This Week in Congress

Controversial Voluntary Right to Repair Agreement Announced in Canada

Long-Awaited Greenhouse Gas Legislative Draft Released

Small Business Seeks Tax Extenders, Incentives Beyond Year-End

EPA Administrator Shares Agency’s Principles for TSCA Reform

Tire Labeling Rule Moves Forward in Europe

This Week in Congress

The U.S. Senate will take up 2010 fiscal year appropriations legislation for the Department of Defense, the Departments of Commerce and Justice. The House of Representatives will consider the Bay Area Regional Water Recycling Program Expansion Act of 2009, which would authorize the secretary of the interior to participate in the planning and construction of recycled water distribution systems in California. The House is also likely to consider 2010 appropriations for the Department of Agriculture and the conference report for energy and water appropriations. 

The Senate Finance Committee will take a final vote, sometime this week, on health care reform legislation which will clear the measure for floor consideration.

The Senate Small Business Committee will hold an Oct. 6 hearing on how the Recovery Act has benefited small businesses. The Subcommittee on Competitiveness, Innovation and Export Promotion of the Senate Commerce Committee will hold a hearing, also on Oct. 6, on ways to promote export success for small- and medium-sized businesses. 

The Senate Small Business Committee plans an Oct. 8 hearing on potential reforms that could help small businesses in providing health coverage for their employees. The House Financial Services Committee will hold a hearing the same day on the Credit Card Interchange Fees Act of 2009 and the Expedited CARD Reform for Consumers Act, which are both directed at providing increased protections for consumers. 

Controversial Voluntary Right to Repair Agreement Announced in Canada

Canadian Federal Industry Minister Tony Clement has announced a voluntary Right to Repair agreement between the automakers and the aftermarket, while the substance of the agreement is being strongly questioned by a major trade group representing the Canadian aftermarket.

“We are pleased to enter into this voluntary national agreement with Canada’s automotive OEMs on behalf of Canada’s service and repair industry,” said Dale Finch, National Automotive Trades Association’s (NATA) executive vice president. “This agreement ensures that all auto manufacturers will provide access to service and repair information which will increase competition in Canada’s service and repair industry for the benefit of Canadian consumers.”

According to NATA, the Canadian Automotive Service Information Standard (CASIS) will allow automotive repair facilities in Canada to access auto manufacturers’ service and repair information. Additionally, it will provide access to tooling and training information for local repair facilities across the country. The agreement states that automakers will have the information made available no later than May 2010.

However, notably lacking from the announcement in Ottawa was any mention of the Right to Repair bill currently working its way through the legislative process. After a concentrated lobbying effort by Automotive Industries Association (AIA) of Canada and its members, Bill C-273, the Right to Repair bill, was passed by an overwhelming vote in Parliament in May, thus sending the bill to the Standing Committee on Industry, Science and Technology for review this October.

However, in a letter released by Marc Brazeau, president of AIA Canada to Minister Clement, it states that AIA Canada and its partnering associations were excluded from the conversations between automakers and the aftermarket in participating discussions on the issue of access to information.

“AIA requested that a copy of the draft document be forwarded to us by Sept. 14, 2009 so that we might be able to provide input prior to finalization and support the agreement,” Brazeau said. “This request was rebuffed. From the reluctance of these organizations to engage in any sort of constructive dialogue, we can only conclude that the concerns of the aftermarket continue to be ignored.”

While the voluntary agreement is being praised by vehicle associations and the government, not having broad aftermarket representation at the table has raised several issues.

“We are at a loss as to explain why the car manufacturers would exclude AIA in these discussions in favor of a loosely-affiliated organization that represents less than 5 percent of the marketplace in very few provinces,” Brazeau said. “Moreover, it is our understanding that this organization also represents new car dealerships within its membership, clearly a conflict of interest."

To read a statement and analysis from AAIA on the Canadian agreement, visit www.righttorepair.org.

Long-Awaited Greenhouse Gas Legislative Draft Released

Senator Barbara Boxer, D-Calif., chair, Senate Environment and Public Works Committee, released her version of legislation directed at reducing emissions of greenhouse gases. Similar to legislation which was passed by the House of Representatives, the bill would rely on a cap and trade policy to reduce emissions of greenhouse gases by 83 percent between 2005 and 2050. In the shorter term, Boxer’s draft is more ambitious than its House counterpart, pushing for a 20 percent decrease by 2020, while the House version would require a 17 percent decrease. The bill also differs from the House version by permitting EPA to use the Clean Air Act new source review provision to regulate greenhouse gas emissions at coal-fired power plants, perhaps setting up a battle with Midwestern Senators. 

While Boxer hopes to have the bill considered by her committee by the week of Oct. 26, floor consideration may be significantly delayed due to an expected lengthy debate over health care reform that may last most of the fall. Both proponents and opponents of Boxer’s draft expect that her greenhouse gas legislation will be approved by the committee. However, obtaining the 60 votes to get the bill out of the Senate is far from assured. 

A copy of the draft bill can be viewed by clicking here.

Small Business Seeks Tax Extenders, Incentives Beyond Year-End

A number of small business representatives testified on Sept. 30 before the House Small Business Committee, asking Congress to extend a number of tax incentives that are currently set to expire at the end of 2009. The relief sought by the panel included both annual tax extenders, as well as tax incentives that were part of February’s American Recovery and Reinvestment Act (ARRA). Measures scheduled to expire this year include a number of annual extenders, such as the deductibility of state and local sales taxes; the 15-year straight-line cost for recovery and qualified leasehold and retail improvements; and the increased exemption levels for the alternative minimum tax patch. Committee chair Nydia Velazquez, D-N.Y., indicated that she felt a research and development tax credit is one of the most important tax extenders which could expire this year. 

Panelists from the National Retail Federation and the National Restaurant Association called for the expansion of the ARRA’s net operating loss (NOL) provision. Specifically, the small business representatives sought a five-year expansion of the NOL carry back for all businesses, rather than the current requirement that they have gross receipts of $15 million or less annually. Legislation containing just such an extension has been introduced in both chambers of Congress and would allow companies to carry back losses from 2008 or 2009 for up to five years.

EPA Administrator Shares Agency’s Principles for TSCA Reform

Environmental Protection Agency (EPA) administrator Lisa Jackson presented the agency’s principles for modernizing the Toxic Substances Control Act (TSCA) to Congress on Sept. 20. According to Jackson, EPA oversight over the modern chemical industry is based on 1976 legislation. The new EPA principles were released in advance of new legislation to amend TSCA that will be introduced very soon by Sens. Barbara Boxer, D-Calif., and Frank Lautenberg, D-N.J.

Among the principles that Jackson presented were chemical review using updated risk-based safety standards, a responsibility on manufacturers to share more information with EPA in determining safety of existing chemicals, a heightened focus on “green” chemistry and a sustained source of funding for enacting an enhanced management system for chemicals. While legislative reform is ultimately needed to effectively manage chemicals, EPA is aiming to take action in the interim, including taking a look at an initial list of chemicals and beginning work on four action plans by the end of the year.

The reform principles were favorably received by most industry and environmental groups, but analysts cautioned that the success of the principles will revolve around the way in which the principles are written into law. One of the main issues of concern is the fact that other federal agencies (such as the Food and Drug Administration) already have jurisdiction over safety determinations for some chemicals; and therefore, the coordination of review and the development of standards will need to be carefully considered in formulating any new legislation.

Tire Labeling Rule Moves Forward in Europe

The European Parliament and the European Union (EU) member states reached an agreement last week on regulations that will require tires sold in the EU after Nov. 1, 2012 to be labeled for fuel efficiency and noise performance. Tires would be placed into a classification ranging from the A (best) to G (worst) based on their performance and impact on a vehicle’s fuel efficiency. The labeling requirement would apply to new tires only and not to retread tires. The standards must now be ratified by the EU member states and then formal approval by the European Parliament.

For a copy of the proposed rule, click here.