2004 Legislative Updates
2004
I. Reauthorization Deferred to the Next Congress
The lame-duck session of the 108th Congress has failed to complete work on the conference that would reconcile differences-primarily on overall funding levels--between the bills reauthorizing TEA-21 leaving it for the new Congress to take up next year.
The Senate-passed bill provided for $318 billion in overall contract authority (from the Highway Trust Fund) and $301 billion in guaranteed funding. The House bill provided for $299 billion in overall contract authority and $284 billion in guaranteed funding. The next deadline is May 31, 2005, which marks the end of the eight month extension of TEA-21 that Congress passed on September 30, 2004.
While Chairmen of the Committees with jurisdiction over Reauthorization in both the Senate and House have said they will introduce the same legislation that passed their respective bodies in this session of the Congress, the entire process must start all over again. This means that as reauthorization legislation takes shape in the new Congress it may be revised from that enacted by the House and Senate this year. There also will be some changes in the staff of the key Committees. Some of these changes will occur because of term limits for Committee Chairmen in the Senate. Senator McCain, current Chairman of the Senate Commerce Committee, will be replaced by Senator Ted Stevens of Alaska. All of this means that CVSA will have to reaffirm its motor carrier safety reauthorization policies in the new Congress.
II. Transportation/Treasury Appropriations Bill for Fiscal Year 2005
This measure was part of the omnibus appropriations bill that funded nine other federal departments and was passed in the lame-duck session the week before Thanksgiving. The omnibus bill, however, is temporarily held up in the Congress pending further action to remove a controversial provision regarding accessibility to federal income tax returns. This matter is expected to be resolved next week when the Congress returns for another lame-duck session to attempt final passage of the Intelligence Reform bill that resulted from the 9/11 Commission recommendations. A CR remains in effect extending 2004 funding levels through December 8, 2004.
The final 2005 DOT Appropriations Conference Agreement retained key provisions from the bills reported out of the House and Senate Appropriations Committees that we reported on in the October 12, 2004 CVSA Legislative Update. These provisions include funding for CDL, border, and new entrant state grant programs despite the fact that Reauthorization has not yet passed.
Overall 2005 funding approved for FMCSA is $447,547,000 million* of which $240,200,000 is specifically directed to the states as follows:
| 2004 Enacted | 2005 Enacted | |
| State Core Grants | 129,560,000 | 133,350,000 |
| Incentive Grants | 11,039,000 | 7,100,000 |
| High Priority Grants | 8,450,000 | 9,450,000 |
| New Entrants | 24,900,000 | 30,200,000 |
| State Training & Administration | 2,100,000 | 2,100,000 |
| CDL State Grants | 21,000,000 | 20,000,000 |
| State Border Grants (Northern & Southern) |
32,000,000 | 33,000,000 |
| PRISM | 5,000,000 | 5,000,000 |
| Total | 234,000,000 | 240,200,000 |
(* All of the 2005 amounts are subject to a .80 recission. This is an across-the-board reduction that applies to the entire omnibus bill that became necessary in order to finance last minute spending additions to the overall bill. The total amount for all FMCSA projects, programs and activities is reduced to $443,967,000 from $447,547,000.)
Once the 2005 Omnibus Appropriations bill clears the Congress and the President signs it, the above 2005 funding levels will be available through May 31, 2005 (8 months or 2/3rds of the fiscal year) when the current eight month extension of TEA-21 is due to expire. Beyond that, it will take passage of the overall Reauthorization bill or another extension of TEA-21 to release the remaining balance (1/3) of the 2005 Fiscal Year funding. Therefore, once again, funds can only be released by FMCSA on an incremental basis due to lack of a permanent Reauthorization bill.
Key excerpts from the final Omnibus Conference Report language are as follows:
"New Entrant Program-The conference agreement provides a total of $30,200,000 for the new entrant program…The conferees continue the program structure developed in Fiscal Year 2004 that provides the majority of funding for this program in the form of state grants, therefore, only $3,000,000 is for (FMCSA) oversight and other Federal responsibilities. The conferees direct that FMCSA report to both the House and Senate Committees on Appropriations by March 1, 2005, regarding the use of this Federal portion of the program, and an explanation of the new entrant audit procedure improvements and plans to maximize the program's safety benefits and to enhance carrier compliance.
"Safety Status Measurement System (Safestat)-The conferees retain the House language directing FMCSA to implement the Inspector General's recommendation in its February 13, 2004 report Improvements Needed in the Motor Carrier's Safety Status Measurement System.
House Language: " The Committee directs the FMCSA to implement the IG's recommendations in its February 13, 2004 report, "Improvements Needed in the Motor Carrier Safety Status Measurement System." These recommendations are designed to correct the weaknesses in the "SafeStat" data reported by states and motor carriers and improve FMCSA's processes for correcting and disclosing data problems. The IG recommends that FMCSA: (1) revalidate the SafeState model; (2) improve systems for correcting inaccurate data and tracking of corrective actions; (3) expand cautions on the internet regarding SafeStat's use; and (4) establish a plan to improve and ensure the quality of SafeStat data."
"Compliance Reviews and Safety Audits-The conferees reiterate the House and Senate reporting requirements regarding compliance reviews and safety audits with a report date (to Congress) of February 7, 2005.
House Report: "The Committee notes the negative effect that the implementation of the new entrant safety assurance program and the security site visits and security components of the compliance review adopted since the terrorist attacks of September 11, 2001 have taken on the number of compliance reviews the FMCSA has completed. The number has fallen from a high of 11,340 in 2001 to 8,924 in 2002. This means that more motor carriers are operating either without a safety rating or with an outdated safety rating. The Committee expects the number of reviews to significantly increase as states implement the new entrant program, first funded in fiscal year 2004. The Committee directs FMCSA to submit a report to the House and Senate Committees on Appropriations detailing the reasons for the decline in compliance reviews since 2001, and including specific contributions and the degree of each contribution. In addition, the report should include descriptions of issues or policies that may impact the number of compliance reviews in the future, and a plan to overcome current problems."
Senate Report: "The Committee is concerned that the number of federally conducted compliance reviews and enforcement actions has decreased significantly since the new entrant program commenced and directs FMCSA to ensure that it reverses this trend consistent with the objectives and goals of MCSIA. The Committee also directs FMCSA to work closely with the States to promote their continued participation in a vigorous compliance review program. In order to monitor its progress, the Committee directs FMCSA to report to the House and Senate Committees on Appropriations on the number of completed compliance reviews and new entrant safety audits with the agency's fiscal year 2006 budget request."
"Research and Technology(FMCSA Administrative Expenses)-Within amounts for research and technology, the conferees direct $500,000 for the testing and evaluation of both stationary and mobile radiation detection devices.
"Commercial drivers license(CDL) program-The conference agreement provides $21,000,000 for the commercial driver's license improvement grants program (state grants), and retains the directive in both House and Senate reports directing FMCSA to initiate a rule requiring all CDL applicants to provide proof of citizenship or legal presence in the U.S., consistent with the Inspector General recommendation. FMCSA shall initiate a rulemaking by May 30, 2005. The conference agreement retains the House language encouraging FMCSA to improve all aspects of the CDL program, including sponsoring pilot projects to ensure drivers who have been convicted of a disqualifying offense do not operate during the period of suspension or revocation, and, as proposed by the Senate, $200,000 to study the correlation between driver history and future safety violations.
House CDL language: " Within the funds for the CDL program, FMCSA should continue working with American Association of Motor Vehicle Administrators, the Commercial Vehicle Safety Alliance, lead MCSAP agencies, and licensing agencies to improve all aspects of the CDL program. In addition, FMCSA should consider sponsoring another pilot project involving law enforcement and driver licensing agencies to explore new and innovative ways to ensure that drivers who have been convicted of a disqualifying offense do not operate during the period of suspension or revocation. Finally, FMCSA should continue to support the judicial and prosecutorial outreach effort."
III. Utility Hours-of-service
The Conference Agreement retains the provision in the 2004 Appropriations bill that prohibits the use of federal funds to enforce the current hours-of-service rules issued in April 2003 and implemented January 4, 2004. An earlier version of the House bill as reported out of the House Transportation/Treasury Appropriations Subcommittee extended the ban to any hours-of-service rules that would include the new rule that FMCSA is expected to issue pursuant to the July 16 D.C. Circuit Court decision. This extension was stricken on the House floor. The Senate bill retained only the 2004 ban which then became the 2005 Conference Agreement provision as well.
2004
I. Reauthorization
TEA-21 Extended for Another Eight Months
On September 30, the Congress passed, and the President signed into law, an eight month extension of the TEA-21 Highway Act. As reported in our News Update of October 1, this extended the current hours-of-service rules until FMCSA develops a new set of rules, or September 30, 2005, whichever comes first.
The extension bill became necessary because House-Senate conferees were unable to resolve an impasse over the total amount of funding for highways, transit, and highway and motor carrier safety programs over the next 6 years. The Senate passed bill provided for $318 billion in overall contract authority (from the Highway Trust Fund) and $301 billion in guaranteed funding. The House bill provided for $299 billion in overall contract authority and $284 billion in guaranteed funding.
Reauthorization Action Possible in Lame-duck Session, but More Likely Next Year
There still is a possibility that work on the Reauthorization bill could be completed in a post-election lame-duck session of Congress that is scheduled for the week of November 15. The outcome of the Presidential election and which party controls the House and Senate will be determining factors. If President Bush is re-elected and the Republicans retain control of the House and Senate, the chances of completing a reauthorization bill in the lame-duck session of Congress are increased. However, if Kerry wins or Democrats win control of the Senate, then it is almost certain that the reauthorization bill will be held over until next year when the new Congress convenes. Historically, the Congress generally does not complete work on major legislation unless it is under the pressure of a deadline which, under the eight-month extension, is Memorial Day, 2005.
If Reauthorization is carried over to the new Congress, the existing bills will be re-introduced in the Senate and House (the $318 billion bill in the Senate and the $299 billion bill in the House) early next year. Neither the Senate nor the House plan on redrafting their respective bills before they are re-introduced. However, once the bills are re-introduced, they again will have to be cleared by the respective authorizing Committees in both the Senate and House and be subject to a vote on the floor of both Chambers. Then the Conference process must begin again to produce a final "deal".
Even though the existing bills will be re-introduced, they will again have to go through the Committee process, which always opens the door for both policy and funding changes. This means that CVSA will need to monitor this process closely to make sure our motor carrier safety recommendations are retained.
II. Fiscal Year 2005 Appropriations Legislation
The 2005 Transportation Appropriations bill has passed the House, but in the Senate, the bill is still awaiting floor action. Therefore, funding for FMCSA and state MCSAP and other state grant programs will be continued at 2004 levels under a Continuing Resolution at least through November 20 of this year. As mentioned earlier, the Congress is returning for a lame-duck session the week of November 15 to hopefully complete work on the DOT and other government departments and agency funding bills for 2005. All pending appropriations bills will very likely be rolled into one omnibus spending bill for final passage. The Conference process, at least at the staff level, to reconcile differences between the House and Senate transportation appropriations bills, if it is not already underway, will occur between now and the lame-duck session.
New Motor Carrier Safety Grant Programs Continue to Be Funded
Even though the Congress has not yet passed a Reauthorization bill and TEA-21 remains in effect, both the House and Senate Appropriations bills continue to fund several new important motor carrier safety programs as was the case in the 2004 Appropriations bill. They are the CDL, border, and the new entrant state grant programs. The lack of a Reauthorization bill does keep a ceiling on the core state inspections grants however. Both the House and Senate 2005 Appropriations Committee Reports are attached and you are encouraged to read them. Due to the lack of Reauthorization, the House and Senate Appropriations Committees fund some of the state grant programs in different ways. For example, the Senate funds the new entrant program through FMCSA's Administrative Account. The House funds the CDL grant program through FMCSA's Administrative Account, while the Senate funds it as a MCSAP line item. But no matter how the programs are funded, the money appropriated can only be spent in the form of state grants. A summary of the major state grant programs important to CVSA members are as follows.
| Grants | 2004 Enhanced | 2005 House | 2005 Senate |
| State Core Grants | $129,560,000 | $134,500,000 | $133,350,000 |
| Incentive Grants | 11,039,000 | 7,100,000 | 7,100,000 |
| High Priority Grants | 8,450,000 | 9,400,000 | 8,450,000 |
| New Entrants | 24,900,000 | 31,200,000 | 28,700,000 |
| Training ... Administration | 2,051,000 | 2,100,000 | 2,100,000 |
| Accident Causation | 1,000,000 | 1,000,000 | 1,000,000 |
| CDL State Grants | 21,000,000 | 23,000,000 | 18,000,000 |
| State Border Grants | 32,000,000 | 33,000,000 | 33,000,000 |
| PRISM | 5,000,000 | 5,000,000 | 5,000,000 |
Both the House and Senate look upon the new entrant program as one to be implemented by the states and limit federal responsibility to oversight and managing third party auditors in those states that do not fully participate in the activity. The funding for state new entrant programs is consistent with needs outlined by the states in a CVSA survey conducted by CVSA in 2002.
With respect to the CDL program, specific reference to CVSA can be found on page 50 in the House Report. It recommends that FMCSA should continue working with AAMVA, CVSA, lead MCSAP agencies and state licensing agencies to improve all aspects of the CDL program. It also recommends that FMCSA should consider sponsoring another pilot project involving law enforcement and driver licensing agencies to explore new and innovative ways to make sure drivers who have been convicted of a disqualifying offense do not operate commercial vehicles during the period of suspension or revocation.
Specific reference to CVSA can be found in the Senate Report on page 69 with respect to the Outreach and Education Program. The Committee provided $2 million to support a public outreach and evaluation program targeted to reduce the number and severity of commercial/passenger vehicle crashes. It recommends that FMCSA work closely CVSA and NHTSA on a program to develop and test improved outreach and enforcement countermeasures to reduce truck and passenger car interactions in the car/truck zone.
Other Issues
A. Utility Hours-of-Service Exemptions
1. With Respect to Reauthorization
As reported in earlier Legislative Updates, the utility industry managed to get language in the original drafts of both the House and Senate reauthorization bills when they were being considered in the respective Committees last year that would totally preclude FMCSA from regulating the utility industry with respect to driver hours-of-service. As mentioned early in this update, the House-Senate Conference has been largely concentrating on overall funding issues and did not get down to the level of negotiating issues such as the utility provision. We have had indications from some Conference staff members that this issue would be discussed even though the exemption language is in both bills and therefore is technically not an issue for the Conference.
With Reauthorization very likely on hold until the new Congress convenes next year, the total h-o-s relief sought by the utility industry continues to be deferred. In addition, it may be somewhat easier to fight this provision in the next Congress after the elections. One promising sign along these lines emerged last week in connection with the eight month extension legislation. We understand the utility industry tried to get the language that is now in the reauthorization bills (total exemption) included in the extension bill, however, objections were raised and the effort failed. We will continue to work this issue as the Reauthorization process continues either in the lame-duck session of the Congress in November or in the new Congress next year.
2. With Respect to the Apropriations Bills and the Use of Federal Funds to Enforce the Current H-O-S Rules
The 2004 Appropriations bill prohibited the use of federal funds to enforce the current hos rules against utility companies.
During the House Committee consideration of the 2005 Appropriations bill, the Committee reinstated the 2004 exemption from the current rules, and, under pressure from the utility industry, added a provision that would prohibit the use of federal funds to enforce any h-o-s rule against the utility companies meaning the old rules (if the Congress had not overridden the Circuit Court in the eight month extension bill) and any new rule that FMCSA might issue pursuant to the July 16 Court decision.
However, this additional provision was stricken from the bill when it was being debated on the floor of the House. Congressman Blumenauer (D-Oregon) raised a point of order objecting to this provision on the grounds that it impeded safety and the point of order was sustained. And the Senate Appropriations Committee included only the 2004 language prohibiting the use of federal funds to enforce the current rules and rejected efforts by the utility industry to extend the provision to "any" h-o-s rules. The result is that technically, the provision extending the exemption to "any" h-o-s rules should not be an issue for the House-Senate Conference on the bill since it is not now in either bill. So far, our efforts have resulted in a setback for the utility industry. However, we still anticipate efforts by the utility companies to try and get it restored in Conference. We are monitoring the situation closely.
If this exemption is not restored in Conference, then the only exemption remaining is the one from the current rules. Therefore, if sometime during FY 2005, FMCSA issues a new rule pursuant to the July 16 Court decision, the utility companies would not be exempt from it and federal funds could be used to enforce the rule against them.
B. NAFTA
When the House Appropriations bill was being considered on the floor of the House, it was amended by a sizeable vote to include a provision removing the two-year grace period for requiring carriers (Mexican and Canadian) to prove their trucks were manufactured to United States' FMVSS standards when they cross the border into the United States. All newly registered carriers, or carriers seeking to add new trucks to their fleets, will have to show the FMVSS certification, and would not have a grace period. This provision is almost sure to end up in the final 2005 Transportation Appropriations bill.
2004
I. Highway Reauthorization Legislation on Hold
On the last day before the Congress recessed for a six week break, it passed a fifth short term extension of TEA-21through September 30 for motor carrier safety and transit programs (September 24 for primary apportioned highway formula programs). This marks one full year under a TEA-21 continuing resolution.
The House and Senate Conferees and the White House still have not been able to agree on the overall funding level for transportation programs. In recent weeks, some progress was made to narrow the differences on the total funding level. The latest proposal on the table is from the House side to provide $284 billion in guaranteed funding (firewalled) and $299 billion in Highway Trust Fund Contract Authority. The most recent offer from the Senate is for $289 billion in guaranteed funding and $301 billion in Highway Trust Fund Contract Authority. The guaranteed funding numbers are the most important and a difference of $5 billion remains. The difference does not seem insurmountable, but it should be remembered that the Senate has given considerable ground from its original bill that provided for $301 billion in guaranteed funding and $318 billion in Trust Fund Contract Authority. Some Senate members of the Conference are saying that a bill providing anything less than the numbers in its original bill would not pass the Senate.
In preparation for a meeting of the Conference Committee in September, Chairman, Senator James Inhofe (R-Okla.) has asked the Congressional staff to "run the numbers" on the latest offer from the House to determine the effect on individual states and their apportioned allocation formulas. If the House and Senate do not reach agreement on a funding number at that meeting, any further action on the Reauthorization bill will, in all likelihood, be deferred until the "lame duck session" of Congress after the November 2 elections (such a session will probably be necessary to complete all of the 2005 appropriations bills) or until a new Congress convenes next year. Whether it is the lame duck session in November or next year, the next extension of TEA-21 is likely to be for 12 months to avoid the uncertain month-to-month apportionment of funds to the states that has been the case for Fiscal Year 2004 and an accounting "nightmare" at both the state and federal level. Accounting problems have most certainly delayed highway projects and safety programs.
Because of the stalemate on the overall funding levels, House and Senate staffs have been largely unable to begin serious negotiations on most of the policy and program issues that need resolving between the two bills that include motor carrier safety issues of concern to CVSA. So far, the only significant issues voted on that affect CVSA members relate to intrastate operations of interstate motor carriers, CVISN, and background checks for drivers transporting hazardous materials. The details of each of these provisions are as follows:
• If a motor carrier is deemed unfit to operate in the state of its principal business, it will be deemed unfit to operate in interstate commerce.
• Jurisdiction of the Commercial Vehicle Information Systems and Networks (CVISN) deployment programs will be transferred from FHWA to FMCSA. The funding levels are yet to be determined.
• The Secretary will issue standards governing the background checks of drivers hauling hazardous materials and similar standards will apply to Mexican and Canadian drivers hauling hazardous materials and operating in the United States.
II. 2005 Transportation Appropriations Bill Reported out of House Committee
Even though the Congress has not acted on Reauthorization and TEA-21 remains in effect, the Transportation Appropriations Committees continue to trying to fund motor carrier safety programs close to the increased levels that would be expected under Reauthorization as they did in the FY 2004 Appropriations bill. In fact, they continue to fund new programs such as the CDL, Border, and new entrant state grant programs.
Last week, the full House Appropriations Committee approved the 2005 Transportation/Treasury Appropriations bill.
Details on motor carrier safety funding affecting CVSA members are as follows:
FY2004 Enacted |
FY 2005 (Reported by House Appropriations Comm.) |
|
| MCSAP | $177,000,000 |
$184,300,000 |
| Basic grants | 129,560,000 |
$134,500,000 |
| Incentive grants | 11,039,000 |
7,100,000 |
| High Priority grants | 8,450,000 |
9,400,000 |
| New Entrants | 24,900,000 |
31,200,000 |
| Training & Adm. | 2,051,000 |
2,100,000 |
| Accident Causation | 1,000,000 |
1,000,000 |
_____________________________________________________________
| Other State Grant Programs | ||
| CDL | 21,000,000 |
23,000,000* |
| Border (N & S) | 32,000,000 |
33,000,000 |
| PRISM | 5,000,000 |
5,000,000 |
*($1 million is available from another FMCSA program)
As you can see, the overall MCSAP funding rose due to a $6 million increase in the New Entrant Program and a $1 million increase in the High Priority Program. While the basic State Grant Program was increased by $4 million to $133,500,000, this was offset by a $4 million reduction in the Incentive Grant Program.
Clearly, the House Committee clearly looks on the new entrant program as one to be implemented by the states and limits federal responsibility to program oversight only. The $31,200,000 recommended by the Committee for new entrants is very much in line with the cost data CVSA received from a state survey done in 2002.
With respect to the CDL program, the Committee recommends that FMCSA should continue working with AAMVA, CVSA, lead MCSAP agencies, and state licensing agencies to improve all aspects of the CDL program. In addition it recommends that FMCSA should consider sponsoring another pilot project involving law enforcement and driver licensing agencies to explore new and innovative ways to make sure drivers who have been convicted of a disqualifying offense do not operate during the period of suspension or revocation.
For a copy of the complete motor carrier safety section of the House Appropriations report, contact CVSA headquarters.
III. Hours-of-Service Exemptions
A. With Respect to Reauthorization
A provision to exempt utility companies from all hours-of-service requirements (old, current, or whatever revised set of rules may result from the recent D.C. Circuit of Appeals decision) is in both the House and Senate versions of the Reauthorization bill. As stated in previous CVSA reports to you, the fact that it is in both bills will make efforts to modify it or overturn it difficult. However, we are advised that it still may be considered a negotiable issue in the Conference proceedings and we continue to work the issue as best we can. The utility lobby continues its intensive effort to gain the total exemption. However, the Reauthorization stalemate further delays the ultimate regulatory relief sought by the utility industry and causes them to shift their efforts toward seeking short term relief in the Appropriations process ( to be discussed later in this report).
There is a provision in the House bill that keeps movie producers under the old rules. This will be a negotiable item in the Conference.
Finally, there are provisions in both bills to expand the definition of agricultural commodity to include livestock and livestock feed haulers in the existing exemption. But the exemption as it applies to this new group would apply all year rather than on a seasonal basis. A provision along these lines is likely to be in the final bill. While this is a further erosion of the agricultural exemption, it is less blatant or egregious than the utility exemption in the sense that agricultural haulers remain under some type of hours of service regulation.
B. With Respect to the Appropriations Process
With the Reauthorization process on hold, the only avenue available to the utility companies and others seeking exemptions is the annual appropriations process. But this is only a temporary fix from year to year.
The 2005 House Appropriations bill did not continue the prohibition of the use of federal funds to enforce the new hours-of-service rules against the movie producers. This is a step in the right direction.
However, the 2005 House Appropriations bill retained language prohibiting the use of federal funds (MCSAP) to enforce the new hours-of-service rules against the utility industry and further clarified the prohibition to mean enforcement of the old rules as well.
CVSA and other safety groups attempted to seek a compromise that would have at least put the utility companies under the old rules they have been subject to for the last 20 years. We were given a fair hearing to present the safety record of the utility industry showing that their share of fatalities and injuries is proportionate to that of the rest of the industry. Committee staff were frank to tell us that the utility companies have intensified their lobbying efforts with all members of the Committee and that the electrical workers union support of the exemption further complicated matters. Ranking Minority Member Congressman Olver (D-Mass.) expressed concern about the exemption during the Subcommittee markup but obviously did not have the support to call for a committee vote against it.
CVSA and other safety groups will continue to work this issue with the Senate Appropriations Subcommittee on Transportation and Treasury. Although the Subcommittee has not yet reported out a bill, it is expected to do so sometime in September.
It should be noted that utility drivers operating in intra-state commerce only must abide by the hours-of-service rules in effect today in the state in which they operate and in effect prior to the Court decision
C. With respect to the recent U.S. Circuit Court of Appeals decision rejecting the new hours-of-service rules
The court decision will not change the efforts of the utility industry to seek its exemptions in the Reauthorization bill. That industry doesn't want to be subject to any hours-of-service rules---old rules, the existing new rules, or any new rule that may ultimately result from the Court's decision.
It also would not affect the appropriations ban on the use of federal funds to enforce the new rule as discussed earlier. The House 2005 Appropriations bill specifies that the ban applies to the new or old rules should there be a temporary situation where the old rules are resumed as a result of the Court decision, which is probably a remote possibility from what we know at this point.
IV. Update on the Court Decision Itself
We have no new information to report other than what was in our July 22 News Update. We are waiting to learn what decision FMCSA will make with respect to an appeal. The 45 day period within which they have to make such a decision continues to run (from July 16). When we learn any new information, we will immediately inform you. The hours-of-service rules now in place continue to apply.
Latest Reports:
House Passes Reauthorization Bill; House/Senate Conference the Next Step
The U.S. House of Representatives has recently passed H.R. 3550, a $275 billion highway reauthorization bill that also includes funding for transit, highway safety, and motor carrier safety programs.
As we reported earlier (see — Feb. 19,2004), the Senate passed its $318 billion reauthorization bill, S. 1978, in early February.
A lengthy Conference is expected to resolve the differences between the two bills. Some Congressional staff indicate it may take until June 30 before a final bill is ready. This also means that another extension of TEA-21 will be necessary since the current extension will expire on April 30. One caveat to all of this. The White House has said it will veto any reauthorization bill that calls for more than $256 billion. There are strong indications that the House and Senate Republican Leadership would not want to risk a Presidential veto in an election year. So, there may be strong pressure on the Conferees to lower the House limit of $275 billion closer to the $256 billion level supported by the White House. If that happens, there is a good chance the Congress will not pass a reauthorization bill. It was a painful process in the House to reduce its original funding level of $375 billion to $275 billion and anything lower would almost be out of the question. Whether the White House will change its position is not known at this point.
The overall funding level for motor carrier safety (FMCSA Administrative Expenses and State Programs including MCSAP) is $3,004,000,000 in the Senate bill and $2,871,000,000, a difference of $133,000,000. Under normal circumstances, you might expect the final bill to reflect an amount within these parameters, but, as discussed above, we may not be able to count on this.
2004
More Groups Seek Hours-of-Service Exemption
As the House of Representatives draws closer to finalizing its version of Reauthorization, efforts to seek exemptions from the new hours of service rules have now gone beyond just the utility industry (see our CVSA Call to Action of Feb. 2, 2004).
A coalition of short haul operators that include food and retail industries that use driver-salesmen (led by Wal Mart) are claiming the new rules, particularly the on-duty time requirements, are having a significant impact on their operations. The coalition members are seeking to be covered under the old rules in an amendment to the Reauthorization bill. Such an exemption would significantly undermine the new hours-of-service rules and should be rejected. Click here 
to view a copy of the letter we have sent to the leadership of the House Transportation and Infrastructure Committee opposing this amendment.
Truck Rest Area Provisions Being Considered
Click here to view a letter urging the House Transportation and Infrastructure Committee to include the Senate truck rest area parking provisions in its bill as well. Click here to review a recent article about the provisions in the Senate bill. We believe there is a good chance the House will include such provisions that are the most comprehensive to date dealing with this important issue.
2004
New Entrant Funding is 100%
The latest reauthorization extension bill that passed the Congress on Friday, February 27 contained a technical amendment that assures 100% funding for states to implement the New Entrant Program. The 2004 Fiscal Year budget contains $25 million as a line item under the MCSAP program for states to implement the Program. As a result of this Congressional action, states can now count on it being100% money.
Six Year Reauthorization Bill Still in Doubt
Since the House did not complete action on a long term reauthorization bill by February 29, the date on which the five-month extension of TEA-21 expired, another two-month extension has been passed.
As we reported in our February 19 update, the Senate has passed a six-year reauthorization bill funded at $318 billion, which is $62 billion above the Bush Administration's requested level of $256 billion. The House, originally aiming for a $375 billion level, has been working on a scaled down version closer to the Senate's $318 billion level. But the House Leadership has signaled that it will not allow any reauthorization bill to reach the House floor for a vote unless it is much closer to the $256 billion Administration level ($270 billion is reported to be the absolute maximum ceiling). Therefore, the House Transportation and Infrastructure Committee has been hinting that it may write a two-year bill with only a modest increase in funding for highways, transit, and highway and motor carrier safety. It could be that (after the fall elections) revenue measures would have a better chance for support (fuel tax increases) that could fund a six-year bill more to their liking and closer to their originally proposed $375 billion level.
Whether this can happen within the new two-month extension limit and whether the Senate would accept such strategy is unknown at this time. We will keep you posted as events unfold.
Efforts Continue to Seek Compromise on Utility Industry HOS Exemption Issue
CVSA is continuing its efforts to oppose a total exemption from the new hours-of-service requirements for utility service vehicle drivers. Instead, CVSA recommends that the emergency declaration be redefined to include local emergencies, as well as applying the on-duty requirements of the old hours-of-service rules to the utility industry. CVSA believes this compromise is the way to balance highway safety with the public safety need of the utility companies. It appears that support is developing for this compromise.
2004
Reauthorization Bill Passes Senate
By a vote of 76-21, the Senate has passed a $318 billion Surface Transportation bill that includes reauthorization of highway and motor carrier safety programs. The motor carrier safety provisions were extensively reported in CVSA's January 13 Legislative Update. However, just before the bill was passed, it was amended to include a provision addressing the shortage of long-term parking for commercial motor vehicle drivers on the National Highway System. This issue has been of concern to CVSA and we worked with the American Trucking Associations, the Truckload Carriers Association, and the National Association of Truck Stop Operators to get the measure included in the bill.
The Senate bill's funding level is $62 billion above the $256 billion level in the Bush Administration's proposal. The President has said he will veto any bill with a funding level above that amount. However, the 76-21 Senate vote would seem to indicate enough support to override a veto.
The reauthorization picture in the House is still uncertain. The proposed bill has a funding level that's even higher than the $318 billion in the Senate bill. While the House Committee on Transportation and Infrastructure has not yet formally taken up the House bill, there are reports that, at the request of the House Leadership, the Committee will work to scale back its total authorized amount closer to what is in the Senate-passed bill.
The process and timing for Committee action and House passage are not yet known. Since the House obviously won't make the February 29 deadline (when the 5-month extension of TEA-21 expires), it passed another 4-month extension of REA-21 to June 30. However, the Senate may not agree with the 4-month period, preferring a shorter extension in order to put more pressure on the House to act on a long-term bill. We will keep you informed on the progress of the House effort.
As indicated in our January 13 Legislative Update, CVSA's basic reauthorization goals are met in both the Senate-passed bill and the House-proposed bill. However, efforts will be ongoing to keep utility and agricultural industry hours-of-service exemptions out of the House bill.
2004
Fiscal Year 2004 Appropriations Bill Finally Clears the Senate
I. Utility Vehicle Service Driver Exemption
As a follow-up to our January 23 News Update, we want to point out that the appropriations bill exemption specifies only that federal MCSAP dollars are not to be used through the end of the 2004 fiscal year to enforce the new hours of service rules with respect to utility vehicle service drivers. It does not actually change the regulation.
II. MCSAP and State Safety Grant Provisions
The following are the funding levels for the MCSAP program and other new state safety grant programs as well. Parts of the MCSAP program funding and the state grant programs reflect some of what we have been seeking in our reauthorization proposals even though that legislation has not yet passed the Congress.
MCSAP:
| Basic state grants | $130,000,000 |
same as 2003 |
| Incentive grants | 11,105,000 |
a reduction from $16 million in 2003 |
| High priority grants | 8,593,000 |
same as 2003 |
| New entrants | 17,000,000 |
new |
| State training & administration | 2,063,000 |
same as 2003 |
| Crash causation study completion | 1,000,000 |
a reduction of $4 million from 2003 |
| Total | $170,000,000 |
same as 2003 |
*Note that a new line item for new entrant programs has been added. Also, under a separate provision in the bill, an additional $8 million has been allocated for state new entrant programs bringing the total for state new entrant programs to $25 million. The bill requires FMCSA to submit a new entrant program implementation plan to the House and Senate Appropriations Committees within 90 days of passage of this bill. CVSA will be discussing this matter with FMCSA and we will keep you informed..
III. Other State Safety Grant Programs:
Border Grants:
According to NAFTA provisions in the 2001 Appropriations bill, this year's Appropriations continues funding for current Southern border activities: $32 million for border state operations grants, and $47 million for inspections facilities.
In addition, this 2004 appropriations bill provides an additional $23 million for southern border state grants, and $9 million for northern border state grants. These new grant programs reflect what is in the Reauthorization legislation now under consideration in the Congress.
CDL Grants:
A new CDL state grant program is funded at $21 million, again reflecting a proposal CVSA has been seeking under Reauthorization. The bill also encourages FMCSA to continue working with AAMVA, CVSA, and lead MCSAP and licensing agencies to improve all aspects of the CDL program. In this connection, the bill language says that FMCSA should consider sponsoring another pilot project involving law enforcement and driver licensing agencies to explore new and innovative ways to ensure that drivers who have been convicted of a disqualifying offense do not operate during the period of suspension or revocation. We will be discussing this matter with FMCSA.
If you would like to have copies of the Committee Report language, please contact Dick Henderson at 202-775-1623 ext. 107 or RichardH@cvsa.org.
