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How to Handle the Hours of Service Exemption Without ELD Penalties

Transport Canada has given an Hours of Service (HOS) exemption for drivers transporting refined petroleum products (diesel, gasoline, jet fuel, gasoline-ethanol blends, and ethanol) between and through Alberta, Saskatchewan, Manitoba, and Ontario.

If a carrier and driver have managed to jump through the many many hoops required to use the Refined Petroleum Products Distribution Sector Exemption, specific steps must be taken to manage ELD functionality. I have broken it down so you and your drivers don’t get popped with fines roadside or face failure-to-monitor penalties during an NSC Standard 15 Audit or compliance review.

How the Exemption Changes Driver Hours

The Refined Petroleum Products Distribution Sector Exemption allows a driver to operate 84 hours on-duty in 7 days rather than 70 hours—essentially gaining 14 additional hours in 7 days.

Here is how the driver math breaks down in real life:

• Reduced Off-Duty Time: The daily off-duty requirement is reduced from 10 hours to 9 consecutive hours.
• Faster Shift Rotations: A driver can complete a full 14-hour shift every 23 hours (14 hours on-duty + 9 hours off-duty).
• Extra Shift Potential: Over a 7-day period, this allows a driver to work 6 complete 14-hour shifts before they hit the 7-day cap and are required to take their 36-hour reset.

The exemption essentially gives carriers one extra full 14-hour work shift per week per driver by eliminating the mid-week downtime enforced by the 70-hour cap.

The ELD Problem: How to Make It Work in the Cab

All great things, but how does it work in the cab of the truck?

A driver using an ELD under the Federal hours of service rules cannot change or select an 84/7 cycle in the ELD software.

Drivers must remain logged into their standard 7/70 cycle and rely on the "Remarks" section of their record of duty status.

Daily Log Remarks

For every day the driver operates under this exemption, they must enter a clear note in the Remarks section of their ELD log stating that the exemption is active.

Example Remark: "Operating under Transport Canada Section 16 Refined Petroleum Exemption."

Managing ELD Violations and Roadside Inspections

Because the ELD software continues to run on standard 70-hour cycle logic, it will trigger automated warnings:

1. Expect False Violations: On the very first shift where a driver takes only 9 hours of off-duty time, the ELD will place the driver in an off-duty violation. The ELD will indicate violations for the entire 7-day period.
2. Roadside Explanation: When stopped roadside or at an inspection station and required to produce or transfer ELD data pursuant to SOR 2005-313 98(2) and Technical Standard 4.8.2.1, the driver must be able to explain the active violations.
   • What the driver should politely say: "Officer, I am operating under the Refined Petroleum Products Distribution Sector Exemption. My ELD indicates an off-duty or cycle violation because the device cannot accommodate an 84-hour cycle, but my RODS contain the required exemption remarks."
3. Required In-Cab Documents: It is imperative the driver can explain this functionality and carry a copy of the Section 16 Exemption and the Federal Director's Acknowledgement Email in the cab to avoid being placed out of service. See my BLOG ELD violations finally defined: What CVSA 2026-02 means for carriers. A driver unaware of the ELD violation out of service criteria runs the risk of being places out of service potentially 72 hours instead of 8.

Carrier Monitoring and Dashboard Auditing

It’s not all on the driver, the carrier has extra work as well. Because the ELD will trigger driver violations, those violations will show up directly on the carrier’s ELD management dashboard.

Under the conditions of the exemption, safety personnel must actively manage these records:

• Log and Track Dashboard Flags: Safety managers must review and record all ELD-generated cycle and off-duty violations stemming from exempt operations.
• Document Compliance: Maintain evidence showing that each flagged violation was reviewed and verified against the Section 16 exemption criteria (verifying valid Remarks, driver certification, and required off-duty periods).
• Audit Trail: Keep these monitoring records, driver abstracts, and collision reviews on file for at least 6 months following the termination of exempt operations. Failure to document and monitor these dashboard violations puts the carrier at risk for failure-to-monitor penalties during an NSC Standard 15 Audit.

If you plan to leverage this exemption do not wait to get your paperwork and processes in order, this exemption expires in just 10 days. Gathering the required Canadian Fuels Association confirmation email, submitting your notice to Transport Canada, pulling updated 12-month driver abstracts, and training your drivers on mandatory ELD log remarks takes time.

Good luck and shoot me a message if you have questions.