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PRESIDENT SIGNS ENERGY BILL
President Bush signed an expansive energy bill (H.R. 6) into law Dec. 19, that includes a bipartisan congressional mandate to raise fuel mileage standards for the first time in 30 years and extends the $14-per-worker the Federal Unemployment Tax Act (FUTA) surtax, raising about $1.5 billion for an additional year to offset the legislation's negative impact on revenues going into the highway trust fund. (The House approved the revised version of H.R. 6, the Energy Independence and Security Act, that passed the Senate Dec. 13.) The FUTA surtax was created in 1976 to pay off loans from the federal government to cover a shortfall in funding due to high unemployment rates and heavy use of unemployment insurance in the early 1970s. A $21.8 billion tax package that included several tax credits for alternative fuel production and use and repealed manufacturing tax deductions for major oil and gas producers was stripped from the bill after objections to the provisions threatened to stall action in the Senate.
The fuel economy provision, which originated in the Senate, requires the Transportation Department to raise the average fleet fuel economy standard for cars and light trucks to 35 miles per gallon by 2020. Beginning in 2011, the department will begin to annually increase the standard. Analysts predict the fuel economy increase will cut U.S. oil consumption by more than 4 million barrels per day by 2030.
A five-fold increase in the renewable fuels standard to 36 billion gallons by 2022 was also included. The near-term schedule will be accelerated with refiners required to blend 9 billion gallons of ethanol into the nation's fuel supply in 2008. Both Senate Majority Leader Harry Reid (D-NV) and House Speaker Nancy Pelosi (D-CA)) have vowed to continue to push again for passage of the energy tax package in the coming year. Several of the tax provisions removed from the package already have been included in the Senate's $19 billion tax package for a farm reauthorization bill (H.R. 2419).
As reported in last week’s Weekly Report, SIGMA does not endorse this legislation. However, SIGMA actively advocated for three things with respect to which we were successful: 1) Price gouging provisions were dropped. The only remnant is a provision empowering the FTC to investigate and prosecute "market manipulation." This provision does not apply to retailers making retail sales; 2) There is no mandate for the installation of E85 at retail outlets; 3) Amendments to PMPA, which would expand upon the Gasohol Competition Act of 1980, have been modified--franchisors may not stop a franchisee from installing or converting a tank on the franchisee's own property to E-85, provided they still sell at least two grades of gasoline. They can also advertise availability on E85 on a sign or light pole.
EU GIVES MASTERCARD SIX MONTHS TO CUT FEE
On Dec. 18, the European Union (EU) Competition Commission ruled that MasterCard’s credit card interchange fees for consumers must be cut across the 26 member nations of the European community. Calling the MasterCard credit card interchange fee system illegal and an unfair burden on European consumers and merchants, EU Competition Commissioner Neelie Kroes said “Consumers foot the bill, as they risk paying twice for payment cards: once through annual fees to their banks and a second time through inflated retail prices paid not only by card users but also by customers paying cash.” The EU competition commission concluded that MasterCard abused its dominant position in the market by setting credit card interchange fee levels too high. “The EU commission report underscores that Visa and MasterCard hit consumers coming and going.
Cutting credit card interchange fees is an important victory for Europeans as well as for anyone traveling there,” said Tim Hammonds, a Merchants Payments Coalition (MPC) executive committee member. SIGMA is also a member of the MPC. American consumers and merchants pay more than twice as much as Europeans – two dollars out of every $100 spent on card transactions goes directly to Visa and MasterCard issuers. Hopefully, this ruling will help convince U.S. policymakers that the problems here need to be addressed. Credit card interchange fees paid by U.S. consumers and merchants to Visa, MasterCard and their member banks is expected to total more $40 billion dollars this year. Raising hidden credit card interchange fees is how Visa and MasterCard encourage banks to issue more credit and debit cards – as long as rising rates are kept secret, consumers have no way of knowing the extra costs they are paying.
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WINTER COMMITTEE MEETINGS
Don’t forget to register for the Winter Committee Meetings coming up in Salt Lake City UT on February 7-8 at the Salt Lake City Marriott—Downtown. The hotel block rate expires Tuesday, January 15, 2008. Remember, the Executive Leadership Conference in Snowbird is just a van ride away!
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IGNORING COAL?
On Dec. 19, House Natural Resources Committee Chairman Nick Rahall (D-WV) explained his vote against the energy bill (H.R. 6) as an expression of his concern over a big expansion of ethanol and the apparent ignoring of the nation's coal resources. He explained that coal is the nation's most abundant natural energy resource and that the U.S. has already invested years of research into making coal cleaner and more efficient. Rahall and Rep. Geoff Davis (R-KY) introduced the "Coal-to-Liquid Fuel Promotion Act" (H.R. 370) in January but no action was taken. A Senate version (S. 155) was sponsored by Sens. Barack Obama (D-IL) and Jim Bunning (R-KY). Members from coal-producing states plan to try again in 2008 for financial incentives to develop coal-based transportation fuels.
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EPA STATE DELIVERY PROHIBITION WEBSITE
EPA's has launched its state delivery prohibition web site. It is available at: http://www.epa.gov/oust/dp/index.htm .This site provides links to states' and territories' delivery prohibition programs where users will find detailed information, including applicable laws, regulations, and policies. Information accessible through this site can help fuel delivery drivers determine if an underground storage tank is not eligible to receive fuel. The Energy Policy Act of 2005 stated that, by August 2007, states and territories receiving funds under Subtitle I of the Solid Waste Disposal Act were required to meet delivery prohibition requirements described in grant guidelines EPA developed. EPA consulted with states and representatives from the underground storage tank and fuel delivery industries to develop the guidelines. During that consultation, some stakeholders requested that EPA provide information on delivery prohibition programs developed and used by states, and EPA committed to provide that information. This web site fulfills that commitment.
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SIGMA Staffing Update
Eileen Moore, SIGMA’s Director of Membership, will be leaving SIGMA to take a position with the National Contract Management Association. Eileen’s last day with SIGMA will be Jan. 4, 2008. Eileen has expressed her sincere gratitude for her employment with SIGMA over the past two years. During this transitional phase, SIGMA is currently interviewing for a Director of Membership Services. We are looking forward to working with a newly hired staff member to continue our quality membership services while developing new opportunities for increased member involvement.
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NO WEEKLY REPORT NEXT WEEK
Unless there is breaking news to report, there will be no Weekly Report next week. Have a wonderful holiday and look for the next Weekly Report on January 4, 2008!
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EPA REJECTS CALIFORNIA WAIVER REQUEST
On Dec. 19, the Environmental Protection Agency denied (EPA) California's request for a Clean Air Act waiver that would have allowed the state to enforce its own regulations to control greenhouse gas emissions from motor vehicles. Instead, the Bush administration will focus on implementing a tough new federal fuel economy standard included in energy legislation signed into law the same day, EPA Administrator Stephen Johnson said. Johnson's decision marks the first time EPA has denied California a waiver to implement vehicle standards stricter than federal requirements. In a written statement issued after Johnson's announcement, California Gov. Arnold Schwarzenegger (R) pledged to file a lawsuit against the agency "to overturn today's decision and allow Californians to protect our environment." California enacted legislation in 2002 requiring the state to develop vehicle-related greenhouse gas regulations. Those regulations were adopted by the California Air Resources Board in 2004 and were upheld recently by a federal court. The standards require a 30 percent reduction in emissions from 2004 levels by 2016 for passenger cars and light-duty trucks. At least 16 others states had adopted California's regulations or plan to adopt them, and all were counting on the waiver from EPA to begin enforcing the rules.
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SIGMA APRIL SHARE GROUP
SIGMA will hold a Share Group on April 23-24 in Kansas City, MO, titled: Lubes, Lubrication Services and Training Consolidation in the lubes marketing space has been very aggressive for several years and a new value added services and consultative support model is emerging. To support this model-- training, sales support, diversity of products and services is a must. To that end--this Share Group is a two-pronged focus: Training, services and how does the “Green” revolution fit in the business. The second prong is controlling costs thru solid operational controls—inventory management, paperless vs. paper, and effective A/R mgt.
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SAN FRANCISCO HOTEL WILL SELL OUT
Although SIGMA’s 50th Anniversary Annual Meeting is almost a year away, register and book your room now! The Fairmont Hotel in San Francisco is sure to sell out. With a record- setting attendance expected at this meeting, don’t wait to make your plans! Don’t miss out on the big one— SIGMA’s 50th Anniversary Meeting will take place November 13-16, 2008.
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SIGMA Weekly Report December 24, 2007 © Copyright SIGMA, 2007
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