U.S. Legislative News

NAFA 2019 Legislative Fly-In Recap

On September 26-27, NAFA advocacy leaders gathered in Washington, D.C., for NAFA’s 2019 Legislative Fly-In. As part of the event, attendees heard from allied organizations from across the auto industry, federal agency staff, Congressional staff, and a variety of subject matter experts on the issues that stand to impact fleet managers and their organizations. The event culminated in a day of meetings with lawmakers, to urge their support for NAFA’s top advocacy priorities including the following legislation and issues:

• Renewal of tax incentives that help make the business case for acquiring alternative-fueled vehicles that offer improvements in efficiency and sustainability (S. 617/H.R. 3301)
• Greater congressional oversight on trade-related actions and the impact of current and potential tariffs on fleets, consumers and the auto industry (S. 365 /H.R. 1008 and S. 287/H.R. 940).
  S. 1094/H.R. 2256, The Driving America Forward Act, to expand the cap on the 30D plug-in electric vehicle tax credit
• Protecting open access to vehicle-generated data for owners and lessees of vehicles
• Preserving the 5.9GHz spectrum band for transportation safety technologies until research and testing to ensure safe use been completed

 

Administration Publishes Final Rule on CAFE and GHG Standards Authority

The Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) published a final rule, the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule Part One: One National Program, in the Federal Register on September 27. The final rule enables the federal government to provide nationwide uniform fuel economy and greenhouse gas (GHG) emission standards for automobile and light-duty trucks. This move clarifies that federal law preempts state and local tailpipe GHG emissions standards and zero-emission vehicle (ZEV) mandates. The rule also notes that the EPA is withdrawing the Clean Air Act (CAA) preemption waiver it granted to California in 2013 for its GHG and ZEV programs.

This final rule is just one portion of the SAFE Vehicles Rule, which is also expected to establish new standards covering model years 2021-2026. DOT and the EPA have published a fact sheet on this “One National Program” Rule. California, as well as many environmental groups, are expected to raise legal challenges to the final rule, as they believe the Administration does not have the legal authority to revoke California’s CAA waiver. The uncertainty over fuel economy and emissions standards authority places automakers in a difficult position as they develop and produce vehicles for the future. NAFA supports unified national CAFE and GHG standards that encourage sustainability and auto industry stability.

 

DERA Receives Higher Funding in Senate and Reauthorization in the House

In early September, the U.S. House of Representatives passed H.R. 1768, the Diesel Emissions Reduction Act of 2019, to reauthorize DERA funding for the EPA’s Clean Diesel Program through 2024 by a vote of 295-114. The legislation is now pending before the Senate and has been included in the multi-year surface transportation reauthorization package. DERA grants have helped improve air quality for communities across the country and are one of the most effective strategies to replace older heavy-duty vehicles and equipment with newer, cleaner options.

Senate appropriators working on a FY2020 government spending package have included $85 million for DERA in the bill that provides funding for the EPA (S. 3052). This amount is $30 million more than what was included in the House’s funding package for DERA. NAFA was actively working with the DERA Coalition to ensure the Senate package included this higher amount and will keep pushing the House to bring their level up as Congress works on FY2020 appropriations. DERA grants are awarded on a case-by-case basis and have historically been a valuable source of funding for fleets.

 

Bilateral U.S.-Japan Trade Agreement Eases Tensions

The White House announced on September 25 that President Trump and Prime Minister Abe of Japan had agreed to resolve several pending trade issues between the nations. The U.S. Trade Representative issued a fact sheet on the agreement, which primarily deals with tariffs on agricultural products coming from the U.S. and a variety of products from Japan. While the agreement did not explicitly take the threat of future tariffs on Japanese autos and auto parts off the table, the cooperation between the countries is seen as a significant step forward to resolve other pending trade issues.

NAFA is urging members of Congress to pass legislation that would restore congressional oversight or authority on trade-related actions taken by the Administration. Additional tariffs on imported autos and auto parts could have a significant impact on U.S. consumers, including fleets, as manufacturers are forced to pass down a portion of the associated cost increases. Higher-cost parts and new vehicles may mean delayed maintenance and an older fleet, which could potentially jeopardize on-road safety, as well as slow the trend of improved fleet fuel economy and emissions.

 

Short-Term Spending Package Allows More Time for Funding Negotiations

H.R. 4378, legislation to provide government funding for an additional seven weeks, was signed into law on September 27. With a new shutdown deadline of November 21, Congressional appropriators and the White House will have extra time to work out a deal on funding the government through 2020. With several difficult points to negotiate remaining in the actual funding packages being considered, many believe that there could be a series of threats of government shutdown followed by short-term funding resolutions on the horizon.