U.S. Legislative Issues

On May 12, Senator Barbra Boxer (D-CA), Chairwoman of the Environment and Public Works (EPW) Committee; along with Ranking Member David Vitter (R-LA); Transportation and Infrastructure Subcommittee Chairman Senator Tom Carper (D-DE); and Subcommittee Ranking Member Senator John Barrasso (R-WY) released a bipartisan six year, $265 billion transportation bill. The bill would provide the same amount of money each year as in the current two-year, $105 billion legislation expiring in September, indexed for inflation. It does not address the central issue of how to fund projects, a matter being left until later for congressional tax-writers on the Senate Finance Committee.

Unlike the President’s transportation proposal, released in late April, the Senate version does not contain any provisions for expanding tolling, nor does it propose a raise in the gas tax. Another difference between the bills is the time-frame for each.

The announcement comes about three months before the Highway Trust Fund becomes insolvent and five months before the current transportation bill, MAP-21, expires in September. Money for the Highway Trust Fund comes from taxes on gasoline and diesel, but the tax, which hasn’t been raised since 1993, has fallen victim to inflation and has not kept pace with the rising cost of labor and construction materials. The president’s plan would not adjust the gasoline or diesel excise taxes.

One of the most popular criticisms of MAP-21 was the short time frame for which the bill authorized spending. Many state transportation departments complained, saying a longer-term bill is needed to give state and local governments more certainty when planning out infrastructure projects. Many in Congress have expressed a desire to authorize a longer term plan, but have been unable to find enough money to fund one.


On May 13, by a margin of 96-3, the Senate voted to take up legislation renewing a set of provisions known as "tax extenders" that have expired or will expire at the end of this year. The bill was passed out of the Finance Committee on April 3 in a bipartisan manner.  Among the 55 tax incentives are several important to fleets, including tax credits for biodiesel, propane and CNG as vehicle fuels. These credits amount to a $0.50 per gallon alternative fuel tax credit for natural gas and propane and a $1.00 per gallon tax credit for biodiesel. Another incentive is the Bonus Modified Accelerated Cost Recovery System (MACRS) or "bonus depreciation" program, which allows extra depreciation to be taken for 50 percent of a truck’s purchase price and an extra bonus depreciation deduction of up to $8,000 for automobiles, and light trucks, vans and SUVs. The bill extends the incentives to Dec. 31, 2015, retroactive to January 1st of this year.

In April, NAFA wrote to the members of the Senate Finance Committee urging the Committee to pass the "tax extenders" legislation. The House Ways & Means Committee took up a select set of tax incentives on April 29 that did not include the incentives for biodiesel, CNG, and propane, or the bonus depreciation provision.


The Environmental Protection Agency (EPA) is now accepting applications for the 2014 National Clean Diesel Campaign. The program is funded through the Diesel Emissions Reduction Act (DERA), and is offering approximately $9 million in this round of grants. The Request for Proposal (RFP) will be open for approximately 45 days, closing on Tuesday, June 17, 2014. EPA plans to award funding through this competition in the fall.

President Obama’s Fiscal Year 2015 budget, eliminates funding for DERA, which has been used by trucking fleets to buy equipment to reduce diesel emissions. The grant program was also proposed to be zeroed out in the President’s FY2014 budget, but Congress funded the program at $13 million for FY 2014. While the President’s budget is largely seen as dead on arrival by Congressional Republicans, it is still a starting place for the negotiations with the Senate which will continue through the summer.

For more information on this round of funding, visit: http://epa.gov/cleandiesel/prgnational.htm