PMAA Weekly Review
PMAA Weekly Review
PMAA Weekly Review
March 27, 2020 [WR-20-13] Sponsored by Citgo Petroleum Corporation
who generously supports PMAA’s work in our Nation’s Capital.
Click Here to View all PMAA Coronavirus Related Resources for Petroleum Marketers
Including all Regulatory Reports
PMAA DC Conference and Day on the Hill Canceled Articles for March 27, 2020 PMAA DC Conference and Day on the Hill Canceled
In light of the coronavirus pandemic, the PMAA Executive Committee has decided to cancel the DC Conference and Day on the Hill (May 13-15th).PMAA Regulatory Alert: EPA Issues Enforcement Discretion Policy for Routine Compliance Requirements
There are no plans to reschedule the meeting. Registration refunds and hotel room cancelation details will be available soon to PMAA State Association members.
The U.S. EPA issued general enforcement discretion policy this week designed to address difficulties regulated parties may have maintaining certain routine compliance requirements due to the COVID-19 outbreak. Specifically, the U.S. EPA will not seek civil penalties for the following: Routine Monitoring and Reporting; Integrity Testing; Sampling; Lab analysis, Training and Certification. Click here to view the full report from PMAA Regulatory Counsel Mark Morgan.DOT Issues COVID-19 Guidance for Drug and Alcohol Testing Requirements
The Department of Transportation (DOT) has issued guidance for employers who may have difficulty conducting mandated federal drug and alcohol testing due to the recent COVID-19 outbreak. Barriers to testing include unavailability of collection sites, breath alcohol technicians (BAT), medical review officers (MRO) and substance abuse professionals (SAP) caused by the COVID-19 outbreak. The guidance provides employers with testing flexibility by recognizing COVID-19 as a possible barrier to testing. In some cases, missed tests must take place at a later date according to the guidance. Click here to read the full Regulatory Report on PMAA’s Coronavirus Resources webpage.PHMSA Issues Enforcement Waiver for CDL Hazmat Driver Reoccurring Training
The Pipeline and Hazardous Materials Safety Administration (PHMSA) announced on Monday that the agency will not take enforcement action against any motor carrier or offeror who is unable to provide reoccurring hazardous material training that all CDL HAZMAT drivers (and all HAZMAT employees) must undergo every three years. Click here to read the full Regulatory Report on PMAA’s Coronavirus Resources webpage.Congress Approves “Phase 3” Coronavirus Response Legislation
Shortly ago, Congress approved a $2 trillion “Phase 3” coronavirus response package known as the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) and will be sent to the President’s desk for his signature.The Families First Coronavirus Response Act (FFCRA) to go into effect on April 1st
Please note that the Small Business Legislative Council (SBLC) will have a full detailed report on the CARES Act soon. Cick here for PMAA’s current detailed report.
Important to petroleum marketers, the Department of Labor announced this week that the First Coronavirus Response Act (FFCRA), also known as “Phase 2” of the stimulus package, will go into effect on April 1st. Furthermore, DOL has published the model notice that employers will be required to post to advise employees of their rights under the FFCRA. Click here to view the poster.EPA Could Issue RVP Waiver as soon as Today
EPA Administrator Andrew Wheeler indicated yesterday that the EPA could issue a waiver for summertime RVP fuel requirements as soon as today. Earlier this week, PMAA joined NACS, NATSO and SIGMA in sending a letter to the EPA requesting the agency to issue a waiver for the summertime RVP fuel requirements. The waiver request comes in response to the lack of demand for fuel due to the health pandemic. Click here to view the summertime RVP waiver letter.EPA Warns State UST Authorities Not to Approve New ASTM Visual Sump Test Standard
The EPA’s Office of Underground Storage Tanks (OUST), this week, informed state underground tank program authorities that a new ASTM sump testing standard is not approved for use because it does not meet federal UST requirements. According to OUST, ASTM Standard E3255-20 does not meet federal regulatory requirements requiring spill prevention and sump testing be done using a liquid, pressure, or vacuum test. ASTM E3225-20 also known as the “FIT Test uses visual testing only. To address this matter, EPA added two new questions and answers to OUST’s web-based UST Technical Compendium about the 2015 UST Regulation. You can access it by clicking here.PMAA Sends letter Requesting a delay in the EMV Liability Shift Deadline
Please note that EPA previously approved the Low Liquid Level UST Containment Sump Test developed by PMAA as an acceptable low-cost test method for sumps.
This week, PMAA joined NACS, SIGMA, NATSO and the Merchant Advisory Group in sending letters to Visa, Mastercard, AmEx and Discover requesting for a delay in the EMV liability shift deadline for automated fuel dispensers (AFD) due to the health pandemic. In the requests, the associations ask that the deadline be extended from October 1, 2020 deadline to a later date to be determined after the health crisis comes to an end. Click here to view the EMV delay letter.Trump Administration Expected to Release Final Rule on CAFE Standards Next Week
According to a Trump Administration official, plans are in place to release the final rule on fuel economy standards next Tuesday. The rule is expected to require a 1.5 percent annual increase in the fleet-wide efficiency of new automobiles starting in 2021. Current regulations set by the Obama Administration require a mile-per-gallon (MPG) 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. The EPA and the National Highway Traffic Safety Administration (NHTSA) estimate that the final rule will save drivers around $1,000 on car purchases and could potentially save 3,000 lives over the rule’s lifespan.Small Refineries Appeal Court Ruling
In January, the EPA also issued an “Advanced Notice of Proposed Rulemaking” to create stricter standards on emissions from new heavy-duty trucks, and the agency has been collecting data to prepare for the upcoming rule.
PMAA has submitted numerous arguments as to why current MPG standards could harm petroleum marketers and how important it is that the Trump Administration’s rule is adopted. Click here to read the comments.
Trump Administration Backs Off Appeal
On Tuesday, two small refineries, HollyFrontier and Wynnewood Refining, appealed a 10th U.S. Circuit Court of Appeals ruling which said that the EPA had exceeded its authority and must reconsider the small refinery exemptions (SREs) that it had granted to the refineries. That court ruling said only refineries that had exemptions continuously since 2011 could apply for new ones. The refineries are appealing the ruling because it would scale back the number of SREs which would negatively impact the refineries by increasing RIN prices.Gasoline Demand Likely to Drop 50 Percent Due to Coronavirus
Meanwhile, the Trump Administration has ultimately decided not to appeal the 10th U.S. Circuit Appeals court ruling. Instead, the Trump Administration will look for other ways to provide funding relief to refineries. The decision by the administration not to appeal the ruling ultimately hurts the refineries, who would almost certainly need the EPA’s backing to have a shot at a successful appeal. Furthermore, the administration’s decision not to appeal now means that only a handful of refineries will be eligible to receive exemptions.
The issue is important to petroleum marketers because high RIN values lead to an unlevel playing field in the motor fuels market.
IHS Markit believes gasoline demand will drop 50%, even more than during the 2008 recession, due to the coronavirus health pandemic. IHS Markit also believes demand for internal combustion engines (ICE) will decline. Additionally, EVs are expected to take a hit given that oil prices are down, therefore making EVs less competitive. Click here to view the full article from IHS Markit.Federated Insurance COVID-19 Pandemic Resources to Assist Employers
Federated Insurance is committed to helping our clients navigate the newly announced mandates affecting business owners as a result of the spread of COVID-19. In collaboration with our friends at Enquiron®, we are providing you with three valuable documents designed to help provide information to organizations facing challenging employment issues during these uncertain times:
Additional helpful resources and Federated Insurance’s response to Coronavirus are found here.Promote Your Products or Services in PMAA’s Online Buyer’s Guide
Other Federated Information:
Risk Management Corner – Property/Casualty and/or Workers Compensation subjects
HR Question of the Month – a Human Resources-related question and answer from independent HR legal professionals
It’s Your Life – concepts related to Life and Disability insurance
Our mission at Federated Insurance continues to be enhancing your success and protecting your business. I sincerely hope the materials provided above help you during these trying times. I wish all the best for you, your business, your employees, and their families.
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.
NOTE: The materials provided contain information developed solely by Enquiron, a third party wholly independent from Federated. Federated provides this information as a courtesy to its clients. This content should not be considered legal advice from Federated and may be subject to additional rules and regulations in your state. The materials are provided as general information and intended to serve only as a guide. Since each business situation is unique, qualified legal counsel should be sought regarding questions specific to your circumstances and in responding specifically to the COVID-19 situation.
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