<8.2 Other Agency Actions Improving Enforcement

The Agency is poised to propose and implement several other rules and programs that it anticipates will improve safety before this EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule would become effective. The most notable of them with regards to HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) enforcement is the Comprehensive Safety Analysis (CSA), under which the Agency will propose to perform targeted interventions on carriers’ specific problem areas rather than rely solely on comprehensive compliance reviews. One of those specific problem areas is driver fatigue/HOS compliance. This will allow the Agency to spread its enforcement resources over more carriers and will lead to more carriers facing enforcement actions for poor HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance.

In the main body of the analysis, the Agency did not attempt to forecast additional safety and compliance improvements that would precede the effective date of this rule. It did find that roadside inspection HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) OOS violations have declined to about 84 percent of their 2004 levels, and in this sensitivity analysis FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) assumes that by the first compliance date, violations will drop again to 84 percent of their current levels, for a cumulative effect of about 70 percent (84%×84% ~ 70%) of their 2004 levels. The Agency also observed that the average number of annual fatal crashes over 2007 and 2008 was 93 percent of the amount calculated for the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) RIA Regulatory Impact Analysis analysis, and assumes that by the first compliance date fatal crashes will have dropped to 93 percent of their current levels, for a cumulative effect of about 85 percent (93%×93%~ 85%) of the levels estimated in the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) baseline, a 15 percent (100%-85%) reduction the attainable safety benefit pool. The results of this analysis are presented in table 22. Net benefits are negative for option 3 with the current HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules as a baseline.

Table 22: Summary of All Options and Baselines with Improved Enforcement

<8.3  Alternate Values of Statistical Life

The Agency calculated safety benefits and net benefits using a lower value of statistical life (VSL), $3.3 million, and a higher VSL, $8.7 million, as compared to the primary estimate of $6.0 million (all VSL figures in year 2008 dollars). The results of these alternative analyses are presented in tables 23 and 24 below. With a lower VSL, option 3 has negative net benefits under both implementation plans, and option 2 has negative net benefits with the five-year schedule only when the current HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules are the baseline. All options have positive net benefits when an $8.7 million VSL is used.

Table 23: Summary of All Options and Baselines with $3.3 Million VSL

Table 24: Summary of All Options and Baselines with $8.7 Million VSL

9. Regulatory Flexibility Analysis

9.1 Introduction

The Regulatory Flexibility Act of 1980, Pub. L. 96-354, 94 Stat. 1164 (5 U.S.C. 601-612) requires Federal agencies to consider the effects of the regulatory action on small business and other small entities and to minimize any significant economic impact. The term “small entities” comprises small businesses and not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. Accordingly, DOT Department of Transportation policy requires an analysis of the impact of all regulations on small entities, and mandates that agencies strive to lessen any adverse effects on these businesses.

A Regulatory Flexibility Analysis must contain the following:

A description of the reasons for the action by the Agency.

A succinct statement of the objectives of, and legal basis for, the rule.

A description — and, where feasible, an estimate of the number — of small entities to which the rule applies.

A description of the reporting, recordkeeping, and other compliance requirements of the rule, including an estimate of the classes of small entities that will be subject to the requirement and the types of professional skills necessary for preparation of the report or record.

Identification, to the extent practicable, of all relevant Federal rules that may duplicate, overlap, or conflict with the rule.

A description of any significant alternatives to the proposed rule which accomplish the stated objectives of applicable statutes and which minimize any significant economic impact of the proposed rule on small entities

9.2 Description of Reasons for Action by the Agency.

FMCSA proposes to amend Part 395 of the FMCSRs Federal Motor Carrier Safety Regulations to require the installation and use of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) for most CMV Commercial Motor Vechicles operations. CMV Commercial Motor Vechicles drivers are currently required to record their HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) (driving time, on- and off-duty time) in paper logbooks, although some carriers have voluntarily adopted an earlier standard for HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) recording using devices known as AOBRDs. On April 5, 2010, FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) published a rule mandating EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) use for a two-year period by commercial motor carriers that fall under the Remedial Directive defined in Subpart J of Part 385 (75 FR 17208). Remedial Directive carriers are required to install EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) in each CMV Commercial Motor Vechicles regardless of the date of manufacture of the vehicle.³³ These carriers will have been found during a single compliance review (CR) to have violation rates greater than or equal to 10% for the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules listed under the Appendix C of Part 385 of the FMCSRs. Although, after the compliance date of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) I, EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) will already be required for those carriers with the poorest compliance records with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) regulations, the Agency believes that the benefits of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) use by the remaining majority of the motor carrier A person providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees industry will exceed the costs associated with these devices.

The HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) regulations are designed to ensure that driving time, one of the principal the amount that is borrowed, not counting the cost of interest or fees ‘‘responsibilities imposed on the operators of commercial motor vehicles,’’ does ‘‘not impair their ability to operate the vehicles safely’’ (49 U.S.C. 31136(a)(2)). Driver compliance with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules helps ensure that ‘‘the physical condition of commercial motor vehicle Any vehicle owned or used by a business drivers is adequate to enable them to operate the vehicles safely’’ (49 U.S.C. 31136(a)(3)). FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) believes that properly designed, used, and maintained EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) would enable motor carriers to track their drivers’ on-duty driving hours accurately, thus preventing regulatory violations or excessive driver fatigue.

Improved HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance will prevent commercial vehicle operators from driving for long periods without opportunities to obtain adequate sleep. Sufficient sleep is necessary to ensure that a driver is alert behind the wheel and able to respond appropriately to changes in the driving environment.

Substantial paperwork and recordkeeping burdens are also associated with HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules, including time spent by drivers filling out and submitting paper RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) and time spent by motor carrier A person providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees staff reviewing, filing, and maintaining these RODS. EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) will eliminate all of the clerical tasks associated with the RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) and significantly reduce the time drivers spend recording their HOS. These paperwork reductions offset most of the costs of the devices.

9.3 Objectives and Legal Basis

The Agency is issuing an NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule proposing to mandate the use of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) by the majority of CMV Commercial Motor Vechicles operations. The objective is to reduce the number of crashes caused by driver fatigue that could have been avoided had the driver complied with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules. The legal basis for this proposed rule is described in the NPRM.

9.4 Small Entities Affected

Under criteria established by the Small Business Administration (SBA), firms with annual revenues of less than $25.5 million are considered small for all North American Industrial Classification System (NAICSNorth American Industry Classification System) codes falling under the truck transportation sub-sector (NAICS 484) or the bus transportation sub-sector (NAICS 485). Many motor carriers, however, are private carriers that transport goods or passengers for parent companies who are primarily not engaged in truck transportation, for example, airlines, railroads, retail stores, and landscaping or home contracting businesses with SBA size thresholds associated with their industries that are different from those used for truck or bus transportation.

FMCSA does not collect revenue data for most carriers nor can it identify carrier-by-carrier which industry sub-sectors each firm belongs to. Carriers do, however, report the number of power units they operate in the U.S. on Form MCS-150. With regards to truck power units, the Agency determined in the 2003 Hours of Service Rulemaking RIA³⁴ that a power unit produces about $172,000 in revenue annually (adjusted for inflation).³⁵ According to the SBA, motor carriers with annual gross revenue of $25.5 million are considered small businesses.³⁶ This equates to about 150 power units (25,500,000/172,000). FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) believes that this 150 power unit figure would be applicable to private carriers as well: Because the sizes of the fleets they are able to sustain are indicative of the overall size of their operations, large CMV Commercial Motor Vechicles fleets can generally only be managed by large firms. There is a risk, however, of overstating the number of small businesses because the operations of some large non-truck or bus firms may require only a small number of CMVs. The Agency has identified about 482,000 motor carriers that operate 150 or fewer power units, about 99% of property carriers.

For passenger carriers, the Agency conducted a preliminary analysis to estimate the average number of power units (PUs) for a small entity earning $7 million annually, based on an assumption that a passenger carrying CMV Commercial Motor Vechicles generates annual revenues of $150,000. This estimate compares reasonably to the estimated average annual revenue per power unit for the trucking industry ($172,000). A lower estimate was used because buses generally do not accumulate as many vehicle miles traveled (VMT) per power units as trucks³⁷, and it is assumed therefore that they would generate less revenue on average. The analysis concluded that passenger carriers with 47 PUs or fewer ($7,000,000 divided by $150,000/PU = 46.7 PU) would be considered small entities. The Agency examined its registration data and found that 96% of, or just over 19,000, interstate passenger carriers have 47 PUs or fewer.

The Agency seeks comment on other ways to minimize the impact on small entities. FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) is often contacted with public inquiries about EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) devices, and will continue to address these questions. Following the pattern of previous rulemakings, the Agency will conduct outreach once a final rule is issued. The Agency notes that all registered motor carriers are subject to this rule. This includes small non-profits. This does not include small governmental jurisdictions.

9.5 Reporting, Recordkeeping, and Other Compliance Requirements

FMCSA believes that implementation of the proposed rule would not require additional reporting, recordkeeping, or other paperwork-related compliance requirements beyond what are already required in the existing regulations. In fact, the proposed rule is estimated to result in paperwork savings, particularly from the elimination of paper RODS. Furthermore, the carriers would experience compensatory time-saving or administrative efficiencies as a result of using EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) records in place of paper RODS. The level of savings would vary with the size of the carrier implementing the systems (larger carriers generally experience greater savings).

Under current regulations, most CMV Commercial Motor Vechicles drivers are required to fill out RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) for every 24-hour period. The remaining population of CMV Commercial Motor Vechicles drivers is required to fill out time cards at their workplace (reporting locationThe driver’s workplace. The term generally refers to drivers who start from and return to the same location on a daily basis.) . Motor carriers People providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees must retain the RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) (or timecards, if used) for 6 months. FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) estimates the annual recordkeeping cost savings from this proposed rule of about $688 per driver. This is comprised of $486 for a reduction in time drivers spend completing paper RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) and $56 submitting those RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) to their employers; $116 for motor carrier A person providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees clerical staff to handle and file the RODS; and $30 for elimination of expenditures on blank paper RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) for drivers. Two of the options discussed in the NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule extend the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) mandate to carrier operations that are exempt from the RODS. Paperwork savings will not accrue to drivers engaged in these operations.

Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et seq.), Federal agencies must obtain approval from the OMB Office of Management and Budget for each collection of information they conduct, sponsor, or require through regulations. This NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule proposes regulatory changes to several parts of the FMCSRs, but only those applicable to part 395, “Hours of Service of Drivers,” would alter or impose information collection requirements. The information collection requirements of this NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule would affect OMB Office of Management and Budget Control Number 2126-0001, which is currently approved through August 31, 2011, at 181,270,000 burden hours.

OMB requires agencies to provide a specific, objective estimate of the burden hours imposed by their information collection requirements (5 CFR Code of Federal Regulations 1320.8(a)(4)). This NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule proposes a compliance date 3 years after the date of publication of the final rule to allow regulated entities a reasonable opportunity to satisfy its requirements. The PRA limits estimates of paperwork burdens to a 3-year period; during the initial 3 years following publication of a final rule in this matter, the requirements of part 395, including information collection requirements, would remain unchanged. Consequently, the Agency estimates the paperwork burden of this proposal to be 181,270,000 burden hours, as currently approved by OMB. At an appropriate time, the Agency will provide notice and request public comment on the paperwork burden of part 395 after the initial 3-year period of this rule; at the present time, the Agency believes that the regulatory changes proposed by this NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule will ultimately affect a net reduction in the paperwork burden of OMB Office of Management and Budget Control Number 2126-0001.

9.6 Federal Rules that May Duplicate, Overlap, or Conflict with the Rule

The Agency did not identify any Federal rules that duplicate, overlap, or conflict with the rule.

9.7 Steps to Minimize Adverse Economic Impacts on Small Entities

Of the population of motor carriers that FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) regulates, 99% are considered small entities under the SBA’s definition.³⁸ Because small businesses are such a large part of the demographic the Agency regulates, providing exemptions to small business to permit noncompliance with safety regulations is not feasible and not consistent with good public policy. The safe operation of CMVs Commercial Motor Vehicles (vehicles owned or used by a business) on the Nation’s highways depends on compliance with all of FMCSA’s safety regulations. Accordingly, the Agency will not allow any motor carriers to be exempt from coverage of the proposed rule based solely on a status as a small entity.

FMCSA analyzed an alternative 5-year implementation schedule that would have provided a longer implementation period for small businesses. However, the estimated cost of compliance for motor carriers, including small businesses, did not decrease from the 3-year “baseline” proposed implementation period. Furthermore, a considerably longer implementation period could compromise the consistency of compliance-assurance and enforcement activities, and thereby diminish the rule’s potential safety benefits. Therefore, the Agency’s proposal includes a single compliance date for all motor carriers that would be subject to the new rule’s requirements.

However, the Agency recognizes that small businesses may need additional information and guidance in order to comply with the proposed regulation. In order and to improve their understanding of the proposal and any rulemaking that would result from it, FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) proposes to conduct outreach aimed specifically at small businesses. FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) would conduct Webinars and other presentations as needed and upon request, at no charge to the participants. These would be held after the final rule has published and before the rule’s compliance date. To the extent practicable, these presentations will be interactive. Their purpose will be to describe in plain language the compliance and reporting requirements so they are clear and readily understood by the small entities that will be affected. The technical requirements the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) device and support systems used by small businesses must be identical to those established in the April 5, 2010 final rule, as amended (75 FR 17208; amended at 75 FR 55488, Sept. 132010)), codified in Appendix A to Part 395. This section establishes the minimum performance standards for the devices.

Today’s rule would likely become effective no earlier than 2014, four years after the technical specifications were published in EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) I, and two years after the first 1×10 remedial directive carriers will have been required to use the devices. EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) are expected to reduce business costs related to HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) Compliance, and can be used to increase other business-related efficiencies and reduce costs.

EOBRs can lead to significant paperwork savings that can in part or fully offset the costs of the devices. The Agency, however, recognizes that these devices entail a significant up-front investment than can be burdensome for small carriers. At least one vendor, however, provides free hardware and recoups the cost of the device over time in the form of higher monthly operating fees. The Agency is also aware of lease-to-own programs that allow the carriers to spread the purchase costs over several years. Nevertheless, the typical carrier would likely be required to spend $1,500-$2,000 per CMV Commercial Motor Vechicles to purchase and install EOBRs, and several hundred dollars per year for service fees. This estimate is higher than the estimate used in the April 2010 EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rulemaking for two primary reasons.

This proposed mandate would be permanent and also would require EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) to be installed and used in more than 20 times as many CMVs Commercial Motor Vehicles (vehicles owned or used by a business) than were estimated to be affected by the April 5, 2010, final rule. Therefore, the Agency cannot assume that an adequate number of the lower-cost devices would be available to meet the needs of that larger market. Current revenue data from the manufacturer of the device cited in the April 2010 final rule indicate that its market share is relatively low.

A second reason for using a higher cost for this analysis is that, in response to motor carrier A person providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees customer demand, EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) suppliers have expanded the functionality of their products and services. Hours-of-service recording and monitoring are functions commonly offered as part of comprehensive fleet A group of motor vehicles owned or leased by businesses or government agencies management systems, rather than in stand-alone devices. Many motor carriers are recognizing the potential operational benefits they can gain from the use of fleet A group of motor vehicles owned or leased by businesses or government agencies management systems, and the marketplace is responding with products and services tailored to motor carriers of all sizes. However, the Agency is not dismissing the possibility that “stand-alone” EOBRs, providing only hours-of-service recording and reporting (similar to the first AOBRDs automatic onboard recording devices: earlier recorders w/o GPS capability in the 1980s), may be offered for sale or lease at a lower cost than devices with other functionalities in addition to HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance. The Agency requests comments and data about EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) cost.

Based on direct experience with the devices and conversations with vendors, the Agency believes these devices are extremely durable and can be kept operational for many years. In addition to purchase costs, carriers would also likely spend about $40 per month per CMV Commercial Motor Vechicles for monthly service fees.

10. Unfunded Mandates Reform Analysis

The Unfunded Mandates Reform Act of 1995 requires Agencies to evaluate whether an Agency action would result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $140.8 million or more (as adjusted for inflation) in any one year, and if so, to take steps to minimize these unfunded mandates. This rule would not result in the expenditure by State, local and tribal governments, in the aggregate, of $140.8 million or more in any one year, nor would it affect small governments, as they are excluded from this rule. As table 25 shows, this rulemaking would result in private sector expenditures in excess of the threshold for all of the proposed options. Gross costs, however, are expected to be more than offset in savings from paperwork burden reductions.

Table 25: Annualized Net Expenditures by Private Sector (millions)

Appendix A. Derivation of Carrier, Driver, and CMV Commercial Motor Vechicles Counts

FMCSA used two recently conducted rulemaking analyses and data for years 2007 through 2009 from the Motor Carrier Management Information System (MCMIS) for its estimates of carriers, drivers, and CMVs. Estimates of about 500,000 active carriers and 4,000,000 CMV Commercial Motor Vechicles drivers were developed for the Drivers of CMVs: Restricting the Use of Cellular Phones (hereafter “cell phone”) proposed rule.³⁹ The RIA Regulatory Impact Analysis prepared for the 2010 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) NPRM Notice of Proposed Rulemaking: the official document announcing and explaining the proposed rule estimated 1,472,000 LH long-haul; generally >150 mi. from base for property carriers or over-the-road (OTR) tractors and 1,619,000 LH long-haul; generally >150 mi. from base for property carriers or OTR drivers, the latter estimate derived by having applied an industry average of 1.1 drivers per CMV.⁴⁰ The estimate in this RIA Regulatory Impact Analysis of total CMVs Commercial Motor Vehicles (vehicles owned or used by a business) was derived by dividing the 4,000,000 driver estimate in the cell phone rule by the 1.1 driver-per-CMV average, resulting in an estimate of 3,637,000 CMVs. SH short-haul: generally, < 150 mi. from base for property carriers estimates were derived by subtracting the LH long-haul; generally >150 mi. from base for property carriers estimates from the totals. The Agency did not develop estimates for the number of LH long-haul; generally >150 mi. from base for property carriers and SH short-haul: generally, < 150 mi. from base for property carriers carriers due to the overlap between the two types of operations, that is, not all carriers specialize by length of haul, and many conduct both types of operations. Separate estimates of the numbers of carriers engaged in LH long-haul; generally >150 mi. from base for property carriers and SH short-haul: generally, < 150 mi. from base for property carriers operations were not needed for the cost and benefit calculations.

Table 26: Estimates of Total, LH, and SH short-haul: generally, < 150 mi. from base for property carriers Operations (thousands)

MCMIS data on the type and number of CMVs Commercial Motor Vehicles (vehicles owned or used by a business) are generally more accurate than those on drivers. Carriers report both types of information when they register for their DOT Department of Transportation numbers on the MCS-150 forms, and are required to update this information at least once every two years. The MCS-150 registration forms contain information on the types of equipment carriers operate and if they haul bulk quantities of hazardous materials. Counts of total CMVs Commercial Motor Vehicles (vehicles owned or used by a business) by type of vehicle are believed to be reasonably accurate and can be reconstructed quickly from the MCMIS data. Counts of CMVs Commercial Motor Vehicles (vehicles owned or used by a business) are also used to parse non passenger carrying, non bulk hazmat operations into three categories: large (greater than 1,000 power units), medium (151 to 1,000 power units), and small (150 or fewer power units). Driver counts do not identify the types of operations, passenger versus property, or the type of cargo that drivers transport. Due to high occupational turnover, driver counts can be fluid, and a particular driver may not drive the same type of vehicle or cargo throughout the year. For these reasons, the Agency simply applied the 1.1 driver-per-CMV estimate for the CMV Commercial Motor Vechicles totals to estimate the drivers working in each type of operation.

Table 27: CMVs Commercial Motor Vehicles (vehicles owned or used by a business) by Vehicle Configuration or Carrier Size (thousands)

Although the counts of drivers by type of operation in the MCMIS data were unsuited to this analysis, the Agency did use information on the number of SH short-haul: generally, < 150 mi. from base for property carriers (“within 100-Mile Radius”) and LH long-haul; generally >150 mi. from base for property carriers (“beyond 100-Mile Radius”) drivers reported by carriers on the MCS-150 form. Using these data, the Agency constructed estimates of the average fractions of carrier operations by length of haul for each of the groups (table 28). Because it began with estimates of total, LH, and SH short-haul: generally, < 150 mi. from base for property carriers operations, FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) estimated each of the categories of operations, and then used the small carrier group as a residual to ensure that the sum across all the groups equaled the total, that is, Small = Total – Motorcoach – Other Passenger – Bulk Hazmat – Large – Medium. As a next step, the percentages in table 28 were applied to the figures in table 27 for the final counts of CMVs Commercial Motor Vehicles (vehicles owned or used by a business) and drivers by type of operation and length of haul, shown in table 29.

Table 28: Carrier Operations by Length of Haul

Table 29: Final Carrier, CMV, and Driver Estimates (thousands)

Appendix B. Forecasts of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) and FMS fleet management system Use

To forecast EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) and FMS fleet management system use, the Agency fit a model to the few data points it had on the percentage of CMVs Commercial Motor Vehicles (vehicles owned or used by a business) equipped with these devices. The Agency picked 1990 as a starting point: around that year the first AOBRDs automatic onboard recording devices: earlier recorders w/o GPS capability were introduced and FMS⁴¹ first came on the market. Those early FMS fleet management system would have had none of the functionality required for HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) logging as defined in EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) I, but the Agency assumes that early adopters will have upgraded their FMS fleet management system to those with fully compliant EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) functions by the time the rule being proposed here will become effective. The Agency relied on a simple model for technology adoption called a diffusion model. A study by Ryan and Gross (1943)⁴² on farmers’ adoption of hybrid ARMs with an initial fixed-rate period, after which the interest rate adjusts from time to time seed technology is widely recognized as the starting point for modern research into the technological diffusion process. A more formal mathematical analysis of this earlier study was presented by Griliches (1957).⁴³ The general premise is that the total percentage of new technology adopters will follow a cumulative normal distribution extending over time. Using 1990 as an approximate starting point, the Agency fitted diffusion curves to the 1990 starting point and other available data points on motor carrier A person providing motor vehicle transportation for compensation. The term includes a motor carrier’s agents, officers and employees technology use. Charts 1 and 2 display those fitted curves.

Chart 1: Forecast of FMS fleet management system Use without EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Rule

Chart 2: Forecast of Voluntary EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Use without EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Rule

Table 30 shows the percentages for FMS fleet management system and EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) used from each of the diffusion model curves and the final estimates of technology adoption used in the analysis. As of 2005, the percentage of SH short-haul: generally, < 150 mi. from base for property carriers operations using FMS fleet management system was about one-third the percentage of LH long-haul; generally >150 mi. from base for property carriers operations using this technology (8% for SH short-haul: generally, < 150 mi. from base for property carriers versus 25% for LH).⁴⁴ The Agency does not have sufficient data to estimate separate SH short-haul: generally, < 150 mi. from base for property carriers technology adoption curves, and assumes that technology adoption for SH short-haul: generally, < 150 mi. from base for property carriers will be one-third that of LH long-haul; generally >150 mi. from base for property carriers for any point on the diffusion curves. Last, beginning in 2012, the percentage of power units affected by the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) I 1X10 remedial directive was added on top of the percentages of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) voluntary users.

Table 30: Estimates of FMS fleet management system and EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Use

Appendix C. Improvements in HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) Compliance

FMCSA examined CMV Commercial Motor Vechicles roadside inspection data from 2004, the first full year the main provisions of the current HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules were in effect, through 2009, the last complete year of data, to assess changes in carrier compliance with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules, focusing on those violations severe enough to warrant out of service (OOS) orders. Table 31 shows the overall HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) OOS violation rates and the most prevalent types of individual violations (the OOS rate will be less than the sum of the individual categories because an inspection can result in multiple OOS violations). From 2004 to 2009, the overall OOS rate declined about 84 percent. OOS rates for the 11 hour driving limit declined 67 percent, and OOS violations related to missing, incomplete, improper, or fraudulent RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) declined 84 percent. Although there are not enough years of data to determine whether the declines in the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violation OOS in 2008 and 2009 are permanent, incomplete inspection data for 2010 are so far showing further declines in the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) OOS rate as compared to that in 2009. These data represent the Agency’s best estimate of the current state of HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance, and although there may be some uncertainty as to whether they are the most robust assessment of baseline non-compliance with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules, projections of future non-compliance rates would be difficult to construct and would have high degrees of forecast uncertainty.

EOBRs at a minimum will automatically record driving time; insofar as drivers use the devices as required, EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) will ensure that drivers have RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) that are complete and contain properly formatted entries. The Agency believes that EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) will have the greatest impact reducing 11 hour driving time violations and most of the serious RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) preparation violations. However, because drivers will have to manually record when on-duty, non-driving periods begin and end, EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) will have limited effects on improving accurate recording of overall daily on-duty time (14-hour rule violations) or weekly on-duty time (60/7 or 70/8 rule violations). Improvements in overall HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance currently reflect reductions in 11 hour RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) preparation violations and will continue to do so when the majority of CMV Commercial Motor Vechicles operations begin using EOBRs.

Table 31: 2004-2009 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) OOS Violation Rates

Appendix D. Improvements in CMV Commercial Motor Vechicles Safety

The ability of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) to reduce CMV Commercial Motor Vechicles crashes is constrained by two factors. The first is the overall number of crashes occurring; irrespective of HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) noncompliance, safety deficiencies have to exist for safety improvements to occur. The second is the prevalence of crashes related to HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations, specifically fatigue related crashes. Safety benefits can be estimated as the monetized reductions in crashes that can be anticipated to follow from reductions in fatigue. An accurate indicator to measure safety benefits are reductions in crash risk because eliminating any hour of driving eliminates all increase in crash risk associated with that hour, not just the risk associated with fatigue coded ones. However, the Agency does not have enough data to determine relative crash risk for all types of crashes at each hour. Hence, we consider only risk associated with fatigue-coded crashes. Table 32 shows the changes in the measurements of CMV Commercial Motor Vechicles safety since the safety baseline for the current rules was established in the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) RIA. The “2003 Rule” column does not contain year 2003 data, but a four-year average from 1997-2000 to which the Agency’s estimate of the cost of CMV Commercial Motor Vechicles crashes available at the time⁴⁵ was applied for a measure of total societal damages. To update the overall CMV Commercial Motor Vechicles safety measure, FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) compared the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rule figures to the average number of crashes that occurred in the most recent two years for which data are available, 2007 and 2008. As shown in table 32, fatal and injury crashes declined, but the less severe category of property damage only (PDO) crashes increased. In total, the number of crashes has increased slightly, only 3 percent, as compared to the data used in the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rule. The Agency also applied a higher value for the cost per CMV Commercial Motor Vechicles crash which reflects revised cost per crash data,⁴⁶ inflation to year 2008 prices, and a higher VSL required by DOT Department of Transportation for all of its regulatory evaluations.⁴⁷ Combined, these adjustments caused the estimate of the cost per CMV Commercial Motor Vechicles crash to about double. Total monetized damages from CMV Commercial Motor Vechicles involved crashes were 203 percent of the estimate prepared in the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) RIA; this adjustment is reflected in row VII of table 7. Although the total number of crashes did not change substantially, the monetary value assigned to those crashes led to a significant increase in the safety benefits attainable by mandating EOBRs.

Table 32: 2003-2008 Changes in Measurements of CMV Commercial Motor Vechicles Safety

In the 2010 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) RIA, the Agency reassessed the prevalence of CMV Commercial Motor Vechicles driver fatigue in crashes. Past HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) analyses had used an estimate of about 7 percent, which limited the attainable safety benefits from any changes to the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules or improved enforcement of those rules, such as by mandating EOBRs, to at most 7 percent of the total societal damages from CMV Commercial Motor Vechicles involved crashes. Based on data from the Large Truck Crash Causation study and public comments on past HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rule analyses, the Agency updated its estimate of the prevalence of CMV Commercial Motor Vechicles driver fatigue to 13 percent of crashes, resulting in the attainable safety benefits increasing to 186 percent (13 percent ÷ 7 percent) of the value estimated in the 2003 HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) RIA. This adjustment is reflected in row VIII of table 9.

Appendix E. EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Effectiveness

There is little research on the effectiveness of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) in reducing crashes and HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations. FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) examined a study conducted by Cantor et al. of the University of Maryland on the effectiveness of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) in reducing HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations and crashes.⁴⁸ Data used in this study were from a national survey sponsored by FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) on safety technology adoption (which includes but is not limited to EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) or AOBRDs) by large motor carriers. The final dataset included information from a total of 386 firms that operated on average 671 CMVs; in terms of CMVs, survey respondents represented about 6 1/2 percent of the estimated total. About 58 percent were for-hire carriers and the range of operations represented about 8 percent local, 44 percent regional, and 41 percent national. Among larger carriers, the Agency believes the survey achieved a representative cross section of the industry. Small and medium carriers, however, are not represented, but the Agency believes that these firms will likely have lower adoption of safety technologies.

The researchers employed Poisson models that treat both HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations and crashes as count variables, and regressed these on an EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) variable measuring the percentage of each carrier’s fleet A group of motor vehicles owned or leased by businesses or government agencies that used the devices and several control variables. The authors developed an impact analysis on the average effect of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) usage based on the estimates resulting from their models. Their analysis found that full EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) adoption could reduce HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations 12.4 percent and reduce total crashes, not only fatigue-related crashes, 15.6 percent. While the estimates of positive impacts of the devices are credible, the Agency believes that the magnitude of the crash effects estimated in this study is larger than what one would anticipate from the implementation of this rule, and the magnitude of the reduction in HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations much smaller. All carriers in the sample that use EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) adopted these devices voluntarily, indicating a proactive commitment to reducing their fatigue-related crashes. Also, EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) were likely implemented along with other safety technology, which this study did not control for, and the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) usage variable may also capture safety improvements from reductions in other types of crashes not related to HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations. For the purposes of this analysis, the Agency focuses strictly on costs and benefits from electronic HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) logging and monitoring, which likely form a subset of the crashes eliminated by the voluntary adopters in this study.

The Agency relied on a different analysis of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) effectiveness that is intended to evaluate the effects of these devices for the typical, unwilling adopter and that maintains analytical consistency with the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rule. It estimated the percentage of crashes occurring at illegal drive times (after 11 hours) to construct an upper bound for the safety benefits of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) use. It began with the Time on Task (TOT) model developed for the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules, which used a logistic regression to predict fatigue related crashes as a function of driving time: Percentage of Crashes that are Fatigue Related = exp(-4.632 + 0.1226Drive Time + 0.0034Drive Time).2 Next, using data from FMCSA’s 2008 Field Survey, the Agency constructed a measure of driver exposure, that is, the percentage of driving occurring, at each hour of drive time.⁴⁹ The product of the predicted percentage of fatigue related crashes and exposure yields an estimate of the percentage of total crashes attributable to fatigue distributed over 20 hours of drive time. The Agency estimates that driver fatigue occurs in 13 percent of crashes, and as a final step rescales these results to sum to 13 percent. Last, as shown in table 33, the Agency calculates that total annual societal damages from CMV Commercial Motor Vechicles crashes are $65,510 million. This amount can be allocated to the fatigue related crashes occurring in each hour of drive time. This analysis is presented in Table 32.

Table 33: Predicted Safety Benefits of Eliminating 11-Hour Rule Violations

According to this analysis, eliminating all fatigue-related crashes that occur during illegal driving times results in a 1.5 percent reduction in total crashes and a monetized safety benefit of $1,014 million. As Table 9 above indicates, the baseline safety benefit related to perfect enforcement of the existing HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules is $3,255 million. If the elimination of driving time violations could accrue safety benefits of $1,014 million, then other violations account for the remaining $2,214 million ($3,255 – $1,014) in maximum safety benefits.

To evaluate the effectiveness of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) in improving HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) compliance, the Agency used roadside inspection data from motor carriers under settlement agreements with the Agency to install and use enhanced AOBRDs. The Agency continually monitors inspection data from these carriers. It began by analyzing OOS 11-hour rule violations per inspection. Because multiple categories of OOS HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations can be found during a single inspection, the TOT model would have captured the risks of other types of HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations that coincide with driving time violations. To attempt to isolate the effects of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) on other violations, these other OOS HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations are evaluated only where an 11-hour rule violation had not been found. As shown in table 34, after the carriers began using enhanced AOBRDs, HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations dropped significantly; the differences in violation rates were significant at a 99 percent level or higher.⁵⁰

Table 34: HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) OOS Rate Reduction for Carriers Using AOBRDs automatic onboard recording devices: earlier recorders w/o GPS capability under Settlement Agreements

FMCSA’s analysis indicates that enhanced AOBRDs automatic onboard recording devices: earlier recorders w/o GPS capability can eliminate at least two-thirds of HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) violations. However, the Agency is cautious not to overestimate the effectiveness of the devices, and for this regulatory analysis, prefers to evaluate them at the lower bound of a 95 percent confidence interval, where 22 percent of 11-hour rule violations are eliminated, 41 percent of violations to other time limits are eliminated, and 66 percent of RODS Record of duty status (A logbook maintained by CMV drivers to track driving time (i.e., duty status) for each 24-hour period) preparation violations, so-called “form and manner” violations, are eliminated. The Agency is uncertain about the degree to which form and manner violations are the result of simple negligence or mask other time limit violations, but believes the latter reason is prevalent enough to justify its adjusting the estimate of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) effectiveness upward slightly. As discussed above, about one-third of the safety benefits of enforcing the HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) rules come from the drive time limits, and the other two-thirds from the other provisions. The Agency calculates overall EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) effectiveness as the weighted average of 11-hour rule and other rule enforcement, or [(22% × 1/3) + (41% × 2/3)] = 34%. The Agency rounds this figure up to 40 percent to account for form and manner violations used to hide time limit violations.

Appendix F. Price and Availability of EOBRs

The device examined in the analysis for cost estimates is the Qualcomm MCP-100 FMS fleet management system that uses terrestrial communications. In past reviews of devices, FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) has found Qualcomm devices to be at the top of the cost range of available products. Qualcomm has among the largest market shares of FMS⁵¹, and although its devices are slightly more expensive, devices with costs close to that of the MCP-100 may be the most abundant in the market when the compliance phase-in begins. Qualcomm reports that the MCP-100 currently costs $1675 and requires a $40 per month communication fee, which covers all the device’s main features, including HOS Hours of service (Regulations issued by FMCSA that limit the number of daily and weekly hours a CMV driver may drive) monitoring. A Qualcomm sales representative also discussed third party lease-to-own programs that allow carriers to spread the up-front costs of the device over a monthly payment plan. A typical payment plan is $60 per month over 36 months.

FMCSA has limited information on the ability of vendors to produce adequate supplies of EOBRs Electronic on-Board Recorders (Devices attached to commercial motor vehicles that track the number of hours drivers spend on the road) by the compliance date of the rule. However, there is currently sufficient depth in the market to suggest that vendors will be able to meet demand. The Agency estimates that about one-half of LH long-haul; generally >150 mi. from base for property carriers operations currently use FMS fleet management system or EOBRs, and is forecasting that about three-quarters of LH long-haul; generally >150 mi. from base for property carriers operations will have been using these devices absent this rulemaking. It is also estimated that about 15 percent of SH short-haul: generally, < 150 mi. from base for property carriers operations use these devices, and that this will have grown to about 25 percent absent this rulemaking. Vendors are currently able to meet demand, and the Agency believes that they will have already been anticipating growth in EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) and FMS fleet management system markets. FMCSA Federal Motor Carrier Safety Administration (The agency proposing the EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) rule) is seeking commentary and information on vendors on their ability to supply EOBRs.

Table 35 present further comparisons of devices costs. A slightly higher cost results if the MCP-100 is evaluated with the thirty-six-month payment plan. The cost of producing devices may decline over time, but the Agency is uncertain, given the surge in demand caused by the compliance date, whether these cost savings will be passed on to purchasers in the near term.

Table 35: Comparison of EOBR Electronic on-Board Recorder (A device attached to commercial motor vehicles that tracks the number of hours drivers spend on the road) Cost Estimates