Monday, August 26, 2013

IRP & IFTA Changes Now Effective


Several changes of importance to motor carriers became effective at the beginning of July this year in both the International Registration Plan and the International Fuel Tax Agreement, as the result of amendments adopted by those organizations a couple of years ago.  

In IRP, new rules for audit and record keeping are now in effect.  In general, these allow somewhat more flexibility to carriers in the way they maintain IRP records.  In particular, states are required to accept for audit those records produced by vehicle-tracking systems, such as those relying on GPS, provided those records contain what an auditor needs to do an audit. 
 

The changes to the Plan also provide a new penalty provision for carriers whose records are inauditable or entirely missing:  a 20 percent increase in IRP fees for the fleet.  

IFTA's change is in the rate of interest states charge for underpayments, including those discovered on audit.  Previously, IFTA's interest rate had been a punitive 12 percent a year.  Now the rate is 2 percent higher than the rate the Internal Revenue Service charges on underpayments.  So, as of July 1, this year, IFTA's rate is only 5 percent rather than 12.  There is more information on this on IFTA's website - www.iftach.org, under Interest Rates.

Saturday, August 17, 2013

FOD - Foreign Object Damage



Editor's Note:  Article author John Esparza is President and CEO of the Texas Trucking Association.

Foreign Object Damage or FOD is simply any substance, debris or article alien to a vehicle or system which could potentially cause damage.  We all go to great lengths to protect ourselves from foreign intrusion which can cause us irreparable harm.  As well we should.  The disruption of progress can disguise itself in many forms.  What's most important, is that we identify and protect ourselves from it.  We prepare.  We have a uniform plan to equalize any harmful effects - any unwanted outcome.   

I have a buddy who while in the Navy worked on the flight deck of an aircraft carrier.   He once told me that periodically the whole crew would link arms and walk every square inch of the deck - forwards and backwards, scanning and looking for any object, large or small that may have made its way, undetected onto the carrier.  While many of you are familiar with the size of an aircraft carrier, the next time you fly out of your local airport - think about packing all that runway, equipment, personnel and then add armament onto a relatively small space.  I'll remind you, that small space is also a floating living quarters for thousands of America's finest.  Pretty impressive.  That kind of logistical efficiency also brings some very high stakes.  Yet it always struck me as odd that arguably one of the most important of tasks, was handled rather rudimentary  - simple, but highly effective.  Get out there with your own eyes and see for yourself.  Put on your coat and walk that deck.  

So, in this case, should a foreign object go undetected and further ingested into the turbine intake of a multi-million dollar aircraft at the very instant it is being catapulted off the deck of an aircraft carrier at full throttle - loaded to the gills with fuel and arms -complete chaos and cataclysmic failure could result.  Not to mention the potential for loss of life.  As I mentioned, the stakes are very high.  Therefore, systemactically checking for foreign objects that can cause mayhem is mandatory and requires an extraordinary amount of discipline.  Another great example of how taking care of the little things promote the bigger things falling in place.  

And if you think about it - the faster the speed of the aircraft, the more catastrophic the mayhem.  This is not so different then how we manage and lead right here at home.  First, always be on the look out for FOD.  It can come in many forms and all of them are disruptive.  The faster we go and the more we are trying to consume in our day, the higher the likelihood the mayhem will be great should we fail to detect those foreign objects.  Second, when it comes to looking for FOD, make it a team effort and get all hands on deck  - quite literally.  You have already surrounded yourself with a team you trust - now test them regularly.  When they are successful - notice, affirm and give thanks.  It's that simple.  And lastly, have a plan for dealing with mayhem.  No matter what we plan or what precautions we take, there will always be failures in the system.  Have a plan that everyone has rehearsed.  In the end and no matter what, it takes a sharp eye to recognize mayhem in the making and strong leadership to know that we must learn from our failures - any degree of failure.  Failure is not fatal, it is a learning experience, but failure to change eventually will be. 

John D. Esparza
President and CEO

Monday, August 12, 2013

CSA Safety Measurement System (SMS) website updated



The CSA Safety Measurement System (SMS) website has been updated with the July 26, 2013 snapshot.  Check your safety assessment now at: http://ai.fmcsa.dot.gov/sms.

NOTE TO CARRIERS: To login into the SMS website and see all of your safety data, you will need an FMCSA-issued U.S. DOT Number Personal Identification Number (PIN) (NOT a Docket Number PIN). If you do not know or have forgotten your PIN, you can request one via http://safer.fmcsa.dot.gov/ and select 'Click here to request your Docket Number PIN and/or USDOT Number PIN.' Be sure to request a U.S. DOT Number PIN, NOT a Docket Number PIN.

July Snapshot Includes Two New Violations

The Federal Motor Carrier Safety Administration (FMCSA) has added two violations to the Safety Measurement System (SMS). One of the violations is based on the new Hours-of-Service (HOS) regulations and the other is based on a more detailed description of existing controlled substances and alcohol regulations. Both were implemented in the SMS as of July 1, 2013. If motor carriers have one or both of these violations, they will see them in the July snapshot of their SMS data which was released in early August.

The table below includes descriptions of the new violations, the Behavior Analysis and Safety Improvement Categories (BASICs) they relate to, and how they are weighted in the SMS.
BASIC Violations Added to the SMS
BASIC
Violation Code
Description
Severity Weight
Violation Group
Driver-Related (Y/N)
HOS Compliance
395.3(a)(3)(ii)
Driving beyond 8-hour limit since the end of the last off-duty or sleeper period of at least 30 minutes

(Note: Does not apply to short haul drivers)
7
Hours
Y
Controlled Substances/Alcohol
392.5(a)(3)
Driver in possession of intoxicating beverage while on duty or driving
3
Alcohol Possession
Y
FMCSA’s new HOS regulation (395.3(a)(3)(ii)) requires drivers to take a 30-minute rest break during the first eight hours of a shift. Based on a court decision, effective August 2, 2013, FMCSA will no longer enforce the 30-minute break provision for drivers that qualify for either of the short haul operations exceptions outlined in 49CFR 395.1(e) or (2). This new regulation and guidance can be found at http://www.fmcsa.dot.gov/rules-regulations/topics/hos/index.htm.

The violation related to the Controlled/Substances Alcohol BASIC was added based on industry and law enforcement feedback and enables roadside inspectors to distinguish between alcohol possession and alcohol use. SMS assigns a lower severity weight to alcohol possession. Motor carriers should discuss these violations with their drivers to make sure they understand them and how to comply with the associated regulations.

FMCSA has updated Appendix A of the SMS Methodology to incorporate these violations and it is now available on the Compliance, Safety, Accountability Website at http://csa.fmcsa.dot.gov/Documents/SMS_AppendixA_ViolationsList.xlsx.

Thank You,
CSA Web Team
U.S. DOT/Federal Motor Carrier Safety Administration

HOS Questions to the ATA



Q: What was the Court's decision? 
A: The Court denied ATA's request that it vacate the restrictions on use of the 34-hour restart provision that went into effect on July 1 of this year. However, the Court did rule favorably on ATA's request that it vacate the rest break requirements for "short-haul" drivers. The Court accepted ATA's arguments that the differences between long-haul drivers and short-haul drivers was such that applying the rest break requirement made no sense - particularly given FMCSA's failure to attempt a justification during the rulemaking.

Q: When does the Court's decision take effect?

 A: The parties in the case have 45 days in which to challenge the Court's ruling. Assuming no party seeks a rehearing, the Court's decision should take effect after this "challenge window" closes, on September 9th. Until that time, motor carriers must comply with all elements of the current hours of service regulations.

Q: What is a "short-haul" driver? 

 A: A short haul driver is one who meets the conditions to qualify for a record of duty status (log) exemption in 395.1 (e) (but see next Q&A). These include two groups of drivers:
Those who operate exclusively within a 100 air mile radius of their normal work reporting location and report to and are released from the same location daily within 12 consecutive hours of reporting for duty;  and Non-CDL holders who operate exclusively within a 150 air-mile radius of the work reporting location.

Q: Are both types of short haul drivers impacted by the Court's decision?
 
A: Technically speaking, the Court's decision only speaks specifically to non-CDL holders who operate within a 150 air mile radius. However, the Court also pointed out the distinction between short haul and long haul drivers generally, and how the intent of FMCSA's changes to the hours of service rules was to address the latter. Consistent with the Court's rationale, ATA believes both types of short haul drivers were intended to be exempted from the rest break requirement. ATA will seek clarification from FMCSA before the Court's decision takes effect.

Q: Will ATA or other parties to the case challenge the court's ruling?

 
A: It is unlikely that ATA or other parties to the case will challenge the court's ruling.

Q: Where can I get a copy of the Court's ruling?
 
A: A copy can be downloaded from ATA's website here.

2290 REMINDER FROM THE IRS



I wanted to let you know that all IRS offices will be closed due to furlough on Friday, August 30th  and on Monday September 2nd due to Labor Day holiday.
Please let the truckers in your association know so they can plan to renew their Forms 2290 in a timely fashion.  Due to our staff shortages, it would be helpful if they file electronically or by mail, rather than in person at our offices.

IR 2013-51  IRS-To-Be-Closed-May-24,-Four-Other-Days-Due-to-Budget-and-Sequester;-Filing-and-Payment-Deadlines-Unchanged
Form 2290 landing page