U.S. Legislative News

Members of Congress Continue to Pursue Auto Tariff Oversight

Representatives Terri Sewell (D-Ala.) and Fred Upton (R-Mich.) have introduced the Automotive Jobs Act, H.R. 1710 (text), legislation that would require the International Trade Commission (ITC) to conduct a study on the economic importance of automotive manufacturing in America before tariffs on automobiles and auto parts could be applied. There is a growing concern over the potentially harmful impact tariffs will have on both domestic and foreign automakers who import component auto parts or have overseas manufacturing facilities.

The Administration has yet to release the conclusions of the Department of Commerce report on the national security investigation of automobile and auto parts imports, but it has been recently reported by those familiar with the findings that it would justify tariffs if the administration chooses to take action. In a recent interview, the President said that foreign cars do not represent a national security threat, but they do pose a threat in terms of the U.S. trade deficit. He also noted that European automakers could avoid potential tariffs by building more U.S. manufacturing plants.

NAFA supports increased congressional authority over the imposition of national security tariffs and has sent letters of support for several pieces of legislation that would ensure tariffs are enacted on legitimate grounds. Fleets would suffer from the collateral impacts of tariffs on imported autos and auto parts, as a 25 percent tariffs is estimated to increase the price of an average imported vehicle by as much as $7,000 and increase the cost of an average vehicle built in the U.S. by nearly $2,300.

Fleet Compares the Costs of Maintaining Electric Versus Gas Vehicles

While the initial acquisition cost of an electric vehicle (EV) is typically higher than a gasoline-powered equivalent, there has been little information to date on the long-term maintenance costs of EVs. The NYC Department of Citywide Administrative Services recently released a report detailing the 2018 maintenance costs of a sample of its light-duty fleet vehicles, which shows significant maintenance cost savings for all-electric and hybrid plug-in vehicles. In a report that expands on the NYC fleet data, the projected total-cost-of-ownership (TCO) over a nine-year period shows that all-electric vehicles do have the potential to provide significant savings on fuel and maintenance costs.

As a member of the EV Drive Coalition, NAFA supports reforms to the electric vehicle (EV) tax credit to raise the number of vehicles eligible for the credit from each automaker.

House Republican Leadership Call for Action on Autonomous Vehicles

On March 13, Republican leadership within the House Energy and Commerce Committee sent a letter to the Chairman of the Committee, Frank Pallone (D-N.J.), urging the committee to take up bipartisan self-driving vehicle legislation. The house passed the Safely Ensuring Lives Future Deployment and Research in Vehicle Evolution (SELF DRIVE) Act, (H.R. 3388), during the last session of Congress. However, the legislation was not able to be passed in the Senate due to disagreements over certain provisions in the bill.

The Senate Majority Whip, John Thune (R-S.D.), has indicated that he is looking at reintroducing a similar bill this session in the coming months. There is a consensus among members of Congress, the auto industry, and safety advocates that many of the current motor vehicle standards and regulations need to be updated to address the development of highly autonomous vehicles.

NAFA supports Congressional efforts to improve the standards governing self-driving vehicle technology in a way that ensures public safety, as self-driving vehicle technology has enormous potential to reduce the number of injuries and fatalities associated with on-road accidents.

NHTSA Moves Forward on AV Standards Rulemaking

On March 14, the National Highway Traffic Safety Administration (NHTSA) sent advance notice of proposed rulemaking on reducing federal regulatory barriers to autonomous vehicles in for review before it is published in the federal register. Up until this point, only voluntary guidance has been released for developers of AV technology. This first real rule for AVs will likely deal with the Federal Motor Vehicle Safety Standards requiring human controls (e.g., steering wheels, breaks, accelerators), as NHTSA issued a request for public comments at the beginning of the year on current regulatory barriers regarding those particular features.

NAFA is closely monitoring the development of regulations related to AV technology, which are needed to ensure that these potentially lifesaving technologies are developed under a common set of modern safety standards.

Stop Underrides Act

On March 5, Representatives Steve Cohen (D-Tenn.) and Mark DeSaulnier (D-Calif.) introduced the Stop Underrides Act (H.R. 1511) in the House, while Sens. Kirsten Gillibrand (D-N.Y.) and Marco Rubio (R-Fla.) introduced an identical bill (S. 665) in the Senate. The legislation would require underride guards on the sides and front of large trucks, as well as updating current standards for underride guards on the rear of trucks. Currently, federal law only requires guards on the rear of trucks.

The Stop Underrides Act is endorsed by safety and consumer advocacy groups, and NAFA is following the legislation as it develops and moves through Congress.

EPA Issues Proposed Year-Round E-15 Rule

The EPA has published a proposed rule to allow for the sale of E-15 blends of gasoline throughout the entire year, with a goal of finalizing the rule before the beginning of the summer driving season. The EPA is currently accepting public comments on the proposed rule until April 29.

NAFA remains concerned about the impact of E-15 on engines and underground tank systems and will be submitting comments regarding the potential impact this proposed rule will have on fleets.