National Railroad Passenger Corp. v. Pennsylvania Public Utility Commission

342 F.3d 242
CourtCourt of Appeals for the Third Circuit
DecidedAugust 27, 2003
DocketNo. 02-30477, 02-3148
StatusPublished
Cited by3 cases

This text of 342 F.3d 242 (National Railroad Passenger Corp. v. Pennsylvania Public Utility Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Railroad Passenger Corp. v. Pennsylvania Public Utility Commission, 342 F.3d 242 (3d Cir. 2003).

Opinion

OPINION OF THE COURT

SLOVITER, Circuit Judge.

This case is one in a long line of disputes between on one side the Pennsylvania Public Utility Commission (“PUC”) and on the other side the National Railroad Passenger Corporation (“Amtrak”), and/or in a separate but related dispute the Southeastern Pennsylvania Transportation Authority (“SEPTA”), concerning the PUC’s assignment of costs and responsibilities for maintaining and repairing rail-highway crossings in Pennsylvania. The PUC appeals 1 from the District Court’s order which: (1) denied the motions of the PUC and PUC Commissioner Aaron Wilson, Jr., to dismiss Amtrak’s complaint; (2) granted SEPTA’s motion to enforce the Consent Decree it previously entered into with the PUC in federal court; and (3) granted in part and denied in part Amtrak’s motion for preliminary and other injunctive relief and its renewed motion for declaratory judgment and preliminary injunctive relief. SEPTA v. Pa. PUC, 210 F.Supp.2d 689, 729-30 (E.D.Pa.2002) (“SEPTA”). We will affirm.

I.

FACTS AND PROCEDURAL BACKGROUND

The PUC is a state commission with a mandate to determine “the manner and conditions in or under which [railroad crossings] shall be maintained, operated, and protected to effectuate the prevention of accidents and the promotion of the safety of the public.” 66 Pa. Cons.Stat. Ann. § 2702(b). As part of its duties, the PUC has responsibility for allocating the maintenance costs for railroad crossings in Pennsylvania among the parties having an interest in the particular crossing. 66 Pa. Cons.Stat. Ann. § 2704. This dispute centers on the PUC’s assignment of the costs for maintenance and repair of the Lloyd [247]*247Street Bridge, in Chester, PA, although the ramifications are wider.

A.

History of Litigation Between the PUC, Amtrak, and SEPTA

Both Amtrak and SEPTA have been involved in a recurring legal battle with the PUC concerning its attempt to assess them a portion of the maintenance costs for railroad crossings. The dispute arises from their differing interpretations of Amtrak’s exemption from state and local taxes and fees contained in the Rail Passenger Service Act (“RPSA”), which provides:

(l) Exemption from taxes levied after September 30,1981. — (1) In generals — Amtrak, a rail carrier subsidiary of Amtrak, and any passenger or other customer of Amtrak or such subsidiary, are exempt from a tax, fee, head charge, or other charge, imposed or levied by a State, political subdivision, or local taxing authority on Amtrak ... after September 30, 1981. In the case of a tax or fee that Amtrak was required to pay as of September 10, 1982, Amtrak is not exempt from such tax or fee if it was assessed before April 1,1997.

49 U.S.C. § 24301(i)(l) (2003).

The statutory history and legislative purpose behind enactment of the RPSA were discussed in some detail by the Supreme Court in Nat’l R.R. Passenger Corp. v. Atchison, Topeka & Santa Fe Railway Co., 470 U.S. 451, 453-55, 105 S.Ct. 1441, 84 L.Ed.2d 432 (1985). In that opinion, the Court noted that Congress passed the RPSA in 1970 as a response to the significant decline in the number of operating rail passenger trains and the “tremendous operating losses” suffered by those passenger services still in operation. Id. at 454, 105 S.Ct. 1441. The RPSA was Congress’ effort to revive the passenger train industry by reorganizing and restructuring the rail passenger system. Id. As part of the RPSA, Congress created Amtrak and provided private railroads the opportunity to transfer their passenger-service obligations to Amtrak, which Congress had established for that purpose. Id. at 454-55, 105 S.Ct. 1441. All but five private railroads offering intercity passenger service contracted with Amtrak to transfer their obligations. Id. at 456, 105 S.Ct. 1441.

We explained in Nat’l R.R. Passenger Corp. v. Pa. PUC, 848 F.2d 436, 438 (3d Cir.), cert. denied, 488 U.S. 893, 109 S.Ct. 231, 102 L.Ed.2d 220 (1988) (“Amtrak II”), that despite federal subsidies, Congress recognized that Amtrak suffered losses in its first decade, and its financial situation was bleak. In a 1980 report, the Department of Transportation estimated that state and local taxes would cost Amtrak more than $14 million in 1981. S.Rep. No. 253, 97th Cong., 1st Sess. 103 (1981). The Senate Appropriations Committee noted that “[i]t is generally recognized that State and local taxes on a primarily Federal investment are inappropriate,” and that “such taxation serves to erode the revenue-to-cost ratios which impact on whether States and localities continue to receive the benefits of Amtrak service.” Id. Based on this reasoning, Congress deferred for one year Amtrak’s payment of any state or local taxes. Pub.L. No. 97-102, 95 Stat. 1442, 1451 (1981).

The following year, Congress revisited the matter and “converted Amtrak’s temporary exemption into a continuing one.” Amtrak II, 848 F.2d at 438. A Senate Committee Report concluded that “[a]t a time when local jurisdictions are demanding that nationwide rail passenger service be maintained, it seems reasonable to provide for a ‘user contribution’ whereby [248]*248those areas receiving the service in turn contribute to Amtrak’s continued existence through tax relief.” S.Rep. No. 516, 97th Cong., 2d Sess. 170 (1982). The statutory exemption from state and local taxes and fees was codified at 45 U.S.C. § 546b, which has since been recodified at 49 U.S.C. § 24301(Z)(1).2

Based on this statutory exemption, Amtrak and SEPTA have repeatedly contested the PUC’s attempts to assess them for maintenance costs for crossings. E.g., Nat’l R.R. Passenger Corp. v. Pa. PUC, 665 F.Supp. 402 (E.D.Pa.1987) (“Amtrak I”), aff'd., Amtrak II, 848 F.2d 436 (3d Cir.), cert. denied, 488 U.S. 893, 109 S.Ct. 231, 102 L.Ed.2d 220 (1988); Nat’l R.R. Passenger Corp. v. Pa. PUC, 1991 WL 998 (E.D.Pa. Jan.2, 1991) (“Amtrak III”); Nat’l R.R. Passenger Corp. v. Pa. PUC, 1997 WL 587278 (E.D.Pa. Sept.10, 1997) (“Amtrak IV”); Nat’l R.R. Passenger Corp. v. Pa. PUC, 1997 WL 597963 (E.D.Pa. Sept.15, 1997) (“Amtrak V”); Nat’l R.R. Passenger Corp. v. Pa. PUC, 1998 WL 103377 (E.D.Pa. Feb.23, 1998) (“Amtrak VI”); SEPTA v. Pa. PUC, 140 Pa.Cmwlth. 270, 592 A.2d 797 (1991), alloc. denied, 531 Pa. 642, 611 A.2d 714 (Pa.1992) (“SEPTA I”); SEPTA v. Pa. PUC, 140 Pa.Cmwlth. 292, 592 A.2d 808 (1991), alloc. denied, 531 Pa. 642, 611 A.2d 714 (1992) (“SEPTA II”); SEPTA v. Pa. PUC, 802 F.Supp. 1273 (E.D.Pa.1992) (“SEPTA III”); SEPTA v. Pa. PUC, 826 F.Supp. 1506 (E.D.Pa.1993) (“SEPTA IV”); SEPTA v. Pa.

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342 F.3d 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-railroad-passenger-corp-v-pennsylvania-public-utility-commission-ca3-2003.