U.S. Legislative Issues

 

 

Ohio Senator Introduces Legislation to Extend Pre-tax Benefits to EV Drivers

To further encourage the use of electric cars, Sen. Sherrod Brown (D-OH) has introduced S. 3450, the Electric Vehicle Credit Act, legislation that would exclude transportation benefits for electric vehicle charging from an employee’s taxable income, the same way many employees can exclude other transportation benefits, like transit passes or parking fees.

Specifically, employers would be able to give up to $250 per month in electric charging benefits without employees being taxed. Employers would not be required to offer the benefit, but for those who do, employees who drive cars with 4 kWh or larger battery packs or motorcycles or three-wheelers with 2.5 kWh or greater battery packs, would be eligible. The proposal also offers incentives to employers to install electric charging equipment for their employees to use while at work. Not surprisingly, the bill has been endorsed by the Electric Drive Transportation Association.
 
 
EPA Boosts 2017 Biofuel Volumes

First passed in 2005 and substantially expanded in 2007, the Renewable Fuel Standard (RFS) program requires the U.S. Environmental Protection Agency (EPA) to set targets annually for the volumes of renewable fuels refiners have to blend each year with gasoline and diesel.

NAFA officially weighed in with the EPA in July in response to the agency’s proposed 2017 volumes for renewable fuels. In it comments, NAFA reaffirmed its ongoing support for federal environmental and energy polices, such as the RFS, but urged the EPA to lower the final ethanol mandate to no more than 9.7 percent of gasoline demand to ensure ethanol levels in gasoline stay below the 10 percent blend wall.  "Fleet managers are especially concerned that the blend wall would result in the mandated use of E15 – an ethanol blend that we fear will void vehicle warranties, damage engines, and cause damage to underground storage tank systems," NAFA told the EPA.

On November 23, the EPA announced 2017 renewable volume obligations under the RFS at levels higher than it proposed in May. Under the new quotas, refiners will need to blend in a record 19.28 billion gallons of biofuels into transportation fuels in 2017, with 15 billion gallons from conventional biofuels—mainly corn-based ethanol. This matches the 15 billion gallon blending cap for conventional biofuels that Congress set 11 years ago under the expanded RFS. The EPA also announced a 19 percent increase in advanced biofuel blending from 2016, to hit 4.28 billion gallons in 2017. This includes a 100 million gallon increase in biodiesel and an 81 million gallon increase in cellulosic biofuel blending.

While the EPA rule doesn’t set an explicit ethanol target, oil companies were joined by some environmental and food-industry groups in denouncing the increase in corn-based ethanol. Petroleum-industry opponents of the RFS specifically pointed to concerns about breaching the blend wall, or the total amount of biofuels that the current fueling infrastructure can absorb by blending in up to 10 percent ethanol into gasoline. According to a research note from FBR & Co., the 2017 blending quotas would actually push the total amount of conventional and non-conventional ethanol blended into fuel past 11 percent.

The 2017 quotas are certain to increase pressure on Congress and President-elect Donald Trump to overhaul the RFS. While Mr. Trump is unlikely to rescind the new targets now that they have been finalized, he may support efforts to overhaul it by Congress.


FMCSA Issues Final Entry-Level Driver Training Rule

On December 7, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced a final rule establishing comprehensive national minimum training standards for entry-level commercial truck and bus operators seeking to obtain a commercial driver’s license (CDL). According to the FMCSA, the standards established in the rule address the knowledge and skills necessary for the safe operation of commercial motor vehicles and also establish minimum qualifications for entities and individuals who provide entry-level driver training. The rulemaking was mandated by Congress in the Moving Ahead for Progress in the 21st Century Act (MAP-21).

The standards apply to individuals applying for a Class A or Class B CDL for the first time; an upgrade of their CDL; or a hazardous materials (H), passenger (P), or school bus (S) endorsement on their CDL for the first time. While the final rule does not establish a minimum number of hours required to obtain a CDL, it does require that "applicants seeking a CDL demonstrate proficiency in knowledge training and behind-the-wheel training on a driving range and on a public road, with training obtained from an instructional program that meets FMCSA standards."

The effective date of the new rule is February 6, 2017 and the compliance date is listed as February 2020.


EPA Seeks to Maintain Light-Duty Emissions Standards through 2025

In a proposed determination statement issued November 30, the U.S. Environmental Protection Agency (EPA) proposed leaving the current greenhouse-gas (GHG) emissions standards for light-duty vehicle model years (MY) 2022-2025 in place, based on "extensive technical analysis that shows automakers are well positioned to meet the goals." Under a previous EPA timeline, the proposed determination was slated for the middle of next year. However, EPA Acting Assistant Administrator Janet McCabe said EPA Administrator Gina McCarthy may finalize the preliminary determination before President-elect Donald Trump takes office.

The Alliance of Automobile Manufacturers, the industry’s main trade group, denounced the EPA’s action as an "extraordinary and premature rush to judgment." General Motors said in a statement that it was "disappointed that the EPA changed the process and decided to advance the timetable" for completing its review of the fuel economy requirements. "This unexpected action appears to dismiss the many comments and questions raised by automakers regarding the draft technical assessment report issued by EPA earlier this year."

The public comment period for this action began November 30 and will end on December 30. After the comment period has ended, Administrator McCarthy will decide whether she has enough information to make a final determination on the MY 2022-2025 standards.

NAFA Fleet Management Association
http://www.nafa.org/