Energy Marketers of America weekly update on important national industry news

September 6, 2024

EMA Urges House Committee to Pass Bill to Bring Efficiency and Cost Savings to Safety Assessments

This week, EMA urged House Homeland Security Chairman Mark Green (R-TN) and Ranking Member Benny Thompson (D-MS) to advance a revised version of the Transportation Security Screening Modernization Act (H.R. 5840) during a markup next week.

H.R. 5840 is important to energy marketers who are dedicated to supplying fuel where it is needed and maintaining that supply. Marketers face numerous challenges in preserving supply, including a severe driver shortage. One deterrent for drivers who may be considering obtaining their HAZMAT and TWIC credentials is the redundancy and expense of obtaining and maintaining TSA Security Threat Assessment (STA) program enrollments. Streamlining the applications so that an individual may use the application, biometric data, and information generated by TSA’s vetting for one threat assessment program to be used for enrollment in any other such programs will result in greater efficiencies and cost savings for drivers.

Although the Department of Homeland Security (DHS) houses most credentialing programs critical to supply chain continuity, the programs have distinct regulatory requirements that make them inefficient and costly. The Transportation Security Screening Modernization Act would create efficiencies for both the government and supply chain workers by harmonizing programs that require the same background check, including the Transportation Worker Identification Credential (TWIC), Hazardous Materials Endorsement (HME), and TSA PreCheck programs. Additionally, the legislation would allow individuals to apply for enrollment in multiple STA programs at the same time under a reduced fee structure.

An example of the result of the inefficiencies of obtaining and maintaining redundant TSA threat assessment program enrollments came last week in a TSA Federal Register notice announcing fee increases for the Hazardous Materials Endorsement (HME) STA fees by $23.25 for Non-Agent states. There are 8 Non-Agent states: Florida, Kentucky, Maryland, New York, Pennsylvania, Texas, Virginia, and Wisconsin. The standard fee increased from $34 to $57.25 per application and will be effective on December 2, 2024.

TSA is required by law to collect enough fees to cover the cost of processing STAs. Processing for Non-Agent states costs more than Agent states. Non-Agent states require additional oversight, case management and manual intervention. Most of the checks that EMA makes regarding HME application late processing are for Non-Agent states. As directed by Congress, TSA must collect fees to pay for conducting all portions of an STA, including adjudicating the vetting results; administering the redress process, including requests for correction of records, appeals, and waivers; information technology development and maintenance; personnel; billing and collections; and any other costs related to administering the STA.

In 2022, TSA analyzed the costs associated with the HME Non-Agent State STAs and found that the current fees to process these applications do not cover TSA's costs. The fees TSA charges the Non-Agent States have not been revised since 2005, and many recent information technology and customer service improvements, and increased contract costs have not been accounted for in the fees. Also, the Non-Agent State submissions require TSA to expend additional program oversight, case management, and manual intervention to ensure that the biographic information is attached to the correct biometric information. Consequently, TSA has had to hire more staff to accurately process these submissions.

EMA strongly supports H.R. 5840 because it would bring sanity and efficiency to the STA process, thereby reducing federal and business expenses and unnecessary strains on staff and employees.

Inside the Beltway Update

Next week, Congress will return from an extended recess, and they will be returning to work with much to do before getting back to their districts and the campaign trail. First, and most importantly, Congress must pass a Continuing Resolution (CR) by midnight on September 30 to avoid a government shutdown at 12:01 am on October 1. And in the coming weeks, they will surely accomplish this. But first, before passing an extension to push funding to late November or early December, House Republicans will push for a few funding measures that will likely cause consternation in the Senate and at the White House. To that end, Speaker Mike Johnson (R-LA) has already proposed two things: (1) a CR that extends funding into 2025 and (2) the attachment of the SAVE Act, which would require proof of citizenship to vote. It is unlikely that the Democratic Majority would accept either position, and it is less likely that President Biden would sign the bill into law. Regarding the SAVE Act, the White House has already indicated opposition, noting that it is currently illegal for noncitizens to vote. In all likelihood, Congressional Leadership will likely reach a deal on preventing a shutdown, because a shutdown would not benefit either party in an election year. But Congress doesn’t like to turn its homework in early. Or, to paraphrase Winston Churchill, they will ultimately “do the right thing, after they have exhausted all the other possibilities.”

It's also worth noting that passing a CR is only one problem, as Congress will still need to finalize funding for FY 2025 at some point. In addition, depending on the outcome of the election, we expect either a very active or very quiet lame duck session. If either party sweeps, expect them to try to stall as much as possible into 2025 so they can exert more power over forthcoming legislation. But, if government remains divided in any way, we expect members to try to put a bow on as much legislation as possible before handing over the keys to the next Administration. Regardless, between now and the end of the year, we expect additional action on the National Defense Authorization Act (NDAA) to fund the military.

We also expect at least an extension of the Farm Bill, which authorizes funding for the country’s agricultural programs, including nutrition assistance programs such as the Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps. While funding for the Farm Bill lapses at the end of September, Senate Agricultural Committee Chair Debbie Stabenow (D-MI) has indicated there is some runway for funding through the end of the year. Additionally, the Michigan Democrat is retiring at the end of the year and has said she wants to get a full bill done, not just an extension. Similar sentiments have been shared by House Agriculture Committee Leadership, so it’s possible the Committee staff can come together during the coming months and draft a bipartisan bill for release before the end of the year. While it may be a long shot, members may feel they have some breathing room once the elections are behind them, at which point, anything can happen.

All that to say, the next few weeks and months will be a mad dash of legislating, a break for more campaigning, and another mad dash to the end of the year. And, as always, we will ensure EMA and its members are well positioned as each of these actions come together.

EMA Urges Congress to Delay CTA Filing Deadline

Earlier this week, EMA joined over 100 organizations in support of Rep. Zach Nunn’s (R-IA) bill urging the Treasury Department to delay the filing deadlines of the Corporate Transparency Act (CTA). Nunn’s bill, H.R. 9278, is bipartisan legislation designed to delay that Corporate Transparency Act’s year-end filing deadline by one year. The House sponsors are optimistic about securing a vote on the bill in the coming weeks, which would put additional pressure on the Senate to act.

As a reminder, under the CTA, companies must disclose the identities and other information about anyone who owns a stake of at least 25 percent or exercises significant control over the company. Existing companies have until the start of 2025 to file their disclosures.

The CTA was designed to help law enforcement prevent money laundering by requiring shell companies to report information regarding their beneficial owners (BOI) to the Department of the Treasury. The law, however, defines a shell company as any legal entity with 20 or fewer employees or $5 million or less in revenues – in other words, every small business in the United States. The concept of beneficial owner is broadly defined as well, and includes owners, senior management, members of the board and any employee or outside consultant exerting significant control over the businesses’ operations.

Covered entities must report and regularly update the personal information of their “beneficial owners” to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) or face significant fines and jail time. As a result of this broad sweep, FinCEN expects to collect over 32 million submissions just this year, with an additional five million annual submissions thereafter. Multiply 32 million by the number of beneficial owners per entity, and it becomes apparent that the CTA reporting regime is likely the biggest data collection regime in the history of the federal government outside of the tax code.

Earlier this year, a U.S. District Court judge in Alabama ruled that the Corporate Transparency Act (“CTA”) Beneficial Ownership final rule is unconstitutional because it “exceeds the Constitution’s limits on the legislative branch” and fails the “necessary and proper” test. The plaintiffs in this case, the National Small Business Association and one of its members, sued in November 2022, seeking a permanent injunction against the implementation of the CTA reporting rules. For now, however, the injunction only applies to the plaintiffs in the lawsuit. All other reporting companies (who are not plaintiffs in this case) are still bound by the CTA and should continue to comply for now.

The one-year delay of the CTA’s filing deadline would 1) allow the court process begun with the decision in National Small Business Association v. Yellen to work its way through the Appellate and Supreme Courts, 2) be consistent with congressional intent to give covered entities two years to comply with the CTA’s reporting requirements, and 3) provide the business community and the Financial Crimes Enforcement Network (FinCEN) additional time to educate millions of small business owners regarding the new reporting requirements and the onerous penalties resulting if they fail to comply.

To read the letter, click here.

USDA Accepting Applications for Higher Blend Infrastructure Grants; Announces 160 New Grant Recipients

The United Stated Department of Agriculture (USDA) announced it is continuing to accept applications for its higher blend Infrastructure Incentive Program (HBIIB) for energy marketers. In addition the agency announced that USDA 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.

THANK YOU to EMA’s Partner Sponsors for Fall Meeting!

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, Valero Energy Corporation, StoneX Financial Inc., Citgo Petroleum Corporation, ExxonMobil, Chevron Renewable Energy Group, HF Sinclair Refining & Marketing, BP Products North America Inc., Philip Morris International and AGI!

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.

Special EMA Members Code for NACS Show 2024 Registration
Pre-Show Pricing Ends September 27

The NACS Show is returning to Las Vegas this October, and deadlines are approaching. After September 27, onsite registration will increase by $150.

Using this code provides EMA with $100 for every retailer or jobber paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association’s member companies. Please see attached flyer.

**Please note that EMA State Execs are comped for NACS Show registration, and this link was sent out on August 12. Additionally, the NACS Show registration is separate from EMA’s Fall Meeting registration.

Again, the EMA NACS Show Registration Code is: EMANS2024 and 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.

Cash, Cash, Cash & More Cash: MDF Raffle Being Held During EMA’s Fall Meeting at the NACS Show

Get your Energy Marketers of America Marketer Defense Fund (MDF) raffle tickets now for a chance to win $1,000 in cash. The EMA MDF will hold a raffle during the Las Vegas, Nevada October 6-7 conference. The raffle winner will be identified on October 7 and does not have to be present to win. If you are not attending the conference, you will be notified the week following the October drawing if you are the $1,000 “richer” raffle winner.

The proceeds of the raffle will benefit the EMA MDF. EMA Marketers established the MDF to assure that the industry’s best interests are represented on the legislative and regulatory front. This fund has already effectively defeated regulatory initiatives such as proposed requirements to place the point of compliance for fuel quality at the retailer, to force a 10-micron diesel filter mandate as well as a costly wetlines retrofit and automatic temperature compensation (ATC) at retail.

A marketer can make corporate contributions by check or credit card to this program and there is no limit on the amount of contribution. All the money is used to support EMA lobbying goals. You can donate online by clicking here or by scanning the QR code on the flyer.

Tickets are $25 each or five for $100. Advanced tickets are available until October 4. Ticket sales will continue at the EMA’s conference in Las Vegas until the drawing on October 7. Tickets can be purchased with personal or corporate funds by MasterCard, VISA, American Express, cash or check (checks should be made out to the Energy Marketers of America Marketer Defense Fund). To purchase tickets before October 5, please email completed MDF Raffle flyer to Sabrina Pitcher.

Weekend Reads

Why do gas prices drop around presidential elections? | MSN

Why California’s refinery inventory mandate is a bad idea | AFPM

Gulf Coast ports more essential than ever to US energy market (chron.com)

Artificial Intelligence Safety and Cybersecurity Sessions Open to EMA Members

The Oregon Department of Emergency Management and Idaho Office of Emergency Management have opened two sessions on AI and cybersecurity to all EMA members. There is no registration fee and feel free to share with your members.

The Oregon Department of Emergency Management and Idaho Office of Emergency Management invites you to two fall sessions of the global 2024 Public-Private Partnership Security and Resilience Seminar Series, titled “Safely Leveraging Artificial Intelligence in the Workplace,” on Thursday, September 12, at 9 a.m. PT. This event is open to participants from around the world. This session will be presented in two parts. The first will focus on the positive way Artificial Intelligence (AI) is transforming workplaces globally, offering opportunities for efficiencies in such areas as, regulatory compliance, supply chain management and market awareness that leads to informed decision-making. The second installment, scheduled for Thursday, October 10, will explore the challenges, hidden dangers, and managerial risks associated with integrating AI, emphasizing the importance of ethical, secure, and effective implementation. These 90-minute sessions will feature insights from experts in government and the private sector to help seminar attendees explore strategies and considerations for harnessing AI's power responsibly within organizational settings. Speakers: Joe Larkin is the Section Chief of the Emergency Services Section within the Cybersecurity and Infrastructure Security Agency (CISA) at DHS. He leads national efforts to reduce risk and enhance resiliency in the Emergency Services Sector (ESS), which includes Law Enforcement, Fire and Rescue, Emergency Medical Services, Emergency Management, and Public Works; Ashley Shields is a lead professional at Idaho National Laboratory (INL); Josh Webster is the SWAT Assistant Team Leader at the Story County Sheriff’s Office.

The series is sponsored by the Idaho Office of Emergency Management (IOEM), and is a collaborative effort with the Oregon Department of Emergency Management (OEM), the Cybersecurity and Infrastructure Security Agency (CISA), and Albertsons Companies. It involves volunteer speakers with firsthand experience in key business and industry security and resilience topics. Each course can be taken individually and counts towards continuing education with CEU credits. The sessions: September 12 – Safely Leveraging Artificial Intelligence in the Workplace and October 10 – Emerging Cybersecurity Threats: Preparing for the Malicious Use of Artificial Intelligence. To register for the sessions, please click here.

Federated Insurance Risk Management Academy Webinar
Lithium-Ion Batteries (EVs): Thursday, September 19, 2024, 2:00 p.m. Eastern Daylight Time

Lithium-ion batteries power everything from laptops and smartphones to power tools and vehicles with efficiency and portability. However, their widespread use comes with significant risks, as these batteries are contributing to a growing number of workplace fires. How can these risks be mitigated to help prevent misuse, damage, and losses from lithium-ion battery fires?

What you will learn:

• Charging Safety 
• Storage/Transportation Safety 
• Usage Safety 
• Inspection Criteria 

Advanced registration is 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 new National Account Executive Patrick Cunningham at 507.455.8935. Federated is a Partner in EMA’s Board of Directors Council.