Surface Transportation Reauthorization - EV Provisions Summary

Title I - Federal-Aid Highways, Subtitle A: Authorizations and Programs

Sec. 1118. CMAQ Program

Page 107, Line 1 “Reduction in Minimum Spending”

CMAQ Set-Aside Structure

• EV Charging is eligible through a set-aside within CMAQ funding.
• Funding is not subject to normal CMAQ nonattainment-area restrictions.
• Funding is not dedicated exclusively to EV charging and supports all CFI-eligible projects, including EV charging and natural gas infrastructure.
• The discretionary component of CFI is eliminated.
• States receive direct control over the funding and are required to distribute funding across community and corridor project categories.

Funding Levels

• CMAQ topline funding increases relative to prior years:
  
  • FY26: approximately $2.78 billion
  • FY27: approximately $2.89 billion
  • Funding continues to increase thereafter.
• States must spend a designated percentage of CMAQ funds annually on CFI-eligible projects:
  
  • FY27: 10%
  • FY28: 9%
  • FY29: 8%
  • FY30: 7%
  • FY31: 0%
  • Annual CFI funding levels are expected to range between approximately $200–300 million annually, totally $1 billion over the course of the authorization.

Section 1121. HOV Lanes

Page 113

Extends state authority to allow low-emission and energy-efficient vehicles to use HOV lanes through 2031.

Section 1129. Registration fee on motor vehicles.

Page 174

Structure

• EV registration fee begins at $130 annually.
• Implementation begins in FY27.

Rationale and Negotiations

• Majority argument for the fee centered on:
  
  • EVs being heavier vehicles.
  • EV drivers not contributing to the Highway Trust Fund through gas taxes.
• No analytical or mathematical justification was provided for the initial $130 number.
• Democrats were previously only able to negotiate the fee down to $150; the phased-in structure was viewed as a way to reduce the immediate impact.

Revenue and Scoring

• No updated score is currently available.
• Previous estimate for a $150 EV fee and $100 PHEV fee generated approximately $4 billion over five years.
• The current proposal is expected to generate somewhat less than that amount.
• This remains the only Highway Trust Fund revenue raiser included in the package.
• Fee is expected to address only approximately 3% of the Highway Trust Fund shortfall, with a general fund transfer still anticipated.

Administration and Enforcement

• Fee collection would be administered through state DOTs.
• States are permitted to retain a portion of funds for administration.
• States that fail to remit required amounts would face a penalty equal to 125% of the amount owed, deducted from their federal highway allocation.
• This state-administered structure was reportedly a priority of the Majority and Chairman.

Political Dynamics

• There is reportedly a “Big Four” agreement governing amendments.
• If Ranking Member Larsen votes against an amendment, Democrats are expected to oppose it collectively.
• Concern exists that amendments raising the fee further could jeopardize bipartisan support.
• Leadership has reportedly signed off on the overall contours of the package and permitted continued negotiations.
• Conversations with Ways and Means on long-term solvency have occurred, but no broader HTF solution is included in the text.

Strategic Considerations Raised by Staff

• The fee remains lower than amounts Republicans had previously entertained.
• Stakeholders should continue making it clear publicly that this is not an acceptable long-term approach to EV fees.
• The Senate has not yet acted, and there is no expectation that the package will necessarily become law this year.
• Current House text should be viewed as a “high low-water mark” rather than a final product.

Section 1302. Vehicle Weight Limits

Page 224

This section amends vehicle weight limitations on the interstate system. It makes technical changes to only permit an emergency vehicle or covered heavy-duty tow or recovery vehicle to operate in excess of the weight limitation under a state permit. It provides parity for the weight of hydrogen vehicles with existing exemptions for gas and electric battery vehicles and allows for a 10 percent shift in weight variance along the axles of commercial motor vehicles carrying dry bulk goods

Title V - Motor Carriers; Subtitle E: Safe Integration of Autonomous Commercial Motor Vehicles

Section 5401. Definitions.

Page 651

This section defines terms related to autonomous commercial motor vehicles in section 31132 of Title 49, United States Code.
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Section 5402. ADS-equipped commercial motor vehicle interstate operation.

Page 654
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This section creates a safety standard for commercial motor vehicles equipped with autonomous driving systems (ADS) operating in interstate commerce. The safety standard requires manufacturers of ADS and ADS-equipped commercial motor vehicles to meet all applicable regulations, demonstrate competencies through a safety case, and adhere to reporting requirements. The section also establishes requirements for operators of ADS-equipped commercial motor vehicles.

Additionally, this section establishes a transportation rulemaking committee to make recommendations on the implementation of the safety standard established under this section, and on the applicability of parts 350 through 399 of title 49, Code of Federal Regulations, for ADS-equipped commercial motor vehicles, dynamic driving task (DDT) fallback-ready users, remote drivers, remote assistants, and driverless dispatch operators.
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Section 5403. Review and preemption of state laws and regulations.

Page 678
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This section amends section 31141(a) of title 49, United States Code, to ensure ADS-equipped commercial motor vehicles are included under the Secretary’s preemption of state law authorities.
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Section 5404. Ensuring regulatory flexibility for safety technologies.

Page 678

This section provides parity for automated driving systems technologies and equipment with other safety technologies for vehicle width exemptions.
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Section. 5405. Regulatory Interpretations.

Page 679
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Section. 5406. National Consumer Complaint Database.

Page 680
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Section. 5407. Commercial Motor Vehicle Workforce Development.

Page 680

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Title X - Railroads and Hazardous Materials; Subtitle F: Hazardous Materials Transportation

Section 10603. Hazmat safety training grants

Page 980

Amends  §5107. “Hazmat employee training requirements and grants” to include “Hazmat employee Hazardous Materials Safety Training requirements and grants” and directs grants for a number of eligible uses, including:

(F) for training or response gear needed for volunteer or career fire departments, or a combination of such fire departments, to address thermal runaway, including—

(i) equipment, including blankets to suppress thermal runaway, portable fire suppression agents, and other equipment the Secretary determines appropriate, to support the suppression of thermal runaway resulting from the transportation of lithium-ion cells or batteries.

(ii) field-deployed residual-energy assessment and cell-integrity diagnostics;

(iii) devices to monitor environmental conditions and runoff control to assist with cleanup after a thermal runaway event; and

(iv) access and containment tools, over-pack systems, and packaging for damaged, defective, or recalled lithium-ion batteries or cells.’’;

Appropriations — Grants cannot exceed $1,500,000 annually.
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Section. 10612. Requirements For Safe Transport of Lithium-Ion Batteries.

Page 1001

Requires lithium-ion cells or batteries (as defined in UN 3480) to be offered for commercial transport at a state of charge not exceeding 30 percent of the rated capacity of such cells or batteries (determined through the guidance and methodology under section 38.3.2.3 of the Manual of Tests and Criteria of the United Nations

Authorizes the transportation of lithium-ion cells or batteries at a state of charge greater than 30 percent of the rated capacity of such cells or batteries only under conditions approved by the Associate Administrator for Hazardous Materials of the Pipeline and Hazardous Materials Safety Administration in accordance with the requirements in subpart H of part 107 of title 49, Code of Regulations.
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Section 10613. Innovative Thermal Runaway Suppression Strategies

Page 1002‍

Updates 49 USC 5118: Hazardous material technical assessment, research and development, and analysis program by adding “‘(H) thermal runaway of lithium-ion cells or batteries in commercial transport units, including—

(i) the effectiveness of innovative technologies and methods to suppress such thermal runaway of lithium-ion cells or batteries in commercial transport units transported under UN 3536, including technologies and methods that do not use materials listed in table 302.4 of section 302.4 of title 40, Code of Federal Regulations, and identified by chemical abstracts service registry numbers 1763–23–1 and
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(ii) the impact of the state of charge of a battery or cell on methods to suppress such thermal runaway; and
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(iii) methods for emergency responders to verify the state of charge of a battery or cell experiencing thermal runaway as a result of a fire or crash during commercial transport.’’
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Report: Not later than 120 days after the receipt of all reports for which an agreement was entered into under subsection (b), the Secretary shall review the findings submitted by entities described in subsection (b) and submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report containing—

(1) the findings detailed in each report, including which fire suppression tools and techniques were found to be most effective at suppressing thermal runaway resulting from a lithium-ion cell or battery fire;
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(2) the impact of the state of charge of a battery on the techniques and tools studied under the agreement;
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(3) information on the best methods to verify the state of charge of a lithium-ion battery or cell after a nonconsumptive event and how that information can inform decisions about how to safely mitigate thermal runaway; and
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(4) recommendations on whether, based on such review, updated guidance or training of the Pipeline and Hazardous Materials Safety Administration is necessary
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Appropriations.—Of the amounts made available under section 5128(a) of title 49 United States Code, the Secretary shall withhold $2,000,000 for each of fiscal years 2027 through 2031 to enter into an agreement to carry out section 5118(c)(3)(H) of title 49, United States Code.

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Notes / What Does Not Appear in Bill Text:
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NEVI Program: No Reauthorization

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Low-No Program

• EV eligibility is preserved.
• However, there is reportedly no dedicated Low-No program funding structure retained.

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