ICMA recently signed onto an Amicus Brief in the case of American Trucking Association v. the City of Los Angeles, the Natural Resources Defense Council, and the Sierra Club in a case questioning the authority of government to control its own property under the market participant exception to avoid preemption under the Federal Aviation Administration Authorization Act. The Court heard arguments on this case on April 23.

The dispute arises out of plans to expand the Port of Los Angeles. For 20 years the port's expansion plans were repeatedly thwarted by litigation from community and environmental groups (including NRDC) concerned about the port’s contribution to air pollution and about safety and health risks to surrounding neighborhoods caused by the large drayage trucks that service the port.  In an effort to address opposition and move forward, the port ultimately adopted a multifaceted Clean Air Action Plan. The plan introduced a requirement that any licensed motor carrier wishing to operate drayage trucks at the port enter into a standard “concession agreement” containing various financial and operational requirements.  ATA challenged several of the agreement’s requirements, arguing that they are preempted by federal transportation law.  (Background information obtained through Scotusblog.)

All of the Circuit Courts of Appeals that have addressed the case have found that the market participant exception applies to express preemption. ICMA and others who signed onto the amicus brief support the city of Los Angeles, as the off-street parking and placard provisions of the concession contract entered into by the Port of Los Angeles and licensed motor carriers are not preempted by the Federal Aviation Administration Authorization Act.