D & H Corp. v. Pennsylvania Public Utility Commission

613 A.2d 622, 149 Pa. Commw. 507, 1992 Pa. Commw. LEXIS 524
CourtCommonwealth Court of Pennsylvania
DecidedAugust 4, 1992
DocketNo. 2495 C.D. 1991
StatusPublished
Cited by4 cases

This text of 613 A.2d 622 (D & H Corp. v. Pennsylvania Public Utility Commission) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D & H Corp. v. Pennsylvania Public Utility Commission, 613 A.2d 622, 149 Pa. Commw. 507, 1992 Pa. Commw. LEXIS 524 (Pa. Ct. App. 1992).

Opinion

NARICK, Senior Judge.

In this case of first impression, this Court must determine whether the Pennsylvania Public Utility Commission (PUC) has the authority to order D & H Corporation (D & H) to pay 50% of future maintenance costs of a highway bridge which [510]*510crosses over certain of D & H’s rail lines in Luzerne County (crossing).

On May 9, 1984, the Department of Transportation (DOT) filed a petition with the PUC, seeking approval for the reconstruction of a crossing, carrying Pennsylvania Legislative Route 5 over railroad tracks owned by D & H and Consolidated Rail Corporation (Conrail). After a field meeting, DOT agreed to do all work at its initial cost and expense.

The PUC, having received no objection to DOT’s plan for reconstruction, entered an order, approving DOT’s application and submitted plans. The order also directed Conrail and D & H to provide watchmen, flagmen, inspectors and engineering services for protection of their respective operations and facilities during the reconstruction. The order also stated that a hearing would be held in the future to allocate the cost of the project and assign future maintenance responsibility for the rebuilt structure once DOT completed the rehabilitation work. (4a-7a.)

After DOT completed the project, the PUC’s administrative law judge (ALJ) held the hearing to allocate cost, pursuant to the PUC’s authority under Section 2704(a) of the Public Utility Code, 66 Pa.C.S. § 2704(a).1 The hearing consisted of testimony of witnesses for DOT, Conrail and D & H, concerning various factors which the ALJ would consider in determining the costs and future maintenance. DOT also introduced testimony concerning a contract it entered into with Conrail, wherein Conrail would make a financial contribution to DOT in the amount of $25,800.2 In exchange, DOT would “bear all costs incurred by [Conrail] for completion of the project as [511]*511detailed in Exhibit 1.” (23a.)3 However, DOT’S witness also testified that Conrail’s contribution would also effectively transfer any liability Conrail would have for future maintenance to DOT. DOT’s expert also testified that D & H should be held liable to pay for 50% of the maintenance costs for the crossing in keeping with the previous Public Service Commission’s (PUC’s predecessor) order of 1927.4

On August 9, 1991, the ALJ issued a recommended decision which ordered, inter alia, that Conrail pay $25,800 to DOT, as previously contracted; directed DOT bear the cost of maintaining the structure; and, directed D & H reimburse DOT 50% of maintaining the structure, exclusive of the roadway paving on the bridge.

D & H filed exceptions to the ALJ’s recommended order, opposing that portion of the order which directed it to reimburse DOT for 50% of maintenance costs. However, the PUC adopted the ALJ’s recommended order.

On appeal,5 D & H argues that 49 C.F.R. § 646.210 precludes the PUC from allocating future maintenance costs to D & H because the crossing is a “federal aid project.” D & H also argues that the PUC’s allocation of future maintenance costs to D & H is not fair or reasonable.

I. PREEMPTION

D & H argues that the PUC committed an error of law in assigning any future maintenance responsibilities to D & H [512]*512because the crossing is a “federal aid project.” 23 C.F.R. § 646.210(a) provides:

(a) State laws requiring railroads to share in the costs of work for the elimination of hazards at railroad — highway-crossings shall not apply to federal aid projects.

(Emphasis added.)

In the ALJ’s recommended decision, he found that federal funds were used for some initial construction costs of the project (Finding of Fact 5). Because the federal aid status of a project is not final until DOT vouchers the federal government and because the ALJ found that at the time of the hearing, DOT had not issued a final voucher to the federal government, the referee did not find the crossing to be a federal aid project. (Finding of Fact 15). The PUC adopted these findings, along with the remainder of the ALJ’s recommended decision.

D & H argues that this case is controlled by Consolidated Rail Corp. v. Pennsylvania Public Utility Commission, 125 Pa.Commonwealth Ct. 334, 557 A.2d 832 (1989), and therefore, the PUC’s ruling was preempted by federal law. However, without a finding that the crossing is a federal aid project, Consolidated Rail does not control.

Consolidated Rail held that 23 C.F.R. § 646.2106 preempted the PUC’s authority to allocate construction costs at rail-highway crossings. We reasoned that the regulation expresses the federal government’s intent to preempt state laws , in [513]*513this specific type of federal aid project and, therefore, we reversed the PUC’s allocation of construction costs to Conrail.

In Consolidated Rail, there was no dispute that the project in question involved a federal aid project because DOT had issued the final voucher to the federal government, thus, allowing us to consider the preemptive effect of 23 C.F.R. § 646.210. Because the ALJ did not find a federal aid project here and because no substantial evidence supports such a finding, we cannot consider the preemptive effect of 23 C.F.R. § 646.210.7

Even if the ALJ and the PUC had found that the crossing to be a federal aid project, the PUC would not have been preempted by 23 C.F.R. § 646.210 because this provision does not specifically preempt maintenance responsibility in federal aid rail-highway crossing projects.

While D & L urges us to expand the construction preemption of Consolidated Rail to future maintenance, we are unable to do so. Congressional intent to preempt can be either expressly stated in a statute or implied from its construction or purpose. F.M.C. Corp. v. Holliday, 498 U.S. 52, 111 S.Ct. 403, 112 L.Ed.2d 356 (1990). Absent an express statement, preemptive intent may be implied. However, such intent cannot be lightly inferred. United States v. City of Philadelphia, 798 F.2d 81 (3rd Cir.1986). Preemption may be inferred when the language of the statute or regulation evidences congressional intent to occupy the field, Kolbeck v.

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Bluebook (online)
613 A.2d 622, 149 Pa. Commw. 507, 1992 Pa. Commw. LEXIS 524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-h-corp-v-pennsylvania-public-utility-commission-pacommwct-1992.