The Association of American Railroads is suing the state of New Jersey over a recently enacted bill that NJBIA and other business groups opposed due to its duplicative and potentially harmful requirements on the railroad freight industry in the state.
The bill, which among other provisions requires two person-crews for trains carrying hazardous materials, was signed into law by Gov. Phil Murphy on his last day in office.
The suit, filed Monday in in U.S. District Court for the District of New Jersey, said aspects of the legislation “attempt to regulate core aspects of interstate commerce … in ways that infringe on the federal government’s exclusive authority in this area and that violate the Constitution and laws of the United States.”
The suit says three other portions of the law represent the state’s attempt to “assert its own regulatory authority over an area Congress has placed under exclusive federal control.”
They include:
- A provision giving union representatives the right to enter railroad property to conduct inspections.
- A requirement that railroads regularly submit bridge inspection reports.
- A requirement for the state Department of Transportation to apply federal emergency-response rules for passenger trains to freight trains.
The suit asks that the court issue an injunction preventing the state from enforcing the bill and declare that it violates federal law, as well as “any other relief this court deems just and proper.”
The law is scheduled to take effect in January 2027.
In January, NJBIA, the New Jersey State Chamber of Commerce and the Chemistry Council of New Jersey asked Gov. Murphy to veto or not sign Bill S-3389 (Diegnan, D-18; Mukerji, D-32) into law.
The groups said it would “undermine and not enhance” safety by imposing arbitrary mandates that “fail to reflect modern railroad operations and technological investments.”
“Rail safety is critically important, and we welcome thoughtful engagement on this issue,” the groups wrote in a letter . “(But) provisions such as rigid train-length limitations and mandated crew sizes would significantly increase operational costs and require trains to be broken up at New Jersey’s borders.
“These disruptions would heighten safety risks, delay freight movement, and impair supply chains that are essential to New Jersey’s economy, including those supporting energy production, chemical manufacturing, agriculture, and consumer goods.
“Ultimately, these costs would be passed on to businesses and communities across the state,” the business groups wrote.
