U.S. Legislative Updates

Legislation Will Make Federal Government Liable for E15 Damage

Representative Charles Gonzalez (D-TX) introduced legislation (H.R. 523) that would assign liability to the federal government for any claims of engine damage caused by the use of ethanol-based fuels containing more than 10 percent ethanol. The bill is in response to EPA's recent actions to increase the amount of ethanol mixed with gasoline from 10 percent to 15 percent. The legislation would apply to liability claims for engine damage against those that manufacture, use, sell, or distribute transportation or renewable fuels or products that use transportation fuel. Although it is unlikely that this bill will be enacted by Congress this year, the legislation is an indication of an increasing awareness in Congress of the consequences associated with the retail sale of E15.

Legislation Will Provide Incentives for Electric Vehicles

Senator Debbie Stabenow (D-MI) introduced legislation to spur the sale and production of advanced technology vehicles. Sen. Stabenow's Charging America Forward Act (S. 298) will provide fleets and consumers with a rebate worth up to $7,500 for plug-in electric vehicles at the time of purchase and extends to 2014 the tax credit for purchasing medium- or heavy-duty plug-in hybrid trucks. The bill also extends a public-private partnership she helped create to increase the production of advanced battery technologies in America. NAFA's U.S. Legislative Counsel has confirmed that the senator's intent is to allow both government and private fleets to benefit from the $7,500 plug-in vehicle credit, and that the senator will work with NAFA on legislation to allow government fleets to take advantage of tax incentives on medium- and heavy-duty hybrid trucks.

House Cuts EPA Funding for Greenhouse Gas Emissions

During consideration in the U.S. House of Representatives on legislation to fund the government through the end of the current fiscal year, the House voted to sharply cut funding for the U.S. Environmental Protection Agency's (EPA) program that collects data on industrial greenhouse gas emissions. The underlying federal spending bill being considered by the House also blocks funding for EPA's climate change regulatory program.

Budget Proposal Cuts Spending for DERA but Boosts Funds for Electric Vehicles

The Obama administration's proposed 2012 budget includes elimination of funding for the Diesel Emission Reduction Act (DERA) grants program. DERA grants are designed to help states and localities reduce emissions from diesel engines by retrofitting or replacing older diesel engines. The Administration's budget explanation says that the program has achieved its short term objectives and that additional emission reductions will occur without DERA funding.

The Administration has stated a serious commitment to electric vehicle technology, with a proposal to transform the existing $7,500 tax credit for electric vehicles into a rebate available to consumers at the point of sale; a $200 million program to invest in electric vehicle infrastructure; removal of regulatory barriers to implementing electric vehicle infrastructure; and an increase in support for vehicle technology R&D.

NAFA Fleet Management Association
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Telephone: 609.720.0882 Fax: 609.452.8004