Insights - November/December 2017 - 32

GOVERNMENT NEWS
Tax Reform, Infrastructure,
NAFTA Talks Still Dominate in
Washington
The final months of 2017 have
produced a mixture of proposals and
concrete results relating to intermodal
in the government sector, including tax
reform, rules for trailing equipment,
agency appointments, NAFTA,
infrastructure and drones.
President Trump rolled out a tax
reform proposal and outlined how
Republican proposals such as abolishing
the estate tax could help trucking and
other businesses both regionally and
nationwide.
Tax reform efforts didn't touch on
infrastructure, but on Capitol Hill, a new
bi-partisan Congressional Infrastructure
Caucus was formed in the House to
kick-start the process of making needed
improvements to bridges, roads and other
facilities.
Rep. Elizabeth Esty (D-Conn.)
announced the caucus's creation on
Oct. 25. Rep. John Duncan (R-Tenn.),
Rep. Sean Patrick Maloney (D-N.Y.) and
Rep. Garret Graves (R-La.) also were
identified in a statement as leaders of
the new group. The intent is to develop
an infrastructure plan in conjunction with
business and union groups that support
Infrastructure Week, which next year is
slated for May 14-21.
President Trump and the Department
of Transportation have sketched out a $1
trillion infrastructure plan, mostly backed
by private sector funding. The full details
for that program, with an anticipated
$200 billion in federal funds, haven't been
announced.
"It is more important than ever that
we prioritize needed repairs and essential
new construction," Esty said.

DOT Appointments
Also on Capitol Hill, President Trump's
nomination of Raymond Martinez, who
currently heads
the New Jersey
Motor Vehicle
Commission,
to lead the
Federal Motor
Carrier Safety
Administration
was approved
by the Senate
Commerce
Martinez
Committee. The
full Senate hadn't approved Martinez as
Intermodal Insights went to press. Two
DOT appointments were confirmed by the
Senate, Steven Gill Bradbury as general
counsel and Derek Kan as undersecretary
of transportation for policy.
In addition, Louisiana Motor Transport
Association Executive Director Cathy
Gautreaux was put in place as FMCSA's
deputy administrator. Also, Scott Mugno, a
FedEx Ground vice president, was picked
to head the Occupational Safety and
Health Administration.
In the legal arena, the U.S. Court of Appeals took a step to block the scheduled
Jan. 1 implementation of a portion of the
so-called GHG2 rules that would, for the
first time, have regulated the components
that new trailers and chassis must have to
address environmental emissions.
The action followed a suit by the
Truck Trailer Manufacturers Association,
which contended that the Environmental Protection Agency overstepped its
authority by proposing those regulations
last year. Earlier in 2017, EPA Administrator Scott Pruitt signaled that the agency
planned to review the rules that were
announced late in President Obama's
administration.

32 Intermodal Insights | November/December 2017

When published, the rules called for
chassis to have low-rolling resistance tires
and some type of tire pressure monitoring
or inflation system. The trailer regulations
proposal included a wider range of requirements, intended to reduce emissions. Containers weren't covered by the proposal.
Separately, the EPA signaled its intention to repeal another facet of the Obamaera GHG2 rules that would have brought
glider kits under the agency's regulatory
review.

Southern California Clean Air
Update Advances
Meanwhile, a high-visibility step was
taken by the Ports of Los Angeles and
Long Beach on Nov. 2, with the approval
of a controversial Clean Air Action Plan
Update that could cost up to $14 billion
to reduce remaining greenhouse gas
emissions. A joint statement from the
ports said the update "provides high-level
guidance for accelerating progress toward
a zero-emission future while protecting
and strengthening the ports' competitive
position in the global economy."
"We're working in partnership with
the Ports of Los Angeles and Long Beach
to ensure joint success. Any impact to
the supply chain impacts all of us," said
Kristen South, a spokeswoman for Union
Pacific Railroad. She expressed concern
that the plan overlooks cost-effectiveness
and market share growth needed to pay
for it.
Others have questioned the plan.
Thomas Jelenic, vice president of the
Pacific Merchant Shipping Association,
said at Intermodal EXPO that maritime
interests are concerned that the cost of
the program will hurt the competitiveness
of the ports. That's because Southern
California cargo volumes haven't improved
significantly since the original 2006 CAAP

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