While the NACS government relations (GR) team is largely focused on the federal government, the team also keeps an eye on state capitals across the country as policy issues that affect our industry develop there.
Quite often, our work in Washington, D.C., can overlap with or complement work being done by our industry’s representatives in your home states. To that end, the NACS GR team works closely with our state association partners and occasionally takes direct actions at the state level in conjunction with those partners.
Most often, when engaging on a state-level issue, the NACS GR team provides support in the way of data, research or talking points, for example, to our state partners. Each month, the NACS team meets virtually with state executives from all over the country to share information about what’s happening at both the state and federal levels. The NACS team and state executives also meet in person annually, just ahead of the NACS Show, for the same purpose. This partnership has proven to be fruitful on several occasions in the past and will continue to serve the industry in the future. Below are a few examples of times that NACS has engaged at the state level in partnership or cooperation with state partners when issues cross jurisdictional levels or rise to national significance.
EVs and EV Charging Infrastructure
Issues related to electric vehicles (EVs) and EV charging infrastructure are a good example of how issues can overlap at the federal and state levels. The National Electric Vehicle Infrastructure (NEVI) formula grants program is a federal incentives program created by Congress and implemented by the U.S. Department of Transportation but distributed by state governments via their approved state plans. Some states are adopting policies counter to guidance to discourage the sort of private sector investment and competition that NACS advocated for and that is stipulated in the bipartisan infrastructure bill. For example, Minnesota and Iowa are attempting to limit the profitability of EV charging.
In addition, NACS has been working to create a competitive market for EV charging by modernizing outdated rules in the electricity market. That includes providing the ability for non-utilities to sell electricity for the purpose of charging EVs and not be regulated like a utility, removing unnecessary demand charges and creating a level playing field for all players in the EV charging space. NACS worked to include language in the Bipartisan Infrastructure Law to encourage states to address those issues and co-founded the Charge Ahead Partnership to advance these issues at the federal and state levels. Through the Charge Ahead Partnership, NACS has been able to work closely with state associations and other stakeholders to pass legislation and weigh in with state public utility commissions working on developing the EV charging marketplace.
Fuels
Fuels policy—particularly issues relating to low-carbon fuel programs, bans on the sale of vehicles powered by an internal combustion engine (ICE) and zero-emission vehicle (ZEV) mandates—has been active at the federal and state levels and is a good example of how state action can spread to federal action. Many states, such as California, have aggressively pursued these policies, and many states have followed the lead of these most aggressive states. California, Oregon and Washington all have low-carbon fuel standards, with Minnesota and New Jersey considering similar programs. Some in Congress would like to federalize a low-carbon fuel standard. NACS is working with a broad group of stakeholders to look at a technology-neutral, pro-market-based solution to lower carbon emissions in the transportation sector.
NACS has been working to create a competitive market for EV charging by modernizing outdated rules in the electricity market."
The same is happening with ICE bans and ZEV mandates. Again, California is leading the pack by establishing a ban on the sale of ICE-powered vehicles, with over 17 states poised to follow. At the same time, the Environment Protection Agency (EPA) has proposed an “indirect” EV mandate with its proposed rule on tailpipe emissions for light-, medium- and heavy-duty vehicles. NACS submitted comments critical of the proposed rule and is working with a wide range of groups and congressional leaders to halt or delay this rulemaking.
In addition to pursuing efforts on the legislative and regulatory side, NACS has been working to get good policy outcomes through the courts. NACS has worked with other groups to file three lawsuits challenging state technology mandates. These include challenging California’s light-duty and heavy-duty vehicle ZEV mandates, as well as Minnesota’s light-duty vehicle ZEV mandate that follows California’s rules. NACS hopes the courts will agree with its view that federal law prohibits states from implementing these technology mandates.
Swipe Fees
NACS has been playing offense on federal swipe fees legislation, and our state association affiliates have been playing offense as well. For several years now, states around the country have been pursuing legislation that would prohibit banks from charging swipe fees on the sales tax portion of a transaction. It’s especially egregious that banks profit off the portion of the transaction that retailers don’t even get to keep. This year, Colorado, Georgia, North Dakota and Pennsylvania are pursuing bills. To be expected, the state banking trades are fighting the legislation with all of their might, but the retail and business communities have formed coalitions supporting the bills. Our collective efforts, at both the state and federal levels, to reform the swipe fee system place enormous pressure on the credit card industry and bring needed attention to this broken marketplace.
Vape Enforcement
The FDA has created mass confusion in its PMTA process by not providing a clear list to retailers of which vapes are legal to sell. As a result, illicit vapes have flooded the market. In response, states around the country are considering directory bills to bring clarity to retailers and to call for enforcement against products not on the list.
Concurrently, NACS is working on federal legislation that would compel the FDA to provide a clear list to retailers of which vape products can be on the market to ensure retailers are complying with the law and not selling illicit products. Once a list is published, the FDA would be required to enforce the law and go after bad actors.
Additionally, NACS will engage with various state-level nongovernmental organizations as needs arise. Currently, NACS has a partnership with the National Governors Association, allowing the GR team access to policy experts at the association who can provide insight into governors’ priorities and a pipeline into governors’ offices nationwide to help pursue our industry’s goals. In the past, we have engaged with other groups, as well, including the National Conference of State Legislatures and the National Association of Attorneys General. NACS continually evaluates memberships in such organizations for the benefit of the convenience industry. The NGO memberships and our partnerships with state associations continue to help strengthen and protect our industry.