FYI
Visit
for late breaking news.
6 • OIL
&
ENERGY
Court Invalidates Break Requirement
for Short Haul Drivers, Citing NEFI Comments
The U.S Court of Appeals for the District of Columbia recently
handed New England Fuel Institute (NEFI) and heating oil dealers a
significant victory by vacating a key provision in the U.S. Department
of Transportation’s (DOT’s) new hours of service regulations that went
into effect on July 1. Specifically, the Court vacated the provision
requiring drivers to take a 30-minute break within the first 8 hours of
coming on duty as it applies to short-haul drivers only. Short haul
drivers are those that travel less than a 150-air mile radius from their
home base and return each day after their shift ends. In support of its
decision to vacate the 30-minute break provision, the court cited
written comments on the regulatory rulemaking submitted by NEFI.
Those comments in part read:
NEFI opposes the 30-minute break time proposal in the NPRM.
Requiring a 30-minute driver break within the first seven hours of driving
time does not result in any appreciable reduction of fatigue among short
haul heating oil and propane drivers. Unlike long haul drivers, short haul
heating oil and propane drivers are not driving lengthy uninterrupted,
monotonous stretches of limited access highways for days or weeks at a
time. Instead, these drivers are making short local runs between gas
stations, farms, homes and commercial fleet operations to deliver
product in the communities where they live. The drivers are stepping in
and out of their trucks during loading and unloading activities followed
by a sporadic period of non-driving activity and inactivity. Drivers are
waiting for fuel to drop into storage tanks, waiting in line at terminal
facilities – sometimes for several hours – to pick up product, and filling
out delivery tickets and/or bills of lading. All of these tasks are often
punctuated by stretches of time when the driver is idle and at rest. These
varied activities are stimulating rather thanmonotonous and sedative,
involve physical activity and higher brain function than would occur by
long stretches of driving time. Moreover, small business petroleum
transporters encourage drivers to take rest breaks when needed. Short
haul drivers often stop along their delivery route for coffee breaks and
lunch. These drivers have more opportunity to take rest breaks because
they operate largely on local roads rather than confined to limited access
interstate highways for long periods of time. In addition, there is no
disincentive for short haul drivers to take rest breaks since they are paid
by the hour and not the mile. Consequently, NEFI does not believe that
the proposed rest breaks are appropriate for short haul drivers since
fatigue is not a significant issue.
The court decision is a significant victory for heating oil and
propane dealers who would not only be forced to pay drivers for the
30-minute break but also lose 30-minutes from the 14-hour daily
maximum driving window within which drivers may drive no more
than 11 hours.
The court vacated the 30-minute break requirement for short haul
drivers as part of its decision on a petition by the trucking industry to
strike down the all the new HOS provisions that went into effect on
July 1, including the 34-hour restart provision. The court, however kept
in place the 34-hour restart provision, the requirement that it may only
be used once per week and must include two overnight periods
between 1:00 a.m. and 5:00 a.m. The court also left standing the
11-hour maximum daily driving time.
Mass. Congressman Wants
Greater Protections for Hedgers
When commodity futures broker MF Global went bankrupt in
October of 2011, many of its clients (including several NEFI members)
discovered that their accounts and hedging positions were not
afforded the same bankruptcy protections as other investors. Their
accounts were frozen and their hedging positions were put in
jeopardy.
For two years, NEFI has been lobbying Congress to extend to
commodity hedgers the same protections offered to securities
investors under the Securities Investor Protection Act (SIPA). U.S. Rep.
Michael Capuano (D-MA) is one of the first members to answer NEFI’s
call. On August 2nd, Rep. Capuano introduced the “Futures Investor
Protection Act,” which would insure the accounts of small futures
investors and commodity hedgers in the event of a broker failure and
would provide trustees a level of authority and discretion that is
comparable to what they currently only have in securities cases. NEFI
has expressed support for the Congressman’s efforts and is working
closely with his Washington staff.
FMCSA Proposes to Eliminate Significant
Paperwork Burden on CDL Drivers
The DOT’s Federal Motor Carrier Safety Administration (FMCSA)
recently announced a proposal to eliminate a burdensome daily
paperwork requirement for CDL drivers that will reduce regulatory
costs for all heating oil dealers.
Current federal regulations require commercial truck drivers to
conduct pre- and post-trip equipment inspections and keep on file
Driver Vehicle Inspection Reports (DVIRs) after each inspection,
regardless of whether or not an issue requiring repairs is identified.
DVIRs are the 19th-highest paperwork burden, based on the number
of hours needed to comply, imposed across all federal agencies.
A recent FMCSA study noted that the paperwork burden is not
justified given that only 5 percent of reports filed include defects.
Under the proposed change, commercial truck drivers would continue
conducting pre- and post-trip inspections. However, DVIRs would be
required only if defects or deficiencies were discovered by or reported
to the driver during the day’s operations.
Federal regulations require that every commercial vehicle in the U.S.
undergo a thorough annual safety inspection conducted by a certified
commercial vehicle mechanic. In addition, state and federal inspectors
CONTACTS:
Michael Trunzo, President & CEO:
Jim Collura, NEFI Vice President for Government Affairs:
Mark S. Morgan, Esq., New England Fuel Institute Regulatory Counsel:
Continued …
