[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1914 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 1914

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2002

  Mr. Kerry (for himself and Mr. Bond) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  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 2002''.

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 of this title who regularly 
        provides such transportation or service shall include a 
        requirement to assess a payer of transportation charges, and a 
        requirement for the payer of transportation charges to pay, a 
        minimum surcharge for the amount of the increase in the price 
        of fuel used in the transportation provided to such payer 
        commencing when the current price of diesel fuel surpasses, by 
        $0.05 per gallon, the benchmark price set forth 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 price.--The benchmark price referred to in 
        paragraph (1) shall be $1.10 per gallon.
            ``(3) Current fuel price.--The current price of diesel fuel 
        applicable under paragraph (1) to a shipment transported as 
        described in that paragraph shall be the latest weekly average 
        price for retail on-highway diesel fuel published by the Energy 
        Information Administration for the district or subdistrict of 
        the Petroleum Administration for Defense in which the shipment 
        is physically tendered to the motor carrier, broker, or freight 
        forwarder.
            ``(4) Increase in the cost of fuel.--The increase in the 
        cost of fuel referred to in paragraph (1) and section 13715 of 
        this title shall be an amount determined by subtracting the 
        benchmark price from the current price of diesel fuel.
    ``(b) Implementation.--The surcharge referred to in subsection 
(a)(1), with respect to a shipment transported by a motor carrier, 
broker, or freight forwarder, shall be--
            ``(1) calculated on the date the shipment is physically 
        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 to the motor carrier, broker, or freight 
        forwarder by the payer of transportation charges.
    ``(c) Calculation of Surcharge on the Basis of Mileage.--For 
purposes of calculating a surcharge on the basis of mileage under this 
section--
            ``(1) it shall be assumed that a gallon of fuel is used for 
        each 5 miles of transportation; and
            ``(2) mileage means the number of miles invoiced 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).
    ``(d) Limitation on Authority.--Notwithstanding any other provision 
of this part, neither the Secretary nor the Board shall have regulatory 
or enforcement authority relating to provisions of this section and 
section 13715 of this title. The payer of fuel costs or any party to a 
transportation contract or agreement may bring an action for 
declaratory and injunctive relief and damages in an appropriate State 
court or United States district court against any party to a 
transportation contract or agreement for an act or omission of that 
party in violation of this section or section 13715 of this title or 
both.
``Sec. 13715. Negotiated fuel adjustments
    ``(a) In General.--Nothing in section 13714 of this title 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 or any 
renewal of such a contract or agreement thereafter. Nothing in this 
section or section 13714 or 14102(c) of this title 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 not less 
than the 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 of this 
title 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 of this title during any period in which no 
fuel surcharge is required under section 13714 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``13714. Fuel surcharge.
``13715. Negotiated fuel adjustments.''.

SEC. 3. MANDATORY PASS-THROUGH TO COST BEARER.

    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 collected by the 
                motor carrier, broker, or freight forwarder pursuant to 
                section 13714 of this title 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) may not--
                            ``(i) intentionally reduce 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; or
                            ``(ii) intentionally impose a fuel cost 
                        adjustment in accordance with section 13715 of 
                        this title for the purpose of avoiding any 
                        payment under this section or section 13714 of 
                        this title.
            ``(2) Limitation on authority.--Notwithstanding any other 
        provision of this part, neither the Secretary nor the Board 
        shall have regulatory or enforcement authority relating to 
        provisions of this subsection. The payer of fuel costs or any 
        party to a transportation contract or agreement may bring an 
        action for declaratory and injunctive relief and damages in an 
        appropriate State court or United States district court against 
        any party to a transportation contract or agreement for an act 
        or omission of that party in violation of this subsection.''.
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