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Legislative and Regulatory Update

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					U.S. Legislative Update




  NAFA’s 36th Annual Conference
    Law Enforcement Group
           Las Vegas
        August 18, 2004
       November Elections
o   Presidential election looks like another photo
    finish.

o   Control of the Senate is competitive

o   Control of the House should stay with GOP




                                                     2
          Congressional Elections
       Senate Outlook
    o    Currently 51 Reps, 48 Dems, 1 Indep
    o    Eight open seats where the incumbent is not
         seeking reelection – Colorado (R), Florida
         (D), Georgia (D), Illinois (R), Louisiana (D),
         North Carolina (D), Oklahoma (R), South
         Carolina (D)
    o    Other close races expected in Alaska,
         Missouri, Pennsylvania, South Dakota,
         Washington

                                                      3
          Congressional Elections
       House Outlook
    o    Currently Republicans have an 11-seat
         advantage
    o    Only about three dozen seats are
         competitive




                                                 4
Legislative Update
                      Congress
   Appropriations

   Energy legislation

   Highway bill

   Tax legislation




                                 6
         Appropriations

 Commerce,   Justice, State and
 Judiciary

               Treasury and
 Transportation,
 Independent Agencies


                                   7
          Energy Legislation

   2002 -- died in conference

   2003 – died in Senate

   2004 – pending in Senate



                                 8
             Energy Legislation

   Amends EPACT

   Requires federal agencies to increase fuel economy of
    new passenger cars and light trucks

   Authorizes $200 million grant program for state and local
    governments

   Establishes a fuel cell transit bus demonstration program

   Creates a program to replace or retrofit school buses


                                                                9
        Energy Bill and Ethanol

   Requires a renewable fuel content for gasoline started at
    3.1 billion gallons in 2005 and increasing to 5.0 billion
    gallons in 2012

   Eliminates MTBE in motor fuel




                                                            10
Energy Legislation -- EPACT
   Double credit for dedicated medium/heavy vehicles

   Credit for hybrids and NEVs

   Alternative compliance

   Electric utility emergency vehicle exemption

   No increase is the biodiesel credit



                                                        11
                  Highway Bill

   Funding and highway safety

   House and Senate have passed different versions

   Potential White House veto




                                                      12
                   Issues

   Increase in gasoline and diesel excise tax

   Safety requirements for 15-passenger
    vans




                                                 13
         15-Passenger Vans
   Requires NHTSA to include to include
    15-passenger vans in the rollover testing
    programs

   Prohibits the leasing, renting or buying if
    there is reason to know that the vehicle
    will be used significantly to transport
    preprimary, primary, and secondary
    school students to or from school or an
    event related to school
                                                  14
                Tax Legislation

Energy-related incentives

   Credit for the purchase of new qualified fuel cell, hybrid,
    or AFV

   The buyer claims the credit, except in the case of a tax-
    exempt entity, in which case the seller may claim the
    credit

   New credit for qualified biodiesel fuel mixtures


                                                              15
Regulatory Update
Department of Energy

EPACT

   Private and local government fleet
    mandates have been dropped

   Federal, State and fuel provider
    mandates still in place
                     EPA
   Air quality standards

   Vehicle emission standards

   Fuel standards

   Hazardous waste, storage, etc


                                    18
EPA Sets Clean Air Standards
   EPA issued a new rule classifying areas by the
    severity of their ozone conditions

   Sets deadlines for state and local governments
    must meet to reduce ozone levels

   States and communities must prepare a plan to
    reduce ground-level ozone


                                                     19
          Clean Air Standards

   34 states do not meet new health standards for
    ground-level ozone

   Part or all of 474 counties nationwide are in
    nonattainment




                                                     20
21
          Clean Air Standards

Areas in noncompliance may have to:

   Impose new controls on industrial plants

   Restrict transportation

   Require tougher vehicle inspection programs

   Require the use of special, cleaner-burning gasoline



                                                           22
2007 Diesel Emission Standards
   Particulate standard of 0.01 g/bhph
    o   A 90% reduction from current standard

   Key is the diesel particulate filter

   Use 15 ppm diesel fuel
    o   Current diesel is 500 ppm

   Test vehicles available in 2005



                                                23
2007 Diesel Emission Standards

Costs

   $3-5,000 for medium-duty

   $5-7,000 for heavy-duty

   Maintenance costs – 10 year useful life




                                              24
          Diesel Retrofits
   Add particulate traps to existing vehicles
   Use with 15ppm diesel fuel

   DPF unit installed = $6,500 - $10,000

   EPA voluntary program
   California mandatory program

                                                 25
       EPA – Air Quality

Additional Issues

 Vehicle idling
 Fine diesel particulate matter




                                   26
         EPA – SPCC Program
Spill Prevention Control and Countermeasures

   New rules go into effect February 17, 2006
   Applicable to fleets with aboveground oil storage
    capacity of greater than 1,320 gallons
   Facilities must prepare and implement a SPCC
    Control plan to prevent any discharge of oil
   Plans must be certified by a licensed
    Professional Engineer (PE)
                            http://www.epa.gov/oilspill/

                                                      27
28
                 DOT
 Hours of Service
 15-passenger vans




                       29
           Hours of Service

   Federal court vacated HOS rules

   Rules stay in effect until September 6

   DOT reviewing legal options



                                             30
               15-Passenger Vans
   June 1, NHTSA reissued rollover warning and released new research

   The newly released NHTSA research reinforces the fact that 15-
    passenger vans have a rollover risk that increases dramatically as the
    number of occupants increases to full capacity

    In fact, the likelihood of a rollover when a van is fully loaded is about
    five times greater than when the vehicle contains only a driver

   While an increased likelihood of rollover is present for other types of
    fully loaded passenger vehicles, it is most pronounced for 15-passenger
    vans

   The new NHTSA analysis also showed that the risk of rollover
    increased significantly at speeds over 50 miles per hour and on curved
    roads


                                                                                 31
       National Safety Permit
             Program
   Starting January 1, 2005 , the HM Safety
    Permitting Program will start phasing in,
    requiring carriers of certain hazardous
    materials to hold an HM Safety Permit
    issued by the Federal Motor Carrier Safety
    Administration

   http://www.fmcsa.dot.gov/safetyprogs/hm/
    hm_permitting.htm

                                                 32
          Training for Entry Level
   FMCSA regulation

   Requires mandatory training for drivers with less than one year of
    experience operating a CMV with a CDL

   Training includes

     o   Driver qualification requirements
     o   Hours of service of drivers
     o   Driver wellness
     o   Whistle blower protection


   http://www.fmcsa.dot.gov/rulesregs/fmcsr/final/04-11475EntryLevel.htm



                                                                            33
     Driver Safety Performance
              History
New rules for CDL drivers

   The minimum driver safety performance history data that new or
    prospective employers are required to seek for applicants

   Where, and from whom, that information must be sought

   Previous employers must provide the minimum driver safety
    performance history information. Safety Performance History

   http://www.fmcsa.dot.gov/rulesregs/fmcsr/final/SafetyPerform_3-30-
    04.htm




                                                                     34
    NHTSA – Event Data Recorders
Proposed regulation

   require that the EDRs voluntarily installed in light vehicles record a minimum
    set of specified data elements

   specify requirements for data format

   increase the survivability of the EDRs and their data by requiring that the
    EDRs function during and after the front, side and rear vehicle crash tests

   require vehicle manufacturers to make publicly available information that
    would enable crash investigators to retrieve data from the EDR

   require vehicle manufacturers to include a brief standardized statement in
    the owner’s manual indicating that the vehicle is equipped with an EDR and
    describing the purposes of EDRs



                                                                                  35
       Transportation Security
           Administration
   On April 6, the Transportation Security
    Administration (TSA) issued a final rule changing
    the date on which fingerprint-based background
    checks must begin in all States to January 31,
    2005
   TSA is making this change so that the States will
    have enough time to make changes to their
    existing commercial driver safety and testing
    programs to facilitate implementation

                                                   36
                   OSHA
   New Safety and Health Bulletin on Small
    Tire Repair

   Hazards while Servicing Light Truck,
    Automobile, and other Small Tires

   http://www.osha.gov/dts/shib/shib042904.
    html
                                               37
    OSHA -- Transportation Safety

   OSHA has a motor vehicle safety initiative

   Motor vehicle safety symposium to encourage the
    federal workforce to wear seat belts while traveling on
    business delivers

   The event will take place on Tuesday, September 14,
    2004 at 10:30 a.m., during the National Safety Council
    Congress & Expo in New Orleans, Louisiana.

   http://www.osha.gov/dep/fap/fshc59/mv-agenda.html


                                                              38
             IRS – Personal Use
2004 values

   Standard business mileage rate 37.5 cents per mile

   Luxury values
       $14,800 for passenger cars,
       $16,300 for a light truck or van

   “Fleet average” values
       $19,700 for passenger cars
       $21,600 for trucks and vans

   Cents-per-mile valuation
       Auto -- $14,800


                                                         39
           Law Enforcement
Exemptions from personal use for

   Clearly marked police and fire vehicles

   Unmarked vehicles operated by a law
    enforcement officer is use is authorized



                                               40
    Definition of Law Enforcement
                Officer
   employed on a full-time basis by a
    government agency, and

   authorized by law to carry firearms,
    execute search warrants, and to make
    arrests (other than merely a citizen's
    arrest), and who regularly carries firearms


                                                  41
     Definition of Unmarked
              Vehicle
 operated by a sworn officer
 incident to law-enforcement functions,
  such as being able to report directly from
  home to a stakeout or surveillance site, or
  to an emergency situation
 use of an unmarked vehicle for vacation or
  recreation trips cannot qualify


                                            42
       State Activities


California – South Coast Air District
California – diesel retrofits

New Jersey – diesel retrofits
Contact Information
     Pat O’Connor
 NAFA Legislative Counsel

    202/223-6222 voice
     202/785-0687 fax

patoconnor@kentoconnor.com

                             44
U.S. Legislative Update




  NAFA’s 36th Annual Conference
    Law Enforcement Group
           Las Vegas
        August 18, 2004

				
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