• PMAA Weekly Review

  • PMAA Weekly Review

    October 4, 2019 [WR-19-38]
    Sponsored by Patriot Capital
    who generously supports PMAA’s work in our Nation’s Capital.
    Quick Links to Articles for October 4, 2019
    Oil Heat Institute of Rhode Island (OHIRI) Joins PMAA
    New Federal E15 Policy Benefits Ethanol Producers at the Expense of Retail Marketers
    Mistake on EV Credits Could Cost Americans Millions of Dollars
    Thank You to Our Fall Meeting Partner Sponsors!
    September 2019 Contributors to PMAA MDF
    September 2019 PMAA Small Business Committee (SBC) PAC Contributions
    PMAA Corporate Platinum Partner Spotlight Featuring: Federated Insurance
    Articles for October 4, 2019
    Oil Heat Institute of Rhode Island (OHIRI) Joins PMAA
    On Tuesday, the PMAA Board of Directors voted unanimously to accept the Oil Heat Institute of Rhode Island (OHIRI) as a regular state association member. The OHIRI is a member driven nonprofit trade association established in 1960. The mission and vision of OHI is to provide advocacy, education and innovative strategies to the liquid fuels industry in Rhode Island and the energy consumers they serve.

    Roberta Fagan, OHIRI’s state association executive, said, "PMAA’s mission aligns with the goals of OHIRI - to preserve, protect and expand the liquid fuels industry. Additionally, PMAA was a strategic partner in the reauthorization of the National Oilheat Research Alliance (NORA) which allows OHIRI to continue offering programs including consumer/technical education, energy efficiency and equipment safety funding, as well as research and development for advancing space and water heating technologies."

    “PMAA will be stronger with OHIRI’s support and we look forward to working together to ensure the survival of the fuel marketing industry, said PMAA Chairwoman Sharon Peterson.

    “The OHIRI board decision will now enable PMAA and OHIRI staff to strengthen our joint government relations efforts to work together more effectively. We are excited with their decision to join PMAA,” said PMAA President Rob Underwood.

    New Federal E15 Policy Benefits Ethanol Producers at the Expense of Retail Marketers
    The Trump administration is set to announce a new renewable fuels policy designed to make E15 the dominant gasoline blend nationwide. Specifically, the administration proposes to reallocate lost blend volumes exempted under small refinery waivers to large refiners. Since 2017, small refinery waivers have removed billions of gallons from annual biofuels blending mandates under the RFS program. The waivers play a large role in preventing a de facto E15 mandate by keeping volumetric blending requirements more closely aligned with actual consumer demand.

    The administration is proposing to retroactively reallocate waived gallons from 2017 forward. Forcing waived volume back into the market is likely to drive up the value of RINs needed to offset unmet blending obligations. In turn, this is likely to provide an incentive for a select group of retailers to blend ethanol and call it “unleaded88” at the pump.

    More importantly for petroleum marketers, the new proposal is likely to allow E15 to be sold from UST systems potentially containing components that are not compatible with the higher ethanol blends. Unfortunately, such blanket approval does nothing to eliminate marketer liability for releases due to E15 sold from noncompatible UST systems. Nor will it eliminate UST compatibility demonstration requirements mandated by federal and state underground storage tank programs and state and local fire marshal laws. Further such an approval threatens marketers’ eligibility for corrective action cost recovery from state tank funds and private UST insurance policies. In addition, state tank funds, which are crucial to meet marketer financial assurance requirements, are likely to be pushed into insolvency as claims mount for E15 releases from noncompatible UST systems.

    The new policy would only place marketers at a competitive disadvantage due to the potentially significant costs to upgrade or modify the configuration of equipment to sell E15, in addition to increasing liability risk for marketers and expose motorists to confusion and possibly misfuelling at the pump with E15 labeled as “unleaded88.” The new RFS policy comes on the heels of a recent rule allowing the year-round sale of E15 nationwide. Both are designed to placate upset corn farmers and ethanol producers for short term political benefit rather than advancing a coherent, long term, market driven energy policy.

    PMAA will report additional details as they become available.

    Mistake on EV Credits Could Cost Americans Millions of Dollars
    Long Standing Maryland Gas Station Becomes First Electric Vehicle Only Charging Station
    According to an IRS watchdog report released yesterday, over 18,000 taxpayers received around $82 million in bogus electric vehicle (EV) tax credits that they didn’t qualify for. Click here to view the report. Currently, Rep. Dan Kildee (D-MI) and other lawmakers are pushing to attach H.R. 2256, known as the “Driving America Forward Act,” to a tax extenders package that would expand the EV and hydrogen fuel cell tax credits. Specifically, the legislation would reduce the $7,500 credit to $7,000 and would lift the tax credit cap from 200,000 to 600,000. According to a recent study, the bill would cost taxpayers as much as $15.7 billion.

    In other news, a Maryland “gas” station, RS Automotive, was the first to fully transition from traditional pumps to electric vehicle charging stations. A petrol station in Maryland is the first of its kind to completely transition. For the entire story, click here.

    Thank You to Our Fall Meeting Partner Sponsors!
    PMAA wants to extend a huge THANK YOU to our Fall Meeting 2019 Partner Sponsors: Federated Insurance, RAI Trade Marketing Services, Renewable Energy Group, Inc., Altria Client Services, The Spirit® Brand and Meridian Associates, Inc.

    We appreciate the loyalty and generous support of our PMAA Corporate Partners and their continuous commitment to the petroleum industry. For more information on our Partner Programs, please contact Susan Isard.

    September 2019 Contributors to PMAA MDF
    PMAA’s Marketer Defense Fund wants to thank the following individuals for their contributions during the September 1- 30 timeframe:

    California: Tom Prewitt
    Florida: Bill McKnight
    Georgia: Tommy Thompson
    Illinois: Mark Bayley
    Pennsylvania: David Harris
    Tennessee: Tennessee Fuel & Convenience Store Association

    Corporate donations are acceptable. MDF funds have been used for various studies, litigation and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the PMAA MDF.

    September 2019 PMAA Small Business Committee (SBC) PAC Contributions
    PAC Co-Chairs Brad Bell and Tim Keigher are grateful for the PMAA Small Business Committee (SBC) PAC contributions from the following individuals during the September 1-30, 2019 time frame:

    Arizona: Harry Allen, Brian Beamer, Kyle Call, Apryl Erekson, Jacob Eigati, Todd Flores, Shawn Frate, Tracy Gahan, Tim Genrich, Amanda Gray, Brian Hill, Michael Gray, John Kennedy, Josh Kinsey, Matt McDonald, Jess Miller, Claudia Mink, David Mink, Jami Moore, Lynn Niewiadomski, Thomas Norris, Eugene Nosovitch, Joe O’Donnell, Rich Tarnoplski, Robert Valentine, Kyle Zottnick

    Arkansas: Jeff Frost

    California: Michael Downs

    Colorado: Grier Bailey

    Illinois: Rick Andrews, Carolyn Doty, Holly Kruep, John McGovern, John Parkin, Janet Russell, Leon Russell, Gail Wade, Gerald Wagahoff

    Indiana: William Herdrich

    Kansas: Scott Zaremba

    Louisiana: John Milazzo

    Michigan: Mark Griffin

    Mississippi: Perry Rackley

    New Jersey: Eric DeGesero, Mark Fredricks, Shelley Fredricks, William Lawes, Gary Missigman, Lisa Tilory

    New Mexico: Reginald Roberson

    New York: Kris DeLair

    North Dakota: Matt Bjornson, Paul Doll, Chris Fitterer, Andrew Fjeldahl, Tracy Good, Paul Mutch

    Oklahoma: Ray Harris, Mary Lou Johnson, Rick Koch

    South Carolina: A. Boyd McLeod III

    Tennessee: Rod Isaacs

    Virginia: M. C. Andrews, Bruner Lash Barksdale, Benjamin Clenahan, John Fannon, Garry Gray, Hugh McCormick, Michael O’Connor, John Phillips, Ronald Prewitt, Lewis Wall Jr., Carol Weaver

    Washington: Steven Clark

    Wyoming: Grier Bailey, James Schneiders

    PMAA Corporate Platinum Partner Spotlight Featuring: Federated Insurance
    Federated Insurance Employment Practices Network HR Question of the Month

    Federated Insurance’s HR Question of the Month focuses on employment-related practices liability issues. This month’s question is: Sexual Harassment, Termination Meeting – Employer Rights? We are in the process of terminating an employee for a sexual harassment charge by a fellow employee. Here are the highlights of the claim/reason for termination: over a several month period this male employee made at least five inappropriate sexual comments to a female employee starting on her first day working here. All of the comments have been documented by the female employee on a sexual harassment form. In addition, there were witnesses (on one occasion, multiple) who verified the comments were made and witnessed. Based on the nature of the comments as well as the frequency, we have made the decision to terminate the employee. Please click here to read the entire question and the response.

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

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