NAFA Comments On Proposed NHTSA Rulemaking
NAFA has submitted comments on two proposed rulemaking initiatives by the National Highway Traffic Safety Administrations (NHTSA). NHTSA has issued a proposal to allow adaptive driving beam (ADB) headlighting systems in vehicles for sale in the U.S. if they meet certain criteria and testing standards. ADB systems are already available in overseas markets, including many European countries and Japan. ADB systems could significantly reduce nighttime glare, as headlighting systems would adapt to driving conditions and the presence of other vehicles automatically.
NHTSA has also issued a proposed rulemaking on the creation of a pilot program for on-road testing and deployment of automated driving systems (ADS). Importantly, NHTSA is considering allowing non-traditionally designed vehicles and non-traditional automobile manufacturers to participate in a pilot. The NHTSA pilot has the potential to greatly advance the ADS technologies and bring them to the market for everyday consumers.
NAFA’s comments on ADB systems may be found here, and NAFA’s AV pilot comments here.
Congress Considers Action On Expired Fuel Tax Credits
At the end of November, Rep. Kevin Brady (R-Texas), Chairman of the House Ways and Means Committee, released a draft tax package that would seek to make several revisions to the tax code, including the renewal of many tax credits that expired at the end of 2017. The package would have extended the alternative fuel excise and infrastructure tax credits retroactively for 2018 and proposed a multi-year extension and phase-out of the biodiesel excise tax credit through 2024.
Unfortunately, on December 10 Rep. Brady released a revised tax package in the House that no longer included the language on extenders. This development reflects the divisive nature of extenders among House Republicans, with more conservative members opposing the renewal of tax extenders.
However, there still appears to be broader support for the tax extenders in the Senate, with reports that Senate Republicans are working on a “skinny tax package” that could be attached to a year-end funding package. Senate Majority Whip John Cornyn (R-Texas) has said that extenders may be included in such a package, along with other items like retirement reform and IRS administration reform. While the prospects are uncertain for passage of language on tax extenders before Congress adjourns for the year, the added time that Congress will be in session to work on the remaining government agency appropriations will allow for continued discussion of tax provisions.
Potential VMT Pilot Program Legislation Coming in 2019
The soon-to-be Chairman of the House Transportation and Infrastructure Committee, Rep. Peter DeFazio (D-Ore.), announced that he is planning to introduce legislation that would call for a national vehicle miles traveled (VMT) pilot program. The pilot would study the feasibility of implementing a national VMT or Mileage-Based User Fee (MBUF) to charge drivers for their road usage and help fund the maintenance of the interstate highway system. Several states have and are currently conducting state-level VMT pilot programs under a funding provision included in the 2016 FAST Act.
Many legislators see a VMT fee as an equitable solution to funding the Highway Trust Fund in the future that is currently funded through federal motor fuel taxes. While there have also been calls to raise the federal fuel taxes to provide a source of short-term funding relief, VMT fees could perhaps provide a solution to the problem of decreasing revenues as the national motor fleet becomes more fuel efficient and electrified.
Additionally, a report commissioned by Congress from the National Academies of Sciences, Engineering, and Medicine was recently released that demonstrated the heightened need to find solutions to the oncoming funding shortfall of the interstate highway system. The report recommended that Congress consider different user fee options that may be viable. While a VMT pilot program appears to have bipartisan support, legislators from both parties have expressed concerns about potential implementation hurdles of a VMT for ensuring data privacy and for differentiating between rural and urban drivers.
USMCA Uncertainty
The U.S., Canada, and Mexico signed the USMCA trade agreement on November 30 in Buenos Aires, which now requires ratification by each partner country’s legislature. This may be a challenge in the U.S., as leaders of the soon to be Democratic-controlled House have expressed serious concerns over labor and environment provisions of the agreement. President Trump is attempting to apply pressure on Congress to ratify the agreement by formally pledging to terminate NAFTA, giving legislators a six-month window to ratify the USMCA.
With ongoing talks between the Administration and Congress, the most likely scenario is that the president will offer concessions on House Democrat legislative priorities, as the administration has shown an unwillingness to reopen the agreement. Withdrawing from NAFTA could have a major impact on the U.S. economy and on the prices of many goods, including autos and auto parts. Looming over the debate on the future of North American trade are the impending 2020 elections and what impact a trade agreement or lack of one may have on voters.
General Motors Layoffs
The American automaker General Motors (GM) announced that it would be shuttering four U.S. plants and laying off around 15,000 employees, citing the need to reprioritize including changing market dynamics that favor larger model offerings and invest resources into new technologies, such as electric vehicles. While GM’s decision may have been strategic in ensuring the company’s future growth and survival, it has attracted the strong bipartisan ire of the president and many lawmakers in the process. The president has threatened to cut off GM’s electric car subsidies and impose additional auto tariffs on imported vehicles to prevent future domestic layoffs from automakers.
GM has been very active with its messaging and outreach to lawmakers from its offices in Washington, D.C., in the wake of the plant shutdown and layoff announcement. Time will tell if GM is able to weather the current storm of public opinion, and what repercussions will be imposed in light of its move.
NAFA Fleet Management Association
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