U.S. Legislative Issues

On December 5, Fleet Manager and NAFA Treasurer Jeffrey Jeter testified before a panel of Environmental Protection Agency (EPA) officials on the agency’s proposal to scale back the amount of renewable fuels that are blended into gasoline and diesel. The hearing, following EPA’s release of a draft proposal last month, was heavily attended. Jeter raised concerns shared by many NAFA Members about damage and voided warranties that may result from higher ethanol usage in fleet vehicles, and compatibility between high ethanol blends with many existing underground storage tanks.
 
At the same time, NAFA questioned EPA’s proposal to effectively lower the amount of biodiesel produced in the coming year. Vehicle fleets are significant users of biodiesel and depend on a strong and viable biodiesel industry. NAFA said that by allowing excess biodiesel produced in 2013 to be carried over for compliance into 2014, the EPA is nearly cutting the legs out from under the emerging biodiesel industry.  NAFA recommended that EPA set a volume requirement at least consistent with this year’s projected biodiesel production of 1.7 billion gallons.
 
The EPA will continue to accept public comments on the 2014 proposals until January 28, 2014, and a final decision is expected by February.



The Federal Motor Carrier Safety Administration (FMCSA) is seeking public feedback on a change that it says will improve the quality and uniformity of violation data. The changes would allow court outcomes on contested citations to be incorporated in the FMCSA’s Motor Carrier Management Information System (MCMIS) database. This would have an impact on how the violations are displayed in the Safety Measurement System (SMS) and on the Pre-Employment Screening Program (PSP).
 
The public comment period will last until January 2, 2014. For more information about the proposed changes, or to submit a comment, visit: https://federalregister.gov/a/2013-28795



In February, Congressman Bob Latta of Ohio introduced a HR 724. The bill would amend the Clean Air Act (CAA) to remove the requirement for automobile dealers to present a certification of compliance for new light-duty motor vehicles to the purchaser. The House Energy and Commerce Committee has agreed to hold a hearing on the bill on December 10. If the bill passes the House, its future is far from certain in the Senate.



As expected, Congressman Earl Blumenauer (D-OR) introduced legislation during the first week of December to address the ongoing shortfall in funding for the nation’s highway system. The Highway Trust Fund, which pays for infrastructure projects and repairs to the nation’s roads and bridges, is funded through federal gasoline taxes. Due to the higher cost of construction combined with declining fuel purchases, the Highway Trust Fund has seen declining rates of revenue. Congressman Blumenauer’s bills aim to address these problems and keep the Trust Fund solvent for years to come. One bill, the UPDATE Act of 2013, would phase in a fifteen cent increase in the gas tax that would be tied to inflation. A separate bill, the Road Usage Fee Pilot Program Act of 2013, would create pilot programs to study the feasibility of taxing vehicles on the number of miles they travel.