NACS had a pretty good week in both the House and Senate. Before we begin, however, just a reminder in case you did not see it in yesterday's NACS Daily: The Federal Trade Commission (FTC) issued a business alert regarding the Fair and Accurate Credit Transactions Act (FACTA), a federal law that requires businesses to truncate electronically-printed credit and debit card receipts to include no more than the last five digits of the card number, and to delete the card's expiration date. Please be sure to take a look at the alert.
Now, what did Congress do this week?
House Energy Bill — No E-85 Retail Mandate
First, the Committee on Energy and Commerce concluded a two-day markup on a Democratic energy bill covering a myriad of issues. The bill, the result of work completed by the Subcommittee on Energy and Air Quality last week and forwarded to the full committee for final passage, takes baby steps towards reaching the goals of both sides of the aisle to have a more energy independent and efficient United States.
The most important news for retailers is that the bill does not contain any type of mandate for installing E-85 fueling stations or any type of requirement to sell E-85. Throughout the committee process, NACS successfully conveyed to members of Congress that those requirements would create bad policy. It seems that Congress finally understands that retailers will gladly sell any product consumers demand and that the market is working freely in terms of supply and demand of renewable fuels. While we do not expect for this issue to come up on the House floor or in conference, NACS staff will continue to its efforts to educate Capitol Hill on our positions regarding the sale of E-85. There is a saying about letting a sleeping dog lie, and NACS wants Congress to abide by that philosophy and leave the mandate alone.
Perhaps the most notable amendment for our industry adopted by the committee was proposed by Representatives Stupak (D-MI), Inslee (D-WA), and Terry (R-NE). Their amendment directed that all federal fleet refueling stations be required to install renewable fuels pumps at their sites. While this amendment does not directly affect the retailer, it is a great example of the federal government leading the way for using renewable fuels like E-85. This amendment passed unanimously.
Another interesting amendment commissions a study on the effects of corn ethanol demand on the agriculture industry — a topic that is getting significant coverage by the media as dairy prices increase due to the higher cost of feed for cows. (Remember when all the agriculture groups were united in their support for ethanol?)
But there were several other amendments offered by Republicans that were either defeated or ruled irrelevant, including:
• Increasing CAFE standards for any automobiles or light trucks that are considered renewable fuel vehicles (failed)
• Establishing an alternative fuels standard that included coal to liquids technology (failed)
• Requiring an increase in the strategic petroleum reserve (ruled not relevant)
As the committee was concluding its work, Speaker Pelosi (D-CA) held a press briefing ensuring that the bill, combined with legislation developed by 10 other committees, would come to the floor for a vote in July. Democratic leadership and committee members say that a much more comprehensive and substantive bill will be brought up for consideration in the fall. This new energy bill will cover topics ranging from renewable fuels supply, climate change, coal to liquids, CAFE standards, auto efficiency, and other alternative energy sources such as wind and solar. But for now, the Democrats plan to bring a bill on the floor in July that doesn't delve into such controversial and complicated issues.
Feeding LUST
Following a dedicated push from NACS, the U.S. House passed a major increase in funding for the Leaking Underground Storage Tank (LUST) program on Wednesday, which was included in H.R. 2643, the Interior Appropriations bill. NACS has aggressively lobbied for a substantial increase in appropriating the funds that the states need to comply with federal mandates enacted in 2005. NACS is strongly supporting the House version, which includes over $120 million (a 64 percent increase) for funding the LUST program, and is eyeing the Senate to ensure that members will follow suit.
NACS knows this is not the final step in the appropriations process. Early reports indicate Senate appropriators may have fully funded the president's budget request for approximately $95 million, which is still a substantial increase over the Fiscal Year 2007 level of about $72 million. Consequently, we will work to protect the increased funding level throughout the next steps in the legislative process, which will include conference negotiations between the House and Senate.
Meanwhile, the White House issued a Statement of Administration Policy [PDF] that says the president will veto the bill because "it includes an irresponsible and excessive level of spending and includes objectionable provisions." The objections do not specifically target the LUST program, but NACS will remain vigilant in its effort to protect this program from any subsequent cuts.
Preserving Democracy
In a clear victory for all business interests, the U.S. Senate failed to pass H.R. 800, the cleverly named Employee Free Choice Act. NACS opposed this legislation, which would have exposed workers' private votes in workplace elections and make them completely public through a mandatory "card check."
Prior to the vote, NACS sent every senator a letter [PDF] outlining its opposition to the bill. The letter noted that the legislation would have stripped "American workers of the opportunity to keep private their decision on whether or not to be represented by a union. It would virtually replace private ballots in union elections with the very public card check recognition process. With the card check process, workers are forced to vote in front of union organizers by signing or not signing an authorization card."
Congress is now adjourned for the next week in recognition of Independence Day. Likewise, NACS will take advantage of the opportunity to take a deep breath and recollect its strength as we prepare for a number of battles that will ensue over the course of July as Congress sprints towards its pending five-week August recess.
Have a safe and enjoyable Independence Day!
John Eichberger
Vice President, Government Relations