U.S. Legislative Issues

On June 14, the Senate Committee on Environment and Public Works held a hearing to examine legislation that would allow summer sales of fuel containing 15 percent (E15) or higher biofuel. Petroleum groups oppose the bill while biofuel producers argue that E15 gives consumers more choice at the pump. Summer sales are now restricted in most counties nationwide due to Clean Air Act smog regulations. The hearing is part of a larger discussion over whether the renewable fuel standard (RFS), which was enacted in 2005 and expanded in 2007, is in need of reform. Prior to the hearing, American Petroleum Institute (API) director Frank Macchiarola said that the E15 legislation is "intrinsically" linked to a "broken" biofuel mandate, and therefore petroleum companies oppose it. 

 

The original intent of the RFS, which annually sets increasing biofuel quotas through 2022, was to decrease hydrocarbon emissions and reduce dependence on foreign oil. Nearly all transportation gasoline in the U.S. now contains 10 percent ethanol, mostly made from corn, and biofuel groups are regularly pushing higher blend fuels into the market. 

Petroleum groups like API say the law overestimated the amount of U.S. fuel demand in the succeeding years, thereby forcing too much ethanol onto the market. "E15 is simply not ready for prime time. We have infrastructure issues that have not been solved and a real, essential cost burden with E15, and we also have compatibility issues," Macchiarola said. "You can change the statute all you want, you can mandate the fuel all you want, but if it is simply not ready for the consumer, than we're going to raise objections."

 

Meanwhile, a bipartisan group of House lawmakers is wading through a series of meetings with groups interested in biofuel and RFS reform, such as petroleum companies and associations, biofuel producers, convenience store owners, and automakers. An overhaul could include stopping the program altogether or providing relief—possibly in the form of tax credits—for advanced biofuel producers, as well as a range of other proposals. The E15 measure taken up by the Committee could provide an olive branch to the biofuel producers. Sens. John Cornyn (R-TX) and Mark Udall (D-NM) are leading a similar effort in the Senate.

In advance of a June 14 committee hearing on autonomous vehicles, Senate Commerce, Science and Transportation Committee Chairman John Thune (R-SD) and Sens. Gary Peters (D-MI) and Bill Nelson (D-FL) unveiled a set of principles for autonomous vehicle legislation to update federal law for the emerging technology being developed by companies such as Apple and Ford Motor Co. "These principles underscore our commitment to prioritizing safety, fixing outdated rules, and clarifying the role of federal and state governments," Thune said in a statement. 

Included among the principles is a commitment to developing a national regulatory framework that pre-empts conflicting local and state rules – a priority shared by the autonomous vehicle industry, which has long argued that local executive orders, laws and regulations continue to make it difficult for companies to test and deploy across state lines. Thune, Peters, and Nelson said any bill they develop would update the responsibilities of federal and state regulators regarding self-driving vehicles. This is significant given that states currently have a role in regulating drivers, insurance and licensing, while the federal government oversees vehicle safety. 

Seventeen states and the District of Columbia have enacted laws, executive orders or regulations controlling autonomous vehicles on their roads. Further, Colorado, Tennessee, Washington, and the city of Portland, Oregon have made moves to set standards for autonomous vehicles. Local lawmakers have said they are within their authority to set boundaries for new vehicle technology to keep constituents safe in the absence of federal rules. While industry has applauded some local and state actions, other proposed rules, such as those that mandate a licensed driver be in the autonomous vehicle or maintain a hand on the steering wheel at all times, have been met with criticism. 

The National Highway Traffic Safety Administration created voluntary guidelines for autonomous vehicles last fall, including model policies for states, with the goal of eventually developing formal rules. The Trump administration is reviewing the guidelines and Transportation Secretary Elaine Chao said the agency would move to update them in the coming months.

On June 8, thirteen Democratic attorneys general sent a letter to the U.S. Environmental Protection Agency (EPA) threatening to sue the agency if it moves forward with its plan to undo automotive greenhouse gas emissions standards that the previous administration put in place. 

The Obama administration's rules, negotiated with automakers in 2012, were aimed at doubling average fleet-wide fuel efficiency to 54.5 miles per gallon by 2025, although the real-world mileage figures would be lower. As part of the agreement, the agencies agreed to complete a "Mid-Term Evaluation" (MTE) by April 2018 to determine if the standards should be adjusted for 2022 through 2025 or kept as they are. The MTE was completed ahead of schedule, with then-EPA Administrator Gina McCarthy issuing a final determination that the existing standards be improved upon, but ultimately deciding that they should remain as originally set.

On March 15, the White House confirmed that it had directed the EPA and other agencies to redo the MTE, a move welcomed by the auto industry who shared the administration’s view that the previous administration had rushed through the process.

According to the attorneys general, "EPA’s midterm evaluation was lawful and fully supported by the record. And in light of the critical public health and environmental benefits the standards will deliver, if EPA acts to weaken or delay the current standards for model years 2022-25, like California, we intend to vigorously pursue appropriate legal remedies to block such action."