U.S. Legislative News

House Committee Passes Tax Extenders Bill

On June 20, the House Ways & Means Committee held a day-long markup session (video) to consider the Taxpayer Certainty and Disaster Tax Relief Act of 2019 (H.R. 3301), alongside other pieces of tax legislation. The legislation would renew and extend through 2020 a suite of expired tax provisions known as “extenders.” This includes 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, and the 30% alternative fuel infrastructure tax credit.

The bill passed through the committee along a party-line vote, with significant opposition voiced by some Republican members of the committee. However, many view this markup session as the beginning to more robust negotiations on tax policy that are likely to develop. The Senate has also shown an appetite for advancing these issues by continuing to hold listening sessions and accept written testimony from stakeholders on current tax provisions under consideration. With the help of personal accounts from several members, NAFA recently submitted written comments to the Senate Finance Committee’s Energy Tax Policy Task Force advocating for an extension of the expired fuel-related tax credits.

FAST Act Reauthorization Hearing

The Senate Committee on Commerce, Science, and Transportation recently held a hearing to examine transportation and safety issues related to the reauthorization of the current surface transportation legislation, the FAST Act. Notable witnesses who appeared before the Committee included Administrator Raymond Martinez of the Federal Motor Carrier Safety Administration (FMCSA) and Deputy Administrator Heidi King of the National Highway Traffic Safety Administration (NHTSA). Lawmakers have been ramping up work on FAST Act reauthorization, as it is set to expire at the end of 2020.

Senators pressed the witnesses on several high-profile policy considerations during the hearing, including a possible framework for autonomous vehicles (AV), changes to the age requirements for interstate commercial drivers, and changes to hours of service requirements that dictate when and how often drivers need to take meal and rest breaks. NAFA supports a long-term surface transportation reauthorization package so long as the final measure ensures that our roads will become safer for all drivers.

House Passes First 2020 Appropriations Package

On June 19, the House of Representatives passed a “minibus” appropriations package (H.R. 2740) which includes 2020 funding for the Department of Energy along with Health and Human Services, Labor, Education, Defense, and State Departments. Within the DOE appropriations, $42.3 million was allocated for the Clean Cities program for 2020. This is an increase of $4.5 million from $37.8 million from 2019. The DOE Clean Cities Program is the agency’s only initiative focused on the deployment of cleaner fuels, advanced technology vehicles, and alternative refueling infrastructure. Clean Cities funds are used in communities across America to help local fleets transition to cleaner fuels and vehicles and to develop new alternative refueling infrastructure.

While an amendment was introduced to strip the appropriations package of funding for the DOE Clean Cities program, it was ultimately not offered for consideration by the House. This came after significant stakeholder outreach to Congress in support of the Clean Cities program, which generated bipartisan opposition to the amendment. NAFA signed on to a Congressional letter with 13 other national trade and non-profit organizations and corporations and more than 260 local and state organizations to urge Congress to oppose the amendment.

Coalition Holds Heavy-Duty Truck Federal Excise Tax Event

NAFA attended an event held just outside the U.S. Capitol by the Modernize the Truck Fleet Coalition on June 19, which promoted legislation that would repeal the 12% federal excise tax (FET) on the retail sale of most new heavy-duty trucks. The Modern, Clean, and Safe Trucks Act (H.R. 2381/S. 1839) would repeal the 12% FET that was initially imposed in 1917 to help fund World War I. The tax is considered to be particularly hard to administer, and the added cost on a new heavy-duty truck can lead to delays in acquiring more modern vehicles that are more fuel efficient, safer, and cleaner.

Rep. Doug LaMalfa (R-Calif.), the sponsor of H.R. 2381, spoke during the event regarding the importance of passing the legislation, along with several members of the coalition. The speakers also highlighted the fact that while the FET is often associated with commercial trucking fleets, it can also be a significant cost for public fleets that must employ heavy-duty vocational vehicles in their operations.