ARTBA Scores Legal Victories Over Regulatory Overreach

What happened: This week federal courts in both Texas and Kentucky invalidated the Federal Highway Administration (FHWA) Dec. 7 mandate requiring states to factor greenhouse gas (GHG) emissions into highway project planning. The Texas court vacated the rule March 27 followed by a similar order in Kentucky April 1.

Why it matters: In both cases, ARTBA and the Associated General Contractors (AGC) of America filed joint amicus briefs supporting 22 states opposed to the FHWA rule, arguing that the agency lacked the statutory authority to impose it. Scheduled to take effect March 29, the rule would have mandated state departments of transportation to set statewide GHG reduction targets, report on their progress, and coordinate with metropolitan planning organizations. Noncompliant states would have to submit supplementary reports until FHWA was satisfied. States would incur related costs for this process and possibly change project priorities as well.

The decisions mean the FHWA rule is effectively dead, although legal maneuvering by the parties will likely continue. States can still undertake similar GHG initiatives, but only if they choose to do so. ARTBA CEO Dave Bauer hailed the rulings in a statement April 2.

What’s next: The Biden administration may appeal the rulings or deploy other legal strategies. ARTBA will report on new developments when they occur. Prianka Sharma is the contact.