Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission

CourtDepartment of Justice Office of Legal Counsel
DecidedFebruary 13, 2020
StatusPublished

This text of Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission (Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission) is published on Counsel Stack Legal Research, covering Department of Justice Office of Legal Counsel primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission, (olc 2020).

Opinion

(Slip Opinion)

Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission New Jersey’s proposed diversion of a portion of its annual payment to Amtrak to a bridge project subject to the authority of the Gateway Development Commission, an interstate entity established by New York and New Jersey, would violate section 410 of the Amtrak Reform and Accountability Act of 1997, which prohibits States from carrying out an interstate compact by using state or federal funds made available for Amtrak.

February 13, 2020

MEMORANDUM OPINION FOR THE GENERAL COUNSEL DEPARTMENT OF TRANSPORTATION

You have asked whether the interstate compact provision in the Amtrak Reform and Accountability Act of 1997, Pub. L. No. 105-134, § 410, 111 Stat. 2570, 2587–88 (“Amtrak Reform Act”), would prohibit New Jersey from diverting a portion of its annual payment to Amtrak to a bridge project subject to the authority of the Gateway Development Commission (“GDC” or “Commission”), which is an entity established by New York and New Jersey. This memorandum memorializes our prior conclusion that the proposed redirection of funds would have violated the terms of the Amtrak Reform Act. Section 410 of the Act prohibits States from carrying out an interstate compact by using state or federal funds made available for Amtrak. We concluded that the two States entered into an interstate compact to form the GDC and that the proposed diversion was therefore subject to the limitations of the Amtrak Reform Act. New York and New Jersey created the GDC by passing reciprocal leg- islation last year. See Gateway Development Commission Act, 2019 N.J. Sess. Law Serv. ch. 195 (West) (July 22, 2019) (“N.J. Act”); Gateway Development Commission Act, 2019 N.Y. Sess. Laws ch. 108 (McKin- ney’s) (July 22, 2019) (“N.Y. Act”). The States established the GDC to “facilitate” the expansion and renovation of rail lines in the Northeast Corridor (“NEC”), the rail system running from the District of Columbia through Massachusetts. See N.J. Act §§ 2, 4(a); N.Y. Act § 2, ¶ 1; 49 U.S.C. § 24905(a), (c)(1). In so doing, the States empowered the GDC to exert control over the use of funds committed to projects it is authorized

1 Opinions of the Office of Legal Counsel in Volume 44

to facilitate.1 See N.J. Act § 4; N.Y. Act § 3. Each State conditioned its legislation on the other State’s enactment of legislation with “identical effect.” See N.J. Act § 30(a); N.Y. Act § 10(a). Both laws further provid- ed that each State must receive the “concurre[nce]” of the other State to amend or repeal its laws. N.J. Act § 25; N.Y. Act § 8. Under the terms of that legislation, each State has three representatives on the Commission; Amtrak also holds one seat. In 2019, New Jersey Transit (“NJT”), the State’s public transportation agency, requested a variance that would have allowed it to meet its finan- cial obligations to an NEC bridge project subject to the GDC’s authority by diverting a portion of the annual baseline capital charge payments that NJT otherwise would have owed to Amtrak. 2 See Letter for Steven A. Engel, Assistant Attorney General, Office of Legal Counsel, from Steven G. Bradbury, General Counsel, U.S. Department of Transportation at 1 (Oct. 1, 2019) (“Bradbury Letter”). The variance would have required the approval of the Northeast Corridor Commission (“NEC Commission”), see id., which is a federal-state body established by Congress to promote rail planning and cooperation across the NEC, see 49 U.S.C. § 24905. The NEC Commission has adopted a Cost Allocation Policy, which per- mits rail owners and operators to request variances from the Commis- sion’s requirements for their baseline capital charges. See Northeast Corridor Commuter and Intercity Rail Cost Allocation Policy § 5.5.2.1–.2 (as amended June 19, 2019) (“Cost Allocation Policy”); see also id. § 1 (describing the Passenger Rail Investment and Improvement Act of 2008’s direction to the NEC Commission “to create a cost-sharing ar- rangement for NEC infrastructure”). Members representing the Depart- ment of Transportation, “including the Office of the Secretary, the Federal Railroad Administration, and the Federal Transit Administration,” serve

1 The state laws define “facilitate” to mean “the planning, designing, financing, acqui- sition, development, redevelopment, expansion, construction, reconstruction, replacement, approval of works, lease, leaseback, licensing, consigning, asset management, optimiza- tion, rehabilitation, repair, alteration, improvement, extension, management, ownership, use and effectuation of the matters described in [each of the acts].” N.J. Act § 3; N.Y. Act § 2, ¶ 2(e). 2 As part of phase one of the “passenger rail transportation project between Penn Sta-

tion, Newark, New Jersey and Penn Station, New York, New York,” referred to as the “Gateway Program,” the bridge project is a component of the “Project” subject to the GDC’s authority under the legislation enacted by the States. See N.J. Act § 3; N.Y. Act § 2, ¶ 2(h)(i).

2 Applicability of Section 410 of the Amtrak Reform and Accountability Act

on the NEC Commission, 49 U.S.C. § 24905(a)(1)(B), and thus were charged with considering whether the requested variance was permissible. In the Amtrak Reform Act, Congress “grant[ed] consent to States with an interest in . . . intercity passenger rail service . . . to enter into interstate compacts to promote the provision of the service,” including by retaining existing services, commencing new services, and performing capital improvements. Amtrak Reform Act § 410(a) (codified at 49 U.S.C. § 24101 note). While authorizing the compacts to facilitate the use of certain federal and state funds for intercity passenger rail service, Con- gress imposed a restriction to protect funding for Amtrak. Under the terms of the statute, “[a]n interstate compact established by States under sub– section (a) may provide that, in order to carry out the compact, the States may . . . use any Federal or State funds made available for intercity passenger rail service (except funds made available for Amtrak).” Id. § 410(b)(2) (emphasis added). The question therefore was whether the GDC was created by an “interstate compact,” and if so, whether NJT’s proposed variance would have diverted “funds made available for Amtrak” to carry out a rail service project subject to the GDC’s authority. The Amtrak Reform Act does not define the phrase “interstate com- pact,” but the term “compact” has significance under the Compact Clause of the Constitution, which provides that “[n]o State shall, without the Consent of Congress, . . . enter into any Agreement or Compact with another State.” U.S. Const. art. I, § 10, cl. 3. Where a statute employs a term with “a well-known meaning . . . in the law of this country,” we presume that Congress used the words “in that sense unless the context compels to the contrary.” Standard Oil Co. of N.J. v. United States, 221 U.S. 1, 59 (1911); see also U.S. Steel Corp. v. Multistate Tax Comm’n, 434 U.S. 452

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Mouat
124 U.S. 303 (Supreme Court, 1888)
United States v. Smith
124 U.S. 525 (Supreme Court, 1888)
Virginia v. Tennessee
148 U.S. 503 (Supreme Court, 1893)
Wharton v. Wise
153 U.S. 155 (Supreme Court, 1894)
Steele v. United States No. 2
267 U.S. 505 (Supreme Court, 1925)
New York v. O'NEILL
359 U.S. 1 (Supreme Court, 1959)
Cuyler v. Adams
449 U.S. 433 (Supreme Court, 1981)
Neder v. United States
527 U.S. 1 (Supreme Court, 1999)
Tex. Educ. Agency v. U.S. Dep't of Educ.
908 F.3d 127 (Fifth Circuit, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Applicability of Section 410 of the Amtrak Reform and Accountability Act of 1997 to the Gateway Development Commission, Counsel Stack Legal Research, https://law.counselstack.com/opinion/applicability-of-section-410-of-the-amtrak-reform-and-accountability-act-of-olc-2020.