Congressional Update
Protect Small Business Energy Marketers in Senate Infrastructure Bill
This week, the Senate voted in favor of moving forward on a Bipartisan Infrastructure Deal (BID), although, legislative text has not been released. The deal reportedly includes $550 billion in new spending, which includes funding for roads, bridges, and major projects, electric grid upgrades, rail and Amtrak improvements, broadband expansion, clean drinking water, transit, ports and airports, and electric vehicle (EV) chargers. The deal proposes repurposing $205 billion in unspent pandemic relief funds and another $53 billion in unspent unemployment benefits to offset its cost. Consequently, a draft discussion legislative text includes provisions which would allow EV charging at rest areas on the Interstate right-of-way which will harm small business energy marketers. Permitting EV charging at rest areas or on the Interstate right-of-way will discourage the investment in charging by private businesses especially small businesses along Interstate exits. In addition, allowing charging at rest areas could lead to a slippery slope with EV users demanding additional relaxations of the commercialization ban, ultimately decimating hundreds of thousands of off-highway businesses. Click here to reach out to Congress ASAP!
Once text is released, the Senate is expected to work this weekend and next week on finalizing the package with the hope of passing it before the chamber adjourns for the August recess. Senate Majority Leader Chuck Schumer (D-NY) would also like the Senate to vote on a $3.5 trillion budget resolution before the August recess, which would allow the Senate to begin a Democrat-only reconciliation process addressing priorities not included in the BID. Although, Senator Kyrsten Sinema (D-AZ) has already raised concerns over the $3.5 trillion price tag so it remains uncertain how the House and Senate will move forward on a reconciliation package. It also remains uncertain how the House will treat the Senate’s BID. Speaker of the House Nancy Pelosi (D-CA) has said that the House will not consider the BID without also advancing a reconciliation package, and House Transportation and Infrastructure Chairman Peter DeFazio (D-OR) has repeatedly criticized the BID as being inadequate.
Also this week, Senator Dianne Feinstein (D-CA) introduced legislation that would offer a tax credit for purchasing used EVs. The bill would grant buyers up to $2,500 in rebates, and would apply for EVs at least two years old that cost less than $25,000.
SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal
The U.S. Small Business Administration (SBA) has launched a new online application portal that allows borrowers with PPP loans of $150,000 or less to apply for forgiveness directly through the SBA instead of through participating lenders. The new application portal is designed to streamline and simplify forgiveness for small businesses. According to the SBA, most businesses (6.5 million) waiting for forgiveness have loans under $150,000. The new forgiveness portal will begin accepting applications from borrowers on August 4, 2021.
In addition, the SBA has set up a fully staffed PPP call-in number to answer borrower questions and assist filling out their forgiveness applications. Borrowers with questions or needing assistance with their PPP forgiveness application should call (877) 552-2692, Monday through Friday, from 8 a.m. to 8 p.m. EST. The forgiveness application portal can be accessed by clicking here.
EMA Comments on Zero Emissions Home Act of 2021
Yesterday, the Energy Marketers of America (EMA) and its heating fuel state associations sent a letter to Senator Martin Heinrich (D-NM) regarding the Zero-Emissions Homes Act of 2021, a bill he recently introduced to incentivize the purchase of new energy efficient heating appliances through federal rebates and tax credits. Unfortunately, the tax credits are limited to purchasers of new heating appliances powered by electricity while not recognizing clean renewable biodiesel used for heating which can achieve far greater reductions in greenhouse gas emissions than any alternatively powered heating appliance on the market today, including heat pumps.
Many states and liquid energy marketers are steadily increasing the biodiesel content in heating oil for use in residential and commercial heating equipment. Currently, heating fuel marketers in the Northeast, Pacific Northwest, Midwest and the Southeast are blending biodiesel into heating oil at percentages ranging from 5 to 100 percent. Pure biodiesel reduces carbon emissions by 80 percent when used in existing heating oil appliances. EMA encouraged the Senator to expand the tax credits for liquid fuel heating appliances that are Energy Star rated and certified by Underwriters Laboratory (UL) to operate with biodiesel.
Click here to read the full letter.
EMA National Survey on the Inability to Obtain Information on EMV Chargebacks
Since EMV at retail motor fuel dispensers became mandatory on April 17th, 2021, there have been several issues raised related to the lack of information concerning the reason (e.g., fraud, non-EMV compliance, or a customer complaint) for the chargeback and inability to obtain that information (e.g., processor, majors, processing bank).
EMA created a survey to see how widespread of an issue this is across the country. Click hereto access the survey. Deadline to respond is Friday, August 6th.
IRS Expands Employer Tax Credits for Providing Employees Paid Sick and Family Leave Due to COVID
The IRS has updated frequently asked questions (FAQs) on the paid sick and family leave tax credits available under the American Rescue Plan Act of 2021 (ARP). The paid sick and family leave tax credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19. The revised FAQs make clear this includes leave taken by employees to care for certain individuals to obtain immunization relating to COVID-19 or to recover from immunization relating to COVID-19. The tax credits under the Tax Relief Act, cover leave taken beginning April 1, 2020, through March 31, 2021. The ARP amends and extends these credits to leave taken beginning April 1, 2021, through Sept. 30, 2021. The FAQs include information on:
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How employers may claim the paid sick and family leave credits,
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How to file for and compute the applicable credit amounts, and
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How to receive advance payments for and refunds of the credits.
Under the ARP, eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees, may claim the sick and family leave tax credits for qualified leave wages along certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits).
Reminder: IRS Issues Hefty Fines for Failure to Display Nontaxable Use Dispenser Labels
EMA continues to hear from energy marketers who have received hefty fines for failure to display IRS nontaxable use warning labels on dispensers. The IRS requires all dyed diesel and dyed kerosene dispensers to have a specific label indicating that the fuel is for nontaxable use only. Dispensers supplying undyed, untaxed kerosene sold from a blocked pump must also display an IRS nontaxable use warning label. The labeling requirement has been in place for diesel dyed diesel dispensers since 1993 and for dyed and clear kerosene dispensers since 1998. IRS field agents continue to enforce the dispenser label requirement in all regions of the country. Under IRS regulations marketers who fail to post the required labels are presumed to know the fuel will not be used for a nontaxable use and responsible for paying the 24.3 cpg federal excise tax on the fuel (the back-up tax). In addition, the IRS will assess a penalty of $10 per gallon for every gallon of nontaxable fuel in the storage tank connected to the dispenser at the time of the violation.
The following IRS labels must be posted on any retail dispenser or other delivery facility (skid tank, consumer dispensers at bulk plants or card locks) where dyed diesel fuel and/or dyed kerosene are dispensed for use by a purchaser/consumer:
“DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”
or
“DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”.
In addition, the following label must be posted on all blocked pumps that sell clear, untaxed kerosene:
"UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY".
The labels must be affixed to the dispenser in a conspicuous place within easy sight of the person dispensing the fuel either on the face of the dispenser (on both sides) or on the side of the dispenser just above the nozzle housing. The IRS issues violations for any IRS required label that is missing, faded, ripped or obscured in any from the consumers view. Marketers should frequently inspect dyed diesel fuel, dyed kerosene and clear untaxed kerosene dispensers to ensure the IRS label is properly placed and legible. Labels can be ordered online from most petroleum and c-store supply vendors.
EMA Staff Contact: Mark S. Morgan, Regulatory Counsel mmorgan@emamerica.org.
Midwest Republican Senators Raise Concerns over EVs, Urge Biden Administration to Support Biofuels
On Wednesday, midwestern GOP Senators Jerry Moran (R-KS), John Thune (R-SD), Chuck Grassley (R-IA), Roy Blunt (R-MO), Deb Fischer (R-NE), Mike Rounds (R-SD), Joni Ernst (R-IA) and Ben Sasse (R-NE) sent a letter to President Biden over their concerns with the Administration’s all-in approach for electric vehicles while not supporting biofuels as an immediate way to lower transportation emissions using the existing consumer vehicle fleet and fueling infrastructure.
Specifically, the senators said, “Unfortunately, the promise of homegrown biofuels and our agriculture sector appear to be woefully underrepresented in your administration’s energy, environmental, and transportation agenda. You have made clear your interest in going all-in on electric vehicles (EVs) despite the outstanding costs, critical mineral constraints and related labor exploitation, electricity generation and transmission demands, consumer needs, and other unresolved aspects of this ambition. While we recognize that EVs will eventually play an increased role in America’s transportation and energy future, and that American innovation and ingenuity will overcome some of the hurdles faced by this nascent industry, we urge you to not look beyond the current generation of biofuels technology and forgo the meaningful reduction in carbon emissions they can provide.”
EMA Opposes Treasury Department Proposal Requiring Burdensome Financial Reporting
This week, EMA joined several small business associations in a letter opposing a Treasury Department proposal which would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts, as well as transfers between accounts of the same owner. EMA objected to the proposal due to the broad, untargeted nature of the Treasury proposal which is likely to create taxpayer complexity and confusion. Taxpayers will likely have to receive new or modified 1099s for every account they hold containing funds flow information that may not be relevant to their tax liability.
Simply put, the letter urged Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap.
Federated Insurance is Presenting a 1-Day Risk Management Seminar at a City Near You
You are invited to attend an exclusive, complimentary Risk Management Academy session hosted by Federated Mutual Insurance Company. A short video about this session is meant to help you learn more about:
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Losses impacting our industry,
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Connect with industry peers facing similar challenges, and
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Apply risk management best practices that make a difference at your business.
Owners, Human Resources Managers, and Designated Risk Managers are encouraged to attend.
Click here to register for any of these sessions on this flyer. If you have questions regarding the event or the registration process, please feel free to contact Federated at 507-455-5315 oremail.
One (1) Registration per Company. Space is limited, so please register today! Federated is an EMA Corporate Platinum Partner.
Secure Your Listing or Advertisement Now in EMA’s Online Buyer’s Guide
The Energy Marketers of America (EMA) is pleased to announce that the exclusive EMA Buyers’ Guide, the premier resource of products and services for energy marketers, is available on the EMA website at www.energymarketersofamerica.org.
The Energy Marketers of America (EMA) partnered with Strategic Value Media - a leading nationwide provider of print and digital media solutions for national, state and local trade and membership associations - to produce the 2021 edition of EMA’s Buyers’ Guide, the primary resource of products and services for energy marketers. EMA is proud to provide its members with this useful and easily accessible year-round resource. Please read the full press releasehere.
We encourage you to take advantage of this exceptional opportunity to highlight your products and services in the Buyers’ Guide. To learn more about advertising your products or services in the Buyers’ Guide, please email.
EMA Member Services Spotlight Featuring: Member Benefits Available Through NPP (National Purchasing Partners)
 Members of the Energy Marketers of America can access business, employee, and personal discounts through National Purchasing Partners (NPP). NPP is a member benefit provider of EMA and helps members reduce costs with exclusive pricing.
Members can save on many useful brands, including Cintas, Airgas, Priceline, Staples, and, if eligible Verizon Connect and more.
Sign up here. Once you sign up with NPP, you will receive a verification email. When your account is verified, just log in and explore the catalog of offers.
NPP membership is free and there is no obligation to buy.
If you need help registering, please contact or call 800.810.3909.
Restrictions may apply.
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