CSA, HOURS OF SERVICE AND CARB UPDATE

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CSA, HOURS OF SERVICE AND CARB UPDATE

• Wendy Ockerman
• Director of Safety
• Osterkamp Trucking, Inc.
• Frontier Transportation, Inc.
• Dedicated Fleet Systems, Inc.

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
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
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
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.

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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.

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Vocabulary

• CSA- Comprehensive Safety Analysis
• FMCSA-Federal Motor Carrier Safety Administration
• PSP-Pre-Employment Screening Program

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)

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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.

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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.

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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.

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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.

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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.

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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)

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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.
• Fatalities dropped by more than 35 between 2004
  and 2009.
• Fatal truck crashes dropped overall from about
  2.75 in 1998 to about 1.8 in 2008 (per million
  miles)

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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.

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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.

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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)

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CSA

• CSA has four major components that ensure a
  complete compliance effort
• Data collection
• Safety measurement
• Safety evaluation
• Interventions

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CSA

• Data collection
• Roadside inspections.
• Federally recorded crashes.
• Violations found during interventions.
• After the data is collected and analyzed,
  carriers and drivers are given a numeric score.

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CSA

• Safety measurements are divided into 7
  basic categories. The first 5 are available for
  the public to view.
• Unsafe driving
• Fatigued driving
• Driver fitness
• Controlled substance and alcohol
• Vehicle maintenance
• Cargo related Not available for public to view
• 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.

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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.

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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

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CSA

• Scores can add up quickly depending on the
  combination of events involved.
• Example
• A false log has a severity rating of 7
• Because the driver was placed out of service an
  additional severity rating of 2 is added
• 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
• Because the driver is responsible for this
  violation, points will be added to drivers score
  as well as the motor carriers score.
• Driver scores are with them for 36 months. Motor
  carrier scores stay with the carrier for 24
  months.

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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.

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CSA

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

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CSA

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

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CSA

1. On-site investigation The investigators audit
   a carrier on-site for the narrow and specific
   issues surrounding poor scores.
2. 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.
3. 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.
4. Following an intervention, the FMCSA can request
   that a carrier develop and submit a cooperative
   safety plan.

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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.

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CSA

• Remember
• A bad CSA score for a driver will not suspend
  his drivers license.
• A drivers score will follow him.

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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.
• www.psp.fmcsa.dot.gov
• The above website will give 5 years of an
  applicants crash history and three years of his
  inspection history-with drivers permission.

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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.

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Our equipment director when he first viewed
the proposed regulations
34
His Assistant

• YIKES!

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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.

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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)

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CARB EMISSIONS

• Exact Compliance
• Install the best available PM filter on 1996
  model year and newer engines.
• 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

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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.

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CARB EMISSIONS
Compliance Schedule A - January 1 2011  Vehicle-Specific (26,000 lbs ) Compliance Schedule A - January 1 2011  Vehicle-Specific (26,000 lbs ) Compliance Schedule A - January 1 2011  Vehicle-Specific (26,000 lbs )
Engine year PM Filter 2010 Compliance
Pre-1994 N/A 1/1/2015
1994-1995 N/A 1/1/2016
1996-1999 1/1/2012 1/1/2020
2000-2004 1/1/2013 1/1/2021
2005-2006 1/1/2014 1/1/2022
2007-2009 N/A 1/1/2023
2010 Meets Final Compliance Meets Final Compliance
Any vehicle that has been retrofitted with a PM Filter by Jan 1, 2014 is exempt from replacement until Jan 1, 2020. Any vehicle that has been retrofitted with a PM Filter by Jan 1, 2014 is exempt from replacement until Jan 1, 2020. Any vehicle that has been retrofitted with a PM Filter by Jan 1, 2014 is exempt from replacement until Jan 1, 2020.
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CARB EMISSIONS
3 Truck Operators (Or Less ) Compliance Schedule A - Vehicle-Specific (26,000 lbs ) 3 Truck Operators (Or Less ) Compliance Schedule A - Vehicle-Specific (26,000 lbs ) 3 Truck Operators (Or Less ) Compliance Schedule A - Vehicle-Specific (26,000 lbs )
Compliance Date PM Filter 2010 Compliance
1/1/2014 1st Truck 1/1/2023
1/1/2015 2nd Truck 1/1/2023
1/1/2016 3rd Truck 1/1/2023
1/1/2023 All engines 2010 Compliant All engines 2010 Compliant
Must comply with reporting requirements by Jan
31, 2012 2014 depending upon the age of trucks.
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CARB EMISSIONS
Engine year compliance replace schedule for trucks lighter than 26,000 GVWR (Bobtails) Engine year compliance replace schedule for trucks lighter than 26,000 GVWR (Bobtails)
1995 and Older 1/1/2015
1996 1/1/2016
1997 1/1/2017
1998 1/1/2018
1999 1/1/2019
2000-2003 1/1/2020
2004-2005 1/1/2021
2007-2009 1/1/2023
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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.

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CARB EMISSIONS
Phase-in Option for Fleets Vehicle-Specific (26,000 lbs ) Phase-in Option for Fleets Vehicle-Specific (26,000 lbs )
Compliance Date Vehicles With PM Filter
1/1/2012 30
1/1/2013 60
1/1/2014 90
1/1/2015 90
1/1/2016 100
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.
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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
• PM filters installed before July 2011.
• Early purchase of cleaner engines before 2012
  (originally equipped with PM filter).
• Reduction of the number of trucks since 2006.
• Adding fuel-efficient hybrids or alternative
  fueled engines to the fleet.

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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.

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CARB EMISSIONS
ARB - Statewide Drayage Truck Regulation ARB - Statewide Drayage Truck Regulation ARB - Statewide Drayage Truck Regulation
1993 and older Prohibited 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 2013 - All trucks must meet or exceeds 2007 engine standards 2013 - All trucks must meet or exceeds 2007 engine standards
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CARB EMISSIONS / CSA 2010) Ramifications

• Carrier Expense
• Cost of PM Filters 15-25,000 per filter
• 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)
• 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
• Available driver reduction by CSA 2010
• Smaller carriers going out of business due to
  not
• being able to afford retrofitting older
  equipment
• Non-compliant out of state carriers being unable
  to cross the California State line.

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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.

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Where to Get More Information
(Sources Heavy Haul Magazine, Transportation
analyst Noel Perry ATA and others)

• http//www.arb.ca.gov/msprog/onrdiesel/documents/F
  SRegSum.pdf
• http//www.safedriverhours.com/proposed.html
• We also have a list of websites that would be
  beneficial to you at www.osterkamptrucking.com

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THANK YOU!