BEAR, Berkeley Economic Advising and Research

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California Highway Patrol: electronic logging devices for intrastate truck drivers

The Standardized Regulatory Impact Assessment for requiring California’s intrastate truck drivers and motor carriers to use electronic logging devices, matching the federal rule for interstate carriers.

Two line charts, California population and personal income 2020 to 2031, with the Department of Finance and BEAR baseline series overlapping
The BEAR baseline (dotted) against the Department of Finance forecast (dashed) for California population and personal income. Figures 9.1 and 9.2 of the CHP SRIA (2022).

The question

What would the requirement cost drivers and carriers, what would it save them, and what would it do to the state economy?

What BEAR found

6.25Benefit-cost ratio of the rule
366,800Intrastate drivers covered, 197,043 not yet using a device
9,112Average annual gain in full-time jobs over the decade

Direct costs average about $49 million a year over the decade, against about $306 million a year in benefits: $272 million in paperwork savings and $35 million in avoided crashes, a net direct benefit of $257 million a year.

The economy gains an average of $548 million a year in gross state product and 9,112 full-time jobs, rising to $989 million and 14,687 jobs by 2031. The Department of Finance summary records the impacts as estimated using the BEAR forecasting model.

Method

The BEAR dynamic CGE model (60 sectors on 2018 IMPLAN data), run over 2022 to 2031 against the Department of Finance’s June 2021 conforming forecast. Direct costs and benefits were adapted from the federal FMCSA electronic logging device regulatory impact analysis and scaled to California.

Team

David Roland-Holst (project manager), Drew Behnke, Andrew Lee and Samuel Neal.

Public record

How to cite

Roland-Holst, D., Behnke, D., Lee, A., and Neal, S. (2022). Standardized Regulatory Impact Assessment: Electronic Logging Devices for Intrastate Motor Carriers and Drivers. Berkeley Economic Advising and Research. Prepared for the California Highway Patrol.

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