopted by the
Secretary, not by the FRA. Defendants’ argument woild make
sense only if FRSA preemption was in fact tied to regulations
adopted by the FRA and plainly it is not.

Every court which has specifically addressed the | goers has
held that the preemption standards of the FRSA apply to
regulations adopted by the Secretary under the HMTA. See
Atchison, Topeka & Santa Fe Railway Company v. Illinois Commerce
Commission, 453 FSupp. 920 (N.D.111.1977); Missouri Pacific Railroad
Co. v. Railroad Commission of Texas, 671 FSupp. 466 (W.D.Tex.1987),
aff'd, 850 F.2d 264 (5th Cir.1988) (affirmed solely on FRSA
preemption; Fifth Circuit found it unnecessary to rule on HMTA
preemption issue); CSX Transportation, Inc., v. City of Tullahoma, Case
No. CIV4-87-47, Slip Op. at 11, + F.Supp. -- (E.D.Tenn.Feb. 17,
1988). In Atchison, at 924, the court said:

However, these statutes do not require the overly
technical interpretation which would subject orders
and regulations issued by the Secretary under one law
to a different preemption standard than those under
another. [FRSA and HMTA] The Railroad Safety Act
of 1970 provides that state action is preempted when
the Secretary has issued orders or tegulations covering
the field. This is not limited merely to those
promulgated under that Act, but refers instead to any
action takea by the Secretary ....

Any more narftow interpretation of the Railroad
Safety Act would frustrate its stated purpose of
establishing uniform national standards.

Similarly in Missouri Pacific, the court said:
Section 434 refers to acts by “the Secretary,” referring to

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the Secretary of Transportation, and does not confine
itself to acts pursuant to the FRSA. Thus, an act by the
Secretary putsuant to, for example, the HMTA could
preempt state law under the terms of section 434.

671 F.Supp. at 471 n. 1.

And finally, in CSX Transportation, at 11, the court held:
1. Transportation of hazardous material is regulated
by the Secretary of Transportation under both the

MTA afd the FRSA. Although the preemption
standard is somewhat different under the two acts,
under the FRSA, state action is preempted when the
Secretary has isstied orders ot regulations covering the
field. Preemption is not limited to those regulations
a urder the FRSA, but refer instead to any
other rule, regulation, order, or standard covering the
subject matter and adopted by the Secretary.

The legislative history of Congressional actions taken since
the enactment of the HMTA reinforce the conclusion that Congress
intended the preeinption provisions of FRSA to apply to
regulations adopted under the HMTA insofar as they apply to rail
transport. During a joint hearing before the House of
Representatives in 1979, the House Committee submitted written
questions to the Department of Transportation about state
involvement in the regulation 0” transportation of hazardous
materials. The arswets were given by the director of RSPA and
included a discussion of the differing preemption standards of the
FRSA and the HMTA:

The preemption provisions of the Hazardous Materials
Transportation Act operate to preempt any State or
local requitement that is “inconsistent” with the
Federal regiilations. Unless it is “inconsistent,” a State
of local requitement is not preempted. /n the case of a
State ot local restriction directed at rail transport, there is a
second Federal statutory provision that acts to further limit
the legal authority of States ard localities. Under the
Railroad Safety Act, a State of locality is expressly
preempted from any “additional or more stringent" rail
safety requiterent titless it is “necessary to eliminate
of reduce a local safety hazard."

Hazardous Materials Transportation Act Amendments: Joint Hearing

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Before the Subcommittee on Surface Transportation and Subcommittee on
Aviation of the Committee on Public Works and Transportation on H.R.
3502, 96th Cong., 1st Sess. 33 (1979) (emphasis added in part).

This statement was made in the context of hearings with
respect to appropriations for enforcement of the HMTA and in
response to specific questions by the Congressional Subcommittee
relating to the role of the states in the regulation of the
transportation of hazardous materials. Viewed in this context, it is
a clear statement to Congress that the Department of Transportation
interprets the preemption provisions of the FRSA to apply to
hazardous materials regulations adopted under the HMTA.
Although amendments have been made to both the FRSA and the
HMITA since that time, none of them have changed the preemption
provisions of either statute.

Likewise, Congress has taken no action to overturn the
decision of the District Court for the Northern District of Illinois in
Atchison, Topeka & Santa Fe Railway Company v. Illinois Commerce
Commission, 453 F.Supp. 920 (N.D.I11.1977) The United States was an
intervening plaintiff in Atchison and there was no appeal from the
district court's decision. As noted above, the Atchison court held
that the preemption provisions of FRSA apply to regulations
adopted under the HMTA. "Congress is deemed to know the
executive and judicial gloss given to certain language and thus
adopts the existing interpretation unless it affirmatively acts to
change the meaning." Florida National Guard v. Federal Labor
Relations Authority, 699 F.2d 1082, 1087 (11th Cir.), cert. denied, 464
U.S. 1007, 104 S.Ct. 524, 78 L.Ed.2d 708 (1983), citing Lorillard v.
Pons, 434 U.S. 575, 580-81, 98 S.Ct. 866, 869-70, 55 L.Ed.2d 40 (1978),
and Albermarle Paper Co. v. Moody, 422 U.S. 405, 414 n. 8, 95 S.Ct.
2362, 2370 n. 8, 45 L.Ed.2d 280 (1975).

Congress's failure to amend the FRSA or the HMTA
preemption provisions in response to either the Atchison decision or
RSPA's position in its response to the House Committee in May of
1979 can be read as acceptance of those interpretations. Indeed
Congress's Office of Technology Assessment has accepted this
interpretation in a report entitled Transportation of Hazardous
Materials, OTA-SET-304 (Washington, D.C.; U.S. Government
Printing Office, July 1986). In the context of a discussion of a
federally financed program for training state inspectors, this
comment appears at page 213 of the report:

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Even where State inspectors have been trained in rail
safety procedures, they cannot conduct hazardous
materials inspections, because authority to do so has
not been granted to States.

The author of the report attributed this interpretation to the
FRA. See Defendants’ Motion for Leave to File Supplement to Prior
Affidavit or to File Supplemental Pleading, Docket 26.

Defendants further argue that Congress's treatment of the role
of the states in surveillance and inspection under the FRSA
demonstrates its intent that regulation of the transportation of
hazardous materials by rail should be governed by the preemption
standards of the HMTA.

When the HMTA was enacted in 1974, Congress also
amended the FRSA. The legislative history indicates Congressional
displeasure with the performance of the F~.A.

The Committee found that after three and one
half years, the FRA inspection of rail equipment and
plant seems to be a stepchild of the Department's low
key safety approach. by April 1974, the FRA had only
12 track inspectors for over 300,000 miles of rail track,
16 signal and train control inspectors, and only 50
inspectors for more than 1.7 million freight cars and
25,000 locomotives. There were only 8 inspectors for
hazardous materials. When questioned about bridges
and tunnels, the FRA witness revealed his department
had only one bridge and tunnel expert in Washington,
and yet he stated that there were 192,000 bridges.
Many of these bridges are old, and one, which crosses
the Mississippi River, was first opened in 1856 and is
still in operation today.

H.R.Rep. No. 1083, 93rd Cong., 2nd Sess., reprinted in 1974
U.S.Code Cong. & Admin.News 7669, 7672.

Congress also criticized the FRA's delay in implementing
provisions designed to involve the state in the enforcement of
safety regulations within the scope of FRSA, as authorized by 45
US.C. § 435. Id. at 7673. Congress responded to these concerns by
increasing the appropriations to administer the FRSA and requiring
that a greater percentage of such appropriations be directed to
enforcement activities. Transportation Safety Act of 1974, 1974

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U.S.Code Cong. & Admin.News 7669 et seq. (codified as amended
at45 U.S.C. § 444).

In 1980 Congress again amended the state participation
program under FRSA. Federal Railroad Safety Authorization Act of.
1980, Pub.L. No. 96-423, 1980 U.S.Code Cong. & Admin.News (94
Stat.) 1811 (amending 45 U.S.C. §§ 431-443). This amendment
expanded the scope of state participation under the inspection and
surveillance provisions of FRSA, 45 U.S.C. § 435, but specifically
excluded the HMTA from this program. Defendants argue that this
indicates Congress's intention that the regulation of the
transportation of hazardous materials by rail should be subject to
the preemption provisions of the HMTA, otherwise the exclusion of
the HMTA from the state certified inspection and surveillance
provisions of FRSA would exclude the states from any role
whatsoever in the enforcement of regulations regarding the
transportation of hazardous materials by rail. Defendants argue
that it would not be logical for Congress to have excluded the states
_from any role in this important area when it included them in the
enforcement of other areas of railroad safety.

The Court agrees that it may have been logical or even
desirable for Congress to have provided a meaningful state role in
regulating the transportation of hazardous materials by rail.
However, the issue before the Court is not the wisdom of the
Congressional enactments, but what Congress intended. Based
upon a considered analysis of the statutory language and the
legislative history, the Court is satisfied that Congress intended that
the strict preemption provisions of the FRSA apply to hazardous
materials regulations applicable to railroads adopted under the
HMTA. This means that the only role of the states in the regulation
of the transportaticn of hazardous materials by rail is that narrow
role permitted by the preemption provisions of the FRSA.

Defendants cite a decision of the District Court of Nevada in
the case of Southern Pacific Transportation Co. v. Public Service
Commission of Nevada, No. CV-N-86-444-BRT Slip Op. (D.Nev. Sept.
28, 1988) (attached as Appendix G to Defendants’ Cross Motion For
Partial Summary Judgment, Docket 16) and Inconsistency Ruling
IR-19, 52 Fed.Reg. 24404, 24410, 24411 (1987), aff'd 53 Fed.Reg. 11600
(1988) (attached as Appendix F, Defendants’ Cross Motion For
Partial Summary Judgment, Docket 16).

In its brief opinion in Southern Pacific Transportation, the

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District Court for the District of Nevada upheld regulations of the
Public Service Commission of Nevada which governed the
temporary storage of hazardous materials on railroad property.
The Court found that the federal regulations did not address the
manner of storage of hazardous materials and that there was no
inconsistency between the Nevada regulations and the federal
regulations. The court considered only the preemption provisions
of the HMTA. No mention was made of the preemption provisions
of the FRSA, thus it appears that the central issue in the present
case was neither presented to, nor decided by the Nevada District
Court.

Nor did the RSPA inconsistency ruling cited by defendants
address the issue presented by the present case. By law RSPA is
limited to a consideration of inconsistency under the preemption
standards of HMTA. RSPA inconsistency rulings contain an explicit
acknowledgment of this limitation upon its decision making:

Since these precedings are conducted pursuant to the
HMTA, only the question of statutory preemption
under the HMTA will be considered. A Federal court
might find a non-Federal requirement statutorily
preempted under another statute.

See, e.g., Inconsistency Ruling IR-19, 52 Fed.Reg. 24404, 24405
(1987), aff'd, 53 Fed.Reg. 11600 (1988) (emphasis added). See also 49
C.FR. § 107.209. The statement in this RSPA ruling that "RSPA
encourages states to adopt and enforce the HMR as state
requirements" does not relate to railroads. Rather, it is based on
another RSPA ruling dealing with highway vehicles, an area in
which RSPA has indeed encouraged an active state role. See IR-17,
51 Red.Reg. at 20931.

Finally, although defendants assert that at least 12 other states
have adopted the federal HMR as state requirements applied to
railroads, there is no evidence that such statutes are being enforced,
that their constitutionality has been tested or that Congress or the
Department of Transportation has in any way sanctioned their
existence.

Ohio has attempted to do precisely that which Congress
sought to prohibit. Ohio Rev.Code §§ 4907.64 and 4905.83 grant to
the PUCO the authority to establish both a statewide system of
railroad safety standards that duplicate the regulations adopted by
the Secretary of Transportation under the HMTA and a procedure

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for enforcement of those standards by the PUCO, including the
imposition of forfeitures of up to $10,000.00 for each day of each
violation. The Ohio statutes and administrative regulations fall
squarely within the preemption provisions of the FRSA because the
Secretary of Transportation has adopted rules and regulations
covering the same subject matter.

Plaintiffs’ Motion For Partial Summary Judgment is well
taken. Ohio Rev.Code §§ 4905.83 and 4907.64 and Ohio
Admin.Code §§ 4901:2-7-1 through 4901:2-7-22 and 4901:3-1-10 are
preempted by the Federal Railroad Safety Act of 1970 and plaintiffs
are entitled to an order enjoining defendants from enforcing such
provisions.

By this opinion and order the Court has resolved plaintiffs’
claims that the Ohio statutes and administrative regulations at issue
are preempted by the FRSA. However, the Court has not addressed
plaintiffs’ claims that the statutes and administrative regulations are
preempted by the HMTA or that they violate the Commerce Clause
because they impose an undue burden on interstate commerce.
Nevertheless, the Court determines pursuant to Fed.R.Civ.P. 54(b)
that there is no just reason for delay in entering final judgment for
the plaintiffs granting the relief demanded in the complaint. In
making this determination the Court has considered the following
factors: The Court's findings on the issue of preemption under the
FRSA is completely dispositive of this action; a determination of the
remaining claims, particularly the claim that the Ohio statutes and
rules impose an undue burden on interstate commerce, will require
an evidentiary hearing and an extensive and complicated analysis
of the facts and law which will be unnecessary if the case can be
decided solely on the preemption issue; the claim of FRSA
preemption is entirely separate and distinct from the remaining
claims and there is no possibility that the reviewing court could be
required to consider the same issue a second time; the interests of
judicial economy will be served by an immediate appeal and the
parties may be spared the expense of litigating moot issues; finally,
both sides in this controversy, as well as the citizens of Ohio, have a
legitimate interest in a prompt determination of the important
issues presented by this case which may well be facilitated by an
immediate appeal.

Plaintiffs’ Motion For Partial Summary Judgment is granted.
Defendants’ Cross Motion For Partial Summary judgment is denied.
The Clerk shall enter final judgment in favor of the plaintiffs,

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permanently enjoining the defendants from enforcing Ohio
Rev.Code §§ 4905.83 and 4907.64 and Ohio Admin.Code §§
4901-2-7-1 through 4901:2-7-22 and 4901:3-1-10. :

It is so ORDERED.

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CSX TRANSPORTATION, INC., Consolidated Rail Corporation,
Norfolk and Western Railway Company, and Grand Trunk
Western Railroad Company, Plaintiffs-Appellees,

V.

The PUBLIC UTILITIES COMMISSION OF OHIO, and Thomas
V. Chema, Ashley C. Brown, Gloria Gaylord, Alan R. Schriber, _
and Lenworth Smith, Jr., in their respective capacities as
Chairman and Commissioners of the Public Utilities Commission
of Ohio, Defendants-Appellants.

No. 88-4185.

United States Court of Appeals,
Sixth Circuit.

Argued Aug. 17, 1989.
Decided April 13, 1990.

Before GUY, BOGGS, and NORRIS, Circuit Judges.
BOGGS, Circuit Judge.

Plaintiff railroads sought and received summary judgment for
declaratory and injunctive relief against defendants Public Utilities
Commission of Ohio, its Chairman, and its Commissioners, against
state regulation of hazardous materials transportation, claiming
that such regulation was preempted by the Federal Railroad Safety
Act, 45 U.S.C. § 421 et seq. 701 FSupp. 608. The defendants
appealed, and we now affirm.

I.

The Hazardous Materials Transportation Act (49 U.S.C.App.
§ 1801 et seq.) (HMTA) governs the intermodal regulation of
hazardous material transportation; the Secretary of Transportation
(Secretary) has authority to promulgate rules and regulations under
it. Under the HMTA, states can implement regulations governing
the transportation of hazardous material if such regulations are

A-18

consistent with federal provisions promulgated under the HMTA.
49 US.C.App. § 1811(b).

Pursuant to the HMTA, Ohio enacted the Ohio Hazardous
Materials Transportation Act (OHMTA) on September 26, 1988.
See Am.Sub.H.B. No. 428, 1988 Ohio Legislative Service at 5-820
(Baldwin). The OHMTA authorized the Public Utilities
Commission of Ohio (PUCO) to adopt and enforce as state
requirements the federal rules regulating the intermodal
transportation of hazardous materials; the statute provided in
relevant part that "[t]he rules adopted under this section shall be
consistent with, and equivalent in scope, coverage, and content to,
the provisions of the "Hazardous Materials Transportation Act’... ."
Ohio Rev.Code Ann. § 4907.64.

On September 27, 1988, CSX Transportation Incorporated,
Consolidated Rail Corporation, Norfolk & Western Railroad
Company, and Grand Trunk Western Railroad Company
(collectively, the Railroads) filed suit in the United States District
Court for the Southern District of Ohio, Eastern Division, against
the PUCO and its commissioners, Thomas V. Chema, Ashley C.
Brown, Gloria Gaylord, Alan R. Schriber, and Lenworth Smith, Jr.
(collectively, the PUCO). The Railroads operate in and through the
state of Ohio, and thus would be subject to the proposed
regulations.

The Railroads sought declaratory relief and temporary and
permanent injunctive relief against the enactment of the OHMTA
and its implementing administrative regulations on the ground that
they are preempted by the Federal Railroad Safety Act (FRSA) and
a burden of interstate commerce in violation of article I of the
United States Constitution. The FRSA, 45 U.S.C. § 421 et seq.,
regulates general railroad safety. The FRSA does not permit states
to promulgate laws relating to railroad safety over subject matter
on which the Secretary has already promulgated a rule. 45 U.S.C. §
434.

The PUCO informed the Railroads that the regulations
enacted pursuant to the OHMTA would not become enforceable
against railroads until December 10, 1988. In response to this
information, the Railroads withdrew their request for a preliminary
injunction and filed for partial summary judgment on the
preemption issue on October 26, 1988. The Railroads sought to
enjoin the PUCO permanently from enforcing the regulations; they

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also sought a declaration that the statutes and regulations were
subject to the FRSA preemption provision. The Railroads claimed
that the FRSA expressed the intent of Congress to preempt state
tules such as the challenged provisions of Ohio law.

On November 10, 1988, the PUCO filed a cross motion for
partial summary judgment on the preemption issue raised by the
Railroads. It contended that the FRSA preemption provision
applies only to matters of general railroad safety, and not to the
regulation of intermodal hazardous materials transportation, even
when applied to railroads. The PUCO contended that the HMTA
created a dual system of federal and state regulation, under which
states could govern transportation of hazardous materials, by rail
or otherwise, through laws consistent with their federal
counterparts. 49 U.S.C.App. § 1811. The Ohio laws, it asserted,
were within this sphere of state authority. It requested an order
from the District Court finding Ohio Revised Code sections 4905.83
and 4907.64 valid and enforceable.

The court held a hearing on November 30, 1988, and
concluded that the Ohio statutes in question constituted laws
_relating to "railroad safety" within the definition of the FRSA
preemption provision. 45 U.S.C. § 434. On December 12, 1988,
the district court granted the Railroads’ motion for partial summary
judgment and granted a premanent injunction. In particular, the
court held that the FRSA preempted sections 4905.83 and 4907.64 of
the Ohio Revised Code, and sections 4901:2-7-01 through
4901:2-7-22 and 4901:3-1-10 of the Ohio Administrative Code. The
PUCO now appeals from this grant of summary judgment.

II.

In 1966, Congress created the Department of Transportation
(DOT). See 49 U.S.C. §§ 1651-1660, as amended. The DOT
received the authority under several laws previously vested in a
number of government agencies and departments to regulate,
among other things, the transportation of hazardous materials. P.L.
89-670, 49 U.S.C. 1651 (1966). The authority to regulate under one
of these laws, the Explosives and Other Dangerous Articles Act,
was transferred from the Interstate Commerce Commission. 49
U.S.C. § 1655(e)(4).

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This authority to regulate, among other things, the
transportation of hazardous materials transferred to the Secretary
was delegated by statute to modal administrations (in this case, the
Federal Railroad Administration and the Federal Highway
Administration). The Federal Railroad Administration (FRA) had
authority to promulgate hazardous material transportation
regulations for railroads through its administration of the
Explosives Act. 49 U.S.C. § 1655(f)(3)(A) (1966), amended by 49
U.S.C. § 1655(f)(3)(A) (1974). The Federal Highway Administration
(FHA) had similar authority for motor carriers. 49 U.S.C. §
1655(f)(3)(B) (1966), amended by 49 U.S.C. § 1655(f)(3)(B) (1974). In
both cases, the Secretary had no power either to retain the authority
or transfer it to a modal administration other than the FRA (for
railroads) or FHA (for motor carriers). 49 U.S.C. § 1655(f)(3)
(1966), amended by 49 U.S.C. § 1655(f)(3) (1974).

In 1970, Congress passed an omnibus bill which enacted,
among other provisions, the Hazardous Materials Transportation
Control Act of 1970 (HMTCA) and the FRSA. Pub.L. 91-458, 84
Stat. 971. The HMTCA was Congress's first attempt at establishing
intermodal regulation of hazardous materials. The HMTCA
directed the Secretary to establish facilities within the federal
government; evaluate hazards surrounding the shipment of
hazardous materials; establish a central reporting system for those
hazards; and review all aspects of hazardous material
transportation to increase the control and safety of such
transportation. 49 U.S.C. § 1761 (repealed 1974).

The FRSA was enacted to govern railroad safety. The
declaration of purpose of the FRSA states:

The Congress declares that the purpose of [the FRSA]
is to promote safety in all areas of railroad operations
. .. and to reduce deaths and injuries to persons and
to reduce damages to property caused by accidents
involving any carrier of hazardous materials.

45 U.S.C. § 421. The FRSA allows states to retain some
enforcement powers in the area of railroad safety. In relevant part,
the preemption provision reads:

A State may adopt or continue in force any law, rule,
regulation, order, or standard relating to railroad
safety until such time as the Secretary has adopted a

rule, regulation, order, or standard covering the subject
matter of such State requirement.

45 U.S.C. § 434 (emphasis added). Thus, any state regulation over
an area covered by the FRSA (whether consistent or not) is
preempted. This preemption provision was debated vigorously in
Congress prior to passage. The House Report accompanying the
FRSA stated that some of the covered "railroad safety" laws ". . . are
set forth in detail in appendix B of this report." H.R. Rep. No. 1194,
9ist Cong., 2d Sess., reprinted in 1970 U.S. CODE CONG. &
ADMIN. NEWS 4104, 4105. Appendix B lists, among other laws,
the Explosives Act. |

With the passage of another omnibus bill in 1974, true
intermodal regulation of the transportation of hazardous materials
came into being. Pub.L. No. 93-633, 88 Stat. 2156. This bill enacted
the HMTA and amended the DOT enabling act. It also created an
independent safety board to oversee the functions and performance
of each of the modal administrations within the Department of
Transportation. 49 U.S.C.App. §§ 1901-1902.

The HMTA amended the DOT enabling act to prohibit the
Secretary from delegating the functions, powers, and duties to
administer the Explosives Act to the FRA or the FHA. Pub.L.
93-633, § 113(e)(1), (2). The amended provision read in relevant
part for the FRA:

The Federal Railroad Administrator shall carry out the
functions, powers, and duties of the Secretary
pertaining to railroad safety as set forth in the statutes
transferred to the Secretary by subsection (e) of this
section (other than [the Explosives and Other
Dangerous Articles Act)).

49 U.S.C. § 1655(f)(3)(A). Thus, the regulation of the
transportation of hazardous materials moved from a modal to an
intermodal basis.

The preemption provision of the HMTA differs from that of
the FRSA. The HMTA provides that:

... any requirement of a State or political subdivision
thereof, which is inconsistent with any requirement set
forth in [the HMTA], or in a reguiation issued under
[the HMTA], is preempted.

49 U.S.C. § 1811(a). Thus, unlike the preemption provision of the

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FRSA, which forbids state regulation on subject matter on which
the Secretary has already adopted a regulation, the HMTA allows
state regulations which are consistent with federal regulations.

In 1980, Congress amended the FRSA. Pub.L. No. 96-423, 94
Stat. 1811 (amending 45 U.S.C. §§ 431-433). Congress amended
Section 425 of the FRSA to allow greater (but still limited) state
participation in investigative and surveillance activities relating to
railroad safety. 45 U.S.C. § 435(g). The HMTA was not listed as
one of these laws. In regard to this omission, the House Report
stated that, “[s]ince the [HMTA] is not directed specifically and
solely at railroad safety, that Act is not within the scope of the
amendment." H.R. Rep.“No. 1025, 96th Cong., 2d Sess. 13,
reprinted in 1980 U.S. CODE CONG. & ADMIN.NEWS 3830,
3837-38.

Il.

The question before us is simply this: should a train carrying
a load of hazardous waste be considered a railroad which happens
to be carrying hazardous waste (thus suggesting application of the
FRSA preemption provision) or hazardous waste which happens to
be carried by rail (thus suggesting application of the HMTA
preemption provision)? The Committee report to the 1974 Act
states:

The intent of the Committee in these provisions [the
HMTA] is to consolidate in the Department of
Transportation the [sic] certain basic functions with
respect to regulated hazardous materials, while the
enforcement of the regulations pertaining to the
shippers and carriers of hazardous materials remains
delegated to the particular Administration within
DOT having jurisdiction over the mode by which such
materials move.

H.R.Rep. No. 1083, 93d Cong., 2d Sess., 1974 U.S. CODE CONG. &
ADMIN.NEWS 7669, 7681. We find it clear from this language, and
the legislative history behind it, that the purpose of the HMTA was
to consolidate regulation of hazardous material transportation at
the Secretarial level, and not to remove such regulation of
hazardous material transportation by rail from the preemption
provision of the FRSA.

A-23

Although we credit the PUCO's compelling argument that the
creation of the HMTA in 1974 removed promulgation (though not
enforcement) of regulations under the Explosives Act from the
FRA, we do not believe that such removal changes the fact that
FRSA preemption relates to all rules and regulations regarding
railroad safety promulgated by the Secretary, whether or not such
regulations are promulgated by the FRA through power delegated
by the Secretary. See 45 U.S.C. § 434. Clearly, the HMTA is a law
relating to railroad safety, even if regulations pursuant to it are
promulgated by the Secretary directly, not by the FRA.

We further find the PUCO's argument concerning removal of
regulatory authority from the FRA by the HMTA unpertsuasive in
light of the plain and much-discussed preemption provision of the
FRSA. See, generally, Hearings Before the Subcommittee on
Transportation and Aeronautics of the Committee on Interstate and
Foreign Commerce, 91st Cong., 2d Sess. (1970). Repeal or
amendment of this preemption provision as it related to the
transportation of hazardous materials was not discussed during the
passage of the HMTA. In giving the Secretary authority to
promulgate regulations involving the intermodal transportation of
hazardous materials under HMTA, we do not believe that Congress
concurrently repealed the broad historic federal preemption of state
railroad regulation. See National Association of Regulatory
Commissioners v. Coleman, 542 F.2d 11 (3rd Cir.1976).

We find that the language of the FRSA, “any law .. . relating
to railroad safety," 45 U.S.C. § 434, applies to the HMTA as it
relates to the transportation of hazatdous material by rail. The
plain meaning of a statute must be given great weight. Watt v.
Alaska, 451 US. 259, 265-66, 101 S.Ct. 1673, 1677-78, 68 L.Ed.2d 80
(1981). We further note that Congress examined the problems of
hazardous material transportation by rail within the context of a
more general discussion of railroad safety. H.R.Rep. No. 1194, 91st
Cong., 2d Sess., reprinted in 1970 U.S. CODE CONG. &
ADMIN.NEWS 414, 4107.

To find that a later statute has repealed an earlier one, we
have required th

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385020_1835%3A1. Public record. Not legal advice.
