Energy Marketers of America Weekly Review - April 4, 2025
Energy Marketers of America Weekly Review - April 4, 2025
EMA is pleased to report that a group of bipartisan Midwest Senators have petitioned the Trump Administration to issue emergency E10 waivers for eight Midwest states to provide maximize fuel fungibility to minimize chances of retail price hikes that disproportionately impact small business marketers and consumers. Specifically, refiners would no longer be mandated to produce 7.8 RVP gasoline this summer and instead revert back to making 9.0 RVP gasoline with a one-pound waiver up to E10 (conventional gasoline) if EPA grants the request. EMA shared key market insights with Midwest lawmakers and the EPA on the need to delay the Midwestern Governors’ opt-out of the E10 Reid Vapor Pressure (RVP) waiver or at a minimum issue E10 summertime fuel waivers for the Midwest. Additionally, EMA met with the EPA’s Office of Transportation and Air Quality to reinforce that biofuels policies should maximize fuel fungibility.
Senate Majority Leader John Thune (R-SD) and Senator Dick Durbin (D-IL) led the group of 17 Midwest senators stating, “Currently, the eight Midwestern governors’ petitions to sell E15 year-round has allowed for an agreement between both ethanol and petroleum stakeholders in support of a permanent legislative solution to allow nationwide, year-round E15 sales. In the interim, taking action to permit the sale of E15 nationwide during the 2025 summer driving season also will be beneficial for consumers, the domestic energy industry, and agricultural producers. And to ensure nationwide uniformity in the gasoline market, we urge you to apply the temporary emergency waivers to E15 in all states as well as to E10 in the eight states who petitioned EPA to opt out of the RVP waiver program.”
EPA has granted emergency E15 waivers in each of the last three years to prevent gasoline supply and price increases during heightened summertime demand. Emergency waivers are likely to arrive again before this summer especially after Trump signed an Executive Order earlier this year to do so. EPA said it "will review the letter and will respond through appropriate channels" but declined to comment further. In recent years, the agency has begun issuing emergency waivers in April.
Forcing a special boutique fuel blend for the 8 Midwest states (7.8 RVP gasoline) to allow higher ethanol blends to be sold has already led to 20-25 cent price spikes for most of the Midwest and surrounding states. The whole argument that 7.8 gasoline would be a boon for ethanol is a farce due to UST compatibility concerns. Therefore, emergency E15 and E10 fuel waivers for this summer is the preferred method until Congress can approve a year-round waiver for E15.
Urge Lawmakers to Support Resolutions to Overturn California Waivers Allowing ICE Bans
Republican Members of the House Energy & Commerce Committee introduced resolutions this week to overturn three Biden-era rules granting Clean Air Act waivers to California under the Congressional Review Act (CRA). The resolutions, introduced by Reps. John Joyce (R-PA), John James (R-MI), and Jay Obernolte (R-CA), would overturn the Environmental Protection Agency’s approval of the Clean Air Act waiver for California's Advanced Clean Cars (ACC II) rule, along with approved federal waivers for the State's clean trucks and heavy-duty NOx rules.
The CRA resolutions are strongly supported by EMA. Under the CRA, Congress is empowered to review “rules” issued by federal agencies, including EPA, before the rules take effect. Congress may review a rule for a period of 60 days and then disapprove it using special procedures, including a joint resolution of disapproval. The EPA transmitted the three waiver approvals to Congress earlier this year, starting the clock for review of the waivers by lawmakers. If agreed to by the House and Senate, the joint resolutions will head to President Trump’s desk for his signature.
California’s ACC II rule includes a mandate for vehicle manufacturers to sell increasing percentages of zero-emission vehicles in the State, beginning in model year 2026, and culminating in a ban on internal combustion engine-powered vehicles in 2035. To date, 17 states have adopted portions of California’s light- and heavy-duty vehicle regulations. By design, California’s ACC II rules operate to reduce the liquid fuels market by giving preferential treatment to electric vehicles, thereby injuring energy marketers and others who participate in the market. EPA’s waivers not only increase vehicle costs but also increase the costs of goods and the cost of living for American families.
EMA calls on energy marketers to contact their Representatives and Senators, urging them to support the CRA resolutions of disapproval for the California waivers and restoring vehicle choice for all Americans.
Click here to Take Action |
Department of Health and Human Services Administrative Employees Let Go
Includes LIHEAP Personnel
This week, the Trump Administration gutted the Low-Income Home Energy Assistance Program (LIHEAP) administrative staff, part of the mass firing of 10,000 Department of Health and Human Services workers. The status of the program, which provides $4 billion per year for low-income families with heating and colling costs, is unclear according to Mark Wolfe, executive director of the National Energy Assistance Directors Association. Mr. Wolfe argued that the program could grind to a halt with $387 million left to distribute. In FY 2025, states and territories were to receive $3.6 billion in regulatory block grant funding, plus $100 million in decided funds from the Bipartisan Infrastructure law.
Senators Susan Collins, Jack Reed (D-RI), and Lisa Murkowski (R-AK), led ten of their Senate colleagues, including Senator Angus King, in sending a letter to the Trump Administration to reverse course. “We are concerned that the reported staff terminations will undermine the HHS’s ability to deliver this critical funding to low-income seniors and families,” the Senators wrote. “We are also concerned that the local community action agencies that help enroll qualified beneficiaries could be weakened by other actions and funding cuts being undertaken by HHS and the Department of Government Efficiency.”
Department of Health and Human Services Secretary Robert F. Kennedy Jr. indicated that some programs would soon be reinstated because they were mistakenly cut. "We're streamlining the agencies. We're going to make it work for public health, make it work for the American people," Kennedy said. Whether LIHEAP is part of the reinstatement is unknown at this time.
Nearing the end of his first 100 days in office, President Trump and his second term agenda continued to drive the news in Washington this week.
On Tuesday, Secretary of Health and Human Services Robert F. Kenney Jr. initiated widespread layoffs at the nation’s top health agencies, which are expected to impact nearly 10,000 employees. Officials placed on administrative leave as part of the layoffs included the Food and Drug Administration’s (FDA) chief tobacco regulator, Brian King, as well as dozens of employees from the FDA’s office overseeing tobacco regulation. The HHS layoffs follow similar restructuring of federal agencies initiated by the Trump Administration, many of which have been challenged in court.
Meanwhile, Congress has largely lagged behind the President in making progress on its legislative priorities. On Tuesday, House Republican leaders cancelled votes for the remainder of the week after nine Republicans joined with Democrats to defeat a procedural vote teeing up several bills for House floor consideration. The nine Republicans broke party lines to block a proposal by Speaker Mike Johnson and House leadership which would have prevented further floor consideration of new proxy-voting rules for new mothers. Nevertheless, on Tuesday, House Republicans notched two victories in special elections in Florida, increasing their majority to 220 seats.
On Wednesday, the Senate Budget Committee released a draft budget resolution to begin consideration of tax, spending, and debt limit legislation under reconciliation procedures. Senate Majority Leader Thune (R-SD) has pledged to begin voting on the draft resolution on the Senate floor this week, with a final vote on the resolution possible over the weekend. However, it is unclear whether, if agreed to by the Senate, the budget resolution will be considered on the House floor prior to the 2-week April recess.
USDA Announces Intent to Release Obligated HBIIP Funds
On Monday, Secretary of Agriculture Brooke Rollins announced USDA’s intent to release obligated funding under the Higher Blends Infrastructure Incentive Program (HBIIP) for 543 projects totaling $537 million in 29 states. This includes new projects approved within the first 100 days of the Trump Administration.
The Energy Marketers of America thank United States Senators Joni Ernst (R-IA), Pete Ricketts (R-NE), Dave McCormick (R-PA), John Fetterman (D-PA) and their respective teams in advocating for the importance of HBIIP funds for small business fuel retailers as they seek to expand offerings of high-blend biofuels.
EMA member companies are encouraged to contact USDA Higher Blends Infrastructure Incentive Program Manager Jeff Carpenter to determine if your project meets the USDA’s definition of obligated and whether your project funding is subject to this release. Jeff can be reached at jeff.carpenter@usda.gov or by phone at 402-437-5554.
To read the full release from USDA, click here.
EMA Votes in Favor to Preserve 85 Octane in Mountain Regions
The ASTM D02.A subcommittee has been considering a revision to the ASTM D4814-24 Standard Specification for Automotive Spark-Ignition Engine Fuel ASTM D02 that includes the removal of existing information in Appendix X1 related to the antiknock index and the effects of altitude and weather on the antiknock requirement. This change removes information supporting the use of octane adjustments (specifically related to the use of 85 AKI fuels) to address the effects of altitude and weather on engine performance (antiknock requirements). The revision has been justified on the basis that the information is no longer relevant since the majority of vehicles (99%) currently on the road have sensors and engine management computers to adjust for temperature and pressure conditions. The effort to make this revision has been subject to two ballots to date. EMA does not agree that the information related to the effects of altitude and weather on vehicle antiknock requirements is no longer relevant information in the specification and has voted against these changes.
As a result of the negative votes received on the second ballot, a third revision was developed and recently balloted. This most recent proposal adds a reference to 85 AKI fuel as a common antiknock practice for certain vehicles but deletes the antiknock discussion currently in the Appendix X1 and instead references the current version (ASTM 4814-24) of the standard which includes the antiknock requirements in Appendix X1. While EMA has made some progress with this third revision, we continue to believe that this information is relevant and should be retained in future versions of the specification. While antiknock requirements may not be a significant issue on a national basis, a large percentage of vehicles (new and old) in high altitude areas rely on 85 AKI fuels. The assumption that this information is no longer relevant and the removal of this information from the standard could impact the supply of 85 AKI fuel in areas where consumers have continued to choose 85 AKI fuel after considering the tradeoffs of engine performance, owner’s manual recommendations, driving habits and cost. As a result, EMA has voted negative on this latest ballot.
EMA Small Business Committee (SBC) PAC Co-Chairs Mike Downs and Tim Keigher would like to thank Mike O’Connor and the Virginia Petroleum & Convenience Marketers Association (VPCMA) for donating 2 bottles of award-winning wine from Virginia’s Trump Vineyards.
Trump Winery’s dedication to crafting exceptional wines has earned them numerous national and international accolades. Located along Virginia’s historic Monticello Wine Trail, the 1,300-acre estate is home to the largest vinifera vineyard on the East Coast. With award-winning sparkling, white, and red wines, each bottle reflects a commitment to quality and the unique terroir of central Virginia. Planted across 227 acres of French vinifera varieties, Trump Winery produces wines that have earned numerous national and international medals and best-in-class accolades. Each bottle captures the essence of meticulously tended vineyards, offering a distinguished experience that celebrates the art of winemaking. The winning bidder will receive 1 Magnum bottle of 2021 New World Reserve and one bottle of Chardonnay Reserve.
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.
Trump open to tariff negotiations, contradicting White House aides
Supreme Court sides with the FDA in its dispute over sweet-flavored vaping products | AP News
US oil and biofuel coalition meets with EPA to seek biomass diesel boost | Reuters
March 2025 Energy Marketers of America Small Business Committee (SBC) PAC Contributions
PAC Co-Chairs Mike Downs and Tim Keigher are grateful for the EMA Small Business Committee (SBC) PAC contributions from the following individuals during the March 1-31, 2025 time frame:
Alabama: Brent Compton, Kelly Flowers, Thomas Moore
Arkansas: Steve Turner
Florida: Joanna Wolff
Idaho: Brett Adams, Matt Berry, Ron Berry, Nate Brazier, Derek Brewer, Ian Coleman, Ed Croymans, Mason Foote, Brad Holland, Justin Kerr, Ben Roberts, Jake Searle
Kansas: Gratz Peters
Mississippi: Matt Bogue, Philip Chamblee, John Fair, Rex Gillis, Tom Graning, Charles Morris, Eric Prince, Perry Rackley, Kevin Sayle, William Sumrall, Perry Van Cleave
New Jersey: Eric DeGesero
New York: Kris DeLair
North Dakota: Matt Bjornson, Chris Fitterer, Tom Haahr, Mike Rud, Jared Scheeler, Cory Vorderbruggen
Ohio: Alex Boehnke
Oklahoma: Candace McGinnis
South Carolina: George Benjamin, Michael Fields
Federated Insurance: Risk Management Corner
Best Practices for Hiring Top Talent
Hiring the right employees is critical for the success of any business. Effective hiring practices not only ensure you're bringing in top talent, they also help to minimize risks and create a positive work environment. Here are some best practices to consider when beginning the hiring process:
Create Clear and Honest Job Descriptions
A well-crafted job description can help set expectations and attract the right candidates. Clearly outline roles, responsibilities, and necessary qualifications. This transparency lets applicants know exactly what they’re applying for. Access the complete article here.
By following these hiring practices, you can protect your business and create a positive, productive workplace. 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®
This article is for general information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. Examples shown are for illustrative purposes only. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. ©2025 Federated Mutual Insurance Company.