Flagging today's Inside Radio article that scores the cost to the government of implementing the "AM for Every Vehicle Act" at $1 million between 2024-2028.
-------------------------------------------------
Inside Radio
Federal Number Crunchers Conclude There's Small Price To Keep AM Radio In Vehicles
October 12, 2023
In a federal budget that tops $6 trillion, a potential life-saving bill for AM radio would hardly make a ripple in the vast sea of spending. The Congressional Budget Office has examined the proposed AM Radio for Every Vehicle Act (S. 1669) that would require automakers to keep AM in their dashboards, concluding it will cost a total of $1 million between 2024 and 2028 for it to be implemented.
If passed, the bill would direct the Department of Transportation to issue a rule requiring that AM broadcast stations be accessible in all passenger motor vehicles manufactured in, imported into, or shipped within the U.S. The Government Accountability Office would also be required to study whether alternative communication systems could fully replicate the reach and effectiveness of AM radio for alerting the public during emergencies.
The nonpartisan Congressional Budget Office says that the $1 million needed to cover those costs would easily come out of the budgets that Congress is already providing to DOT and GAO. It also points out that the DOT would be allowed to assess civil penalties on manufacturers that fail to comply with the new rule to offset some of those costs. "CBO estimates that any additional revenues collected would total less than $500,000 over the 2024-2033 period because the number of violations would probably be small," says its report to lawmakers.
The congressional analysis agrees with auto industry analysis that the potential AM requirement would primarily affect manufacturers of electric vehicles who have removed, or announced plans to remove, standard AM radio equipment citing purported interference issues. CBO says based on current sales trends, it expects the proposed dashboard requirement would require manufacturers to update media equipment and infotainment software in about 2.5 to 3 million EVs per year. But it shoots down any complaints about a high-priced government mandate that carmakers may float. "Because the unit costs of those updates are small, CBO estimates the total cost of the mandate would be several millions of dollars each year the requirement is in effect," it says. CBO does not give a specific estimate for that costs but says it would be below the $198 million cap put on bills for issuing private-sector mandates.
The so-called scoring of the bill could help clear the way for Senate Majority Leader Chuck Schumer (D-NY) to bring the AM Radio for Every Vehicle Act to the floor for a vote. The bill was passed out of committee in July, and its list of supporters has grown to 34 senators with the issue cutting across political lines.
The House version of the bill (H.R.3413) also remains pending, with bipartisan support also growing with a total of 165 supporters. That includes the additions so far this month of Reps. Mike Ezell (R-MS), Chrissy Houlahan (D-PA), Chris Pappas (D-NH), and Earl Blumenauer (D-OR).
No votes have been taken in the House, but during a hearing on the bill in June, there was strong support for keeping AM radio in vehicles, although a few lawmakers expressed some concerns about putting a mandate on carmakers.
The challenge for the radio industry remains the same as it has been for the past few months – getting the attention of Congress. Not only has the House been shaken by its battle over who should be speaker, but there is also expected to be debates on aid packages to Israel and Ukraine while the temporary measure keeping the federal government open expires on Nov. 17.
Even without any AM-radio focused bill becoming law, the attention Congress has put on radio during the past several months is already making a difference. Faced with pressure from Washington and an uproar from the radio industry over plans to remove AM radio from its cars and trucks, Ford Motor Co. reversed course in May and said that it would keep AM radio in its new vehicles.
Other brands, including General Motors, BMW, Mazda, Rivian, Volkswagen, and Volvo have also shown some commitment to AM. But other brands are sticking with plans to focus on FM and streaming and digital capabilities in their dashboards, especially electric vehicle models.
Source: https://www.insideradio.com/free/federal-number-crunchers-conclude-there-s-small-price-to-keep-am-radio-in-vehicles/article_6a2c7d6a-68c9-11ee-82d9-c7b284be4d65.html
------------------------------
Thad Huguley
Government Affairs Director
IAEM
Falls Church VA
(615) 870-9316
------------------------------
Original Message:
Sent: 05-26-2023 09:50
From: Thad Huguley
Subject: AM Radio in Every Vehicle Act
Earlier this week, I met with the National Association of Broadcasters about recently introduced legislation that would require AM Radio in every manufactured vehicle. The legislation was introduced in the wake of reports that Ford was planning to discontinue broadcast AM radio receivers from current and future vehicles. Since the National Public Warning System hinges on the use of AM radio, I recommend that IAEM endorse "AM Radio in Every Vehicle Act", which was introduced in the Senate last week by Senators Markey and Cruz (S. 1669). Reps. Gottheimer and Kean introduced an identical companion bill in the House (HR 3413). The House bill has already attracted 28 cosponsors.
Please find attached several relevant documents regarding the issue including…
- Feb. 26th letter of 7 former FEMA Administrators to Secretary Buttigieg warning of the public safety implications of removing AM from vehicles;
- May 15 letter signed by 102 Members of Congress to each of the automakers that had not committed to retaining AM in their vehicles (identical letters w/ questions were sent to the CEOs of Ford, Tesla, Polestar, Mazda, Rivian, Volkswagen, BMW, Mercedes-Benz, GM and Volvo). Also included a list of signers by state;
- May 23rd announcement of a hearing on this issue in early June by the House Energy & Commerce Committee's bipartisan leadership;
- National Association of Broadcasters talking points (helpful stats)
- March 10th release by Senator Markey with links to letters to and responses of OEMS (that attachment includes links to all the letters and responses).
On May 23, Ford announced – via tweet of its CEO Jim Farley – that after hearing from policymakers it has decided to include AM in its 2024 models. While a very good step in the right direction, those same policymakers doubled-down on the need to pass the AM Radio in Every Vehicle Act (see attached Rep. Pallone tweet).
Thoughts?
------------------------------
Thad Huguley
Government Affairs Director
IAEM
Falls Church VA
(615) 870-9316
------------------------------