U.S. Legislative News

Congress Approves Retroactive Extension of Fuel-Related Tax Incentives

On February 9, President Trump signed a bipartisan deal to reopen the government after a five-hour shutdown. While the legislative agreement sets out broad budget numbers for the next two fiscal years, it technically only funds the government through March 23, 2018. Between now and then, congressional appropriators will write a detailed bill outlining government funding through the end of the fiscal year.

The agreement retroactively renews the following energy tax extenders supported by NAFA (notably, the extensions only apply to 2017). Additional Congressional action is required to extend the tax benefits for 2018:

• $1 per gallon of biodiesel and renewable diesel used or sold by a business. The credit would be 10 cents per gallon for small agri-biodiesel, which is derived from oils such as soy, canola, and flaxseed.
• $1.01 per gallon, generally, for the production of second-generation biofuels, which are made from agricultural residue or waste.
• 50 cents per gallon of alternative fuel produced for use in a motor vehicle, motorboat, plane, or fuel mixture. Qualified alternative fuels include liquefied petroleum gas, natural gas, or hydrogen, as well as alternative fuel mixtures.
• 30 percent, or as much as $30,000, for alternative fuel vehicle refueling property installed at each separate location of a business or $1,000 for property installed at a residence.
• $4,000 tax credit for the purchase of qualified light-duty fuel cell vehicles.

White House Unveils Infrastructure Proposal

On February 12, the White House rolled out President Trump’s long-awaited infrastructure plan that aims to repair the nation’s roads, bridges, tunnels, and more. The plan includes $200 billion in federal funding over the next 10 years, aiming to raise up to $1.5 trillion by incentivizing investment from state and local governments as well as the private sector. The plan also focuses on streamlining the approval process for bigger projects – cutting down the approval time for projects to two years from the current five to 10.

President Trump’s proposal differs from typical infrastructure spending given that the federal government usually covers a bulk of the cost. Under this plan, local governments would take on 80 percent or more of the funding burden.

The White House proposal is not expected to gain much traction in Congress for a variety of reasons. Republicans, for example, are hesitant to add another $200 billion to the deficit after passing tax reform. Democrats are dubious of the plan’s emphasis on private-public partnerships. An already packed legislative calendar and the upcoming midterm elections further complicate a pathway to progress.

Renewed Focus on Sleep Apnea Spurred by Recent Train Collisions

On August 4, 2017, the Federal Motor Carrier Safety Administration (FMCSA) and the Federal Railroad Administration (FRA) announced the withdrawal of a 2016 advance notice of proposed rulemaking seeking information on potential standards for screening and treatment mandates for commercial drivers and rail workers diagnosed with obstructive sleep apnea (OSA). Based on feedback from the public, the FRA concluded that not enough data was received to support future rulemaking.

“The agencies determined that current and upcoming safety programs appropriately address fatigue risks, including OSA,” the agency stated, adding, “FRA continues to work closely with the National Transportation Safety Board (NTSB) and will review their recommendations thoroughly.”

However, recent determinations by NTSB which indicated that undiagnosed OSA was to blame for two high-profile train collisions in New York and New Jersey have prompted renewed questions about the FMCSA’s decision to abandon the adoption of standards that would assess risks associated with workers in safety-sensitive situations diagnosed with sleep apnea.

“Undiagnosed, untreated sleep apnea has caused collisions and calamities on our roads and railroads,” said Sen. Richard Blumenthal (D-Conn.), ranking member of the Consumer Protection, Product Safety, Insurance, and Data Security Subcommittee. “The Trump administration must immediately reverse course and implement rules on sleep apnea, and take swift action on the many safety and oversight shortcomings highlighted by NTSB’s findings.”