U.S. Legislative Issues

 

 

On May 18, 2016, the U.S. Environmental Protection Agency (EPA) released proposed volumes for renewable fuels for 2017 under the Renewable Fuel Standard (RFS), and proposed volumes for biodiesel for 2018. The total proposed volumes for all fuel categories in 2017 are 18.8 billion gallons, a modest increase over 18.11 billion gallons for 2016. Total biofuel volumes are proposed at 10.44 percent of the gasoline supply, as opposed to 10.10 percent in 2015, a critical threshold in moving beyond the current E10 ‘blend wall’.

On July 11, NAFA officially weighed in with EPA on the RFS proposal. In its comments, NAFA reaffirmed its ongoing support for federal environmental and energy polices, such as the RFS, which reach the entire motoring public and return benefits to fleets and the general population. NAFA also urged EPA to adopt stronger biomass-based diesel and advanced biofuels program volumes.

Conversely, NAFA asked that EPA lower the final ethanol mandate to no more than 9.7 percent of gasoline demand to ensure ethanol levels in gasoline stay below the 10 percent blend wall. Specifically, NAFA stated, "Fleet managers are especially concerned that the blend wall would result in the mandated use of E15 – an ethanol blend that we fear will void vehicle warranties, damage engines, and cause damage to underground storage tank systems."



On July 7, 2016, the General Accountability Office (GAO) released a critical report detailing the Federal Highway Administration’s (FHWA) failure to address defective highway guardrails. The study was prompted by concerns over widely used guardrails, known as ET-Plus, that have been linked to at least five deaths and many more injuries. According to numerous accounts across the country, the ET-Plus guardrails, manufactured by Trinity Industries, fail to absorb impact during a crash and instead can spear through vehicles and impale passengers. Approximately 200,000 ET-Plus guardrails remain on U.S. highways today.

The report specifically criticized the testing process used by the FHWA, and called on the agency to take steps to ensure there are no conflicts of interest between companies that make the roadside equipment and the people who test it. The GAO investigation found that among the nine laboratories authorized to conduct crash testing of roadside safety devices for the highway agency, six of the labs test products that were developed by employees of the same parent organization.

The report also recommended that the FHWA add third-party verification to check crash-test results, and regularly update either Congress or the broader public on the latest developments as states make the transition to more modern safety standards for roadside devices.

Sen. Richard Blumenthal (D-CT), who first requested GAO conduct an investigation, said the report demonstrated "a shocking and stunning indictment of the federal agency that is supposed to keep us safe on roads, and in fact enabled seriously defective devices to be installed across the United States." Sen. Blumenthal has repeatedly called out the FHWA for what it alleges are flawed and inadequate testing methods and for supporting sham safety tests conducted by guardrail manufacturers.



The National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) will soon issue a report about the economic and technological feasibility of meeting or exceeding the fuel efficiency standards for passenger cars and light trucks. The standards, which mandated a more than doubling of vehicle fuel efficiency by 2025 to 54.5 miles per gallon, are considered a cornerstone of the Obama Administration’s climate and economic policies. The imminent report will help EPA and NHTSA tailor proposed regulations and final regulations by 2018.

The White House originally agreed to a midterm evaluation when it set the standards back in 2012 to solidify buy-in from automakers. The report’s release will likely trigger a great deal of contention between OEMs, who argue the administrative targets are overly ambitious as it is and administration officials who say that there’s a possibility the standards could be raised if the report shows technology and costs are on track to deliver huge advances in fuel efficiency.