Owner Operator Indep. Drivers Ass'n, Inc. v. Pa. Tpk. Comm'n
Opinion
*288 Plaintiffs are individuals and members of groups who pay tolls to travel on the Pennsylvania Turnpike. 1 They allege that Pennsylvania state entities and officials ("Defendants") have violated the dormant Commerce Clause and their right to travel. 2 Specifically, Plaintiffs assert that Defendants have set exorbitantly high tolls for use of the Pennsylvania Turnpike and that the amounts collected exceed the costs to operate the Turnpike. They contend the extra funds are being used for projects that disproportionately benefit local interests and that the high tolls deter non-Pennsylvanians from using the Turnpike.
Because Congress has permitted state authorities, such as Defendants, to use the tolls for non-Turnpike purposes, the collection and use of the tolls do not implicate the Commerce Clause. Moreover, because Plaintiffs have not alleged that their right to travel to, from, and within Pennsylvania has been deterred, their right to travel has not been infringed. Therefore, we will affirm the District Court's order dismissing the complaint.
I
A
The Pennsylvania Turnpike is part of a 552-mile highway system that crosses Pennsylvania from New Jersey to Ohio. The Pennsylvania Turnpike Commission ("PTC") sets and collects Turnpike tolls.
In 2007, the Pennsylvania legislature enacted Act 44, which, among other things, permitted the PTC to increase tolls and required the PTC to make annual payments for a fifty-year period to the Pennsylvania Department of Transportation ("PennDOT") Trust Fund.
See
After Act 44 went into effect, the PTC announced a 25% toll increase and from 2009 through 2016, tolls were increased annually by more than 10% for cash customers and 5.75% for customers using an electronic toll transmitter known as an EZ-Pass. Plaintiffs assert that since the enactment of Act 44, tolls have increased more than 200% and that the current cost for the heaviest vehicles to cross the 359-mile portion of the Pennsylvania Turnpike that spans from New Jersey to Ohio exceeds $1800. Pennsylvania's Auditor General found that PTC's annual "costly toll increases place an undue burden" on Pennsylvanians, opined that "the average turnpike traveler will be deterred by the increased cost and seek alternative toll-free routes," App. 88 (emphasis omitted) (quoting September 2016 Performance Audit of the PTC), and recommended that the PTC seek legislative relief from its Act 44/89 payment obligations.
*289
Tolls are PTC's largest revenue source and amount to 166-215% of the costs to maintain and operate the Turnpike. Simply put, the amount of the tolls collected exceeds the amount it costs to run the Turnpike. The excess tolls are deposited into the PennDOT Trust Fund, which are, in turn, transferred to four different programs: (1) operating programs under
*290
Plaintiffs concede that a federal statute, the Intermodal Surface Transportation Efficiency Act of 1991 ("ISTEA"), Pub. L. No. 102-240,
B
Plaintiffs brought suit on behalf of a putative class alleging violations of the dormant Commerce Clause and their right to travel. 5 Defendants moved to dismiss and Plaintiffs moved for partial summary judgment on the issue of liability.
The District Court granted Defendants' motions to dismiss
6
and denied Plaintiffs' motion for summary judgment.
See generally
Owner Operator Indep. Drivers Ass'n v. Pa. Tpk. Comm'n
,
II 7
A
1
The Commerce Clause confers upon Congress the power "[t]o regulate
*291
Commerce ... among the several States." U.S. Const. art. I, § 8, cl. 3. By negative implication, Congress's authority to regulate commerce prohibits the states from enacting "laws that unduly restrict interstate commerce."
Tenn. Wine & Spirits Retailers Ass'n v. Thomas
, --- U.S. ----,
Congress, however, may authorize a state to take actions that burden interstate commerce.
S. Dakota v. Wayfair, Inc.
, --- U.S. ----,
To determine whether Congress has authorized such action and thereby "removed [it] from the reach of the dormant Commerce Clause," we must consider whether its intent is "unmistakably clear."
S.-
Cent. Timber Dev., Inc. v. Wunnicke
,
2
Defendants contend that Congress, through ISTEA, specifically authorized states to enact legislation that allocates highway tolls for purposes unrelated to the toll road. If a state's actions fall within the scope of Congress's authorization, then the dormant Commerce Clause *292 does not apply. We therefore begin by analyzing whether ISTEA authorizes Defendants' conduct. 9
Under ISTEA, "Congress sought to foster a National Intermodal Transportation System, consisting of all forms of transportation in a unified, interconnected manner."
Am. Trucking
,
ISTEA regulates the use of "toll revenues" by "[a] public authority," such as the PTC,
10
and enumerates the categories for which toll revenues may be used.
• debt service;
• "a reasonable return on investment of any private person financing the project";
• "any costs necessary" to improve, operate, and maintain the toll facility; and
• payments to private parties (where applicable) "if the toll facility is subject to a public-private partnership agreement."
Pursuant to title 23, federal funds "may be obligated" for several broad categories of items,
Title 23 also authorizes states to build "[a]ny type of project eligible under this section as in effect on the day before the date of enactment of the [Fixing America's Surface Transportation] Act, including projects described under [§] 101(a)(29) as in effect on such day."
[c]onstruction ... of on-road and off-road trail facilities for pedestrians, bicyclists, and other nonmotorized forms of transportation, including sidewalks, bicycle infrastructure, pedestrian and bicycle signals ... to achieve compliance with the Americans with Disabilities Act of 1990 ( 42 U.S.C. [§] 12101 et seq. ).
Through ISTEA, Congress expressed its "unmistakably clear" intent that the Defendants could use toll revenues for non-toll road projects.
S.-Cent. Timber
,
Plaintiffs argue that Congress could not have contemplated that a state would increase its tolls by over 200% to fund non-toll road projects. Plaintiffs ignore the text of ISTEA. Nowhere in the statute, including § 129(a)(3)(A)(v), did Congress cap the amount of toll money a state could raise.
See
Am. Trucking
,
Nor is there merit to Plaintiffs' argument that ISTEA speaks only to "use" of excess toll revenue, not to "collection" or "generation" of toll revenue. As a matter of common sense, however, Congress's authorization of "use" assumes there is toll revenue collected in the first place to be used, and contrary to Plaintiffs' suggestion that Congress was speaking only to "nickels and dimes" left over each year due to fluctuating Turnpike costs, Oral Arg. Tr. at 18, 77, Congress identified a host of big-ticket items that excess tolls could be spent to construct, including "highways, bridges, tunnels, ... ferry boats[,] and [ferry] terminal facilities."
Plaintiffs concede that the non-Turnpike related projects listed in their complaint for which toll funds were used fall within ISTEA's scope, but contend that Defendants failed to satisfy one of ISTEA's conditions for using the toll funds
*294
for non-toll road purposes. As noted earlier, ISTEA requires that the public authority "certif[y] annually that the toll facility is being adequately maintained" before any excess funds may be used for non-toll road projects.
In sum, "[t]he text is clear": Congress has authorized the states, including the Commonwealth of Pennsylvania, to generate and use such tolls to fund the type of projects listed in Plaintiffs' complaint.
12
B
Plaintiffs' claim that the tolls violate their right to travel also fails. "The constitutional right to travel from one State to another, and necessarily to use the highways and other instrumentalities of interstate commerce in doing so, occupies a position fundamental to the concept of our Federal Union."
United States v. Guest
,
To determine whether a state law "sufficiently impinges upon the right to travel or migrate to trigger strict scrutiny, [we look] to see whether the challenged law's [1] 'primary objective' is to impede interstate travel; [2] whether it 'penalize[s] the exercise of that right;' or [3] whether it 'actually deters such travel.' "
Maldonado v. Houstoun
,
Plaintiffs do not assert that the toll penalizes or impedes travel. Rather, Plaintiffs allege that "the average turnpike traveler will be deterred by the increased cost and seek alternative toll-free routes[,]" App. 88 (quotation marks and citation omitted), and that the tolls "discourag[e] both business and private travelers from using the Turnpike," App. 99. Thus, we must decide whether Plaintiffs have stated a claim that the tolls "actually deter[ ]" interstate or intrastate travel. Soto-Lopez , 476 U.S. at. 903.
"[B]urdens on a single mode of transportation do not implicate the right to interstate travel."
14
Miller v. Reed
,
Because Plaintiffs allege only that the increased tolls have caused and will continue to cause Turnpike users to switch to non-toll roads in the future, 15 and not that interstate or intrastate travel has been or *296 will be deterred, 16 they have not stated a claim that their right to travel has been infringed. Therefore, the District Court properly dismissed Plaintiffs' right to travel claim.
III
For the foregoing reasons, we will affirm.
Plaintiffs are Owner Operator Independent Drivers Association, Inc.; National Motorist Association; Marion L. Spray; B.L. Reever Transport, Inc.; Flat Rock Transportation, LLC; Milligan Trucking, Inc.; Frank Scavo; and Laurence G. Tarr.
Defendants are the Pennsylvania Turnpike Commission ("PTC"), William K. Lieberman, Vice Chair of the PTC; Barry Drew, Secretary-Treasurer of the PTC; Pasquale T. Deon, Sr., and John N. Wozniak, Commissioners of the PTC; Mark P. Compton, Chief Executive Officer of the PTC; Craig R. Shuey, Chief Operating Officer of the PTC; Pennsylvania Governor Tom Wolf; and Leslie S. Richards, who is both the Chair of the PTC and Secretary of the Pennsylvania Department of Transportation.
Act 44/89 payments will generate $50 million annually for PennDOT from 2023 through 2057.
Plaintiffs allege that Act 44/89 funds have been used for various programs across the state including:
a. Development of Three Crossings, a mixed-use development consisting of residential units, office space, and a transportation facility with vehicle and bicycle parking, bicycle repair, electric-vehicle charging stations, kayak storage, and transit station in Pittsburgh (Allegheny County);
b. Construction of an underpass under U.S. 22, connecting the Lower Trail with Canoe Creek State Park (Blair County);
c. Rehabilitation of nine stone-arch bridges along the SEPTA regional railway line (Regional project);
d. Replacement of the roof at Collier Bus Garage (Allegheny County);
e. Sidewalk installation along North Main Street in Yardley (Bucks County);
f. Installation of approximately 1,800 feet of ADA-compliant sidewalk along the south side of Union Deposit Road between Shield Street and Powers Avenue at the Union Square Shopping Center in Susquehanna (Dauphin County);
g. Extension of internal road, including final design, survey, permit modifications, bid documents, construction, storm water, street lights, project administration, legal expenses, audit expenses, and contingencies in Windy Ridge Business and Technology Park (Indiana County);
h. Improvements to roadways in 12,000 acres of parks, including widening shoulders, paving, signage installation, and bicycle marking in the Allegheny County Parks;
i. Addition of eight curb ramps, new asphalt, four decorative crosswalks and a surface sign at an intersection in Latrobe (Westmoreland County);
j. Phase II Construction of Erie Metropolitan Transportation Authority's Maintenance and Paratransit Bus Storage Facility (Erie County);
k. Improvements to the Erie International Airport terminal building (Erie County);
l. Creation of a multi-use trail and installing associated signage from the West End neighborhood linking existing bike routes to a multiuse path that connects to The Pennsylvania State University (Centre County);
m. Creation of a pedestrian island at the intersection of Park Avenue and McKee Street in State College to provide a safer crossing for pedestrians and cyclists and accommodate the accessibility needs of vision-impaired residents (Centre County);
n. Construction of a new two-way industrial access road, realigning a portion of the Nittany & Bald Eagle Railroad Main Line to accommodate the access road, and constructing new sidings and operating tracks for First Quality Tissue's two existing facilities and a proposed new facility (Clinton County);
o. Construction of an 85-car unit train loop track in the Keystone Regional Industrial Park to connect with an existing Norfolk Southern main line track and serve a Deerfield Farms Service grain elevator facility in Greenwood (Crawford County).
App. 81-84.
The Complaint seeks (1) a declaratory judgment that PTC's tolls and the provisions of Act 44/89 that direct the PTC to make payments to PennDOT violate the dormant Commerce Clause and the constitutional right to travel, (2) a preliminary and permanent injunction enjoining both the excess tolls and payments under Act 44/89, and (3) a judgment against Defendants ordering the refund of excess toll payments.
Certain Defendants also moved in the alternative for summary judgment. Although the District Court outlined the legal standards for both Federal Rules of Civil Procedure 12(b)(6) and 56,
Owner Operator Indep. Drivers Ass'n v. Pa. Tpk. Comm'n
,
The District Court had jurisdiction under
Our review of the District Court's dismissal of Plaintiffs' complaint is plenary.
Burtch v. Milberg Factors, Inc.
,
Absent such legislation, "Congress has left it to the courts to formulate the rules to preserve the free flow of interstate commerce."
Wayfair
,
Principles of constitutional avoidance counsel us to first address whether a statutory ground resolves the case, and thereby renders unnecessary the need to answer the "constitutional question" here of whether the Defendants' toll collection and allocation place an undue burden on interstate commerce in violation of the dormant Commerce Clause.
Slack v. McDaniel
,
A "public authority" includes a state "instrumentality with authority to finance, build, operate or maintain toll ... facilities."
Moreover, Plaintiffs' attempt to preclude Defendants from relying on § 129(a)(3)(A)(v) 's spending authority because they did not fulfill the statute's certification requirements also fails because the statute does not provide a private right of action.
See
Endsley v. City of Chicago
,
Because we hold that Congress has authorized Defendants to engage in the challenged activity, we need not decide whether
Pike
,
Although the District Court declined to decide whether "Congress has specifically authorized the expenditure of toll revenues contemplated by Act 44/89,"
Owner Operator
,
States may not impose burdens on all modes of interstate travel.
See
Crandall v. Nevada
,
In
Wallach v. Brezenoff
, we applied
Evansville
to evaluate plaintiffs' assertion that an increase in tolls on all of the bridges and tunnels from New Jersey to New York City violated their right to travel.
Plaintiffs seek to rely on Defendant Wolf's statements on the radio that the tolls deter travel on the Turnpike, but those statements are outside of the pleadings and thus are irrelevant to whether the complaint states a claim.
Reference
- Full Case Name
- OWNER OPERATOR INDEPENDENT DRIVERS ASSOCIATION, INC. ; National Motorist Association ; Marion L. Spray; B.L. Reever Transport, Inc. ; Flat Rock Transportation, LLC; Milligan Trucking, Inc. *; Frank Scavo; Laurence G. Tarr, Appellants v. PENNSYLVANIA TURNPIKE COMMISSION; Leslie S. Richards, in Her Individual Capacity and Her Official Capacities as Chair of the PTC and Secretary of the Department of Transportation; William K. Lieberman, in His Individual Capacity and His Official Capacity as Vice Chair of the PTC; Barry T. Drew, in His Individual Capacity and His Official Capacity as Secretary-Treasurer of the PTC; Pasquale T. Deon, Sr., in His Individual Capacity and His Official Capacity as Commissioner of the PTC; John N. Wozniak, in His Individual Capacity and His Official Capacity as Commissioner of the PTC; Mark P. Compton, in His Individual Capacity and His Official Capacity as Chief Executive Officer of the PTC; Craig R. Shuey, in His Individual Capacity and His Official Capacity as Chief Operating Officer of the PTC; Tom Wolf, Governor of the Commonwealth of Pennsylvania, in His Individual Capacity and His Official Capacity as Governor *(Amended as Per the Clerk's 04/25/19 Order)
- Cited By
- 23 cases
- Status
- Published