1. FMCSA Border Issues TBWG Meeting Montreal, Quebec October 24-25, 2007 Milt Schmidt Federal Motor Carrier Safety Administration (MC-ESB) 400 7 th Street, S.W. Washington, D.C. 20590 202-366-4049 milt.schmidt@dot.gov

2. FMCSA Update U.S.-Mexico Border Demonstration Project Canadian Issues Study Other U.S.-Canada Issues

3. U.S.-Mexico Border Demonstration Project February 22 – Mexico agrees to allow US auditors into Mexico to conduct audits February 23 – Secretary announces demonstration project 1-year project No Passengers/Hazardous Materials No Cabotage No Longer Combination Vehicles

4. U.S.-Mexico Border Demonstration Project Process for MX carriers to participate –Complete application –Vetting –Pass a pre-authority safety audit (PASA) –Publish notice in FMCSA Register –Publish notice of PASA information in Federal Register –Issue authority Process for US carriers to participate

5. U.S.-Mexico Border Demonstration Project Requirements to Operate in the US (beyond commercial zone) –US safety requirements –Driver License requirements –Environmental regulations –Registration and fuel tax requirements –Vehicle manufacturing standards –DHS entry requirements –Additional requirements CVSA decal PASA

6. U.S.-Mexico Border Demonstration Project Demonstration Project Overview –Participants 44 passed the pre-authority safety audit (PASA) 22 failed PASA 157 withdrew 166 drivers (MX) 180 trucks (MX)

7. U.S.-Mexico Border Demonstration Project Political Issues –Legislation May 29 Publish notice in Federal Register (6/7/07) Reciprocal implementation (US-MX agreement) Inspector General Report to Congress (9/6/07) –FMCSA has taken all appropriate actions –Three findings Port specific plans State and Local outreach Letter of the law issues (all/available, LCV, DL check) –FMCSA Response (9/6/07)

8. U.S.-Mexico Border Demonstration Project Political Issues –FY 2008 Appropriations Bill House and Senate amendments Process Implementation –First Operating Authority Issued 9-6-07 Transportes Olympia (MX) Stagecoach Transportation (US)

9. U.S.-Mexico Border Demonstration Project Demonstration Project Overview –Evaluation Team Appointed by the Secretary Evaluate the safety impact of project –Implements the provisions of NAFTA –All legislative requirements met

10. U.S.-Mexico Border Demonstration Project Operational Issues –Carrier selection Completed application filed with FMCSA Vetting process Mexico requested participation –Pre-authority safety audit –Limited operating authority No HM No passengers No LCVs Cabotage prohibited

11. U.S.-Mexico Border Demonstration Project Operational Issues –CVSA decal –Every Vehicle Every Time –Driver/Vehicle Inspections Driver License Check (100 percent) –Mexican Conviction Data Base –LIFIS Operating authority check Financial responsibility –Insurance US licensed insurer MCS-90 Avaiability

12. U.S.-Mexico Border Demonstration Project Operational Issues –Issuance of Operating Authority Must pass PASA Notice published in FMCSA Register Protest period (10 days) Federal Register Notice (15 days) Issuance of Certificate of Registration –Required Filings with FMCSA Insurance Process Agent

13. Canadian Issues Study Canadian Issues Study - Objectives –To ensure motor carriers with cross-border operations in Canada and the US have access to information on the requirements of operating in both countries including CMV safety regulatory variances. –To provide the FMCSA with a comprehensive report of historical, current, and future planned FMCSA- Canada activities and initiatives.

14. Canadian Issues Study Canadian Issues Study - Objectives –To identify significant issues that would impact FMCSA’s ability to work toward harmonization and reciprocal recognition of programs, policies, regulations, and standards with Transport Canada and other Canadian governmental agencies relating to CMV safety. –To provide assistance to FMCSA in evaluating the effect of FMCSA regulatory proposals and policy initiatives on Canadian motor carriers and drivers operating in the US. Additionally, evaluate the effect of regulatory proposals and policy changes on current FMCSA initiatives with Transport Canada and other Canadian government organizations, and bi-lateral agreements with Transport Canada (including Departmental agreements).

15. Canadian Issues Study Canadian Issues Study – Preliminary Results −Much higher degree of inter-provincial compatibility of requirements than any time in the history of NSC. −Significant progress has been made to eliminate deviations at both the national and regional levels. −Transportation of Dangerous Goods regulations harmonized between federal and provincial/territorial governments

16. Canadian Issues Study Canadian Issues Study – Key Issues –Reciprocity of Safety Ratings –Registration of US carriers by Canada –Data Exchange –Safety ratings do not consider cross border data –Hours of Service –Trip Inspections –Medical Reciprocity Issues –Cargo Securement Issues

17. Canadian Issues Study Canadian Issues Study – Key Issues –EOBR implementation –Speed Governor/Limiters –Bus PMVI-Frequency and acceptance of CVSA decal –Variations between US Federal and State requirements –Management of Drivers/Vehicles- communication with carriers and enforcement

18. Canadian Issues Study –Web pages –Catalog of US-Canada cooperative initiatives –Canadian industry impact analysis

19. Other U.S.-Canada Issues Border Enforcement Grants –$32 million for FY 2007 –$21 million awarded –US-Canada Safety Rating Comparative Analysis University of North Dakota Manitoba involved Process –Select representative sample of US compliance reviews –Process through Manitoba safety rating system –Compare results

20. Other U.S. Canada Issues Medical Certificate as part of CDL –NPRM 11-16-06 –Comment period ended 2-14-07 National Registry –Establish training, testing and certification standards for medical examiners –Provide a database of medical examiners that meet the prescribed standards –Require medical examiners to transmit electronically to FMCSA the name of drivers and a numerical identifier for each driver that is examined –Expect NPRM publication in July 2007

21. Other U.S.-Canada Issues Financial Responsibility for Motor Carriers –ANPRM published on 12-15-06 –Responds to petition from the Government of Canada –Seeks comments on allowing evidence of financial responsibility from Canadian insurance companies –Seeks comments on revisions to MCS-90 involving liability while operating in Mexico

22. Questions Milt Schmidt Federal Motor Carrier Safety Administration (MC-ESB) 400 7th Street, S.W. Washington, D.C. 20590 202-366-4049 milt.schmidt@dot.gov