INFLATION REDUCTION BILL INCLUDES PROVISION TO CLEAN UP SUPERFUND SITES
RISING NEW VEHICLE EXPENSES COULD MEAN GREATER BUSINESS OPPORTUNITIES FOR SHOP OWNERS
DID YOU RECEIVE YOUR ON THE ROAD NEWSLETTER?
GAS TAX
As the fall approaches, so does the decision on how to proceed with the state gas tax this fiscal year. Asthis article mentions, we can expect in the near future the Treasurer to announce the annual adjustment for state gas tax, or if there will be one at all. Tax decisions are made by analyzing state revenue from motor fuels taxes from July 1st 2021 to June 30th 2022. Based on how much revenue is generated from that and how many gallons are expected to be sold statewide in the current fiscal year, the Treasurer will determine if the petroleum products gross receipts tax (for gasoline and diesel motor fuel) should stay the same, increase, or should be cut. If the decision is made to change the gas tax, it will go into effect October 1st. A quick review of the data that has so far been made available to the public suggests to NJGCA that we should expect an increase of between one and two cents a gallon. An announcement will be made about what kind of change to the gas tax will be coming soon. Based on the last few years, if the tax will be increased, you will hear about it probably late in the afternoon on the Thursday before Labor Day. If they plan to keep the tax the same or lower it, they will likely make an announcement earlier.
"INFLATION REDUCTION BILL"/OIL FEE
Last week we mentioned the big legislation signed into law this week, called the "Inflation Reduction Act", which included policies addressing climate and health care, and a big increase in funding to the IRS. Also included are plans to reinstate the superfund tax on oil in the amount of 16.4 cents per barrel of crude oil. This, in theory, will be passed on by oil companies through gas and diesel prices. Although in practice, this should only amount to about a third of a penny per gallon of fuel. Money generated will be dedicated to help clean up the most heavily polluted Superfund sites, which New Jersey has a disproportionate amount. This effort is championed by New Jersey's Rep. Frank Pallone (D-Monmouth).
VEHICLE EXPENSES
A recent report from the National Association of Convenience Stores (NACS) indicates that the annual cost of new vehicle ownership has exceeded $10,000 a year.As compared to 2021, new vehicle ownership for 2022 has risen from $9,666 a year (or $805.50 per month), to $10,728 a year (or $894.00 per month). This reflects a 9% increase and over $1,000 more a year in expenses to consumers.
Such sharp ownership cost increases are factual realities that should be presented to regular customers contemplating a new car purchase. In repairing and maintaining their current vehicle, consumers will benefit from lower monthly auto-operating costs while also presenting your shop additional opportunities to service consumer vehicles. Please click on the link above to review the full NACS piece.
Educating automotive repair customers should be a foundational part of your patron outreach. Knowing that inflation and economic uncertainty may impact consumers' household expenses, small business owners should consider creative ways in which such information can be conveyed to customers.
ON THE ROAD
Our quarterly On the Road newsmagazine has been printed and mailed out. Did you receive your edition yet? You may have already received and read your copy by now, but if not, you can view it online on our website. CLICK HERE to view an online version if you have not received your printed copy yet.
All classes held at NJGCA HQ -- 4900 Route 33 West, Wall Township, NJ 07753
ASE Training Course - Reach Out Today!
Are you (or an employee) getting ready to take your A6, A8, or L1 in preparation to recertifying your Emission Repair Technician (ERT) credentials through the State's Emission Technician Education Program (ETEP)?
We can help --- but we need to hear from you, first! NJGCA wants to hear from students interested in our ASE-prep training program, so we can gauge demand and schedule our next session series.
As you know, the NJ Department of Environmental Protection (NJDEP) has always maintained a "dual-track" system to allow technicians to earn their Emission Repair Technician (ERT) credentials through New Jersey's Emission Technician Education Program (ETEP). In doing so, technicians were allowed to certify as ERTs through either an ASE-test track or an ETEP-educational class track. Starting on January 1, 2020, NJDEP amended the ETEP criteria, and the ETEP-educational class track was abolished.
Today, only the ASE-test track remains, and all ERTs must certify or re-certify their credentials though ASE to remain in the Program.
NJGCA has recently offered an ASE-prep class to help you get ready for the A6, A8, and L1. In doing so, students were welcome to participate in a ten-session preparatory class that covered material for all three ASE exams. We also had a handful of students who joined us only for the A8 or L1 sections.
Once completed, students took their ASE exams with a local ASE-approved test proctor (NJGCA can train you to prepare for the ASE exams, but are not permitted to offer the actual exam - students must make these arrangements individually themselves).
Building on that success, we are now seeking student participation in our next training series session. To make arrangements and organize a session, we need to hear from you!
The Inflation Reduction Act of 2022 includes incentives for businesses and individuals purchasing electric-vehicle chargers, but the Wall Street Journal reports that there are still permitting and supply-chain issues, and the financial support isn't all-encompassing. The bill was passed in the Senate, and the House is expected to vote on it today. If the bill passes the House and President Joe Biden signs it, the legislation would enhance and enrich federal tax credits that expired earlier this year. According to Atlas Public Policy, companies switching their commercial fleets to EVs and businesses installing large amounts of EV equipment are the most likely to benefit. However, supply-chain issues regarding EV chargers are prominent, with charging manufacturers having trouble getting their hands on components needed to build chargers, especially computer chips.
The Food and Drug Administration closed its comment period earlier this month on the agency's two proposed tobacco product standards that would prohibit menthol as a characterizing flavor in cigarettes and prohibit all flavors other than tobacco in cigars. The agency received nearly 250,000 comments on these two proposed rules combined, including about 175,000 for the menthol cigarettes proposed rule and about 71,000 for the flavored cigars proposed rule. "FDA appreciates the public's active engagement in the rulemaking process, and has already begun to review the comments, scientific data, expert opinions, and facts that have been submitted. FDA is committed to completing the rulemaking process as quickly as possible; however, the agency will need ample time to comprehensively review and analyze all of the comments," wrote the FDA in a statement.
Gas prices around New Jersey, which surpassed a $5 per gallon average two months ago, continue to fall. The average has gone down to $4.18 per gallon as of Monday, with fuel costs around the nation decreasing for a ninth straight week. New Jersey gas hit a record high of $5.06 per gallon June 13, according to AAA. The average price for diesel stands at $5.13 - down from an all-time high of $6.34 per gallon May 18, according to the auto club. Meanwhile, the national average for regular gas fell to $3.95. But experts say several factors will determine whether gas prices around the nation will continue going down. Almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March, according to a AAA survey released July 25. Drivers' top-two changes for offsetting high gas prices were driving less and combining errands.
More than seven years after New Jersey's "historic" settlement with ExxonMobil, the state has once again announced it will receive money from the oil giant as a result of a pollution-related lawsuit. State officials announced Monday that Exxon will pay New Jersey $9.5 million to resolve the Natural Resource Damages (NRD) lawsuit, which accused Exxon of industrial dumping at its Lail property - a more than 12-acre site in East Greenwich Township and Paulsboro. NRDs are defined by the U.S. Environmental Protection Agency as damages for injury to, destruction of, loss of, or loss of value of natural resources.
Infrastructure buildout has long been cited as a major stumbling block to faster acceptance of electric vehicles (EVs) in the U.S. About 50% of vehicles sold in the U.S. are projected to be EVs by 2030. This means the demand for ultra-fast charging stations will be rising, as well. But the U.S. still lags behind Europe in the number of EV chargers available to the public and EVs on the road. However, that will likely change soon, given the Biden Administration's National Electric Vehicle Infrastructure Formula Program (NEVI), which includes a goal of having EV chargers every 50 miles and no more than one mile off high-use corridors. Gas stations are uniquely situated to deliver EV charging services along the country's interstate highways.
Some electric vehicle owners are facing a dilemma: chargers that are broken, reports the New York Times. A recent study by Cool the Earth, an environmental nonprofit, in California found that about a quarter of the public charging outlets in the San Francisco Bay Area, a place teaming with EVs, were out of order. The most common problem was that the chargers could not accept a payment of initiate a charge. The Times reports that broken chargers can have problems including screens not working, software issues and some ceasing to work midcharge. Charging insecurities have some gasoline-powered vehicle drivers question whether to transition to EVs. "Often, those fast chargers have real maintenance issues," Ethan Zuckerman, a professor at the University of Massachusetts Amherst who has owned a Chevrolet Bolt for several years, told the Times. "When they do, you very quickly find yourself in pretty dire straits."
Each week, the Energy Information Administration publishes a list of average gasoline prices for the previous three weeks. NJGCA will begin including this list with the Weekly Road Warrior. Remember, these prices are reflective of self-serve everywhere except NJ.
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