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The Trump administration’s infrastructure response to Covid-19


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— The Trump administration is pushing for environmental law waivers and speeding permitting in an effort to stimulate the crushed economy.

— Senate Republicans want to pass their highway bill on the floor, but Democrats say: don’t forget about transit.

— DOT’s deputy inspector general blunted House Democrats’ worries about the watchdog office’s leadership with a new letter this week.

IT’S FRIDAY: Thanks for tuning in to POLITICO’s Morning Transportation, your daily tipsheet on all things trains, planes, automobiles and ports. Get in touch with tips, feedback or song lyric suggestions at [email protected] or @samjmintz.

“Seems the road less traveled / Show’s happiness unraveled / And you got to take a little dirt / To keep what you love / That’s what you gotta do.”

LISTEN HERE: Follow MT’s playlist on Spotify. What better way to start your day than with songs (picked by us and readers) about roads, railways, rivers and runways.

Calling all China watchers: The trajectory of the U.S.-China relationship will determine whether this century is judged a bright or a dismal one. POLITICO’s David Wertime is launching a new China newsletter that will be worth the read. Sign up.

SEIZING AN OPPORTUNITY: The Trump administration signed an executive order to advance its longtime goals of waiving environmental laws and speeding permitting for highways and other infrastructure projects, arguing that such projects will help stimulate the economy ravaged by the Covid-19 pandemic. As our energy team reports, the move comes as President Donald Trump and lawmakers from both parties have sought to hike spending on infrastructure projects.

Environmental groups are expected to challenge the order, arguing that the administration is using the public health crisis as an excuse to push through illegal environmental rollbacks. Next stop: the legal system. “As on most NEPA questions, the reality is that this question will be resolved in the courts, which means the administration may get a little flexibility but doesn’t have any easy fixes without new clear legislation,” James Coleman, an energy law professor at Southern Methodist University, told POLITICO.

THE PATH TO A SURFACE BILL: After the House Transportation Committee introduced its long-awaited surface transportation reauthorization earlier this week, the corresponding Senate committee had a hearing of its own on Thursday and members dropped some hints about their own plans.

The Environment and Public Works Committee already approved the highway portion of its bill, S. 2302 (116), on a bipartisan vote, and Chair John Barrasso (R-Wyo.) is pushing for the full Senate to take it up. Republicans argue that short-term extensions, which would be needed if a September deadline isn’t met, cause uncertainty for states and communities. “Our bill is the right medicine for our roads and our economy,” Barrasso said.

On the money question: Like in the House, the Senate committee holding the purse-strings has yet to decide how the surface transportation bill should be paid for. At the Senate EPW hearing, one witness raised what could be a powerful pandemic-era counterpoint to those Democrats (and a few Republicans) who want to increase the federal gas tax. “I don’t think you should raise taxes in 2020, and I’m not even sure about 2021,” said Douglas Holtz-Eakin, a former CBO director who now leads the American Action Forum. “This is not the right time to provide additional headwinds to the economy.”

An interesting hypothetical from Jeff Davis of the Eno Center for Transportation: If House Transportation Chair Peter DeFazio (D-Ore.) decided to fund his surface bill with an increase in the gas tax (which probably won’t happen for various reasons that Jeff explains), it would require the fee to be doubled over five years to 36.6 cents per gallon.

DEMOCRATS STILL ON THE CASE OF DOT IG: House Democrats remain frustrated about PHMSA Administrator Skip Elliott holding the second job of acting DOT inspector general. After Elliott wrote back to the House Oversight Committee defending his dual roles, three top Democratic lawmakers said in a statement that he “can’t do both,” noting that the IG’s office also has investigations open of Elliott’s boss, Secretary Elaine Chao.

But blunting their argument is another new letter from Deputy IG Mitchell Behm, a longtime career employee who was filling the IG duties before Elliot was appointed. Behm, who Democrats had asked to be named as acting IG, said he was satisfied that Elliott will serve the office well. Behm’s letter does not directly address the question of whether there’s a conflict of interest, and the IG’s press office declined comment on his behalf, but Behm’s letter said he will assume oversight of the watchdog’s work on PHMSA given Elliott’s recusal from those investigations.

Covid-19 has triggered an abundance of disparate, rapidly changing policies at the federal and state levels. Stay up-to-speed with our Covid-19 Coverage Roundup, a daily summary of top Covid-19 news and analysis from across POLITICO Pro’s policy coverage teams. We’re also sharing premium content related to Covid-19 here. To receive the roundup directly to your inbox every weekday afternoon, please sign up on your settings page.

WHOSE DATA? A battle over car data in Massachusetts could go national, as big money groups wade in, our Tanya Snyder reports. At issue: A ballot initiative that would expand a 2012 “right-to-repair” measure giving car owners and independent mechanics the right to the same diagnostic and repair information that automakers give dealers. The proposal would do the same for data that cars send wirelessly to dealers so they can warn owners, for example, of imminent parts failures, Tanya writes.

Why the industry cares: “If the ballot initiative passes, it’s almost a certainty that a 50-state solution will have to be developed,“ said Michelle Krebs, executive analyst with Cox Automotive. “The last thing the major automakers want is an unaligned patchwork of state regulations.”

YOUR AV READ OF THE DAY: A new study from the Insurance Institute for Highway Safety makes the case that self-driving vehicles could fail to eliminate most crashes — an argument that drives a stake in the heart of the biggest talking point of autonomous vehicle developers and proponents. “It’s likely that fully self-driving cars will eventually identify hazards better than people, but we found that this alone would not prevent the bulk of crashes,” said Jessica Cicchino, a co-author of the study.

Given its challenge to the promise of AVs, the study is unsurprisingly already being questioned by stakeholders. Partners for Automated Vehicle Education, a coalition including both industry and safety groups, said in a blog post that the study is based on questionable assumptions, particularly the degree to which passengers are able to alter the behaviors of AVs.

Some tension in the camp: After PAVE’s new Communications Director E.W. Niedermeyer challenged the study in a tweet, the director of the Governors Highway Safety Association (which is a PAVE member) responded: “Respectfully, I don’t think [IIHS] needs to be taught anything about technology and traffic safety.”

MAILBAG: The National Air Transportation Association released a petition to the FAA on Thursday to make an exemption issued due to Covid-19 permanent: expanding the number of pilot line checks (flights where an evaluator observes the pilot) done by employees of companies rather than the FAA itself. “The intended purpose of the line check is best fulfilled by company check pilots who have a full understanding of company procedures and culture,” NATA wrote.

MAILBAG, PART II: A coalition of agriculture groups wrote to Congress to back up the general aviation industry’s request that aviation fuel taxes be suspended for non-commercial operators. “This temporary suspension of taxes is similar to what the commercial airlines received and will assist thousands of small businesses, farms, and communities that depend on general aviation,” the letter said.

Stephen Bradford, who recently left DOT’s public affairs office, has landed on the Hill. He’s now communications director for the Senate Republican Conference, working for Barrasso, who chairs the conference.

Former Rep. John Sweeney, now a lobbyist with his own firm, was hired by General Motors, joining the ranks of a dozen lobbying firms the company employs. (h/t POLITICO Influence).

— “U.S. to revise Chinese passenger airline ban after Beijing move.” Reuters.

— “Bernie-friendly DNC panel pushes Biden to back $16T climate plan.” POLITICO.

— “Kitty Hawk abandons its Flyer project, lays off dozens.” The Verge.

— “Retailers look to boost sales, German car sales weak.” Associated Press.

— “Elon Musk calls for Amazon breakup in latest spat with Jeff Bezos.” Wall Street Journal.

DOT appropriations run out in 117 days. The FAA reauthorization expires in 1,213 days. Highway and transit policy is up for renewal in 117 days.





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