IN THE HOUSE OF REPRESENTATIVES

BILL No. HR2161

To amend title 49, United States Code, to provide a mandatory fuel surcharge for transportation provided by certain motor carriers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the 'Motor Carrier Fuel Cost Equity Act of 2001'.

SEC. 2. MANDATORY FUEL SURCHARGE.

(a) IN GENERAL - Chapter 137 of title 49, United States Code, is amended by adding at the end the following:

Sec. 13714. Fuel surcharge

(a) MANDATORY FUEL SURCHARGE-

(1) ESTABLISHMENT OF SURCHARGE- Any contract or agreement providing for truckload transportation or service involving a motor carrier, broker, or freight forwarder subject to jurisdiction under chapter 135 who regularly provides such transportation or service shall include a requirement to assess a payer of transportation charges a minimum surcharge for fuel used in the transportation provided to such payer commencing when the Current Price of Fuel surpasses, by $0.05 per gallon, the Benchmark Price in paragraph (2). The surcharge assessed by the motor carrier, broker, or freight forwarder shall be calculated on the basis of mileage or percentage of revenue (whichever basis the motor carrier, broker, or freight forwarder elects) and shall be the amount necessary to compensate the person responsible for paying for fuel for the amount of increase in the cost of fuel.

(2) BENCHMARK- The benchmark referred to in paragraph (1) shall be $1.10 per gallon.

(b) IMPLEMENTATION- The surcharge referred to in subsection (a)(1) shall be-

(1) calculated on the date the shipment is tendered to the motor carrier, broker, or freight forwarder;

(2) itemized separately on the motor carrier, broker, or freight forwarder's invoices;

and

(3) paid by the payer of transportation charges.

(c) FACTORS- For purposes of calculating a surcharge under this section-

(1) average fuel economy is 5 miles per gallon; and

(2) mileage means the number of paid miles driven as determined under the Department of Defense, Military Traffic Management Command's Defense Table of Official Distances' or mileage guide established pursuant to section 13703 (a)(1)(D) of title 49.

(d) LIMITATION ON AUTHORITY- Notwithstanding any other provision of this part, enforcement of this section shall be through the private right of action provided in section 14704(a) of title 49, United States Code, and neither the Secretary of Transportation nor the Surface Transportation Board shall have regulatory or enforcement authority relating to provisions of this section.

Sec. 13715. Negotiated fuel adjustments

(a) IN GENERAL- Nothing in section 13714 shall be construed to abrogate provisions relating to fuel cost adjustments in any transportation contract or agreement in effect on the date of the enactment of the Motor Carrier Fuel Cost Equity Act of 2001 and any renewal of such a contract or agreement thereafter. Nothing in this section and sections 13714 and 14102 shall be construed to prohibit any motor carrier, broker, or freight forwarder from including any privately negotiated fuel cost adjustment provision in any contract or agreement to provide transportation that is an amount necessary to compensate the person responsible for paying for fuel for the amount of increase in the cost of fuel.

(b) CONTINUATION OF AUTHORITY- Nothing in section 13714 shall impair the ability of any person to enter into any contract or agreement after the date of the enactment of the Motor Carrier Fuel Cost Equity Act of 2001 that provides for a fuel adjustment under this section or section 13714 during any period in which no fuel surcharge is required under section 13714.

(c) CLERICAL AMENDMENT- The analysis for chapter 137 of such title is amended by adding at the end the following:

13714. Fuel surcharge.

13715. Negotiated fuel adjustments.

SEC. 3. CONFORMING AMENDMENT.

Section 14102 of title 49, United States Code, is amended by adding at the end the following:

(c) MANDATORY PASS-THROUGH TO COST BEARER-

(1) IN GENERAL- A motor carrier, broker, or freight forwarder providing transportation or service using motor vehicles not owned by it and using fuel not paid for by it-

(A) shall pass through to the person responsible for paying for fuel any fuel surcharge required by section 13714 or provided for in transportation contracts or agreements;

(B) shall disclose in writing to the equipment lessor and lessee the amount of all freight rates and charges and fuel surcharges applicable to such transportation or service; and

(C) is prohibited from-

(i) intentionally reducing compensatory transportation costs (other than the fuel surcharge) to the person responsible for paying for fuel for the purpose of adjusting for or avoiding the pass through of the fuel surcharge; and

(ii) intentionally imposing a fuel cost adjustment in accordance with section 13715 for the purpose of avoiding any payment under this section or section 13714.

(2) LIMITATION ON AUTHORITY- Notwithstanding any other provision of this part, enforcement of this section shall be through the private right of action provided in section 14704(a) of title 49, United States Code, and neither the Secretary of Transportation nor the Surface Transportation Board shall have regulatory or enforcement authority relating to provisions of this subsection.