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HIGH COURT RULES IN FAVOR OF STATES, MARKETERS AND AGAINST TRIBES
The U.S. Supreme Court ruled on Dec. 6 that Kansas can tax the fuel sold on American Indian reservations without violating tribal sovereignty, thus reversing the decision of the Tenth U.S. Circuit Court of Appeals. In the 7-2 vote, the high court said Kansas can tax distributors who sell fuel at an Indian-owned and operated gas station near the Prairie Bond Potawatomi tribe’s casino. Writing for the majority, Justice Clarence Thomas said that Kansas is not trying to regulate tribal activity but is simply taxing non-Indian companies based outside the reservation that distribute fuel to tribal operators. The decision is good news for retailers. Back in May, SIGMA, along with NACS and PMAA, filed an amicus brief urging this exact decision. The Supreme Court’s decision is an important step in assuring that tribes that sell tobacco and motor fuel to non-tribal members will pay lawfully imposed state excise taxes on these sales.
EPA RELEASES SPCC RULE DEVELOPMENTS
On December 2, EPA Administrator Stephen L. Johnson signed two proposed amendments to the Spill Prevention, Control and Countermeasure (SPCC) Rule. The first proposal streamlines the regulatory requirements for qualified facilities and equipment, which will give oil facilities that handle up to 10,000 gallons of oil the option to certify their own oil spill prevention plans, rather than relying on a certification from a professional engineer. This proposal is aimed at easing the regulatory burdens faced by small businesses. Also exempt from professional certification are existing facilities and new facilities with a maximum storage capacity of 10,000 gallons, provided they have had no “reportable discharges” since “becoming subject to SPCC requirements.” The second proposal extends the compliance dates for amending and implementing facility SPCC plans to October 31, 2007. EPA also released the SPCC Guidance for Regional Inspectors document on Friday, intended to assist regional inspectors in enforcing all facilities’ SPCC plan implementations by establishing a consistent understanding across every region on how particular provisions of the rule may be applied.
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INCREASE IN LUST FUNDING URGED
SIGMA joined with a group of other marketer trade associations, state environmental officials, and environmental organizations in urging the Administration and Congress to increase substantially FY 2007 appropriations from the federal Leaking Underground Storage Tank (LUST) Trust fund. In a joint letter released Friday, SIGMA joined with NACS, NATSO, PEI, the Sierra Club, the Natural Resources Defense Council, the National Ground Water Association, and the Association of State and Territorial Solid Waste Management Officials, the groups urged EPA and the Office of Management and Budget, as well as key House and Senate legislators, to lead the charge to fully fund the UST reforms included in the Energy Policy Act of 2005. SIGMA supported the EPAct 2005 UST reforms and sees this letter as a first step in securing substantial additional LUST funding in the next fiscal year. A copy of the joint letter is available on SIGMA's website.
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IMMEDIATE ACTION ON REPEAL OF RFG OXY MANDATE URGED
A coalition of refining and marketer groups, including SIGMA, sent a joint letter to EPA Friday urging the agency to take immediate action to repeal the RFG oxygenate mandate in California and to assure the mandate in the rest of the nation takes effect in May 2006, as mandated by EPAct 2006. The repeal of the RFG oxygenate mandate, a cornerstone of energy policy legislation for the past five years, was included in EPAct 2005, which was signed by President Bush last August. EPAct mandated that the repeal take effect upon enactment in California and 270 days after enactment in the rest of the nation. EPA, however, has indicated that this repeal is not self-executing and requires agency rulemaking before it becomes effective. SIGMA joined with API, NPRA, NACS, and WSPA in urging EPA to adopt a direct final rule implementing the repeal by the end of the year. A copy of the joint letter is available on SIGMA's website
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PRESIDENT EXPECTED TO ADDRESS ENERGY PRICES
National Economic Council Director Allan Hubbard said President Bush will probably revamp his second term agenda to address high energy prices with “very innovative” energy proposals. According to Hubbard, Bush asked him and Energy Secretary Samuel Bodman to push the envelope when addressing: (1) the energy independence question; (2) alternative energy supplies; (3) more efficiency in the economy in the consumption of energy; and (4) how the US can find more oil and gas and conventional sources of energy. Hubbard gave no clues about what the revamped White House package will include, however. Officials in recent weeks suggested that the president may consider proposals to create a petroleum product reserve to ensure sufficient gasoline (and natural gas) supplies, as well as increasing offshore development and expanding refinery capacity.
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GREENHOUSE GAS RULING
A federal appeals court denied to a request to rehear a lawsuit that sought federal regulation of greenhouse gas emissions. Six states and the District of Columbia requested that the entire U.S. Court of Appeals for the District of Columbia Circuit to revisit a ruling issued in July which upheld that EPA lacked the authority to regulate carbon dioxide and other greenhouse gases from motor vehicles. Industry groups praised EPA for their position while environmental groups criticized the decision. SIGMA joined an amicus brief in 2004 in support of EPA’s position that carbon dioxide from motor vehicles should not be regulated.
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REPORT ON ETHANOL
The Federal Trade Commission (FTC) released a report--in compliance with the Energy Policy Act of 2005--that evaluates the current state of ethanol production in the United States and measures market concentration using capacity and production data. The report finds that ethanol production in the United States is not unduly concentrated and existing concentration levels do not justify the presumption that one firm or small group of firms could gain enough market power to coordinate prices or output. This is important because if the ethanol industry has the power influence the price of ethanol, gasoline prices would also be affected.
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EPA STREAMLINES EMISSIONS REGULATIONS
EPA announced a direct final rule on November 30 that streamlines regulations on evaporative emissions from automobiles and light trucks—anything up to 14,000 pounds. According to EPA, the rule simplifies the testing procedures automobile and light truck manufacturers use to obtain emissions certification as required in the Clean Air Act, reducing the burden of compliance on manufacturers by harmonizing EPA and California evaporative emissions test procedures. The agency emphasized that the rulemaking will not reduce the stringency of automobile emissions requirements. If the agency receives significant adverse comment during the public comment period, however, it will withdraw the rule and consider comments under a separate proposed rulemaking finalized with the direct final rule.
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LOOK WHO’S GOING TO BRECKENRIDGE!
The NPN/SIGMA Executive Leadership Conference at Winter Management is just weeks away! See who else is attending. SIGMA’s room block at the Beaver Run Resort and Conference Center in Breckenridge, CO, will expire after that date. If you have any questions regarding your room reservations, please contact Mary Alice Kutyn at 703-709-7000. For more information on the resort, please visit www.beaverrun.com. The conference will take place January 22-25, 2006.
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HIGHWAY WATCH PROGRAM CASTS WIDER NET
The Highway Watch program teamed up with the Highway Information Sharing and Analysis Center (Highway ISAC) and the Emergency Management and Response Information Sharing Analysis Center (EMR-ISAC) to broaden its information-sharing network. “This new alliance automatically puts the Highway Watch information into the hands of first responders in every major city in the country,” said Don Rondeau, director of the Highway ISAC (and past SIGMA speaker). “It greatly enhances our ability to immediately mobilize and respond to an incident and that increased capacity to react will pay tremendous dividends in our efforts to keep America safe and secure.” Under a cooperative agreement with the U.S. Department of Homeland Security, Highway Watch trains highway professionals to identify and report safety and security concerns on the nation's roads. The program trains professionals to respond in the event they or their cargo are the target of a terrorist attack and to share valuable intelligence with Highway Watch officials if they witness potential threats.
SIGMA Weekly Report December 12, 2005 © Copyright SIGMA, 2005
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