WASHINGTON — Potential Regulatory Changes Amid Election-Year Gridlock
With the approach of an election year, Congress may struggle to pass significant truck-related legislation in 2024. However, a potential change in administration could prompt the finalization of two key regulations that could have major cost and operational impacts on the trucking industry.
Proposed regulations to tighten standards for independent contractors and reduce carbon emissions from heavy trucks are currently under final review at the White House. These proposals align with the administration’s core priorities of labor and climate issues.
According to P. Sean Garney, co-director of Scopelitis Transportation Consulting, “We might see Congress, already slow-moving, become even more gridlocked as both parties aim to prevent the other from achieving significant victories. I anticipate minimal progress unless an unforeseen crisis arises.” He added that the Biden administration would likely seek to advance its agenda ahead of the elections to demonstrate progress to constituents.
Transportation consultant Randy Mullett agrees, stating that regulatory action — rather than new legislation — will likely dominate trucking policy in the upcoming year. He noted that lawmakers will shift focus to issues such as emergency war funding and federal budget extensions upon returning from their holiday break.
One significant regulatory change under consideration is a proposed rule that would clarify the distinction between independent contractors and employees. Garney predicts this rule will make substantial waves, potentially shifting many drivers toward employee status, thereby increasing costs for trucking companies that rely on independent contractors.
In addition, new emission standards set by the Environmental Protection Agency (EPA) for heavy-duty trucks, which are set to begin in model year 2027, are expected to raise costs for the trucking industry significantly. Initial estimates suggest that these new standards could add approximately $15,000 to the price of a new sleeper cab.
Focus on Truck Parking and Broker Transparency
While trucking costs are a primary concern for 2024, issues like truck parking and broker transparency have also garnered attention in the past year. Record federal funding has been directed at addressing the truck parking shortage, seen by many officials as a crisis. Legislation proposing $755 million in grants for truck parking is currently awaiting consideration in Congress.
Small business truckers expressed frustration over the Federal Motor Carrier Safety Administration’s (FMCSA) delay in addressing broker transparency. In 2020, petitions were submitted advocating for regulations to combat alleged price gouging by dishonest brokers. However, FMCSA has postponed the proposed rulemaking to October 2024, much to the dissatisfaction of small operators.
Safety Initiatives for 2024
From a safety perspective, Garney notes that the industry is eagerly awaiting FMCSA’s finalization of improvements to the Compliance, Safety, Accountability (CSA) Safety Measurement System. Expected updates to the agency’s DataQ system and Crash Preventability Determination program are poised to positively impact motor carriers. Additionally, FMCSA plans to test electronic Level 8 inspections for commercial vehicles while they are in motion.
Other anticipated safety-related regulatory measures for 2024 include new speed limiters for heavy trucks, automatic emergency braking systems, and monitoring of automated driving systems. The U.S. Department of Health and Human Services is also expected to release guidelines for using hair tests for drug screening, a move long under review. However, the integration of these guidelines into DOT regulations may take additional time.
