U.S. Legislative Issues

DERA Program Retains Funding and 2020 Grants Released

$87 Million was provided in funding for the Diesel Emissions Reductions Act (DERA) National Grants Program for 2020 within the domestic spending minibus package, H.R.1865. The House Appropriations Committee had initially proposed that the DERA Program receive $55 Million in funding for 2020. After a focused effort by NAFA and allied stakeholders in the DERA Coalition, House and Senate policymakers decided to raise that amount to the higher level.

Additionally, the EPA announced a request for applications on December 9 for an anticipated $44 million in competitive grant funding through DERA for 2020. The deadline to apply for grant funding for diesel emissions reduction projects is February 26, and the EPA will be holding its next information session on January 14 at 3:00 p.m. Eastern (Presentation).

 

FCC Publishes Auto Safety Spectrum Reallocation Proposal

On December 12, the Federal Communications Commission voted to issue a notice of proposed rulemaking to open a portion of the airwaves reserved for automotive safety technology, known as the 5.9 GHz Safety Band Spectrum, for use by Wi-Fi providers. NAFA has been vocal in supporting the preservation of the full 5.9 GHz band for transportation safety communications, such as DSRC and C-V2X, alongside members of the Safety Spectrum Coalition. NAFA will be submitting comments on the FCC’s proposed rulemaking.

Additionally, NHTSA issued a report related to the testing they have been conduction on the potential for vehicle-to-vehicle communication technology interference within the 5.9 GHz band. The report concluded that allowing non-safety Wi-Fi signals to be broadcast in one part of the 5.9 GHz Safety Band could create harmful interference with V2X safety messages in the remaining parts of the Safety Band. Such interference could reduce or even eliminate the safety benefits that highway users otherwise would enjoy as V2X devices deploy. This emphasizes the need for additional testing and analysis before any reallocation of the band for use by non-transportation communication technologies.

 

U.S. House of Representatives Approves USMCA

The U.S. House of Representatives voted 385 – 41 on December 19 to approve implementation legislation (H.R.5430) for a revised version of the United States-Mexico-Canada Agreement. The revisions to the original agreement largely pertained to the implementation and enforcement of Mexican labor standards. Senate Majority Leader Mitch McConnell (R-KY) has said that his chamber will take up the legislation sometime in early 2020 after hearings on impeachment take place. On December 20, Senate Finance Committee Chairman Chuck Grassley (R-IA) announced that his committee would hold a markup hearing of the legislation on January 7.

 

U.S. and China Agree to “Phase One” Trade Deal

After months of escalating tariff actions and negotiations, on December 13, the U.S. and China announced that there was a final agreement on a “phase one” trade deal between the countries. The U.S. Trade Representative has released a fact sheet on the agreement. The deal addresses several of the White House’s priorities as they relate to China, including intellectual property protection reform and bolstering U.S. agricultural exports.

The agreement came about right before 15% tariffs on an additional $160 billion worth of consumer goods from China went into effect on December 15, averting them being imposed. The September round of 15% tariffs on $120 billion worth of imports have been reduced to 7.5%, and the prior 25% tariffs on $250 billion worth of Chinese imports are persisting at that level for the time being. Any reduction in the outstanding tariffs will come as a result of progress in the continued negotiations between the U.S and China.

 

EPA Issues Final RFS Volumes

On December 19, the EPA finalized a rule that established the required renewable volumes under the Renewable Fuel Standard (RFS) program for 2020 and the biomass-based diesel volume for 2021. The final rule was mainly the same as the EPA’s July proposal, which had drawn the ire from both key constituencies on this issue, those being agricultural interests and those in the oil and gas industries. 

A central area of concern was on the issue of small refinery RFS exemption waivers and associated blending requirement reallocations. The EPA has said that it attempted to set volumes that adequately account for foreseeable exemptions based on recommendations from the DOE. However, the biofuel industry believes the final volumes are still not adequate, while the oil industry opposes the higher amounts to offset small refiner exemptions. The final rule is expected to be challenged in court.

 

FMCSA Drug and Alcohol Clearinghouse Implementation and New Random Drug Testing Rate Requirement

The federal database for commercial driver drug and alcohol violations, the FMCSA’s Commercial Driver’s License Drug and Alcohol Clearinghouse (Clearinghouse), will be implemented on January 6. The Clearinghouse will require employers to query the Clearinghouse for current and prospective employees’ drug and alcohol violations before permitting those employees to operate a commercial motor vehicle (CMV) on public roads. Employers will also be required to query the Clearinghouse for each driver they currently employ annually.

The Clearinghouse rule requires FMCSA-regulated employers, Medical Review Officers, Substance Abuse Professionals, consortia/third party administrators, and other service agents to report to the Clearinghouse information related to violations of the drug and alcohol regulations in 49 Code of Federal Regulations, parts 40 and 382 by current and prospective employees.

In November, the FMCSA made query plans for employers available for purchase ahead of the rule’s implementation in January. 

Additionally, FMCSA announced on December 27 that it would be increasing the minimum annual percentage rate for random controlled substances testing for drivers of CMVs requiring a CDL from the current rate of 25 percent of the average number of driver positions to 50 percent of the average number of driver positions, effective as of 2020.

 

Electric Truck Mandate California Expected in 2020

The California Air Resource Board’s (CARB) Advanced Clean Truck Regulation had its final public hearing on December 12. The rule would accelerate a transition of zero-emission medium-and heavy-duty vehicles from Class 2B to Class 8. By 2030 zero-emission truck/chassis sales will need to be 50% of a truck manufacturer’s class 4 – 8 straight truck sales and 15% of all other truck sales. The proposed regulation also includes a reporting requirement for large employers including retailers, manufacturers, brokers, and others for information about shipments and shuttle services. Fleet owners, with 100 or more trucks, would be required to report about their existing fleet operations. A final vote on the rule is expected in the spring timeframe of 2020 and other states are likely to join California in setting similar zero-emission vehicle requirements.

CARB has released a fact sheet on the Advanced Clean Truck Regulation for the public’s reference.