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 EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS! 

ENERGY MASTER PLAN, DINOSAURS, MILEAGE TAX, SEMINAR REMINDERS…SAD NEWS 

di•no•saur (noun)
1. extinct reptile: an extinct, chiefly terrestrial reptile that lived in the Mesozoic Era. Some dinosaurs were the largest known land animals.
2. outmoded person or thing:  somebody or something that is hopelessly out of date or incapable of adapting to change

The definition above is taken directly from the dictionary.

On Tuesday, Eric Blomgren, our Government Affairs Assistant, and I attended the New Jersey Energy Master Plan Alternatively Fueled Vehicles Work Group in Bordentown.  This meeting was hosted by BPU President Lee Solomon and chaired by NJ Clean Cities Coalition Chairman, Chuck Feinberg.  I testified to make certain that gasoline retailers and auto repair shops are included in the state’s future plans for vehicle fuels.

For anyone who doesn’t know what this is about, the state has an extensive Energy Master Plan (EMP) that has historically dealt with the consumption, distribution, and supply of energy.  In most instances, this has been entirely focused on how your utility company gets energy to state residents, businesses, and government entities (think about the electric company, gas company, etc.). 

However, a portion of the EMP is now focused on how state motorists will fuel their vehicles today and in the years ahead.  You’ll recall from reading our other publications – and most recently the Energy Examiner in our latest OTR – that we’ve been giving you periodic updates on alternative fuels and the larger energy industry.

You can read the NJ Energy Master Plan Alternative Fueled Vehicles Report by clicking HERE

I have mentioned more than once that you must stop thinking as if you are in the gasoline and diesel business – you MUST BEGIN THINKING LIKE YOU ARE IN THE TRANSPORTATION ENERGY BUSINESS.  You must stop thinking that you service and repair gasoline and diesel fueled vehicles – YOU MUST BEGIN THINKING LIKE YOU SERVICE TRANSPORTATION VEHICLES NO MATTER WHAT THEY ARE FUELED WITH!  This will not be the last time that you hear me say those words.

Why?  I am presiding over a period in time when the members that I serve have entered an era of change.  This change has been taking place for 30 years since I was a young man that owned an Exxon station during the 1979 Iran Oil Embargo.  Basically, if I don’t get you to begin thinking in a forward and progressive manner –I fear that many of you will go the way of the dinosaur.

I keep informing you that gasoline consumption is down.  Sometimes it doesn’t sink in because it is a very slow and subtle decline.  Think about it.  Every vehicle that is sold that operates on electricity is a vehicle that is not using gasoline.  More and more of these vehicles will be on the road in the future.  The State and Federal Governments are both trying to incentivize the purchase and use of electric and alternate fueled vehicles.  The NJ Energy Master Plan that I mentioned above suggests that more incentives be given to make it easier for consumers to buy alternate fueled vehicles, and for businesses to offer alternate fuels for motorists to buy.

The big word kicked around is INFRASTRUCTURE.  I am trying to stand up and scream that an infrastructure already exists in NJ.  There are about 2500 gasoline stations that are already fueling vehicles and have been doing so for a hundred years.  The existing infrastructure is YOU!

In coming months I will be providing you with information that will help you consider adding alternate fuels like electric charging stations, natural gas and propane, E85, and yes even hydrogen.  I want you to consider making a niche for yourself by learning how to make your repair shop a place where motorists feel comfortable bringing their electric vehicle, or their propane fueled vehicle for service.

IT IS TIME TO BEGIN THINKING DIFFERENTLY!  Candle makers that ignored Thomas Edison’s invention of the light bulb learned first hand about the dinosaurs.

Electric vehicles present a big problem to you if you are not part of the evolution.  Shopping malls, rest stops, and restaurants will all be considering electric charging stations for customers to hook up to while patronizing their establishments.  It is imperative for your survival that you are in the mix too.

Not only are the number of electric vehicles set to increase (Ford, Tesla, Mitsubishi, and a few other brands are planning all-new models), but the public seems to be accepting of them for ordinary local use.  Where do you think these motorists will be charging their battery-driven cars?

In nature, business, and everyday life, it’s always been about the survival of the fittest.  It’s practically the bedrock rule of competition.  Don’t believe me?  Ask the dinosaurs.  These fearsome critters were kings of the planet for millions of years, but even their solid-perch on top of the food chain eventually came to an end.  They’re extinct because they couldn’t change and adapt to the environment around them. 

The business world isn’t so different -- those who acclimate and overcome help guarantee their continued survival tomorrow.  As I have been harping for some time now, my objective is to have you stop thinking like dinosaurs and start thinking about how to evolve.  If you wish to be in business 10 years for now, you’ve got to start looking ahead or you’ll cease to exist.

But PLEASE…..look at this with a positive attitude!  This evolution will create great opportunities and exciting new business prosperity.  Plan to be a part of the success!...NOT the decline.

Of course while all of this evolution is taking place, there will still be plenty to work on as we deal with all of the issues and problems associated with the sale of gasoline.  We will still be using gasoline for years to come.  I am not trying to scare you – I am simply trying to have you thinking more about the future at a faster pace than normal.

Think of it this way: There are roughly 165,000 gasoline stations nationwide, but that number is expected to drop to 125,000 by 2020.  The sad truth is that some of us may not survive IF we don’t start planning today.  And I’m not just talking about fueling the cars of tomorrow, but servicing them as well.  Anyone who has a repair shop has to consider these implications long-term.  Just over the last 15 years the average car has more in common with a computer under the hood than it does a motor.  This has meant that your technicians, mechanics, and emission inspectors have had to learn how to service these vehicles above and beyond turning wrenches and replacing filters.  What will that mean tomorrow when you’re working on an electric motor instead of an internal combustion engine?  What will it mean when the techs you employ need to fix a hydrogen fuel cell? 

It’s my job to help keep you informed on these changes down the line, but only you can get educated and make business decisions.

Of course, alternatives and green energy bring along another set of problems that some of us might not anticipate.  A few weeks back when we last discussed this topic, I mentioned that gasoline tax revenues have been steadily falling.  The reasons for this vary, but as more motorists purchase vehicles with greater fuel economy or people commute less (either through ‘tele-commute’ agreements with their employers to work from home or because they are just out of work), the impact is the same: less money for road and infrastructure repairs.

As such, government bean counters are going to look for a way to hike their income (i.e. tax dollar revenue) in other ways.  That may mean hiking the gas tax, which we have continually railed against.  It may also mean inventing new ways to pick your pocket, through fees, fines, and new taxes.

Keep in mind that when gasoline and diesel consumption goes down, the government collects fewer taxes to repair roads and bridges.  They will have no choice but to find new ways to generate revenue.

Right now, Michigan is thinking about eliminating the excise tax on gasoline and creating a new sales tax.  It hasn’t been approved yet, but can you imagine the logistical nightmare that would ensue if you were to collect a sales tax on gasoline that had to be remitted each month?  A stationn pumping 100,000 gallons a month would be remitting about $21,000 every month to the State of New Jersey.  I am not in favor of that and I will work to steer the Governor and legislature in another direction.

What about the technological limitations at your pumps, or for that matter, the ‘human’ limitations of asking your employees to calculate a sales tax on the spot for your customers.  Yeah, not a pleasant thought.  Let’s just hope Legislators in New Jersey aren’t checking up on what they’re considering in Michigan.

Another way they are seeking to do this is through a mileage tax.  Basically this works on a technology much like your E-Z Pass.  A device keeps track of the distance you drive – the more you drive, the more you are taxed by the government.  Those dollars are then used to pay for road related projects.

Look for insurance companies to begin using such devices to determine the premiums that you pay.  A car with heavy mileage will be paying more than a car traveling fewer miles……AND they will monitor your speed and other driving safety factors too.   A person who speeds regularly will pay more for insurance.  So you see…EVERYTHING is evolving.  You may get tired of hearing me discuss these things…but TOUGH…it is my job to let you know what is happening out there. 

You can read more on this by clicking HERE

While seemingly far-fetched now (they still need to figure out a way to implement this and pay for the overhead) it could become a reality if the gas tax dwindles further.  And that’s exactly what many of us suspect will happen all too soon.  When more cars start using electricity, compressed natural gas, and sip less fuel through higher-economy engines/hybrids, it will only create more pressure to come up with another fundraising scheme.

I’d like to remind everyone of two important items:

1. You are running out of time to sign up for our Calibration and Regulatory Seminars!  As our repeated Events & Announcement messages this week have indicated, we’ll be hosting these events next week – and time is growing short!  If you haven’t signed up already, you must call NJGCA to RSVP today!  Call 973-376-0066 to confirm your attendance. 

2. Last week we notified you about a new NJ Emission Inspector Training class we are offering on November 16th.  This class is for anyone who wants to become a licensed Motor Vehicle Emission Inspector and includes the New Jersey State Specific Curriculum. If you are interested, please check out the details below, and then call Debbie Hill at our office to register!  Don’t miss this opportunity!

Sadly we are closing this week’s message on a heartbreaking note.  It has been brought to our attention that a longtime member recently lost an employee while on the job.  NJGCA Member Nick Testa, owner of Nick’s Towing Service in Rutherford, lost a ten year employee driver Mark Angelo on November 14th.  Mark was struck by a tractor trailer while loading a customer’s disabled vehicle on a ramp.  Our heartfelt condolences go out to the Angelo family and certainly to Nick and his employees. 

Nevertheless, we hope that this terrible loss serves as a reminder about the commonplace dangers that exist in the workplace.  No matter what kind of business you run in our industry, the safety of you and your employees must be of paramount concern.  In memory of Mark, and in light of the pain Nick Testa and his employees are currently enduring, please take a few extra moments in the weeks ahead to make sure you are running your establishment safely and securely!    

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

11/3/2011:
Data shows that poverty rate is increasing in working-class municipalities
A recent study by the Brookings Institution states that, in working-class municipalities throughout New Jersey, the poverty rate has increased substantially in the last decade.  Towns such as Carteret, Union Township and Garfield were cited in the report and saw their poverty rate rise by 5 – 10 percent.  The study classified those making less than $22,314 a year for a family of four as ‘poor’.

11/3/2011:
Reforming education a big part of the Legislature’s agenda
State education officials anticipate that the Legislature will act on a variety of education reforms after next week’s election.  Governor Christie has also publicly said that education reforms will be a large part of his focus for the next year.  Among the items that are expected to be on the agenda are a proposed school voucher program, teacher tenure reform, and possible changes high school graduation requirements.

11/3/2011:
Voters to decide next week on whether to merge two municipalities
As local governments continue to struggle with budgetary matters, Princeton Borough and Princeton Township in Mercer County are set to decide next week whether or not to merge their towns in an effort to curb their financial hardships and save $3.2 million a year.  If approved, it would be the first merger of its kind since 1997, when Pahaquarry Township in Warren County was dissolved and merged into Hardwick.  Though the two towns have considered consolidating three times over the last 60 years, locals believe that the consolidation effort can succeed, thanks to the support of 10-member commission that studied the merger plan over 2 years and the support of state leaders like Governor Christie.

11/2/2011:
NJGCA in the News: Risalvato talks alternative fuels
Executive Director Sal Risalvato recently spoke with reporters after having attended the Alternative-Fuel Vehicle Working Group.  To see what Sal had to say, click on the link above!

CLICK HERE TO READ MORE ARTICLES IN OUR “NEWS AROUND THE STATE” ARCHIVE 

MEMBER BENEFIT PARTNER MESSAGE

TMP Energy Solutions
Another Way to Save on Your Energy Bills

We have had a number of NJGCA members successfully reduce their rate per kWh   signing up through our energy saving program. We know it’s difficult to collect 12 months worth of previous electric bills to get an “accurate” analysis when comparing a variable rate to a fixed rate, but we now have another option available. 

This new solution is a power purchase option; the other program is still in full force and has saved members thousands of dollars. If you sign up for the power purchase option, you will be grouped with other NJGCA members until the minimum KW demand is acquired. By pooling the member’s usage together, you will be able to take advantage, as large energy users do, and receive a lower kWh rate.

Each member will receive their own contract. Each member is responsible to sign and return the agreement the day it is received in order to secure the price for their group.

Please do your due diligence, so when you receive the proposal and the agreement you will be able to make an intelligent decision.

If by chance, you still want us to assess you bills, to give you a price to compare, we will require12 months of your most recent utility bills.

There are no bills required, but we would still like to have one bill per meter on file to check account #’s, meter #’s  service addresses and other pertinent information incase there is a problem.

The term of the agreement is for 12 months. During this term period, you will have price protection against any energy price increases along with a low fixed kWh rate.

If you are interested in becoming part of this power purchase option, please contact Phil Apruzzi at the NJGCA.

Remember when you sign up your energy through the NJGCA Energy Program, TMP makes a considerable donation to the NJGCA Scholarship Fund through their proceeds. This has no affect on your rate, and costs you nothing out of pocket.

We hope to help hundreds of NJGCA members reduce their utility costs by participating in this and our other cost reduction programs.  Our purpose, in the endeavor, is to help NJGCA members lower their energy costs while supporting the NJGCA Scholarship Fund. 

Contact Phil Apruzzi at 973-376-0066 or email Phil at phil@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.