New York & Atlantic Railway Co. v. Surface Transportation Board
635 F.3d 66
2d Cir.2011Background
- NYAR and Coastal operate a transload facility at the Farmingdale Yard in Babylon under a freight contract with LIRR-derived operations.
- Farmingdale Yard sits on two parcels leased by Pinelawn Cemetery since 1904–1905; leases allow long-term use by the railroad.
- Town of Babylon zoning bans waste transfer facilities except in a remote area; the Coastal facility is alleged to violate this zoning.
- Babylon issued a stop-work order in 2004; Zoning Appeals Board upheld it in 2005; Coastal and NYAR sought relief in district court seeking ICCTA preemption.
- STB issued Babylon I (2008), Babylon II (2008 reconsideration), and Babylon III (2009) finding lack of exclusive jurisdiction; CRA implications debated; NYAR and Coastal appealed to Second Circuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether STB has exclusive jurisdiction under 10501(b)(2) for a transload facility not operated by a rail carrier. | NYAR/Coastal argue independent grant to preempt state law irrespective of rail carrier status. | STB held jurisdiction requires transport by rail carrier or control by carrier; Coastal not a carrier, so no exclusive jurisdiction. | No exclusive jurisdiction; requirement of rail-carrier-led transportation not satisfied. |
| Whether the CRA precludes application of state zoning to the facility. | CRA preemption applies to solid waste transfer facilities; facility should be exempt from local regulation. | CRA exemptions do not apply because facility is not part of rail transportation and not owned/operated by a rail carrier. | CRA does not apply; facility not within STB's transportation-based jurisdiction. |
Key Cases Cited
- Island Park, LLC v. CSX Transp., 559 F.3d 96 (2d Cir. 2009) (rail regulation breadth)
- Green Mountain R.R. Corp. v. Vermont, 404 F.3d 638 (2d Cir. 2005) (ICCTA exclusive jurisdiction analysis)
- Hi Tech Trans, LLC v. New Jersey, 382 F.3d 295 (3d Cir. 2004) (transloading facility requires rail carrier control for preemption)
- Skidmore v. Swift & Co., 323 U.S. 134 (U.S. 1944) (Skidmore deference standard)
- Wong v. Doar, 571 F.3d 247 (2d Cir. 2009) (agency deference and review standards)