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PMAA PARTICIPATES IN E85 HILL BRIEFING
On Monday, PMAA President Dan Gilligan, served as a panelist
on Capitol Hill outlining infrastructure hurdles related to
E85 growth.
The briefing for Capitol Hill staff was hosted by the Fuels
Institute to further educate Congress on E85 in the market
and to outline the Institute's November 2014 report, “E85: A
Market Performance Analysis and Forecast.” The report,
released in November 2014, projects that E85 sales could
potentially increase from 196 million gallons in 2013 to
between 400 million and 4.4 billion gallons in 2023 as long
as the auto industry continues producing FFVs and E85 prices
are significantly below those of gasoline.
Since the study did not calculate infrastructure costs, Dan
focused on the “return on investment” challenges retailers
face when considering the costs of replacing portions of
both underground and aboveground equipment. Because of fire
codes it is likely substantial portions of equipment would
need to be replaced or upgraded to offer E85. Further, Dan
highlighted the point that only two percent of companies
owning gas stations currently blend ethanol and benefit from
RINS. Without the benefit of selling RINs, retailers have
very little incentive to invest in new equipment.
The other panelists were Paige Anderson, NACS; Bob Greco,
API; Chris Bliley, Growth Energy; and William Chernicoff,
Toyota's Energy & Environmental Research Program.
EPA CHIEF QUESTIONED OVER RFS AND OZONE STANDARDS
On Wednesday, EPA Administrator Gina
McCarthy testified before the House Energy and Commerce
Subcommittees on Energy and Power and Environment and the
Economy. Although the joint hearing focused on EPA’s FY 2016
budget, as expected, lawmakers had several questions
concerning ozone standards and when EPA plans to finalize
2014, 2015 and 2016 RFS blending volumes. Unfortunately,
McCarthy would not provide a more specific RFS final rule
timeline other than mentioning around this spring. Her
statement follows an announcement made last week by a high
ranking EPA official who acknowledged the lack of compatible
retail infrastructure has impacted EPA’s ability to increase
the corn-based ethanol mandate in recent years. Chris
Grundler, director of the EPA's Office of Transportation and
Air Quality said, “We can't ignore those facts."
Also, Rep. Bob Latta (R-OH) questioned why EPA would go
ahead with new ozone standards when the country can’t even
meet the current standards. The agency just recently issued
a final rule to aid states in implementing the George W.
Bush Administration’s 2008 ozone standards at 75ppb.
McCarthy said that there is no problem with EPA reviewing a
possible lower ozone standard while the most recent
revisions are still being implemented.
EPA normally
reviews the standards for ozone every five years. EPA tried
to revise ozone standards in 2011, but the Obama
Administration withdrew them due to the threat of job loss
and higher fuel prices. The National Association of
Manufacturers also just recently released a study that said
an ozone standard at 65 ppb could cut the GDP by $140
billion per year.
OILHEAT MEMBERS CONCERNED WITH FUEL-SWITCHING PROVISION
This week, PMAA,
NEFI and a number of oilheat state associations sent a
letter to the Obama Administration highlighting our concerns
with language in the Health and Human Services (HHS)
proposed FY 2016 LIHEAP that promotes “fuel switching.” As
highlighted in the letter, PMAA will be pressing members of
Congress and the Obama Administration to work with us and
not against us.
Meanwhile, the House Appropriations
Subcommittee on Labor, Health and Human Services, Education,
and Related Agencies held a hearing on the HHS budget.
Congressman Dent (R-PA) asked a question on heating oil
dealers’ behalf to HHS Secretary Sylvia Burwell. Mr. Dent
asked: “Given the low cost of crude oil which has translated
into heating oil prices being on par with and sometimes
lower than the equivalent natural gas price, why would HHS
be using valuable LIHEAP program dollars to switch
recipient’s fuel systems at cost of $10,000 on average, when
there is no real need given the current price of fuel oil?
Current LIHEAP funds could go to help consumers make simple,
cost effective upgrades that immediately reduces emissions
and saves them on their monthly bills to help pay for the
fuel they are currently using. Do you really think it’s
appropriate for HHS to use LIHEAP rules to discriminate
against homeowners based on the fuel they use at this time?”
Mrs. Burwell responded that she was not aware of the
fuel switching issue but that HHS would look into it. PMAA
as well as Congressman Dent's office will be following up
with HHS in the near future.
SENATOR ILLUSTRATES POTENTIAL HARM IN "WATERS" RULE
Sen. Joni Ernst (R-IA) has invited EPA Administrator Gina
McCarthy to Iowa to talk about the proposed Clean Water Act
jurisdictional rule and the impacts the regulation would
have on her state. The Senator wants the EPA Administrator
to see who might be impacted by redefining the rule, in
particular the industries such as biofuel producers who
would be damaged.
Last year, PMAA joined with a
coalition representing a broad range of businesses,
industries, and commercial interests to voice strong
opposition to the revised definition of “Waters of the
United States” (WOTUS) proposed by EPA and the U.S. Army
Corps of Engineers (COE). Many petroleum marketers with bulk
storage will be adversely affected by the revised
definition. At the most fundamental level, the proposal as
written represents an unjustified expansion of Clean Water
Act jurisdiction far beyond the limits of federal regulation
explicitly established by Congress and affirmed by the
courts. The proposal would, for the first time, give federal
agencies direct authority over land use decisions that
Congress has intentionally preserved to the States. It would
intrude so far into traditional State and local land use
authority that it is difficult to imagine that Congress
intended this outcome.
PMAA supports the efforts of
Senator Ernst as well as H.R. 594, the “United States
Regulatory Overreach Protection Act" which would prevent the
EPA and Corps of Engineers from improperly expanding the
Clean Water Act (CWA) and seizing jurisdiction over water
that is currently under control of states and private
ownership.
The EPA reported that it will review the
invitation from Senator Ernst and respond appropriately.
According to the Army Corps of Engineers, nearly 60 percent
of the comments received on WOTUS oppose the regulation.
PMAA SUPPORTS BILL TO REPEAL ESTATE TAX
PMAA joined other members of the Family Business Estate Tax
Coalition (FBETC) to thank Rep. Kevin Brady (R-TX) and Rep.
Rob Bishop (D-UT) for introducing legislation to repeal the
death tax.
The “Death Tax Repeal Act of 2015” would permanently repeal
the estate tax which is important to protect America’s
family-owned businesses.
RFS REFORM BILL INTRODUCED
This week,
Senators Pat Toomey (R-PA) and Dianne Feinstein (D-CA)
introduced legislation which would eliminate the corn-based
ethanol mandate in the RFS. “Our infrastructure has a
ceiling for the amount of corn ethanol that can be used, and
we're rapidly approaching it,” Feinstein said. There is a
growing frustration among members of Congress with EPA’s
delays in issuing the 2014 and 2015 RFS blending numbers.
EPA is now a year overdue on issuing the 2014 blending
volumes, which leaves uncertainty among obligated parties to
meet the RFS requirements. EPA has said it plans to issue a
new rule in 2015 to set standards for 2014 through 2016 to
bring the annual rulemaking back into compliance with
statutory deadlines.
Earlier this month, Reps. Bob
Goodlatte (R-VA), Steve Womack (R-AR), Jim Costa (D-CA) and
Peter Welch (D-VT) introduced similar legislation. Their
bill was introduced last Congress, but it never made it out
of committee. It is unclear whether the House Energy and
Commerce and Senate Environment and Public Works Committees
plan to hold hearings and markups on RFS Reform legislation
in 2015.
DONATIONS NEEDED FOR PMAA’S WASHINGTON CONFERENCE 2015 SILENT AUCTION
It’s time to begin anticipating the excitement that you will
have at PMAA’s Small Business Committee (SBC) PAC Silent
Auction. It is also time for PMAA to begin urging you to
contribute items for the PAC Silent Auction! The Auction
will take place in conjunction with PMAA’s Washington
Conference on May 13 during the welcome reception.
Last year there was tremendous support in contributions for
the auction and PMAA SBC PAC Co-Chairs Brad Bell and Michael
Fields urge your participation this year as well! We again
thank Lea Wilson and the Washington Oil Marketers
Association (WOMA) for providing this year’s first PMAA
Small Business Committee (SBC) PAC Silent Auction items!
This is the second year in a row that WOMA has been the
first contributor to the Silent Auction!
Women, you
are going to love these auction items, and Gentlemen, you
are going to want to bid on these for the special woman in
your life! WOMA contributed a stunning Fred Meyer Jewelers
sterling silver necklace and earrings. The necklace and
earrings offer a beautiful and bold look that is sure to
stand out.
The Auction will take place in conjunction
with PMAA’s Washington Conference on May 13 during the
welcome reception. If you have items that you would like to
contribute for the Silent Auction, please contact Sabrina
Pitcher or 703-351-8000.
PRESIDENT VETOES KEYSTONE XL PIPELINE
As expected,
President Obama vetoed the Keystone XL pipeline approval
bill earlier this week.
Last month, nine Senate
Democrats joined all Republicans to approve the legislation.
Democrats in support included: Michael Bennet of Colorado,
Tom Carper of Delaware, Bob Casey of Pennsylvania, Joe
Donnelly of Indiana, Heidi Heitkamp of North Dakota, Joe
Manchin of West Virginia, Claire McCaskill of Missouri, Jon
Tester of Montana and Mark Warner of Virginia. The
GOP-controlled Congress may attempt to override the veto,
but is expected to fall short of the necessary 67 votes in
the Senate and 290 votes in the House. Senate Majority
Leader Mitch McConnell (R-KY) said his chamber would
consider overriding the veto no later than March 3.
McConnell said earlier today, “Keystone is a no brainer
which moves us toward energy independence and creates jobs.
President Obama must stop playing politics and sign the
bill.” The Senate bill’s sponsor, Sen. John Hoeven (R-ND)
said the Senate will likely try to attach the bill to future
bills that the President may not want to veto such as the
highway bill reauthorization or a spending bill later this
year.
President Obama has said he wants to wait until
the State Department review is completed before deciding on
whether to approve construction of the pipeline. The State
Department should give its recommendation anytime now.
PMAA fully supports the immediate approval of the
Keystone XL pipeline.
PREPARE YOUR BUSINESS FOR THE EMV TRANSITION WEBINAR ON MARCH 3
11:00am-12:00PM ET
EMV chip technology is becoming the global
standard for credit card and debit card payments. In fact,
adoption and installation of EMV technology in credit cards
and terminals is escalating, driven in large part by the
liability shift, happening this fall. This means that
beginning October 1, 2015¹, if an EMV chip card is presented
for payment and fraud occurs, much of the liability shifts
to the merchant if his/her business is not using an
EMV-enabled terminal to accept payments.
Is
your business prepared?
Listen as industry
experts from Citizens Commercial & Retail Fuel, Worldpay and
Visa discuss issues surrounding the EMV transition,
including:
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Enhanced card and terminal technology
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Key transition and liability transfer
milestones
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Counterfeit fraud liability scenarios
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Benefits and impact to your business
Please
click here to register.
Should
you have any additional questions on these webinars or any
other petroleum solutions, please contact PMAA’s
Worldpay
Executive Client Manager,
Glenda Preen at 972.325.1801.
PMAA MEMBER SERVICES SPOTLIGHT FEATURING: CORD FINANCIAL SERVICES
Making
Sense of EMV
 What is EMV?
EMV stands for Europay MasterCard & Visa. It is a global
standard for credit and debit transactions using smart cards
embedded with microprocessor chips. This technology ensures
more security compared with cards that have magnetic stripes
because it requires multiple levels of validation.
What should I do? As an ATM owner, there
are two options available: upgrading existing units or
purchasing new machines already outfitted with EMV
capabilities. The time to start planning for EMV migration
is now! Waiting until the last minute to upgrade the
hardware and software for your ATM portfolio could
potentially be a VERY costly mistake. Shortages of EMV card
readers and resources for EMV testing and certification are
to be expected as the deadline approaches.
Important
Deadlines
To learn more about getting
your ATM ready for EMV, please
visit,
email or call
800.410.5217, Option 4.
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