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1997
ANNUAL REPORT
MARKETING
Local Issues Task
Force Takes on Divorcement, Open Supply
Responding to the emergence of divorcement and open
supply issues in California, WSPA took action this year
on both the state and local levels to oppose proposals
that would significantly impact the state's retail gasoline
market.
With the help of a coalition of concerned businesses
called Californians Fighting Unnecessary Energy Laws
(CalFUEL), WSPA's California Petroleum Resource Group
(CPRG) was successful in blocking divorcement and open
supply legislation in the state Senate for this session.
One of the proposed bills would have prohibited the
establishment of new company operated stations if the
cost of fuel sold from a company's retail outlet increased
more than five percent during a specified period as
compared to fuel sold from all other outlets. Another
would have established a "modified open supply"
system by permitting dealers of brand name gasoline
to purchase product from any source within the brand's
supply system regardless of existing contracts or other
agreements.
When divorcement and open supply legislation failed
on the state level this year, proponents sought action
by urging county and city officials in the San Diego
and San Francisco areas to support ordinances very similar
to the state legislation, some of which may be revived
next session.
In response, WSPA created the Local Issues Task Force
(LITF) consisting of public affairs, marketing and retail
development representatives of member companies. The
LITF developed outreach plans to deliver key messages
to local officials and commissioned a consultant to
conduct an analysis of gasoline station development
issues and how they might affect competition in the
marketplace. WSPA's general counsel assisted the task
force in forming messages and reviewing proposed communications
tools to ensure rigorous compliance with WSPA antitrust
policy. While the LITF made substantial advocacy progress
in 1997, efforts are expected to continue into next
year.
Oregon Divorcement Bill Fails
WSPA and its allies 1997 successfully defeated a retail
divorcement and terminal pricing bill sponsored by the
Oregon Gasoline Dealers Association (OGDA) in the Oregon
legislature. Although efforts to promote retail divorcement
were better organized and better funded than ever before,
WSPA’s Oregon Petroleum Resource Group (OPRG) successfully
generated strong grassroots support in opposition to
the bill. Hearings on this issue produced the largest
public audience the Oregon legislature has seen in 30
years.
1997 WSPA Annual Report
Marketing
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