May 2018 ITPA Bulletin

The ITPA Bulletin is to update members on

association and industry news.

The news of the first quarter of this year, legislatively and regulatively, has been full of news that is affecting our industry and the truck industry as a whole.  

Glider Kits and EPA Repeal. One truck issue within the EPA that's been looming this year and that I covered in the last newsletter is the removal of "glider kits" from the Phase 2 greenhouse gas emissions rules and limitations. Recently, the effort hit a roadblock when the credibility of a key study used to support the repeal was attacked and discredited. The Fitzgerald Glider Kit company funded a study conducted by Tennessee Technical University (TTU) to show the potential impacts if Glider Kits were removed from Phase 2 GHG rules, and was one of the studies introduced to EPA director Scott Pruitt before he decided to pursue the repeal. Around the time of the release of the study, Fitzgerald announced it would be building a new research center for TTU. The TTU study claimed that glider kits would not have a substantial environmental impact, and that they would actually pollute less than the newer, modern trucks. The Environmental Defense Fund argued the study lacked credibility because of the Fitzgerald/Tennessee Tech relationship, and the study didn’t undergo peer review. TTU leadership eventually came out against the conduct of the study as well. Pruitt has not announced whether he is going to repeal or not, despite a mid-March letter from a couple Senators demanding he immediately withdraw his consideration on the subject.

Association Health Plans. Qualifying associations may soon benefit from what is currently only applied to "large groups" under the Affordable Care Act. In 2017, President Trump signed an executive order called "Promoting Healthcare Choice and Competition Across the United States." A result of that order is the expansion of access to Association Health Plans. One proposed rule in implementing the order (not yet final) essentially treats a qualifying association as an "employer" by redefining the current definition of "employer" in ERISA section 3(5). The redefinition would broaden access of unrelated employers, including sole proprietors and self-employed individuals, to Association Health Plans. This is a big move in the way of creating more healthy competition of insurance companies and getting more small businesses access to coverage.

Tire Legislation - State Level. Each year, states all around the country are fighting used tire legislation of one type or another. Many bills brought forth seek to change the criterion that define a sellable "used tire" and a "waste tire", who is liable for selling a bad used tire, storage requirements of tires, etc. Some of these bills could potentially be very burdensome and costly for those that sell and store used tires, including many if not all of our salvage yard members. Arizona state recently voted down a bill addressing "unsafe tires" that used old language prohibiting not only the installation, but the sale of these tires. Other states continue to fight similar bills with differing results and language, including Ohio, Texas, New Jersey, Indiana and Tennessee.  

Utilization of Recycled Parts in Repairs. Multiple states are fighting legislation that aim to limit the use of used/recycled OE parts and/or aftermarket parts on insurance repair work. Illinois, for example, has HB4926, which requires the use of OEM specs and proposes to amend the Illinois "Automotive Collision Repair Act" by prohibiting the use of non-OE aftermarket crash parts in a repair estimate unless the insurance company allows it, and it. This bill in Illinois is in committee. Hawaii and West Virginia are facing similar crucial bills.