|California Bans the Sale of New Gasoline Powered Vehicles by 2035
California Governor Gavin Newsome issued an executive order this week to ban the sale of new gasoline powered vehicles in the state by 2035. The ban follows the June 2020 announcement by the California Air Resources Board (CARB) requiring all commercial trucks and vans to be zero emission by 2045. California is unique among all States in having a federal waiver that allows it to set its own, stricter emissions standards.
The California ban is important to fuel marketers because under Section 177 of the Clean Air, any state can adopt California clean air standards. So far, 12 States have adopted California’s zero emission standard for passenger vehicles including: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington. 15 states have adopted the zero-emission standards for commercial trucks and vans including: California, Connecticut, Colorado, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington. It is likely that some of these states could also adopt the ban on gasoline powered vehicles.
PMAA member association, the California Fuels and Convenience Alliance (CFCA), issued this statement, “This order not only represents an egregious transgression of the legislative process, but also an outright disregard for the millions of Californians struggling to just get by in today's most taxing of circumstances. As Californians continue to be barraged by an endless wave of public service announcements urging stark energy conservation for fear of rolling blackouts, the timing for announcing the greatest additional stress to our grid in history could not be worse.” Click here to read the full statement.
BP and Shell Support Transportation Carbon Tax
The Trump administration revoked California’s special waiver status earlier this year. California filed suit in federal court to maintain its unique clean air standard setting waiver. The waiver will remain in place until the federal court rules on the case which is not expected until after the November Presidential election.
In response to the latest California Governor’s executive order, the Transportation Fairness Alliance (TFA) released the following statement, “California’s proposal to ban traditional vehicles by 2035 fails to acknowledge the significant emissions progress that continues to be made across all vehicle platforms, including those with internal combustion engines — the vehicles preferred by more than 95% of U.S. consumers. California should recognize this preference and acknowledge this proposal is not the most efficient or consumer-oriented means of reducing emissions.”
Unfortunately, California fails to report that there is no such thing as a “zero emission” vehicle. While EVs do not have tailpipe emissions, they are charged using electricity generated at local power plants, which do produce emissions. Furthermore, manufacturing the battery for an EV requires tremendous amounts of energy, and EV battery recycling is tedious and difficult. Without the ability to be recycled, EV batteries risk offsetting any environmental benefits by contributing more waste. The bottom line is that a vehicle’s total emissions should account for its entire life cycle: production and resourcing, lifetime usage, and end-of-life disposal after use. The bottom line is the EV market remains small as the majority of consumers still opt for gasoline powered vehicles when given a choice.
This week, BP and Shell, along with the Alliance for Automotive Innovation, Ford, Exelon and the National Grid launched an advocacy campaign known as the Coalition for a Better Business Environment to urge East Coast states from Virginia north to Maine to enact the Transportation and Climate Initiative (TCI), a regional carbon pricing policy designed to put a price on carbon to reduce emissions from the transportation sector. Click here to access the coalition’s website to put a tax on gasoline and diesel.
House Approves Bipartisan Stopgap Spending Bill
“Our goal is to highlight how putting a price on carbon can help reduce emissions and create jobs,” said Mary Streett, bp’s senior vice president for communications and advocacy. “TCI establishes a carbon price across the transportation sector, fostering growth by improving infrastructure and generating the revenue states need now more than ever.”
The Transportation Climate Initiative (TCI) is a collaboration of 12 Northeast and Mid-Atlantic States and the District of Columbia led by the Georgetown Climate Center. TCI seeks to improve transportation, develop the clean energy economy, and reduce carbon emissions from the transportation sector. The plan requires wholesale suppliers to purchase carbon allowances via auctions, with the states receiving the proceeds. Suppliers would be able to buy and sell those credits and pass along any of the cost to motorists. According to the Boston Globe, gasoline prices from Virginia to Maine could jump as much as 17 cents per gallon. Unfortunately, TCI falls short on providing additional details on how to implement the program and fails to acknowledge advancements the liquid fuels industry has made to bring cleaner and greener fuels to the market.
This week, the House passed a stopgap spending bill to keep the federal government funded at current levels through December 11th, one month after the elections. Notably, the bill prohibits providing financial assistance to oil refiners that were recently denied biofuel blending waivers for blending requirements under the Renewable Fuel Standard (RFS). The Trump Administration had been working on a plan to provide financial assistance to those small refiners who were dealt a blow by the EPA when the agency denied their biofuel blending waivers under the RFS.
House Passes Energy Bill
Senate Appropriations Committee Chairman Richard Shelby (R-AL) expects the final vote to occur next Tuesday or Wednesday, just before the government is set to run out of funding and subsequently lead to a government shutdown. Fortunately, the bill is expected to easily pass the chamber with overwhelming bipartisan support, punting the next government spending fight to December.
Meanwhile, House Democrats are moving forward with a scaled-down COVID-19 relief package totaling approximately $2.4 trillion even though the chances of a deal before Election Day remained slim. The White House has indicated it could support spending as much as $1.5 trillion, though many Senate Republicans have said they would not back that level of spending. Click here for the story.
Yesterday, the House passed a 900 page “Clean Economy and Jobs Innovation Act” (H.R. 4447) largely along party lines by a vote of 220-185. The bill was just introduced last week and was moved to the Floor for a vote without traditional vetting such as legislative hearings. Democratic leadership introduced the bill in response to the progress the Senate has made on its own energy bill known as the “The American Energy Innovation Act.”
IRS Says PPP Loan Lenders Do Not Need to File Returns
Both bills contain provisions that would improve electric reliability and energy efficiency; promote the development of solar and wind energy, hydropower, geothermal, weatherize homes, and methane hydrates; enhance cyber security efforts; promote carbon capture, bolster mineral security; and repeals a range of obsolete authorities currently within the U.S. Code.
However, there are provisions in H.R. 4447 that would expand the use of EVs and would create an (EV) supply equipment rebate program that the Senate bill does not include and H. R. 4447 would also authorize $36 billion for transportation electrification and would expand clean energy workforce programs and other policies meant to modernize the nation’s electric grid. Further, the bill also sets a June 1 deadline for refineries to petition for exemptions from the Renewable Fuel Standard blending requirements and requires public disclosure of which companies are seeking those exemptions.
“Don’t be fooled by its name – this bill has little to do with innovation and everything to do with House Democrats’ embrace of their high cost Green New Deal,” said Republican Reps. Greg Walden (R-OR)), Frank Lucas (R-OK) and Rob Bishop (R-UT), the ranking members of Energy and Commerce, Science and Natural Resources panels, in a statement. “This bill is chock-full of government mandates that would raise what Americans pay for everything from the vehicles they drive to what they pay to heat, cool, and power their homes.”
The Senate is unlikely to consider the bill and President Trump has already said he will veto the bill if it gets to him.
The IRS announced this week that banks who make loans that are later forgiven under the Paycheck Protection Program (PPP) do not need to file information returns with the IRS or borrowers. This will save lenders and borrowers time and expenses and is meant to limit confusion. Filing returns for forgiven PPP loans could lead to recipients mistakenly receiving IRS notices stating they have underreported their income. Ordinarily debt that is forgiven becomes taxable income to the borrower, and the lender must submit a form to the IRS and to the borrower if the forgiven amount is $600 or more.
Look for Silent Auction to Start Early Next Week!
PMAA Small Business Committee (SBC) PAC Co-Chairs Brad Bell and Tim Keigher ask that you keep an eye out for announcement of the start of the Silent Auction to begin early next week! Bidding will open on September 28 and close on October 8. The winners will be announced during the Board of Directors Meeting on Friday, October 9.
NACS Crack the Code Experience: November 2 - December 4, 2020
We want to remind you about our format for the PMAA SBC PAC Silent Auction. We are excited about partnering with C2Auctions again this year. They will organize the PMAA SBC PAC Silent Auction during our PMAA Virtual Fall meeting. All PMAA members will be eligible to participate from anywhere in the United States as long as they download the C2Auction App on their mobile phone. The announcement will include a C2Auction/PMAA mobile link for all PMAA Association Executives.
We invite you and your members to support our important work and commitment to our industry by contributing a donation of an item or service for the auction. Last year, there was tremendous support in contributions for the auction! PMAA SBC PAC Co-Chairs Brad Bell and Tim Keigher urge your participation this year and wish to remind you that donations can include use of personal vacation properties. To contribute, please fill out the attached Auction Item Donation Form and email it to Sabrina Pitcher.
It’s hard to believe it was just seven weeks ago when NACS had to make the cancellation announcement for the NACS Show. And here they are with an entirely new offer and marketplace known as the NACS Crack the Code Experience. It’s something worth celebrating and I’m pleased to announce that we’re ready to help promote the event. The official reg launch announcement went out last Tuesday in the NACS Daily, touting Tier 1 Early Bird pricing at $295 per person (now through September 28). There is no additional charge for our PMAA members who are not NACS members…it’s one price for all!
Over a five-week timeframe—November 2 through December 4—NACS will bring to life a robust digital experience and curated marketplace, connecting convenience retail buyers and sellers from around the globe. All attendees will have 24/7 access to forward-looking ideas and insights, innovative new-to-channel products and strategic connections.
As part of our push for this new Experience, we are also building excitement with two elements:
“Sizzle reel”: Here’s a short (under one minute), high-energy video to communicate the new offer (you can watch it and share it across your network using this link and is also posted to the official Experience site).
Social media: We have a hashtag (#CTCexperience) and graphics. Help us share the word across your networks by crafting your own post or using one from the Word document for inspiration.
Our industry is about to do something great together. And there is a lot more to come.
Federated Insurance: Risk Management Corner
What Causes Accidents?
Would you call yourself or someone you know “accident prone?” While the whole notion of being naturally susceptible to mishaps and injuries is debatable, on-the-job injuries have a number of recognized causes.
Federated Insurance Risk Management Academy Webinar
Stress, fatigue, job dissatisfaction, emotion, and personal problems create short-term or isolated situations that can result in chance accidents. But other factors related to day-to-day operations are more likely to cause accidents. Concentrate on this type of hazard to help protect yourself and your co-workers.
To learn more about prevention, please click here. For additional information or to discuss further, 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.
This article is for general information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. © 2020 Federated Mutual Insurance Company.
Risk Managing Your Fleet – Leadership and Changing Behavior: Tuesday, October 6, 2020, 1:00 p.m. CT
Driving-related incidents continue to be a massive problem for businesses and our society as a whole. With a fresh approach toward the continued efforts to reduce driving-related incidents, the presentation discusses the role of leadership within a company, and how that relates to changing/improving driving behaviors. Join us for this webinar, and we will give you some unique concepts to take back to your businesses to fine-tune and implement. Do not wait for a tragedy to take action. Commit to making a difference right now.
What you will learn:
Why we still need to talk about driving
Why leaders have an opportunity (or obligation) to effect positive change
What the "human element" is, and why it matters most
Specific strategies for changing/improving behavior within the context of fleet/driver management
Why you need to take action now
Advanced registration is required for this 45-minute webinar.
PMAA Member Services Spotlight Featuring: National Purchasing Partners (NPP)
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 Paints, Stains, Coatings & Supplies with Sherwin-Williams and NPP!
Looking to refresh your building’s exterior and interior paint this year? Through our member benefit provider NPP, PMAA members get exclusive discounts and personalized service from Sherwin-Williams, the nation’s largest specialty retailer of paints, coatings and painting supplies. Order online or in-store and pick up at more than 4,000 Sherwin-Williams stores nationwide.
Enroll your business for FREE here to access special pricing.
You will find additional discounts from Airgas, Staples and, if eligible, Verizon Wireless.
NPP is a member benefit provider of PMAA. Restrictions may apply.