U.S. Legislative Issues



 

Senate Committee Passes Transportation Bill

On May 15, the Senate Environment and Public Works (EPW) Committee approved a bipartisan six year, $265 billion transportation bill. It does not address the central issue of how to fund highway and bridge projects, a matter being left until later for congressional tax-writers on the Senate Finance Committee. The bill was introduced by Senator Barbra Boxer (D-CA), EPW Committee Chairwoman, along with Ranking Member David Vitter (R-LA), Transportation and Infrastructure Subcommittee Chairman Senator Tom Carper (D-DE),  and Subcommittee Ranking Member Senator John Barrasso (R-WY).

The bill is now scheduled for a committee hearing on June 3 before the Senate Commerce Committee, which share’s jurisdiction on the bill. The Senate Banking Committee, which oversees the mass transit portion of the bill, and the Senate Finance Committee, which oversees the funding mechanisms for the bill, will also hold hearings on the bill, but have not yet publicly announced them.

Unlike the President’s transportation proposal, released in late April, the Senate version does not contain any provisions for expanding tolling, nor does it propose an increase in the gas tax.

The Highway Trust Fund is expected to become insolvent in August and the current transportation bill, MAP-21, expires in September. Money for the Highway Trust Fund comes from taxes on gasoline and diesel, but the tax, which hasn’t been raised since 1993, has fallen victim to inflation and has not kept pace with the rising cost of labor and construction materials. The tax of 18.4 cents-per-gallon of gas and 24.4 cents-per-gallon of diesel brings in approximately $34 billion per year, which is below the current level of federal transportation spending of approximately $50 billion per year.

General Motors Hit with $35 Million Fine

The Department of Transportation’s National Highway Transportation Safety Administration (NHTSA) announced a fine of $35 Million for General Motors on May 16 for failing to respond to ignition problems sooner. The fine comes as investigations by the Department of Justice and several Congressional Committees, as well as an internal investigation by GM itself, continue to probe the automaker. The fine is the maximum an automaker can be fined under current law, and officials in the Obama Administration as well as several members of Congress have said it’s not enough. Among other policy proposals in the President’s transportation bill, released in April, the fine would be raised to $300 Million, and a trio of Senate Democrats introduced a bill on May 22 to remove the cap completely.

Government Accountability Office Studies Cost Savings in Federal Fleets

The Government Accountability Office (GAO) released a study in May of 2014 that examined cost saving opportunities for federal fleets. The report looked at the General Services Administration, which manages the buildings, vehicles, furniture, computers, and the like for the federal government. Two of the areas that the study focused on were the terms on which vehicles were leased to the various government agencies that use them, and the cost saving potential of a wider adoption of telematics devices. The study found that changing the terms of the leases to include the actual amount of fuel used in the monthly leasing fee, instead of just the number of miles traveled, could offer an incentive against excessive idling and speeding, and therefore reduce cost. Secondly, the study found that the use of telematics devices could provide valuable information about fleet usage, and assist in decisions about fleet right-sizing.

FMCSA Issues Proposal to Address Driver Coercion

The Federal Motor Carrier Safety Administration (FMCSA) has issued a proposed rule that would prohibit motor carriers, shippers and receivers from "coercing" drivers into violating federal hours of service limits, CDL license requirements, drug and alcohol testing rules, and other U.S. DOT regulations. The proposal comes on the heels of the proposals to require Electronic Logging Devices (ELDs) in some commercial vehicles, which some drivers fear may lead to coercion by motor carriers. The FMCSA believes the rule is necessary due to increased economic pressures on drivers to deliver products on a schedule that is difficult or impossible to meet without violating U.S. DOT regulations.

The FMCSA cites complaints from drivers who refuse to violate federal regulations and are subsequently threatened, either implicitly or explicitly with job loss, reduced pay, fewer loads, or unfavorable schedules. The proposed rule would hold carriers, shippers and receivers liable for such coercive pressure and impose maximum penalties of $11,000 and possible loss of operating authority. The proposed rule requires drivers to prove that the entity exerting coercive pressure "knew or should have known" it would lead to violation of U.S. DOT regulations – a very difficult and high standard of proof to maintain. The rule is aimed primarily at long haul drivers but has implications for short hauler operations as well.