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.

Federal Judge Blocks Corporate Transparency Act’s (CTA) Beneficial Ownership Reporting Requirements

This week, the U.S. District Court for the Eastern District of Texas granted a nationwide injunction suspending enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting Rule. The injunction suspends obligations to file initial BOI reports by Jan. 1, 2025. The court found that the CTA is likely unconstitutional, but an appeal is expected; however, businesses should monitor deadlines and be prepared to file.

The injunction applies nationwide, providing that all businesses subject to the CTA’s reporting requirements are relieved of their CTA filing obligations until further notice. For companies created prior to 2024, the ruling suspends their obligation to submit their initial BOI reports to FinCEN before the Jan. 1, 2025, deadline. For companies created in 2024, this suspends their obligation to report within 90 days of formation.

Businesses should remain cautious and continue to monitor their reporting obligations. The district court’s injunction is preliminary and likely to be appealed and could be reversed or vacated on appeal. If compliance requirements are reinstated, there is no assurance whether or how the prior reporting deadlines may be extended. In view of these developments, it seems likely that FinCEN will take action in response before the end of the year, such as issuing interim guidance or a position statement on the case.

The court’s decision to grant the injunction was based on the court’s preliminary assessment that the CTA and the reporting rule is outside of the power granted to Congress and may violate constitutional protections. In his 79-page opinion, Judge Amos Mazzant ruled that the reporting rule “is likely unconstitutional as outside of Congress's power,” noting that the law only regulates the “existence” of anonymous corporate entities, not their economic or commercial activity or operations. In granting the injunction, the court determined the injunction should apply nationwide, noting that the CTA and its reporting obligations apply to “approximately 32.6 million existing reporting companies” across the nation. The court determined it could not provide meaningful relief to those affected without enjoining the CTA and reporting rule nationwide.

The bottom line: Reporting companies do not need to comply with the CTA reporting deadlines. The ruling, however, is not a final determination of the CTA’s constitutionality; instead, it only temporarily halts enforcement while the case proceeds.

Tell Your Members of Congress to Support Robinson-Patman Enforcement

After years of neglecting the Robinson-Patman Act (RPA), the FTC has finally revived enforcement of this critical antitrust law aimed at preventing large corporations from using their size to undermine smaller competitors. Now, big firms benefiting from past non-enforcement are spreading disinformation about this law, which seeks to level the playing field and ensure fair deals for consumers.

Enforcing the Robinson-Patman Act will boost competition among retailers, leading to lower prices for consumers. It will also help suppliers and smaller retailers grow their businesses and invest more in their workers, addressing wage issues caused by years of unfair practices. The law makes sure all businesses, big or small, can access discounts, creating fair competition that benefits everyone. This isn’t about favoring small businesses—it’s about stopping big companies from using their size to crush competitors.

FDA Enforcement Update: Warning Letters Disposable Vapor Products

This week, the FDA announced the issuance of warning letters to 115 brick-and-mortar retailers for selling unauthorized e-cigarette products. Cited in the warning letters were illicit flavored disposables brands including Geek Bar Pulse, Geek Bar Skyview, Geek Bar Platinum, and Elf Bar.

Click here to view the disposable vapor brands cited as unauthorized or illegally sold as they have been cited with FDA civil money penalties, import alerts, seizures and warning letters courtesy of the National Association of Tobacco Outlets (NATO).

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 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, 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.

House Approves Legislation to Support Small Businesses

The House approved the Prove It Act of 2024 (H.R. 7198) which shifts power to American small businesses to drive economic growth and forces federal bureaucrats to better consider the overall effect that government regulation has on small business before finalizing economically burdensome rules.

The Regulatory Flexibility Act (RFA) of 1980 requires federal agencies to consider the economic impacts of regulations on small businesses and small entities. However, federal agencies often blatantly ignore the RFA’s requirements. For example, according to one report, in 75% of rulemakings, the Small Business Administration determined that federal agencies ignored costs on small businesses or underestimated a regulation’s cost.

Today, American small businesses pay over seven times as much per employee as medium-sized businesses on compliance. The average cost of regulation is estimated to be over $14,000 per employee for small businesses in America and total over $3 trillion annually. Regulatory burdens make it more difficult and costly to start a business, harming American innovation and competition.

H.R. 7198 encourages job creation and empowers small businesses by requiring agencies to consider the direct and indirect costs of regulations on small businesses, creating a mechanism for small businesses to challenge regulations when regulators do not consider the effects on small businesses, exempting small businesses from regulations under certain circumstances and ensuring small businesses can easily access regulatory compliance guidance documents. It’s unlikely the Senate will take up the legislation but the incoming Congress will likely have a better shot at getting the bill over the finish line.

November 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 November 1-30, 2024 time frame:

Arkansas: Ethan Blackman, Kimball Davis, Steve Ferren, Steve Goode, Jackie McClure, David Hendrix Jr, Albert Heringer IV, Justin Sewell

Connecticut: John Bowman, Chris Herb, Nickey Kollie

Kansas: Dennis McAnany

New Mexico: Valkyrie Musarra

North Carolina: Vann D. Clark

Pennsylvania: Jason Flohr

Texas: Danny Kendrick

Virginia: Lloyd Little, Mike O’Connor, John Pollard, Herman Sadler Jr.

November 2024 Contributors to EMA MDF

Energy Marketers of America’s Marketer Defense Fund Committee wants to thank the following individuals for their Marketer Defense Fund (MDF) contributions during the November 1-30 timeframe:

Arizona:
Arizona Petroleum Marketers Association (APMA)

Colorado:
Colorado Petroleum Marketers and Convenience Store Association (CWPMA)

Kansas:
Dennis McAnany, McAnany Oil Company, Inc.

Minnesota:
Fueling Minnesota

Missouri:
Missouri Petroleum & Convenience Association (MPCA)

New Mexico:
New Mexico Petroleum Marketers Association (NMPMA)

Oklahoma:
Ray Harris, ASAP Energy, Inc.
Rick Koch, ASAP Energy, Inc.
Brian Lohman, ASAP Energy, Inc.
Oklahoma Petroleum Marketers & Convenience Store Association (OPMCA)

Oregon:
Oregon Fuels Association (OFA)

Tennessee:
Tennessee Fuel & Convenience Store Association (TFCA)

Washington:
Washington Independent Distributors of Energy (WIDE)

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.

Weekend Reads

ATA urges manufacturers to leave California Clean Truck Partnership | TRUCKINGDIVE

US diesel production reaches five-year high: EIA

Credit Card ‘Swipe’ Fees Could Cost Consumers Over $20 Billion During Holiday Season Shopping | Merchants Payments Coalition

Exclusive: Biden administration will not finalize clean fuel tax credit guidance | Reuters

Federated Insurance: It’s Your Life
Does Your Buy-Sell Agreement Meet Your Needs?

Many business owners spend a lifetime building a business without considering the range of life events that could impact their business succession planning. Although some business owners have put together buy-sell agreements on the advice of their corporate attorney, it’s not a bad idea to review your plan with someone experienced at drafting business succession planning documents.

When designing a business succession plan, you need to carefully consider each life event that may impact your business and the impacted owners. Access the complete article here.

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.

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 another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services are not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.

EMA Platinum Partner Spotlight Featuring: Meridian Associates, Inc.
Strategic Planning for an Even More Successful Year by Betsi Bixby

Nothing is more vital to your company than a sound strategic plan. It communicates a unifying vision to all in the organization while optimizing resource allocation.

Strategic planning should not be confused with a formal business plan. Although there may be some overlap, a formal business plan is normally prepared for outsiders, while a strategic plan is strictly for internal use.

The traditional approach to strategic planning is top-down: upper management determines company goals then drives action plans via delegation to achieve the goals. The problem with this typical approach is lack of buy-in from the troops, which means goals are either not achieved, or many unnecessary hurdles occur.

At Meridian, we utilize high involvement planning where every level of the organization is involved in the strategic planning process. A typical planning team includes a store clerk, a driver, a dispatcher, a customer service person, etc. as well as the usual owner, controller, and top management. We use people from all levels of the organization for one simple reason – it’s effective.

Click here to read the article in its entirety including how Betsi’s Strategic planning can be boiled down into four steps.

To learn more about EMA’s Corporate Platinum Partner, Meridian Associates, please visit or contact them at 817-594-0546.