## 4/7/05 - Sandberg Delivers Upbeat Report to Senators; Asks Committee for More Considerations

**STATEMENT OF ANNETTE SANDBERG, ADMINISTRATOR\
FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION\
BEFORE THE SUBCOMMITTEE ON SURFACE TRANSPORTATION AND MERCHANT MARINE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION\
UNITED STATES SENATE**

April 5, 2005

Chairman Lott, Senator Inouye, and members of the subcommittee. Thank
you for inviting me today to discuss the successes the Federal Motor
Carrier Safety Administration (FMCSA) has had in enhancing safety on our
nation's highways, particularly as they relate to the safe operation of
commercial motor vehicles (CMVs) and their operators. I last appeared
before this committee in June 2003, just one month after my confirmation
hearing. Nearly two years later, I am pleased to report that CMV safety
has greatly improved during my tenure as Administrator.

**FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION OVERVIEW**

As Secretary Mineta has said many times, safety is the centerpiece of
the Administration's Safe, Accountable, Flexible, and Efficient
Transportation Equity Act (SAFETEA). FMCSA is committed to that goal.
Our agency was conceived out of the need for stronger CMV safety -- it
is our mandate. More than that, our agency consists of a group of
dedicated professionals to whom safety is the highest priority. Toward
that goal, FMCSA is working to reduce the unnecessary loss of life on
our nation's highways. FMCSA is committed to achieving the Department's
highway safety goal of reducing the fatality rate in all motor vehicle
crashes by 41 percent from 1998 to 2008. Our part of that goal is to
reduce commercial vehicle crash fatalities to 1.65 fatalities per 100
million miles of truck travel. Achieving our safety goal will be
challenging, as commercial vehicle miles traveled are increasing at a
rate faster than that of passenger cars. I am pleased to report that the
FY 2003 CMV fatality rate of 2.3 is the lowest recorded since the
Department initiated tracking in 1975.\
Safety improvements like these cannot be accomplished without sound
programs and adequate enforcement across all levels of government.
Enforcement is the cornerstone of motor carrier safety. In FY 2004,
Federal and State safety enforcement operations that ensured compliance
with Federal Motor Carrier Safety Regulations included the following:
more than 25,000 new entrant safety audits; over 11,000 safety
compliance reviews; and nearly 3 million roadside inspections. As a
result, FMCSA initiated more than 5,000 enforcement cases. In 2003, an
Office of Management and Budget assessment found that FMCSA has achieved
reductions in the large truck fatality rate in each of the past five
years and is on track to achieve its ambitious long-term safety goals.

The Administration's SAFETEA proposal, transmitted to Congress in 2003
and updated in adjustments this February, proposes important advances to
our motor carrier safety program. I am pleased that items we believe
critical for safety continue to be addressed by your Committee. They
include: the penalty for denial of access to records, increased
penalties for out-of-service violations, and safety fitness. We have
also been working with Committee staff on some of our SAFETEA
adjustments, specifically patterns of safety violations by motor carrier
management and intrastate operations of interstate motor carriers, and
we appreciate their willingness to work with us to increase safety in
these areas.

However, in order for FMCSA to fully achieve its safety mission, we ask
the Committee to address the following issues: the codification of the
existing hours of service rule for interstate CMV drivers, Commercial
Driver's License (CDL) improvements, the safety and security of the
Southern Border, increasing penalties for unscrupulous household goods
brokers, establishment of the medical review board and medical registry,
mandatory fuel surcharge, and hazardous materials transportation safety.

**HOURS OF SERVICE**

With regard to hours of service, I would like to report on the progress
made since the most recent extension of the Transportation Equity Act
for the 21st Century (TEA-21), on September 30, 2004. In the Surface
Transportation Extension Act of 2004, Part V, Congress provided that the
current hours-of-service rule will stay in effect until the Agency
publishes a final rule addressing the factors in the July 2004 decision
of the U.S. Court of Appeals for the District of Columbia Circuit, or
September 30, 2005, whichever is earlier.\
I established a dedicated hours-of-service task force that reports
directly to me. This task force consists of some of the most highly
respected professionals in our agency. Its work has already proved
exceptional -- since its creation the task force has issued its Notice
of Proposed Rulemaking (NPRM) on the new rule and is on track to meet
the September deadline. However, the new rule, like the old rule, will
not please everyone. I am concerned that the revised rule will open the
Agency and the Department to the same kinds of legal challenges we have
experienced already. These challenges keep the industry and others in a
constant state of uncertainty. For this reason, the Administration seeks
the inclusion of language in the Senate reauthorization bill that will
make the 2003 rule permanent and allow FMCSA the opportunity to revise
the rule, if necessary.

Another issue of concern is the number of proposed exemptions to the
hours of service rule. The old rule on hours of service contained
statutory exemptions for various industries. These exemptions have been
retained in the new rule. New blanket statutory exemptions for various
industries increase the likelihood that tired drivers will be on the
roads endangering the driving public.\
Overall, these exemptions compromise safety. They create enforcement
problems, hamper accurate recordkeeping, encourage other industries to
seek exemptions, and dilute the objective of providing drivers a more
regular schedule to coincide with circadian rhythms. As Administrator of
the Agency, I am charged with fulfilling its mandate of improving the
safety of these drivers and the traveling public with whom they
interact. Exemptions to the hours of service rule without data and
research to support the exemptions hamper the Agency's ability to
fulfill our safety mission.

**CDL IMPROVEMENT PROGRAM**

Another important initiative is the Commercial Driver's License
improvement program. Critical to the safety and security of the United
States, the CDL grant program is the latest in a series of efforts by
our agency to improve and enhance the effectiveness of the CDL program.
Since implementation of the CDL program in 1986, FMCSA has promulgated
regulations addressing State compliance with the CDL requirements,
initiated judicial outreach, expanded State CDL compliance review, and
most recently developed a CDL anti-fraud program. In 2004, FMCSA
conducted 16 compliance reviews of State CDL programs, strengthened
oversight of annual State self-certification of CDL programs and
allocated \$22 million in grant funding for States to address
compliance, fraud, and security issues.

Also in 2004, FMCSA organized a working group of motor vehicle
administrators and law enforcement staff to address anti-fraud
initiatives. The group has made several recommendations to eventually be
included in a model law enforcement program for preventing CDL fraud.
This program, when fully implemented, will establish a framework for
motor vehicle and law enforcement agencies to work collaboratively in
addressing CDL fraud.

FMCSA is also partnering with the Office of Inspector General (OIG) to
coordinate CDL fraud investigations by providing CDL-specific
investigative expertise to State agencies, and where warranted, Federal
prosecution for criminal violations. With FMCSA's assistance, the OIG is
preparing training materials for their field investigators to assist in
CDL-related investigations.

Finally, the CDL compliance review program now includes a specific
anti-fraud component. The agency has included anti-fraud priorities as
an eligible funding activity for CDL improvement grant funds. Not only
has FMCSA elevated fraud issues with States during CDL compliance
reviews and with CDL grant awards but also will continue to emphasize
fraud awareness training to State law enforcement and motor vehicle
personnel.

**HOUSEHOLD GOODS ENFORCEMENT**

The Administration has requested greater enforcement of violations by
movers of household goods (HHG). I know that the Chairman and members of
this Committee have noticed an increase in consumer complaints about
household goods carriers. The Administration's proposal establishes more
visible enforcement through increased investigations and expanded
outreach. Our efforts seek to increase consumer awareness and help
citizens make better-informed decisions when moving across State lines.
Additionally, we seek authority for State Attorneys General to enforce
Federal household goods regulations against interstate carriers. We
believe this authority will help reduce abusive practices and makes sure
there is consistency in enforcement across the country by having one set
of regulations rather than many state regulations.

For FY 2005, FMCSA is conducting strike force activity in States where
we have seen the highest level of complaints, with a goal of 300
investigations. These states are Florida, New York, New Jersey, and
California. Since the beginning of the fiscal year, the Agency has
conducted over 100 investigations, three times as many as in FY 2004,
and is on target to meet its annual goal. FMCSA used the \$1.3 million
appropriated to hire Federal employees to investigate HHG complaints and
to conduct concentrated strike force activities, bringing together
investigators from throughout the country to operate in a specific area
for a short period of time. Currently, the Agency has 10 full-time
safety investigators devoted to HHG enforcement and we have trained an
additional 37 investigators to support this effort. Our agency is
committed to eradicating this threat to American consumers.

**MEDICAL REVIEW BOARD**

Another important aspect of our reauthorization proposal is the creation
of a standing medical review board to provide the Agency with expert
medical advice on driver qualification standards and guidelines, medical
examiner education, and research, thereby enhancing our ability to adopt
medically sound and up to date regulations. In the past, we have
assembled expert medical specialists on an ad hoc basis to review the
standards and guidelines for qualifying truck and bus drivers. Many of
the standards in place now were adopted in the 1970s or earlier. A
standing review board will greatly enhance the Agency's ability to adopt
regulations that reflect current medical advances. Establishment of a
medical registry would respond to the National Transportation Safety
Board (NTSB), which issued eight safety recommendations in September
2001, requiring that FMCSA establish comprehensive standards for
qualifying medical providers and conducting medical qualification exams.

Last Congress, S. 1072 established a medical review board based on the
Federal Aviation Administration (FAA) model for pilot standards. Neither
FMCSA nor FAA believes the FAA model to be an appropriate one for CMV
drivers. The sheer number of drivers and differences in the age and
health characteristics of the driver population make this model an
untenable one for FMCSA. The FAA has 6,000 authorized aviation medical
examiners to perform yearly exams on approximately 270,000 pilots. FMCSA
estimates that approximately 300,000 medical examiners perform exams on
approximately 6.4 million CMV drivers on a biennial basis. While I
appreciate the Committee's inclusion of the medical registry provision,
I urge the Committee to rework the review board model and provide
adequate funding to maximize our ability to set appropriate medical
standards for CMV drivers.

**SAFETY AND SECURITY AT THE SOUTHERN BORDER**

The Administration is committed to implementing fully the North American
Free Trade Agreement (NAFTA) land transportation provisions. In June
2004, the U.S. Supreme Court ruled in the Administration's favor in a
suit that would have required environmental analyses of the rules. The
most recent Inspector General audit for NAFTA implementation, released
in January 2005, stated: "FMCSA has sufficient staff, facilities,
equipment and procedures in place to substantially meet the eight
Section 350 provisions for Mexican long haul trucks."\
In preparation for allowing Mexican carriers beyond the commercial zones
and in response to the mandates of Section 350 of the FY 2002 DOT
Appropriations Act, FMCSA has deployed 274 inspectors, auditors, and
investigators along the border to process these carriers. FMCSA has
provided funds to the four southern Border States to hire additional
inspectors and construct inspection facilities. As of December 10, 2004,
693 Mexican carriers have applied for authority to operate beyond the
commercial zones. Of the 693 applications, 314 are ready for the
mandated safety audit.

One of the requirements in Section 350 of the FY 2002 DOT Appropriations
Act, which has been adopted in all subsequent DOT appropriations acts,
makes the inspection procedures and decal of a non-governmental
organization mandatory for Mexican CMVs. In one of the Administration's
SAFETEA Adjustments, we propose that the required inspection decal be
issued or approved by the Secretary of Transportation. We feel that this
is an important function for which the Federal Government should be
responsible.

**HAZARDOUS MATERIALS TRANSPORTATION**

FMCSA has implemented a comprehensive Hazardous Materials (HM) Security
Program to improve the secure transportation of hazardous materials on
our highways and protect the country from the threat of terrorism. The
program includes an enforcement/compliance component as well as an
outreach component.\
A major element of the FMCSA HM Security Program involves FMCSA's new HM
Permit Program. Carriers of extremely high-hazard materials are required
to obtain a permit from FMCSA. This permit is contingent upon the
carrier's developing and maintaining a satisfactory security program
that meets the requirements of the HM Regulations and includes a
communication component for permitted loads. FMCSA will validate the
adequacy of the security plan for 1,200 carriers during FY 2006 using a
Security Contact Review (SCR). The SCR includes an in-depth assessment
of the adequacy of a carrier's security plan and its implementation as
well as security training, communication requirements, and other
requirements of the HM permit program.

**MANDATORY FUEL SURCHARGE**

The Nation has benefited enormously from our economic deregulation of
the transportation industry. In the last 25 years, the free market for
motor carrier services in particular has made important contributions to
the growth and efficiency of our economy and helped to sustain its
remarkable ability to create new jobs. Although the price of diesel fuel
has risen sharply in the past few years, the allocation of those costs
among the buyers and sellers of transportation is best accomplished
through the working of the marketplace, not by government prescription.
The mandatory fuel surcharge for truckload transportation prescribed by
section 4139 of H.R. 3 would insinuate government into commercial
relationships in a way that is ill-advised and that would reverse a
quarter-century of U.S. economic policy. For these reasons, the
Administration strongly urges the members of this Committee, and other
Senators, not to include language supporting a fuel surcharge in its
reauthorization bill.

**REGULATORY BACKLOG**

Mr. Chairman, I am pleased to report that FMCSA's progress has been
steady and our future is bright. One aspect of our progress of which I
am particularly proud is how we have addressed our Congressional
regulatory and reporting requirements. When I began as Administrator,
there was a tremendous regulatory backlog. During my tenure, I have
reduced this backlog by over 40%. I have met with your staff to update
them on our progress. I ask that no mandated rulemakings be added to the
Committee's bill. FMCSA needs to be able to set rulemaking priorities
based on safety, not mandated timelines.

**CONCLUSION**

I wish to thank you for inviting me to discuss the achievements FMCSA
has made toward reducing fatalities and injuries on our nation's
highways. This reauthorization represents the first opportunity for our
five-year old agency to step forward, stand on its own, and chart our
course. I would be happy to respond to any questions you may have.