Senators Urge EPA to Reverse Biden-Era Cargo Tank Rule, Protect Fuel Marketers
On Monday Senator Kevin Cramer (R-ND), along with Senate Environment
and Public Works Committee Chairman Shelley Moore Capito (R-WV) and nine
additional senators called on EPA Administrator Lee Zeldin to
immediately reverse a 2024 Biden administration rule that tightens
annual vapor testing requirements for gasoline cargo tanks. The letter
cautions that the regulation threatens fuel supply chains and places an
undue burden on America’s small business fuel marketers.
In a formal letter to Administrator Zeldin, Senators highlighted how the
rule imposes stricter standards, originating from California, which
deviate sharply from long-standing federal requirements. The revised
allowable pressure and vacuum changes for the cargo tank annual
certification test now limits pressure loss during testing for all cargo
tanks to just 0.50 to 1.25 inches of water over five minutes, depending
on compartment size. This replaces the previous, more practical
nationwide standard of three inches of water column, regardless of tank
size.
“Small businesses in our states should not be subject to California’s
regulatory overreach,” the letter states. “We urge you to continue the
Trump administration’s longstanding support for small businesses by
reversing this Biden-era mandate and restoring the prior cargo tank
testing standard.”
The Energy Marketers of America (EMA) has already reported that some
liquid fuel terminals are prematurely enforcing the new, tighter
standards—well ahead of the 2027 compliance deadline—creating immediate
compliance costs, operational confusion, and the very real risk of fuel
supply disruptions. Cargo tank operators unable to meet the stricter
limits on short notice could be denied access to terminals, directly
threatening daily deliveries to thousands of gas stations, farms,
ranches, emergency services, and other critical users.
“Gasoline is typically transported daily in large cargo tank vehicles
collecting the product from supply terminals and delivering it directly
to underground storage tanks at gas stations,” the letter explains.
“Absent corrective action, these standards could result in fuel supply
disruptions if cargo tank vehicles are denied terminal access due to an
inability to immediately comply with these unnecessary
requirements.”
The letter emphasized that the original, science-based standards had
successfully protected air quality for decades without compromising the
reliable flow of motor fuels that powers the American economy.
Reinstating the prior pressure-loss thresholds would eliminate needless
compliance burdens while preserving environmental protections.
Senators urged the EPA to engage directly with industry stakeholders to
revise the final rule and restore regulatory certainty for the nation’s
small business fuel distribution network.
“Reverting to this standard will support fuel supply continuity and
ensure that first responders, motorists, farmers, ranchers, and other
industries critical to America’s success have reliable access to an
adequate fuel supply,” the letter concludes.
“EMA expresses its appreciation for the Senators’ commitment to support
America’s small business energy marketers,” said EMA President Rob
Underwood.
Click here to read the letter.
NLRB Withdraws Biden Administration Joint-Employer Rule
Last week, the National Labor Relations Board issued a final rule which withdraws its 2023 joint employer standard and reverts to President Trump's narrower rule during his first term in 2020. The withdrawal is effective immediately.
In the fall of 2023, the Biden Administration's National Labor
Relations Board (NLRB) promulgated a
rule that would have made it significantly easier for the agency
to find the existence of “joint employment” between two or more
entities. The rule was challenged in federal court, and the effective
date was delayed.
The judge found the rule to be improper because “it would treat some
companies as the employers of contract or franchise workers even when
they lacked any meaningful control over their working conditions." The
joint-employment doctrine often is used by federal agencies to impose
liability on two or more companies with respect to a group of employees,
such as a staffing company and its client or a franchisor and
franchisee. For example, the NLRB can use the doctrine to impose
liability for violations of the National Labor Relations Act (NLRA) on
multiple companies, and the agency has been at the forefront of changes
to how joint employment is evaluated.
A finding of joint employment would have significant consequences for
companies under the NLRA. From a practical perspective, each company
found to be a joint employer by the NLRB may be held liable for the
unfair labor practices of their co-employers. For example, many energy
marketers operate convenience stores where the employees of vendors of
beverages, snacks, and other items come into the store and stock the
coolers and shelves as part of the deliveries. Energy marketers, such as
convenience store operators, have agreements with their vendors that
commonly set forth prudent, reasonable service expectations and
requirements that have an impact on the vendor’s employees. One such
contractual provision allows the energy marketer to retain the right to
reject the vendor’s delivery driver if the driver berates the
convenience store staff, threatens violence, or behaves in an
inappropriate manner while at the energy marketer’s facility. Under the
final rule, the Board can find that the energy marketer’s contractual
retention of the right to reject a driver as retaining a right to
control the vendor’s employment practices. The final rule, therefore,
does not adequately take into consideration the reasonable and prudent
needs for customers, such as the energy marketers represented by EMA, to
require their vendors to meet certain standards and requirements,
especially those relating to health, safety, and security.
Another example, as part of their retail motor fuel operations, energy
marketers often dictate the time of day when transport deliveries of
gasoline or diesel fuel can be made into the underground storage tanks
at a particular location, largely because of the store’s smaller
“footprint.” It is difficult, and it increases safety hazards, to have a
large transport truck blocking driveway access during the store’s rush
hours. Merely limiting the “window” for fuel deliveries conceivably
could subject the energy marketer to joint employer liability.
Bottom line… the Trump Administration's final rule is great news for
energy marketers!
Trump Administration Likely to Reverse Biden-Era Independent Contractor Rule
Last week, the Trump Administration’s Department of Labor issued a proposed rule to rescind the Biden Administration’s 2024 independent contractor rule and returning to the "economic reality test" adopted during President Trump's first term in 2021.
On Jan. 9, 2024, the U.S. Department of Labor’s (DOL) Wage and Hour Division announced its final rule on Employee or Independent Contractor Classification. The final rule replaced a 2021 policy issued by the Trump administration and is based off an administrative interpretation issued by the DOL under the Obama administration. The final rule preserves the use of an “economic realities” test that analyzes an employee’s classification through the totality of the circumstances of the worker-employer relationship.
For EMA member companies, this primarily affects arrangements where common carriers haul motor fuels using independent operators (e.g., owner-operators or leased drivers) as drivers. Standard contracts with common carriers are unlikely to be directly problematic, as the marketer typically deals with the carrier, not the individual drivers. However, potential impact arises if the DOL rule leads to reclassifying those independent operators as employees of the common carrier: This could increase the carrier's labor costs (e.g., minimum wage, overtime, benefits, taxes, workers' comp) and carriers might pass on higher costs through increased hauling rates to marketers.
Additionally, if an energy marketer uses an independent operator to deliver fuels or packaged goods (e.g., lubricants) for the company, including using the EMA members’ trucks, they are also likely to be captured by the DOL final rule. Outside of transportation, there are issues under the DOL rule where the energy marketer uses independent contractors for sales or other non-transportation roles (e.g., accounting or environmental compliance).
EMA plans to submit comments by the April 28th deadline.
On March 3rd, the House Agriculture Committee held a markup of the “Farm, Food and National Security Act of 2026,” better known as the 2026 Farm Bill. Included in the base text are much-needed provisions that provide regulatory relief to hemp fiber and grain farmers, while also ensuring that THC testing opportunities are not limited to DEA laboratories. While there are no provisions related to cannabinoids, Reps. Jim Baird and Angie Craig have introduced an amendment to provide for a one-year extension of the hemp ban moratorium that currently expires on November 12, 2026. This extension would provide much-needed relief to U.S. farmers currently deciding whether to plant hemp crops this spring. The extension would also allow for much-needed time to consider and pass legislation to provide a robust regulatory framework to replace the impending ban. We do not expect a vote on this amendment – the committee’s chair has deemed it not to be germane to the Farm Bill. However, this will provide an excellent opportunity for supporting Members of Congress to share their concern about the impending ban and the need for a regulatory solution.
Early in the week and following the U.S. military actions on Iran and subsequent retaliatory strikes in the Strait of Hormuz, the Trump administration is under intense pressure to combat spiking gasoline and oil prices. White House Chief of Staff Susie Wiles has directed advisors to develop immediate solutions, leading to the consideration of several options, including a gasoline tax holiday, loosening sanctions on Russian oil, and deploying the U.S. Navy to escort tankers. While the administration publicly dismisses reports of panic and emphasizes a "game plan" involving oil from Venezuela and shipping insurance, internal documents reveal a scramble to manage the economic ramifications as gas prices surpass levels seen under the previous administration.
Ultimately, the Trump administration has decided to issue a temporary 30-day waiver allowing Indian refiners to purchase sanctioned Russian oil currently stranded at sea. While Treasury Secretary Scott Bessent framed this as a limited measure to increase global supply without providing a significant long-term windfall for the Kremlin, the decision highlights the administration's struggle to manage the effects of foreign conflict on energy costs. Despite the potential for domestic political backlash regarding U.S. support for Ukraine, officials are prioritizing immediate relief as oil prices have surged $15 per barrel since hostilities began, though analysts caution that the primary beneficiaries of this sanction’s relief may be international buyers in Europe, China, and India rather than American motorists.
Top Democratic and Republican senators have reopened bipartisan negotiations to overhaul federal energy permitting regulations. These talks, which had stalled in December due to the Trump administration's "stop-work" orders on offshore wind projects, were revived following recent administrative progress in approving certain solar and renewable energy projects. While Democratic leaders Sheldon Whitehouse and Martin Heinrich cautioned that further interference with existing permits would end the dialogue, Republican chairs Shelley Moore Capito and Mike Lee expressed optimism that a deal could address rising energy costs and unlock significant economic investment. However, industry groups remain wary as the upcoming election and potential shifts in congressional control present significant hurdles to passing comprehensive legislation.
EMA’s annual Washington Conference and Day on the Hill will be held in Washington, DC from May 13-15 at The Mayflower Hotel. Our industry continues to have many important legislative and regulatory issues to discuss and the Day on the Hill remains the primary focus of this conference for you to meet with your members of Congress and network with other marketers from across the country!
Hotel reservations will close April 30 at 6:00 pm Eastern or when the room block is sold out. Tuesday night (2 available), Wednesday night (42 available), and Thursday night (12 available). If we sell out, please refer to Additional Hotel Information #3.
Registrations must be received by April 30 to be included in our hotel guarantee.
| Click here to Register and Book your Hotel Room for EMA’s DC Conference and Day on the Hill |
Energy Marketers of America Small Business Committee (SBC) PAC Co-Chairs Mike Downs and Tim Keigher would like to thank Gene Inglesby and the Western Petroleum Marketers Association (WPMA) for providing this year’s first 2026 PAC Silent Auction item - a cherished timepiece.
WPMA generously contributed a Gardner Mantel Clock that features brushed aluminum corners and polished silver-tone accents to compliment your home decor. Place it above your fireplace in the living room for a classic decorative piece with a Faux Macassar ebony finished top and base. Howard Miller is the world’s leading clock company and respected brand name in fine specialty furnishings. Founded in 1926 and still family-owned in its third generation.
The auction will take place in conjunction with EMA’s Washington Conference May 13-15, and bidding and raffle purchases will begin April 13 and will close May 15 at 9:00 am. The auction items will be displayed at the Welcome Reception on May 14. Last year, there was tremendous support in contributions for the auction and EMA SBC PAC Co-Chairs Mike Downs and Tim Keigher urge your participation this year as well! Please consider helping to grow the EMA PAC so that we can reach and support lawmakers that help you and the entire industry by contributing to the use of your vacation home or an experience for the auction. No value is too low to help generate funds for the EMA PAC during the 2026 Midterm elections.
If you have items that you would like to contribute for the Silent Auction, please click here or contact Sabrina Pitcher at 703-351-8000.
February 2026 Energy Marketers of America Small Business Committee (SBC) PAC Contributions
PAC Co-Chairs Mike Downs and Tim Keigher are grateful for the EMA Small Business Committee (SBC) PAC contributions from the following individuals during the February 1-28, 2026, time frame:
Arkansas: Kenneth Grounds, David Hendrix
Idaho: Brett Adams, Jessica Berry, Matt Berry, Derek Brewer, Tonya Charters, Ed Croymans, Brad Holland, Jeff Rouse, Jake Searle
Kentucky: Josh Emmick
Mississippi: Drew Bryant, Kirk Dickerson, Charles Morris, Joe Morris
NECSEMA: Tom Frawley
Oklahoma: Candace McGinnis
Oregon: Mark Fitz
South Carolina: Roland Drake, Matthew Greene, David Jordan, Thomas Madden, Joseph Middleton, Patrick NeSmith, Brendan Nugent, E. Barrett Albenesius Simmons
Diesel prices up 26 cents since last year | The Trucker
Experts analyze what the Iran war could mean for U.S. gasoline prices | PBS
Farmers could disable diesel exhaust fluid systems under House-passed bill | Iowa Capital Dispatch
U.S. Not Planning To Tap Strategic Petroleum Reserve Immediately | Yahoo!News
Federated Insurance Risk Management Academy Complimentary
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Thursday, March 19, 2026, 2:00 P.M. Eastern
Time
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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®