GAS TAX UPDATE
ASSOCIATION MASTER TRUST ANNOUNCES DIVIDEND
EPA ANNOUNCEMENT RE: DIESEL TANK CORROSION
RIGHT TO REPAIR UPDATE & HEAVY DUTY TRAINING CLASSES

I took a short vacation last week, and going out of town with the gas tax still up in the air and being hotly debated caused me much anxiety.  However, legislators are very much still at odds over their different plans, and it seems that more people disagree today than three weeks ago.  While I no longer have to worry about conversations occurring without NJGCA's input, I still have to worry that the longer this issue goes without a solution, the more painful the solution eventually will be.
 
The NJGCA position remains the same: an increase in some form is inevitable… and NJGCA will not oppose any reasonable increase… it does not do us any good to look like obstructionists in a losing battle.  While NJGCA was not opposed to an increase of 23 cents as long as tax breaks such as the elimination of the estate tax were included in the plan, I am aware that many members, especially those that border NY State, are extremely concerned about losing their competitive advantage. Because NY’s bordering counties calculate motor fuels taxes based on a percentage of retail, we originally anticipated that NY’s tax would be about 10-12 cents a gallon higher than NJ.  With gas prices dropping again to $2 per gallon, the delta between NY and NJ will be significantly less.  As negotiations continue, we will now be working to get the increase lower than 20 cents.
 
However, NJ’s gas tax has not been raised in 26 years, and we have the second lowest tax in the nation… there are leaders in the majority party (Democrats) who want to raise the gas tax 40 cents/gallon because that is the “real number” needed to fix the problem!  So we have in effect already received concessions, since be have been successful persuading key legislators that 40 cents is too high, and that imposing sales tax on motor fuels is a disastrous idea.  We will continue to request that the tax be lower than 20 cents, but we also need to solve the TTF deficit problem!  We can’t risk the TTF still having a huge deficit resulting in the possibility of sales tax on gasoline all over again. (In addition to any gas tax increase that we will receive now!)
 
There are chess pieces being moved all over the board, and we don’t have a lot of pieces in our arsenal. I am trying to be as reasonable and realistic as possible with all sides. And yes, we have been working behind the scenes to have the Legislature seriously consider the implementation of self-serve to offset any increase in the gas tax. Earlier today, Eric and I met with a respected legislator who was adamantly opposed to our support of allowing self serve gasoline. This certainly will be an uphill battle, but it's one that NJGCA, and our members, are committed to.
 
Next, you should have all received the OTR magazine in the mail recently. Please pay particular attention to the dividend information (page 6).  These dividends are real cash and only NJGCA members can participate in our three great programs (health coverage, liability insurance and worker’s compensation). You simply can’t afford to ignore these opportunities, particularly with Association Master Trust. Recently, we have been able to piggyback on the Horizon Blue Cross OMNIA network, and our members are finding a significant savings on healthcare premiums.  No one is exempt from the high cost of health care premiums, period.  However, I am certain that if you compare apples to apples between AMT and other health insurance carriers, you will see a difference! Plus, we’ve paid out a dividend in 9 out of the last 10 years. I know that if you’re not in the AMT program, whoever is currently providing your healthcare coverage has not been sending you any dividends… when they have any money left over, they send it to their stockholders.   AMT sends it to our members!
 
Yesterday I received an email from EPA regarding corrosion in your diesel USTs. This issue was initially discussed by NJGCA in the July 2013 issue of the OTR, as a result of information presented at the NJ Petroleum Equipment Contractors Association (PECA) meeting at the annual Atlantic Region Energy Expo (AREE) tradeshow in May of 2013. It appears that the problem is growing and there are some additional concerns to discuss.
 
NJ DEP emailed me to request that I forward EPA’s email along to my members, and then I received an Oil Express Alert with a fairly decent summary of the information from EPA. I’ll give you the Oil Express recap, and then provide links to the complete information provided by EPA.
 
The Oil Express Alert, titled “EPA Data Suggests Widespread Corrosion in Diesel USTs” urges tank owners to check for corrosion after finding "moderate" or "severe" corrosion in most diesel fuel USTs involved in a recent study. The report shows that 83% of the USTs studied exhibited moderate or severe corrosion but less than 25% of tank owners were aware of corrosion prior to the internal inspection. EPA's notification recommends owners check inside their tank systems and further investigate the condition of their diesel fuel tanks. The EPA provides information on the actions tank owners can take to minimize corrosion and associated risks on their website: (https://www.epa.gov/ust)

To read the entire email I received from EPA yesterday, click here.
To view the report referenced in the email, click here.
 
Finally, a quick update on the implementation of Right to Repair.  As you know, last year we were successful in getting a national Right to Repair agreement in place that protected heavy duty vehicle repairers. The fight on the national front was led by the Commercial Vehicle Solutions Network (CVSN), and this week a new partnership to provide training for technicians in the heavy duty repair market was announced.  As heavy duty vehicles follow the trend of widespread computer integration that has long affected passenger vehicles, heavy duty repairers increasingly need new training in order to complete their repairs. Right to Repair gives us the codes, but we still need to know how to use them. For more information, you can read the press release from CVSN by clicking HERE.

Thanks for reading -- See you all next week!

Sal Risalvato
Executive Director

7/20/2016:
Split Over Transportation Funding in New Jersey Appears To Be Growing
Now nearly three full weeks old, the political impasse in Trenton over transportation funding is no closer to being resolved and there are some signs key leaders may actually be moving further apart. Recent reports suggest that Governor Christie was less than impressed with the latest TTF renewal proposal put forward by Senate President Stephen Sweeney (D-Gloucester) in private discussions.  Sweeney, for his part, appeared to be stung by Christie’s public criticism, and the Senate leader is now awaiting a counter offer from Christie even as the governor has seemed to put all state business on the backburner during the convention. The lack of progress on the TTF has left some advocates thinking that the best option may be for the leaders to abandon the goal of agreeing on a long-term finance plan and to focus on cutting a deal to enact a short-term fix based on new borrowing. Adding to the pressure is a continuing shutdown of state-funded road, bridge, and rail projects that experts say is impacting the state economy by sidelining thousands of construction workers during their peak season.
 
07/20/2016:
Smoking Ban Will Not Extend to All New Jersey Beaches and Parks
Last week, NJ was one step away from adopting what could have been the most comprehensive anti-smoking law nationwide and it’s likely to be at least 18 months before that opportunity arises again. Advocates of a proposal to ban smoking at all public beaches, parks, and outdoor sites statewide were pleased that Gov. Christie agreed to block cigarette use on state-owned lands, but a more comprehensive prohibition would have done much more to protect human health and the environment. However, a full ban at county- and community-owned outdoor sites will have to wait for a new governor. (Christie’s second term ends in January 2018.)  On Friday, Christie issued a conditional veto of the legislation (A893), noting that the state should not dictate how local communities use and police their public spaces. The Legislature can either vote to accept his proposed changes, which limits the ban to state-owned property, or gather the majority of votes required to override the governor’s decision – something that’s proven extremely difficult during Christie’s tenure.
 
07/19/2016:
New Jersey Drivers Fume as Road and Bridge Work Stops
Across New Jersey, residents accustomed to complaining about all of the road work undertaken during the summer months now have something different to moan about: Hundreds of those improvement projects have ground to a halt, victims of a political stalemate among state lawmakers. In many places, the orange cones and mesh netting are still in place, but the backhoes and road graders sit idle, as do more than 1,000 construction workers across the state. The long days and abundant sunshine of the season make it prime time for fixing the roads and bridges that keep things moving in New Jersey, which, like many states, is saddled with aging infrastructure. But for more than a week, those ideal conditions have been squandered as the state’s political leaders argue about whether and how to raise the state’s gasoline tax. With no agreement and the state’s TTF — which is financed by the tax — nearly drained, Gov. Chris Christie ordered that all work stop on a long list of projects throughout the state. That left the completion of construction scheduled for this year in jeopardy, said Anthony Attanasio, executive director of the Utility and Transportation Contractors Association of New Jersey.