U.S. Legislative Issues

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In the 2014 Midterms, the Republicans took control of the Senate and gained several seats in the House of Representatives. Committees formerly chaired by Senate Democrats will now be chaired by Republicans, including a switch in leadership on the Senate Environment and Public Works (EPW) Committee from Senator Barbara Boxer (D-CA) to Senator Jim Inhofe (R-OK) and on the Finance Committee from Senator Ron Wyden (D-OR) to Senator Orrin Hatch (R-UT). These two committees will be instrumental in shaping transportation and energy policy important to fleets in the next Congress.

The current transportation bill only lasts until next May and the Senate EPW Committee under Senator Inhofe will oversee the bulk of the transportation reauthorization work. Meanwhile Senator Hatch and the Finance Committee will be tasked with finding ways to shore up the Highway Trust Fund, which has not been bringing in enough revenues from the gas and diesel excise taxes to meet outlays. Senator Hatch’s Finance Committee will also play a central role in tax reform. Tax issues important to fleets include credits for biodiesel, propane, and CNG as vehicle fuels and the Bonus Modified Accelerated Cost Recovery System (MACRS) or "bonus depreciation" program.

On the House side, Democrat Nick Rahall (D-WV) lost his bid for reelection. As the Ranking Member of the House Transportation and Infrastructure Committee, Rahall was the most senior Democrat on the panel. Rahall will likely be replaced with Representative Peter Defazio (D-OR). This summer, Representative Defazio introduced a bill that would repeal the gas tax (but not the diesel tax, which would be indexed to inflation) as well as the federal excise tax on truck tires, and instead replace them with a tax of $6.75 per barrel of oil, indexed to inflation. The revenue generated from these measures would be enough to close the $16 billion per year gap between current revenues and current highway funding.



The Environmental Protection Agency (EPA) levied unprecedented penalties against the automakers Hyundai and Kia for overstating the fuel economy standards and understating the greenhouse gas emissions from over 1.2 million vehicles. The vehicles in question include the Hyundai Accent, Elantra, Veloster, and Santa Fe vehicles and the Kia Rio and Soul. The EPA said the company overstated each vehicle’s fuel economy by one to six miles per gallon.

The enforcement action was announced November 3 by Attorney General Eric Holder and EPA Administrator Gina McCarthy and is viewed as part of a more aggressive enforcement effort against the auto industry. In addition to the $100 million fine, the companies will be required to invest $50 million on new measures to prevent similar issues in the future and will forfeit $200 million in greenhouse gas emissions credits.

You can learn more about this topic in the Sustainability section in this issue of NAFAConnection.



The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into Takata Corp., an airbag manufacturer, after it was discovered that defective airbags made by the company can propel shrapnel at passengers upon deployment. NHTSA has taken sharp criticism from Congress for not using its full authority to investigate General Motors and compel a recall. Leaders from NHTSA and General Motors will be called before Congressional panels again in the next few weeks and leaders of Takata Corp. are likely to be called to the Hill as well.

NHTSA’s role has been complicated by the fact that the agency has been without a permanent leader for over 10 months. Administrator David Strickland stepped down from the post in January of 2014, and David Friedman has served as Acting Administrator since then. An official nomination is expected in the next few weeks. Acting Administrator Friedman is not expected to be the nominee.

You can learn more about this topic in the Industry News section in this issue of NAFAConnection.



On November 12, the Federal Motor Carrier Safety Administration (FMCSA) published several new Compliance, Safety, Accountability (CSA) program resources for drivers and motor carriers. The materials include FAQs and Fact Sheets about the CSA program and aim to help fleets stay in compliance. Topics covered in the materials include "What is CSA—and how does it affect me?" and "I got a warning letter—what do I do?"

The new materials can be found on the Driver Safety Education Center section of the CSA website.
 

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