Energy Marketers of America weekly update on important national industry news

August 2, 2024

Inside the Beltway Update

We’re a week into the House’s early-August recess, and the Senate left town Thursday afternoon. Congress will resume “normal” business when the House and Senate return on September 9.

This week, before leaving town, Senators were hard at work attempting to set the stage for passage of critical bills in September. As members prepare to end the summer session, the Appropriations Committee has now completed markup and held votes on 11 of 12 FY 2025 funding bills. Homeland Security funding is the one bill remaining, with much consternation stemming from debates over border security, immigration, and—following the attempted assassination on former President Trump – funding for Secret Service. When Congress returns in September, they will have to pass a Continuing Resolution (CR) to continue government funding beyond September 30. The conventional wisdom is that Congress will pass a CR extending funding into early December and then, depending on the outcome of the election, will either conclude FY 2025 funding within the calendar year or try to pass another into 2025, though the latter will likely only occur if either party sweeps the election.

Appropriations was not, however, the only committee working this week, as members of the Energy and Natural Resources (ENR) Committee completed markup and favorably reported their long-awaited energy permitting reform bill, which ENR Chair Joe Manchin (I-WV) called a “bipartisan piece of legislation that will speed up permitting and provide more certainty for all types of energy and mineral projects without bypassing important protections for our environment and impacted communities,” adding that it would “advance American energy once again to bring down prices, create domestic jobs, and allow us to continue in our role as a global energy leader.”

Despite bipartisan action, given the truncated Congressional calendar, the upcoming election, and the partisan division existing broadly in the House and Senate, this bill has a very murky path forward. We do not expect much legislation to pass between now and the election, and then members will be racing against the clock to pass a long list of must-pass legislation, including annual appropriations, the National Defense Authorization Act (NDAA), and an extension of the Farm bill before the end of the 118th Congress. As such, building enough momentum for this legislation to break into the calendar will likely be too tall an order, though it’s conceivable that it could be attached to a potential Continuing Resolution, omnibus, or minibus spending package, so we will continue to monitor the legislation should it begin to pick up some steam.

Outside of committee, the full Senate tried and failed to pass H.R. 7024, the Tax Relief for American Families and Workers Act, a bipartisan tax package that had passed the House with a wide 357-70 margin. On Thursday, Senate Majority Leader Chuck Schumer (D-NY) wanted to give vulnerable Democrats some campaign fodder. Members like Senator Sherrod Brown (D-OH) will now be able to criticize Republicans for blocking a bill to expand the Child Tax Credit. Still, the vote on cloture – which failed – was not entirely along party lines, with Sens. Markwayne Mullin (R-OK) and Josh Hawley (R-MO) voting with Democrats to invoke cloture and advance the bill, but, alas, that vote failed and now Senators are well on their way back to their states for an August recess that will likely be quite eventful, though mostly because of politics and not policy.

One issue that arose this week is that Senators wrote the Treasury Department to ensure its forthcoming Clean Fuel Production Credit (45Z) guidance would only protect domestic producers of biofuel, adding that “finalizing this rule in a timely manner will provide farmers, renewable fuel producers, end-users, and other biofuels stakeholders with the certainty and clarity they need to invest and make planting decisions.” They also noted that failure to do so would lead renewable fuel producers to import feedstocks from places like China and Brazil in direct opposition to the intent of Congress. They said that if our Treasury does not support the production and utilization of domestic feedstocks, the U.S.’s renewable fuel industry will necessarily shift towards imported feedstocks, and encouraged Treasury to ensure any federal tax dollars can only be provided to domestic producers. EMA is concerned that limiting the credit to domestic producers could impact prices at the pump and have been urging Congress to extend the biodiesel blender’s tax credit for another year.

Just last week, Representatives Mike Carey (R-OH), Claudia Tenney (R-NY), Annie Kuster (D-NH) and Mariannette Miller-Meeks (R-IA) introduced the “Biodiesel Tax Credit Extension Act of 2024,” (H.R. 9060), which aims to extend the $1 per gallon biodiesel blender’s tax credit through 2025. Extending the biodiesel blender’s tax credit is important to energy marketers in order to sell a growing portfolio of affordable, efficient, and environmentally friendly liquid fuels that are helping to reduce emissions while propelling Americans forward and lowering heating fuel costs.

Unfortunately, the Inflation Reduction Act (IRA), which was signed into law in 2022, replaced the biodiesel blender’s tax credit with a new 45Z Clean Fuel Production Credit (CFPC) based on carbon intensity scores. Ethanol, biodiesel, renewable diesel and sustainable aviation fuel (SAF) will all be eligible for the new production tax credit, however, the Department of the Treasury has yet to publish CFPC guidance. Therefore, it is important that Congress acts soon to extend the biodiesel blender’s tax credit to give impacted industries market certainty for at least another year. Depending on the outcome of the November elections, a GOP controlled Congress could reelevate much of the IRA’s tax credits so stay tuned.

While members will only be in Washington briefly between now and the election, we will continue to work to ensure EMA’s interests are addressed in the Capitol and on the campaign trails, and we look forward to protecting EMA’s federal agenda in the limited legislating we expect in September and beyond the election.

EMA Regulatory Alert -- EPA Issues Emergency Fuel Waiver Due to Refinery Shutdown

Yesterday, the EPA issued an emergency fuel waiver to alleviate fuel shortages in four states where gasoline supply is affected by the ExxonMobil refinery shutdown in Joliet, Illinois due to tornado activity in the area.

The EPA is waiving the federal Reid vapor pressure requirements (RVP) for conventional and reformulated gasoline (RFG) along with state SIP requirements for low volatility gasoline in Illinois, Michigan, Wisconsin and Indiana.

The Clean Air Act allows the EPA, in consultation with the Department of Energy (DOE), to waive certain fuel requirements to address shortages due to emergency conditions. As a result, the EPA determined that extreme and unusual fuel supply circumstances exist in the waiver area and granted a temporary relief to help ensure that an adequate supply of gasoline is available in the affected areas until normal conditions to the region can be restored.

Under the temporary waiver, regulated parties, including wholesale and retail gasoline marketers may sell and distribute conventional and RFG in the waiver area with an RVP pressure of no more than 9.0 psi (10 psi if the gasoline contains 9% to 15% ethanol).

The waiver is effective August 1, 2024 through August 20, 2024 unless extended. Floor stocks of noncompliant gasoline allowed under the waiver may be sold until wholesale purchaser and retail storage tanks are depleted.

EMA Mourns Loss of former Distinguished Service Award Recipient Don Craft

EMA is saddened to announce the passing of Don Craft on July 27, 2024 surrounded by his five loving children and stepson.

Don was born on January 19, 1935 in White Plains, NY and spent his childhood there and in New Rochelle, NY, growing up during the Great Depression.

Don started his career in Washington, DC at the Technical Material Corporation as the Director of Marketing. He then moved to New Haven, CT and joined Wyatt Incorporated where he worked as Executive Vice President of Sales and Marketing for 33 years.

Don truly loved what he did and proudly continued to work until he was nearly 80 years old. During the second chapter of his career, Don served as Director of Mergers and Acquisitions and Director of Industry and Legislative Affairs for Star Gas Partners, Vice President of Marketing and Strategic Development in the Energy Lending Department at Citizens Bank, Director of Business Development at Global Partners, and last as Director of Marketing Development at Gulf Oil.

Don was a member of the Heating Fuels Committees of the Petroleum Marketers Association of America, now known as the Energy Marketers of America (EMA), the Pennsylvania Petroleum Association (PPA), and the Empire State Petroleum Association. He also served as a member of the Boards of Directors of the National Association of Oilheat Research and Education (NAORE), the Connecticut Energy Marketers Association (CEMA), the Massachusetts Oil Heat Council, the Oil Heat Institute of Rhode Island, the New Jersey Fuel Merchants Association, and the Oil Heat Institute of Long Island. In addition, he was president and chairman of the New England Fuel Institute (NEFI) and a member of the NEFI Education Foundation. He was also president of the Independent Connecticut Petroleum Association in 1970 - 1971, and a founding board member of the National Oilheat Research Alliance (NORA).

Don received many awards over his career including the Energy Marketers of America’s Distinguished Service Award in 2004, the industry's highest honor.

To View Don's Full Obituary, Click Here.

Transportation Energy Institute (TEI) Releases Low Carbon Biofuels Report

Over the past several years, the Transportation Energy Institute (TEI), formerly the Fuels Institute, has published several research reports related to the decarbonizing of internal combustion engines, improving internal combustion engine (ICE) efficiency, and emissions and the effectiveness of biofuels in reducing emissions. This past week TEI released a new report titled “Balancing the Benefits of Biofuels,” which looks at the potential impact of the expansion of the production of crop-based biofuels on food supplies and prices. The report evaluates historical agricultural land allocation for biofuels production, biofuels by-products and food production, carbon impact of biofuels, and the cost of biofuels. The report indicates that technological advances in agriculture have improved productivity at a rate that has outpaced the increase in demand resulting in a decline in land in agricultural use with minimal impact on biofuel cost and food production.

This latest report along with prior reports can be downloaded from the TEI webpage (Reports - Transportation Energy Institute). In addition to this latest report, TEI continues to evaluate biofuels and is in the process of developing a scope of work for a new research project to evaluate the status of the development and availability of low carbon fuels. Specifically, this research is intended to provide a better understanding of the viability of low carbon liquid fuels currently or potentially in the market, along with what’s needed for these fuels to be viable and when that might occur.

EMA’s Fall Meeting at the NACS Show 2024: October 6-7: Website and Registration Open!

EMA will hold its Fall Meeting in conjunction with the NACS Show on October 6-7 at the Encore at Wynn Las Vegas. The EMA meeting will begin with a New Attendee Orientation/Federal Legislative Update mid-afternoon on October 6. NACS/EMA Reception Salute to State Association Executives (all EMA members are welcome) will follow at Las Vegas Convention Center in the Hunter Club Lounge. On the morning of October 7, there will be a Buffet Breakfast followed by Region and Committee Meetings. The EMA Board of Directors meeting is scheduled after the Distinguished Service Award Luncheon honoring Spirit® Petroleum President and former Washington State Marketer Gerry Ramm exclusively sponsored by EMA Board of Director Council Partner Federated Insurance.

A reminder invitation was sent to your inbox on July 31. Registration deadline is September 3, 2024 and our room block is nearly sold out so please do not delay in making plans! Responding to the links on the invitation email is the recommended way to register.

Remember, the NACS Show registration is separate from EMA’s Fall Meeting registration.

Special EMA Members Code for NACS Show 2024 Registration

The NACS Show is returning to Las Vegas this October, and it’s time to start planning.

Using this code provides EMA with $100 for every retailer or jobber paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association’s member companies. Please see attached flyer.

**Please note that EMA State Execs are comped for NACS Show registration, and this link is expected to be sent out this week from NACS. Additionally, the NACS Show registration is separate from EMA’s Fall Meeting registration.

Again, the EMA NACS Show Registration Code is: EMANS2024 and CLICK HERE for Full Instructions to register.

Questions registering for NACS Show? Contact NACS Show registration customer service at nacs@maritz.com or 469-513-9489, Monday-Friday, 9:00 a.m. – 5:00 p.m. EST, for assistance.

July 2024 Energy Marketers of America Small Business Committee (SBC) PAC Contributions

PAC Co-Chairs Mike Downs and Tim Keigher are grateful for the Energy Marketers of America Small Business Committee (SBC) PAC contributions from the following individuals during July 1-31, 2024 time frame:

Connecticut: Sharon Peterson

Montana: Lexie Acken, Dan Alexander, Wes Burly, Ken Cruz, Vern Draney, Todd Fickler, Jadyn Gridley, James Kibbe, Mark Lauer, Jon Matovich, John Monahan, Brady Patch, Mike Piatchek, Bryce Simpson, Louie Sutey, Jared Vallevik

Nebraska: Janet Koinzan, Scott Moore

New York: Joseph Alonzo, Kris DeLair

South Carolina: Ryan Adams

Tennessee: Hershel Basham, Kim Lappin

Texas: Bobby Warren

Utah: John Hill

Virginia: Mark Anderson, M.C. Andrews Jr., B. Lash Barksdale, Robert Clayton, Danny Cockerham, Julie Deshazo, James Emmart, Garry Gray, William Holtzman, Timothy Hutchens, Richard Koontz Jr., Hugh McCormick III, Susan Milby, Mary Morgan, Timothy Murphy, Cary Nelson, Mike O’Connor, John Phillips, James Pollard IV, Paul Pollard, Ronald Prewitt, James Ridenour Sr., Arnold Riggs, William Russell, David Sutton Jr., David Walsh, Stratford Ward, John Woodfin Jr.

Weekend Reads

The Future of the EV Mandate

C-Store Industry Secures Key Protections in Massachusetts iLottery Law

Kroger, Albertsons Could Divest 10% of Fuel Outlets, Analysis Shows -- OPIS

Federated Insurance Risk Management Academy Webinar
Managing Your Cyber Risk: Thursday, August 15, 2024, 2:00 p.m. Eastern Daylight Time

Cyber-crime is one of the fastest growing and most dynamic exposures in business today. It's common to hear about a security breach or incident involving the loss of sensitive data to hackers. At this webinar, we will discuss how risk management that will help reduce a business’s exposure to cyber threats, as well as coverage options available to help keep your digital assets safe.

What you will learn:

• How insurance coverage can help
• Types of data to protect
• Cyber security best practices
• Risk management to help reduce exposure
• Underwriting requirements and coverage options
• Additional resources

Advanced registration is required for this 30-minute webinar.

For additional information or to discuss this in further detail, please feel free to contact your Federated regional representative or EMA’s new National Account Executive Patrick Cunningham at 507.455.8935. Federated is a Partner in EMA’s Board of Directors Council.

Member Services Benefit with RINAlliance
Are you taking advantage of the Renewable Fuel Standard?
Earlier this year, the Energy Marketers of America announced an exclusive member service agreement with RINAlliance, so that every fuel marketer has an opportunity to leverage the Renewable Fuel Standard (RFS).

Whether a fuel marketer is determining whether to blend and take renewable fuel with RINs, or whether they are a current RFS participant looking to improve RIN management, RINAlliance can help with strategies, tools and expert support.

Schedule your consultation today to learn more by visiting www.rinalliance.com/contact. Be sure to tell them you heard about RINAlliance through EMA or one of its Federation members.