California Hazmat Charge Update

Announcement Number: CN2016-28
Categories: General Announcements
Posted Date: November 17, 2016

To Our Customers,

This note is a follow-up to our Oct. 29, 2016, communication in which we shared that a federal judge had issued a temporary injunction against plans by the state of California to collect a $45 per rail car charge for the transportation of certain hazardous commodities in California. The judge finalized the injunction order on Nov. 15. The charge, the amount of which can change at any time, was set to go into effect on Nov. 13. Union Pacific remains confident in its position that this law violates numerous federal laws, and we continue to fight against it.

Union Pacific has issued a tariff update to reflect the possibility that we may need to collect these charges later. Any later collection would be for charges for shipments that occurred no earlier than Dec. 7, 2016. If you would like an estimate of hypothetical charges under this law, please contact your Union Pacific representative.

We will continue to provide updates as the case proceeds. If you have any questions, please contact your Union Pacific representative.