Opinion ID: 384692
Heading Depth: 1
Heading Rank: 2

Heading: Operational Feasibility

Text: 6 In 1973 the ICC issued a policy statement requesting applicants for new authority to demonstrate the operational feasibility of their proposed services. General Policy Statement Concerning Motor Carrier Licensing Procedures (Operational Feasibility), 38 Fed.Reg. 32, 856 (1973). Specifically, applicants were requested to show how they intended to return equipment from proposed destination points to proposed origination points. If an applicant admitted that the proposed service would result in the movement of empty trucks (deadheading), then the applicant was directed to specify the extent of empty operations by mileage and number of vehicles and to state where those operations would occur. 7 Melton contends that the Commission's finding of operational feasibility in this case was unsupported by substantial evidence. The Commission, unfortunately, has never identified the quantity or quality of evidence necessary to establish operational feasibility. This case, however, bears scant resemblance to cases in which applicants failed to show operational feasibility. On the record before us, we conclude that the substantial evidence requirement was satisfied. 8 Melton relies primarily on Guy Heavener, Inc. Extension-Sand, 129 M.C.C. 168 (1977), and American Farm Lines, Inc. Extension-33 States, No. MC-129908 (Initial Decision of ALJ Aug. 31, 1977). In Guy Heavener the Commission found that the applicant had not proved operational feasibility because no traffic studies or other evidence was presented to show actual movements back to the point of origin. 129 M.C.C. at 180. Similarly, in American Farm Lines, the applicant introduced no traffic studies or other information to show the number of loads terminating in any of the origin or destination states. The applicant, moreover, lacked permanent authority to operate in the proposed destination states and gave no information about how it intended to retrieve trucks from those states. 9 In this case, all three of the applicants possessed prior authority to carry goods from the proposed destination states to the proposed origination states. All three stated that the proposed services would complement their existing operations. They believed that a grant of the applications would balance their operations and actually decrease the number of empty miles. 8 Machinery Transports and Sawyer submitted traffic studies, showing a significant number of loads originating in New England, Middle Atlantic, and Midwestern states (the proposed destination points) and terminating in the South (the proposed origination point), to substantiate these claims. 9 While Tri-State apparently did not submit a traffic study, it did offer, in addition to the evidence described above, a statement estimating that deadhead miles under the proposed service would be less than ten percent of total trip miles. J.A. at 220. We find this evidence significantly weightier than that tendered in any case in which the Commission denied an application for failure to prove operational feasibility. There is no indication that the Commission has ever required more evidence of operational feasibility than that presented in this case. Under Commission precedent, therefore, the finding of operational feasibility is adequately supported. 10 Because we agree that substantial evidence supports the Commission's finding, we need not pass upon other defenses the Commission presents to Melton's challenge. 10 We are troubled, however, by one of the positions the Commission presses. The Commission argued before this court that a showing of operational feasibility is not part of the applicant's prima facie case; rather, the showing is intended merely to aid the Commission in reaching its ultimate conclusion whether grant of the new authority would further the public convenience. The Commission contends it may waive the necessity of showing operational feasibility, therefore protesting carriers may not invoke the policy to attack the grant of an application. 11 Commission decisions display insecurity concerning the contours of the operational feasibility policy. On at least two occasions, the Commission has stated that proof of operational feasibility is not essential where an applicant shows a need for a service and backhaul traffic is unavailable. Timlaph Corp., 129 M.C.C. 367, 380 (1978); MDI, Inc., Long Prairie, MN Contract Carrier Application, 129 M.C.C. 346, 353 (1978). One of those decisions, however, admonished the applicant to adhere to the policy statement requirements in the future. Timlaph, 129 M.C.C. at 380. The policy statement itself is mandatory in tone. Yet the Commission has not offered any precise statement of the criteria it uses to gauge operational feasibility. 12 Unless the Commission comprehensibly shapes its operational feasibility policy, applicants for new authority will lack guidance on the evidentiary showing they must make and protesting carriers may find ambiguities in the policy an inviting basis for review petitions to this court. We therefore expect the Commission to clarify whether a showing of operational feasibility is a prerequisite to qualification for new authority and, if it is, the nature of the evidence necessary to make that showing.