Urge House Lawmakers to Pass the Transportation Security Screening Modernization Act!

Last month, the Senate approved the Transportation Security Screening Modernization Act by unanimous consent, S. 3959, that would eliminate costly background check redundancies within the Transportation Worker Identification Credential (TWIC), Hazardous Materials Endorsement (HME), and TSA PreCheck programs. Now it is up to the House to approve the bill before the end of this year. EMA encourages you to reach out to your lawmakers this week.

Truck drivers hauling fuel must obtain additional credentials beyond their CDL, such as the TWIC and HME. These credentials, while vital to safety and security, are managed by TSA through duplicative background checks, redundant fees, and avoidable administrative hurdles. The background check required for all three programs is the same, and the enrollment process should be consolidated for multiple credentials. Taking these steps will help increase the number of qualified drivers, reduce supply chain backlogs, and support the timely delivery of essential motor and heating fuel products that drive America's economy.

Main Street Competition Coalition Praises First Robinson-Patman Enforcement Action in a Generation

This week, the Federal Trade Commission (FTC) took a historic stride toward restoring marketplace fairness and lowering consumer prices when it voted 3-2 to enforce the Robinson-Patman Act (RPA) for the first time in a generation. Even the incoming Chair, Andrew Ferguson, clearly acknowledged the long overdue use of the Act by the FTC. RPA prohibits price discrimination when buyers purchase goods in similar quantities or volumes. The FTC’s bipartisan vote demonstrates the critical importance of enforcing our nation’s existing antitrust laws to level the playing field for Main Street businesses and the local communities they serve.

Although the FTC’s enforcement action is narrowly focused on the alcohol distribution market, the ripple effects will be felt across all markets for goods, demonstrating that enforcers are serious about leveling the playing field and promoting fair competition. It’s a win for consumers looking for more choices and better prices as RPA enforcement ensures that the same discounts big retailers secure through aggressive tactics are fairly available to all retailers and wholesalers who buy in similar quantities.

The decision is being applauded by the Main Street Competition Coalition, a broad alliance of businesses of all sizes, as well as farmers and ranchers, who have been sounding the alarm for years on the increasingly brazen practices of giant companies weaponizing their size to harm smaller competitors and trading partners.

“It is no secret that a handful of big companies have taken advantage of decades of lax antitrust enforcement to gain an economic advantage in the market,” said Chris Jones, Chief Government Relations Officer & Counsel of the National Grocers Association. “Instead of competing head-to-head, it's much easier for many corporate giants to simply use their muscle to get ahead and avoid the disciplining forces of competition. Today’s enforcement action is a crucial step towards a competitive landscape that will improve the standing of American consumers.”

“Dominant firms have exploited their power for years, and the impact has been devastating for Main Street” Rob Underwood, President and CEO of the Energy Marketers of America added. “Robinson-Patman enforcement will restore true price competition and give consumers more choices in the marketplace.”

“The FTC’s action shows that the Robinson-Patman Act is still relevant and vital today because fairness and competition aren’t antiquated concepts in the 21st Century,” said Matt Seiler, R.N., Esq. Vice President, and General Counsel of the National Community Pharmacists Association. “This enforcement action sends a strong message to dominant firms that they can no longer disregard a law that is still in effect.”

About the MSCC

The Main Street Competition Coalition is comprised of national and state industry trade associations and agriculture groups who support vigorous enforcement of the Robinson-Patman Act. Our membership constitutes the backbone of Main Street America, including independent grocers, community pharmacists, convenience stores, truck stops, independent bars and restaurants, booksellers, hoteliers, package stores, wholesale distributors, and farmers and ranchers. Our advocacy mission and full membership list are available on our website: www.mainstreetcompetition.com.

Urge Congress to Extend the Biodiesel Blender’s Tax Credit

Recently, 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 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, and it is unlikely to do so before President Biden leaves office. 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.

• Heating fuels marketers -- click here to write Congress to extend the Biodiesel Blender’s Tax Credit.
• Motor fuels marketers -- click here to write Congress to extend the Biodiesel Blender’s Tax Credit.

Meanwhile, EMA submitted comments to the House Ways and Means Committee regarding the Importance of Extending the Biofuel Blender’s Tax Credit. Click here to read the comments.

FDA Very Low Nicotine Content Rule Submitted to OMB

In the final days of the Biden Administration, the FDA has submitted a proposed rule for review to the Office of Management & Budget (OMB); the rule apparently would establish a maximum nicotine level in cigarettes and certain other combusted tobacco products.

Since the proposed product standard regulation has not yet been published, the maximum level of nicotine that the FDA would set is not known, and the publicly available materials do not identify the specific categories of other combustible products to which such a nicotine level cap would also apply.

Typically, to propose a new regulation such as this one, a federal agency is required to follow a multi-year, nine-step process that involves identifying the need for a new regulation, drafting the regulation, having the White House Office of Management and Budget review the proposed regulation under applicable executive orders, publishing the proposed regulation for public comment, reviewing all public comments, making any changes deemed necessary to the regulation, obtaining final White House Office of Management and Budget approval, and publishing the final regulation with an effective date. According to the OMB dashboard website, by sending this proposed rule to OMB for review, the FDA is currently on the fourth step of this nine-step process.

With former President Trump set to become President in January, the proposed rule faces future uncertainty. He has already announced his plans to nominate new leaders, Robert Kennedy as Secretary of the Department of Health and Human Services and Martin Makary as FDA Commissioner. Both nominations require Senate confirmation.

Inside the Beltway Update

Congressional leaders are expected to release the text of a continuing resolution (CR) over the weekend to push the government funding deadline to mid or late March 2025. The CR is expected to include roughly $100 billion in emergency supplemental funding to address recent natural disasters and may include additional year-end legislation, such as a package of health bills. Congress is expected to adopt the CR prior to the current government funding deadline of December 20.

This week, House Republicans also finalized recommendations for committee leadership in the 119^th Congress. Current House Transportation and Infrastructure (T&I) Chairman Sam Graves (R-MO) was granted a waiver by the House Republican Steering Committee to continue leading the T&I Committee next Congress. The Steering Committee also selected Reps. Brett Guthrie (R-KY) and French Hill (R-AR) to lead the House Energy and Commerce and Financial Services Committees, respectively.

House and Senate leaders are continuing to prepare to consider major tax legislation under expedited reconciliation procedures in the first 100 days of the 119th Congress, a process that will restrict amendments and allow passage by a simple majority vote. This week, House Ways and Means Committee Chairman Jason Smith (R-MO) and incoming Senate Majority Leader John Thune (R-SD) met to discuss differences in reconciliation strategy between the House and Senate. House leaders, including Speaker Mike Johnson, currently favor passage of one reconciliation bill containing tax legislation and other provisions on border security, energy, and other Republican priorities prior to the end of April 2025, while Senate leaders supportive of two reconciliation packages, with tax legislation considered after a border and energy package.

Weekend Reads

A Christmas gift for California oil refiners

GOP senators fear House chaos could derail Trump’s agenda

Hobbs not currently eyeing legal action over California gas regulations

Cassidy moves to sell Republicans on carbon tariff pitch

Mazda: Americans Want Cheap Gas Cars

Federated Insurance Employment Practices Network HR Question of the Month

Federated Insurance’s HR Question of the Month focuses on employment-related practices liability issues. This month’s question is: Employee Pay During Weather Closures. We had to close our office for a few days due to the recent storms. Are employees entitled to be paid for the days we were closed? Does it matter if the employees are exempt or nonexempt? All our employees are paid a salary, but some are exempt, and some are nonexempt. Please click here to read the response.

Please always feel free to contact your Federated regional representative or EMA’s National Account Executive Patrick Cunningham at 507.455.8935 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.

Chevron
uncertain times call for certainty in your fuel supply

The fuel industry is still waiting to learn the fate of the Blenders Tax Credit (BTC), scheduled to expire on December 31, and the Clean Fuel Production Credit (CFPC) that starts on January 1, 2025. The Treasury Department has not yet provided guidance on the CFPC, and multiple industry groups have asked Congress to extend the BTC.

These credits, and the differences between them, will affect the price you pay for your heating oil. The BTC offers a per-gallon tax credit for biodiesel and renewable diesel, which can be used for in-home heating oil. In contrast, the CFPC potentially provides benefits for additional renewable energy sources like hydrogen, wind, geothermal and closed-loop biomass. Fuels will be incentivized based on carbon intensity, meaning the CFPC may impact feedstock values.

The CFPC credit is earned by the producer of the qualifying fuel rather than the blender. To qualify for credit under the CFPC, the fuel must be produced in the U.S., meaning imported fuel is not eligible.

Chevron’s feedstock flexibility allows us to use a mix of feedstocks, such as used cooking oil, soybean oil and distillers corn oil. With the anticipated increase in demand and corresponding elevated production of renewable fuels, we are working to expand and establish new sources and negotiate the long-term supply of feedstocks. This helps to meet the needs of our customers, which vary according to their requirements and applications. We see this as a good opportunity for innovation in the coming years; not only to enhance our access and utilization of current feedstocks but also to locate, develop and utilize new or novel feedstocks.

For additional information about Chevron, please visit or contact Jason Lawrence. Chevron is an EMA Executive Committee Council Partner.

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