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
2018-2019 Board of Directors
Tommy Shreffler, Chairman 
 OnCue Marketing, LLC

Jerry Davidson
Pete’s Corporation

Jason Flinn 
Flowers Oil Company

Teresa Hollenbeck
Red Rock Distributing Company

Kurtis Hutchinson
Hutchinson Oil Company

Brian Lohman
ASAP Energy, Inc.

John Netherton
Danielson Fuel Services

Duff Thompson
AVP Metro Petroleum LLC

Rob Toth
Coffeyville Resource
OPMCA Welcomes New Member:
Sullivan Insurance Agency
Rob Franklin
5511 S. Toledo Ave.
Tulsa, OK 74135
(918) 740-7303
Robert@johnsullivaninsurance.com
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Thursday, Nov. 15, 2018
  • 2018 Oklahoma Election Results
  • Summary of Mid-Term Election
  • Compliance Bulletin Reminder
  • EPA Plans to Speed up Five-Year Ozone Emission Review Process
  • FDA Cracking Down on Underage E-Cigarette Sales
  • Federated Insurance Webinar
2018 OKLAHOMA ELECTION RESULTS
OKLAHOMA’S CONGRESSIONAL RESULTS
The night was not without tumult here in Oklahoma. While three of four Congressional incumbents easily won reelection, in our 5th Congressional District incumbent Congressman Steve Russell (R-Choctaw) fell to democrat challenger Kendra Horn (D-OKC) 51% to 49% (121,013 votes to 117,725). This is a significant win and marks the first time a democrat has won in Oklahoma above the state legislature since retired Congressman Democrat Dan Boren in 2010. Even more significantly, this is the first time a democrat has held this OKC Congressional seat since the mid 1970’s. 
 
In Tulsa we also have a new member of our congressional delegation as newly elected Congressman Kevin Hern (R-Tulsa) defeated democratic challenger Tim Gilpin (D-Tulsa) earning 59.3% of the vote to Gilpin’s 40.7%. This race was to fill the open seat left by former Congressman Jim Bridenstine (R-Tulsa) who President Trump named to head NASA. 
 
With democrats picking up the required seats to take the U.S. House, our more senior republican congressional members will lose out on the opportunity to have powerful committee chairmanships. In the U.S. Senate however, the continued republican control means Senator Jim Inhofe will be the next chairman of the powerful Senate Armed Services committee. 
 
STATEWIDE RACES
The meteoric rise of Kevin Stitt came to a peak last night with a resounding win to become our next Governor. Stitt won 73 of 77 counties, with only Oklahoma, Tulsa, Muskogee, and Cherokee Counties going to democrat former Attorney General Drew Edmonson. Over 1.1 million votes were cast in the race, and the final results were:
 
           Kevin Stitt (R): 54.3%
           Drew Edmon d son (D): 42.2%
           Libertarian Chris Powell (Lib): 3.5%
 
It was a big win for a political outsider who spent a lot of his own money on the race, and the newcomer is heading into a session with a lot of new faces coming to the legislature to work with. 
 
In the other statewide races Republicans expectedly swept. Their candidates were more experienced and funded across the board and that showed in the races. The results were:
 
Lt. Governor:
           Matt Pinnell (R): 61.9%
           Anastasia Pittman (D): 34.52%
           Ivan Holmes (Ind): 3.58%
 
Attorney General: 
            Mike Hunter (R): 64%
           Mark Myles (D): 36%
 
State Auditor & Inspector:
           Cindy Byrd (R): 75.2%
           John Yeutter (Ind): 24.8%
 
State Treasurer: 
            Randy McDaniel (R): 71.6%
            Charles De Count (Ind): 28.4%
 
State Superintendent of Public Instruction: 
            Joy Hofmeister (R): 58.5%
            John Cox (D): 33.8%
           Larry Huff (Ind): 7.7%
 
Commissioner of Labor: 
            Leslie Osborn (R): 61.7%
            Fred Dorrell (D): 33.5%
           Brandt Dismukes (Ind): 4.8%
 
State Insurance Commissioner: 
            Glen Mulready (R): 62%
            Kimberly Fobbs (D): 38%
 
Corporation Commissioner: 
            Bob Anthony (R): 60%
            Ashley Nicole McCray: 34.3%
           Jackie Short (Ind): 5.7%
 
OKLAHOMA STATE LEGISLATIVE RESULTS 
Both chambers remain in strong republican supermajority control and that means that Speaker Charles McCall (R-Atoka) and his leadership team remain in control of the House, and the newly chosen Senate Pro Tem Greg Treat (R-OKC) and his leadership team will have control of the senate. 
 
While there aren’t any major changes in the makeup of the legislature, we now know we will have 45 brand new house members (and democrat State Representative Ken Luttrell of Ponca City who just won his old house seat back as a republican) and 11 brand new members of the senate. 
 
One of the big stories of the night was House Minority Leader Steve Kouplen (D-Beggs) losing his house seat. Down the road into Pittsburgh County, democrats also lost another rural incumbent as Rep. Donnie Condit (D-McAlester). The trend over the last couple of decades continues as democrats continue to lose rural seats to republicans, but are now gaining in the urban areas.
 
Two of the big wins for democrats came in the OKC Metro as two women turned red senate seats blue— Julia Kirt (D-OKC) defeated John Symcox to capture the open seat left by OKC Mayor David Holt, and Carri Hicks (D-OKC) defeated 2 challengers to take Sen. Irvin Yen's (R-OKC) seat after he lost in the primary. 
 
STATE QUESTIONS
All but one of the state questions were defeated last night, with SQ 794 winning easily 78% to 22%. SQ 794 is known as Marsy’s Law, and it put into our constitution protections for crime victims that include further participation in criminal proceedings and guaranteed notification of a defendants release or escape from prison. 
 
The others that were defeated were:
 
SQ 793
No: 50.2%
Yes: 49.8%

           Would have expanded where and how an optometrist can practice in Oklahoma. Was brought forward by Wal Mart and opposed heavily by optometrists. Proponents of the measure are already talking about coming back to make this a statutory change in the legislature. 
 
SQ 798 
No: 54.1%
Yes: 45.9%

           Would have combined the Governor and Lieutenant Governor to run on the same ticket like the President and Vice President do nationally. 
 
SQ 800
No: 43%
Yes: 57% 

           Would have amended the Oklahoma Constitution creating the Vision Fund into which 5% of gross production tax dollars would go every year. 
 
SQ 801
No: 50.4%
Yes: 49.6%
 
THE END OF A WILD RIDE?
The question that many will be asking now is whether this election marks the end to a tumultuous period in our state where we saw teachers storm the capitol, billion dollar budget shortfalls, 4 day school weeks, and massive tax increases on nearly all industries being put on the table. It is our expectation that we have calmer days ahead of us if for no other reason than that the state’s financial house is in better shape than it has been in a long time. Previous tax and fee increases, plus a turnaround in Oil and Gas prices have put our state back on track to have a budget surplus for the first year in a long time.
 
Whether this election brings some calm to the capitol won’t really show until session begins in February. In the meantime, it is incumbent on everyone to get out and meet these 56 new legislators, teach them about your business and what impact it has on their constituents. 
DEMOCTRATS TAKE BACK THE HOUSE WHILE REPUBLICANS STRENGTHEN MAJORITY IN THE SENATE
House
As many expected, Democrats regained the majority in the House, gaining at least 28 seats. Current Minority Leader Nancy Pelosi (D-CA) is expected to become Speaker of the House. However, her path to the Speaker’s balcony might not be as smooth sailing as previous Congresses as some House democrats are likely to challenge her. Rep. Kevin McCarthy (R-CA) announced he would run for House minority leader. He is currently majority leader and is next in line due to Speaker Ryan’s retirement. It is expected that Rep. Jim Jordan (R-OH) will launch a longshot bid for that position. As for House committee leadership of particular importance to petroleum marketers, the House Energy and Commerce Committee will likely be chaired by Rep. Frank Pallone (D-NJ), the House Transportation and Infrastructure Committee will likely be chaired by Rep. Peter DeFazio (D-OR), the House Financial Services Committee will likely be led by Rep. Maxine Waters (D-CA) and the House Ways and Means Committee will likely be chaired by Rep. Richard Neal (D-MA). PMAA and the state associations have good relations with most of these members.

Senate
In the Senate, Republicans retained the majority (51 to 46 with seats in Florida, Mississippi and Arizona too close to call). Some of the key wins for Republicans included Rep. Kevin Cramer (R-ND) defeating sitting Democratic Sen. Heidi Heitkamp, Indiana businessman Mike Braun defeating sitting Democratic Sen. Joe Donnelly and current Missouri Republican Attorney General Josh Hawley defeating sitting Democratic Sen. Claire McCaskill.

What to Expect the Next Two Years
The change of the gavel in the House is likely to lead to two years of partisan gridlock in Washington. However, it is possible that Trump will develop a triangulation strategy to allow him to succeed by working with the Democrats in the House similar to what Clinton did in the 90s and was reelected with that strategy. Now that Democrats have control of the House, they are determined to investigate the Trump administration, his 2016 Presidential campaign, and his family’s business empire including his tax returns. There is even talk of possible impeachment proceedings. However, most Democrats realize impeachment would be meaningless as it would require over twenty Republican Senators to vote against the President. The bottom line is to expect investigation after investigation, particularly once Special Counsel Mueller releases his final report examining any potential connections between the 2016 Trump presidential campaign and Kremlin-sponsored hackers. While these investigations will not lead to anything final, they will occupy news cycles and distract the Administration.

There are some areas Republicans and Democrats may be able to find common ground as the two parties may work on trade and an infrastructure package. PMAA has been advocating against the commercialization of rest areas and will continue to do so as talks over an infrastructure package accelerate. Tax 2.0 may also still be on the table, and with incoming Chairman Neal (D-MA), movement is possible. Neal has a long history of working across the aisle, however, politics are likely to play out on both sides as the incoming Ways and Means Committee Chairman will likely focus the Committee’s attention on obtaining Trump’s tax returns and how the last tax bill affected the President.

Lame Duck Session 2018
Congress returned this week to begin a planned three-week lame duck session. While the fight over funding the border wall in a government spending package is likely imminent, PMAA is focused on getting Congress to approve the Senate-passed farm bill which includes a permanent extension of the National Oilheat Research Alliance (NORA). Congress may also address a tax extenders package before adjournment that could include a retroactive extension of the $1 per gallon biodiesel blender’s tax credit for 2018 and possibly an extension through next year along with an extension of the Oil Spill Liability Tax (OSLT) that expires on Dec. 31, 2018. Refiners are the only party liable for the OSLT because its imposed on crude oil at the refinery gate. Last year, the OSLT expired but some suppliers continued to charge the 9 cents per barrel OSLT on jobber bill of ladings during the first few months of 2018 believing that Congress would apply the tax retroactively when they passed an extenders package. Click here to view a PMAA issue brief on the OSLT issue. Congress may also fix the drafting error in Section 168 of the “Tax Cuts and Jobs Act” so businesses can receive the 100 percent bonus depreciation benefit that Congress intended to provide in the bill. Finally, given that Senator Dean Heller (R-NV) lost his reelection bid in Nevada, his bill to extend the $7,500 electric vehicle tax credit through 2022 in the tax extenders package is up in the air. Lame duck sessions are particularly unpredictable, but PMAA is hopeful on NORA and the extension of the biodiesel tax credit.

COMPLIANCE BULLETIN REMINDER
Compliance Bulletin Reminder: Shipping Paper Hazmat Sequencing Reminder

The U.S. DOT issued a final rule on December 29, 2006 that implemented a change to hazardous materials shipping papers beginning January 1, 2013. However, some petroleum marketers remain unaware of these important changes. The DOT’s final rule harmonized federal hazardous material regulations (HMR) with international standards but applies to domestic shipments as well. The rule is important to petroleum marketers because it changed the way shipping papers for hazardous materials are prepared. Specifically, the final rule changed the sequence of hazardous material product description that must be placed on shipping papers for petroleum products. Under the new requirement, the hazardous material identification number must be entered first, followed by the product shipping name. Until now, the HMR required that the product shipping name be entered first, followed by the hazard class then the hazardous material identification number. The U.S. DOT allowed for voluntary compliance with the new hazardous material sequencing beginning January 1, 2007 but it became mandatory in 2013.  The following is a comparison of the old and new hazardous material product information sequence for shipping papers (Note: bold type face used for purposes of illustration only):
INCORRECT SEQUENCING:

Diesel Fuel, 3, NA1993, PG III 

Fuel Oil, (No. 1,2,4,5 or 6) 3, NA1993, PG III         

Gasoline, 3, UN1203, PG II                                             

Kerosene, 3, UN1223, PG III         
                                                  
E-10

Gasoline, 3, UN1203, PG II                                            

Ethanol blends over E-10 including E-85

Ethanol and Gasoline Mixture, 3, UN3475, PG II                  
CORRECT SEQUENCING:

NA1993, Diesel Fuel, 3, PG III

NA1993, Fuel Oil (1,2,4,5 or 6), 3, PG III

UN1203, Gasoline, 3, PG II

UN1223, Kerosene, 3, PG III



UN1203, Gasoline, 3, PG II



UN3475 Ethanol and Gasoline Mixture, 3, PG II
(Remember all product sequences must be preceded or followed by quantity ex: “1 cargo tank truck” or “500 gals”, etc.)

EPA PLANS TO SPEED UP FIVE-YEAR OZONE EMISSION REVIEW PROCESS
The Environmental Protection Agency (EPA) plans to implement an “accelerated” process for deciding whether to further restrict allowable ground-level ozone pollution limits. Ground ozone limits are important to petroleum marketers because they ultimately determine whether RFG or conventional gasoline is used in countywide pollution control zones across the country. Under the Clean Air Act’s National Ambient Air Quality Standards program, the EPA is obligated to decide every five years whether to write a new standard for pollutants like ozone, particulate matter and sulfur dioxide, based on the latest scientific literature, among other factors. 

In the past, the EPA has missed the review deadline by several years. To avoid delays in the future, the EPA said it intends to incorporate several efficiencies to speed up the review process. The changes from previous review processes include skipping a kick-off workshop, not giving the external air pollution advisory committee a separate period to review the standard apart from the public comment period and not writing a risk and exposure assessment. The accelerated review combined with changes last year that allows implementation costs to be weighed along with naturally occurring ozone and ozone blown in from other countries are likely to make the standards less restrictive, and in turn, restrict the growth of RFG areas nationwide

FDA CRACKING DOWN ON UNDERAGE SALE OF E-CIGARETTES BY RETAILERS
The Food and Drug Administration (FDA) is expected to announce a sweeping ban on the sales of certain e-cigarette products at retail sites. Click here to read the Washington Post report. FDA Commissioner Dr. Scott Gottlieb declared teen use of electronic cigarettes an "epidemic" and said the agency would be addressing the issue with "the largest coordinated tobacco compliance effort in FDA's history." The FDA is considering taking certain actions including forcing an immediate removal of certain flavored e-cigarettes from the market as well as possibly changing its compliance policy that extended the dates for manufacturers of some flavored e-cigarettes to submit applications for premarket authorization. On September 12th, the FDA sent letters to manufacturers of five e-cigarette brands, including Juul, Vuse, MarkTen XL, Blu and Logic, requesting that they implement plans to limit youth access to their products within 60 days. Failure to do so or not showing a good-faith effort "could mean requiring these brands to remove some or all of their flavored products that may be contributing to the rise in youth use from the market until they receive premarket authorization and otherwise meet all of their obligations under the law," according to the FDA statement. The deadline to respond is Monday.

PMAA urges the FDA to work with retailers and the We Card Program to prevent youth access to e-cigarettes. A few bad actors should not impact the entire retail industry who are taking the proper steps necessary to prevent youth access. PMAA plans to respond to the FDA immediately.

FEDERATED INSURANCE WEBINAR
Winter Driving Safety
Tuesday, November 20, 2018 (1 PM CT)
30 minutes | Complimentary | Advance registration required

As daylight hours shorten and weather becomes more treacherous, driving risks change. This session will discuss the risks specific to driving in rain, sleet, snow, ice, fog, and wind. We will also discuss how the lack of daylight introduces new risks, including increased fatigue.

  WHO SHOULD ATTEND 

  • Owners/Officers 
  • Operations Management 
  • Transportation Managers 
  • Risk Managers 
  • HR Professionals

WHAT YOU WILL LEARN

  • The risks of driving in various weather conditions 
  • The fatigue risk that comes with seasonal change 
  • Best practices to control seasonal driving risks


Click HERE for additional information and registration.