The long-awaited federal ruling on congestion pricing has done little to finish the drama, as the controversial tolls are set to be introduced on January 5.
As reported by NJBIZ, wherein the Garden State is involved legal battle thwart the plan. Under the program, most drivers can pay $9 to enter the area south of sixtieth Street in Manhattan. The New Jersey case was considered the last hurdle before tolls began on Sunday. The decision comes after two New York federal judges issued rulings against parties opposing congestion pricing.
On December 30, Judge Leo Gordon of the United States Court of International Trade for the District of New Jersey issued a 72-page ruling. This decision led to 2 different interpretations on either side of the Hudson River.
Gordon didn’t issue a stop-launch order. However, he called Federal Highway Administration (FHWA) to supply more details regarding environmental and mitigation elements.
“Finally, the court finds that the Final Environmental Assessment (EA) and FONSI (Finding of No Significant Impact) don’t provide an affordable link between the general mitigation obligations presented and the specific resolution of any significant impacts that will result from the Program no matter whether these effects occur in New York or New Jersey,” the ruling stated.
(*5*)
Green light
The New York side of the Hudson hailed the ruling as a victory and a green light to proceed.
“Despite New Jersey’s best efforts to thwart New York’s ability to reduce congestion on our streets while making long-overdue investments in public transportation, our position prevailed in court on almost every issue,” said Governor Kathy Hochul . “This is a huge victory for commuters in both New York and New Jersey.”
“We are pleased that Judge Gordon agreed with the New York federal court on virtually every issue and rejected New Jersey’s claim that the environmental impact assessment approved 18 months ago was flawed,” said Janno Lieber, president and CEO of the Metropolitan Transportation Authority (MTA).
“Most importantly, the decision does not interfere with the planned implementation of the program this Sunday, January 5. In the other two issues in which the judge required the Federal Highway Administration (FHWA) to provide additional data – information that was not yet available before the Court in this proceeding – we believe that subsequent federal actions, including the approval of revised, reduced toll rates , actually solved these problems.”
However, the Jersey side didn’t share this view.
“We welcome today’s court ruling on the congestion pricing lawsuit. Due to legal proceedings in New Jersey, a judge has ordered a remand and therefore the MTA cannot proceed with implementing the current congestion pricing proposal as of January 5, 2025.” said Randy Mastro, a lawyer representing New Jersey in the case.
“The judge found that the Federal Highway Administration acted arbitrarily and capriciously in approving the MTA plan, that the FHWA decision did not provide a reasonable explanation of its climate change mitigation obligations, that New York significantly changed its tolling system after receiving federal approval, and that more attention needed before the current congestion pricing proposal becomes effective.”
Red light
Mastro said the Garden State stays strongly against any attempt “to push through congestion pricing proposals in the final weeks of the Biden administration.”
“There could not be a worse time to impose a new $9 fee, which will increase to $15 over time, on people traveling to downtown Manhattan for work, school or recreation,” Mastro concluded in his statement.
In the application submitted on New Year’s Eve, Mastro, a partner at ul King & Spalding limited liability companyrequested a short lived restraining order and preliminary injunction to halt the introduction of congestion pricing from January 5.
“In addition to the motion for clarification/rehearing, New Jersey is currently seeking a TRO and a preliminary injunction, both pending resolution of the motion for clarification/rehearing and pending further proceedings ordered by the Court in this case. “New Jersey’s motion easily meets the criteria for granting an emergency injunction,” the motion stated.
“First, New Jersey far exceeds the reasonable probability of success of its NEPA claims. In fact, this has already been successful when it comes to the validity of this claim. The Court held that the FHWA’s failure to supply a “reasonable” explanation of New York and New Jersey’s “mitigation obligations” and “different treatment” was “arbitrary and capricious.”
“Furthermore, New Jersey is likely to succeed based on additional arguments on which the Court reserved judgment, including the FHWA’s analysis of alternatives, the failure to evaluate the tolling system actually adopted, and New Jersey’s request for clarification/reconsideration ” – the proposal continued. “The irreparable harm to New Jersey when the MTA switches to congestion pricing is clear.”
Gordon scheduled a hearing on the proposal on Friday afternoon in Newark – hours before congestion pricing was introduced.
More coming soon
U.S. Rep. Josh Gottheimer, D-Fifth District candidate for governor in 2025 ia a staunch opponent of congestion pricingsaid in a press release that it wasn’t the end result New York hoped for — “no matter how they play it.”
“After speaking with New Jersey’s legal team, the judge’s decision to send the case back to the states confirms what lots of us have been saying for years: New York has completely failed to handle or mitigate its carcinogenic pollution and traffic problems. the congestion tax will impact Jersey families,” Gottheimer said.
“New York and the MTA can try to take the case to a federal judge, but they won’t be able to get out of one truth: They can’t move forward without addressing the serious health and environmental impacts.”
Gordon’s ruling stated that “the matter is remanded to the FHWA by January 17, 2025, for the FHWA to take action consistent with this opinion.”
A spokesperson for the U.S. Department of Transportation told NJBIZ that the agency is reviewing the judge’s opinion. DOT oversees the FHWA.
Another variable is incoming administration.
President-elect Donald Trump has expressed strong opposition to congestion pricing, but has not yet addressed the latest rulings. He also didn’t signal what actions his administration would take when he assumed the presidency.
Trump will take office again on January 20, 2025 – just weeks after congestion pricing goes into effect.
