The newly passed Veteran Improvement Commercial Driver License Act of 2023, which gained Senate approval last year, received a nod from the House through a voice vote on Wednesday. This bill is now en route to the White House, with the president anticipated to endorse it.

“Our veterans deserve every opportunity to participate in the American dream they’ve fought to protect,” emphasized Sen. Deb Fischer, R-Neb., who spearheaded the legislation. “But when their service is over, many veterans face unfair roadblocks when they look for jobs. My legislation makes it easier for veterans to get their CDL licenses and earn a good living.”

The legislation, championed by the American Trucking Associations and the Commercial Vehicle Training Association, aims to eliminate the existing two-year waiting period that affects certain CDL training schools veterans might wish to attend using their GI Bill benefits.

Presently, the U.S. Department of Veterans Affairs cannot approve CDL courses at new branches of educational institutions unless those branches have been operational for at least two years. This bill seeks to change that by allowing the VA to approve programs at new sites, provided they are state-licensed and align with the curricula of already approved primary institutions.

Originally, House members sought to modify the bill’s language to ensure safeguards against enrolling veterans in substandard truck driving schools. “I do wish to point out that our committee has been working on this bill for months, and we reached a bipartisan agreement on improved language that would empower state agencies to conduct proper oversight and limit automatic approval of these programs if they’re opening in states without existing CDL programs,” stated Rep. Mark Takano, D-Calif., during the House discussions.

Despite the bill’s current wording mirroring the Senate’s version and overlooking the House’s efforts, there is a promise of support from Rep. Mike Bost, R-Ill., to introduce enhanced protections in future legislation.

Source: Freightwaves

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The year also witnessed advancements in labor agreements following the 2022 negotiations. While the finalized agreements addressed general wage increases and medical leave, the exclusion of sick leave led to potential strikes, prompting intervention from Congress and the White House. Subsequently, individual unions and rail carriers negotiated sick leave agreements, addressing a critical aspect of the workforce’s concerns.

Rail safety remained a focal point, with ongoing debates about crew size on freight trains and discussions about establishing a federally supported anonymous tip line for safety concerns. The industry’s response to a downturn in rail volumes raised questions about potential furloughs, exemplified by Union Pacific’s decision to implement furloughs in the latter half of the year.

The Surface Transportation Board (STB) took center stage in discussions about reciprocal switching, a process aimed at enhancing rail service competition. STB’s proposed rulemaking generated feedback from shippers, emphasizing the need for comprehensive plans to increase rail competition. The potential finalization of the rule in 2024 underscored the STB’s increased activity, fueled in part by concerns over subpar rail service in 2022.

Environmental considerations played a role as well, with the California Air Resources Board issuing rules requiring zero-emissions locomotives in the state by 2035. Legal challenges ensued from industry associations, arguing about the feasibility of implementing untested technology.

The culmination of the long-anticipated merger between Canadian Pacific and Kansas City Southern occurred in April, resulting in the formation of Canadian Pacific Kansas City (CPKC). This merger set off a series of developments in the intermodal space, with Class I railroads introducing new services and forming partnerships across North America, fostering discussions about potential industry consolidation.

As the year unfolded, the dynamic landscape of the U.S. freight rail industry showcased the interplay of safety, regulatory, and industry shifts, highlighting the sector’s resilience and adaptability. Here’s to 2024!

Source: Freightwaves

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