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6/2/2014 1 CSA, HOURS OF SERVICE AND CARB UPDATE Wendy Ockerman Director of Safety Osterkamp Trucking, Inc. Frontier Transportation, Inc. Dedicated Fleet.

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Presentation on theme: "6/2/2014 1 CSA, HOURS OF SERVICE AND CARB UPDATE Wendy Ockerman Director of Safety Osterkamp Trucking, Inc. Frontier Transportation, Inc. Dedicated Fleet."— Presentation transcript:

1 6/2/2014 1 CSA, HOURS OF SERVICE AND CARB UPDATE Wendy Ockerman Director of Safety Osterkamp Trucking, Inc. Frontier Transportation, Inc. Dedicated Fleet Systems, Inc.

2 6/2/2014 2 Introduction A brief summary of regulations that will affect the trucking industry in 2011. A summary of the new CSA regulations, new proposed hours of service changes. A brief summary of the CARB regulations that will affect our industries on the road.

3 6/2/2014 3 Agenda Explanation of the new proposed hours-of- service regulations- 10 minutes Summary of the new CSA program-10 minutes Summary of the CARB regulations –10 minutes

4 6/2/2014 4 Overview The new regulations affecting the trucking industry and supply chain will have broad consequences (both good and negative). While they should improve safety and cleaner air, they will most likely create higher costs and a shortage of drivers and tractors in California including equipment coming into California from other states.

5 6/2/2014 5 Overview CSA 2040 Safety is the goal of the proposed new hours of service and the new CSA program. In our industry safety is the most important service we can provide. There is no doubt the laws passed must be obeyed and embraced. The key is education, planning and working together with our shipper partners to keep capacity shortages at a minimum.

6 6/2/2014 6 Overview - CARB and Emission Regulations CARB and the ports are interested in clean air. We have no choice but to comply with the ever changing clean air regulations. Technology and equipment planning will be key to success.

7 6/2/2014 7 Vocabulary CSA- Comprehensive Safety Analysis FMCSA-Federal Motor Carrier Safety Administration PSP-Pre-Employment Screening Program

8 6/2/2014 8 Hours of Service Proposed Changes Required off-duty period: Minimum of 10 consecutive hours Driving time between two such periods: FMCSA says it prefers 10 hour limit (but is still considering a 10 or 11-hour driving limit)

9 6/2/2014 9 Hours of Service Proposed Changes On duty/driving window: Currently allowed to drive 11 hours during a 14 hour on duty period. New regulations will only allow 10 hours during a 13 hour on duty period with a couple of half hour off duty breaks sprinkled in. Exception : Twice a week, drivers will be allowed to extend the on duty window to 16 hours. This will not extend driving time or the 70 hour in 8 day rule.

10 6/2/2014 10 Hours of Service Proposed Changes Consecutive hours of driving. Under the new regulations, a driver cannot drive or be on duty after 7 hours until he/she takes a mandatory ½ hour (or more) break No driving after 60 hours on-duty in 7 days or 70 hours on-duty in 8 days – This remains unchanged.

11 6/2/2014 11 Hours of Service Proposed Changes Sleeper berth rule remains unchanged: Outside of the 14 hour driving/on duty window, drivers must spend either 10 consecutive hours in off duty, or as an alternative, 8 hours sleeper birth and a later second period of two hours in sleeper berth, off duty or combinations there of.

12 6/2/2014 12 Hours of Service Proposed Changes Restart: The 34 hour restart will allow drivers to restart their 60 or 70 hour on-duty clock by taking at least 34 consecutive hours off-duty, but would have some limitations. Any restart must include two periods between midnight and 6 am. Currently a restart just begins at the time of 34 hours after going off duty. A driver would be allowed to begin another 34-hour off-duty period no sooner than 7 days after the beginning of the previous restart.

13 6/2/2014 13 Hours of Service Proposed Changes On-duty time. –The definition of on-duty would change to allow team drivers to log as off-duty up to 2 hours spent in the passenger seat immediately before or after a period of 8 or more hours in the sleeper berth while the other team member is driving. However, a driver waiting to be unloaded in a non moving truck would still be considered to be on-duty time.

14 6/2/2014 14 Hours of Service Proposed Changes Penalties –Drivers and motor carriers would face civil penalties of up to $2750 and $11,000 respectively, for each offense of driving or permitting someone to drive three or more hours over the driving-time limit (the yet-to- be-determined limit of the 10 or 11 hours)

15 6/2/2014 15 Hours of Service Proposed Changes – Concerns Comments: The trucking industry and the labor & safety advocacy groups are criticizing the new regulations. The regulations are complex and can easily be misunderstood by law enforcement and drivers. Law enforcement will have trouble being consistent with some complexities. Recent declines in truck crashes make the changes questionable as to their effectiveness in driving safety. 1) Fatalities dropped by more than 35% between 2004 and 2009. 2) Fatal truck crashes dropped overall from about 2.75 in 1998 to about 1.8 in 2008 (per million miles)

16 Hours of Service Proposed Changes Comments: According to estimates the proposed changes would increase transportation costs by anywhere from 3% to 20%, depending on a specific retailers supply chain network and operations. (source Transport Topics Feb 2011) The changes would shorten drivers driving time and will actually require more drivers on the road. Also limits night-time deliveries causing some supply chains to be affected. 6/2/2014 16

17 6/2/2014 17 CSA CSA-comprehensive safety analysis is the new method the FMCSA is using to track, monitor, evaluate and intervene with motor carriers. It replaces the SafeStat system. For the first time FMCSA is directly tracking and monitoring driver safety performance.

18 6/2/2014 18 CSA CSA does not create new regulations. It ensures compliance with existing regulations. CSA not only considers the motor carriers, but the drivers also. This could create a reduced driver pool by up to an estimated 150,000 to 500,000 nationwide. (source Heavy Haul Magazine)

19 6/2/2014 19 CSA CSA has four major components that ensure a complete compliance effort: 1. Data collection 2. Safety measurement 3. Safety evaluation 4. Interventions

20 6/2/2014 20 CSA Data collection: 1. Roadside inspections. 2. Federally recorded crashes. 3. Violations found during interventions. After the data is collected and analyzed, carriers and drivers are given a numeric score.

21 6/2/2014 21 CSA Safety measurements are divided into 7 basic categories. The first 5 are available for the public to view. 1. Unsafe driving 2. Fatigued driving 3. Driver fitness 4. Controlled substance and alcohol 5. Vehicle maintenance 6. Cargo related – Not available for public to view 7. Crash indicator – Not available for public to view Shipper Liability: Even though not available to the public, information from Items 6 and seven can be subpoenaed from a carrier by plaintiffs in a lawsuit.

22 6/2/2014 22 CSA After the violation has been assigned to the correct category, it will receive a number value based on that violations perceived severity A low score means that the violation is not often related to causing crashes. A high score means the violation has a high association of causing crashes. If a driver is placed out of service due to the violation, an extra 2 points are added.

23 6/2/2014 23 CSA Safety related event ratings will be diminished over time. A event happening within a 6 month period would receive a 3 points, after 6 months it would drop to 2, beyond a 1 years period it would drop to a 1. Some events/violations take up to 36 months to drop off. Crashes are weighted on severity. Injury or death is given an increased severity rating. Crashes releasing a hazardous material are given a increased severity rating. The higher the total score, the more corrective action the CSA will take

24 6/2/2014 24 CSA Scores can add up quickly depending on the combination of events involved. Example: 1. A false log has a severity rating of 7 2. Because the driver was placed out of service an additional severity rating of 2 is added 3. Because it is a recent violation (within 6 months) the time weighting is 3 Total 7 + 2= 9 x the time weighting of 3 = 27 1) Because the driver is responsible for this violation, points will be added to drivers score as well as the motor carriers score. 2) Driver scores are with them for 36 months. Motor carrier scores stay with the carrier for 24 months.

25 6/2/2014 25 CSA Safety evaluation (the third component) Scores are entered into the database as part of the safety measurement system (SMS) and compared to the scores of other drivers and motor carriers to determine any actions taken by FMCSA. This is the peer comparison for drivers and the motor carriers. (comparison of other companies with similar amount of trucks in a carriers fleet) Intervention thresholds are compared to your scores. If you are over the threshold, intervention can take place.

26 6/2/2014 26 CSA Actions and Interventions Acceptable scores (below the allowed threshold) No action is taken Unacceptable scores (above the threshold) Actions are taken 1) Warning letter or notification of violation: If carrier demonstrates the problem has been corrected via subsequent data collection, there will be no further action.

27 6/2/2014 27 CSA 2. Increased roadside enforcement. Being over threshold in two or more basics will ensure the motor carrier is flagged in the roadside inspection selection system. 3. There are two stand alone basic action generators- fatigued driving & unsafe driving. Either one of these over threshold will ensure an intervention by FMCSA. 4. If your companies score is unsatisfactory you lose the green light on *Pre-pass 5. Off-site investigation: Requires the motor carrier provide requested records to investigators focusing on areas where a carrier has a poor basics score.

28 6/2/2014 28 CSA 5. On-site investigation : The investigators audit a carrier on-site for the narrow and specific issues surrounding poor scores. 6. Comprehensive on-site investigation : Auditors review all safety related aspects of a carriers operation. Used only when other interventions have failed or if there are other compelling reasons for such an on-site review. 7. The FMCSA can respond with a notice of claim, penalty and settlement agreement if an intervention does not go well. This is essentially a fine. This can be issued to motor carrier and/or driver. 8. Following an intervention, the FMCSA can request that a carrier develop and submit a cooperative safety plan.

29 6/2/2014 29 CSA A Shippers lawsuit liability could be increased based on a attorney using available CSA data to claim a shipper has used a known unsafe carrier. Make sure your fleet or your carriers are: Ensuring positive roadside inspections with no violations. Training: CSA effects everyone. Train all personnel. Monitoring scores frequently. Using the DATA Q (reconciliation) system to ensure your scores are accurate. Using a CSA monitoring program like Vigillo or JJ Keller CSA program to monitor and evaluate drivers and scores. Pre-screening drivers using the PSP (pre-employment screening program) which allows viewing of drivers score prior to hiring them.

30 6/2/2014 30 CSA Remember: A bad CSA score for a driver will not suspend his drivers license. A drivers score will follow him.

31 6/2/2014 31 CSA February 28, 2011 FMCSA expanded the PSP program: FMCSA is adding Co-driver safety and post-crash violations to the existing roadside inspection and crash records that employers already can see. The above website will give 5 years of an applicants crash history and three years of his inspection history-with drivers permission.

32 6/2/2014 32 CARB & EMISSIONS Jerry Stahl – Vice President CARB & EMISSIONS Jerry Stahl – Vice President On December 12, 2008 the California Air Resources Board approved the Truck and Bus regulations to reduce particulate matter, or PM, and oxides of nitrogen EMISSIONS (NOX). These regulations apply to nearly all diesel fueled trucks and buses with a gross vehicle weight rating (GVWR) greater than 14,000 pounds that are privately or federally owned. Trucks that transport marine shipments (water-born) must comply with the drayage truck regulations. However, today we are going to focus primarily on non-marine items.

33 Our equipment director when he first viewed the proposed regulations 6/2/2014 33

34 His Assistant YIKES! 6/2/2014 34

35 6/2/2014 35 CARB & EMISSIONS Amended in December 2010 to provide more time for fleets to comply. Requires installation of PM (particulate matter) filter retrofits beginning January 1, 2012 Replacement of older trucks starting January 1, 2015. By January 1, 2023, nearly all vehicles will need to have 2010 model year engines or equivalent.

36 6/2/2014 36 CARB & EMISSIONS What are the compliance requirements for heavier trucks and buses? Heavier trucks and buses with a gross vehicle weight rating greater than 26,000 pounds will have two primary ways to comply. (gross vehicle weight rating is the allowable total weight of a road vehicle and/or trailer when loaded)

37 6/2/2014 37 CARB & EMISSIONS Exact Compliance: 1. Install the best available PM filter on 1996 model year and newer engines. 2. Replace trucks with pre 1994 model year engines starting in 2015 and then later year models according to the schedule approved by the California Air Resources Board

38 6/2/2014 38 CARB & EMISSIONS Replacements with a 2010 model year or newer engines will meet the final requirements, but fleets can also replace with used trucks that would have a future compliance date on the schedule. By 2023 all trucks and buses must have 2010 model year engines with few exceptions. No reporting would be required if complying with this schedule.

39 CARB & EMISSIONS Compliance Schedule A - January 1 2011 Vehicle-Specific (26,000 lbs +) Engine yearPM Filter2010 Compliance Pre-1994N/A1/1/2015 1994-1995N/A1/1/2016 1996-19991/1/20121/1/2020 2000-20041/1/20131/1/2021 2005-20061/1/20141/1/2022 2007-2009N/A1/1/2023 2010Meets Final Compliance Any vehicle that has been retrofitted with a PM Filter by Jan 1, 2014 is exempt from replacement until Jan 1, 2020. 6/2/2014 39

40 CARB & EMISSIONS 3 Truck Operators (Or Less ) Compliance Schedule A - Vehicle-Specific (26,000 lbs +) Compliance DatePM Filter2010 Compliance 1/1/20141 st Truck1/1/2023 1/1/20152 nd Truck1/1/2023 1/1/20163 rd Truck1/1/2023 All engines 2010 Compliant 6/2/2014 40 * Must comply with reporting requirements by Jan 31, 2012 & 2014 depending upon the age of trucks.

41 CARB & EMISSIONS Engine year compliance replace schedule for trucks lighter than 26,000 GVWR (Bobtails) 1995 and Older1/1/2015 19961/1/2016 19971/1/2017 19981/1/2018 19991/1/2019 2000-20031/1/2020 2004-20051/1/2021 2007-20091/1/2023 6/2/2014 41

42 6/2/2014 42 CARB & EMISSIONS Additionally there will be a phase-in option that allows fleets to decide which vehicles to retrofit or replace regardless of engine year. In this option, fleets must report information about all of their heavier trucks starting January 31, 2012 to be eligible. Fleets could comply by demonstrating they have met the percentage requirements each year shown on the next table.

43 CARB & EMISSIONS Phase-in Option for Fleets Vehicle-Specific (26,000 lbs +) Compliance DateVehicles With PM Filter 1/1/201230% 1/1/201360% 1/1/201490% 1/1/201590% 1/1/2016100% 6/2/2014 43 With this option any engine with a PM filter regardless of model year would be compliant until at least 2020. As of January 1, 2020, all heavier trucks would need to meet the requirements specified in the earlier Compliance Schedule for Heavier Trucks shown.

44 6/2/2014 44 CARB & EMISSIONS Starting 1-1-2012, fleets using the phase-in option for heavier trucks, could take advantage of some other credits to delay requirements for other heavier trucks in the fleet until 2017 Credits will be given for: 1) PM filters installed before July 2011. 2) Early purchase of cleaner engines before 2012 (originally equipped with PM filter). 3) Reduction of the number of trucks since 2006. 4) Adding fuel-efficient hybrids or alternative fueled engines to the fleet.

45 6/2/2014 45 CARB & EMISSIONS Any vehicle equipped with a PM filter prior to 2014 will be compliant until 2020 This must be reported by January 31, 2014 to take advantage. Vehicles operated less than 1000 miles per year can also be exempt from the general requirements but must be reported in the compliance year.

46 CARB & EMISSIONS ARB - Statewide Drayage Truck Regulation 1993 and olderProhibited by December 31, 2009 1994 thru 2003 After December 31 - 2009 PM Filter 2004 After December 31, 2011 - PM Filter 2005 and 2006 After December 31, 2012 – PM Filter 2007 and Newer Not Applicable - Fully Compliant until 2023 2013 - All trucks must meet or exceeds 2007 engine standards 6/2/2014 46

47 CARB & EMISSIONS / CSA 2010) Ramifications Carrier Expense 1. Cost of PM Filters $15-25,000 per filter 2. Cost of Tractor (new) $130,000.00 (which is an increase of $30,000.00 over the last few years due to filters and emission requirements) 3. Also new emission regulations are adding 1000 to 1500 pounds per unit. Estimated 350,000 power units obsolete Equipment pricing expected to go up due to supply and demand Capacity shortage due to: 1. Available driver reduction by CSA 2010 2. Smaller carriers going out of business due to not being able to afford retrofitting older equipment 3. Non-compliant out of state carriers being unable to cross the California State line. 6/2/2014 47

48 What is ahead? Possible labor issues: Experts say it could be several times what we faced five or six years ago. Estimates vary from a shortage of 150,000 drivers to as many as 500,000 within the next few years. There will be Less carriers available by 2015 due to regulatory intervention, poor financial performance and/or staffing of drivers Analysts predicts it will take 1.5 million conversations to generate 500,000 applications of which 2/3rds of those applicants will not make it past the drug screens, criminal back-round checks, heightened insurance company requirements and stricter documentation required of immigrants. Currently we estimate that it costs between $2,000 and $4,000 to put each driver into a tractor seat. 3 to 1 hiring to retention ratio is predicted (as an average) due to drivers playing musical trucks due to competition and incentives in the carriers (and shippers) battle for drivers. More proposed driver regulations are going to be considered this year. 6/2/2014 48

49 6/2/2014 49 Where to Get More Information ts/FSRegSum.pdf We also have a list of websites that would be beneficial to you at: (Sources: Heavy Haul Magazine, Transportation analyst Noel Perry ATA and others)

50 THANK YOU! 6/2/2014 50

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