U.S. Legislative News

Senate Committee Releases Highway Reauthorization Package

On July 29, the U.S. Senate Committee on Environment and Public Works (EPW) released a draft of its five-year $287 billion surface transportation reauthorization bill, America’s Transportation Infrastructure Act (ATIA). The five-year funding level is more than a 27% increase above the current funding authorization (The FAST Act) and will be the largest highway bill in history. The legislation includes provisions to improve road safety, accelerate project delivery, improve resiliency to disasters, reduce highway emissions, and grow the economy. There will be a strong push to move the reauthorization bill through Congress, as the FAST Act is set to expire at the end of FY 2020.

ATIA covers a wide range of NAFA-supported transportation and infrastructure-related programs. These include funding for hydrogen, natural gas, and electric vehicle fueling infrastructure, Diesel Emissions Reduction Act (DERA) grant program reauthorization, the study of vehicle-to-infrastructure connectivity safety benefits, grants for states to study alternative road user fees, emerging vehicle technologies research, and transportation workforce development. NAFA has worked directly with Senate EPW members and staff to ensure that many of these provisions were included in the package.

 

EPA Releases Report on DERA Benefits 

The EPA has sent its fourth report to Congress highlighting the benefits of the Diesel Emissions Reduction Act (DERA). The report shows that from 2008–2016 EPA has awarded $629 million in DERA funds, which has allowed for the upgrading of 67,300 vehicles or pieces of equipment. The upgrades have resulted in an estimated 454 million gallons of fuel savings and a total lifetime emission reduction of 15,490 tons of PM2.5 and 472,700 tons of NOx. Overall the estimated health benefits of the program are placed at around $19 billion.

Standalone legislative efforts are underway to reauthorize (S. 747/H.R. 1768) and fund (H.R. 3052) future DERA grants. DERA reauthorization is also included in the Senate EPW Committee’s highway reauthorization package (ATIA). NAFA has been meeting with Senate appropriators as part of the DERA Coalition. DERA grants are awarded on a case-by-case basis and have historically been a valuable source of funding for fleets.

 

NAFA Meets with FCC on Safety Spectrum

On July 16 and 17, NAFA and other members of the Safety Spectrum Coalition met with officials from the Federal Communications Commission (FCC) to discuss pending FCC regulations that could limit usage of cellular vehicle-to-everything (CV2X) technology and Dedicated Short Range Communications (DSRC) within the 5.9Ghz band. NAFA’s wants to ensure that the 5.9Ghz spectrum is preserved for automotive safety technology use.

NAFA works with the Safety Spectrum coalition in support of Advanced Driver Assistance Systems (ADAS) technologies that rely on DSRC and C-V2X, which would operate within the dedicated 5.9 GHz spectrum. However, the current regulatory environment for these technologies is unclear, which is disincentivizing investments in V2X technology. The enormous potential safety and efficiency benefits of these innovations for the transportation system underscore the need for DOT to act. Without a core set of regulations in place in the U.S. market, automakers may potentially invest in noncompatible technologies that could significantly hinder the benefits of V2X.

 

Coalition Letter to Congress Supporting FET Repeal

NAFA joined allied organizations in sending a letter to House and Senate leadership, which calls for a repeal of the 12% federal excise tax (FET) on heavy-duty trucks and trailers. The Modern, Clean, and Safe Trucks Act (H.R. 2381/S. 1839) would repeal the 12% FET that was initially imposed in 1917 to help fund World War I. The tax is considered to be particularly hard to administer, and the added cost on a new heavy-duty truck can lead to delays in acquiring more modern vehicles that are more fuel-efficient, safer, and cleaner. While the FET is often associated with commercial trucking fleets, it can also be a significant cost for public fleets that must employ heavy-duty vocational vehicles in their operations.

 

Automakers Agree to Deal with California on Vehicle Emissions

On July 25, Ford, BMW of North America, Honda, and Volkswagen Group of America agreed to a framework with the California Air Resources Board (CARB) to increase fuel efficiency and emissions standards. The announcement comes as the Trump administration is preparing to roll back federal vehicle emission standards, effectively freezing them at the 2020 level through the 2026 model year. The framework also supports the transition to electric vehicles (EVs) by rewarding companies that sell more EVs with additional credits to meet the GHG standard for their entire fleet, while ensuring that gas and diesel vehicles also get progressively cleaner over time. NAFA supports unified national CAFE and GHG standards that encourage sustainability and auto industry stability.