U.S. Legislative News

$2 Trillion Infrastructure Plan Announced

After a meeting with the President on April 30, Democratic leaders, including House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, announced that they had agreed with the President to work towards a $2 trillion infrastructure plan. The $2 trillion figure is seen by many as ambitious, given the contentious nature of the debate on how to raise revenue to fund such a plan. Democratic leaders and the President plan to meet again in three weeks to discuss revenue sources.

Following the announcement of the $2 trillion funding goal on Tuesday, several Republican members of Congress highlighted their concerns over funding and voiced their opposition to measures that would raise taxes. Democrats made clear that one path they see forward to paying for the infrastructure package would be through revisions to the 2017 tax law to roll back some of the tax cuts given to the highest earners and corporations. A revision of that sort is largely seen as a non-starter for Republicans who feel the 2017 changes to the tax code have been essential to maintaining the country’s economic growth.

With infrastructure funding typically being an issue that unites voters across party lines, it is expected to become a more prominent area of debate leading up to the 2020 elections. NAFA supports increased infrastructure funding and views raising the gas and diesel excise tax as a reasonable way to generate revenue to provide for the maintenance and development of the nation’s roadway system.

Congressional Committee Leaders Prepare for Surface Transportation Bill

Leaders of the Senate Environment and Public Works (EPW) and House Transportation and Infrastructure Committees are looking to ramp up work on a six-year surface transportation funding bill. This legislation is expected to follow a different track from the larger $2 trillion infrastructure proposal being negotiated between the President and congressional leadership. The current surface transportation authorization, the FAST Act, provides funding for highways and mass transit but is set to expire September 30, 2020. The Highway Trust Fund (HTF) is expected to become insolvent in 2021 if lawmakers don’t pass an authorization bill with additional funding.

Senate EPW Chairman John Barrasso (R-Wyo.) and Ranking Member Tom Carper (D-Del.) are hoping to have their committee fast-track and approve a bill by the end of July. Leaders of the House Transportation and Infrastructure Committee, Chairman Peter Defazio (D-Ore.) and Ranking Member Sam Graves (R-Mo.), do not expect to have their bill completed by July but are planning to hold a several hearing in the coming months to discuss policy priorities.

NAFA strongly supports efforts to reauthorize surface transportation funding to provide for the solvency of the HTF. Until Congress takes action to give the HTF a sustainable source of revenue, periodic surface transportation reauthorizations will be necessary to maintain the integrity of the country’s Interstate Highway System.

Legislation Introduced to Repeal Tax on Heavy-Duty Trucks

Reps. Doug LaMalfa (R-Calif.) and Colin Peterson (D-Minn.) have reintroduced legislation to repeal the federal excise tax (FET) on heavy-duty trucks, the Modern, Clean, and Safe Trucks Act of 2019 (H.R.2381). The FET on heavy-duty trucks was initially imposed in 1917 to help defray the cost of World War I. This tax on most new heavy-duty trucks, tractors, and trailers has grown from three percent when it was incorporated into the Highway Trust Fund (HTF) in 1955 to 12 percent today. The revenue generated through the FET tax is considered by many to be unreliable since truck sales are inconsistent year-to-year, and the tax adds between $12,000 and $22,000 to the price of new heavy-duty trucks. The FET is the highest excise tax on a percentage basis that Congress levies on a product.

NAFA continues to support repeal of the 12 percent federal FET on the retail sale of most new heavy-duty trucks and is active in supporting this legislation. The FET depresses new heavy-duty truck purchases and delays the deployment of cleaner, safer, and more fuel-efficient trucks.

Potential Gap Between California and EPA NOx Pollution Plans

The EPA and California are both in the process of creating plans to address air pollution coming from diesel engines’ nitrogen oxide (NOx) emissions. Engine makers and the trucking industry share concerns over a potential "state versus federal" set of standards on future model-year vehicles. While both the EPA and California are expected to impose updated limits, many believe California will impose much more stringent requirements. The proposals are expected to be released at the beginning of next year, but the California standards are expected to be finalized sometime in late 2020, much earlier than the EPA’s projected finalization in 2021.

While more stringent standards are expected to be a challenge for compliance, the most significant concerns center on the issue of unharmonized standards. Many trucking fleets’ operations may require them to ensure their vehicles meet California standards, potentially incentivizing pre-buying of fleets before the more stringent standards take effect. NAFA supports harmonized regulatory vehicle standards, as they help ensure pricing stability and reduce the cost burdens that are inevitably passed down to consumers.

Legislation to Allow Driverless Autonomous Vehicles Sent to Florida Governor

The Florida Senate unanimously passed a bill on May 1 that would allow self-driving vehicles to be operated in Florida without a human on board. The bill is now headed to Florida Governor Ron DeSantis’ office for his approval. If enacted, the legislation would be a huge step forward for companies looking to deploy driverless vehicle fleets, such as Uber and Lyft.

Federal legislation dealing with autonomous vehicles is still on hold as Sen. John Thune (R-S.D.) and Sen. Gary Peters (D-Mich.) are in talks with leaders in the House regarding their national AV framework legislation. A bill to establish a national framework is seen as a growing priority, as states including Florida move ahead to set their own AV parameters, potentially creating a patchwork of state regulations. NAFA supports the development of policies regulating the development and deployment of driverless vehicle technology.