12. 2024 Bob Russell TruckPAC Golf Tournament 30. Recruiting the Next Generation of Truck Drivers INSIDE THIS ISSUE: ADVOCATING, EDUCATING, AND PROMOTING THE TRUCKING INDUSTRY OREGON TRUCK DISPATCH ISSUE 3 | 2024
A publication of the Oregon Trucking Association, Inc. 4005 SE Naef Rd., Portland, OR 97267 503.513.0005 • 888.293.0005 Fax: 503.513.0008 • www.ortrucking.org Jana Jarvis President/CEO [email protected] Christine Logue Vice President of Operations [email protected] Gregg Dal Ponte Director of Regulatory Compliance [email protected] Adam Williamson Director of Training & Development [email protected] Ligia Visan Director of Accounting [email protected] Christa Wendland Communications Consultant [email protected] Jennifer Sitton Communications Consultant [email protected] Mark Gibson Government Relations Policy Advisor [email protected] For information about OTA events and to register online, visit www.ortrucking.org. Published for OTA by Big Red M www.bigredm.com Design Hope Sudol Advertising Sales Ronnie Jacko For information about advertising in the Oregon Truck Dispatch, please contact Ronnie Jacko at 503.445.2234 or [email protected]. Thank you, advertisers! Your support makes this publication possible. Please support them and tell them you saw them in the OTA Dispatch. 2 OTA Chair’s Message 3 OTA New Members 6 OTA President’s Message 7 Event Calendar 8 OTA in Action Issue 3 2024 CONTENTS Stay Connected With Us @OTAOregon Oregon Trucking Association @ORTrucking @ORTrucking.org Events 1 2 2024 Bob Russell TruckPAC Golf Tournament 1 4 Buy a Truck Driver Lunch Featured 1 6 Join the Technology & Maintenance Council for the 2024 Maintenance & Education Fair! 17 FLSA Exemption— Changes Start July 1, 2024 1 9 Joint Committee on Transportation Hosts Listening Tour on State Transportation Priorities 2 1 Renewable Diesel Offers a Lower Cost Catalyst for Decarboniation 2 4 Heather Taksdal Helps Develop Unique Solutions to Driver Shortages in Tillamook County Safety 30 Recruiting The Next Generation of Truck Drivers
Oregon Trucking Association, Inc. Oregon Truck Dispatch 2 Evan Oneto OTA Chair THE ROAD AHEAD IS A BUSY ONE FOR OTA AS I SIT down to write this column, my final one as Chair of OTA, I struggle to find the words to summarize all of the things that I have learned about our association during my tenure as Chair in order to try and convey those insights to our membership, so that future leaders can take up the mantle to continue to lead our association down a successful path. I suppose the old refrain is true as it relates to positions like the one I now leave behind: “About the time you start to learn what you need to know; it is about time to leave.” Having been thrust into the weeds of trucking policy and politics in the state, as well as the daily operations of our association for the past two years, there is so much that leaves me interested, curious, and at times worried, but also passionate about our industry and association that I wish to convey to all of you. But in the interest of brevity, clarity and readability, I think what may be most helpful is to turn to an old tool I first picked up in my college years—a SWOT (strengths, weaknesses, opportunities, threats) analysis of our association. Here goes: Strengths: First and foremost, it is our membership. We have a compelling story to tell, are vital to Oregon’s economy and job market, have incredible expertise in our respective sectors, and we live and work in every community in Oregon. But we are also small enough as a state and as an association that we know each other personally, and we can pull together to fight for a common goal. We have proved this one more than once—whether it’s advocating in halls of the Capitol to defend our industry or coming together to address something that needs fixing in our association. When Oregon truckers get together, we can make stuff happen. That is followed by a close second in our staff. I represent FedEx in a dozen state trucking associations, and I can say we have top-notch staff at OTA who are truly invested in our industry and our membership. Our advocacy, safety training, and regulatory expertise, as well as event planning, is first in class, just to name a few services they provide. Weaknesses: Time, resources, and participation. While we have a superb membership and staff—we could use more of both to fight for our industry. Since deregulation, the average trucking association on average only represents about 10% of the number of registered carriers in their state. And while, of course, many of those registrations belong to owner-operators, the fact is that there are still many sizable carriers that simply do not participate in our association. If you’re an active member of OTA, you already know the many benefits of membership, but communicating that value to non-members is a continual challenge. OTA is fighting hard every day on issues critical to our industry—but the problem of free riders benefitting from the efforts of dues-paying members is real, and we must all do our part to get these carriers off of the sidelines and join in helping to defend and promote our livelihood. I know truckers are busy and budgets are tight—but I can tell you this, our opponents do not seem to lack for want of membership participation. As a member whose largest base of operations is in the Portland area, I suppose I consider myself a “Portland member” of OTA. We in Portland also face the most regulation and taxation of any carriers in the state. And being the state’s main population base, we of course have the largest number of carriers based in the city, and yet Portland is often where we struggle to get more members to join OTA and get current members more involved. I have noticed this trend throughout my region—the same paradox is true in Boise, Seattle, Los Angeles, etc. It is my hope that with everyone’s help we will get more carriers from the state’s most populous (and politically influential) region to join OTA and make their voices heard. We are the sleeping As you can plainly see, the road ahead for OTA is a busy one, I hope I will see you on it, driving together to achieve a common victory. As the world saw during the COVID pandemic, together, there isn’t anything truckers can’t do.
www.ortrucking.org 3 Issue 3 | 2024 EXECUTIVE COMMITTEE Chair & ATA State VP Evan Oneto (FedEx) Vice Chair Erik Zander (Omega Morgan) Secretary/Treasurer Bart Sherman (Sherman Bros. Trucking) ATA State VP Nick Card (Blackwell Consolidation) Past Chair Andy Owens (A&M Transport) ISI Rep Diane DeAutremont (Lile Int. Co.) Chair Appointee Ron Riddle (Leavitt’s Freight Service) DIRECTORS-AT-LARGE Greg Galbraith (Market Express) Heather Hayes (Tradewinds Trans.) David Hopkins (TP Trucking) Charles Ireland (Ireland Trucking) Jeff Lorenzini (Old Dominion Freight Lines) Regional Representatives Central Oregon Ron Cholin (Stinger Transport) Eastern Oregon Roni Shaw (Bowman Trucking) Metro Region Tim Love (Carson Oil Co.) Southern Oregon Ryan Hutchens (F.V. Martin Trucking) Willamette Valley Dale Latimer (Ram Trucking) COUNCIL REPRESENTATIVES Safety Management Council (SMC) Jennifer King (WHA Insurance) Technology & Maintenance Council (TMC) Nicole Hawks-Morse (Kool PAK) Standing Committee Representatives Allied Trevin Fountain (Cummins) Government Affairs John Barnes (TEC Equipment) Highway Policy Kirk Watkins (Walmart) Image Michael Card (Combined Transport) Membership Nick Card (Combined Transport) Oregon TruckPAC Erik Zander (Omega Morgan) OTA in Action Mark Gibson (Siskiyou Transportation) Workforce Billy Dover (Tyree Oil) COMMITTEES Allied Government Affairs Highway Policy Image Membership Oregon TruckPAC OTA in Action Workforce To learn more about the committees or councils listed above, contact OTA at [email protected] or 503.513.0005. 2023/2024 BOARD OF DIRECTORS OTA Welcomes the Following New Members! All members are listed in our online directory via the member portal. Castrol Lubricants Easier Moving LLC Love’s Travel Stops & Country Stores, Inc. Mike Watters Excavation Nikola Corporation VK Delivery and Storage LLC giant of any metro’s economy. It is time to wake up our fellow truckers. In addition to getting non-members to join, we must also do better at giving time to association activities when needed. As excellent as our staff is at defending our interests, I have learned that there is no substitute for hearing from truckers themselves when advocating on an issue. Likewise, it is imperative that our members participate in our committees to inform staff of issues impacting our industry and provide feedback on ideas and strategies on how to address them. Our staff is sensitive to the busy schedules of our members, so when they call or email asking you to participate in a committee meeting or send out an OTA In Action alert requesting you to contact your legislators about a bill, it is because it is important, and our level of involvement could very well decide the outcome on important decisions that affect us. Opportunities: Due to the hard work of OTA staff and leadership, OTA stands at the precipice of some major potential victories. After many years of advocacy, the I-5 Bridge over the Columbia River recently received an infusion of federal money to help pay for the cost of construction. The bi-state commission in charge of the project is getting closer to settling on a final design with construction slated to begin in 2026. Likewise, seven years after the passage of HB 2017, the historic transportation package, construction has finally begun to improve the I-205 Abernathy Bridge and Oregon recently received environmental review approval from the Federal Highway Administration for the I-5 Rose Quarter Improvement Project along with a nearly half billion-dollar federal grant to assist in the construction costs. But due to rising costs, more funds will be needed to complete the project. Which brings us to the need for another transportation package, as ODOT has laid out their dire financial position in recent statewide hearings of the Joint Transportation Committee. It’s no secret that trucking’s support will be key in a future transportation package. And, obviously, as an industry that relies on an efficient and well-maintained highway system, we have a vested interest in seeing ODOT succeed. However, this juncture also brings to light some disparities that need addressing as well as some opportunities for reform. By 2025, Oregon trucks are on schedule to have overpaid nearly $600 million in taxes relative to passenger vehicles. Under Oregon’s State Constitution, light and heavy vehicles are required to pay in “fairness and proportionality” to the costs they impose on the state highway system. Yet, due to the Legislature’s choice to willfully ignore their statutory obligation to address this growing imbalance as reported in the Highway Cost Allocation Studies of the last two biennium, and in spite of OTA’s ongoing pleas to fix it, this disparity has only grown. As a last resort, OTA made the solemn decision to sue the State of Oregon and the Legislature for failure to redress the problem.
4 Oregon Trucking Association, Inc. Oregon Truck Dispatch It is my sincere hope that Oregon leaders come to their senses and voluntarily resolve the issue, rendering the lawsuit unnecessary. But until then, OTA must continue this important fight on behalf of its membership—especially in light of a new potential revenue package that could further deepen this disparity if not addressed. The prospect of a new transportation package also brings with it the opportunity to reform Oregon’s outdated weight-mile tax. As the last state in the union without any fuel tax on trucks, and with over seven dozen categories that carriers must calculate under this scheme, Oregon has an opportunity to reform this Byzantine law and in the process greatly reduce administrative costs as well as to capture evasion by out-of-state trucks who simply fail to accurately report their tax liability. Lastly, Oregon, via an executive order by former Governor Kate Brown, was Chair Message, cont. among the first states to approve the California Air Resource Board’s latest truck regulations, mandating an increasing percentage of trucks sold to be electric over the course of a short timeline. However, the legality of this order has been questioned in court by the business community, as it is the only state to attempt to adopt the rules without legislative approval. OTA has been vocal in informing decisionmakers of the impossibility of these rules—not only are they legally dubious, more importantly they are logistically impossible, and OTA is encouraging Oregon leaders to pursue a more practical course when attempting to reduce on-road emissions. Each of these issues represents a major opportunity for our industry, but without an active and involved membership that supports the association with their time and money, we could face further delay or failure. Threats: By now, I believe the threats to our industry should be self-apparent to the reader. Every missed opportunity or unchecked weakness has the potential to become a threat. We face an environmental and bike/ped lobby that is unparalleled in their aggressiveness and influence and that have made it their mission to reduce trucks on the road through any disincentive possible and to take more of our highway revenue and spend it on their projects. And they have many friends and sympathizers in government positions. We face a Legislature (as of yet) unwilling to rebalance our tax burden and reduce our overpayments—at a time when our industry is already struggling economically. We face labor unions and trial attorneys that seek to make our business more litigious, burdensome, and costly. We face a bureaucracy eager to impose environmental regulations on trucking that are virtually guaranteed to fail, but not before untold damage is done to our industry. We face growing bottlenecks on critical freight routes, with projects running behind schedules, over budget, and underfunded. And that’s just to name a few. But each of those also pose an opportunity for victory—if we all pitch in. I hope this analysis serves as a call to arms and somewhere in it you find an issue that enlivens you enough to get in the fight. There is much to be wary of in the months and years ahead, but also much to be hopeful about. As you can plainly see, the road ahead for OTA is a busy one, I hope I will see you on it, driving together to achieve a common victory. As the world saw during the COVID pandemic, together, there isn’t anything truckers can’t do. It has been my distinct honor and pleasure to serve as your Chair and represent this association on your behalf these last two years. But I’m even more excited for what lies ahead. I’ll see you down the road. Evan
5 www.ortrucking.org Issue 3 | 2024 WILL YOU JOIN THE MISSION? Help the Oregon Trucking Association fill a truckload of wreaths to honor our nation’s heroes! SPONSOR A WREATH TODAY!
6 Oregon Trucking Association, Inc. Oregon Truck Dispatch FROM THE PRESIDENT Jana Jarvis OTA President/CEO MOST OREGON LEGISLATIVE sessions have a theme, with priority policy issues announced in advance. For 2023 and 2024, it was housing and homelessness. In 2025, leadership has stated that it will be transportation. What that means for the legislative session has yet to be determined, but what we do know is that the Legislature’s Joint Transportation Committee is spending the summer and fall traveling the state and sharing their message that there simply isn’t enough money to complete the projects outlined in HB 2017 from the 2017 legislative session—or even enough dollars to do general upkeep and maintenance of our transportation infrastructure. That message, set against the background that there is an imbalance in what cars and trucks are currently paying, creates a large challenge to finding an agreeable solution in 2025. You are likely asking why there is any issue with general maintenance and upkeep of our transportation system. The gas tax is the highest it has ever been, along with the rates in our weightmile system. So why is ODOT so broke? Oregon is one of the only states that doesn’t rely on general fund revenue to support our transportation infrastructure. For decades, roads and bridges have been paid for with Highway Trust Fund revenue along with federal funding that often comes with limitations on how those dollars can be used. Projects used to be paid as they were built, but for the past couple of decades, ODOT has been bonding capital construction costs and their indebtedness has grown exponentially. Often, when transportation packages pass, they also come with spending limitations specifying what projects will be built or where those dollars may be spent, so general maintenance of our current infrastructure becomes an afterthought. On top of that, we find ourselves constrained with contradictory policies. The push for fuel efficiencies to support our environmental goals means that while our tax rates per gallon have risen, the amount of gallons of fuel we purchase today is significantly less than what we purchased a few decades ago. Most Oregonians think they spend a great deal more on our roads than they actually do—the average cost to use Oregon roads is now about $200 per year. That, coupled with significant cost increases in both labor and materials, means that we are actually spending far less on roads per person than we did in the 1980s. Of course that is NOT the case for heavy vehicles. The trucking industry has been paying a per-mile rate since the 1940’s with our very complicated weight-mile tax. Efforts to extend that philosophy of taxation have been percolating at ODOT for the past 20 years with their voluntary Vehicle Miles Traveled (VMT) for passenger vehicles. But few Oregonians are interested in having their mileage tracked and the system itself is expensive to administer. In the conversations we had around transportation spending during the 2017 legislative session, we recognized that the push for increasing fuel efficiencies, along with the desire to move to a zero-emission future, would greatly diminish ODOT’s buying power. Some of the large projects identified in HB 2017 weren’t funded, such as the I-205 project upgrading the Abernethy Bridge and adding a third lane from it to Stafford Road. Some projects had identified funding, but the cost estimates for those projects were inaccurate. The Rose Quarter Project was supposed to come in around $500M—but the project as it has been redesigned is now costing close to $2B. And the dedicated funding for that project was redirected in order to start construction on the Abernethy Bridge which was a project that was ready to go. The Rose Quarter project was still mired in controversy from local governments whose approval was necessary to begin construction. As we negotiated on HB 2017, we recognized that additional funding would be required to complete all of the projects identified. Tolling had been identified as an additional source of transportation funding as far back as 2006 but had not been defined in its application. Was it simply to support the cost of construction and then be removed when those costs had been met? Was it designed Transportation Planning There has never been a better time for you to get involved with your trucking association and help us find more workable solutions to your ability to buy and use your trucks efficiently.
7 www.ortrucking.org Issue 3 | 2024 ADVOCATING, EDUCATING, AND PROMOTING THE TRUCKING INDUSTRY EVENTS UPCOMING EVENTS for use on some lanes to allow payers to move through the system faster or was it to be implemented on all lanes in a defined corridor? Did the cost vary by time of day or day of week? What did we mean by tolling? ODOT carefully convened a workgroup to discuss what tolling should look like in Oregon, but the parameters were already defined in what we discussed. As it moved forward, congestion pricing was designed for two goals: 1. To manage congestion by applying varying rates by time of day; and 2. To create a revenue source to pay for the project. Since ODOT had redirected the Rose Quarter funds to the Abernethy Bridge, that meant that tolling would first be applied on the I-205 section of freeway running from Oregon City to Tualatin. Residents in that region reacted strongly by objecting to that strategy and the governor responded by pulling tolling off the table for the foreseeable future. So, once again, ODOT has a large budget hole. On top of ODOT’s budgetary woes was the realization that the rates applied to the heavy vehicle sector were grossly out of balance and that trucking was overpaying their fair share. Additionally, cars were underpaying, and the most recent Highway Cost Allocation Study indicates that the overpayment is in the range of 32% while the underpayment is close to 8%. This imbalance has been growing over the last three biennium, but the Legislature has felt constrained by ODOT’s budget woes and has chosen to wait for the next transportation package to fix this. It can only be fixed legislatively—so OTA made the decision earlier this year to file a lawsuit against the state to encourage them to expedite a solution. That lawsuit has been filed and is currently in process. Much of ODOT’s concerns around funding are based on an ever-increasing rate of electric vehicle adoption. While HB 2017 increased the registration fees for EV’s and Hybrids, the rate is insufficient to account for their impact on Oregon’s roads. The rate of EV adoption has slowed considerably, while at the same time Oregon DEQ has adopted the California Air Resources Board (CARB) rules around mandating zero-emission trucks in the medium and heavy-duty vehicle categories. Starting January 2025, truck dealerships will be severely constrained in their ability to sell you a new Clean Diesel Truck if they haven’t sold an appropriate percentage of battery electric trucks—in all class sizes! The dealer community is stating that they will be unable to sell trucks in Oregon starting next year. How that accomplishes Oregon’s goals of transitioning to cleaner emissions is the question. And even if you are able to purchase a Clean Diesel truck—you will be limited in what engine configuration you can purchase because DEQ also adopted California’s Omnibus NOx rules which limits what engines can be sold. It’s going to be a bumpy road ahead for the trucking industry. We are working consistently to help policymakers understand what their agencies have enacted. These policies did not come out of legislative proposals but are based on older clean air regulations from years past. We have also been working consistently to help you understand what lies ahead. There has never been a better time for you to get involved with your trucking association and help us find more workable solutions to your ability to buy and use your trucks efficiently. Become a Key Contact to your legislator on our behalf. Write a TruckPAC check to help us get business friendly legislators elected. Financially support our Legal Fund by donating funds. Get involved in our committee structure to provide us your perspective. Support our training opportunities and attend our meetings. There are any number of things you can do to help. We are in this together.
8 Oregon Trucking Association, Inc. Oregon Truck Dispatch Mark Gibson, Chair OTA in Action Committee/ President, Siskiyou Transportation AS THE 2025 legislative session approaches and with elections on the horizon this fall, it is imperative for members of the Oregon trucking industry to engage actively in the legislative process and make our voice heard. OTA in Action, a longstanding committee we have utilized over the past several years will be more important this coming year than ever before. All OTA members must recognize the increasing significance of industry involvement in shaping future policies and funding decisions. We find ourselves faced with multiple challenges. The Oregon Department of Transportation (ODOT) is in the midst of a substantial funding shortfall. With critical projects from HB 2017 still pending, a likely proposed transportation funding plan, and OTA’s pending lawsuit against the state are just a few things that highlight the need for proactive participation in the legislative process. It is important that all companies and families that derive their income from trucks understand it is our responsibility to be proactive in advocating for policies and funding that will benefit, yet not create financial hardship for our industry. Getting involved with OTA in Action offers an opportunity to influence the upcoming legislative session. By actively participating in discussions, advocating for funding solutions, and providing insights based on real industry experience, members can contribute to shaping a legislative agenda that aligns with the needs and concerns of the trucking community. OTA is the voice of the Oregon trucking industry and OTA in Action helps our members to step forward and be part of the solution. There are several ways to get involved and make a tangible impact. 1. Attend a Statewide JCT Hearing. First and foremost is the need for legislators to hear our concerns and needs. We have that opportunity now through the Joint Committee on Transportation’s (JCT) “State Transportation Conversations Across Rural and Urban Communities for 2025 Package.” The JCT is holding 12 meetings across the state for the purpose of discussing transportation funding in the 2025 legislative session. They are asking for public testimony on local and regional needs as well as gathering input about how to address the funding challenge. This is a perfect opportunity for truckers to speak up. As of the submission of this article, there have been four meetings: one in Portland and the others in Tillamook, Albany, and Eugene. As you can imagine, the environmental advocacy groups were present and vocal, as well as the No More Roads lobby. There are members of the bike/pedestrian community, as well as local government leaders, all competing for funding and all with differing ideas of how to fund the system. We also had dedicated member trucking companies that participated and helped reaffirm the concerns of the trucking industry. As we all know, there is a great deal of competition for dollars at ODOT. Trucking strives to not only increase capacity but also to maintain it. We still haven’t seen what was promised out of HB 2017 in terms of the I-5 Rose Quarter Project. Oregon truckers pay the highest taxes of any state in the nation. And as I am sure you are aware, we have been GETTING INVOLVED IN THE LEGISLATIVE PROCESS: A VITAL CALL TO ACTION The call to action is clear: join OTA in Action, be part of the solution, and help shape a legislative agenda that reflects the needs and aspirations of the trucking industry.
9 www.ortrucking.org Issue 3 | 2024 paying more than our fair share. Jana or I will be contacting some of you to participate in the remaining JCT sessions slated throughout the state. 2. Engage With Legislators. Building constructive relationships with legislators is essential for conveying the industry’s perspectives and priorities. OTA in Action provides a platform for establishing direct lines of communication with lawmakers, enabling members to articulate their concerns and offer viable solutions. If you are already in contact with a legislator, please let OTA know about your relationship. 3. Develop a Relationship with Your Legislator. If you haven’t yet built a relationship with your local representative, contact OTA and we can help you facilitate a relationship. As the momentum builds towards the 2025 legislative session, the time to act and shape the future is now. Together, through concerted efforts and proactive engagement, the trucking industry can play a pivotal role in influencing legislative decisions and securing a more robust and sustainable future for all stakeholders. OTA in Action serves as a beacon of opportunity for industry professionals to actively participate in the legislative process, advocate for vital funding, and work towards the realization of impactful industry initiatives. The call to action is clear: join OTA in Action, be part of the solution, and help shape a legislative agenda that reflects the needs and aspirations of the trucking industry. Let’s seize this opportunity to drive positive change and position the industry for a thriving future. There is no voice as powerful to a lawmaker than that of a taxpayer.
10 Oregon Trucking Association, Inc. Oregon Truck Dispatch
11 www.ortrucking.org Issue 3 | 2024 www.bigredm.com Advertise to Support Your Association! Contact us today! Ronnie Jacko | 503-445-2234 | [email protected]
12 Oregon Trucking Association, Inc. Oregon Truck Dispatch Golfers, sponsors, and volunteers joined the OTA at Langdon Farms Golf Club in Aurora on July 23 for the 2024 Bob Russell TruckPAC Golf Tournament. This annual event helps fund the fight for Oregon’s trucking industry, ensuring that OTA’s government affairs team has the necessary tools and resources to take on special interest groups and policies that would fundamentally alter how Oregon trucking companies operate. Not only does the event help support OTA’s advocacy work, it’s also a fun opportunity to network with fellow members! The event included lunch with all attendees, a legislative update, and a raffle drawing. All proceeds from the day go directly to the TruckPAC fund. Thank you to all our golfers, sponsors, and donors for making the 2024 TruckPAC Golf Tournament a success and congratulations to this year’s winners! EVENTS 2024 BOB RUSSELL TRUCKPAC Golf Tournament 12 Oregon Trucking Association, Inc. Oregon Truck Dispatch
13 www.ortrucking.org Issue 3 | 2024 2024 Winners 1ST PLACE GROSS Papé—Brett Whitaker, Steve Annis, Fred Banks, and Austin Montoya 1ST PLACE NET Wilcox & Flegel— Dan Oester, Jay Medley, Rick Graichen, and Carson Williquette CLOSEST TO THE PIN Kevin Blakney (TEC) LONGEST DRIVE Mark Mathews (HUB/Ward Insurance)
14 Oregon Trucking Association, Inc. Oregon Truck Dispatch ORTRUCKING.ORG PLEASE GO TO ORTRUCKING.ORG TO DONATE OTA’S TRUCK DRIVER APPRECIATION WEEK! JUST $10 BUYS A DRIVER LUNCH. THE MORE WHO CONTRIBUTE, THE MORE WE CAN DISTRIBUTE! HELP US THANK OUR DRIVERS FOR THE WORK THEY DO EVERY DAY TO KEEP FOOD ON OUR TABLES, CLOTHES ON OUR BACKS, AND GOODS MOVING WHERE THEY NEED TO GO. EVERY YEAR, THE TRUCKING INDUSTRY COMES TOGETHER TO CELEBRATE OUR DRIVERS DURING NATIONAL TRUCK DRIVER APPRECIATION WEEK. THROUGHOUT THE WEEK, WE EXPRESS OUR THANKS FOR THE MORE THAN 3.6 MILLION PROFESSIONAL TRUCK DRIVERS WHO WORK TIRELESSLY TO DELIVER ESSENTIAL GOODS AND RESOURCES TO COMMUNITIES ACROSS THE COUNTRY. OTA WILL BE THANKING THE MORE THAN 22,000 HEAVY AND TRACTOR-TRAILER TRUCK DRIVERS IN THE STATE BY HANDING OUT FREE BOXED LUNCHES TO DRIVERS AT TRUCK SCALES AND WEIGH STATIONS THROUGHOUT THE STATE THE WEEK OF SEPTEMBER 16. DONATE: WE NEED YOUR HELP TO FUND THIS ANNUAL CELEBRATION OF OUR TRUCK DRIVERS!
15 www.ortrucking.org Issue 3 | 2024 In Remembrance: Bill Call (1926–2024) Reddaway’s Richard William Call, always known as “Bill Call” passed away on July 14, 2024. Bill was born in Tillamook in 1926 and enlisted in the U.S. Marine Corps in January 1944, during World War II. He was discharged from active duty in 1951 but continued to serve in the reserves until August of 1956. In 1951, Bill went to work at Pierce Freight Lines as an over the road truck driver. That is where he met his wife, Dolores Morgareidge, who also worked there. They married in 1952 after a two-month courtship. Bill continued to work for the company over the next almost 20 years and worked his way up to General Manager. He left the company in late 1970 to pursue his dream of owning his own business. In early 1971, Bill and his wife, Dolores, purchased Reddaway Truck Line in Oregon City, Ore., a very small local trucking company. He then built it over the next 18 years into the largest regional trucking company on the West Coast. A private military graveside service was held at Willamette National Cemetery on July 24.
16 Oregon Trucking Association, Inc. Oregon Truck Dispatch AS ANYONE IN the trucking industry knows, it’s our fleet managers and service technicians who keep things (literally) running. Which is why it’s so important for them to be up-to-speed on the latest technology and equipment, as well as to keep their routine maintenance knowledge and skills current. The OTA’s annual Technology and Maintenance Council (TMC) Maintenance & Education Fair offers technicians a full-day crash course in best practices and the latest information on maintenance to ensure they can keep their fleet in top condition and their trucks out on the road where they need them. The event includes workshops and presentations from top industry suppliers, manufacturers and others. In addition to the workshops and speaker portion of the day, we also invite our allied members who have relevant information to share with technicians to attend the vendor fair. The vendor fair gives allied members an opportunity to speak one-on-one with some of the decision-makers from trucking companies all across the state when it comes to their company’s fleet and maintenance decisions. As the Chair of OTA’s Technology & Maintenance Council, one of my primary responsibilities is to help put together and execute the Maintenance & Education Fair. In my day job, as the Director of Safety at KOOL PAK, I see every day how technology and equipment in our trucks is changing and how critical it is that our Join the Technology & Maintenance Council for the 2024 Maintenance & Education Fair! By Nicole Hawks-Morse teams know how to adapt and utilize this new technology to keep our teams safe and on the road where we need them. If you’ve never attended the TMC Maintenance & Education Fair, I highly encourage you to attend this year’s event on November 6, 2024 at the Pacific Northwest Truck Museum in Salem. If you’re a regular attendee, we have some exciting speakers and new workshops for you this year! Spots always fill up fast for the Maintenance & Education Fair, so be sure and sign up to attend as soon as registration goes live at www.ortrucking. org/annual-events/ or email the OTA team at [email protected]. I’ll look forward to seeing you in Salem in November! TMC Maintenance & Education Fair November 6, 2024 Pacific Northwest Truck Museum Salem, Oregon
17 www.ortrucking.org Issue 3 | 2024 WE RECENTLY RECEIVED significant news from the U.S. Department of Labor (DOL)—they’ve just unveiled the Final Rule: Restoring and Extending Overtime Protections. This update to the Fair Labor Standards Act (FLSA) regulations aims to enhance the compensation landscape for American workers by revising the salary thresholds for certain exemptions. Let’s delve into the details in a business-friendly manner. Understanding the Adjustments Effective July 1, 2024, the salary threshold for the “white-collar exemptions”— encompassing executive, administrative, and professional roles—was elevated to $844 per week, or $43,888 annually. This reflects a substantial increase from the previous threshold of $684 per week, or $35,568 annually. By January 1, 2025, the threshold will further escalate to $1,128 per week, or $58,656 annually. Similarly, the total annual compensation requirement for the highly compensated employee (HCE) exemption will witness a notable surge. Effective July 1, 2024, the total annual compensation threshold for this category ascended to $132,964, up from the current $107,432. By January 1, 2025, it will peak at $151,164. Additionally, the DOL has established a framework for regular updates to these thresholds every three years, starting July 1, 2027. This mechanism ensures the thresholds remain aligned with prevailing economic conditions and data. Employer Action Items In response to these changes, employers must proactively assess their workforce composition and compensation structures. The first crucial step is to conduct a thorough review of exempt employees’ salaries, particularly those falling under the white-collar exemptions or the HCE category. Employers need to ensure compliance with the new salary requirements within the stipulated timelines. For employees projected to fall below the revised thresholds, employers face a dual decision: 1. Salary Adjustments: Employers may opt to raise employees’ salaries to meet the new thresholds. This approach allows employers to maintain the exempt status of affected employees while aligning with regulatory mandates. 2. Reclassification: Alternatively, employers can reclassify employees as non-exempt, thereby subjecting them to overtime eligibility and any other related provisions like meals, breaks, and enhanced recording keeping. This decision necessitates careful consideration of operational and financial implications, including potential adjustments to scheduling and payroll practices. FLSA Exemption— Changes Start July 1, 2024 By Laurie Grenya, HR Answers
18 Oregon Trucking Association, Inc. Oregon Truck Dispatch Implications for Employees Employees impacted by these changes should be engaged and informed throughout the transition process. Communication from employers regarding any salary adjustments or reclassifications is paramount. Understanding the implications of these changes on employment status and compensation empowers employees to advocate for their rights and navigate potential adjustments effectively. Conclusion The U.S. Department of Labor’s Final Rule: Restoring and Extending Overtime Protections heralds significant shifts in labor regulations, with far-reaching implications for both employers and employees. By revising salary thresholds for certain exemptions, the DOL aims to promote fairness and equity in the workplace. As employers navigate the implementation of these changes, collaboration and transparency are key. By prioritizing compliance with regulatory requirements and fostering open communication with employees, organizations can navigate the evolving landscape of labor standards effectively. One last thought: While the rules are all about the salary threshold it is also a great time to make sure that a complete analysis of classification is undertaken including the duties test. For assistance with this important work, or any other HR topic, please reach out. Article provided by HR Answers. Have questions? Check out their website at www.hranswers.com or contact them at [email protected] or 503-885-9815. HR Answers, cont. This update to the FLSA regulations aims to enhance the compensation landscape for American workers by revising the salary thresholds for certain exemptions.
19 www.ortrucking.org Issue 3 | 2024 “The Rose Quarter is one of the worst bottlenecks in the country and a key trade route for regional, national and international economies, with tens of millions of dollars of freight passing through the region via the Port of Portland each day,” said Jana Jarvis, President & CEO of the OTA. “Expanding vehicle capacity along the Rose Quarter—in addition to all of the other projects funded in HB 2017—are critical not just to the Portland region, but to all of Oregon’s economy.” Joint Committee on Transportation Hosts Listening Tour on State Transportation Priorities Please attend an upcoming listening tour stop to advocate for the interests of Oregon trucking! By Jennifer Sitton | OTA Communications Consultant THE OREGON LEGISLATURE’S Joint Committee on Transportation (JCT) is hosting a statewide listening tour this summer and fall to solicit feedback on the state’s transportation infrastructure needs. The tour will include 12 stops across the state, where the JCT will discuss with local communities the need for stable and sufficient transportation funding and infrastructure in advance of the 2025 legislative session. These meetings are intended to set the stage and to set expectations ahead of the muchanticipated 2025 transportation package. The legislature is expected to pass a comprehensive transportation package in the coming legislative session—the first since HB 2017 passed seven years ago. HB 2017 funded key congestion-reducing projects, highway and bridge projects, transit projects and other important infrastructure projects. Some of these included adding lanes on I-5 through the Rose Quarter, to OR-217, and to I-205 and replacing the Abernethy Bridge. OTA and our members have expressed frustration at the lack of progress that has been made on the projects identified in HB 2017. “The Rose Quarter is one of the worst bottlenecks in the country and a key trade route for regional, national, and international economies, with tens of millions of dollars of freight passing through the region via the Port of Portland each day,” said Jana Jarvis, President & CEO of the OTA. “Expanding vehicle capacity along the Rose Quarter —in addition to all of the other projects funded in HB 2017—are critical not just to the Portland region, but to all of Oregon’s economy.” Jana has urged the legislature to build out the infrastructure improvement projects promised in HB 2017 before looking to fund future projects. The JCT has continued to emphasize in each of the listening tour stops the funding challenges that ODOT is facing. In response to these funding woes, Jana and the trucking industry have urged ODOT to ensure that trucks are taxed fairly and appropriately as they are looking at funding options for future state transportation projects. “We recognize that ODOT’s maintenance budget is severely lacking and that we need to maintain the investments we’ve already made in our road system,” said Jana. “At the same time, we need to keep in mind the constitutional mandate
20 Oregon Trucking Association, Inc. Oregon Truck Dispatch that requires trucks and passenger vehicles both pay their fair share for use of the highway system.” Trucking has been paying more than 40 percent of all taxes owed by Oregon motorists, despite only representing about 15 percent of vehicle miles traveled in the state. By 2025, the trucking industry is expected to have overpaid by half a billion dollars, a key data point in OTA’s recent lawsuit against the state of Oregon on the overpayment of weight-mile taxes. “Trucks are more than willing to pay our fair share, as long as ODOT keeps up its side of the agreement and completes some of these critical highway infrastructure projects, maintains roads, and prioritizes safety on our highway system,” said Jana. The conversations taking place in these listening tour stops will help shape Oregon’s transportation infrastructure and funding priorities for decades to come. There are seven more listening tour dates coming up and it is critical that trucking’s voice is heard in this conversation, but the only way to do that is to show up! OTA encourages any members who are able to attend one of the listening tour stops. Please reach out to our team at [email protected] for meeting details and if you would like assistance drafting your hearing testimony. Our industry— and the generations that will come after us—are counting on you! Upcoming JCT Listening Tour Dates August 28 – Ontario August 29 – Hermiston September 12 – Bend September 13 – The Dalles September 25 – Salem September 26 – Happy Valley September 27 – Hillsboro Joint Committee, cont.
21 www.ortrucking.org Issue 3 | 2024 Renewable Diesel Offers a Lower Cost Catalyst for Decarboniation City of Portland’s Renewable Fuel Standard in Effect as of July 1, 2024 By Jennifer Sitton | OTA Communications Consultant ON JULY 1, 2024, the City of Portland’s Renewable Fuel Standard (RFS) officially went into effect, mandating that that at least 15 percent of the diesel fuel mix sold within the City is renewable. Renewable diesel is a fuel that is produced to be “chemically identical” to petroleum diesel by mixing renewable diesel with petroleum diesel in any amount or using it as a standalone drop-in fuel in a traditional diesel truck without consequences. The RFS, which was adopted in 2022, aims to phase out petroleum diesel for renewable diesel and biodiesel by 2030 to reduce dependence on fossil fuels and meet the City’s 100 percent Renewable Energy Resolution. By July 1, 2030, the City’s goal is for 99 percent of the diesel fuel mix to be renewable. Since the adoption of the RFS in 2022, stakeholders, including the trucking industry have expressed concern about not only the lack of supply of Fuel Type Current July 1, 2024 July 1, 2026 July 1, 2030 Diesel 95% 85% 50% 1% Renewable Fuel Requirement (min) 5% 15% 50% 99% Percentage of Fuel Type by Volume
22 Oregon Trucking Association, Inc. Oregon Truck Dispatch renewable diesel, but also the increased cost that this new fuel mix would bring. The City of Portland’s Bureau of Planning and Sustainability (BPS) recognizes on their website that, “currently, renewable diesel is not readily available and can be more expensive than fossil and biodiesel in Oregon.” However, BPS says that the implementation schedule was designed “to signal the market that renewable diesel is a desired product, while not overtaxing availability of renewable fuels like biodiesel.” Recognizing the challenges around supply of renewable diesel, the policy gives the BPS Director the ability to temporarily suspend or modify the minimum blend requirements if they determine those requirements are infeasible due to increased prices or lack of supply. While concerns remain about cost and supply of renewable diesel, an April 2024 study released by the American Transportation Research Institute (ATRI) found that renewable diesel has significantly higher potential for reducing the industry’s CO2 emissions at a much lower cost than transitioning the nation’s trucks to battery electric vehicles. ATRI found that transitioning from petroleum diesel to renewable diesel will result in a 67.3 percent decrease in per truck life-cycle CO2, compared to a 30.0–39.5 percent decrease in per truck life-cycle CO2 for battery electric vehicle trucks. This analysis includes full life-cycle CO2 emissions, including mining for the battery materials, vehicle production, power generation, and vehicle disposal. However, the data are clear: if your fleet is exclusively using renewable diesel today, shifting to battery electric vehicles will more than double your life-cycle CO2 emissions. Renewable diesel offers an opportunity for the trucking industry to contribute to decarbonization efforts today, while the implementation of battery electric vehicles is complex and uncertain. Battery electric trucks continue to represent an extraordinarily small 03 billion, compared to $1.19 trillion for BEV trucks. DIESEL RD is typically made from vegetable oils or animal products, including: Used Cooking Oil Corn Oil Soybean Oil Canola Oil on gallons – enough ay from fossil fuels. iesel (Gallons) Tallow Renewable Diesel, cont.
23 www.ortrucking.org Issue 3 | 2024 percentage of the trucks sold in the U.S. and the long-haul sector faces significant headwinds in effectively implementing a battery electric fleet. Just a few of these challenges include electric infrastructure upgrades to power plants, transmission and distribution lines and substations, and the nationwide deployment of truck chargers. These transitions will take decades to meet the needs of the trucking industry. drop-in fuel in a traditional diesel truck without consequences. There currently is research that aims to develop RD from new waste streams, as well as algae. THE TRANSITION TO RENEWABLE DIESEL IS HAPPENING NOW 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 – 2015 2016 2017 2018 2019 2020 2021 2022 2023 Used Cooking Oil Corn Oil Soybean Oil Canola Oil U.S. consumption of RD in 2023 was nearly 3 billion gallons – enough RD to transition nearly 300,000 tractor-trailers away from fossil fuels. Annual U.S. Consumption of Renewable Diesel (Gallons) Tallow Not to mention the cost of transitioning to a battery electric vehicle is 5.8 times higher than using renewable diesel. According to ATRI, to reach a goal of 22.6 percent CO2 reduction within 15 years, the cost would be $203 billion for a renewable diesel fleet and $1.19 trillion for a battery electric vehicle fleet. We know that some of OTA’s members have already made the shift to utilizing OTA looks forward to working with our industry partners and our members to ensure this transition is as smooth as possible, while keeping in mind the immediate decarbonization benefits of using renewable diesel compared to the long-term challenges and costs of transitioning the battery electric vehicle fleets. larger percentages of renewable diesel and we anticipate that number will increase in the coming years. OTA looks forward to working with our industry partners and our members to ensure this transition is as smooth as possible, while keeping in mind the immediate decarbonization benefits of using renewable diesel compared to the longterm challenges and costs of transitioning the battery electric vehicle fleets. There currently is research that aims to develop RD from new waste streams, as well as algae. THE TRANSITION TO RENEWABLE DIESEL IS HAPPENING NOW 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 – 2015 2016 2017 2018 2019 2020 2021 2022 2023 Corn Oil Canola Oil U.S. consumption of RD in 2023 was nearly 3 billion gallons – enough RD to transition nearly 300,000 tractor-trailers away from fossil fuels. Annual U.S. Consumption of Renewable Diesel (Gallons)
24 Oregon Trucking Association, Inc. Oregon Truck Dispatch “I love being able to support my team and help grow the business so they have career advancement opportunities to reach their professional goals,” said Heather. “I’ve always loved creating an environment where people want to work.” Heather Taksdal Helps Develop Unique Solutions to Driver Shortages in Tillamook County By Jennifer Sitton | OTA Communications Consultant GROWING UP IN Tillamook, Heather Taksdal and her family’s life and schedule were based around her dad’s milk hauling schedule. As one of a handful of milk haulers for Tillamook in the 80s, Ken Zwald would often leave for the night shift after an afternoon family dinner because as Heather says, “Milk is a unique commodity. It always has to go. It’s a 24/7 operation, 365 days a year.” Today, Heather and her brother Nick Zwald are co-owners of Zwald Transport and have expanded the trucking company that started with their dad hauling hay as an owner-operator in the late 1970s. In 1982, Ken bought his first milk route and later expanded into hauling cheese for Tillamook and custom manure hauling for farmers. Heather and Nick grew up not only learning to adapt to the milk hauling schedule, but also seeing all aspects of the business their parents built from the ground up. “When my brother and I were kids, we would play office,” said Heather. “I would sit at the toy box and run the office and he would take his toy milk truck and go around picking up at the dairy farms. Fast forward to today and that’s exactly what we do!” After a few years in Portland to attend school, Heather moved home to Tillamook in 2004 and started working for Zwald Transport in the office. “I didn’t really know the ins and outs of the Department of Transportation, regulations, or bookkeeping at the time,” said Heather. “I incorporated everything I knew from my accounting background from community college into the work for my dad.” Over time, as other milk haulers retired, Zwald Transport slowly picked up more and more milk routes until 2019 when
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