48882 Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Notices 

Should it become evident that the 

project will not meet the statutory 

deadline, FHWA reserves the right to 

revoke the provisional approval prior to 

the deadline and re-offer the program 

slot to other State DOTs. 

Brandye L. Hendrickson, 

Acting Administrator, Federal Highway 

Administration. 

[FR Doc. 2017–22775 Filed 10–19–17; 8:45 am] 

BILLING CODE 4910–22–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

[Docket No. FMCSA–2017–0166] 

Hours of Service of Drivers: 

Application for Exemption; MBI Energy 

Services (MBI) 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Notice of final disposition; 

denial of application for exemption. 

SUMMARY: FMCSA announces its 

decision to deny the application of MBI 

Energy Services (MBI) from the 

requirement that a motor carrier install 

and require each of its drivers to use an 

electronic logging device (ELD) to 

record the driver’s hours of service 

(HOS) no later than December 18, 2017. 

MBI had requested the exemption for all 

of its vehicles equipped with a singlepassenger cab, which are used in 

applications where travel is incidental 

to normal work activities and which 

require special oversize/overweight 

permits to travel on public roads. 

FMCSA has analyzed the exemption 

application and public comments, and 

has determined that the applicant 

would not achieve a level of safety that 

is equivalent to, or greater than, the 

level that would be achieved absent 

such exemption. FMCSA therefore 

denies MBI’s application for exemption. 

DATES: FMCSA denies this application 

for exemption effective October 20, 

2017. 

FOR FURTHER INFORMATION CONTACT: For 

information concerning this notice, 

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. 

If you have questions on viewing or 

submitting material to the docket, 

contact Docket Services, telephone (202) 

366–9826. 

SUPPLEMENTARY INFORMATION: 

Background 

FMCSA has authority under 49 U.S.C. 

31136(e) and 31315 to grant exemptions 

from certain 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. 

FMCSA reviews safety analyses and 

public comments submitted, 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 

MBI is a provider of water 

management logistics and wellintervention services in North Dakota, 

South Dakota, Wyoming, Montana, and 

Colorado. The requested exemption 

would affect 65 MBI Energy Services 

drivers operating 42 single-cab vehicles 

classified in North Dakota as Special 

Mobile Equipment (SME). These 

vehicles meet the definition of a 

commercial motor vehicle (CMV) in 49 

CFR 390.5 and therefore are subject to 

the ELD or AOBRD mandate. These 

specialized vehicles perform various 

work activities in an environment where 

connectivity is limited, working and 

road conditions are rough, and the 

necessity for driving on public roads is 

sporadic and incidental to the overall 

work being performed. The vehicles 

may sit on work locations for long 

periods of time, up to weeks or even 

months. These vehicles are typically 

oversize and overweight, requiring 

special permits for transport. Many 

States do not require registration, as 

they build the registration fees into the 

permit process. 

Examples of SMEs meeting the 

definition of a CMV having a single cab 

include cranes, workover rigs, and swab 

units. Single cabs have reduced space 

for installing rough-terrain-capable 

AOBRDs or ELDs. The devices used 

must be capable of satellite 

communication where cell 

communication is poor to non-existent. 

The installation of rugged logging units, 

weighing more than typical units used 

in highway applications, would reduce 

driver visibility in an already large 

vehicle due to the limited space found 

in single-cab vehicles. Additionally, 

installation may require a unit being 

positioned over the driver’s head, 

increasing the risk of the unit falling on 

the driver resulting in injury given the 

rough terrain upon which the vehicles 

travel or a vehicle accident involving 

the travelling public. 

While these vehicles normally travel 

little, business demand may require MBI 

vehicles to move more often than 8 days 

in a 30-day period, the maximum 

frequency allowed by 49 CFR 

395.8(a)(1)(iii)(A)(1) for the use of paper 

RODS instead of ELDs. According to 

MBI, the current regulations do not 

address circumstances where the 

vehicle’s exemption status is sporadic in 

nature, thus requiring MBI to install an 

ELD to remain compliant during times 

not covered by the exemption. While 

alternatives exist to industrial-grade 

logging units, the alternatives usually 

involve cell phones or cell-capable 

tablets where the terrain or remote 

locations of work may inhibit logging 

device communication for extended 

periods of time. Many worksites 

prohibit cell phone usage due to safety 

concerns. Additionally, installations in 

special vehicles will increase costs 

substantially due to the unusual 

configurations of single cab vehicles 

requiring specialized wiring harnesses 

and custom installation kits. MBI 

requested a 5-year exemption. 

Public Comments 

On July 10, 2017, FMCSA published 

MBI’s application for exemption and 

requested public comment (82 FR 

31798). The Agency received five 

comments to the docket, from CMV 

drivers, a Commercial Vehicle Safety 

Alliance (CVSA) inspector, and the 

Owner-Operator Independent Driver’s 

Association (OOIDA). All of the 

commenters opposed the MBI 

application for exemption. According to 

commenters, MBI’s request would place 

a burden on law enforcement officers in 

tracking exceptions from the regulations 

and open the door for other oil field 

service companies and crane operating 

companies to request similar exception 

status. Commenters stated that the 

purpose of the ELDs is to force drivers 

and carriers to record their HOS 


srobinson on DSKBC5CHB2PROD with NOTICES
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. 


srobinson on DSKBC5CHB2PROD with NOTICES