U.S. Legislative Issues
House Passes Bill to Extend Tax Credits for One Year, Senate Action Likely to Follow Soon
The House of Representatives passed a bill on December 3 to provide a one-year retroactive extension of more than fifty tax incentives and deductions. Among these provisions are several important to fleets, including tax credits for biodiesel, propane and CNG as vehicle fuels. These credits amount to a $0.50 per gallon alternative fuel tax credit for natural gas and propane and a $1.00 per gallon tax credit for biodiesel.
Another incentive is the Bonus Modified Accelerated Cost Recovery System (MACRS) or "bonus depreciation" program, which allows extra depreciation to be taken for fifty percent of a truck’s purchase price and an extra bonus depreciation deduction of up to $8,000 for automobiles, light trucks, vans, and SUVs.
The Senate is planning to vote on the measure before leaving town for the holidays. Considering the bill only provides for an extension through 2014, the issue will likely be taken up again next year after the new Republican-controlled Congress takes over in January. Some Congressional leaders have expressed their disappointment at not being able to come together over a broader tax reform package. Hope remains, however, that a larger deal may be possible in 2015 as the issue represents one of the few items Congressional Republicans and President Obama could agree on.
Congressional Appropriations Bill for 2015 Includes Increased Spending on DERA
The House and Senate Appropriations Committees unveiled a $1.1 trillion omnibus spending bill on December 9 that includes a 50 percent increase in spending on the Diesel Emissions Reduction Act (DERA) over 2014 levels. DERA was funded at $30 million, an increase from $20 million in 2014.
Enacted through the Energy Policy Act of 2005, DERA provides funding for fleets to install retrofit technologies on existing heavy?duty diesel vehicles and engines, or replace engines and equipment, reducing harmful emissions by as much as 90 percent. While emissions from newer diesel engines reflect vital progress in reducing emissions, millions of older diesel engines are still in use by fleets. Fortunately, emissions from these older engines can be controlled with the use of modern technologies funded through DERA.
In a letter sent earlier this year, NAFA Fleet Management Association requested that Congress fully fund the Diesel Emissions Reduction Act.
Hours of Service Rule Rolled Back by Congress
A provision that temporarily suspends trucker scheduling regulations has been added to the recently released omnibus appropriations bill, legislation that funds the government through the end of fiscal year 2015. The new rules went into effect last year amid an ongoing study examining the number of trucks driven on congested roads.
The provision would eliminate a current requirement that truck drivers take breaks between 1 AM and 5 AM on consecutive nights before they can work again. The measure would also remove a limit on the number of times they can declare the start of a new workday. With these changes, truckers would be able to work as many as 82 hours a week.
Under current rules, truck drivers can work as many as fourteen hours a day, including eleven hours of driving. If they average seventy hours in a week, they must rest 34 hours, including two consecutive nights from 1 AM to 5 AM. Since the provision was attached to a spending bill, it will only remain in effect until the bill expires at the end of FY 2015.
Senate Commerce Committee Approves Mark Rosekind to be next NHTSA Administrator
On December 9, the Senate Committee on Commerce, Science, and Transportation approved the nomination of Mark Rosekind to be the next administrator for the National Highway Traffic Safety Administration (NHTSA). President Obama nominated Rosekind, who is currently a member of the National Transportation Safety Board (NTSB), to the post last month. Rosekind has served on the NTSB since 2010, and he brings an expertise in human fatigue research and has published more than 150 scientific, technical, and industry papers.
Although a vote on the nomination by the whole Senate has yet to be scheduled, both the retiring Chairman of the Commerce Committee, Jay Rockefeller (D-WV), as well as the incoming Chairman and current ranking member John Thune (R-SD) say they are optimistic that Rosekind will be confirmed by the whole Senate before it adjourns for the year.
