EMA Regulatory Alert: EPA Proposes to Relax Gasoline Cargo Tank Vapor Tightness Requirements

Yesterday, EPA proposed to relax the gasoline cargo tank vapor tightness certification requirements it adopted in 2024, responding to concerns raised by EMA. Specifically, EPA proposes to replace the 2024 limits with the graduated pressure-drop limits of 1.0 to 2.5 inches of water column, depending on cargo tank compartment size, that applied under NESHAP Subpart R before the 2024 final rule. The proposal follows extensive EMA advocacy before EPA and Congress regarding the technical feasibility and operational impacts of the 2024 requirements.

The 2024 final rule established a graduated pressure-drop limit of 0.5 to 1.25 inches of water column over a five-minute test period, depending on compartment size, which was significantly more stringent than the prior standards. EMA raised concerns that limits at the low end of that range could not be reliably demonstrated using EPA Method 27 under real-world operating conditions. EMA provided EPA with information and data regarding the difficulties experienced by fuel marketers and cargo tank operators, including the effects of temperature fluctuations and limitations in the test method that could result in false test failures, unnecessary retesting, and premature equipment replacement. EMA also documented the costs of meeting the 2024 standard, including retrofits, repairs, and operational downtime.

EMA brought these concerns to Congress as well. In March 2026, Senator Kevin Cramer (R-ND), joined by Senate Environment and Public Works Committee Chairman Shelley Moore Capito (R-WV) and nine other Senators, urged EPA Administrator Lee Zeldin to reverse the 2024 cargo tank vapor tightness requirements and restore the prior testing standard.

EPA's proposal recognizes many of the technical concerns raised by EMA. The Agency notes that EPA Method 27 has a reported precision of ±0.5 inches of water column and that a temperature change of approximately 1°F can produce a pressure change exceeding 0.5 inches of water column. EPA therefore proposes to find that the 0.5-inch requirement is at the limit of the test method's precision and that the more stringent requirements adopted in 2024 are not achievable in practice nationwide. EPA also preliminarily concludes that the incremental costs associated with the 2024 requirements are unlikely to be cost-effective under reasonable alternative assumptions.

EMA will continue its advocacy throughout the rulemaking process. EMA intends to submit comments supporting EPA's proposed revisions and will provide additional data and information from fuel marketers and cargo tank operators regarding the practical challenges of complying with the 2024 standard. Members with test results, retesting or repair costs, or other relevant experience are encouraged to share that information with EMA. The Association will continue working with EPA and Congress to ensure that the final requirements are technically feasible, cost-effective, and capable of being reliably demonstrated under EPA's testing procedures. Until EPA issues a final rule, the 2024 requirements remain in effect.

“EMA commends EPA for addressing the challenges posed by the infeasible 2024 vapor tightness standard, and we thank the members of Congress who have continued to elevate this issue and support America’s small business fuel marketers,” said EMA President Rob Underwood.

Inside the Beltway Update

The Senate is in session for its final weeks until after the midterm elections. While the Senate was considering leaving early, senators may remain in Washington, DC next week to advance a permitting reform package and data center legislation.

This week, the Senate prioritized a bipartisan permitting reform deal, and senators are optimistic about its success. Republicans say they have agreed to Democratic asks, but Democrats are requesting additional time on the bill to prevent further attacks on renewable energy. Environment and Public Works ranking member Sheldon Whitehouse (D-RI) and Senate Energy and Natural Resources ranking member Martin Heinrich (D-NM) have reiterated their commitment to solar and wind projects. Notably, President Trump signaled that he would ease his administration's stance on renewable energy projects to get Democrats to agree to a deal. President Trump, who strongly supports the permitting reform package, has called for fast action before the midterm elections. The text is expected to be released soon.

President Trump is also facing increasing calls from Republicans in farm states and tough reelection campaigns to impose a diesel export ban. Sen. Chuck Grassley (R-IA) shared a post declaring that high diesel prices are harming farmers’ incomes and called for President Trump to put an embargo on diesel exports. Sen. Dan Sullivan (R-AK) and Rep. Ashley Hinson (R-IA), who is running for Senate, also chimed in on the need for an export ban. President Trump shared that he is considering imposing a diesel export ban. However, Energy Secretary Chris Wright dismissed the idea of an outright ban and stated the Trump administration is preparing a plan to implement restrictions. Overall, division has emerged as the agriculture industry has pushed for a ban while the oil and gas industry has opposed it.

Sen. Susan Collins (R-ME) and Sen. Angus King (I-ME) sent a letter to President Trump urging him to release supply from the Northeast Home Heating Oil Reserve. According to the Maine Department of Energy Resources, Maine’s statewide heating oil prices have increased by 74 percent compared to this time last year. The senators cited the Trump administration's decision earlier this year to order a release from the Strategic Petroleum Reserve and called for a similar action with the Northeast Home Heating Oil Reserve.

On the penny rounding front, the Senate could not clear the House-passed Common Cents Act by unanimous consent. One senator objected to that text, so the bill is stuck short of final passage. If the hold is not lifted, the House’s cleanest path is to take up the Senate-passed version after members return from the midterm recess. The two bills are close enough that either one would set a national cash-rounding rule and lock in the end of circulating pennies. Bottom line: This is still likely to get done. It just may slip until after the election.

In addition, Sen. Amy Klobuchar (D-MN) and Sen. Tina Smith (D-MN) led a bipartisan push for the federal government to release energy assistance funding. Sens. Klobuchar and Smith, alongside 27 other senators, sent a letter calling on the Department of Health and Human Services to distribute its current Low-Income Home Energy Assistance Program (LIHEAP) funding by November 1, 2026. It is expected that $4 billion in federal LIHEAP funds is being withheld.

Looking ahead, Rep. Shontel Brown (D-OH) has officially launched her bid to be the top House Agriculture Committee Democrat. On the Republican side, Chair GT Thompson (R-PA) has requested a waiver due to term limits but faces competition from Rep. Austin Scott (R-GA), who is the current vice chair.

Jon Medo is the 47th member of the Virginia Energy Marketer Hall of Fame

Last Sunday evening at the Greenbrier, Jon Medo of Federated Insurance was inducted as the 47th member of the Virginia Energy Marketer Hall of Fame. Jon has been a constant participant in industry events with EMA and the states for almost two decades. He and Federated’ s team have undertaken unrivaled collaborative efforts with VPCMA. These efforts helped us to further the three main objectives of the association: advocacy, information, and interaction among fellow members and their suppliers. Thank you, Jon, for all you have done and will continue to do in support of our industry in Virginia and across the nation.

Congratulations to Jon and his wife Sara, who were in attendance for presentation.

EMA's Fall Meeting at the NACS Show 2026: October 5-6: Website and Registration Open!

Get ready for an exciting and productive EMA Fall Meeting, held alongside the NACS Show! Connect with industry leaders, gain valuable insights, and celebrate excellence at the Wynn Las Vegas!

Event Highlights:

• Oct 5, Afternoon: Kick off with a New Attendee Orientation & Federal Legislative Update to get up to speed on key issues.

• Oct 5, Evening: Join the EMA/NACS Reception Salute to State Association Executives at the Wynn/Encore Chopin Patio sponsored by Altria and PMI.

• Oct 6, Morning: Start your day with a Buffet Breakfast, followed by Region and Committee Meetings to collaborate and strategize.

• Oct 6, Afternoon: Celebrate at the Distinguished Service Award Luncheon, honoring former Kentucky/Ohio Marketer and EMA Past Chair Jeff Lykins, proudly sponsored by Federated Insurance. The EMA Board of Directors Meeting will follow.

Register now in the link below and be part of the EMA Fall Meeting at the NACS Show. We look forward to seeing you in Las Vegas! For more details, visit the website.

2026 NACS Show housing has now concluded for online reservations. However, there are still other hotels available! For up-to-date availability, please call Connections Housing, our official housing company at 404-378-6024, Monday-Friday 9am-6pm EST and a dedicated NACS Show representative can assist you.

Due to the proximity of the event dates, please contact your desired hotel directly to make any changes or cancels to an existing reservation.

Remember, the NACS Show registration is separate from EMA's Fall Meeting registration.

Special EMA Members Code for NACS Show 2026 Registration
Pre-Show Pricing ends Today

Using the EMANS2026 code provides EMA with $100 for every retailer or marketer paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association's member companies. Click here for the flyer.

**Please note that EMA State Execs are comped for NACS Show registration. Additionally, the NACS Show registration is separate from EMA's Fall Meeting registration.

Questions registering for NACS Show? Contact NACS Show registration customer service at nacs@maritz.com or 469-513-9489, Monday-Friday, 9:00 a.m. - 5:00 p.m. EST, for assistance.

Cash, Cash, Cash & More Cash: MDF Raffle Being Held During EMA’s Fall Meeting at the NACS Show

Get your EMA Marketers Defense Fund (MDF) raffle tickets now for a chance to win $1,000 in cash. The EMA MDF will hold a raffle during the Las Vegas, Nevada October 5-6 conference. The winner will be identified on October 6 and does not have to be present to win. If you are not attending the conference, you will be notified the week following the October drawing if you are the $1,000 “richer” raffle winner.

The proceeds of the raffle will benefit the EMA MDF. EMA marketers established the MDF to assure that the industry’s best interests are represented on the legislative and regulatory front. This fund has already effectively defeated regulatory initiatives such as proposed requirements to place the point of compliance for fuel quality at the retailer, to force a 10-micron diesel filter mandate as well as a costly wetlines retrofit and automatic temperature compensation (ATC) at retail.

A marketer can make corporate contributions by check or credit card to this program and there is no limit on the amount of contribution. All the money is used to support EMA lobbying goals. You can donate online by clicking here or scanning the QR code on the flyer.

Tickets are $25 each, or you can purchase five for $100! Advanced tickets are available until October 2. Ticket sales will continue at the Energy Marketers of America’s conference in Chicago until the drawing on October 6. Tickets can be purchased with personal or corporate funds by MasterCard, VISA, American Express, cash or check (checks should be made out to the Energy Marketers of America Marketer Defense Fund). To purchase advanced tickets before October 2, please email completed MDF Raffle flyer to Sabrina Pitcher.

Weekend Reads

A Diesel Export Ban Would Wreak Havoc at Home and Abroad. Here’s Why. | API

The Global Fuel Crisis Is Driving Up the Costs of Home Heating Oil, Too | The Wall Street Journal

Trump advisers weigh impact of short-term diesel export ban | Transport Topics

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: Policy Updates. We want to update a number of our company policies. How should we do this—can we just revise the policies and send them to our employees, or should we also have employees sign an acknowledgment form? What do we do if an employee refuses to sign the acknowledgment form?

As a best practice, employers should give employees an opportunity to review any revised policy and ask questions about the policy’s terms. Employees should sign and date a statement acknowledging receipt of the updated policy and agreeing to comply with it. This statement should make clear that the revised policy supersedes any prior ones. Employers should retain signed acknowledgment forms in each employee’s respective personnel file so there is a record of receipt and agreement to comply.

Depending on the circumstances, an employer may be able to condition continued employment upon each employee’s agreement to comply with an updated policy. In general, any employee who, without justification, refuses to comply with an updated policy can be disciplined, up to and including dismissal—if employment is otherwise at-will and if consistent with the employer’s policies and past practices.

That said, employees may have a legitimate reason for refusing to comply with a particular policy. For example, an employee’s sincerely held religious beliefs might prevent compliance or the employee might perceive the policy to compromise safety or violate public policy. Employers should evaluate an employee’s individual concern and take responsive measures as the situation may warrant. If there is merit to the employee’s objection, the employer should take appropriate steps to remediate, depending on the applicable facts. However, if the employee lacks legitimate justification for refusing to comply with any revised policy statement, the employer may be able to take disciplinary action, as noted above.

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 507.455.5175 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®

The Question of the Month is provided by Zywave^®, a company wholly independent from Federated Insurance. Federated provides its clients access to this information through the Federated Employment Practices Network with the understanding that neither Federated nor its employees provide legal or employment advice. As such, Federated does not warrant the accuracy, adequacy, or completeness of the information herein. This information may be subject to restrictions and regulations in your state. Consult with your own qualified legal counsel regarding your specific facts and circumstances.

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