Purpose of the Bill

The purpose of the bill is to establish a sunset for the financial assessments related to pipeline safety that are currently imposed on railroad and pipeline companies in Minnesota.

Main Provisions

• Annual Assessment: The bill continues to require the Commissioner of Public Safety to conduct annual financial assessments. These assessments are imposed on railroad and pipeline companies that operate within the state.

• Assessment Allocation:

  • Railroad Companies: They are responsible for covering 70% of the total annual assessment amount. This cost is divided equally among rail carriers based on the number of route miles they operate in Minnesota.
  • Pipeline Companies: They are responsible for covering 30% of the total assessment amount. This cost is divided based on the volume of oil and hazardous substances transported annually within Minnesota.

• Incident-Related Costs: Beyond the regular assessments, any rail carrier or pipeline company that is involved in an incident requiring a significant response will bear all costs associated with the state and local government’s post-incident review and analysis.

Significant Changes to Existing Law

The bill proposes an amendment to the existing law by potentially setting a sunset clause on the described financial assessments, although specific details of the sunset are not included in the section provided. This suggests a future cessation date or reevaluation of these assessments.

Relevant Terms

• Pipeline safety
• Railroad and pipeline companies
• Public safety assessments
• Hazardous substances transportation
• Post-incident costs