[House Report 110-833]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 110-833
======================================================================
TO PROHIBIT THE SECRETARY OF TRANSPORTATION FROM GRANTING AUTHORITY TO
A MOTOR CARRIER DOMICILED IN MEXICO TO OPERATE BEYOND UNITED STATES
MUNICIPALITIES AND COMMERCIAL ZONES ON THE UNITED STATES-MEXICO BORDER
UNLESS EXPRESSLY AUTHORIZED BY CONGRESS
_______
September 9, 2008.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 6630]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 6630) to prohibit the Secretary of
Transportation from granting authority to a motor carrier
domiciled in Mexico to operate beyond United States
municipalities and commercial zones on the United States-Mexico
border unless expressly authorized by Congress, having
considered the same, report favorably thereon without amendment
and recommend that the bill do pass.
PURPOSE OF THE LEGISLATION
H.R. 6630 prohibits the Secretary of Transportation from
granting authority to a motor carrier domiciled in Mexico to
operate beyond United States municipalities and commercial
zones on the United States-Mexico border unless expressly
authorized by Congress.
BACKGROUND AND NEED FOR LEGISLATION
On February 23, 2007, Secretary of Transportation Mary
Peters announced a plan to grant authority to 100 motor carrier
companies based in Mexico to conduct long-haul operations
beyond the commercial zones as part of a one-year pilot
program. Prior to the pilot program, trucks entering from
Mexico had been limited to approximately 20-mile-wide
``commercial zones'' along the U.S.-Mexico border.
The Secretary's announcement was met with strong opposition
in Congress. Some Members of Congress and other interested
parties expressed serious concerns about the U.S. Department of
Transportation's (``DOT'') legal authority to carry out the
pilot program and to fully open the border, potential impacts
of the pilot program on highway safety, and about reciprocity
for U.S. carriers seeking access to Mexico.
Congress legislated safeguards into DOT's proposed pilot
program in the U.S. Troop Readiness, Veterans Care, Katrina
Recovery, and Iraq Accountability Appropriations Act, 2007
(P.L. 110-28). Section 6901 of the Troop Readiness Act required
the DOT Inspector General (``IG'') to verify that DOT is
prepared to enforce Federal motor carrier safety laws and
regulations with respect to Mexico-domiciled carriers, required
DOT to address any issues raised by the IG, and required DOT to
submit a report to Congress detailing corrective actions taken
before the start of the pilot program. The Inspector General
submitted his report to Congress on September 6, 2007, raising
questions about whether DOT had sufficient plans in place to
carry out the Department's commitment to check every truck
every time it crosses the border into the United States under
the pilot program. Within a few hours of receiving the IG
report, the Secretary submitted her report to Congress and
granted operating authority to the first Mexican trucking
company under the pilot program. Additional companies have been
granted operating authority on a rolling basis.
On December 26, 2007, Congress enacted a further
prohibition on DOT action to implement the pilot program.
Section 136 of the Consolidated Appropriations Act prohibited
DOT from using funds to establish a cross-border motor carrier
pilot program. DOT has continued its pilot program despite this
funding prohibition, arguing that the language only prohibits
future pilot programs and does not impact the program initiated
in September 2007.
After calls for additional information on the pilot program
from Congress and the public, DOT published three notices in
the Federal Register on May 1, 2007 (72 Fed. Reg. 23883), June
8, 2007 (72 Fed. Reg. 31877) and August 17, 2007 (72 Fed. Reg.
46263) outlining the details of the proposed pilot program. The
May 1, 2007 notice specifically states that ``The demonstration
project will terminate and all provisional operating authority
certificates expire one year from the date FMCSA grants the
first provisional certificate.'' However, despite the plain
language of this statement, DOT issued a subsequent notice on
June 8, 2007, which stated that ``[u]nder FMCSA regulations,
all motor carriers receive provisional operating authority for
18 months after receiving a USDOT number.'' DOT has issued
provisional operating authority to pilot program participants
for 18 months.
On August 4, 2008, the Secretary of Transportation
announced that the cross-border pilot program will be extended
for an additional two years through September 2010.
Federal Motor Carrier Safety Administration (``FMCSA'')
data indicates that as of July 2008, 27 Mexican carriers
operating 107 trucks had been granted authority under the pilot
program to operate long-haul in the United States, and 10 U.S.
carriers operating 55 trucks had been granted authority under
the pilot program to operate in Mexico. Pilot program
participants from Mexico crossed into the United States 9,776
times. Only 1,337 of these crossings, or 14 percent, resulted
in carriers traveling beyond the border zones. To monitor
participants under the pilot program, FMCSA also paid to
acquire and install Global Positioning Systems (``GPS'') on
each truck participating in the pilot program. According to
estimates provided to the Committee by FMCSA, the agency has
spent $700,000 through July 2008 on hardware, installation,
monthly fees for tracking, and support services for the GPS
units.
SUMMARY OF THE LEGISLATION
Section 1. Limitation on long-haul cross border trucking operations
Subsection (a) directs the Secretary of Transportation to
terminate the one-year cross border demonstration project the
Secretary started on September 6, 2007, no later than September
6, 2008. The Committee expects that upon termination of the
one-year cross border demonstration project, the Secretary will
terminate the provisional operating authority of all motor
carriers participating in the demonstration project to operate
beyond United States municipalities and commercial zones on the
United States-Mexico border after September 6, 2008, and ensure
that such motor carriers cease long-haul operations in the
United States.
Subsection (b) prohibits the Secretary from initiating a
new pilot program or otherwise granting new authority to a
Mexico-domiciled motor carrier to operate beyond the border
zones unless specifically authorized by Congress. The Committee
notes that subsection (b) applies to Mexico-domiciled motor
carriers, which includes both trucks and motorcoaches.
Section 2. Reports to Congress
Section 2 requires three reports to Congress assessing the
implementation of the pilot program within 60 days of
enactment.
The first report must be submitted to Congress by the
Inspector General of the Department of Transportation, as
required by section 6901(c) of the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (P.L. 110-28). That section required
the IG to report to Congress ``within 60 days after the
conclusion of the pilot program'' on whether the Secretary of
Transportation has established sufficient mechanisms to
determine whether the pilot program is having any adverse
effect on motor carrier safety; whether Federal and State
monitoring and enforcement activities are sufficient to ensure
pilot program participants are in compliance with all U.S.
safety laws; and whether the pilot program consists of a
representative and adequate sample of Mexico-domiciled carriers
likely to engage in cross-border operations. The requirement in
Section 2 ensures that the IG submits an evaluation of the one-
year pilot program to Congress independent of the requirement
that it be done upon conclusion of the program in the
appropriations law.
The second report must be submitted to Congress by the
independent review panel established by the Secretary,
consisting of former DOT IG Kenneth Mead, former DOT Deputy
Secretary Mortimer Downey, and former Congressman Jim Kolbe. As
described in a May 1, 2007 Federal Register notice (72 FR
23883), this panel is ``responsible for evaluating the safety
impacts of allowing Mexico-domiciled motor carriers to operate
on U.S. roads beyond the commercial zone.'' The notice further
states that the panel's ``conclusions will be considered
carefully before a decision is made on a permanent full
implementation of the NAFTA trucking provisions.'' Because this
review panel was not authorized in statute, there is currently
no timeframe for reporting, and the independent review panel is
not required to share its findings with Congress.
Section 2 requires a third report to be submitted by the
Secretary of Transportation. This report must include:
the number and names of United States and Mexico
domiciled motor carriers that participated in the
demonstration project and the number of vehicles each
motor carrier utilized in the demonstration project;
the number of border crossings by motor carriers
participating in the demonstration project, including
the number of crossings which resulted in a motor
carrier traveling beyond United States municipalities
and commercial zones on the United States-Mexico
border;
an itemization of safety and operational violations
identified among motor carriers participating in the
demonstration project in pre-authorization safety
audits, compliance reviews, and roadside inspections,
including a review of the most frequent types of
violations;
an analysis of the cost to the Federal Government and
State partners of implementing the demonstration
project, including administrative costs, safety
monitoring and enforcement costs, and the cost of
installing global positioning system units on
participating vehicles; and
measures taken by the Secretary to terminate the
authority of motor carriers participating in the
demonstration project to operate beyond United States
municipalities and commercial zones on the United
States-Mexico border after September 6, 2008, and
ensure that such motor carriers cease long-haul
operations.
LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION
On March 13, 2007, the Subcommittee on Highways and Transit
held a hearing, entitled ``U.S./Mexican Trucking: Safety and
the Cross Border Demonstration Project,'' to examine the
proposed pilot program and to assess the status of cross-border
trucking operations between the U.S. and Mexico.
On March 29, 2007, Representative Nancy E. Boyda introduced
H.R. 1773, the ``Safe American Roads Act of 2007.'' On May 2,
2007, the Committee on Transportation and Infrastructure
ordered the bill, as amended, reported favorably to the House
by recorded vote of 66-0. This legislation authorizes a three-
year cross border trucking pilot program, but only under a
specific set of conditions and once all prerequisites are met
to ensure safety. The bill includes mechanisms to shut the
program down if the pilot program has any detrimental effect on
safety. The bill also requires Congress to pass additional
legislation for the border to open fully beyond the limited
pilot program. On May 15, 2007, the House passed H.R. 1773 by a
vote of 411-3. To date, the Senate has not taken action on the
bill.
On July 24, 2007, the House adopted an amendment to H.R.
3074, the FY 2008 Transportation, Treasury, Housing, and
Related Agencies Appropriations Act, sponsored by Subcommittee
on Highways and Transit Chairman Peter A. DeFazio, to prohibit
DOT from using funds to establish or implement a cross-border
motor carrier pilot program.
On July 29, 2008, Subcommittee Chairman DeFazio introduced
H.R. 6630.
On July 31, 2008, the Committee on Transportation and
Infrastructure met in open session, and ordered H.R. 6630
reported favorably to the House by voice vote with a quorum
present.
RECORD VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H.R. 6630 or ordering the bill reported.
A motion to order H.R. 6630 reported favorably to the House was
agreed to by voice vote with a quorum present.
COMMITTEE OVERSIGHT FINDINGS
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
COST OF LEGISLATION
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
COMPLIANCE WITH HOUSE RULE XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee references the report of the Congressional Budget
Office included in the report.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
direct the Secretary of Transportation to terminate a cross
border motor carrier pilot program on September 6, 2008 and to
prohibit the Secretary of Transportation from granting
authority to a motor carrier domiciled in Mexico to operate
beyond United States municipalities and commercial zones on the
United States-Mexico border unless expressly authorized by
Congress.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee has received the enclosed cost estimate for H.R. 6630
from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 27, 2008.
Hon. James Oberstar,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6630, a bill to
prohibit the Secretary of Transportation from granting
authority to a motor carrier domiciled in Mexico to operate
beyond United States municipalities and commercial zones on the
United States-Mexico border unless expressly authorized by
Congress.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sarah Puro.
Sincerely,
Peter H. Fontaine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 6630--A bill to prohibit the Secretary of Transportation from
granting authority to a motor carrier domiciled in Mexico to
operate beyond United States municipalities and commercial
zones on the United States-Mexico border unless expressly
authorized by Congress
H.R. 6630 would require the Department of Transportation
(DOT) to terminate a pilot program that allows certain motor
carriers based in Mexico to operate throughout the United
States. CBO estimates that implementing H.R. 6630 would have no
significant impact on spending subject to appropriation.
Enacting the legislation would not affect direct spending or
revenues.
In addition to terminating the current pilot program, the
bill would require Congressional approval for any similar
program conducted after that date. The bill also would require
DOT to submit three reports to the Congress about the program.
According to the agency, the funds that are currently used to
install global positioning system units on participating motor
carriers would be used for other purposes, and in the absence
of this program, DOT personnel would remain at the border to
complete other functions. As a result, CBO estimates that
implementing the legislation would have no significant impact
on spending subject to appropriation.
The bill contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would impose no
costs on state, local, or tribal governments. H.R. 6630 would
impose a private-sector mandate, as defined in UMRA, on certain
motor carriers based in Mexico. By terminating the pilot
program, those carriers that participate in the project would
be prohibited from making long-haul trips beyond designated
zones along the border. According to data collected by the
Federal Motor Carrier Safety Administration (FMCSA), a small
number of motor carriers participating in the project make only
a few such long-haul trips. Based on this information, CBO
estimates that the cost of complying with the mandate (measured
as net income forgone) would fall below the annual threshold
established in UMRA for private-sector mandates ($136 million
in 2008, adjusted annually for inflation).
The CBO staff contacts for this estimate are Sarah Puro
(for federal costs) and Jacob Kuipers (for the the private-
sector impact). This estimate was approved by Theresa Gullo,
Deputy Assistant Director for Budget Analysis.
COMPLIANCE WITH HOUSE RULE XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, H.R. 6630 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI
of the Rules of the House of Representatives.
CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause (3)(d)(1) of rule XIII of the Rules of
the House of Representatives, committee reports on a bill or
joint resolution of a public character shall include a
statement citing the specific powers granted to the Congress in
the Constitution to enact the measure. The Committee on
Transportation and Infrastructure finds that Congress has the
authority to enact this measure pursuant to its powers granted
under article I, section 8 of the Constitution.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
PREEMPTION CLARIFICATION
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt State, local,
or tribal law. The Committee states that H.R. 6630 does not
preempt any State, local, or tribal law.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
APPLICABILITY TO THE LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H.R. 6630 makes no changes to existing law.