J. J. Keller & Associates, Inc.

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1 J. J. Keller & Associates, Inc. Thomas Bray Hours of Service and Electronic Logs: Where We Are and Where We're Going

2 Hours-of-Service History 1936/1938: Original HOS rules, 12 hours of duty (driving and/or on duty), 9 hour break, 60/ : First changes,10 hour driving added and break changed to 8 hours 1962: 15 hour on-duty limit added 2003/2004: 11, 14, 60/70 with restart for property carriers 2003: New rules challenged by safety groups and ordered vacated 2005: Rules reissued, with changes to split sleeper 2006: New, new rules challenged in court by safety groups, ordered vacated 2008: Rules reissued, with nearly no changes 2009: New, new, new rules challenged in court by safety groups, settlement to change rules reached in : Changes result of the challenge/settlement published (which went into full effect in 2012/2013) 2012: Industry challenges new rules in court 2013: Court rules in favor of FMCSA, rules stand as is with exception of 100 and 150 air-mile drivers exempted from 30-minute break

3 Hours-of-Service Regulations Where we are Log book basically unchanged since 1960 s July 2013 changes in full effect 8, 11, 14, 60/70 with restricted restart all in place and being enforced 8-hour/30-minute break requirement now third most common HOS violation written on the road No jump in 60/70 hour violations 10, 15, 60/70 with no restart still in place for passengercarriers Several exemption petitions are in play Split break rules 30-minute break

4 Hours-of-Service Regulations Most recent changes Electronic log allowed, if displays all information and driver can print on request Livestock exception to 8-hour/30-minute break requirement Exemption to 30-minute break requirement for short-haul driver

5 Hours-of-Service Regulations Where we are going According to FMCSA no where (no changes in foreseeable future, other than occasional exemptions) According to courts no where, they ruled already According to Congress we ll see Committee action in both Senate and House has led no where to date Passenger carriers FMCSA recently had listening sessions about rules Still an open item

6 Question for the Group How long has automatic electronic logging been around?

7 ELD History 1985: First AOBRDs authorized 1988: AOBRDs written into regulations (present ) 2010: EOBR bad apple rule placed in regulations (to take full effect June 2012) 2011 (Feb.): EOBR universal mandate proposed 2011 (Aug.): EOBR bad apple rule struck down by court 2014: Supplemental universal mandate proposal released ( ELD proposal)

8 Where We Are Automatic Onboard Recording Devices (AOBRDs)

9 AOBRDs Simply take the place of the driver s paper log Capable of automatically and accurately recording of HOS (specifically driving time) Much more accurate than paper logs Does not affect limits and exceptions Eliminates most common violations (log not current, form and manner) and reduces driving violations

10 What s an AOBRDs? Integrally synchronized with the CMV Displays information required in , NOT Not required to print Downloadable/saveable data file retained for six months in back office

11 What s an AOBRDs? A system that produces a Record of Duty Status based on engine/movement data and driver entries Generally Three Components: AOBRD connected to engine Driver Display/Interface Back-Office

12 What s NOT an AOBRDs? Many devices today are NOT AOBRDs due to not being connected to vehicle! Laptop logs Smartphones PDAs/Tablets/iPads/iPods Regulated as paper logs Must display all of information Officer can ask for printed copy Must be electronically or physically signed

13 Where We re Going Electronic Logging Devices (ELDs)

14 ELD Proposal Covers ELD use, ELD technical standards, and retention of supporting documents Would require all driver that complete logs to begin using ELDs two years after final rule effective Only exceptions are 100 and 150 air-mile drivers that only completed logs 8 days (or less) out of last 30 days ELD would need to be on FMCSA s ELD registry (yet to be created)

15 No exceptions for: ELD Proposal Small fleets Older vehicles Small vehicles (non-cdl vehicles) Passenger carriers Driveaway/towaway drivers Leased or rented vehicles Non-trucking motor carriers

16 ELD Proposal System must automatically capture data set: At startup and shutdown At each change of duty status Once per hour wen vehicle is operating At start and end of personal use or yard time

17 ELD Proposal Data set must include: Date and time Location (accurate to one mile) Engine hours and vehicle mileage Driver logged in Vehicle identification Authorized carrier identification Location to be accurate to 10 miles during personal use Record must be submitted to carrier within 8 days

18 ELD Proposal Technical specifications System must include unique accounts for all drivers and support personnel Driver account must include driver s license information All users must have user name and password associated with their account System must include unassigned driver account All unassigned driving time must either be assigned or accounted for

19 ELD Proposal Technical specifications Must be getting engine, speed, and distance data from the vehicle Portable driver devices must be mounted within driver s reach Must use standard data output format System must be able to report out to officers using multiple formats Carrier has to be able to make records available to auditors and have a backup copy

20 ELD Proposal Display must show: Driver s name and ELD user name Miles driven and engine hours Malfunction and diagnostic status indicators Record for the driver including: Change of duty statuses, total driving miles for each driving period, and starting and ending for personal use and yard driving events A summary of the driver s total on-duty and driving time for the current day and previous seven days A grid graph view of the current day and the previous 7 days

21 ELD Proposal Driver interaction Driver will have the normal four lines (driving time automatically determined) Driver must manually enter some information Driver entries to be made when vehicle is stopped Driver must notify carrier within 24 hours of system failure

22 ELD Proposal Driver prompted for entry if: Log in if vehicle moves with no driver Duty status if stopped for five minutes (system to default to on duty if no driver entry) Location if no position fix at duty change Driver does NOT have to be prompted when approaching limit System must have mute to be used when driver is in the sleeper

23 ELD Proposal Driver interaction Driver must certify log when submitting Driver must re-certify if any changes are made to records All annotations, comments, and changes must be retained, along with original Driver MUST be able to get copies of all records for past 6 months from system or carrier

24 ELD Proposal Driver harassment protections Reinforcing of no carrier shall require a driver that is ill or fatigued to drive regulations Updated complaint procedures and fines related to ELDs Driver s right to all data and records Limits on location accuracy

25 ELD Proposal Timeline based on proposal Now Comment period on proposal closed, FMCSA reviewing and considering comments Late 2014 or 2015 Final rule published and becomes effective. Two year implementation period begins Late 2016 or 2017 ELDs required Late 2018 or 2019 AOBRDs that cannot be updated to ELDs that were in use when ELDs became mandatory would have to be removed from service Final Rule Published ELDs Required Un-updateable AOBRDs Eliminated

26 How To Get There Change Management Prepare, Implement, Reinforce

27 How to Get There Transitioning from paper to electronic takes time and effort Use disciplined change management approach Serious consequences if not done well Fast and messy leads to problems Will NOT result in instant compliance Be prepared to deal with data Good news: Lots of data to improvement management Bad news: Lots of data to sort through Study current state and future state Will there be a revenue drop? If so, why? Determine hard and soft ROI Be prepared for resistance from drivers and supervisors

28 First step: Preparation SECURE UPPER MANAGEMENT SUPPORT (all upper managers, not just some, or one) Determine needs and wants What is your ideal future state Consider team or committee approach Start vendor/system search Initiate regular communications on the progress Retrain drivers and supervisors on HOS rules and limits Plan for personnel changes

29 First step: Preparation Develop policies and procedures Data uses Disciplinary policy (drivers and supervisors) Consider personnel redeployment and training Do not underestimate the amount of training that will be necessary Develop hardware and software installation plans

30 Second Step: The Changeover Finalize detailed plans for: Resource allocation Training of drivers, supervisors, and support personnel Disciplinary actions System setting Installation Finalize policies and procedures Continue retrain drivers and supervisors on HOS rules and limits Implement ELD system training of drivers, supervisors, and support personnel

31 Second Step: The Changeover Begin with beta test group Small group of good drivers and supervisors Verify data usage, settings, policies, and training This group will be mentors during following steps Expand implementation Roll out by location or group, depending on where the control is Save problem drivers and supervisors for last batch Complete implementation Be prepared for resistance at this point Continue communications!

32 Step Three: Reinforce Be prepared for saboteurs Monitor and track The system The data and reports Error/edit rates Violation rates Calls for assistance Follow-up training when needed (counsel and correct, first) Celebrate and build on successes

33 Final Considerations Be prepared for the cheaters Sharing log ins Clue: A non-working driver turning miles, working driver missing miles Drivers/supervisors using Ghost Driver accounts Clue: Maintenance and/or other non-existent driver accounts doing thousands of miles Not logging in or logging out while working/driving Clue: Unassigned miles account doing thousands of miles Supervisor assistance (such as changing on-duty to off-duty) Clue: Excessive edits System tampering Clue: Diagnostic report from unit (driver) and user footprints (supervisor) surrounding a system or data failure Logging off duty for everything Clue: Very little or no on-duty time in the system

34 Final considerations Carriers that are forced to (or choose to) quickly implement have poor success records High bankruptcy/failure rate Systemic problems or cause/effect? Tabling it after starting implementation and coming back to it later creates problems We killed it last time They re not serious this time either System will very quickly pointing out problems You will need to be prepared to handle them quickly

35 Think of one later: Questions?

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