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
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Thank You to NPCA's Partners
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HAPPENINGS IN THE NEBRASKA LEGISLATURE THIS WEEK
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This week was a short one for lawmakers only working Monday through Wednesday as they wind down the 2018 Legislative Session. Senators will return to Lincoln on Wednesday of this coming week to complete the 60th and final day of this year's session.
As you recall a group of senators worked last weekend to try and come to a compromise on a tax relief package but were not able to find enough common ground to bring forth a bill.
Speaker Scheer had optimism that some form of a compromise could be found and listed the three bills that had various forms of tax relief that were advanced from committee on Monday, April 9 agenda.
The three bills, plus one appropriations companion bill included:
LB640
(Groene) - Change provisions of the Property Tax Credit Act and provide school district property tax relief.
LB947
(Smith) - Adopt the Nebraska Property Tax Cuts and Opportunities Act, change income tax rates, and eliminate certain exemptions and credits.
LB947A (
Smith) - Appropriation Bill.
LB1103 (
Friesen) - Provide a minimum amount of state aid for each school district.
Since no progress was made at the weekend meetings on tax relief, Speaker Scheer skipped over all four bills when they reached that section of the agenda.
Having not addressed the issue of property tax relief during the Legislative Session prompted a group of thirteen senators, led by Senator Brewer (Gordon), to have the Secretary of State poll the members of the Legislature to see if they wish to call a special session.
In addition to Senator Brewer, the letter was also signed by Senators Steve Erdman of Bayard, Steve Halloran of Hastings, Tom Briese of Albion, Mike Groene of North Platte, Bruce Bostelman of Brainard, Curt Friesen of Henderson, Justin Wayne of Omaha, John Lowe of Kearney, Tyson Larson of O'Neill, Joni Albrecht of Thurston, John Murante of Gretna and Dan Hughes of Venango.
If the poll garners another 20 senators - 33 needed in total - that feel a special session to address property taxes is meet, then the decision to hold a special session must be made by April 23.
Speaker Scheer said that senators should expect to convene in late April. He has also stated that while he understands the request by those signing onto the initial request, he will not sign on to make the request of a special session.
Other Action Taken in The Legislature This Week
Bills passed on Final Reading and Sent to the Governor:
LB1089
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Change provisions relating to confidential tax information, refundable income tax credits, and homestead exemptions
was passed on Final Reading by a 48-0 vote and sent to Governor Ricketts for his action.
Before Its passage,
AM2806
(Smith) was adopted by a vote count of 42-0 adding the following language to allow the continuation of the use of 1031 exchanges for purposes of computing one's Nebraska personal property tax liability.
AM2806 - "For purchases of depreciable personal property occurring on or after January 1, 2018, and before January 1, 2020, if there is an election to expense the depreciable property under section 179 of the code and similar personal property is traded in as part of the payment for the newly acquired property, the Nebraska adjusted basis shall be the remaining net book value of the property traded in, plus the additional amount that was paid by the taxpayer for the newly acquired property."
LB994
, was passed on Wednesday by a vote count of 48-0 and was sent to Governor Ricketts as well.
LB994 creates the Rural Broadband Task Force whose purpose is study alternatives for deployment to underserved or unserved areas such as reverse auction programs, public-private partnerships, and funding for competitive deployment. Also, broadband services are defined as high-speed telecommunications capability at a minimum speed of 25 megabits per second down and 3 megabits per second up that enables users to originate and receive high-quality voice, data, and video telecommunications using any technology.
In addition, all 32 Consent Calendar bills were advanced from Final Reading and sent to Governor Ricketts for his action. He has five days, excluding Sundays, to either sign or veto them, or allow them to become law without his signature.
Bills advanced to Final Reading and listed on Wednesday, April 18's Legislative Agenda:
LB1120,
which makes c
hanges to provisions of the Nebraska Liquor Control Act and music licensing provisions was advanced to Final Reading by a voice vote and contains the following changes:
- The ability of the Liquor Control Commission to regulate bottle clubs, since they allow the consumption of alcohol (BYOB) and thus will allow law enforcement to enter these facilities to do a compliance check.
- Reallocates the shipping licenses fees, correcting an error from a couple years back in how the funds are distributed. The issue here was that the craft brewers were getting more than just the beer license fees to promote the craft beer industry. Basically, a fair amount of the license fees from wine shippers were being allocated to craft beer promotion, when it was the intention that wine fees be used for Nebraska winery promotion.
- Allows an increase in the size of growlers to 64ozs (currently 32ozs).
- Will allow someone applying for a liquor license for the first time to have the ability to appeal to the Liquor Control Commission (LCC). Under current law, only those applying for a license renewal and a subsequent denial are allowed an appeal to the LCC.
Retains the language that was advanced by the General Affairs Committee pertaining to music licensing fees changing the "late fee" to a "fine" and being a fine by the Nebraska Constitution the funds will be directed to school funding.
LB989
, a bill to a
uthorize automated-driving-system-equipped vehicles, automated driving systems, and driverless-capable vehicles as prescribed was placed on Final Reading on Wednesday of this week and appears on April 18th's agenda.
The 60th Legislative Day, April 18, convenes at 1:00pm and has 22 bills on Final Reading on the agenda. It is expected that this will take a couple of hours to complete and then will be followed Sine Die Ceremonies, which includes Governor Ricketts addressing the Legislature.
There is a section on agenda for
"
MOTION(S) TO OVERRIDE GUBERNATORIAL VETO(ES)", but there is not anticipated to be any request made. This only applies to bills that have already been sent to the Governor. Any bills passed on the 60th day and if voted by the Governor will not see any opportunity for an override attempt, as lawmakers will not be meeting after such a veto would take place.
Priority Bills of Interest Updated
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Prioritized
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Bill Number
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Introducer
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Status
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One liner
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Senator Watermeier
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Final Reading - Failed to get Cloture votes
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Adopt the Remote Seller Sales Tax Collection Act
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Senator Stinner
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General File
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Extend certain levy authority for natural resources districts. Cloture Vote failed 27-14 (needed 33) on March 7th.
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Senator Pansing Brooks
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General File - Failed to get Cloture votes
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Change provisions relating to appointment of counsel for juveniles
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Senator Lowe
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General File Had 3hrs of floor debate 4/4/2018, will need proof of 33 votes to return to the agenda, which is doubtful
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Adopt the Small Wireless Facilities Act
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Agriculture Committee
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General File
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Prohibit certain unlawful acts as prescribed relating to the Weights and Measures Act
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Senator Baker
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Signed 2/28/2018
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Change provisions relating to civil claims of four thousand dollars or less
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Speaker Scheer
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Presented to the Governor 4/11/2018
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Provide a procedure for judicial emancipation of a minor
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Speaker Scheer
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Presented to the Governor 4/6/2018
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Change provisions relating to real property appraisers
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Banking, Commerce and Insurance Committee
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Signed 3/21/2018
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Change provisions relating to mortgage licensing, recording of real property instruments, and rights and duties of secured creditors
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Senator Morfeld
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Signed 2/28/2018
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Change provisions of the Credit Report Protection Act and the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006
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Natural Resources Committee
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Signed 2/28/2018
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Provide for voluntary payments in lieu of taxes on water augmentation project lands as prescribed
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Appropriations Committee
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Signed 3/21/2018
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Adopt the State Park System Construction Alternatives Act
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Education Committee
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General File
Cloture Vote Failed 3/22/2018
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Require voter approval for school district building fund levies
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Senator Erdman
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In Committee
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Adopt the Property Tax Relief Act
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Speaker Scheer
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Presented to the Governor 4/11/2018
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Require Director of Aeronautics to consult with the Military Department in certain structure permitting decisions
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General Affairs Committee
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General File
Has had 3hrs of floor debate, Needs proof of 33 votes to comeback.
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Create a licensing exception under the State Electrical Act for certain farm building construction
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Speaker Scheer
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Presented to the Governor 4/11/2018
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Provide immunity for certain law enforcement employees administering naloxone and change provisions relating to immunity for persons reporting or experiencing alcohol overdoses
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Senator Smith
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General File Stalled after 3hrs of debate.
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Adopt the Nebraska Property Tax Cuts and Opportunities Act, change income tax rates, and eliminate certain exemptions and credits
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Business and Labor Committee
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Final Reading and on April 18th's agenda
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Change provisions relating to lump-sum settlements under the Nebraska Workers' Compensation Act
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Senator Wishart
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Final Reading and on April 18th's agenda
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Authorize testing of autonomous vehicles by a city of the primary class on its roadways
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Transportation and Telecommunications Committee
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Presented to the Governor 4/11/2018
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Create the Rural Broadband Study Task Force, change provisions relating to the Nebraska Telecommunications Universal Service Fund, and change powers and duties of the Public Service Commission as prescribed
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Natural Resources Committee
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Presented to the Governor 4/6/2018
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Increase amounts of liquidated damages for certain violations of the Game Law
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Senator Hughes
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Presented to the Governor 4/11/2018
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Provide a super-two rural highway classification and change maximum highway speed limits as prescribed
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Senator Brewer
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In Committee
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Change provisions relating to hearings before the Nebraska Power Review Board and electric generation using wind
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Senator Briese
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In Committee
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Adopt the Property Tax Request Limitation Act, provide sunset dates for certain tax exemptions and incentives, and change other revenue and taxation provisions
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Revenue Committee
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Presented to the Governor 4/11/2018
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Change provisions relating to confidential tax information, refundable income tax credits, and homestead exemptions
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Revenue Committee
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Presented to the Governor 4/11/2018
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Change provisions relating to inflation adjustments, personal exemptions, and standard deductions
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Speaker Scheer
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Presented to the Governor 4/11/2018
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Change dollar threshold for certain purchasing requirements under the County Purchasing Act
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Senator Friesen
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General File - had 3hrs of debate, will need 33 to comeback on the agenda
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Provide a minimum amount of state aid for each school district
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Senator Harr
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In Committee
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Authorize certain tax credits, change the sales tax rate, and provide for school foundation aid and certain grant programs
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General Affairs Committee
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Final Reading and on April 18th's agenda
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Change provisions of the Nebraska Liquor Control Act and music licensing provisions. With the two pending amendments striking most of the bill's contents leaving only the music provisions, which would provide protections for those entities that host live music performances and are being aggressively contacted by agencies claiming to hold the copyrights to the music being performed and demanding a licensing fee.
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A recap of the 2018 Session will be sent within the next two weeks.
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Recently, the Trump Administration used its waiver authority under the RFS to exempt several small refiners from their renewable volume obligations (RVOs) which in turn has dampened ethanol RIN values. The EPA has the authority to grant exemptions from the program to refineries with a capacity under 75,000 barrels per day if the company can demonstrate financial hardship. Twenty-five exemptions have already been granted this year with possibly more to come. In response, Midwestern Senators fired off a letter to the EPA Administration earlier this week urging the EPA to halt the exemptions because it undermined the intent of the RFS. The letter stated, "The granting of waivers for 2016 RVOs have effectively reduced the 2016 requirement of 15 billion gallons to 13.8 billion gallons." Click here to read the letter.
Meanwhile, reports surfaced this week that the EPA is in the process of extending the 1 psi RVP waiver to allow E15 sales during the summer months. President Trump confirmed those reports yesterday which indicated that the EPA is likely to grant the waiver sometime soon. The ethanol industry claims that EPA has the authority to extend the waiver to E15, however, the Clean Air Act clearly limits the one psi RVP waiver to ethanol blends between 9 and 10 percent and current EPA regulations reflect the CAA RVP waiver limit. In order for the 1 psi waiver to be extended to higher ethanol blends, Congress would need to address it.
PMAA continues to be concerned that small business petroleum marketers will be placed in a precarious situation if E15 starts to take hold because of the potential economic impacts of adding E15 including the costs associated with existing UST system incompatibility.
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GLW Scholarship Golf Outing
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June 14- York, NE
Come network with members of the industry and raise money for the George L. Watters Memorial Scholarship Golf Outing 11:30 Lunch 12:00pm Shot Gun Start Dinner to follow
Beverages on the Course & Dinner Sponsor:
Shrimp & 2 Hole Sponsor: 19th Hole Sponsor:
Lunch Co-Sponsor:
Hole Sponsors:
Bosselman Energy, Cenex, Cubby's, Federated Insurance,
Flint Hills Resources, Growmark, Hartland Fuels, LSI,
Midwest Pump & Equipment, Phillips 66, Sinclair Oil, Western Oil
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House Subcommittee on Environment Holds Hearing on High Octane Fuels
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Today, the House Subcommittee on Environment held a hearing entitled "High Octane Fuels and High Efficiency Vehicles: Challenges and Opportunities." Testifying before the committee included Chet Thompson, President, American Fuel and Petrochemicals Manufacturers; Dan Nicholson, Vice President, Global Propulsion Systems, General Motors, on behalf of the United States Council for Automotive Research; Tim Columbus, General Counsel, Society of Gasoline Marketers of America and National Association of Convenience Stores; Paul Jeschke, Chairman, Illinois Corn Growers Association; and Emily Skor, CEO, Growth Energy.
The upcoming CAFE standards will drive auto manufacturers to make more fuel-efficient vehicles. One means that has gained traction to achieving this is through the use of high compression engines in new vehicles. These high compression engines will require the introduction of a 95-Research Octane Number (RON) which is similar to a 91-92 minimum octane rating. For modern technology engines, RON is the better measure of performance (knock prevention) and is widely used in Europe. Transitioning to a high-octane baseline fuel would likely take nearly 20 years to happen and come with potentially significant costs. Witnesses argued that transitioning to 95-RON fuel would preserve the liquid fuels industry, different opinions were expressed on how to get to this higher octane standard.
In prepared testimony before the Committee, AFPM President Chet Thompson argued for a fuel neutral 95-RON (similar to a 91-92 minimum octane rating) performance standard in exchange for repealing the RFS. AFPM concluded that a 95-RON standard (similar to a 91-92 octane rating) is the sweet spot due to the fact that "California's air quality standards limit the ability to increase the octane rating of the base gasoline to achieve more than a 95-RON E10 gasoline standard. Furthermore, California regulations prohibit the use of E15. Therefore, using E15 to produce a high-octane fuel above 95-RON is not feasible in California along with five other states which also have limitations or prohibitions on E15 use. Any octane standard that creates a de-facto E15 mandate would prevent the implementation of a single nationwide high octane fuel specification."
AFPM further argued that "a 95-RON standard would be a more stable policy than the RFS for the ethanol industry, with more upside potential. However, the true value of a fuel-neutral, 95-RON performance standard is that the market will determine the correct balance between refining investments to produce the fuel at E10 or less, or the retail investments needed to produce the fuel at E15." He noted, however, that implementing 95-RON octane performance standard for new vehicles would be a significant shift in the fuel and vehicle market will require time and significant investment including changes to the refining systems, upgrades at retail stations, labeling, and other standards changes. To read his testimony, click here.
Meanwhile, Growth Energy's Emily Skor concluded that "Only with a stable RFS and with a significant boost in octane, coupled with a midlevel ethanol blend said that "while we support the move to higher octane fuels a 95 RON fuel could easily be met with today's premium gasoline, and there would be little to no incentive to move to biofuel blends above 10 percent. Additionally, we cannot assume that a modest increase in octane to 95 RON will be the necessary driver to continue to grow demand for American-made biofuels and for corn without the access to the market provided by the RFS. Only with a stable RFS and with a significant boost in octane, coupled with a midlevel ethanol blend, can these substantial benefits be achieved." In other words, the ethanol industry needs the 15-billion-gallon ethanol mandate to stay intact which maintains RIN values, and therefore, gives ethanol blends a chance to become a viable fuel in the marketplace. PMAA is concerned that this would only exacerbate the current RIN market chaos as long as the RFS is in place. PMAA is also concerned that implementing a higher-octane fuel will require considerable time and investment and cannot be implemented without considering the overall impact on the fuel and vehicle market.
Finally, Tim Columbus, General Counsel for NACS and SIGMA, in prepared testimony to the House Subcommittee on the Environment, indicated that they "consider an 'octane solution,' which will require vehicles to use fuel with a minimum of 95 RON after a date to be determined (presumably post-RFS 2022), to be a viable option to consider as part of RFS reform." However, as the new high compression engines hit the market, older vehicles will still need the traditional 87 AKI. In order for a smooth transition, Mr. Columbus argued that retailers need misfuelling liability protection given that some cars will require 95-RON while others could still run on the traditional 87 AKI. He also indicated that higher ethanol blends such as E15 will likely play a critical role in meeting the increased octane standard. To smoothly transition to higher ethanol blends to meet the new compression standards, he argued that EPA's fuel registration process needs to be streamlined and the 1 psi waiver of E10 needs to be eliminated. To read his testimony, click here.
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 PMAA is extremely sad to report the passing of former PMAA Chairman Lyle Henry Swatek of Lake Geneva, Wisconsin. He was 90.
Lyle Henry Swatek was born in Port Washington, Wisconsin on March 1, 1928 to the late Joseph and Ester (Rantz) Swatek. Swatek's father was the local Standard Oil agent in Port Washington, Wisconsin. He was initiated into the petroleum business early in life when he started working at his father's station at the age of 11. Swatek's career as an oil man was briefly interrupted by his two years of service in the U.S. Navy but continued when he returned home to Wisconsin and purchased his first service station. At the age of 21, he married Audrey Robel of Saukville, Wisconsin. Shortly after, he moved to Silver Lake, Wisconsin, and when a Shell franchise became available, he became a Shell-branded marketer in Silver Lake incorporating three other marketer businesses into Swatek Sales Corporation. He grew the corporation throughout Southeastern Wisconsin and Northern Illinois eventually encompassing branded locations with Unocal 76, Mobil, Citgo, and Marathon. Lyle Swatek's success in the petroleum business ultimately resulted in him serving as President for both the Wisconsin Petroleum Association and Chairman of the Petroleum Marketers Association of America (1988). Swatek also represented the interests of petroleum marketers in Washington, DC for many years.
Visitation will place at St. Francis de Sales Catholic Church (148 Main Street, Lake Geneva) on Tuesday, April 17, 2018, from 10:00 a.m. until 12:45 pm with a Mass of Christian Burial at 1:00 pm. Private interment will be at the Salem Mound Cemetery, Salem, Wisconsin. In lieu of flowers, the family requests that donations be made to the Kent R. Siegel Memorial Scholarship at USS Little Rock Association, Inc., (c/o Frank Berglas, 63 Barnes Road, Stamford, CT 06902-1201).
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