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| February 22-23 |
2018 PACE Show (Thursday- Friday)
PACEshow.com |
| June 14, 2018 |
2018 GLW Golf Outing |
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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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Thank You to NPCA's Partners
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EPA Releases 2018 Final RFS Blending Requirements
The RFS Fight is Not Over
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Yesterday, the EPA finalized its 2018 biofuel volumes for the RFS. The RFS rule maintains the current 15-billion-gallon ethanol mandate for 2018 and reduces the current 311-million-gallon cellulosic biofuel volumetric blending mandate to 288 million gallons for 2018. This mandate covers fuel considered the "next generation" ethanol and maintains the current 2018 biomass-based diesel volumetric blending mandate of 2.1 billion gallons for 2019. This mandate covers biodiesel most often made from soybeans, vegetable fats and animal fats.
After an uprising from Midwestern Senators regarding potential reductions in biofuel quotas for the RFS, EPA Administrator Scott Pruitt responded in a letter assuring them that he would no longer consider cutting biofuel quotas in the RFS. Several Senators outside of the Midwest responded with a letter to President Trump insisting that he meet them as well as the Midwestern Senators to work out an agreement to reduce RIN values which are negatively impacting refiners and some small business petroleum marketers who are unable to take advantage of blending at the terminal rack.
PMAA is disappointed with the EPA Administrator's letter to Midwestern Senators because higher ethanol blends may lead to a de facto E15 mandate which will place petroleum marketers in a precarious situation. On November 9, PMAA sent a letter to Senate Environment and Public Works Committee Chairman John Barrasso regarding concerns over the ethanol mandate. In the letter, PMAA highlights that the vast majority of the nation's retail outlets, 95 percent of which are owned by independent petroleum marketing businesses, cannot legally store and dispense blends of gasoline over 10 percent ethanol. Existing equipment is certified for a maximum E10 blend. Currently, there is no viable way for UST system operators to demonstrate that existing equipment is compatible with gasoline blends over E10.
Today, chairman of the Senate Committee on Environment and Public Works John Barrasso (R-WY), sent a letter to EPA Administrator Scott Pruitt calling for the completion of overdue studies on the impact of the RFS on the environment. In the letter, Sen. Barrasso notes that "under section 211(v) of the Clean Air Act, EPA was required, by May 19, 2009, to study whether the RFS "will adversely impact air quality." To date, EPA has never completed that study." Furthermore, Sen. Barrasso references testimony from Jonathan Lewis of the Clean Air Task Force in which he stated that EPA's own data shows that the additional production of corn ethanol under the RFS "has higher lifecycle greenhouse gas emissions than gasoline."
Although PMAA is disappointed with the EPA's decision, it's possible that the EPA could still use its reset authority to lower the ethanol mandate as soon as next year. In addition to finalizing the biofuel volumes under the RFS yesterday, the EPA published a 14-page document titled "Periodic Reviews for the Renewable Fuel Standard Program" essentially stating that the agency has satisfied a statutory requirement to conduct periodic reviews of biofuel production technologies, the feasibility of meeting RFS standards and other facets of the program. Federal law requires the EPA to review the implementation of the RFS program before it can make changes to the overall biofuel volume requirements. Congress can also fix the broken RFS through legislation. PMAA will continue to push for logical biofuel quotas under the RFS.
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Your 2018 dues have been mailed out, you will find our new Partner Program enclosed. This is a great way to support your association with a one-time annual contribution! Contact Katie with any questions, 402-474-6691 or email,
katie@npcainc.com
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Senate Likely to Vote on Tax Reform Legislation Today
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On Wednesday, the Senate voted to begin formal debate on a tax overhaul bill and a vote is expected later today. Although the GOP's tax bill gained momentum yesterday morning, some GOP Senators have demanded that changes are needed for the bill to avoid a large deficit increase. Other Senators are holding out until changes are made to accommodate pass through businesses. Specifically, Senator Ron Johnson (R-WI) said he was holding out on supporting the bill, and was looking to add an amendment that would raise the pass-through deduction to about 25 percent, which would be paid for by eliminating the corporate deduction for state and local taxes. Sen. Susan Collins (R-ME) said yesterday morning that it "would be very difficult" to support the Senate tax bill unless Congress agrees to preserve an individual deduction for state and local property taxes and passes separate legislation to support the individual health care market. Sens. John McCain (R-AZ) and Lisa Murkowski (R-AK) were holdouts on the bill until Thursday when they announced their support for the measure. Included in the Senate version is a provision which would allow for oil and gas development of the Arctic National Wildlife Refuge (ANWR). Republicans have a slim majority in the Senate, and can only afford to lose 2 of its 52 members to pass a bill without Democratic support.
The House passed its version of a tax reform bill earlier this month and is waiting to see if the Senate passes its own bill. If the Senate can pass its version of the bill, then each chamber will need to reconcile differences. That bill would then need to be approved by both chambers before heading to Trump's desk. Lawmakers are hoping to put a final comprehensive tax bill on President Trump's desk before Christmas.
The Small Business Legislative Council (SBLC) recently released a comparison summary of the House passed tax reform package and the Senate Finance Committee passed version. However, the Senate's version is likely to change as amendments are being voted on today ahead of the final vote. Click here to read the analysis. PMAA sits on the SBLC Board of Directors and provides input on tax related issues facing petroleum marketers. PMAA will keep everyone updated on the issue as we learn more.
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The 2018 PACEshow, the premier Midwest petroleum and convenience exhibition will be held Thursday, February 22nd and Friday, February 23rd in Kansas City, MO.
All successful tradeshows have 2 key components - the number and quality of exhibitors and the number and quality of attendees.As a result:
►Exhibitors. All NPCA associate members should exhibit at the 2018 PACEshow. Your competition will be there, shouldn't you be there to talk to your current clients, meet new clients and see what your competition is up to??? You can bet your competition will be doing all this and more.
►Exhibitors. Please encourage all of your vendors to exhibit at the 2018 PACEshow.
►Attendees. Please mark your calendars and make sure you attend and actively participate in the 2018 PACEshow.
►Attendees. Please encourage all of your key employees to attend and actively participate in the 2018 PACEshow.
Register today at
www.PACEshow.com.
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Recently, the EPA denied petitions for rulemaking seeking to move the point of obligation under the Renewable Fuel Standard (RFS) from refiners to position holders at the terminal rack. The petitions for rulemaking were filed by merchant refiners who do not blend renewable fuel but instead rely on the volatile and costly RIN market to purchase credits to meet their annual volumetric blending mandates under the RFS.
The petitioners argued that position holders at the terminal rack, many of whom are retailers themselves, are using the huge profits gained from RIN sales to undercut prices at the pump. In addition, they say the combination of high RIN costs and below market pricing at the pump are threatening the long- term viability of their operations. Moving the point of obligation downstream to position holders at the terminal rack would eliminate their RIN costs and make prices more competitive at the pump, the petitioners argued.
The petitioners cause gained momentum after the 2016 presidential election brought the Trump Administration to power along with its close political ties to one of the merchant refiners asking for the move. In the end, those ties didn't pan out in the face of strong opposition from renewable fuel producers, major integrated oil companies and large chain retailers which urged the EPA to maintain the point of obligation at the refiner level.
Initially, PMAA supported keeping the point of obligation at the refiner level but changed to a neutral position to reflect the differing opinions on the issue among petroleum marketers.
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Congress must reach a deal by December 8 to keep the government funded and avoid a government shutdown. It is likely that Congress will need to pass another stopgap spending bill that delays for two more weeks some difficult choices on funding the government and on many other issues that lawmakers are scrambling to complete before the end of the year. Budget negotiations are coming at a crucial time, as Republican lawmakers are still desperately trying to pass a comprehensive tax reform bill that Democrats strongly oppose. As the deadline to avoid a government shutdown gets closer, Democrats have added leverage for their end-of-year priorities because under Senate rules their votes are necessary to cut off unlimited debate.
The original plan had been to pass a disaster relief measure combined with a budget deal and two-week continuation of current spending levels, according to a Democratic aide. Lawmakers would then work on an omnibus spending bill. However, the timetable is now in doubt as time is running out to reach an agreement on a trillion-dollar, all-inclusive spending package before Congress recesses for the Christmas break. There is momentum to extend current spending levels into mid-to-late January when Congress will likely need to raise the federal debt ceiling. Republican defense hawks have made it clear that they will not support a longer stopgap spending bill, known as a continuing resolution, that would extend funding into January or February without a significant increase in the $549 billion cap for defense spending.
Democrats are seeking equal increases for non-defense spending agencies. They are divided over walking away from a budget deal that doesn't include a provision that provides permanent legal status for some people who were brought into the U.S. illegally as children as part of the deal, something most Republicans are resisting. Lawmakers must also decide whether to include a renewal of insurance subsidies under Obamacare. Although the two sides are far apart in negotiations, both sides want to include additional funding for hurricane disaster relief for Texas, Florida and Puerto Rico. However, the funding amount is open to debate.
The bottom line is that a long-term deal is highly unlikely, so Congress will likely pass a short-term deal.
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PMAA's Marketer Defense Fund wants to thank the following individuals for their contributions during the November 1- 30 timeframe:
New York: Jim Buhrmaster
North Carolina: J. Banks Garrison Jr.
Ohio: Tony Schafer
Oregon: Sam Byrnes
Tennessee: Rob Jewell, Tennessee Fuel & Convenience Store Association, David Willoughby
Wisconsin: Barth Zurbuchen
Corporate donations are acceptable. MDF funds have been used for various studies, litigation and disaster relief dedicated to strengthening our lobbying efforts on Capitol Hill. Click here to donate to the PMAA MDF.
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November 2017 PMAA Small Business Committee (SBC) PAC Contributions
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PAC Co-Chairs Brad Bell and Tim Keigher are grateful for the PMAA Small Business Committee (SBC) PAC contributions from the following individuals during the November 1-30, 2017 time frame:
Arkansas
: Paul Cash, Steven Ferren, Mallory Nimocks
Mississippi: Drew Bryant, David Burns, Michael Dees, John Fair, William Kitchens Sr., Richard Mayers, Charles Morris, Eric Prince, Perry Rackley, Charles Sansing, Dan Smith, Sam Sumrall
New Mexico: Alan Franken
New York: Brandon Smith, Dean Smith
Tennessee: Jonathan Edwards, Rob Jewell, David Willoughby
Virginia: Angus Hines Jr., Hugh McCormick III, John Phillips
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PMAA Corporate Platinum Partner Spotlight Featuring: Renewable Energy Group, Inc.
Alternative Fuels Good for Business at California Truck Stop
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It's rare to see the diesel islands at Fontana Truck Stop Center sitting idle.
The busy truck stop has a great location, sitting in a major trucking hub teeming with traffic thanks to the large industrial presence in the area and two interstates leading to and from Los Angeles.
But there's also lots of competition from other travel centers. Fontana Truck Stop Center has found that a good way to differentiate themselves from other locations is by offering renewable fuels, including biodiesel blends and a blend of biodiesel and renewable hydrocarbon diesel.
One of the truck stop's owners says the fuels help them attract drivers, earn better margins and meet sustainability demands. Learn more in this case study.
For additional information about Renewable Energy Group, Inc., please visit or contact Troy Schoen.
Renewable Energy Group is a PMAA Corporate Platinum Partner.
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Member Associations Celebrating Milestones
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We want to extend our congratulations to the following Member Associations who celebrated anniversary milestones in 2017:
45 Years
Minnesota Petroleum Marketers Association
35 Years
Arkansas Oil Marketers Association, Inc.
Idaho Petroleum Marketers and Convenience Store Association
Montana Petroleum Marketers and Convenience Store Association
Nevada Petroleum Marketers and Convenience Store Association
New Mexico Petroleum Marketers Association
Utah Petroleum Marketers and Retailers Association
Washington Oil Marketers Association
Western Petroleum Marketers Association
30 Years
Pennsylvania Petroleum Association
Tennessee Fuel and Convenience Store Association
Thank you and your members for supporting the petroleum marketing industry.
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Red Flags: What to Look for in an Interview
There are plenty of strategy sites out there for job seekers wanting to get off on the right foot and create a "BEST" first impression. If all goes well, this initial meeting could be the start of a solid professional relationship, so candidates are encouraged to get plenty of rest, be prepared, look their best, and act their best.
Unfortunately, every hiring manager can tell you painful stories about candidates who weren't just a little rough around the edges, but downright tattered, figuratively speaking.
We all can get a little nervous or uncomfortable in interview situations, but some candidates were simply not prepared or even barely conscious.
To read the article in its entirety, please view here. Please note that the general information provided is not a substitute for legal advice. Please consult with your legal counsel regarding these topics and other general employment questions.
LaborChex, a PMAA Vendor who has been serving clients nationwide since 1991, provides a program of background checks for PMAA members. For more information and to discuss your needs, please review PMAA's current program, email PMAA's Account Consultant Ricky Rayborn or call him directly at 601.832.2174.There is a lot of discussion around what will happen with the tax code in the coming months. If there are no changes, Bonus Depreciation limits are scheduled to change effective January 2018. The tax strategy applies to total equipment purchases between $500,000 and $2 million in a year. The current provision allows 50 percent of this amount to be deducted in the current year. In 2018, this amount will drop to 40 percent, and 30 percent in 2019 based on the current rules.
For a business in a 40 percent tax bracket spending $2 million in capital equipment, the difference could be over $50,000 in first year tax benefits. If the tax act passes as currently configured, after tax costs could increase more substantially.
For further information, please contact Richard Browne, Patriot Capital at 404-977-1251.
Patriot Capital is a PMAA Corporate Gold Partner.
Patriot Capital does not provide tax advice, please consult your tax professional for advice related to your specific situation.
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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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