This Week in Congress

Obama Administration to Hold Small Business Lending Forum This Week

CPSC Hears from Industry Leaders, Consumer Advocates on Online Safety Database

Timeline for Health Care Reform Slipping in Senate

NHTSA Further Extends Automotive Lighting Rule Effective Date

International Negotiators Fail to Reach Agreement on Controlling HFC Use

NHTSA Issues Clarifications on Heavy Duty Truck Braking Rule

China to Look into U.S. Auto Subsidies, Imports

Japanese Proposing to Make Hybrids Noisier

This Week in Congress

The Senate plans to continue debate on 2010 fiscal year legislation to fund military construction and the Department of Veterans’ Affairs. The Senate also is scheduled to continue debate over the nomination of David Hamilton to be a judge in the U.S. Seventh Circuit. The House of Representatives likely will consider the Medicare Physician Payment Act of 2009, which seeks to provide a long-term solution to the physician reimbursement issue. The House also is scheduled to consider legislation that would designate segments of the Molalla River in Oregon as part of the Wild and Scenic Rivers program, and a bill to reauthorize federal grants for fire prevention. 

Among the hearings scheduled this week, the Subcommittee on Commerce, Trade and Consumer Protection of the House Energy and Commerce Committee will hold a Nov. 17 hearing to hear testimony on reauthorization of the Toxic Substance Control Act (TSCA). The Subcommittee on Trade of the House Ways and Means Committee also will meet on Nov. 17 to discuss the operation and impact of the U.S. preference programs and opportunities for improvement. The Senate Energy Committee will further hold a hearing on Nov. 17 on international aspects of climate change. 

The Subcommittee on Commerce, Trade and Consumer Protection and the Subcommittee on Communications, Technology and the Internet, both of the House Energy and Commerce Committee, will hold a joint Nov. 19 hearing on the offline and online collection and use of consumer data.

Obama Administration to Hold Small Business Lending Forum This Week

According to the Associated Press, the Obama administration has set a Nov. 18 date for a small business forum, which will focus on a new initiative to increase lending to smaller firms in an effort to reverse recent U.S. job losses. The forum, to be hosted by Treasury Secretary Timothy Geithner and Small Business Administrator Karen Mills, will gather small business owners, lenders and legislators to discuss aspects of a revamped lending program. 

The program was initially called for by President Obama last month as he unveiled his plan to provide low-cost capital to community banks in an effort to increase lending to small businesses. Funding for the new program would come from the $700 billion Troubled Asset Relief Program. The size of the program has not yet been determined. The forum is intended to provide a gauge demand and assist in defining the size and scope of the program. 

CPSC Hears from Industry Leaders, Consumer Advocates on Online Safety Database

At a hearing held before the Consumer Product Safety Commission (CPSC), manufacturing industry representatives expressed their concern that a soon-to-be-launched CPSC product safety database will lead to an increased number of reports of unsafe products. Known as the Consumer Product Safety Risk Management System (CPSRMS), the database, along with other social media initiatives, is part of CPSC’s goal to increase utilization of information technologies. The system is being implemented due to requirements in the Consumer Product Safety Improvement Act. 

Industry officials argued that the proposed structure of the database would permit submissions of false or inaccurate safety incident reports to CPSC by consumers. Despite the numerous benefits of allowing consumers to easily file reports online, the fear is that it could result in inaccuracies or claims more closely related to product performance, rather than product safety. Safety advocates at the meeting expressed their desire to see CPSC retain stringent reporting timelines in implementing the database. In the case of CPSRMS, the proposed publishing deadline is 10 days. Consumer groups also pushed for a method to automatically publish reports, rather than a manual system.

For more information on the hearing, visit www.cpsc.gov/webcast/previous.html.

Timeline for Health Care Reform Slipping in Senate

According to Senate Majority Whip Richard Durbin, D-Ill., the new goal of Senate Democrats is now to have a Senate version of health care reform passed by the end of the year. This timeline is the latest in a series of departures from the original target of having a piece of legislation ready for President Obama’s signature “in the fall.” Though not quite finalized, the Senate bill is expected to contain roughly $357 billion in new taxes and fees, including a 40 percent excise tax on high-end, “Cadillac” health insurance plans.

Further action on the bill in the Senate hinges on the timing of the release of the Congressional Budget Office’s cost estimate figures. Durbin indicated that a vote this week on a motion to begin debate on the legislation would be “a terrific outcome.” If the Senate manages to pass their eventual version of the legislation, the bill would still have to be combined with the recently-passed House version and passed again by both chambers of Congress before being sent to the White House for approval.  Accomplishing these tasks before the end of the year would be extremely difficult.

NHTSA Further Extends Automotive Lighting Rule Effective Date

In the Nov. 12 Federal Register, the National Highway Traffic Safety Administration (NHTSA) again postponed the effective date for a revised vehicle lighting safety standard from Dec. 1, 2009 to Dec. 1, 2012. The rule did not introduce any new substantive requirements but sought to present regulatory requirements pertaining to automobile lighting in a more logical manner; streamline the final rule; and reduce the number of third-party standards incorporated by reference. The delay is intended to permit additional time for the agency to resolve petitions for reconsideration of the 2007 final rule addressing Federal Motor Vehicle Safety Standard 108, Lamps, Reflective Devices and Associated Equipment. 

A number of petitioners, mostly automotive lighting businesses and automakers, sought a delay in the effective date due to concerns over technical amendments to the rule, and concerns that the rule imposed new requirements. NHTSA has indicated that it granted the initial delay to give the agency time to analyze the original petitions and that the second extension is to provide the additional time to analyze the issues presented by petitioners. Early compliance is still permissible under the rule.

International Negotiators Fail to Reach Agreement on Controlling HFC Use

Negotiators from 190 countries meeting in Egypt last week failed to come to a resolution as to whether to use the Montreal Protocol to control the use of hydrofluorocarbons (HFCs). The issue is important to the vehicle industry since HFC-134a is used as a refrigerant in most vehicle air conditioners and in other automotive aerosol-related products.   

While it appears that there is strong support by many countries including the U.S. for reducing use of HFCs, there is disagreement among participating countries as to whether it should be accomplished under the Montreal Protocol, which was primarily intended to reduce use of ozone depleting substances, or the Koyoto Protocol, which is directed at addressing global warming issues. China, India, Jordan and many other developing countries, argued against controls on HFCs pointing to the absence of good substitutes. However, scientists argue that if HFCs become the replacement chemical of choice for HCFCs, they could contribute as much as 45 percent of carbon dioxide emissions by 2050. The issue has now been pushed to the upcoming climate change talks that will take place in Copenhagen next month. 

NHTSA Issues Clarifications on Heavy Duty Truck Braking Rule

The National Highway Traffic Safety Administration (NHTSA) has issued a final rule responding to eight petitions for reconsideration that were filed by various industry groups regarding the agency July 27, 2009 final rule that sought to improve stopping distance performance for heavy duty tractor trailer trucks. The rule had reduced the maximum allowable stopping distance from 355 feet to 250 feet for the vast majority of heavy truck tractors. For a small minority of the heaviest tractors, the maximum allowable stopping distance was reduced from 355 feet to 310 feet. 

The NHTSA final rule addresses three main issues raised by petitioners: 

• Admitting that they had omitted a compliance date for one type of truck, the final rule announces that the compliance date for four-axle tractors with a less than or equal to 59,600 gross vehicle weight rating (GVWR) would be required to meet the new braking rule by Aug. 1, 2013.  
• NHTSA clarified the definition of typical three-axle tractor that would be subject to the two-year lead time. Under the final rule, only three-axle tractors with a front axle less than or equal to 14,600 pounds gross axle weight rating (GAWR), and a combined GAWR for the rear two axles less than or equal to 45,000 pounds, would be subject to the two-year compliance deadline. Those specialty trucks with heavier axles will have the longer lead time of four years to meet the new stopping requirements.  
• NHTSA further decided to remove the fuel tank fill specifications from the testing requirements due to the fact that the agency had not raised the issue during the initial proposed rule. 

The only issue raised as part of petitions for reconsideration that is not addressed in the final rule is stopping distance requirements at reduced speeds. The agency states in the rulemaking that it is “closely examining the petition and working to formulate a comprehensive response.” 

A copy of the final rule can be found at www.nhtsa.gov/staticfiles/DOT/NHTSA/Rulemaking/Rules/Associated%20Files/121_Stopping_Distance_FR.pdf.

China to Look into U.S. Auto Subsidies, Imports

Just weeks after a meeting between U.S. cabinet officials and Chinese officials to discuss trade issues, China has formally launched antidumping investigations into U.S. auto imports into China, targeting certain subsidies by the U.S. government to the auto industry. Responding to complaints lodged by the China Association of Automobile Manufacturers regarding 34 U.S. government subsidies to the U.S. auto industry, the Chinese government indicated that they would be investigating 21 of the incidences. Specifically, the investigation will focus on sport utility vehicles and sedans with engine capacity of two liters or more.

The investigation is the latest in a prolonged series of trade-related disputes between the two countries. The U.S. has previously imposed duties on some Chinese steel products and tire imports. China is considering investigations into U.S. auto parts and poultry. The latest investigation was announced Nov. 6, just a little over a week before President Obama’s trip to China.

Japanese Proposing to Make Hybrids Noisier

The Japanese Ministry of Land, Infrastructure and Transport is seeking public comments on a proposal policy that would require hybrid and electric vehicles to be equipped with a noisemaking device to improve the safety of pedestrians. The policy would require that when vehicles are running at speeds less than 20 kilometers per hour that they activate a beeping noise that is similar to the sound of the engine. The policy would not allow the sound to be musical or a chime and would permit the driver to temporarily disable the beeping sound.

The National Highway Traffic Safety Administration (NHTSA) is also studying the issue. A recent study performed by NHTSA found that hybrids have a higher incidence rate of pedestrian and bicyclist crashes than regular internal combustion engines in some cases. However, no formal action on this issue by NHTSA has been announced.