Trump Administration to Scrutinize State Climate Overreach

On April 8, 2025, President Trump issued an Executive Order titled “Protecting American Energy from State Overreach,” directing federal agencies to challenge state policies that restrict the production, transportation, or use of energy resources, including oil products. The EO cites the federal need to safeguard affordable and reliable energy, asserting that state-level climate policies—such as permitting barriers, infrastructure bans, and fuel restrictions—threaten national security and economic growth.

The order tasks agencies like DOE, EPA, and DOT with identifying state actions that interfere with federal energy and environmental policies. It also directs the U.S. Attorney General to pursue legal challenges against such policies on constitutional grounds, focusing on federal preemption and interstate commerce violations. Notably, the EO explicitly calls out New York and Vermont for enacting recently challenged “Superfund Climate” laws that seek to impose retroactive liability on greenhouse gas emitters based on historical data, as well as carbon pricing regimes in California.

This move could have far-reaching implications for the liquid fuels industry, particularly as states are expected to double down on aggressive climate action now that the federal government has deprioritized carbon reduction. However, the effectiveness of this federal initiative is uncertain, given courts’ past support for state-level programs under cooperative federalism. Meanwhile, EPA’s announced reconsideration of the 2009 Endangerment Finding could further complicate matters for the administration, as it weakens its preemption arguments.

EMA would like to coordinate with state executives to identify key regulatory policies that affect member businesses, with the goal of submitting a letter to the U.S. Attorney General. To assist in this effort, we ask that you complete and send the following downloaded word form by April 25 to jroman@bmalaw.net.

EMA Weighs in on Biofuels Tax Policy

EMA has officially submitted comments to the U.S. Treasury and IRS regarding the Inflation Reduction Act’s 45Z Clean Fuel Production Credit, emphasizing that a blenders credit remains the most effective mechanism to increase biofuel consumption––an energy priority of the administration. While EMA expressed support for the strategic expansion of the biofuels sector, it cautioned that the 45Z regime contains structural deficiencies that will likely hinder increased consumption.

EMA urged the Treasury to work with Congress to restore blending incentives to ensure that the financial benefits of federal subsidies are felt across the supply chain––and most importantly, at the pump––not just upstream at the agricultural level. The federation also highlighted several challenges with a producer-level tax regime, including compliance with biofuel blending mandates and diminished carbon reduction opportunities in the heating oil sector. Finally, EMA reiterated that any tax structure must be paired with infrastructure investment offsets to overcome the most significant barrier to biofuel market penetration.

The comment period closed on April 10, 2025. EMA will continue to monitor regulatory and legislative developments on the matter.

“EMA marketers play a decisive role in biofuel expansion, engaging daily with consumer demand and retail dynamics,” said EMA President Rob Underwood. “The new 45Z regime risks disrupting established blending economics that have successfully increased biofuel use across the country,” Underwood added.

“An overly complex––and in many respects vague––producer credit, with inherent limitations on cost-savings pass-through, is an unworkable framework for boosting biofuel consumption from both commercial and regulatory standpoints. Treasury should work with Congress to restore what has historically worked,” said EMA Associate Regulatory Counsel Jorge Roman.

See letter here.

Small Refineries Urge EPA to Temper Biofuel Volume Expectations

As biofuel producers and feedstock suppliers continue to push for bold, multi-year biofuels targets under the Renewable Fuel Standard (RFS), small refineries have urged the Trump administration and regulators to consider the significant impacts they could face if there is any increase in Renewable Volume Obligations (RVOs). Specifically, small refineries are seeking a “seat at the table” in the room where biofuels policy happens.

With an impending deadline, EPA is expected to set RVOs that align with increased production capacity and account for volatility in Renewable Identification Number (RIN) prices. Small refineries lean on the latter claiming that any increase in volumes will drive prices upwards, affecting their operations and consumers.

Under the RFS, a small refinery is one with an average crude oil input of no more than 75,000 barrels per day (bpd). While small refineries may petition for exemptions from renewable fuel requirements, they must demonstrate that compliance would cause disproportionate economic hardship. To qualify, a small refinery must not have exceeded 75,000 bpd of aggregate daily crude throughput in the most recent full calendar year before filing a petition and must not be projected to exceed that threshold during the exemption period.

While the first Trump administration liberally administered the program and favored granting broad regulatory relief, this time around the administration may take a more cautious approach to avoid RIN market saturation and price volatility. Overall, small refineries are advocating for built-in regulatory relief as an essential component of future RVO targets.

Inside the Beltway Update

This week in Washington was anything but quiet! While much of the focus centered on the market fallout resulting from last week’s tariff announcements, Congress began the week attempting to advance a budget resolution to kickstart the reconciliation process. Both tariffs and the budget resolution came to a head late Wednesday as President Trump announced a 90-day pause of reciprocal tariffs while the House postponed a floor vote on the budget resolution to secure the necessary Republican votes for a Thursday vote.

On Thursday, the House of Representatives agreed to the Senate-passed budget resolution (H. Con. Res. 14) formally kicking off the reconciliation process and consideration of Republican tax, spending, and debt limit legislation. The resolution was agreed to 216 to 214, with 2 Republicans joining Democrats in opposition. The Thursday morning vote followed an earlier planned vote on Wednesday, which was scrapped due to opposition from several House Republicans over disagreements on spending cuts and scorekeeping.

Congressional committees will now begin drafting legislation to make good on Republican campaign promises, including extension of expiring provisions from the 2017 Tax Cuts and Jobs Act, and several of President Trump’s campaign promises, like eliminating taxes on tipped income and overtime. House Republicans have pledged to deliver a tax package to President Trump by Memorial Day. However, this timeline is overly ambitious. We are now beginning to see House and Senate members take positions on items prime for reconciliation. This week, several Republican Senators signed a letter urging Senate Majority Leader John Thune (R-SD) to protect Inflation Reduction Act clean energy tax credits when the upper chamber considers its version of the tax bill. Sens. Lisa Murkowski (R-AK), John Curtis (R-UT), Thom Tillis (R-NC), and Jerry Moran (R-KS) warned repeal of IRA credits would jeopardize US energy leadership and advocated for an “all of the above” energy approach. In addition to credits for EV purchases, the IRA includes new or expanded tax credits for carbon capture, hydrogen and nuclear energy, and biofuels.

Of course, Elon Musk and his team at the Department of Government Efficiency (DOGE) had to participate in the active week. On April 9, the White House issued the Presidential Memorandum implementing the DOGE Deregulatory Initiatives as outlined in the February 19, 2025, Executive Order 14219, which requires agencies to identify unlawful regulations within 60 days that are appropriate for repeal. The April 9 Guidance instructs agencies to aggressively repeal—not just revise—such regulations, bypassing the usual notice-and-comment rulemaking process under the Administrative Procedure Act.

Agencies are expected to begin issuing direct final rule repeals by late April. They will determine which regulations are unlawful based on recent Supreme Court decisions, including those that broaden the Major Questions doctrine and eliminate Chevron deference (via Loper Bright), allowing less leeway for agency interpretations of statutes. We anticipate a wave of deregulatory actions soon, followed by legal challenges to those actions in federal court.

EMA Washington Conference and Day on the Hill – May 14-16, 2025: Please Make Your Hotel Reservation and Register Now

EMA’s annual Washington Conference and Day on the Hill will be held in Washington, DC from May 14-16 at The Mayflower Hotel. Our industry continues to have many important legislative and regulatory issues to discuss, and the Day on the Hill remains the primary focus of this conference for you to meet with your members of Congress and network with other marketers from across the country!

Hotel reservations will close the earlier of April 23 at 6:00 pm Eastern or when the room block is sold out. Tuesday night has reached capacity, Wednesday night (7 available), and Thursday night (7 available). We will most likely SELL OUT.

Registration must be received by April 23 to be included in our hotel guarantee.

THANK YOU to EMA’s Partner Sponsors for the Washington Conference!

EMA wants to give a huge THANK YOU to our EMA Board of Directors Council and Executive Committee Council Corporate Partner Sponsors: Federated Insurance, Reynolds American Inc., Altria Group Distribution Company, Marathon Petroleum Company LP, Philip Morris International, Valero Energy Corporation, StoneX Financial Inc., Citgo Petroleum Corporation, ExxonMobil, Chevron, HF Sinclair, BP Products North America, AGI, and Shell Oil Products! A special THANK YOU to our Elite Sponsor for this meeting only: Spirit Petroleum and Meridian Associates!

EMA and the Mississippi Petroleum Marketers and Convenience Stores Association (MPMCSA) want to extend a special THANK YOU to Federated Insurance and Shell Oil Products for the Reception honoring our 2025 EMA Chair General Jim Lipscomb.

We appreciate the loyalty and support of each of our EMA Corporate Partners and their continuous commitment to the energy sector. For more information on our Partner Programs, please contact Rob Underwood.

Another Above Average Hurricane Season Predicted

The North America Atlantic hurricane season is expected to have "above-normal" activity, with 17 named storms, nine hurricanes and four major hurricanes, researchers from Colorado State University (CSU) reported Thursday. This season isn't expected to be quite as active as last year's, but it ranks among the highest hurricane forecasts ever predicted in April. Hurricane activity this year is expected to be roughly 125 percent higher than the 1991-2020 season average. Unusually warm waters in the Atlantic, along with the likely absence of El Niño — typically a hurricane suppressant — are driving expectations for the season.

The official season begins June 1 and runs through November 30, but it is not uncommon to have big storms in May.

The list of names for each season is determined in advance. For 2025, the first named storm of the year will be called Andrea, followed by Barry, Chantal, Dexter, Erin, Ferdinand, Gabrielle and on through the alphabet, ending with Wendy. (Q, U, X, Y and Z are excluded because there aren't enough names beginning with those letters.)

To read more, go to 2025 Atlantic hurricane season forecast released.

EMA SBC PAC Silent Auction

EMA Small Business Committee (SBC) PAC Co-Chairs Mike Downs and Tim Keigher would like to thank Mike Rud and the North Dakota Petroleum Marketers Association for donating Bose Headphones and Reynolds American Inc. for donating a Pinehurst #2 Framed Flag autographed by NFL Stars Davante Adams, Adam Vinatieri, and Ron Jawroski.

The Bose Headphone is a World-class noise cancellation and quieter than ever before. It offers breakthrough spatialized audio for immersive listening, no matter the content or source. With elevated design and luxe materials for unrivaled comfort, it’s everything music makes you feel taken to new heights. Bose Immersive Audio pushes the boundary of what it means to listen by taking what you’re hearing out of your head and placing it in front of you. It sounds so real it’s almost like you could reach out and touch it.

Donald Ross’s masterpiece, No. 2 at Pinehurst has served as the site for more single golf championships than any other course in America. It has also hosted back-to-back U.S. Open and U.S. Women’s Open Championships in 2014, and recently the 2024 U.S. Open. And as the U.S. Open’s anchor site, the future looks bright.

For over 125 years, Pinehurst has celebrated the game of golf and who loves the sport. If you are a collector, you are going to want to bid on this item. The Pinehurst No. 2 flag is the most famous and widely recognized. Bid! Bid! Bid!

The Auction will take place in conjunction with EMA’s Washington Conference May 14-16. Auction bidding will begin April 14 and will close during the conference on May 16 at 9:00 am. The auction items will be displayed at the Welcome Reception on May 14. Last year, there was tremendous support in auction contributions and PAC Co-Chairs Mike Downs and Tim Keigher urge your participation this year as well! Mike and Tim wish to remind you that donations can include the use of your personal vacation properties.

If you have items that you would like to contribute to the EMA SBC PAC Silent Auction or the MDF Fall Auction, please click here or contact Sabrina Pitcher at 703-351-8000.

Weekend Reads

Big Tobacco targets Trump in hope - and fear - of change

Decoding US tariffs and their impact on global energy markets | Energy Connects

Keystone pipeline shut down after rupture | The Hill

US electric vehicle industry is collateral damage in Trump’s escalating trade war | The Associated Press

CISA’s next cut is the deepest | POLITICO

Weekly release of benchmark diesel price shifts to Tuesday morning | FreightWaves

March 2025 Contributors to EMA MDF

EMA’s Marketer Defense Fund (MDF) committee wants to thank the following individuals for their MDF contributions during the March 1-31, 2025 timeframe:

Alabama:
Glennie Bench, Sunstop Stores

Arkansas:
Steve Turner, Petromark, Inc.

Connecticut:
Rick Bologna, Westmore Fuel

Florida:
Bill McKnight, Automated Petroleum

Indiana:
Jonathan Smith, PSCI

Maryland
Brad Fulton, AC&T Co., Inc.

Mississippi:
Philip Chamblee, MPM&CSA
Eric Prince, Prince Oil Company

New York:
Dean L. Smith, Scott Smith & Son, Inc.

Oklahoma:
Candace McGinnis, OPMCA

Virginia:
Jim Emmart, Emmart Oil Company

Corporate donations are acceptable. MDF funds have been used to create a COVID-19 Situational Update & Resources webpage, to hire experts to cover important regulatory agencies and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the EMA MDF.

Every Near Miss is a Wake-Up Call: Drive Change with Federated Insurance® During April’s Distracted Driving Awareness Month

It takes just one second of distraction behind the wheel to change lives forever. Whether it’s glancing at your phone, adjusting the radio, or letting your mind wander, these moments can lead to devastating consequences. Federated Insurance reminds your members, our clients, that Every Near Miss is a Wake-Up Call.

During Distracted Driving Awareness Month this April, take time to reflect on how a single moment of inattention can alter lives forever.

Federated® encourages business owners to act now by using Federated DriveSAFE℠ telematics. This powerful resource provides employee drivers with alerts and actionable behavior insights to help prevent near misses and promote safer driving habits.

Federated DriveSAFE telematics is a benefit provided by Federated as a complimentary resource for association member clients.

For additional information or to discuss this in further detail, please contact your Federated regional representative or EMA’s National Account Executive Jack West at 262.719.7750 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.

At Federated Insurance, It’s Our Business to Protect Yours®

About Federated Insurance

Founded in 1904, Federated Mutual Insurance Company is a national insurance and risk management organization that serves the property, casualty, and life insurance needs of clients in select industries. The organization has more than 500 recommendations from local, state, regional, and national associations and buying groups and is rated A+ (Superior) by industry analyst A.M. Best®.

EMA Member Services Spotlight Featuring: Batteries Plus through NPP
Batteries Plus & Bulbs Device Repair and More

Through our partnership with National Purchasing Partners NPP), members can save on the cost of phone and tablet repair through Batteries Plus.

More than just batteries and bulbs, Batteries Plus offers a variety of device repair options, including:

• Screen repair
• Battery replacement
• Back glass repair
• Front- & rear-facing camera repair
• Charge port repair & cleaning
• Speaker & headphone jack repair
• Button repair

NPP Members Can Receive:

• Up to 73 percent off regular retail pricing on approximately 200 core items
• Up to 40 percent off retail pricing on 60,000+ batteries, light bulbs, accessories, and more
• Approximately 7 percent savings on repair services

Sign up with NPP for free to activate this offer and many more. NPP is a member benefit provider of EMA, offering savings on products and services that businesses and employees use every day.

Restrictions may apply. See www.mynpp.com for details.