House Adds Fuel Fraud Study, Protects Ex-Im in Highway Debate

The U.S. House of Representatives today passed 363-64 a comprehensive highway reauthorization bill (H.R.22) that includes measures to renew the Export-Import (Ex-Im) Bank’s charter, as well as to seek a study on aviation fuel taxes that have been deposited into the Highway Trust Fund.

During its consideration yesterday of H.R.22, the House approved an amendment by Rep. Mike Pompeo (R-Kan.) calling on the Government Accountability Office to study the ramifications of the so-called “fuel-fraud” law requiring non-commercial jet fuel to be taxed at the highway diesel fuel rate and deposited into the Highway Trust Fund until approved aviation vendors demonstrate that the fuel was used for aviation purposes. Aviation vendors are able to seek refunds once they demonstrate that the fuel was intended for aviation, but no such refund mechanism is available for the end user.

NATA, which has strongly backed the amendment, said the law is “depriving the Airport and Airways Trust Fund of much needed funding,” and added the “archaic and overly bureaucratic refund mechanism” is seldom used.

As for Ex-Im, the Senate added a measure to H.R.22 last summer to renew the Ex-Im charter before sending the comprehensive highway reauthorization bill to the House for consideration. Yesterday House Republicans attempted to scale back the Ex-Im measure in H.R.22 through a series of measures that would restrict the bank’s activities. All 10 of those amendments were rejected. “This moves Ex-Im reauthorization and reform one step closer to reality, and sends a clear signal to the conference committee that any further changes to Ex-Im would be undermining the will of the super majority in both chambers,” said the Exporters For Ex-Im Coalition.