| | | | |  | | By Kayla Guo and Alex Daugherty | Presented by Delta Air Lines | | | | — President Joe Biden's FAA nominee withdraws after bipartisan Senate opposition. — The anticipated Treasury guidance on EV tax credits won’t include Europe. But ongoing trade talks could change that. — Sen. Joe Manchin and a major U.S. battery manufacturer are pushing Treasury to change its interpretation of IRA domestic content provisions. IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. I’m your host, Kayla Guo. Send tips, thoughts, song lyrics and recipes you like to kguo@politico.com. Find us on Twitter @kaylaguo_, @alextdaugherty and @TSnyderDC. “If you don't think Paris was made for love / Give Paris one more chance / Well now I'm calling it arrogant, calling it cruel / (Give Paris one more chance).”
| | | | A message from Delta Air Lines: At Delta Air Lines, our 90,000 people fuel our success, and our industry-leading profit sharing payments celebrate their achievement. Learn more at Delta | Taking Action | | | | | | WASHINGTON OUT: Phil Washington took himself out of consideration to lead the FAA on Saturday night, Alex reports, the end of a nine-month confirmation battle and a blow to Democrats who adamantly pushed for him amid a spate of near-misses at runways across the country that drew additional scrutiny to aviation safety. The withdrawn nomination came days after the Senate Commerce Committee abruptly pulled a committee vote to advance the nomination to the Senate floor. NOT JUST REPUBLICANS: The delayed committee vote was the final straw for Washington's nomination as two senators who caucus with Democrats,Jon Tester (D-Mont.) and Kyrsten Sinema (I-Ariz.), were undecided on Washington. Senate Democrats could not afford any defections within the Commerce Committee if all Republicans were unified in their opposition. Republicans, led by Commerce Committee Ranking Member Ted Cruz(R-Texas), were adamant that Washington, who has served as CEO of Denver International Airport since 2021, did not have enough aviation experience for the job. NEXT IN LINE? Cruz, who called on the White House to pick a new nominee "who has an extensive aviation background, can earn widespread bipartisan support in the Senate, and will keep the flying public safe," has backed acting FAA Administrator Billy Nolen to take over on a permanent basis. Nolen, a former pilot, backed Washington's nomination. A White House official on Sunday said "we will move expeditiously to nominate a new candidate" but did not offer up any potential replacements.
| | | EV GUIDANCE SCOOP: The long-awaited Treasury guidance that will detail how the up-to-$7,500 EV consumer tax credit will work is expected to come out this week, and our Zack Colman got a big scoop on what it's going to mean for our European partners. — The proposal won’t offer tax breaks for EVs containing minerals from Europe. But ongoing talks between the U.S. and EU could change that, if an agreement can be reached allowing vehicles that include European minerals to qualify. — If the two sides can reach a trade deal in the next few weeks, that would allow European companies to share in billions of dollars in U.S. tax incentives — a move that could help ease a major source of transatlantic friction. And letting more types of vehicles qualify for the tax breaks could also meet President Joe Biden’s promise to consumers to help make electric vehicles more affordable. — But not everyone would be happy about that sort of deal. Keeping the door open to EU suppliers could anger some domestic carmakers, as well as U.S. mining companies and battery manufacturers that say the climate law’s “Made in America” provisions are crucial for creating a domestic clean energy supply chain that can help wean the U.S. off battery imports from China. — And the Biden administration would also have to navigate a potential objector in Sen. Joe Manchin (D-W.Va.), who has lambasted Treasury’s past handling of the electric vehicle incentives and accused it of undermining the IRA’s domestic content requirements. But Manchin in remarks last week appeared open to extending the vehicle credit to European minerals, telling reporters, “I don't have a problem with EU — our allies, I have no problem with that.”
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| | | MANCHIN STILL PUSHING: That doesn't mean the West Virginian's all good with the administration's implementation of the climate law. Manchin and a major U.S. battery manufacturer, James Bikales reports, are making an eleventh-hour push to persuade Treasury to reverse its interpretation of IRA domestic content provisions that could boost foreign components used in electric vehicles that qualify for federal incentives. — Treasury's interpretation could determine whether entire factories and thousands of jobs end up in the U.S. or other countries, according to Nevada-based battery manufacturer Redwood Materials. But the Biden administration has indicated it will side with automakers and EV advocates, who argue that Redwood’s interpretation would choke supply of EVs when consumer demand is soaring. CANADIAN DEALMAKING: On this side of the pond, Biden and Canadian Prime Minister Justin Trudeau pledged a joint effort Friday to develop critical mineral resources used in electric vehicles and other clean technology products, Doug Palmer reports. The leaders, in a joint statement, announced the creation of a new high-level Energy Transformation Task Force to accelerate cooperation on strengthening renewable energy and electric vehicle supply chains, as well as critical minerals and rare earths and "other areas that advance our collective energy security." — The Biden administration already announced last year that it would provide $250 million for U.S. and Canadian companies to mine and process critical minerals for EV and stationary storage batteries, a move that Biden said Friday would make U.S. and Canadian supply chains "the envy of the world." Awards to U.S. and Canadian companies will be announced this spring, the joint statement said. — Canada and the United States will also work to harmonize charging standards and develop cross-border alternative fuel corridors. And the countries will facilitate investment to promote secure and resilient semiconductor supply chains, the joint statement said.
| | | MT EXCLUSIVE: At last week’s Senate Appropriations hearing on DOT’s fiscal 2024 budget request, Sen. Cindy Hyde-Smith (R-Miss.) said that initial participation in the Safe Driver Apprenticeship Pilot Program is “alarmingly underwhelming,” suggesting that FMCSA’s program intended to test long-haul trucking for those who are under 21 is underused. Just four drivers are enrolled and a few dozen carriers approved since last summer, when the program is supposed to support up to 3,000 apprentices and 1,000 carriers. — On Sunday, Cruz and House Transportation Chair Sam Graves (R-Mo.), along with a bicameral group of 30 Republicans, sent FMCSA Administrator Robin Hutcheson a letter arguing that participation is being deterred by undue requirements the agency is imposing, which weren’t outlined in the 2021 infrastructure law. They highlight two primary barriers: the requirement that carriers must also participate in the Labor Department’s Registered Apprenticeship Program, and the requirement that carriers must implement certain technologies, such as inward-facing cameras, that the infrastructure law does not mandate. — At the hearing, Secretary Pete Buttigieg said DOT would also like to see more participation in the program and laid out steps the department is taking to boost participation, but he defended the requirements. “Any requirement that is in the program is for the purpose of safety, and safety will always be our first priority,” he said. “But we are very interested in getting the level of participation that will get us good data to see if we can continue in this direction without compromising safety.” NEW GRAPHIC DROP: Don’t miss a new Datapoint laying out this Congress’ Senate Commerce Committee and its members, subcommittee heads and party breakdown. Check it out here.
| | | | A message from Delta Air Lines:   | | | | | | TURBULENCE?: The NTSB on Friday issued a preliminary factual report on a Bombardier Challenger 300 flight earlier this month, during which a former State Department official was fatally injured while flying to visit colleges for her daughter. Initial reports suggested the woman died due to turbulence, which is not typically fatal. — In the report released Friday, the NTSB suggested that the “in flight event” that caused her fatal injuries might not have been turbulence, but rather a “rapid pitch event,” which the NTSB said sent the plane into a steep climb, followed by a rapid descent and then another steep climb, during which the plane recorded pulling 4 Gs (and almost a negative 3-G fall). The agency said that the plane initially aborted its takeoff due to an engine issue, but that neither pilot reported “turbulence” either before or after the problem in flight. LATEST ON FAA BILL: Both the House and Senate are continuing to plow through their hearings on the FAA bill as leaders in both chambers aim to have their respective bills passed this summer. Two more hearings are on the agenda for this week: a House hearing set for Thursday on “new entrants and developing technologies” in aviation, with witnesses including the CEOs of Wing, BETA Technologies and Joby Aviation. Senate Commerce also announced its witness list for Wednesday’s FAA hearing on next-generation aviation.
| | | HEARING ON THE WATER: The House Coast Guard and Maritime Transportation Subcommittee will hold a hearing Tuesday on supply chain issues, with a focus on the Federal Maritime Commission’s implementation of the Ocean Shipping Reform Act and MARAD’s handling of the Port Infrastructure Development Program. Witnesses will include representatives for the World Shipping Council, Ports America, American Cotton Shippers Association and the Port of Long Beach, Calif.
| | | INFRASTRUCTURE OVERSIGHT: The Highways and Transit Subcommittee also has a hearing — its first of the year — slated for Tuesday on oversight of the infrastructure bill’s implementation. The witness panel features representatives for AASHTO, NSSGA, the Associated Builders and Contractors, and the American Road and Transportation Builders Association. PERMIT PERMITTING REFORM: Nearly 350 organizations, including state and local chambers of commerce, unions and trade groups, urged lawmakers in a letter to reform the federal permitting process, which they called “outdated, inefficient and unpredictable,” and “the single biggest obstacle to building the infrastructure of the future.” The letter calls on Congress to modernize the process with a focus on predictability, efficiency, transparency and stakeholder input. Signees include A4A, AAPA, ATA and the U.S. Chamber of Commerce.
| | | | GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat. | | | | | | | | Norfolk Southern tapped Izzy Klein, a former comms staffer for Senate Majority Leader Chuck Schumer, and Matt Johnson, Sen. John Cornyn’s (R-Texas) former chief counsel, to lobby on rail and surface transportation issues. Klein/Johnson Group’s Kate Lynch, Ian Rayder and Norm Lent will also lobby on the account. (POLITICO Influence)
| | | — “We should regulate SUVs out of existence.” Financial Times. — ”Ford's BlueOval City set to produce 500,000 electric pickups a year.” Automotive News. — “City Limits: Should public transit be free?” Vox. — ”The planet can do better than the electric car.” Slate. | | | | A message from Delta Air Lines: At Delta Air Lines, our 90,000 people are our most worthy investment. That’s why we are proud to be ranked No. 6 on Forbes’ list of World’s Best Employers. Taking care of our people empowers them to take care of you. It’s why we have a long-held philosophy of sharing our success with the people who make it possible. Since 2007, Delta has rewarded our front-line employees with industry-leading profit-sharing payments: more than $9.2 billion since 2010. Learn more at Delta | Taking Action | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
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