Season’s Greetings and Warmest Wishes for a Happy New Year from the Energy Marketers of America!
This past year has been both busy and demanding for EMA and our members, yet we are proud of the significant progress we’ve made. Our core mission remains unchanged: to unite energy marketers nationwide through state and regional associations, advancing the shared business interests of our industry—particularly on critical legislative and regulatory matters.
We invite you to stay connected by visiting our website, follow us on X and Facebook. We are deeply grateful for your ongoing support and partnership. May you and your loved ones enjoy a joyful, healthy, and prosperous holiday season and a bright New Year ahead!
EMA Requests Speedier Federal Motor Fuel Excise Tax Claim Processing
EMA is receiving reports from energy marketers that they are once again experiencing delays in the processing of federal motor fuel excise tax (FET) ultimate vendor claims for sales of clear, tax excluded diesel fuel to state and local governments.
In response, EMA sent a letter today to Acting IRS Commissioner Scott Bessent expressing concern over the delays and asking for a return to timely processing as soon as possible. EMA emphasized that many small business energy marketer operations could be disrupted if the delays are not resolved quickly.
| Click Here to Read the Letter |
2026 Federal Motor Fuel Excise Tax Rates and Credits -- WHAT’S NEW?
Superfund Tax: The Superfund tax was reinstated on crude oil received at refineries and on imported petroleum products, beginning on January 1, 2023, by the Inflation Reduction Act. Until December 31, 2025, the Superfund tax rate is the sum of the Hazardous Substance Superfund rate and the Oil Spill Liability Trust Fund financing rate. The Oil Spill Liability Trust Fund tax expires on December 31, 2025, and has not been renewed by Congress. Unless legislation is enacted in 2026, only the Hazardous Substance Superfund tax will be payable to the IRS.
For calendar years beginning in 2024, the Hazardous Substance Superfund financing rate is adjusted for inflation. For calendar year 2026, the Hazardous Substance Superfund tax rate is $0.18 cents per barrel.
The Superfund tax is paid by refiners and crude oil and finished product importers. While no party below the terminal rack is liable for the Superfund tax, refiners and importers pass the fee down as a cost folded into the wholesale rack price of petroleum products –– not as a tax. Marketers are not required to break this fee out as a “tax” on their invoices or contract bids. Note that the Superfund rate is not refundable to any party along the petroleum refining and distribution chain. Marketers with questions should consult with their suppliers.
Highway Trust Tax: The Federal government collects revenue for the Highway Trust Fund primarily from excise taxes on motor fuels. Federal taxes include excises taxes of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel, plus a Leaking Underground Storage Tank (LUST) tax of 0.1 cents per gallon on both fuels. The Table below includes the excise taxes collected from this program, including the total 18.4 cents per gallon tax on gasoline and the 24.4 cents per gallon tax on diesel fuel.
Lust Tax: The LUST tax applied to motor fuels is non-refundable, for which tax-exempt parties are required to pay the .001 cents per gallon. The Table below includes rates for the .001 cents per gallon non-refundable LUST tax imposed on both dyed and clear liquid fuel:
 |
||
|---|---|---|
| Product | Rate | Cents Per/Gal |
| Gasoline | $.184 | 18.4 cpg |
| Gasoline (removed for alcohol blending) | $.184 | 18.4 cpg |
| Alcohol (for use in downstream gasoline blending) | $.184 | 18.4 cpg |
| Aviation Gasoline | $.194 | 19.4 cpg |
| Heating Oil | $.001 | 1/10th cpg |
| Diesel (clear) | $.244 | 24.4 cpg |
| Diesel (dyed) | $.001 | 1/10th cpg |
| Diesel (dyed used in trains) * | $.001 | 1/10th cpg |
| Diesel (removed for blending with biodiesel) | $.244 | 24.4 cpg |
| Diesel (used in certain intercity and local buses) | $0.17 | 17.0 cpg |
| Biodiesel (removed for blending with diesel) | $.244 | 24.4 cpg |
| Kerosene (clear) | $.244 | 24.4 cpg |
| Kerosene (dyed) | $.001 | 1/10th cpg |
| Kerosene (clear - non-commercial aviation) ** | $.219 | 21.9 cpg |
| Kerosene (clear - for use in non-taxable aviation) | $.001 | 1/10th cpg |
| Kerosene (clear - for use in commercial aviation not foreign trade) | $.044 | 4.4 cpg |
| Alternative Fuels - On Highway Use in a Motor Vehicle | ||
| Propane (liquefied propane gas) (gasoline gallon equivalent) *** | $.183 | 18.3 cpg |
| Compressed Natural Gas (CNG) (gasoline gallon equivalent) *** | $.183 | 18.3 cpg |
| Liquefied Natural Gas (diesel fuel gallon equivalent) *** | $.243 | 24.3 cpg |
| “P” Series Fuels | $.184 | 18.4 cpg |
| Liquefied Fuel (derived from biomass) | $.244 | 24.4 cpg |
Notes
*This tax is paid by the railroads, NOT by the ultimate vendor.
** Marketers pay $.244 cpg at the rack, user’s rate is $.219. Ultimate vendor claim is 2.5 cpg. The ultimate vendor is the only party that can make the claim for the 2.5 cpg. Ultimate vendor must have a certificate from the ultimate purchaser verifying the fuel is used for non-commercial aviation. Ultimate vendor must have an IRS 637 UA registration to file claim.
***For taxation purposes, one gasoline gallon equivalent (GGE) is equal to 5.75 pounds (lbs.) of propane and 5.66 lbs. of CNG. One diesel gallon equivalence (DGE) is equal to 6.06 lbs. of LNG. (Reference 26 U.S. Code 4041 and 4081).
Late Thursday, Congress closed out the 1st Session of the 119th Congress concluding an active, but partisan, year in Washington. This week was particularly active on the executive front where President Trump issued a flurry of executive orders. Meanwhile, the House of Representatives maintained an active floor schedule heading into the holiday recess, advancing permitting reform legislation and advancing out of committee the American Water Stewardship Act and the Aviation Supply Chain Safety and Security Digitization Act. This weeks’ Senate activity was highlighted by passage of the National Defense Authorization Act and confirmation of a massive package of nearly 100 Trump nominees.
On December 18, the Trump Administration issued an executive order directing the rescheduling of marijuana from Schedule I (which is reserved for the most dangerous substances such as heroin) to the less restrictive Schedule III. The order does not legalize marijuana nationwide and does not take immediate effect; instead, it instructs the Department of Health and Human Services and the Drug Enforcement Administration to restart a formal rulemaking process that has been stalled since January. Administration officials argue the move will unlock significant research opportunities currently unavailable under federal law. The action revives a review process initiated under President Biden in 2022 but stalled amid legal challenges and agency delays. Politically, the decision has exposed divisions within the GOP. While Democrats broadly support rescheduling, and some Republicans - including former Speaker John Boehner and Rep. James Comer - have endorsed easing restrictions to support veterans and medical research, many House Republicans oppose the move, citing public-safety concerns and potential risks to young Americans. Additional information, and opportunities for public comment, will be released in the coming months.
On the Senate side, Senator Marsha Blackburn (R-TN) introduced the Consumer Relief and Opportunities for Producers Act (CROP Act) (S. 3297), which would temporarily reinstate the $1-per-gallon “40A” Biodiesel Blenders’ Tax Credit for six months, through May 31, 2026. The bill would allow taxpayers to elect between the Biodiesel Tax Credit and the Section 45Z Clean Fuel Production Credit. More than three years after enactment, the industry continues to await Treasury’s proposed regulations implementing the 45Z credit - a delay that has created ongoing complexity, uncertainty, and repeated revisions for biofuel producers.
Separately, the Merchants Payments Coalition (MPC), joined by member trade associations including EMA, urged the Federal Reserve in a letter to reject banks’ latest request to abandon the agency’s proposal to reduce debit card “swipe” fees charged by large financial institutions. MPC called on the Fed to move forward with adopting the long-pending fee reduction.
Finally, H.R. 4776, the SPEED Act, passed the House by a vote of 221–196 after a group of Republican opponents, initially concerned about offshore wind provisions, ultimately supported a procedural vote. The bill aims to accelerate infrastructure and energy projects by streamlining the National Environmental Policy Act (NEPA), imposing firm agency deadlines, narrowing environmental reviews to non-speculative impacts, and allowing targeted exemptions. Supporters, including House Natural Resources Committee Chairman Bruce Westerman (R-AR), argue the legislation delivers commonsense upgrades that reduce red tape and lower costs. Environmental groups and Democratic opponents counter that the bill weakens environmental protections, limits public participation, and curtails judicial oversight by restricting courts’ ability to halt projects even when violations occur. Following House passage, lawmakers remain cautious about how the legislation may be altered as it moves to the Senate.
Minimum Wage Rates increase in 22 States in 2026
In 2026, 22 states, and several major localities, will raise their minimum wage rates. The Table below includes the wage increases for the states that have announced their 2026 wage hikes. Note that some states make annual adjustment for inflation but have not announced rate changes yet, and that local jurisdictions are also set to increase their minimum wage rates at the beginning of next year. Marketers are advised to consult with their payroll services to determine if there are any minimum changes with their local jurisdictions. or tipped employees.
| State | Wage Rate / Hourly (effective January 1, 2026, unless otherwise noted) |
|---|---|
| Alaska | $14.00 |
| Arizona | $15,25 (Separate rates for Flagstaff and Tucson) |
| California | $16.90 (Separate rate for Oakland, San Diego, San Jose and West Hollywood) |
| Colorado | $15.15 (Separate rates for Denver and Boulder) |
| Connecticut | $16.94 |
| Florida | $15.00 (effective September 30, 2026) |
| Hawaii | $16.00 |
| Maine | $15.10 (Separate rate for Portland) |
| Maryland | Prince George’s County rate TBD |
| Michigan | $13.73 |
| Minnesota | $11.41 (Separate rates for Minneapolis, St. Paul, and small businesses) |
| Missouri | $15.00 |
| Montana | $10.85 |
| Nebraska | $15.00 |
| New Jersey | $15.92 (Separate rate for seasonal employees) |
| New York | $17.00 (NYC and Downstate) $16.00 (Rest of State) |
| Ohio | $11.00 (effective January 1, 2026) (separate rate for employers with gross receipts less than $405,000 per year |
| Rhode Island | $16.00 |
| South Dakota | $11.85 |
| Vermont | $14.42 |
| Virginia | $12.77 |
| Washington | $17.13 (Separate rate for Seattle) |
Federal minimum wage rate remains at $7.25 per hour for nontipped employees and $2.13 per hour for tipped employees (with a maximum tip credit of $5.12)
Tired of Delayed IRS Tax Refunds?
EMA Member Service Benefit with IRS-Approved E-File
Company ThinkTrade to Help Streamline IRS Tax Refunds
After hearing from marketers’ concerns regarding IRS tax refund
delays, the Energy Marketers of America (EMA) partnered with ThinkTrade,
an IRS authorized e-filing service provider and a BBB accredited company
with A+ rating, enabling safe and secured filing for
taxpayers. ThinkTrade will grant EMA member companies a 15 percent
discount off ThinkTrade’s e-filing services through a dedicated landing
page to prepare, file and pay federal excise tax returns on IRS Forms
720, 8849 and 2290.
With over two decades of experience serving customers, ThinkTrade has a
proven track record of delivering savings and support to trucking
companies of all types and sizes when filing federal excise taxes.
Energy marketers will also have access to ThinkTrade’s dedicated
24/7/365 support team, which provides one point of contact for all
e-filing service needs.
| CLICK HERE FOR MORE INFORMATION ON ThinkTrade and EMA’s LANDING PAGE TO FILE TAXES |
Ford shows the consequences of whiplash politics
US EPA anticipates finalizing biofuel regulations in the first quarter of 2026
EIA Sees 2.2 Million Barrel Per Day Glut in 2025
TEI Report: New Report: Driving Insight: A Five-Year Synthesis of Combustion Emissions Research
Credit Card ‘Swipe’ Fees Could Cost Consumers $20 Billion Or More During 2025 Holiday Season
Federated Insurance: Risk Management Corner
Uplift Your Employees by Promoting Back Injury Prevention
Lifting objects is a necessary part of many jobs. However, it’s easy for employees to develop bad habits that can harm their backs and put them out of commission. Back injuries are one of the leading causes of disability for workers.1 Injuries can develop over time from long-term repetitive activity or result from a single mishap.1
Management's Role in Back Injury Prevention
Your role as a business owner is essential in promoting back injury prevention at work. Encourage safe lifting techniques with these actions:
Create a Workplace Policy – This may include guidelines on proper lifting practices, supervision, team assistance, and using appropriate tools.
Conduct a Hazard Assessment – Identify lifting risks and work with employees to address them.
Host Regular Safety Meetings and Training – Discuss safe lifting practices on a frequent basis.
Provide Lifting Aids – Offer tools like adjustable carts and hoists for heavy items.
Tips for Safe Lifting
Leading by example can create a safer workplace. Consider reviewing these lifting tips with your team:
Ensure there’s adequate space and a clear path around you.
Test the weight of each object and ask for help if it's too heavy.
Bend your knees and use your legs to lift, not your lower back.
Keep the load close to your body.
Avoid twisting or stretching while carrying a load.
Use tools like dollies or hoists for heavier loads.
Beyond the Workplace
Prioritizing back health doesn't stop at work. Remind your employees to practice these techniques at home, where lifting tasks can also take a toll. Reach out to your local Federated Insurance® marketing representative today for more risk management information or for additional information or to discuss this in further detail, please contact your Federated regional representative or EMA’s National Account Executive Jack West at 262.719.7750 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.
At Federated Insurance, It’s Our Business to Protect Yours®
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. Examples shown are for illustrative purposes only. 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. ©2025 Federated Mutual Insurance Company.