Quick Links to Articles for January 10, 2020

U.S. Supreme Court Asked to Consider if EPA Must Make Annual Determinations on Placement of the Point of Obligation Under the RFS

FDA Guidance Banning Most Flavored Cartridge-Based E-Cigarettes Takes Effect February 6

EPA Administrator Expects Final CAFE Standards Rule Within the Next Month

House Democrats Release Draft Framework Aimed at Achieving Net-Zero Emissions by 2050

House Subcommittee Advances EV Grant Bill 

PMAA’s Washington Conference 2020 Room Block Sold Out!

Federated Insurance Risk Management Academy Webinar

PMAA Member Services Spotlight Featuring: National Purchasing Partners (NPP)

PMAA Corporate Platinum Partner Spotlight Featuring: Federated Insurance

On Thursday, PMAA received the following update on the Federal Motor Carrier Safety Administration (FMSCA) driver drug and alcohol Clearinghouse online portal:

• By yesterday afternoon a series of fixes and upgrades were completed. The servers are running smoothly and there has not been any downtime today. The registration and reporting functions are working well with 11,000+ registrants today at this point.

• The portal authentication function for the Clearinghouse was restored today. If a carrier is having issues with their portal account (locked out, password issues, etc.), they may still register for the Clearinghouse and their account can be linked at a later date.

• The remaining issue is centered around problems with Commercial Driver’s License Information System (CDLIS) validation that impacts a carrier’s ability to query and drivers to register. An upgrade to CDLIS will be deployed this evening that will hopefully improve this issue.

PMAA will keep you updated with the latest news.

PMAA provides petroleum marketers across the country a unified, united voice in Washington D.C. One way that petroleum marketers can assist PMAA in carrying out our legislative and regulatory goals is to support the PMAA Small Business Committee PAC (PMAA SBC PAC).

As the data below shows, 20 states met or exceeded their 2019 state goals:

Alabama/Bart Fletcher raised $10,070 or 158%.
Arizona/Jason Davis & Amanda Gray raised $5,085 or 166%.
California/Mike Downs & Elizabeth Graham raised $10,294 or 102%. 
Colorado/Randy McFarland & Grier Bailey raised $3,670 or 100%.
Hawaii/Annie Marszal raised $930 or 175%.
Idaho/Eric Busch & Suzanne Budge raised $2,860 or 137%. 
Louisiana/Frank Marcello & Natalie Isaacks raised $5,960 or 100%. 
Minnesota/Jay Cattoor & Tim Gross raised $10,275 or 213%. 
Mississippi/Rex Gillis & Philip Chamblee raised $5,095 or 100%. 
Missouri/Wayne Baker & Ron Leone raised $11,650 or 244%. (2019 Highest Percentage)
Nebraska/Richard Jameson & Tim Keigher raised $3,885 or 108%. 
Nevada/Robert Flippo & Peter Krueger raised $2,300 or 124%. 
New Jersey/Larry Ray & Eric DeGesero raised $12,050 or 101%. 
North Carolina/Doug Howey & Gary Harris raised $14,075 or 148% (2019 Highest Dollar Amount)
North Dakota/Mike Rud raised $5,765 or 185%.
South Carolina/Michael Fields raised $6,800 or 113%.
Utah/Carl Hunt & John Hill raised $2,465 or 106%. 
Virginia/Mike O’Connor raised $5,000 or 115%.
Washington/Steve Clark & Lea McCullough raised $4,380 or 151%.
Wyoming/Jay Schneiders and Grier Bailey raised $1,830 or 102%. 

Congratulations to all who met their goal. PAC co-chairs Brad Bell and Tim Keigher hope that more states will exceed their goals in 2020.

We send a huge thanks to PMAA’s West Region, the only region to meet its goal. The West Region contributed $39,314 to the PAC, $2731 over the region goal. 

If Brad or Tim can be of any assistance in helping you raise PAC dollars for PMAA, please give them a call.

Valero Energy Corporation and the American Fuel and Petrochemical Manufacturers (the petitioners) filed a legal brief with the United States Supreme Court asking whether the U.S. EPA is required to consider rulemaking petitions to change the point of obligation under the Renewable Fuel Standard (RFS). The point of obligation was established in a 2010 EPA final rulemaking. Since that time, the EPA has steadfastly rejected any petitions from stakeholders to move the point of obligation from refiners down to terminal position holders. The petitioners argue that the EPA must make a determination of whether it is appropriate to move the point of obligation during the agency’s annual rulemaking establishing renewable fuel obligations. 

The Clean Air Act authorizes the EPA to move the point of obligation only if it is “appropriate” to do so and does not result in “redundant obligations.” In 2017, the EPA ruled that moving the point of obligation would result in no net benefits to the RFS program. The agency found that such a move would do nothing to increase the use of renewable fuels and would “be very disruptive to the program, and likely the fuels marketplace as well…” The petitioners told the Court that the EPA is refusing to reconsider the placement of the point of obligation based solely on its own convenience and not whether it is appropriate to do so based on the facts. The EPA’s response to the petition filed by Valero and AFPM is due February 3. The Court has yet to decide whether it will consider the petition. 

On Tuesday, the FDA’s Final Guidance titled “Electronic Nicotine Delivery Systems (ENDS) and Other Deemed Products on the Market Without Premarket Authorization” was published in the Federal Register. The Final Guidance bans the sale of most flavored cartridge-based e-cigarettes other than tobacco and menthol flavoring, meaning that stores must remove these items from their shelves by February 6.

The final guidance document does not single out convenience stores, but rather focuses on specific kinds of electronic nicotine products (i.e., certain flavored cartridge-based electronic nicotine products). In a statement from FDA, it said that “this Final Guidance prioritizes enforcement with respect to any flavored, cartridge-based ENDS products (other than a tobacco and menthol-flavored ENDS product) without regard to the location or method of sale.” After the FDA’s Draft Guidance was released in March, PMAA and other like-minded associations opposed the FDA provision allowing sales of flavored e-cigarettes in stores that are considered adult-only, such as vape shops, while prohibiting them from being sold in convenience stores.

Below is a summary of the additional provisions in the Final Guidance document courtesy of the National Association of Tobacco Outlets: 

• The FDA will prioritize enforcement against those companies that manufacture, distribute or sell flavored cartridge-based electronic nicotine delivery products (except tobacco-flavored, menthol-flavored and non-flavored cartridge-based electronic nicotine delivery products) that have not received a premarket authorization order from the FDA. 

• Flavored cartridge-based electronic nicotine delivery products (except tobacco-flavored, menthol flavored, and non-flavored cartridge-based products) would need to be removed from the market, including from retail stores by February 6. The FDA states in the Final Guidance document that these products are not being completely banned from the market but could come back on the market if manufacturers file premarket authorization applications by May 12, 2020 and the FDA subsequently approves the application.

• The FDA also intends to prioritize enforcement against those cartridge-based products for tobacco-flavored, menthol-flavored, or non-flavored electronic nicotine products and any non-cartridge flavored electronic nicotine products if they lack a premarket authorization order from the FDA and the manufacturer has not taken or is not taking adequate measures to prevent minors’ access to these products. 

• The FDA also intends to prioritize enforcement against any electronic nicotine products targeted to, or whose marketing is likely to promote use by, underage persons. Examples include electronic nicotine products with labeling or advertising that resembles kid-friendly foods and drinks (e.g., juice boxes, candy or kid-friendly cereal), or with youth-appealing cartoon or animated character advertising or marketed on popular children’s YouTube channels and television shows.

• The FDA also intends to prioritize enforcement of any electronic nicotine product (either cartridge-based or non-cartridge based product) that is offered for sale after May 12, 2020, and for which the manufacturer has not submitted a premarket authorization application (or after a negative action by FDA on a timely submitted application). 

• The FDA will not at this time take enforcement action against “open system” electronic nicotine products nor small manufacturers such as vape shops that mix e-liquids on-site and primarily sell non-cartridge-based electronic nicotine products, unless they market to youth, fail to take adequate measures to prevent youth access, or do not file a premarket authorization. 

• The FDA has decided not to prioritize enforcement against flavored cigars and flavored hookah tobacco products before May 12, 2020 because underage use of these tobacco products is significantly lower than cartridge-based electronic nicotine products. However, the FDA reiterates in the Final Guidance document that flavored cigars and flavored hookah tobacco are required to submit premarket authorization applications to the agency for those products by May 12, 2020. The FDA acknowledges that there are a number of “grandfathered” flavored cigars that are lawfully marketed and would remain available to consumers regardless of FDA’s enforcement of premarket authorization requirements.

Click here to view the full FDA Final Guidance document.

This week, Environmental Protection Agency (EPA) Administrator Andrew Wheeler said he expects the new Corporate Average Fuel Economy (CAFE) Standards rule to go final “within the next month or so.” 

EPA has basically completed its portion of the regulation and DOT is close to finishing their part. Wheeler expects the final White House review of the measure will move quickly. The rule is expected to require a 1.5 percent annual increase in the fleet-wide efficiency of new automobiles starting in the 2021. Current regulations set by the Obama Administration require a mile-per-gallon average of roughly 50 miles per gallon by 2025. However, last year, the Trump Administration proposed capping that requirement at a 37-miles-per-gallon average after 2020.

In October 2018, PMAA submitted comments in support of the Trump Administration’s proposed rule on CAFE standards. PMAA highlighted numerous reasons why current MPG standards could harm petroleum marketers and how important it is that the Trump Administration’s proposed rule is adopted. Click here to read the comments.

Furthermore, in October, the Trump Administration announced that the EPA will revoke California’s waiver that allows the state to set its own, more stringent auto emissions standards. Additionally, the EPA, with the help of the U.S. Department of Transportation (U.S. DOT), revoked California’s requirement that auto manufacturers offer for sale an increasing number of zero emission vehicles (ZEV) in the state each year. The U.S. DOT drafted a notice asserting that the California (ZEV) standards are preempted by federal fuel economy regulations. The Trump Administration argued that it was revoking California’s federal waiver on emissions in order to produce far less expensive cars for motorists, while at the same time making the car substantially safer. The EPA is battling California in court over the pending rule and whether the state can maintain its stricter standards or conform to the federal regulation. 

This week EPA also issued an “Advanced Notice of Proposed Rulemaking” to create stricter standards on emissions from new heavy-duty trucks, and the agency is collecting data to prepare an upcoming proposal that could come as early as this spring.

This week, House democrats unveiled a draft legislative plan to address climate change issues that seeks to achieve net-zero emissions by 2050. The proposal, referred to as the “Climate Leadership and Environmental Action for our Nation’s (CLEAN) Future Act,” addresses climates issues in the areas of power, buildings and efficiency, transportation, and industrial sectors.

Among the most significant plans, the proposal calls for:

• A nationwide Clean Electricity Standard (CES) requiring all retail electricity suppliers to obtain 100 percent of their electricity from clean energy sources by 2050;

• A mandate for zero-energy-ready buildings by 2030;

• Directives to states and federal agencies to develop and implement individual plans to meet the 2050 net-zero emissions target;

• New, stringent vehicle greenhouse gas (GHG) emissions standards alongside incentives to shift to low- and zero-carbon transportation fuels;

• A "Buy Clean" Program setting performance standards to reduce emissions in construction and manufacturing supported by federal funding alongside incentives for use of low-carbon materials; and

• A National Climate Bank to finance the energy transition through loans, grants and other mechanisms, particularly for frontline, rural, low-income and communities experiencing environmental injustice.

The plan would call for a clean energy trading market, in which suppliers could trade clean energy credits or buy or sell them at an auction. Republicans responded by saying the idea seems like a cap and trade system that they are adamantly opposed to. Speaking to reporters, House Energy and Commerce Committee Ranking Member Greg Walden (R-OR) stated, “If you’ve got to have a credit and you've got to have auctions, then that feels a lot like cap and trade.” 

A more complete plan is expected to be introduced by House Democrats before the end of the month. The Republican-controlled Senate, however, is not likely to support the policy proposal.

On Tuesday, the House Energy and Commerce Committee Subcommittee on Energy advanced nine bills, including a bill introduced by Rep. Bobby Rush (D-IL). The bill, H.R. 5545, known as the “New Opportunities to Expand Healthy Air Using Sustainable Transportation (NO EXHAUST) Act of 2020,” would expand investments in electric vehicles (EV) in an effort to achieve net-zero greenhouse gas emissions by 2050. The legislation would promote the domestic manufacture and use of advanced, fuel efficient vehicles and zero emission vehicles and encourages expansion of EV charging infrastructure. Additionally, the bill would authorize more than $6 billion each year in grants and rebates over the next ten years for states to implement EV networks.

Specifically, the bill would authorize:

• $2 billion per year from fiscal year 2021 through 2030 for the grants to state and local governments and private entities for electric vehicle deployment;

• $2.5 billion per year over the same period for large-scale projects to electrify the transportation sector; 

• $2.5 billion per year over the same period to accelerate the domestic manufacturing of EVs; 

• $125 million in grants to help states update their state conservation plans to include an energy transportation plan; and

• $100 million in rebates for states and local communities to go toward building publicly accessible EV charging stations or other advanced vehicle infrastructure.

Finally, the bill would direct the Secretary of Energy to give priority to grant applicants that include written assurance that all laborers working on projects will be paid steady wages.

Although the legislation will likely pass the House, it will undoubtedly face strong opposition from the Republican-controlled Senate. 

PMAA’s annual Washington Conference and Day on the Hill will be held in our Nation’s Capital of Washington, DC from May 13-15. Our industry continues to have dozens of important legislative and regulatory issues to discuss and the Day on the Hill continues to be the primary focus of this conference. 

The meeting will begin with an Opening Session / Issues Briefing and Region meetings in the afternoon of May 13. Our welcome reception, including our fun and popular PAC silent auction fundraiser, concludes the day! On the morning of May 14, marketers will head to Capitol Hill for visits with their Congressional delegations after a buffet breakfast and issues briefing for those who were not able to attend the opening session. There will be a hospitality suite and luncheon on the Hill. On the evening of May 15, we will feature our 2020 PMAA Chair Aaron Littlefield along with honoring our other Past Chairs in attendance. Our conference will conclude after the PMAA Board of Directors meet on May 15 following a buffet breakfast and committee meetings. 

The Mayflower Hotel room block has sold out. We are excited that 170 members have made hotel reservations at our Headquarter Hotel. PMAA has a waitlist and intends to contract a hotel within short walking distance of The Mayflower Hotel for an overflow room block soon. (Only those individuals on this list will be considered in the block.) Please contact your Member Association by close of business today January 10, to indicate your interest in attending and they will contact PMAA if additional rooms are required. 

You can find all available details for Washington Conference and Day on the Hill here. Registration will open in February 2020 and will be posted on this page and announced in this Weekly Review. 

Please make your plans now to attend this important and productive forum to meet with your members of Congress and network with other marketers from across the country! See you in DC in the spring! 

Each year, OSHA releases a summary of their list of Top Ten workplace safety violations. This webinar will take a look at OSHA’s Top Ten violations in 2019. More importantly, however, we will focus on risk management policies, procedures, and training resources to implement and help reduce employee accidents and injuries! 

What you will learn: 

• Quick overview of the OSHA Top 10 violations for 2019

• Training resources, programs and policies to implement in your business 

• How to positively impact workplace productivity and culture through accident prevention

Advanced registration is required for this 30-minute webinar.

For additional information or to discuss this in further detail, please contact your Federated regional representative or PMAA’s National Account Executive Jon Medo at 800.533.0472. Federated is a PMAA Corporate Platinum Partner. 

Save on the supplies you need to keep your business organized in 2020. Through our partnership with National Purchasing Partners (NPP), PMAA members can access exclusive savings on products and services through Staples. Save on Bankers Boxes, File Folders, Labeling Systems and Storage Bins. In addition to great discounts, you get free next-day business delivery on most standard orders over $30. 

Enroll your business for FREE here. NPP is a member benefit provider of PMAA. 

Restrictions may apply. 

Federated Insurance’s HR Question of the Month focuses on employment-related practices liability issues. This month’s question is: Military Leave – No Notice – Job Protection?

We have an employee who left unexpectedly three-quarters of the way into his shift, stating he was leaving because he was going on military leave for one year. We've not been able to reach him to get further details, and we haven't received any sort of formal documentation backing up his claim. Are we required to hold his job for him for this year? If so, should we have received some sort of formal documentation backing up his claim? Please click here to read the response.

For additional information or to discuss this in further detail, please contact your Federated regional representative or PMAA’s National Account Executive Jon Medo at 800.533.0472. Federated is a PMAA Corporate Platinum Partner.