 |
||||||||||||
 |
February 22, 2013 Here is what you will find in this edition:
JOIN NJGCA ON FACEBOOK -- CLICK HERE EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
TRAINING COURSE DEADLINE
MARKET VOLATILITY AND GAS TAX REVENUE MOTOR FUELS LICENSE RENEWALS DUE GENERATOR MADATE FLAP Before we get into the meat of this week’s message, a quick announcement: The last few weeks we have advertised that NJGCA will soon host an Emission Technician Education Program (ETEP) training course. Due to a conflict, the course has been delayed by one week and will now be starting next week on Wednesday, February 27th. If anyone is interested (and you should be) the time to sign up for the class is drawing to a close! The certification course is good for anyone seeking to become an Emission Repair Technician (ERT) or for anyone who needs to get recertified. Our course program is state approved and we have had a 100% pass rate. Who should take this course? If you are an Emission Repair Facility (ERF), if you have a new employee who needs certification (or recertification), if you are looking for a new way to serve your customers and generate revenue, you should be attending! See details below or download our course application by CLICKING HERE, then contact Debbie Hill at debbie@njgca.org or at 973-376-0066. If you have been in this business long enough (and even if you haven’t), you know that market volatility is something that we all must deal with. Even as you read this, the market is in chaos once again and it is a well documented trend. For proof, all you have to do is look back at the statistics we’ve been documenting from 2007 onward. In fact, we mentioned it in our latest edition of On The Road. You can either dig up your copy or CLICK HERE to review what I wrote on Page 4 and what Eric Blomgren penned on page 19 to see for yourself. What do the numbers tell us? That, since 2007, demand is generally flat or down in the winter. So why are prices increasing, and if this trend continues, where will it lead? In last week’s Road Warrior, we talked about the possibility of the mileage tax replacing the gasoline tax at some point in the future (that is, tax you for every mile you drive rather than every gallon of gasoline you purchase). The week before that, we talked about Virginia’s current push to eliminate the gas tax and increase the state’s sales tax. While both are very different in how they tackle the issue of paying for road and infrastructure projects, the problem they address is the same: a decline in revenue from the gasoline tax because gasoline gallons sold simply has been flat. If you’re a bureaucrat, and you depend on projections for everything, that makes a lot of sense: The population grows, people buy stuff, the economy is stimulated, inflation and cost of living adjustments increase, and more people will buy more cars to be fueled with more gasoline -- which keeps the gasoline tax going. So what happens when that paradigm changes? What happens when engines become more efficient and consume less gasoline? Or for that matter, what happens when social perceptions change, people start “telecommuting” to work, younger people put off getting their drivers’ licenses, folks move to urban areas (where they don’t need cars), and take mass transit? Or, for that matter, motorists react to an offensive price of gasoline and moderate their driving habits and consumption. Obviously these factors have a definite affect on how much gasoline is sold and the gas tax revenues that are collected. Add in the fact that the government has mandated that the Corporate Average Fuel Economy (CAFE) reach 54.5mpg by 2025 and gasoline sales have nowhere to go but down. As we’ve stated before, you are increasingly fighting for a smaller piece of a smaller pie; the above examples are just further proof that this phenomenon is occurring at a hastened pace. That brings me to (re)beating a drum that I’ve silently set aside for awhile now: A shift to alternative fuels, and how they will affect consumers and your business. In June 2011, US Energy Secretary, Steven Chu, said, “In the past, America's policy has been to hit the panic button when prices go up and the snooze button when they go back down. This is not a sustainable solution for our economy or our security”. I happen to agree, and what’s more, a lot of other respectable outfits out there in our industry feel similarly: Moving even a portion of your business to alternatives will help insulate your business, give you an opportunity to make a profit, and make you less susceptible to the kind of market volatility that can cripple your establishment. Recently, Kwik Trip was surprised to see that their CNG operations were exceeding their expectations. CNG is cheap, affordable, and the fuel of choice for fleet customers and heavy equipment operators. If we are to ever get our transportation sector to eventually run on hydrogen or electricity (whether it’s nuclear-, solar-, wind-, or thermal-generated), it will be possible in part to alternatives like CNG bridging that technological gap. Our industry is finding the demand is greater than expected and is starting down this road unheeded. But where business doesn’t act, government will. In fact, New Jersey is getting closer to mandating certain alternative fuels (namely CNG, autogas, and hi-level electrical recharging points) at service stations! I’m not going to break out into an extended drum solo here, but for the moment, go back to the most recent OTR and review those pieces I referred to above. Remember, we are at the market’s mercy today, but don’t have to be tomorrow – it’s up to you and all NJGCA members. As we’ve stated recently, Motor Fuel Licenses may be expiring on March 31st and must be renewed. The NJ Division of Taxation sent out a renewal letter to all current licensees who expire in 2013 last December. The letter advised licensees to go to the NJ State Treasurer website, print out and complete the MFA-1 form, and return it with your $150.00 license fee payment. All renewed licenses are good for 3 years. You visit the Treasury’s Motor Fuel Tax Form page by CLICKING HERE or download the MFA-1 form directly by CLICKING HERE. Before you complete the form, however, please be aware that you will need to have some information on your distributor or supplier. You will need your distributor or suppliers’ business names and federal ID number in order to properly complete the form. Make sure you have this information available; if you submit the form with this information left blank, you will run the risk of rejecting or delaying the processing of your license. Once the MFA-1 form has been properly completed and submitted with the licensing fee, the Division of Taxation will review your application to see if there are any tax delinquencies associated with your tax ID number. A renewed license will then be issued once you are cleared of owing any taxes to Trenton. Please Note: If a licensee does not renew their license by March 31, 2013, the state will send a one-time follow up letter only. Today is February 22nd – Don’t wait to get this done! Download the form, complete it, and submit it with your payment NOW before you forget or get distracted! If you have any questions, please contact us. As a general update to our previous reports on the credit card surcharge situation, you’ll recall that we don’t agree with the idea of passing along surcharges to your customers, but want to protect your right to implement Cash/Credit Pricing at your establishment. Events are developing very quickly on this issue, so stay tuned! The fast moving legislation has run in to a little bump, but I do expect it will pass in the next few weeks as amended to exempt gasoline retailers and still permit cash credit pricing. Lastly, I wanted to revisit the issue of mandatory generator installations at retail locations. I’ve stated a number of times how I feel about this bill and you know what our position is. Recently I testified before the Assembly Homeland Security & State Preparedness Committee to make our concerns known. I’m pleased to say that some of them must have been taken to heart because I was invited by Chairwoman Quijano to attend a meeting later today to discuss the matter further. Also invited will be our friends from the Fuel Merchants Association and the New Jersey Food Council who have been in the trenches with us on this issue. I remain hopeful that ultimately we will be able to keep you from being burdened with the purchase of an expensive generator, however, Trenton remains unpredictable and I can’t make any promises. Unfortunately, not all the news I have on this is necessarily positive. After my appearance before the Committee, I was publically called out and criticized by Assemblywoman BettyLou DeCroce regarding my testimony on February 11th. In a press release, the Assemblywoman mischaracterized my statements before the Committee and seemed to think I was making light of the logistical devastation to the motoring public post-Sandy. To read her press release, CLICK HERE. As you can see, the Assemblywoman argues that any disruption in retailers dispensing gasoline to the public after Sandy was entirely based on a lack of electricity and not gasoline supplies. In her estimation, mandatory generators would have solved the problem. However, WE all know from our own experiences that this isn’t true. In fact, Communications Director Nick De Palma and I literally have hundreds of emails that we saved between the two of us documenting the supply shortfall. Not only do we have email correspondence from state, federal, and utility authorities, but something far more significant: the countless emails from members and non-members alike contacting us in a frantic need of gasoline deliveries. I’ve known the Assemblywoman for a time, and when I first read her press release, I got upset but decided to bite my tongue. Yes, I could have sunk to her level by issuing my own press release defending our position, but I didn’t want things to escalate. Unfortunately, my mouth wasn’t shut for long. I was contacted by a reporter who wanted my view on the situation and was compelled to reply in kind. Don’t get me wrong, I wasn’t nasty or disrespectful, but I didn’t mince my words. You can read the piece by CLICKING HERE. As stated, we have a number of emails documenting how difficult it was to get deliveries during Sandy, but I’m positive I didn’t hear from all of you. Several of you have already contacted me post-Sandy with your experiences in having power but no gasoline. A few, in fact, didn’t get a delivery for more than seven days. If I haven’t heard from you already, you would be doing me and yourself a favor by documenting your experience for the record. Put down what transpired during/after Sandy knocked out the supply chain, describe the challenges you faced, how your customers reacted, and when events were ultimately resolved. Then email it to me at sal@njgca.org so that I can keep a record of your first-hand experiences and pass them to legislators. Be ready for me to summon you to Trenton should I need your statement in a committee hearing. Stay tuned! Thanks for reading – See you next week! Regards,
Sal Risalvato
BUSINESS FOR SALE! If you'd like to list your business for sale, publish a location you're selling, or are seeking a business partner for your establishment, please contact NJGCA at 973-376-0066!
CLASSIFIEDS: FOR SALE & HELP WANTED! After running an ad in the Road Warrior over the last month, NJGCA was able to assist a member in selling his equipment! If you'd like to list equipment for sale, or have an open position you'd like to make other industry professionals aware of, please contact NJGCA at 973-376-0066 and let us help you get the word out!
NEWS AROUND THE STATE: THE NEWS YOU SHOULD KNOW 02/21/2013: Utility will spend $4 billion on overhauls post-Sandy In the aftermath of Hurricane Sandy, PSE&G will make a significant investment to raise or fortify substations and switching locations throughout the state in order to defend those locations from future storms and disasters. The idea is part of a larger, 10-year plan to improve the state’s electrical infrastructure. 02/21/2013: Legislation to crackdown on cigarette smuggling advances Earlier this week, the Senate Law and Public Safety Committee passed a measure cracking down on cigarette smuggling. The proposal will increase penalties for importing, selling, distributing, transporting or possessing with intent to sell counterfeit cigarettes. It is estimated that 40% of all cigarettes smoked in New Jersey were smuggled illegally into the state, costing nearly half a billion dollars in lost tax revenue. The bill will now go to the full Senate for consideration. 02/21/2013: Regardless of rhetoric, Road, bridge conditions improving A new report by the Reason Foundation has found that state and national roads are actually in better shape than many believed. A compilation of data from 1989 to 20008 has found that infrastructure improved in all states even as fatalities fell. Click above to read more. 02/21/2013: State revenues climb, but shortfall still anticipated State tax revenues rose in the period following the end of Hurricane Sandy, reflecting an increase in consumer spending. However, revenue experts still believe New Jersey will still fall short of budget projections for the current fiscal year. Any tangible shortfall must be made up by further budget cuts or borrowing. Click above to read more.
TRAINING CLASSES!!
PLEASE NOTE, THIS CLASS HAS BEEN
EMISSION TECHNICIAN EDUCATION PROGRAM (ETEP) COURSE PLEASE NOTE: FUTURE DATES WILL BE ADDED UPON REQUEST AND ACCORDING TO DEMAND. CONTACT DEBBIE at 973-376-0066 or DEBBIE@NJGCA.ORG TO LET HER KNOW YOU ARE INTERESTED IN TAKING A SPECIFIC CLASS. THIS WILL ALLOW US TO GAUGE YOUR NEEDS AND KEEP TRACK OF THOSE WISHING TO PARTICIPATE!!
MEMBER BENEFIT PARTNER MESSAGE
TMP Energy Solutions 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 Greg Cannon 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 GREG CANNON at 973-376-0066 or email Greg at greg@njgca.org. Mention that you are interested in saving money on your energy bills. NJGCA & TMP Energy Solutions will handle all the rest.
POLITICAL PARTICIPATON: THE NJGCA PAC
Promoting our agenda in Trenton is of utmost importance to NJGCA and our members.
To truly understand the importance of supporting our allies, consider our successes in Trenton:
We defeated BELOW COST SELLING We made history in getting FIRST RIGHT OF REFUSAL signed into law! We have built large support for RIGHT TO REPAIR and got it passed out of the Assembly We defended your small business against the false accusations of Attorney General Anne Milgram We gained wide support to move New Jersey to an all PIF Inspection System and close the CIF lanes ...and MUCH MORE!! In each instance, we achieved these goals with the help of our friends in the Legislature! If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call.
THE MEMBER TOOL BOX
MEMBER SAVINGS PAGE |
|||||||||||
 |
||||||||||||
