August 13, 2001

"DOG DAYS OF AUGUST" - OFFICIAL WASHINGTON SHUTS DOWN

Congress is in recess until after Labor Day, the President has left town for a 32-day vacation in Texas (also until after Labor Day), and much of the rest of "official Washington" is also in vacation mode. When Congress returns in September, they face a hefty agenda of major issues. They're ahead of normal in the annual appropriations process (which must be completed before October 1, the beginning of a new fiscal year, if special "continuing resolutions" are to be avoided). But they also will be dealing with some other very contentious issues, including a Patients Bill of Rights, energy legislation, and possibly campaign finance reform.

The slowness in August means two things to motor fuel marketers. First, there will be relatively little news in this and the next couple of editions of SIGMA Weekly Report. But more importantly, it means that most Congressmen and Senators can be reached (at least part of the time) in their home District or state offices. This presents a golden opportunity to have YOUR voice heard. Take advantage of the opportunity!  Call your Congressmen and Senators and make appointments, or at least find out their schedule of public appearances and look them up at the barbecues, fairs, or other events they are attending!

CALL TO ACTION!!!

Speaking of opportunities to influence Congress...

Legislation was introduced on Aug. 2 to address the problem of tribal evasion of sales and excise taxes on motor fuel and tobacco. H.R.2726 is endorsed by CASETE, the Coalition Against Sales and Excise Tax Evasion, of which SIGMA is a founding member. Having a bill introduced is only the first step, though. Without evidence of significant support, a bill isn't even given a hearing in committee.

Enclosed with this newsletter is a memo from our lobbyists, asking for letters supporting H.R.2726, the "Tribal-State Tax Fairness Act of 2001 ". Also attached is a sample letter. Please send letters this week to all Congressmen who represent districts where you have outlets. We can help you in 3 ways to identify your Congressmen: 1) look them up by name in the SIGMA Membership Directory (blue pages); 2) look them up by zip code of your outlets on the SIGMA website; or 3) if you have supplied us with your outlet list, we can send you a cross-referencing report showing which Congressmen represent which of your outlets. For that third option, please e-mail your request to sigma@sigma.org.

TAX DEPOSIT CHANGES

Last Wednesday, the IRS issued regulations which simplify and reduce excise tax deposits due with Form 720. The new rules are effective for calendar quarters beginning on or after October 1, 2001. The major changes are consolidating three different sets of deadlines for making deposits into a single set of deadlines; reducing the amount of required semimonthly deposits from 100% to 95% of tax liability, and increasing the "de minimus" exemption from $2,000 to $2,500. The final rule, as published, was identical to a proposed rule published in February. Look for a detailed SIGMA legal memo within the next couple of weeks.

NEW SOURCE REVIEW

An environmental issue of concern to refiners is the "New Source Review" program. Under the Clinton administration, EPA went back several years and reinterpreted normal refinery maintenance activities as refinery upgrades, then levied fines for failure to meet clean air standards for new or substantially rebuilt facilities. Under a Bush directive, EPA is looking to relax its definitions in the New Source Review program. Several refiners had already reached settlement agreements with EPA, and other agreements are pending but not yet ratified. It is unclear how EPA's revised posture might affect concluded or pending settlements.

ANNUAL MEETING IN SEATTLE

Complete information is in the mail about the SIGMA Annual Meeting in Seattle, Nov. 10-12. Note that discounted Advance Registration rates expire tomorrow (Tuesday, Aug. 14)! Act quickly! On a related note, we're pleased to welcome Tesoro as a Platinum Sponsor at the convention. Their support will help us make the convention even better than originally planned!