U.S. Legislative News

NAFA Urges Extension of Fuel Tax Incentives

On March 14, the House Ways and Means Tax Policy Subcommittee held a hearing to review the existing tax incentives (also known as extenders) and evaluate how they fit into the new tax code following passage of the Tax Cuts and Jobs Act. In response, NAFA submitted a statement for the record to the Subcommittee urging that the following incentives be extended for five years:

• 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
• The 30 percent alternative fuel infrastructure tax credit

In its statement, NAFA emphasized the role these incentives play in a company or government agency’s vehicle and fuel purchasing decisions. The credits, NAFA explained, help to make the business case for biodiesel and alternative fuel vehicles.

“Fuel tax credits have helped accelerate the adoption of natural gas and propane as motor fuels. These credits help offset the higher acquisition cost of alternative fuel vehicles by reducing operating costs and help ensure the long-term demand and commercial viability of alternative fuel technologies,” NAFA said in its comments.

NAFA concluded by reminding the Subcommittee that changes made to the tax code by the Tax Cuts and Jobs Act will not directly impact either a fleet’s acquisition cost of alternative fuel vehicles or affect the lifecycle costs of these vehicles.

Congress Reaches Budget Agreement

The Senate narrowly averted another government shutdown by passing a $1.3 trillion spending bill on March 23 that funds the government through September 30, 2019. Below are some of the transportation-related highlights included in the agreement:

• $100 million for autonomous vehicle research and development
• $75 million for the NAFA-backed Diesel Emissions Reduction Act (DERA) program which helps fleet owners reduce diesel emissions
• $1.5 billion for the Transportation Investment Generating Economic Recovery, or TIGER, infrastructure grants. The White House had previously proposed eliminating the TIGER program
• $845 million for the U.S. Federal Motor Carrier Safety Administration, an increase of $201 million over current enacted levels

IRS Publishes Updated Information for 2017 Fuel Tax Incentives

The Internal Revenue Service has published information on how to apply for the alternative fuel and biodiesel tax credits for 2017 provided by the Bipartisan Budget Act of 2018. The IRS advises "If you viewed or downloaded any of the impacted tax forms, instructions, or publications before February 9, 2018, please revisit those forms, instructions, and publications to ensure that they have captured all updates that may have occurred as a result of the Act."

The updated IRS forms are available here.

PHMSA Seeks Input on Using Automated Technologies to Transport Hazardous Materials

The Pipeline and Hazardous Materials Safety Administration (PHMSA) has issued a request for information on the use of automated technologies in the transportation of hazardous materials. In its request, published in the Federal Register on March 22, PHMSA states that its purpose in seeking the information is to ensure the safe transportation of hazardous materials “in anticipation of the development, testing, and integration of Automated Driving Systems.” The Federal Register notice cites the growing presence of automated technologies in the transportation system, particularly on highways and over rail.

In the request, PHMSA stresses the importance of safety and testing as automated systems develop, and suggests that the Hazardous Materials Regulations (HMR) be updated to account for these new technological innovations. The HMR are designed to ensure that such materials are packaged safely during transport, to offer a communication line between transportation workers and emergency responders and to minimize the consequences of an incident.

PHMSA’s goal in seeking comments is to hear from industry experts and public organizations on how best to ensure these regulations consider automated vehicles in the transportation of hazardous materials. Comments will be accepted through May 7, 2018.

New House Bill Would Open Up Interstate Trucking to Younger Drivers

On March 21, Reps. Duncan Hunter (R-Calif.) and Trey Hollingsworth (R-Ind.) introduced the Developing Responsible Individuals for a Vibrant Economy (DRIVE-Safe) Act, legislation that would expand interstate truck driving opportunities to individuals between the ages of 18 and 21. Specifically, the DRIVE-Safe Act would require prospective young drivers to log 400 hours of on-duty time and 240 hours of driving time with an experienced driver in the cab after earning a commercial driver license (CDL). Current federal law does not permit 18- to 21-year-olds to drive Class 8 trucks across state lines.

A press release issued by Hunter emphasized the DRIVE-Safe Act’s specific role in addressing the industrywide driver shortage: “My legislation addresses this issue in the trucking industry by allowing qualified drivers under the age of 21 to enter into an intensive vehicle operation and mentor-apprentice training program, allowing them to cross state lines moving freight across the country. This is a common-sense approach that creates job opportunities for younger workers and provides a vital resource to America’s trucking industry that is critical in supporting our growing domestic economy.”

The DRIVE-Safe Act is supported by the American Trucking Associations, the Indiana Motor Trucking Association, UPS, the International Foodservice Distributors Association, and the National Council of Chain Restaurants.