Union Pacific Railroad Company v. Public Utility Commission of the State of Oregon State of Oregon

The State of Oregon imposes a levy on railroads doing business in Oregon to recoup the costs of regulating railroad operations within that state. See Or.Rev.Stat. § 756.310. Union Pacific Railroad Company sought and obtained a declaratory judgment that the levy violates a provision of the Railroad Revitalization and Regulatory Reform Act (“4-R Act”) prohibiting the imposition of a “tax that discriminates against a rail carrier.” See 49 U.S.C. § 11503 (b)(4). The only question present ed in this appeal is one of statutory interpretation: does § 11503(b)(4) of the 4-R Act prohibit the kind of assessment imposed upon railroads by Or.Rev.Stat. § 756.310? We conclude it does not.

We first consider the nature of the assessment imposed by the Oregon statute; we then summarize the factors from which we conclude Congress did not intend to preclude imposition of such a levy by the State.

I

Oregon Revised Statute § 756.310 is an integral part of a comprehensive scheme, administered by the Oregon Public Utilities Commission, to regulate the business of railroads and other carriers within the State of Oregon. See id. § 756.040.

The regulatory scheme includes five distinct programs…