Weekly Wire - November 14, 2008

TRALA SECURES IMPROVEMENTS IN OREGON RENTAL PASS PROGRAM

The Oregon Motor Carrier Transportation Division (MCTD) has agreed to TRALA’s request for several changes in its newly proposed rental pass program. The MCTD has also agreed to postpone the implementation of the program until January 1, 2009.

Following several months of negotiations, Oregon MCTD Administrator Gregg DalPonte met on November 6 with a TRALA delegation led by Tax Advisory Council Chairman Tom George of Penske Truck Leasing Company. At this meeting it was agreed that for rentals originating in Oregon, lessors will be able to issue permanent weight distance credentials for rental units rather than only ten day passes. This will streamline mileage reporting and result in the least amount of change for motor carrier customers from the current process. This will also result in significant savings to lessors as well as reduced administrative burdens and potential tax liabilities.

TRALA members were initially notified by OR MCTD in March 2008 and informed that a new program would be implemented on April 1. After being contacted by TRALA, the OR MCTD agreed to several postponements of the implementation date while a final agreement with lessors was worked out.

TRALA appreciates the help of Bob Russell of the Oregon Trucking Associations in working with the MCTD on a resolution to lessors’ concerns. TRALA also appreciates the help of Sherry Eidson of TEC Leasing in the meeting with Administrator DalPonte. For more information on the new OR Rental Pass Program, please contact TRALA’s Tom James at 703-299-9120 or at tjames@trala.org.

ETAC GETS BRIEFING ON DIESEL EXHAUST FLUID

The distribution, handling and storage of diesel exhaust fluid (DEF), also known as urea, was the topic of a briefing at the November 11 meeting of TRALA’s Equipment and Technology Advisory Council (ETAC). John Lounsbury of Terra Environmental Technologies, an industry expert on DEF, made a formal presentation to the ETAC and followed it with over an hour of discussion on DEF. Terra Environmental Technologies is the largest producer of DEF in North America.

“With all but one of the engine manufacturers utilizing Selective Catalytic Reduction technology to meet 2010 emission standards, it is critical that TRALA members have a thorough understanding of the characteristics and availability of diesel exhaust fluid,” said ETAC Chairman Ty Cross of Ryder System, Inc.

Lounsbury presented a very positive outlook regarding the reliability and availability of DEF supplies by 2010. DEF is expected to be distributed through many of the same channels and outlets as diesel fuel. He emphasized that DEF is not considered a hazardous material. National uniform specifications for DEF have been issued and it will be necessary to insure the integrity of DEF is not compromised during its transportation and handling. Among the topics that were discussed during the presentation were:

• the impact of weather and temperature on DEF performance;
• expected fuel economy improvements using DEF;
• taxability of DEF;
• powering down of engines if DEF runs out or is diluted;
• ability to determine quality of DEF;
• monitoring systems in 2010 engines;

To see a copy of John Lounsbury’s presentation, click here. If you have any questions about TRALA’s Equipment and Technology Advisory Council, please contact Tom James at 703-299-9120 or at tjames@trala.org.

TRALA CALL FOCUSES ON COLORADO FET EXCLUSION LAW

TRALA’s Tax Advisory Council on November 4 held a conference call with officials from Colorado’s Department of Revenue to discuss a new law excluding Federal Excise Tax from the taxable purchase price of a vehicle. The law, passed as House Bill 1171 and signed into law on May 14, excludes the 12% federal excise tax on heavy trucks, trailers or tractors from the purchase price for the purpose of calculating state taxes such as sales, use and ownership taxes.

The discussion with the Department of Revenue was requested by TRALA to help answer questions about the implementation of the new law. The Department of Revenue promised to continue working with TRALA to resolve problems associated with residual value calculations and instances in which the vehicle-specific purchase prices are not clear. Such instances often occur when multiple trailers or trucks are purchased at one time.

TRALA appreciates the help of Greg Fulton of the Colorado Motor Carriers Association in arranging the meeting with the Department of Revenue. For more information on the implementation of this new law, please contact TRALA’s Tom James at 703-299-9120 or tjames@trala.org.

TRALA EYES VETERANS FOR VEHICLE TECHNICIAN JOBS

TRALA’s Equipment and Technology Advisory Council is continuing to work with the business community and veterans groups to address ongoing workforce concerns about the maintenance technician shortage. Maintenance technician retirements in the industry are increasingly outnumbering new job applicants and the trend shows no signs of turning around on its own.

This week TRALA participated in a broad industry initiative aimed at highlighting the applicant pool of veterans leaving the service and looking for jobs. Hosted by the U.S. Chamber of Commerce, the meeting brought together senior military officials and business leaders to discuss workforce needs and transitioning veterans into new jobs.

Participation in this meeting builds on earlier TRALA initiatives including a partnership with the National Hire Veterans Committee. This partnership, which included an ETAC tour of the U.S. Army’s ordinance and maintenance training facilities at the Aberdeen Proving Ground in Maryland, has directly led to the hiring of many veterans by TRALA companies over the past two years.

For more information on TRALA’s efforts to highlight veterans as part of the solution to the maintenance technician shortage, please contact TRALA’s Kevin Schwalb at 703-299-9120 or at kschwalb@trala.org.

SUPPORT TRALA’S 2008 LEGAL ACTION FUND CAMPAIGN

TRALA’s Legal Action Fund campaign is underway. TRALA has a proven record of aggressive advocacy and your contribution to this effort is sure to show a return on your investment.

Due to the economy experiencing difficult times, federal, state and local governments will almost certainly be looking to our industry to make up for revenue shortfalls by imposing added taxes and fees. Along with these battles, a new U.S. Congress and Administration will be considering many other issues that will affect the bottom line of your organization. One of those issues is the deceptively-named Employee Free Choice Act (EFCA), better known as the Card Check Bill. This is organized labor’s top legislative priority and is sure to be one of the first bills considered in the new year.

TRALA must be ready to quickly engage legislative and regulatory officials to protect the interests of the truck renting and leasing industry. But in order to do so, we are asking for your support. To contribute to the Legal Action Fund online, please go to www.trala.org/govtrelations, or for more information contact TRALA’s Joe Scully at (703) 299-9120 or jsculley@trala.org.