Railroad trade group sues New Jersey to block safety law

By Jonathan Stempel

March 30 (Reuters) – A trade group representing the largest U.S. railroads sued New Jersey on Monday, seeking to block a new law that it said imposes “severe restrictions” and unconstitutionally intrudes on federal government authority over railroad safety.

The complaint filed in the Trenton, New Jersey federal court by the Association of American Railroads challenged Senate Bill 3389, signed into law by Democratic former Governor Phil Murphy shortly before he left office in January.

Railroads challenged five provisions, including requiring that trains carrying hazardous materials have two-person crews, and creating a state-administered “wayside detector” program to monitor wheels, railcars and track. Another provision lets labor representatives inspect railroad property for possible hazards.

“New Jersey is impermissibly attempting to assert its own regulatory authority over an area Congress has placed under exclusive federal control,” amounting to an unconstitutional “taking” of property, the trade group said.

The defendants include New Jersey Attorney General Jennifer Davenport and Transportation Commissioner Priya Jain. Neither office had an immediate comment after market hours.

Monday’s lawsuit seeks an injunction against enforcing the New Jersey law.

Critics of the industry sometimes argue it favors fewer regulatory burdens in pursuit of greater profitability.

The trade group represents Class I U.S. railroads including Berkshire Hathaway-owned BNSF, Canadian National Railway, Canadian Pacific Kansas City, CSX, Norfolk Southern and Union Pacific.

CSX and Norfolk Southern operate in New Jersey, the complaint said.

(Reporting by Jonathan Stempel in New York; Editing by Chris Reese)