In a significant move towards modernizing the trucking industry, the U.S. House Transportation and Infrastructure Committee recently passed a series of bills aimed at enhancing the supply chain and averting future disruptions. These proposed legislations, five of which directly impact the trucking sector, are now set to be debated on the House floor. While the majority of these bills have been welcomed by industry stakeholders, a few have sparked debate and drawn criticism. This article delves into the details of these bills, their potential impact on the trucking industry, and the mixed reactions they have elicited from various stakeholders.
A Legislative Push to Improve the Supply Chain
In a bid to enhance the supply chain and avert future disruptions, the U.S. House Transportation and Infrastructure Committee recently approved several bills for consideration on the House floor. Five of these bills have direct implications for the trucking industry. While most of these bills sailed through the Committee vote, a few have raised concerns among stakeholders.
Addressing Truck Parking Concerns with HR2367
One of the primary concerns in the trucking industry is the lack of adequate parking. The “Truck Parking Improvement Act,” or HR2367, aims to tackle this issue. Introduced by Rep. Mike Bost (R-IL), the bill proposes the construction of commercial motor vehicle parking at both existing and new parking areas. The bill, which has been passed out of committee with a 60-4 vote, also mandates that these parking spaces be accessible to all commercial motor vehicles free of charge.
Streamlining CDL Licensing with HR3013
Another significant bill is HR3013, “The Licensing Individual Commercial Exam-takers Now Safely and Efficiently (LICENSE) Act of 2023,” sponsored by Rep. Darin LaHood (R-IL). This bill aims to ease regulatory restrictions on CDL licensing by permanently implementing two waivers issued by the Federal Motor Carrier Safety Administration (FMCSA) during the COVID-19 pandemic. These waivers, which improve the efficiency of the testing process, allow CDL examiners to provide both the skills and knowledge portions of the tests and to offer the skills test regardless of where the candidate received training.
Weight Variance and Alternative Fuel Vehicles
Additional bills passed by the committee address weight increases for specific products that motor carriers haul regularly and for alternative-fuel vehicles. HR3318, sponsored by Rep. Rick Crawford (R-AR), establishes a 10% axle weight variance for dry bulk products, provided there is no increase in the overall federal gross vehicle weight (GVW) limit. HR2948, the “Carrying Automobiles Responsibly and Safely (CARS) Act,” sponsored by Rep. Lance Gooden (R-TX), seeks to account for the increasing weight of newer vehicles by allowing a 10% weight increase for specific types of automobile transporters. HR3447, sponsored by Rep. Greg Stanton (D-AZ), provides a 2,000-pound weight exemption for hydrogen-powered vehicles, mirroring the exemption given to vehicles powered by natural gas and batteries.
Mixed Reactions from the Trucking Industry
While all the bills have found favor among stakeholders, some in the trucking industry have expressed reservations. David Heller, senior vice president of safety and government affairs for the Truckload Carriers Association (TCA), has voiced concerns over provisions that would allow for weight increases over 80,000 pounds. As the bills await floor debate, the trucking industry continues to advocate for supply chain solutions that will benefit the truckload segment of the industry and voice opposition to weight increases that could jeopardize safety on our highways.
Impact on Operational Costs and Commercial Truck Insurance
The proposed legislations, if passed, could have a significant impact on the operational costs of running a trucking business, including the cost of commercial truck insurance.
Operational Costs
The “Truck Parking Improvement Act” and the “Licensing Individual Commercial Exam-takers Now Safely and Efficiently (LICENSE) Act of 2023” could potentially reduce operational costs. By providing free, accessible parking for commercial vehicles, the “Truck Parking Improvement Act” could lower expenses related to parking fees and fines. The “LICENSE Act” could streamline the process of obtaining a CDL, reducing administrative costs and time spent on regulatory compliance.However, the bills related to weight increases for specific products and alternative-fuel vehicles could increase operational costs. For instance, trucks hauling dry bulk cargo or newer, heavier vehicles may require additional maintenance due to increased wear and tear. Additionally, investing in alternative fuel trucks, as encouraged by HR3447, could entail significant upfront costs.
Commercial Truck Insurance Costs
The impact on commercial truck insurance costs is less straightforward. On one hand, measures that improve safety, such as the expansion of truck parking, could potentially lower insurance premiums. On the other hand, commercial truck insurance costs could rise due to increased liability associated with hauling heavier loads or the higher value of alternative-fuel vehicles.Moreover, insurance companies may adjust their rates based on the perceived risk associated with the regulatory changes. For instance, if weight variance bills lead to an increase in accidents, insurers may raise premiums for trucks hauling dry bulk cargo or newer, heavier vehicles.In conclusion, while these bills aim to improve the efficiency and safety of the trucking industry, they could also lead to changes in operational and insurance costs. Trucking businesses should closely monitor these legislative developments and consider their potential financial implications.
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