News Briefs Off the 4/1/24 “Ticker”
- House Democrats reverse course and adopt supply and demand principles, publicly congratulate car rental industry on weathering the COVID pandemic and the supply chain challenges that followed;
- Senate Republicans agree to focus on enacting federal policies based on their current merits, not on their impact of a presidential election 8 months away;
- White House orders new ZEV presidential limousines, despite the fact that the nearest Level 3 EV charging station is 15 miles away in Arlington, VA and the vehicles will have a range of 4 miles per charge due to heavy protective armor; and,
- Former President Trump promises to not appoint any members of his immediate family, or their spouses, to be the secretary of any federal agency if he wins the 2024 presidential election.
Happy April Fools’ Day from the Editorial Staff at ACRA!
Full Expensing Bill Continues to Languish in Senate
It is disappointing to report that H.R. 7024, the federal tax package – including retroactive full expensing of personal vehicles – continues to languish in the Senate despite an overwhelming 357 – 70 vote in the House of Representatives. The good news is that Senate GOP and Democratic tax leaders and their staffs are talking – exchanging proposals to bridge the divide between the two sides. If the House-passed version of H.R. 7024 is amended in the Senate, then it has to go back to the House for another vote – an action one would expect to be fairly routine. But remember, the House GOP caucus is more fractious now than at any point in recent history and mid-term retirements have lowered their House majority to one vote!
To made matters more difficult, Congress is in recess until 4/9/24 and there is general consensus that if a tax bill in not enacted by 4/15/24 – federal tax day – Congress may not take up any tax measures until 2025. ACRA and its allies continue to press Senate GOP members to move on H.R. 7024, but time appears to be running out to reach a deal before the 4/15/24 deadline.
DOE/DOT EV Working Group Meeting
The DOE/DOT Electric Vehicle Working Group, to which ACRA President Sharky Laguana was named last month, will meet in D.C. on April 2 & 3. A primary item on the Working Group’s agenda will be editing and finalizing its first annual report to Congress. Mr. Laguana has been assigned to the Working Group’s Charging Subcommittee, where he can be instrumental in educating his fellow members on the car rental industry’s EV charging infrastructure challenges and in developing plans to consumers – renters – on EVs. If you are interested in virtually attending some or all of the Working Group’s meeting, you can register at https://driveelectric.gov/ev-working-group-meetings. In addition, there are two opportunities for public comment during the Working Group’s meeting, and that same link will allow you to sign up to make brief comments (2 – 3 minutes) to the Working Group.
Car Rental Companies As “Insurers”
In what can only be described as an odd coincidence, two state courts – in Colorado and Nevada – are wrestling with the question of whether a car or truck rental company should be classified as an “insurer” due to the fact that rental companies sell insurance products as agents for licensed and regulated insurance companies. Seems like a no-brainer – right?
But, an intermediate court in Colorado held a car rental company to be an insurer despite specific language in the state statute stating that a car rental company specifically is not an insurer. The car rental company is appealing that decision to the Colorado Supreme Court, and ACRA has hired local counsel to support that appeal through an amicus (friend of the court) brief. It is expected that the Truck Renting and Leasing Association also will file a separate amicus brief.
Coincidentally, a similar case is pending in Nevada against a truck rental company. In that case, the plaintiff arguing that providing Nevada’s “minimum financial responsibility” through self-insurance constituted providing insurance under state law lost in the lower court and has appealed to that state’s highest court. While this case is on a slower track than Colorado’s, ACRA and TRALA’s leaders are considering whether to file amicus briefs in the case in support of the truck rental company’s position that it is not an “insurer.”
ACRA State Activities
- Hawaii – The Hawaii bill ACRA has opposed actively to make car rental companies “primary” in the state is believed currently to be defeated, while the bill to raise the state’s MFR modestly looks like it will pass; ACRA had testified against both bills.
- Colorado – The president of Colorado’s Senate has proposed legislation – SB 184 – to impose a $3.00/day fee on car rentals in the state to pay for light rail projects. ACRA has retained a lobbyist in Colorado to fight the proposal, and Greg Scott, ACRA’s Government Relations Advisor, testified virtually before the Colorado Senate Transportation on 3/27/24 against the bill (ACRA Colorado Testimony) . Stopping this bill in the legislature, given the support of the governor and a large majority of the Democratic legislature, will be difficult. ACRA and its allies may consider litigation to send a signal to states considering such car rental taxes that a 2018 federal law generally prohibits such discriminatory tax. More to follow on Colorado legislative developments.
- Delaware – ACRA filed comments (ACRA DE LOU Statement) in Delaware against legislation to limit loss of use claims in that state on3/9/24.
EPA Finalizes “Tailpipe” Rule
The U.S. Environmental Protection Agency on 3/20/24 finalized the “tailpipe” emissions rule it proposed in 2023. The final tailpipe rule governs the greenhouse gas emissions for light-duty and medium-duty vehicles for Model Years 2027 through MY 2032. Contrary to some media reports, the final rule is not an electric vehicle mandate by MY 2032 – but it clearly puts the U.S. light- and medium-duty vehicle markets on a path towards “zero emission vehicles” in the coming decade.
The first major point from the final rule is what vehicles are covered by the final rule: (1) light-duty vehicles (generally 14,000 pounds GVWR or lighter intended for passenger use); and, (2) medium-duty vehicles (Class 2b and 3) (generally 8,501 – 14,000 pounds GVWR intended primarily to carry freight). Heavy duty vehicles (those over 14,000 pounds GVWR) are not covered by the final rule.
The final rule sets a standard for GHG emissions for fleet-wide production of light- and medium-duty vehicles for each vehicle manufacturer with respect to vehicles sales in the United States for a Model Year (EPA GHG Table). The MY 2032 standard is an approximately 50% reduction from the current MY 2024 actual emissions calculations.
Vehicle manufacturers are permitted to meet these standards through a variety of vehicle technologies, including: (1) internal combustion engines (ICE); (2) gasoline/electric hybrids (HEV); plug-in gasoline/electric hybrids (PHEV); and battery electric vehicles (BEV). These engines can be fueled by a wide range of fuels, including petroleum, electricity, propane, CNG and hydrogen (and others – the final rule has a performance standard, not a technology mandate) – the key is that the GHG emission targets are met by the manufacturer’s U.S. fleet.
The final rule provides examples of how these different engine systems can be combined by manufacturers to meet the GHG standards (EPA Engine Table). The important takeaway is the conclusion that all vehicles need not be BEVs in MY 2032 to comply with the GHG standards. Yes, there will be a massive shift away from ICE vehicles in the next 7 – 8 years to meet the rule’s standards if they remain in place (through potential judicial review or revision by a future administration). But the final rule is not a BEV mandate by MY 2032.
ACRA Plenary Session at 2024 International Car Rental Show
The 2024 International Car Rental Show starts in two weeks in Las Vegas and it is not too late to register for the show and attend! ACRA has announced that its plenary session at the 2024 International Car Rental Show will be entitled “A Look Forward, A Look Back” and will feature ACRA President Sharky Laguana of Bandago and Stephanie Valdez Streaty, Director of Industry Insights, Cox Automotive.
Mark Your Calendars – 2024 ACRA D.C. Car Rental Conference – September 15 – 18, 2024
Building on the tremendous success of the 2023 ACRA D.C. Car Rental Conference –overwhelming positive feedback on operational and political education, record attendance, record fundraising for ACRAPAC, and dozens of meetings with legislators and their staff on key ACRA federal policy issues – the ACRA Board of Directors has set the 2024 ACRA D.C. Car Rental Conference for Sunday through Wednesday, September 15 – 18, 2024. Mark your calendars! ACRA will return again to the Westin Gateway Arlington and will focus a day on operational education session from expert speakers, a day on political education from key stakeholders and legislators, and a day of “citizen lobbying” on Capitol Hill to build relationships and advance the interests of the car rental industry as a whole.
Stay tuned for additional details. Remember, the 2023 and 2024 ACRA D.C. Conferences sold out and the hotel ran out of rooms for attendees. So, when the 2024 registration and hotel information is published, jump on it so be sure you are not excluded from the conference next year!
ACRAPAC
ACRAPAC had a record year in 2023, with ACRA member company PACs and executives contributing over $40,000 to the PAC. The PAC entered 2023 with a bank balance of over $20,000 – positioning the PAC to make impactful contributions during the 2024 federal election year. If ACRA member company executives will support ACRAPAC in 2024 at the same level as last year, it will be a true milestone for ACRAPAC. ACRAPAC events are already being planned for the ICRS in Vegas in April and the ACRA D.C. Car Rental Conference in September, so there will be plenty of opportunities for folks to support the PAC. If you have questions about ACRAPAC, please contact Sharon or Greg.
ACRA Membership Activity
New Regular/Operator Members
- Advance Rent A Car, Orlando, FL
- Elite Tois, LLC, Atlanta, GA
- Excellent Rent A Car, Van Nuys, CA
- Yellowstone Ventures of Montana, Inc., Bozeman, MT
New Associate/Supplier Members
- Coastr, Palo Alto, CA
- Eccocar, Pontevedra, Spain
Renewed Associate/Supplier Members
- Dent Wiard
- Rate Driven Solutions
- RentalMatics
- RentlySoft
- Spiffy
Renewed Regular/Operator Members
- ACO Rent A Car
- Alaska Eagle Eye-Car & Truck Rentals
- AmeriMex Auto of GA Inc.
- Avis Alaska Rent A Car, Inc.
- Avis Budget Group
- Avis Rent A Car Fargo
- Cali Carshare
- Chicago Van Rentals
- Dollar Rent A Car/Thrifty Car Rental, St. Thomas
- Hart Leasing, Inc. Avis Licensee – IA
- Hertz Corporation
- Hoglund Transportation
- Indy Van Rental
- Landbird
- Lucky Owl, Inc.
- Montgomery Aviation AvisBudget Licensee
- Premier Connections
- Quest Car Rental
- Renty Car Rental
- Rocky Mountain Transportations, Inc., dba Hertz
- Sixt Rent A Car, LLC
- SoMIA Rent A Car
- Super Deal Auto Group
- Zoom Car Rental