U.S. Legislative Issues

Lawmaker Proposes Penny Increase to Gas Tax to Fund Highway Trust Fund

On March 22, 2017, Peter DeFazio (D-OR) introduced H.R. 1664, the Investing in America: A Penny for Progress Act, legislation that would add about a penny per year to the 18.4-cent federal gas tax to fund much needed infrastructure projects. The resulting dollars would pay for a 30 percent increase in spending from the Highway Trust Fund (HTF), above what’s currently planned.

 
Specifically, H.R. 1664 would increase the federal gas tax by no more than 1.5 cents per year. The exact cost would be determined by two indexes: the National Highway Construction Cost Index, and the Corporate Average Fuel Economy standard. The Treasury Department would be authorized to sell $17 billion in 30-year bonds each year against the future revenue from the tax. The bond money would then be deposited in the federal HTF and distributed directly to states under a provision already in the highway authorization bill.

The bill "could bring our system into a state of good repair within 15 years and put hundreds of thousands of people to work," DeFazio said. The legislation would also fund the shortfall in the HTF through 2030.


Trump Orders Review of Fuel Economy Standards

Following a meeting with automakers in Detroit on March 15, 2017, President Trump announced that the U.S. Environmental Protection Agency (EPA) will conduct a review of the vehicle fuel-efficiency standards put in place by the Obama administration. The Obama administration's rules, negotiated with automakers in 2012, were aimed at doubling average fleet-wide fuel efficiency to 54.5 miles per gallon by 2025, although the real-world mileage figures would be lower. The move to reopen the government’s review of the standards will allow automakers to argue for less stringent and less costly mileage standards than the targets set in 2012.

Auto industry stakeholders welcomed the review. "The Trump administration has created an opportunity for decision-makers to reach a thoughtful and coordinated outcome predicated on the best and most current data," said Mitch Bainwol, Chief Executive of the Alliance of Automobile Manufacturers, an industry lobbying group. Conversely, environmental groups were quick to decry the review, pointing to the progress made on reducing pollution and oil consumption.

Notably, the administration decided to leave in place a waiver that lets California and other states enforce stricter emissions rules within their borders, at least for now. California Governor Jerry Brown (D) has promised to lead the fight to stop President Trump from weakening environmental rules, a stance echoed by the California Air Resources Board (CARB) which voted on March 24 to move forward with the stricter emissions standards for cars and trucks originally outlined in 2012. This vote puts California on a collision course with the EPA given that the group of states following California’s standards represent more than 130 million residents, or more than a third, of the vehicle market in the U.S.


House Subcommittee Examines Self-Driving Technologies

On March 28, 2017, the House Energy and Commerce Subcommittee on Digital Commerce and Consumer Protection held a hearing entitled "Self-Driving Cars: Level of Automation" focused on the use of advanced driver assistance systems (ADAS) and the development and deployment of autonomous vehicles. ADAS are modern automotive safety technologies that monitor and provide warnings about surrounding roadway activity, and supply additional braking and steering support to drivers. More specifically, they are crash avoidance systems intended to minimize the impact of blind spots, alert drivers when they stray from a designated lane and detect and react to a variety of roadway obstacles in order to prevent crashes or reduce the severity of collisions.

According to initial estimates, over 40,000 Americans died in traffic accidents last year, marking a sharp rise in fatalities over the last two years, full committee Chairman Greg Walden (R-OR) said in his opening statement. ADAS could reduce that number up to 82 percent for passenger vehicles, according to National Transportation Safety Board data. Unfortunately, drivers have shied away from some of these features, in part because of confusion or a lack of understanding of their capabilities, according to witness testimony.

Hearing panelists told the Subcommittee that strategies to increase consumer adoption of self-driving technologies should begin at the dealerships. They also said the use of ADAS could be boosted by sharing safety data and by having the National Highway Transportation Safety Administration (NHTSA) include crash avoidance technologies in its 5-Star rating system. NHTSA could also require more information about these systems in the stickers located on all new vehicles’ windows, panelists said. The stickers, known as Monroney labels, are required by federal law for new vehicles and list price and other information.

In 2015, NHTSA asked for public input on a plan to update its New Car Assessment Program and include advanced driver assistance technologies within the program's 5-Star safety rating system. An agency spokesperson confirmed no further actions have been taken on this initiative.

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