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From SCDigest's On-Target E-Magazine

- Dec. 9, 2015 -

 

Supply Chain News: The New US Highway Bill - What's in It, What Isn't?


Bill in the End Largely Maintains the Status Quo, with Several Key Changes Sought by Transport Sector Out of Final Legislation

 

SCDigest Editorial Staff

 

There is much glad handing all around Washington DC, as Congress passed a new Surface Transportation bill - more generally referred to as the Highway Bill - on December 1, and President Obama signed it into law last week.
This five-year, $305 billion bill is the first such authorization of more than two years in since 1987, and at last moves past several years of a seemingly never ending series of continuing resolutions that maintained spending at the levels authorized in the last full Highway bill, called MAP-21, in 2012.

SCDigest Says:

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this is mostly a status quo bill with a modest increase in funding that barely keeps up with inflation if even that, and makes no changes in several areas keys to the transport sector
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Coming in at a massive 1300 pages, few have waded all the way through the new law. Relying on multiple sources, below we offer a concise summary of what is in and not in the new legislation:


In:

An approximate 15% increase in funding for highway related spending, and 18% on other transit projects: Still, the $300 billion or so allocated is far below the $400 billion over six years sought by the Obama administration, and others believe is well shy of the total dollars needed to meaningfully improve US logistics infrastructure.

What appears to be full funding of the five-year spending program:
New revenue sources created to make that happen include appropriating some of the dividends large banks receive from the Federal Reserve (though not quite as big a money grab as was in earlier versions of the law) and directly appropriating other finds now going to the Fed. Some critics, however, are saying some of the revenue sources are dubious and may lead to funding challenges again down the road before the new bill expires.

Reform of the Federal Motor Carrier Safety Administration's Carrier Safety Accountability program, changes much desired by carrier groups: In parallel with this legislative change, the Federal Motor Carrier Safety Administration (FMCSA) announced it was on its own going to stop making this driver-level safety data publicly available. The truck industry has argued the government's methodology for determining the scores is unfair.

A mandate that the Department of Health and Human Services set standards for hair testing of truck drivers: this should now usher this in as a standard practice.

A directive to the US comptroller to study autonomous vehicle technology by no later than 2017: though the practical impact of this is far from clear. Ditto with a directive that the US Department of Transportation pay for the "large scale installation and operation of advanced transportation technologies," whatever that means.

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Not in:

Any change to current gasoline and diesel taxes, which have not increased since 1993 despite considerable inflation since then and much improved car and truck mileage: That in turn means the Highway Trust fund will continue to come up short versus authorized spend and will require transfer's from the country's general fund. The American Trucking Associations, the Business Roundtable and many other groups have called for significant increases in fuel taxes.

Language that would allow heavier or longer (twin 33-foot trailers) on federal highways, changes long sought by shipper groups and some carriers: These two issues have now become much like Lucy pulling the football away from Charlie Brown, seemingly within reach of passage many times only to fall by the wayside in the final legislation.

Changes that would allow pilot programs for under age 21 drivers to drive across state boundaries: This is another change that looked likely to be in a few months ago, but also was pulled in the final bill, except for language that will allow such pilots for US military veterans - but how many vets come out of service before they turn 21? ) Reservists are also included in the allowed tests. Many states already allow under age 21 drivers within their own orders. The ATA commented that "It is puzzling why Congress would dispense with language from both chambers that was very similar in many respects in favor of a provision [in the final bill] that was so starkly different."

Language that would clarify the federal/FMCSA pre-eminent role in setting standards around Hours of Service and relate rules for driver operations, changes sought by carrier groups in the face of looming regulations at the state level: The ATA commented that "This bill opens the door for a hodgepodge of state regulations that will harm the safety and efficiency of the trucking industry. We hope Congress will quickly revisit this issue."

Language that would have expanded the number of states eligible to impose new tolls under the Interstate System Reconstruction & Rehabilitation Pilot Program: This potential change was much opposed by the trucking industry, though another part of the bill does extend another tolling program.

Any sort of overarching governmental strategy for encouraging the private sector to develop driverless cars, nor any acknowledgement that driverless technology may shape the infrastructure of the future.

Undoubtedly we'll learn more, as again we have to "pass the bill to find out what's in it."

All that said, this is mostly a status quo bill with a modest increase in funding that barely keeps up with inflation if even that, and makes no changes in key areas such as fuel taxes, heavier/longer trucks, younger drivers and other issues key to the transport sector, while largely skirting any bold changes to the future of US freight transportation.

At least we will be done - it appears - with the on-going drama about whether the latest continuing resolution will be passed before the Highway fund goes broker for a few years.

Any reaction to the details of this new Highway bill? Is it meaningful in any way? Does any of it matter to shippers? Let us know your thoughts at the Feedback button below (email) or in the Feedback section. Anonymity will be provided upon request.


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