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HOUSE DEMOCRATIC LEADERSHIP
INTRODUCES ENERGY PROGRESS ACT
House Majority Leader Steny Hoyer (D-MD) and
other leading House Democrats introduced the “Program for Real
Energy Security Act” (PROGRESS Act) this week. The provisions in the
bill would impact petroleum marketers, particularly language which
would provide up to one-third of the funding for biobased fuel
infrastructure development.
In general, H.R. 1300 is designed
to promote energy independence by improving vehicle efficiency,
increasing the distribution of alternative fuels and bolstering rail
infrastructure and access to public transportation.
Of
significance for petroleum marketers, the bill would first establish
a “National Commission on Energy Security and Transition to New
Fuels” to make recommendations to Congress and the President for
achieving energy independence over the next 5, 10, 15 and 20 years.
Second, a “New Manhattan Center for High Efficiency Vehicles” would
be established to coordinate private and government efforts to
develop viable vehicle and fuel technologies. Third, the Secretary
of DOE would develop a grant program to provide funds and technical
and marketing assistance to retail and motor fuel marketers for
installation, replacement, or conversion of motor fuel storage and
dispensing infrastructure (equipment used in blending, distribution
and transport)exclusively for biobased fuels. The maximum grant
allocation would be 33% of the estimated cost, and no more than
$180,000 for a combination of equipment at any one retail outlet.
Last, the bill would provide funds for cellulosic ethanol production
and would require the development of uniform per gallon fuel
standards for biodiesel fuel so that vehicle manufacturers could
design engines to use biodiesel fuel meeting one or more of the new
standards.
PMAA sees both potential problems and
opportunities in the current form of the legislation, and will work
with Members of Congress to make the best of the legislation for
petroleum marketers.
SENATE SUBCOMMITTEE AIMS TO
SHINE LIGHT ON THE CREDIT CARD INDUSTRY
Appearing before the Senate Permanent
Subcommittee on Investigations, the heads of Citi and Chase banks,
both touted changes in their fee structures for consumers. Chase
will now no longer continually charge over the limit fees and Citi
has pledged to end its practice of universal default (charging
customers a higher interest rate if they are delinquent on another
credit card).
Subcommittee Chairman Carl Levin (D-MI)
continued to bemoan the predatory practices used by card companies
and said that these practices were proof that legislation was needed
to regulate the industry. Both Levin and Senate Banking Committee
Chairman Christopher Dodd (D-CT) have pledged more hearings into the
lending practices of credit card companies, most importantly
interchange fees. PMAA will continue to monitor these hearings
closely and update our members as warranted.
MAKE YOUR RESERVATIONS NOW
FOR PMAA WASHINGTON CONFERENCE
There are two weeks left to receive the PMAA
rate at the Washington Court Hotel, headquarters for PMAA’s upcoming
Washington Conference and Day on the Hill. This year’s conference is
scheduled for April 25-27, 2007.
A complete conference
agenda is available at online here.
PMAA has secured a room block at the Washington Court Hotel
with a rate of $279 single/$289 double. To make a reservation,
please call (800) 321-3010 and request the PMAA rate. Reservations
must be made before March 25, 2007.
EPA CONTINUES TO TAKE
FIRE
Environmental Protection Agency (EPA)
Administrator Stephen Johnson spent this week under fire from both
House and Senate committees over President Bush’s FY 2008 budget
request for the agency. Although this year’s budget request is lower
than last year’s, Administrator Johnson defended the agency’s
successes, stating that America is doing the most of any country to
reduce emissions and protect the environment.
Several
Senators and members of Congress were skeptical of these claims,
particularly as they related to superfund and brownfields clean ups,
as well as Leaking Underground Storage Tank clean ups. For the
second time in as many weeks, House Energy and Commerce Environment
and Hazardous Materials Chairman Albert Wynn (D-MD) criticized EPA
for its lack of adequate LUST trust fund expenditures and pledged
that there would be bipartisan support to address the
issue.
TRANSPORTATION GROUP CALL FOR
GAS TAX INCREASE
The American
Association of State Highway and Transportation
Officials (AASHTO) has recommended raising the
federal gasoline tax to maintain the nation's highway system.
AASHTO made the
recommendations in a report to a congressional commission. The
report, titled “The Transportation/Invest in Our Future: Future
Needs of the U.S. Surface Transportation System,” is the first of
six reports being prepared by AASHTO to assist the National Surface
Transportation Policy and Revenue Study
Commission.
The report
advocates a three-cent increase by 2009 to sustain guaranteed levels
of highway funding, and an additional seven-cent increase between
2010 and 2015.
Federal gas
taxes have not increased since 1993, when the rate increased by 4.3
cents to 18.3 cents per gallon. AASHTO says that if the tax is not
increased, the Highway Trust Fund will be drained by 2008 or
2009.
The report can be
viewed at http://www.transportation1.org/tif1report.
EIA PREDICTS INCREASED
GASOLINE, DISTILLATE PRICES IN COMING WEEKS
According to the Energy Information
Administration (EIA), retail gasoline prices across the U.S. rose
sharply last week, increasing 12 cents to $2.50/gallon average.
Prices are now 17 cents/gallon higher than last year. Diesel fuel
also continued climbing, increasing 7.5 cents last week to
$2.62/gallon average nationwide.
EIA’s Short Term Energy
Outlook, released this week, predicts that prices will continue to
climb over the next few weeks. Average monthly motor gasoline prices
are expected to increase by nearly 40 cents per gallon from February
($2.28 per gallon) through June, peaking at $2.67 per gallon. Rising
crude oil prices and seasonal demand were cited as reasons for the
expected increase. However, the projected average of about $2.60 per
gallon for the upcoming driving season (April-September) would be
about 20 cents per gallon less than last year’s driving season
average.
Likewise, residential heating oil prices have
increased for the past six weeks, averaging $2.49/gallon, an
increase of 5.3 cents from this time last year. EIA estimates U.S.
heating fuel expenditures for the winter of 2006-07 at $898, a
decrease from last winter’s $948.
EIA reports that world oil
markets have tightened in recent weeks in response to OPEC
production cuts and the return of cold winter weather in North
America. Additionally, February’s cold weather and higher demand for
heating fuels reduced petroleum inventories more than expected and
raised spot prices for crude oil and natural gas, which had fallen
in January.
For a copy of EIA’s Short Term Energy Outlook, click
here.
ARE YOUR DIESEL DISPENSERS
LABELED CORRECTLY?
EPA has advised PMAA and other groups that they
are beginning to enforce labeling and downgrading requirements of
the diesel sulfur rule. Now is the time for every diesel retailer to
check his dispensers and make sure they are labeled correctly. It is
extremely important that the retailer make certain that the label on
the dispenser is a ULSD label - if the retail facility is receiving
ultra low sulfur diesel (ULSD) and has completed transitioning their
tanks to ULSD. EPA rules limit the amount of product that can be
downgraded at a retail facility to 20 percent between October 15,
2006 and May 31, 2007. EPA believes that retail facilities that
continue labeling ULSD as low sulfur diesel may be in violation of
downgrading restrictions and has said they will begin fining
retailers for non-compliance if they find mislabeled
dispensers. |
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