Passenger Trains > "Amtrak’s Regulatory Derailment"

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"Amtrak’s Regulatory Derailment:  The United States Court of Appeals for the District of Columbia Circuit last Friday constitutionally derailed a Passenger Rail Investment and Improvement Act of 2008 (PRIIA) provision that authorized Amtrak and the Department of Transportation (DOT)’s Federal Railroad Administration (FRA) to jointly regulate and enforce Amtrak’s priority over other trains on private freight rail tracks.  The D.C. Circuit previously invalidated the statute as an unconstitutional delegation of regulatory power to a private entity (Amtrak), but the United States Supreme Court (SCOTUS) reversed, holding that Amtrak’s designation and operation as a for-profit corporation did not mean that Amtrak could not also be considered a governmental entity.  On remand from SCOTUS, and after further argument, the D.C. Circuit concluded that the underlying statute violated:

1. the United States Constitution’s Fifth Amendment Due Process Clause, by authorizing Amtrak, which the court found to be an economically self-interested actor, to regulate its competitors, which the court found that it did – i.e. [i]Carter v. Carter Coal Co.[/i], and
2. the Constitution’s Appointments Clause, by delegating regulatory power to an improperly appointed arbitrator – an officer appointed by DOT’s Surface Transportation Board (STB) to resolve any impasse between Amtrak and FRA over the content of the performance standards through “binding arbitration” that would impact the freight railroads obligations to Amtrak....." 

There are a number of comments about this ruling on this thread.

Due Process

It largely appears to be an ruling against "double dipping", i.e. it is inappropriate and unfair for Amtrak to have a role both as a regulator and also able to seek relief as a harmed party.

Nothing seems to disallow Congress from giving Amtrak priority, or from Amtrak seeking relief if there is a violation -- rather, it's the structure of this particular structure that has problems.