U.S. Legislative Updates

 NAFA Urges Passage of the AV START Act

On July 23, NAFA joined a coalition of more than 100 key stakeholders in sending a letter to Senate leadership and leaders of the Senate Commerce Committee urging passage of S. 1885, the AV START Act, legislation that would regulate autonomous cars and trucks lighter than 10,000 pounds and advance the development and deployment of highly automated vehicles (HAVs). In addition, the legislation will help provide a clear delineation of federal and state roles with respect to HAVs—a critical aspect that the coalition argues “will protect against a patchwork of regulations that could stifle innovation, job growth, and the development of safety technologies that will reduce the number of lives lost on U.S. roadways.”

The House passed a similar bill, the Self Drive Act, nearly a year ago. Despite the broad bipartisan support, however, progress over the Senate bill has stalled. Five Senate Democrats, concerned that self-driving cars aren't yet safe enough to place on public roads without stricter performance requirements, are blocking the bill. The Senators’ opposition was further fueled after a fatal crash involving an Uber autonomous car in Arizona earlier this year.

Proponents of the Senate bill are exploring ways to bring the AV START Act to a vote, but prospects are dim as the Senate calendar fills up with other priorities. This is deeply frustrating to House members who see the inaction as delaying the adoption of potentially life-saving technology and eroding the U.S. advantage in research and development. Automakers and technology companies working on autonomous systems say they need regulatory certainty and consistency before fully committing to research and development efforts in the U.S.

“The AV START Act represents a historic opportunity for Congress to establish a technology-neutral regulatory framework to advance groundbreaking technologies while supporting research and investment in the U.S.  As such, we respectfully urge all Senators to support S. 1885, as it moves toward Senate consideration,” the coalition wrote in its letter.

 

NAFA Supports Bill to Repeal Federal Excise Tax on Heavy-Duty Trucks

On June 13, Sen. Cory Gardner (R-Colo.) introduced S. 3052, the Heavy Truck, Tractor, and Trailer Retail Federal Excise Tax Repeal Act, legislation that would repeal the excise tax on heavy trucks and trailers with a Gross Vehicle Weight Rating (GVWR) in excess of 33,000 pounds. On July 24, NAFA sent a letter expressing its support for S. 3052 to Sen. Gardner.

The U.S. tax code currently imposes a 12 percent federal excise tax (FET) on the sale of all heavy-duty trucks, tractors, and trailers. This tax is the highest FET levied by Congress on any product. The excise tax was originally imposed to help defray the cost of World War I. Since 1955, the excise tax rate on new heavy-duty trucks, tractors, and trailers has increased by 300 percent, ballooning from three percent to its current rate of 12 percent. According to the American Truck Dealers, the tax adds between $12,000 and $22,000 to the price of new heavy-duty trucks.

The effort to repeal the tax is also supported by the American Truck Dealers, the National Trailer Dealers Association, Navistar, the Association for the Work Truck Industry, the Recreation Vehicle Dealers Association, and the Truck & Engine Manufacturers Association, among others.

 

House Transportation Committee Chairman Unveils Legislative Infrastructure Proposal

On July 23, House Transportation and Infrastructure Committee Chairman Bill Shuster (R-Pa.) released a legislative discussion draft to further the national conversation about the current state of America’s infrastructure and highlight some of the major roadblocks to funding and improving the transportation network.

The proposal reforms and addresses the short-term and long-term solvency of the Highway Trust Fund (HTF), and ultimately eliminates the federal gas and diesel taxes. The proposal envisions replacing the fuel excise tax with a vehicle miles traveled tax. The proposal also creates an HTF Commission of experts to study how best to achieve the long-term solvency of the HTF and recommend to Congress a modern solution. The results of the Commission will take the form of a legislative recommendation that will be presented to Congress for a simple up-or-down vote. However, the Commission cannot propose to continue or adjust the gas and diesel taxes. An innovative solution must be proposed.

The proposal also establishes a national, voluntary pilot program to test the viability of replacing current HTF user fees with a per-mile user fee. This pilot program will help address a variety of policy issues associated with a per-mile user fee and provide Congress with important information.

A detailed section-by-section summary of the Chairman’s proposal is available here.

 

Congress Passes Bill to Modernize Vocational Training

On July 23, the Senate passed S.3217, the Strengthening Career and Technical Education for the 21st Century Act, legislation that would update federal career and technical education (CTE) programs. Specifically, the bill would update the Carl D. Perkins Career and Technical Education Act to closer align career and technical programs with the needs of local businesses. The legislation builds on a bill passed by the House last year that focuses on giving local business groups and workforce development programs a say in how localities spend the federal funding.

Given the challenges many fleet managers face in recruiting technicians equipped with the advanced skills necessary to meet today’s auto repair needs, NAFA strongly applauds House and Senate efforts to modernize CTE programs. NAFA especially appreciates the provisions in the bills that encourage strong and flexible partnerships between educators, employers, and community partners; as well as those regarding the implementation of innovative CTE programs; improving outcomes through an increased focus on employability skills; work-based learning opportunities; and meaningful credentialing to make students more competitive.

On July 25, Congress sent a final CTE bill to the President, who has indicated he will sign it.

 

Natural Gas Vehicle Parity Legislation Introduced

On July 18, Senator Jim Inhofe (R-Okla.) introduced S. 3226, the Light-Duty Natural Gas Vehicle Parity Act of 2018, legislation that would ensure federal agencies give the same regulatory treatment to natural gas vehicles (NGVs) as electric vehicles, as well as remove eligibility-based design restrictions, such as those imposed on dual-fuel NGVs. Currently, electric vehicles receive significant regulatory incentives, while NGVs receive none of the incentives of other low emission vehicles. A similar bill has been introduced in the House by Rep. Bill Johnson (R-Ohio).

“Natural gas vehicles have great potential for widespread adoption because of their use of reliable, low-cost, American-made energy,” Inhofe says. “This bill addresses one of the biggest hurdles to the production of more natural gas vehicles: regulation. By providing regulatory parity between natural gas and electric vehicles, natural gas vehicles can have a level playing field in the marketplace.”

Sen. Inhofe has also sent a letter to Andrew Wheeler, Acting Administrator of the U.S. Environmental Protection Agency, urging him to provide regulatory relief while Congress considers the legislation.

 

Auto Associations Issue Statement on NAFTA Modernization Discussions

On July 9, a unified group of automotive industry associations representing vehicle and parts manufacturers in the U.S., Canada, and Mexico urged a renewed focus on trade negotiations with the U.S., Canada, and Mexico to modernize NAFTA in the following joint statement:

“As a new government forms in Mexico on December 1, 2018, we believe now is the time for all parties to return to the negotiating table with a renewed commitment to the modernization of a cohesive three-country NAFTA agreement. We have a great opportunity to update this trade agreement and it is in the best interest of all three countries to refocus on establishing a new NAFTA agreement that will allow the North American auto industry to remain globally competitive.”