Appeals Court Allows FRA to Set On-Time Standards

The struggle to create on-time standards for Amtrak took another turn on Friday when the U.S. Court of Appeals for the District of Columbia voted 2-1 in favor of allowing the Federal Railroad Administration to set those standards.

The decision followed earlier setbacks including one in which the Eighth U.S. Circuit Court of Appeals said the Surface Transportation Board had exceeded its authority in seeking to set on-time standards.

The legal fight dates to 2011 when the Association of American Railroads commenced legal action to overturn a federal law that allowed Amtrak to participate in the rule-making process.

In a statement, Amtrak hailed the decision of the District of Columbia Court, saying that since the on-time standards law was overturned the passenger carrier has seen continued deterioration of on-time performance over freight railroads driven primarily by freight train interference.

“This decision will allow the FRA to set on-time and other performance standards that would help ensure that our customers and the American taxpayer get the high-quality passenger service they deserve,” Amtrak said in the statement.

The latest decision is not necessarily the last word in the fight. AAR could seek a rehearing by the full appeals court or appeal the decision to the U.S. Supreme Court.

Supreme Court Won’t Take On-Time Case

The U.S. Supreme Court has rejected a request by Amtrak to review a lower court decision that found the Surface Transportation Board cannot assume regulatory authority that is granted to Congress.

The high court’s decision means that a last effort by the federal government to revive the delegated authority will be decided by the U.S. District Court for the District of Columbia.

In a July 2017 decision, the Eighth Circuit Court of Appeals decided that the STB lacked the authority to establish regulatory standards for “on-time performance” in exercising its power to require freight railroads to give “preference” to Amtrak trains. See, Union Pacific Railroad Co. v. Surface Transportation Board, 863 F.3d 816 (8th Cir. 2017).

The Union Pacific case was one of two in which courts considered challenges to a portion of the Passenger Rail Investment and Improvement Act of 2008.

That law delegated to the Federal Railroad Administration and Amtrak the joint power to establish metrics and standards to define “on-time performance,” and gave the STB power to penalize railroads that fail to meet the standards.

The other case was Association of American Railroads vs. U.S. Department of Transportation.

In the latter case, the railroad trade organization challenged the joint FRA/Amtrak authority as an unconstitutional delegation of governmental power to Amtrak because it is a for profit entity.

The appellate court in that case sided with the AAR, ruling that the law constituted a violation of the Fifth Amendment’s due process clause to give Amtrak, “an economically self-interested actor,” the power to regulate its competitors.

Following that decision, the STB sought to establish the on-time standards itself, which led to the Union Pacific case.

The district court in Washington has set oral arguments for March 5 in what remains of the AAR case.

During that hearing, the federal government and Amtrak will be seeking to have the court reinstate the joint rule-making authority of the FRA and Amtrak by narrowing the court’s previous decision and striking down only a portion of the offending PRIIA provision.