Big Gains

Last year was a busy one for the NACS government relations team. Although Congress appeared to focus on little else than impeaching President Trump in the House, there were a lot of legislative developments behind the scenes on Capitol Hill and at the White House that NACS actively engaged with as advocates for the convenience and fuel retailing industry.

Tobacco

NACS engaged in a multifaceted campaign to protect the convenience industry’s ability to sell e-cigarettes on a level playing field.

NACS worked with members of Congress to coordinate letters to the Trump Administration opposing efforts by the U.S. Food and Drug Administration (FDA) to ban convenience stores from selling flavored e-cigarettes, while allowing adult-only stores and the internet to sell them. In final guidance issued in December, the agency dropped the proposed restriction on convenience store sales.
In November, when President Trump convened a meeting on the issue of flavored e-cigarettes at the White House, NACS President and CEO Henry Armour participated in the meeting as a voice for the convenience retailing industry.
NACS worked with legislators to update the Prevent All Cigarette Trafficking Act to prevent minors from purchasing e-cigarettes by requiring an in-person ID check upon delivery of internet purchases. The House passed the act by a voice vote on October 28, and the Senate is considering its version of the legislation.

Fuels

Regulatory and legal activity focused on parts of the Renewable Fuel Standard (RFS) and the sale of E15, with positive outcomes for the convenience and fuel retailing industry.

The Environmental Protection Agency (EPA) finalized new rules providing for the year-round sale of E15 and making certain changes to the Renewable Identification Number (RIN) market under the Renewable Fuel Standard.
The EPA largely followed the suggestions of NACS on both matters by implementing new disclosure requirements to improve transparency in the RIN market and immediately enacting a one-pound RVP waiver for E15, which enabled fuel retailers to offer it to their customers right away.
The D.C. Circuit Court of Appeals decided to dismiss all challenges to the EPA’s existing Point of Obligation for the RIN program. The decision agreed with many of the arguments NACS had made in an amicus brief filed on the topic.

Transportation

As Congress began working on a highway and infrastructure bill, several proposals were raised during committee hearings, including one to lift the current ban on rest area commercialization.

During a hearing in May, a representative from Arizona spoke in favor of commercializing rest stops, which is contrary to what NACS had been advocating.
Working with a broad coalition, NACS worked to educate and convince this representative to no longer support commercializing rest areas.
The Senate Committee on the Environment and Public Works voted out of committee its version of a highway bill, and it did not include any language to overturn the existing ban on rest area commercialization.

Supplemental Nutrition Assistance Program (SNAP)

NACS saw its efforts bear fruit regarding the forced disclosure of retailer sales data on SNAP and on a proposal outlining the way retailers can meet food variety requirements.

In 2018, the U.S. Department of Agriculture (USDA) produced an updated retailer SNAP application that sought sensitive sales information from retailers. NACS raised concerns, and the USDA removed the problematic questions from the 2019 SNAP application.
The United States Supreme Court ruled against a South Dakota newspaper seeking records on retailer SNAP sales data under the Freedom of Information Act. The Court ruled the data are confidential and sharing them could harm the companies. The ruling followed an amicus brief filed by NACS, along with the National Grocers Association and National Retail Federation. The Court followed some of the rationale NACS put forward in its brief.
In April, the USDA Food & Nutrition Service (FNS) issued a proposed definition of “variety” as it relates to eligibility requirements. NACS has advocated for FNS to expand the definition of variety and believes the agency’s proposed definition would give retailers more flexibility to meet requirements. NACS will file public comments on the proposal in June.

The true strength of the NACS government relations team comes from the involvement of NACS members.

Online Gaming

NACS worked to defeat legislative efforts to nullify a favorable 2019 Wire Act opinion.

In early January 2019, the Department of Justice (DOJ) announced a new opinion on the legality of internet gambling under the Wire Act. It reversed the opinion it had issued on the subject in December 2011, an outcome that NACS has been advocating for with congressional leaders and DOJ staff for the past seven years.
As legislation to fund the government in fiscal 2020 began, NACS learned that Rep. Hal Rogers (R-KY-5) and other members of Congress were considering amendments that would nullify the 2019 DOJ opinion and provide loopholes for state lotteries. After NACS met with Rep. Rogers’ staff, he chose not to offer the amendment.
Hearing of several similar amendments, NACS met with the authors and sent a letter opposing those amendments to the House Rules Committee. Ultimately, amendments initially offered by Reps. Andy Barr (R-KY-6) and Chris Pappas (D-NH-1) were withdrawn, and the Rules Committee defeated an amendment by Rep. Hank Johnson (D-GA-4).

Labor

The U.S. Department of Labor (DOL) was busy last year on wage and hour issues, most notably the overtime rule and the rules governing joint employment status.

In 2019, the National Labor Relations Board issued a proposed update to its Joint Employer standard. The proposal largely follows comments NACS submitted and would be a win for the industry if finalized.
The DOL followed suit by finalizing a new overtime rule, which largely follows what NACS advocated. The DOL also released a proposal on the Joint Employer standard that largely follows NACS comments. The agency issued the final rule in January 2020.

Taxes

A few days before Christmas, Congress passed major legislation to fund the government for the 2020 fiscal year.

The legislation contained several significant tax provisions important to the industry. Most notably, the legislation included a retroactive renewal and extension of the biodiesel blenders tax credit. The $1 per gallon tax credit was retroactively renewed back to its expiration in 2018 and extended through 2022. The legislation also included an extender for the oil spill liability tax, which took effect on January 1 but was not made retroactive.
Other notable provisions were the extension of the Work Opportunity Tax Credit for 2020, the repeal of the so-called “Cadillac tax” on certain employer sponsored health insurance plans and the scheduled repeal in 2021 of the health insurance tax. Both of those taxes originated in the Affordable Care Act and would have driven up the price of health insurance for businesses.

Along with the work of the NACS government relations team, NACS members were incredibly influential last year. Convenience retailers sent more than 5,300 messages to their representatives in Congress. Every member of Congress was contacted by at least one member of our industry. Additionally, the NACS In Store program, which provides members of Congress a first-hand look at how our stores operate, completed 15 more events and celebrated the 100^thIn Store with a bipartisan event in Washington, D.C.

The true strength of the NACS government relations team comes from the involvement of NACS members, who live and work in the industry every day, and we are truly thankful for your help.