MotorVehicleRegs.COM

Cash for Clunkers

On March 17, 2009, Representative Sutton (D-OH) introduced the Consumer Assistance to Recycle and Save (CARS) Act (H.R. 1550) which provides consumer purchase incentives for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. In the legislation, new car purchases that qualify for this incentive must achieve a minimum of 27 miles per gallon on highways, while new trucks must achieve a minimum of 24 mpg for highway driving. Voucher values would range from $3,000 to $5,000 depending on the new vehicle’s fuel efficiency. Vehicles must have an MSRP of less than $35,000, achieve Tier 2, Bin 5 federal vehicle emission standards and be manufactured in the U.S., or in North America. A $7,500 voucher would be available for any vehicle assembled in the U.S. that has a minimum city fuel economy label value of 100 mpg, beginning after the 2010 calendar year.

Plug-in Electric Vehicle Tax Credits

On October 3, 2008, Congress approved the Emergency Economic Stabilization Act of 2008 (HR 1424). Included in the legislation is a tax provision pertaining to plug-in electric vehicles (Sec. 205 of of Title II on the bill). Sec. 205 provides tax credits for purchasers of plug-in electric vehicles that will range from $2,500 to $15,000 per vehicle depending on vehicle size and batter capacity. The credit is $2,500 + $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. There are limits as follows:

$7,500 (GVWR < 10,000 lbs) $10,000 (GVWR between 10,000 lbs and 14,000 lbs) $12,500 (GVWR between 14,000 lbs and 26,000 lbs) $15,000 (GVWR > 26,000 lbs)

The credits will be available until 250,000 total plug-in electrics are sold in the U.S. (clock starts 1/1/09).

Advanced Technology Vehicles Manufacturing Loan Program

On Saturday, September 27, 2008, Congress approved legislation (HR 2638) which, among other things, appropriates $7.51 billion for FY2009 for the advanced technology vehicle manufacturing loan program that was authorized by the Energy Independence and Security Act of 2007. The Department of Energy (DOE) is tasked with implementing the loan program and they are required to issue implementing regulations within 60 days of enactment.

Flex-Fuel Vehicle Mandate

On July 22, 2008, U.S. Senators Sam Brownback (R-KS), Ken Salazar (D-CO) and Joseph Lieberman (I-CT) held a press conference to introduce the Open Fuel Standard Act. As drafted the legislation would require that starting in 2012, 50% of new automobiles, and starting in 2015, 80% of new automobiles, be flex-fuel vehicles warranted to operate on gasoline, ethanol, and methanol, or be warranted to operate on biodiesel. A companion bill on the House side (HR 6559) was introduced the same day by representatives Engel (D-NY), Congressmen Jack Kingston (R-GA), Steve Israel (D-NY), and Bob Inglis (R-SC). The Senate bill has been referred to the Senate Committee on Commerce, Science and Transportation while the House bill has been sent to the House Committee on Energy and Commerce.

Alternatively Fueled Vehicles

On June 10, 2008, Representative Tancredo (R-CO) introduced legislation, the Fuel Freedom Act of 2008 (HR. 6231).  As written, the legislation would require that all vehicles manufactured after the 2018 model year be alternative fuel vehicles.  Penalties for noncompliance are $10,000/vehicle.  The bill was referred to the Committee on Energy and Commerce.

Hybrid truck legislation

At a June 10, 2008 hearing of the House Subcommittee on Energy and Environment of the Committee on Science and Technology, witnesses from NREL, Eaton Corp., Dueco, PG&E and Calstart told members of the subcommittee that if the government wants to accelerate the introduction of hybrid technology into medium and heavy duty commercial trucks, more government support is needed relative to R&D and purchasing incentives. 

Legislation to be introduced by Rep. Sensenbrenner, as currently drafted, would specifically accelerate research of plug-in hybrid technology in trucks.  At the hearing, the representative from Calstart indicated that it would be better to provide funding for hybrid trucks in general and not focus specifically on plug-in’s.

Information on the hearing is online at http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2216.

California Waiver

On May 19, 2008, the Majority Staff of the Committee on Oversight and Government Reform issued a memo regarding EPA's denial of the California GHG waiver.  The memo indicates that the record shows: (1) the career staff at EPA unanimously supported granting California’s petition; (2) EPA Administrator Johnson also supported granting California's petition at least in part; and (3) Administrator Johnson reversed his position after communications with White House officials. 

 

The memo states the record does not explain why the California petition was denied given the strong support inside EPA.  It further states that it appears that the White House played a significant role in the reversal of the EPA position and that this raises questions about the basis for the White House actions.  The memo implies that the President or his advisors may have pressured Administrator Johnson to ignore the record before the agency for political or other inappropriate reasons. 

 

Finally, the memo states that additional investigation by the Committee will be required to assess the basis for the White House intervention in the decision.

 

A copy of the memo along with supporting documents is online at the Committee’s website (http://oversight.house.gov/).

Flex Fuel Vehicles

On May 15, 2008, Senator Thune (R-SD) introduced the Flex Fuel for All Americans Act (S.3025).  The legislation would amend the IRS code to allow a credit against tax for the purchase of flexible fuel vehicles (FFVs).  The credit would vary from $1,000 to $1,500 per vehicle depending whether or not the vehicle's fuel efficiency running on the blended fuel versu its efficiency running on gasoline or diesel.  As proposed, the credits would be available Jan. 1, 2009 through the end of 2015.  The bill has been referred to the Committee on Finance.

California Waiver

On April 2, 2008, Senator Feinstein proposed legislation (S.2806) that would require the EPA Administrator to reconsider the decision to deny the request of the State of California to regulate GHG emissions from new motor vehicles, and to complete further proceedings in accordance with the decision of the Supreme Court in Massachusetts v. EPA. Specifically, per the legislation, not later than June 30, 2009, the EPA Administrator shall reconsider, and confirm or reverse, the decision to deny the request of the State of California to regulate greenhouse gas emissions from new motor vehicles. The legislation also requires the EPA to issue a finding within 60 days of enactment with respect to whether GHG emissions from any 1 or more classes of new motor vehicles or new motor vehicle engines, in the judgment of the Administrator, causes or contributes to air pollution that may reasonably be anticipated to endanger public health or welfare.

Lieberman-Warner Climate Change Legislation

On March 14, 2008, EPA issued its analysis of the S.2191, the Lieberman-Warner Climate Security Act of 2008. S.2191 places declining GHG emission caps upstream on petroleum, natural gas, as well as manufacturers of F-gases and N20 and downstream on coal facilities. The bill establishes a cap and trade system which permits the use of domestic offsets and international credits. There also are bonus allowances for carbon capture and storage and set-asides for agriculture & forestry sequestration and landfill and coal mine methane mitigation. According to EPA, the greatest emission abatement under S.2191 occurs in CO2 emissions from the electricity sector. EPA states that the transportation sector provides a relatively small proportion of CO2 emissions abatement via S.2191 reflecting a relatively modest indirect price signal an upstream cap and trade program sends to the transportation sector. Per EPA’s assessment, the price signal provided by S.2191 is equivalent to only $0.53 increase in the price of gasoline in 2030, not high enough to cause large changes in the demand for transportation or changes in how transportation services are provided. For a copy of EPA’s analysis, click here.