PMAA Weekly Review

Today, PMAA responded to the Renewable Fuels Association’s (RFA) claims that PMAA provided misleading statements in written comments to the House Energy and Commerce (E&C) Committee regarding the economic competitiveness of ethanol, E10 plus blend compatibility with existing underground storage tank (UST) system equipment at retail gasoline stations, the cost of installing infrastructure to distribute E10 plus blends and the retail sectors’ acceptance of E85 blends. In March, PMAA submitted comments to the Committee in response to a hearing held entitled “21st Century Energy Markets: How the Changing Dynamics of World Energy Markets Impact our Economy and Energy Security.” The Committee sought feedback on the rapidly changing energy market. PMAA focused a segment of its letter on ethanol’s competiveness with traditional motor fuels and highlighted its concerns with UST system compatibility. RFA responded to PMAA’s letter, but unfortunately, RFA missed the point.

RFA essentially claimed that higher ethanol blends are compatible with current UST systems and are competitive with gasoline. RFA is far from the truth. PMAA’s response letter to the Committee rejects RFA’s assertions that current UST systems are compatible with higher blends of ethanol. PMAA told the Committee the issue of UST system compatibility is first and foremost a legal question that the RFA completely ignores. Simply stating that UST system equipment is compatible without any legal means to prove it, as RFA does in its rebuttal letter, has no basis in law and is intended solely to distort the E15 issue. PMAA pointed out that actual compatibility does not rise to the level of legal compatibility under the regulations and standards that tank owners must follow to remain in compliance. Compatibility is a legal standard that RFA attempts to paper over with incomplete data, false accusations and wishful thinking. PMAA also continues to maintain that E85 fueling pumps are unlikely to achieve meaningful growth without billions of dollars in government subsidies for installation of legally compatible underground storage tank systems and dispensers capable of handling higher content ethanol blends. Politically, such subsidies are unrealistic.

Furthermore, PMAA reiterated that it stands by its comment that low oil prices impact the competitiveness of ethanol blended fuel. Data from the Energy Information Administration (EIA) and DOE clearly supports PMAA’s statement that ethanol must be priced approximately 30 percent lower than gasoline for motorists to achieve similar energy content. As gasoline prices plummeted, so did retailer acceptance of higher ethanol blends.

PMAA continues to support the retail sale of ethanol blends but only so long as it is safe and legal to do so.

To view the letter, click here.

PMAA TELLS CONGRESS NOT TO RAID LUST FUND

Of the multitude of proposals for funding the Highway Trust Fund (HTF) for the remainder of the year, repatriation has been ruled out by House Ways and Means Committee Chairman Paul Ryan (R-WI). Otherwise the Chairman did not report on how to fund the highway program that expires on May 31, but he expects to have a plan in the next three weeks.

PMAA continues to oppose any further transfer of the remaining $485 million in the LUST Fund in any HTF proposal, and sent the Tax Committee Cardinals a letter stating our fund transfer opposition this week. Petroleum marketers have supported the LUST Fund and have paid $3.8 billion in LUST taxes since its inception. Unfortunately, Congress has transferred $3.4 billion from the LUST Fund to help pay for the HTF extension in the last two reauthorizations. PMAA opposed the transfers because states might increase underground storage tank fees to account for the LUST Fund shortfall. Congress could have lessened the blow by including language which would have required that future revenue collected for the LUST Fund is used for its intended purpose. If the fund isn’t being used for its intended purpose, the fee should be eliminated.

HOUSE COMMITTEES ADDRESS HOURS-OF-SERVICE, INSURANCE MINIMUMS AND INCREASED TRUCK WEIGHT LIMITS

On Wednesday, the House Appropriations Subcommittee on Transportation, Housing and Urban Development approved funding levels for the Department of Transportation (DOT). Included is language which prohibits DOT from using funds to issue and implement new Motor Carrier Financial responsibility requirements. PMAA supports the language. Last year, the Federal Motor Carrier Safety Administration (FMCSA) published an Advanced Notice of Proposed Rulemaking (ANPRM) that PMAA believes is the basis for a planned increase in financial responsibility (FR) requirements (insurance) for commercial motor vehicles. FMCSA has publicly entertained the idea of increasing requirements to as much as $4.5 million per truck for general freight, and a hike to as high as $10 million for petroleum marketers from the current $750,000 in liability insurance for general freight, $1 million for home heating oil and $5 million for gasoline and other hazardous materials. Under this scenario, premiums would be increased approximately 500 percent.

PMAA has been educating Congress on why there is no need to increase insurance minimums on petroleum marketers. Current FR requirements have been more than sufficient in ensuring over 99 percent of claims filed in motor vehicle crashes are fully covered since they were implemented subsequent to the passage of the Motor Carrier Act of 1980. In the rare instance that coverage is inadequate, claimants can pursue compensation in court for damages not covered by the carrier’s insurance (assuming the motor carrier is at fault). FMCSA’s ANPRM also ignores current market forces in the insurance industry that increase financial responsibility minimums when necessary to provide full coverage for damages based on risk. Ultimately, companies that cannot afford the increase would go out of business, resulting in less competition and increased prices. Furthermore, some insurance companies may not even be able to underwrite this level of exposure.

Additionally, the Subcommittee included language that would keep the current suspension of the 34-hour restart provisions of the Hours of Service (HOS) rule in effect until FMCSA completes its required study of that rule change. Specifically, the language would only revoke the rule's suspension if FMCSA’s impact report shows that “drivers who operated under the restart provisions demonstrated statistically significant improvement in all outcomes related to safety, operator fatigue, driver health and longevity, and work schedules, in comparison to commercial motor vehicle drivers who operated under the restart provisions in effect on June 30, 2013."

Meanwhile, the House Subcommittee on Highways and Transit vetted an issue that is not likely to be voted on until next year when the surface transportation program is considered regarding whether to allow heavier trucks on the nation’s interstate highways. In February, Reps. Reid Ribble (R-WI) and Michael Michaud (D-ME) introduced a bill to let states decide whether to allow 97,000-pound trucks on their highways and add an extra axle to increase braking capacity. The bill also lets DOT enforce the current limit of 80,000 pounds on parts of the interstate if the transportation secretary decides that “such operation poses an unreasonable safety risk.” A new fee would be applied to the higher weight trucks that would help fund bridge repairs and maintenance.

APRIL 2015 PMAA SMALL BUSINESS COMMITTEE (SBC) PAC CONTRIBUTIONS

PAC Co-Chairs Brad Bell and Michael Fields are grateful for the PMAA Small Business Committee (SBC) PAC contributions from the following individuals during the April 1 – 30 timeframe:

California: Trudy Emeterio
Connecticut: Peter Aziz, Peter Caruso, Stephen Sack Jr.
Idaho: Brett Adams, Dennis Baird, Ron Berry, Eric Busch, Dennis Campo, Holly Claiborn, Bob Coleman, Rob Franklin, Bonnie Grande, Mark Grannis, Jim Grant, Charlie Jones, Jim Lynch, Ken Poole, Ralph Poole, Tony Stone
Kansas: Alison Bridges, Kevin Brown, Nick Castagno, Danny Fast, Michael Felts, Michael Groves, Warren Kippes, Patrick Lingg, Wanda Litwiller, David Lybarger, Michael Murphy, Gratz Peters, Barry Powell, Richard Ring, W. P. Robson, Charles Robinson, Scott Strohl, Harold Taylor, Bradley Thompson, Norman Volz, Curtis Wright
Kentucky: Gary Emmick, John Emmick, Tony White
Louisiana: David Adcox, Russ Adcox, Brian Coomes, Annie Gauthier, Scott Gordon, Kent Roussel, Todd St. Romain
Maine: Michael Estes
Minnesota: Brent Staples
Mississippi: David Craddock, Michael Dees, John Fair Jr., Thomas Gresham, W. W. Gresham III, Taft Little, Joe Morris Jr., Charles Morris, Charles Sansing, Dan Smith, Sam Sumrall, William Sumrall, W. Clifton Van Cleave
Nebraska: Mark Whitehead
IOMA: Raymond Leather
New Mexico: Benny Hodges
South Carolina: Jeremy Balliew, Karol Kunkle, Justin Nash, Larry Sharpe II, Jason Terry
Utah: Bruce Billings
Wisconsin: Ann-Marie Cudzilo
Wyoming: Shelly Ellenbecker

ANNOUNCING OUR CURRENT WASHINGTON CONFERENCE PARTNER SPONSORS!

PMAA wants to give a huge THANK YOU to our Washington Conference 2015 Partner Sponsors who have committed to $29,400: Federated Insurance for the Welcome Reception on Wednesday; RJ Reynolds Tobacco Company, Phillips 66, Worldpay, CORD Financial Services and Patriot Capital Corporation for Thursday’s Legislative Breakfast; Meridian Associates, Inc. for the Legislative Issue Briefs Flash Drives; and National Biodiesel Board for the Board of Directors Breakfast on Friday. Additionally, Chevron and Louisiana Oil Marketers and Convenience Store Association have contributed to the Thursday reception honoring PMAA Chairman Grady Gaubert.

We appreciate the loyalty and support of our PMAA Platinum and National Partners and their continuous commitment to the petroleum industry. For more information on our Partner Programs, please contact Susan Isard.

APRIL 2015 PMAA MDF CONTRIBUTORS

PMAA’s Marketer Defense Fund wants to thank the following individuals for their contributions during the April 1- 30 timeframe:

Arizona: Arizona Petroleum Marketers Association
Colorado: Colorado Petroleum Marketers and Convenience Store Association
Connecticut: Rick Bologna
Indiana: William Herdrich, Indiana Petroleum Marketers and Convenience Store Association
Kansas: Norman Volz
Louisiana: Luther Lott Jr.
Maryland: Adna Fulton, Richard Phelps III
Massachusetts: New England Fuel Institute
Michigan: Robert Hohn, Craig Hoppen
Minnesota: Vern Kelley
Missouri: Missouri Petroleum Marketers and Convenience Store Association
New Mexico: Benny Hodges, New Mexico Petroleum Marketers Association
North Dakota: North Dakota Petroleum Marketers Association
Ohio: Jed Wise
Oklahoma: Oklahoma Petroleum Marketers and Convenience Store Association
Oregon: Oregon Fuels Association
Tennessee: Bill Cox, Tennessee Fuel and Convenience Store Association
Washington: Washington Oil Marketers Association
Wisconsin: Wisconsin Petroleum Marketers and Convenience Store Association

Corporate donations are acceptable. The monies raised for MDF are used for special projects, personnel and materials dedicated to strengthening our lobbying efforts on Capitol Hill.

PMAA APPLAUDS REINTRODUCTION OF “COMMON SENSE NUTRITION DISCLOSURE ACT”

PMAA would like to thank Reps. Cathy McMorris Rodgers (R-WA) and Loretta Sanchez (D-CA) for reintroducing the “Common Sense Nutrition Disclosure Act,” (H.R. 2017). The Act would limit Menu Labeling language in the Affordable Care Act (ACA) to establishments that derive 50 percent or more of their revenue from food for immediate consumption and/or prepared and processed on-site. Last year, FDA finalized regulations required by Section 4205 (Menu Labeling) of the 2010 healthcare law. Unfortunately, under the final rule, convenience store owners with 20 or more locations doing business under the same name and offering for sale substantially the same menu items, are required to list content information for standard menu items, such as posting calorie information on menus and menu-boards. The Menu Labeling final rule also requires covered establishments to provide, upon consumer request and as noted on menus and menu boards, written nutrition information about total calories, total fat, calories from fat, saturated fat, trans fat, cholesterol, sodium, total carbohydrates, fiber, sugars and protein. Retailers have until December 1, 2015 to comply.

In addition to limiting the Menu Labeling regulation to establishments that derive 50 percent or more of their revenue from food for immediate consumption and/or prepared and processed on-site, H.R. 2017 would also permit retailers to identify a single primary menu while not having to include nutrition labeling in other areas of the store. Under the existing regulations, every area where food is on display must each include calorie information for every item sold there. Furthermore, the bill would clarify that advertisements and posters do not need to be labeled and would provide flexibility in disclosing the caloric content for variable menu items that come in different flavors or varieties, and for combination meals. H.R. 2017 would also ensure that retailers acting in good faith are not penalized for inadvertent errors in complying with the rule and stipulate that individual store locations are not required to have an employee “certify” that the establishment has taken reasonable steps to comply with the requirements. Stores would have 90 days to correct any alleged violation without facing enforcement action. Finally, the bill would also delay regulatory implementation for two years.

PMAA encourages Senators Roy Blunt (R-MO) and Angus King (I-ME) to reintroduce their similar bill, also the “Commonsense Nutrition Disclosure Act,” that would bring a common sense solution to a regulation which unfairly burdens small business convenience store owners.

OLD KENTUCKY GIFT BASKETS AND MIZUNO EIGHT50 CART GOLF BAG FOR MAY 13 SILENT AUCTION

PMAA SBC PAC Co-Chairs Brad Bell and Michael Fields thank Brian Clark and the Kentucky Petroleum Marketers Association and Bill Fleischli and the Illinois Petroleum Association & Illinois Association of Convenience Stores for providing contributions for the PMAA Small Business Committee (SBC) PAC Silent Auction!

Brian and the Kentucky Association have donated Old Kentucky Chocolate gift baskets! The baskets are compiled of items from the Old Kentucky Chocolates which has been in business for 50 years. Included in the first gift basket are Old Kentucky Black Forest Bourbon Truffles made with the richest blend of dark chocolate, sweet cherries aged in Jim Beam Bourbon for more than 6 months and covered in more dark chocolate, a Pecan Roll, Seedless Red Raspberry Jam, Bourbon Flavored Gourmet Sauce and assorted Chocolates.

In the second gift basket you will enjoy a box of Old Kentucky Assorted Chocolates, Kentucky Bourbon Chocolate Sauce, Keeneland Coffee, Old Kentucky Derby Mints with a blend of chocolate and just a hint of mint, a Pecan Roll and Jim Beam Steak Sauce.

Bill and the Illinois Association contributed a Mizuno Eight50 golf bag - one of the lightest cart bags on the market. The supersized four-way divider keeps all your clubs organized and the Chiller Pouch is insulated to keep drinks cold. The Mizuno golf bag is a must have for the golfer in the family.

The Auction will take place in conjunction with PMAA’s Washington Conference on May 13 during the welcome reception.

PMAA PARTNER SPOTLIGHT FEATURING: INTEGRATED FINANCIAL
Net Unrealized Appreciation (NUA) Strategy

If you retire or change jobs, you can often roll over your qualified plan monies into another qualified plan or IRA. However, if a portion of your plan assets are held in highly appreciated employer company stock, it may be advantageous to use the NUA strategy. "Net unrealized appreciation" is the excess of the fair market value of employer securities at the time of a lump sum distribution over the cost basis of the securities to a qualified plan trust. For NUA purposes, "employer securities" may include shares of a parent or subsidiary corporation.

Please read the article in its entirety here. For more information about Integrated Financial, a PMAA National Partner, please visit.

INFORMATION FROM Worldpay
Change in transmittal of PAN data

As part of our commitment to providing our customers with secure, reliable payment processing, we are implementing enhanced security features that align with industry standards to help protect your business and customers’ data.

In support of these efforts, effective Monday, April 27th, Worldpay customers will no longer have the ability to send PAN data to Worldpay via fax or email. If PAN data is sent to us via fax or email, our systems will flag the transmission and quarantine the information so that it will be deemed undeliverable.

In addition, full Primary Account Number (PAN) information within Worldpay Merchant Portal reports will be replaced with redacted PAN, which will be displayed as the first 6 and last 4 digits of the card number with the middle numbers redacted.

If your business processes require you to submit PAN data, please contact your Account Manager or our National Accounts Customer Service team (NACS) at 877-282-7362 option 2 or PMAA’s Worldpay Executive Client Manager, Glenda Preen at 972.325.1801.

We appreciate your business and patience as we work to strengthen the security of your payment data.

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: LABORCHEX
Will Your Job Application Get You in Legal Trouble???

It should NEVER ask for the applicant’s date of birth. You can inquire about that at another point in the application/interview process, usually when the applicant is signing a release to authorize a background check and/or when completing the E-Verify and/or I-9 process.
The RELEASE/AUTHORIZATION for a background check must be a separate document. It cannot be a couple of sentences at the bottom of the page under previous employment information. Federal law requires that the release/authorization is a ‘stand-alone’ document.
You CANNOT have the question: “Are you a U.S. citizen?” Instead, you can ask “Are you eligible to work in the U.S.?”
You SHOULD NOT ask an applicant about outside activities, such as hobbies or club affiliations. It is okay to ask about professional associations that pertain to the job.
DO NOT ask for the high school date of graduation. This could help you determine a person’s age, and you cannot ask for someone’s age or try to discover it in another way. The Date of Birth can be learned in the future (see 1. above).
NEVER have any health related questions, such as “Did you ever miss work due to an injury?” Such inquiries can take place at another point in the application process, if permitted by law in your state.
DON’T ASK what languages the applicant speaks, unless the job requires that a language other than English be spoken. Learning about other languages, in general, could indicate ethnic origin, race, or religion, and these are factors you cannot consider in the application process.

Please read Steven’s Guest Column Feature Article entitled “Some Job Applicants Don’t Want a Paycheck” on Page 25 of the Spring Issue of your forthcoming PMAA Journal which expands on this topic.

This is not to be considered legal advice. Please discuss these items and other employment related issues with your legal counsel.

LaborChex provides employment background screening services to PMAA members nationwide at discounted pricing. For more information, review PMAA’s current program ) or email Steven J. Austin or by phone at 601.624.4321.

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