A Minnesota Lawsuit Every Fuel Distributor Should Watch

A quiet case working its way through a Minnesota district court may carry more long-term significance for the fuel distribution industry than almost any regulatory development in recent memory from EPA’s Office of Underground Storage Tanks. The Minnesota Pollution Control Agency (MPCA) has sued a conventional fuel wholesaler, asserting that it qualifies as an "operator" of an underground storage tank (UST) system it never owned, managed, or controlled. The Energy Marketers of America (EMA) is supporting the defense of this case with funds from its Marketer Defense Fund, reflecting how seriously the industry views the potential consequences.

The facts of the case are straightforward. The company supplied fuel to a third-party-owned retail gas station, arranged deliveries through an independent common carrier, and received an automated data feed from the station's tank gauge — used solely to determine delivery timing. When a petroleum release occurred at the site, the MPCA bypassed Minnesota's petroleum cleanup fund and instead pursued the distributor as the liable party, arguing that access to tank gauge inventory data made the company an "operator" for purposes of cleanup liability.

That argument inverts nearly four decades of established regulatory interpretation. Since EPA first promulgated UST rules in 1988, an "operator" has been consistently defined as any person in control of, or having responsibility for, the daily operation of the UST system. Minnesota, like most states with EPA-approved programs, adopted this definition verbatim. In nearly 40 years of enforcement, no environmental agency has successfully applied that definition to a product supplier whose only connection to the tank was a data feed used for logistics planning — until now.

The implications of an MPCA victory would ripple across every state in the country. Distributors could find themselves legally responsible for tank and line leak detection, UST maintenance and repair, operator training and recordkeeping requirements, and — most consequentially — cleanup costs and third-party liability at every customer site they supply. That financial exposure would be compounding: standard pollution and storage tank liability insurance typically excludes non-owned sites, meaning distributors could face pressure to separately insure each customer's individual tanks. For the typical jobber supplying dozens or hundreds of retail locations, that burden would be commercially untenable.

The case also raises a practical impossibility: a wholesaler that does not own, manage, or have legal authority over a site simply cannot perform the compliance functions the law assigns to operators. Imposing that obligation anyway does not make stations safer — it just reallocates liability onto parties with no ability to act on it.

This case deserves close attention well beyond Minnesota's borders. A legal outcome that effectively makes wholesalers co-insurers of every retail site they supply would crush smaller operators who lack the capital to insure and assume compliance responsibility across dozens or hundreds of customer locations. Given the broad implications of the case, EMA is supporting the fuel company with funds from its Marketer Defense Fund to ensure this regulatory overreach does not propagate across the nation.

BUILD America 250 Act (H.R. 8870) Update

Senate Environment and Public Works (EPW) Committee Chair Shelley Moore Capito (R-WV) has indicated that an extension of the current surface transportation authorization bill, which expires September 30, remains a realistic possibility. While she prefers completing a full reauthorization by the deadline, Capito and the committee’s ranking Democrat, Sen. Sheldon Whitehouse (D-RI) have not yet reached agreement or released official bill text.

Other Senate leaders, including Commerce Committee Chair Ted Cruz (R-TX), are waiting for the EPW Committee to complete its markup before advancing their portions of the legislation, which may include language on autonomous vehicles. Despite ongoing work in both chambers, those close to the process have widely expected for months that an extension will ultimately be needed to avoid a lapse in funding.

The BUILD America 250 Act includes several provisions aimed at improving Highway Trust Fund solvency and modernizing transportation policy. Section 1129 establishes new annual state registration fees of $130 for electric vehicles and $35 for plug-in hybrids, with mandatory collection mechanisms and a 125% withholding penalty for non-compliance. Beginning in 2029, both fees would increase by $5 every two years, subject to caps of $150 for EVs and $50 for PHEVs. Section 6004 directs continued analysis of a potential national vehicle miles traveled (VMT) fee as a replacement or supplement to the federal gas tax, including studies on impacts to rural versus urban drivers and the feasibility of interstate interoperability for road usage charge systems.

Several sections focus on hazardous materials safety and regulatory efficiency. Section 10607 requires PHMSA to conduct rulemaking for enhanced safety placards capable of withstanding high temperatures from uncontrolled fires, applying to rail and other surface freight modes in response to incidents like East Palestine. Industry groups, including EMA, are engaging PHMSA and plan to coordinate with the Association of American Railroads to ensure the changes do not extend to fuel transportation. Section 10608 mandates a PHMSA study, due one year after enactment, on the feasibility of material-specific hazardous materials endorsements for commercial driver’s licenses, with public comment and a report to congressional committees which EMA sought to include. Section 10604 streamlines the special permit process by extending initial permits from two to four years and reducing the timeline for incorporating proven permits into permanent hazmat regulations from ten to eight years.

The bill also repeals two programs from the 2021 Bipartisan Infrastructure Law that supported emissions reduction and electrification. Section 1118 eliminates incentives for medium- and heavy-duty electric trucks and other electrification measures at port facilities. Section 1125 fully repeals the Carbon Reduction Program, which had directed federal highway funding toward projects aimed at lowering transportation-related greenhouse gas emissions. These changes reflect a shift away from certain climate-focused transportation initiatives in favor of other priorities.

EMA Supports Recent California Air Pollution Rule Waivers

EMA fully supports repealing the four California air pollution rule waivers recently submitted to Congress by the EPA under Administrator Lee Zeldin. These submissions trigger a process under the Congressional Review Act (CRA) that could allow Republicans in Congress to nullify portions of California’s rules.

This action is part of a broader effort to eliminate both federal and state-level tailpipe greenhouse gas standards, freeing automakers from climate requirements in California and the at least 12 other states that follow its regulations. Republican leadership and the auto industry have pushed for these steps to prevent what they describe as a “backdoor” national electric vehicle mandate.

The new batch of waivers includes older greenhouse gas rules for light-duty vehicles dating back to 2009, the 2013 Advanced Clean Cars (ACC) rule, and the Biden administration’s reinstatement of the ACC rule after a previous revocation. The EPA also submitted a waiver for small off-highway engines (such as those in lawn mowers, chainsaws, and leaf blowers) that requires a transition to zero-emission technology. Industry groups are challenging this rule in court, arguing that a lack of viable alternatives could hinder disaster relief efforts.

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.

An invitation was sent to your inbox on June 17. Responding to the links on the invitation email is the recommended way to register.

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

Special EMA Members Code for NACS Show 2026 Registration

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.

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Federated Insurance: Risk Management Corner
Mental Health Matters For Your Employees

As a business owner and leader, taking the mental health of your employees seriously and understanding how it can impact their work is essential. In fact, one in five adults experience a mental health condition annually¹. It isn’t just an accommodation — it’s a necessary part of supporting their overall well-being.

Recognize the Signs

Being able to recognize the signs of mental health issues is important. Mood and behavior changes, decreased productivity, increased absences, lack of interest in tasks, exhaustion, and increased use of substances can be indicators that your employees may be struggling². Having a pulse on your workplace culture and your employee’s mental well-being can help ensure that they are well enough to excel at their jobs.

Supporting Your Employees’ Mental Health

Developing a positive work culture, providing training and education, and offering resources and support can make a big difference for your employees. It can also lead to improved work performance and safer, more productive workplaces. Consider these strategies to start managing mental health at your business³:

• Train managers and supervisors to recognize the signs and symptoms of stress and poor mental health in employees.

• Hold training seminars and provide materials to address stress management techniques.

• Model healthy behaviors, encourage work-life balance, and offer situational flexibility.

• Foster open communication to encourage safe, healthy discussions.

• Offer health insurance and access to Employee Assistance Programs (EAPs).

• Give employees the opportunity to connect with mental health resources, programs, and self-assessment tools.

Reach out to your Federated Insurance^® marketing representative for information on partner risk management resources on this important topic 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®

EMA Member Services Spotlight Featuring: National Purchasing Partners (NPP)
Members Save on Sherwin-Williams

NPP members receive national account contract pricing on paints, coatings, and supplies. You can also receive free services like order planning and specification recommendations. Click here to enroll with NPP and start saving.

Join NPP for free, then register for the Sherwin-Williams discount. You’ll find a diverse catalog of business offers as well as lifestyle deals you can share with your employees.

Membership is free and there is no obligation to purchase. NPP is a member benefit provider of EMA. Restrictions may apply.