REPORT TO THE CITY COUNCIL
October 19, 2017
FROM: STEVE BRANDAU, Councilmember for District 2
City Council Office
SUBJECT
Title
RESOLUTION - Of the Council supporting House Resolution 3282, the “ELD Extension Act of 2017”
Body
RECOMMENDATIONS
It is recommended the Council adopt the position resolution supporting House Resolution 3282, the “ELD Extension Act of 2017.”
EXECUTIVE SUMMARY
House Resolution 3282, the “ELD Extension Act of 2017”, is an Act amending Title 49 of the United States Code, and would delay an electronic logging device mandate for commercial vehicles for two years. The mandate as written will have a negative impact on local trucking companies, especially owner-operators. Supporting this amendment gives affected trucking companies more time to work with Congressional Representatives and the Administration to find solutions and correct problems with the rulemaking.
BACKGROUND
In 2012, Congress passed The Commercial Motor Vehicle Safety Act, as part of Moving Ahead for Progress (MAP-21), which contained a mandated new rulemaking for Electronic Logging Devices (ELDs) in commercial motor vehicles. The rules were finalized in 2017, with a required compliance date of December 18, 2017. ELDs are designed to electronically record the vehicle and driver’s hours of service. The rule, designed to “improve safety and reduce overall paperwork burdens” has been hit with resistance from freight-haulers nationwide, especially “owner-operator” independent drivers, who say the mandate was poorly planned and implemented, and as a result places a major burden on their small companies. Owner-Operated companies are individuals that own and operate their own trucking business. They are typically very small family companies and have enabled many thousands of American families to climb the economic ladder out of poverty.
Complaints on the ELD mandate also say that the Federal Motor Carrier Safety Administration itself is unprepared to handle the ELD data, and that there are still major questions on enforcement, equipment specifications, connectivity, and cyber-security. Concerns are mounting as there are less than three months until all trucks must comply with the new law. Industry experts estimate that almost a third of vehicles are still not ready.
House Resolution 3282, the “ELD Extension Act of 2017”, would delay implementation of the ELD mandate, allowing Congress and the Administration the time necessary to address these complains and concerns from small businesses who were being hurt by rulemaking.
It is recommended that the Council adopt a resolution in support of H.R. 3282 due to the impacts on local companies from the ELD mandate. Fresno lies on the backbone of the west coast transit corridor, and as such is home to thousands employed in the trucking and shipping industry. A large percentage of these are Owner-Operator companies, and are being hit the worst by the mandate. The mandate as written will likely result in an price increase on consumer goods shipped nationwide.
Support of the resolution does not oppose implementation of an ELD mandate, only the implementation timeframe.
ENVIRONMENTAL FINDINGS
This is not a project for CEQA purposes.
LOCAL PREFERENCE
Local preference is not applicable because this item does not involve an award of a contract.
FISCAL IMPACT
There is no direct fiscal impact from passing this resolution.
Attachment: Resolution