STB Denies Petition to Revoke Channel Pacific Railroad Exemption in West Sacramento

On July 31, 2026, the City of West Sacramento, California, and the Sacramento-Yolo Port District filed a petition urging federal regulators to reject, revoke, or declare void ab initio a verified notice of exemption filed by Channel Pacific Railroad.

The dispute centers on approximately 2,132 feet of industrial rail track located within a terminal facility in West Sacramento, Yolo County, California. Channel Pacific Railroad (CHPR), a noncarrier, initially filed its verified notice of exemption under 49 CFR 1150.31 on May 12, 2026, to operate the track. According to the Surface Transportation Board’s published records in the Federal Register (91 FR 31318), the notice was served on May 28, 2026.

Following a Board decision on June 10, 2026, that waived the standard 60-day advance notice requirement under 49 CFR 1150.32(e), the exemption took effect on June 11, 2026. Because no party filed a request for a stay by the June 4 deadline, the railroad moved forward with its operational arrangements, executing a formal interchange agreement with Union Pacific Railroad Company that became effective on July 14, 2026.

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Local Government Challenges and Board Response

The Sacramento-area Government Entities (SGEs) argued in their July petition that the railroad’s initial filing omitted crucial material information, including details regarding plans to transfer petroleum products and asphaltic oil from ships to storage tanks and subsequently to trucks. The local entities asserted that these omissions were intended to mask the full scope of activities at the facility, which they described as occurring behind a gate where Greencycle Properties, LLC—CHPR’s noncarrier corporate affiliate and the track owner—maintains physical access to the rail lines.

CHPR countered that its filing fully complied with federal regulatory requirements by accurately describing the rail lines subject to the transaction. The railroad maintained that an exhaustive inventory of ancillary transportation infrastructure or dock lease negotiations is not required under federal rules, and noted that its classification of the site as a terminal complex correctly reflects its function as a multimodal transload facility.

On September 8, 2026, the SGEs attempted to file a request for leave to file a rebuttal to CHPR’s August 20 reply. However, under 49 CFR 1104.13(c), the Board’s procedural rules do not permit a reply to a reply, and the filing largely repeats or expands on arguments and information presented in the Petition. Consequently, the Board denied the SGEs’ request for leave to file the rebuttal.

Regulatory Standards for Revocation

Because the exemption was already in effect and no stay had been granted, the Board evaluated the municipal petition as a request for revocation under 49 U.S.C. 10502(d). Under this statute, an effective exemption may be revoked if regulation is necessary to carry out the Rail Transportation Policy.

The burden rests on the party seeking revocation to demonstrate that a notice contains materially false or misleading information, or that regulation is necessary to carry out the Rail Transportation Policy. Ultimately, the Board declined to institute a revocation proceeding and denied the petition.