News

This Thursday December 12, 2024, at 10:00am in Trenton the NJ General Assembly Transportation & Independent Authorities Committee will take testimony on Assembly Bill 4967, which delays the implementation of the Advanced Clean Truck EV mandate, by two years.  

NJMTA leadership will testify in support of the bill.  However, for us to be successful, we will need as many trucking companies and truck dealerships as possible to show up and support Assembly Bil 4967.  Support includes testifying in support of the bill or submitting a witness slip stating your name and title and name of your company indicating you wish to be recorded in the legislative record as supporting but do not wish to testify. Your mere presence in the room is a huge benefit even if you don’t wish to testify, especially since the truck haters will be there in full force.  If you wish to testify, please let Jennifer Blazovic know as I would like to have a discussion with you beforehand.

The State House is located at 125 West State Street, Trenton, NJ.

If you cannot attend, you can watch the hearing here.  Scroll down to “Live Proceedings” then scroll to Assembly Transportation and Independent Authorities. The committee hearing may not start exactly at 10:00am. Keep refreshing your browser. Assembly Bill 4967 is one of seven bills on the agenda.

NJMTA Lobbyist, Eric DeGesero

After a thorough review of fuel consumption statistics and consultation with the Legislative Budget and Finance Officer, the Department of the Treasury announced on Monday that New Jersey’s gas tax rate will increase by 2.6 cents per gallon beginning January 1, 2025 to support the State’s Transportation Trust Fund (TTF) program. This increase is the result of the 2024 law (Chapter 7) which gradually raises the State’s Highway Fuel Cap from Fiscal Year 2025 through Fiscal Year 2029. The FY2025 Highway Fuel Cap is set by the new statute at exactly $2.032 billion, which is $84 million, or 4.3 percent higher than the previous baseline level of $1.948 billion, and will increase each fiscal year, reaching $2.366 billion in FY2029.

“Based on our review of the consumption data, combined with the requirement to meet the new statutory target, we have determined that the new formula dictates a 2.6 cent increase this coming January,” said State Treasurer Elizabeth Maher Muoio. “We are pleased that this dedicated funding stream continues to provide billions of dollars across the State to support our critical transportation infrastructure needs.”

Under Chapter 7, New Jersey’s TTF program is required to provide nearly $11 billion over five years to support critical infrastructure improvements to the State’s roadways and bridges. In order to ensure the State has the funds necessary to support these projects, the law dictates that the Petroleum Products Gross Receipt Tax (PPGRT) rate must be adjusted accordingly to generate enough revenue to meet the statutory Highway Fuel Cap for that fiscal year.

What is generally called the “gas tax” or the “highway fuels tax” is actually two separate taxes on gasoline and diesel fuel - the Motor Fuels Tax and the PPGRT.

Under the formula explicitly outlined in Chapter 7, the PPGRT rate will increase on January 1, 2025 from 31.8 cents to 34.4 cents for gasoline and from 35.8 cents to 38.4 cents for diesel fuel. When combined with the Motor Fuels Tax, which is fixed at 10.5 cents for gasoline and 13.5 cents for diesel fuel, the total tax rates that motorists will pay for gasoline and diesel fuel will be 44.9 cents and 51.9 cents, respectively.

Background on Chapter 7 & Calculation of Tax Rate Formula

Under Chapter 7, a statutory formula determines how much the PPGRT rate is to be adjusted annually in order to meet that year’s Highway Fuel Cap. The Treasurer is required to meet with the Legislative Budget and Finance Officer on or before November 15 of each fiscal year to determine the total revenue derived from highway fuels consumption. This process just concluded, with Treasurer Muoio and LBFO Thomas Koenig consulting on consumption data and revenue collections.

The PPGRT rate may be adjusted annually for the following two reasons:

• to correct for a prior fiscal year’s revenue shortfall or surplus in meeting the Highway Fuel Cap; and
• to correct for whether projected highway fuels consumption in the current fiscal year will be enough to meet the Highway Fuel Cap for the current fiscal year.

When necessary, the PPGRT rate is adjusted:

• higher (lower) if revenues for the previous fiscal year were below (above) the revenue target for that year;
• higher (lower) if consumption for the current fiscal year falls short (above) of the defined Highway Fuel Cap.

FY 2025 Rate Calculation

Treasury applied the above formula based on the following revenue numbers:

• After consultation between the State Treasurer and the Legislative Budget and Finance Officer during the review period in November 2025, the Highway Fuel Cap for FY 2025 is $2.032 billion, as set by the statute.

Supporting Statistics

Consumption of gasoline and diesel fuel in FY2025 is projected to be 0.6 percent above FY2024 levels.

As a result, the FY2025 PPGRT rate will be higher than in FY2024 because of the increased Highway Fuel Cap, as set by the statute.

New Jersey and Federal Motor Fuels Tax Rates - Effective January 1, 2025

DIESEL (c/pg)

NJ Motor Fuels Tax - 13.5

NJ PGRT - 38.4

Federal Excise Tax (incl. LUST) - 24.4

TOTAL - 76.3

GASOLINE (c/pg)

NJ Motor Fuels Tax - 10.5

NJ PGRT - 34.4

Federal Excise Tax (incl. LUST) - 18.4

TOTAL - 63.3

New York State will introduce a Congestion Relief Zone Toll. The proposed start date is January 5, 2025.

By law, the first 60 days, only the established tolls will be collected. There will be no additional fees, charges, or fines.

The program will:

• Reduce traffic and travel time
• Lead to safer streets and cleaner air
• Reduce emissions
• Improve quality of life

Drivers will be charged a toll on their E-ZPass once per day when they enter the Congestion Relief Zone. This includes streets in Manhattan below 60 Street.

The toll does not apply to:

• FDR Drive
• West Side Highway
• Hugh L. Carey Tunnel connecting to West Street

However, you will be tolled if you exit from an excluded roadway onto a street within the CBD.

If you live in the CBD, you can apply for the Low-Income Tax Credit.

Drivers without E-ZPass will be mailed a toll bill to the address of the registered vehicle. 

Tolling equipment will be on Broadway between 60 and 61 Streets. 

Learn more about the Congestion Relief Zone Toll Program.

TOLLS

Tolls vary by vehicle and the time of day. The peak period toll rate will apply from 5 AM to 9 PM on weekdays and 9 AM to 9 PM on weekends. All other times, drivers will be charged off peak toll rate.

Vehicles without an E-ZPass will pay 50% more than the usual rate.

Type of Vehicle	Peak	Off Peak
Passenger and small commercial vehicles  (Sedans, SUVs, pick-up trucks, and small vans)	$9	$2.25
Motorcycles	$4.50	$1.05
Trucks and buses	$14.40 - $21.60	$3.60 - $5.40

Trucks and buses will pay toll depending on their size and function during both peak and off-peak hours.

Taxis and For-Hire Vehicles

Taxis and for-hire vehicles will be charged a per-trip toll, paid by the passenger.

• Green and yellow taxis and black cars: $0.75 per trip
• App-based for-hire vehicles: $1.50

This toll is separate from the State congestion surcharge for some taxis and for-hire trips entering Manhattan South of 96 Street.

Crossing Credits

Vehicles using a valid E-ZPass will get a credit to reduce Congestion Relief Zone Tolls when entering:

• Lincoln Tunnel 
• Holland Tunnel
• Queens-Midtown Tunnel
• Hugh L. Carey Tunnel

Type of Vehicle	Credit up to:
Passenger Vehicle	$3
Motorcycles	$1.50
Small trucks and charter buses	$7.20
Large trucks and tour buses	$12

No crossing credits will be offered overnight. Tolls will be reduced by 75% from the peak tolls. 

Get more information about Tolls.

Look up Toll rates.

DISCOUNTS & EXEMPTIONS

Only vehicles connected with an E-ZPass New York account can enroll for a discount plan or exemption.

Discounts

Some drivers can apply for Low-Income Discount or Low-Income Tax Credit for Residents. 

A 50% discount is available for low-income vehicle owners enrolled in the Low-Income Discount Plan (LIDP). This discount begins after the first 10 trips in a calendar month and applies to all peak period trips that follow.

The New York State Department of Taxation and Finance will publish more information about the tax credit in Fall 2024.

Online

Learn more and apply for the Low-Income Discount Plan.

By Phone

• Agency: Metropolitan Transportation Authority
• Division: E-ZPass Service Center
• Phone Number: (800) 333-8655
• Business Hours: Monday - Friday: 7 AM - 7 PM; Saturday: 8 AM - 2 PM
• Staff is available through the automated phone system during business hours.

Exemptions

Some vehicles will be exempt from the Central Business District (CBD) Tolling program. These include: 

• Qualifying authorized emergency vehicles (ambulances and fire vehicles)
• Qualifying vehicles transporting people with disabilities
• Specialized government vehicles
• School buses contracted by the NYC Department of Education
• Commute vans licensed by the NYC Taxi and Limousine Commission
• Buses providing scheduled commuter services open to the public

Learn more and apply for the Central Business District (CBD) Tolling program exemptions.

By Phone

• Agency: Metropolitan Transportation Authority
• Division: E-ZPass Service Center
• Phone Number: (800) 333-8655
• Business Hours: Monday - Friday: 7 AM - 7 PM; Saturday: 8 AM - 2 PM
• Staff is available through the automated phone system during business hours.

Today, FMCSA issued a proposed rulemaking (Transparency in Property Broker Transactions) to amend property broker obligations.

FMCSA proposes amendments to its property broker rules in response to petitions for rulemaking from the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC).

Under current regulations, the parties to a brokered freight transaction have a right to review the broker's record of the transaction, which stakeholders often refer to as “broker transparency.” Contracts between brokers and motor carriers frequently contain waivers of this right. OOIDA requested that FMCSA promulgate a requirement that property brokers provide an electronic copy of each transaction record automatically within 48 hours after the contractual service has been completed, and explicitly prohibit brokers from including any provision in their contracts that requires a motor carrier to waive its rights to access the transaction records. SBTC requested that FMCSA prohibit brokers of property from coercing or requiring parties to brokers' transactions to waive their right to review the record of the transaction as a condition for doing business and prohibit the use of clause(s) exempting the broker from having to comply with this transparency requirement. Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC.

The proposed rule would revise the regulatory text to make clear that brokers have a regulatory obligation to provide transaction records to the transacting parties on request. The proposal would also make changes to the format and content of the records.

Comments must be received on or before January 21, 2025.

CLICK HERE to read Federal Register notice.

Law enforcement officers in Canada and the U.S. pulled over 11,050 vehicles during this year’s Operation Safe Driver Week. Officers issued 2,712 tickets/citations and 3,228 warnings to commercial motor vehicle and passenger vehicle drivers for various unsafe driving infractions.

Operation Safe Driver Week is an annual, pre-announced safe-driving initiative aimed at improving driving behaviors through traffic enforcement strategies, interactions with law enforcement, and outreach and awareness campaigns.

From July 7 to 13, officers issued 2,439 warnings and 1,583 tickets/citations to commercial motor vehicle drivers and 789 warnings and 1,129 tickets/citations to passenger vehicle drivers for unsafe driving behaviors.

Reckless/careless/dangerous driving was the focus area for this year’s Operation Safe Driver Week. Five warnings and 31 citations were given to drivers for reckless, careless or dangerous driving. Any person who drives a vehicle in willful or wanton disregard for the safety of persons or property is driving recklessly. Careless/dangerous driving is defined as operating a vehicle without due care and attention or reasonable consideration for other motorists or people on the road.

Speeding was a top infraction during Operation Safe Driver Week. A total of 1,694 warnings and 1,226 citations/tickets were issued for speeding. Commercial motor vehicle drivers received 1,221 warnings and 502 tickets/citations, and passenger vehicle drivers received 473 warnings and 724 citations/tickets for speed-related infractions.

According to the U.S. National Highway Traffic Safety Administration (NHTSA), there were 12,330 speeding-related fatalities in the U.S. in 2021, and speeding was a contributing factor in 29% of all fatal motor vehicle traffic crashes. Transport Canada found that speeding was contributing factor in 21.9% of all fatal collisions in Canada in 2022.

Another top unsafe driving behavior identified during Operation Safe Driver Week was failure to wear a seat belt. A total of 354 warnings and 554 tickets/citations were issued. According to the Centers for Disease Control and Prevention, wearing a seat belt is the most effective way to prevent injury or death in a motor vehicle crash. Seat belts reduce serious crash-related injuries and deaths by about half.

Commercial motor vehicle drivers received 328 warnings and 473 tickets/citations for not wearing their seat belt. According to the U.S. Federal Motor Carrier Safety Administration (FMCSA), an estimated 14% of commercial motor vehicle drivers do not wear their seat belt.

During Operation Safe Driver Week, passenger vehicle drivers were given 26 warnings and 81 tickets/citations for failure to wear a seat belt. NHTSA states that 8.1% of passenger vehicle drivers do not wear their seat belt.

Texting or using a handheld device was another top violation. A total of 158 warnings and 169 tickets/citations were issued to drivers who were texting or using a mobile device while driving. Passenger vehicle drivers received 67 warnings and 54 tickets/citations for texting/using a handheld device while behind the wheel. Commercial motor vehicle drivers received 91 warnings and 115 tickets/citations for texting/using a handheld device while operating a commercial motor vehicle.

NHTSA states that distracted driving claimed 3,308 lives in the U.S. in 2022. And according to Transport Canada’s National Collision Database, distracted driving contributed to an estimated 22.5% of fatal collisions on Canada’s roadways in 2021.

Thirty drivers received warnings and 49 were given a ticket/citation for possession/use/under influence of drugs/alcohol. In 2020, 11,654 people were killed in motor vehicle crashes involving impaired drivers, accounting for 30% of all traffic-related deaths in the U.S. Police-reported data for 2022 indicated that 70,588 impaired driving incidents were reported in Canada.

In the U.S., commercial driver’s license (CDL) holders and commercial learner’s permit (CLP) holders with drug and alcohol program violations are identified in FMCSA’s Drug and Alcohol Clearinghouse. CDL holders with “prohibited” status in the clearinghouse have lost their CDL or CLP and must complete the return-to-duty process to become eligible to have their license reinstated.

In addition to traffic stops, another important aspect of the Operation Safe Driver Week campaign is raising awareness of the dangers of unsafe driving behaviors in an effort to dissuade such behaviors.

CVSA mailed approximately 65,000 Operation Safe Driver Week postcards to inspectors and motor carriers for distribution in the weeks leading up to and during Operation Safe Driver Week.

CVSA worked with the Paramount/CBS network to educate passenger vehicle drivers about safely sharing the roads with large trucks. The campaign included videos, digital ad banners, and video and static awareness ads, which were featured on websites, social media and CBS’s digital streaming channels. The digital campaign delivered more than 8 million impressions.

In addition, the identification and prevention of human trafficking is a priority for law enforcement jurisdictions throughout North America. During Operation Safe Driver Week, officers reported conducting 1,924 awareness and educational activities to raise awareness of the crime of human trafficking, indicators to look for and what to do when a victim of human trafficking has been identified

The Operation Safe Driver Program, part of the Commercial Vehicle Safety Alliance’s suite of transportation safety programs, was created to reduce the number of crashes involving commercial motor vehicles and passenger vehicles due to unsafe driving behaviors. Through initiatives like Operation Safe Driver Week, law enforcement jurisdictions, the motor carrier industry and federal agencies work together toward the same goal – preventing crashes, injuries and fatalities on North America’s roadways.

Drivers reminded to Move Over for stopped emergency and work vehicles

As part of National Crash Responder Safety Week, November 18 – 22, New Jersey Department of Transportation (NJDOT) Commissioner Fran O’Connor is reminding motorists to Move Over for stopped emergency and work vehicles. This year a total of 32 responders have been struck and killed nationally while working in or near moving traffic.

“Crash Responder Safety Week raises public awareness of the dangers our emergency personnel and other roadway workers face every day,” NJDOT Commissioner Fran O’Connor said. “We all have a responsibility to protect those who protect you. When you see emergency personnel and workers on the road, slow down and move over—it’s the law!”

To support the effort, Governor Murphy signed a proclamation declaring November 18 – 22 as National Crash Responder Safety Week in New Jersey. The goal is to help bring awareness to crash responder safety and the dangers of failing to abide by laws established to protect first responders and motorists at crash scenes.

The New Jersey Move Over Law (New Jersey Statute 39:4-92.2) requires motorists to slow down and move over at least one lane, if safe, when there are emergency personnel and workers on the road. Otherwise, a driver must slow down to provide a safer work environment for all first responders, authorized emergency vehicles, and workers on New Jersey roads.

New Jersey is a leading state in Traffic Incident Management (TIM) Responder Training provided by NJDOT. It brings police, firefighters, medical personnel, transportation, towing, and other incident responders together to engage in interactive, hands-on incident resolution exercises. In New Jersey, more than 37,000 first responders have completed NJDOT’s TIM training. TIM training is available online, making it possible for even more emergency and incident response personnel to access this life-saving training.

The Federal Highway Administration (FHWA) has recognized NJDOT for TIM Training Best Practices related to the creation of training videos and NJDOT’s comprehensive website, www.NJTIM.org, where the online training can be found. The TIM training program focuses on response efforts that protect both motorists and responders at the scene of a crash while minimizing the impact on traffic flow. Multiple agencies working together is a critical factor to safely and quickly responding to and clearing incidents.

For information about New Jersey’s TIM program, or for responders looking to receive this free training, visit NJTIM.org. For real-time travel information, check NJDOT's traffic information website www.511nj.org, and for NJDOT news follow us on X (Twitter) @NewJerseyDOT, on the NJDOT Facebook page, or Instagram @NewJersey.DOT.

Today, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) removed three devices from the agency’s list of registered electronic logging devices, or ELDs. Keep Tracking, Rollingtrans ELD - ACCURATE ONE, and RT ELD Plus - ACCURATE PLUS devices were placed on the Revoked Devices list due to the companies’ failure to meet the minimum requirements established in 49 CFR part 395, subpart B, appendix A. The removals are effective November 18, 2024.

FMCSA will send an industry-wide email to inform motor carriers that all who use these revoked ELDs must take the following steps:

1. Discontinue using the revoked ELDs and revert to paper logs or logging software to record required hours of service data.
2. Replace the revoked ELDs with compliant ELDs from the Registered Devices list before January 17, 2025.

Motor carriers have up to 60 days to replace the revoked ELDs with compliant ELDs. If the ELD providers correct all identified deficiencies for their devices, FMCSA will place the ELDs back on the list of registered devices and inform the industry of the update.

During this time, safety officials are encouraged not to cite drivers using these revoked ELDs for 395.8(a)(1) – “No record of duty status” or 395.22(a) – “Failing to use a registered ELD.” Instead, safety officials should request the driver’s paper logs, logging software, or use the ELD display as a back-up method to review the hours of service data.

Beginning January 17, 2025, motor carriers who continue to use the revoked devices listed above will be considered as operating without an ELD. Safety officials who encounter a driver using a revoked device on or after January 17, 2025 should cite 395.8(a)(1), and place the driver out-of-service (OOS) in accordance with the Commercial Vehicle Safety Alliance OOS Criteria.

FMCSA strongly encourages motor carriers to take the actions listed above now to avoid compliance issues in the event that the deficiencies are not addressed by the ELD providers.
For more information on ELDs, visit FMCSA’s ELD website.

Truckers and legislators in half of the 10 states that automatically adopted California’s Advanced Clean Trucks regulation are trying to put the brakes on before the 2025 rules take effect for their residents.

At issue are looming requirements to start imposing the regulation enacted by the California Air Resources Board zero-emission electric vehicles sales requirements, plus a one-time reporting requirement for large companies and fleets.

The first of the 10 states to follow California’s lead will see CARB restrictions start in 2025. They are Massachusetts, New Jersey, New York, Oregon and Washington. Vermont’s date begins in 2026. Colorado, Maryland, New Mexico and Rhode Island have until 2027.

READ MORE

Many trucking companies look to federal statutes and related authority for guidance on a myriad of labor-related issues, including whether to classify workers as independent contractors or employees. Although consulting federal legal authority is necessary, it is not, on its own, sufficient: federal law provides a floor for worker protections but, in many instances, state-level authority mandates higher standards. In the trucking industry, two common compliance issues arise when employers overlook applicable state authority, which can result in the misclassification of independent contractors or failure to pay required overtime. Inadvertently misclassifying workers because a state-level standard is overlooked can be painful and expensive, as one recent industry example made clear.

Misclassification can be costly:

On October 11, 2024, the print media delivery company Publishers Circulation Fulfillment, Inc. (“PCF”) entered into a Settlement Agreement with the New Jersey Department of Labor and Workforce Development (“NJDOL”), in which it agreed to pay a gross settlement sum of $2,750,000 for alleged contractor misclassifications. The NJDOL alleged that PCF misclassified worker statuses, resulting in several violations of wage and hour laws, including those applying to wages and earned sick leave.

Under federal standards, a number of tests can apply to worker classifications, depending on the specific context. In New Jersey, however, companies engaging independent contractors must ensure that each contractor satisfies the “NJ ABC Test,” which creates an automatic presumption that workers are employees unless each of the following are satisfied:

• The individual has been, and will continue to be, free from control or direction over the performance of work performed, both under contract of service and in fact; and
• The work is either outside the usual course of the business for which such service is performed, or the work is performed outside of all the places of business of the enterprise for which such service is performed; and
• The individual is customarily engaged in an independently established trade, occupation, profession or business.

If an independent contractor is misclassified, the worker is, by default, deemed an employee and, therefore, the employee is entitled to all applicable legal protections for employees, including overtime and paid sick leave. This is the lesson PCF paid the cost to learn.

Overtime in the Trucking Industry:

Another common misconception is that New Jersey-based trucking employees are not entitled to overtime. This is not the case.

In most fields, one of the primary protections afforded to non-exempt employees is that they are entitled to time and a half their hourly wage for each overtime hour worked.

Federal statutes, however, exempt certain trucking industry employees from overtime pay requirements under what is commonly referred to as the Motor Carrier Exemption. This exemption applies to employees who are:

• Employed by a motor carrier or motor private carrier;
• Drivers, driver’s helpers, loaders, or mechanics whose duties affect the safety of operation of motor vehicles in transportation on public highways in interstate or foreign commerce; and
• Not covered by the small vehicle exception.

Federal law, however, only sets the floor for worker protections. As PCF learned the hard way, New Jersey follows its own rules.

Instead of exempting workers from overtime wages altogether, New Jersey requires that trucking employers pay covered employees overtime compensation at a rate of time and a half the state minimum wage (as opposed to the employee’s hourly wage).

What does this mean? Employers in the trucking industry still need to pay workers overtime, but at this reduced rate, unless the worker’s salary already exceeds the time and a half state minimum wage threshold. See N.J. Stat. § 34:11-56a4(f). If the employee’s base salary is higher than the time and a half state minimum wage figure, no overtime must be paid for these covered employees.

Conclusion:

To avoid costly penalties and fines, it is imperative that trucking companies keep the floor and the ceiling in mind and establish (and follow) best practices to ensure compliance with independent contractor and wage and hour laws, under both federal and state guidelines. For further guidance, please reach out to the Trucking and Logistics Team at Becker LLC: 

Michael Bartels, Chief Development Officer and T&L Team Member:  mbartels@becker.legal.