U.S. Legislative Issues

Lawmakers Press Agencies for Vehicle Review Details

Leaders of the House Energy and Commerce Committee are asking the U.S. Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA) to explain how they will proceed with a midterm review of their 2012 fuel economy standards for cars. The review allows the EPA to alter fuel economy standards for cars produced starting in 2022 if the ultimate goal of 54.5 miles per gallon proves unreachable in the last few years of the program.

In an April 11, 2016 letter, House Energy and Commerce Chairman Fred Upton (R-MI) and Reps. Ed Whitfield (R-KY), chairman of the Energy and Power Subcommittee, and Michael Burgess (R-TX), chairman of the Commerce, Manufacturing and Trade Subcommittee, pressed the agencies to outline a timeline for the review and to detail how they will consider public input and liaise with the California Air Resources Board.

"The mid-term evaluation is an important regulatory assessment, and the results may change the course of the program and have significant economic impacts, especially for consumers," the three lawmakers said in the letter. The letter asks the EPA and NHTSA to respond by April 25, 2016.

Federal Regulators Eager to Develop Guidance for Autonomous Cars

Over 200 individuals attended the federal government’s first of two public hearings on self-driving cars, held by the National Highway Traffic Safety Administration (NHTSA) on April 8, 2016. As part of the hearing, agency officials heard testimony from automakers, engineers, consumer watchdogs, and disability advocates on concerns surrounding autonomous vehicles. NHTSA officials have said they plan to use the input to write policy guidance for states, automakers and tech companies about when and how autonomous vehicles should be allowed on U.S. roads.

At times, government officials clashed with auto trade associations and safety advocates over how quickly regulators should issue federal guidance. Several speakers said self–driving cars are not ready for public use, citing their inability to operate in snow and other technical challenges. "Self–driving robot cars simply aren’t ready to safely manage too many routine traffic situations without human intervention," a Consumer Watchdog spokesperson said at the hearing.

NHTSA "should not bind itself to arbitrary, self-imposed deadlines at the expense of robust and thoughtful policy analysis," said Paul Scullion, safety manager at the Association of Global Automakers, a trade group representing Toyota Motor, Nissan Motor, Hyundai Motor and other major foreign automakers. "NHTSA should instead consider the development incrementally."

NHTSA Administrator Mark Rosekind told attendees that the agency must move quickly, noting cars with significant self–driving features are already on the road. Without NHTSA action, "people are going to just keep putting stuff out on the road with no guidance on how do we do this the right way," Rosekind said. The agency has vowed to complete guidelines by July 2016.

IRS Proposal Updates Highway Vehicle Excise Tax Rules

On March 31, the IRS proposed regulations intended to update highway vehicle excise tax rules in light of legislative changes and court decisions in recent years. Specifically, the regulations relate to the excise taxes on the sale of highway tractors, trailers, trucks and tires; the use of heavy vehicles on highways; and the definition of a highway vehicle related to these and other taxes.

The proposed rules also provide examples and identify exceptions to the definition for purposes of the tax on sale of heavy vehicles, the highway use tax, and the credits and payments allowed for certain nontaxable uses. The IRS states that the proposed rules reflect legislation enacted since 1982 and several court rulings and that they remove obsolete rules and invite comment, by June 29, on the changes and on provisions of temporary regulations that are restated and unchanged.

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