[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)]
[Notices]
[Pages 52953-52955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18978]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2015-0460]


Hours of Service of Drivers: Application for Exemption; 
Farruggio's Express

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of final disposition; grant of application for 
exemption.

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SUMMARY: FMCSA announces its decision to grant Farruggio's Express 
(Farruggio), an exemption from the timecard requirements for its 
drivers who may not meet all of the conditions for use of the logbook 
exception for operations within a 100 air-mile radius of the normal 
work reporting location. This exemption enables Farruggio's drivers who 
stay within the 100 air-mile radius, but may occasionally exceed the 12 
hour limitation, from having to complete a daily record of duty status 
(RODS). Instead, the drivers would at all times use an electronic 
logging system called Geotab to track HOS data, including real-time 
vehicle locations. FMCSA has analyzed the exemption application and the 
public comments and has determined that the exemption, subject to the 
terms and conditions imposed, will likely 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 effective from August 10, 2016 through August 
10, 2021.

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: [email protected].

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. 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

[[Page 52954]]

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

    Farruggio services railroad ramps and maritime piers in the eastern 
United States. Its regional programs include truckload and less-than-
truckload service (dry van, flat bed and reefers) as well as piggyback 
and container service. All of Farruggio's drivers--approximately 95 to 
100--and CMVs would operate under the terms of the requested exemption.
    Virtually all of Farruggio's drivers operate within a 50- to 60-
mile radius of their home terminal. They are home every day and for the 
most part meet the requirements and conditions for the logbook 
exception in 49 CFR 395.1(e)(1). Some of these drivers record their 
hours worked, while others record time in and out and total hours 
worked for the day on a worksheet provided to Farruggio. The company's 
application would exempt company drivers who stay within the 100 air-
mile radius, but who may occasionally exceed the 12-hour limitation, 
from having to complete a daily RODS. These drivers nonetheless return 
to the terminal within the normal 14-hour driving window.
    While Farruggio meets the requirements of the 100 air-mile radius 
exception, and believes that its drivers' hours are being recorded 
accurately, it has adopted a vehicle recording device that it claims 
exceeds the current HOS logbook recording requirements. Farruggio 
stated that the use of this device--the Geotab7--increases safety and 
accurately records all of the drivers' activities, including on-duty 
and driving time as well as total hours for that day. This device has 
been installed in all of Farruggio's CMVs, and, according to the 
applicant, exceeds even the requirements of FMCSA's Electronic Logging 
Device (ELD) rule. The Geotab 7's global positioning system (GPS) 
technology allows Farruggio to track vehicles, monitor all vehicle 
activities through connection to the engine control module, and 
accurately report drivers' hours driven and hours worked daily.
    Farruggio believes that the use of the Geotab 7 system, along with 
its increased focus on driver training and education, demonstrates its 
commitment to more than simple compliance with the Federal regulations. 
The system has allowed and will continue to allow Farruggio to enhance 
timely safety oversight and reduce driver fatigue. Farruggio believes 
that its exemption application incorporates safety technologies that go 
beyond minimal compliance, and will enable the company to maintain a 
level of safety that is equivalent to or greater than the level of 
safety provided under the rule.

Public Comments

    On February 12, 2016, FMCSA published notice of this application 
and requested public comment (81 FR 7626). The Agency received 17 
comments. Supporting the exemption request were four motor carriers 
(TCW, Inc., Tiger Cool Express, Rail Delivery Services for itself and 
four other carriers, and Evans Delivery Company), two insurance firms 
(Baldwin & Lyons and Marsh McLennan Agency), the Intermodal Association 
of North America, and six individuals (Fred Marsicano, Ron Dorazio, 
Thomas Michel, Matt Carlton, Charles Bernier, and Val Noel). Opposed 
were one carrier (Randy Mower) and three individuals (Karl Penner, Lt. 
Raymond Cook, and Robert Vice).
    Those supporting the request believe the ongoing and diligent use 
of Farruggio's telematics system is superior to a manual ``honor 
system'' to record driver work day information because it automates 
data collection and is therefore more precise and less error prone than 
a paper RODS system. They further believe the use of the Geotab7 system 
for safety management through identification of driving events is 
better at reducing crashes than a system which depends on citations, 
public reports of reckless driving, or actual crashes as indicators of 
inappropriate driving behaviors. Farruggio's proposed terms indicate a 
strong commitment to safety, compliance, and transparency as indicated 
by its willingness to give FMCSA and our State enforcement partners 
access to its data to use as a training and monitoring tool. Lastly, 
the use of this technology will aid Farruggio to proactively identify 
safety and compliance issues and to address them before they become 
more serious. ELD technology is a better means to record and maintain 
driver HOS, as well as the standard FMCSA will soon require motor 
carriers to meet.
    Commenters opposing the request stated that extending the work day 
for a local or regional driver but not an over-the-road driver does not 
improve safety, as these rules are in place for safety reasons, not for 
convenience. Others said that studies consistently point to driver 
fatigue as a major safety concern because it contributes to a 
significant percentage of fatal truck crashes in this country. The HOS 
rules are designed to prevent crashes and save lives. Motor carriers 
across the country face wait times at rail yards, warehouses, and other 
locations, and each has found ways to adjust its operations in 
anticipation of these expected operational delays. Granting Farruggio's 
request would establish a bad precedent and necessitate the extension 
of this recordkeeping relief to others. Therefore, granting this or any 
other exemption to the HOS rules only serves to diminish their 
efficacy.
    All comments are available for review in the docket for this 
notice.

FMCSA Decision

    FMCSA has evaluated Farruggio's application for exemption and the 
public comments and decided to grant the exemption. The Agency believes 
that Farruggio's overall safety performance as reflected in its Safety 
Management System (SMS) ratings and its adoption of several fatigue and 
crash counter-measures, will enable it 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)).
    FMCSA believes that Farruggio's use of the Geotab 7 system raises 
the company's efforts to more than basic compliance. With the use of 
the electronic system, Farruggio's management is notified of safety-
critical events as they occur so that they can take immediate 
corrective action.
    This exemption would not extend the driving window beyond the basic 
limit of 14 hours. It substitutes a technological HOS recordkeeping 
system for a system using only time cards, and provides additional 
safety measures stated in the terms of the exemption. FMCSA has 
therefore decided to grant the exemption, subject to the terms and 
conditions outlined below.

Terms and Conditions of the Exemption

Terms of the Exemption

     Farruggio's drivers who stay within the 100 air-mile 
radius, but may occasionally exceed the 12 hour limitation are exempt 
from having to complete a daily record of duty status

[[Page 52955]]

(RODS) at those times if, at all times, their hours of service data is 
being recorded by the Geotab system.
     This exemption does not permit driving past the 14-hour 
limit.
     The exemption is contingent upon Farruggio maintaining 
USDOT registration, minimum levels of public liability insurance, and 
not being subject to any ``imminent hazard'' or other out-of-service 
(OOS) order issued by FMCSA.
     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.
     Farruggio must have a ``Satisfactory'' safety rating with 
FMCSA, or be ``unrated.'' (Void if FMCSA discontinues this type of 
ratings.)
     Farruggio must not have an ``alert'' in the SMS ``BASIC'' 
for HOS, as displayed at http://ai.fmcsa.dot.gov/sms/.
     Drivers operating under the exemption must comply with all 
other applicable provisions of the FMCSRs, including those pertaining 
to Automatic Onboard Recording Devices and Electronic Logging Devices.

Period of the Exemption

    This exemption from the requirements of 49 CFR 395.1(e)(1) is 
effective from August 10, 2016 through August 10, 2021.

Extent of the Exemption

    This exemption is limited to the provisions of 49 CFR 395.1(e)(1) 
(Short haul operations; 100 air-mile radius driver). These drivers must 
comply with all other applicable provisions of the FMCSRs, including 
those pertaining to Automatic Onboard Recording Devices and Electronic 
Logging Devices.

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

    Under this exemption, Farruggio 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: ``FARRUGGIO''
    (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 on-duty time period prior to 
the accident.
    Accident notifications shall be emailed to [email protected].

Termination

    FMCSA believes that Farruggio's drivers 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 revoke or restrict the exemption for 
failure to comply with its terms and conditions.

    Issued on: July 29, 2016.
T.F. Scott Darling, III,
Administrator.
[FR Doc. 2016-18978 Filed 8-9-16; 8:45 am]
 BILLING CODE 4910-EX-P