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Transportation Updates and

Regulatory News (TURN)

A quarterly publication of the Agricultural Marketing Service

www.ams.usda.gov/rules-regulations/transportation/turn

September 2020

FMC Provides Guidance To Address 

Supply-Chain Challenges at

San Pedro Bay

On June 17, The Federal Maritime Commission 

(FMC) issued a four-part guidance to address 

supply-chain challenges at the ports of San 

Pedro Bay, CA. One part of the guidance 

recommends that truckers “should be directed 

to return empty containers to the terminal 

where they were picked up, allowing [truckers] 

to make dual moves and reduce the number of 

chassis required.” FMC also suggested terminals 

allow appointment-free returns during slow 

periods, such as nighttime, while noting that 

some terminals are already following these 

practices. Other recommendations are notices 

of cancelled sailings, timelines for receiving 

export cargo, and creation of an advisory board 

among carriers, ports, and marine terminal 

operators. The recommendations are the result 

of Fact Finding 29 discussions, in which the FMC 

is using a regional approach to alleviate freight 

challenges that have arisen because of the 

COVID-19 pandemic. 

ASCE Releases Report on the Effects of 

COVID-19 on America’s Infrastructure

On June 24, the American Society of Civil 

Engineers (ASCE) released COVID-19’s Impacts 

on America’s Infrastructure, a status report on 

the pandemic’s effects on the Nation's bridges, 

dams, inland waterways, ports, and roads. ASCE 

projects a 30-percent revenue decline in the 

next 18 months for State Departments of 

Transportation (DOTs) because of declining gas 

tax revenue. To maintain bridges, roads, and 

transit systems as safe and reliable and aid the 

Nation’s long-term economic recovery, ASCE 

recommends Congress provide $50 billion in 

immediate, short-term relief for State DOTs. 

ASCE’s recommendations to Congress include 

quickly enacting various other long-term 

infrastructure-enhancing measures as well. The 
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2021 ASCE Infrastructure Report Card will be 

released in February 2021.

California Approves World’s First 

Electric Truck Sales Mandate

On June 25, 2020, the 12-member California Air 

Resources Board (CARB) unanimously approved 

an electric truck mandate that will require 

medium- and heavy-duty truck manufacturers 

to sell a larger percentage of zero-emission 

vehicles in the State starting in 2024. The 

Advanced Clean Truck rule, the first of its kind 

in the world, establishes different sales targets 

based on the vehicle class. By 2035, about 75 

percent of Class 8 big rigs sold will need to be 

electric. According to CARB, about 8,000 trucks 

in the Southern California ports will be out of 

compliance with California emissions 

regulations by 2022.

ATRI Releases Report on the Effect of 

Large Verdict Awards on the Trucking 

Industry

On June 29, the American Transportation 

Research Institute (ATRI) released a 

comprehensive study tracking large verdict 

awards against the trucking industry and the 

awards’ effects on safety and insurance. Titled 

Understanding the Impact of Nuclear Verdicts 

on the Trucking Industry, the report took its 

data partly from ATRI’s new trucking litigation 

database containing detailed information on 

600 cases from 2006 to 2019. The researchers 

found large verdicts against trucking fleets 

increased substantially over this period, both in 

number and in size of awards. In the first 5 

years of data, there were 26 cases over $1 

million, versus 300 cases of that size in the last 

5 years of data. The research also shows, from 

2010 to 2018, verdict awards grew 51.7 percent 

annually as standard inflation grew 1.7 percent 

and healthcare costs grew 2.9 percent. The 

researchers conducted a qualitative analysis 

based on surveys and interviews with defense 

and plaintiff attorneys, as well as insurance and 

motor carrier experts. The study provides 

recommendations for modifying pre-trial 

preparations, litigation strategies, and 

mediation approaches.

FMCSA To Provide Flexibility for 

Random Drug Testing

On July 6, the Federal Motor Carrier Safety 

Administration (FMCSA) announced that it will 

exercise case-by-case discretion about whether 

or not to enforce its minimum annual 

percentage random drug-testing rates. The 

flexibility is to accommodate States’ differing 

responses to COVID-19, including different 

staffing levels and reopening timetables. The 

agency will also decide, case by case, whether 

to enforce its requirement for testing dates to 

be spread throughout the calendar year. For 

calendar year 2020, the standard required 

driver selection rates remain at 50 percent of 

employers’ average number of driver positions 

for controlled-substance testing and 10 percent 

for random alcohol testing. Late last year, 

FMCSA increased the annual random selection 

rate for drug testing from 25 percent to 50 

percent. To be considered for an exemption, 

carriers must document in writing their reasons 

for noncompliance. FMCSA stressed the current 

random testing requirements are not 

suspended, and employers who can meet them 

must continue to do so. The enforcement 

change applies to 2020, but FMCSA may also 

exercise discretion in motor carrier 

investigations occurring in 2021.

FWHA Awards $15.1 Million in Surface 

Transportation Alternative Grants

On July 9, the Federal Highway Administration 

(FHWA) awarded $15.1 million in Surface 

Transportation System Funding Alternatives 

grants. Enacted in 2015, the program supports 

States in exploring user-based revenue 

mechanisms for funding highway infrastructure 
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projects, such as miles-based user fees (MBUF) 

and road user charges. The MBUF system uses 

technology to tabulate how far a vehicle has 

traveled, which helps determine how much it is 

charged. The funding represents seven projects 

including: Delaware ($3.35 million);

Oregon ($5.25 million for two projects); 

Utah ($7.45 million for two projects);

Washington ($5.5 million); and 

Wyoming ($250,000). 

KDOT Selects 24 Transportation 

Projects for Cost-Share Awards

On July 9, Kansas State Department of 

Transportation (KDOT) announced the award of 

almost $20 million statewide for 24 projects as 

part of KDOT’s Cost Share Program. The 

program provides funding to local groups for 

transportation projects to improve safety, 

support job growth, enhance mobility, and 

relieve congestion. The selected projects 

include road improvements in Logan County 

and three bridge replacements in Kingman 

County. Given Kansas’ status as a major source 

of agricultural products, the KDOT projects 

could benefit the movement of agricultural 

products, such as wheat to elevators or millers.

Fifteen States Sign MOU To Accelerate 

Truck Electrification

On July 14, the District of Columbia and 15 

states (California, Connecticut, Colorado, 

Hawaii, Maine, Maryland, Massachusetts, New 

Jersey, New York, North Carolina, Oregon, 

Pennsylvania, Rhode Island, Vermont, and 

Washington) released a joint memorandum of 

understanding (MOU). These jurisdictions will 

work together to accelerate the market for 

electric medium- and heavy-duty vehicles, 

including long-haul delivery trucks (big-rigs). 

The long-range goal is for 100 percent of all new 

medium- and heavy-duty vehicle sales to be 

zero emission by 2050, with a provisional target 

of 30 percent of sales to be zero emission by 

2030.

FMCSA Launches Online Database for 

Reporting Drug and Alcohol Violations

On July 21, the Federal Motor Carrier Safety 

Association (FMCSA) launched an online 

database for reporting violations and other 

information about commercial driver’s license 

(CDL) holders, related to FMCSA’s drug and 

alcohol testing program. FMCSA’s CDL Drug and 

Alcohol Clearinghouse serves as a central 

location to help employers quickly identify 

drivers with possible violations of drug and 

alcohol programs. The database also helps law 

enforcement officers identify drivers with such 

violations—giving access to this information 

when drivers are stopped for traffic violations. 

FMCSA partnered with the U.S. Department of 

Transportation’s Volpe Center to design and 

develop the web system, including the 

requirements, system architecture, and user 

interface.

Survey Highlights COVID-19’s Impact 

on Owner-Operators

On July 23, the American Truck Business 

Services (ATBS)—a tax and accounting firm for 

owner-operator truck drivers—released results 

from a survey of more than 300 owneroperators to assess the impacts of COVID-19, as 

well as effects of Federal relief programs and 

relaxed regulations. ATBS found 81 percent of 

owner-operators received the Government’s 

$1,200 economic impact payment; 53 percent 

applied for a Paycheck Protection Program loan; 

and 30 percent received some other type of 

funding. Regarding relaxed regulations, a 

majority of respondents have not had to 

operate outside of normal regulations during 

the crisis. Further, 87 percent reported their 

hours have not exceeded standard hours-of 

service rules; 95 percent have not had to 
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operate with an expired CDL; and 96 percent 

have not had to haul a load above weight limits. 

Of the owner-operators surveyed, 35 percent 

experienced a decline in freight volumes of 50 

percent or more; 47 percent had a decline of 30 

percent or more; and 11 percent said freight 

was nonexistent. ATBS also found 65 percent of 

truck businesses are still operating during the 

pandemic, while 6 percent have had to furlough 

employees or independent contractors.

U.S. DOT Creates Tooklit To Help Rural 

Grant Applicants

On July 27, the U.S. Department of 

Transportation (DOT) released a toolkit

designed to help stakeholders participate in the 

Rural Opportunities to Use Transportation for 

Economic Success (ROUTES) program. The 

program aims to collect input on rural 

infrastructure needs and share user-friendly 

information on applying for DOT discretionary 

grants. Designed for applicants with varying 

levels of experience, the toolkit aims to help 

rural applicants understand and navigate DOT’s 

discretionary grant funding opportunities. 

Specifically, the toolkit outlines applicant 

requirements and sorts grant programs by 

applicant type and eligible project activities.

OOIDA Seeks a 1-Year Suspension of 

the Heavy Vehicle Use Tax

On July 30, the Owner-Operator Independent 

Drivers Association (OOIDA) in an open letter to

Congress asked for a 1-year waiver of the heavy 

vehicle use tax—an annual fee that costs about 

$550 per truck. OOIDA asserts the waiver would 

help all trucking businesses, irrespective of size. 

OOIDA’s request is posed as an alternative to 

the proposed suspension of the Federal excise 

tax of 12 percent on the purchase of new trucks 

led by the National Automobile Dealers 

Association and supported by trade groups and 

other private companies. 

TSA Extends HME Exemption for an 

Additional 90 Days

On October 16, the Transportation Security 

Administration (TSA) again extended an 

exemption that gives commercial drivers with 

expired hazardous materials endorsements 

(HMEs) additional time to initiate the agency’s 

security threat assessment (STA). Originally due 

to expire on July 31, the exemption is now 

extended through December 31, unless 

otherwise modified by TSA through a notice 

published in the Federal Register. The agency’s 

decision to extend the exemption is based on 

the continued challenges faced by State drivers 

licensing centers due to public health 

emergency and the inability to predict how or 

where the novel coronavirus may spread in the 

future. The extension will help ensure that 

drivers can continue to perform critical services 

during the pandemic. 

FMC Research Finds COVID-19 Has 

Minimal Impact on Port of NY/NJ—

More Serious Impacts in CA

On August 4, after investigating the effects of 

COVID-19 on container shipping operations, the 

Federal Maritime Commission (FMC) reported 

the Port of New York and New Jersey 

experienced only minimal difficulty in the first 

half of 2020. However, during the same period, 

the ports of Los Angeles and California 

contended with more serious disruptions. The 

San Pedro Bay port complex exemplifies many 

of California’s challenges: as a result of COVID19, the port complex faced operational 

challenges related to terminal-closure 

notifications, cancelled vessel calls, and poor 

communication of earliest return dates for 

export containers. An ongoing challenge shared 

by the West and East Coast ports is the need to 

improve chassis pickups and returns. Truckers 

would like to be able to return containers to 

one location and pick up an outbound 
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container, a process known as a “double move.” 

For FMC’s research on both the East and West 

port complexes, the agency spoke with port and 

shipping industry officials and other 

stakeholders. More information is available 

here.

New Study Finds Trucking Industry 

Key to Evaluating Fuel Tax 

Alternatives

On August 11, the Eastern Transportation 

Coalition (ETC) published a final report of its 

pilot study conducted from October 2018 to 

March 2019, to evaluate the effect on the 

trucking industry of implementing a model of 

mileage-based user fees (MBUF). Charging 

motorists for their road use instead of the 

amount of fuel they purchase, MBUF are 

advanced as an alternative to declining State 

and Federal fuel tax revenue. As the first MBUF 

research to bring a major focus to trucks, the 

ETC study surveyed over 50 tractor-trailers 

traveling more than 1.4 million miles across 27 

States. ETC’s researchers concluded the 

trucking industry’s perspective was vital in 

MBUF discussions and trucks could not be 

treated simply as “big cars” in an MBUF system. 

Likewise, the researchers concluded one rate 

for all trucks would not work. Also, the 

researchers found existing regulations provided 

guidance for implementing MBUF. Finally, the 

study identified a need for further education 

and outreach. The study can be viewed here.

Lawsuit Filed Alleging Overcharges 

and Restrictions for Chassis at Ports 

and Inland Terminals

On August 17, the American Trucking 

Associations’ Intermodal Motor Carriers 

Conference (IMCC) filed a lawsuit against the 

Ocean Carrier Equipment Management 

Association (OECMA) and 10 international 

ocean carriers. The suit alleges the defendants 

illegally colluded to manipulate the intermodal 

chassis market at dozens of ports across the 

country. Filed with the Federal Maritime 

Commission (FMC), the lawsuit seeks up to $1.8 

billion in damages. In the complaint, IMCC 

alleges OCEMA denies choice by trucking 

companies in leasing chassis. The complaint 

further contends OCEMA forces trucking 

companies to pay unjust and unreasonable 

prices. The lawsuit comes after months of 

unsuccessful negotiation between the two 

parties. FMC stated it will make a final decision 

on the case by March 10, 2022.

FMCSA Seeks Comments on Broker 

Transparency Regarding Transaction 

Records

On August 19, the Federal Motor Carrier Safety 

Administration (FMSCA) solicited public 

comments on rulemaking regarding broker 

transparency. The request for comments 

follows petitions filed by the Owner-Operator 

Independent Drivers Association (OOIDA) and 

the Small Business in Transportation Coalition 

(SBTC) to amend access requirements of certain 

records for property brokers. Among other 

requests, OOIDA asked FMCSA to require 

brokers to automatically provide carriers with 

an electronic copy of transaction records within 

48 hours of a load being completed. FMCSA 

asked for public comments on requiring that 

brokers disclose certain financial details about 

transactions to carriers and whether a 

regulatory action would solve the problem. 

Comments can be submitted here through 

November 18. Also, FMCSA held a listening 

session on October 28, to hear directly from 

truckers, brokers, and motor carrier 

stakeholders on the broker transparency 

question. The submitted comments can be 

viewed here.
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California Adopts Omnibus Rule for 

Trucks, Phasing in Lower Oxides of 

Nitrogen Levels

On August 28, the California Air Resources 

Board (CARB) unanimously voted to adopt the 

“Heavy-Duty Low NOx Omnibus Regulation”

rule. The phased-in regulation will require 

current oxides of nitrogen (NOx) levels be 

reduced from the current standard by 

approximately 75 percent starting in 2024 and 

by 90 percent in 2027. The rule requires 

California truck manufacturers to comply with 

the stricter emissions standards, overhaul 

engine testing procedures to better reflect realworld traffic conditions, and further extend 

engine warranties to ensure limited emissions 

of NOx. Trucking groups commented the new 

rule does not give manufacturers sufficient time 

to develop technologies to meet the standards, 

and that the industry will now be required to 

manufacture trucks for two different markets—

California and the rest of the country.

USDOT Guidance on the Revised 

Federal Drug Testing Custody and 

Control Form

On August 31, the U.S. Department of 

Transportation (DOT) issued guidance

discussing changes to the revised Federal Drug 

Testing Custody and Control Form (CCF) for 

administering drug tests to holders of 

commercial driver’s licenses—approved by the 

Office of Management and Budget on August 

17. Most changes adopted in the revised CCF 

were made to accommodate testing of oral fluid 

specimens, which DOT’s current drug testing 

program does not authorize. To avoid confusion 

over whether DOT’s program authorizes oral 

fluid testing and to allow supplies of old CCFs to 

be depleted, DOT recommends, as a best 

practice, that laboratories not mail any of the 

revised CCFs to DOT-regulated clients or their 

service agents until after June 1, 2021 (or until 

supplies of the old CCFs have been depleted).

FMCSA Announces Pilot Program To 

Probe More Flexibility in HOS

On August 28, the Federal Motor Carrier Safety 

Administration (FMCSA) requested comments, 

on a proposed pilot program for commercial 

driver's license (CDL) holders who meet 

specified criteria. The Split Duty Period Pilot 

Program would temporarily modify the hoursof-service (HOS) requirement that drivers of 

property-carrying commercial motor vehicles 

(CMVs) must complete all their driving within 

14 hours of their coming on duty. CMV drivers 

in the pilot would have the option to pause 

their 14-hour on-duty period (driving window) 

with one off-duty period not less than 30 

minutes and not more than 3 hours. The 

program aims to collect hard evidence on how 

to align HOS flexibility with the scheduling 

preferences of employers, shippers, and 

receivers—i.e., how to optimize productivity, 

while ensuring safety is as good as or better 

than without the HOS modification. The 

comments can be viewed here.

USDOT Releases National Freight 

Strategic Plan 

On September 4, the U.S Department of 

Transportation released its first National Freight 

Strategic Plan (NFSP). According to DOT, NFSP 

assesses the system’s current conditions and 

performance barriers, defines the agency’s 

vision and goals for the national multimodal 

freight system, and defines strategies toward 

achieving DOT’s vision and goals. NFSP emerged 

through a multiagency effort involving 

consultation with freight stakeholders in both 

the public and private sectors. DOT plans to use 

NFSP to guide national freight policy, programs, 

initiatives, and investments; inform State 

freight plans; identify freight data and research 

needs; and provide a framework for increased 

cross-sector, multijurisdictional, and 

multimodal coordination and partnerships.
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FMCSA Seeks Comments on Pilot 

Program

On September 10, the Federal Motor Carrier 

Safety Administration (FMCSA) requested public 

comments, by November 9, on a proposed pilot 

program that would allow drivers ages 18-20 to 

operate commercial motor vehicles (CMVs) in 

interstate commerce. The pilot program 

proposes to allow drivers to participate if they 

fit at least one of two categories. First, a 

participant could be an 18 to 20-year-old 

commercial driver’s license (CDL) holder who 

operates CMVs in interstate commerce while 

taking part in a 120-hour probationary period 

and a subsequent 280-hour probationary period 

under an apprenticeship program established 

by an employer. Alternatively, a participant 

could be a 19- or 20-year-old commercial driver 

who has operated CMVs in intrastate commerce 

for at least 1 year and at least 25,000 miles. The 

pilot’s drivers would not be permitted to 

operate special configuration vehicles or 

vehicles hauling passengers or hazardous 

materials.

FMCSA Extends Emergency HOS 

Waiver for Livestock and Feed

On September 11, the Federal Motor Carrier 

Safety Administration (FMCSA) extended the 

waiver on hours-of-service (HOS) requirements 

for trucks transporting livestock and feed. The 

waiver is based on the national emergency 

declared for COVID-19, and the extension is 

valid through December 31. The waiver 

specifically does not cover drivers carrying 

mixed loads with only a “nominal quantity” of a 

waiver-qualifying item.

DOT Awards $20.8 Million to St. Louis 

Bi-State Regional Ports Improvement 

Project 

On September 16, the U.S Department of 

Transportation (DOT) announced the award of 

$1 billion in grants to 70 infrastructure projects

in 44 states. These include barge loading and

rail upgrades for three ports under the St. Louis

Bi-State Regional Ports Improvement Project.

With such upgrades as new grain storage,

conveyer equipment, and additional railroad

track, the facilities will expand capacity, reduce

wait times, and attract more traffic. Known as

Better Utilizing Investments to Leverage 

Development (BUILD) Transportation

Discretionary grants, the grants fund planning

and capital investments in surface

transportation infrastructure. To better address

the needs of rural America, 50 percent of BUILD

Transportation grant funding will be awarded to

projects that benefit rural communities.

FMCSA Extends Waiver for Commercial

Driver’s License/Learner’s Permit

Holders

On September 18, the Federal Motor Carrier 

Safety Administration (FMCSA) extended its

waiver from certain regulations affecting

holders of interstate and intrastate commercial

driver’s licenses (CDL) and commercial learner’s

permits (CLP), as well as other interstate drivers

operating commercial motor vehicles (CMVs).

FMCSA originally initiated this action in 

response to the COVID-19 pandemic on 

June 9, 2020. The waiver recognizes, as part of 

States’ phased reopenings, most State Driver 

Licensing Agencies (SDLAs) have resumed only 

limited operations. These service limitations 

may hinder drivers’ attempts to renew CDLs and 

CLPs or provide SDLAs with medical certificates.

Also, because of limited operations or backlogs,

drivers may not be able to schedule physical

examinations to comply with the Federal Motor 

Carrier safety regulations. Effective 

October 1, 2020, the waiver expires on 

December 31, 2020. 
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FMCSA Launches New Panel To Collect 

Feedback on Drivers’ Concerns 

On September 18, the U.S. Department of 

Transportation’s Federal Motor Carrier Safety 

Administration (FMCSA) launched a new panel 

of its Motor Carrier Safety Advisory Committee 

(MCSAC). Hailing from all sectors of the 

commercial motor vehicle (CMV) industry, the 

panel will comprise 20 to 25 drivers, including 

tractor trailer drivers, straight truck drivers, 

motor coach drivers, hazardous materials 

drivers, and agriculture haulers. The panel will 

give FMCSA direct feedback on the driving 

community’s concerns, such as safety, hours-ofservice regulations, training, parking, and driver 

experience. The panel aims to capture the CMV 

community’s varied viewpoints and 

experiences. 

U.S. DOL Proposes Independent 

Contractor Rule

On September 25, the U.S. Department of Labor 

(DOL) announced a proposed rule to clarify the 

distinction between “employee” and 

“independent contractor” under the Fair Labor 

Standards Act (FLSA) for consistent definitions 

in public policy. DOL’s proposal would not 

immediately affect trucking companies subject 

to California’s Assembly Bill 5 (AB-5) law 

enacted earlier this year. AB-5 prohibits 

companies from using independent contractors 

unless their work is “outside the usual course of 

the hiring entity’s business.” However, because 

of a preliminary injunction granted by the U.S. 

Southern District Court in January, California’s 

AB-5 law does not yet affect owner-operators

or motor carriers. This Notice of Proposed

Rulemaking (NPRM) was available for review

and public comment through October 26, 2020. 

Filed comments may be viewed here.

FMCSA Launches Online Tool To

Answer HOS Questions

On September 29, the Federal Motor Carrier 

Safety Administration (FMCSA) launched its

Educational Tool for Hours of Service (ETHOS), 

an online tool for carriers and drivers to help

them better understand FMCSA’s revised hoursof-service (HOS) regulations, effective since

September 29. Once a driver or carrier keys in

duty-status information, ETHOS identifies

potential violations to the following HOS rules

for transporting non-passenger cargo: an 11-

hour driving limit; 14-hour driving window; 30-

minute break; and sleeper berth provision. The

website notes ETHOS does not cover the 60/70-

hour limit regulations, which have not changed

under the new rules.

Photo credits:

Truck: Burt Barnes

All other photos: USDA

USDA is an equal opportunity provider,

employer, and lender.