U.S. Legislative Issues
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IRS Issues Guidance for Claiming One-Time Payment of Alternative Fuels Tax Credit
The Federal Government provides incentives in the form of tax credits for producing biodiesel (including renewable diesel) and alternative fuels, as well as for biodiesel mixtures and alternative fuel mixtures. The provisions in the Tax Code that authorized these credits and payments expired for sales and uses in December 2014. In December 2015, Congress extended for two years – from January 1, 2015 through December 31, 2016 – excise tax credits, income tax credits, and excise tax payments with respect to biodiesel and alternative fuel incentives with the enactment of the Protecting Americans from Tax Hikes (PATH) Act of 2015. The new law also required the Internal Revenue Service (IRS) to provide guidance for one-time submission of claims for 2015, and required a 180-day period for submission of claims.
On January 14, 2016 the IRS issued guidance providing rules for fleets to make a one-time claim for credits and payments for biodiesel (including renewable diesel) mixtures and alternative fuels sold or used during calendar year 2015.
Although a claimant may submit its claim under this notice as early as January 15, 2016, the 180-day claim period for 2015 biodiesel and alternative fuel incentives begins on February 8, 2016. Consequently, all claims for 2015 biodiesel and alternative fuel incentives must be filed on or before August 8, 2016. The IRS will not process claims filed after that date. The IRS will deem any claim that is submitted by the method prescribed in this notice before February 8, 2016, as filed on February 8, 2016.
NAFA Weighs in on Rule to Mandate Seatbelt Usage by All Occupants in CMVs
In December 2015, the Federal Motor Carrier Safety Administration (FMCSA) issued a
proposed rule that would require every passenger in a "property-carrying" commercial motor vehicle (CMV) to use a safety belt. Current federal laws already require CMV drivers to wear safety belts, but this proposed rule would hold both the motor carrier and CMV driver responsible for ensuring that all occupants in the vehicle are buckled up.
On January 22, 2016, NAFA responded to the FMCSA’s request for feedback on its proposal requiring passengers riding in property-carrying CMVs to use their seat belts when the vehicle is operating. In its comments, NAFA expressed its strong support of the proposal and agreed with FMCSA’s assertion that the proposed rule fills an important safety gap. NAFA also stated in its comments that it, "prides itself on staying ahead of the safety curve, as evidenced by the fact that a majority of our members’ internal policies already require passengers riding in CMVs to be buckled in. Given this and our commitment to enhancing vehicle safety, NAFA supports this proposed rule and stands in agreement with FMCSA that requiring the use of seat belts by non-driver occupants will save lives."
FMCSA Seeks Feedback on Carrier Safety Fitness Determination
In place since 1982, the Federal Motor Carrier Safety Administration (FMCSA) currently uses a three-tier federal rating system of "satisfactory–conditional–unsatisfactory" for federally regulated commercial motor carriers. The agency asserts that its current rating system and methodology limit its safety assessment abilities to a small number of vehicles.
On January 21, 2016, FMCSA issued a
Notice of Proposed Rulemaking (NPRM) designed to enhance the agency’s ability to identify non-compliant motor carriers. The Safety Fitness Determination (SFD) NPRM would update FMCSA’s safety fitness rating methodology by integrating on-road safety data from inspections, along with the results of carrier investigations and crash reports, to determine a motor carrier’s overall safety fitness on a monthly basis.
The proposed SFD rule would replace the current three-tier federal rating system with a single determination of "unfit," which would require the carrier to either improve its operations or cease operations. Once in place, the SFD rule will permit FMCSA to assess the safety fitness of approximately 75,000 companies a month. By comparison, the agency is only able to investigate 15,000 motor carriers annually – with less than half of those companies receiving a safety rating.
For answers to frequently asked questions about the NPRM,
click here.
To view an informational webinar about the NPRM,
click here.
FMCSA Announces Webinars on Electronic Logging Device Rule
The Federal Motor Carrier Safety Administration (FMCSA) announced it will host two webinars outlining the Electronic Logging Devices and Hours of Service Supporting Documents rule (ELD rule). The next webinar in the series will explain to industry participants how the first phase of the rule’s implementation will impact enforcement. Details for this webinar can be found below:
ELD Phase I: Transition and Awareness
Thursday, February 11, 2016 from 2:00–3:30 p.m. ET
This webinar will focus on the first phase of the ELD rule’s implementation, which starts on February 16, 2016 and ends on December 18, 2017. During the Transition and Awareness phase, motor carriers will be able to use registered ELDs. This webinar will offer guidance to carriers on how the rule will be enforced during this phase at the roadside and during investigations.
Register for one of the webinars today. Space is limited. Registration is on a first-come, first-served basis. If you are unable to register, recordings of each presentation will be available online following the webinars.
Broad Energy Bill May See Floor Action this Month
Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-AK) is hoping a broad five-part energy bill passed by her Committee last year will see floor action this month.
The bill, S.2012 or the
Energy Policy Modernization Act, would be the first broad rewrite of energy policy since 2007 if enacted into law. The House version of the bill was passed by a vote of 249-174, amid strong opposition from the Democrats and a veto threat issued by the White House.
Among its many provisions, the wide-ranging legislation authorizes through FY 2020 the Department of Energy’s vehicle technologies programs. Additionally, the bill authorizes the research, development, engineering, demonstration, and commercial application activities of the following programs:
•A program to reduce petroleum use in passenger and commercial vehicles.
•A program to advance vehicle manufacturing technologies and practices.
•A program to develop advanced technologies for medium-to heavy-duty commercial, vocational, recreational, and transit vehicles.
•A program to demonstrate the integration of multiple advanced technologies on Class 8 truck and trailer platforms.
•A pilot program to improve total machine or system efficiency for non-road mobile equipment.
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