Chamber of Commerce Partners with Truckers and Motorists in Support of Fuel Tax Hike
With the deadline for passing new federal highway spending legislation fast approaching, the U.S. Chamber of Commerce, AAA, and the American Trucking Association (ATA) are urging Congress to raise the federal fuels tax. In a January 26 joint letter to Congress, the groups argue that raising the gas tax would be the easiest way to address the Highway Trust Fund shortfall that has reached an estimated $16 billion per year stating, "While no one wants to pay more, we urge you to support an increase to the federal fuels user fee, provided the funds are used to ease congestion and improve safety, because it is the most cost efficient and straightforward way to provide a steady revenue stream to the Highway Trust Fund."
To bolster their point, the groups underscored the economic toll of underfunding the nation’s infrastructure: "Thirty-two percent of major roads are in poor or mediocre condition, and the average American spends 28 hours a year struck in traffic. This neglect costs the average driver $324 each year in additional vehicle repairs and operating costs." The letter also highlights the impact on freight transportation: "Congestion on the Interstate System alone costs freight trucks more than 141 million hours in wasted time, equivalent to 51,000 drivers sitting idle for a working year."
Congressional leaders have indicated recently that they are considering several options, such as tax reform, to fund transportation programs. While some lawmakers, including a few influential Republicans in the Senate, have said they’d support raising the gas tax, widespread support for an increase on Capitol Hill is still lacking.
The tax, which has not been increased since 1993, brings in about $34 billion per year. The federal government typically spends about $50 billion per year on road and transit projects, and transportation advocates have maintained that the larger figure is only enough to maintain the current state of the U.S. infrastructure network. The current transportation funding bill, which authorizes the collection of the gas tax at its current rate, is scheduled to expire in May.
IRS Issues Guidance for Claiming One-Time Payment of Alternative Fuels Tax Credit
On Jan. 16, the Internal Revenue Service (IRS) issued guidance that provides fleets with a streamlined process to make one-time claims for credits and payments related to biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar year 2014.
The provisions in the Tax Code that authorized these credits and payments expired for sales and uses on December 31, 2013. In December 2014, Congress retroactively reinstated these tax incentives with the enactment of the Tax Increase Prevention Act of 2014 (commonly referred to as "tax extenders" legislation). The new law required the IRS to provide guidance for one-time submission of claims for 2014, and required a 180-day period for submission of claims. The claim period for the 2014 alternative fuels credit begins on February 9, 2015 and must be filed on or before August 8, 2015.
Information for submitting claims to the IRS is available here. The IRS has advised NAFA that the form used to claim payment (Form 8849), is currently being revised and will be available shortly.
FMCSA Report Finds Little Benefit to Weighting Crash Fault in CSA Rankings
According to a new report issued by the Federal Motor Carrier Safety Administration (FMCSA), determining who is at fault in crashes is both too expensive and too difficult to achieve for purposes of improving Compliance, Safety, Accountability (CSA) program data. Specifically, the report states that determining fault would not improve CSA’s prediction of crash risk.
The report comes amidst trucking industry criticism that the CSA system for evaluating carrier safety does not distinguish between accidents in which the truck or truck driver is to blame and accidents in which the truck and/or driver was clearly not at fault. The American Trucking Association (ATA) has long argued that merely being in an accident is not a useful tool in predicting the likelihood of future crashes and has asked the FMCSA to screen out plainly evident no-fault crashes from CSA numerous times.
In a news release about the report, the FMCSA maintained its position stating, "Independent research has demonstrated that a motor carrier’s involvement in a crash, regardless of their role in the crash, is a strong indicator of their future crash risk."
Commercial Truck Safety Lands New Spot on NTSB’s Annual Top Priorities List
The National Transportation Safety Board (NTSB) added strengthening commercial truck safety to its list of "Most Wanted" safety improvements. NTSB acting Chairman, Christopher Hart, said of the annual top ten list: "We want it to be a roadmap for policymakers and legislators. These are safety improvements for which the time is ripe for action." Regarding truck safety, Hart said the issue should be approached as a "broad spectrum" of policies that include vehicle maintenance, driver fitness, and deploying new safety technology in trucks.
The other three new areas of focus listed were requiring that transportation operators be medically fit for duty; increasing safe movement of rail tank cars that carry crude oil, ethanol and other hazardous materials across the country; and requiring pilots to strengthen procedural compliance. Other key issues include distraction and impairment, both of which made the list again this year.
The NTSB investigates major transportation accidents and can make recommendations to regulators and Congress, but it lacks the power to enforce them.
Energy Department Offers $55 Million for Fuel Efficient Vehicle Technology
On January 22, Secretary of Energy Ernest Moniz announced that the Department of Energy (DOE) is providing $55 million to companies, universities and laboratories to develop and deploy fuel efficient vehicle technology. Among the projects that the department wants to fund are those that seek to improve battery technology, lightweight materials, advanced engine combustion and natural gas technology.
The grants are meant to increase the efficiency of the country’s vehicle fleet, reduce petroleum use and help reach President Obama’s goal of making electric vehicles’ pricing on par with traditional vehicles by 2022.
DOE also said it will announce up to $35 million to advance fuel cell and hydrogen technologies, including enabling the early adoption of fuel cell applications, such as light duty fuel cell electric vehicles. This new funding opportunity announcement will be available in early February.
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