ST. PAUL, Minn. (Legal Newsline) - The State of Minnesota has overstepped its authority by placing extra charges on trains carrying hazardous materials, the Association of American Railroads says in a new lawsuit.
The AAR filed a lawsuit April 26 in federal court against Minnesota officials for allegedly violating federal laws by imposing an unfair fee on rail shipments of hazardous materials.
The AAR claims that the state's legislation requires railroads to pay 70% of an annual $4 million assessment, amounting to $2.8 million, into a state account used in part to fund training and equipment for responding to hazardous material incidents.
The AAR argues that this charge is uniquely imposed on railroads, with pipeline companies paying only 30% of the fees and companies that move hazardous materials by truck, ship, or barge paying nothing at all.
The AAR asserts that this Special Assessment is preempted by federal law as it discriminates against rail transportation and places a significant burden on railroads.
Andrew Davis of Stinson LLP represents the plaintiff.