Energy Marketers of America Weekly Review - September 27, 2024
Energy Marketers of America Weekly Review - September 27, 2024
Energy Marketers of America weekly update on important national industry news
September 27, 2024
First and foremost, our thoughts are with our members and their families who are currently being impacted by Hurricane Helene. We also want to recognize the critical role that many of our EMA members in the region will be playing as their communities recover from the storm. We are deeply grateful for the work each one of them will undertake to keep our essential energy infrastructure operational.
This will be a brief Washington update, as Congress took swift action this week to avert a government shutdown by passing a Continuing Resolution (CR) extending government funding until December 20. The process moved quickly following a bipartisan, bicameral agreement on a clean CR announced last Sunday. This outcome frustrated former President Donald Trump and far-right Republicans, who had pushed for a six-month CR that included the SAVE Act, which mandates definitive proof of citizenship for voter registration (though it is already illegal for non-citizens to vote). As we covered previously, Mr. Trump had urged a government shutdown if the SAVE Act was not included. After that effort failed, the Speaker, Senate leadership, and Appropriations Committee leaders opted for a clean CR, maintaining current funding levels, and allowing Congress more time to address funding issues after the election. Once the House and Senate passed the CR with broad bipartisan support, Congressional leaders quickly recessed, sending members back to their campaigns, proving once again that nothing motivates Congress more than the prospect of leaving town.
It is important to note that this CR is only a temporary solution and when Congress returns, it faces a packed agenda, with ongoing appropriations work joined by other must-pass legislation, including the National Defense Authorization Act and the Farm Bill. All of these will need to be addressed in November and December, and that does not even include other notable legislation like the Credit Card Competition Act. Even so, with government funding now set to expire five days before Christmas, the stakes are higher for Congress to complete a significant amount of work quickly as a shutdown or failure to act on some of this must-pass legislation during the holiday season could prevent members and their staff from returning home to see their families, not to mention the negative impact it would have on the continuation of government functionality.
On the biofuels infrastructure front, Senator Joni Ernst (R-IA) and Amy Klobuchar (D-MN) sent a letter to the USDA requesting more funding for the Higher Blends Infrastructure Incentive Program (HBIIP). Specifically, the Senators urged the USDA to extend HBIIP funding with the Commodity Credit Corporation (CCC) funds to assist retail store owners to purchase the infrastructure necessary to provide e10 and b20 plus blends at the pump and b20 plus blends for heating fuel distribution facilities.
“Since its inception in 2020, HBIIP has been vital in expanding access to higher blends of biofuels like E15, E85, and B20 for customers. Through a cost-share approach, HBIIP has helped fuel retailers invest over $77.8 million in biofuel-related infrastructure projects, leading to an estimated 1.2-billion-gallon increase in annual biofuel sales,” wrote the senators. “However, access to these higher blends of renewable fuel can only occur if the proper infrastructure is in place at our gas stations, truck stops, and heating fuel facilities, a gap HBIIP has and will continue to help bridge. As the final quarter ends on September 30, 2024, we strongly encourage the USDA to allocate CCC funds to sustain this essential program.”
Meanwhile, Senator Roger Marshall (R-KS) and several Midwest lawmakers introduced the bicameral/bipartisan Farmer First Fuel Incentives Act requiring the Treasury Department to restrict the eligibility of the 45Z Tax Credit to renewable fuels made only from domestically sourced feedstocks and extending the tax credit to make it a full ten-year credit.
Another issue that we are monitoring is the possible strike forthcoming at ports along the East Coast and in the Gulf of Mexico, which, barring any changes, is expected to begin on October 1. The International Longshoremen's Association (ILA) union, which represents about 45,000, is entangled in a pay-dispute with the United States Maritime Alliance, which is represents the interests of the operators of the main ports involved with the dispute. There is concern that a lack of agreement and potential strike could reignite inflation and create significant supply chain bottlenecks for goods nationwide.
Energy Marketers Are Prepared for Hurricane Helene
Energy marketers are fully prepared for Hurricane Helene - in part because of regulatory waivers that were provided in advance of the storm. Therefore, marketers will not start the storm recovery with any deficits. EMA will continue to maintain near constant communication with states in the impact zone as well as the surrounding states. Marketers and EMA stand ready to begin recovery once it is safe to do so. Please reach out to Sherri Stone if you have any requests with disaster response at 703-472-7980 and click here for EMA’s Disaster Response Page.
The Merchants Payments Coalition welcomed this week’s announcement that the U.S. Department of Justice filed a lawsuit against Visa alleging that some of its debit card practices are anticompetitive and violate federal antitrust law.
“This is further evidence that Visa has regularly blocked competition in the debit card market,” MPC Executive Committee member and National Association of Convenience Stores General Counsel Doug Kantor said. “Visa has relentlessly flouted the law to maintain a monopoly over setting fees for transactions made with cards issued under its brand and for processing those transactions. While this case is focused on debit cards, it shows how we desperately need competition over credit card swipe fees, which currently face no competition at all.”
The DOJ’s lawsuit alleges that a number of Visa’s practices relating to debit cards have violated the Sherman Antitrust Act. The government says Visa made exclusive agreements that hindered expansion of competing networks and also that it blocked efforts by technology companies to enter the market.
The move follows reports in 2021 that the DOJ was investigating whether Visa had limited merchants’ ability to route debit card transactions over competing networks. Visa confirmed in a filing with the Securities and Exchange Commission that year that the DOJ “has informed Visa of its plans to open an investigation into Visa’s U.S. debit practices.” In 2023, DOJ was reportedly investigating whether Visa charged higher fees to merchants unless they used its proprietary tokenization technology for debit cards.
The allegations show the efforts that Visa made to block the ability of unaffiliated debit card networks like Star, NYCE or Shazam to compete for market share. The competing networks have lower fees and better security.
In spite of Visa’s violations of antitrust laws, debit card fees have some competition that benefits Main Street small businesses and their customers because Congress passed legislation known as the Durbin Amendment in 2010 to ensure such competition existed by allowing debit transactions to be routed over competing networks.
On credit cards, however, Visa and Mastercard each price-fix swipe fees charged by banks that issue credit cards under their brands, and completely block transactions from being processed over other networks. The CCCA would require banks with over $100 billion in assets to enable cards to be processed over at least two unaffiliated networks, similar to the Durbin Amendment requirement for debit cards. That would make networks compete over fees, security and service, saving merchants and consumers $16 billion a year.
Credit and debit card swipe fees totaled a record $172 billion in 2023, according to the Nilson Report, and are most merchants’ highest operating cost after labor. The fees are too high to absorb, especially for small merchants, and drive up consumer prices by an estimated $1,100 a year for the average family. A recent report by payments consulting firm CMSPI estimated the cost at $224 billion with an impact of $1,700 a year per family.
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.
Nevada GOP Senate Candidate Sam Brown will address EMA during its Legislative Briefing on Sunday, October 6 from 3:30-5pm. Brown is a Purple Heart recipient, a small businessman, a committed husband and father, and he represents a new generation of independent conservative leadership. As the oldest of five children, he quickly learned the importance of servant leadership, and his parents instilled in him an undying commitment to the service of others. Sam always had a desire to serve his country but, when he witnessed the 9/11 terrorist attacks, that desire became an ironclad resolve.
Only four months into his deployment, Sam was on a mission when he received word that another nearby platoon had been ambushed. So, he led his team into battle to provide support for his fellow soldiers. Upon entering the engagement area, a roadside bomb detonated under the fuel tank of his vehicle, leaving him drenched in diesel and covered in flames. By the grace of God, Sam’s gunner was able to extinguish the flames before they took his life. During the three years he spent in recovery, Sam fell in love, married, and started a family with U.S. Army First Lieutenant, Amy Larsen, who worked as his Burn Unit Dietitian.
So, Sam enrolled in Southern Methodist University’s MBA (master’s in business administration) Program, looking to grow his resume and experience. Once Sam graduated, he took a job as a manager at an Amazon fulfillment center, while also using his newfound set of skills to launch a small business that provides emergency pharmaceutical support to Veterans outside of the VA. Once again, Sam is being called to serve his country in a new way. That’s why today, he’s running to represent Nevada in the U.S. Senate.
The Motor Fuels Committee will feature Dan Short of Marathon Petroleum Company LP, Reo Menning of RINAlliance and Jeff Carpenter of Higher Blends Infrastructure Incentive Program (HBIIP). The Heating Fuels Committee will also feature Reo Menning of RINAlliance, Jeff Carpenter of Higher Blends Infrastructure Incentive Program (HBIIP) and Michael Devine of the National Oilheat Research Alliance (NORA). The Convenience Store Committee will feature Amber Moore of Altria Group Distribution Company and Chris Semrau of Worldpay. The Board of Directors Meeting will feature Patrick Cunningham of Federated Insurance and Chris Elliott of BP Products North America Inc. EMA has also invited Senator Jacky Rosen (D-NV) to address the EMA Board of Directors.
Federated Insurance, Altria Group Distribution Company and Marathon Petroleum Company LP are EMA Board of Directors Council Partners. BP Products North America Inc. is an EMA Executive Committee Council Partner. RINAlliance is an EMA Corporate Gold Partner. Worldpay is an EMA Corporate Silver Partner.
Speaker information is available here.
EMA will hold a PAC raffle during the EMA Fall Meeting at the Encore at Wynn in Las Vegas, Nevada October 6-7. The raffle winner will be identified during the conference on October 7. The winner does not have to be present to win. If you are not attending the conference and you are the fortunate owner of the Ben Hogan Framed Photo, you will be notified the week following the October drawing.
Ben Hogan was considered one of the greatest players in the history of golf. He is one of only five players to have won all four majors. This framed photo captures a small piece of history.
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 Ben Hogan Framed Golf Photo are available for purchase until October 4. Ticket sales will continue at the Energy Marketers of America’s conference in Las Vegas until the drawing on October 7. 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 3, please email completed PAC Raffle flyer to Sabrina Pitcher.
Monday is the Last Day to Apply for USDA Higher Blend Infrastructure Grants
The United Stated Department of Agriculture (USDA) is continuing to accept applications for its higher blend Infrastructure Incentive Program (HBIIB) for energy marketers. In addition the agency is funding 160 projects in 26 states to expand access to clean energy systems and increase the availability of domestic biofuels. HBIIP seeks to increase the availability of higher blends of ethanol and biodiesel derived from U.S. agricultural products by sharing the costs to build and retrofit biofuel-related infrastructure. Grants cover up to 75% or $5 million of total project costs to help facilities convert to higher-blend fuels. The fuels must be greater than 10% for ethanol and greater than 5% for biodiesel.
The $450 million in new funds are made on a quarterly calendar basis starting July 1. Each quarter the USDA is making available $90 million to support a variety of fueling operations:
- Approximately $67.5 million will be made available to transportation fueling facilities, including fueling stations; convenience stores; larger retail stores that also sell fuel; and transportation, freight, rail and marine fleet facilities.
- Approximately $18 million will be available to fuel distribution facilities, including terminal operations, depots and midstream operations.
- Up to $4.5 million will be made available to home heating oil distribution facilities.
There will be five application windows for HBIIP between July 1, 2023, and Sept. 30, 2024. A sixth application window will be opened if funding has not been exhausted. USDA continues to accept HBIIP applications until September 30, 2024, at 4:30 p.m. ET. For more information, go to the HBIIP webpage.
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Federated Insurance Risk Management Academy Webinar
Fire Prevention: Thursday, October 17 2024, 2:00 p.m. Eastern Daylight Time
A fire can spark up in seconds, and it could happen to you, potentially leaving your business damaged or destroyed. This presentation focuses on steps your business can take to help prevent fires, along with identifying various causes and hazards that may not be on your radar to help you, and your business stay safe.
What you will learn:
- How to analyze some of the main causes of fire across all industries
- Common causes of fires that are not on most company’s radars
- How to address potential fire risks through consistent risk management
Advanced registration 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 new National Account Executive Patrick Cunningham at 507.455.8935. Federated is a Partner in EMA’s Board of Directors Council.
Tired of Delayed IRS Tax Refunds?
EMA Member Service Benefit with IRS-Approved E-File Company ThinkTrade to Help Streamline IRS Tax Refunds
Last year, 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.
CLICK HERE FOR MORE INFORMATION ON ThinkTrade and EMA’s LANDING PAGE TO FILE TAXES |