Rail Regulator Moves to Shield Freight Terminals From Local Curbs as Floods Halt Brightline

The US Surface Transportation Board has signaled that it will take a broader view of when federal law shields rail-served facilities from state and local restrictions. The shift could make it harder for towns to block or cap transloading terminals.

In a policy statement that takes effect on Monday, the board set out a two-part test. It will ask whether a facility is used to receive or hand off common-carrier rail service. It will then ask whether a government action restricts or dictates that service, including its volume, timing or commodity mix. If both answers are yes, federal preemption may apply.

The board acknowledged that its past rulings “have not always been entirely consistent.” It questioned two decisions from 2015 and 2016 that allowed local challenges to customer-owned facilities. It also cited “strong policy arguments” for blocking outright any attempt by states or localities to take exclusive possession of railroad property through eminent domain. The statement isn’t binding, and facilities with only an incidental rail link will generally remain subject to local zoning.

The Association of American Railroads welcomed the move. “On a bipartisan basis, Congress established a nationally uniform system for interstate rail transportation,” said Ian Jefferies, its chief executive. The initiative followed a request from railroad and shipper groups, including the American Chemistry Council and the National Grain and Feed Association.

In Florida, Brightline halted trains between Orlando and West Palm Beach for several days last week after high water flooded its corridor in Brevard County. The privately owned intercity railroad suspended the segment on Nov. 2 and sent maintenance crews to the site. It said it expected to restore Orlando service on Thursday. Trains between Miami and West Palm Beach ran normally throughout.