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WASHINGTON — A Republican congressman from Oklahoma has introduced new legislation that would prevent the Federal Motor Carrier Safety Administration (FMCSA) from implementing a speed limiter rule on 18-wheelers. Rep. Josh Brecheen introduced the Deregulating Restrictions on Interstate Vehicles and Eighteen-Wheelers (DRIVE) Act, on Tuesday, May 2. In a news release, Brecheen said the rule “would negatively impact both the agricultural and trucking industries and include vehicles like semi-trucks, livestock trailer/truck combos, grain trucks and other large commercial vehicles.” “This overreach by the Biden Administration has the potential to negatively impact all facets of the agricultural and trucking industries. I know from experience driving a semi while hauling equipment, and years spent hauling livestock, that the flow of traffic set by state law is critical for safety instead of an arbitrary one-size-fits-all speed limit imposed by some bureaucrat sitting at his desk in Washington, D.C.,” Brecheen added. “This rule will add one more needless burden and Congress must stop it. For example, if a rancher is transporting cattle in a trailer across state lines, under this rule, the federal government would require a speed limiter device when above 26,000 lbs. Out-of-control bureaucrats are trying to impose ridiculous regulations on Americans who are trying to make ends meet.” FMCSA’s proposed rule to require speed limiters on commercial vehicles with a gross weight over 26,000 pounds will add extra transportation costs to the private sector and make roads less safe, Brecheen contends, noting that one study found that “The frequency of interactions by a vehicle traveling 10-miles per hour below the posted speed limit was found to be 227% higher than a vehicle moving at traffic speed.” The FMCSA has not set a maximum speed at this time. Groups in support of Brecheen’s legislation include: Owner-Operator Independent Drivers Association (OOIDA), American Farm Bureau Federation, National Cattlemen’s Beef Association, United States Cattlemen’s Association, Western States Trucking Association, Livestock Marketing Association, National Association of Small Trucking Companies and the Towing and Recovery Association of America. “The physics is straightforward: Limiting trucks to speeds below the flow of traffic increases interactions between vehicles and leads to more crashes,” said OOIDA President Todd Spencer. “OOIDA and our 150,000 members in small business trucking across America thank Congressman Brecheen for his leadership in keeping our roadways safe for truckers and for all road users.” National Association of Small Trucking Companies President David Owen also spoke out for the DRIVE Act. “Mandating speed limiters on commercial vehicles would increase speed differentials between cars and trucks, increase traffic density, and increase impatience and risky driving by those behind a plodding truck,” Owen said. “Mandatory speed limiters would likely cost more lives and cause more accidents and injuries. NASTC commends the DRIVE Act for stopping a predictable regulatory disaster.” Not everyone is against speed limiters, however. American Trucking Associations (ATA) President and CEO reiterated in a statement that the ATA supports them. “The easiest position anyone in Washington can take is ‘No.’ It requires little effort, zero facts and an unwillingness to compromise. ATA isn’t the association of ‘No.’ We put safety first. We deploy the best technology to help save lives,” Spear said. “In short, we care about the motoring public, and we feel our position on a speed limiter rule is based on data, not baseless rhetoric. Driving as fast as you can as long as you like kicks safety to the curb. It’s irresponsible. Safety is a winning issue and ATA enjoys winning. This issue is no exception.”ATA policy on speed limiters supports electronically governing Class 7 and 8 trucks manufactured after 1992 used in commerce should be governed by tamperproof devices that either limit the vehicle to a fixed maximum of 65 mph or limit the vehicle to 70 mph — with the use of adaptive cruise control and automatic emergency braking. ATA also believes that the U.S. Department of Transportation should conduct a recurring five-year review of speed governing regulations to ensure that the regulations are appropriate and consistent with currently deployed technologies.”“Everyone knows excessive speed kills, and ATA policies support technology to address this irrefutable fact of physics. It is vital that any regulation get the details right, and the technologies are changing every year,” said ATA Executive Vice President of Advocacy Bill Sullivan. “These efforts to prohibit the development of safety policies are misguided, they will lead to more serious crashes, and this bill will never become law, even if it passes the House.” The comment period on the speed limiter proposal ended with more than 15,000 respondents, with most opposed to the measure. However, the FMCSA is moving forward with the rule, and it could be finalized as early as June, according to the Unified Regulatory Agenda.

WASHINGTON — Truck drivers, shippers, wholesalers, retailers and other businesses key to the nation’s supply chain must do a better job at sharing information to help address issues. This is the plan the Biden administration said on Tuesday, May 2, that it was ramping up in an effort to try and fix ongoing supply chain woes. The Freight Logistics Optimization Works (FLOW) program, which was launched in March 2022 with 18 companies, now has 53 members. Motor carriers participating in FLOW include: C&K; Gulf Winds; IMC Companies; J.B. Hunt; NFI Industries; RoadOne; and Werner. Exchange participants receive assistance from the U.S. Department of Transportation (USDOT) with things such as supply-and-demand information. U.S. Transportation Secretary Pete Buttigieg said the program will “help us to smooth out supply chains to make us more resilient to whatever it is that is coming next.” Data exchange may involve incoming container demand or available supply-side assets to move goods like terminal slots, tractors, chassis, and warehouse space, the Transportation Department said. According to a Reuters report, White House deputy National Economic Council director Celeste Drake said at a forum the program had evolved its goal from “answering the very simple question of ‘Where’s my stuff?’ to ‘How do we create a forward-looking integrated picture of the supply chain condition in the U.S.?’” Drake said the plan is to expand the program to additional ports. USDOT has spent $1.5 million to create the program and is asking for $5.3 million in the current budget request “to keep scaling this, to make it even more useful.” According to Reuters, he said officials will keep refining the program and seeking feedback from companies to make it more useful. Biden created a task force in June 2021 to address high prices and shortages of consumer goods and crucial components, thanks to pandemic-related labor and demand issues.

LITTLE ROCK, Ark. — The average price for a gallon of diesel fuel has risen and fallen over the past several weeks, with this week’s price sitting slightly down. According to the Energy Information Administration (EIA), as of May 1, the average price is $4.018, down from $4.077 on April 24 and $4.116 on April 17. The only regions seeing rising prices are in the Rocky Mountains and along the West Coast, where the average price for a gallon of diesel sits at $4.146 and $4.489, respectively. The lowest price in the U.S. can be found along the Gulf Coast at $3.754 per gallon, according to the EIA. Meanwhile, oil companies around the world have been reporting bumper earnings in the wake of Russia’s invasion of Ukraine in February 2022, which sent energy prices soaring and curtailed some of Moscow’s supplies to the world. The fat profits and resulting hefty pay for energy company bosses have spurred demands that the companies do more to protect consumers squeezed by surging energy bills that have sent inflation skyrocketing. BP said it expected oil demand to “remain elevated” in the second quarter because of a recent decision by some OPEC+ nations to restrict production, combined with strengthening Chinese demand. The company also has come under fire recently for scaling back its climate goals — watering down its targets for reducing greenhouse gas emissions by a third, while planning to pump more more oil and gas by the end of the decade than it previously forecast. BP said it earned $5 billion in underlying replacement cost profit in the first three months of the year, up from $4.8 billion in the previous quarter. The figure excludes one-time items and fluctuations in the value of inventories. The company said the earnings report “reflects an exceptional gas marketing and trading result” and a “very strong oil trading result.” “This has been a quarter of strong performance and strategic delivery,” CEO Bernard Looney said in a statement.

SACRAMENTO, Calif. — The California Air Resources Board (CARB) has fast-tracked a new rule to clamp down on pollutants from heavy-duty trucks and require deployment of zero-emission vehicles (ZEVs). Leaders say it’s a first-of-its-kind requirement that will create a phased-in transition toward zero-emission medium-and heavy-duty trucks. The approval came on Friday, April 28. Under the new rule, fleet owners operating vehicles for private services, such as last-mile delivery and federal fleets, must begin their transition toward zero-emission vehicles starting in 2024. The rule cannot be implemented without approval by the U.S. Environmental Protection Agency. But it’s related to standards the Biden administration already approved last month to phase out diesel-powered box trucks, semitrailers and large passenger pick-ups. If the EPA approves California’s rule, other states could later adopt the same standards. According to a news release from CARB, the new rule, known as Advanced Clean Fleets, “helps put California on a path toward accomplishing Gov. Gavin Newsom’s goal of fully transitioning the trucks that travel across the state to zero-emissions technology by 2045.” The rule includes the ability to continue operating existing vehicles through their useful life. Additionally, state leaders say the new rule is expected to generate $26.6 billion in health savings from reduced asthma attacks, emergency room visits and respiratory illnesses. The state also claims that fleet owners will save an estimated $48 billion in their total operating costs from the transition through 2050. The American Trucking Associations President and CEO Chris Spear said in a statement that the decision to force motor carriers to purchase zero-emission vehicles ignores the fact that these types of trucks are early-stage technologies and the infrastructure to support them does not exist. “Today, an unelected Board in California voted to force trucking companies to buy zero-emission trucks. Fleets are just beginning to understand what it takes to successfully operate these trucks, but what they have learned so far is they are significantly more expensive, charging and refueling infrastructure is nonexistent, and ZEVs are not necessarily a one-for-one replacement — meaning more trucks will be needed on California roads to move the same amount of freight,” Spear said. Spear added that California is setting unrealistic targets and unachievable timelines that could lead to higher prices for the goods and services delivered to the state and fewer options for consumers. “As it becomes clear that California’s rhetoric is not being matched by technology, we hope the Board will reverse course and allow trucking companies the freedom to choose the clean technologies that work best for their operations,” Spear said. “ATA-member companies work tirelessly to deliver the nation’s freight while deploying the cleanest technologies available. Over the past 35 years, those efforts have produced a 98% reduction in truck emissions. We continue to say, ‘Yes’ to advancing cleaner technologies, but achievable targets and realistic timelines matter.” Truckload Carriers Association President Jim Ward echoed Spear, writing in a statement that “Pushing trucking companies — who are the central link in the supply chain — towards the adoption of vehicles that are still early in development and fraught with limitations is premature and irresponsible.” Ward added: “As an industry, truckload stands ready to be at the forefront of a proactive, but realistic approach to the rollout of electric commercial vehicles that aid the protection of our environment and ensure our essential equipment is reliable, affordable, and supported by sound infrastructure. The adoption of this regulation signals a lack of awareness regarding the present gap between goals and current achievability – which if ignored will inevitably lead to supply chain disruptions that will affect the consumer and their pocketbook.” Ward further wrote that “Calculated planning, realistic expectations and practical solutions are the answer towards advancing clean technologies. Today’s adoption of the ‘Advanced Clean Fleets’ regulation only proves that none of those answers were considered in this misguided transition.” While trucks represent only 6% of the vehicles on California’s roads, they account for over 35% of the state’s transportation generated nitrogen oxide emissions and a quarter of the state’s on-road greenhouse gas emissions, the CARB news release noted. Sam Wilson, an analyst with the Union of Concerned Scientists, said in a statement the technology is available to start transitioning toward electric trucks. “We need this standard to accelerate the necessary phase-out of fossil-fueled trucks that are fouling our air,” Wilson said. California communities that sit near trucking corridors and warehouse locations with heavy truck traffic have some of the worst air in the nation, CARB officials have said. California is set to invest almost $3 billion between 2021-25 in zero-emission trucks and infrastructure. This investment is a part of a $9 billion multi-year, multi-agency zero-emissions vehicle package to equitably decarbonize the transportation sector that was agreed upon by the Governor and the Legislature in 2021. “We have the technology available to start working toward a zero-emission future now,” said CARB Chair Liane Randolph. “The Advanced Clean Fleets rule is a reasonable and innovative approach to clean up the vehicles on our roads and ensure that Californians have the clean air that they want and deserve. At the same time, this rule provides manufacturers, truck owners and fueling providers the assurance that there will be a market and the demand for zero-emissions vehicles, while providing a flexible path to making the transition toward clean air.” Yana Garcia, California’s secretary for environmental protection, said her state is leading by example with these new measures to slash air pollution from heavy-duty trucks. “Where you live, work or go to school should not determine the quality of the air you breathe,” Garcia said. “The Advanced Clean Fleets rule brings California one step closer to addressing historic inequities that have placed some communities at the epicenter of environmental pollution and the resulting health consequences, while accelerating our transition to a zero-emission future.” NEW RULE AT A GLANCE Drayage trucks will need to be zero-emissions by 2035. All other fleet owners will have the option to transition a percentage of their vehicles to meet expected zero-emission milestones, which gives owners the flexibility to continue operating combustion-powered vehicles as needed during the move toward cleaner technology, according to CARB officials. The flexibility is intended to take into consideration the available technology and the need to target the highest-polluting vehicles. For example, last mile delivery and yard trucks must transition by 2035, work trucks and day cab tractors must be zero-emission by 2039, and sleeper cab tractors and specialty vehicles must be zero-emission by 2042. The rule also allows fleet owners to receive exemptions based on available technology to make sure fleet owners continue to replace their older polluting trucks with ones that have the cleanest engines in the nation. There are already about 150 existing medium- and heavy-duty zero-emission trucks that are commercially available in the U.S. today. The Advanced Clean Fleets rule includes an end to combustion truck sales in 2036, a first-in-the-world requirement that factors in public commitments to transition to zero-emission technology by truck manufacturers, potential cost savings for fleets and accelerated benefits for California communities, according to CARB. The rule also provides fleet owners flexibility and provides regulatory certainty to the heavy-duty market. “An analysis of the sales and purchase requirements estimates that about 1.7 million zero-emission trucks will hit California roads by 2050,” according to the CARB news release. “To support the needed infrastructure and services to make this transition, agencies across government have committed to the Zero-Emission Infrastructure Joint Agency Statement of Intent.” Advanced Clean Fleets follows the 2020 adoption of the Advanced Clean Trucks rule, which put in place a requirement for manufacturers to increase the sale of zero-emission trucks and its waiver was recently granted by the Biden Administration’s Environmental Protection Agency. The Associated Press contributed to this report.

WASHINGTON — A new report submitted by U.S. Transportation Secretary Pete Buttigieg to Congress analyzes the cost and effectiveness of electronic logging devices (ELDs) in commercial motor vehicles. The report, which is mandated by law, also notes the difficulty in providing data on just how much safer ELDs have made the trucking industry — or whether they have had any real impact on safety at all. “Since the full implementation of the ELD rule, multiple events have occurred that have impacted the use of ELDs, safety and hours of service (HOS) enforcement,” the report states. “Such factors include the September 2020 implementation of new HOS regulations, HOS exemptions issued in response to the COVID-19 pandemic (which suspended HOS rules for carriers transporting specified commodities in support of relief efforts during the pandemic) and the implementation of the Federal Motor Carrier Safety Administration’s (FMCSA’s) Drug and Alcohol Clearinghouse. These confounding factors have increased the challenges relating to any further analysis of the ELD mandate, making it difficult to tease out their individual safety impacts.” In evaluating safety effects, the report notes that the FMCSA performed several types of analysis and used its judgment to select a conservative result for the number of crashes and fatalities avoided by ELD use. “Using the elements of the Office of Management and Budget approved Information Collection Request for the paper records of duty status, the paperwork savings (driver time to prepare the paper records, clerical time to file and maintain the paper records and supporting documents for at least six months from the date the records are generated, and paper costs) and safety (crash reductions), the Regulatory Impact Analysis estimated the total annualized industry cost, using 2013 dollars and a 7% discount, to be $1.836 million, with annualized total benefits of $3.010 million, resulting in net benefits of $1.174 million,” the report states. To evaluate compliance with the ELD rule, FMCSA analyzed the HOS violations that encompass the 10/11-hour driving time limits for buses and trucks, respectively; the 14/15-hour driving window or on-duty limits for trucks and buses; and the 60/70-hour weekly on-duty limits. During the two-year period from the compliance date, Dec. 18, 2017, to the full compliance phase, which began Dec. 17, 2019, compliance with the HOS categories listed above improved, according to the report. In December 2017, 1.19% of driver inspections cited at least one HOS violation. “In December 2021, that percentage decreased to approximately 0.77. Increased compliance with the HOS rules reduces the risks of fatigue-related crashes attributable, in whole or in part, to patterns of violations of the HOS rules,” according to the report. The report also notes that the transition to ELDs has increased the efficiency and effectiveness of FMCSA’s enforcement personnel and State Partners. ELDs improve the efficiency of investigations by allowing motor carriers to upload requested records for review by safety officials quickly and efficiently during roadside inspections, and also in advance of an investigation. “By creating a standardized display in the Electronic Records of Duty Status software, safety officials can easily review logs, without having to decipher hand-written and hand-drawn records,” the report states. “In addition, ELDs make it easier for FMCSA and its enforcement partners to identify falsified records and take appropriate action. Due to the efficiency of using ELDs to review HOS, safety officials spend less time reviewing RODS, freeing them up to focus on other safety and enforcement matters.” Click here to view the full report.

REMOTE, Colo. — Colorado’s Air Quality Control Commission has adopted new rules to promote access to zero-emissions trucks. The state health department’s Air Pollution Control Division developed the rules and proposed them to the commission following extensive public engagement, according to a news release. Colorado joins other states, including California, Massachusetts, New Jersey, New York, Oregon, Vermont and Washington in copying EPA-approved regulations from California’s so-called Advanced Clean Trucks strategy. Colorado’s new measures will: Give Colorado businesses and consumers more options when buying zero-emission trucks. Reduce maintenance, operating, and fuel costs for zero-emission truck owners. Dramatically reduce greenhouse gas emissions, like carbon dioxide, that cause climate change. Reduce air pollution emissions, like nitrogen oxides and particulate matter, that lead to the formation of harmful ground-level ozone pollution. “We’re always looking for new ways to address environmental and health inequities that still impact many Colorado communities today. By encouraging more zero-emitting trucks on the road, we take another step towards realizing clean air for all Coloradans no matter where they live,” said Michael Ogletree, director of the Air Pollution Control Division. “We’re proud of our part in developing these policies that will benefit Colorado’s air quality for years to come and save Coloradans money in the long run.” The independent commission unanimously approved three rules after a multi-day hearing on Friday, April 21. The hearing included opportunities for public comment and consideration of alternate proposals from other organizations. Ultimately, the commission voted to adopt the two most impactful rules as the division proposed them, which include the Advanced Clean Trucks rule and the Low NOx Truck rule. The Advanced Clean Trucks rule sets a sales standard for manufacturers to make more zero-emission trucks available in Colorado. It takes effect for trucks starting with model year 2027, and the sales standard percentage grows incrementally through model year 2035. This rule will only apply to manufacturers of medium-and heavy-duty trucks. It does not impact farming equipment or off-road construction equipment. The sales standard does not require Colorado businesses or consumers to purchase a zero-emission truck. The Low NOx Truck rule sets more stringent air pollution emissions standards for heavy duty vehicles, improves testing requirements for engines, and extends warranties. It takes effect for trucks starting with model year 2027. NOx refers to nitrogen oxides, which form ground-level ozone pollution when they react with other pollutants in heat and sunlight. Most trucks run on diesel, which generates even more nitrogen oxide emissions than vehicles that run on gas. The rule will lower the nitrogen oxide emissions standard for new vehicles by 90% compared to the current standard. The commission made some changes to the division’s proposal for the last rule, the Large Entity Reporting rule. It will still only apply to operators with a fleet of 20 or more trucks. As the Public Service Company of Colorado suggested, the division will collect this information twice, instead of once. The first reporting deadline is November 30, 2024. The second reporting deadline is December 31, 2027. As the Environmental Justice Coalition suggested, the division will also make all of this data publicly available. The division proposed the clean trucking rules to help meet goals in the Colorado Greenhouse Gas Pollution Reduction Roadmap. The roadmap directed the division to develop a holistic Clean Truck Strategy and to consider proposing these rules as part of that effort. “Zero-emission vehicles can lead to savings on maintenance and fuel costs for owners,” Colorado officials stated. “Cleaner vehicles also offer savings through avoided health impacts and avoided climate impacts. The air division completed a Final Economic Impact Analysis that shows total savings could be more than $15.6 billion through 2050.” To help cover up-front costs, the division recently opened two grant programs for applications to fund clean vehicles. The federal Inflation Reduction Act created significant incentives for zero-emission trucks. These include up to $40,000 off the purchase price of clean trucks through a new federal tax credit. Colorado is also positioned to access significant federal funding to assist in deployment and reduce up-front costs for zero-emission trucks.

GRAND RAPIDS, Mich. — A total of three companies and 11 individuals have been charged with violating the Clean Air Act in a scheme to disable emissions control systems on semi-trucks. According to a news release from U.S. Attorney for the Western District of Michigan Mark Totten, this case is one of the largest of its kind ever charged in the United States. The corporate defendants are Diesel Freak LLC and Accurate Truck Service LLC of Gaylord, Michigan, and Griffin Transportation Inc. of Grand Rapids, Michigan. The individual defendants are: Ryan Lalone, 47, of Gaylord; Wade Lalone, 44, of Gaylord; Dustin Rhine, 32, of Indian River, Michigan; James Sisson, 42, of Mt. Pleasant, Michigan; Douglas Larsen, 51, of Wayland, Michigan; Craig Scholten, 58, of Byron Center, Michigan; Ryan Bos, 45, of Grandville, Michigan;  Robert Swainston, 50, of Hopkins, Michigan; Randy Clelland, 33, of Grand Rapids; Scott DeKock, 45, of Hudsonville, Michigan; and Glenn Hoezee, 55, of Howard City, Michigan. “Today’s criminal charges send a loud message of accountability to polluters who flout our environmental laws,” Totten said. “These rules not only protect the planet; they also protect people — especially the most vulnerable. They safeguard the water we drink, the lakes we fish, and the air we breathe. To the owners and drivers of the vehicles that participated in this scheme and are now spewing harmful pollutants: get them fixed now.” The three companies, along with Ryan Lalone, Wade Lalone, Larsen, Scholten, Bos, Swainston, Clelland, DeKock and Glenn Hoezee, have signed plea agreements, indicating their intent to plead guilty to a felony information, according to the news release. Rhine and Sisson were indicted by a federal grand jury. Arraignments and change of plea hearings will occur on dates to be set by the U.S. District Court. According to public records filed in the case, Ryan Lalone owns Diesel Freak LLC, and Wade Lalone, Rhine and Sisson were employed there.  Accurate Truck Service LLC is owned by Larsen, Scholten and Bos, and Swainston and Clelland were employed there. Griffin Transportation Inc. is owned by Scholten and Bos, while DeKock once owned a shipping company at which Hoezee was employed. According to Totten’s office, Accurate Truck Service LLC removed or altered the emissions hardware components of vehicles with heavy-duty diesel engines. Diesel Freak LLC then reprogrammed the engine computers of the vehicles so that they would continue to function even after the hardware was removed or altered. This process is sometimes referred to as a “deletion,” that is, “deleting” the emissions controls from the vehicles. Deleting emissions controls from the vehicles can improve performance and fuel economy and save maintenance costs; however, tampering with or removing emissions controls can drastically increase the emissions of nitrogen oxides, particulate matter, carbon monoxide and non-methane hydrocarbons found in vehicle exhaust. Exposure to and inhalation of these chemicals at greater levels is associated with serious health risks. According to the news release, Griffin Transportation Inc. and the company DeKock owned asked Accurate Truck Service LLC and Diesel Freak LLC to delete emissions equipment on trucks owned, operated or leased by the companies. During the conspiracy, Diesel Freak LLC was involved in at least 362 deletions, while Accurate Truck Service LLC involved in at least 83 deletions, the news release noted. Further, Griffin Transportation Inc. was involved in at least 12 deletions, and DeKock’s former company in at least four deletions, according to Totten. Accurate Truck Service LLC and Griffin Transportation Inc. have agreed to pay a combined $1 million fine. Diesel Freak LLC has agreed to pay a $750,000 fine subject to defense arguments regarding inability to pay. Any fine is a part of the criminal sentence and ultimately within the discretion of the sentencing judge. “By illegally tampering with emissions controls on diesel trucks operating throughout the United States and Canada, defendants caused the excessive release of diesel exhaust containing toxic gases and impurities harmful to public health and the environment,” said Acting Special Agent in Charge Richard Conrad of the U.S. Environmental Protection Agency’s Criminal Investigation Division. “This case highlights EPA and our law enforcement partners’ continued efforts to prosecute those who violate environmental and public health laws in the U.S. for financial gain.”

LITTLE ROCK, Ark.  — With the average price for a gallon of diesel fuel breaking a 10-week downward trend on April 17, costs could grow even higher after major oil-producing countries led by Saudi Arabia said they’re cutting supplies of crude — again. According to the Energy Information Administration, (EIA), the average price for a gallon of diesel sits at $4.116 per gallon, up from $4.098 per gallon on April 10. Russia is joining in with Saudi Arabia by extending its own cuts for the rest of the year. In theory, less oil flowing to refineries should mean higher gasoline and diesel prices for drivers and could boost the inflation hitting the U.S. and Europe. And that may also help Russia weather Western sanctions over its invasion of Ukraine at the expense of the U.S. The decision by oil producers, many of them in the OPEC oil cartel, to cut production by more than 1 million barrels a day comes after prices for international benchmark crude slumped amid a slowing global economy that needs less fuel for travel and industry. It adds to a cut of 2 million barrels per day announced in October. Between the two cuts, that’s about 3% of the world’s oil supply. Here are key things to know about the cutbacks: WHY ARE OIL PRODUCERS CUTTING BACK? Saudi Arabia, OPEC’s dominant member, said Sunday that the move is “precautionary” to avoid a deeper slide in oil prices. Saudi Energy Minister Abdulaziz bin Salman has consistently taken a cautious approach to future demand and favored being proactive in adjusting supply ahead of a possible downturn in oil needs. That stance seemed to be borne out as oil prices fell from highs of over $120 per barrel last summer to $73 last month. Prices jumped after Sunday’s announcement, with international benchmark Brent crude trading at about $85 on Monday, up 6%. With fears of a U.S. recession exacerbated by bank collapses, a lack of European economic growth and China’s rebound from COVID-19 taking longer than many expected, oil producers are wary of a sudden collapse in prices like during the pandemic and the global financial crisis in 2008-2009. Capital markets analyst Mohammed Ali Yasin said most people had been waiting for the June 4 meeting of the OPEC+ alliance of OPEC members and allied producers, most prominently Russia. The decision underlined the urgency felt by producers. “It was a surprise to all, I think, watchers and the market followers,” he said. “The swiftness of the move, the timing of the move and the size of the move were all significant.” The aim now is to ward off “a continuous slide of the oil price” to levels below $70 per barrel, which would be “very negative” for producer economies, Yasin said. Part of the October cut of 2 millions barrels per day was on paper only as some OPEC+ countries aren’t able to produce their share. The new cut of 1.15 million barrels per day is distributed among countries that are hitting their quotas — so it amounts to roughly the same size cut as in October. Governments announced the decision outside the usual OPEC+ framework. The Saudis are taking the lead with 500,000 barrels per day, with the United Arab Emirates, Kuwait, Iraq, Oman, Algeria and Kazakhstan contributing smaller cuts. WILL THE PRODUCTION CUT MAKE INFLATION WORSE? It certainly could. Analysts say supply and demand are relatively well balanced, which means production cuts could push prices higher in coming months. The refineries that turn crude into gasoline, diesel and jet fuel are getting ready for their summer production surge to meet the annual increase in travel demand. In the U.S., fuel prices are highly dependent on crude, which makes up about half of the price per gallon. Lower oil prices have meant U.S. drivers have seen the average price fall from records of over $5 per gallon in mid-2022 to $3.50 per gallon this week, according to motor club AAA. The cuts, if fully implemented, “would further tighten an already fundamentally tight oil market,” Jorge Leon, senior vice president at Rystad Energy, said in a research note. The cut could boost oil prices by around $10 per barrel and push international Brent to around $110 per barrel by this summer. Those higher prices could fuel global inflation in a cycle that forces central banks to keep hiking interest rates, which crimp economic growth, he said. Given the fears about the overall economy, “the market may interpret the cuts as a vote of no confidence in the recovery of oil demand and could even carry a downside price risk — but that will only be for the very short term,” Leon said. WHAT WILL THIS MEAN FOR RUSSIA? Moscow says it will extend a cut of 500,000 barrels per day through the rest of the year. It needs oil revenue to support its economy and state budget hit by wide-ranging sanctions from the U.S., European Union and other allies of Ukraine. Analysts think, however, that Russia’s cut may simply be putting the best face on reduced demand for its oil. The West shunned Russian barrels even before sanctions were imposed, with Moscow managing to reroute much of its oil to India, China and Turkey. But the Group of Seven major democracies imposed a price cap of $60 per barrel on Russian shipments, enforced by bans on Western companies that dominate shipping or insurance. Russia is selling oil at a discount, with revenue sagging at the start of this year. WHAT DOES THE WHITE HOUSE SAY? President Joe Biden addressed the OPEC+ cut on Monday before returning to the White House from a trip to Minnesota, predicting, “It’s not going to be as bad as you think.” Earlier, White House National Security Council spokesman John Kirby expressed U.S. opposition to the move, saying, “We don’t think that production cuts are advisable at this moment given market uncertainty, and we made that clear.” But he insisted that the oil market is in a different place from last year when prices surged following Russia’s invasion of Ukraine. “We’re focused on prices, we’re not focused on barrels,” he told reporters Monday, adding that the U.S. was given a heads-up before the announcement. The White House response was milder than in October, when cuts came on the eve of U.S. midterm elections in which soaring gas prices were a major issue. Biden vowed at the time that there would be “consequences,” and Democratic lawmakers called for freezing cooperation with the Saudis. Caroline Bain, chief commodities economist at Capital Economics, said the cutback shows “the group’s support for Russia and flies in the face of the Biden administration’s efforts to lower oil prices.” The Trucker Staff contributed to this report.

COLUMBUS, Ind. — Soft freight demand will likely linger for a while, but emerging capacity removal will be key to rebalancing, according to ACT Research. ACT points to slower declines and wider spreads between specialized and dry van rates this year and notes that a lot of rebalancing must take place to turn the proverbial ship, according to the latest release of the Freight Forecast, U.S. Rate and Volume OUTLOOK report. “Spot rates are now about 17% below truckload fleet operating costs in Q2, worse than the 15% operating loss in Q1, by our estimates,” said Tim Denoyer, ACT Research’s vice president and senior analyst. “Failures started to pick up when the loss reached 10% in Q4’22,” he continued. “This was a record at the time, and we see Newton’s third law of motion at work as the rebalancing requires a string of record losses following record pandemic profits. Q2 is the fourth straight quarter of significant losses, and both the time and magnitude of the losses should send a strong enough signal to tighten capacity.” Denoyer said that the pendulum of pricing power has been firmly with shippers for some time and that lower rates are starting to impact capacity. “Though new equipment production remains elevated, hiring and fleet exit trends tell us capacity is slowing at the margin,” Denoyer said. “With marginal fleets scrambling for miles with busted budgets, spot rates have gone far below costs, but this can only go on so long.” Denoyer added that “the symbiotic relationship between truckload and less-than-truckload is informative for understanding the freight cycle: in tight markets, freight flows from truckload to less-than-truckload and in loose markets from less-than-truckload to truckload. The trend changes so far this year suggests the industry has passed peak looseness, and a rebalancing has begun. The bottom of the spot rate cycle can’t be far now.”

LITTLE ROCK, Ark. — The price for an average gallon of diesel fuel in the U.S. rose slightly on April 17, ending multiple weeks of declines. According to the Energy Information Administration, (EIA), the average price sits at $4.116 per gallon, up from $4.098 per gallon on April 10. This news comes as OPEC announced plans to cut production by more than a million barrels a day. Analysts say the oil market has had a few days to digest the OPEC announcement and prices have stabilized for now, but since the cost of oil accounts for more than half of what consumers pay for gasoline “drivers may not catch a break at the pump any time soon.”

WASHINGTON — In an effort to help deliver surface transportation projects faster, the U.S. Department of Transportation’s Federal Highway Administration (FHWA) has announced a Request for Information (RFI) seeking public input on environmental review processes that can be improved under the Inflation Reduction Act (IRA). The comment period opened on Monday, April 17. FHWA will consider ideas and recommendations from public and private stakeholders on how to reduce project delays through the development of more efficient and effective environmental reviews, according to a news release. “Under President Biden’s leadership, we now have historic funding to bring better roads, bridges, railways, highways and transit to the American people,” said U.S. Secretary of Transportation Pete Buttigieg. “To make the most of that funding, we are stepping up efforts to help communities deliver their transportation projects on time, on task, and on budget.” The IRA provides guidance and resources to several federal agencies to facilitate efficient and effective reviews under the National Environmental Policy Act and other federal processes. This could include identifying new strategies that would mitigate environmental impacts and thereby reduce timeframes for environmental reviews. “The Inflation Reduction Act is providing the nation with historic investments and new opportunities to build an economy that works for working families,” said Federal Highway Administrator Shailen Bhatt. “Our goal with this request for information is to identify new strategies and evidence-based solutions that can both increase the efficiency of environmental reviews and reduce delays when it comes to delivering projects.” The IRA includes Environmental Review Implementation Program funds to be administered by FHWA to support environmental reviews of surface transportation projects. The funds may also be used by FHWA to develop guidance, technical assistance, templates, training or other tools “to facilitate an efficient and effective environmental review process for surface transportation projects,” the news release stated. “In order to use the Environmental Review Implementation Funds optimally, FHWA is seeking information through the RFI on what the agency should consider while implementing the funds.” FHWA is also seeking information on: The types of assistance that would be most beneficial to recipients of direct funding and facilitate an efficient and effective environmental review process for surface transportation projects. What program areas would most benefit from new or continued research. Ways in which FHWA can make resources available to the eligible entities while promoting equity and maximizing the opportunity to improve the efficiency and effectiveness of the environmental review process. Comments in response to FHWA’s RFI, “Inflation Reduction Act, Request for Information,” can be submitted at regulations.gov. The RFI is expected be published in the Federal Register on April 17, 2023. For more information on the IRA, please visit www.CleanEnergy.gov.