Legislative & Regulatory Update – January 9, 2017 Presented by Rick Schweitzer, NPTC’s General Counsel

Topics for Discussion Continuing Resolution– HOS Restart Fix New Drug and Alcohol Clearinghouse Rule New Entry-Level Driver Training Rule Status of other FMCSA Rulemakings Trump Plan for Infrastructure Investment New DOT Secretary, Policies FMCSA Autonomous Vehicle Seminar Questions and Answers

Continuing Resolution Congress passed short-term continuing resolution to fund all government agencies through April 28, 2017 DOT appropriations enacted for FY 2016 requires certification by DOT IG that FMCSA study on restart changes show improvement in all outcomes related to safety, operator fatigue, driver health and longevity, and work schedules before agency may revert to prior rules But law removed statement that 34-hour restart would remain in place, just without once every 168 hrs. and 1:00 a.m.-5:00 a.m. requirements

34-Hour Restart FMCSA report to Congress has been drafted; once submitted, FMCSA would remove the HOS 34-hour restart entirely (revert back to 2003 HOS rules); all drivers would need to do rolling restart every 7 or 8 days to determine available on duty time New 2017 CR language keeps current restart rules in place unless DOT submits report to Congress and Both FMCSA and DOT IG find that FMCSA study on restart changes show improvement in all outcomes related to safety, operator fatigue, driver health and longevity, and work schedules FMCSA study probably will not be released; if it is released, will not meet the standards necessary to change the restart provisions to include one restart per 168 hours and two periods of 1:00-5:00 a.m.

CSA Study—National Academy of Sciences FAST Act required NAS to conduct 18 month study of CSA and SMS to analyze accuracy of BASICs in identifying high risk carriers and predicting future crash risk, severity Review methodology used to calculate BASIC percentiles, weights assigned to violations, ties between crash risk and specific violations, use of non-fault crashes Corrective Action Plan to be submitted to Congress 120 days after report, due in July 2017; how will FMCSA address deficiencies DOT IG to assess whether plan complies with February 2014 IG Report on CSA

Entry-Level Driver Training Final Rule FMCSA published final rule on December 8, 2016 on driver training curriculum, hours of instruction, self-certification standards for entry- level CDL drivers Applicants for Class A or B CDL, or hazmat, passenger and school bus endorsements, would be required to complete designated knowledge and behind-the-wheel training from an instructional program that meets FMCSA standards No minimum hours for knowledge or BTW components; OOIDA and safety groups have petitioned to reinstate minimum hours standard Training entities must self-certify compliance with standards and be listed on FMCSA Training Registry Three-year phase-in of requirements; carriers and rivers must comply by February 7, 2020

Drug and Alcohol Clearinghouse Final Rule Final rule published December 5, 2016; establishes on-line clearinghouse of data on CDL drivers with positive drug or alcohol tests, refusals to take tests, or other testing violations Three-year phase-in; compliance required January 6, 2020 Carriers/MROs must submit positive results and refusals to database; SAPs must input data on drivers undergoing return-to-duty processes Prospective employers will query database on driver applicant’s record (with driver’s permission) Carriers must make annual query to database for existing CDL drivers

Drug and Alcohol Testing Clearinghouse Eliminates direct inquiries to prior employers once new system is in place Carrier fees for access to the database will be determined later; drivers will not have to pay fees to access their own data Drivers will be identified by the CDL number and state of issuance, not be Social Security Number FMCSA will retain 25% random testing rate for controlled substances in 2017

ELD Court Challenge Court of Appeals panel denied OOIDA petition for review of electronic logging device final rule on October 31, 2016 OOIDA argued that final rule did not require ELDs to automatically record changes in duty status, as set out in statute; still requires manual insertion of duty status changes, like paper logs (would require an impossibility) Also argued harassment, privacy issues OOIDA is seeking rehearing by the full court of appeals Rule will go into effect in December 2017 as planned unless full court reverses panel’s decision

Speed Limiting Devices Joint NHTSA/FMCSA NPRM published September 7, 2016; to affect all new class 7 and 8 vehicles Would require use of devices on all heavy vehicles set at 60, 65 or 68 mph (also requested comments on no set upper limit) NPRM would apply only to new vehicles Did not propose retrofit for existing vehicles, but asked for comments on advisability Four Senators requested retrofit rules for existing trucks

Trump Infrastructure Proposal President-Elect Trump has proposed investing $1 trillion in infrastructure (highways, bridges, airports, ports, etc.) over the next ten years Expected to be on legislative agenda in first 100 days of new Congress, but after tax reform and other regulatory reform efforts Multi-agency task force developing details now; considering expanding private sector involvement, tax credits for investors, infrastructure bank, repatriation of foreign assets of U.S. corporations at lower tax rate Some in Congress still proposing increased fuel taxes More private investment will result in tolls or other fees to repay investors; NPTC has joined Alliance for Toll-Free Interstates to oppose new tolls on existing highway capacity

New DOT Secretary, Policies Elaine Chao selected as new Secretary of Transportation; was Labor Secretary under George W. Bush, and Deputy DOT Secretary under George H.W. Bush Confirmation hearing January 11 Married to Senate Majority Leader Mitch McConnell (R-KY) FMCSA, other Administrators still TBD Effect on FMCSA policies: Safety Fitness rulemaking Minimum Financial Responsibility requirements Driver Wages Study Sleep Apnea rulemaking Speed Limiting Devices rulemaking

Unified Registration System Delay FMCSA has announced delay in URS implementation Previously, all hazmat private fleets must file evidence of insurance and all private fleets must file agents for service of process with FMCSA by April 14, 2017; these dates will be postponed New Federal Register notice will be issued in January 2017 with revised compliance dates

FMCSA Autonomous Vehicle Workshop January 5 workshop of federal, state regulators and industry personnel FMCSA preparing policy statement for summer 2017 on approach to permitting AV operations (similar to NHTSA policy document); will contain model state regulatory policy Questions on licensing, training, permits, driver hours of service, insurance and liability, vehicle marking, etc. FMCSA has authority to allow pilot programs and exemptions from the FMCSRs States also testing vehicles, developing policy and regulatory approaches; need for nationwide uniformity/preemption

Contact Info Richard P. Schweitzer, PLLC 1717 K Street, N.W. Suite 900 Washington, D.C. 20006 (202) 223-3040 rpschweitzer@rpslegal.com