January 14, 2002

INDUSTRY DEVELOPING STRATEGY TO PASS TANK BILL

SIGMA met with other industry associations last week to discuss S. 1850, the bill introduced by Sen. Chafee (R-RI) in December dealing with tank issues. Other groups involved in the meeting included API, PMAA, NATSO, NACS, and OFA (the Oxygenated Fuels Association, which represents methanol and MTBE interests).

It turns out that all of the groups were generally favorable about the bill, although individual groups had minor concerns about specific aspects. PMAA had some concern about a provision requiring tank inspections at least once every two years. SIGMA expressed our concern that state trust funds should not be limited in their use of federal LUST Trust Fund money for cleanups to cases where the tank owner was in “financial distress”; we feel it would be more efficient and clear to allow the funds to be used for any cleanups, as the state funds were designed to do in the first place.

We think everyone agreed, though, that these individual concerns should not get in the way of passage of the legislation. All groups committed to pressing for action in the Senate at the earliest possible date, and specific assignments were made for pursuing that goal. In addition, plans were laid out to begin developing a strategy for action in the House as well. SIGMA members may be called on in the near future to help in this effort.

CALL TO ACTION ON TAXES!!!

CASETE, the Coalition Against Sales and Excise Tax Evasion of which SIGMA is a founding member, is once again swinging into action. We will be seeking to add co-sponsors to H.R. 2726, a bill introduced last summer to address the issue of tribal tax evasion. We need to add a significant number of co-sponsors to ensure that the bill will be brought up for action in this Congress, and much time was lost last fall as the nation focused on the Sept. 11 crisis.

We need your help to accomplish this. We need you to send letters to Congressmen who represent states in which you do business, asking them to co-sponsor the legislation. Don’t underestimate the importance of your letters – Congress does act when there is a groundswell of public support; they don’t if there isn’t. It’s that simple. Here’s how to do it:

Open the attached “draft letter” (if you get Weekly Report by e-mail. If you get it by fax, a downloadable copy will soon be on our website, here, or you may need to re-key it in from the attached.)

Edit the letter to be more specific to your company.

Go through the SIGMA Membership Directory, starting on page 264, and address the letter to EVERY Representative in EVERY state in which you have outlets.

Send a copy of your letters to Greg Scott, so our lobbyists can follow up. E-mail is fine, to Gscott@colliershannon.com. Or fax them to 202-342-8451. Thank you!

LEGISLATIVE COMMITTEE

SIGMA’s Legislative Committee meets this Friday in Denver, during our Winter Leadership Meeting. The meeting is open to all, and there is no registration fee. Issues that will be discussed at the meeting, with possible recommendations to the Board on policy or positions, include:

Federal fuels legislation, including bills to ban MTBE and mandate the use of ethanol.

National Energy Policy, and the prospects for action.

EPA’s proposal to ease the transition from winter to summer gasoline, and SIGMA’s position on it.

EPA’s “Boutique Fuels” White Paper, and SIGMA’s coming comments on it.

Federal initiatives on national personal identification cards (which might have applicability to age-restricted products).

A variety of issues involving trucks, including: background checks for drivers, DOT’s proposed rule on Hazmat loading and unloading, and NTSB’s recommendation on motor fuel deliveries and overfill protection.

Impact of terrorism attacks on commercial insurance, and federal legislation dealing with the problem.

A wide range of other issues, including taxes at tribal outlets and “duty-free” shops, VISA/MasterCard litigation, diesel sulfur litigation, enhanced vapor recovery, federal minimum wage, oil company mergers, commercialized rest areas, and below cost selling.

You should be there, so your voice is heard!

ENERGY BILL TO MOVE?

Staff of the Senate Energy Committee expect the Energy Bill to come up for action on the Senate floor early in this year’s session, right after the farm bill. That’s what they told an audience at NPRA in a meeting SIGMA attended. It’s not clear what vehicle will be used, since nothing has passed out of a Senate committee. It is also unclear if that vehicle, whatever it is, will include a tax “title” which would allow for amendments pertaining to energy taxes. We are proceeding on the assumption that it will have such a provision, and are pushing for inclusion of the small refinery tax incentives (for environmental upgrades) contained in the House version of energy legislation which has already passed. While Congress is out of session (until Jan. 23), SIGMA is also lobbying members of the applicable committees on all of the other energy proposals that have been floating around – both those we support, and those we oppose.

STATE ISSUES

In Maryland, an environmental agency task force is recommending that the state either reduce or ban MTBE in gasoline. The task force also says Maryland needs to do a better job of detecting MTBE contamination in groundwater.

California’s South Coast Air Quality Management District (SCAQMD) issued a new rule on Dec. 21 requiring doming of all major aboveground fuel storage tanks at refineries and tank farms throughout its territory. To the best of our knowledge, this is the first locality to mandate doming (as we understand it, a second roof over the floating roof inside most tanks). SCAQMD’s new rules are phased in over 7 years, and include other equipment upgrades besides doming.

FUEL CELL VEHICLES

Fuel cell vehicles took a couple of large steps closer to reality recently. Early this month, GM unveiled its “Autonomy” fuel cell car, which amounts to a chassis and housing for the fuel cell under the body and seats of the vehicle, with a variety of body styles that could be attached. Last week, the Bush administration shifted funds from a program aimed at producing 80-mpg conventional vehicles (most likely using clean diesel) to a program that will focus on spurring the development and growth of fuel cell vehicles and the hydrogen refueling infrastructure they will require. Although hydrocarbons could be a source of hydrogen, they aren’t the only option.

OTHER FUEL NEWS

Although the Bush Administration continues to review the “New Source Review” (NSR) rule for refineries, EPA is enforcing it. EPA issued notices of violations against four refineries in December . . .

The 1997 rule from IRS requiring terminals that offer clear (taxed) kerosene or diesel fuel to also offer dyed (untaxed) versions of the same fuel has taken effect, at least temporarily. Action had been postponed from year to year by Congress, but the bill which would have contained another postponement didn’t get acted on before Congress adjourned in December . . .

DISABILITY RULES

The Supreme Court has limited the ability of workers to prove they are “disabled” and entitled to accommodation from their employers. The court held that having an impairment which limits ones ability to perform one specific task does not rise to the level of “disability”; rather, a disability is something that limits ones ability to perform tasks central to most people’s daily lives.