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Commercial Vehicle Safety Alliance Fiscal 2017 Annual Report Oct. 1, 2016 to Sept. 30, 2017

The Commercial Vehicle Safety Alliance (CVSA) is a nonprofit association comprised of local, state, provincial, territorial and federal commercial motor vehicle safety officials and industry representatives. The Alliance aims to achieve uniformity, compatibility and reciprocity of commercial motor vehicle inspections and enforcement by certified inspectors dedicated to driver and vehicle safety. Mission Statement Our mission is to improve commercial motor vehicle safety and uniformity throughout Canada, Mexico and the United States by providing guidance and education to enforcement, industry and policy makers. Vision Statement CVSA will be recognized as the North American leader in commercial motor vehicle safety and enforcement. Statement of Values Integrity providing our members and partners with the basis for trust, accountability, transparency and respect. Professionalism consistently developing the highest level of competence, work ethic, responsiveness, openness to new ideas, efficiency and continuous self-improvement. Leadership to inspire, influence, guide and support our members and partners in the pursuit of our mission. Teamwork valuing people working together to achieve common goals and partnerships to achieve uniformity and enhance our effectiveness.

Programs and Services North American Standard Inspection Program On April 27, 2017, the CVSA Board of Directors approved the addition of a new Level VIII Electronic Inspection to the North American Standard Inspection Program. The Level VIII Electronic Inspection is an inspection conducted electronically or wirelessly while a commercial motor vehicle is in motion without direct interaction with a roadside inspector/enforcement official. There are currently eight levels of the North American Standard Inspection Program. In fiscal 2017, approximately 4 million inspections were conducted throughout North America. North American Cargo Securement Harmonization Public Forum At the North American Cargo Securement Harmonization Public Forum, Canadian and U.S. regulators and other research, academic and industry constituents identify and address cargo securement issues for potential implementation in an internationally harmonized standard. The forum also serves as a subcommittee offering guidance on cargo securement issues to the CVSA Vehicle Committee. The forum met on Dec. 13, 2016, in Montreal, Quebec, Canada, and on April 23, 2017, at the CVSA Workshop in Atlanta, Georgia. CVSA Decals To qualify for a CVSA decal, a vehicle must not have any vehicle violations of the critical vehicle inspection items outlined in the North American Standard Out-of-Service Criteria. If no violations are detected during the eligible inspection, a CVSA decal is applied. In fiscal 2017, CVSA provided more than 1.4 million decals to its enforcement members. Operational Policies and Inspection Procedures CVSA s committee structure maintains and updates Operational Policies and Inspection Procedures related to training and the roadside enforcement program. Operational Policies provide guidelines for certification of inspectors, uniform documentation of violations, regulatory guidance and other program-related issues. Inspection Procedures provide a uniform inspection followed by all certified inspectors. The board approved significant changes and added language to Operational Policy 4 (Inspector Training and Certification) and developed a new Operational Policy 16 for policies related to CVSA Programs. CVSA held a webinar, with 292 attendees, on May 31, 2017, outlining changes to Operational Policies and Inspection Procedures. These updates took effect in spring 2017. Level VI Inspection Program Under a cooperative agreement with the U.S. Department of Energy, CVSA held seven Level VI Inspection certification classes, certifying 94 new inspectors to conduct the North American Standard Level VI Inspection for Transuranic Waste and Highway Route Controlled Quantities (HRCQ) of Radioactive Material. With the completion of Class 165, the total number of Level VI Inspection certified officers was 880 at the end of fiscal 2017. 417 Level VI Inspections were conducted in the United States; 34 were conducted in Canada (Ontario). Approximately 14,000 copies of the North American Standard Out-of-Service Criteria and Level VI Inspection Procedures Handbook were distributed. North American Standard Out-of-Service Criteria CVSA s committee structure maintains and updates the North American Standard Out-of-Service Criteria, which are the guidelines by which commercial motor vehicle enforcement officials identify critical inspection item conditions. For the 2017 criteria, which took effect on April 1, 2017, there were 10 changes that were supported by committees and approved by the membership. CVSA held a webinar on Feb. 9, 2017, to outline the changes to the out-of-service criteria. There were 355 attendees. Training Videos The North American Standard Inspection (NASI) video was re-edited into multiple segments for insertion into the NASI Part B Course materials. The 2017 video reviews all 37 steps of the North American Standard Level I Inspection, focusing on the steps that address the vehicle s mechanical components. The Performing a Two-Person Passenger Carrier Vehicle Inspection video was reedited into multiple segments for insertion into the U.S. North American Standard (NAS) Passenger Carrier Vehicle Inspection Course materials. The video follows the recently updated NAS Passenger Carrier Vehicle Inspection Procedure and demonstrates a two-person passenger carrier vehicle inspection using the fourramp method of elevating the vehicle. Inspection Bulletins As of Sept. 30, 2017, there were 24 active Inspection Bulletins to help support the North American Standard Inspection Program. Inspection Bulletins provide important information to inspectors to augment the existing inspection program. www.cvsa.org 1

Programs and Services Continued Fifty-one inspectors competed at the 25th annual North American Inspectors Championship in Orlando, Florida. 2 Operation Airbrake CVSA s Operation Airbrake Program held two brake safety campaigns in 2017: Unannounced Brake Safety Day On May 3, 2017, 9,524 CMVs were inspected for an unannounced brake safety enforcement event. Enforcement personnel conducted CMV inspections to identify brake-related violations. Twelve percent of CMVs inspected were placed out of service for brake-related violations. Brake Safety Day On Sept. 7, 2017, enforcement personnel conducted 7,698 inspections on CMVs for Brake Safety Day. Fourteen percent of the vehicles inspected were placed out of service for brake-related violations. International Roadcheck Enforcement personnel conducted 62,013 inspections during the 30th annual International Roadcheck, June 6-8, 2017. Twenty-three percent of vehicles and 4.2 percent of drivers that received Level I Inspections were placed out of service. The top out-of-service vehicle violation was for brake systems (26.9 percent). The top driver-related violation was for hours of service (32.3 percent). CVSA offered a limited-edition anniversary challenge coin celebrating 30 years of International Roadcheck. 2017 Annual Report North American Inspectors Championship On Aug. 7-11, 2017, 51 roadside inspectors gathered in Orlando, Florida, to compete at the North American Inspectors Championship (NAIC), an annual event where inspectors receive training and compete in various inspection categories. This year, local member Rommel Garcia of the Houston Police Department earned the top prize, the Jimmy K. Ammons Grand Champion Award. This is the first time in NAIC history that a local member earned the Grand Champion Award. 2017 marked the 25-year anniversary of NAIC. A commemorative video was created, taking the viewer back to the first competition in Denver, Colorado, in 1993, and following the progression and growth of the program. Past contestants discussed the impact NAIC had on their careers. CVSA provided all 2017 NAIC contestants and volunteers with a special limited-edition 25-year anniversary NAIC challenge coin. 2 NAIC YEARS 2017 CVSA Data Management, Quality and FMCSA Systems Workshop CVSA hosted this workshop, Aug. 8-10, 2017, in Orlando, Florida, for more than 100 state and federal government personnel to learn about data quality management and uniformity standards. The workshop included two educational tracks: one for SAFETYNET use, the other for maintaining and improving data quality. At the biennial CVSA Data Management, Quality and FMCSA Systems Workshop, 111 attendees learned about data quality management and uniformity standards. Operation Safe Driver Week Enforcement officials issued warnings or citations to 20,648 CMV drivers and passenger vehicle drivers for unsafe driving behaviors during Operation Safe Driver Week, Oct. 16-22, 2017. The top warning/citation issued to CMV drivers was for state and local moving violations (56.7 percent). The top warning/citation issued to passenger vehicle drivers was for speeding (39.4 percent).

Programs and Services Continued Hazmat specialists received advanced-level hazmat training at CVSA s first Regional COHMED Training Course in Golden, Colorado in August 2017. Community Safety Grant Thanks to the Community Safety Grant from the Pipeline and Hazardous Materials Safety Administration (PHMSA), CVSA expanded its Cooperative Hazardous Materials Enforcement Development (COHMED) Program to offer regional hazmat training opportunities around the country. In fiscal 2017, two Regional COHMED Training Courses were held: Aug. 29-30, 2017, in Golden, Colorado with 57 attendees Sept. 27-28, 2017, in Albany, New York with 32 attendees CVSA also held two webinars: HM-215N Final Rule Update on June 28, 2017, with 239 attendees Cargo Tank Testing Requirements Update on July 19, 2017, with 289 attendees COHMED Conference The COHMED Conference was held in Savannah, Georgia, Jan. 23-27, 2017. The conference provided hazmat specialists and instructors with advanced training that they can take back to and share with their jurisdictions. There were 237 registered attendees and 17 breakout sessions. Training, Course and Educational Materials Through a partnership with the National Training Center and Canadian Education Quality Assurance Teams, CVSA provided input and content into the course curriculum for Part A, Part B and the Passenger Carrier Vehicle Inspection Courses in Canada and the U.S. NASI Part A Course slides were updated and the new Pursuit of Excellence video was added to course materials (English and French). NASI Part B Course slides were updated and the new video was added to the course materials (English and French). Slides were updated in the Canadian North American Standard Passenger Carrier Vehicle Inspection Course (English and French). French versions of the Inspection Bulletins were posted on the CVSA website and relevant Operational Policies and Inspection Procedures have been translated into French and are available for download. The Level I Inspection, Level VI Inspection, Passenger Carrier Vehicle Inspection and ABS Malfunction Lamp Inspection Schematics were updated and are available in English and French. A Spanish version of the Level I Inspection Schematic and Inspection Procedure is now available. The Mexican Licencia Federal de Conductor (LFC) Inspection Schematic was revised to reflect the three possible LFCs in current circulation. The existing Beyond the Brakes video was re-edited into segments, allowing the clips to be shown in more relevant sections of the course materials. www.cvsa.org 3

Communications and Outreach Stakeholder Outreach CVSA staff participated in a number of stakeholder meetings and events, helping raise awareness of the Alliance and its mission, while fostering collaboration and building strong partnerships. Staff participated in meetings hosted by the American Association of Motor Vehicle Administrators, Canadian Council of Motor Transport Administrators, National Safety Council, Federal Motor Carrier Safety Administration, National Highway Traffic Safety Administration, International Registration Plan Inc. and International Association of Chiefs of Police, to name just a few. Staff participated in a number of working groups on issues like developing a new Motor Carrier Safety Assistance Program (MCSAP) grant distribution formula, inspector training, truck parking and automated vehicles. Staff attended training sessions conducted by the National Training Center, as well as a number of other meetings conferences and workshops. In total, CVSA staff attended more than 60 meetings and events, and gave presentations at 24 of them. In August 2017, CVSA staff met with representatives from Mexico's truck and bus associations and industry at CVSA headquarters. International Driver Excellence Award On April 23, 2017, during the general session at the CVSA Workshop in Atlanta, Georgia, CVSA presented Charles Endorf of Werner Enterprises with the 2017 International Driver Excellence Award (IDEA). In its third year, IDEA is CVSA s industry-wide driver excellence award program. Endorf was selected based on his 45-year history of safe driving, his longterm commitment to the trucking industry, his dedication to projecting a positive image and his willingness to assist and coach other drivers. During the general session at the CVSA Workshop in Atlanta, Georgia, CVSA presented Charles Endorf of Werner Enterprises with the 2017 International Driver Excellence Award. College Scholarship Awards CVSA awarded three $1,000 scholarships to deserving high school graduates to attend the college of their choice in fall 2017. Caleb Claycamp will attend Iowa Western Community College; Cole Metcalfe will attend Emory University; and Kyle Thomas will attend the University of Virginia. Guardian Magazine CVSA s quarterly magazine provides information from and for government, enforcement and industry. Four editions were produced with a print distribution of 20,560 and an online distribution of 5,717. Volume 23, Issue 4 4th Quarter 2016 PBBT Demonstration a Success Volume 24, Issue 2 2nd Quarter 2017 New Drugs Bring Big Challenges CVSA Holds Its 2016 Annual Conference with a Record Number of Registrants, Sponsors and Exhibitors North American Standard Part B Course Goes to Mexico New Generation of Mexican CMV Inspectors Trained and Deployed Volume 24, Issue 1 1st Quarter 2017 Arizona's Daniel Voelker is CVSA's 2016 North American Inspectors Championship Grand Champion ~25Years~ CVSA's North American Inspectors Championship Celebrates Law Enforcement, Regulators and Safety Community Receive Valuable Hazmat Training at 2017 COHMED Conference DON T BRING HAZMAT HOME WITH YOU CVSA Welcomes Two New Staff Members Volume 24, Issue 3 3rd Quarter 2017 Plus... CVSA Adds New Level VIII Electronic Inspection to North American Standard Inspection Program CVSA's Brake Safety Day is Sept. 7 Read About CVSA Secretary Nominees Plus... CVSA Prepares for December 2017 ELD Implementation; Announces April 1, 2018, Effective Date for Out-of-Service Criteria Related to ELD Rule Representatives from Mexico's truck and bus associations and industry meet with CVSA staff at CVSA headquarters. 4 2017 Annual Report

Policy and Advocacy Initiatives Regulatory and Legislative Accomplishments CVSA worked with the Federal Motor Carrier Safety Administration (FMCSA), other stakeholders and Congress to address a significant funding error in the fiscal 2017 transportation appropriations bill that left MCSAP dramatically underfunded and provided no funds for the High-Priority Grant Program. CVSA held dozens of meetings with Congressional offices, educating members and their staff about the importance of MCSAP and the critical work it funds. In May, when Congress passed the final fiscal 2017 funding bill, full funding had been restored to MCSAP and the high-priority grants. CVSA provided input on multiple pieces of legislation, submitted petitions to FMCSA and PHMSA, closed two outstanding recommendations from the National Transportation Safety Board and submitted comments to a number of open rulemakings, including FMCSA s rulemaking on speed limiters. Senate Hearings 2017 CVSA Vice President Capt. Christopher Turner with the Kansas Highway Patrol testified on March 14, 2017, in Washington, D.C., at the Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety, and Security hearing titled Continuing to Improve Truck Safety on our Nation s Highways. The hearing was convened to examine truck safety advancements in the Fixing America s Surface Transportation (FAST) Act and to discuss potential reforms moving forward. On Sept. 13, 2017, Col. Scott G. Hernandez, chief of the Colorado State Patrol, testified on behalf of the Alliance and the commercial motor vehicle enforcement community at the U.S. Senate Committee on Commerce, Science, and Transportation hearing in Washington, D.C., on Transportation Innovation: Automated Trucks and our Nation s Highways. The hearing was convened to examine the benefits of automated truck safety technology as well as the potential impacts on jobs and the economy. The board approved the creation of the CVSA Policy Guide, a standing document that will provide members and stakeholders with information on where the Alliance stands on policy issues impacting the commercial motor vehicle safety and enforcement community. C o m m e rcial Ve h i c l e Safe t y A l l i a n c e POLICY GUIDE Capt. Christopher Turner testified at the March, 15, 2017, Senate Subcommittee hearing titled Continuing to Improve Truck Safety on our Nation s Highways. Col. Scott G. Hernandez testified at the Sept. 13, 2017, Senate Commerce Committee hearing on Transportation Innovation: Automated Trucks and our Nation s Highways. www.cvsa.org 5

Organizational Development Approximately 300 government officials, enforcement and industry members attended the CVSA Annual Conference and Exhibition in Whitehorse, Yukon, Canada. CVSA Workshop More than 550 enforcement personnel, government officials and industry representatives attended the CVSA Workshop, April 23-27, 2017, in Atlanta, Georgia. The workshop included an FMCSA public listening session on highly automated commercial vehicles, jurisdictions shared performance-based brake tester (PBBT) experiences at the PBBT meeting, FMCSA s Post-Accident Reporting Advisory Committee held a public meeting, and there was an International Fuel Tax Agreement and International Registration Plan training session. CVSA Annual Conference and Exhibition On Sept. 17-21, 2017, CVSA held its Annual Conference and Exhibition in Whitehorse, Yukon, Canada. Approximately 300 government officials, enforcement and industry members attended the conference in support of the Alliance s mission. At the conference, CVSA transitioned to new leadership for the 2017-2018 term. Staff Growth CVSA added three new staff members: Bill Reese joined CVSA as director of COHMED Program. He oversees the Regional COHMED Training Program and the COHMED Conference and serves as the primary resource for hazardous materials issues and programs. Kerri Wirachowsky joined CVSA as director of Roadside Inspection Program. She serves as the primary resource and expert on roadside enforcement and inspection issues. Richard Williams joined CVSA as controller. He is a certified public accountant with more than 20 years of experience working within the nonprofit industry. Law enforcement, government and industry members gathered at the 2017 CVSA Workshop in Atlanta, Georgia. 6 2017 Annual Report

Financial Snapshot Product Sales 14% Investments 3% FISCAL 2016 FISCAL 2017 REVENUES $3,785,477 $4,164,036 Decal Sales 10% EXPENSES $3,585,964 $4,031,619 NET ASSETS AT END OF YEAR $2,030,418 $2,162,835 Contracts/Grants 29% REVENUE Conferences and Meetings 16% Local Member Dues 0% Sponsorship 8% Associate Member Dues 7% Sponsorship 0% Government Affairs 2% Overhead 7% Member Dues 13% Administration 11% Fringe Benefits 15% Committee Support 4% EXPENSES Other Activities 7% Conferences and Meetings 21% Contracts/ Grants 17% Membership 2% Outreach and Industry Activities 3% Products and Services 11% www.cvsa.org 7

Fiscal 2017 By the Numbers Approximately 4 MILLION INSPECTIONS conducted in North America 4WEBINARS MEETINGS AND CONFERENCES 1,513 ATTENDEES 1649 61 SPONSORS 690,055 WEBSITE PAGE VIEWS Exhibitor 34 EXHIBITORS MEMBERS 35 464 LOCAL MEMBERS ASSOCIATE MEMBERS 33,514 CVSA STORE PURCHASES 14,524 copies sold of the NORTH AMERICAN STANDARD OUT-OF-SERVICE CRITERIA 1,433,940 DECALS ORDERED 8 2017 Annual Report

Fiscal 2017 By the Numbers Continued social media 3,808 TWEETS 5,942 Twitter FOLLOWERS 7,304 Facebook LIKES 94 NEW LEVEL VI CERTIFIED INSPECTORS 8 PETITIONS AND COMMENTS SUBMITTED 26 REGULATORY UPDATES SENT TO MEMBERS 8 LEGISLATIVE UPDATES SENT TO MEMBERS 83 MEETINGS held with CONGRESSIONAL OFFICES 26 NEWS RELEASES www.cvsa.org 9

Fiscal 2017 CVSA Leadership President Julius Debuschewitz Yukon Highways and Public Works Vice President Capt. Christopher J. Turner Kansas Highway Patrol Secretary Capt. Scott Carnegie Mississippi Highway Patrol Past Presidents Maj. Jay Thompson Arkansas Highway Police Sgt. Thomas Fuller New York State Police Deputy Chief Mark Savage Colorado State Patrol REGION PRESIDENTS Region I Sgt. John Samis Delaware State Police Region II Capt. Ross Batson Arkansas Highway Police Region III M/Sgt. Todd Armstrong Illinois State Police Region IV Lt. Scott Hanson Idaho State Police Region V Richard Roberts British Columbia Ministry of Transportation and Infrastructure REGION VICE PRESIDENTS Region I Sgt. Scott Dorrler New Jersey State Police Region II Lt. Allen England Tennessee Highway Patrol Region III Capt. John Broers South Dakota Highway Patrol Region IV Vacant Region V (Interim) Sean Mustatia Saskatchewan Ministry of Highways and Infrastructure LOCAL LEADERSHIP President: Ofc. Wes Bement Grand Prairie (Texas) Police Department Vice President: Ofc. Jason Belz (May to September) Arlington (Texas) Police Department ASSOCIATE LEADERSHIP President: Jason Wing Walmart Transportation Inc. Vice President: Dave Schofield Oldcastle Materials COMMITTEE CHAIRS Driver-Traffic Enforcement Committee Lt. Chris Barr Indiana State Police Enforcement and Industry Modernization Committee Maj. Derek D. Barrs Florida Highway Patrol Hazardous Materials Committee Sgt. Brad Wagner Nebraska State Patrol Information Systems Committee Holly Skaar Idaho State Police Passenger Carrier Committee Lt. Donald Bridge, Jr. Connecticut Department of Motor Vehicles Policy and Regulatory Affairs Committee Alan R. Martin Public Utilities Commission of Ohio Size and Weight Committee F/Sgt. Kenneth R. Snead North Carolina State Highway Patrol Training Committee Milan Orbovich Public Utilities Commission of Ohio Vehicle Committee Tpr. John Sova North Dakota Highway Patrol PROGRAM CHAIRS Level VI Inspection M/Sgt. Todd Armstrong Illinois State Police Cooperative Hazardous Materials Enforcement Development (COHMED) Donna McLean Transport Canada International Driver Excellence Award (IDEA) Don Egli Iowa Motor Truck Association Operation Safe Driver (OSD) Brian Neal Amazon Operation Airbrake (OAB) Lt. Scott Hanson Idaho State Police Shelley Conklin Landstar Transportation Logistics International Roadcheck Maj. Michael Forman Mississippi Department of Transportation North American Inspectors Championship (NAIC) Richard Roberts British Columbia Ministry of Transportation and Infrastructure CVSA STAFF (as of Sept. 30, 2017) Collin B. Mooney, MPA, CAE Executive Director Adrienne Gildea Deputy Executive Director Will Schaefer Director of Safety Programs Carlisle Smith Director of Level VI Inspection Program Ken Albrecht Director of Multimedia Development Bill Reese Director of COHMED Program Kerri Wirachowsky Director of Roadside Inspection Program Iris Leonard Manager of Member Services Claudia McNatt, CMP Manager of Conferences and Exhibits Nicole Leandro Manager of Communications Richard Williams, CPA Controller Amelina Kassa Administrative Assistant 10 2017 Annual Report

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