U.S. Legislative Updates



EPA Denies Ethanol Waiver

The U.S. Environmental Protection Agency (EPA) has announced that it has not found evidence to support a finding of severe "economic harm" that would warrant granting a waiver of the Renewable Fuels Standard (RFS). The decision is based on economic analyses and modeling done in conjunction with the U.S. Department of Agriculture (USDA) and the U.S. Department of Energy (DOE).

To support the waiver decision, EPA conducted several economic analyses. According to EPA, economic analyses of impacts in the agricultural sector, conducted with USDA, showed that on average, waiving the mandate would only reduce corn prices by approximately one percent. Further, economic analyses of impacts in the energy sector, conducted with DOE, showed that waiving the mandate would not impact household energy costs.

EPA concluded that the evidence and information collected failed to support a determination that implementation of the RFS mandate during the 2012-2013 time period would severely harm the economy of a State, a region, or the United States, the standard established by Congress in the Energy Policy Act of 2005 (EPAct).

This is the second time that EPA has considered an RFS waiver request. In both cases, analysis concluded that the mandate did not impose severe harm. In 2008, the state of Texas was denied a waiver.

More information: http://www.epa.gov/otaq/fuels/renewablefuels/notices.htm

IRS Announces Mileage Rate for 2013

The Internal Revenue Service has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for taxpayers to calculate the amount of a deductible business, moving, medical, or charitable expense using a standard mileage rate can be found in Rev. Proc. 2010-51. Notice 2012-72 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

Government Study Looks at Paratransit

Little is known about the extent of transit agencies’ compliance with the Americans with Disabilities Act (ADA) paratransit service requirements, according to a recent government report. The average number of annual ADA paratransit trips provided by a transit agency increased 7 percent from 2007 to 2010 according to a review from the Government Accountability Office released last month. The average cost of providing an ADA paratransit trip increased 10 percent from 2007 to 2010.

According to the report, "There is no national level information to accurately measure the extent to which agencies providing ADA paratransit service are complying with ADA’s paratransit service requirements." The full report is available at http://www.gao.gov/assets/660/650079.pdf

NTSB Announces 2013 Transportation Priorities

The National Transportation Safety Board has released its 2013 Most Wanted List, with six of the ten issues focusing on highway travel - where most transportation fatalities take place. According to NTSB, the "number one killer" on the list is substance-impaired driving.

The new annual list of the independent federal safety agency's top advocacy priorities calls for ending distraction in all modes of transportation. Distraction was the cause of multiple accidents investigated by the agency in recent years, and its deadly effects will only continue to grow as a national safety threat.

The list covers all transportation modes. There are six new issue areas: distraction, fire safety, infrastructure integrity, pipeline safety, positive train control and motor vehicle collision avoidance technologies.

NTSB Issues Recommendations to Reduce Impaired Driving

The National Transportation Safety Board recently announced several recommendations as part of a continuing emphasis on the issue of substance-impaired driving. The recommendations focus on three areas: better alcohol testing, better drug testing, and identifying the "place of last drink" or POLD.

According to the NTSB, although over 10,000 lives are lost each year in substance impaired driving crashes, some states provide little or no data to the national calculation. Further, while there is significant evidence that illegal drugs, over-the-counter and prescription medications are playing a greater role in roadway crashes, there are no standards or testing criteria for these substances. To address these shortcomings, the NTSB recommends that states develop better blood alcohol concentration testing and reporting guidelines; agree on a common standard of practice for drug toxicology testing; and increase their collection, documentation and reporting of test results.

The collection of place of last drink (POLD) data could focus training and enforcement actions on establishments that are serving under-age or intoxicated patrons. By collecting information on POLD, law enforcement officers provide a way to target establishments for effective interventions.

Links to the safety recommendations are available at http://www.ntsb.gov/doclib/recletters/2012/H-12-032-033.pdf and http://www.ntsb.gov/doclib/recletters/2012/H-12-034-036.pdf