The EOBR Rule and Elogs

1. Attention Attendees: • Thank you for attending! • The presentation will start in a few minutes at 1:00 PM Central. • Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. • You will be muted during the event. • Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • The slides will be posted in 1-2 days and the recording in 7 days at http://www.jjkeller.com/nptcinfo The EOBR Rule and Elogs This webcast will cover ... NPTC Benchmark Data, Regulatory Overview, Wegman’s Transition to Elogs, and Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Tom Moore, Vice President of Education, NPTC David Barth, Transportation Safety & Compliance Manager, Wegmans Food Market

2. Dr. Gary Petty President & CEO National Private Truck Council

3. Introduction • NPTC Benchmark Data – Tom Moore • Regulatory Overview – Tom Bray • Wegman’s Transition to Elogs – David Barth • Housekeeping issues: • You will be muted during the event. • We invite you to ask questions. We will answer them throughout today’s webcast. Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below. • If you lose the program window and need to re-login be sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

4. Disclaimers • The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. • This is an introductory course and is intended to highlight critical safety and compliance topics. Time constraints limit our ability to go in depth. Gary Petty National Private Truck Council

5. Tom Moore, CTP Vice President of Education National Private Truck Council

6. Future: “Universal Mandate” Proposal • Proposed rule released February 1, 2011 • Use of electronic on-board recorders (EOBRs) for nearly all carriers • Systematic HOS oversight • Use and retention of supporting documents • Interstate motor carriers that are presently required to use paper logs would be required to install EOBRs 3 years after Final Rule released—affects approximately 500,000 motor carriers • Exemptions: • 100 air-mile radius drivers (CDL) • 150 air-mile radius drivers (non-CDL) • Provided the driver qualifies for the use of the exception 5 or more of the last 7 days! Tom MooreNational Private Truck Council

7. “Universal Mandate” Proposal Timeline • Comment period extended to 5/23/2011 • Next steps: • Comment review • Possible rework of proposal, withdrawal, or proposal left unchanged • If not withdrawn, published as final rule after review and rework completed • Installation of devices would be required within 3 years of effective date of Final Rule • Universal rule not likely to take effect until 2014 or 2015 Tom MooreNational Private Truck Council

8. No Change to EOBR Standards • This rulemaking would not change EOBR standards in §395.16 • As of June 4, 2012, new electronic logging system must be an EOBR (AOBRDs can no longer be installed) • This is due to present EOBR rules, not the universal mandate proposal Tom MooreNational Private Truck Council

9. NPTC Policy on EOBRs • Supports mandate for EOBRs for all interstate carriers, with 3 caveats: • Technology must be cost effective and accurate • Must protect data ownership and access for carriers and drivers • Must eliminate all supporting document requirements Tom MooreNational Private Truck Council

10. CSA Is Changing the Game:Most Common Driver Violations • Log Violation: Form and Manner (228,737 violations, Severity 2) • Log not current (158,329 violations, Severity 5) • Speeding (153,052 violations, Severity 1 to 10) • Not in possession of medical certificate (130,715 violations, Severity 1) • Non-English speaking driver (88,488 violations, Severity 4) • Over 14 hours (84,804 violations, Severity 7) • Failing to use seat belt (71,493 violations, Severity 7) • Over 11 hours (47,629 violations, Severity 7) • False log (45,898 violations, Severity 7) • Expired medical examiner's certificate (41,785 violations, Severity 1) • Failure to obey traffic control device (39,121 violations, Severity 5) • No log when required (36,459 violations, Severity 5) • Failure to retain previous seven days (32,444 violations, Severity 5) Tom MooreNational Private Truck Council

11. NPTC Benchmarking Survey:On-Board Technology Use Tom MooreNational Private Truck Council

12. NPTC Benchmarking Survey: OBC Technology Usage Tom MooreNational Private Truck Council

13. Roadmap Towards Successful Implementation • Build a relationship • Educate team members • Sell the benefits • Make it their idea • Target key employees • Support integration internally • Be patient Tom MooreNational Private Truck Council

14. Clear Communications • Know what you want and say so • Ask questions and LISTEN • Clarify assumptions • Provide the right tools Tom MooreNational Private Truck Council

15. Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc.

16. Two Separate Rulemakings • Final rule in place • “Remedial directive” regulations • Technical standards for “EOBRs” • “Universal mandate” proposal • Nearly all commercial vehicles • No change to technical requirements • Portions of “remedial directive” rule still valid • Supporting documents and “Hours of Service Management Control System” requirements Tom BrayJ. J. Keller & Associates, Inc.

17. Present: EOBR Final Rule • Issued April 5, 2010 • Effective June 4, 2010 • Compliance date: June 4, 2012 • 3 components: • New performance standards: • §395.16 • Appendix A to Part 395 • “Remedial directive” = Mandate to install • Incentives for voluntary adoption (§395.11) Tom BrayJ. J. Keller & Associates, Inc.

18. What is an EOBR? • Specifically defined in §395.16 • Capable of automatic and accurate recording of HOS • Device must be marked as compliant with §395.16 (“USDOT EOBR” on case) • Must be “integrally synchronized” with the CMV to determine driving • Driver must be identified Tom BrayJ. J. Keller & Associates, Inc.

19. What is an EOBR? • Specifically defined in §395.16 • Location capturedautomaticallyat every duty change and once every 60 minutes (minimum) when moving—not driver entered • Capture must include location, date, and time • Time must be accurate to within 10 minutes • Notifies driver of failure • Defaults to “on duty” after stationary for 5 minutes Tom BrayJ. J. Keller & Associates, Inc.

20. What is an EOBR? • Specifically defined in §395.16 • Changes and edits cannot replace original data and entries • Personal conveyance recorded BEFORE movement • Driver warned 30 minutes before hitting HOS limit • Driver certifies records as true and correct after review • Power-on self tests recorded Tom BrayJ. J. Keller & Associates, Inc.

21. What is an EOBR? • Specifically defined in §395.16 • Communicate via USB and wireless • “Flat file” format for download (no grid display requirement) • Accessible from outside the cab Tom BrayJ. J. Keller & Associates, Inc.

22. What is an EOBR? • Many/most devices today are NOT EOBRs (they are Automatic Onboard Recording Devices or AOBRDs)! • AOBRDs to be phased out as they and the vehicles they are in die after June 4, 2012 • Some EOBR rules are similar to the existing AOBRD rules (§395.15) • Driver must have instruction sheet • Driver must have spare logs (in case of failure) • Submitting records certifies correctness (do not need to “print a copy and sign it”) Tom BrayJ. J. Keller & Associates, Inc.

23. EOBR Remedial Directive • Remedial directive found in Part 385, Safety Fitness Procedures • EOBR remedial directive can result from audit after June 4, 2012 • Projected to impact 5,700 to 6,000 carriers and 129,000 drivers Tom BrayJ. J. Keller & Associates, Inc.

24. EOBR Remedial Directive • “Threshold rate violation” discovered during audit leads to: • Proposed “unfit” rating • EOBR remedial directive to get off of “Unfit” and continue to operate • Auditor looks for 10% violation rate (threshold rate violation) for any of 24 specific regulations (based on number of records checked) Tom BrayJ. J. Keller & Associates, Inc.

25. EOBR Remedial Directive • The 24 violations are found in the new Appendix to Part 385. Below are the three categories under which all violations will fall: • Over-hours violations • Falsifying or failing to complete logs • Failing to submit or maintain logs Tom BrayJ. J. Keller & Associates, Inc.

26. EOBR Remedial Directive • If subjected to remedial directive • Carrier must install EOBRs in all CMVs and submit proof of installation • Different submission, recordkeeping, and device failure requirements • No supporting documents “break” • Must comply with directive for 2 years Tom BrayJ. J. Keller & Associates, Inc.

27. Voluntary Use of EOBRs • Modified supporting documents requirements • No need to keep documents related to driving time • Different hours-of-service auditing and audit scoring procedures • Focused group selected first • If over 10 percent violation rate found, random group pulled • Random group used to calculate compliance rate, not focused group Tom BrayJ. J. Keller & Associates, Inc.

28. Supporting Documents • New policy, issued June 4, 2010 • No longer “supporting documents”: • driver call-in records; • international registration plan receipts; • international fuel tax agreement receipts; • trip permits; • cash advance receipts; and • driver fax reports (cover sheets). • Added: toll billing receipts Tom BrayJ. J. Keller & Associates, Inc.

29. Supporting Documents • Not needed by those using paper logs and certain comm. and/or tracking devices: • Gate record receipts; • Weigh/scale tickets; • Port of entry receipts; • Delivery receipts; • Toll receipts; • Agricultural inspection reports; • Over/short and damage reports; • Driver and vehicle examinationreports; Tom BrayJ. J. Keller & Associates, Inc. • Traffic citations; • Overweight/oversize reports and citations; • Carrier pros; • Credit card receipts; • Border Crossing Reports; • Customs declarations; and • Telephone billing statements.

30. Supporting Documents • Communication/tracking devices must: • communicate driver’s location 1x/hour • be integrally synchronized • be able to generate printed or electronic record showing position history (vehicle ID, date, time, location reference points,latitude and longitude) Tom BrayJ. J. Keller & Associates, Inc.

31. David Barth Transportation Safety & Compliance Manager Wegmans Food Market

32. Wegmans Fleet Operations • Fleet Stats: • 432 Drivers • 226 Tractors • 25 million miles in 2010 • Began as Rochester Fruit & Vegetable Company in 1916. Today, Wegmans has 12 Distribution Centers (NY & PA), 2 Manufacturing Centers (NY) and 77 Company Stores (NY, PA, NJ, VA, MD). David BarthWegmans

33. Why Switch to EOBR’s? • CSA • Improve Fatigue BASIC • Greater control and accuracy • Exception based reporting • Reduced operating cost • Auditing functions greatly improved David BarthWegmans

34. EOBRs Improve Fatigue BASIC Performance David BarthWegmans

35. Why? Because Most Fatigued Driving Violations are Clerical Error David BarthWegmans

36. Conversion Plan • Began with small team consisting of 15 drivers and several supervisors/managers • Classroom training with printed job aid • Use the system and identify problem areas • Open lines of communication • Driver roll out by start time • Used Steering Committee as driver trainers David BarthWegmans

37. Lessons Learned • Change of this magnitude is often difficult--allow enough time to fully support the drivers • Don’t underestimate the impact of computer illiteracy • Learning curve much greater for drivers operating wholly within 100 air miles • Supervisors need training in both back office and in cab system • Celebrate milestone events and make sure to share positive results • Include a driver coaching and feedback loop in your ongoing communication plan David BarthWegmans

38. Sortable Headings David BarthWegmans

39. Duty Status Easily Identified David BarthWegmans

40. Available Hours Easily Identified David BarthWegmans

41. 8-day Recap David BarthWegmans

42. Driver Log David BarthWegmans

43. ROI • Paper Logs $37,050 (Log Auditing) 5,200 (Log Books) $42,250 • Electronic Logs $3,900 (Log Auditing) 600 (Log Books) $4,500 • Other “returns”: • Reduced driver time spent on completing paperwork • Reduced driver time spent correcting errors • Reduced fines/violations • More accurate time accounting (15 to 1 min. increments) David BarthWegmans

44. Driver FAQ’s • Are EOBR’s legal and recognized by the DOT? • What do I do if the system goes down? • How much latitude do I have… +/- 15 minutes like paper logs? • When does driving start? • How can I print my logs? • Do my logs follow me if I change tractors? • What do I need to do for Daylight Savings Time? David BarthWegmans

45. Question & Answer Please submit questions to “Q&A” using the Q&A tool Tom BrayJ. J. Keller & Associates, Inc. Tom MooreNational Private Truck Council Gary Petty National Private Truck Council David BarthWegmans

46. Closing Remarks • Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo • PowerPoint slides up in 1-2 days • Recording up in 1 week • Topics for 2011: • July 13 – Fleet Excellence: Driver Wellness • October 12 – Fleet Excellence: Driver Discipline and Coaching Gary Petty National Private Truck Council

47. Common Questions • What is the difference between:   “electronic logging device”  –  EOBR  –  and AOBRD? Why does it matter? • Can “laptop logging programs” or “smart phone apps” be AOBRDs or EOBRs? • How do we know an EOBR or AOBRD is “compliant?”

48. Common Questions • The proposed EOBR & supporting documents rule identifies that a “HOS Management System” is needed.  What is that, and how is that different from the back end system for EOBRs now?

49. Common Questions • There are bills in the US Senate for an EOBR mandate, how do they differ from the FMCSA’s proposal?

50. Common Questions • What has been the experience of carriers when they transition to electronic logs in terms of: • Driver acceptance • Impact on driver productivity • CSA scores