Election to Have Impact on Congress, Marketer Issues

SIGMA Elections

HAZMAT Shipper Rules

Diesel Lubricity

SIGMAPAC Wine Auction

SIGMA Annual Meeting

ELECTION TO HAVE IMPACT ON CONGRESS, MARKETER ISSUES

The results of the Presidential election, while important to marketers, probably mean: more of the same. That is to say, whatever changes a Kerry Administration might have brought in the areas of policy important to marketers simply won’t come about, and there are no indications that President Bush plans a different course of action in his second term from that of his first.

Results of the elections for members of the House and Senate are likely to have some impact, though, both on changes in policy and changes in personnel leading various committees. Most of the changes are the result of retirements, as opposed to the electoral defeat of incumbents. Still, the retirements set the stage for changes in party composition of both houses – but by relatively small amounts (a net 4% party turnover in the Senate, a net 1% party turnover in the House – both in favor of the Republicans.)

The only incumbent Senator defeated was Minority Leader Tom Daschle (D-ND), although Bunning (R-KY) and Murkowski (R-AK) came close to losing. However, five retiring Southern Democrats were replaced by Republicans. The Colorado Senate seat of retiring Senator Ben Nighthorse Campbell (R) went to a Democrat, as did the Illinois seat of Sen. Fitzgerald (R), for a net gain of 4 seats for the Republicans. However, Sen. Chafee (R-RI) is making noises about switching parties, which could reduce that gain by 1.

In the House, other than the defeat of several Democrats in Texas who were gerrymandered into heavily-Republican districts, the only significant upset of an incumbent appears to have been the loss by Rep. Phil Crane (R-IL), a member of the House Ways & Means Committee.

As far as personnel are concerned, here are the things to watch:

The Senate Democratic Leader post goes to Sen. Reid (D-NV), with Sen. Durbin (D-IL) moving into the second leadership slot.

Sen. Stevens (R-AK) is expected to take over as chairman of the Senate Commerce, Science, and Transportation Committee, with Sen. Inouye (D-HI) becoming ranking minority member. Sen. Gregg (R-NH) may take over the Senate Budget Committee chairmanship, although that could go to Sen. Allard (R-CO) instead. And there will be a number of changes in membership on the Senate Finance Committee, with 4 members retiring or defeated.

There is likely to be jostling for seats on a number of committees in the Senate as well, because the ratio is likely to change from 11 Republicans and 10 Democrats on most committees (or 10-9) to 11 Republicans and 9 Democrats (or 10-8).

On the House side, the major changes appear likely on the Ways and Means Committee – the tax-writing committee – because of an unusually large number of retirements and defeats of incumbents (7 departures total).

As for changes in the prospects of legislation, the one bill most affecting marketers – energy reform legislation – may be only marginally impacted by the election. The defeat of Sen. Daschle – who had pushed hard for ethanol incentives – may actually reduce the likelihood that Democrats will support an overall energy bill, and his replacement – Sen.-elect John Thune (R-SD) – is as strong a supporter of ethanol as he was. However, the election may lead to changes in what bills are able to clear the Sen. Environment & Public Works Committee, as Sen. Chafee (R-RI) frequently has voted with Democrats and now his crossing party lines won’t be enough to swing the majority away from the Republicans.

What will happen in the lame-duck Congressional session scheduled for next week (the week of Nov. 15)? The best guess is that it will deal only with appropriations issues, and will most likely do so in either a long-term “Continuing Resolution” to punt the issues to the next Congress, or as a huge Omnibus spending bill – a single bill covering many different agencies. If the latter, there is no end to the “mischief” that could be rolled into the package – a prospect that might have appeal to the departing members as well as to those continuing in office (they could blame the “old Congress”, perhaps). Nobody is predicting the Energy bill will come up in the lame duck session.    

SIGMA ELECTIONS

The national elections aren’t the only ones to be reported on this week. SIGMA elects officers and directors this weekend. SIGMA’s nominating committee, consisting of Tom Robinson (chairman), Jon Day, and Jack Pester, is pleased to present this year’s nominees for officers and directors of SIGMA, subject to election at the SIGMA Annual Meeting on Sunday, November 14, 2004 in New Orleans, Louisiana:

For one-year terms as officers:
 

President – Bill Shipley, III, Shipley Stores, LLC, York, PA

1st Vice President - Paul Reid, Reid Petroleum Corp., Lockport, NY

2nd Vice President - Carl Boyett, Boyett Petroleum, Modesto, CA

Secretary/Treasurer - Jack Pester, Pester Marketing Company, Houston, TX

Mike Ports, Ports Petroleum Co., Inc., Wooster, OH, will serve for one year as Immediate Past President

For 3-year terms as Directors:

Tom Schmidt, U. S. Oil Co., Inc., Combined Locks, WI

Grady Chronister, Chronister Oil Company, Springfield, IL

Tom Dwelle, Nella Oil Company, Auburn, CA

David Collins, Wilson Fuel Co. Ltd., Halifax, NS, Canada

In addition to these nominees, the 2004-05 Board of Directors will automatically include eight other Directors whose terms are not expiring, including Rick Calhoun, QuikTrip Corporation, Tulsa, Oklahoma. He will be filling the vacancy caused by the election of Jack Pester as Secretary/Treasurer. 

Retiring Board members include Rick Crawford, Crawford Oil, Inc., Las Vegas, NV, Jon Day, Hometown Inc., Milwaukee, WI, Kent Roberts, Save-X, USA, Inc., Roanoke, VA and Jon Stewart, Tri Star Marketing, Inc., Urbana, IL. In addition, Tom Robinson, Robinson Oil Corp., San Jose, CA will be rotating off the Board as he is no longer the Immediate Past President.    

HAZMAT SHIPPER RULES

The Dept. of Transportation’s RSPA agency published a final rule Nov. 4 regarding hazardous materials communications which will have an impact on motor fuel marketers. The rule requiring provision of an emergency phone number specifies that that phone number must connect to a phone that is staffed by an actual person – not to a beeper service or a return call service. There are a number of other provisions that are specific to petroleum shipments. The effective date for most of the final rule is Oct. 1, 2005; we’ll be providing members with a detailed legal memo in the near future.  

DIESEL LUBRICITY

ASTM has a new diesel lubricity standard, ASTM D 975, which is supposed to go into effect 1/1/2005. However, some pipelines – we know about the Kinder Morgan system for sure – are now refusing to ship diesel containing lubricity additives because of concern about contamination of aviation jet fuel which they say poses an unacceptable risk. The net effect is that, come Jan. 1, a lot of diesel may have to be additized for lubricity at the terminal – and it is unlikely that everyone can get the necessary equipment in place in time. Many state associations are urging their states – and ASTM – to delay the effective date for enforcement of the lubricity standard by one year. There are reports of some success, but California marketers are concerned their state requirement will go into effect as scheduled regardless of what ASTM does. 

SIGMAPAC WINE AUCTION

SIGMAPAC is once again going to do a wine auction during our Annual Meeting. Chairman Jack Pester is looking for members to donate a bottle of their favorite wine for the auction. For details, contact Jack at jpester@houston.rr.com, or call him at 713-666-7176, or simply bring your contribution to New Orleans and drop it off at the SIGMA registration desk! Thanks.    

SIGMA ANNUAL MEETING

It’s finally upon us! This weekend is the SIGMA Annual Meeting in New Orleans. Activities begin late Wednesday with the opening of two pre-convention SIGMA Masters programs. The main part of the convention runs from noon Friday to 2 pm Sunday. And Monday and Tuesday of next week are the dates of the vitally-important Ultra Low Sulfur Diesel Implementation Workshop. Over the course of less than a week, we have some 76.5 hours of educational sessions slated (some of it overlapping in times, obviously), together with another 32 hours of demonstrations of innovative technologies – more than any one person can possibly attend. So pick and choose wisely! The meeting is also the best place in the country to network with the top independent motor fuel marketers, fuel suppliers, and other key players in our industry. If you’re not already registered for the meeting, you’re still welcome – call the SIGMA office on Monday, or simply show up in New Orleans! Note that most of the staff will be out of the office and either in New Orleans or on their way there, from Tuesday on. 

 
SIGMA Weekly Report November 8, 2004 © Copyright SIGMA, 2005