47306 Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–2016–0428] 

Hours of Service of Drivers: 

Application for Exemption; Truck 

Renting and Leasing Association 

(TRALA) 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of final disposition; grant 

of application for exemption. 

SUMMARY: FMCSA announces its 

decision to grant the Truck Renting and 

Leasing Association (TRALA) a limited 

exemption from the requirement to use 

an electronic logging device (ELD) to 

record the driver’s hours-of-service 

(HOS) no later than December 18, 2017. 

This limited exemption provides that all 

drivers of property-carrying commercial 

motor vehicles (CMVs) rented for 8 days 

or less, regardless of reason, are not 

required to use an ELD in the vehicle. 

While operating under this exemption, 

drivers will remain subject to the 

standard hours-of-service (HOS) limits, 

maintain a paper record of duty status 

(RODS) if required, and maintain a copy 

of the rental agreement on the vehicle. 

FMCSA has analyzed the exemption 

application and the public comments 

and has determined that the exemption, 

subject to the terms and conditions 

imposed, will achieve a level of safety 

that is equivalent to, or greater than, the 

level that would be achieved absent 

such exemption. 

DATES: The exemption is applicable 

from October 11, 2017 through October 

11, 2022. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Thomas Yager, Chief, FMCSA Driver 

and Carrier Operations Division; Office 

of Carrier, Driver and Vehicle Safety 

Standards; Telephone: 614–942–6477. 

Email: MCPSD@dot.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

FMCSA has authority under 49 U.S.C. 

31136(e) and 31315 to grant exemptions 

from the Federal Motor Carrier Safety 

Regulations (FMCSRs). FMCSA must 

publish a notice of each exemption 

request in the Federal Register (49 CFR 

381.315(a)). The Agency must provide 

the public an opportunity to inspect the 

information relevant to the application, 

including any safety analyses that have 

been conducted. The Agency must also 

provide an opportunity for public 

comment on the request. 

The Agency reviews the safety 

analyses and the public comments, and 

determines whether granting the 

exemption would likely achieve a level 

of safety equivalent to, or greater than, 

the level that would be achieved by the 

current regulation (49 CFR 381.305). 

The decision of the Agency must be 

published in the Federal Register (49 

CFR 381.315(b)) with the reason for the 

grant or denial, and, if granted, the 

specific person or class of persons 

receiving the exemption, and the 

regulatory provision or provisions from 

which exemption is granted. The notice 

must also specify the effective period of 

the exemption (up to 5 years), and 

explain the terms and conditions of the 

exemption. The exemption may be 

renewed (49 CFR 381.300(b)). 

Request for Exemption 

TRALA is a national trade association 

of companies whose members engage in 

commercial truck renting and leasing, 

vehicle finance leasing, and consumer 

truck rental. Its membership 

encompasses major independent firms 

such as Ryder System, Penske Truck 

Leasing, U-Haul, Budget, and Enterprise 

Truck Rental, as well as small and 

medium-size businesses that generally 

participate as members of four leasing 

group systems: Idealease, NationaLease, 

PACCAR Leasing Company, and Mack 

Leasing System-Volvo Truck Leasing 

System. In total, its nearly 500 member 

companies operate more than 5,000 

commercial leasing and rental locations, 

and more than 20,000 consumer rental 

locations throughout the United States, 

Mexico and Canada. 

‘‘Renting’’ is a term of art in the 

vehicle leasing industry, generally 

meaning a transaction granting the 

exclusive use of a vehicle for 30 days or 

less, whereas a lease generally means a 

transaction granting the exclusive use of 

a vehicle for more than 30 days. 

TRALA’s application is on behalf of all 

drivers of property-carrying commercial 

motor vehicles (CMVs) rented for 30 

days or less. 

While TRALA stated that it fully 

supports FMCSA’s final rule to mandate 

ELDs, it is concerned about the 

unintended technical and operational 

consequences that will unfairly and 

adversely affect short-term rental 

vehicles. The commercial vehicle rental 

industry provides short-term rental 

services to a large population of drivers 

on a daily basis. Most of these drivers 

will normally employ an ELD to comply 

with the new rule. Considering the 

significant number of different device 

platforms and subscription options, it is 

unlikely that the driver’s device would 

be able to communicate properly with 

the rental company’s telematics 

platform. TRALA states that while 

FMCSA recognized during the 

rulemaking process these issues 

associated with a lack of interoperability 

among ELD systems, and required 

certain technical specifications in the 

final rule, the Agency stopped short of 

requiring full interoperability among 

ELDs. 

Many commenters to the proposed 

ELD rule raised similar interoperability 

concerns. However, the rule requires 

only that ELDs can transfer data 

electronically via either a ‘‘telematics’’ 

approach capable of wireless web 

service, or a ‘‘local’’ method capable of 

Bluetooth and USB 2.0 transfer. 

Furthermore, according to TRALA, the 

Agency decided ‘‘not to require full 

interoperability between all ELDs,’’ 

reasoning that ‘‘[a]lthough full 

interoperability would have some 

benefits, it would also be complicated 

and costly’’ (80 FR 78327, December 16, 

2015). According to commenters, the 

Agency left it to the ELD manufacturers 

to address many concerns regarding 

non-interoperability of the various 

software systems on the market. 

TRALA elaborated on its two primary 

issues of concern relating to the 

exemption request: (1) Data transfer and, 

(2) data liability. 

TRALA described two potential data 

transfer problems. First, a customer who 

is required to use an ELD may rent a 

truck that has one operating system, 

while the customer may use another 

operating system for its drivers; data 

cannot be transferred from the rental 

vehicle to the customer’s system unless 

both ELDs are on the same platform. In 

addition, upon request by an authorized 

safety official, a driver must produce 

and transfer the driver’s HOS records 

from an ELD in accordance with 49 CFR 

395.24(d). This would include the 

driver’s duty status for the current 24- 

hour period and the prior seven days. 

However, if the driver is operating a 

rental vehicle with an ELD that is not 

compatible with the driver’s normal 

ELD system, the data will not transfer to 

the new vehicle’s ELD system. TRALA 

states that scenario would be considered 

an ‘‘ELD malfunction’’ and the driver 

would be required to reconstruct the 

RODS for the current 24-hour period 

and the previous seven consecutive 

days on graph grid paper logs. TRALA’s 

application requests that drivers of 

short-term rental vehicles be allowed to 

avoid the uncertainties of attempting 

compliance with the HOS rules using 

non-compatible ELD systems, and 

instead use paper RODS during the 

rental period. 

TRALA contends that CMVs are more 

prone to break-downs than non-CMVs 

because of their heavy use. When CMVs 


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1www.fmcsa.dot.gov/mission/policy/rental-trucksafety-study-report. 

break-down, they are often replaced 

temporarily by short-term rental 

vehicles until the original truck can be 

repaired. TRALA claims that these 

repairs can take days, if not several 

weeks, to complete. More often than 

not, replacement vehicles come from a 

third-party rental company, which 

increases the likelihood that the 

replacement truck would have a 

different ELD operating system than the 

vehicle it is replacing, thus impeding 

data transfer. 

TRALA’s second primary issue 

involves data liability concerns. TRALA 

states that it has been suggested that 

rental companies should be able to 

collect and report ELD data to 

customers, allowing customers to access 

the data seamlessly. However, the final 

rule does not require ELDs to be capable 

of reading and combining exported data 

from other providers. Furthermore, 

lessors do not have the ability to 

combine data from different devices into 

one report. Requiring lessors to bear the 

burden of safeguarding the data for each 

renter would expose the rental company 

to tremendous risk with respect to data 

security and protection. All parties 

involved in the business transaction 

would probably reject rental companies’ 

assumption of these risks on behalf of 

their customers. 

Public Comments 

On March 22, 2017, FMCSA 

published notice of this application and 

requested public comment (82 FR 

14789). The Agency received 429 docket 

comments, over 95% supporting the 

TRALA request. Among those in favor 

of the exemption were the following 

industry trade associations: The 

American Trucking Associations, Inc. 

(ATA); the National Association of 

Chemical Distributors (NACD), National 

Tank Truck Carriers (NTTC), National 

Private Truck Council (NPTC), 

Truckload Carriers Association (TCA), 

and the National Automobile Dealership 

Association (NADA). The fireworks 

industry, including the American 

Pyrotechnics Association (APA), filed 

30 comments in support of the request. 

Principal opponents of the exemption 

were the Advocates for Highway and 

Auto Safety (Advocates) and the OwnerOperator Independent Driver’s 

Association (OOIDA). 

Commenters gave three primary 

reasons in support of the request. First, 

they believe there is currently a 

significant technology gap that will not 

allow different ELD systems to 

communicate and share information 

with each other. As many rental 

companies must individually collect 

their own data to comply with the 

International Fuel Tax Agreement 

(IFTA) and International Registration 

Plan, the interoperability of ELD 

technology will create more challenges 

than solutions for the short-term rental 

market as compared to the vast majority 

of trucks that are owned or leased. 

Further, all ELDs must be capable of 

exporting data in a standard file format 

to facilitate importing by other systems. 

However, devices and systems are not 

required to be capable of importing 

these records. This means that 

transferring data, whether through 

‘‘memory sticks’’ or other applications, 

will not work with the technology 

currently available. TRALA states that 

several ELD manufacturers have already 

commented that ‘‘plug and play’’ 

devices are years away from being 

operational; and given the small 

percentage of trucks that would be 

impacted by these efforts, it is unlikely 

that major technological advances will 

occur in the next few years. 

Another benefit of a short-term rental 

exemption would be a simpler roadside 

inspection process since short-term 

rentals of 30 days or less do not require 

a truck to display the user’s U.S. DOT 

number. The continued use of paper 

logs would alleviate any confusion in 

the inspection process since a law 

enforcement officer would immediately 

recognize a short-term rental vehicle 

when handed the rental agreement. That 

consistency would speed up the process 

and create less confusion. This current 

rule also requires that a rental contract 

of 30 days or less be carried in the truck 

at all times. This existing requirement 

can allow authorities to confirm the 

short-term nature of the rental. 

Those opposing the TRALA request 

commented that the application does 

not meet the statutory and regulatory 

requirements for the exemption. It fails 

to consider practical alternatives, justify 

the need for the exemption, provide an 

analysis of the safety impacts the 

requested exemption may cause, and 

provide information on the specific 

countermeasures to be undertaken to 

ensure that the exemption will achieve 

an equivalent or greater level of safety 

than would be achieved absent the 

exemption. 

A second comment in opposition 

noted that TRALA cites technical 

concerns regarding interoperability of 

data between devices, truck breakdowns, and data transfer and liability 

concerns as reasons why their vehicles 

should be exempted from the ELD 

mandate. While these points are 

legitimate, the commenter argued that 

they are not limited to the truck renting 

and leasing industry. Carriers of all sizes 

will encounter these same problems, 

along with ELD manufacturers and law 

enforcement agencies. Exempting one 

segment of the trucking industry will 

not change that. 

All comments are available for review 

in the docket for this notice. 

FMCSA Decision 

FMCSA has evaluated TRALA’s 

application and the public comments 

and decided to grant a limited 

exemption for the driver and carrier of 

a CMV rented for 8 days or fewer, 

regardless of reason. FMCSA has 

determined that an exemption period of 

up to 30 days, as requested, is 

unnecessarily long given the importance 

of ELDs to ensure the accuracy of HOS 

records. One condition of the exemption 

is that a copy of the rental agreement 

must be carried on the vehicle and made 

available to law enforcement. Another is 

that the driver must possess copies of 

his or her RODS for the current and 

prior 7 days, if required on those days. 

A high proportion of the comments 

supported the exemption. The Agency 

believes that an exemption period of up 

to 8 days for drivers of rental CMVs 

would give most carriers sufficient time 

to repair or replace their usual vehicles 

while minimizing any temptation to 

extend non-ELD operations. The use of 

paper records of duty status (RODS) will 

not create an undue risk of noncompliance when limited to this short 

period. An 8-day exemption period 

coincides with 49 CFR 395.34(d), which 

provides that a motor carrier that 

receives or discovers information about 

an ELD malfunction must correct it 

within 8 days. During that 8-day 

malfunction window, the driver must 

reconstruct the RODS for the current 24- 

hour period, and the previous seven 

consecutive days. The 8-day exemption 

for rental CMVs would follow that 

pattern. The exempt driver must have a 

copy of his/her RODS for the current 

day and the prior seven days. Under 

these conditions, FMCSA believes that 

exempt drivers and carriers—like those 

operating under section 395.34(d)—are 

likely to achieve a level of safety that is 

equivalent to, or greater than, the level 

of safety achieved without the 

exemption (49 CFR 381.305(a)). In 

addition, the 2014 ‘‘The Rental Truck 

Safety Study Report to Congress,’’ 

prepared by FMCSA,1 found no problem 

with rental trucks. In the period 2005– 

2010, the Trucks Involved in Fatal 

Accidents (TIFA) database recorded no 

instances in which the critical reason 


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47308 Federal Register / Vol. 82, No. 195 / Wednesday, October 11, 2017 / Notices 

for the crash was assigned to the rental 

truck driver. 

Terms and Conditions of the Exemption 

Terms of the Exemption 

• This exemption from the 

requirements of 49 CFR 395.8(a)(1)(i) is 

effective from October 11, 2017 through 

October 11, 2022. 

• This exemption covers a rental 

period of 8 days or fewer, regardless of 

reason for the rental. Evidence that a 

carrier has replaced one rental CMV 

with another on 8-day cycles or 

attempted to renew a rental agreement 

for the same CMV for an additional 8 

days will be regarded as a violation of 

the exemption and subject the carrier to 

the penalties for failure to use an ELD. 

• Drivers must have a copy of this 

notice or equivalent signed FMCSA 

exemption document in their possession 

while operating under the terms of the 

exemption. The exemption document 

must be presented to law enforcement 

officials upon request. 

• Drivers must have a copy of the 

rental agreement in the CMV, and make 

it available to law enforcement officers 

on request. The agreement must clearly 

identify the parties to the agreement, the 

vehicle, and the dates of the rental 

period. 

• Driver must possess copies of their 

RODS for the current day and the prior 

7 days, if required on those days. 

Preemption 

In accordance with 49 U.S.C. 

31313(d), as implemented by 49 CFR 

381.600, during the period this 

exemption is in effect, no State shall 

enforce any law or regulation applicable 

to interstate commerce that conflicts 

with or is inconsistent with this 

exemption with respect to a firm or 

person operating under the exemption. 

States may, but are not required to, 

adopt the same exemption with respect 

to operations in intrastate commerce. 

Notification to FMCSA 

Carriers operating under this 

exemption must notify FMCSA within 5 

business days of any accident (as 

defined in 49 CFR 390.5), involving any 

of the motor carrier’s drivers operating 

under the terms of this exemption. The 

notification must include the following 

information: 

(a) Identity of Exemption: ‘‘TRALA’’ 

(b) Date of the accident, 

(c) City or town, and State, in which 

the accident occurred, or closest to the 

accident scene, 

(d) Driver’s name and license number, 

(e) Co-driver’s name and license 

number, 

(f) Vehicle number and State license 

number, 

(g) Number of individuals suffering 

physical injury, 

(h) Number of fatalities, 

(i) The police-reported cause of the 

accident, 

(j) Whether the driver was cited for 

violation of any traffic laws, motor 

carrier safety regulations, and 

(k) The total driving time and total onduty time period prior to the accident. 

Accident notifications shall be 

emailed to MCPSD@dot.gov. 

Termination 

FMCSA believes that drivers of shortterm rental vehicles will continue to 

maintain their previous safety record 

while operating under this exemption. 

However, should problems occur, 

FMCSA will take all steps necessary to 

protect the public interest, including 

revocation or restriction of the 

exemption. FMCSA will immediately 

restrict participation in the exemption 

for failure to comply with its terms and 

conditions. 

Issued on: September 28, 2017. 

Daphne Y. Jefferson, 

Deputy Administrator. 

[FR Doc. 2017–21892 Filed 10–10–17; 8:45 am] 

BILLING CODE 4910–EX–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–2017–0038] 

Qualification of Drivers; Exemption 

Applications; Diabetes Mellitus 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT 

ACTION: Notice of final disposition. 

SUMMARY: FMCSA announces its 

decision to exempt 47 individuals from 

the prohibition in the Federal Motor 

Carrier Safety Regulations (FMCSRs) 

against persons with insulin-treated 

diabetes mellitus (ITDM) from operating 

a commercial motor vehicle (CMV) in 

interstate commerce. The exemptions 

enable these individuals with ITDM to 

operate CMVs in interstate commerce. 

DATES: The exemptions were applicable 

on August 29, 2017. The exemptions 

expire on August 29, 2019. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Christine A. Hydock, Chief, Medical 

Programs Division, (202) 366–4001, 

fmcsamedical@dot.gov, FMCSA, 

Department of Transportation, 1200 

New Jersey Avenue SE., Room W64– 

224, Washington, DC 20590–0001. 

Office hours are from 8:30 a.m. to 5 

p.m., e.t., Monday through Friday, 

except Federal holidays. If you have 

questions regarding viewing or 

submitting material to the docket, 

contact Docket Services, telephone (202) 

366–9826. 

SUPPLEMENTARY INFORMATION: 

I. Electronic Access 

You may see all the comments online 

through the Federal Document 

Management System (FDMS) at: http:// 

www.regulations.gov. 

Docket: For access to the docket to 

read background documents or 

comments, go to http://

www.regulations.gov and/or Room 

W12–140 on the ground level of the 

West Building, 1200 New Jersey Avenue 

SE., Washington, DC, between 9 a.m. 

and 5 p.m., e.t., Monday through Friday, 

except Federal holidays. 

Privacy Act: In accordance with 5 

U.S.C. 553(c), DOT solicits comments 

from the public to better inform its 

rulemaking process. DOT posts these 

comments, without edit, including any 

personal information the commenter 

provides, to http://www.regulations.gov, 

as described in the system of records 

notice (DOT/ALL–14 FDMS), which can 

be reviewed at http://www.dot.gov/ 

privacy. 

II. Background 

On July 27, 2017, FMCSA published 

a notice announcing receipt of 

applications from 47 individuals 

requesting an exemption from diabetes 

requirement in 49 CFR 391.41(b)(3) and 

requested comments from the public (82 

FR 35033). The public comment period 

ended on August 28, 2017, and two 

comments were received. 

FMCSA has evaluated the eligibility 

of these applicants and determined that 

granting the exemptions to these 

individuals would achieve a level of 

safety equivalent to or greater than the 

level that would be achieved by 

complying with the current regulation 

49 CFR 391.41(b)(3). 

The physical qualification standard 

for drivers regarding diabetes found in 

49 CFR 391.41(b)(3) states that a person 

is physically qualified to drive a CMV 

if that person: 

Has no established medical history or 

clinical diagnosis of diabetes mellitus 

currently requiring insulin for control. 

III. Discussion of Comments 

FMCSA received two comments in 

this proceeding. Givonna Hymel stated 

that she believes the exemption 

application process should be 

shortened, and that the program in its 

current form is unfair and 


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