While there was not much action on NACS agenda items in Congress, the regulatory agencies responsible for implementing legislation to control the diversion of pseudoephedrine to methamphetamine labs were preparing to finalize regulations.
On September 13, 2006, representatives from NACS and other retail trade associations met with officials from the Office of Management and Budget, Drug Enforcement Administration, Department of Justice, and Office of National Drug Control Policy regarding the Combat Meth Act and regulations. The retail groups pressed for time to implement regulations that come out on the Act. Many aspects of the law take effect on September 30, but without regulatory guidance, retailers cannot realistically implement the law in that time frame.
The government officials present were not willing to comment on the status of the rule, but considered retailers' concerns.
Retailers should be preparing for the requirements of the Act, as they may have a short (perhaps unreasonably short) time frame in which to achieve compliance.
NACS is actively working on this issue and closely monitoring developments. NACS will provide additional updates and guidance for members as soon as it becomes available.
On the fuels fronts, most observers are focusing on the implementation of the ultra low sulfur diesel (ULSD) regulations, especially now that crude and retail gasoline prices have fallen. Effective October 15, any retailer selling diesel fuel labeled as ULSD must ensure that it contains no more than 15 parts per million sulfur.
As the deadline approaches, NACS is very interested in hearing from retailers how the transition is going in their markets, whether they are converting to ULSD or have done so already, and whether they have experienced any problems with the conversion. If you have any questions or anything you can report regarding this transition, please let me know by e-mailing me at jeichberger@nacsonline.com. The source of all information will be treated confidentially and information will only be used anecdotally or in the aggregate.
Meanwhile, legislators in both the House and Senate prepared and debated legislation that would, in their minds, influence voters decisions in November. Very little of these debates directly affect NACS members. Next week, the House is expected to consider permanently extending the child tax credit and the marriage penalty relief, but the Senate has not yet decided how to proceed on the death tax remains. Negotiations in that chamber center around reconsidering the trifecta bill (minimum wage increase, death tax reform and tax extenders) or simply moving tax extenders alone, with Democrats pushing for the latter course and some Republicans beginning to support that same strategy.
Despite the diversions of the campaign-inspired agendas, NACS continues to meet with legislators on issues important to NACS members. Hopefully news that is more relevant will transpire in the weeks to come.
Have a great weekend!
John Eichberger
Vice President, Government Relations