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September 2006

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Memo From Washington
September 29


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Posted: Sep 29, 2006     Email    Print    Print ALL    Comment   

Congress plans to go home today and start its full-court press for the mid-term elections. Whether that will happen remains to be seen as the legislators are planning to spend a rare Friday in session to complete the work they deem necessary before recessing – such as passing a continuing resolution to keep the federal government operating in lieu of finalizing the nation's appropriations bills. 

Also on the ticket this week, however, were somewhere in the neighborhood of 90 or more bills to be considered under suspension of the rules. Such legislation is typically considered to be non-controversial in nature and requires a two-thirds majority to be passed by the House. Particular to NACS interests were two of these suspension bills focusing on motor fuels issues.

The first is a bill I mentioned last week authored by Rep. Chris Chocola (R-IN) that would specifically authorize Congress to spend money from the Leaking Underground Storage Tank (LUST) Trust Fund to pay for the reforms enacted last year by the Energy Policy Act of 2005. Currently, a restriction limited the ability of the administration to request additional money for Fiscal Year 2007 from the LUST Trust Fund and forced it to rely upon a supplement grant program. If the Senate follows the House lead and approves this legislation quickly, most likely during a lame duck session, then EPA can proceed to dedicate additional resources from the trust fund to help states pay for such requirements as inspections.

The second bill of interest had not been brought to a vote by press time but was expected to be considered on Friday. Rep. Bart Gordon (D-TN) earlier this year introduced legislation to address two concerns of the petroleum marketing industry. His legislation would direct the Department of Energy (DOE), in consultation with the National Institute of Standards and Technology (NIST), to develop an affordable and reliable field test to measure the sulfur level in ultra low sulfur diesel. Such a mechanism would better enable retailers to ensure the diesel fuel they receive and sell is compliant with federal regulations. The bill also directs the DOE and NIST to develop a mechanism to convert existing storage and distribution infrastructure to better handle alternative fuels. Such an effort could potentially lower the cost to retailers who wish to sell such alternative products as E-85.

Meanwhile, the business community continues to press Congress to act on the issue of the death tax. In a letter signed by more than 30 associations, NACS told Congress that it continued to "support a permanent end to this destructive and onerous tax." The organizations explained that the estate tax "discourages savings and investment, reduces wages and job creation, and is the leading cause of the dissolution for many family-run businesses."

Final action on the death tax is still possible this year as Senate leaders seek to find a combination of issues that will generate enough votes to pass that chamber. The last package, which included an increase in the minimum wage and a package of tax extensions considered essential, was unable to get the 60 votes necessary to break a Senate filibuster. How issues will come together to garner enough votes remains unclear.

Next week, members of Congress should be back home asking for your vote. NACS urges you to pay attention to the candidates, ask them questions about issues important to you, and make your voice heard. There are less than six weeks until Election Day.

We hope to see you all next week in Las Vegas for the 2006 NACS Show. Have a great weekend.

John Eichberger
Vice President, Government Relations