U.S. Legislative Issues



 
FMCSA Requests Input on ‘Beyond Compliance’ Program

The Federal Motor Carrier and Safety Administration (FMCSA) is seeking public comment on a proposal to incentivize truck fleets to implement practices and technologies that go beyond simple adherence to federal safety regulations. Among the incentives proposed by FMCSA in the April 23 filing are credits on CSA and ISS scores and fewer roadside inspections. FMCSA says its proposed ‘Beyond Compliance’ program could "reward carriers who exceed regulatory requirements and improve the safety of commercial motor vehicles and drivers operating in the U.S." Examples of questions FMCSA is seeking feedback on are as follows:

What voluntary technologies or safety program best practices would be appropriate for Beyond Compliance?
What type of incentives would encourage motor carriers to invest in technologies and best practices programs?
How would FMCSA verify the voluntary technologies or safety programs were being implemented?

FMCSA did warn that the use of technologies alone wouldn’t necessarily lead to regulatory relief. The agency is accepting comments through June 22, 2015.

Senate Finance Committee Tax Working Group Posts NAFA Recommendation

The Internal Revenue Code limits the amount of depreciation that a business taxpayer can take on passenger vehicles in its fleet. Since 1984, fleet automobiles, vans, and trucks have been the only business investment where full depreciation is restricted. Further, most fleet passenger vehicles are not able to take full advantage of the additional first year depreciation deduction allowed under Section 168(k).

In January 2015, Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) announced the launch of five bipartisan Finance Committee Tax Working Groups to spur congressional comprehensive tax reform efforts in the new Congress.  In March 2015, Senators Hatch and Wyden directed the working groups to solicit public input from interested members and stakeholders on how best to overhaul the nation’s tax code. In response, NAFA sent a letter to members of the Business Income Tax Working Group to request that it consider revising the depreciation requirements for automobiles, trucks, and vans owned or leased by fleets.

On April 29, the Senate Finance Committee posted the nearly 1,500 submissions it received to its official website. NAFA’s recommendation can be found here. The working groups plan to convene this month to present their agreements and are scheduled to report their final recommendations to Chairman Hatch and Ranking Member Wyden by May 25, 2015. Somewhat surprisingly, Chairman Hatch indicated last week that he may decide to keep the working groups’ recommendations confidential.

President Obama Announces Nomination to Head Federal Highway Administration

On May 8, 2015, the White House officially nominated Greg Nadeau to serve as administrator of the Federal Highway Administration (FHWA), a post he has held in an acting capacity since last July.

Immediately following the announcement, Senator Richard Blumenthal (D-CT) warned that Nadeau’s path to confirmation could be bumpy, stating, "tough questions are ahead for this nominee – including the Administration’s commitment to reforming a deeply flawed and failing agency." Blumenthal went on to say, "His current, extensive role at FHWA raises questions about his independence and zeal for reform, and resistance to regulatory capture. I’ll seek to assure that Mr. Nadeau can be the strong, reforming leader that FHWA needs."  
 
As administrator, Nadeau would succeed Victor Mendez, who served as Administrator from 2009 until last year when he left the post to become Deputy Secretary of Transportation. Nadeau joined the agency on July 8, 2009, as deputy administrator.

The FHWA provides stewardship over the construction, maintenance and preservation of the nation’s highways, bridges, and tunnels. FHWA also conducts research and provides technical assistance to state and local agencies in an effort to improve safety, mobility, and livability, and to encourage innovation.