EMA Weekly Review
EMA Weekly Review
EMA Weekly Review
Energy Marketers of America weekly update on important national industry news May 21, 2021 [WR-21-20] Sponsored by PDI Software
who generously supports The Energy Marketers of America
Energy Marketers Win Important Strategic Victory in Supreme Court Articles for May 21, 2021 Energy Marketers Win Important Strategic Victory in Supreme Court
On May 17, 2021, the United States Supreme Court issued its decision in BP v. Mayor and City Council of Baltimore, a climate change case in which EMA submitted an amicus brief in support of BP and the other major oil company defendants. Although the case involved a procedural issue related to whether the case would proceed in a federal or state court, it is of significant importance in determining whether cities, like Baltimore, can ultimately prevail. State courts, applying traditional state law causes of action, have allowed the cases to proceed to where they will ultimately be tried by a jury. Federal courts, on the other hand, are considerably more likely to decide the cases under federal common law, which would warrant a dismissal of the cases before the huge potential liability and enormous costs of litigation leave the defendants with no alternative but to settle. As one federal court of appeals recently stated in affirming the dismissal of a climate change case brought by the City of New York, the responsibility for global warming cannot be shifted to energy producers when “every single person who uses gas and electricity contributes to global warming.”Congressional Update
EMA got involved in the Baltimore case after local marketers were added to the list of (mostly major oil company) defendants as part of a strategy to defeat federal jurisdiction and keep the cases in local state courts. The Supreme Court’s opinion could dampen the enthusiasm of coastal cities, like Baltimore, to continue to bring these cases against energy producers and marketers. Although it dealt only with a procedural issue, the decision could also hasten the day when one of the cases proceeds to the Supreme Court for a substantive review and, very likely, a decision that the effects of global climate change are not the responsibility of the petroleum industry.
The White House is expected to release its response to Senate Republicans’ $568 billion counterproposal to President Biden's American Jobs Plan soon. This comes after continued meetings between top Senate Republicans and key White House officials, who recently discussed various pay-for options, such as an infrastructure bank or revolving fund to catalyze private investment and boost public-private partnerships. White House Press Secretary Jen Psaki made clear, however, that no user fees could violate the President’s commitment to not raising taxes on Americans making less than $400,000 a year. Senate Majority Leader Chuck Schumer (D-NY), though encouraging bipartisan negotiations, is also ensuring that the budget reconciliation process is available should a deal not be reached. Progressives within the Senate and House Democratic Caucuses have expressed frustration at continued negotiations with the GOP and would prefer to pursue the reconciliation route regardless.U.S. EPA Will Likely Maintain Current RFS Blending Volumes for 2020 and 2021 Compliance Years
On May 19, House Republicans introduced a surface transportation reauthorization bill, the STARTER Act 2.0, which would authorize more than $400 billion over five years for federal highway, transit, and safety programs. The Transportation and Infrastructure (T&I) Committee released a section-by-section summary and T&I Ranking Member Graves (R-MO) hopes the proposals will be included in the broader infrastructure effort. House Democrats are also expected to release their own surface transportation bill soon, which is being drafted to reconcile T&I Chair DeFazio's (D-OR) priorities with President Biden's. The House Transportation and Infrastructure Surface Transportation markup has been pushed into June. Proposed tentative dates were June 9 and 10, but the markup could now potentially slip even further into June.
The Senate Environment and Public Works Committee plans to introduce its surface transportation bill next week. Chairman Tom Carper (D-DE) said that the bill, which will be bipartisan, will fund fewer EV charging stations than proposed by the White House. This is part of a broader compromise on the Committee, where Republicans have been increasingly open to funding EV charging stations, just not at the level envisioned by the White House. Ranking Member Shelley Moore Capito (R-WV), who is leading GOP negotiations with the White House, said there was a greater than 50/50 chance that a deal would be reached, but doubted it would come before July 4.
The U.S. EPA’s biofuel blending mandates for this year and next are likely to be in line with those of 2020 as the agency accounts for weaker fuel demand since the onset of the coronavirus pandemic, three sources familiar with the matter said. The move is designed to spare the U.S. refining industry the added RIN costs associated with the usual annual expansion in renewable volume obligations under the Renewable Fuel Standard, at the expense of biofuel producers and the corn industry which depend on regular increases to grow their businesses. The agency is now intending to issue both the 2021 and 2022 volumes proposals this summer. The EPA last set the annual RFS blending obligations in 2019, when the agency mandated that refiners must blend 20.09 billion gallons of renewable fuel into nation's fuel mix for the 2020 compliance year. The mandate included 15 billion gallons of conventional biofuels like ethanol, with the rest including other forms of biofuels. The upcoming volume proposals are due to include requirements that are largely the same, the three sources said, citing the impact of the coronavirus pandemic. The Biden administration is also expected later this summer to lay out how electric vehicles could qualify for tradable credits under the RFS adding automakers to the mix of RFS stakeholders.FDA Releases List of Deemed New Tobacco Products
This week, the FDA Center for Tobacco Products (CTP) released a list of deemed new tobaccoproducts for which a premarket tobacco product applications (PMTA) was submitted to FDA by September 9, 2020.DOE Launches New Initiative to Promote Electric Heat Pumps in Residential and Commercial Buildings
The lists include deemed new tobacco products for which a premarket tobacco product applications (PMTA) was submitted to FDA by September 9, 2020. A court order provided for a one-year period during which time such products might remain on the market pending FDA review. If a negative action is taken by the FDA on the application prior to September 9, 2021, the product must be removed from the market or risk FDA enforcement. If a positive order is issued by the FDA on a product in the lists, the product will be listed on the positive marketing orders page and may continue to be marketed according to the terms specified in the order letter. It is important to keep in mind that the lists are only one source of information. For example, retailers should discuss with their suppliers about the status of any particular tobacco product’s application or any product’s marketing authorization.
Under a court order from the District Court of Maryland, e-cigarette products that were on the market prior to August 8, 2016, were required to submit PMTAs for the FDA to review and approve by the September 9, 2020 deadline. PMTAs require a product to meet a regulatory hurdle that can be complex and costly. By the FDA providing a public list of e-cigarette products that meet the proper requirements, retailers of these products will be informed as to which they can sell legally in their stores. The Energy Marketers of America, the National Association of Convenience Stores (NACS), the National Association of Truckstop Operators (NATSO), the Society of Independent Gasoline Marketers of America (SIGMA) and the Food Industry Association (FMI) submitted a letter earlier this year to the FDA urging it to release a list of approved e-cigarette products.
Secretary of Energy Jennifer M. Granholm today announced sweeping actions to power more American homes and buildings with “cleaner” energy services intended to sharply reduce the buildings sector’s carbon footprint. The new Department of Energy's (DOE) initiative is designed to cut the energy and emissions footprints of buildings by integrating them with electrified power. The new initiative reflects the latest examples of the Department of Energy's (DOE) whole-building approach to transform the construction, renovation, and operation of buildings and appliances, as well as training workers who build and maintain them:
Worker Training Grants - New investments of up to $30 million in grants to train workers in the construction, retrofitting and maintenance of commercial and residential buildings with energy efficient materials and appliances. Grants will go largely to worker educational and training programs.
Advancing Efficiency in Heating and Cooling Systems - A new national initiative focused on clean and efficient heating and cooling systems in buildings called the Initiative for Better Energy, Emissions, and Equity (E3) will advance the research, development, and deployment of clean heating and cooling systems like heat pumps, advanced water heaters, low-to-no global warming potential refrigerants, and smarter HVAC diagnostic tools.
Adoption of Smart Building Technologies - A National Roadmap for Grid-Interactive Efficient Buildings will chart a path to triple the energy efficiency and demand flexibility of U.S. buildings within the decade by implementing recommendations that accelerate the ability of buildings to both reduce and change the timing of energy use through smart building operations.
Decarbonize Buildings - The Better Buildings Low Carbon Pilot, will work with commercial, industrial, and multifamily organizations to set commitments and share pathways to low and no carbon emission buildings. Today, the first 55 participating organizations were recognized at the Better Buildings Summit.
High Efficiency Windows -The Partnership for Advanced Window Solutions (PAWS) will accelerate the national availability and adoption of advanced and highly efficient windows and window attachments that improve comfort and reduce building energy use.
EMA will work with the DOE to ensure that electrification efforts are not forced upon state and local authorities. State Association Executives should monitor state programs receiving DOE grants under the new initiative.NOAA Issues Countrywide 2021 Hurricane Outlook
This week NOAA’s Climate Prediction Center predicted another above-normal Atlantic hurricane season; an 80 percent chance near-normal or below-normal tropical cyclone activity in the Central Pacific; and an 80 percent likelihood of a near- or below-normal season in the Eastern Pacific. For all the details, please view.IEA Report Outlines What Would Be Necessary to Meet Worldwide Zero Emissions by 2050
This week the world’s leading energy agency, the International Energy Agency (IEA) released a report stating that governments and officials are not fully aware of what would be necessary to actually reach net zero emissions by 2050.2021 NACS Show Housing and Registration Open
According to IEA there is a list of things that would have to occur immediately to keep the average global temperature from reaching a level where the world faces irreversible damage. The IEA report includes a roadmap of what it would take which includes nations would have to immediately phase out gas-powered vehicles and stop approving new coal-fired power plants and new oil and gas fields. To read the entire article, click here.
Despite what environmentalists and the report claims, congress is unlikely to put a price on carbon dioxide emissions through a carbon tax or cap and trade program this congress. For the entire article, click here.
Join Us in Chicago October 5-8 to Discover What’s Next at the NACS Show
Get ready to tap into the convenience retailing community this October at the 2021 NACS Show as the industry gathers live, in-person to share innovative ideas, solve problems, source on-trend products and propel convenience retail into the future—together.EMA Corporate Silver Partner Spotlight Introducing: GetUpside
This October, explore more than 1,200 exhibitors across 420,000 square feet of expo floor space at Chicago’s lakefront convention center. View hundreds of Cool New Products and see what exciting things suppliers have been working on.
Meet the innovators, leaders and storytellers who will share their unique take on where the industry is headed and how you can stay competitive. Plus connect directly with industry experts and analysts and dive into key insights and industry trends to keep your business one step ahead in more than 40 education sessions.
The Energy Marketers of America (EMA) has held its Fall Meeting as part of the NACS Show since 1995. EMA’s Fall Meeting at the NACS Show will be held on October 4-5 at InterContinental. You can find all available details here. Please note that the NACS Show registration is separate from the EMA Meeting Registration which will open in July.
Registration is now open for the 2021 NACS Show to be held October 5-8 in Chicago at McCormick Place. Register by June 11 to save $300 and snag the early-bird rate. NEW FOR ALL EMA MEMBERS: Click here to register for the NACS Show (enter promo code: EMA2021NS) in order for EMA to receive $100 per registrant. EMA encourages you to promote and share with your state’s member companies (especially the ones who already attend NACS). For more detailed information and specific screen shot instructions for registering, please view.
The convenience industry never stopped running throughout more than a year of lockdowns, supply chain disruptions and uncertainty. Convenience stores adapted to whatever the world threw at them and continued to meet the evolving needs of their customers and communities. Now, it is time to look ahead. The 2021 NACS Show is where the industry will come together to seize new opportunities, side by side.
EMA Announces Newest Corporate Silver Partner: GetUpside
EMA Officers, Executive Committee, and staff are pleased to welcome EMA’s newest Corporate Silver Partner: GetUpside.EMA Corporate Platinum Partner Spotlight Featuring: Federated Insurance
Thousands of fuel retailers nationwide - from locally owned stations to major industry brands - use GetUpside to capture more profit on each transaction for their locations. The GetUpside app targets over 30 million consumers with personalized offers that drive new and lapsed customers to choose your station and spend more. The GetUpside platform uses anonymized transaction data and advanced AI to generate compelling incentives that maximize profit and prove results in real time. There are no integrations or operational changes required to join GetUpside.
Leading payment processor, Worldpay from FIS, has partnered with GetUpside to bring new customers and proven profit to their customers. Participating stations see a 3 percent to 7 percent lift in volume in the first 12 months and earn $1.40 for every $1.00 spent on new volume. Take advantage of the opportunity to put your data to work and grow your business profitably.
Click here to request a call.
Risk Management Corner: When Disaster Strikes Your Electrical Systems
Electricity is vital to our world and businesses, and our reliance on electrical systems creates a risk. Could you continue operating your business without electricity? Power outages in Texas due to cold weather earlier this year show us that natural disasters can strike anywhere, and at any time – and often have ramifications to critical infrastructure, such as power grids and gas lines.Final Call to Register for StoneX School of Futures: Virtual 10-Part Course: June 1-July 1
To learn more about having an emergency preparedness and recovery plan in place, please click here. For additional information or to discuss further, please contact your Federated regional representative or EMA’s National Account Executive Jon Medo at 800.533.0472. Federated is an EMA 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. © 2021 Federated Mutual Insurance Company.
The StoneX School of Futures is a comprehensive 40-hour virtual overview of the Futures Industry, presented by over 30 international educators and savvy practitioners. The focus of the program will be from the trader’s perspective rather than solely on price risk management. The program will be conducted on Tuesdays and Thursdays from June 1st through July 1st.
For additional details on the StoneX School of Futures:
INTL FCStone Financial Inc., a subsidiary of StoneX Group Inc., is an EMA Corporate Bronze Partner.