Fuel Costs Prompt Calls For Federal Intervention

Senate Democrats Call For OPEC Pressure

Increased Fuel Economy Proposal

Pay At The Pump Statistics

Credit Card Fair Fee Act

RFS Raises Questions For Ethanol Industry

FDA Tobacco Update

Westin Information

FUEL COSTS PROMPT CALLS FOR FEDERAL INTERVENTION
On Apr. 22, U.S. crude oil prices climbed to just under $120 per barrel for the first time ever, representing a 20 percent increase since January. The Energy Information Administration's (EIA) last monthly forecast predicted a nationwide average of $3.60 per gallon for regular-grade gasoline in June as the high mark for the summer driving season. Forecasters will likely need to revise upward their next monthly outlook, due for release May 6.

The increasing costs prompted House Speaker Nancy Pelosi (D-CA) to send a letter Apr. 22 to President Bush urging him to work with Congress to get several pieces of energy legislation enacted that have passed the House but stalled in the Senate. They include: 1) removing the antitrust exemption for OPEC, 2) creating a federal gasoline price-gouging law, and 3) repealing oil industry tax breaks to fund renewable energy incentives. Similarly, Sen. Maria Cantwell (D-WA) and Rep. Jay Inslee (D-WA.) wrote a letter April 21 to Bush and Attorney General Michael Mukasey calling for the creation of an oil and gas market fraud task force within the Justice Department. The lawmakers urged Bush to direct the existing Justice corporate fraud task force (created in 2002 by Bush after the Enron Corp. debacle ) to launch investigations into possible manipulation in energy markets. The task force is an interagency group that coordinates and enhances enforcement efforts among several agencies, including Justice, Treasury, the Commodities Futures Trading Commission, the Federal Energy Regulatory Commission, the Securities and Exchange Commission, and the Postal Inspection Service. Cantwell and Inslee suggested the FTC should be added to the task force.

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SENATE DEMOCRATS CALL FOR OPEC PRESSURE
On Apr. 24, Senate Democrats called on President Bush to suspend his plans to sell almost $14 billion in sophisticated weaponry to Middle East allies unless OPEC agrees to increase crude oil production and bring down record oil and gas prices that are contributing to the nation's economic slowdown. If OPEC takes no action, Senate Democrats said they will introduce a "resolution of disapproval" that would block the administration from pursuing planned arms sales. Additionally, Senate Majority Leader Harry Reid (D-NV) has ordered the Democratic leadership to come up with a plan to combat high energy prices. The plan is likely to contain previous bills dealing with gasoline price-gouging, greater energy market regulation, and removing OPEC's sovereign immunity from U.S. antitrust laws. In other actions, Sen. Byron Dorgan (D-ND), plans to offer a bill to stop the Energy Department from filling the Strategic Petroleum Reserve, unless oil falls below $75 per barrel, as an amendment to the upcoming Iraq war supplemental bill. Dorgan also wants to pass legislation that would increase the margin requirements for energy futures trading from the current 5 percent threshold to around 25 percent, in order to limit speculation by parties who are solely interested in making profits on volatile price swings.

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INCREASED FUEL ECONOMY PROPOSAL
Transportation Secretary Mary Peters announced Apr. 22 a proposed increase in federal fuel economy standards for cars and light trucks. By 2015, average fuel economy standards would be 35.7 miles per gallon for passenger cars, up from the current 27.5 mpg, and 28.6 mpg for light trucks, an increase from the existing standard of 22.5 mpg. Combined, average fuel economy for cars and light trucks would be 31.6 mpg by 2015. It would be the first increase in the fuel economy standard for passenger cars in two decades. The proposal would raise fuel economy requirements for model years 2011 to 2015, as the Transportation Department begins to implement requirements in the Energy Independence and Security Act signed by President Bush in December 2007.The energy law mandated a combined average standard for cars and light trucks of 35 mpg by 2020. The Transportation Department will formally publish a proposed rule in the Federal Register soon, with a final rule planned by the end of the year.

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PAY AT THE PUMP STATISTICS
Do you have pay at the pump technology at your outlets? Have you kept any statistics on how that has affected in-store sales? We’d like to know! Please e-mail Susan Crosby at scrosby@sigma.org with any information you have. Thank you in advance!
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CREDIT CARD FAIR FEE ACT
On Mar. 6, U.S. House Judiciary Committee Chairman John Conyers (D-MI) and Representative Chris Cannon (R-UT) introduced the “Credit Card Fair Fee Act, H.R.  5546. This legislation under consideration would end the practice of anti-competitive rate setting by the credit card industry and give retailers an opportunity to negotiate terms and conditions just as with every other business. Over the last three years, unfair credit card practices, policies and fees have been scrutinized by the public, consumer groups, the Federal Reserve, and Congress.  Interchange fees have been the subject of hearings three times in recent years under both the Republican and Democratic Congresses. Your letters to Congress asking representatives to cosponsor the Credit Card Fair Fee Act are making a huge difference. Below is the most up to date list of cosponsors, along with the date the members signed on as cosponsors of H.R. 5546. If your representative is no tlisted here, please make an effort to reach out to them.

1. Rep. John Conyers (D-MI)    03/06/08
2. Rep. Chris Cannon (R-UT)    03/06/08
3. Rep. Zoe Lofgren (D-CA)   03/06/08
4. Rep. Bill Shuster (R-PA)  03/06/08
5. Rep. Anthony Weiner (D-NY) 03/06/08
6. Rep. Bill Delahunt (D-MA)  03/06/08
7. Rep. Todd Platts (R-PA)  03/06/08
8. Rep. Peter Welch (D-VT)  03/06/08
9. Rep. John Sullivan (R-OK)  03/06/08
10. Rep. Joe Wilson (R-SC)  03/06/08
11. Rep. Louie Gohmert (R-TX)  03/06/08
12. Rep. Ralph Hall (R-TX)  03/06/08
13. Rep. John Boozman (R-AR)  03/06/08
14. Rep. John Peterson (R-PA)  03/06/08
15. Rep. Chris Carney (D-PA)  03/12/08
16. Rep. Keith Ellison (D-MN)  04/02/08
17. Rep. Eddie Bernice Johnson (D-TX) 04/03/08
18. Rep. Betty McCollum (D-MN) 04/08/08
19. Rep. John Yarmuth (D-KY)  04/09/08
20. Rep. Heath Shuler (D-NC)  04/10/08
21. Rep. Ed Whitfield (R-KY)  04/10/08
22. Rep. Phil English (R-PA)  04/15/08
23. Rep. ZachWamp (R-TN)  04/17/08
24. Rep. Pat Tiberi (R-OH)  04/22/08
25. Rep. Jon Porter (R-NV)  04/22/08
26. Rep. Russ Carnahan (D-MO)  04/22/08
27. Rep. Jim Marshall (D-GA)  04/22/08
28. Rep. Steve King (R-IA) 4/22/08 
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RFS RAISES QUESTIONS FOR ETHANOL INDUSTRY
EPA is planning to propose a rule in the fall to implement a requirement to raise renewable fuel content in the nation's motor fuel supply from the 7.5 billion gallons required by 2012 under the previous law to 36 billion gallons in 2022. Of that 36 billion gallons, 21 billion gallons must be made from cellulose or other non-corn feedstock. The expansion of the RFS raises several issues for the ethanol industry that must be resolved before EPA issues a final rule. For example, one of the provisions required that renewable fuels must emit 20 percent less greenhouse gas than the equivalent gasoline use during their entire life cycle from production of the feedstock to eventual use in vehicles. However, biofuels production facilities that commenced construction prior to enactment of the energy bill are exempted from this requirement, but there is no clear guidance on the meaning of "commenced construction.” In addition, EPA is working with various stakeholders to develop an analytical methodology to determine the amount of greenhouse gases given off during the production of feedstocks to produce ethanol. Finally, the law also requires that renewable fuels be produced from land that was "cleared or cultivated" before the energy independence law was enacted. This provision will requires input from stakeholders because renewable fuel producers do not know the source of their feedstocks, which raises questions about how it will be enforced.
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FDA TOBACCO UPDATE
Earlier this month, the House Energy and Commerce Committee approved H.R. 1108, a bill giving the Food and Drug Administration regulatory authority over the manufacture and retailing of tobacco. Since then, the House Ways and Means Committee sent a letter immediately following the Energy and Commerce Committee vote to Rep. Nancy Pelosi claiming it had jurisdiction over the bill because of a provision which generates revenue, which is the domain of that committee. The Committee on Natural Resources just this week submitted a letter requesting that the legislation be referred to its committee, raising concerns about language requiring the FDA to regular tobacco sales by Native American retailers. These referral requests will undoubtedly delay the progress of this legislation for now. We will keep you updated on any new developments as they become available.
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WESTIN INFORMATION
Registration for Hilton Head is exceeding expectations!  If for some reason you find yourself in a situation where you have to cancel PLEASE DO NOT CANCEL YOUR HOTEL ROOM.  We’re still trying to get about 20 people into the hotel and we need your room.  Please call Mary Alice Kutyn @ (703) 375-0482 or email to makutyn@sigma.org  Thanks in advance for your cooperation! There are alternate hotels in the area and are relatively close to the Westin:

• The Hampton Inn  843-681-7900

• The Main Street Inn  843-681-3001

• The Marriott Beach and Golf Resort 843-686-8400

• The Hilton Ocean Front Resort (843-842-8000

• The Crowne Plaza Resort  843-842-2400

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SIGMA Weekly Report April 28, 2008 © Copyright SIGMA, 2008