HOUSE OFFER COULD BREAK HIGHWAY
BILL GRIDLOCK
In an attempt to break the legislative
gridlock that has stalled the highway bill, House
Republicans sent Senate conferees a highway reauthorization spending
proposal authorizing
$286 billion in guaranteed funding and $296 billion in contract
authority July 12.
The House offer would also guarantee states a
minimum 93 percent rate of return on
federal highway user fee revenue. While this is less than the 95
percent minimum guarantee
offered under the Senate bill, it is more than the 90.5 percent minimum
return that states now
receive.
A conference meeting previously scheduled for
July 13 has been postponed indefinitely.
Earlier this month, the Senate offered a funding level of $318 billion.
However, only $301
billion of that amount was guaranteed. This means that the House and
Senate are now about
$15 billion apart in terms of guaranteed spending proposals placed on
the table.
The White House, which has threatened to veto any bill over $256
billion, has not yet taken
a position on the House offer. The House-passed bill funds the program
at $275 billion.
During a July 7 meeting, conferees approved several largely non-
controversial items that
are not revenue-related. Senate Minority Whip Harry Reid (D-Nev.), one
of the Democratic
During a July 7 meeting, conferees approved several largely non-
controversial items that
are not revenue-related. Senate Minority Whip Harry Reid (D-Nev.), one
of the Democratic
conference leaders, said he could not accept a bill with less than $318
billion over six years.
One item that was presented but not fully discussed was the
possibility of going to a five-
year bill, since it is likely that the current law, TEA-21, will simply
be extended until the end of
the fiscal year.While the proposal would reduce the bill's overall
price tag, annual spending
levels would reflect those in the Senate proposal.
Another issue that was brought up but left unresolved was a proposal
by Rep. Jerrold
Nadler (D-N.Y.) to move from a cent-per-gallon fuel tax to an ad
valorem tax, which would tax
fuel on a percentage basis.
SIGNIFICANT IMPROVEMENT TO HAZMAT
REGISTRATION RULE
On June 30, 2004, the Federal Motor Carrier
Safety Administration published a final rule requiring a new federal
safety permit for carriers that transport certain highly hazardous
materials. Motor carriers transporting explosives, certain radioactive
materials, toxic-by-inhalation substances, and liquefied natural gas above the listed
threshold quantities must comply with the new permit requirements by January 1, 2005. To obtain
a permit, trucking companies must have a "satisfactory" safety rating, acceptable
crash and out-of- service rates, a compliant security plan, and a driver security
training program. Carriers must also comply with specified operating conditions, including a new
communication requirement and written route plans for explosives and radioactive
materials. Motor carriers seeking the new permit must apply on Form MCS-150B. To
access a copy of the Federal Register notice
click here.
The final rule has been
significantly improved from the version originally proposed,
which would have required communication equipment to be installed on
the truck, drivers to check-in every 2 hours the material is in transit, and
written route plans that would have to accompany each of the shipments subject to the rule. ATA
was, however, disappointed that FMCSA did not take this opportunity to preempt the
more than 40 existing state hazardous materials permits and to combine this new
federal permit with the existing RSPA hazmat registration program. For additional
information, ATA members may contact Rich Moskowitz at 703-838-1910 or
rmoskowitz@trucking.org.
ATA ISSUES POSITION STATEMENT ON SAFESTAT SYSTEM
ATA today released a new "Position Statement"
on the Federal Motor Carrier Safety Administration's (FMCSA) Motor Carrier
Safety Status Measurement System, commonly referred to as SafeStat.
In the Statement, ATA highlights some of the documented flaws in the
system, and strongly recommends that business
decisions should not be based upon or made using SafeStat scores, or on
the underlying data. ATA also compliments FMCSA for taking numerous
positive steps to improve this important
system since the U.S. Department of Transportation's Inspector General
reported on the "material weaknesses" in it. The purpose of the ATA statement
is to communicate to ATA members, the broader trucking industry, freight
shippers, insurance carriers, the courts, and the media where ATA stands on
the system and its scores.
For more information, please contact the ATA Safety, Security & Operations
Department at 703-838-1847.
|
Department of Labor
LABOR ANNOUNCES JOB NUMBERS FOR JUNE
The Department of Labor reported that the
economy created 112,000 jobs in June, which was well below expectations.
The government also issued downward revisions for the previous two months.
So far this year, the economy has added close to 1.3 million jobs.
The unemployment rate remained unchanged at 5.6%.
Manufacturing employment lost 11,000 jobs in June, after creating jobs
for four consecutive months. On a more positive note, for-hire motor carriers
hired 6,000 workers in June, for a total of 21,000 in the first half 2004.
New orders for manufactured goods slipped 0.3% in May, but more
importantly,compared to May 2003, new orders are 11.3% higher. Also year-to-date,
new orders are 10.9% higher than the same period in 2003. This is a positive sign for
trucking since new orders now will lead to production and truck movements in
the future.
|
FEDERAL COURT OVERTURNS NEW HOS
RULES: ATA INTERPRETATION
The United States Court of Appeals for the District of Columbia Circuit issued a decision today
vacating (throwing out) the new Hours-of-Service ("HOS") rules put into place by the Federal
Motor Carrier Safety Administration ("FMCSA) in January 2004. Importantly, the Court's
decision is not immediately effective. Under the Court's rules, FMCSA has 45 days to seek a
rehearing and until that time period runs (possibly extended to 52 days or until the Court's official
opinion ["mandate"] is issued), the decision does not take effect. FMCSA officials have
confirmed that point and announced that they will continue enforcing the new HOS rules
during that time frame. In addition, under the Court's rules, FMCSA may seek a greater delay
in the effective date of the decision (for 90 days or more) by asking the Court to issue a stay of its
decision. ATA will encourage FMCSA to seek such a stay to minimize the confusion (and
adverse safety consequences) that would result from putting the old HOS rules back in place for
some interim period.
The D.C. Circuit's decision to vacate was based upon the Court's view that FMCSA had not
fulfilled a statutory mandate to consider "the impact of the rule on the health of drivers." The
Court explained that FMCSA may conclude that the new rules do not cause driver health
problems or that any such problems are outweighed by other factors (cost issues, etc.), but that it
was incumbent upon the agency to affirmatively address those issues and explain its conclusions.
The agency's failure to expressly consider driver health consequences seems more of a
technicality than a significant flaw in the rules. It is hoped that the agency will be able to readily
show that the fatigue-reducing measures in the new rules will also have a beneficial effect on
driver health.
The Court also expressed "concerns" with other aspects of the new HOS rules, but specifically
refused to enter a "final decision" as to the validity of those provisions. Instead, the Court
outlined the concerns it had with each provision, explaining specifically its problem with
FMCSA's reasoning, justification, or scientific support for various elements of the new rules.
The Court raised these types of concerns with respect to the increase of driving time from 10 to
11 hours, retention of the sleeper-berth exception to uninterrupted rest periods; the failure to
mandate electronic on-board recorders; and the 34-hour restart provision. The Court's discussion
of its concerns and how those concerns could be alleviated by the agency, should provide
FMCSA a roadmap for developing better justifications for the choices it made.
A number of possible procedural alternatives are open to the FMCSA for correcting the
deficiencies outlined by the Court. ATA will encourage the agency to attempt to keep the new
HOS rules in place beyond the initial 45 to 52 day period while it is reconsidering the HOS rules
and the rationale for changes it made in the new rules. ATA believes that switching back and
forth between the old and new rules would be confusing to the point of adversely affecting
highway safety. ATA will keep the industry informed about future developments regarding
FMCSA's handling of this matter.
In the meantime, a hearing before a subcommittee of the House Transportation and Infrastructure
Committee regarding how the new HOS rules are impacting highway safety that was scheduled
for July 20, 2004 has been postponed indefinitely. To obtain a copy of the
Court's opinion
click here.
For more information contact Robert Digges, Jr. at (703) 838-1889 or Dave Osiecki at (703) 838-
1853.
|
