The 2006 NACS Show concluded Wednesday night with a closing dinner and the NACSPAC Live Auction. From a government relations perspective, this year's event was a resounding success that will help launch the association's advocacy efforts into the new Congress.

Every year, the NACS government relations team approaches the NACS Show with a couple of primary objectives. One of these is to strengthen the political action committee by signing up new members to support the political efforts of NACS. I am happy to report that this goal was resoundingly accomplished and we are entering the next year with a strong foundation.

Another goal we take with us is to reconnect with the NACS members, to learn from them what government activities are affecting them in their markets, and to broaden our grassroots network in order to better represent the interests of the industry as whole. We met and spoke with countless retailers and this will be very helpful to our efforts. If we missed you in Las Vegas, please contact me at jeichberger@nacsonline.com. Input from NACS members is critical to our efforts on Capitol Hill.

But like all things, the oxygen-enriched environment of Vegas is now behind us and we return our focus towards defending your interests in Washington. Ironically, our actions on your behalf this week actually took place in Chicago.

NACS Counsel Greg Scott appeared at a hearing before the U.S. Environmental Protection Agency (EPA) to deliver the perspective of the marketing community with regards to the proposed regulations implementing the Renewable Fuels Standard (RFS) established by the Energy Policy Act of 2005. In his statement (PDF), Scott expressed the industry's concern that the proposal may not protect the market from anti-competitive behavior that could have negative consequences for consumers in the long term.

Scott recommended certain changes to the proposal that would prevent market participants from hoarding renewable fuel credits in an effort to disadvantage their competitors or to artificially inflate the value of those credits.

He informed the Agency that there are some stakeholders who believe that the current RFS, which will require 7.5 billion gallons of renewable fuels by 2012, is not sufficient. "If RFS mandate levels are increased dramatically sometime in the near future, and renewable fuel demand outstrips supply, then EPA's current proposal will be exposed as inadequate to protect consumers and the marketplace," he said.

Scott also suggested that EPA address the issue of state renewable fuel mandates and the negative affect these have on the integrity of the RFS as envisioned by Congress, a matter currently ignored in the proposal.

NACS will continue to communicate with EPA regarding their proposed regulations and hopefully influence the final rule to better protect the interests of the marketplace.

Thank you all for a great Show this year!  Have a great weekend.

John Eichberger
Vice President, Government Relations