U.S. Legislative Issues

On July 22, 2016, automakers, security experts, cybersecurity companies and government officials discussed the importance of industry collaboration aimed at keeping cars safe from being hacked as part of the Billington Global Automotive Cybersecurity Summit. Many of the speakers, including Assistant U.S. Attorney General John Carlin, warned that global security threats are rising and that industry, government and law enforcement need to work together to counter these threats or risk the advances being made in connected and autonomous vehicles being set back by years.

"The problem is that today’s automobiles and trucks are supercomputers on wheels," said Mark Rosekind, Administrator of the National Highway Traffic Safety Administration (NHTSA). "Onboard microprocessors operate everything from infotainment systems to engine and brake controls. This high-tech transformation is only going to continue as part of the push to develop autonomous vehicles." The transformation also offers numerous opportunities for hackers, experts stressed – a situation even further complicated by the growing number of wireless access points in today’s vehicles.

"Autos and trucks face the same threats," said Jeffrey Massimilla, GM’s Chief of Cybersecurity and leader of the creation of ISAC, the Information Sharing and Analysis Center, which is working cooperatively to address mobile cybersecurity. "That’s one of the reasons why the hacker threat has to be dealt with on an industry-wide basis."

U.S. Department of Transportation (DOT) Secretary Anthony Foxx announced at the Summit that the Department plans to release a set of guidelines on cybersecurity best practices for the automotive industry in the coming weeks. Automakers are reportedly working with DOT and NHTSA to develop the guidelines.  "We cannot underestimate the risk," said Mark Reuss, GM's Executive Vice President of Global Product Development.



Following the Department of Energy’s (DOE) first-ever held Sustainable Transport Summit, the White House has announced its partnership with over 50 industry groups that have signed onto its "Guiding Principles to Promote Electric Vehicles and Charging Infrastructure." "This commitment signifies the beginning of a collaboration between the government and industry to increase the deployment of electric vehicle (EV) charging infrastructure," said the White House in a statement.

As part of the initiative, DOE is promising $4.5 billion in loan guarantees to accelerate a national network of EV charging stations. The loans will provide support for federal, state, and local governments, who will partner with Ford Motor Co., General Motors Co., Nissan Motor Co., and Tesla Motors Inc. The network of stations is designed to relieve "range anxiety," a sentiment expressed by many would-be or current EV owners who worry about not being able to find a charging station to power longer trips.

To determine the best locations for EV charging stations, the initiative will first identify zero emission and alternative fuel corridors across the country, as originally outlined in the Fixing America's Surface Transportation (FAST) Act. The announcement also called on local, county, and state governments to procure electric-powered fleets. To assist with this challenge, the DOE will publish a guide to federal programs for funding, financing, and providing technical assistance for e-vehicle and charging stations. DOE will also host an "Electric Vehicle Hackathon" to discover, share, and develop new charging solutions.



A bipartisan group of senators led by Sens. Roy Blunt (R-MT), Patty Murray (D-WA), Chuck Grassley (R-IA), and Heidi Heitkamp (D-ND) responded to the U.S. Environmental Protection Agency (EPA)’s recently proposed Renewable Volume Obligations (RVOs) for biomass-based diesel (biodiesel) for calendar year 2018 by urging the agency to increase the volumes in the final rule.

In a letter sent July 21, the group of 40 senators emphasized that biodiesel and renewable diesel are leading the way in delivering Advanced Biofuels under the RFS and said the EPA should do more to encourage their growth.

Biodiesel and renewable diesel fall under the Biomass-based Diesel category of the RFS, which is an Advanced Biofuel category intended to ensure that the policy also addresses the diesel fuel market, not just gasoline. Under the law, Advanced Biofuels must reduce lifecycle greenhouse gas emissions by at least 50 percent compared to petroleum fuels.

The EPA proposal would establish a 2.1-billion-gallon Biomass-based Diesel requirement in 2018, up only slightly from the already established 2-billion-gallon requirement for 2017. Citing unused industry capacity and data showing that Biomass-based Diesel consumption is already exceeding 2.1 billion gallons annually, the senators called for at least 2.5 billion gallons for 2018.



In 2012, the White House mandated a more than doubling of vehicle fuel efficiency by 2025 to 54.5 miles per gallon. To solidify buy-in from automakers, the Administration agreed to a midterm evaluation (MTE) to re-evaluate the economic and technological feasibility of meeting or exceeding the fuel efficiency standards for passenger cars and light trucks. The U.S. Environmental Protection Agency (EPA), in partnership with the National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB) were tasked with conducting the MTE.

On July 18, 2016, EPA, NHTSA, and CARB jointly issued their Draft Technical Assessment Report (TAR) as part of the MTE process for public comment. Public input on the Draft TAR, along with new data and information, will inform EPA’s decision to adjust miles-per-gallon and greenhouse gas targets for 2022-2025.

EPA’s ultimate decision could go one of three ways: the standards remain appropriate, the standards should be less stringent, or the standards should be more stringent. EPA is examining a wide range of factors, such as developments in powertrain technology, vehicle electrification, light-weighting and vehicle safety impacts, the penetration of fuel efficient technologies in the marketplace, consumer acceptance of fuel efficient technologies, trends in fuel prices and the vehicle fleet, employment impacts, and many others.

The report largely applauds the auto industry for its advances in meeting fuel efficiency standards: "Today’s draft report shows that automakers are developing far more technologies to improve fuel economy and reduce greenhouse gas emissions, at similar or lower costs, than we thought possible a few years ago," the EPA’s Janet McCabe said in a statement. "This is simply great news for consumers, manufacturers, workers and the climate."

The auto industry has made its opposition to the proposed Corporate Average Fuel Economy (CAFE) target of 54.5 mpg known to regulators. The Alliance of Automobile Manufacturers, a trade group for 12 carmakers and the Detroit 3, said in a statement that "excessive regulatory costs could impact both consumers and the employees who produce these vehicles."  It says the altered stance by regulators is just a very practical nod to consumer demand. "The government is acknowledging the effect of factors like low gas prices on consumer sales, and the impact of consumer sales on those targets."

EPA will release its final determination no later than April 1, 2018.