# Presentation: 674031

## FHWA Talking Freight Seminar:Security and the Trucking Industry

- October 19, 2005

## Initiatives in Trucking Security

- Pro-Active Security Initiatives:
- Anti-Terrorism Action Plan
- Highway Watch Program
- Reactive Initiatives:
- Background Checks
- Hazmat
- Cross-Border
- Bioterrorism Act
- Maritime & Air Cargo Security

## ATAP and Highway Watch

**Objectives**
**No Truck Used As A Weapon**
**Protect Our Infrastructure**
**America’s Trucking Army**
**525,000 Trucking Companies**
**Over 3 Million Professional Truck Drivers**
**New Partnership With Government: Highway Watch **
**Call Center**
**Provide Significant Security Reports**
**Truck ISAC**
** ****National Alerts, Warnings, Advisories**
** ****Commendations From DHS**

## Legislation

- USA Patriot Act (107-56)
- Maritime Transportation Security Act (107-295)
- Aviation and Transportation Security Act (107-71)
- Bioterrorism Act (107-188)
- Homeland Security Act (107-296)
- Safe Explosives Act (107-296)
- Border Security Act (107-173)
- Trade Act (107-210)

**Notes:**
These are the primary statutes that passed in the post 9/11 environment that have had an impact on the trucking industry.
Of course, in order to implement these statutes, regulations are being proposed or developed by a myriad of government agencies.  
ATA has actively followed the development of each one to ensure that the trucking industry’s ability to transport our customers’ cargo is not negatively hampered due to unduly strict or cumbersome requirements.
Again, it is essential that legislators and regulators understand the importance of trucking operations, the diverse operational nature of our industry and the role this sector serves in connecting all the other modes, and in serving our nation’s economic needs. 

## USA PATRIOT Act 

- Patriot Act: Security threat assessments for drivers transporting hazardous materials
- TSA Regulation: CDL holders seeking a Hazmat Endorsement undergo a fingerprint-based criminal history record checks
- List of disqualifying crimes
- 2.7 million CDLs with HMEs
- Impact on driver population: 20% reduction (TSA est.)
- Dates: 01/31- new HMEs, 05/31- renewals and transfers
- TSA implementing through States:
- 33 states + DC – Using TSA contractor
- 17 states developing own collection system

**Notes:**
 The government’s effort to ensure the security of the transportation of hazmats has probably been the initiative with the greatest impact on the trucking industry.
Section 1012 of the Patriot Act requires a security threat assessment of any commercial driver seeking, renewing or transferring a hazmat endorsement.  ATA does not oppose this statutory requirement by Congress.  
However, we have, from the very beginning, insisted that the Transportation Security Administration, or TSA, develop a national, uniform system to perform such assessments.  
Why have we insisted on this? Because of the 3.2 million commercial truck drivers, 2.7 million of them hold HMEs.  In essence, because so many motor carriers require their drivers to have an HME, we are deeply concerned about the potential impact that a badly developed rule will have on our drivers.  TSA has estimated a potential loss to the industry of 20% of our HME certified driver pool, not because of what’s in their records, but mostly to avoid the hassle and the expense of undergoing such a process.  
As you’re likely aware, the rule requires drivers seeking a new HME to undergo a fingerprint background check, since last January 31.  Drivers renewing or transferring their HME started fingerprint background checks last May 31.  
Unfortunately, TSA did not heed ATA’s advice and request, and developed a hybrid system in which 33 states plus DC are using a TSA contractor, while 17 states have established their own individual systems.
The TSA contractor collects the fingerprints and collects the fees for TSA, at a total cost of $84.  The 17 states are allowed to set their own collection fees, with some states having the ability to charge up to $170, to establish their own individual process, operating hours, and number of facilities.
ATA clearly opposes the way TSA developed this rule and the program itself, and we’re not alone. The states have complained about a lack of program management and continuous staff turnover.  
So what does ATA propose?  In the short to medium term, TSA should continue to perform name based background checks, which the agency has stated meets the statutory requirements.  Once DHS and TSA are ready to roll out the Transportation Worker Identification Credential, or TWIC, for a large number of transportation workers, then they should require  fingerprint based background checks for the TWIC application and utilize economies of scale to reduce costs to individual transportation workers required to undergo security threat assessments.
Another short term viable solution is to require only those drivers handling highly hazardous materials, those requiring a 5109 permit, to undergo a fingerprint based BC.  No one thinks it makes much sense why drivers hauling placarded amounts of cans of paint from Sherwin Williams to Home Depot should have to undergo a background check.  
ATA continues to work with TSA and DHS on this issue to develop a sensible, risk-based program.  

## HM-232 Final Rule

- Requires Security Plan by motor carrier:
- Personnel Security, Facility Security, En-route Security
- Requires Security Training for drivers:
- Highway Watch complies with HM-232
- FMCSA compliance visits verify:
- Content of plan
- Implementation of security plan
- Employee training
- FMCSA inspector security checklist & citations

## Free and Secure Trade (FAST) 

- FAST = Facilitate trade + secure supply chain
- FAST – N. Border  (12/02)
- C-TPAT/PIP cargo (importer)
- Highway carrier agreement
- FAST driver registration (Security Threat Assessment) ($50)
- FAST – S. Border (9/03)
- C-TPAT cargo (importer & manufacturer)
- Highway carrier agreement (even if N. border approved)
- FAST driver registration
- Seals: ISO/PSA 17712, Freight Containers-Mechanical
- Outstanding Issues:
- CTPAT sector criteria
- Development of FAST lanes
- Validation process

## Bio-Terrorism Act

- Food and Drug Administration rule on pre-notification of food shipment imports implemented December 12, 2003
*Importing requirements:*
- Importer, cargo and carrier information to FDA 2 hours prior to arrival.
*Registration requirements:*
- Registration provisions no longer include motor carrier facilities
*Recordkeeping requirements:*
- Record keeping requirements: BOL will suffice

## Air Cargo Rules

- Security Threat Assessments for unescorted access to secure areas
- Security plans for contractors, to include indirect air carriers:
- Required if cargo moving cargo on airway bill
- Validation and review of plan by shipper party

## Maritime Transportation Security Act 

- Security Requirements for Maritime Facilities
- Requires development of the Transportation Worker Identification Credential (TWIC) - TSA/Coast Guard
- Development of a “Secure System of Transportation”
- Strengthen C-TPAT Security
- CBP Supply Chain Specialists Validate C-TPAT
- ISO Approved Security Seals
- Mandates continued Communication with Industry

**Notes:**
The Maritime Transportation Security Act, or MTSA, requires DHS, through the Coast Guard and TSA, to develop security standards for implementation at U.S. maritime facilities.  
 Coast Guard issued interim final rules effective July 2003, requiring ports to develop security plans.  Because of the key role that trucking companies play in transporting containers into and out of maritime facilities, we have been following this initiative closely.
Presently, the Coast Guard is working with TSA in developing the TWIC as the secure identity card for use by transportation workers that require unescorted access to maritime facilities. 
ATA is aware of some ports requiring truck drivers to undergo security training. Therefore, ATA has contacted the Coast Guard to allow drivers trained under the HWW program to be in compliance, at a national level, with any security training requirements.
But MTSA also went well beyond the security of the maritime environment.  It requires DHS to develop a “Secure System of Transportation”, and delegates this specific responsibility to the Under Secretary of Border and Transportation Security, or BTS, to develop a strategic plan.  
It also has other very relevant requirements impacting motor carriers, such as strengthening the CTPAT program, developing International Standards Organization compliant seals, ensuring coordination between CBP and TSA, and more importantly, ensuring continuous communication and involvement from industry in the development of a Secure System of Transportation.

## Other Security Issues

- DHS National Infrastructure Protection Plan
- Transportation Sector Specific Plans (TSSP) – TSA/IP
- Tracking & Security Technologies
- Real ID Act
- Automated Commercial Environment - International Trade Data System (ACE-ITDS)
- Automated Trade Data Initiative (ATDI)
- Domestic cargo information- FAS
- Radio Frequency Identification Tags (RFID)

**Notes:**
Briefly, I will touch on three other activities, among many others in which the division is engaged.

ATA is carefully monitoring the implementation of the new Maritime Security Regulations to see how the new Port and facility security plans impact upon trucling operations into seaports.

ATA as intimately involved in the development of 22 recommendations by the Aviation Security Advisory Committee to TSA regarding the soon to be proposed rules covering all-air cargo.  Tens of thousands of motor carriers will be affected by these new rules.

ATA continues to track the open HM-232a docket, which may result in hazmat trucking rules mandating such technologies and locks, seals and tracking systems and company procedures such as multiple drivers, pre-notification of routing and establishment of hazmat safe-havens.

## Conclusion

- Industry recognizes September 11th effects
- Must balance national security and economic security
- Risk-based assessments essential
- Closer cooperation among:
***Government agencies and industry***: improve information and intelligence sharing
***U.S. government agencies***: better sharing of information and database interconnectivity at all government levels; establish uniform background check process
***Int’l. Trading Partners***: U.S. must develop better information/data exchange mechanisms for processing entry/exit of cargo and people with Canada, Mexico and other essential trade partners

**Notes:**
To conclude, industry recognizes the post 9/11 environment and we honestly believe we are doing our part as an industry and in working in partnership with government agencies in various programs.
The essentiality of the trucking industry to our economic well being is without question, and it is therefore critical that as a nation we do not lose sight of the need to balance economic security and national security.
This of course means that industry and government must continue to improve our ability to share information and intelligence.  The HWW and ISAC programs are examples of how we can work together to improve the security of our national infrastructure and supply chain.  Initiatives under the National Infrastructure Protection Plan will also play an important role as it evolves.
But more importantly, it is critical that government agencies coordinate their efforts to improve transportation security.  Presently, government programs are in place that require motor carriers to have multiple security plans, background checks and training, including those in FAST, MTSA, Patriot Act, TWIC, Air cargo, HM-232, etc.  Again, because of the diversity within the trucking industry, perhaps a one size plan might not work, but we must reduce the duplicity of effort, and wasted resources that these multiple plans and threat assessments represent to trucking companies.  
Lastly, we must work with our two largest international trading partners to develop better systems for clearance of cargo, equipment, and people to improve border efficiency and effectiveness.  ATA is ready to work within the structure of the Security and Prosperity Partnership for North America to make this a reality, and make North America more competitive and secure.

## Questions?

- Martin Rojas
- American Trucking Associations 2200 Mill Road
- Alexandria, VA  22314
- mrojas@trucking.org
- www.truckline.org

**Notes:**
I’ll be happy to take any questions at this time, and I also invite you to visit ATA’s website for more information on the various programs and initiatives that the trucking industry is working on.

Thanks for your attention.