California Hazmat Charge
Announcement Number: CN2016-25
Categories: General Announcements
Posted Date: October 19, 2016
To Our Customers,
In June 2015, California passed a law imposing a charge on owners of certain hazardous materials transported by rail. The regulations became final on June 20, 2016, and the law requires collection of the charge beginning Nov. 13, 2016.
For shipments of the 25 listed hazardous commodities provided in the regulations, the charge is set at $45 per "railcar" (including intermodal), plus a collection fee. Railroads are required to collect the charge and remit it to the California Board of Equalization. The charges collected are designated for the purchase of regional hazmat equipment along with training for and responding to both rail and truck incidents.
Union Pacific has opposed this new charge in the California legislature, and Union Pacific and BNSF Railway filed a joint federal lawsuit on July 29, 2016, challenging the charge as a violation of numerous federal laws. The court heard arguments on Oct. 13, 2016, but has not yet offered a ruling.
Unless the court directs otherwise or the state extends the deadline, on Nov. 13, the law requires Union Pacific to collect $45 per rail car for shipments of the listed hazardous commodities transported in California. In addition, Union Pacific will bill a $2.25 collection fee for each of those shipments as authorized by statute. We oppose this hazmat charge and will provide updates as needed.
If you have any additional questions, please contact your Union Pacific representative.
Hazardous Material Commodity
Ammonium Hydroxide; also shipped as Ammonia Solutions
2073, 2672, 3318
1748, 2208, 2880, 3485, 3486, 3487
Corrosive Liquid, Basic, Inorganic. N.O.S.
Diesel Fuel; also shipped as Fuel Oil; also shipped as Gas Oil
Environmentally Hazardous Substances, Liquid, N.O.S.
Ethanol; also shipped as Ethyl Alcohol
Gasoline; when shipped as Flammable Liquid, N.O.S.; when shipped as Hydrocarbons, Liquid, N.O.S.; also shipped as Gasohol; also shipped as Motor Spirit; also shipped as Petrol
1203, 1993, 3295
2014, 2015, 2984, 3149
Liquefied Petroleum Gas; also shipped as LPG; also shipped as Liquefied Gas, Flammable, N.O.S.
Methanol; also shipped as Methyl Alcohol
Methyl Ethyl Ketone
Petroleum Crude Oil; also shipped as Petroleum Oil; also shipped as Oil, Petroleum
1671, 2312, 2821
Potassium Hydroxide; also shipped as Caustic Potash
1075, 1077, 3138
Sodium Hydroxide; also shipped as Caustic Soda
1823, 1824, 3320
Sulfuric Acid; also shipped as Sulphuric Acid
1830, 1831, 1832, 2796