U.S. Senate Overturns the “California Car” Mandate

Yesterday, the United States Senate approved Congressional Review Act (CRA) resolutions to overturn Biden-era rules granting Clean Air Act waivers to California. The CRA vote to block California’s ban on the internal combustion engine passed by a vote of 51 – 44 with Senator Slotkin (D-MI) voting with Republicans. The vote to overturn California’s Advance Clean Trucks rule was approved 51 - 45 as well as California’s heavy-duty NOx rules, 49 – 46.

The CRA resolutions were strongly supported by the Energy Marketers of America. 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.

Earlier this month, the House approved the CRAs with 35 Democrats in support to stop California from dictating which cars motorists should drive and 13 democrats voted to block California’s electric truck mandate.

California’s ACC II rule included 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 applauds the Senate for taking swift action to stop California’s ban on the internal combustion engine. Liquid fuels are here to stay, and small business energy marketers applaud Senate Majority Leader John Thune (R-SD) for maneuvering through the Senate’s complex floor debate rules to make the CRA votes a reality,” said EMA President Rob Underwood.

Shortly after the Senate vote, California's Attorney General Rob Bonta said that the State will file a lawsuit against the Trump administration to ensure that it can continue to set its own vehicle emission limits under the Clean Air Act. While Attorney General Bonta refused to detail California's legal arguments for challenging the congressional vote overturning the State's phase-out of internal combustion vehicles by 2035, it is expected that the State will assert that the Congressional Review Act does not apply to waivers granted by EPA. The statute has not been used in the past to rescind a Clean Air Act waiver.

California Governor Gavin Newsom also made a political argument for continuing the waivers, urging the federal government to get out of the State's way on vehicle technology (i.e., EVs) and climate change leadership, and saying that the congressional Republicans will "Make America Smoggy Again." The Governor also contends that overturning the waiver will give the keys to EVs to China.

Inside the Beltway Update

House Republicans notched a major legislative victory this week – their largest of the 119th Congress to date – by advancing their multi-trillion-dollar reconciliation package, known as the One Big Beautiful Bill Act (H.R. 1), before their ambitious Memorial Day timeline. EMA joined 50 other members of the Main Street Employers Coalition in a letter to support the bill. The legislation builds on the success of the 2017 Tax Cuts and Jobs Act by extending critical provisions and providing much-needed certainty to the Main Street business community. As part of the coalition, EMA emphasized the importance that the bill enhances and makes permanent three cornerstone provisions for pass-through businesses: the lower individual tax rates, the Section 199A pass-through deduction, and the higher estate tax exemptions. The bill also restores immediate expensing for research and experimentation costs, brings back 100-percent bonus depreciation, and restores the larger cap on interest deductions.

Specifically, the House advanced the reconciliation package by a vote of 215 to 214, with Reps. Warren Davidson (R-OH) and Thomas Massie (R-KY) joining all Democrats in opposition to the bill and Rep. Andy Harris (R-MD) voting present. In addition to significant spending cuts, the legislation includes numerous Member and presidential tax priorities, including extension of the 2017 Tax Cuts and Jobs Act (TCJA), limits on taxation of tipped income and overtime pay, and tax relief for seniors. President Trump, Speaker Mike Johnson (R-LA), and several other congressional leaders steered the bill to passage following several setbacks in recent days, including a failed vote in the House Budget Committee last Friday. Ultimately, several days of negotiations between House leadership and Republican Members on highly contentious provisions, including the state and local tax (SALT) deduction cap and changes to Inflation Reduction Act (IRA) clean energy tax credits, led to a deal with holdouts.

The bill now proceeds to the Senate, where Republican Senators are expected to scrutinize several of the bill’s proposals and consider many of their own tax and spending proposals. Key differences remain between House and Senate Republicans on several high priority items, including early phaseouts of IRA tax credits, the size of the SALT cap, and the length of business and individual tax cuts. Lingering differences between the two chambers may prolong the ongoing tax debate over the coming weeks.

Click here for the full Squire Patton Boggs’ analysis of the tax provisions in H.R. 1. Additional relevant items to EMA include:

• Home Efficiency Tax Credit (25C): Unfortunately, the House Ways and Means Committee draft tax legislation terminates the Home Efficiency Tax Credit (25C) after December 31, 2025. This credit currently provides 30% of the cost of installation for qualified home efficiency improvements including oil-fired furnaces and boilers which are eligible for up to $600 if they meet 2021 ENERGY STAR® specifications and are designed for use with high blends of renewable fuels.
• Home Electrification and Appliances Rebate (HEAR) Program: Unfortunately, the House Ways and Means Committee draft does not repeal the Home Electrification and Appliances Rebate (HEAR) Program (IRA Sec. 50122) which offers up to $14,000 per home, including up to $8,000 for qualified heat pump systems. The draft bill also preserves the whole-home efficiency rebate program (IRA Sec. 50121) and the Climate Pollution Reduction Grants program (IRA Sec.60114) which creates an unlevel playing field between home heating energy sources.

EMA urges lawmakers to either scrap the Residential Electrification Rebate Program, the whole-home efficiency rebate program and Climate Pollution Reduction Grants Program to level the playing field between all energy sources or restore the 25C Energy Efficient Home Improvement Credit.

Urge Senators to Vote ‘Yes’ on the Marshall – Durbin Amendment aka the Credit Card Competition Act!

Senators Roger Marshall (R-KS) and Richard Durbin (D-IL) have filed an amendment aka the Credit Card Competition Act to the Senate’s stablecoin cryptocurrency bill (the “GENIUS Act”). The amendment would require that credit cards issued by the largest U.S. banks have at least two unaffiliated payment networks - ensuring competition in transaction routing. While the amendment opportunity and process are still unclear, we want to ensure that Senators know where we stand, and that’s why we are urging you to contact your Senators now to explain how credit card fees hit your businesses and encourage adoption of the Marshall-Durbin Amendment. The more pressure we put on Congress for an Up or Down vote on the Marshall – Durbin Amendment, the better off we are for success! The Senate will likely take up the Genius Act following Memorial Day Recess.

DOT Submits CAFE Rule to OMB for Review to Address EV Mandates

The U.S. Department of Transportation (DOT) has submitted a final rule to the White House’s Office of Management and Budget (OMB) that may affect how fuel economy standards are interpreted and applied under the Corporate Average Fuel Economy (CAFE) program.

While details remain limited, the rule—originating from the National Highway Traffic Safety Administration (NHTSA) -- is categorized as an interpretive final rule rather than a legislative one. Interpretive rules are exempt from the notice-and-comment procedures required by the Administrative Procedure Act, meaning agencies can issue them without public input or a formal comment period.

This pending rule is not expected to repeal the Biden administration’s existing fuel economy standards, which would require a full notice-and-comment rulemaking. Instead, it appears aimed at refining how the CAFE program is administered, potentially in response to legal and policy concerns raised by stakeholders. EMA recently urged NHTSA to provide regulatory relief on this front.

Of particular interest to energy marketers, the rule may address the role of EVs in setting CAFE compliance baselines—an issue at the center of ongoing litigation in which EMA is participating as a “friend of the court.” The pending rule at OMB could moot the litigation if NHTSA agrees that the Clean Air Act prohibits it from using EVs in setting the CAFE standard.

“This appears to be an important first step toward addressing the former administration’s efforts to electrify fleets without clear statutory authority,” said EMA President Rob Underwood. “We will continue to advocate before NHTSA to rescind its final rule and propose revised standards that account for cost burdens and fuel-related technological feasibility.

EPA Issues First E15 and E10 Waivers

Earlier this week, the EPA notified Governors that the Agency has formally continued its emergency fuel waivers for E15 gasoline nationwide and for E10 gasoline in those seven Midwestern States that had opted out of allowing the sale of E10 gasoline in their States with a 10-psi RVP. EPA states in its letter that these waivers were issued in response to fuel supply concerns and the potential for price spikes. The emergency fuel waivers are effective on May 21, 2025, and continue for 20 days – the maximum duration for these emergency fuel waivers under the Clean Air Act. EPA said its intention is to issue successive emergency fuel waivers throughout the summer driving season.

This is the fourth successive summer that EPA has issued emergency fuel waivers for E15 gasoline. The Agency's action temporarily suspends the seasonal restriction that had prohibited E15 sales from June 1 through September 15. EPA Administrator Lee Zeldin testified before a Senate panel last week, stating that the Agency supports year-round access to E15 and that Congressional action is the "most desirable and easiest solution."

In addition to the nationwide E15 gasoline waiver, EPA relaxed the volatility standards for E10 gasoline in Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin. This emergency fuel waiver for E10 gasoline is intended to alleviate fuel supply constraints by requiring 7.8-psi RVP base gasoline for E10 to meet the RVP limits in these seven States. Under the emergency fuel waivers, 9.0-psi RVP base gasoline may still be used in these States, and the E10 blend can be sold in these jurisdictions with a 10-psi RVP.

"EMA applauds Administrator Zeldin for issuing this important E10 waiver for several Midwest states to prevent price spikes at the pump. EMA will continue to advocate for comprehensive policies that maximizes fungibility and infrastructure compatibility and minimizes retail price volatility," said EMA President Rob Underwood.

DOT to Enforce English Language Proficiency Requirements for Commercial Drivers

The U.S. Department of Transportation (DOT) has issued new guidance that strengthens enforcement of English language proficiency (ELP) requirements for commercial motor vehicle (CMV) drivers. Beginning June 25, 2025, CMV drivers who fail to demonstrate sufficient English proficiency under 49 CFR § 391.11(b)(2) will be placed out-of-service.

Announced by DOT Secretary Sean P. Duffy in Austin, Texas, the updated guidance restores enforcement tools rolled back by the Obama administration in 2016. This action aligns with President Trump’s April 2025 Executive Order on highway safety, affirming that English proficiency is a non-negotiable qualification for safe commercial driving.

1. Roadside Inspections Will Begin in English

• FMCSA inspectors will initiate all roadside inspections in English.
• If the driver struggles to understand initial instructions, a formal ELP assessment will be conducted.

2. ELP Assessment Includes Two Steps:

• Step 1 – Driver Interview: Assesses the driver’s ability to respond in English to basic official inquiries. Use of interpreters, cue cards, or translation apps is not allowed.
• Step 2 – Traffic Sign Recognition: If needed, drivers will be tested on their ability to understand U.S. road signs, including electronic message boards.

3. Enforcement Actions:

• A driver found noncompliant will be cited and placed immediately out-of-service.
• FMCSA personnel may also initiate driver disqualification proceedings if warranted.
• Drivers may not resume CMV operations in interstate commerce until the issue is resolved.

The guidance document provides that inspectors communicating with non-native speakers of English should speak slowly, but naturally and be mindful not to rush the questions.

EMA marketers employing or contracting drivers should verify ELP compliance to avoid disruptions in service and potential enforcement action. Drivers must be able to read and understand road signs and changeable message boards and communicate with law enforcement, inspectors, and other regulatory personnel without translation tools.

More information about FMCSA’s ELP policy can be found here.

Special EMA Members Code for NACS Show 2025 Registration

The NACS Show is returning to Chicago this October and this year's Energy Marketers of America's Registration Code is: 2025EMANS

Using the 2025EMANS code provides EMA with $100 for every retailer or marketer paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association's member companies. Click here for the flyer and the early bird pricing ends June 13, 2025.

**Please note that EMA State Execs are comped for NACS Show registration. Additionally, the NACS Show registration is separate from EMA's Fall Meeting registration.

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.

THANK YOU to EMA’s Partner Sponsors for Washington Conference!

EMA wants to give a huge THANK YOU to our EMA Board of Directors Council and Executive Committee Council Corporate Partner Sponsors: Federated Insurance, Reynolds American, Altria Group Distribution Company, Marathon Petroleum Company LP, Philip Morris International, Valero Energy Corporation, StoneX Financial Inc., Citgo Petroleum Corporation, ExxonMobil, Chevron, HF Sinclair, BP Products North America, Shell, AGI, Spirit Petroleum and Meridian Associates!

Energy Marketers of America (EMA) and Mississippi Petroleum Marketers and Convenience Stores Association (MPMCSA) want to extend a distinct THANK YOU to Shell and Federated Insurance for the Reception honoring our 2025 EMA Chair Jim Lipscomb.

We appreciate the loyalty and support of each of our EMA Corporate Partners and their continuous commitment to the energy sector. For more information on our Partner Programs, please contact Rob Underwood.

Weekend Reads

Refining Industry Risks from 2025 Hurricane Season | US Energy Information Administration

Republicans avoid direct clash with Senate parliamentarian on California EV mandate | The Hill