U.S. Legislative Issues

The Environmental Protection Agency (EPA) has launched a program aimed at increasing the use of cleaner diesel technology. Until January 15 2014, both private and public fleets will be allowed to apply for rebates on retrofitting and replacing non-road construction equipment engines. Applicants may submit only one application for up to five pieces of equipment.

More information on the rebate program can be found here: http://www.epa.gov/cleandiesel/dera-rebate-construction.htm



The Federal Motor Carrier Safety Administration (FMCSA) rule on hours-of-service for operators of commercial motor vehicles has drawn strong opposition from trucking industry advocates as well as members of Congress. On November 21, the House Small Business Committee held a hearing to hear testimony on the rule. FMCSA Administrator Anne Ferro attended to defend the measure that has proved to be unpopular in a number of industry surveys.

Testimony from the hearing can be found here: http://smallbusiness.house.gov/calendar/eventsingle.aspx?EventID=350593



The Internal Revenue Service (IRS) is adjusting the tax benefit levels for certain Qualified Transportation Fringe Benefits for the 2014 calendar year. An expiring provision of the American Taxpayer Relief Act (ATRA) of 2012 will reduce the maximum monthly mass transit level to $130 from $245, but will increase the parking benefit from $245 to $250.

More information on expiring provisions of the ATRA can be found here: http://www.irs.gov/pub/irs-drop/n-13-08.pdf



The Environmental Protection Agency (EPA) is required to set the annual standards for the Renewable Fuel Standards program (RFS) for each year. On November 15, EPA proposed to establish the annual percentage standards for 2014 for cellulosic, biomass-based diesel, advanced biofuel, and total renewable fuels that apply to gasoline and diesel produced or imported in the year 2014.

According to EPA, the proposal seeks to put the RFS program on a steady path forward – ensuring the continued growth of renewable fuels while recognizing the practical limits on ethanol blending, called the ethanol "blend wall." The blend wall refers to the difficulty in incorporating increasing amounts of ethanol into the transportation fuel supply at volumes exceeding those achieved by the sale of nearly all gasoline as E10 (gasoline containing 10 percent ethanol by volume). Although the production of renewable fuels has been increasing, overall gasoline consumption in the United States is less than anticipated when Congress established the program by law in 2007.

NAFA issued a press statement on November 15, saying that it welcomed the EPA proposal, which addresses the concerns of the Association and fleet managers that the approaching blend wall for ethanol would result in the mandated use of E15 -- a fuel level that many vehicle fleet managers fear would void vehicle warranties, damage engines, and cause damage to underground storage tank systems. NAFA is scheduled to testify on the EPA proposal at a hearing in Washington, DC on December 5.



The General Services Administration (GSA) is seeking public advice on industry best practices on car sharing. With the budgets for nearly every federal agency facing steep budget cuts, the GSA is interested in reducing the federal fleet. The GSA, which manages more than 200,000 vehicles, issued a Request for Information (RFI) in November. Pilot programs are being launched in Washington, DC, Boston, New York City, and Chicago to test different program details.

Those interested in providing feedback to the GSA are encouraged to contact Mafara Hobson at (202) 501-3710 or mafara.hobson@gsa.gov.



Congressman Earl Blumenauer (D-OR) is expected to introduce legislation on December 4 to address the ongoing shortfall in funding for the nation’s highway system.  The legislation, the UPDATE Act of 2013, would phase in a fifteen cent increase in the gas tax that would be tied to inflation. The bill would also create pilot programs to study the feasibility of taxing vehicles on the number of miles they travel. NAFA’s Washington representatives have been in contact with Congressman Blumenauer’s office to provide feedback on legislative language.