Last Update: Feb 9 @ 1:14 PM
TRANSPORTATION
Are you a ‘motor carrier’? Regs may make you one
By Justin Sayles,
PBN Staff Writer
BLOOMBERG NEWS PHOTO FELLOW CARRIER? New federal regulations define many businesses as ‘motor carriers,’ just as UPS has always been.


A change in federal law and accompanying regulations will soon define a wide range of companies that operate trucks – including those that transport only their own goods – as “motor carriers,” requiring them to register and pay annual fees.

Historically, only third-party carriers such as UPS, Federal Express and trucking companies have been subject to such requirements.

But under pressure from those carriers, some of which had to pay well more than $1 million a year in fees for the privilege of using interstate highways while others used them for free, Congress changed the law, said Terry Mercer, associate administrator of the R.I. Division of Public Utilities and Carriers, which oversees motor carriers.

The new system that Congress set up, called the Unified Carrier Registration Plan and Agreement, requires any company that transports goods or people across state lines in vehicles weighing more than 10,000 pounds – or with a capacity of more than 10 passengers – to register its “fleet” and pay an annual fee.

The requirement also applies to third-party carriers and carrier brokers, whether or not they actually own trucks, Mercer said.

This month, the PUC is sending out notices to all companies that, based on data kept by the government, are believed to be subject to the new requirement, Mercer said. That will include major retailers such as CVS Caremark Corp., but also small oil companies, bakeries, dairies, etc. that cross state lines with their vehicles, even if it’s just to a neighboring town.

Mercer said that this could lead to some confusion, because many of the companies impacted by the regulations don’t necessarily consider themselves trucking firms.

“If there is a local dairy that carries its own dairy products into Seekonk … they are required to register with us,” Mercer said. “If they cross state lines and their trucks weigh more than 10,000 pounds, there’s a good chance … that they will have to register.”

Under the fees set by the Federal Motor Carrier Safety Administration System, companies would pay an annual fee ranging from $39 to $37,500 depending on the size of their fleet. A company with between three and five units would owe $116 annually, while a company with between 100 and 1,000 units would owe $3,840 annually. Companies with more than 1,001 units would fall into the highest bracket, but Mercer said that only a handful nationwide, such as UPS, FedEx and Wal-Mart, fall into that category.

While the move will hit a wide array of businesses with a fee, it is designed to ease the burden on motor carriers while ensuring states don’t lose any money they used to collect, Mercer said. Rhode Island, Mercer said, is capped at $2.4 million for next year – the amount it generated under the old system in 2004 – and will be for the foreseeable future.

A company can register in two ways. The most direct and recommended way, Mercer said, is to visit www.ucr.in.gov and register the company. A company that doesn’t want to go through the Web site also can register with the PUC.

Mercer said that the enforcement of the regulations will begin in November, and if most companies go through the PUC, there’s no guarantee that the agency will be able to register them all in time. Anyone who doesn’t register and is found to be out of compliance, however, in any state, could face a fine.

To prepare companies for the regulation changes, Mercer said, the PUC is preparing a mailing to nearly 6,000 companies it believes will be impacted by this.

Still, while the division is working to get the word out about the change in regulations, Mercer said, most companies won’t be straddled with the high fees. About 80 percent of companies nationwide hit by the regulations have a fleet of fewer than five trucks, Mercer said. About 90 percent have fewer than 20 trucks.

John Atwood, president of the Rhode Island Trucking Association, said that he has not heard many complaints from his membership, which consists of smaller oil companies and landscaping firms, but also UPS, FedEx and other carriers. While he said that any fee can be harmful to business, the relatively low dollar amount would not hit companies as badly as, for example, a hike in the fuel tax.

“I don’t think it’s going to be a huge economic impact on them,” Atwood said. •

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