California Hazmat Charge Update

Announcement Number: CN2016-31
Categories: General Announcements
Posted Date: December 7, 2016

To Our Customers,

The State of California has voluntarily agreed to a court order, which was issued on Dec. 5, 2016, forbidding the State from collecting California Hazmat Charges retroactively if, down the road, the State wins its appeal to restore the Charge. What does this mean for affected UP customers? It means that, if the courts later decide to reinstate the California Hazmat Charge, the Charge will only be assessed prospectively on shipments from the date of the future court ruling. Therefore, Union Pacific has removed its Nov. 16, 2016 tariff update stating that we reserved the right to collect charges for shipments that occurred no earlier than Dec. 7, 2016. Union Pacific will continue to fight against this law, but we are pleased to confirm that, even if we are not successful in the end, California Hazmat Charges to our customers will not be retroactive.

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