Commonwealth of Massachusetts v. United States Department of Transportation

93 F.3d 890, 320 U.S. App. D.C. 227, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21652, 43 ERC (BNA) 1231, 1996 U.S. App. LEXIS 21973, 1996 WL 480425
Court of Appeals for the D.C. Circuit·Decided August 27, 1996·No. 95-5175·Published·Cited by 40 cases

Opinions

Opinion for the Court filed by Circuit Judge SENTELLE.

Concurring opinion filed by Circuit Judge ROGERS.

SENTELLE, Circuit Judge:

The Commonwealth of Massachusetts (“Commonwealth” or “Massachusetts”) appeals a District Court’s dismissal of its action seeking judicial review of a declaration by the Department of Transportation (“DOT”) that a Massachusetts licensing requirement was preempted by the Hazardous Materials Transportation Act (“HMTA”). DOT had found the state licensing rule, which required hazardous-waste carriers to post at least a $10,000 bond before they might pick up or drop off hazardous waste in the Commonwealth, preempted according to its reading of HMTA’s general preemption provision codified at 49 U.S.C. § 5125(a)(2). The District Court accepted DOT’s reasoning that the requirement was preempted because it ran contrary to HMTA’s goal of more uniform hazardous-waste regulation.

We disagree. Even if we accord DOT’s interpretation of HMTA’s preemption provision Chevron deference, we cannot conclude that any permissible reading of HMTA authorizes preemption of the Commonwealth’s requirement. We thus reverse the District Court.

BACKGROUND

In 1975, Congress enacted the Hazardous Materials Transportation Act in an effort to develop a national regulatory scheme for the transportation of hazardous substances. See New Hampshire Motor Transp. Ass’n v. Flynn, 751 F.2d 43, 46 (1st Cir.1984). Although HMTA as further amended in 1990 and as restructured in 1994, established some uniform standards in the interstate transportation of hazardous materials, the Act does not, by its terms, exclude all state participation in the regulation of hazardous waste being carried within that state’s borders. 49 U.S.C. §§ 5101-5127; see also New Hampshire Motor Transp. Ass’n, 751 F.2d at 46 (noting that HMTA’s original preemption provision did not uniformly “forbid states to regulate”). Instead, HMTA as now written, has two separate provisions that suggest the role the states may play in promulgating and enforcing their own hazardous-waste regulations.

In one, 49 U.S.C. § 5119, the statute prescribes a “working group of State and local government officials” to help the Secretary of Transportation (“Secretary”) devise “uniform forms and procedures” by which all states will “register persons that transport ... hazardous material by motor vehicle in the State” and “allow the transportation of hazardous material in the State.” Id. § 5119(a). That section then orders the Secretary to “prescribe regulations to carry out the recommendations contained in the report submitted” by the working group. Id. § 5119(c)(1). None of these § 5119 regulations, however, may take effect until “at least 26 States adopt all of the recommendations of the report.” Id. Once such a state-endorsed, but federally promulgated, regulation takes effect, HMTA allows an individual state to “establish, maintain, or enforce [its own] requirement related to the same subject matter only if the requirement is the same as the [Secretary’s] regulation.” Id. § 5119(c)(2) (emphasis added).

The second provision of HMTA that explicitly addresses preemption has a less clear scope. That section, 49 U.S.C. § 5125, generally preempts any state or local requirement that makes simultaneous compliance [892] with HMTA and the state’s regulation “not possible;” id. § 5125(a)(1); or “as applied or enforced, is an obstacle to accomplishing and carrying out this chapter or a regulation prescribed under this chapter.” Id. § 5125(a)(2). The section also addresses a number of other preemption issues, including specific types of state regulation that are automatically preempted if they are not “substantively the same” as the corresponding federal requirements, id. § 5125(b), preemption waivers, id. § 5125(e), and judicial review of preemption decisions by the Secretary, id. § 5125(f). Neither this nor any other section of HMTA, however, explicitly addresses whether and how a state may require a waste transporter to post a bond against which the state may withdraw the amount of any fines incurred by the transporter for proven violations of the state’s waste-transport rules. Likewise, DOT has not promulgated regulations as to the extent or manner of such state bonding requirements.

In the absence of federal action in this area of bonding requirements, a number of states, including Massachusetts, promulgated their own rules. Massachusetts established a bonding requirement that applies only, to transporters of hazardous wastes who wish to pick up waste from or drop off waste at a location in Massachusetts. See 310 CMR 30.401(4). The regulation requires that a waste transporter, before it may obtain a license allowing such collection or disposal, must submit a bond of at least $10,000 in order to “assure that [it] shall faithfully perform all of the requirements” of its license and of the laws and regulations of Massachusetts. 310 CMR 30.411(3). If, at some later time, the transporter does not promptly remedy some established violation of Massachusetts’s rules, the Commonwealth may seize part or all of the bond as payment of an appropriate civil penalty. See id. 30.411(8). Because this bond provides a surety only for the Commonwealth, and is not a general fund against which other parties may seek indemnity for their claims against the transporter, the bonding requirement is distinct from other forms of liability insurance requirements, which Massachusetts governs through a separate regulation. See 310 CMR 30.410.

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Commonwealth of Massachusetts v. United States Department of Transportation, 93 F.3d 890, 320 U.S. App. D.C. 227, 26 Envtl. L. Rep. (Envtl. Law Inst.) 21652, 43 ERC (BNA) 1231, 1996 U.S. App. LEXIS 21973, 1996 WL 480425 (D.C. Cir. 1996).

93 F.3d 890 (Commonwealth of Massachusetts v. United States Department of Transportation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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