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FTC SEEKS INFORMATION
As reported in earlier editions of Weekly Report, the Federal Trade Commission (FTC) is conducting a study into the allegations of price gouging in the months following Hurricanes Katrina and Rita. Moving forward on the investigation, the FTC is attempting to look past the popular headlines and explore pricing practices based on sound economic principles, i.e., replacement costs, the wholesale market and supply/demand dynamics. To aid in this investigation, representatives from the FTC would like information from marketers regarding their interactions with their state governments—particularly states attorneys general-- during this period. They would also like information on any subpoenas issued to or information requests received from marketers, actions filed, or judicial proceedings pending. If you have any information to share, please contact SIGMA Counsel Tim Columbus at Collier Shannon Scott via e-mail: tcolumbus@colliershannon.com or phone 202-342-8555 by the end of next week. All information submitted will be handled in a confidential manner.
2006 LEGISLATIVE OUTLOOK
Senior Congressional staffers Frank Fannon, Majority Counsel, Senate Environment and Public Works Committee; Bruce Harris, Minority Counsel, House Energy and Commerce Committee; and Margaret Caravelli, Majority Counsel, House Energy and Commerce Committee have been invited to join SIGMA at the 2006 Executive Leadership Conference at Winter Management. The panel will present their views on what’s to come in 2006 – thoughts on refining policy legislation, boutique fuels and price gouging legislation will all be discussed in this interactive session. Other educational sessions for this meeting include: An Executive Roundtable where participants will tell you how they manage their business for success, what is happening in their segment and how the overall petroleum industry will be affected; Market Volatility and Tools for Success; Family Business Planning Workshop; Retail & Hypermarts Dynamics; and Refining, Logistics and Markets: The New Era. For more information on these educational sessions, visit SIGMA’s website, www.sigma.org. The Executive Leadership Conference at Winter Management will take place at the Beaver Run Resort and Conference Center in Breckenridge, CO on January 22-25, 2006.
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DOT WETLINES PROPOSAL
SIGMA Counsel Greg Scott met with the Small Business Administration last week along with representatives from NTTC, ATA, and PMAA to discuss the DOT wetlines proposal. In a move that could cost marketers millions of dollars, the Department of Transportations PHMSA agency, several months ago, proposed to regulate wetlines on tanker trucks carrying flammable liquids (including gasoline and diesel fuel). The proposed regulations call for such wetlines to be emptied after loading and/or unloading, with no more than 1 liter of fuel left in the line. The basis for the proposed rule: 7 accidents with 8 fatalities related to unprotected wetlines. The rule proposes that all new cargo tanks meet the requirements in two years and that retrofitting existing cargo tanks be done within 7 years of the effective date of the final rule. Options for meeting the standard include installation of a purging system or installing shorter or recessed loading lines. The purpose of last week’s meeting was to discuss whether or not there is an acceptable way that the proposal could be modified to mitigate its effect on small businesses. Met with a resounding no from the attending organizations, it is unclear how the wetlines issue will be resolved. DOT has indicated they will attempt to finalize the wetlines rule in 2006.
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CONGRESSIONAL RECESS
The U.S. House of Representatives is scheduled to return to Washington on Tuesday, December 6, for what is expected to be a two-week session. The Senate will return on December 12. It is unlikely any issues of importance to marketers will be taken up in the remaining weeks of the year. SIGMA will keep you posted on any upcoming legislative activity.
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ULSD OUTREACH INITIATIVE
SIGMA is involved in a ULSD outreach group that is working to devise a strategy to help smooth the upcoming transition to ultra low sulfur diesel. Representatives from the trucking industry, auto manufacturers, and other industry groups are also involved in this initiative. The group is in the beginning organizational stages but hopes to have a far-reaching communications plan to roll out in the next several months.
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SUNOCO SETTLES ADA CASE
The U.S. Department of Justice (DOJ) has reached a settlement with Sunoco Inc. that will ensure access to the company’s Optima gas station and convenience stores for people with disabilities. The agreement resolves a compliance issue that began when the DOJ examined certain prototype plans and found violations of the Americans with Disabilities Act’s accessibility standards for design and construction. Sunoco has voluntarily agreed to modify its facilities as needed – including parking, gasoline pumps, curb ramps, c-store entrances, and product displays.
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SENATORS TO PUSH ALT-FUELS LEGISLATION IN 2006
A bipartisan group of senators want a vote in early 2006 on their bill, the “Vehicle and Fuel Choices for American Security Act” (S. 2025), proposed to reduce U.S. oil demand. The bill would require a reduction in oil consumption of 10 million barrels per day by 2031; set mandates for automakers to increase the number of alternative-fuel vehicles; and include new and expanded tax credits for fuel-efficient vehicles. The sponsors of the bill do not yet know whether they will have the support of the Senate Leadership or the Bush Administration.
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CRS EVALUATES THE WOTC & WtW TAX CREDITS
The Congressional Research Service (CRS) released a new report detailing the differences between House, Senate and Bush administration proposals to extend and consolidate the Work Opportunity Tax Credit (WOTC) and Welfare-to-Work Tax Credit (WtW). According to the report, the administration’s budget proposal would consolidate the two credits and modify the parameters of the ex-felon category to which the WOTC applies. Under the proposals and bills introduced in Congress this session (HR 1272, S 595), consolidating the WtW within the WOTC would allow employers who hire long-term family assistance recipients to claim a credit if employees are retained for at least 120 hours rather than the current 400 hours of 180 days; apply the group member subsidy rate to long-term family assistance recipients; and retain certain element of the WtW credit.
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DISCOUNT RATES TO EXPIRE
Don’t forget! Register for the NPN/SIGMA Executive Leadership Conference at Winter Management BEFORE December 7, 2005 and SAVE $50! This year’s conference will take place at the Beaver Run Resort and Conference Center in Breckenridge, CO, on January 22-25, 2006. Don’t wait! Register today!
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EPA & ABANDONED USTs
The Government Accountability Office (GAO) released a report on Nov. 30, stating that the Environmental Protection Agency (EPA) should require states to report information on all known abandoned underground storage tanks (USTs) to the agency. EPA officials believe the data it currently obtains from the states is sufficient for general UST program oversight. But according to GAO, without separate data on all known abandoned sites, the agency cannot assess whether these sites are being cleaned up or deferred due to lack of funding. Since EPA does not currently require the states to report information on the status of all its abandoned tanks, they cannot accurately allocate the resources from the LUST Trust Fund, according to GAO. EPA estimates the average remediation costs per site have been about $125,000.
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GET INVOLVED IN SIGMA
SIGMA invites you to make your association even better by joining us for committee meetings held throughout 2006! They are a great opportunity for SIGMA members who are interested in our legislative goals, publications, educational offerings, marketer operations, and membership recruitment and retention efforts to provide their input. Start the year by attending the Winter Leadership Conference set for January 19-20 in Denver, Colorado at the Brown Palace Hotel. This conference provides ample time for the Communications, Education, Legislative, Marketer Operations and Membership Committees to meet and discuss important issues facing motor fuel marketers in 2006. Winter Leadership also provides ample opportunity to communicate and network with SIGMA leadership. The peer-to-peer sharing that takes place in Denver is led by the finest motor fuel marketers in the industry today. Register today by downloading a registration form at www.sigma.org.
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SIGMA SPRING CONVENTION
The SIGMA Spring Convention will be held in San Antonio, Texas April 27-30, 2006 at the Westin La Cantera Resort! SIGMA’s spring signatures—golfing, a great destination and industry-renowned educational sessions--including an intensive 4-hour workshop on ultra low sulfur diesel—will make this meeting a must attend. Nestled atop one of the highest points in all of San Antonio, the Westin La Cantera Resort offers breathtaking views of downtown and the beautiful Texas Hill Country. With health club and spa services, tennis courts, unique dining options, and golf, there’s something for everyone! Register today at www.sigma.org.
SIGMA Weekly Report December 5, 2005 © Copyright SIGMA, 2005
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