Congressional Count Down
The year is winding down and Congress is settling for compromises on many issues before they flee Washington and head back to their home state districts for the holidays. Interestingly many of the contemptuous issues that threatened NACS members in the last few months have been quietly resolved. On most fronts these resolutions will have a neutral or slightly positive effect on our industry. 

Yesterday, Republicans and Democrats on the Senate Finance Committee agreed to an extension of the SCHIP program until March of 2009. The extension contains no increase in the federal excise tax on tobacco. The agreement is part of a Medicare bill addressing scheduled cuts in Medicare payments to physicians. While the House will vote on January 23 in an attempt to override the President Bush’s veto of the last SCHIP and tobacco tax bill, it is widely expected that the vote will fail and the veto will be sustained. In addition, since the agreement extends the program through March 2009, it minimizes the possibility that SCHIP votes will be a major issue during the 2008 elections. In fact, SCHIP will likely become part of a larger debate on major healthcare reform during the 112th Congress (2009-2010).
 
Congressional leaders say, however, that they may still bring up expansion-legislation ($35 billion) next year. These proposals could contain an increase in the FET. However, since the current agreement extends the SCHIP program through 2009 -- with a new president and Congress -- it is unlikely that they will gain much momentum.

In energy news, the U.S. House and Senate this week passed, by very large margins, H.R. 6, the Energy Independence and Security Act of 2007. President Bush signed the bill into law on Wednesday. Most notably for NACS members, H.R. 6 mandates a dramatic increase in the existing renewable fuels standard -- to 36 billion gallons per year by 2022. Fortunately, NACS was able to work with House and Senate negotiators to insert a so-called “on-ramp” after 2012 for these increases. The on-ramp requires the Environmental Protection Agency (EPA) and the Departments of Energy and Agriculture to ensure there is adequate supply and infrastructure to handle the yearly increases. H.R. 6 also mandates an increase in corporate average fuel economy (CAFE) to 35 miles per gallon by 2020.

Congress and the White House have settled their differences on funding the Federal government in the New Year. The legislation, totaling over $500 billion, funds the entire Federal government (other than the Defense Department, which was accomplished earlier this year). As a highlight for the industry the legislation includes a significant increase in funding for the leaking underground storage program -- to $110 million, the first time LUST funding has exceeded $100 million.

On a related and helpful note from EPA, a Web site has been activated to disseminate information regarding state delivery prohibitions. This site provides links to state and territory 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.

NACS is joining other major business associations by signing a letter to encourage lawmakers to think twice before they cosponsor H.R. 3195/S. 1881, the ADA Restoration Act. The original law crafted in 1990 provides important and necessary protections for employers and applicants in the workforce. The proposed changes to the ADA would dramatically expand the definition of “disabled” to include such minor impairments as poor eyesight, the flu and small scars. The unintended result would be an overflow of disability discrimination claims that would burden employers to the extent of not being able to assist those who truly need it. We expect this issue to be considered in hearings in the House Education and Labor Committee next year.

EU Successfully Battles Credit Card Interchange Fees
A landmark victory in the fight against credit card interchange fees occurred Wednesday in the European Union (EU). The EU Competition Commission declared that MasterCard’s credit card interchange fees were an illegal and unfair burden to European consumers and they required MasterCard to cut the fees in all 26-member nations. The EU, following in the footsteps of Great Britain and Australia has set the stage for the United States to address the issue of unfair credit cards fees for the American consumer. In reports and statements issued by the Commission the EU has recognized that the consumer, whether paying with cash or credit, is footing the bill and paying fees twice- once in their annual fee and again in the retail price of goods and services. It stands to reason that if the EU decided that consumers are paying too high of a price for their credit cards and the fee is on average twice as high in the United States that Congress and the American public will take notice. This is a great step in the fight against the duopoly of Visa and MasterCard. The Merchants Payment Coalition released a statement supporting the ruling of the EU, which ran in Thursday’s NACS Daily.

That’s all from Washington. Have a safe and happy holidays and happy New Year! Look for the next Washington Report on January 4, 2008.

Julie Fields
Manager, Government Relations