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FMCSA issues new broker rule, House rejects "Buy America" exemption, and diesel prices remain stable.
FMCSA establishes new regulations for brokers.
In November, the Federal Motor Carrier Safety Administration (FMCSA) issued a final rule on the financial responsibilities of brokers and freight forwarders. This regulation, aimed at enhancing broker safety regulation, took effect on Tuesday, January 16.
The rule restricts the types of assets a broker can have, immediately suspending a broker when the available financial guarantee falls below $75,000. It clarifies when a broker is considered insolvent and introduces civil penalties for violations. The FMCSA has yet to respond to requests from the Owner-Operator Independent Drivers Association (OOIDA) for additional measures.
The FMCSA emphasized that brokers who fail to pay or refuse to pay carriers for legitimate services will face suspension of their operating authority. This will help prevent the accumulation of claims over time, providing carriers with more information to avoid hiring unethical brokers and enabling them to receive timely payments without resorting to additional legal procedures.
The OOIDA expressed overall support for the FMCSA’s efforts to strengthen broker regulations but urged the agency to implement additional measures. In their petition, the OOIDA suggested reinforcing existing broker registration requirements, ensuring a timely claims process, and providing more information about broker criminal activity. The association endorsed the idea of establishing a more formal collaborative process among federal regulators, law enforcement, and industry stakeholders to identify, penalize, and protect against fraudulent activities in the future. The FMCSA has not yet issued a response.
The House of Representatives rejects the “Buy America” exemption.
The House of Representatives has rejected President Biden’s “Buy America” exemption for electric vehicle chargers, two months after the Senate approved the resolution. On January 11, the House voted to invalidate a rule from the Federal Highway Administration that granted a temporary exemption to “Buy America” requirements for electric vehicle chargers.
In November, the Senate approved the resolution with 50 votes in favor and 48 against, highlighting the partisan division on the issue. On the same day the Senate approved the resolution, the White House indicated that President Biden would veto the measure.
On January 11, the U.S. Department of Transportation announced grants totaling $623 million for the construction of electric vehicle charging stations. This federal funding is part of the Biden administration’s initiative to add at least 500,000 publicly accessible charging points by 2030. The Infrastructure Investment and Jobs Act included a $2.5 billion Discretionary Grants Program for Charging and Fueling Infrastructure, supporting 47 projects in 22 states and Puerto Rico, including the construction of approximately 7,500 electric vehicle charging ports.
Despite the expectation that the “Buy America” exemption for electric vehicle chargers will remain intact, with billions of federal dollars allocated to charging infrastructure, there is still some skepticism regarding the adoption of electric vehicles.
Diesel prices remain steady, according to ProMiles report.
According to the report from ProMiles on January 15, the national average price per gallon of diesel was $3.857, compared to $3.861 the previous week.
The average price of a gallon of diesel by region, according to the ProMiles report, is as follows:
- Mid-Atlantic: $3.822
- Central Atlantic: $4.281
- California: $5.24
- East Coast: $4.013
- Gulf Coast: $3.545
- West Coast: $4.68
- Midwest: $3.664
- Rocky Mountains: $3.71
- New England: $4.232
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