Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 48883 

accurately due to years of abuse by the 

industry. 

All comments are available for review 

in the docket for this notice. 

FMCSA Decision 

When FMCSA published the rule 

mandating ELDs, it relied upon research 

indicating that the rule improves 

commercial motor vehicle (CMV) safety 

and reduces the overall paperwork 

burden for both motor carriers and 

drivers by increasing the use of ELDs 

within the motor carrier industry, which 

will in turn, improve compliance with 

the HOS rules. The primary reason for 

denial of this exemption is that MBI did 

not demonstrate how, without using 

ELDs, they would maintain a level of 

safety equivalent to, or greater than, the 

level achieved without the exemption. 

For these reasons, FMCSA has denied 

the applicant’s request for exemption. 

Issued on: September 28, 2017. 

Daphne Y. Jefferson, 

Deputy Administrator. 

[FR Doc. 2017–22834 Filed 10–19–17; 8:45 am] 

BILLING CODE 4910–EX–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–2017–0054] 

Hours of Service; United Parcel 

Service Inc. Application for an 

Exemption From Certain Electronic 

Logging Device Requirements 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of final disposition. 

SUMMARY: The Federal Motor Carrier 

Safety Administration (FMCSA) 

announces its decision to grant part of 

United Parcel Service Inc.’s (UPS) 

application for a limited 5-year 

exemption from various provisions of 

the mandate to use electronic logging 

devices (ELD). FMCSA published a final 

rule in December 2015 that requires 

most motor carriers and drivers who are 

currently required to prepare and retain 

paper records of duty status (RODS) to 

use ELDs for hours-of-service (HOS) 

compliance effective December 18, 

2017. Among other things, the 

December 2015 rule requires (1) certain 

data elements to be automatically 

recorded when an authorized user logs 

in or out of an ELD or changes duty 

status, and (2) a driver’s indication of 

special driving status to reset to none 

(except in the case of personal use) if 

the ELD or commercial motor vehicle’s 

(CMV) engine goes through a power-off 

cycle. FMCSA grants exemptions to 

allow (1) all motor carriers and drivers 

that use portable, driver-based ELDs to 

record engine data only when the driver 

is in a CMV and the engine is powered, 

and (2) all motor carriers to configure an 

ELD with a yard-move mode that does 

not require a driver to re-input yardmove status every time the tractor is 

powered off. The Agency has 

determined that granting these 

temporary exemptions would not have 

an adverse impact on safety, and that a 

level of safety equivalent to or greater 

than the level of safety provided by the 

regulation would be maintained. 

FOR FURTHER INFORMATION CONTACT: Mrs. 

Amina Dines, Vehicle and Roadside 

Operations Division, Office of Carrier, 

Driver, and Vehicle Safety, MC–PSV, 

(202) 366–2782, Amina.Dines@dot.gov, 

Federal Motor Carrier Safety 

Administration, 1200 New Jersey 

Avenue SE., Washington, DC 20590– 

0001. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 4007 of the Transportation 

Equity Act for the 21st Century (TEA– 

21) [Pub. L. 105–178, 112 Stat. 107, 401, 

June 9, 1998] amended 49 U.S.C. 31315 

and 31136(e) to provide authority to 

grant exemptions from the Federal 

Motor Carrier Safety Regulations 

(FMCSRs). On August 20, 2004, FMCSA 

published a final rule (69 FR 51589) 

implementing section 4007. Under this 

rule, FMCSA must publish a notice of 

each exemption request in the Federal 

Register (49 CFR 381.315(a)). The 

Agency must provide the public with 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(a)). 

The decision of the Agency must be 

published in the Federal Register (49 

CFR 381.315(b)). If the Agency denies 

the request, it must state the reason for 

doing so. If the decision is to grant the 

exemption, the notice must specify the 

person or class of persons receiving the 

exemption and the regulatory provision 

or provisions from which an exemption 

is granted. The notice must 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 

381.315(c) and 49 CFR 381.300(b)). 

UPS Application for Exemption 

UPS applied for an exemption from 

various provisions of 49 CFR part 395 

regarding the use of ELDs. Specifically, 

UPS requested a temporary exemption 

(1) to allow an alternative ELD phase-in 

method for fleets using compliant 

automatic on-board recording devices 

(AOBRDs); (2) from the requirement that 

an ELD automatically record certain 

data elements upon a duty-status change 

when a driver is not in the vehicle; (3) 

to allow ELDs to be configured with a 

special driving mode for yard moves 

that does not require the driver to reinput yard move status every time the 

tractor is powered off; and (4) to allow 

vehicle movements of less than one mile 

on UPS property by non-CDL UPS 

drivers to be annotated as ‘‘on 

property—other.’’ 

On June 9, 2017, FMCSA published 

notice of the UPS application and 

requested public comment (82 FR 

26832). FMCSA received 55 comments, 

most of which opposed the exemption 

on the ground that UPS should comply 

with the ELD rule which it had actively 

supported. Where comments focused on 

a particular issue, they are addressed in 

the discussions below. 

1. Alternative Method of ELD Phase-In 

Background 

Subject to limited exceptions, section 

395.8(a)(1)(i) of the FMCSRs requires 

motor carriers to install and use ELDs 

that comply with the technical 

specifications prescribed for those 

devices no later than December 18, 

2017. However, section 395.8(a)(1)(ii) 

allows a motor carrier that installs, and 

requires its drivers to use, compliant 

AOBRDs before the December 18, 2017, 

compliance date to continue to use 

those AOBRDs until December 16, 2019, 

thereby providing a 2-year grandfather 

period for devices installed prior to the 

compliance date. 

UPS Request 

In its application, UPS states: 

UPS firmly believes that the best way to 

transition its operations from AOBRDs to 

ELDs will be on a site-by-site basis. UPS 

currently plans to convert approximately 

2800 tractors at approximately 35 sites from 

AOBRDs to ELDs in 2017, and plans to 

convert the remaining tractors (at 141 sites) 

during 2018. Deploying ELDs by site will 

minimize the significant costs, including 

training costs, related to moving the fleet and 

workforce from AOBRDs to ELDs. A site-bysite approach will also minimize the risk of 

errors and confusion that would be 

encountered if two different types of devices 

were used simultaneously at a given location. 


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The difficulty large motor carriers like UPS 

face is with FMCSA’s decision to permit 

grandfathering only on a vehicle, and not a 

fleet-wide basis. UPS plans to purchase 

approximately 1530 new tractors in 2018, 

i.e., after the grandfathering deadline but 

before the ELD implementation date for 

grandfathered vehicles. Of these, 1061 will 

replace existing tractors (the majority of 

which are currently using AOBRDs) that have 

reached the end of life, and 469 will be new 

tractors to accommodate projected growth. 

These new tractors will be delivered to UPS 

facilities across the country consistent with 

operational needs. At a typical location, 

approximately 12 percent of tractors would 

be newly purchased. 

If no temporary exemption were granted, 

large carriers would be required to use ELDs 

in all of the new tractors delivered after 12/ 

18/2017. The result would be that UPS 

facilities that had not been converted as of 

that date would have both vehicles using 

AOBRDs and vehicles using ELDs at the same 

time. 

Based on the above, UPS requests an 

exemption from section 395.8(a)(1)(i) to 

allow the installation of AOBRDs on 

new truck tractors delivered to UPS 

sites after the December 18, 2017 

compliance date, where the existing 

vehicles at that site are equipped with 

compliant AOBRDs. UPS believes that 

using a site-based approach, as 

described above, will (1) eliminate 

confusion on the part of drivers and 

other personnel that would result from 

using both ELDs and AOBRDs at the 

same location, and (2) avoid operational 

and potential enforcement issues that 

could arise from a driver using different 

types of devices to record hours of 

service over a given period of time. UPS 

states that under the proposed 

temporary exemption, all vehicles will 

be fully ELD-compliant by the 

expiration date of the AOBRD 

grandfather period specified in section 

395.8(a)(1)(ii), December 16, 2019. 

Public Comments 

The Agency received four comments, 

two supporting the proposed alternative 

method of ELD phase-in and two 

opposing it. 

Saucon Technologies (Saucon), an 

ELD developer, states that ‘‘[c]ompanies 

who have been using AOBRD devices 

for years before the ELD final rule was 

published have been operating ‘ahead of 

the safety curve,’ using technology 

identified by FMCSA as a safety 

enhancer, before being required to do 

so. Requiring these early adopters of 

safety technology to have a ‘mixed fleet’ 

of AOBRD and ELD will present a 

hardship to these operators.’’ 

Specifically, Saucon contends that for 

fleets required to operate with both 

AOBRDs and ELDs, ensuring (1) that 

drivers are properly trained on both 

systems, and (2) that administrators 

properly manage the auditing of logs on 

both systems ‘‘creates a burden for these 

operators with little to no additional 

safety benefit resulting from that 

burden.’’ 

Saucon also states that since ELD 

manufacturers not only provide the 

product (AOBRD and ELD), but also the 

back-office system support for operators 

transitioning to using ELDs in a 

compliant manner, ‘‘[h]aving to support 

the same customer through two 

regulations within their fleet would 

burden ELD manufacturers as much as 

the operators.’’ 

Both Saucon and YRC Worldwide 

(YRCW), a holding company for a 

portfolio of less-than-truckload 

companies including YRC Freight, YRC 

Reimer, Holland, Reddaway, and New 

Penn, commented that allowing a 

complete transition from AOBRDs to 

ELDs will provide for more operational 

accuracy than having drivers operate 

some vehicles equipped with AOBRDs 

and others equipped with ELDs. 

The Owner-Operator Independent 

Drivers Association (OOIDA), a trade 

association representing the views of 

small-business truckers and professional 

truck drivers in all 50 states and 

Canada, stated that UPS’s proposed 

alternative phase-in period ‘‘is a drastic 

change from their 2011 comments that 

believed, ‘a single compliance date is 

superior to any phase-in schedule 

because it minimizes the potential for 

confusion.’’ However, OOIDA states that 

UPS raised ‘‘a credible concern 

involving drivers that will be forced to 

use different vehicles with both 

Automatic On-Board Recorders (AOBR) 

and ELDs,’’ and that the ‘‘lack of 

specifics regarding interoperability is 

leading to great uncertainty among all 

stakeholders and will cause confusion 

during roadside inspections for drivers, 

enforcement, and ELD and AOBRD 

vendors.’’ Despite the above, OOIDA 

states that ‘‘UPS does not explicitly 

explain how they would achieve a level 

of safety that is equivalent to or greater 

than, the level of safety that would be 

obtained by complying with the 

regulation,’’ and that ‘‘[a]n exemption 

should not be granted merely because it 

is inconvenient or it puts a burden on 

the petitioner.’’ 

An individual noted that UPS should 

have better prepared for this deadline, 

especially since it is the largest trucking 

entity in the United States, and has been 

aware of this mandate since its 

inception. 

FMCSA Decision 

Section 395.8(a)(1)(ii) of the FMCSRs 

states, ‘‘A motor carrier that installs and 

requires a driver to use an automatic onboard recording device in accordance 

with § 395.15 before December 18, 2017 

may continue to use the compliant 

automatic on-board recording device no 

later than December 16, 2019.’’ FMCSA 

has published a series of frequently 

asked questions (FAQ) on its Web site 

intended to provide plain language 

information regarding the December 

2015 ELD rule. These FAQs do not 

modify or replace applicable FMCSA 

regulations or standards. Specifically 

with respect to the UPS request for an 

alternative phase-in for fleets using 

compliant AOBRDs, Question 7 of the 

‘‘Voluntary Usage and Compliance 

Phases’’ section of the FAQs states: 

Question: According to § 395.8, if a motor 

carrier ‘‘installs and requires a driver to use 

an AOBRD. . .before December 18, 2017 

they may continue to use the AOBRD until 

December 16, 2019.’’ Does this mean I can 

move an AOBRD from one vehicle to another 

after December 18, 2017? 

Response: If your operation uses AOBRDs 

before December 18, 2017, and you replace 

vehicles in your fleet you can install an 

AOBRD that was used in the previous CMV. 

However, you may not purchase and install 

a new AOBRD in a vehicle after December 

18, 2017. 

Thus, the 1,061 new tractors that UPS 

plans to purchase after the December 18, 

2017 ‘‘grandfathering’’ deadline to 

replace existing tractors that are 

currently equipped with AOBRDs will 

be permitted to utilize the AOBRDs 

from the replaced vehicles until 

December 16, 2019. However, the 

remaining 469 new tractors that will be 

purchased to accommodate projected 

growth will be required to be equipped 

with ELDs in accordance with section 

395.8(a)(1)(i). 

FMCSA decided not to require full 

interoperability between all ELDs (and 

AOBRDs) in the final rule because while 

full interoperability would have some 

benefits, it would also be complicated 

and costly. FMCSA recognizes that a 

motor carrier, including UPS, may need 

to support a mix of both AOBRD and 

ELD systems within its fleet for a 

limited time until the carrier can fully 

implement ELDs in all its vehicles. As 

noted in the final rule, if a driver uses 

multiple ELD or AOBRD systems that 

are not compatible (e.g., the data file 

from one system cannot be uploaded 

into the other system), the driver must 

either manually enter the missing duty 

status information or provide a printout 

from the other system so that an 

accurate accounting of the duty status 

for the current and previous 7 days is 

available for authorized safety officials. 

Based on the above, FMCSA denies 

UPS’s request to allow an alternative 


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ELD phase-in method for fleets using 

compliant AOBRDs. 

2. Recording of Data Elements When a 

Driver Has a Change in Duty Status or 

Logs In/Logs Out of an ELD While 

Outside the Vehicle 

Background 

An ELD automatically records the 

following data elements: (1) Date; (2) 

Time; (3) CMV geographic location 

information; (4) Engine hours; (5) 

Vehicle miles; (6) Driver or 

authenticated user identification data; 

(7) Vehicle identification data; and (8) 

Motor carrier identification data. In 

addition, an ELD is required to 

automatically record a number of the 

data elements specified above at certain 

events, to include (1) when a driver 

indicates a change of duty status under 

section 395.24(b) (see section 395.26(c)), 

and (2) when an authorized user logs 

into or out of an ELD (see section 

395.26(g)). 

UPS Request 

In its application, UPS states: 

All UPS drivers are covered under a 

bargaining unit agreement between the 

Teamsters Union and UPS. Under that 

agreement, UPS drivers are, for the most part, 

paid by the hour. UPS drivers use electronic 

devices and punch in for work on those 

devices while they are still in the dispatch 

building. They then walk to their vehicle and 

inspect the vehicle prior to moving the 

tractor. Upon implementation of the ELD rule 

UPS will be using FMCSR-compliant 

portable, driver-based ELD devices. 

Similarly, at the end of a work day all UPS 

drivers walk from their vehicles to a UPS 

dispatch office and then clock out using the 

AOBRD devices once all work is done. UPS 

drivers perform many other duties away from 

the tractor including training, attending 

safety meetings and working in the facility. 

In a typical UPS location, UPS drivers spend 

an average of 24 minutes prior to entering the 

vehicle and 22 minutes after exiting the 

vehicle on the clock. Significantly, in many 

situations the vehicle an employee will be, or 

was, using will be occupied by another 

employee while the employee is still on duty 

for UPS. 

UPS cannot both comply with the 

requirement that an ELD record tractor data 

when a driver logs in or out (or otherwise 

changes duty status while outside of the 

vehicle) and also comply with our bargaining 

unit contract and pay guidelines for our 

drivers. 

UPS requests an exemption from the 

requirement to record the specific data 

elements identified in sections 395.26(c) 

and 395.26(g) if the driver is not in the 

vehicle when (1) the driver indicates a 

change of duty status, or (2) an 

authorized user logs into or out of an 

ELD, respectively. Instead, to assure 

accurate recording of on-duty, not 

driving time, UPS proposes that it will 

‘‘systematically annotate that the driver 

was performing other work.’’ UPS 

believes that the proposed exemption 

‘‘will have no impact on the recordation 

of driving time’’ as all required vehicle 

data will be recorded when the driver is 

in the vehicle, and ‘‘the tractor data that 

would not be recorded when the driver 

is not in the vehicle is not relevant to 

assessing the accurate recordation of 

‘on-duty, not driving’ time.’’ 

Public Comments 

The Agency received one comment in 

support of allowing motor carriers that 

use portable, driver-based ELDs to 

record engine data only while the driver 

is in a CMV. YRCW stated that 

‘‘[s]imilar to UPS, drivers at our 

operating companies are covered by a 

collective bargaining agreement. Our 

drivers perform a variety of other duties 

as they begin and end their day at a 

company terminal. We support the UPS 

request for an annotation ‘driver was 

performing other work.’’’ 

FMCSA Decision 

Because the December 2015 rule 

provides a performance-based standard 

for ELDs, motor carriers have a number 

of options to choose from the market 

place of ELD providers. This includes 

portable units that stay with the driver, 

as well as units that are installed in and 

stay with the vehicle. In its application, 

UPS notes that ‘‘[u]pon implementation 

of the ELD rule UPS will be using 

FMCSR-compliant portable, driverbased ELD devices.’’ 

The ELD functions required by the 

rule are limited to automatically 

recording all driving time, and 

intermittently recording certain other 

information—including recording 

specified data elements when a driver 

changes duty status (section 395.26(c)) 

and logs in/logs out of an ELD (section 

395.26(g)). For ELDs that are physically 

installed in a vehicle, drivers typically 

log in/log out of the ELD or change duty 

status while the vehicle is powered, and 

the required data elements in section 

395.26 are readily recorded by the ELD 

because the ELD is synchronized with 

the engine’s electronic control module 

(ECM). However, in situations where a 

driver is using a portable, driver-based 

ELD, a driver will typically log in/log 

out or change duty status in the ELD at 

a location away from the vehicle (i.e., in 

the dispatch office as described by 

UPS), prior to preparing to drive the 

vehicle and without the vehicle being 

powered. In these situations, FMCSA 

agrees that it is not practicable for the 

ELD to automatically record the data 

elements required by section 395.26(c) 

and section 395.26(g), as the ELD is not 

synchronized with the engine’s ECM at 

that point. In the final rule, FMCSA 

stated ‘‘FMCSA clarifies that the ECM 

data or ECM connectivity data must 

only be captured when the engine is 

powered, but the ELD is not prohibited 

from recording information, if desired, 

when the engine is off.’’ 

Based on the above, FMCSA agrees 

that it is not necessary for portable, 

driver-based ELDs to record the data 

elements required in section 395.26(c) 

and section 395.26(g) when the driver is 

not in the CMV, with the engine 

powered. In instances where a driver 

using a portable, driver-based ELD logs 

in/logs out or changes duty status away 

from the vehicle and without the 

vehicle powered, the driver will simply 

annotate the ELD record to indicate the 

appropriate duty status in accordance 

with section 395.30. Any time the driver 

is in the vehicle and the vehicle is 

powered, the portable, driver-based ELD 

is required to automatically record the 

data elements specified in section 

395.26. FMCSA agrees that safety will 

not be diminished because (1) there will 

be no impact on the recordation of 

driving time, and (2) the data elements 

that will not be recorded by the ELD at 

a change of duty status or log on/log out 

of the ELD while away from the vehicle 

are not critical if the driver properly 

annotates the ELD record to indicate the 

proper duty status as required. 

3. Special Driving Mode for Yard Moves 

Background 

Section 395.28(a) of the FMCSRs 

permits a motor carrier to configure an 

ELD to authorize a driver to indicate 

that the driver is operating a CMV under 

certain special driving categories, 

including (1) authorized personal use, 

and (2) and yard moves. Section 

395.28(a)(2) requires a driver to select 

the applicable special driving category 

on the ELD before starting operations in 

that status, and to deselect it when the 

indicated status ends. Section 

4.3.2.2.2(e) of Appendix A to Subpart B 

of part 395 requires a driver to reset his/ 

her yard-move status to none if the ELD 

or CMV’s engine goes through a poweroff cycle (ELD or CMV’s engine turns off 

and then on). 

UPS Request 

In its application, UPS states: 

UPS is requesting a temporary exemption 

to allow a special driving mode for yard 

moves that will not require a driver to 

repeatedly indicate that status. 

Most of UPS’s feeder drivers are required 

to complete yard moves as part of their 

scheduled work. This entails the driver 

moving trailers that are already sitting 


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uncoupled on a yard as well as coupling or 

uncoupling inbound and outbound trailers. 

Not only do feeder drivers perform yard 

moves at the beginning or end of trips, they 

sometimes are assigned to yard duty for a 

portion of their shifts, which can entail 

moving as many as 10 loads per hour within 

the yard. 

As a safety precaution, UPS requires our 

drivers to remove the keys each time they 

exit the tractor. Consistent with this 

requirement, they driver will power the 

tractor down to couple a trailer and then 

power the tractor down again to uncouple. 

An average UPS site has over 100 drivers, 

with the majority of drivers completing 

several yard moves in the course of a day. 

The ELD rule would require drivers to 

manually change duty status twice for every 

move they complete in the yard, which could 

mean entering manual changes as many as 20 

times in an hour. The average UPS RODS 

driver completes a minimum of 9 yard moves 

per day. This will impose costs on UPS in 

time spent by drivers manually inputting the 

yard move mode. UPS estimates that the 

yearly cost to UPS for a single button push 

(.35 sec) at each of these yard move ignition 

cycles would come to approximately 

$460,000. In addition, driver and 

administrative time would need to be spent 

reconciling records if drivers fail to 

appropriately record yard move time. 

Based on the above, UPS requests an 

exemption from section 395.28(a)(2)(i) 

to allow its drivers to select ‘‘yard 

move’’ status and remain in that status 

even if the vehicle’s ignition is cycled 

off and back on. Under the proposed 

temporary exemption, and assuming 

that the driver does not go off duty after 

performing the yard moves, UPS states 

that the ELD would switch to a 

‘‘driving’’ duty status under section 

395.24 if (1) the driver inputs ‘‘driving,’’ 

(2) the vehicle exceeds 20 mph, or (3) 

the vehicle exits the geo-fenced yard. 

UPS notes that there is a posted speed 

limit of 15 mph on all of its yards, and 

that it already uses the proposed 20 

mph threshold described above to 

trigger a designation of ‘‘driving’’ duty 

status in its AOBRDs as a means to 

identify drivers who do not manually 

annotate their departure from a UPS 

property. 

Public Comments 

The Agency received three comments, 

two supporting and one opposing the 

yard-move exemption. 

Saucon stated that ‘‘[m]any motor 

coach operators have also requested to 

be able to use Yard Move within a geofenced area, then ‘automatically’ ending 

that yard move once the vehicle has left 

the area, and changing the driver’s 

status to driving. We agree that this 

would help motor carriers manage Yard 

Moves.’’ Saucon agreed ‘‘that it would 

be wise to consider alternative ways to 

allow motor carriers to manage yard 

move, without relying on drivers to 

push the button to end it,’’ but noted 

that it did not necessarily fully agree 

with the solutions proposed by UPS. 

YRCW ‘‘supports the UPS request to 

allow drivers to select ‘yard move’ 

status and stay in that mode even if the 

vehicle is cycled off or if the driver 

changes yard vehicles. This will 

eliminate unnecessary multiple entries 

as drivers have duties to couple and 

uncouple trailers in company yards that 

sometimes involve vehicle shut downs 

or vehicle changes.’’ 

OOIDA opposed all elements of the 

exemption request, including the yardmoves provision, but it agreed that the 

ELD rule imposes unnecessary costs and 

burdens on all drivers and carriers, not 

just on UPS. 

FMCSA Decision 

The yard-moves issue was raised by 

Omnitracs in comments to the 

supplemental notice of proposed 

rulemaking that preceded the December 

2015 ELD final rule. While Omnitracs 

agreed with resetting the special driving 

situation to ‘‘none’’ if the ELD or CMV’s 

engine goes through a power-off cycle, 

it suggested that the same confirmation 

be allowed during yard driving that is 

allowed for authorized personal use of 

the CMV. Omnitracs stated that doing so 

would enable the driver to turn off the 

engine when connecting or 

disconnecting a trailer when operating 

within a company’s facility without the 

requirement to re-enter the annotation 

of yard driving each time the engine 

goes through a power cycle. In response, 

FMCSA stated ‘‘The Agency feels that 

the allowance of multiple power off 

cycles would not provide a substantive 

reduction in inputs required by the 

driver during yard moves. In addition, 

this may create a potential for misuse of 

the off-duty yard-move status.’’ 

In its application, UPS stated that the 

average UPS RODS driver completes a 

minimum of 9 yard moves per day, and 

given that a driver is required to 

manually enter the beginning and end of 

each yard move on the ELD, a driver 

could be required to enter manual 

changes of duty status as many as 20 

times in an hour. Based on the 

information provided by UPS, and 

despite the Agency’s response to 

Omnitrac’s comment in the December 

2015 final rule, FMCSA believes that 

allowing multiple power-off cycles for 

yard moves can substantially reduce the 

inputs required by the driver in certain 

operations. Further, UPS provided a 

series of proposed controls to ensure 

that the ELD will switch from ‘‘yard 

move’’ status to ‘‘driving’’ status; 

namely, if (1) the driver inputs the 

‘‘driving’’ mode; (2) the vehicle exceeds 

a speed of 20 mph; or (3) the vehicle 

exits the geo-fenced UPS yard. 

Implementation and adherence to these 

controls will help ensure that there is no 

misuse of the off-duty yard-move status. 

Based on the above, FMCSA agrees 

that permitting all motor carriers to 

configure ELDs with a yard-move mode 

that does not require a driver to re-input 

yard move status every time the tractor 

is powered off will ensure that drivers 

operating under the yard-move status 

will achieve a level of safety that is 

equivalent to or greater than the level 

that would be obtained under the 

regulation. Allowing multiple power-off 

cycles for yard moves is consistent with 

what is currently permitted for the other 

special driving category, personal 

conveyance. 

4. Exempt Employees Operating CMVs 

While on Motor Carrier Property 

Background 

Section 395.26(h) of the FMCSRs 

requires an ELD to automatically record 

certain data elements when a CMV’s 

engine is powered on or off. 

UPS Request 

In its application, UPS states: 

In addition to its drivers, UPS currently 

employs 1434 people that wash or fuel 

vehicles. In the course of performing their 

duties, most of these employees operate 

vehicles in our fleet, but this operation is 

strictly limited to movements within UPS 

yards. A fuel employee will fuel as many as 

60 vehicles during a shift. 

Because they do not operate commercial 

motor vehicles on highways/public roads, 

UPS’s wash and fuel employees are not 

‘‘drivers’’ and, in turn, are not required to 

comply with the hours of service rules. . . 

The final ELD rule requires that the ELD 

automatically record certain data when a 

CMV’s engine is powered up or powered 

down. See § 395.26(h). Because UPS will be 

using portable, driver-based ELDs, there will 

not be ELDs permanently installed in UPS 

vehicles. Therefore, insofar as the ELD 

regulations would require recordation of 

engine data for in yard operation of UPS 

vehicles by non-driver employees, that 

requirement would impose a significant 

burden on UPS. While it would be possible 

to provide these employees with portable 

ELDs to record engine data, doing so would 

be extremely costly. In addition to 

purchasing devices for each of these 

employees, UPS would have to purchase and 

maintain secure cabinets to store and charge 

these devices. In addition, UPS would have 

to develop a solution to reconcile these hours 

in a live environment. UPS would also have 

to employ individuals to annotate logs for 

data that was not reconciled. 

UPS requests an exemption from 

section 395.26, and proposes to allow an 

alternative approach to track vehicle 


srobinson on DSKBC5CHB2PROD with NOTICES
Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 48887 

usage by wash and fuel employees on 

UPS property. Specifically, UPS 

proposes that vehicle movements of less 

than 1 mile by these exempt employees, 

entirely on UPS property, be annotated 

on an ELD as ‘‘on property—other.’’ 

UPS states that these miles could be 

easily identified using geo-fencing and 

time-card information for road drivers 

and other employees. 

Public Comments 

The Agency received one comment in 

support of an alternative approach to 

tracking vehicle usage by non-driver 

employees when the company uses 

portable, driver-based ELDs. 

YRCW stated that ‘‘[s]imilar to UPS, 

YRCW companies have exempt 

employees who move vehicles short 

distances for fueling, washing and 

maintenance. As UPS notes these miles 

are within a company facility and could 

easily be captured by geo-fencing 

applications.’’ 

FMCSA Decision 

Because UPS wash and fuel 

employees do not operate CMVs on 

public roads they are not subject to the 

HOS regulations. Accordingly, the UPS 

wash and fuel employees do not need to 

use ELDs, and no temporary exemption 

is necessary. 

Terms and Conditions for the 

Exemptions 

Based on its evaluation of the UPS 

application for exemption, FMCSA has 

decided to grant the following 

exemptions: 

1. All motor carriers and drivers using 

portable, driver-based ELDs are exempt 

from the requirements of section 

395.26(c) and section 395.26(g) unless 

the driver is in the CMV with the engine 

powered. When a driver using a 

portable, driver-based ELD changes duty 

status or logs in/logs out of the ELD 

away from the vehicle and without the 

vehicle powered, the driver is required 

to annotate the ELD record to indicate 

the appropriate duty status in 

accordance with section 395.30. When 

the driver is in the CMV, and the CMV 

is powered, the portable, driver-based 

ELD is required to automatically record 

the data elements specified in section 

395.26. 

2. A motor carrier is permitted to 

configure an ELD so that a driver can 

select ‘‘yard moves’’ in accordance with 

section 395.28(a)(1)(ii) without 

complying with Section 4.3.2.2.2(e) of 

Appendix A to Subpart B of part 395, 

which requires a driver’s yard-move 

status to reset to none if the ELD or 

CMV’s engine goes through a power-off 

cycle (ELD or CMV’s engine turns off 

and then on). However, the ELD must 

switch from ‘‘yard move’’ status to 

‘‘driving’’ status if (1) the driver inputs 

the ‘‘driving’’ mode; (2) the vehicle 

exceeds a speed of 20 mph; or (3) the 

vehicle exits a geo-fenced motor carrier 

facility. For the reasons discussed 

above, FMCSA believes that the level of 

safety that will be achieved with the 

exemptions will likely be equivalent to, 

or greater than, the level of safety 

achieved without the exemptions. 

FMCSA hereby grants the exemptions 

for a 5-year period, beginning October 

20, 2017 and ending October 20, 2022. 

The exemptions will be valid for five 

years unless rescinded earlier by 

FMCSA. The exemptions will be 

rescinded if: (1) Motor carriers and/or 

drivers fail to comply with the terms 

and conditions of the exemptions; (2) 

the exemptions have resulted in a lower 

level of safety than was maintained 

before they were granted; or (3) 

continuation of the exemptions would 

not be consistent with the goals and 

objectives of 49 U.S.C. 31136(e) and 

31315(b). 

Interested parties possessing 

information that would demonstrate 

that motor carriers or drivers 

participating in either of the exemptions 

are not achieving the requisite statutory 

level of safety should immediately 

notify FMCSA. The Agency will 

evaluate any such information and, if 

safety is being compromised or if the 

continuation of the exemption is not 

consistent with 49 U.S.C. 31136(e) and 

311315(b), will take immediate steps to 

revoke the exemption. 

Preemption 

In accordance with 49 U.S.C. 

31313(d), as implemented by 49 CFR 

381.600, during the period these 

exemptions are in effect, no State shall 

enforce any law or regulation applicable 

to interstate commerce that conflicts 

with or is inconsistent with the 

exemptions with respect to a firm or 

person operating under the exemptions. 

States may, but are not required to, 

adopt the same exemptions with respect 

to operations in intrastate commerce. 

Issued on: September 29, 2017. 

Daphne Y. Jefferson, 

Deputy Administrator. 

[FR Doc. 2017–22833 Filed 10–19–17; 8:45 am] 

BILLING CODE 4910–EX–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–2013–0275] 

Hours of Service of Drivers: U.S. 

Department of Defense (DOD); 

Application for Renewal of Exemption 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of renewal of exemption; 

request for comments. 

SUMMARY: FMCSA announces its 

decision to renew the U.S. Department 

of Defense (DOD) Military Surface 

Deployment and Distribution 

Command’s (SDDC) exemption from the 

minimum 30-minute rest break 

provision of the Agency’s hours-ofservice (HOS) regulations for 

commercial motor vehicle (CMV) 

drivers contracted by SDDC for special 

activities. SDDC currently holds an 

exemption valid through October 27, 

2018. The exemption renewal is for five 

years and allows SDDC contracteddrivers to use 30 minutes or more of 

attendance time to meet the HOS rest 

break requirements, provided they do 

not perform any other work during the 

break. The terms and conditions of the 

current exemption remain in place for 

the five-year period. 

DATES: The renewed exemption is 

effective through October 21, 2023. 

Comments must be received on or 

before November 20, 2017. 

ADDRESSES: You may submit comments 

identified by Federal Docket 

Management System Number FMCSA– 

2013–0275 by any of the following 

methods: 

• Federal eRulemaking Portal: 

www.regulations.gov. Follow the online 

instructions for submitting comments. 

• Fax: 1–202–493–2251. 

• Mail: Docket Management Facility, 

U.S. Department of Transportation, 1200 

New Jersey Avenue SE., West Building, 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery or Courier: West 

Building, Ground Floor, Room W12– 

140, 1200 New Jersey Avenue SE., 

between 9 a.m. and 5 p.m. E.T., Monday 

through Friday, except Federal holidays. 

Instructions: All submissions must 

include the Agency name and docket 

number. For detailed instructions on 

submitting comments and additional 

information on the exemption process, 

see the Public Participation heading 

below. Note that all comments received 

will be posted without change to 

www.regulations.gov, including any 


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