U.S. Legislative News

A Temporary End to the Shutdown

The federal government reopened after a three-week funding agreement was passed on January 25 to give Congress additional time to negotiate on the remaining fiscal year 2019 appropriations. Both parties are beginning to show signs of flexibility in what they may offer one another, as Democrats look to cobble together a $5 billion-plus border security package and Republicans consider possible concessions on various immigration policies. However, the consensus is that the two sides are still far from compromising on a full funding package in the short term.

 

Congress Aims to Review Administration’s Tariff Authority

The Administration is reportedly looking to extend its authority to unilaterally increase tariffs as a response other countries’ tariff and non-tariff policies through recently introduced legislation by Rep. Duffy (R-Wisc.) the U.S. Reciprocal Trade Act, H.R. 764. This move comes amid calls from others in Congress to check the president’s use of Section 232 national security tariffs, which have been viewed as an overreach of authority and not imposed in a manner that serves national security interests. Many industries have made appeals to Congress to act, as the tariffs have already had notable impacts on the prices of goods requiring steel and aluminum.

Sens. Doug Jones (D-Ala.) and Lamar Alexander (R-Tenn.) have introduced the Automotive Jobs Act of 2019, S. 121, that would require the International Trade Commission to investigate the well-being, health, and vitality of the U.S. automotive industry before tariffs could be applied. At present, the administration appears exceedingly interested in tariffs on foreign-made automobiles, so the legislation may prove to be an essential measure to protect automakers.

Senate Finance Committee Chairman Charles Grassley’s (R-Iowa) opposition to the tariffs on imported steel, aluminum, automobiles, and auto parts will bolster any congressional efforts to act on tariff authority. Sen. Grassley recently outlined his committee’s agenda for the coming session and said the following in regard to the president’s actions on tariffs:
 
“While I strongly agree with President Trump that we must have fair trade deals that benefit Americans, I do not believe that we should alienate our allies with tariffs disguised as national security protections...and certainly not when it comes to trade in automobiles and auto parts. For this reason, I intend to review the president’s use of power under Section 232 of the Trade Act of 1962, which grants the president broad legal authority to impose tariffs in the name of national security.”

NAFA has voiced its position that imposition of section 232 tariffs will be disruptive to virtually every industry sector and level of government, significantly increasing the cost of vehicle acquisition and maintenance, and negatively impacting vehicle fleet turnover as the deployment of new safer and cleaner technologies is delayed.

 

Autonomous Vehicle “Clearinghouse” Bill

Rep. Earl Blumenauer (D-Ore.) of the House Ways and Means Committee, which oversees tax-related measures, has released a draft bill to create a new $2 million grant program for universities to explore the effects of self-driving technology on urban design and municipal budgets. The Preparing Localities for an Autonomous and Connected Environment Act or ‘‘PLACE Act’’ would be paid to a university through the Highway Trust Fund each year for the creation of a “clearinghouse” to collect, conduct, and fund research on the influences of highly automated vehicles (AVs) on land use, urban design, transportation, real estate, and municipal budgets.

AVs stand to have a significant impact outside of the traditional realm of transportation, and with technological development and actual deployment far outpacing policies and regulations, there is a heightened need for broader consideration of what a future with AVs on the road will entail. One potential issue identified regarding large-scale AV deployment will be the decreased need for parking structures and decreased revenues associated with parking fees and fines. Many municipal budgets rely heavily on these funding sources, and a sudden boom of available land for redevelopment in cities could have an enormous impact on land value and real estate prices.

As the congressional focus on infrastructure and surface transportation picks up, the measures found in the PLACE Act could very likely be rolled into a larger legislative package. NAFA recently attended a transportation stakeholder meeting hosted by Rep. Blumenauer and Rep. Rodney Davis (R-Ill.) to discuss the secondary influences of autonomous vehicles and the legislative clearinghouse proposal.

 

Legislation to Increase the Gas Tax Emerges

A draft bill, the Rebuild America Act of 2019, is being circulated to increase the federal motor fuels tax by five cents a year starting in 2020. After 2023 the federal gasoline tax would rise to 43.3 cents per gallon and the federal diesel tax would increase to 49.3 cents per gallon. After 2024, the tax would increase based on inflation.

Rep. Blumenauer is the lead on this proposal and is currently seeking co-sponsors for the draft legislation. If enacted, this legislation would bring the first increase in the federal motor fuels tax since 1993. The gas tax currently sits at 18.3 cents/gallon, and diesel tax is 24.3 cents/gallon.

As the gas tax is the primary revenue source for the Highway Trust Fund, this bill would aim to reduce the repeated funding shortfalls the fund has faced in the past. Increased funding for surface transportation is a critical component in any infrastructure investment package Congress puts together. Raising the gas tax has long been a controversial legislative subject. However, members of both parties have publicly or privately expressed interest in increasing the rate.

 

Auto Safety Roadmap Released

On January 22, 2019, the Advocates for Highway and Auto Safety released its 2019 Roadmap of State Highway Safety Laws, which identifies state laws critically needed to reduce motor vehicle crashes and calls for action to make safety improvements on our nation’s roadways. The report identifies some critical trends in improving driver safety and reducing the number of crashes and collisions. A state-by-state comparison offers insights for states regarding the types of legislative measures they should adopt to potentially make improvements in driver safety. Only six states and Washington, D.C., received a rating for advancement towards enacting the Advocates’ optimal safety laws, with 33 states still in need of improvement, and 11 identified as being dangerously behind in adopting optimal highway safety laws.

 

EPA to Hold Informational Webinars on 2019 DERA Grants

EPA will be hosting two information session webinars on the 2019 applications for the Diesel Emissions Reductions Act (DERA) Clean Diesel Funding Assistance Program grants on Tuesday, February 5, at 3 p.m. (ET) and on Wednesday, February 6 at 2 p.m. (ET). The program is soliciting applications nationwide for projects that achieve significant reductions in diesel emissions in terms of tons of pollution produced and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas. Information regarding the webinars and important upcoming dates for 2019 applicants are available here. The EPA has also recently released the FAQ document on the DERA program for organizations that are considering applying for 2019 Clean Diesel Funding Assistance Program grants.

EPA expects to grant two to eight agreements per EPA region with around $40 million in total funding to applicants. Application packages must be submitted electronically to EPA through Grants.gov no later than Wednesday, March 6, 2019, at 11:59 p.m. (ET) to be considered for funding.