EPA Finalizes PM 2.5 Non-Attainment Areas

Senate Committees Named

Correction

SIGMA Meets DHS

Still Time to Ski

Oil Company Mergers

OMB Regulatory Report

CARB Gasoline

New Staff Members

Holiday Schedule

 

EPA FINALIZES PM 2.5 NON-ATTAINMENT AREAS

On December 17, EPA finalized its designations of non-attainment areas under its standard for particulate matter under 2.5 microns in diameter (PM 2.5). Diesel exhaust is a significant contributor to PM 2.5 pollution.

Most of the non-attainment areas are east of the Mississippi, except for 13 counties in California, and are concentrated in major metro areas. EPA’s listing of non-attainment counties is at www.epa.gov/pmdesignations/statedesig.htm . There are few changes from the preliminary list EPA published in late June which we reported in our July 5 issue.

As was the case with ozone non-attainment, states will have to take action to bring these counties into attainment. That will be a slow process. In February, EPA is to propose an implementation rule. Only then will we have a hint of what options the states will have in terms of new regulations. Will this mean the possibility of boutique diesel fuels? We don’t know yet.

After that, states will have until sometime in 2008 to prepare their State Implementation Plans (SIPs), and until April 2010 to actually come into attainment.  

SENATE COMMITTEES NAMED

Senate Republicans have now finalized their committee assignments. Democrats had already named theirs a couple of weeks ago (see story in our 12/13 issue). A list of all senators with their committee assignments is available by clicking here .

There are several changes in membership of key committees that are most important relative to marketer issues. Four freshman Republicans will join the Environment and Public Works (EPW) Committee: DeMint (R-SC), Isakson (R-GA), Thune (R-SD), and Vitter (R-LA). New Democrats include Lautenberg (D-NJ), and freshman Obama (D-IL). Issues before EPW in the new Congress will likely include provisions in the highway bill, as well as the Clear Skies initiative.

The Senate Energy and Natural Resources Committee will likely take up an overall energy bill, or at least a fuels title. Three new Republicans join that committee: Allen (R-VA), Burr (R-NC), and freshman Martinez (R-FL). New Democrats on the committee are: Corzine (D-NJ), and freshman Salazar (D-CO).

There are rumors of a shake-up on the House Energy and Commerce Committee, but House committee assignments probably won’t be known until the new Congress convenes on Jan. 4 for swearing-in. Working sessions aren’t scheduled to begin until the week of Jan. 24, following the Inauguration on Jan. 20. The State of the Union Address, normally done in January, will be delayed until early February.   

CORRECTION

In last week’s report, we slightly misstated the situation in Oregon, with respect to the oxygenate program. We reported that the Environmental Quality Commission voted to keep the state oxygenate program in place. In fact, the commission’s vote will keep it intact until 2007 and then discontinue it. Staff had recommended that it be abolished in 2005. We apologize for any confusion.   

SIGMA MEETS DHS

The Oil and Gas Specialist from the Department of Homeland Security (DHS) met with representatives from SIGMA and other associations earlier this month. The meeting was called in order for DHS to gain a perspective on issues important to marketers like bulk plant and tank truck security in the event of another terror attack. DHS considers the oil industry to be a “critical industry” but has been focused further upstream until now.   

STILL TIME TO SKI

SIGMA is still registering gasoline retailers and fuel marketers for a very exciting program! Click here to register for the Winter Management Conference. Although the SIGMA room block has expired, the Wildwood Lodge still has rooms available. You may call the Wildwood or the Silvertree hotel for more information at 1-800-525-9402.   

OIL COMPANY MERGERS

Last May, the Federal Trade Commission (FTC) came under criticism in a General Accounting Office (GAO) report, which suggested the FTC hadn’t been sufficiently aggressive in dealing with oil company mergers. The FTC has taken pains to rebut those charges. In what appears to be a continuation of that effort, the FTC will host a public conference in Washington on Jan. 14. It will feature a group of independent economic experts who will evaluate the effects of mergers and market concentration in the industry. SIGMA will attend the conference and, if the opportunity arises, make comments or ask questions.   

OMB REGULATORY REPORT

The Office of Management and Budget (OMB), which is the White House agency that oversees the entire regulatory process, issued a report to Congress last week. The report looks at the costs and benefits of economically significant regulations OMB approved in the fiscal year ending 9/30/03. It also identifies 189 regulations nominated by industry groups for regulatory review in the coming months. Included in those regulations are chemical inventory updates and possible relaxation of groundwater cleanup standards. Finally, in what was a surprise to us, at least, OMB compares the effects of regulations on the U.S. economy with comparable burdens in other nations. Compared to 145 other countries, the U.S. is one of the ten least-regulated – along with New Zealand, Singapore, Hong Kong, Australia, Norway, U.K., Canada Sweden, and Japan. The full report is available at http://www.whitehouse.gov/omb/inforeg/2004_cb_final.pdf for those with insomnia.   

CARB GASOLINE

California Phase II gasoline (CARB 2) is exempt from many Federal enforcement provisions for reformulated gasoline. Phase III gasoline went into effect 12/31/03, and EPA was asked to extend the same exemptions from enforcement rules. EPA issued an “enforcement discretion” letter to run until 12/31/04, while adopting formal regulations to exempt CARB 3. Those formal regulations won’t be completed until sometime next year. Therefore, EPA has issued another enforcement discretion letter, this one running until 12/31/05 or the effective date of the formal rule. A copy of that letter is available by clicking here .   

NEW STAFF MEMBERS

SIGMA is pleased to announce two new members of the staff. Susan Crosby is the new director of communications. She will be handling Weekly Report, Independent Gasoline Marketing magazine, other publications, and education. Lisa Freedman is the new manager of sales and development, handling advertising, sponsorships, and other sales efforts. Please join us in welcoming them!   

HOLIDAY SCHEDULE

The week between Christmas and New Year’s typically sees little action in Washington. The SIGMA office will be open (except New Year’s Eve), and we will issue our normal Weekly Report unless there is nothing important to say. Happy Holidays!   

 
SIGMA Weekly Report December 27, 2004 © Copyright SIGMA, 2005