Transcript The Health & Personal Care Logistics Conference Fall

THE HEALTH & PERSONAL CARE LOGISTICS CONFERENCE
SPRING MEETING 2015
WASHINGTON REPORT
KARYN A. BOOTH
[email protected]
ATLANTA
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CINCINNATI
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CLEVELAND
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COLUMBUS
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DAYTON
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NEW YORK
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WASHINGTON, D.C.
PRESENTATION TOPICS
▪ Legislative and Regulatory Developments
– New Congress/Transportation Committees’
Agendas
– Trucking Updates
– Ocean Transportation
– Hazmat / Air Transportation
– Rail Transportation
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NEW 114th CONGRESS
▪ Senate Commerce, Science and Transp. Committee
– Chairman Thune (R-SD); Ranking Member Nelson (D-FL)
– Hearings on freight rail network challenges; achieving a reliable
and efficient surface transportation network; and US port delays,
congestion and intermodal infrastructure
– Surface Transportation Reauthorization and FMCSA Reforms
– US DOT and US Commerce Dept. budgets
– STB Reauthorization
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NEW 114th CONGRESS
▪ House Transp. & Infrastructure Committee
– Chairman Shuster (R-PA); Ranking Member DeFazio (D-OR)
– Amtrak reauthorization (passed the entire House)
– Water Resources Reform & Development Act (passed & signed
into law)
– Surface Transportation Reauthorization (hearing held)
– FAA Reauthorization (hearing held)
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TRUCKING UPDATES
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HIGHWAY TRUST FUND
▪ Highway Trust Fund is primary source of revenue for
highway infrastructure projects
– funded by gas tax of 18.4 cents; but this revenue source has
failed to cover federal project spending needs
▪ Last Congress passed a short-term bill on July 31, 2014
providing funding of $11 billion through May 2015
through general revenue sources
▪ Senate hearing held on March 4; House hearings held
on Feb. 11 and March 17
▪ No bills introduced to date
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HIGHWAY TRUST FUND
▪ Obama Administration 2016 DOT Budget
proposes a 6-year transportation funding bill of
$478 billion
▪ Disagreements between Rs and Ds over
spending and funding sources expected
▪ No consensus to increase the gas tax
▪ Another short-term fix is possible
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MOTOR CARRIER NATIONAL HIRING
STANDARD
▪ H.R. 1120 introduced in Feb. 2015 by Rep. Duncan (TN)
– before hiring a motor carrier, the shipper/receiver, broker or
forwarder must ensure that the carrier is:
▪ properly registered with FMCSA
▪ has procured the minimum levels of insurance; and
▪ does not have an “unsatisfactory” safety rating
– prohibits liability under state law for negligent selection of a
motor carrier
– intended to create an industry best practice for hiring safe motor
carriers and to address concerns with CSA data reliability
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HOURS OF SERVICE
▪ In Dec. 2014, Congress passed an Omnibus
Appropriations bill that address the driver HOS rules
– suspended the requirement that the “restart rule” must contain
two consecutive off-duty periods between 1-5:00 AM
– suspended the requirement that the restart rule can be used only
once during a 7-day period
– reverts back to the 34-restart rule previously in effect
▪ Requires a DOT study of fatigue impacts (expected in
summer 2015)
▪ Expires at the end of FY 2015 (Sept. 30, 2015)
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FMCSA PROCEEDINGS
▪ Driver Coercion NPRM: In May 2014, FMCSA
proposed a rule permitting a CMV driver to file a
complaint alleging that it was coerced into violating
safety regulations by a carrier, shipper, receiver or
transportation intermediary
– proceeding mandated under MAP-21
– comments filed in Aug. 2014
– est. publication date is Sept. 2015
– “coercion” means threatening the driver with loss of work or
other opportunities if the driver refuses to carry a load under
circumstances in which the party “knew or should have known”
safety violations would result
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FMCSA PROCEEDINGS
▪ ELD Supplemental NPRM: Issued by FMCSA in March
2014 to establish minimum performance and design
standards for “electronic logging devices” (ELD) to
improve HOS compliance
– supersedes the Feb. 2011 NPRM; and 7th Circuit COA decision
vacating the agency’s 2010 final rule
– adds rules to address driver harassment resulting from ELDs
– comments were filed in March 2014
– est. publication date is Sept. 2015
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FMCSA PROCEEDINGS
▪ Motor Carrier Insurance ANPRM: FMCSA is
considering whether to increase minimum insurance
levels for motor carriers (e.g. personal injury/property
damage) and to add requirements for brokers/forwarders
– comments filed in Feb. 2015
▪ Carrier Safety Fitness Determination: NPRM
anticipated in 2nd Qtr. 2015
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OCEAN UPDATES
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ILWU/PMA CONTRACT
▪ Resolution of a new labor contract for the West Coast
Ports announced on Feb. 20, 2015
– contract covers 20,000 long-shore workers
– prior agreement expired on July 1, 2014
– 10-month negotiation
– involvement of Secretary of Labor, Perez
– both PMA and ILWU must ratify the deal
▪ Major congestion and economic damage caused by the
drawn-out negotiations
– discussion of legal/process changes
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FMC REGULATORY AGENDA
▪ Port congestion
– 2014 hearings
– development of staff recommendations (on-going)
▪ Revision to OTI Rules (on-going)
▪ Review of MTO Rules (2015)
▪ Review of Carrier Tariff Rules (2016)
▪ Possible recommendations to service contract/NSA rules
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HAZARDOUS MATERIALS/
AIR UPDATE
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PHMSA LITHIUM ION BATTERIES RULE
▪ In July 2014, PHMSA issued a Final Rule revising its
regulations for lithium cell and battery shipments
▪ The Final Rule harmonizes the HMR hazard
communication and packaging requirements with the
ICAO and IMDG Code international standards
▪ Maintains the current prohibition against transportation of
lithium metal cells or batteries aboard passenger aircraft
when not packaged or contained in equipment
▪ On Feb. 20, 2015, PHMSA extended the compliance
date from Feb. 6 to Aug. 7 for all modes, except air
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RAIL UPDATES
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RAIL UPDATES
▪ Railroads continue to be highly profitable
▪ Struggling with service performance since
winter 2013
▪ High volumes of Bakken crude oil are
affecting movement of other commodities
▪ Safety regulation of crude oil has been a
DOT priority following derailments (e.g.
tank car rulemaking)
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RAIL UPDATES
▪ Bi-partisan bill introduced by Senate Commerce
Chairman Thune & Ranking Member Nelson
– S.808: STB Reauthorization Act of 2015 (March 19)
▪ Bill focuses on STB reform, arbitration of
disputes, and adds STB investigative powers
▪ Next steps: Mark up by Senate Commerce
Committee; Consideration by House T&I Committee
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STB PROCEEDINGS
▪ Several major proceedings pending at the STB
– EP 711: NITL Petition for rulemaking to
establish new competitive switching rules
– EP 722: Proceeding to examine railroad
revenue adequacy determinations and
possible rate constraint
– EP 724: Rail service metrics
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QUESTIONS ?
Thank You!
Karyn A. Booth
[email protected]
202.263.4108
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