May 13, 2011

Dear NJGCA Member:

Here's what you'll find in this edition of the NJGCA Road Warrior, and thank you for reading:

EXECUTIVE DIRECTOR'S MESSAGE: GREETINGS & SAL-UTATIONS!
•The Market Rollercoaster continues, sign bill, and more

NEWS AROUND THE STATE
•School Funding:  Proposal would distribute funding evenly to all students
•Evesham Town Hall: Governor vs. Gas Tax Hike
•Push is on to reform N.J. pensions by end of June
•Politics: Use oil issue to fuel reelection bids

MEMBER BENEFIT PARTNER MESSAGE
•TMP: Residential Energy Solutions now AVAILABLE!!

REAL ESTATE FOR SALE OR LEASE
•Interested in acquiring or leasing a property?  See below!

A SPECIAL MESSAGE FROM BELLOMO FUELS
•Serving New Jersey since 1910 -- Over 100 years of supplying gasoline retailers like YOU!

TRAINING CLASS SCHEDULE
•Interested in a class?  Contact Debbie!!

POLITICAL PARTICIPATON: THE NJGCA PAC
•Participate in the NJGCA PAC today and help us keep our Agenda rolling in Trenton!

THE MEMBER TOOL BOX
•On the NJGCA Homepage
•Know your Territory Manager!

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

THE MARKET ROLLERCOASETER CONTINUES, SIGN BILL, AND MORE!

We all know that the marketplace has its ups and downs, but lately it’s been making the rollercoaster look like the merry-go-round!  In just the last few weeks we’ve seen the price of crude oil run up and down, even reaching $114 a barrel at one point, only to fall down below $100 several times.  Last Thursday, gasoline futures suffered their biggest daily drop since the start of the financial crisis in September 2008.  Last Friday some stations saw a 15 cent decrease in one day, only to watch it creep back up. 

The most recent energy reports are showing that crude oil inventories remain more than adequate.  Gasoline inventories are also adequate, although they may be a bit reduced; only due to the refineries switching over to the summer blend of gasoline.  Inventories can easily be brought back to normal simply by flicking a switch and operating the refineries at a bigger capacity.

Demand is flat at best, and many indicators point to a decline in consumption, even with the warmer weather and driving season upon us. If demand doesn’t increase it will send a major signal to investors, who will be forced to lower their bids and bring the price of oil and gasoline down for everyone. 

Now I can’t predict exactly what will happen in the future, but I can warn you about what has been a steady aspect of reality for the 30+ years that I’ve been in this industry: when the price goes up, the public will view YOU with suspicion and will blame YOU because of their ignorance about the industry. 

And when people start to get upset, you can bet it doesn’t take long for some self-serving politicians to start coming up with dumb ideas to make it look like they’re actually doing something with their time. 

I have mentioned many times over the past few months about the Sign Bill that is haunting the halls of the Legislature. A-3862 is a bill that would require gas stations to post the separate cash/credit pricing for all grades, meaning your sign might be required to have up to 8 different prices!  This is despite the fact that around 90% of fuel sold is regular gasoline (which is already required to be posted only IF you post your prices at the street AND you have cash/credit pricing).  Gas station owners are limited by municipal zoning ordinance or regulation as to the size and shape of the sign.  Under this bill the individual letters and numbers for each grade would be so small that no motorist would be able to see the price. Mandating all cash/credit prices for all grades of fuel at a gas station is simply not practical and would leave consumers less informed about their purchasing decision. This bill would certainly require stations to either purchase new larger signs (and get the approval of their local zoning board), or put an end to cash/credit pricing altogether. 

The bill was scheduled for a vote this past Monday, but once again we were able to have it held.  I came very close to sending out a special Wildfire Alert about the issue, but thankfully our behind the scenes work prevailed just in time.  I want to extend a hearty and meaningful THANK YOU to the staff of the Fuel Merchants Association of New Jersey (FMANJ), specifically Eric DeGesero and Kat Madaras.  They have been absolutely essential in fighting this legislation.

Many of you know that I have been struggling with some serious health issues over the past 4 months.  Because of several surgeries I have been unable to walk the halls of the Statehouse myself or even work from NJGCA Headquarters.  Our friends at FMANJ have worked with me and many legislators mostly by phone to stall this bill.  Our own Eric Blomgren who came on board as my Government Affairs Assistant just as my health issues began, has taken instruction well and has worked with FMANJ in my absence. He is certainly getting his Trenton experience in wartime conditions.  Thru the efforts of Kat Madaras we have built a strong coalition to oppose this preposterous bill that includes AAA, Weights and Measures, Department of Taxation, and Consumer Affairs.  I have personally worked the phones and have spoken to the Acting Superintendent of Weights and Measures Bob Campanelli.   Mr. Campanelli has assured me that the Department of Weights and Measures strongly opposes this legislation and has written to legislators expressing this view.

Our own discussions with legislators have been overwhelmingly positive.  It is increasingly clear that this proposal has mixed support in the Legislature and is just being pushed by one overzealous member, Assemblyman Vincent Prieto (D-Hudson).  You can help us convince the Assemblyman to remove this disastrous proposal by asking him to amend A-3862 to make it identical to the Senate version, S-847.  His office’s phone number is 201-770-1303 and his email is AsmPrieto@njleg.org.  Keep in mind that as gas prices rise it will become easier for Assemblyman Prieto to get other legislators to support his idea.  We must kill this as quickly as possible.

Our efforts with FMANJ are still ongoing in blocking A-3133, the bill that would let grocery stores cross market with gas retailers in a back door attempt to allow Below Cost Selling.  This bill was introduced back in September, and efforts to defeat its passage are ongoing.  However we’re not there yet, and stay tuned because we may still need your help soon. 

The media remains very interested in our industry and I have conducted numerous interviews from my home.  The common theme for these media types has been that retailers are getting fat off these high prices.  I was asked a few days ago to do an interview on Fox Business Channel.  They offered to provide both a wheelchair and car service in to NYC and I eagerly accepted. I relished the opportunity to defend you and set them straight about how the marketplace works in the gasoline industry.  Unfortunately the limo encountered serious traffic and we had to cancel the segment, as we were an hour late for the taping and still had not passed thru the Lincoln Tunnel, but I hope to reschedule it soon. 

Again I want to thank the staff at NJGCA and the staff at FMANJ for all of their help to carry the load in my absence.  Hopefully, I should be able to back in the office soon, even if only for a few hours a day.
Lastly, we’ve had someone contact our offices about an opportunity to buy or lease a property.  Please see the ad below if you are interested!

Thanks for listening - See you next week!

Regards,
Sal Risalvato
Executive Director

NEWS AROUND THE STATE

5/12/2011:
School Funding:  Proposal would distribute funding evenly to all students
Seeking to reassert it’s role in controlling how state dollars are spent, one lawmaker has introduced legislation that would revise the state’s controversial school funding formula by allocating monies evenly throughout the state.  In doing so, an equal number of dollars would be dispersed for every student, shifting huge sums of money from urban districts to suburban areas.  Critics contend that the formula would fail constitutional muster, but supporter say it is longer overdue.

5/11/2011:
Evesham Town Hall: Governor vs. Gas Tax Hike
Assembly Bill A-2718, sponsored by Democratic Assemblyman Albert Coutinho, would hike New Jersey's gas tax by 8 cents a gallon each year for the next three fiscal years. The Christie Administration says that amounts to a 228% spike. After three years, the increases would continue automatically, in line with inflation. "So that a legislature and a Governor never get to pass on the gas tax again," says Christie. The Governor says if this bill becomes law, New Jersey's gas tax in three years would become the second highest in the nation. It is currently one of the five lowest.
The Governor continues, "I think you all elected me in 2009 to end this madness…to have somebody there who's going to take the veto pen and say 'enough'."

5/11/2011:
Push is on to reform N.J. pensions by end of June
Despite slim support, state Senate President Stephen Sweeney is prepared to move forward with a plan to overhaul public employee pensions and health benefits before the end of next month, The Star-Ledger has learned.  Sweeney (D-Gloucester) has lined up a small group of Democratic senators who said they would be willing to join with Republicans to help ensure there are enough votes to enact sweeping changes to public employee benefits, four sources familiar with the plan said Tuesday.

5/11/2011:
Politics: Use oil issue to fuel reelection bids
Senate Democrats believe they have a political winner in using billions of dollars in oil industry tax incentives to both pay down the federal deficit and help their 2012 reelection chances.  Several members up for reelection — Sherrod Brown of Ohio, Claire McCaskill of Missouri, Robert Menendez of New Jersey, Debbie Stabenow of Michigan and Jon Tester of Montana — are leading the charge on a new bill that would take away $21 billion in industry incentives over a decade.

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

MEMBER BENEFIT PARTNER MESSAGE: 
TMP Energy Solutions Goes Residential!

NJGCA recently introduced you to a major solution to your energy bill for your business.  Through deregulation, you are given the option to choose your energy supplier. No longer are you locked into getting your electricity from one of New Jersey’s major energy distributors.

TMP Energy Solutions may help your business achieve cost reduction due to the deregulation of electricity generation. We have seen dramatic savings by several members who have taken advantage of this program for their businesses. Now TMP Energy Solutions has gone a step further in offering NJGCA members’ savings on their residential electric rates. Yes, that’s right. You may be able to save on your home’s electric bills too!

Here is what you need to do to verify your residential savings and to signup for TMP’s offering.
1. Have at least one of your latest electricity bills. Two would be great.
2. Call me at 973-376-0066.
3. I will do an online analysis of your bill to verify your savings.
4. If you agree to the Residential offering, we will work with you to complete the application.

TMP Energy has provided a residential energy supplier, Champion Energy, to offer NJGCA members the option to purchase their electricity for their home. The term of the Residential Agreement contract is for 12 months at the electric rate on the day your contract is signed. If you decide to end the contract, there is an early termination fee of $10 per month remaining in the contract.

NJGCA now provides you another way to save on your bottom line.  Additionally, any residuals dollars NJGCA receives from TMP Energy Solutions will go towards the NJGCA Scholarship Fund. You save and NJGCA funds the scholarship program for member children going onto institutions of higher learning. Let’s hear from you.

Oh, and don’t forget. If you are also interested in saving on your electric and natural gas bills for your business, all you need do is send copies of your last 3 energy bills to me by mail or fax. I’ll do the rest and let you know what your savings might be.
You have so much to gain and nothing to lose.

-Phil Apruzzi, Director of Membership
66 Morris Ave.
Springfield, NJ 07081
Phone: 973-376-0066
Fax: 973-3760766