YOUR WEEKLY MEMBER NEWS LETTER:
is a service provided only to members of the Nebraska Petroleum Markers & Convenience Store Association (NPCA). If you have any key personnel that would like to be added at no additional charge, please feel free to reply to
tkeigher@npcainc.com, katie@npcainc.com or call (402)-474-6691.
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SAVE THE DATE-2017 NPCA & NPGA JOINT CONVENTION
AUG 2 & 3, LINCOLN, NE
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NPCA & NPGA Joint Convention
Reserve your room today here ($129), BLOCK ENDS JULY 12TH!
WEDNESDAY, AUGUST 2
11:00am Convention Golf Outing, Highlands Golf Course,
12pm Shot Gun Start
6:00pm - 9:00pm Cocktail Hour and Dinner with golf awards
THURSDAY, AUGUST 3
8:30am Breakfast with Federated Insurance
9:00am - 12:00 pm Seminars
Petroleum
9:00am - 10:30am The Future of Trucking & Driver Retention with Larry
Johnson, Nebraska Trucking Association
10:45am - 12:00pm TBA
Propane
9:00am - 10:30am National Propane Education Research Council
10:45am - 12:00pm National Propane Association
12:15pm - 1:30pm Lunch with Colby Coash- "A Different Lens of
Leadership. It's not always about money. Getting Your Staff Motivated!
2:00pm - 4:30pm Tours- Shuttle bus will be available
2:00pm - 3:00pm Kawasaki Tour
3:15pm - 4:15pm Hexagon Tour
5:00pm - 6:00pm Cocktails in the courtyard at the Marriott
6:00pm - 9:00pm Dinner with Ventriloquist, Greg Classen
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Earlier this week, PMAA sent a joint
letter to House Committee on Appropriations Chairman Rodney Frelinghuysen (R-NJ) and Ranking Member Nita Lowey (D-NY) urging them to reject President Trump's FY 2018 budget request of $47 million for the Leaking Underground Storage Tank (LUST) Trust Fund Program because the funding amount is inadequate. In previous years, Congress has appropriated between $90 - $100 million each year, an amount PMAA would like Congress to continue to appropriate.
In the 1980s, Congress and the EPA began to address the problem of UST releases by creating the LUST Trust Fund financed by a federal one-tenth cent ($0.001) per gallon tax on motor fuels. Petroleum marketers have supported the LUST fund and have paid $3.8 billion in LUST taxes since its inception. The fund is vital to the cleanup of UST leaks, which pose a serious threat to the environment and public health.
EPA provides almost 90 percent of its LUST money directly to states, territories, and tribes to implement UST cleanup and prevention programs. Unfortunately, the President's proposed FY 2018 budget calls for cutting the EPA's LUST fund program in half and returning the responsibility for funding state UST programs back to state and local governments. This would negatively impact state UST program authorities because states would not receive pollution prevention funding, funding for UST cleanup would be significantly reduced and technical support for states would be eliminated.
PMAA, along with NACS, NATSO and SIGMA, urged lawmakers to reject any efforts to significantly reduce the LUST Fund Program and continue to fund the program at previous fiscal year levels.
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On Thursday, Senate Republicans released their Obamacare repeal and replace "discussion draft" which is intended to be a compromise between Obama's Affordable Care Act (ACA) and the health-care bill that House Republicans passed in May.
Like the House bill, the Senate bill would no longer penalize individuals for failing to have health insurance and it would also eliminate the employer mandate. The Better Care Reconciliation Act of 2017 would subsidize millions of Americans who buy insurance through the ACA marketplaces for two more years and would phase out Obamacare's expansion of Medicaid over three years, starting in 2021. The bill would also delay the "Cadillac tax" on high-cost plans from 2020 to 2026, like the House-passed Obamacare replacement bill, and would also tighten eligibility for health insurance premium subsidies on the basis of immigration status.
Although Senate Majority Leader McConnell (KY) wants the bill to be fast-tracked and for the Senate to vote next week, the 142 page Senate bill will have to undergo significant changes before a vote is scheduled. Even though Senate leadership is using reconciliation to evade filibusters from Democrats, they can only lose two votes to pass the bill and Republican Senators Paul (KY), Lee (UT), Johnson (WI) and Cruz (TX) have already announced their opposition to the bill. Furthermore, Senator Collins (R-ME) has voiced a number of concerns with the bill. Also, the Congressional Budget Office (CBO) has not yet scored the Better Care Reconciliation Act and will not do so until next week. The CBO estimate will include projected losses of insurance coverage and the deficit savings that could occur due to the bill's policy changes.
If it passes, the Senate legislation would need to be reconciled with the House bill before going to President Trump's desk.
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IRS field agents are always on the lookout for dispenser labeling violations. The IRS requires labels for dyed diesel, dyed kerosene and untaxed clear kerosene dispensers. IRS fines for faded, incorrect or missing dispenser labels are significant. The labeling requirement has been in place for diesel dyed diesel dispensers since 1993 and for dyed and clear kerosene dispensers since 1998.
The following IRS labels must be posted on any retail dispenser or other delivery facility (skid tank, consumer dispensers at bulk plants or card locks) where dyed diesel fuel and/or dyed kerosene are dispensed for use by a purchaser/consumer:
"DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE" or
"DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE".
In addition, the following label must be posted on all blocked pumps that sell clear, untaxed kerosene:
"UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY".
The labels must be affixed to the dispenser in a conspicuous place within easy sight of the person dispensing the fuel either on the face of the dispenser (on both sides) or on the side of the dispenser just above the nozzle housing. Many petroleum equipment vendors sell IRS compliant labels online.
Heating Oil Dispensers
: Some heating oil dealers provide heating oil dispensers at their bulk plant for residential customers who wish to buy smaller quantities of fuel for heating. The IRS regulations do not address heating oil dispensers specifically. However, since heating oil is a dyed fuel and capable of being dispensed in the fuel tank of an off-road vehicle, it is recommended that these dispensers be labeled with an IRS diesel label as well.
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REMINDER! ANNUAL HAZMAT REGISTRATION FOR EXPIRING CERTIFICATES DUE JULY 1
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BACKGROUND: The U.S. DOT's Pipeline and Hazardous Material Safety Administration (PHMSA) requires hazardous material transporters to register and pay a fee for annual registration in return for a certificate of operation. PHMSA began mailing the 2017-2018 registration information to HAZMAT transporters in April. Only those with expiring DOT PHMSA HAZMAT registration certificates must re-register before July 1, 2017 or risk losing authority to operate and pay a substantial civil penalty. The validity of HAZMAT registration certificates is checked at roadside inspections.
Q. Who must register and pay the fee?
A. HAZMAT Transporters - Any business (intrastate or interstate) shipping hazardous materials requiring a U.S. DOT placard must register and pay a registration fee. Petroleum marketers, heating oil dealers, common carriers of petroleum products and propane suppliers who ship their products in trucks must register and pay the fee. Registration is only required for expiring certificates.
Q. What happens if I don't register?
A. Loss of Operating Authority - If you fail to register by the deadline then you lose your authority to operate your trucks in both intrastate and interstate commerce. Your authority to operate is the certificate you receive from PHMSA once you register and pay the fee. A current certificate must be kept in the cab of each HAZMAT vehicle at all times. If you are subject to a roadside inspection or DOT audit and do not have a current certificate your authority to operate will be revoked and you could be fined up to $77,000 per day, per violation.
Q. Why is the U.S. DOT collecting the fee?
A. Emergency Response Funding -The money collected from the registration program is given back to state emergency response authorities in the form of training grants for fire and police and emergency preparedness organizations.
Q. How Do I know my registration is current or not?
A. Registration Look-up - Registration status may be checked on line by clicking here:
Registration Look-Up. Enter either your company name, U.S. DOT number or zip code in the data fields provided to check whether your HAZMAT registration certificate is current.
Q. How do I register?
A. Registration Options - There are several ways to register:
- U.S. Mail - You must register by filling out the 2017-2018 registration application and sending it by U.S. Mail to PHMSA (along with the required fee). PHMSA generally mails new registration forms out to all registrants. If you have not yet received a form for the 2017-2018 registration year, one may be found by clicking here: 2017 Registration Form.
- Online Registration - On-line registration is available by clicking here: Online Registration. On-line registration allows you to register, pay the fee and download your operating certificate.
Q. When is the HAZMAT registration deadline?
A. Deadline - July 1, 2017 for those who have expiring certificates. Since registrations can be multiyear, not all certificates will expire on July 1. Check the expiration date on your HAZMAT certificate or information in the Registration Look-Up link above before registering by mail or online.
Q. What documentation should I put in my trucks after July 1, 2017?
A. Certificate Documentation - Place a photocopy of the updated certificate in the cab of each HAZMAT motor vehicle by July 1, 2017.
Q. How much is the annual HAZMAT registration fee?
A. Two-Tiered Fee System -The annual registration fee is based on business size:
- Small Business Registration Fee - For registration year 2017-2018 the fee for small businesses is $275 for one year; $525 for two years (2017-2019) and $775 for three years (2017-2020).
- Large Business Registration Fee - For registration year 2017-2018 the fee for large businesses is $2,600 for one year.
Q. How do I determine the size of my business so I know which fee to pay?
A. Business Size Calculation for Determining the Fee Amount - It is very likely that your business qualifies for the lower registration fee. Determining size is left up to the company applying for the registration certificate. PHMSA follows Small Business Administration (SBA) size categories to classify whether a business is large or small for the purposes of determining the amount of the annual registration fee. The SBA determines business size according to NAICS (North American Industrial Classification System) codes based on either the number of employees in the company or on annual gross receipts. The following NAICS codes and size criteria apply when calculating which fee to pay:
- 2017 REVISED NAICS 493190 - Bulk Petroleum Storage (Bulk Plants) - Petroleum marketers in this category sell at retail and are considered small businesses and must pay the $275 fee if the company employs fewer than 200 employees.
- 2017 REVISED NAICS CODE 454310 - Heating Oil Dealers Selling Directly to Retail Customers: Heating oil dealers in this category are considered small businesses and must pay the $275 fee if the company employs fewer than 100 employees.
- 2017 REVISED NAICS CODE 454310 - Liquefied Petroleum Gas Dealers Selling Directly to Retail Customers: Propane dealers in this category are considered small businesses and must pay the $275 fee if the company employs fewer than 100 employees.
- 2017 REVISED NAICS CODE 424710 - Petroleum Bulk Terminal: Wholesale Operations - Petroleum marketers in this category sell to other merchants at wholesale. These facilities are considered small businesses and must pay the $275 fee if the company employs fewer than 200 employees.
- 2017 REVISED NAICS CODE 424720 - Petroleum and Petroleum Product Wholesalers (no bulk storage): Petroleum marketers in this category are considered small businesses and must pay the $275 fee if the company employs fewer than 200 employees.
Click here for 2017 revised NAICS Code: 2017 NAICS Codes
Q. Where can I call if I have questions regarding registration filing?
A. Questions - For filing questions, call the U.S. DOT Hazmat Hotline (202)-366-4109. For regulatory questions contact Mark S. Morgan PMAA Regulatory Counsel at
mmorgan@pmaa.org.
On June 12, the Supreme Court announced it will not hear a lawsuit challenging a DOT rule requiring truck operators to use electronic logging devices (ELD) to track hours of service, leaving in place a lower court ruling upholding the mandate and its December 18 compliance deadline.
Earlier this year, the Owner-Operator Independent Drivers Association (OOIDA) filed a petition asking the Supreme Court to hear its lawsuit seeking to overturn the Federal Motor Carrier Safety Administration's (FMCSA) electronic log book ELD mandate for recording driver hours of service. The OOIDA lawsuit alleges that the ELD rule is arbitrary and capricious and violates the Fourth Amendment of the Constitution banning unreasonable search and seizures by the government. The ELD rule was published in December 2015 and requires motor carriers to equip trucks with electronic log book data recorders to record driver hours of service beginning December 18, 2017.
There are a number of exceptions to the ELD mandate including:
- Drivers operating under the 150-air-mile radius short-haul exception from keeping written log books to record hours of service;
- Drivers who occasionally keep a logbook but do not do so for more than eight days in any 30-day period; and
- Model year 1999 and older trucks.
PMAA has consistently opposed the ELD mandate since it was first proposed.
OOIDA says it's "extremely disappointed that the Supreme Court does not see the merit in reviewing our case with so many questions about its constitutionality." ATA concurs with the Supreme Court's decision. "We are pleased to see that the Supreme Court will not interfere with the implementation of this important, and Congressionally mandated, safety rule. We will continue to support FMCSA as they work toward the December deadline for electronic logging devices and urge them to provide certainty to the industry about when and how to comply with this rule by continuing to move toward implementing this regulation on schedule."
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JUDGE SETS HEARING DATE ON TRUMP'S 2-FOR-1 REGULATORY ORDER
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In February, Public Citizen, the Natural Resources Defense Council and the Communication Workers of America filed a lawsuit challenging President Trump's executive order requiring agencies to identify two regulations to revise or repeal for every new regulation written. Late last month, Judge Randolph Moss of the U.S. District Court for D.C. rejected the Trump administration's request that he decide whether to dismiss the lawsuit on procedural grounds before considering arguments against the order itself, therefore meaning the case would proceed.
This week, Judge Moss announced that the date of the hearing would be August 10. Since the judge decided not to hear the Justice Department's argument last month that the lawsuit should be dismissed as premature before moving on to the groups' main arguments, Judge Moss will now hear both the arguments about whether to dismiss the case, and the main argument about whether the order is unlawful.
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On Thursday, the House Energy and Commerce Energy Subcommittee approved H.R. 2910, Promoting Interagency Coordination for Review of Natural Gas Pipelines Act, which would boost interagency cooperation when siting interstate natural gas pipelines. Another natural gas pipeline bill, H.R. 2883, Promoting Cross-Border Energy Infrastructure Act, would replace the presidential permitting process for pipelines that cross international boundaries. Specifically, the Federal Energy Regulatory Commission (FERC) would be required to approve or deny an application for certificate of crossing for the border-crossing facility consisting of oil or natural gas pipelines within 120 days of an environmental review.
PMAA is concerned with the expansion of natural gas pipelines. Rather than deregulate the natural gas pipeline permitting process, Congress should require that regulators and gas companies increase system efficiency by requiring that the thousands of miles of existing natural gas pipelines that are aging or obsolete be repaired or replaced. The capacity demands of the region's power generators can be more than met through proper utilization, maintenance and upgrading of existing natural gas pipelines and proper planning that includes the use of affordable and abundant fuel oil during periods of peak or unanticipated demand.
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FEDERAL COURT ENVIRONMENTAL REVIEW ORDER THREATENS DAKOTA ACCESS PIPELINE
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A federal judge in Washington, D.C. ordered the Trump Administration to conduct further environmental reviews of the Dakota Access pipeline but stopped short of halting oil-pumping operations pending further hearings beginning June 21. The decision is a limited victory to Native American tribes in North Dakota that challenged the administration's effort to speed the project. The court found that while the Army Corps of Engineers "substantially complied" with federal environmental laws, "it did not adequately consider the impacts of an oil spill on fishing rights, hunting rights, or environmental justice, or the degree to which the pipeline's effects are likely to be highly controversial."
The ruling comes just weeks after Dallas-based Energy Transfer Partners began pumping crude oil through the 1,170-mile line carrying North Dakota oil through South Dakota and Iowa to a distribution point in Illinois. Four Sioux tribes in the Dakotas have asked the court to shut down oil-pumping operations. In February, the court rejected a request from the Sioux tribes to halt the pipeline due to potential archaeological damage and desecration of religious sites including the Missouri River and Lake Oahe. The latest court challenge was triggered by one of President Trump's executive orders, directing the corps to expedite approval and drop an Obama era environmental impact study. The tribes and environmental groups said the administration's actions violate administrative procedure and treaty obligations. Tribal leaders say their environmental concerns have grown more urgent now that the pipeline is operational. The legal challenge facing the pipeline is just one of many lawsuits filed against the Trump Administration's effort to rollback federal regulations.
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The Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a
Final Rule to revise its regulations and increase the maximum civil penalty amount for violations of the Federal hazardous materials safety law. Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which further amended the Federal Civil Penalties, Inflation Adjustment Act of 1990, federal agencies are required to adjust their civil monetary penalties each year to account for changes in inflation. The maximum civil penalty for a knowing violation is now $78,376, except that the maximum civil penalty is $182,877 for a violation that results in death, serious illness, or severe injury to any person or substantial destruction of property. In addition, the minimum civil penalty amount of $471 applies to a violation relating to training. Federal agencies are required to adjust their civil monetary penalties effective August 1, 2016, and then annually thereafter, to account for changes in inflation. The new civil penalty rate is retroactive to April 19, 2017.
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PMAA CORPORATE PLATINUM PARTNER SPOTLIGHT FEATURING: FEDERATED'S RISK MANAGEMENT CORNER
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Employment Screening Trends and Pitfalls
Business in most industries continues its upward trajectory in 2017, and companies are hiring at a brisk pace. With the increased urgency in hiring, some companies have found it necessary to hire first, ask questions later. This can be risky. Employers should be aware of and minimize potential liability during their hiring process. Keeping up on the latest trends and pitfalls in employee screening is prudent to successful hiring and hiring practices.
Please click here to read the article in its entirety. For additional information or to discuss further, please contact your Federated regional representative or PMAA's National Account Executive Jerry Leemkuil at 800.533.0472. Federated is a PMAA Corporate Platinum Partner.
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Thank You to NPCA's Partners
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Nebraska Petroleum Marketers and Convenience Store Association | (402) 474-6691 |
www.npcainc.com |
1320 Lincoln Mall, Suite 100B
Lincoln, NE 68508
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