August 01, 2014

Dear NJGCA Member:

Thank you for reading this week's NJGCA Road Warrior!

Here is what you will find in this edition:

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

RECENT DISCUSSIONS ABOUT SAFETY INSPECTIONS
NEW EXXONMOBIL TECHNOLOGY TO BE RELEASED IN 2016
LEGISLATIVE UPDATES: CHINESE TARIFFS AND AGING TIRES

Earlier this week, at a town hall meeting in Belmar, a concerned citizen asked Governor Christie to bring back safety inspections. Christie replied, "Sam, you are in the minority. I’ve not found many people who say ‘Get me back to that inspection station as quickly as possible.’" His reply was typical Governor Christie, however, it does reinforce what I've been saying. Though I expect positive changes in the inspection system, bringing back safety inspections is completely off the table. But, this question did spark news reports, and even led to a one-hour debate on NJ 101.5 radio where most callers indicated that they think that safety inspections ARE a good idea, agreeing with the NJGCA position.  There were even several repair shop owners that called in to have their opinions heard, and I appreciate your public support and comments on this issue!
 
Next, I have an important message for all Exxon dealers. Many of you are aware of this issue and have already called my office to speak to me about it. However, if for some reason you have not heard about this yet, it is important that you have a discussion with your distributor, and then call me if any questions remain unanswered. 
 
Here's the news: By 2016, ExxonMobil plans to roll out its new technology platform known as "EM1".  The technology is designed to lower transaction fees and provide a wider variety of payment options, giving consumers the ability to pay for fuel using their smart-phones. However, the upgrade could cost a few thousand dollars, and if branded retailers fail to install the new equipment, they'll be booted off ExxonMobil's payment network. Exxon intends to pull the plug on its current payment technology in less than two years and has said the program is 'mandatory'.  Its existing card processing system will be shut down on Dec. 31, 2015. Penalties kick in for sites that fail to complete the upgrade by July 1, 2015.

Lastly, I have two important legislative updates for you, that were reported to me by our national association, SSDA.
 
SSDA reported, "According to the United Steelworkers union, the U.S. Commerce Department decided in its favor on July 15, granting the USW legal standing to pursue additional duties on imported China-produced consumer tires. The Commerce Department ruling came three days prior to the established deadline for it to determine the union’s legal standing to seek such government action. In a press release, USW International president Leo Gerard said, 'The USW is pleased that the Commerce Department has completed a poll of domestic companies involved in the manufacture of passenger vehicle and light truck tires. That poll verified the union has official legal standing to bring the anti-dumping and countervailing duty petitions in a trade case against passenger and light truck tire imports from China.' The next step, according to the union, is a review and vote by the U.S. International Trade Commission (ITC), which is slated to make a preliminary injury determination on August 1. Should the ITC favor the union’s position and rule that imported China-produced consumer tires “materially injure” the US tire industry, the Commerce Department could issue a preliminary countervailing duty ruling in September, and make a preliminary decision on the union’s antidumping petition in December.

Additionally, if you are in the repair business, you might be aware that there are some issues that are emerging dealing with tire aging.  We have written about this before, and will continue to keep you updated as new information emerges.  The latest development is that earlier this month, the National Highway Traffic Safety Administration reported that they will not seek to create a safety standard based on tire age. The Tire Industry Association (TIA) and the Rubber Manufacturers Association (RMA) and the are hailing this decision as good news. 

That's all for now.  Thanks for reading.  See you next week!

Regards,
Sal Risalvato
Executive Director

CLASSIFIEDS! -- FOR SALE & HELP WANTED ADS 

Do you have a business for sale?  Are you looking for a new location or opportunity?

• NJGCA regularly assists members looking to sell their business by getting the word out.  Since everyone reading this message is involved in the small business gasoline retail, convenience store, and automotive repair trades, it is an ideal medium to connect with interested buyers and prospects!

NJGCA also helps members sell equipment by placing ads in the Road Warrior!

• 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

7/30/2014:
Hess Retail Sale Expected to Close by Year-End
Marathon Petroleum Corp.’s Speedway LLC division announced in May that it will purchase the Hess c-store and gas station division for $2.874 billion, comprising $2.6 billion in cash and $274 million for gas station leases. Hess Corp. expects the sale of its 1,256-store retail division to close by the end of this year. Once the sale is completed, Speedway will have more than 2,700 company-operated stores, good enough to be the second-largest convenience store chain in the country in terms of number of stores. The acquisition will also expand Speedway’s retail footprint from nine states to 23. Conversely, this retail division sale marks the final hurdle Hess needs to clear before transitioning to a pure-play exploration and production oil company. Hess announced that it intends to pursue the formation and initial public offering of a master limited partnership (MLP) of its midstream assets. According to the company, it intends to use the MLP as the primary vehicle to support its Bakken shale production growth.
 
7/30/2014:
NACS Speaks Out on Tobacco Tax Evasion
In response to the U.S. Senate Finance Committee's meeting on tobacco tax evasion, NACS, the Association for Convenience & Fuel Retailing, issued a statement to provide background information on the issue. The statement, entitled "Tobacco: Taxes Owed, Avoided and Evaded" was submitted by Lyle Beckwith, senior vice president of government relations at NACS. The letter details how the illicit sale of tobacco products puts convenience store retailers at a severe competitive disadvantage. The primary channels through which illegal sales occur include: Native American tribes and tribal leaders who evade state taxes on sales of tobacco; non- face-to-face transactions, like Internet sales; tobacco manufacturers who evade recent tax increases for cigarettes, roll-your-own (RYO) tobacco and little cigars by mislabeling RYO tobacco as "pipe tobacco"; and transport of cigarettes from low-tax states to high-tax states for sale on the black market at a substantial discount compared to retail prices.

7/27/2014:
New Lithium-Ion Battery Uses Peroxide To Boost Energy Density By 7x
All electric vehicles currently in production use some form of lithium-ion chemistry in their battery packs. Finding ways of improving that chemistry is therefore very important -- the aim being to make future electric car batteries cheaper, more stable and more energy-dense for longer range. Researchers from the School of Engineering at the University of Tokyo have found a way to develop a lithium-based battery with seven times the energy density of current lithium-ion batteries. This has, at least theoretically, each of the major benefits you'd expect should it be introduced in production form -- lower cost, greater capacity and increased safety.

TRAINING CLASSES!!
-ALL CLASSES WILL BE HELD AT NJGCA HEADQUARTERS-
66 Morris Avenue - Springfield, NJ 07081 (Union County)

NJGCA is pleased to offer the NJ Emission Technician Education Program, starting in August. It is the ETEP Certification Course, the entire program, sections 1-8.  This is everything you need to become a licensed Emission Repair Technician.  Tests are given throughout the course and technicians that pass will receive a certificate stating that they successfully completed the New Jersey Emission Technician Education Program (ETEP). NJGCA has provided this program to the NJ Department of Transportation, UPS and NJGCA Members throughout New Jersey. Our pass rate in this class is 100%.

FOR INFO ABOUT THE 8-WEEK ENTIRE EMISSION TECHNICIAN EDUCATION PROGRAM (ETEP) CLASS -- SECTIONS 1 TO 8 -- TO BE OFFERED ON WEDNESDAYS DURING AUGUST AND SEPTEMBER, PLEASE CLICK HERE  .

FUTURE CLASSES 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 BOARD:

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 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.