Monday, January 21, 2013

Rules on Drug, Alcohol Clearinghouse, E-Logging Near Release, FMCSA Says

By Eric Miller, Staff Reporter
This story appears in the Jan. 21 print edition of Transport Topics.

WASHINGTON — Federal Motor Carrier Safety Administration officials said they are planning to release at least five new proposed or final rules in 2013, including a supplemental proposed electronic logging device rule and a proposed drug and alcohol clearinghouse rule by the end of March.

The ELD rule supplements the agency’s February 2011 proposed rule by addressing driver privacy issues raised by the U.S. Court of Appeals for the 7th Circuit decision vacating the April 2010 final rule. It will require nearly all interstate trucks to be equipped with logging devices.

The drug and alcohol clearinghouse rule would assist employer hiring practices by creating a central database for verified positive controlled substances and alcohol test results for commercial driver license holders and their refusals to submit to testing.

In a Jan. 15 session of the Transportation Research Board’s annual meeting here, John Drake, FMCSA’s director of governmental affairs, said the agency also had several other proposed or final rules planned:
• A proposed safety fitness determination rule, planned for late this year, that will detail the agency’s plans to use Compliance, Safety, Accountability program data to evaluate if motor carriers are fit to have operating authority.
• A final unified registration system rule that will combine four FMCSA legacy systems to better identify reincarnated carriers is expected in April.
• A medical examiner’s certification integration proposed rule that will require medical examiners to transmit data through FMCSA to state driver-licensing agencies is due in March.

In addition to the 2013 rulemakings, the 2012 transportation funding law, known as MAP-21, requires FMCSA to initiate or complete a total of 29 rulemakings over the next 27 months, Drake said.

Some of those legislative mandates were already in progress before the law was passed, Drake said.  “But if you take everything MAP-21 asks us to do and you put it on top of our existing workload, we will have to do 35 rulemakings in total,” Drake said.

By comparison, the law only requires the Federal Highway Administration to do 12 rulemakings, the Federal Transit Administration to do 12 rulemakings, the National Highway Transportation Safety Administration to do seven rulemakings and the Pipeline and Hazardous Materials Safety Administration to do two new rulemakings, Drake said.

MAP-21 also requires FMCSA to implement 34 programmatic changes and complete 15 reports or studies of various transportation issues.


Saturday, January 12, 2013

Tax Deal Keeps Bonus Depreciation "Cliff" Compromise Allows 50% Write-off of New Equipment



By Michele Fuetsch, Staff Reporter
This story appears in the Jan. 7 print edition of Transport Topics.
Lost amid the hoopla surrounding Congress' last-minute agreement on avoiding the economic "fiscal cliff" as the new year dawned was a provision in the deal that could help the trucking industry as it moves to replace aging equipment during 2013.
Under the legislation, which President Obama has signed, fleets will be able to continue to write off half of the cost of equipment purchases on their 2013 tax bills. The existing tax relief program expired on Dec. 31.
Relieved truck dealers said renewal of the tax write-offs - known as bonus depreciation - could help boost lagging truck sales.
"We're optimistic that it's going to help," said Dave Thompson, president of TEC Equipment Inc., of Portland, Ore. TEC sells a mix of heavy- and medium-duty trucks.
The old bonus depreciation program had expired Dec. 31, the same day the Senate passed the new bill. The House approved it the next day, Jan. 1.
President Obama signed the new tax measure on Jan. 3, which was the same day the 113th Congress was sworn in, officially making Rep. Bill Shuster (R-Pa.) the new chairman of the House Transportation and Infrastructure committee for the session that will end in January 2015.
Barbara Boxer (D-Calif.) remains chairwoman of the Senate Environment and Public Works Committee, while Jay Rockefeller (D-W.Va.) will stay at the helm of the Senate Commerce Committee.
The legislation, called the American Taxpayer Relief Act of 2012, raises taxes on the wealthiest Americans while keeping tax cuts for most households. It also renewed the $1-a-gallon tax credit for biodiesel producers.
"Under this law . . . companies will continue to see tax credits for the research that they do, the investments they make and the clean energy jobs that they create," President Obama said during a press conference.
Thompson said sales held steady the last two quarters at TEC dealerships in California, Nevada, Oregon and Washington but that "not everybody was prepared to buy" due to the economic uncertainty.
"Now they might," Thompson said. "That depreciation will be a bonus; 100% is better, but 50% is pretty nice."
TEC sells Volvo and Mack Trucks as well as Hino and Isuzu medium-duty trucks and GMC light-duty commercial trucks. It also has truck rental and leasing businesses, so, under the new tax bill, Thompson can also deduct 50% of the purchase price of new trucks he buys for that side of his firm.
Normally, depreciation write-offs are stretched over several tax years as a new asset deteriorates with age.
However, to help the manufacturing sector recover from the recession, a bonus depreciation program was created in 2010. Under it, in the 2011 tax year, equipment buyers could write off 100% of their purchase cost that year.
In 2012, the write-off dropped to 50% of the purchase cost and the program was to expire at the end of that year.
But keeping the 50% write-off is expected to help spur truck sales this year because the tax break "takes some of the sting" out of the higher cost of more fuel-efficient trucks, said Richard Witcher, chairman of American Truck Dealers and CEO of Minuteman Trucks, a light- and medium-duty truck dealership in Walpole, Mass.
"In the last 10 years, we've added, without [counting] federal excise tax, as much as $30,000 to the price of a truck for emissions controls," Witcher said.
Witcher also said increased truck sales in 2013 will boost the economy.
"With every truck that somebody buys, there's a job at a factory someplace [and] there's a job supporting the job at the factory," Witcher said.
At their dealership and service center, bonus depreciation has also allowed Witcher and his brother, Bill, to write off capital investments, such as a $1 million truck-painting facility.
For biodiesel producers, continuation of the $1-a-gallon tax credit is a lifeline. The tax credit helps keep the higher cost of biodiesel fuel competitive with regular diesel, backers of the alternative fuel have said.
"This is not an abstract issue," Anne Steckel, vice president of federal affairs at the National Biodiesel Board, said in a statement. "In the coming months, because of this decision, we'll begin to see real economic impacts with companies expanding production and hiring new employees."
The tax bill makes permanent the income tax cuts approved during the Bush presidency for households with incomes of less than $450,000.
Had Congress not acted, the Bush-era tax cuts would have expired this month for all income levels. At the same time, a series of automatic spending cuts were scheduled to have occurred this month as a result of demands that the federal deficit be reduced.
Hence, the term "fiscal cliff" became a metaphor for what some economists said would be a severe double blow to the economy as both personal and government spending declined.
Although Congress and the president were able to forge a deal on the tax issues, they could not agree on spending reductions, so they put off action on deficit reduction for at least two months.

Thursday, January 10, 2013

CSA Update: FMCSA Releases Safety Management Cycle Resources



The Federal Motor Carrier Safety Administration (FMCSA) has released new materials to assist motor carriers in identifying and addressing their safety and compliance issues.  These materials include the Safety Management Cycle (SMC), an important tool that Agency Safety Investigators use during on-site investigations.  The SMC is able to identify safety problems, their root causes, and safety solutions. 

To help familiarize carriers with how to use the SMC and its six Safety Management Processes, FMCSA developed a factsheet that explains how to use these materials to improve safety practices.  FMCSA has also provided a supplemental case study that shows carriers how to use the SMC in the long-term.

Additionally, FMCSA is releasing eight SMC job aids which were originally created for enforcement personnel.  There is one job aid for each Behavior Analysis and Safety Improvement Category (BASIC).  The Vehicle Maintenance BASIC has two SMCs: “Inspection-Repair-Maintenance” and “Cargo-Related.”
Check out these new SMC resources on our CSA web site’s Resources page.

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

Wednesday, January 9, 2013

How to Effectively Use PSP in Your Fleet

What is PSP?
In 2010 the Federal Motor Carrier Safety Administration (FMCSA) launched the Pre-Employment Screening Program (PSP).  
 PSP is available online at http://www.psp.fmcsa.dot.gov/Pages/default.aspx. 
 Through PSP, enrolled account holders have the ability to search for drivers’ safety histories from the federal Motor Carrier Management Information System (MCMIS) database. A PSP record includes a driver’s: 
  1. Five year crash history
  2. Three year roadside inspection history
  3. Violations noted during roadside inspections
  4. The name of the motor carrier for whom the driver was operating for at the time of an inspection or crash
PSP is the only service that provides a driver’s complete FMCSA history. The PSP record allows you to get a clear snapshot of a driver’s past behaviors and habits - important predictors of a driver’s future performance. 
The driver’s PSP record may only be accessed during the hiring process.  Once a driver is employed, the employer may not request that driver’s PSP record for any reason.  To protect a driver’s privacy, a driver must provide their consent using FMCSA’s PSP consent form before the PSP record is accessed.
FMCSA takes drivers’ privacy seriously.  With that in mind, FMCSA has implemented PSP audits.  On a regular basis, PSP account holders are randomly selected for a PSP audit.  The audit entails providing driver consent forms that are requested at random.  The consent form demonstrates that the driver has permitted a company to request their PSP record once.  Review the driver consent compliance suggestions to learn more and adopt the established best practices.
Who may use PSP?
Inter- and intrastate motor carriers may use PSP to review a potential driver’s safety history.  Drivers may also access their own PSP record at any time. 
In early October, FMCSA announced an expansion to the PSP program.  Now, any company that is directly involved in the hiring of commercial drivers may access PSP records.  This includes driver screening companies and similar entities working on behalf of a driver or a carrier to access PSP records (with the driver’s consent).
How is PSP data collected?
Enforcement officials collect data during roadside inspections and crashes. This data is added to the FMCSA MCMIS database. The information is different than the driver’s state motor vehicle record because PSP includes violations and other details about the crash or inspection - not just state convictions.  PSP offers motor carriers a more comprehensive picture of a potential employee’s past performance and work history.
On a monthly basis, the PSP database is populated with the latest MCMIS snapshot.  The data snapshot includes the most recent data updates for drivers’ crash and inspection histories. 
Why use PSP?
Thousands of motor carriers are using PSP to ensure they are only hiring the safest drivers.  Motor carriers use PSP for a variety of reasons.  Some motor carriers use the PSP data to develop a personalized training plan for each driver that addresses the areas that demand extra attention.  A personalized training approach ensures that a driver’s time is well spent and keeps training costs to an effective minimum.  Carriers also check the PSP report to see what carrier the driver was operating for at the time of a crash or inspection.  Prospective employers can cross reference the carrier names that appear on the PSP report with the list of previous employers supplied by the driver.
The PSP report is different than a state motor vehicle record.  Using the reports together shows a clear picture of a driver’s activities.  For more details review the PSP and MVR comparison.
How do I use PSP?
PSP is entirely web-based, available 24 hours a day, and returns drivers’ PSP records instantly.
First, a company must enroll in the program to receive PSP access credentials. To start,  download the enrollment packet. The enrollment process typically takes two to three business days.  Once enrolled, simply search for a driver’s record by entering the driver’s name, date of birth, license number(s) and license state(s). PSP records are returned instantly in PDF format, and can be saved or printed for the driver’s qualification file.  In addition to the web site, the PSP application is available via iTunes for the iPhone and iPad.  The PSP app is free and makes it easier to review drivers’ histories on the go. 
There is a fee to use PSP.  Most PSP account holders pay an annual subscription fee of $100.  Smaller carriers, with fewer than 100 power units, qualify for a discounted subscription fee of $25. Each PSP record transaction costs $10. A single monthly invoice is provided to carriers for convenience. 
Information on enrollment and questions about the PSP service can be found on the PSP FAQ page.  The customer support team is ready to answer questions. Simply email PSPhelp@egov.comor call toll-free  1-877-642-9499 between 8 AM and 6 PM ET, Monday - Friday.  You can access PSP updates by subscribing to the PSP Twitter feed by following @PSP_help.
It’s important that motor carriers know what information to expect in the PSP record, how to evaluate that information, and that the carrier must obtain the driver’s consent before requesting his or her PSP record.
Creating and maintaining a safe and productive fleet starts before a driver is hired.  We can help you navigate PSP, including understanding how the PSP record can best fit into your individual hiring practices.