EMA Regulatory Alert: The Impact of a Government Shutdown on Federal Regulatory Agencies

Each year, Congress must pass 12 spending bills before October 1, the start of a new fiscal year for the federal government. As Congress failed to act by September 30, the federal government has officially entered into a “shutdown,” meaning it faces a lapse in funding, and all nonessential functions ceased at 12:01 a,m. on October 1.

Lawmakers can pass a short-term funding extension (Continuing Resolution-CR) to temporarily fund the affected agencies and services at the previous year’s level until a full-year appropriation can be worked out.

Agencies may continue to operate temporarily beyond the October 1 deadline by using any unexpended funds leftover from the previous fiscal year or other sources of appropriations, like the Inflation Reduction Act (IRA). Most agencies have only a few days of unexpended funds to continue operations.

The following is an overview of how key federal agencies are affected by the current shutdown.

Internal Revenue Service

• Potential delays and long wait times for taxpayers, including motor fuel excise tax refund claims, if the IRS exhausts contingency funds set aside under the IRA, originally intended for system modernization.
• The contingency plan covers the first five business days following a lapse in appropriations.
• Capacity constraints from prior workforce reductions mean that shutdowns exceeding five days could significantly delay tax-related processes, affecting energy marketers and other taxpayers. For context, after the 34-day government shutdown at the end of 2018, it took over a year to clear claims backlogs. During the COVID-19 shutdown, energy marketers faced long delays processing motor fuel excise tax claims, tying up millions in refunds for tax-exempt sales of clear diesel fuel. Similar delays are possible.
• The IRS pays interest on delayed refunds: for paper claims, after 45 days of receipt; for electronic claims, after 20 days.

Environmental Protection Agency

• All rulemaking, guidance, policy development, civil enforcement inspections, permit issuance, and approvals of pending state requests (i.e., authorized/delegated state-issued EPA permits and State Implementation Plans) are suspended.
• Superfund site activities will continue only where a failure to maintain operations poses an imminent threat to human life.
• Timely payments to contractor and grantees will continue if available funds are obligated and the employees necessary to make the payments are excepted or exempted.
• The EPA may exempt activities depending on available funds.
• EPA regional offices are similarly affected by a lapse in appropriation.
• Approximately 89% of EPA workforce will be furloughed.

Department of Health and Human Services

• Already facing uncertainty with appropriations separately from the shutdown, the Low-Income Home Energy Assistance Program (LIHEAP) may be impacted.
• State grantees with leftover funding may continue distributing leftover funds until exhausted.

Transportation Security Administration

• The Transportation Worker Identification Credential (TWIC) and the Hazardous Materials Endorsement (HME) background-check programs are self-funded and fee-based and therefore not impacted by government appropriations.
• Driver background checks will continue as usual.
• TWIC and HME enrollment centers remain open during normal hours of operation.
• The Coast Guard will continue to enforce the TWIC program and secure ports without interruption.

Federal Motor Carrier Safety Administration

• All FMCSA operations continue, funded by the Highway Trust Fund and fees.
• Portals, including the Drug and Alcohol Clearing House, will remain operational.
• No employees will be furloughed.

Pipeline and Hazardous Materials Safety Administration

• Investigations of hazardous materials accidents, inspections of shippers/carriers, testing facilities, and cylinder reconditioning facilities continue.
• Hazardous materials enforcement actions proceed, but rulemaking is suspended.
• Registration programs and fee collections pause.
• Approximately 190 of 579 employees will be furloughed.

Department of Homeland Security

• The E-Verify portal will cease operation. Employers must still complete Form I-9 but will not be penalized for delayed entry into E-Verify.

Small Business Administration

• Paycheck Protection Program (PPP) loan forgiveness processing continues.
• No new small business loans or support under CDC 504 or 7(a) Loan Programs.

U.S. Department of Agriculture

• The Higher Blends Infrastructure Incentive Program (HBIIP) continues, fully funded under the IRA and not subject to annual appropriations.
• Biofuel feedstock rulemaking and contract management activities related to energy and environmental markets continue using IRA funds.
• SNAP benefits continue via multiyear carry-over funds. Limited staff are exempted from furlough to maintain operations, including program policy, financial management, and stakeholder communications.

Federal Government Supply Agreements

• Fuel sales to federal government facilities may continue though payment can be delayed.

As we went to press on this article, President Trump continues to vow to use the government shutdown to make further cuts and lasting changes to Executive branch agencies. The White House also has taken steps to halt billions of dollars of federal funding to Democrat-led states to increase political pressure on the Democrats over the shutdown.

EMA Regulatory Alert: California’s Vehicle Emissions Standards and Federal Pushback

The Trump Administration is actively challenging California regulators’ efforts to reinstate previous vehicle emissions standards following Congress’ recent revocation of the State’s Clean Air Act waiver that would have imposed electric vehicle (EV) mandates. This development has implications for liquid fuel demand, vehicle market dynamics, and escalating state-federal regulatory tensions.

California Makes Another Move

The California Air Resources Board (CARB) initially adopted the Advanced Clean Cars (ACC I) regulation in 2012, targeting 8% EV and plug-in hybrid sales by model year 2025. In 2022, ACC II replaced it with a mandate of 100% EV and plug-in hybrid sales by 2035. Following Congress’ revocation of EPA waivers for model years 2026 and beyond (ACC II), CARB is now seeking to revert to its 2012 (ACC I) regime. The agency asserts that reverting to ACC I clarifies its authority to certify vehicles in the State amid ongoing federal uncertainty. CARB has scheduled a board vote on November 20 to decide whether to implement this rollback.

This move comes as California and several other states, which had intended to follow California’s lead (allowed under the Clean Air Act), filed a lawsuit challenging the revocation mechanism under the Congressional Review Act. Additionally, litigation is pending regarding EPA’s ACC I Clean Air Act waiver following the recent Supreme Court ruling affirming that fuel stakeholders, including EMA, have legal standing to challenge the ACC I waiver.

CARB is proposing to scale back standards as a backstop to continue promoting EV penetration. In response, EPA issued a public statement and letter asserting that it retains authority to approve CARB’s proposed scaled-back standards, while signaling that approval is unlikely.

Another Source of Dispute and Uncertainty

The dispute is part of broader federal efforts to roll back California’s EV mandates, originally implemented under the Biden Administration. After Congress revoked the Clean Air Act waivers, EPA proposed repealing all greenhouse gas standards applicable to light-, medium-, and heavy-duty vehicles and engines, emphasizing that such actions would not compromise federal preemption.

For fuel wholesalers and retailers, this regulatory uncertainty may impact gasoline and diesel demand. While EV and plug-in hybrid sales have grown—albeit at a slower pace in Q2 2025—the outcomes of legal challenges and federal-federal disputes will be critical in shaping market dynamics.

EMA has submitted comment letters to EPA and DOT, urging regulators to adopt uniform federal policies that preserve consumer choice and support long-term fuel consumption. EMA members should monitor developments closely, particularly EPA’s responses and potential impacts on vehicle fleet composition and fuel demand.

FDA Commissioner Encourages Retailers to Stop Selling Illicit Vapor Products

On Tuesday, FDA Commissioner Dr. Marty Makary announced an initiative to increase voluntary compliance from tobacco and nicotine retailers. As part of this effort, FDA will be mailing materials to more than 300,000 retailers nationwide containing:

• A list of the PMTA Marketing Granted Orders which include 39 vapor products and 20 nicotine pouch products;
• Information on accessing FDA’s Searchable Tobacco Product Database, a database of over 17,000 tobacco products—covering all categories, such as cigarettes, cigars, and vapor products—that may be legally marketed in the United States; and
• New tobacco retailer education materials, including a wall calendar of reminders focused on retailer requirements such as only selling tobacco products to those 21 and older and requiring a photo ID check of anyone under 30.

Over the past month, the FDA has increased its enforcement efforts including announcing the seizure of 4.7 million units of unauthorized vapor products with an estimated retail value of $86.5 million – the largest-ever seizure of this kind. This was part of a joint federal operation that uncovered shipments of various illegal vapor products, almost all of which originated in China and were intended for shipment to various destinations in the United States.

Announcing Our Fall Meeting Speakers!

EMA is pleased to announce the following speakers to address energy marketers attending EMA’s Fall Meeting at the NACS Show.

The New Attendee Orientation will feature John Wenzel of StoneX Financial Inc. The Motor Fuels Committee will feature Chevron. The Heating Fuels Committee will feature Michael Devine of the National Oilheat Research Alliance (NORA). The Convenience Store Committee will feature Kyle May of Reynolds American, Inc., Amber Moore of Altria Group Distribution Company, David Fredericks of PDI Technologies, and Chris Semrau of Worldpay. The Board of Directors Meeting will feature Jack West of Federated Insurance and Dan Mulvaney of Philip Morris International.

Federated Insurance, Reynolds American, Inc., Altria Group Distribution Company, and Philip Morris International are EMA Board of Directors Council Partners. StoneX and Chevron Renewable Energy Group are an EMA Executive Committee Council Partner. PDI Technologies is an EMA Corporate Platinum Partner. Worldpay is an EMA Silver Corporate Partner.

Speaker information is available here.

Join the EMA MDF Excursion Auction!

The Energy Marketers of America Marketers Defense Fund (MDF) Excursion Auction will take place in conjunction with EMA’s Fall Conference October 13-14. Bidding is now open and will close October 14 at 12 noon central time. The Excursion Auction offers unique experiences from the Best of Texas Wine Country, to Run for the Roses, or Watch the Best Football Players Live, to the Northern Lights in Canada.

All EMA members are eligible to participate from anywhere in the United States if they download the C2Auction App on their mobile phone.

To access the bidding platform:

1. Text the word EMA to 71760
2. Click the text message reply link
3. Follow instructions to complete your registration

Once you have accessed your account, browse all items or search by item name to begin bidding. On each item, you will see various options:

1. Bid: Bid at the pre-assigned increment
2. Watch: Clicking "Watch" will put this item in your "My Items" box in the menu for easy access
3. Set Auto-Bid: Allows you to set a maximum bid. As others bid on this item, the system will automatically increase your bid, up to your maximum bid limit.

As you enter a winning bid or are outbid, you will receive a message alerting you of your status. You will be notified at the end of the Excursion Auction if you are a winning bidder!

If you have Excursion Packages that you would like to contribute to the EMA MDF Excursion Auction, please email completed form to Sabrina Pitcher.

Purchase PAC Raffle Tickets for an Opportunity to Win a 1956 Cubs Team-Signed Baseball

You have an opportunity to win a 1956 Chicago Cubs team-signed baseball that is a collectible item featuring signatures of players from the 1956 Chicago Cubs team. The item comes with the Chicago Cubs single gold glove logo baseball display case.

EMA will hold a PAC raffle during the EMA Fall Meeting at the InterContinental Chicago Magnificent Mile in Chicago, Illinois October 13-14. The raffle winner will be identified during the conference on October 14. The winner does not have to be present to win. If you are not attending the conference and you are the fortunate winner of the 1956 Cubs Team-Signed Baseball, you will be notified the week following the October drawing.

The proceeds of the raffle will benefit the EMA Small Business Committee (SBC) PAC. The money distributed to the PAC is used to benefit federal legislators who support the industry and have a solid record on key industry legislative issues.

Tickets are $25 each or five for $100. Advanced tickets for the 1956 Chicago Cubs team-signed baseball are available for purchase until October 10. Ticket sales will continue at the EMA’s conference in Chicago until the drawing on October 14. Tickets must be paid for with personal funds by MasterCard, VISA, American Express, cash (cash cannot exceed $100 due to Federal regulations) or check, which should be made out to the EMA SBC PAC. To purchase tickets before October 11, please email completed PAC Raffle flyer to Sabrina Pitcher.

September 2025 Energy Marketers of America Small Business Committee (SBC) PAC Contributions

PAC Co-Chairs Mike Downs and Tim Keigher are grateful for the EMA Small Business Committee (SBC) PAC contributions from the following individuals during the September 1-30, 2025 time frame:

Alabama: Michael Williams

Arizona: Stephanie Hart

Connecticut: John Bowman

Illinois: Tyler Williams

Iowa: Doug Coziahr

Kansas: David Achten, Ted Augustine, Alison Bridges

Kentucky: David Carter, Bob Riley

Louisiana: Eric Curole, Josh Isbill, Emily Jones, Shawn King, Darrel McCartney

Nebraska: Jennifer Assmann, Jared Baker, Jennifer Likes, Matt Lippincott, Chad Wollan

New Mexico: Leland Gould

Pennsylvania: Andrew Bradigan

New York: Matt Carner, Ryan Hoerner, Alex Mirabito, Kristyn Schweitzer, Stephen Wolf

Utah: John Hill, Travis Berryhill, Matthew Porter

Weekend Reads

Macquarie Reveals Latest Oil Price Forecasts | Rigzone

Oil edges lower for fourth day on oversupply concerns | MSN

SNAP Restrictions Could Cost C-Stores $1 Billion | Fuels Market News

Trump admin cancels climate change funding to blue states: Vought

U.S. Government Shutdown Leaves Energy Markets on Edge | MSN

PDI Loyalty Evolution
3 Fast Ways to Modernize C-Store Loyalty

Want to give your convenience loyalty program a makeover? Start with a digital transformation that might already be overdue. Here are three smart strategies to keep your customers coming back for more.

1. Move beyond the Linear Loyalty Funnel
   The traditional marketing funnel is essentially a relic that’s being replaced by a more dynamic mix of scrolling, searching, and shopping. That’s why it’s harder to predict modern consumer behavior. They zigzag through digital touchpoints, making impulse decisions based on real-time relevance rather than traditional reward sequences and schedules. Your loyalty program needs the agility and flexibility to keep up.

2. Make Personalization Your New Currency
   Loyalty programs are getting a lot smarter. Today, 74% of c-store loyalty members expect personalized offers tailored to their unique habits and preferences. Imagine receiving a perfectly timed coffee discount at 8 AM or a two-for-one snack deal precisely when your energy level crashes at 3 PM. That’s what today’s shoppers expect—and it’s how modern loyalty technology works best.

3. Factor in More Foodservice
   Smart retailers are leveraging “foodvenience,” using fresh prepared foods and meal offerings as loyalty magnets. With the online food delivery market hitting $353.3 billion in 2024, c-stores that integrate foodservice into their loyalty programs are capturing traditional convenience shoppers, QSR diners, and the growing delivery-focused demographic. Don’t miss out on this vast audience!

Want to anticipate your customers’ needs before they even know they have them? Make your loyalty program personal, instant, and irresistibly convenient with more insider insights. PDI Technologies is an EMA Corporate Platinum Partner.

Federated Insurance Risk Management Academy Complimentary Webinar
Fire Prevention: Thursday, October 16, 2025, 1:00 PM Central Time

This presentation will explore common fire hazards in businesses across the nation. It will go over how different industries and operations can be at risk and highlight how to identify various fire hazards to help prevent them before they start.

What You Will Learn:

• Current Statistics and Trends
• Common and Special Hazards
• Spontaneous Combustion
• Thermal Runaway
• Safe Practices

Who Should Attend:

• Business Owners / Operators
• Risk Managers
• Operations Managers
• HR Professionals

Please click link to REGISTER: RMA Complimentary Webinar Invitation

For additional information or to discuss this in further detail, please contact your Federated regional representative or EMA’s National Account Executive Jack West at 262.719.7750 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®

Tired of Delayed IRS Tax Refunds?
EMA Member Service Benefit with IRS-Approved E-File Company ThinkTrade to Help Streamline IRS Tax Refunds

In 2023, the Energy Marketers of America (EMA) announced an exclusive member service agreement with ThinkTrade, an IRS authorized e-filing service provider and a BBB accredited company with A+ rating, enabling safe and secured filing for taxpayers. ThinkTrade will grant EMA member companies a 15 percent discount off ThinkTrade’s e-filing services through a dedicated landing page to prepare, file and pay federal excise tax returns on IRS Forms 720, 8849 and 2290.

With over two decades of experience serving customers, ThinkTrade has a proven track record of delivering savings and support to trucking companies of all types and sizes when filing federal excise taxes. Energy marketers will also have access to ThinkTrade’s dedicated 24/7/365 support team, which provides one point of contact for all e-filing service needs.