News Release

THE BILL:

• HB 2156 creates a process to shine a light on RR siting activities in Arizona.
• Arizona is the #1 growth state, and we need to know what the RR's are doing regarding major pieces of infrastructure, where they are doing it, and why. That's why the fall of 2007 Arizona Town Hall on Land Use Planning formally adopted a position in support of legislation of this nature in its consensus report.
• And because there has been a gross lack of consideration on the part of railroads for private property rights, as well as local and state economic and natural resource impacts in the siting of major pieces of rail infrastructure, we need a process to simply assess these issues in a public review in the "full light of day."
• That's what HB 2156 provides, a process administered by the corporation commission (already familiar with the railroads on safety matters and simply best suited to deal with siting processes of all sorts) to review and create a record regarding the impacts to private property owners, local areas and critical state resources while assessing the possibility of alternative sites that may be feasible for consideration.
• To avoid constitutional roadblocks the corporation commission's oversight is simply to give the commission the discretion to require the RR to go through a process that requires the RR to hire qualified third parties to deliver assessments on potential key negative impacts relative to infrastructure sites chosen by the railroad. The commission may, also on a discretionary basis, only suggest alternatives.
• The bill provides for the RR to pay a fee to provide the necessary resources for the corporation commission to conduct the hearings and assessments needed to create a public record on the impacts to private property rights, critical water supplies, air quality (a huge issue today in various key parts of Arizona) other natural resources, major industries and other vital issues connected with sites chosen by the RR.*

* See also the attached supplement more particular to resource and environmental concerns

IN GENERAL:

• The bill simply puts in full public view the dealings of RR entities that have a tremendous affect on well planned growth in our state, impacts on vital natural resources (including precious water supplies) and the use or threatened use of condemnation power by a private for profit company for its own benefit.
• Especially as to the latter point, Arizona voters made clear in November 2006 that they do not want governments taking one private landowner's land to benefit another private party.
• Why would we allow a private RR company to act like a government in a completely unreviewed and unchecked manner by threatening (as they have done) to take businesses and property away from other private citizens just so that its own profit margin isn't lowered!?!
• HB 2156, as amended, would end the RRs divide and conquer bullying approach and force them to be exposed when they choose bullying over a forthcoming, open approach with communities and engage in a truly cooperative review of viable and less onerous alternatives.
• In a free market, no private company should wield the power of government simply to protect itself from lower profits at the expense of (and even the destruction of) other businesses --at least not without it being made part of an evaluation and a record for policymakers at all levels of government and the public to see.
• At that point it becomes very difficult for the RR to justify or explain to the media and a well informed public that it is going forward to construct major infrastructure at a poorly chosen and highly problematic site.
• And to the extent there is even involvement by the federal Surface Transportation Board regarding a specific site, it will become very difficult for federal regulators to simply ratify and rubber stamp sites on behalf of the RRs as so often happens now.
• To the argument RRs have made that this will cause the RRs to do business outside of Arizona --this is at best a bluff since they are here working on projects because it behooves them to do so financially. It is, at worst, blackmail for the notion that if Arizona does not stand idly by while the RRs abuse its citizens and its natural resources, then the RRs will go else where (accept of course if other states see this pioneering legislation succeed....in which case the RRs may just have to stop bullying and start working with people everywhere they do business).

This is simply the strongest measure possible given the federally controlled regulatory framework within which the RRs operate. This bill disrupts the cocoon the RRs have enjoyed for too long without running afoul of that over-protective framework from a constitutional standpoint.

Finally, to the 'old standby'preemption argument:

• First, last year's measure went through legislative rules scrutiny. It also has been modified during the interim to even further distance it from federal preemption concerns. The substance of this measure was crafted last year with the assistance of Senate Rules counsel in a good faith effort to avoid the preemption problem.
• Second, as a state government we have shown time and time again that the simple threat of a preemption claim will not deter this legislature or the executive from acting on policies they feel strongly about. We have seen that most recently under the glare of the border issue spotlight.
• Third, the cost of defending a constitutional challenge would pale by comparison to the cost of fouling major water supplies, severely damaging a multi-Billion dollar Ag industry, creating additional health problems and costs, constructing poorly planned and ill-conceived major pieces of infrastructure throughout the nation's fastest growing state, the destruction of scores of vibrant businesses, etc.

***Last year all 30 Senators voted for this measure, and the House also passed it with a supermajority, overwhelmingly favoring due process, private property rights, the protection of our state's resources and well-planned growth over the omnipotence of any entity.***

Members, please vote "YES" in support of House Bill 2156.

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