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Notes -
There was a discussion last week about the DOT vs MTA case re congestion pricing and there's an interesting new update. DOJ attorneys intended to upload a letter to the courts to Judge Liman regarding their expectations for documents added to the administrative record.
Unfortunately it appears they made a mistake and accidentally sent an internal letter meant for Erin Hendrixson, the senior trial attorney at the DOT regarding his apparent request for litigation risk in this case and it is quite revealing.
The three DOJ Assistant United States Attorneys internally seem unconvinced that the FHWA (federal highway administration) cancellation by Secretary Duffy is in accordance with law and thus is unlikely to be upheld by the judge.
Here's some choice bits
...
They also highlight an alternative strategy for cancellation since they believe this current one is likely to fail. Instead of termination as a matter of statutory construction, they suggest an attempt at the change-in-position doctrine instead. That method could be a difficult sell too given the above bit about not having much written justification on the matter. The change-in-position doctrine requires a "reasoned explanation" for the decision and must consider "serious reliance issues" of regulated parties and must not be arbitrary or capricious, which would be hard to do with the current lack of written justification for their decision so they'll likely go through the internal decision making process for it first.
It is not possible to perfectly predict the decisions of Judge Liman and the respective agencies, but the internal memo at least suggests the DOT believes it is fighting an uphill battle, one that it is unlikely to win on the current merits. They also haven't sought a preliminary injunction against the MTA yet (explanation here for why the onus is on the DOT)) and the slow response would reflect this internal lack of confidence if they feel they can't reach the bar required for one. Some unrelated legal scholars have also commented on the case suggesting the DOT was unlikely to win and that the fight (if Duffy and Hochul wishes to drag it out) could inevitably end up at the Supreme Court.
Currently at least the MTA seems poised to win the case that this particular attempt was unlawful by the DOT, and in response to this likelyhood it appears the DOT is planning some alternative options it hopes will be more defensible under existing law.
One final note ironically NEPA, the same regulation that ended up with a 4,007 page document (thanks in part to New Jersey's challenges) impeding the implementation of congestion pricing for three years might also kick in with this strategy, forcing a new NEPA analysis by the DOT for termination of the program. Will the villain of the congestion pricing storyline from the early 2020s become its hero in the mid 2020s?
Absurd violation of states’ rights. Trump made the smart call on abortion, let states experiment with congestion schemes if they want.
Too late for that. If we're going to switch back to "states rights", it has to be for a Red issue or it doesn't look like "state's rights" but rather "who/whom".
It is a red issue. If congestion pricing is so terrible, NYC will suffer and, as in California with Texas, red states will benefit from an influx of investment and tax revenue.
It seems like a lot of the NYC stuff legitimately can’t be moved, though. Like the economy is based off banks that have to be located in NYC.
Why do they have to be in NYC?
Proximity to the NY Stock Exchange, among others, I'd venture.
Options and futures markets are in Chicago.
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