Dep’t of Transp. v. Ass’n of Am. Railroads

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The National Railroad Passenger Corporation (Amtrak) has priority to use track systems owned by the freight railroads for passenger rail travel, at agreed rates or rates set by the Surface Transportation Board. In 2008, Congress gave Amtrak and the Federal Railroad Administration (FRA) joint authority to issue “metrics and standards” addressing performance and scheduling of passenger railroad services, 122 Stat. 4907, including Amtrak’s on-time performance and delays caused by host railroads. The Association of American Railroads sued. The District of Columbia Circuit accepted a separation of powers claim, reasoning that Amtrak is a private corporation and cannot constitutionally be granted regulatory power. The Supreme Court vacated. For purposes of determining the validity of the standards, Amtrak is a governmental entity. The D.C. Circuit relied on the statutory command that Amtrak “is not a department, agency, or instrumentality of the United States,” 49 U.S.C. 24301(a)(3), and “shall be operated and managed as a for profit corporation,” but independent inquiry reveals that the political branches control most of Amtrak’s stock and its Board of Directors, most of whom are appointed by the President. The political branches exercise substantial, statutorily mandated supervision over Amtrak’s priorities and operations: Amtrak is required to pursue broad public objectives; certain day-to-day operations are mandated by Congress; and Amtrak has been dependent on federal financial support during every year of its existence. Amtrak is not an autonomous private enterprise and, in jointly issuing the metrics and standards with the FRA, Amtrak acted as a governmental entity for separation of powers purposes. Treating Amtrak as governmental for these purposes is not an unbridled grant of authority to an unaccountable actor. On remand, the court may address any remaining issues respecting the lawfulness of the metrics and standards. View "Dep't of Transp. v. Ass'n of Am. Railroads" on Justia Law