U.S. Legislative Issues

After two and a half weeks of fierce posturing in Washington, lawmakers finally came to an agreement that allowed the Federal Government to call employees back to work and avoid default by raising the nation’s debt limit. What started as a stand against the Affordable Care Act by House Republicans quickly turned out to be a tactical error when polling showed overwhelming opposition to shutting down the government. As public pressure continued to mount, party leaders in the Senate crafted an agreement that would fund the government through January and allow the Treasury to borrow through early February. The measure also provides pay for the federal workers furloughed by the shutdown and reemphasizes measures in the ACA to ensure health care subsidies only go to those who qualify.


On October 16, former Transportation Secretary Ray LaHood called for an increase of 10 cents on the 18.4 cents per gallon tax on gasoline and 24.4 cents per gallon tax of diesel fuel in a speech before a transportation forum in Arlington, Virginia. He went on to say that the gas tax, which hasn’t been raised since 1993, should be indexed to inflation, adding, "If the gas tax had been indexed in 1993, we wouldn't be having this debate."

The most recent transportation bill provides $54 billion annually, which is barely enough to keep up with the nation’s aging infrastructure. According to the Department of Transportation, the gas tax traditionally brings in $35 billion per year, so money from the General Fund is currently necessary to cover the balance.


An Environmental Protection Agency (EPA) draft proposal concerning levels for the Renewable Fuels Standard (RFS) for 2014 surfaced during the week of October 7. The Agency is considering a proposal to mandate 15.22 billion gallons of biofuels next year, which is less than the 18.15 billion gallons currently scheduled to be mandated next year. The lower proposed levels are in response to concerns from refineries that the levels mandated by the statue would require them to breach the so-called "Blend Wall," which is to blend more ethanol into gasoline than is technically feasible. On October 14, the American Coalition for Ethanol (ACE) countered by saying the move represents little more than a win for the oil companies. According to ACE Executive Director Brian Jennings, adopting the proposal would be letting oil companies off the hook since he says they have not made needed investments in infrastructure that can handle higher blends of ethanol. Caving in to the oil industry's demands would set a "dangerous precedent," he warned EPA Administrator Gina McCarthy in a letter.


While the Congress’s shutdown standoff entered the third week, President Obama signed legislation to ensure that the Federal Motor Carrier Safety Administration (FMCSA) uses a formal rulemaking for any changes to sleep apnea testing and treatment for commercial trucker drivers. The agency announced it would comply with the bill's intent as the legislation gained steam, but that commitment didn't stop the bill - it was signed into law just 33 days after it was introduced in the House