980410.docx

MEMORANDUM
TO:RON LAW
FROM:BRAD PURDY
DATE:APRIL 10, 1998
SUBJECT:JURISDICTION OF THE IDAHO PUBLIC UTILITIES COMMISSION OVER RAILROAD CORPORATIONS OPERATING WITHIN THE STATE OF IDAHO
On January 1, 1996, the United States Congress enacted the Interstate Commerce Commission Termination Act, 49 U.S.C. §§ 10501, et seq., (the ICCTA or the Act).  The Act amends certain sections of 49 of the United States Code governing the economic regulations of railroads.  The Act also terminates the Interstate Commerce Commission and creates the Surface Transportation Board (STB).  Many provisions of the ICCTA are identical to federal laws in existence prior to the implementation of the Act.  The Act does include one new provision, however, which provides
(b)  the jurisdiction of the Board over -
(1)  transportation by rail carriers, and remedies provided in this part with respect to rates, classifications, rules (including car service, interchange and other operating rules), practices, routes, services, and facilities of such carriers
(2)  the construction, acquisition, operation, abandonment, discontinuance of spur, industrial, team, switching, or sidetracks, or facilities, even if the tracks are located, or intended to be located, entirely in one state, is exclusive.  Except as otherwise provided in this part, the remedies provided and under this part with respect to regulation of rail transportation are exclusive and preempt the remedies provided under federal or state law.
49 U.S.C. § 10501(b).
As a result of implementation of the Act, the jurisdiction of the Idaho Public Utilities Commission over the operation of railroads in the state of Idaho (with the exception of the matters pertaining to safety) has been preempted by federal law.  Such jurisdiction now rests with the STB.  As 49 U.S.C. 10501(b) indicates, this federal preemption applies to the acquisition and abandonment or discontinuance of rail lines.  
bls/M:rail.bp