Top News

Congress Continues to Work on the Highway Bill

The Senate appointed conferees to the Highway Reauthorization Bill on May 19, clearing the way for negotiations with the House to begin. As of this writing, conferees have held one meeting and are expected to meet again on June 23. Funding levels continue to be the major challenge to passage of a bill with price tags ranging from the Bush Administration's $256 billion proposal to the House's $278 billion bill and the Senate's $318 billion legislation.

In an effort to move forward, conferees have focused their discussions to date on non-controversial policy issues. Until an overall funding figure is decided upon, it is likely that they will continue this practice. With negotiations currently at a stalemate and TEA-21 set to expire at the end of June, Congress agreed to a one-month extension of the current transportation law.

ATA has identified 22 legislative priorities within the highway reauthorization debate and continues to follow this issue very closely. Regarding funding levels, ATA supports the highest funding level available without tax increases. To see a complete list of these priorities, click here, or contact Darrin Roth at (703) 838-1900 or droth@trucking.org.

Senate Amendment Blocks "Overtime Pay" Provisions of Department of Labor Rules

The Senate recently passed an amendment that would block certain provisions of Department of Labor (DOL) rules that critics believe will cut workers' overtime pay. This marks a defeat for the Bush Administration which had scaled back many of the rule's initial proposed changes in an effort to gain Senate support. The new regulations represent the first update in almost 50 years to overtime pay and according to DOL are needed to end lawsuits and clarify existing vague language. DOL estimates the new regulations would guarantee overtime protection for 1.3 million salaried workers who earn less than $23,600. For workers earning between $23,660 and $100,000, the department believes that few, if any, workers would lose their overtime under the new rules. An estimated 107,000 workers earning above that might lose overtime.

ATA will continue to monitor developments and keep you informed on any specific impact the new rules might have on the trucking industry.

Congress Eyes Postal Service Reform

Lawmakers are expected to take up postal overhaul bills this month, an issue that has been discussed for almost ten years. The House Government Reform Committee could consider legislation as early as next week while the Senate Governmental Affairs Committee is expected to act prior to the Memorial Day recess. Interested parties in the legislation include commercial mailers, postal competitors, consumer groups and labor organizations. Among options under consideration are granting the Postal Service greater pricing flexibility and the ability to offer lower rates to high-volume customers. Efforts will also be made to reduce labor expenses which currently account for 80% of all of the Postal Services expenses. Lawmakers have approximately six weeks to get the bills out of committee, onto the floors of both chambers, and through conference in order to pass legislation this year.

ATA continues to monitor this legislation for any potential impact that might occur regarding competition between the Postal Service and trucking companies.

Department of Energy

Energy Secretary Abraham Notes Improvements in Gasoline and Crude Oil Stock Levels

According to Department of Energy Secretary Spencer Abraham, the latest International Energy Agency data released indicates that oil stock levels are increasing. The Secretary is optimistic that OPEC's recent pledge to increase oil supplies will positively affect stock levels and prices. ATA's economic analysts also report a modest decline in diesel fuel prices with all major regions in the country showing decreases in prices for two consecutive weeks. The price of oil has also dropped $5 since the recent 21 year high of $42.33 per barrel to $37.28 per barrel.

Department of Labor

U.S. Department of Labor Announces Voluntary Ergonomics Guidelines for Retail Grocery Stores

OSHA Administrator John Henshaw recently announced the release of industry-specific guidelines for the prevention of musculoskeletal disorders (MSD's) in grocery stores. OSHA's voluntary guidelines are intended to build upon the progress that the grocery store industry has made in addressing the causes of these injuries.

The guidelines emphasize various solutions that have been implemented by grocery stores across the country and have been effective in reducing work-related injuries and illnesses. An "Implementing Solutions" section offers examples of ergonomic solutions that may be used to control exposure to ergonomic risk factors in grocery stores. OSHA will be working with trade, labor, and professional organizations to assure these guidelines are accessible and implemented where appropriate. OSHA's free consultation service will also be available to assist small employers.

ATA has established an ergonomics subcommittee comprised of member companies interested in this issue. Although the trucking industry has not yet been targeted by the guidelines process, members continue to be concerned that government agencies, scientists, and medical practitioners do not agree on a common or scientifically-valid definition of "ergonomic injury" or "work-related musculoskeletal disorder." Rather, the Administration is concentrating on developing industry-specific, voluntary guidelines that OSHA appears to be enforcing as if they were mandatory. While ATA disagrees with this approach, members are encouraged to remain supportive of the principles of ergonomics and continue to implement and refine workplace safety programs that make sense for their operations. In addition, members should continue to monitor OSHA's enforcement and guidelines activities. ATA members interested in getting directly involved in this policy should contact the ATA Safety and Operations Department.

Department of Treasury

DOT Announces $1 Million Grant for "Operation Lifesaver"

ATA's long-time partner Operation Lifesaver, Inc. (OLI) has been awarded $1 million by the Federal Railroad Administration of the Department of Transportation (DOT). Grant funds will be used to conduct public education and awareness programs about highway-rail grade crossing safety and the dangers associated with railroad trespassing. OLI was formed 30 years ago to help improve highway-rail grade crossing safety and trespass prevention. In that time, it has forged many valuable partnerships among railroad industry stakeholders and diverse public health and safety constituencies.

ATA has been highly supportive of the organization's efforts through the years and holds a seat on its Program Development Council. By creating multiple partnerships, outreach, public education and awareness, OLI's efforts have been recognized for the significant decrease in train-vehicle collisions.

U.S. Supreme Court Rejects Challenge to NAFTA Implementing Regulations

The United States Supreme Court, overruling the U.S. Court of Appeals for the Ninth Circuit, found that the Federal Motor Carrier Safety Administration (FMCSA) had not violated Clean Air Act provisions when it promulgated regulations that provided a regulatory framework under which Mexican trucks can operate in the United States under the North American Free Trade Agreement (NAFTA).

The Ninth Circuit had held that the FMCSA should have prepared an Environmental Impact Statement (EIS) analyzing the broad effect on the environment of increased operations by Mexican trucks in the United States. The Supreme Court rejected that conclusion, finding that any increase in operations by Mexican trucks in the United States would not be the result of the FMCSA regulations, but rather would result from President Bush's lifting of the moratorium in 2002 that prevented Mexican trucks from cross-border operations.

The Court explained that the purpose of an EIS is to assist an agency understand the consequences of its actions on the environment so that it "can take actions that protect, restore, and enhance the environment." The Court found that in this situation, preparation of an EIS "would serve no purpose" because the FMCSA "lacks discretion to prevent these cross-border operations." The Court concluded that "[s]ince FMCSA has no ability categorically to prevent the cross-border operations of Mexican motor carriers, the environmental impact of the cross-border operations would have no impact on FMCSA's decision making - FMCSA simply lacks the power to act on whatever information might be obtained in the EIS."

After hearing the decision, ATA President and CEO Bill Graves stated, "Today's decision represents another important step in the continued growth of the American economy and the trucking industry. By upholding actions taken by President Bush and the U.S. Department of Transportation in support of NAFTA, the Supreme Court has opened the door for the continued improvement of the North American freight transportation system which will help increase trade between the United States, Canada and Mexico in a safe, efficient and seamless manner."

ATA CHALLENGES NEW MEXICO IDENTIFICATION PERMIT AND FEE

ATA filed an original action before the New Mexico Supreme Court challenging New Mexico's reinstitution of an identification card (and attendant fee) requirement for motor carrier vehicles subject to the State's weight- distance tax. In 2000, faced with a challenge brought by the ATA Litigation Center on behalf of C.R. England, New Mexico agreed to eliminate a vehicle-specific weight-distance tax identification card and $6.00 per-card fee and replace it with a single motor carrier identification that could be reproduced by the carrier and placed in its vehicles.

In 2003, however, the New Mexico Legislature required the State's Department of Revenue to reinstitute the vehicle-specific permit, now referred to as the "Weight-Distance Tax Identification Permit,"and authorized it to charge a fee to fund the cost of issuance. The Department of Revenue recently adopted regulations, effective July 1, 2004, that create a vehicle-specific permit (motor carriers will be issued blank permits on non- reproducable paper that they are to complete with specific vehicle information and then carry in that vehicle) and assesses a $2.00 per-permit charge.

ATA contends in its petition to the Supreme Court that the $2.00 charge, like all flat annual fees, violates the Commerce Clause because it inherently costs interstate motor carriers more per-activity in New Mexico than local motor carriers. ATA also argues that flat state charges, like the $2.00 permit fee, expose interstate motor carriers to a cumulative burden, subjecting them to possible flat fees in many states, even though their level of operations may be no more than a motor carrier that operates in a single state and, therefore, only has to pay one fee.

ATA is also challenging, as an undue burden on interstate commerce, the Identification Permit requirement itself, contending that the current motor carrier identification document is an equally effective regulatory tool and as such must be utilized as a less burdensome alternative.