EMA Regulatory Alert: Energy Marketers of America Celebrates Major Regulatory Victory with PHMSA Final Rule on Placarding for Petroleum Distillate Fuels
Yesterday the Energy Marketers of America (EMA) hailed a significant win for the energy marketing industry following the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) issuance of a final rule that reinstates a key placarding exception for cargo tank vehicles transporting petroleum distillate fuels. This rule, effective upon publication in the Federal Register, allows energy marketers to display the identification number of the fuel with the lowest flash point transported during the current or previous business day, streamlining operations and reducing unnecessary compliance burdens. The placarding exception also applies to compartmented cargo tanks containing more than one petroleum distillate fuel.
The final rule addresses long-standing EMA advocacy efforts to restore flexibility in hazardous materials regulations (HMR) under 49 CFR 172.336. Previously, a 2015 PHMSA interpretation limited placarding options, forcing marketers to install costly flip or interchangeable systems or adjust load sequencing, which increased inefficiencies, costs, and safety risks for drivers. By reinstating the lowest flash point exception for split loads and alternating straight loads—including gasoline, diesel, heating oil, and ethanol blends up to E10—the rule acknowledges market realities and aligns with emergency response best practices, as all these fuels require similar emergency response in case of incidents.
"This victory is a testament to EMA's persistent advocacy on behalf of our members, who are the backbone of America's energy supply chain," said Rob Underwood, President of EMA. "By allowing placarding based on the lowest flash point over a business day, PHMSA has eliminated outdated barriers that hindered efficient fuel delivery without compromising safety. This change will save our industry millions in compliance costs and enable small businesses to better serve communities across the nation."
The rule is part of PHMSA's broader initiative to eliminate unnecessary regulatory burdens, projecting $145.3 million in annualized cost savings across the transportation sector. Another cost-savings change made by PHMSA under 49 CFR 180.407(a)(7) is to allow the use of video cameras or video optics equipment for cargo tank inspections and tests in lieu of a human going inside the cargo tank.
EMA played a pivotal role throughout this reform by advocating before Congress for a legislative fix, submitting a petition urging the agency to initiate rulemaking, and actively engaging during the regulatory process. EMA provided critical information highlighting the operational realities faced by fuel marketers and underscored the importance of this reform to support efficient and reliable transportation of essential energy resources.
Please note that while PHMSA considered expanding the placarding exception to include E15, the agency ultimately did not include ethanol blends higher than 10% in the scope of the lowest flash point exemption.
Key Compliance Takeaways for EMA Marketers
The rule will take effect upon publication in the Federal Register through a voluntary compliance mechanism. Although it has not yet been published, we estimate the agency will do so within the next 7–10 days. EMA will provide a timely update.
Split loads (e.g., 4 compartments carrying diesel and 1 carrying gasoline) are subject to the lowest flashpoint exception. See the fifth-row exception below.
Alternating loads (e.g., full gasoline haul followed by a full diesel haul) are also subject to the lowest flashpoint exception. See the sixth-row exception below.
Neither the fifth (split loads) or sixth row (alternating loads) exception applies when fuel blends contain more than 10% of ethanol (E15). There are special rules for E15.
Energy Conservation, Not Energy Substitution: EMA Testifies on CAFE Standards
Earlier this month, the
National Highway Traffic Safety Administration (NHTSA) held a
virtual public hearing on its proposed Corporate Average Fuel
Economy (CAFE) standards for Model Years 2022–2031 for passenger
cars and light trucks. Of particular importance to motor fuel
marketers, the proposal would exclude electric vehicles (EVs) and
electric-only performance from the CAFE standard-setting process.
Representing the interests of motor fuel distributors and
retailers nationwide, the Energy Marketers of America (EMA) voiced
support for the proposal, emphasizing that the CAFE program must be
implemented as a technically feasible energy conservation regime,
not an energy substitution scheme fostering EV penetration.
“Allowing CAFE standards to serve as a backdoor mechanism for
regulating GHG emissions and forcing fleetwide electrification is
contrary to both the plain language of the statue and its
legislative intent,” said EMA President Rob Underwood.
Click here to read the testimony.
Speaker Mike Johnson is moving forward with plans for a second party-line "megabill" utilizing the budget reconciliation process to bypass potential filibusters. While Johnson remains "bullish" on the bill's prospects and has the support of the Republican Study Committee, he faces internal resistance from several GOP committee chairs who are skeptical that such a measure is possible. The effort is complicated by a narrow House majority, ideological differences within the party, and the political pressures of an election year. Despite these hurdles, Johnson intends for the legislation to be "House-driven" and has already initiated discussions regarding the proposal with Senate leadership.
President Donald Trump’s support of a proposal to impose a 10% cap on credit card interest rates and curb transaction fees has ignited a multimillion-dollar lobbying battle. Retailers view Trump's endorsement of the Marshall-Durbin legislation (S.1838) as a crucial boost for lowering transaction fees. The Credit Card Competition Act builds on previous efforts to promote competition in the credit card processing market and would require large banks to enable retailers to route transactions over at least two unaffiliated networks - beyond the dominant Visa and Mastercard duopoly.
Republican leadership is likely to table the Save Local Business Act, a bill designed to tighten the federal "joint employer" standard, following a revolt from the party's pro-labor flank. This legislative stall occurred after six Republicans joined Democrats to block separate legislation regarding overtime rules, leading to concerns that the joint employer measure would also fail if put to a floor vote. The proposed Save Local Business Act would narrow the joint employer standard, stipulating that a company is only responsible for another firm's employees if it exerts direct and immediate control over essential job terms such as hiring, pay, and scheduling. While supporters argue the bill protects the franchise industry from Biden-era regulations, the internal opposition has forced House Education and Workforce Chair Tim Walberg to potentially restart his labor agenda. Amidst this friction, lawmakers are considering a different measure, the American Franchise Act, which has garnered some Democratic support due to its specific focus on franchising.
The House of Representatives has passed a funding bill that would reduce the IRS budget by approximately 10% to $11.2 billion, a move intended to help avert a looming government shutdown on January 30. As the legislation moves to the Senate, the Internal Revenue Service Advisory Council has criticized these fiscal maneuvers, noting that Congress has already clawed back more than half of the $80 billion previously granted to the agency in 2022. The council warned that such inadequate funding undermines the agency's ability to collect revenue efficiently and will likely lead to an increase in scams, fraud, and misinformation on social media. Additionally, these cuts are expected to result in tepid tax enforcement, ultimately widening the tax gap and slowing the processing of legitimate tax returns.
On the hemp front, Representative Jim Baird (R-IN) and House Agriculture Committee Ranking Member Angie Craig (D-MN) introduced legislation that would delay for two years the ban on intoxicating hemp that was enacted in November as part of the agreement to reopen the federal government. Specifically, the spending bill hemp language was designed to close the "hemp loophole" by November 2026 thereby changing the definition of hemp from previous farm bill language to preclude all but naturally occurring derivatives of hemp products with lower than 0.3 percent THC content by dry weight. Under the legislation that was introduced by Reps. Baird and Craig, the ban would be delayed until 2028 to give time for industry stakeholders to come up with a compromise.
Additionally, the House Ways and Means Committee has approved a bipartisan bill requiring the IRS to add barcodes to paper tax returns to enable electronic scanning and faster processing. While the measure aims to modernize tax administration, it faces a complex political environment; though Democrats support the barcode mandate, they argue that Republican-led budget cuts undermine the agency's ability to operate efficiently. The legislation is now moving to the House floor for a final vote, despite similar efforts in the Senate remaining stalled.
On Tuesday, the Energy Marketers of America (EMA) welcomed the reintroduction of the Credit Card Competition Act (CCCA) by Senators Roger Marshall (R-KS) Dick Durbin (D-IL) and along with Reps. Lance Gooden (R-TX) and Zoe Lofgren (D-CA) a bipartisan measure aimed at curbing skyrocketing credit card swipe fees that disproportionately impact small business fuel marketers and convenience store operators across the nation. The bill introduction follows President Donald’s posted support for the bill today on the X social media platform. EMA thanks the President for his monumental move to endorse passage of the CCCA.
The legislation, which builds on previous efforts to promote competition in the credit card processing market, would require large banks to enable retailers to route transactions over at least two unaffiliated networks - beyond the dominant Visa and Mastercard duopoly. This reform mirrors successful debit card routing rules in place for over a decade and could significantly reduce interchange fees, providing much-needed relief to EMA members who operate on razor-thin margins in a volatile energy market.
"Credit card swipe fees have become one of the largest operating expenses for our members, often exceeding utility costs and cutting deeply into profits that could otherwise support jobs, infrastructure upgrades, and competitive fuel pricing for consumers," said Rob Underwood, President of EMA. "We commend Senators Marshall and Durbin for their leadership in reintroducing this critical bill, and we applaud President Trump's endorsement as a strong signal of support for America's small businesses. It's time to level the playing field and end the unchecked dominance of big banks and card networks that siphon billions from Main Street retailers every year."
EMA members, who represent thousands of independent energy marketers, distributors, and convenience store owners, paid an estimated $15 billion in swipe fees last year alone - fees that continue to rise unchecked. By fostering competition, the Credit Card Competition Act would empower retailers to choose lower-cost processing options without compromising transaction security or consumer rewards programs, ultimately benefiting drivers at the pump through potential savings.
EMA calls on Congress to prioritize and pass this legislation in the 119th session, ensuring that fuel retailers can thrive amid economic pressures like fluctuating energy prices and supply chain disruptions.
December 2025 Contributors to EMA MDF
EMA’s Marketer Defense Fund (MDF) committee wants to thank the following individuals for their MDF contributions during the December 1-31, 2025 timeframe:
Illinois:
John McGovern, OSCO, Inc.
Kansas:
Dennis McAnany, McAnany Oil Company
Louisiana:
Anne Gauthier, St. Romain Oil Company, LLC
Mississippi:
Philip Chamblee, Mississippi Petroleum Marketers & CSA
Walton Gresham, Gresham Petroleum Company
Jake Sumrall, Sumrall Oil Services
North Dakota:
North Dakota Petroleum Marketers Association
Ohio:
Alex Boehnke, Ohio Energy & Convenience Association
Pennsylvania:
David Harris, Harris Comfort
Wisconsin:
Matt Hauser, Wisconsin Fuel & Retail Association
Corporate donations are acceptable. MDF funds have been used to create a COVID-19 Situational Update & Resources webpage, to hire experts to cover important regulatory agencies and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the EMA MDF.
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Federated Insurance: Risk Management Corner
Risk Management Resolutions For Your Business
Every workplace faces some degree of risk in their daily operations. Part of your role as a business owner is to communicate why risk management helps with employee safety. Equally as important is addressing how it can benefit everyone to support a culture of safety.
Setting a Risk Management Foundation
Consider creating strong practices and policies as a first step. This can help you identify, assess, and mitigate threats that could impact your bottom line and organization.
It can also reinforce the value of everyone participating to help prevent risks. Additionally, consider how to educate and communicate with your team. Explain that risk management can:
Improve decision making when everyone understands potential risks.
Enhance reputation by protecting your brand image.
Increase efficiency by integrating risk management into daily operations.
Equip your team with knowledge on how to act and react to various situations.
Encourage growth and innovation.
Risk Management Resolutions
Resolve to make risk management a priority for your business to help minimize hazards, create efficiencies, and build trust. Consider the following tips:
Create and implement a risk management system specific to your business.
Set aside resources to monitor and improve your plan.
Conduct regular risk assessments.
Communicate plans and expectations.
Provide training, education, and communication about policies.
Document, escalate, and manage incidents as soon as they happen.
Reach out to your local Federated Insurance® marketing representative today for more information. Federated® clients can access mySHIELD® for additional industry-specific resources 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.
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Schedule your consultation today to learn more by visiting www.rinalliance.com/contact.
Be sure to tell them you heard about RINAlliance through EMA or one of
its Federation members.
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