By Marc Hymovitz

In a major victory for local control, the federal Surface Transportation Board last month dealt a blow to New England Transrail’s bid to bypass local rules.

New England Transrail was seeking recognition as a railroad, which would have exempted the company from many state and local regulations. But the STB last month terminated the company’s proceeding.

Congress created the STB in 1995, giving it jurisdiction over railroad rate and service issues as well as rail restructuring transactions. In an effort to ensure the ease of passage from community to community and state to state, the STB was given the authority to grant railroad companies exemptions from most state and local regulations, including zoning and environmental controls.

New England Transrail, in its attempt to open a solid waste transfer facility at a former chemical site in Wilmington, petitioned the STB to be recognized as a railroad, claiming that the company would be offloading trash-filled containers from trucks and loading them directly onto rail cars. The company argued that no trash would leave the containers in the transfer process.

The company’s application stated that as many as 400 trucks per day would deliver materials and waste to 25 rail cars, which would leave each morning between 1 a.m. and 5 a.m.

The railroad designation would have exempted this activity from oversight by the Department of Environmental Protection and local officials. The company would have been able to avoid compliance with the Massachusetts Environmental Policy Act, the state’s ban on certain waste materials, and state wetlands laws.

The Surface Transportation Board granted conditional approval of Transrail’s original application, but after conducting environmental assessments and receiving public input, the board found that the company’s intentions were “materially different” from what it had initially outlined.

The Transportation Board received significant public input from, among others, the MMA, the DEP, the attorney general’s office, and members of the state’s Congressional delegation, all opposing Transrail’s attempt to bypass state and local rules.

It appears that Transrail’s proposal evolved to become a simple transfer station, with the trash being removed by rail.

The STB cited “significant concern” about conflicting information that would not allow the board to make a decision. The board voted to require Transrail to file a new petition if the company wished to have the project reconsidered. This would require the company to start the process from the beginning, including the expense of initial filing fees.

The STB made it clear, however, that its decision was based on procedure and not the merits of the case. With several communities and states across the nation facing similar issues, this issue is not expected to disappear anytime soon.