Energy Marketers of America Weekly Review - March 14, 2025
Energy Marketers of America Weekly Review - March 14, 2025
Reminder: Urge Lawmakers to Overturn California Waivers Allowing Internal Combustion Engine Bans
Congress is likely to use the Congressional Review Act (CRA) to overturn the Biden Administration’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 move is strongly supported by EMA, and it was quickly endorsed by Senate Environment and Public Works Committee Chair Shelley Moore Capito (R-WV). The CRA allows Congress 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.
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 a CRA resolution of disapproval for the California waivers and restoring vehicle choice for all Americans.
| Click Here to Take Action |
As Congress remains preoccupied with disagreements over federal funding priorities and budget reconciliation strategy, the Trump Administration continues to shakeup federal agencies and dismantle longstanding federal regulations. This week, the Trump Administration continued its push to reduce the size and scope of federal agencies, with agencies required to submit plans for large-scale layoffs and budget cuts. These plans may tee up additional layoffs and large-scale reorganizations in the coming weeks. As with other early Trump Administration executive actions, the termination of employees at several agencies has prompted legal challenges, with a federal judge on Thursday ordering the Trump Administration to reinstate thousands of fired probationary employees at the Departments of Agriculture, Energy, Interior and the Treasury, among others.
Earlier this week, House Republicans successfully advanced a continuing resolution to fund the government through September. Speaker Mike Johnson successfully overcame widespread Democratic opposition to the stopgap funding measure by securing the votes of over two dozen House Republicans who have historically opposed all short-term funding bills. The CR passed the House along party lines, with just one Republican voting against the funding bill and one Democrat voting in favor. The bill initially faced uncertain odds in the Senate, where several Democratic Senators announced plans to vote against a procedural motion on the bill without assurances from Republicans to hold a test vote on a one-month funding patch. However, on Thursday, Senate Democratic Leader Chuck Schumer (D-NY) announced he would vote to prevent a government shutdown, effectively neutralizing the Democratic opposition to the funding bill.
The House and Senate also continued to deliberate tax legislation this week, with House Ways and Means Committee Republicans holding closed door meetings on Monday and Wednesday to discuss their priorities for upcoming tax legislation and Senate Finance Republicans meeting with President Trump on Thursday to discuss reconciliation strategy.
And last but not least, EMA and other industry groups sent a letter to the House Ways and Means Committee urging Congress to extend the Section 40A Biodiesel Tax Credit to support the advanced biofuel industry and prevent price increases. Click here to read the letter.
A Paradigm Shift: Climate Regulation Moves Toward the States
On March 12, EPA announced sweeping deregulatory actions as part of the Trump administration’s policy of unleashing American energy resources. While most of the regulatory relief directly affects upstream energy producers, EPA’s reconsideration of its 2009 Greenhouse Gas (GHG) Endangerment Finding is a significant development. This move is central to many of the planned regulatory rollbacks, including automotive emission standards and refinery regulations. It is worth noting that the withdrawal of the Endangerment Finding and the following deregulatory actions will undoubtedly result in protracted litigation.
EPA’s authority to regulate GHG emissions under the Clean Air Act (CAA) hinges on the Endangerment Finding. The Obama-era EPA concluded that GHG emissions threaten public health and the environment, legally obligating the Agency to regulate these emissions. If EPA finalizes the withdrawal of the Endangerment Finding, the legal basis for the dependent regulations goes away. Further, with the recent Supreme Court decisions reversing the Chevron Doctrine and setting out the Major Questions Doctrine, it will be difficult for EPA to regulate GHG emissions under many CAA programs.
Tailpipe emission standards would be among the first on the chopping block based on EPA’s announcement. While policies encouraging the use of biofuels are not directly connected to the Endangerment Finding, GHG reduction concerns are embedded in those programs.
As federal climate policy enters a period of relaxation, states are pursuing bold GHG reduction initiatives. State Climate Superfund laws, which seek to impose strict and retroactive financial liability on fossil fuel producers based on GHG contributions, are part of a larger trend in which states seek to capture funding from carbon-intensive operations to finance climate mitigation and resilience projects.
Market-based carbon pricing regulations, such as cap-and-trade programs, are also expected to grow at the state level. Thirteen states already participate in the Regional Greenhouse Gas Initiative, the first multi-state mandatory cap-and-trade program to limit carbon dioxide emissions from the power sector. At the fuels level, New York is preparing to launch a robust cap-and-invest program, in which the state will set declining caps to meet reduction targets, requiring fuel distributors to purchase state-issued allowances. Other states are also considering setting declining caps to tackle in-state fuel combustion by pricing emissions across the value chain, many of which accrue outside state boundaries.
Meanwhile, several states and private petitioners continue to file lawsuits against oil companies demanding compensation for climate impacts. The U.S. Supreme Court has declined to hear state climate lawsuits as recently as this week, signaling deference to states to handle climate policy and disputes. The bottom line is that states will increase regulatory efforts to close the federal gap, potentially setting rules that could meaningfully shape the liquid fuels market.
“EMA fully supports EPA’s actions to lower prices at the pump by addressing electrification mandates,” said EMA President Rob Underwood. “EMA will continue to remain vigilant as climate policy develops at both the federal and state levels to ensure motor fuel and heating oil markets can thrive.”
See EPA’s Announcement here.
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 6:00 pm Eastern or when the room block is sold out. EMA’s room block is currently sold out for Tuesday, May 13, Wednesday night (21 available), and Thursday night (8 available). We will most likely SELL OUT. Please refer to Additional Hotel Information #3 here.
Registration must be received by April 23 to be included in our hotel guarantee.
| Click here to Register and Book your Hotel Room for EMA’s DC Conference and Day on the Hill |
Trump DOJ to climate nonprofits: Hand over info and come to court | E&E News by Politico
US energy secretary promises executives faster industry development | Live Mint
What Will Geopolitical Uncertainties Do To Crude Oil Prices? | Forbes
EMA Spring Journal Issue Online Now
EMA Spring Journal is the current issue online. You can take the digital edition with you wherever you go. Scroll to select the articles that catch your eye, then share the content with the icons at the top of your screen. Archived covers are handy on the left side of your browser or use our convenient search feature to find a specific topic. If you prefer to read with pages that flip, select "page view" from the menu bar for a classic page-turner.
In 2023, the Journal adjusted to three issues per year, making it even easier and more affordable for our members and industry supporters to find and connect with each other. For information on marketing to our members, please call 844.423.7272 or email them at advertise@innovativepublishing.com. Ads for Summer 2025 (NACS Preview) are due by April 25, 2025 to be delivered in July 2025.
Federated Insurance Risk Management Academy Webinar
Who Are Your Safest Drivers: Thursday, March 20, 2025, 2:00 pm Eastern Daylight Time
Company drivers today face distractions unlike any in history, and poor driving behaviors put your company at risk. We’ll take a look into how you can recognize and promote safe driving through the use of our Federated DriveSAFESM telematics program.
What you will learn:
- Why the safety of your drivers and others is so important to your business’ success
- How it takes more than just a policy to get the message across and protect your business
- How to help your drivers move from good to great
Advanced registration 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 National Account Executive Jack West at 262.719.7750. Federated is a Partner in EMA’s Board of Directors Council.
Join FEMA’s Webinar on Pursuing Financial Resilience NOW
On March 18, 2025 FEMA will host a webinar on Disaster Resilience: Pursuing Financial Resilience NOW from 3:00 – 4:30 p.m. EDT.
The Disaster Resilience: Pursuing Financial Resilience NOW session is a part of FEMA’s ongoing Small Business Disaster Preparedness Series aimed at sharing critical information and resources for small businesses to successfully navigate disaster recovery situations and build resiliency before, during, and after disasters. This session will focus on tools, resources, and knowledge needed to enhance financial preparedness before, during, and after disasters or other disruptive events. This session’s topics are individual financial preparedness and tools for enhancing business resiliency and business continuity and includes additional resources for maximizing disaster financial resiliency. If you have questions you would like to submit in advance, please email: OB3I@fema.dhs.gov.
Click Here to Register via Zoom
After registering, you will receive a confirmation email with instructions and a calendar reminder for joining the Session.
Questions? Please email OB3I@fema.dhs.gov.