Channel Pacific Railroad (CHPR), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to operate a rail line located within a terminal facility (the Facility) in West Sacramento, Yolo County, Cal. (the Line). CHPR states that the Line is currently unregulated private track and that the Line and the Facility are owned by CHPR's corporate affiliate, Greencycle Properties, LLC (Greencycle), also a noncarrier.^[1] The Line consists of two tracks that begin at a point of connection with a rail line owned by Union Pacific Railroad Company (UP) at the northern boundary of the Facility immediately south of Channel Drive and extend southward to ending points immediately north of the Sacramento River Deep Water Ship Channel for a combined total of approximately 2,132 linear feet.^[2] The Line has no mileposts.

The verified notice states that CHPR and Greencycle have reached an agreement pursuant to which CHPR will acquire the right to provide common carrier service over the Line. CHPR states that, under the agreement, it will provide comprehensive, railroad-oriented transportation services within the Facility.

CHPR certifies that its agreement with Greencycle contains no restrictions on CHPR's ability to interchange with third-party connecting railroads.

CHPR also certifies that its expected projected annual revenues as a result of this transaction will qualify it as a Class III carrier and that its annual revenues may exceed $5 million. Pursuant to 49 CFR 1150.32(e), if a carrier's projected annual revenues will exceed $5 million, it must, at least 60 days before the exemption becomes effective, post a notice of its intent to undertake the proposed transaction at the workplace of the employees on the affected lines, serve a copy of the notice on the national offices of the labor unions with employees on the affected lines, and certify to the Board that it has done so. However, CHPR argues that “no such notice would be required here.” (CHPR Notice 4-5.) CHPR's argument will be addressed in a separate decision, in which the Board will establish the effective date of the exemption.

If the verified notice contains false or misleading information, the exemption is void ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. The filing of a petition to revoke will not automatically stay the effectiveness of the exemption. Petitions for stay must be filed no later than June 4, 2026.

All pleadings, referring to Docket No. FD 36932, must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a copy of each pleading must be served on CHPR's representative, Robert A. Wimbish, Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 800, Chicago, IL 60606.

According to CHPR, this action is categorically excluded from environmental review under 49 CFR 1105.6(c) and from historic preservation reporting requirements under 49 CFR 1105.8(b).

Board decisions and notices are available at www.stb.gov.