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Regulatory Evaluation of the 2020 Hours of Service Final Rule

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Regulatory Evaluation of the 2020 Hours of Service Final Rule Regulatory Evaluation of the 2020 Hours of Service Final Rule Regulatory Impact Analysis Regulatory Flexibility Act Analysis Unfunded Mandates Analysis By Regulatory Evaluation Division Federal Motor Carrier Safety Administration February 2020 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................................ i LIST OF TABLES ..................................................................................................................................... iii ABBREVIATIONS, ACRONYMS, AND SYMBOLS ........................................................................... iv EXECUTIVE SUMMARY ....................................................................................................................... vi 1. INTRODUCTION ........................................................................................................................... 10 1.1 BACKGROUND AND DESCRIPTION OF THIS FINAL RULEMAKING ........................ 10 1.2 LEGAL BASIS FOR THE RULEMAKING .......................................................................... 15 2. REGULATORY ANALYSIS ......................................................................................................... 16 2.1 EXECUTIVE ORDER 12866 (REGULATORY PLANNING AND REVIEW) ................... 16 2.2 IDENTIFICATION OF THE PROBLEM AND THE NEED FOR THE RULE ................... 16 2.3 SCOPE AND PARAMETERS OF THE ANALYSIS ............................................................ 17 2.3.1 Presentation of Figures ............................................................................................... 17 2.3.2 Labor Costs ................................................................................................................ 17 2.4 BASELINE FOR ANALYSIS ................................................................................................ 21 2.4.1 CMV Drivers .............................................................................................................. 21 3. COSTS OF THE FINAL RULE .................................................................................................... 25 3.1 30-MINUTE BREAK .............................................................................................................. 26 3.1.1 Overview .................................................................................................................... 26 3.1.2 Cost Impacts of the Preferred Alternative .................................................................. 27 3.1.3 Cost Impacts of Alternative 1 ..................................................................................... 33 3.2 SLEEPER BERTH .................................................................................................................. 34 3.2.1 Overview .................................................................................................................... 34 3.2.2 Cost Impacts of the Preferred Alternative .................................................................. 34 3.2.3 Cost Impacts of Alternative 1 ..................................................................................... 35 3.2.4 Cost Impacts of Alternative 2 ..................................................................................... 36 3.3 SHORT-HAUL OPERATIONS .............................................................................................. 36 3.3.1 Overview .................................................................................................................... 36 3.3.2 Cost Impacts of the Preferred Alternative .................................................................. 36 3.3.3 Cost Impacts of Alternative 1 ..................................................................................... 38 3.4 ADVERSE DRIVING CONDITIONS ................................................................................... 38 3.4.1 Overview .................................................................................................................... 38 3.4.2 Cost Impacts of the Preferred Alternative .................................................................. 38 3.5 FEDERAL GOVERNMENT ERODS SOFTWARE UPDATE COSTS ............................... 40 i 3.6 TRAINING COSTS ................................................................................................................ 40 3.6.1 Driver Training Costs ................................................................................................. 40 3.6.2 FMCSA Training Costs and State Partner Transfers ................................................. 41 3.7 TOTAL QUANTIFIED COSTS ............................................................................................. 43 3.8 NON-QUANTIFIED COSTS ................................................................................................. 44 4. BENEFITS ....................................................................................................................................... 45 4.1 30-MINUTE BREAK .............................................................................................................. 46 4.1.1 Safety Benefit Impacts of the Preferred Alternative .................................................. 46 4.1.2 Safety Benefit Impacts of Alternative 1 ..................................................................... 49 4.2 SLEEPER BERTH .................................................................................................................. 50 4.2.1 Safety Benefit Impacts of the Preferred Alternative .................................................. 50 4.2.2 Safety Benefit Impacts of Alternative 1 ..................................................................... 55 4.2.3 Safety Benefit Impacts of Alternative 2 ..................................................................... 55 4.3 SHORT-HAUL OPERATIONS .............................................................................................. 55 4.3.1 Safety Benefit Impacts of the Preferred Alternative .................................................. 55 4.3.2 Safety Benefit Impacts of Alternative 1 ..................................................................... 57 4.4 ADVERSE DRIVING CONDITIONS ................................................................................... 57 4.4.1 Safety Benefit Impacts of the Preferred Alternative .................................................. 57 4.5 HEALTH IMPACTS ............................................................................................................... 58 4.6 TOTAL BENEFITS ................................................................................................................ 59 5. REGULATORY FLEXIBILITY ACT ANALYSIS .................................................................... 60 6. UNFUNDED MANDATES REFORM ANALYSIS ..................................................................... 63 7. EXECUTIVE ORDER 13771 (REDUCING REGULATION AND CONTORLLING REGULATORY COSTS) ............................................................................................................... 64 8. BIBLIOGRAPHY ........................................................................................................................... 65 ii LIST OF TABLES Table ES-1. Total 10-Year and Annualized Costs of the Final Rule (in millions of 2018$) ........... vii Table 1. Wage Rates for CMV Truck Drivers ................................................................................. 21 Table 2. CMV Driver Counts ........................................................................................................... 25 Table 3. Driver Groups by Intensity of Schedule ............................................................................. 29 Table 4. Estimated Driver Population by Driver Group ................................................................... 29 Table 5. Potential Total Hours Saved per Shift by Driver Group in 2021 ....................................... 30 Table 6. Annual Number of Affected Shifts per Driver, by Driver Group, in 2021 ........................ 31 Table 7. Total Annual Hours Saved by Driver Group in 2021 ........................................................ 31 Table 8. Total and Annualized Motor Carrier Cost Savings due to Changes in Break Provision ... 33 Table 9. Estimated Training Hours, 2020 ........................................................................................ 41 Table 10. Estimated Training Cost, 2020 ......................................................................................... 41 Table 11. Estimated Travel Costs for Training, 2020 ...................................................................... 42 Table 12. Total Training Costs, 2020 ............................................................................................... 42 Table 13. Estimated Total Costs for Training, 2020 ........................................................................ 43 Table 14. Total 10-Year and Annualized Costs of the Final Rule (in millions of 2018$) ............... 44 Table 15. Percent and Number of Small Firms in Affected NAICS Sectors ................................... 62 Table 16. Weighted Annual Per-Driver Cost Savings of the Changes to the 30-Minute Break Requirement ..................................................................................................................... 63 iii ABBREVIATIONS, ACRONYMS, AND SYMBOLS 1935 Act Motor Carrier Act of 1935
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