The New Jersey Business & Industry Association (NJBIA), along with the New Jersey State Chamber of Commerce and the Chemistry Council of New Jersey, has called on Governor Phil Murphy to veto or refrain from signing a bill that would introduce new regulations for the state’s railroad freight industry.
Senate Bill S-3389, sponsored by Senators Diegnan and Mukherji, is intended to improve freight rail safety. However, the business groups argue that its requirements could have negative effects on both safety and operations. They state that some mandates in the bill do not align with current railroad practices or recent technological advancements.
“Rail safety is critically important, and we welcome thoughtful engagement on this issue,” the organizations wrote in a letter sent this week. “(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,” they continued.
The proposed legislation includes a requirement for two-person crews when transporting certain hazardous materials or multiple loaded freight cars containing such materials. The business groups point out that many of these issues are already regulated at the federal level.
“Many of these matters are already governed by comprehensive federal regulations and are subject to federal preemption,” they wrote. “As a result, Senate Bill No. 3389 would create regulatory uncertainty, invite legal challenges, and complicate compliance efforts.
“In addition, the bill’s labor-related provisions risk generating confusion rather than clarity in safety oversight and enforcement.
“These concerns are particularly significant given New Jersey’s role as a national logistics hub. The Port of New York and New Jersey is the largest port on the East Coast and among the busiest in the nation,” they said.
NJBIA represents employers across sectors such as manufacturing, retail, wholesale, contracting, services and more throughout New Jersey according to its official website. It serves as one of the largest statewide employer associations in the United States according to its official website, offering advocacy services while promoting partnerships between businesses, government entities and academic institutions according to its official website.
Governor Murphy’s decision on S-3389 is expected before he leaves office later this month.
