December 16, 2002

HOUSE COMMITTEE CHAIRMAN PUSHING GAS TAX INCREASE

Rep. Don Young (R-AK), chairman of the House Transportation and Infrastructure committee, has begun floating the idea of a multi-year increase in the gasoline tax. The highway program needs to be re-authorized next year, and the Federal Highway Administration estimates it will be something like $60 billion short of needs for just maintaining current highway conditions.

The plan Young is floating, and has discussed with White House Chief of Staff, is a 6-year program of 2-cent increases in the gasoline tax, raising it from its current 18.4 cents per gallon to 30.4 cents per gallon by 2009. He would also increase the tax on ethanol to match the gasoline tax rate, ending its current tax preference. There is no mention of a diesel tax increase in the reports we have seen of the plan.

Although there is a long road from a chairman’s idea to actual enactment of legislation, this is certainly a more serious proposal than if a run-of-the-mill Congressman were proposing it. Already, some groups are looking to add items from their legislative agenda to such a bill – something that SIGMA would certainly try to do if this bill looks like it is going anywhere. Already, PMAA has suggested that this legislation might be a good vehicle for enacting a federal below-cost selling law. 

HAZMAT FEES

The DOT formally announced on Dec. 9 that it intends to publish the final rule reducing hazmat transporter fees by March of next year. This would be a “final rule,” and could come sooner but not later than March. The fees are due on July 1 of each year, so it is important that the deadline be met in order to avoid another year of unnecessarily (and illegally) high fees. DOT has been dragging its feet about reducing the fee, as required by law, in hopes that Congress would change the law and let them keep the excess funds. We’re not sure this delay until March isn’t part of the same tactic. 

DIESEL WORKSHOP MATERIALS

Materials from the joint EPA-industry workshop on diesel sulfur issues are now posted on EPA’s website.  Click here to download copies of any or all of the presentations. The workshop was co-sponsored by EPA, NPRA, SIGMA, and several other marketing groups.  

TRUCK FLEET LISTINGS

The American Trucking Assn. has published its new 2003 North American Truck Fleet Directory. Go to www.TTPress.com, or call 800-282-5463 for details.  

SPCC DEADLINE & WORKSHOPS

As we reported previously, EPA plans to delay the deadline for compliance with its new Spill Prevention, Control, and Countermeasures program. That program would generally affect owners of terminals, bulk plants, and other aboveground storage tanks. In spite of the delay, however, API is moving forward with a series of workshops on compliance with the rules. Workshops are around the country in 5 different locations during the month of January. Go to http://api-ep.api.org/training/ for complete information and registration details.  

TRIBAL ISSUES

Although not directly related to our issue of excise tax evasion by some tribal interests, an op-ed piece in last Thursday’s New York Times should be interesting to retailers and may be of some help in our legislative battles on this front. William Safire takes on Indian tribal casinos in that article – and points out that only a few Native Americans are benefiting at all from these operations, with a few Indians and a lot of non-Indians cashing in big time through contracts with the tribes. SIGMA will be working on the issue of tribal tax evasion of motor fuel and tobacco excise taxes in the next Congress.