Government Affairs and Policy Report – October 2024
Election Season
Following the passage of a short-term continuing resolution to keep the Federal Government funded through December 20, both the House and Senate recessed. Members are expected to return to D.C. shortly following the November 5 elections for a lame-duck session before a new President and Congress swearing-in in January.
Transportation will also take center stage in this year’s elections. More than 120 transportation-related ballot measures across the country are being tracked. Billions of dollars in funding, new policy measures, and important decisions about the future of transportation are all on the line. Find out additional information about transportation measures in your neck of the woods.
FY 2025 Appropriations
Congress is expected to return to start the “lame duck” session on Nov. 12, with FY 2025 appropriations to settle along with several other significant programs for defense and agriculture. ABA’s eyes are focused on preserving or increasing intercity bus security grant funding and removing dangerous provisions related to meal and rest break rules. Several Medicare programs, waiver flexibilities, and temporary reimbursement increases expire on December 31. Other legislation considered “must pass” are the National Defense Authorization Act (NDAA) and the Farm Bill. The House passed its NDAA in June, while the Senate has yet to bring a bill to the floor. Similar to the appropriations process, the leadership of the House and Senate Armed Services committees are negotiating a final package that will hopefully receive a vote in December. Not as much progress has been made on the Farm Bill, and some of that bill has technically expired. Both the Farm Bill or extension and the NDAA could be targets for other unrelated policies or programs to be attached as they move through Congress.
In the Senate, the main focus will be confirming appointments to the federal judiciary before a new Presidential Administration succeeds the Biden Administration. That will not leave much time to take up legislation that is not considered “must pass.” Legislation that could fall victim to the tight schedule includes reauthorizing the Workforce Innovation and Opportunity Act (WIOA).
Tax
Although there have been continuing discussions expressing interest in addressing several tax provisions in Congress and trying to do something about tax during the lame-duck session following the elections, it appears to be a long shot. Before departing for the August recess, Majority Leader Schumer scheduled a vote in the Senate on HR 7024, the bipartisan tax bill passed early this year, including extending bonus depreciation at 100% and business interest deduction provisions. However, Republicans in the Senate remain opposed to the bill. Many provisions from the 2017 Tax Cuts and Jobs Act expire in 2025, and many hope to be in a better negotiating position in the next Congress.
Regulatory/Administration
US DEPARTMENT OF TRANSPORTATION (USDOT)
Requests Comments on Electronic Signatures, Forms and Storage for Drug and Alcohol Testing Records
On Oct. 15, the U.S. Department of Transportation (DOT) requested comments on 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 U.S. DOT-regulated employers and their contractors who administer their U.S. DOT-regulated drug and alcohol testing programs. Comments are due by Dec. 16.
Revises Oral Drug Testing Procedures
The USDOT published a revision of its drug and alcohol testing procedures, as amended by a final rule published on May 2, 2023, to provide temporary qualification requirements for mock oral fluid monitors, provide for consistent requirements by identifying which individuals may be present during an oral fluid collection, and clarify how collectors are to document that a sufficient volume of oral fluid was collected. The new procedures will go into effect on Dec. 5, 2024.
Federal Motor Carrier Safety Administration (FMCSA)
Request Comments on New Registration System
FMCSA published a notice announcing a public meeting to review its new registration system. FMCSA’s Registration Modernization Stakeholder Day III will be a hybrid event, taking place at the DOT Headquarters in Washington, DC, for 100 participants (in-person) and 500 participants (via Zoom) on Oct. 21, 2024, from 1 to 4 p.m. You can still register for the online meeting.
Drivers in “Prohibited” Drug and Alcohol Clearinghouse Status Will Lose CDL Privileges
Beginning on November 18, 2024, 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. An FMCSA resource describes the steps drivers must take to complete the return-to-duty process.
FY 2025 Unified Carrier Registration Fees
FMCSA published a final rule (including a fee schedule at the end) setting the 2025 Registration Year fees for the UCR program. The fees for 2025 will be ~25% more than in 2024. All states must enforce UCR requirements, regardless of being a member state participant. The UCR applies to all motor carriers and brokers required to register with FMCSA, including operators in Canada and Mexico. The 2025 UCR registration period began Oct. 1, 2024.
UCR Plan Board Requests Nominations for Motor Carrier Industry Position
On Oct. 15, the Unified Carrier Registration (UCR) Plan Board of Directors requested nominations of qualified individuals for possible appointment by the Federal Motor Carrier Safety Administration (FMCSA) to one of the Board’s motor carrier industry positions. Nominations are due by Nov. 14.
Requests Comments on Camera Replacement for Mirrors, Smart-Vision Exemption
On Oct. 18, FMCSA requested comment on an application for exemption from Vision Systems North America Inc. (VSNA), which would allow motor carriers to operate CMVs with the company’s Smart-Vision high-definition camera monitoring system installed as an alternative to the two rear-vision mirrors required by the Federal Motor Carrier Safety Regulations. Comments are due by Nov. 18.
National Highway Traffic Safety Administration (NHTSA)
Final Rule on Motorcoach Window Glazing and Anti-Ejection Measures
On October 30, 2024, NHTSA published a final rule establishing a new Federal Motor Vehicle Safety Standard (FMVSS) No. 217a, “Anti-ejection glazing for bus portals.” The rule, which has been under development for many years, aims to reduce passenger and driver ejections by requiring the installation of advanced window glazing in over-the-road buses (motorcoaches) and other large buses.
This final rule, issued under the Moving Ahead for Progress in the 21st Century Act (MAP-21), specifies impactor tests of the glazing material of side and roof windows. The new rule goes into effect December 30, 2024. The compliance date for the new rule is October 30, 2027. Petitions for reconsideration must be filed by December 16, 2024.
Federal Transit Administration (FTA)
Issues Transit Safety Directive
On September 25, the FTA issued a General Directive to address the safety risk related to assaults on transit workers. The General Directive requires each transit agency subject to FTA’s Public Transportation Agency Safety Plans (PTASP) Final Rule to conduct a safety risk assessment, identify safety risk mitigations or strategies, and provide information to FTA on how it is assessing, mitigating, and monitoring the safety risk associated with assaults on transit workers. More information about the General Directive and webinar sign up is available online. Comments to the General Directive are due Dec. 26, 2024.
Publishes Revised Grant Guidance
On Sept. 27, the FTA announced it has updated its program guidance and award management requirements for several grant programs. 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 will be posted each Friday from Oct. 18 through November 15, 2024. View them here. The new guidance is effective as of Nov.1, 2024.
US DRUG ENFORCEMENT ADMINISTRATION (DEA)
Issues Warning About Illegal Online Pharmacies
On Oct. 4, the DEA announced it has seen an increase in illegal online pharmacies selling and shipping counterfeit pills made with fentanyl and methamphetamine to unsuspecting customers in the United States who believe they are purchasing real pharmaceutical drugs such as Oxycodone, Adderall, Xanax, and other drugs from legitimate pharmacies. Find more information on how to buy medicines safely from online pharmacies.
Marijuana Rescheduling Hearing Likely Delayed to 2025
The DEA has contacted 25 “designated participants” to testify at a Dec. 2 hearing about marijuana rescheduling. Before marijuana can be moved from Schedule 1 to Schedule 3 of the Controlled Substances Act, the DEA Administrator ordered that the matter go before an administrative law judge. The judge has already ruled that additional in-person testimony in the DEA’s hearing on marijuana rescheduling will begin in either January or February 2025.
In the interim, the judge seeks further clarification regarding participants’ positions and how they “would be sufficiently ‘adversely affected or aggrieved’ by the proposed scheduling action to qualify as an ‘interested person’ under the [federal] regulations.”
US ENVIRONMENTAL PROTECTION AGENCY (EPA)
Grant Awards Announced to Upgrade and Replace Diesel Engines
On October 17, the Environmental Protection Agency (EPA) announced $125 million in grant awards for its Diesel Emissions Reduction Act (DERA) grant program for FY 2023. The grants will allow recipients to upgrade older diesel engines to cleaner, zero-emission solutions. View the grant recipients.
US DEPARTMENT OF THE INTERIOR (DOI)
National Park Service (NPS)
Announces Online CUA Applications for Parks
The NPS announced on its website on Oct. 17 that the park units that have historically required road-based commercial tour (RBCT) commercial use authorizations (CUA) 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 their discretion, but the online system will be used going forward. Application and CUA fees will also shift to nationally standardized amounts for the 2026 tour season.
Seeks Concessionaire for National Mall Interpretive Tours
On Oct. 15, the NPS announced it is offering a 10-year concessions opportunity for interpretive transportation services within the National Mall and Memorial Parks. The contract may be awarded to up to three operators. The NPS seeks business proposals detailing how offerors would provide year-round interpretive transportation tour services, with a hop-on and hop-off tour route that stops at a minimum of 11 defined locations. Additional services may include other interpretive transportation tour routes with a stop within the park.
Individuals or interested entities planning to submit a proposal in response to this solicitation must notify National Capital Region Concessions Program Manager Jason Freeze via email at jason_freeze@nps.gov no later than 4 p.m. ET on Dec. 27, 2024. Completed proposals must be submitted by Jan. 10, 2025.
DEPARTMENT OF LABOR (DOL)
Occupational Safety and Health Administration (OSHA)
Heat Standard Notice of Proposed Rulemaking (NPRM)
On Aug. 30, OSHA formally published an NPRM establishing standards to protect from heat injury and illnesses in both 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 effectively protect employees from hazardous heat. Comments are due Dec. 30, 2024. ABA has filed an extension request for additional time to file comments.
U.S. TREASURY DEPARTMENT (TREASURY)
Internal Revenue Service (IRS)
Tax Allowance Increase for Transportation Worker Per Diem
On Sept. 20, the IRS announced a 16% increase to the allowable per diem rate for transportation workers. The introductory per diem rate allowed by the IRS for meals and incidental expenses incurred by transportation workers rises to $80 per day in the fiscal year 2025, which begins Oct. 1. The $80 figure is for the continental U.S. It’s $6 more than that for travel outside the continental U.S. A company can pay its workers a higher per diem than the IRS figure. Still, the general practice is to pay the same level that can be deducted from a company’s income tax liability. The 2025 per diem rates went into effect Oct. 1, 2024.
Proposed Increase to Alternative Fuel Vehicle Refueling Property Credit
On Sept. 19, the IRS published a notice of proposed rulemaking to expand access to electric vehicle chargers, providing business tax credits of up to $100,000 to install clean transportation charging equipment. Learn more about the proposal and how to claim the tax credit. Comments must be received by Nov. 18, 2024. Click here to file comments.
Financial Crimes Enforcement Network (FinCEN)
New Beneficial Ownership Information (BOI) Reporting Requirements
FinCEN published a final rule imposing new reporting requirements on small businesses that went into effect Jan. 1, 2024. A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report. A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report.
This 90-calendar day deadline runs from when the company receives actual notice that its creation or registration is effective or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier. Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN. More information on how and where to file.
CANADA
Canada Works on ELD Regulatory Revisions
On Sept. 12, the Canadian Council of Motor Transport Administrators (CCMTA) announced that they have been working on revisions to their Electronic Logging Device (ELD) Technical Standard. They are seeking industry feedback on the proposed updates. There will be a 60-day consultation period for the ELD Technical Standard during which organizations can submit comments. Comments are due by Nov. 12, 2024.
OTHER
INTERNATIONAL FUEL TAX AGREEMENT (IFTA)
Annual Registration Period Begins
Motor carriers need to be aware of their respective state’s rules for renewing International Fuel Tax Agreement (IFTA) permits. Some states now do auto-renewals, while others require active renewals. For most states, the IFTA renewal period began Oct. 1. Carriers must display the decal for the upcoming year no later than Dec. 31. Find contact information for your state office that issues IFTA permits.
NEW YORK STATE
New Charter Bus Seatbelt Law to Go Into Effect
The New York State Legislature approved a bill, and on Oct. 23, 2024, Gov. Kathy Hochul signed the bill into law, requiring passengers to use seatbelts on 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 were around when the violation occurred. The law defines a charter bus as one manufactured or assembled on or after Nov. 28, 2016, transporting passengers for compensation in a chartered party. The new law goes into effect on April 21, 2025.
