Hot Fuels Debate
At a meeting this week of the North Eastern Weights and Measures Association (NEWMA), regulators expressed serious concern that the conference is “pursuing a course of action to change how petroleum products are sold without supporting facts and figures.” In their official recommendation to the National Conference on Weights and Measures (NCWM), NEWMA highlighted a number of questions that should be answered before a decision on automatic temperature compensation (ATC) is made, including:
• What are the “dollars and cents” reasons for proposing ATC?
• How will the use of ATC benefit consumers? Retailers?
• Is there consensus that ATC is necessary?
• If NCWM adopts ATC despite universal opposition by industry, can it still be considered a consensus body?
• Is it appropriate to promote two methods of sale (compensated and non-compensated) simultaneously as would be the case under the permissive proposal?
• Would confusion in the marketplace sparked by two methods of sale be the basis for legal action against NCWM?
NCWM is a consensus body made up of four regional associations. At its annual meeting in July, the conference failed to attain the 27 votes necessary to approve a proposal that would enable states to permit the use of ATC at retail. NEWMA asked if 27 votes sufficiently represent a consensus.
NEWMA joins the Central Weights and Measures Association in calling for additional research and information before taking action. The Western Weights and Measures Association recommended the NCWM adopt the proposed regulatory changes. The Southern Weights and Measures Association will meet the week of October 21 in Little Rock, Arkansas, to consider the issue further.
Energy Legislation
Senate and House Democratic leaders decided this week to proceed with negotiating competing energy bills without convening an official conference. Part of the challenge of convening a conference stems from the fact that the House and Senate passed legislation with different bill numbers, thus, making them not automatically subject to conference negotiations. Opposition from Republican legislators further complicated the potential for convening a conference.
The move to negotiate outside of conference has been used twice before during this Congress. It provides the Democratic leaders with the opportunity to proceed with legislation without the complications of Republican interference. Republicans are crying foul, accusing the Democrats of excluding the minority party from the legislative process.
Of concern to NACS is the potential for legislators to make significant changes to existing legislation that could negatively affect retailers. NACS worked diligently with House legislators to ensure that no retail mandate for alternative fuels, such as E-85, was included in the bill. Rumors abound, however, that certain members of leadership remain convinced a mandate is necessary. Without an open process, ensuring that the issue receives a fair hearing is impossible.
NACS will work with members of Congress who are willing to cooperate to ensure that the nation’s retailers are treated fairly in the process.
Estate Tax Reformers Keep Trying
This week, supporters of reforming the death tax managed to get the issue on the floor of the U.S. House of Representatives. In a procedural move, House Republicans offered language repealing the estate tax as an alternative to a Democratic tax bill, the Tax Collection Responsibility Act of 2007. This bill was passed and, if signed into law, would repeal the authority of the IRS to enter into private debt collection contracts. Although the estate tax repeal amendment was defeated, 196 Representatives voted in favor of the measure, including 10 Democrats.
In addition, Senate Finance Committee Chairman Max Baucus (D-MT) gave indications that his committee might take up the estate tax reform issue at some point this Congress.
These are good signs that this issue is still on the minds of many lawmakers in D.C. and NACS will continue to push for the reform of this small business destroying tax.
That’s all from Washington. Have a great weekend.
John Eichberger
Vice President, Government Relations