In a pipeline operator’s appeal of a district court’s rejection of its challenge to a City of South Portland ordinance prohibiting bulk loading of crude oil onto vessels in the City’s harbor, the First Circuit Court of Appeals certified three questions to Maine’s high court concerning potential preemption of the ordinance by state law. The First Circuit said it would “sidestep the federal quagmire for the moment” in accordance with “well-settled constitutional avoidance doctrine.” Therefore, instead of addressing the domestic and foreign Commerce Clause and federal preemption claims raised by the operator, the First Circuit asked the Maine Law Court to weigh in on whether the Maine Department of Environmental Protection’s 2010 renewal license for the pipeline operator’s oil terminal facility was an “order” with preemptive effect under the Maine Coastal Conveyance Act (CCA), a statute that imposes a licensure requirement for oil transfers in and around state waters. If the renewal license was an order, the First Circuit asked the state court to address whether the CCA expressly preempted the ordinance challenged in this case. In addition, the First Circuit asked the Maine Law Court also to address whether the CCA impliedly preempted the local ordinance.

Pipeline operator's challenge to coastal city's local law prohibiting the loading of oil on tankers.

Portland Pipe Line Corp. v. City of South Portland

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First Circuit Certified State Law Preemption Questions in Case Challenging Local Ordinance Prohibiting Crude Oil Loading at Harbor

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First Circuit Certified State Law Preemption Questions in Case Challenging Local Ordinance Prohibiting Crude Oil Loading at Harbor

Policy instrument

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Fossil fuel

Economic sector

Finance