OPMCA Connection - Keeping You Informed!
OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA STAFF
Candace McGinnis
Executive Director 
Candace@opmca4you.com 


Hannah Fite
Director of Member Services  
Hannah@opmca4you.com 


OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2017-2018 Board of Directors

Brian Lohman, Chairman 
 ASAP Energy Inc.

Mark Cross 
Cross Oil Company

Jerry Davidson
Pete’s Corporation

Jason Flinn 
Flowers Oil Company

Mike Gramm  
Speedy's, LLC 

Kurtis Hutchinson
Hutchinson Oil Company

John Netherton
Danielson Fuel Services

Tommy Shreffler
OnCue Marketing, LLC 

Rob Toth
Coffeyville Resources
Only Two and a Half Months Away!
The 2018 OPMCA Convention will be held on May 1st, with the Oklahoma Super Trade Show the following day on May 2nd. We have worked hard to make this year's convention activities new and exciting! Don't miss out on the fun and register before it is too late! Online registration is now open.
OPMCA Introduces New Member:
Fuel Masters LLC
Roger Jackson
133 Caddo DR, Abilene, TX 79602-8036
Phone: 325-676-3835
Fax: 325-676-3841
roger.jackson@fuelmasters.com
Thursday, Feb. 15, 2018
  • EPCRA Tier 2 Reports due by March 1, 2018
  • Congress Passes Government Spending Bill
  • House Passes Menu Labeling Legislation Again
  • EPA Administrator Testifies
  • Federated Insurance - Webinar
EPCRA TIER 2 REPORTS DUE BY MARCH 1, 2018
BACKGROUND:
EPA EPCRA Tier 2 reports must be filed for bulk plants, marinas, fleet fueling facilities and some retail gasoline facilities storing more than 10,000 pounds (minimum 1,626 gallons) of hazardous chemicals (petroleum fuels) at any time during the 2017 calendar year. EPCRA 2017 reports must be filed with state emergency response authorities no later than March 1, 2018. Retail gasoline facilities with a storage capacity greater than 75,000 gallons of gasoline and/or 100,000 gallons or more of diesel fuel must also file EPCRA reports. Federal regulations exempt retail fueling facilities at or below these product capacity thresholds from the annual Tier 2 inventory reporting. Some states have set lower reporting thresholds, use unique Tier 2 reporting forms or require electronic filing. Petroleum marketers should contact their state EPCRA see link below to verify any state Tier 2 reporting variances. 

NEW EPCRA TIER 2 FORM INFORMATION REQUIRED:

Major changes have been made to the EPCRA Tier 2 form this year. The new EPCRA forms now require information on the “physical hazards” and “health hazards” of each product (gasoline, diesel fuel etc.) stored on site that meets the minimum reporting threshold trigger (10,000 lbs). Physical hazards and health hazards information must be obtained from the SDS product information sheet provided by your supplier. Use only product information sheets labelled “Safety Data Sheet” at the top for this information. Do not use product information sheets labelled “Material Safety Data Sheet” at the top. Suppliers are required to provide a copy of the most recent SDS for each product sold to downstream petroleum marketers. Suppliers often post SDS sheets on their websites.
 
The physical hazards and health hazards categories appear as two separate columns on the new EPCRA Tier 2 Form. Under each column, a series of hazards are listed next to check off boxes. Petroleum products including gasoline, diesel fuel, heating oil, kerosene, etc. generally share common physical hazards and health hazards. Check off the following boxes under each column on the lower half of the form used for reporting “Mixture or Product Name” (check corresponding product SDS for any variation):

Physical Hazards - Under the “physical hazard” column on Tier 2 form check off the boxes marked:
  • “explosive” and
  • “flammable” 

Health Hazards - On the EPCRA Tier 2 form, under the “health hazard” column, check off the boxes marked:
  • “skin corrosion or irritation”
  • “serious eye damage or irritation”
  • “respiratory or skin sensitization”
  • “carcinogenicity”
  • “reproduction toxicity” and
  • “aspiration hazard”

EPCRA PAPER FORMS AND ELECTRONIC SUBMISSION SOFTWARE:
  • EPCRA Tier 2 forms for paper filing may be downloaded here: EPCRA Forms.  
  • Most states require EPCRA reports be filed electronically and have adopted the EPA’s Tier2 Submit electronic filing portal. Tier2 Submit electronic filing for Windows and Macintosh applications may be downloaded here: EPCRA Electronic Filing.  
  • An electronic filing tutorial may be downloaded here: Electronic Filing Tutorial.
  • A complete list of state EPCRA Tier 2 requirements and procedures can be downloaded here: State EPCRA Requirements.

EPCRA CAS NUMBERS:

The following CAS designations (from safety data sheets) must also be included on EPCRA Tier 2 reports;
  • Gasoline (CAS 8006-61-9) 
  • Diesel Fuel (CAS 68334-30-5) 
  • Kerosene (CAS 8008-20-6) 
  • Fuel Oil (CAS 68334-30-5) 
  • Aviation Gasoline (CAS Mixture) 
  • Jet A (CAS Mixture) 
  • JP 8 (CAS Mixture) 

EPCRA NAICS CODE:

Standard Industrial Classification (SIC) codes can no longer be used to describe facilities on EPCRA Tier 2 reports. Instead, North American Industrial Classification System (NAICS) codes must be used. Applicable NAICS codes for the petroleum marketing industry include: 
  • Petroleum Bulk plants - NAICS 424710 
  • Heating Oil Dealers - NAICS 454310 
  • Retail Gasoline Stations with Convenience Stores - NAICS 447110 
  • Retail Gasoline Stations without Convenience Stores - NAICS 447190 
  • Cardlock Sites – NAICS 447190

DUN AND BRADSTREET NUMBER: 

To find your Dun and Bradstreet number go to: My Dun and Bradstreet Number.

PENALTY FOR FAILURE TO FILE EPCRA TIER 2:

The EPA fine for violating EPCRA Tier 2 reporting is $10,000 to $75,000 per day, per violation. EPA checks for filing of EPCA Tier 2 reports during routine compliance audits or after a release.

OTHER RECENT ADDITIONS TO TIER 2 FORM:

EPCRA Tier 2 forms now ask whether the facility is subject to emergency planning under Section 302 of EPCRA (Toxic Release Inventory or TRI) or the chemical accident prevention requirements under 112r of the Clean Air Act (Risk Management Program or RMP). For small bulk plant operators the answer to these questions is almost always “NO”. Typically, small petroleum bulk plants operated by petroleum marketers located downstream of the terminal rack are NOT subject to TRI or RMP. While these small bulk plants must comply with Spill Prevention Control and Countermeasure (SPCC) this is not the same as TRI or RMP. 

CONGRESS PASSES GOVERNEMNT SPENDING BILL
Includes Tax Extenders Package
On Feb. 9, Congress passed a 2-year, bipartisan budget deal to reopen the government which had partially shut down for a few hours overnight. President Trump quickly signed the bill into law. 

The budget bill includes a temporary funding measure, known as a Continuing Resolution (CR), which funds the government until March 23, possibly giving Congress enough time to reach an agreement on a long-term funding deal. The bill also lifts the federal debt limit until March 2019. Furthermore, it raises spending caps on domestic and military spending in fiscal years 2018 and 2019 by $300 billion and will provide $90 billion in disaster relief funding in response to last year’s hurricanes and wildfires. 

Also included in the bill is a tax extenders package. One tax provision important to petroleum marketers is a prospective renewal of the Oil Spill Liability Tax (OSLT) effective on March 1, 2018 through Dec. 31, 2018.  The 9 cents per barrel OSLT tax is imposed on crude oil at the refinery gate. Proceeds from the OSLT go into a trust fund used by the Coast Guard to pay for clean-up after accidents like oil spills. PMAA has been fighting against the tax being applied retroactively so this is welcome news to petroleum marketers. This is also good news because suppliers who continued to charge the tax even when it expired have indicated they will reimburse jobbers if the tax isn’t applied retroactively. Click here to view a PMAA issue brief on the OSLT issue.

A second tax provision important to petroleum marketers includes a renewal of the $1 per gallon biodiesel blenders tax credit for tax year 2017 only. PMAA will have information on reimbursement specifics at a later date. Other credits of importance that were extended retroactively for 2017 are the tax credit for the installation of qualified alternative fuel vehicle refueling property in a home or business; the Alternative Fuels Excise Tax Credit for the use of propane as a transportation fuel, known as the “propane autogas tax credit,”; and the Section 25C tax credit for the installation of qualified high-efficiency residential HVAC systems and certain energy-saving home retrofits. 

The bill’s passage is a good sign for programs like the Low-Income Home Energy Assistance Program (LIHEAP) that PMAA has advocated for because there will likely not be as many cuts to domestic programs like LIHEAP. LIHEAP is important because it is vital in serving low income consumers of home heating fuel. Congress reinstated LIHEAP and Weatherization Assistance Program (WAP) funding in the FY 2018 budget and PMAA has been pushing for these programs
to be funded in the FY 2019 budget as well. The Trump Administration’s budget request for FY 2019 was expected to be released on Monday, in which LIHEAP could be proposed for elimination as it was in 2018.

Part of the budget deal requires the Department of Energy (DOE) to sell 100 million barrels of oil from the Strategic Petroleum Reserve. Specifically, 30 million barrels are to be sold between fiscal 2022 and 2025, 35 million barrels in 2026, and another 35 million in 2027. Furthermore, DOE is required to sale $350 million worth of crude oil in fiscal 2018 to pay for modernizing the reserve fund.

HOUSE PASSES MENU LABELING LEGISLATION AGAIN
Last Tuesday, the House passed via a 266-157 bipartisan vote, the “Common Sense Nutrition Disclosure Act.” The legislation, introduced by Rep. Cathy McMorris Rogers (R-WA) and Congressman Tony Cardenas (D-CA) also passed the House in 2016. Click here to see how your lawmakers voted.

This legislation, H.R. 772, modifies the Menu Labeling language in Obamacare to allow retailers to identify a single primary menu while not having to include nutrition labeling in other areas of the store. Furthermore, the bill clarifies that advertisements and posters do not need to be labeled and provides flexibility in disclosing the caloric content for variable menu items that come in different flavors or varieties, and for combination meals. Lastly, the bill ensures that retailers acting in good faith are not penalized for inadvertent errors in complying with the rule and stipulates that individual store locations are not required to have an employee “certify” that the establishment has taken reasonable steps to comply with the requirements.

This legislation is important because it gives retailers the flexibility needed to comply with the menu labeling regulations which will be enforced by the FDA beginning May 7, 2018. Advocacy efforts will now shift to the Senate to encourage passage of companion legislation (S. 261) introduced by Senators Roy Blunt (R-MO) and Angus King (I-ME).

A strong thanks to all PMAA members who notified your representatives and urged their support for the “Common Sense Nutrition Disclosure Act.”

EPA ADMINISTRATOR TESTIFIES
EPA Administrator Testifies before Senate Environment Committee
Earlier this month, EPA Administrator Scott Pruitt testified before the Senate Environment and Public Works Committee. As expected the RFS became the focal point of the hearing as Administrator Pruitt fielded questions from both parties. Senator Joni Ernst (R-IA) asked Pruitt whether the EPA can extend the summer-time RVP waiver to E10 plus blends in order to allow E15 to be sold year-round. Pruitt responded that it’s a legality question and EPA is still considering whether the agency actually has the authority to extend the waiver.  

Before the Senate Environment and Public Works (EPW) Committee held a hearing on legislation to extend the RVP waiver to E10 plus blends last summer, PMAA submitted a letter for the record to Chairman Barrasso and Ranking Member Carper highlighting its concerns with the bill. PMAA firmly believes that before Congress proceeds any further on granting a RVP waiver to blends above E10, it must first hold a hearing on the effects of ethanol blends on existing underground storage tank (UST) system infrastructure. The introduction of ethanol blends higher than 10 percent (including E15) present significant economic and legal impediments for many gasoline retailers as well as consumer awareness issues that go beyond the price of the fuel. Extending the RVP waiver to E15 at this point further exacerbates these concerns and could force many retailers to invest considerable time and money on an accelerated schedule to switch to an alternative fuel storage and distribution system to remain competitive. PMAA’s letter to the EPW Committee also highlighted concerns about different names a few retailers have used to sell E15 such as "Unleaded Plus” to make it more marketable than just calling it E15. 

Pruitt also fielded a question from Senator Mike Rounds (R-SD) regarding ethanol’s role in meeting Corporate Average Fuel Economy (CAFE) standards for road vehicle fuel efficiency. The Senator asked if the Administration will consider ethanol as a way to boost octane needed for high compression engines being developed by automakers. Pruitt responded that the EPA is agnostic about the fuel source and that EPA is currently reviewing what octane fuels can boost vehicle efficiency. In 2012, the EPA and the National Highway Traffic Safety Administration (NHTSA) adopted rules requiring the nation’s cars and light trucks to average 54.5 miles per gallon by 2025. Auto manufacturers have expressed concern that the standards are too aggressive and have urged the Trump Administration to reconsider the rule. Despite agreeing to the Obama-era CAFE standards in 2011, automakers have asked the Trump Administration and Congress to reconsider the current standards given that consumers continue to buy less fuel efficient vehicles due to lower motor fuels prices. The Administration is reviewing the Obama Administration’s CAFE standards and is expected to make a determination on whether to reduce CAFE standards this Spring.  
  
Meanwhile, in an interview with Fox Business, Administrator Pruitt partly blamed the RFS for forcing the largest oil refiner on the East Coast, Philadelphia Energy Solutions, to file for bankruptcy last month. PES has blamed RINs costs as a major factor in its bankruptcy filing. Pruitt later said that, “RIN reform is very, very important.” 

It’s safe to say that the RFS fight isn’t over for the foreseeable future. Click here to view the video. 

FEDERATED INSURANCE - WEBINAR
Family Succession Planning
Tuesday, February 20, 2018 (1:00 PM CT)
45 minutes | Complimentary | Advance registration required

When most people hear “estate planning,” they think of planning to avoid estate taxes. However, for all but the very wealthiest individuals, the federal estate tax is no longer a concern (although state level estate taxes may still be an issue for some). There is a lot more to “estate planning” than taxes. That’s why “family succession planning” better describes this process, which includes decisions about who will receive which assets, when they will receive them, and who will have authority to make financial, medical and end of life decisions for you if you can’t.

WHO SHOULD ATTEND 
  • Owners/Operators 
  • Next Generation Owners/Operators 
  • Risk Managers 
  • Operations Managers

KEY DISCUSSION POINTS
  • Which taxes may impact you and your family at your death 
  • What will happen if you don’t do any planning 
  • Impact of property ownership and beneficiary designations on your plan
  • Importance of planning for incapacity and end of life decisions

For more information and registration, please click HERE .