October 2012

Agenda  CSA Overview  Commercial Enforcement Program  Upcoming HOS Changes  MAP-21 Federal Motor Carrier Safety Administration 2

CSA Overview THE PROCESS: Broader array of interventions Includes warning letters and focused on and off-site investigations to augment the full investigations THE SYSTEM: New Safety Measurement System (SMS) Better identifies carriers for Agency interventions THE RULE: Revisions to Safety Fitness Determination (SFD) Regulations To incorporate on-road performance into SFD methodology and eliminate the need for a full compliance review Federal Motor Carrier Safety Administration

CSA Interventions More ways to get carriers to focus on safety:  Warning Letters  Offsite Investigations  Targeted Investigations  Cooperative Safety Plans  Notices of Violation  Notices of Claim Federal Motor Carrier Safety Administration 5

The Safety Interventions process addresses the:  WHAT ? Discovering violations and defining the problem  WHY? Identifying the cause or where the processes broke down  HOW? Determining how to fix it/prevent it by using the Safety Management Cycle (SMC) and Safety Improvement Resources CSA Intervention Tools Federal Motor Carrier Safety Administration

New Safety Measurement System  Replaced the SafeStat system as the FMCSA tool to identify carriers for intervention  Reviews regulatory compliance and identifies unsafe carrier and driver behaviors that lead to crashes  All safety-based roadside violations ~3.5 million inspections per year Federal Motor Carrier Safety Administration Unsafe Driving Fatigued Driving (HOS) Driver Fitness Controlled Substances/ Alcohol Vehicle Maintenance Cargo- Related Crash Indicator SMS

 Carrier census information  Analysis of carrier on-road performance and investigation results based on the most recent 24 months in BASICs  Overall BASIC status (status above threshold may prioritize the carrier for intervention)  Flag if carrier is under an FMCSA order prohibiting operations  Driver and Vehicle Inspection OOS rates  Links to detailed individual inspection results and trend data  Links to SAFER and L&I for current safety rating and authority/insurance status SMS can be found at: What does SMS provide? Federal Motor Carrier Safety Administration

SMS Data CategoryApproximate Number Percentage of Uploaded Crashes Carriers listed as active750K100% Carriers with recent activity “pulse” in last three years 525K100% Carriers with insufficient data325K8% Carriers with sufficient data to be assessed in at least one BASIC 200K92% Carriers with sufficient negative information to have a percentile assigned 92K83% Carriers with at least one BASIC above FMCSA intervention threshold 50K45% Federal Motor Carrier Safety Administration

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SMS Changes Previewed  Strengthening the Vehicle Maintenance BASIC by incorporating cargo/load securement violations  Changing the Cargo-Related BASIC to HM BASIC  Better aligning the SMS with Intermodal Equipment Provider (IEP)regulations  Aligning violations included in SMS with CVSA inspection levels  More accurately identifying carriers that transport significant quantities of HM and passengers. Federal Motor Carrier Safety Administration 11

SMS Changes Announced  Modify SMS Web site display to: Change current terminology of “Insufficient Data’’ and ‘‘Inconclusive’’ to fact-based definitions Distinguish between crashes with injuries and crashes with fatalities. Federal Motor Carrier Safety Administration 12

Additional Changes Effective in December  Removal of 1 to 5 MPH Speeding Violations  Lowered Severity Weight for Speeding Violations That Do Not Designate MPH Range  Alignment of Paper and Electronic Logbook Violations  Name Change of the Fatigued Driving HOS BASIC to the HOS Compliance BASIC Federal Motor Carrier Safety Administration 13

Suspended License Violations  Driver Fitness BASIC – Suspended License violations Inspectors now collecting more detailed information roadside Separating Safety-based suspensions from non-safety based suspension Allows SMS to weigh safety-based suspensions heavier Federal Motor Carrier Safety Administration

December 2012 SMS Improvements  Strengthen the Vehicle Maintenance BASIC by incorporating cargo/load securement violations from the Cargo-Related BASIC.  New HM BASIC  More accurately ID carriers that transport significant quantities of HM  Better align SMS with Intermodal Equipment Provider (IEP) regulations.  Align violations included in SMS with CVSA inspection levels  More accurately ID carriers that should be subject to lower passenger carrier intervention thresholds  Modify SMS public display Federal Motor Carrier Safety Administration

16 NEW BASICs as of December 2012 Unsafe Driving Fatigued Driving (HOS) Driver Fitness Controlled Substances/ Alcohol Vehicle Maintenance Cargo- Related Crash Indicator SMS CURRENT Behavior Analysis and Safety Improvement Categories (BASICs) HOS Compliance Unsafe Driving Crash Indicator HM Compliance Vehicle Maintenance Controlled Substances/ Alcohol Driver Fitness SMS Safety Measurement System Federal Motor Carrier Safety Administration

SMS changes under consideration  Comprehensive modifications to roadside violation severity weights per MCSAC  Recalibration of the Utilization Factor used to incorporate VMT for the Crash and Unsafe Driving BASICs  Adjustment to safety event groupings in all BASICs  Other Ideas? Federal Motor Carrier Safety Administration

Safety Fitness Determination (SFD) NPRM  Incorporate on-road safety performance  Not require a compliance review for a rating  NPRM scheduled for 2013 publication Federal Motor Carrier Safety Administration

Overview  Program size  Complaints  Outreach  Broker Rule  Partnerships  MAP-21 Impacts  Other Issues Limited Service Exclusion Technical Amendments Federal Motor Carrier Safety Administration 20

Program Overview  4300 Active HHG Authorized Carriers  FY 2011 HHG Carrier Reviews 566 reviews conducted 82 of the top 100  FY 2011 HHG Carrier Enforcement Cases  162 cases completed 42 of the top 100  Suspension Authority Federal Motor Carrier Safety Administration

National Consumer Complaint Database Federal Motor Carrier Safety Administration 22 Hostage Loads (613) Loss and Damage Estimates and Charges Shipping Documents

 Joint Press Release with AMSA and the BBB  Web site & Public Service Announcement (PSA) Educate consumers before hiring a moving company Focuses on safety precautions during HHG moves Moving Company Checklist Linked to various social media such as Facebook and Twitter HHG Outreach Federal Motor Carrier Safety Administration

Broker Rule Five basic elements 1. Requirement to disclose to the individual shippers critical information designed to educate the shipper and facilitate a satisfactory moving experience. 2. Use only HHG brokers and motor carriers that are properly licensed and insured. 3. Brokers must provide an estimate if within a 50 mile radius of the customer. 4. Incorporates new statutory penalties 5. Minimum financial responsibility Federal Motor Carrier Safety Administration

 State Enforcement Partner Louisiana State Police (LSP) Public Utilities Commission of Ohio (PUCO) Texas DMV  States with interest in partnerships Michigan State Police Indiana State Police New Jersey Division of Consumer Affairs South Carolina State Transport Police Partnerships Federal Motor Carrier Safety Administration

 HHG Working Group Quarterly Conferences (Industry/State and Federal Enforcement Agencies)  Moving Fraud Working Group Enforcement only Partnerships Federal Motor Carrier Safety Administration

MAP-21 Enhancements  General regulatory scheme Vetting Brokers must have separate authority effective 10/1/12 Proficiency Exam Safety audit in 12 months Review of consumer protection standards within 18 months Authority to order the release of household goods held unlawfully  Broker financial responsibility Federal Motor Carrier Safety Administration 27

Limited Service Exclusion  States that a “household goods motor carrier” excludes carriers that transport household goods in “containers or trailers that are entirely loaded and unloaded by an individual (other than an employee or agent of the motor carrier)”  Industry Practices under review Federal Motor Carrier Safety Administration 28

Rulemaking  Technical amendments HHG carrier document retention rule (DFR) - reduces record retention period to 1 year STB Harmonization rule remove inconsistencies resulting from STB’s new released rates order Rights and Responsibilities Booklet revisions Federal Motor Carrier Safety Administration

Summary of HOS Changes  Effective 2/27/12 On-duty time definition & rest breaks “Egregious” Violation Penalties Oilfield Exemption  Effective 7/1/13 Limitations on the “34-hour restart” Mandatory Rest Break 31

MAP-21 PROVISIONS  Registration of motor carriers (i.e, Unified Registration System (URS))  New Entrant program  Electronic Logging Devices (i.e., EOBRs)  National clearinghouse for drug/alcohol test results of CMV operators 32

 CSA is a comprehensive program including  a new set of interventions,  the SMS to prioritize carriers  Changes being implemented in December  and a new Safety Determination to be proposed.  The HHG program uses a three pronged approach  Outreach  Partnerships  Compliance and Enforcement  MAP-21 will result in program changes Federal Motor Carrier Safety Administration 33