American Trucking Ass'n v. Interstate Commerce Commission
Opinion of the Court
After years of legislative study, “one of the most intensive inquiries” ever conducted by the Senate Committee on Commerce, Science, and Transportation,
In 1980, the Commission began two rule-making proceedings to implement the provisions of the Act: one concerning the licensing of motor carriers
1. to permit applicants for new certificates of public convenience to “apply for any reasonably broad commodity authority” and to “require a showing that the applicant is fit, willing, and
2. not to extend bulk service authority to carriers granted general commodity authority unless the carriers “demonstrate that they are ‘fit, willing, and able to provide the transportation to be authorized by the certificate;’ ”
3. to exclude the states of Alaska and Hawaii from nationwide licenses unless the applicant shows a need for service to or from those states as well as its fitness, willingness, and ability to serve those states.
Because the Commission had not acted to replace the invalidated rules by February 1982, we granted a writ of mandamus in American Trucking Associations, Inc. v. I. C.C. (ATA II).
This appeal challenges the provisions of the most recent rules, adopted in 1984. These rules
1. mandate grants of motor carrier operating authority to transport broadly-described commodity categories unless the applicant seeking authority for more narrowly-described commodities justifies the scope of its application;
2. routinely grant licenses to motor carriers to transport named commodities without any commodity or service restrictions and remove service restrictions on named commodity licenses without requiring the carrier to show that it is fit, willing, and able to provide the previously restricted service;
3. proscribe any limitations or service restrictions on general-commodity motor carrier operating licenses except restrictions against the transportation of household goods, explosives, and bulk commodities;
4. routinely grant authority to serve Alaska and Hawaii to those applicants for licensing as contract carriers who show a need for services and fitness, willingness, and ability to serve only the 48 mainland states;
5. permit the issuance of licenses to applicants seeking certain limited, narrowly circumscribed authorities with
We hold that in adopting rules that place on applicants an evidential burden to demonstrate that their commodity descriptions promote the designs of the Act, extend bulk service authority in specified commodity licenses without a showing of the carriers’ fitness or willingness to provide that service, and routinely grant fifty-state authority to applicants for contract carriage licenses, the Commission has violated the Act, and we, therefore, vacate the rules to that extent. We reject the challenges to the other parts of the rules.
I.
Congress found that many of the commodity restrictions in operating licenses “serve little or no public purpose”
Attempting to interpret Congress’ directive, we said:
The carrier must be permitted, both by the Commission’s express statement and actual agency practice, to seek some other commodity classification if it can show that use of the tripartite Commission standard would require the transportation of commodities unrelated to those previously authorized or would require the institution of a different type of service, and that the carrier is not fit or is unwilling or is unable to provide the service. The procedure for seeking such a modification must be reasonably flexible so that applications will neither be arbitrarily prejudged nor condemned to excessive expense. Finally, there must be some opportunity for opposition to an application to be voiced.21
The Commission explained its understanding of these requirements when it adopted the replacement rules now challenged. The Commission said:
This mandate embraces our view that commodity descriptions cannot be so narrowly drafted as to unreasonably impair service responsiveness and operational flexibility, constrain development of potential competition, or inhibit a carrier’s ability to respond to industrial change or technological innovation within its selected field of service.22
This interpretation is correct. What is questioned, however, is the application of the standard. In implementing that standard, the Commission’s replacement rules adopt the same commodity descriptions we found unreasonably broad in ATA I. The rules simply add: “any other reasonably broad commodity description that the applicant shows will permit responsive service, allow operational flexibility, and promote competition and efficiency in the in
The Commission’s requirement of “a brief explanation” why the proposed description is not “unduly restrictive” is reasonable. While the “reasonable broadness” of some commodity descriptions that do not match the three prescribed brackets should be apparent to a regulatory authority with the Commission’s expertise and experience, other commodity descriptions may not patently satisfy the “reasonably broad” requirement. The Commission is correct that, at times, determining what is reasonably broad authority “requires difficult line drawing,” and, “[i]t is the Commission's, not the applicants’, ultimate responsibility to draw that line.”
The replacement rule itself does not clarify whether the applicant is required merely to explain or whether it bears a burden of proof. If by formal explanation of the rule or in practice the Commission interprets the rule to require only a brief explanation, the Commission is not required to change or elucidate the meaning of its language. Accordingly, the Commission may either alter the rule or make clear either in its policy statements or in actual practice that explanation only is required.
II.
In its decisions that accompanied the adoption of the 1984 replacement rules, the Commission stated that there is “continuing controversy” regarding bulk service restrictions on grants of authority to transport specified commodities. It announced its intention to consider the subject in a separate rulemaking proceeding and declared that in the interim it would follow the Third Circuit’s decision in Port Norris Express Co., Inc. v. I.C.C., 729 F.2d 204 (3d Cir. 1984).
Motor carrier operating licenses authorize carriers to transport either general commodities (i.e., any and all commodities) or named commodities, sometimes called specified commodities. A license that authorizes a named commodity may identify an individual commodity, such as diesel fuel, or a specific category of commodities, such as petroleum products. Many commodities, including sand, coal, chemicals, and petroleum products, may be transported in either bulk or package form. Bulk transportation requires special equipment like tank trucks for hauling diesel fuel or dump trucks for hauling gravel or sand. Traditionally, therefore, motor carrier licenses authorizing the transportation of named commodities have not conferred authority to transport those commodities in bulk unless the applicant carrier requested such authority and demonstrated its fitness, willingness, and ability to provide that kind of transportation. In fact, named commodity licenses issued in the past have usually contained restrictions against bulk authority.
The Commission’s replacement licensing rules state that grants of specified commodities authority “shall not normally contain any commodity or service restrictions.”
In ATA I, we invalidated Commission rules that disallowed all service restrictions, including bulk service restrictions, in licenses granting general commodities authority. We held that the Commission had exceeded its statutory mandate by extending bulk service authority to carriers who “cannot demonstrate that they are ‘fit, willing, and able to provide the transportation to be authorized by the certificate.’ ”
Both the Third and Eighth Circuits have also rejected the Commission’s position that it may routinely grant specified commodity authorizations that do not include bulk restrictions. They have agreed that the ATA I analysis which requires a specific fitness showing for general commodity bulk authority is equally applicable to grants of bulk authority for specified commodities.
The Commission states that this issue is the subject of a separate rulemaking proceeding now being conducted and that it is not routinely removing such service restrictions. The replacement rules it has already adopted distinguish between authority to transport general commodities and specified commodities.
The replacement rules do not require carriers of specified commodities to show fitness, willingness, and ability to haul bulk
III.
American Trucking Associations contends the Commission should also be precluded from barring routinely other traditional service restrictions. The Motor Carrier Act of 1980 called for a break from at least some traditional regulatory practices to eliminate unnecessarily restricted, fragmented, and anti-competitive licenses. Thus, although an array of routine restrictions on general commodities authority was appropriate under the more restrictive 1935 Act, they are not required by the liberalized licensing standards of the 1980 Act. The challengers protest the Commission’s policy of disallowing other service restrictions because, they argue, the transportation of bulk commodities is not the only service that requires special equipment, training, investment, responsibilities, and compliance with federal, state, and local laws and regulations. The transportation of goods, for example, that, because of their size and weight, require the use of special equipment is another specialized field of service that has many of the same characteristics as the transportation of bulk commodities. These arguments were made in the petitioners’ brief in ATA I and mandamus to this effect was sought in ATA II. We rejected these contentions, however, and confined our order in ATA II to a bar of the Commission’s policy of disallowing restrictions on the transportation of household goods and commodities in bulk. We have not been given any reasons to alter that decision, which has now, as to these matters, become res judicata.
IV.
Our decisions in ATA I and ATA II held that the Commission may not grant authority for service to Alaska and Hawaii to applicants for common carrier licenses based only on a showing of public need for, and fitness, willingness, and ability to provide service to the other forty-eight states.
In ATA I we said:
Although we refer in this case only to common carrier certificates, the regulations and policy statements concerning contract carrier permits, 49 U.S.C. § 10923, are similarly affected by our analysis and conclusions.43
As the Commission points out, this does not mean that the rules relating to contract carriage are identically affected by that decision. To justify the distinction it has drawn between common and contract carriers, the Commission relies upon a provision in the Act that forbids it to require a contract carrier “to limit its operations ... within a particular geographic area.”
V.
The Act gave the Commission authority to abridge the normal requirements
Steere Tank Lines charges that the Commission was required to revise the fitness-only regulations to comport with ATA I & II. This argument is without merit because the original rules governing these fitness-only licenses were affirmed by us in those eases. Substantively, Steere’s disagreement is with the underlying statutory provisions, which the agency’s rules closely track. By eliminating the public need test, Congress intended to encourage carriers to seek these limited licenses, e.g. for the carriage of shipments weighing less than 100 pounds, or for service to rural communities that currently have no for-hire motor carriage. To provide this encouragement and to assure “reasonably broad” authorizations for what otherwise would be very limited service, these authorities must be structured expansively. For example, if the commodity class is limited to less-than-100-pound shipments, the territory should be broad {e.g. all states); if the territorial authorization is limited to small rural communities, the commodity authorizations should be expansive {e.g. general commodities).
VI.
“Judicial deference to an agency’s interpretation of ‘its’ statute is surely the norm in contemporary administrative law.”
The Motor Carrier Act of 1980 designedly imposes limits on the Commission’s authority to make policy concerning commodity definitions, service restrictions, and geographic areas. The validity of the Commission’s replacement rules cannot be considered apart from the specific statutory authority under which it acts. The constraints imposed by the statutory language of the Act as a whole, interpreted with due regard for its legislative history, compel the conclusion that certain provisions of the
Congress chose neither completely to deregulate motor carriage nor to give the Commission boundless authority to structure remaining regulation toward its own concept of what would promote competition and efficiency in that industry. It has imposed limits on the agency’s authority that we have already three times attempted to clarify. To the extent that these issues have been considered in other circuits, our decisions have met with the concurrence of the District of Columbia, Third, and Eighth Circuits. No court has differed.
For these reasons, we hold that the replacement rules are invalid in the following respects, and we vacate them to the extent that they:
1. require applicants for new certificates [and applicants seeking restriction removal] to bear the burden of proving that a commodity description [that is reasonably broad on its face] will permit responsive service, allow operational flexibility, and promote competition and efficiency in the industry;
2. extend authority for bulk service, or remove restrictions against bulk service, to any carrier granted specified commodity authority, without requiring a showing of the carrier’s fitness, willingness, and ability to provide the service;
3. routinely grant authority to serve Alaska and Hawaii to applicants for licenses as contract carriers without requiring the carrier to show fitness and ability to provide the service and a public need for the service.
The challenges to the other provisions of the replacement rules are rejected.
Accordingly, we REMAND for further proceedings consistent with this opinion. Costs are to be equally divided.
. S.Rep. No. 641, 96th Cong., 2d Sess. 2 (1980).
. Pub.L. No. 96-296, 94 Stat. 793 (1980).
. American Trucking Ass’n, Inc. v. I.C.C., 659 F.2d 452, 459 (5th Cir. 1981), enforced by mandamus, 669 F.2d 957 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983) (hereinafter referred to as ATA I).
. Federal Election Comm’n v. Democratic Senatorial Campaign Comm., 454 U.S. 27, 32, 102 S.Ct. 38, 42, 70 L.Ed.2d 23, 30 (1981).
. Acceptable Forms of Requests for Operating Authority (Motor Carriers and Brokers of Property), Ex Parte No. 55 (Sub-No. 43A).
. Removal of Restrictions From Authorities of Motor Carriers of Property, Ex Parte No. MC-142 (Sub-No. 1).
. 45 Fed.Reg. 86,747 and 86,798 (1980).
. 659 F.2d 452 (5th Cir. 1981), enforced by mandamus, 669 F.2d 957 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983).
. American Trucking Ass’n, Inc. v. I.C.C., 669 F.2d 957, 963 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983) (hereinafter referred to as ATA II) (interpreting and enforcing the decision in ATA I).
. ATA I, 659 F.2d at 472.
. ATA I, 659 F.2d at 473. The internal quotation is from the statute, 49 U.S.C. § 10922(b)(1)(A) (1982).
. ATA I, 659 F.2d at 474.
. 669 F.2d 957, 964 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983).
. 48 Fed.Reg. 36,285, 36,290 (1983).
. 736 F.2d 1094 (5th Cir. 1984).
. ATA I, 659 F.2d at 460.
. H.R.Rep. No. 1069, 96th Cong., 2d Sess. 17, reprinted in [1980] U.S.Code Cong. & Ad.News 2283, 2299; see S.Rep. No. 641, 96th Cong., 2d Sess. 2 (1980).
. 49 U.S.C. § 10922(i)(l)(B)(i) (1982) (emphasis added).
. ATA I, 659 F.2d at 461-62.
. Id. at 462.
. ATA I, 659 F.2d at 464-65.
. Acceptable Forms of Requests for Operating Authority (Motor Carriers and Brokers of Property), Ex Parte No. 55 (Sub-No. 43A) at 6, served April 13, 1984 (not printed) (hereinafter cited as Ex Parte No. 55).
. 49 C.F.R. § 1160.101(b)(4) (1984) (emphasis added).
. Ex Parte No. 55, supra note 22, at 6 (emphasis added).
. Brief for Respondents at 13, American Trucking Ass’n, Inc. v. I.C.C., No. 84-4389 (5th Cir.filed Nov. 30, 1984).
. Ex Parte No. 55, supra note 22, at 7-8.
. 49 C.F.R. § 1160.101(b) (1984) (emphasis added).
. Id. § 1165.21(b).
. 659 F.2d at 473, citing. 49 U.S.C. § 10922(b)(1)(A) (1982). That provision governs motor carrier licensing and specifies:
[T]he Interstate Commerce Commission shall issue a certificate to a person authorizing that person to provide transportation ... as a motor common carrier of property if the Commission finds—
(A) that the person is fit, willing, and able to provide the transportation to be authorized by the certificate ...; and
(B) ... that the service proposed will serve a useful public purpose, responsive to a public demand or need.
49 U.S.C. §§ 10922(b)(1)(A), (B) (1982).
. ATA I, 659 F.2d at 465.
. Id. at 470.
. Steere Tank Lines, Inc. v. I.C.C., 736 F.2d 1094 (5th Cir. 1984).
. Id. at 1095.
. Id. at 1096.
. Erickson Transport Corp. v. I.C.C., 737 F.2d 775 (8th Cir. 1984); Port Norris Express Co., Inc. v. I.C.C., 729 F.2d 204 (3d Cir. 1984).
. 49 C.F.R. §§ 1160.101(a), (b), 1165.21(a), (b) (1984).
. Ex Parte No. 55, supra note 22, at 6 (emphasis added).
. Id. at 8.
. 49 C.F.R. §§ 1160.101(b), 1165.21(b) (1984).
. ATA I, 659 F.2d at 474; ATA II, 669 F.2d at 963.
. 49 C.F.R. §§ 1160.105, 1160.106(e)(2) (1984).
. ATA I, 659 F.2d at 457 n. 4 (emphasis added).
. 49 U.S.C. § 10923(d)(1) (1982).
. (b)(4) [The requirement that an applicant demonstrate a public need for the service] shall not apply to applications under this subsection for authority to provide—
(A) transportation to any community not regularly served by a motor common carrier ...;
(B) transportation services which will be a direct substitute for abandoned rail service to a community ...;
(C) transportation for the United States Government of property other than used household goods, hazardous or secret materials, and sensitive weapons and munitions;
(D) transportation of shipments weighing 100 pounds or less ...; and
(E) transportation by motor vehicle of food and other edible products ... intended for human consumption, ... and agricultural fertilizers____
(9) [Likewise, this requirement] shall not apply to applications ... for authority to provide transportation for the United States Government of used household goods____
49 U.S.C. §§ 10922(b)(4)(A)-(E), (b)(9) (1982). (b)(5)(A) [The requirement that a contract carrier demonstrate that a proposed service will be consistent with the public interest] shall not apply to applications under this section for authority to provide transportation by motor vehicle of food and other edible products ... intended for human consumption, ... and agricultural fertilizers____
Id. § 10923(b)(5)(A).
. 49 C.F.R. §§ 1160.106(a)-(g) (1984).
. Diver, Statutory Interpretation in the Administrative State, 133 U.Pa.L.Rev. 549, 598 (1985). See Griggs v. Duke Power Co., 401 U.S. 424, 91 S.Ct. 849, 28 L.Ed.2d 158 (1971); Fulman v. United States, 434 U.S. 528, 98 S.Ct. 841, 55 L.Ed.2d 1 (1978); Ford Motor Credit Co. v. Milhollin, 444 U.S. 555, 100 S.Ct. 790, 63 L.Ed.2d 22 (1980).
. Diver, supra note 47, at 599.
Reference
- Full Case Name
- AMERICAN TRUCKING ASSOCIATIONS, INC. Film, Air, and Package Carriers Conference, Inc. National Automobile Transporters Association Mississippi Trucking Association National Tank Truck Carriers, Inc. and Regular Common Carriers Conference, Inc. v. INTERSTATE COMMERCE COMMISSION and United States of America
- Cited By
- 1 case
- Status
- Published