U.S. Legislative Issues
Print this Article | Send to Colleague
FHWA Advances Alternative Fuel Corridors Network
On November 3, 2016, the U.S. Federal Highway Administration (FHWA) announced it will establish a national network of alternative fueling and charging infrastructure for electric, natural gas, liquefied natural gas, compressed natural gas, hydrogen, and propane fuel vehicles across the country. As part of the announcement, FHWA released a map showing 55 routes across the U.S. that will facilitate the charging of plug-in vehicles and the refueling of alternative fuel vehicles. FHWA reports that the national network of alternative fuel corridors spans 35 states and covers nearly 85,000 miles. The agency also noted that more miles will be added to the network to accommodate electric, hydrogen, propane, and natural gas vehicles as more alternative fueling and charging stations are built.
"Alternative fuels and electric vehicles will play an integral part in the future of America’s transportation system," said U.S. Transportation Secretary Anthony Foxx. "We have a duty to help drivers identify routes that will help them refuel and recharge those vehicles and designating these corridors on our highways is a first step."
The corridor routes will be marked with signs similar to what’s been typical on highways for years alerting drivers to upcoming gas stations, food, and lodging. Corridors designated as "sign-ready" with alternative fuel stations currently in operation will be eligible to feature new signs alerting drivers about available stations.
The designation of these corridors fulfills a directive in the Fixing America’s Surface Transportation (FAST) Act, which was enacted in December 2015. Last July, Secretary Foxx put the alternative fuel station provision in motion by calling on states to nominate national plug-in electrified vehicle charging and hydrogen, propane, and natural gas fueling corridors along major highways.
Congress Unlikely to Extend Key Tax Credits in Lame Duck Session
The federal tax credits for biodiesel, natural gas and propane expire at the end of 2016. Credits include: the $0.50 per gallon alternative fuel tax credit for compressed natural gas, liquefied natural gas, propane autogas, and other alternative transportation fuels; the $1.00 per gallon tax credit for biodiesel; and the thirty percent alternative fuel infrastructure tax credit.
It is unlikely that Congress will act this year to extend the credits. According to a statement issued by House Ways and Means Committee Chairman Kevin Brady (R-TX) on November 15, "The House position is that tax extenders should be dealt with as permanent law in overall reform in 2017."
NAFA Weighs in on Legislation to Decrease Federal Excise Tax Rate on New Trucks
On November 15, 2016, NAFA sent letters of support to Sen. Bill Cassidy (R-LA) and Rep. Tim Ryan (R-OH) for introducing S. 3372/H.R. 6111, the Natural Gas Truck Tax Parity Act of 2016, companion legislation that would amend the Internal Revenue Code to reduce the federal excise tax (FET) rate on the retail sale of heavy trucks and trailers by 35 percent for any automobile truck chassis, automobile truck body, or tractor that is fueled wholly or partially by an alternative fuel. The term "alternative fuel" means compressed natural gas, liquefied natural gas, liquefied petroleum gas, renewable natural gas, hydrogen, and any liquid whose volume is at least 85 percent methanol.
The U.S. tax code currently imposes a twelve percent FET on the sale of all heavy-duty trucks, tractors, and trailers. This tax is the highest FET levied by Congress on any product. The excise tax was originally imposed to help defray the cost of World War I. Since 1955, the excise tax rate on new heavy-duty trucks, tractors and trailers has increased by 300 percent, ballooning from three percent to its current rate of twelve percent. If passed, this legislation would provide a permanent 35 percent exclusion from the twelve percent FET for alternative fueled heavy-duty trucks. This exclusion is designed to cover the additional incremental cost of heavy-duty natural gas trucks, ensuring that they do not require more in taxes than comparable diesel-powered trucks.
This legislation stands to "accelerate the growth of environmentally-friendly, clean-burning heavy-duty natural gas trucks on America’s highways," NAFA wrote in its letters.
