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24 CHAPTER 4 How Do Public Policies Affect the Freight Transportation System? Introduction information on effects was informed by an extensive litera- ture review, interviews with approximately 40 freight indus- Government policy decisions can affect the freight trans- try experts, and two focus groups. For five of the examples, a portation system in numerous ways. Many of these effects are more detailed examination of the effects of the policies is in- small, but some can be significant. Because the freight trans- cluded in Appendix B. portation system is the backbone of the U.S. economy, The research team then briefly discusses the extent to which changes in freight movement can ripple through U.S. society any effects were unexpected by the involved policymakers and and affect us in our daily lives. the extent to which understanding the effects is relevant to de- Freight system effects can be complex, and an understand- cision making. This last point--the decision-making context ing of the effects often requires at least a basic knowledge of and role of information--is discussed in greater detail in the policy context. To illustrate these effects, this chapter re- Chapter 6. views 23 government policy decisions, listed in Table 4-1. Some of these examples reflect a single law or government agency rulemaking (e.g., HOS rules for truck drivers). Other HOS Rules for Truck Drivers examples reflect a set of multiple policy decisions with a sim- Policy Description ilar objective (e.g., Federal emission standards for diesel en- gines). In a few cases, the "policy" is one of inaction rather The truck driver HOS rules have been the subject of some than action (e.g., inland waterway infrastructure investment). controversy since they were first issued in 1938 to improve Given that this research is to inform policy debates, the re- highway safety by reducing truck driver fatigue. After a sig- search team focused on examples of recently enacted policies nificant change in 1962, the rules remained largely the same (nearly all post-1990) and also some proposed policies that until 2003. During this period, the HOS rules limited opera- have not been enacted. tors of commercial vehicles to 10 hours of driving before an 8-hour rest break and an on-duty period of not more than 15 Recently enacted policies may have effects that can be ob- hours before the 8-hour break. The 15-hour "clock" would, served, or the effects may not yet be evident. In many cases, however, stop when a driver went off duty for a meal or any the effects of these policies have been projected as part of kind of short rest. Thus, the elapsed time from the start of the an impact analysis, although such analyses may not have on-duty period to the end could easily exceed 15 hours. considered the impacts on all components of the freight In 2003 the rule was modified to enhance truck safety by system. reducing fatigue. The new rule put drivers on a 24-hour cycle Proposed policies obviously do not have effects that can of on- and off-duty time, consistent with natural circadian be observed, although effects can be projected based on rhythm. The rule also reduced the on-duty hours from 15 to similar past policies. Effects may have been projected (e.g., 14 and extended the required rest period to 10 hours. Further, by the government, an affected party, or a researcher), par- and importantly, the new 14-hour on-duty clock does not ticularly for Federal government rules on safety, security, stop for an interim break. Fourteen hours after the start of an or environmental issues. on-duty period, a driver cannot drive until after a 10-hour break. The rule also increased total driving time from 10 to For each example, the research team briefly describes the 11 hours per day. The HOS rules also address total driving policy and its effects to the extent they are understood. The time in a multi-day period. Under the old rule, drivers were

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25 Table 4-1. Policy examples discussed in this section. Policy Policy Category Affected Modes Hours of Service for Truck Drivers Safety Trucking Hours of Service for Train Operators Railroads Truck Speed Limits and Governors Air cargo Aircraft Fuel Tank Flammability Rules Restrictions on Locomotive Horns TWIC for Ports and Inland Towboats Security Inland towing Alien Fingerprint Rules for Outbound Planes and Ships Ports Air cargo Federal Emissions Standards for Diesel Engines Environmental Protection Trucking California In-Use Truck Emission Standards Railroads Idling Restrictions for Trucks and Locomotives Inland towing Restrictions on Port Drayage Trucks Ports Restrictions on Disposal of Port Dredging Spoil Water Pollutant Discharge Rules for Vessels International Air Emissions Regulations for Vessels State Truck Route Restrictions Operations and Trucking Local Policies to Oppose a Railroad Acquisition Maintenance Railroads Truck Size and Weight Rules Highway Infrastructure Investment Infrastructure Investment Trucking Inland Waterway Infrastructure Investment Inland towing Highway Tolls and Other User Charges Infrastructure Finance and Trucking Lockage Fees for Inland Waterways Pricing Railroads Peak Pricing for Port Trucks Inland towing Peak Pricing for Airports Ports Air cargo limited to 60 hours of driving in 7 days and 70 hours of driv- rule and administrative action to change the rule will likely ing in 8 days. The new rule changed the method of calculat- occur in the future. ing the allowed driving time, permitting drivers to reset the multi-day periods by taking 34 consecutive hours off duty. Policy Impacts After such a break, the multi-day period restarts from zero hours, whether or not a driver has reached the limit. The The effects of the new rules vary across industry sectors. truck driver HOS rules are summarized in Table 4-2. The rule has imposed some costs on long-haul truckload (TL) The new rule generally has been accepted by the industry firms by reducing the total hours that their drivers can be on but continues to face challenges from public-interest and duty in a single stretch. Long-haul TL drivers spend a signif- labor organizations who argue that the rule compromises icant amount of time at loading docks. Under the old rule, driver health and public safety. Further legal challenges to the drivers frequently logged time waiting in a queue as off-duty Table 4-2. Summary of truck driver HOS rules. 11-Hour Driving Limit May drive a maximum of 11 hours after 10 consecutive hours off duty. 14-Hour Limit May not drive beyond the 14th consecutive hour after coming on duty, following 10 consecutive hours off duty. Off-duty time does not extend the 14-hour period. 60/70-Hour On-Duty Limit May not drive after 60/70 hours on duty in 7/8 consecutive days. A driver may restart a 7/8 consecutive day period after taking 34 or more consecutive hours off duty. Sleeper Berth Provision Drivers using the sleeper berth provision must take at least 8 consecutive hours in the sleeper berth, plus a separate 2 consecutive hours in the sleeper berth, such that the total is 10 hours.