Energy policy took center stage for NACS this week, and will continue next week. However, tobacco taxes could also demand the association’s attention.

House Panel Considers Energy Bill, Not E-85 Mandate
The Energy and Air Quality Subcommittee of the House Committee on Energy and Commerce met Wednesday to markup a comprehensive energy bill to reduce America’s dependence on foreign oil…or at least that was the original intent. After much back and forth over the last three weeks and many behind the scenes negotiations within the Democratic majority, the discussion drafts put before the subcommittee were devoid of any provisions that might be considered controversial, such as a 35 billion gallons alternative fuels mandate, a low carbon fuel standard and an E-85 mandate.

The 13-hour long debate on Wednesday was bitter and it only highlighted the partisanship that energy legislation inevitably fosters. Republicans sought to call the Democrats on the policies they had previously proposed, only to withdraw before the markup. Democrats sought to defuse criticism and dissention within their own ranks, repeatedly saying that there would be another “big” energy bill brought up in September.

The package consisted of six discussion drafts dealing with energy efficiency, a smart electric grid program, Department of Energy loan guarantee programs, advanced battery and plug-in hybrid vehicle programs, Energy Information Administration data collection programs, and, of most importance to NACS, renewable fuels infrastructure programs. The authors of the legislation drafted the provisions in such a way that many amendments were not considered and could not be offered because they could not be directly correlated to the originally proposed draft.

While NACS did not predict any problems for retailers with the proposed language considered yesterday, staff monitored the process to ensure that an E-85 mandate was not brought up as an addition to the draft. NACS strongly opposed the proposed mandate in the original drafts, and was pleased the provision was kept out of this round of energy legislation. It was also somewhat comforting to hear Chairman Rick Boucher (D-VA) say, on the record, that he could not give a definitive answer as to whether or not an E-85 mandate would be considered by the committee in the future. NACS again formally presented to the chairman the reasons for its opposition to the mandate in a meeting Thursday morning.

The Republican side of the aisle deftly used parliamentary procedure and legislative process to attempt to amend the draft concerning renewable fuels. Of particular note was an amendment offered by Rep. Mike Rogers (R-MI) to authorize $1.2 billion in grants over the next four years to finance the installation of E-85 tanks and pumps in stations not owned by integrated oil companies. The amendment passed by a voice vote and could be of great assistance to independent retailers should the appropriators make the move to fund the grants. There were several other amendments offered by Republicans to this draft dealing with coal-to-liquids technology, boutique fuels and bio-refineries. These amendments were either withdrawn or did not pass.

The only Democratic amendment to the renewable fuels section was a proposal by Rep. G. K. Butterfield (D-NC) to authorize $30 million for historically African American land grant universities to conduct research on renewable fuels. This amendment caused considerable outrage from the Republicans as they thought it resembled an earmark that would pick winners and losers. The Republicans countered with an amendment to have all universities compete for the grant money, but that attempt failed.

All six of the drafts passed by party line votes and will be forwarded for consideration by the full Committee on Energy and Commerce next week and then possibly straight to the House floor. Speaker Pelosi has consistently stated that the House will vote on energy legislation before the Independence Day recess. In anticipation of next week’s votes, NACS will intensify its efforts to educate members of the committee about the petroleum marketplace and reinforce its opposition to an E-85 mandate. Watch for updates next week.

Senate to Vote on Energy Today
Meanwhile, the battle continued to rage on the floor of the Senate regarding its comprehensive energy bill. Several amendments to improve the bill were defeated by the majority. These included one to ensure that the proposed 36 billion gallon alternative fuels mandate would not negatively affect the availability or price of food products; one to prevent the extension of the duty applied to imported ethanol; one to streamline and boost the production of domestic fuels; and several to promote clean coal technologies. The Senate is expected to vote today on final passage today.

Sen. Claire McCaskill (D-MO) had intended to offer an amendment to require retailers to install temperature correction equipment on all fuel dispensers. NACS is strongly opposed to this provision and has been working with colleagues at NATSO, PMAA, SIGMA and a large host of state association in a coordinated effort to educate decision-makers about the fallacy of such action. Fortunately, as of press time, word had reached the retailer associations that Sen. McCaskill had decided to not offer the amendment at this time, but would seek to move the legislation at a later date. So, we must remain vigilant in order to defeat this effort.

Federal Excise Tax on Tobacco
The battle to raise the federal excise tax on cigarettes is raging on Capitol Hill, with some new calls for an increase of over $1.00 per pack. Action could occur as early as next week. NACS is working with the major manufacturers and distributors to oppose the increase, and we encourage you to visit one of the following grassroots websites recently set up to assist you in contacting your members of Congress to share your opposition:  www.stopthefetincrease.com, www.nocigtax.com, and a toll-free phone number, (877) 857-8074.

Have a great weekend.

John Eichberger
Vice President, Government Relations