U.S. Legislative Issues

On Oct 29, the D.C. Circuit Court agreed to expedite a legal challenge to the Renewable Fuels Standard brought by Monroe Energy LLC, a subsidiary of Delta Air Lines. The airline purchased Monroe Energy last year in order to refine its own jet fuel. The Renewable Fuel Standards, administered by the Environmental Protection Agency (EPA), dictate the required amount of ethanol to be blended into gasoline, but since Monroe Energy is only producing jet fuel for Delta, they are required to purchase credits in order to maintain compliance with the law. In their lawsuit, Monroe Energy states that the level of ethanol is so high that they are required to purchase an exceptionally high number of credits, known as Renewable Identification Numbers, or RINs. The trial is significant because it is one of several high profile cases in an effort to have the Renewable Fuel Standards (RFS) rolled back or eliminated altogether, and the newly expedited timeline would guarantee a decision before next year’s June deadline for compliance with the current proposal. This comes on the heels of a leaked EPA memo from earlier in the month that suggests the agency may be considering a lower ethanol level on its own.

Pressure continues to mount against the RFS, with AAA also urging the EPA to lower next year’s ethanol requirements, saying the lowered levels would help prevent consumers from being shocked by higher gasoline prices. Meanwhile, Congressmen Goodlatte, Welch, Womack, and Costa continue their push against the RFS. They are currently circulating a letter among representatives that will be sent to EPA Administrator Gina McCarthy. They have gained more than 130 signatures so far, coming from both sides of the isle.



Earlier this year, House Transportation & Infrastructure Committee Chairman Bill Shuster announced the formation of a special panel that would be charged with identifying the challenges to U.S. freight transportation efficiency and to make important recommendations the Committee would consider. On Tuesday, October 29, the "Panel on 21st Century Freight Transportation" laid out its goals, including an increase in public investment in "all modes of transportation on which freight movement relies, and incentivize additional private investment in freight transportation facilities" and to "Promote and expedite the development and delivery of projects and activities that improve and facilitate the efficient movement of goods." The panel’s report also recommends revamping the Highway Trust Fund, noting that the fund "will soon be insolvent." The panel would like Congress and the administration to work together to "authorize dedicated, sustainable funding for multimodal freight Projects of National and Regional Significance" and to "identify and recommend sustainable sources of revenue across all modes of transportation that would provide the necessary investment."



Eight states – California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island, and Vermont – have signed a Memorandum of Understanding that lays out their goals of increasing the usage of Zero-Emission Vehicles (ZEVs) in their jurisdictions through cooperation and a coordinated regulatory approach. The signatory states agree to coordinate actions through the creation of a multi-state Zero Emission Vehicle Program Implementation Task Force. The ultimate goal is 3.3 million zero emission vehicles in those states by 2025, with enough fueling infrastructure to support that number. They will seek to achieve these goals through tax incentives and special privileges for ZEVs, such as HOV lane access, as well setting common standards.
 
The Public Fleet & Fueling Stations portion of the initiative declares that each Signatory State will seek to establish ZEV purchase targets for government and quasi-governmental agency fleets and report annually on ZEV acquisitions. Furthermore, they will explore the possibility of allowing public access to state government fueling stations. Local governments will also be encouraged to increase the share of ZEVs in their fleets, although the numbers for that have not been specified yet. The Memorandum of Understanding also states that the states "will cooperate with automobile manufacturers, electricity and hydrogen providers, the fueling infrastructure component industry, corporate fleet owners, financial institutions, and others to encourage ZEV market growth."