Legislative Outlook

Congress departs for its year-end recess on Dec. 20, and deadlines loom to finalize the FY 2025 appropriations or extend the short-term stop-gap funding bill (Continuing Resolution). The current Continuing Resolution is set to expire on Dec. 20. One thing agreed upon is that additional aid funding for Ukraine will not be included.

FY 2025 Appropriations: Looming Deadlines

The FY 2025 appropriations process is currently stalled as time seems to be waning for this session of Congress. The focus has shifted to enacting another Continuing Resolution and allowing the new 119th Congress to pursue the remaining FY 2025 appropriations. Still, there remains disagreement on topline spending numbers and how long the Continuing Resolution should last. Consensus favors a Mar. 2025 deadline for the next short-term funding bill.

Disaster Supplemental Funding

Lawmakers are still reviewing President Biden’s nearly $100 billion supplemental disaster aid request, with appropriators from both parties engaged in negotiating maximum spending numbers for the package. Although there is support from both parties for a supplemental disaster aid package, the total topline funding number could likely be lower than the White House requested. The House Freedom Caucus has issued a statement calling for the package to be fully offset fiscally, which could mean cuts elsewhere. We expect a final aid package will be attached to the next Continuing Resolution. The last time Congress passed a comprehensive disaster relief package was Dec. 2022 as part of the Consolidated Appropriations Act of 2023.

Committee Leadership in the New Congress

The race is on for several key leadership positions in the New Congress. Seniority or elected tenure broadly dictates which members of the majority party or minority party are in line for these top posts (Chairman, Ranking Member). However, the Committee membership technically votes on them and then ratifies them by each party’s entire Conference. Under the current internal party rules, some term limitations are in place for leadership roles, which could lead to jockeying and shifting around. A Republican Senator can serve six years as a Committee Chair and six years as a Ranking Member. Once a lawmaker has served six years as Chair, however, they can no longer serve as a Ranking Member. Under the current internal party rules, a Republican House of Representatives member is prohibited from serving more than three consecutive terms as Chair or Ranking Member of a Committee or Subcommittee. There is a slight difference in that the three-term limit includes time when they are not in the majority or the controlling party. A member seeking a special exception to these rules must seek a waiver.

Of note is that Sen. Ted Cruz is in line to lead the Senate Commerce, Science, and Transportation Committee, where he is currently the Ranking Member. Sen. Mike Lee of Utah is expected to head the Senate Energy and Natural Resources Committee. Sen. Rand Paul of Kentucky is in line to chair the Senate Homeland Security and Governmental Affairs Committee. Other Senate leadership positions are still being discussed and negotiated. Several waivers are being sought for leadership positions in the House of Representatives. As the results of those waiver requests, special elections, and other administrative procedures are patiently awaited, many committee leadership positions will not come into focus until the new year. Transportation & Infrastructure Committee Chair Rep. Sam Graves (R-MO) has successfully secured a waiver to continue as Chairman of the Committee.

Nominations to Lead the New Administration

While formal nominations will not begin until the new Administration is sworn in and a new term of Congress has begun, nomination meetings between proposed nominees and Senate Congressional Committee members are already taking place. Some key names to keep an eye on throughout the nomination and confirmation process include:

Interior Secretary: Doug Burgum
Secretary of Energy: Chris Wright
Secretary of Transportation: Sean Duffy
Secretary of Commerce: Howard Lutnick
Secretary of Labor: Lori Chavez-DeRemer
Secretary of Homeland Security: Kristi Noem
EPA Administrator: Lee Zeldin
U.S. Trade Representative: Jamieson Greer
Administrator of the Small Business Administration: Kelly Loeffler
Commissioner of U.S. Customs and Border Protection: Rodney Scott
“Department of Government Efficiency”*: Elon Musk and Vivek Ramaswamy

*Note that DOGE is not planned to be a federal executive department, the creation of which would require the approval of the United States Congress. It will operate more as a presidential advisory committee.

We will keep you informed and updated throughout the Senate confirmation process for the new Administration.

Regulatory/Administration

U.S. Department of Transportation (USDOT)

Drug and Alcohol Testing Records

On Oct. 15, USDOT published a notice of proposed rulemaking (NPRM), which would amend the regulations for conducting workplace drug and alcohol testing to allow, but not require, electronic signatures on documents required to be created and utilized under the regulations, the use of electronic versions of forms, and the electronic storage of forms and data. The regulatory changes would apply to USDOT-regulated employers and their contractors who administer their USDOT-regulated drug and alcohol testing programs. Comments are due Dec. 16.

Oral Drug Testing Procedures

On Nov. 5, the USDOT published a final rule revising a previous final rule on drug and alcohol testing procedures published May 2, 2023. The new final rule provides temporary qualification requirements for mock oral fluid monitors and consistent requirements by identifying which individuals may be present during an oral fluid collection. It clarifies how collectors must document that a sufficient volume of oral fluid was collected. The new procedures went into effect on Dec. 5, 2024.

Update: USDOT recently proposed revising its finalized drug testing procedures rule, which just became effective, to provide interim provisions requiring the conduct of directly observed urine tests in situations where oral fluid tests are currently required but not yet available. This is being done to address unforeseen circumstances that render it impossible to comply with the requirements in the final rule. Comments are due January 8, 2025.

Federal Highways Administration (FHWA)

New Guidance for Congestion Mitigation Program On Nov. 6, FHWA published notice announcing the availability of FHWA Congestion Mitigation and Air Quality (CMAQ) Grant Program Interim Guidance. The Interim Guidance provides information and guidance on eligibility, transfer, and other CMAQ Program requirements as amended by the 2021 Bipartisan Infrastructure Law or Infrastructure Investment and Jobs Act. The Interim Guidance is effective Nov. 6, 2024. Comments are due Jan. 6, 2025.

Federal Motor Carrier Safety Administration (FMCSA)

New Registration System

On Oct 21, FMCSA held its third “stakeholder day” event to enable the public to review its new registration system. It was a hybrid event, allowing for both in-person and virtual participation. In-person meeting participants tested the new system and provided feedback. A recording of the event can be found here.

Safety Advisory Committee to Meet

On Dec. 3, FMCSA published notice of the next Motor Carrier Safety Advisory Committee or MCSAC meeting, which will be held virtually Dec. 17-18, from 10am to 4pm EST. ABA sits on this committee as a member and will participate; however, the public may also participate. Participation in the event requires registration, and the current agenda includes discussions of CMV parking, CMV Crash Data Trends, and Driver Seat Belt Usage. Register for the meeting and for meeting materials.

Drug & Alcohol Clearing House – Loss of CDL Privileges

Beginning Nov. 18, commercial motor vehicle operators with a “prohibited” status in the Drug and Alcohol Clearinghouse will lose their Commercial Driver’s License (CDL) or Commercial Learner’s Permit (CLP). Under the newly implemented regulations, prohibited status drivers with an active CDL will have their CDL downgraded, and prohibited status drivers seeking a CDL will be denied. Drivers in this status must complete the return-to-duty process before their CDL or CLP can be restored. FMCSA resources linked here describe the necessary return-to-duty process for affected drivers.

Under the Hood Exemption for School Bus Driver CDL Applicants

FMCSA announced on Dec. 2, 2024, its renewal of the exemption permitting commercial driver’s license (CDL) applicants seeking a school bus endorsement to forgo the engine compartment portion of the pre-trip vehicle inspection skills testing requirement, known informally as the “under-the-hood” testing requirement. The National School Transportation Association requested the initial exemption and renewal. Drivers issued CDLs pursuant to the requested exemption are restricted to intrastate operation of school buses only. The exemption is effective from Nov. 28, 2024, through Nov. 28, 2026.

SMS Methodology

On Nov. 20, FMCSA issued notice announcing enhancements to its Safety Measurement System (SMS). The new enhancements reflect and respond to comments from FMCSA’s Feb. 2023 notice proposing changes to the system, when the Agency also provided operators an opportunity to use a “prioritization preview” to see how the proposed changes would affect their prioritization results, along with three Q-and-A sessions. FMCSA has not yet announced the implementation date for these planned changes.

Crash Preventability Program Updated

On Dec. 4, FMCSA published notice finalizing proposed changes to the Crash Preventability Determination Program (CPDP) and outlining steps for implementation. This notice finalizes changes FMCSA initially proposed in a April 2023 notice, which includes expanding existing crash types and adding new ones. The information from this program is incorporated into the Agency’s Safety Measurement System to distinguish not-preventable collisions from preventable ones. FMCSA will post information on the CPDP website: Crash Preventability Determination Program (CPDP) | FMCSA, notifying the public of the date when the changes will be in effect.

Federal Transit Administration (FTA)

Transit Safety Directive

On Sept. 25, FTA issued a General Directive to address safety risks related to assaults on transit workers. The directive requires each transit agency subject to FTA’s Public Transportation Agency Safety Plans (PTASP) final rule to take certain actions to be compliant. You can register to attend a webinar providing more information about the directive. Comments to the General Directive are due Dec. 26.

Revised Grant Guidance

On Sept. 27, FTA published notice of updated program guidance for several grants programs and award management requirements. Motorcoach operators will want to review the changes to the Urbanized Areas Formula Grant Programs Guidance, C 9050.1A, which covers the Urbanized Area Formula Grants Program (5307); the State of Good Repair Grants Program (5337); and the Urbanized Area formula component of the Grants for Buses and Bus Facilities Program (5339(a)) as well as the Rural Areas Formula Grant Program Guidance, C 9040.1H, which covers the Buses and Bus Facilities Program (5339(a)); Formula Grants for Rural Areas Program (5311/5311(f)); and the Tribal Transit Program (5311(c)). Training videos detailing the changes to each circular have been posted. View the videos here. The new guidance was effective Nov. 1.

Third-Party Contracting Guidance

On Nov. 27, FTA published notice of proposed changes to Third Party Contracting Guidance. The updated circular would cancel and replace Circular FTA C 4220.1F, most recently revised Mar. 18, 2013. Comments are due Dec. 27.

2025 Drug and Alcohol Testing Rates

On Nov. 26, FTA published notice announcing the 2025 drug and alcohol random testing rates for specific recipients of FTA financial assistance. The minimum random drug testing rate will remain at 50 percent, and the random alcohol testing rate will remain at 10 percent. These testing rates go into effect on Jan. 1, 2025.

National Highway Traffic Safety Administration (NHTSA)

Final Rule on Motorcoach Window Glazing and Anti-Ejection Measures

On Oct. 30, NHTSA published a final rule establishing new Federal Motor Vehicle Safety Standard (FMVSS) No. 217a, “Anti-ejection glazing for bus portals.” The rule forces installation of advanced window glazing in over-the-road buses (motorcoaches) and other large buses to reduce passenger and driver ejections and was directed by statute. This final rule, issued pursuant to statute, specifies impactor tests of the glazing material of side and roof windows. The rule is effective Dec. 30, with compliance required by Oct. 30, 2027. Petitions for reconsideration must be filed by Dec. 16, 2024.

HOLON seeks Autonomous Electric Bus Operating Exemption

On Nov. 8, NHTSA published a notice of a petition for temporary exemption received from HOLON and HOLON U.S. Inc, from requirements in multiple FMVSSs for its “automated electric bus.” The vehicle is equipped with an Automated Driving System (ADS), and thus not equipped with manually operated driving controls or features in compliance with the FMVSS requirements. Comments must be received by Jan. 7, 2025.

U.S. Department of Homeland Security (DHS)

U.S. Customs and Border Protection (CBP)

Ports of Entry Operating Hours

On Nov. 11, CBP announced adjustments to the hours of operation for 38 ports of entry along the U.S.-Canadian border. The new operating hours will go into effect at midnight on Jan. 6, 2025. Locate ports of entry and access border wait times.

Transportation Security Administration (TSA)

Cybersecurity Rules

On Nov. 7, TSA published a notice of proposed rulemaking (NPRM) to implement cybersecurity rules across all modes of critical infrastructure. The rule is primarily a codification of the existing temporary Security Directives. The proposed rules will apply to scheduled service bus operators providing service to 10 specifically identified UASI areas under 49 CFR 1584. Comments are due Feb. 5, 2025.

U.S. Environmental Protection Agency (EPA)

Diesel Emissions Reduction Act (DERA) Grants

On Oct. 17, EPA announced $125 million in DERA grant funding to upgrade and replace diesel engines for FY 2023. The grants will allow recipients to upgrade older diesel engines to cleaner, zero-emission solutions. View the grant recipients.

U.S. Department of the Interior (DOI)

National Park Service (NPS)

Online Commercial Use Authorization (CUA) Application Portal

On Oct. 17, NPS announced via its website that those park units that have historically required road-based commercial tour (RBCT) CUAs will utilize a new online application system for the 2025 tour season CUA applications. The parks will open up their individual CUA application periods at varying times and at their discretion, but the online system will be used going forward.

The rollout for 2025 Road Based Commercial Tour CUA applications was supposed to open in early November 2024, but it has been delayed due to technical issues with the online Application and Reporting System. It should be fixed soon, so please check the website regularly for updates. The RBCT CUAs will be issued for one year and expire on Dec. 31, 2025. CUA applications will not be accepted after March 31, 2025.

NOTE: Motorcoach operators who provide chartered transportation services only are no longer required to apply for and secure an RBCT CUA, as the commercial tour provider is responsible for obtaining one.

Concessionaire for National Mall Interpretive Tours

On Oct. 15, the NPS posted an announcement offering a 10-year concessions opportunity for interpretive transportation services within National Mall and Memorial Parks. The contract may be awarded to up to three operators. Interested parties must inform National Capital Region Concessions Program Manager Jason Freeze via email no later than 4 p.m. ET on Dec. 27, 2024, to submit a proposal. Completed proposals must be submitted by Jan. 10, 2025.

U.S. Department of Labor (DOL)

Occupational Safety and Health Administration (OSHA)

Heat Standard Notice of Proposed Rulemaking (NPRM)

On Aug. 30, OSHA published an NPRM establishing standards to protect from heat injury and illnesses in outdoor and indoor work settings. The proposal would apply to all employers conducting outdoor and indoor work in all general industry, construction, maritime, transportation, and agriculture sectors where OSHA has jurisdiction. Briefly, the rule would require employers to create a plan to evaluate and control heat hazards in their workplace and clarify employer obligations and the steps necessary to protect employees from hazardous heat effectively. ABA has filed an extension request for additional time to file comments. The comment deadline has been extended; comments are now due Jan. 14, 2025. A public hearing has been scheduled for June 16, 2025.

Wage & Hour Division (WHD)

Overtime Pay Thresholds

On April 26, the WHD announced a final rule increasing the salary thresholds that trigger overtime pay or exemption for salaried executive, administrative or professional employee from federal overtime pay requirements. The annual salary threshold increased to $43,888 on July 1, 2024; and was set to increase to $58,656 on Jan. 1, 2025 automatically. On Nov. 15, the U.S. District Court for the Eastern District of Texas found that DOL exceeded its authority to issue the final rule and struck it down.

U.S. Treasury Department

Financial Crimes Enforcement Network (FinCEN)

Beneficial Ownership Information (BOI) Reporting Requirements

On Sept. 30, 2022, FinCEN published a final rule imposing new reporting requirements to implement the Corporate Transparency Act. The new requirements went into effect Jan. 1, 2024, and fell heavily on small businesses. Under the rule, reporting companies created or registered to do business before Jan. 1, 2024, had until the end of this year to comply with the reporting requirements.

On Dec. 3, the U.S. District Court for the Eastern District of Texas put in place a nationwide pause on enforcement of the Corporate Transparency Act and its implementing regulations, i.e. the FinCEN BOI Reporting Rule. The pause or preliminary injunction is in place until further notice from the court. We anticipate FinCEN publishing a statement or other guidance addressing the Court’s ruling in the coming weeks.

OTHER

NEW YORK STATE

New Charter Bus Seatbelt Law

In October, New York State enacted legislation requiring children to use seatbelts when riding in charter buses. The new law would require charter bus passengers aged 8 or older to use safety restraints while onboard or face a $50 fine, and police could ticket the parents of passengers between ages 8 and 15 if the parent or guardian was around when the violation occurred. The law defines a charter bus as a bus manufactured or assembled on or after Nov. 28, 2016, transporting passengers for compensation in a chartered party. The new law goes into effect on Apr. 21, 2025.

New York Congestion Pricing Modified and Reinstated

On Nov. 22, the Governor of New York announced a revised final tolling scheme to implement congestion pricing. Starting Jan. 5, 2025, the new tolling program will begin. Currently, the toll rate schedule for buses is as follows: Intercity scheduled service buses and commuter buses under contract to a government or with schedules open to the public are exempted from tolls; Charter buses will be charged $14.40 for entry into the Central Business District, and Tour or Sightseeing buses will be charged $21.60. The plan intends to phase in over a 6-year period with periodic increases.

View the full toll schedule. Motorcoach companies will be tolled via EZ-Pass.
Read the explanation of MTA’s Bus Exemption Plan and apply for a bus-related exemption.

An informational outreach campaign is underway, general webinars will take place Monday, Dec. 16, at 6 p.m.; and Thursday, Dec. 19, 11:30 a.m.-12:30 p.m. Participants can submit questions in advance through the registration links. (All times Eastern.)

Government Affairs and Policy Report: November/December 2024

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