U.S. Legislative Updates

The United States Senate has passed a two-year, $109 billion surface transportation re-authorization bill. The legislation (S.1813) authorizes highway and transit infrastructure spending over the next two years. Despite Senate passage of a full bill, odds are good Congress will have to pass a short-term extension of a current highway programs before the March 31 expiration of the existing authorization.

The Senate bill consolidates one hundred ninety six federal transportation programs to about a dozen, while giving more flexibility to the states to decide transportation priorities. But it largely keeps the scope of federal highway, transit and other surface transportation projects intact. Senators kept the duration of the bill short, to two years, because of the difficulty in paying for its programs as gasoline tax revenues slide.

The legislation now goes to the House of Representatives, where House Speaker John Boehner (R-OH) is considering whether the House will proceed to consider the Senate-passed bill or a five-year House bill that streamlines transportation programs and ties highway funding to domestic oil drilling.


During consideration of the surface transportation re-authorization legislation, the Senate failed to approve incentives for natural gas vehicles and biodiesel.

An amendment that would have extended the biodiesel tax incentive through the end of the year was voted down. The amendment was sponsored by Sen. Debbie Stabenow, D-MI. Only forty nine senators voted in favor of the amendment. A total of 60 ayes were needed for the measure to be added to the bill.

An amendment to provide tax credits for natural gas vehicles was also voted down. Senators voted 51-47 on an amendment by Robert Menendez (D-NJ) and Richard Burr (R-NC) to adopt the provisions of the NAT Gas Act, but it required sixty votes for passage.


It is unclear whether E85 as a motor vehicle fuel will continue to be available in the precise blend. E85 is a motor vehicle fuel blend of gasoline and ethanol which contains eighty five percent ethanol by volume, and is defined as an alternative fuel in many federal programs, including fleet compliance with the vehicle fuel use requirements under the Energy Policy Act of 1992. The uncertainty of availability was first was brought to NAFA’s attention by a Member in Iowa where a major pipeline that provides ethanol blends at its terminals has announced that it will be providing E70 rather than E85.

NAFA’s understanding is that a revision was made by ASTM International to the standard specification for ethanol fuel blends for flexible-fuel vehicles (FFVs). The revised standard, ASTM D5798-11, defines an ethanol blend used in an FFV to contain fifty one to eighty three volume percent of ethanol. In Iowa the pipeline will provide E70 in order to meet the ATSM standard and reportedly will do so in other parts of the country, because of issues of volatility.

NAFA is in discussion with the U.S. Department of Energy (DOE) to determine how the revised ASTM standard will impact the DOE’s definition of E85. Under current DOE regulations, fleets that are subject to the EPACT requirements can acquire FFVs provided that the vehicle operate on E85, defined as containing 85 percent or more ethanol by volume. Some federal and state fleets may also be required by executive order to use E85.


The National Highway Traffic Safety Administration (NHTSA) has completed the first round of public hearings on voluntary guidelines to encourage automobile manufacturers to limit the distraction risk from in-vehicle electronic devices. The guidelines proposed last month by NHTSA call for automakers to include technology in cars that automatically disables built-in phone calling, texting, emailing, Web-surfing, and other distracting devices unless the car is parked. GPS navigation systems would still work, but drivers would only be able to enter addresses when the vehicle is stationary.

The proposal is the first of three sets of guidelines aimed at driver distractions that the agency is working on. A second proposal on technologies that would limit drivers’ use of handheld devices while the car is in motion is tentatively scheduled to be unveiled next year. The third proposal — guidelines on how automakers can use voice activation to reduce the number of times drivers need to press buttons or touch screens — is expected a year after that.

But carmakers and others urged NHTSA officials at a public hearing to speed up work on the second two phases. Consumers want to make phone calls, get directions, and dozens of other things while driving, and they will find a way to do it, carmakers said.


U.S. Representative Peter DeFazio (D-OR) has sent a letter to President Obama, asking him to support legislation to limit speculation in the oil market. H.R. 2003, the Taxing Speculators Out of the Oil Market Act, is intended to deter speculation by charging a 0.01 percent tax on derivatives of crude oil (futures, options, and swaps).