Transcript FALL 2005 MEETING WASHINGTON REPORT

HEALTH AND PERSONAL CARE LOGISTICS
CONFERENCE
WASHINGTON UPDATE
OCTOBER 2009
John M. Cutler, Jr.
McCarthy, Sweeney & Harkaway, P.C.
2175 K Street, N.W., Suite 600
Washington, DC 20037
(202) 775-5560
[email protected]
1
OVERVIEW
• The focus in Washington has largely
shifted from the economy to health care
• Relative quiet as to transportation and
supply chain issues is welcome
• Infrastructure issues remain important but
action is being delayed
• So far so good on health, safety, and
security fronts
• Climate change issues still a concern
2
NEW FACES IN WASHINGTON
• Dan Elliott is the new Chairman of the Surface
Transportation Board and Joseph Szabo is the
new head of the Federal Railroad
Administration. Both formerly worked for UTU.
• Ann Ferro has been nominated (not yet
confirmed) as head of FMCSA
• Good choice from our perspective – former head
of Maryland Motor Truck Association and former
Maryland Motor Vehicle Administrator
• Safety Advocates, New York Times, and Senator
Frank Lautenberg are not happy
3
NEW FACES IN WASHINGTON
(CONTINUED)
• Erroll Southers was recently nominated
(not yet confirmed) to head the
Transportation Security Administration. He
is chief of security and intelligence for the
LAX police, and a former FBI agent.
• Too soon to tell what impact the new
officials will have
4
INFRASTRUCTURE
• Infrastructure investment remains the
biggest transportation issue on the horizon
• The rationale for investment a year ago
was inadequate capacity
• Today there’s less talk of capacity
constraints and more talk of stimulating
the economy
• Whatever the rationale, increased
investment is needed
5
HARD DECISIONS REMAIN
• How much do we need to spend
• How much can we afford to spend
• How do we allocate funding as between
- truck, rail, water and air
- maintenance and new construction
- transit, commuters and freight
- rural, urban and other areas
• What about oil import issues, climate change
and cost effectiveness? Should more freight
move by rail?
6
HOW DO WE PAY FOR WHAT WE NEED?
• The U.S. is facing record deficits
• The Highway Trust Fund required an $8 billion
transfusion from general funds (i.e., taxpayers) in 2008
and more is needed
• Fuel tax rates have not been increased since 1993
• National Surface Transportation Policy and Revenue
Study Commission says raise fuel taxes 5 cents per year
and transition to VMT tax
• National Surface Transportation Infrastructure Financing
Commission says raise fuel taxes 10 cents and transition
to VMT
7
HOW DO WE PAY FOR WHAT WE NEED?
(continued)
• No politicians (including those in the White
House) want to come out in favor of higher fuel
taxes now, as DOT Secretary Ray LaHood found
out
• Privatization was the Bush DOT’s answer, but
there’s little talk about privatization these days
• Senators Jeff Bingaman (D-NM) and Chuck
Grassley (R-IA) have introduced S. 884,
removing privatized highways from
consideration when federal highway funds are
allocated
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HOW DO WE PAY FOR WHAT WE NEED?
(continued)
• Tolling is also unpopular
• ATA continues to oppose tolling of existing
highways, and to fight excessive increases
in tolls
• Senator Kay Bailey Hutchison introduced
S. 1115, prohibiting tolling on existing free
federal highways
9
STIMULUS LEGISLATION
• On February 17, 2009, President Obama signed
the American Recovery and Reinvestment Act,
better known as the Stimulus bill
• The $796 billion total includes roughly $30 billion
for highways
• The Stimulus bill and other governmental
actions have helped shorten the recession, but
much more is needed for infrastructure
10
HIGHWAY BILL REAUTHORIZATION
• The main event for us is the next Highway Bill
• SAFETEA-LU, the 2005 Highway Bill that
expires 9/30/09, included $286 billion in funding
for highway maintenance and construction and
for transit
• That amount was not enough, even ignoring
roughly $26 billion in earmarks, including the
“Bridge to Nowhere”
• Chairman Oberstar wants a successor to
SAFETEA-LU with far higher funding levels –
$450 billion over 6 years
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HIGHWAY BILL REAUTHORIZATION
TIMING ISSUES
• SAFETEA-LU expired 9/30/09, and has
obviously not been replaced
• Delays in enacting new Highway Bills are not
uncommon. SAFETEA-LU was enacted almost
2 year after its predecessor expired
• The Senate and White House have called for
stopgap funding for 18 months
• Rationale is that in 2011, after the 2010
elections, Congress may be able to come up
with the funding we need
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HIGHWAY BILL REAUTHORIZATION
TIMING ISSUES (continued)
• Chairman Oberstar wants quicker action on a
new Highway Bill
• Oberstar argues that major new funding is
needed and will stimulate the economy
• ATA, U.S. Chamber of Commerce, NAM and
other groups support quicker action
• House voted September 23, 2009 for a 3-month
extension, till 12/31/09
• More extensions will almost certainly be needed,
even if Congress acts before 2011
13
HIGHWAY BILL REAUTHORIZATION
POLICY ISSUES
• Oberstar draft Highway Bill has no amounts, so we don’t
know total funding or how total would be allocated
between highways and transit, or among states, or
between highway construction and maintenance
• Focus on freight is good, but bill also supports
environment, congestion relief, clean air, safety, etc.
What weight will be given to each?
• Senate bill, S. 1036, Federal Surface Transportation
Policy & Planning Act of 2009, introduced May 14 by
Senate Commerce Committee Chairman Rockefeller (DWV) and Surface Transportation Subcommittee
Chairman Lautenberg (D-NJ), calls for 10% increase in
freight transportation in “non-highway or multimodal
services by 2020.”
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TRUCKING ISSUES
•
•
•
•
•
Truck Sizes and Weights
Hours of Service
NAFTA
LA/Long Beach Port Drayage
Bankruptcies
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TRUCKING ISSUES
(continued)
• Freeze on longer/heavier trucks being challenged
• Rep. Mike Michaud (D-ME) introduced a bill to allow
97,000 lb. GVW trucks on the highways. HR 1799 has
41 cosponsors.
• However, Rep. James McGovern (D-MA) introduced HR
1618, SHIPA, expanding the freeze. SHIPA now has 120
cosponsors.
• On Hours of Service, FMCSA decided to keep the
current rules
• Public Citizen and other safety groups have returned to
court to attack the rules
• H&PCLC has intervened in the court case to support the
rules, along with ATA, NITL, Chamber of Commerce
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TRUCKING ISSUES
(continued)
• Efforts to regulate drayage operations at Port of LA/Long
Beach were recently overturned in court
• Ports of LA/Long Beach asking Congress to amend
FAAA Act, which deregulated intrastate trucking, to allow
states to regulate port drayage
• Main goal appears to be to promote unionization of
drayage
• H&PCLC part of a large coalition opposing this effort
• DOT’s NAFTA pilot program was shot down by
Congress. Mexico is retaliating with billions of dollars in
tariffs, as it is entitled to do.
• Trucking and broker bankruptcies raise concerns about
failed companies, collection actions, and TRUCC Act
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AIR AND OCEAN
• Montreal Convention as replacement for
Warsaw Convention
• “Rotterdam Rules” as replacement for COGSA.
Recently approved by 16 nations, including U.S.,
France, Spain, but not Germany or the UK.
European shippers Council concerned about
contract limiting ocean carrier liability.
• Senate must ratify before Rotterdam Rules
become U.S. law.
• General tightening of liability coverage
18
RAIL ISSUES
• Antitrust exemption for railroads unlikely to
survive
• Captive shipper legislation may pass this
session
• Railroad efforts to disclaim or limit liability
for or duty to carry hazardous materials
• Investment Tax Credit legislation still
pursued by railroad industry
19
SECURITY
• Effective date for 10 + 2 rules was January
26, 2009
• Phase-in year is three-quarters over, and
penalties of up to $5,000 per violation may
start after January 25, 2010
• CBP has held numerous outreach
meetings around the country
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SECURITY
(continued)
• TSA Cargo Security Screening Program on track for
domestic freight
• TSA’s Ed Kelly says 100% screening by August 2010
feasible for domestic cargo through CCSP
• 100% screening of air cargo inbound from foreign
countries by August 2010 unlikely due to need to
coordinate as to foreign countries’ laws and practices
• TSA has called for public comments by November 16,
2009 on CCSP. H&PCLC plans to express support.
• 100% screening requirement being questioned in
absence of technological solutions. Could Known
Shipper approach return? Congressional action would
be needed.
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OTHER NEWS
• Colorado Board of Pharmacy issued proposed rules
imposing regulations on drug wholesalers that would
also regulate carriers
carrier compliance with BOP rules required
not limited to Colorado
disclosure of drivers’ past criminal convictions
“or violations of state and federal law”
reports to BOP of any theft or suspicious loss
during delivery within 30 days
contract only with carriers meeting standards
• H&PCLC fought this proposal and BOP backed down
• More of this is likely, particularly if FAAA Act is watered
down, as Ports of LA/Long Beach want
22
OTHER NEWS (continued)
• Lacey Act is being phased in, with enforcement to begin
• APHIS issued Federal Register Notice 9/12
Enforcement delayed until 9/1/10 for import
declarations as to products containing composite or
recycled or reused material
Blanket declarations still being evaluated
Importers can use “spp” where possible species
include all species in genus
Shorthand group designations like “SPF” for spruce,
pine and fir, being considered, along with criteria
Comments are due November 2
• Efforts at a legislative fix continue, but no pending bill to
fix problems
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OTHER NEWS
(continued)
• Labor – Card Check Legislation – no news is good news
• Climate change issues
• H.R. 2454, American Clean Energy and Security Act of
2009, cap and trade bill, passed by House in June
• S. 1733, Clean Energy Jobs and American Power Act,
introduced 9/30/09 in Senate by Senators John Kerry (DMA) and Barbara Boxer (D-CA)
• Senate appears unwilling to enact House bill, so action
may take some time.
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