WATSONVILLE — A little more than one month after the Santa Cruz County Regional Transportation Commission approved a contract allowing a new company to take over freight rail operations in Watsonville, the commission is facing a lawsuit.
The RTC on June 14 approved a 10-year contract with Minnesota-based Progressive Rail to operate its Santa Cruz Branch Railroad line, a 31-mile stretch that runs from Watsonville to Davenport.
That company might also run a passenger service along the line, if an ongoing Unified Corridor Study of the rail line proves successful.
That report is estimated to be released by the end of the year.
The lawsuit, filed this week by Santa Cruz County Greenway, alleges that the RTC entered the agreement without first evaluating the environmental impacts, as is required by state law.
The California Environmental Quality Act requires public agencies to evaluate environmental impacts of certain projects, and to take steps to limit impacts when possible.
According to Greenway, the RTC improperly determined this project was exempt from CEQA.
That organization has advocated for a bicycle and pedestrian path along the track.
“The commission’s approach is out of step with state law and with the promise to Santa Cruz County residents,” said Greenway Executive Director Gail McNulty. “Instead of waiting for the Unified Corridor Study to determine how this rail line could best serve our community, the commission agreed to significantly expand freight rail operations on the line without evaluating potential impacts.”
Progressive Rail spokesman Jason Culotta said the company does not comment on pending litigation.
On July 17, Progressive filed a notice of exemption with the U.S. Surface Transportation Board to operate in Watsonville under the name St. Paul & Pacific Railroad Company. That federal agency has 30 days to respond, Culotta said.
RTC spokeswoman Shannon Munz said that agency also does not comment on pending litigation.
But she added that Progressive Rail will continue the function of the rail line as it existed before the RTC acquired it in 2012.
In addition, Progressive preserves “all the options for the use of the line in the future,” she said.
“The commission is confident that it scrupulously followed the law when it approved the contract, and we look forward to the resolution of these issues in court,” Munz said.
Among other things, the lawsuit cites “significant environmental consequences” that could stem from the proposed agreement.
This includes noise impacts, exposure to diesel exhaust and public safety concerns.
The lawsuit also warns of environmental impacts from construction required to repair the tracks, and lists concerns about harm to wetlands adjacent to the tracks.
Since it gives control of future rail development to Progressive Rail, the agreement could hinder development of alternative transportation along the rail such as bus rapid transit and bike trails, the lawsuit states.
“Instead of offering hope for Watsonville residents who currently lose hours each day in Highway 1 gridlock, this agreement limits future commuting options for the rail corridor and creates yet another hurdle to highway improvement plans,” said Greenway board member Silvia Morales.
Also at issue in the lawsuit is that the agreement allows Progressive Rail to expand freight service on the line. Under the agreement, the company can operate “unlimited” freight service along the entire 31-mile line, which could include hazardous materials, Greenway said in a press release.
