2007 Legislative Updates
2007
Congress Nears Agreement on 2008 DOT Appropriations Legislation
After passing three Continuing Resolutions, it appears Congress is on its way to wrapping up an Omnibus Appropriations bill that would fund eleven Federal Agencies and Departments including the Department of Transportation and FMCSA for FY 2008. It passed the House last night and is expected to clear the Senate by the end of this week unless the issue of funding for the Iraq war delays the process. There are indications from the White House that the President will sign the bill as long as it contains funding for the war.
Despite across-the-board cuts in discretionary spending for most Federal Agencies, MCSAP and other state motor carrier safety enforcement grant programs remain funded at 2008 SAFETEA-LU authorized levels since motor carrier safety programs are funded under contract authority from the Highway Trust Fund. The total funding for all motor carrier safety grants is $300 million, an increase from the 2007 authorized level of $294 million.
The omnibus bill also retains the provision in the original FY'08 DOT Appropriations legislation that passed the House and Senate earlier this year prohibiting use of '08 funds for the cross-border demonstration program allowing certain Mexican carriers to operate in this country beyond the Commercial Zones.
Bus Accessibility Act Passes the House
On December 11, the House passed HR 3985, the Over-the-Road Bus Transportation Accessibility Act of 2007. It would require FMCSA to enforce the requirements of the Americans with Disabilities Act against over-the-road bus companies who would have to show compliance with the ADA requirements in order to receive or renew operating authority.
On the Senate side, the Commerce Committee has yet to consider the bill, but is expected to do so early next year.
Second Bus Safety Bill is Introduced
Congressman Bill Shuster (R-PA), introduced a second bus safety bill, HR 4690, on December 13. A copy is attached. It differs considerably from S. 2326 introduced last month in the Senate by Senators Sherrod Brown (D-Ohio) and Kay Bailey Hutchison (R-TX) that we reported on in the Legislative Update of November 19. It would require the National Highway Traffic Safety Administration to research and study the issues relating to bus safety before issuing specific motor vehicle safety standards. It would provide tax credits to motorcoach operators for associated expenses incurred in complying with new standards. In addition it would establish a DOT grant program and a Small Business Administration loan program to further assist the companies with costs of retrofitting their coaches.
Finally, it does not contain those provisions in the Senate bill calling for greater oversight of motorcoach companies that include motorcoach driver training, driver license testing and driver medical certificates. It does not require the use of EOBRs on buses, nor does it require annual state inspections programs for buses and trucks along with periodic reviews of state safety inspection programs.
At this point it is not known how soon the Senate Commerce Committee and the House Transportation and Infrastructure Committee may take up the issue of bus safety. On the House side, Congressman Peter DeFazio, Chairman of the Highways and Transit Subcommittee has indicated his intention to deal with bus safety as a part of the Reauthorization process.
Hours of Service Tops Current Safety Agenda
As reported in our December 11 membership notice, FMCSA announced the details of an Interim Final Rule (IFR) regarding Commercial Driver Hours of Service Regulations. It retains the 11 hours driving time as well as the 34-hour restart provisions. The formal notice is expected to be published in the Federal Register on or about December 18 and will become effective December 27, 2007.
The IFR provides the public with a 60 day comment period. FMCSA is hopeful that the IFR answers the CD Circuit Court of Appeals' concerns expressed in their July 24, 2007decision. In the IFR, FMCSA has provided additional crash data analysis and more details of the methodology they used in establishing the rules. The 60-day comment period will commence once the IFR is published in the Federal Register. After the comment period has ended, FMCSA will evaluate the comments and will make a determination on what will be contained in a Final Rule.
It appears that the IFR supersedes the Court's July 24, 2007 decision to vacate the 11-hour driving time and 34-hour restart provisions of the regulations. However, the existing parties to the lawsuit may choose to challenge FMCSA on this action, in which case the Court may choose to intervene once again. Any challenge by the parties to the lawsuit would not occur until the IFR is published in the Federal Register which is expected to be on or about December 18, 2007.
Also, on Wednesday, December 19, the Senate Commerce Committee, chaired by Senator Frank Lautenberg (D-NJ), will conduct a hearing on the IFR. Testimony will be received from FMCSA, truck safety advocates and the motor carrier industry. At this point it is not clear whether this hearing portends the direct involvement of Congress in hours-of-service issues.
CVSA Reauthorization Committee to Meet in D.C. on January 7-8, 2008
CVSA's Reauthorization Committee will hold its second meeting in Washington, D.C. on January 7-8. On January 7, it will hear presentations from CVSA's government, safety, and industry partners. The next day it will begin the process of drafting a set of reauthorization policy recommendations to the full membership at its Spring Workshop in Denver, Colorado at the end of March. In addition to issues brought to the table by CVSA's partners, the membership reauthorization survey returns will be carefully studied.
If you have not done so, there is still time to respond to the survey. Just click on the following link:
http://www.surveymonkey.com/s.aspx?sm=GjgD4Z_2fXNzEpSnEcQq6iCw_3d_3d
2007
Congress Passes Another Short Term CR
Yesterday, Congress passed another short-term Continuing Resolution (CR) that funds a number of federal departments and agencies, including DOT and FMCSA, at FY 2007 levels. This is the second CR since the start of the new fiscal year on October 1 and will expire on December 21.
There are indications that a final FY'08 omnibus appropriations bill may clear the Congress early next week and be signed by the President. However, the omnibus bill is still being negotiated by the House, Senate and the White House, so final passage is not a certainty as this point.
We will provide details of the DOT FY'08 budget as soon as action on the bill is complete.
2007
Second CR Extends '07 Funding to December 14, 2007
Congress recently passed another Continuing Resolution (CR) that funds 11 major departments of the federal government, including the Department of Transportation, at 2007 levels until December 14. While the House has passed the FY 2008 DOT Appropriations Conference Report, the Senate was unable to bring it up for a vote before they adjourned for their two week Thanksgiving Congressional recess on Friday.
The ultimate fate of the 2008 DOT Conference Report is uncertain. Even if the Senate had passed it last Friday, the President has strongly indicated he would veto it because it exceeds the Administration's funding request by some $3 billion. There is a possibility that the Conference bill now will be bundled into a huge omnibus 2008 appropriations bill funding the other federal departments that are also under the current CR. Whether the President would sign such an omnibus bill depends on whether Congressional leaders and the White House can negotiate an overall reduced funding level for the federal government for FY '08. Those negotiations will probably not begin until Congress returns on December 3.
If and when the '08 bill does finally pass, it would fund MCSAP and other state motor carrier safety grant programs at the full authorized levels in SAFETEA-LU for FY '08. The total for MCSAP would be $202 million (up $5 million from '07), $25 M for the CDL grant program, $32 million for border programs, $5 million for PRISM, $25 million for CVISN, $3 million for safety data improvements and $8 million for CDLIS modernization.
The '08 bill also includes the provision prohibiting funding for the Mexican border pilot program.
House Transportation and Infrastructure Committee Reports Bus Accessibility Act
The House T & I Committee has recently reported out HR 3985, the "Over-the-Road Bus Transportation Accessibility Act of 2007." It essentially requires FMCSA to consider a bus passenger carrier's compliance with the American with Disabilities Act as an element of a passenger carrier's fitness for the purpose of obtaining operating authority. A copy of the bill is attached. It has not yet been scheduled for action on the House floor and any Senate action is as yet undetermined.
Bus Safety Bill Introduced in the Senate
Sen. Sherrod Brown (D-Ohio) and Sen. Kay Bailey Hutchison (R-Texas) have introduced HR 2326, the "Motorcoach Enhanced Safety Act of 2007." A copy of the bill is attached. It is a far reaching and comprehensive bill to say the least. The legislation would require:
- safety belts and stronger seating systems,
- anti-ejection glazing,
- strong, crush-resistant roofs to withstand rollovers,
- improved protection against fires,
- improved commercial driver training,
- National Commercial Motor Vehicle Medical Registry to ensure proper medical examinations,
- Strengthened motorcoach vehicle safety inspections, including roadside inspections, safety audits, and state motor carrier programs for identifying vehicle defects; specifically, a state, in order to receive it's MCSAP grant, must carry out an annual safety inspection program for commercial motor vehicles including buses and motor carriers transporting not less than nine and not more than 15 passengers; and
- EOBRs with real-time capabilities to track precise vehicle location.
Sen. Brown introduced the bill to address issues resulting from the bus crash in Atlanta earlier this year that killed four students from Ohio's Bluffton University baseball team as well as the driver of the bus and his wife. Sen. Hutchison joined as a sponsor in order to address the issues relating to the bus fire in Houston that killed elderly residents as they were trying to escape Hurricane Rita in 2005.
Neither industry nor enforcement was consulted during the process of drafting the bill. It is reported that families of the Bluffton University student victims were the catalyst behind the bill.
It is uncertain whether the bill in its present form will make its way completely through the legislative process in this Congress. But many of the provisions in the bill will undoubtedly remain on the table for consideration during the reauthorization process.
Senate Commerce Committee to hold Hours-of-Service Hearing
It is reported that the Senate Commerce Committee is planning to hold a hearing on hours-of-service issues relating to the recent Court decision. The date now mentioned is December 6 which will presumably allow time for the Committee to consider FMCSA's response to the recent Court order expected by Thanksgiving.
2007
CMV Safety Incentive Bill Introduced
On October 10, Congressman Mike Thompson ((D-CA.) introduced HR 3820, the Commercial Motor Vehicle Advanced Safety Technology Tax Act of 2007. A copy of the bill is attached.
It provides tax incentives for safety system technologies that include vehicle stability systems, lane departure warning systems, collision warning systems and brake stroke monitoring systems installed on certain commercial vehicles, public transit vehicles and school buses.
This type of safety technology incentive is supported by the Chairman of the National Transportation Safety Board, Mark V. Rosenker, the GAO, and the DOT Inspector General as a significant step that has the potential to reduce heavy truck crashes and fatalities. FMCSA Administrator, John H. Hill, has also supported the idea of incentives as a way of encouraging the use of new safety technologies.
The NTSB Chairman told Senator Patty Murray in a DOT 2008 Appropriations hearing earlier this year that he believed the tax incentive approach would result in more widespread use of this technology by the industry much sooner than going through the usual DOT rulemaking process.
Since HR 3820 is both a safety and a tax bill, the key Committees of jurisdiction in the House are Ways and Means and Transportation and Infrastructure. In the Senate, the Committees on Finance and Commerce, Science, and Transportation will have jurisdiction. The bill has not yet been introduced in the Senate.
CVSA is working with other groups such as the Motor and Equipment Manufacturers Association, and other representatives of the technology manufacturers to gain wider support of the legislation in both the House and Senate.
We will keep you posted on all efforts to try and move this bill along in the Congress.
2007
Congress Passes CR to November 16
Congress has passed, and the President has signed, a Continuing Resolution that funds federal programs at 2007 levels until November 16, 2007. This means that agencies such FMCSA will receive 12.8% of an annual appropriation funded at the FY2007 level. MCSAP and other state grant programs will also be funded at that rate.
Work on conferencing the House and Senate passed FY 2008 DOT Appropriations bill cannot begin until a "global" agreement between the Congressional leadership and the White House is worked out on overall 2008 funding levels for other federal agencies and departments as well.
Whether this will come to pass by November 16 remains to be seen. We will keep you posted.
2007
Implementation of UCR Program Underway
FMCSA's publication of the new Unified Carrier Registration system fee structure on August 24, 2007 has allowed the states to take the final steps to start collecting registration fees under the new UCR plan. It is expected that carriers may begin registering under the new plan as early as September 10. Indiana has developed a new on-line registration system that will expedite this process.
A provision in the 9/11 Security bill passed by the Congress earlier in the summer would have re-instituted the old SSRS system for the remainder of 2007 if the new UCR registration fee rule had not been published by the FMCSA.
Throughout this year, the UCR Board continued work to set up the infrastructure enabling the UCR program to function despite the uncertainty surrounding the publication of the new fee structure and the possibility that SSRS might have been re-instituted. Because of these efforts and the recent publication of the rule establishing the fees, states that had participated in the old SSRS system, can now look forward to UCR replacement revenue for 2007 and future years.
CVSA's Bill Leonard of the New York State DOT, and member of the UCR Board, will update the CVSA membership on all of the UCR implementation details at the upcoming Pittsburgh Workshop.
DOT '08 Appropriations Bill May Move Sooner Than Expected
While the House has already passed the 2008 DOT Appropriations bill, the Senate has yet to act. The Senate Appropriations Committee reported the bill before the August recess, but how quickly the bill would be taken up on the Senate floor was in doubt. However, upon the return of Congress this week, Senate Majority Leader, Harry Reid, said the bill could come to the Senate floor as early as next week. Then the bill must be conferenced with the House. But this process will still have to move on a fast track for work on the bill to be completed by September 30 in order to avoid a CR (Continuing Resolution).
CVSA's Reauthorization Committee Will Meet in Pittsburgh
Alan Martin, Deputy Director of Transportation for the Public Utilities Commission of Ohio, and Chairman of CVSA's recently organized Reauthorization Committee, has called the first meeting of his group on Saturday, September 15, in Pittsburgh just prior to the opening of CVSA's Fall Workshop.
The Reauthorization Committee prepared and sent out a comprehensive survey to the membership in order to determine key issues that should be considered in the reauthorization process. If you have not yet responded to the survey, please try to do so as soon as possible. Your response will greatly help the work of the Committee.
2007
DOT '08 Appropriations Bill Clears House but Has Uncertain Future in Senate
Attached are copies of both the House and Senate FY 2008 Transportation-HUD Appropriations bills. The House passed its bill at the end of July prior to the August recess. In the Senate, although the Senate Appropriations Committee has passed the bill, the matter of scheduling it for a final vote on the Senate floor is somewhat uncertain. There is a possibility that it could be rolled into an omnibus appropriations bill and whether that will happen by September 30 is uncertain. Thus, there is a possibility of CR, but hopefully a short one. It may be that we will have a better idea about this scenario when Congress comes back after Labor Day, and, if so, we will advise you.
Both the House and Senate bills fund motor carrier safety grant programs, including MCSAP, at SAFETEA-LU authorized levels for 2008. As you can see, the Report language from both Committees deals with issues that should come as no surprise, such as new entrants, the compliance review process, targeting high risk carriers, and the implementation of FMCSA's 2010 program. These are among the issues certain to be revisited in the upcoming reauthorization process as well.
SSRS Back Until January 1, 2008 Unless UCR Fee Structure is Published Soon
On August 3, the President signed the 9/11 bill which contained Section 1537 that we earlier reported on in the July 25 Legislative Update. This provision brings back SSRS (retroactive to January 1, 2007) until January 1, 2008 or the date when FMCSA published the rule establishing the UCR fee structure for 2007, whichever happens first.
FMCSA reports today that the final rule setting the fees has been cleared by the agency itself and by the Office of the Secretary of Transportation and is now pending at the Office of Management and Budget.
Thus far, there is no information indicating that any SSRS state has yet sent out invoices to the carriers collecting 2007 SSRS fees. However, many SSRS states are cutting back or shutting down safety programs due to the loss of revenue this year. It is not likely that they can wait much beyond the end of this month before they are forced to send out SSRS invoices if the rule establishing 2007 UCR fees is not published by then.
- Senate FY 2008 Transportation-HUD Appropriations bill
- House FY 2008 Transportation-HUD Appropriations bill
2007
Provision in 9/11 House-Senate Conference Could Bring Back SSRS for 2007
The conference bill implementing the final recommendations of the 9/11 Commission contains a provision that brings back SSRS retroactive to January 1, 2007 ending on January 1, 2008 or the effective date of the issuance of the final UCR regulations whichever happens first.
At the same time, the provision also sets a deadline of October 1, 2007 for FMCSA to issue the final UCR regulations that include the new fee structure. But if that deadline is not met, SSRS remains in effect until whenever the regulations are issued but not beyond January 1, 2008. The regulation putting UCR in place is pending at FMCSA and must still be cleared by the Office of the Secretary of Transportation and the Office of Management and Budget. The heart of the regulation is the new UCR fee structure which was recommended by the UCR Board to FMCSA in December of 2006.
This provision really accomplishes the intent of our effort last year to seek the extension of SSRS for another year (2007) but which failed because the DOT appropriations bill that contained the extension was never passed by the outgoing 109th Congress. It means that most SSRS states will be able to salvage 2007 as a year in which they receive revenues to continue or restore important safety enforcement programs. SSRS produces a collective total of $100 million for the 37 participating states. The new UCR program is planned to bring in the same amount so the states will be made whole when the SSRS revenues stop.
As with anything in the legislative arena, a word of caution is in order. We understand the work of the 9/11 Conference was completed today. The House Leadership says that body expects to vote to approve the Conference Report by Friday of this week. The Senate is expected to do the same next week. Then the bill will be sent to the President for him to sign which he is expected to do. Until final passage, it is unlikely we will be privy to the explanatory Conference Report which may provide further interpretation of the provision.
House Transportation 2008 Appropriations Bill Cuts Funding for Border Pilot Program
The DOT 2008 Appropriations bill was amended on the House floor yesterday to prohibit the use of any 2008 funds to establish or implement the proposed Mexican-domiciled truck pilot program.
More details on the House and Senate 2008 Appropriations bills that fund FMCSA, MCSAP, and other state programs will be provided in another legislative update coming soon.
2007
Congress Restricts, but Does Not Stop Border Pilot Program
The Iraq War Supplemental appropriations bill passed by Congress on May 24, and signed by the President shortly thereafter, contained language that places added requirements on the cross-border trucking pilot first announced by the U.S. DOT in February of this year.
While these restrictions may slow down the pilot program from its starting date of July 15, they do not stop the pilot. A statement from the U.S. DOT upon passage of the legislation read as follows: "The Administration remains committed to implementing the cross-border trucking demonstration program while working with Congress to make good on a 14-year promise that will greatly benefit the American economy."
Key elements of the legislation provide that:
- With regard to the pilot, DOT must follow all applicable rules and regulations that apply to all DOT pilot projects. This would include such items as making public the methods used in measuring the effectiveness of the project.
- Mexican trucks must comply with all applicable U.S. safety regulations which are essentially the requirements in Section 350 of the 2002 Transportation Appropriations bill. (This is not a new requirement.)
- There must be more oversight of all of these requirements by the DOT Inspector General as well as more public disclosure of the details of the pilot with an opportunity for public comments through the Federal Register process.
- U.S. motor carriers must be given reciprocal access to Mexico. (The DOT agreed to this on May 1, although negotiations are not yet final.)
It should be noted that this legislation did not contain significant requirements contained in earlier legislation passed by the House that would have limited the total number of vehicles participating in the pilot to 1000 and extended the pilot for up to three years.
The fact that this legislative language does not stop the pilot does not mean that Congress will not exhaust all regulatory and administrative avenues to further slow down the pilot or put it on hold. For example, Congressman Oberstar, Chairman of the House Transportation and Infrastructure Committee, and Congressman DeFazio, Chairman of the Highways and Transit Subcommittee, have recently written a letter to the DOT asking that the pilot be delayed pending the outcome of a lawsuit filed by Public Citizen in the United States District court for the District of Columbia charging that FMCSA has failed to comply with a Freedom of Information Act (FOIA) request dating back to October 2006. The request was for information about activities surrounding any program to evaluate Mexico-domiciled motor carriers that would be permitted to operate beyond the Mexico-United States border zone. FMCSA has filed a motion to "stay" any decision for two years and Public Citizen has filed a counter motion. The Court has not yet ruled on this matter.
New Legislative Approach Under Consideration to Help States Realize UCR Revenues in 2007
CVSA, along with NARUC (National Association of Regulatory Utility Commissioners) and the support of the trucking industry have developed a new legislative package that would codify the UCR fee structure (as a part of SAFETEA-LU) for the year 2007 and 2008. This would further protect against any delay in the regulatory approval process. FMCSA has issued a notice of proposed rulemaking seeking comments on a new UCR fee structure approved by the UCR Board and hopes this process which includes a final review by the Office of Management and Budget can be completed by July. This is not a certainty, however, and should there be any further delay, it would be very unlikely that the states would receive any UCR revenues for 2007. The new legislative proposal protects against this happening and is believed to have a better chance of succeeding than efforts to bring back SSRS on a temporary basis.
Key Congressional Committees are in the process of reviewing the language. How quickly Congress will act will be largely determined by what legislation the new proposal is attached to and the schedule within which that legislation will pass. As of now, there may be three legislative options: the SAFETEA-LU Corrections bill, the Security bill (implementing remaining recommendations of the 9/11 Commission) and the 2008 DOT Appropriations bill.
The new legislative package also provides funding to FMCSA for the specific purposes of assisting the UCR Board to function administratively and also helping the UCR Board finalize the infrastructure necessary for the carrier registration and fee depository elements of the UCR plan.
We will provide more details on this effort as developments unfold.
Appropriations Process for 2008 Fiscal Year Now Getting Underway
The appropriations process for the 2008 Fiscal Year is just now getting underway, at least in the House. The Appropriations Subcommittee on Transportation/Treasury and HUD has scheduled a meeting to report out their bill for 2008 spending levels for next Monday, June 11.
The subcommittee schedule has slipped a bit this year largely due to the delay by Congress in approving a 2008 overall budget resolution which was caused by the time spent on the Iraq War spending supplemental appropriations bill. This may make it harder for the appropriations process to be completed in time for the new fiscal year beginning on October 1 of this year.
House Transportation and Infrastructure Committee Calls FMCSA Oversight Hearing
This Committee has scheduled an FMCSA oversight hearing for June 21. Specific issues and panel witnesses have not yet been determined.
2007
SSRS Extension Language in 9/11 Commission and SAFETEA-LU Corrections Bills
Legislative language re-instating SSRS until such time as the new Unified Carrier Registration plan is up and running has been included in Section 1436 of the recently passed Senate bill (S.4) that implements the last of the 9/11 Commission recommendations. An earlier House passed 9/11 Commission bill does not contain the SSRS extension language. The two bills will go to Conference in the coming weeks. Efforts are underway to keep the SSRS extension in the final Conference bill. However, the ultimate fate of this bill is uncertain. The President has threatened to veto the final bill relating to provisions expanding collective bargaining rights of TSA airport screeners. Some speculate that a compromise on this issue will be worked out since neither the President nor Congress will want to be blamed for failure to implement recommendations of the 9/11 Commission.
In addition, language extending SSRS is also in a SAFETEA-LU Corrections bill, H.R. 1195, that passed the House in February. The Senate has yet to draft and take action on their version of the Corrections bill. It is not expected that this particular bill will pass the Congress until July at the earliest.
The challenge thus far has not been in convincing Congress that an SSRS extension is needed, but to get the extension language attached to legislation that is sure to pass the Congress and be signed into law by the President.
Unified Carrier Registration Board Still Tackling New Fee Structure
The reason it is necessary to re-instate and extend SSRS is the fact that the new Unified Carrier Registration (UCR) Plan fee structure and agreement is not yet completed and ready for implementation by the states. Many of the 37 SSRS states are being forced to cut back highway safety programs, particularly motor carrier safety enforcement programs that have been funded from SSRS revenues in past years.
The UCR Board has been working intensely on the development of a new UCR fee structure that covers the entire trucking industry rather than the just the for-hire segment which has been the case under the SSRS system. The Board has submitted a draft fee structure to the DOT (FMCSA) for their approval after which there must be a 90-day period for notice and comment on the plan. Twice it has been rejected with a request for further analysis and additional information. The most recent DOT request asked the Board to take into account the number of trailers operated by the carrier as well as the number of power units.
In the March 15 teleconference call, the Board reached agreement on a new fee structure including both power unit and trailer populations. Shortly, this fee structure will be presented to FMCSA for their review. It is hoped that FMCSA will approve this latest fee structure submission and that it can be published for notice and comment for a period not to exceed 90 days. It is expected that the UCR Board Subcommittees on Systems, Repository, and Procedures can also complete their work within this same 90-day period. However, there are major issues for the Subcommittees to resolve.
With each passing day, it becomes more unlikely that all of the above will come to fruition in time for states to realize any new UCR revenues for fiscal year 2007. Therefore, legislative efforts to bring back SSRS on a temporary basis to ease the developing financial crises in many SSRS states will continue. This effort will not only make sure that the states are made hole with respect to revenue received under the SSRS system which was the basic assumption in the UCR section of SAFETEA-LU but also to continue providing the industry an incentive to support the development of the new UCR as quickly as possible.
Transportation Security Measures also Contained in Senate 9/11 Commission Legislation
The 9/11 Commission Senate bill also contained measures dealing with motor carrier, bus, and hazardous material security. They included hazardous materials highway routing, motor carrier high hazard material tracking, establishment of a program for reviewing hazardous material security plans, a truck security assessment, a national public sector response system and over-the-road bus security grants. The House passed version of the 9/11 Commission and transportation security bills do not contain these provisions, so the House-Senate conference on these bills will determine if they are included in the final Conference bill.
CVSA Joins Safety Incentive Coalition
CVSA is teaming up with the Motor and Equipment Manufacturers Association and other groups to seek tax credit legislation to encourage the purchase of safety technologies by motor carriers. There are new safety technology systems entering the market that are proving effective in reducing crashes and saving lives. The challenge is how to encourage more widespread use of such safety systems by motor carriers.
Members of the coalition are looking at such technologies as vehicle stability, land departure warning, forward collision warning; side object detection, and brake monitoring systems. For the legislative effort to be successful, the tax credits would be available for broad categories of safety technology systems, rather than specific technologies.
It is hoped that a bill can be drafted by May 1st.
2007
CR for 2007 Fully Funds Motor Carrier Safety
Last week, the House passed a long-term Fiscal Year 2007 continuing resolution (CR) for the federal government that included DOT-FMCSA programs. It is expected to be taken up by the Senate this week. The temporary CR passed by the last Congress is due to expire on February 15. Despite the fact that most government-wide programs are funded at 2006 levels in the long-term CR, all FMCSA programs, including state grant programs, are funded at the full SAFETEA-LU authorized levels for 2007. This is good news.
The detailed state grant funding levels for 2007 include:
| $ | 197 M | MCSAP |
| $ | 25 M | CDL Grant Program |
| $ | 32 M | Border Grant Program |
| $ | 5 M | PRISM |
| $ | 25 M | CVISN |
| $ | 3 M | Safety Data Improvement |
| $ | 7 M | CDLIS Modernization |
| $ | 294 M | Total |
An additional $3.5 M has been made available for state grant programs under a transfer of Revenue Aligned Budget Authority (RABA) from FHWA. The 2007 level is more than $18 million above 2006.
The amount available for all other FMCSA programs is $223 M.
SSRS Extension Still on the Table
CVSA and NARUC (National Association of Regulatory Utility Commissioners) are continuing efforts to seek an extension of SSRS carrier fees until such time as the new Unified Carrier Registration (UCR) plan is fully implemented. It appears unlikely that the extension can be included in the long-term 2007 CR coming before the Senate this week, but there may be other legislative vehicles coming along in the near future, including a SAFETEA-LU Corrections bill.
Under SAFETEA-LU, states no longer have the authority to collect SSRS fees from for-hire motor carriers as of January 1, 2007. Since the UCR is not yet implemented, this lapse of revenue for the 37 SSRS states is beginning to impact motor carrier safety programs in these states. Some states will have to start terminating motor carrier inspectors as early as April 1. CDL licensing, compliance review and new entrant programs will be affected in other states.
The intent of the UCR provisions in SAFETEA-LU is to create a new carrier registration system and also create a new UCR carrier fee structure that "makes the states whole" for revenues lost to the states when SSRS fees are repealed. The current gap in state funding is therefore inconsistent with the UCR provisions in SAFETEA-LU.
While the new UCR Board has been working hard to fulfill its mission of developing and implementing a new UCR plan since its first meeting in June of 2006, FMCSA's determination last summer that the Administrative Procedures Act applies to the new UCR Board has slowed down the process of developing and implementing a new UCR plan. The timeline for development of the new plan remains uncertain.
The SSRS/UCR issue is critical and we will keep you advised of further developments.
FMCSA Releases 2008 Budget
The Bush Administration sent its 2008 budget to the Congress this week. FMCSA's 2008 budget has been released as well. We will report on this in more detail in the near future.
2007
SSRS No Longer in Effect
As mentioned in our December 13 Legislative Update, the 109th Congress did not pass the FY 2007 DOT Appropriations bill that contained language extending SSRS to January 1, 2008. Therefore, the January 1, 2007 SSRS expiration date as specified in SAFETEA-LU applies and SSRS is no longer in place. For-hire carriers are not being issued an SSRS receipt for 2007.
SAFETEA-LU also specified that a new Unified Carrier Registration Agreement (UCR) replace SSRS. This UCR would establish a new carrier fee structure replacing SSRS fees and provide states with replacement revenue. Under SSRS, states collectively received $100 million.
However, as you are aware, the new UCR plan is not yet in place. This means that states are no longer receiving revenue, that in large part, is used for important motor carrier safety programs. It is likely that at some point in 2007, a new UCR plan will be completed. Until that time, states will suffer the loss of significant revenue. After the plan is developed, a number of states will have to enact enabling legislation adopting the new UCR before receiving this SSRS replacement revenue.
The current circumstances will be discussed at the upcoming UCR Board meeting in Phoenix, Arizona on January 15. The National Association of Regulatory Utility Commissioners' Washington representative, Chris Mele, will attend this meeting and provide the Board with a legislative overview of the new Congress, and discuss the likelihood of obtaining legislative language making SSRS effective for the rest of 2007 so that states will not continue to suffer the lose of revenue used for motor carrier safety programs.
We will keep you advised on developments at the upcoming UCR Board meeting and other issues pertaining to the new Unified Carrier Registration Plan.
For your information we have also attached a memorandum on this issue from Avelino Gutierrez, Chairman of the UCR Board.
