Lame-Duck Congress Still Limping Toward Adjournment

Ultimate Vendor

SIGMA Staff Changes

Save Hundreds on Meetings

Ultra-Low-Sulfur Diesel

New Rules Delayed

Court Approves Tax Gimmick

Court Approves State Bias

LUST Goals Not Met

An End Note on New Orleans

 

LAME-DUCK CONGRESS STILL LIMPING TOWARD ADJOURNMENT

Congress, by its own rules, was supposed to adopt a budget last spring . . . but failed to do so. Then it was supposed to adopt 13 separate appropriations bills (within the budget) prior to Sept. 30, when the new fiscal year began . . . but failed to meet that deadline. Even beyond the deadline, only 4 of those appropriations bills were passed, and the rest were rolled into one huge “omnibus” spending bill. But once that bill finally passed both houses of Congress – well after the election, on Nov. 20 – it was discovered that a buried provision in the bill would give certain Congressional committees the power to look at individual tax returns.

So – after passing the omnibus bill but before sending it to the President for signature, the Senate reneged on the deal and insisted the tax return provision be stripped out of it.  As a consequence, on Wednesday just before Thanksgiving, Congress had to pass (by voice vote, with almost nobody present) yet another “continuing resolution” to tide the government over until Dec. 8 – the House will be coming back into session on Dec. 6 anyway to consider Intelligence Reform legislation, and will take up the tax provision at that time. Also in that Dec. 6 session, more organizational plans for the next Congress are likely to be finalized, including many (if not all) committee assignments.

Still, with all the twists and turns, it appears that the substance of government funding for the current fiscal year has been finalized. An across-the-board spending cut of 0.8% was enacted for all agencies (except those separately approved earlier, including defense). For EPA, that means a decrease from last year’s $8.4 billion to $8.1 billion – but that is still more than the Bush Administration had requested last spring ($7.76 billion).

Finally, this omnibus bill probably puts the final nail in the coffin on attempts to block or retroactively reverse the Dept. of Labor’s revised overtime rules. Although identical “riders” to partially block those rules were included in both the Senate and House versions of DOL appropriations, the provision was stripped from the final bill.    

ULTIMATE VENDOR

As we have previously reported, the rules for claiming tax refunds on sales of gasoline to tax-exempt entities (such as cities, counties, school boards, etc.) were changed by the business tax bill that passed Congress in October. The new rules mean that gasoline refund procedures will follow those that were already in place for diesel refunds – i.e., the “ultimate vendor” rule. Because there have been so many questions about the impact of this new provision – which takes effect January 1, 2005 – our attorneys have prepared a detailed memo explaining it. That memo can be accessed by clicking here .  

SIGMA STAFF CHANGES

As part of a staff reorganization, SIGMA is pleased to announce the promotion of two staff members. Marilyn Selvitelle is SIGMA’s new #2 in charge, with the title of Vice President. Mary Alice Kutyn, formerly in charge of advertising & sponsorships, becomes Director of Meetings.    

SAVE HUNDREDS ON MEETINGS!

Tomorrow (Tuesday, Nov. 30) is the cutoff date for Early Bird registration rates for the SIGMA Spring Convention in Amelia Island – save $100 off the “Advance” rates which begin on Wednesday, and a full $200 compared to the Late Rates. (Also save $60 to $100 on spouse registrations, and up to $300 on Non-Fuel Supplier registration!) The meeting dates are May 3-6, 2004. Registration forms can be accessed by clicking here .

Even greater savings are available for the 2005 Annual Meeting in Philadelphia – but only if you attended the 2004 Annual Meeting – if you register at the “Here and Now” rates by tomorrow, Nov. 30. Meeting dates are Oct. 21-23, 2005. (Even if you don’t qualify for the Here & Now rates, you’ll save $100 on spouse registration, $124 on regular registration, and $400 on non-fuel supplier registration by acting now!)  Download a registration form from our website clicking here .    

ULTRA-LOW-SULFUR DIESEL

Copies of most of the presentations at the Ultra-Low-Sulfur Diesel Implementation Workshop held earlier this month in New Orleans are now available on the API website.  Click here to access the main page on the workshop and then click on the various links.

On a related note, California’s Air Resources Board (CARB) approved a new rule on Nov. 18 to require that state’s unique ultra-low-sulfur diesel (15 ppm, but caps on aromatics as well) for most non-ocean-going boats and ferries by 1/1/2006 (same deadline as on-road heavy-duty vehicles in the state), and on 1/1/2007 for many in-state locomotives.  

NEW RULES DELAYED

The effective date of several new rules have been delayed – some state, some national, and some by pipelines. First, the federal requirement for states to conduct fingerprint background checks for drivers with Hazmat endorsements is being delayed – again – until May 31, 2005. (Note that the Transportation Security Administration – TSA – is also proposing to require a fee somewhere between $83 and $103 for conducting those background checks.)

Also delayed: California’s compliance deadline for Stage II Vapor Recovery equipment that is compatible with Onboard Vapor Recovery Systems. That deadline will be delayed by at least one year – until April 1, 2006 – and possibly a month later, because no certified systems have yet been approved.

Finally, there have been a rash of announcements related to the shipping of, and enforcement of rules requiring, diesel lubricity. The diesel lubricity rule itself is an ASTM standard, but many states adopt ASTM standards automatically. The lubricity standard, ASTM D 975, goes into effect 1/1/2005, and was prompted by concerns over loss of lubricity with the coming of ultra-low-sulfur diesel. The problem: many pipelines are concerned that diesel with lubricity additives may contaminate jet fuel. While the additives could be added at the terminal, many terminals don’t have the equipment to inject them – and won’t have it by 1/1/05. Marketers are advised to pay close attention to shipping rules for diesel, with or without lubricity additives, and be aware that different pipelines will have different rules. Also pay attention to how states are reacting to the problem. North Carolina, for example, has granted a 9-month extension for compliance – but with paperwork requirements for shippers that must be met by the end of this year. Washington state, meanwhile, has made it clear its enforcement will be at the final point of sale, so pipelines are being less flexible than in some other parts of the country.    

COURT APPROVES TAX GIMMICK

In the ongoing saga of “duty-free” sales of gasoline at the Canadian border, the owners of a duty-free shop in Detroit have won the latest round. The Court of International Trade has ruled that there is a distinction between a tax being “imposed” and a tax being “assessed”, and that distinction means that the Customs Service could not revoke the duty-free status of the gasoline and diesel being sold by the duty-free shop. So apparently tax-free gasoline and diesel can once again be sold by this particular outlet, which is located near the Ambassador Bridge. At least for a while, until the next round is battled out. (The case is Ammex Inc. v. United States, Ct. Int’l Trade, No 02-00361, 7/20/04).    

COURT APPROVES STATE BIAS

In another case of somewhat twisted logic, a case out of Puerto Rico has brought a federal appeals court ruling that federal courts can’t review state administrative actions – even when there is evidence of bias – until all possible remedies in state courts have been exhausted. The case, Esso Standard Oil Co. v. Esteban Mujica Cotto, was decided by the First Circuit Court of Appeals on Nov. 16. The ruling apparently creates another hurdle for those who have been mistreated by a state agency.    

LUST GOALS NOT MET

EPA’s 2004 Annual Report says the agency met its goals in a number of areas – including Superfund and RCRA cleanups – but is expected to fall short of meeting its goals for cleanups of leaking underground storage tank sites. In the first half of FY2004, EPA and the states had completed only 8,000 cleanups – well short of the pace that would be needed to complete 21,000 for the full year. EPA blames MTBE contamination and increased technical complexities for making cleanup of remaining LUST sites challenging.    

AN END NOTE ON NEW ORLEANS

One of our scheduled speakers at the Annual Meeting in New Orleans earlier this month didn’t make it. Allan Meiusi of Truckstop.net couldn’t get across the border from Canada to come to our meeting. To get into the US, Customs officials demanded a copy of his college diploma, proof that his company is more than 3 years old, and more. Once he found the documents, he would have to show them to a customs official at the border Mon.-Fri. between 8 am and 4 pm. We apologize to Allan, and to our members, for not being able to bring you his expertise as planned.    

 
SIGMA Weekly Report November 29, 2004 © Copyright SIGMA, 2005