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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Your 2018 dues were mailed out this week, 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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House GOP Releases Comprehensive Tax Reform Plan
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Yesterday, House Republicans released a tax reform plan which would include the biggest cuts and changes in 30 years. The House plan would reduce the number of total individual rates from seven to four (12 percent, 25 percent and 35 percent) and the top rate would remain at 39.6 percent for high-income Americans. The corporate rate would be reduced from 35 to 20 percent while pass-through businesses' tax rate would be reduced to 25 percent. The majority of small businesses are organized as pass-throughs meaning that profits are passed on to the owner and reported on his/her individual tax return.
PMAA has argued for a competitive tax rate for pass-throughs and is currently reviewing the pass through provision.
Some of the highlights of the GOP Tax Reform Plan important to petroleum marketers include:
- Doubles the estate tax (death tax) exemption to roughly $11 million, from $5.49 million, and eventually repeals the estate tax altogether, phasing it out entirely in six years. PMAA supports repealing the death tax.
- Preserves the step-up in basis on property transferred during an estate settlement which is good news for petroleum marketers. Under current law, family members who inherit a business take the business at its value as of the date of the original owner's death. However, if the step-up in basis were eliminated, the family members would be required to pay capital gains taxes on the original owners' gains in the business. Due to the detrimental effects it would have on businesses, PMAA opposed any attempt to repeal the step-up in basis.
- Preserves the inventory accounting method, last in, first out (LIFO), which is good news for marketers. LIFO takes into account the costs of replacing inventory, thereby, giving a more accurate measure of the financial condition of the business and the economic income to which tax should apply. Repealing LIFO would force PMAA member companies currently using this method to report their LIFO reserves as income, resulting in a massive tax increase for small business petroleum marketers across the country.
- Increases Section 179 expensing limitation to $5 million and the phase-out amount would be increased to $20 million while modifying the definition of section 179 property to include qualified energy efficient heating and air-conditioning property would be effective for property acquired and placed in service after November 2, 2017.
- Preserves Section 1031 exchanges of like-kind property which is good news for petroleum marketers. Without the tax-deferral benefit that Section 1031 exchanges provide, small and medium sized businesses would not be as equipped to reinvest in their businesses and real estate values would decline.
- Eliminates the electric vehicle tax credit of up to $7,500 that's currently offered to buyers of vehicles such as the Tesla Model 3, Chevrolet Bolt and Nissan Leaf. Currently, this tax credit is available until 200,000 qualified EVs have been sold in the United States by each manufacturer, at which point the credit begins to phase out for that manufacturer. Currently, no manufacturers have been phased out yet.
Most of these bullet points listed above were addressed in a PMAA letter to Senate Finance Committee Chairman Orrin Hatch (R-UT) regarding his request for stakeholder comments on overhauling the tax code.
Republicans are hoping to move the bill, known as the "Tax Cuts and Jobs Act," quickly through the House. The House Ways and Means Committee is expected to take up the legislation next week. House Republicans are aiming to forward it on to the Senate later this month while Senate Republicans are working on their own plan they would like to release next week. Lawmakers are hoping to put a final comprehensive tax bill on President Trump's desk before Christmas.
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Employment Screening Trends and Pitfalls
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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.
Background Screening
Background checks can be useful to help employers make personnel decisions. An employer may, where appropriate, ask questions about an applicant's background or require a background check. But there are some risks involved. Implementing the following may help minimize those risks.
- Be sure to consult with your attorney, and review and comply with federal, state, and local laws regarding background checks, as many regulate this information. For example, the "Ban the Box" regulation limits the scope of verbal and/or application questions to help ensure people with criminal convictions have a fair chance to work. It may also define the timeframe during which background checks can be conducted.
- With the help of your attorney, create a process that clearly outlines the checks you order (e.g., motor vehicle records, credit checks, criminal checks, drug tests, etc.) and how this information will or won't be used in employment decisions.
- In all cases, make sure your actions are consistent but not rigid. Define your decision-making criteria but use good judgement in assessing a candidate's unique, individual circumstances. Treating candidates consistently helps reduce the potential for discrimination.
Social Media
There is no question that social media is changing the way businesses work. The use of social media in the hiring process is becoming more common and can provide a better picture of a potential candidate. But, a person's online postings could contain many pieces of information that may be considered protected. For example, even a brief search could reveal:
- Age
- Sex/Sexual Orientation
- Race/Color/National Origin/Religion
- Disability/Pregnancy/Medical Conditions
Once you review a candidate's online profile, a court will likely assume you are aware of that person's protected characteristics. If you choose to include a social media review as part of your hiring process, here are some best practices to help reduce your risks:
- Use information available only to the public at large. Do not ask for passwords or attempt to "friend" candidates in order to access private information.
- Develop a policy that clearly outlines permitted uses of the information, sites you review, etc.
- Wait to do your search until after you've met the candidate in person.
- Be consistent-conduct the same searches at the same point in the process for every candidate.
- Ask your attorney whether you should print or save screen shots as documentation if you see something that you use in your hiring decision.
- Consider the source. There are things like cyber bullying and imposter social media accounts. You may want to give the candidate a chance to explain objectionable content.
- Be aware of and comply with federal and state laws that apply.
Keeping up on the latest trends and pitfalls in employee screening is prudent to successful hiring and hiring practices. For more information specific to your situation and state, log in to the
Federated Employment Practices Network
(FEPN) or consult qualified legal counsel. To learn more about FEPN, contact your
local Federated marketing representative
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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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The proposed 2018 biofuel volumes for the RFS have been submitted by the EPA to the Office of Management and Budget (OMB), which puts the agency on track to issue the mandates by the November 30 deadline. The OMB reviews all proposed federal regulations and can recommend changes where necessary. The RFS proposed rule maintains the current 15-billion-gallon ethanol mandate for 2018 and reduces the current 311-million-gallon cellulosic biofuel volumetric blending mandate to 238 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.
In August, PMAA participated in an EPA public hearing on the RFS. PMAA Executive Committee member Vern Kelley (Kelley Fuels, Shakopee, Minnesota), who is a petroleum marketer and a corn farmer, highlighted to policymakers that very few existing UST system components have been certified to handle E10 plus blends. Kelley said that marketers have no practical way to demonstrate existing underground storage tank (UST) systems are compatible with ethanol blends greater than E10 - a key legal hurdle. Click here to read Kelley's testimony. Also testifying before the EPA was former PMAA Chair Matt Bjornson. Matt testified on behalf of the North Dakota Petroleum Marketers Association (NDPMA) which represents over 240 independent companies and co-operatives. Click here to read Matt's testimony.
The RFS has turned into the biggest political fight in town. After an uprising from Midwestern Senate Republicans 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 within the next three weeks in order to work out an agreement to reduce RIN values which are negatively impacting refiners and some independent petroleum marketers who are unable to take advantage of blending above 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 and set off a chain of events, resulting in a significant disruption of the nation's gasoline distribution and supply chain and skyrocketing prices at the pump. 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.
The battle is not over as PMAA plans to meet with the OMB to reduce the RFS's impact on small business petroleum marketers.
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The EPA ultralow sulfur diesel standard (ULSD) concluded an 8-year phase-in period in September 2014. The final stage in the program means that only 15-ppm dyed non-road diesel fuel and 15-ppm clear highway diesel fuel may be used. Some higher sulfur distillates remain for locomotive and marine engines as well as heating oil. The final phase-in made a few changes to diesel fuel product transfer document (PTD) notice and dispenser labels requirements that marketers must follow.
The regulatory changes primarily involved elimination of PTD language and dispenser labels for 500-ppm diesel fuel. However, new language was added for ECA 1000-ppm marine fuel along with a general requirement to include the sulfur content of the fuel on all PTD language, including heating oil delivery tickets- a practice most heating oil dealers already follow. Finally, the EPA 15ppm ULSD dispenser label is no longer required, but may be used voluntarily.
The following PTD language is required unless otherwise indicated. Please note that EPA approved a number of alternative language requirements for PTDs. If you are using the alternative language you may continue to do so.
EPA ULSD Product Transfer Documents Requirements:
PTD requirements apply on each occasion any person transfers custody or title to MVNRLM diesel fuel, heating oil, or ECA marine fuel except when such fuel is dispensed into motor vehicles or non-road engines, locomotives, marine diesel engines or C3 vessels.
- Dyed Heating Oil - Beginning June 1, 2007 and Thereafter (Including Delivery Tickets to Customers):
- Required on heating oil PTDs, shipping papers, bills of lading and delivery tickets anytime a person transfers custody or title of heating oil (including transfers to residential and wholesale purchaser-consumers):
"XXXX"* ppm sulfur (maximum) Heating Oil. Not for use in highway vehicles or engines or nonroad, locomotive, or marine engines."
*XXXX - fill in the applicable sulfur content or sulfur range; ex 15-PPM sulfur (maximum), 500-ppm sulfur (maximum), 1000-ppm sulfur maximum etc.
- ECA Marine Fuel - Beginning June 1, 2014 and Thereafter:
"1,000 ppm sulfur (maximum) ECA marine fuel. For use in Category 3 marine vessels only. Not for use in engines not installed on C3 marine vessels."
- Dyed 500-ppm Locomotive and Marine Diesel Fuel - Beginning June 1, 2010 and Thereafter:
"500 ppm sulfur (maximum) Dyed Low Sulfur Locomotive and Marine diesel fuel. Not for use in highway or other non-road vehicles and engines."
- Undyed 15-ppm Sulfur Diesel Fuel - Beginning June 1, 2006 and Thereafter:
"15 ppm sulfur (maximum) Undyed Ultra-Low Sulfur Diesel Fuel. For use in all diesel vehicles and engines."
- Dyed 15-ppm Sulfur Diesel Fuel - Beginning June 1, 2006 and Thereafter:
"15 ppm sulfur (maximum) Dyed Ultra-Low Sulfur Diesel Fuel. For use in all nonroad diesel engines. Not for use in highway vehicles or engines except for tax-exempt use in accordance with section 4082 of the Internal Revenue Code."
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Since 500-ppm diesel fuel for highway and non-road vehicles is no longer allowed under the ULSD program, the EPA eliminated the use of 500-ppm dispenser labels after September 30, 2014. In addition, the 15-ppm highway diesel fuel label was eliminated as of November 1, 2014 (the 15-ppm dyed diesel fuel dispenser label was discontinued in 2012). Marketers who wish to maintain the 15-ppm diesel fuel labels may do so voluntarily.
The following dispenser labels are no longer required after the applicable date:
- 15-ppm ULSD - No Longer Required After November 1, 2014:
"ULTRA-LOW SULFUR HIGHWAY DIESEL FUEL (15 ppm Sulfur Maximum)
Required for use in all highway diesel vehicles and engines.
Recommended for use in all diesel vehicles and engines."
The following dispenser labels are permanent and must be maintained:
- 500 ppm Locomotive and Marine Diesel Fuel - Beginning June 1, 2010 and Thereafter:
"LOW SULFUR LOCOMOTIVE AND MARINE DIESEL FUEL (500 ppm Sulfur Maximum)
WARNING
Federal law prohibits use in nonroad engines or in highway vehicles or engines."
- Heating Oil - Beginning June 1, 2007 and Thereafter:
"HEATING OIL (May exceed 500-ppm Sulfur)
WARNING
Federal Law Prohibits use in Highway Vehicles or Engines, or in non-road, locomotive or marine diesel engines. Its use may damage these diesel engines."
IMPORTANT!
The following IRS dispenser labels are still required:
- "DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE"
- "UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY PENATY FOR TAXABLE USE"
- "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE"
IMPORTANT!
It is important to remember that the sulfur content of heating oil remain unregulated under federal law. However, some states have already transitioned to 15-ppm heating oil while others plan to switch over in the next several years.
Got Questions? Contact Mark S. Morgan, PMAA Regulatory Counsel at:
mmorgan@pmaa.org
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PMAA Signs Joint Industry Letter on Maintaining Biodiesel Tax Credit at Blender Level
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Earlier this week, PMAA, along with like-minded groups, sent a letter to Senate Finance Committee Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) supporting efforts to extend the $1 per gallon biodiesel blenders' tax credit, and ultimately, phasing it out over five years. The letter also highlighted why moving the credit to the producer level would be harmful to petroleum marketers. The $1 per gallon biodiesel blender's tax credit has been part of U.S. energy tax policy since 2005, but expired on December 31, 2016. Click here to read the letter and here to send a letter to Congress in support of extending the biodiesel blender's tax credit.
On Wednesday, White House director of the National Economic Council Gary Cohn told moderate Republican and Democratic members of the Problem Solvers Caucus, that "they will have a chance to vote to hike the gas tax as part of an infrastructure package in early 2018." Rumors are that the President is considering 7 cents increase in the federal gasoline tax.
Transportation Secretary Elaine Chao reported this week that work on President Trump's $1 trillion infrastructure plan would have to wait until work on a tax overhaul is complete. The likelihood that a gas tax increase would happen next year are slim as conservatives would be reluctant to raise the gas tax during an election year.
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October 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 October 1 - 31, 2017 time frame:
Arkansas
: John Felton, Aaron Littlefield
California
: Michael Downs, Philip Dwelle
Connecticut
: Peter Aziz, Richard Bologna, Donald Mitchell, Howard Peterson, Sharon Peterson
Hawaii
: Edsel Eshima, Robert Fung, Richard Parry, Steve Wetter, Russell Whang, Jim Yates
Illinois
: Bill Fleischli
Kansas
: Ronald Bachman, L. J. Thompson
Louisiana
: Charlene Guidry, Anthony Lauro, Luther Lott Jr., Darrel McCartney, Tammy Smitherman
Minnesota
: Kevin Thoma
Montana
: Wes Burley
Nebraska
: Tim Keigher, Mark Whitehead
NECSEMA
: Richard Salinsky
NEFI
: Matthew Allen, Peter Aziz, Roberta Fagan, Howard Peterson, Sharon Peterson
New Jersey
: Clinton Crane, John Donohue, Edward Duffy, Steven Foulk, James Pierson, John Van Doren
New Mexico
: Judge A. Dobrient
North Carolina
: James Barnwell Jr., Harold Berry Jr., Thomas Berry, Brian Campbell, Dallas McQueen Campbell Jr., Louis Cox, Bill Daughtridge Jr., John Fuquay, Jimmy Garrell, Judson Pope III, Jerry Sparks Sr., John Hall Waddell
North Dakota
: Mike Rud
Ohio
: Robert Manning, Ohio Petroleum Marketers & CSA PAC
South Carolina
: Sam Bell
Tennessee
: Mark McBride
Utah
: Brad Randall
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The Officers, Executive Committee, and PMAA staff are pleased to welcome PMAA's newest Bronze Corporate Partner: Sunoco LP , (NYSE: SUN) is a growth-focused master limited partnership (MLP) operating one of the leading wholesale fuel distribution and marketing platforms in the U.S. with tremendous scale, diversity of supply and geography.
Sunoco distributes branded motor fuel to over 7,000 independent dealers and distributors. Sales teams market branded and un-branded fuels to retailers, wholesalers and commercial customers through our supply network which spans 30 states, including all east of the Mississippi River then westward through Arkansas, Louisiana, Oklahoma, New Mexico, Texas and Hawaii. Sunoco is proudly represented along high traffic toll roads in seven states.
Sunoco is the world's largest manufacturer and marketer of racing fuels, and the official fuel of NASCAR, INDY CAR and the NHRA.
To learn more about and partner with the iconic Sunoco brand, please contact us as follows:
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PMAA's Marketer Defense Fund wants to thank the following individuals for their contributions during the October 1- 31 timeframe:
Arizona
: Arizona Petroleum Marketers Association
Arkansas: Aaron Littlefield
California: Michael Downs
Colorado: Colorado Petroleum Marketers and Convenience Store Association
Connecticut: Robert Barrieau
Indiana: Indiana Petroleum Marketers and Convenience Store Association
Louisiana: Grady Gaubert, Darrel McCartney
Maryland: Adna Fulton
Michigan: David Coyne
Minnesota: Jay Cattoor, Kevin Thoma
Mississippi: Stanley Roberts
Missouri: Missouri Petroleum Marketers and Convenience Store Association
Nebraska: Tim Keigher, Mark Whitehead
NEFI: Peter Aziz
New Mexico: New Mexico Petroleum Marketers Association
North Dakota: North Dakota Petroleum Marketers Association
Oklahoma: Oklahoma Petroleum Marketers & Convenience Store Association
Oregon: Oregon Fuels Association
Tennessee: Emily LeRoy
Washington: Washington Oil Marketers Association
Wisconsin: Matt Hauser
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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At Worldpay, a PMAA Corporate Silver Partner and Vendor, our valued customers are our highest priority. We are committed and dedicated to providing trusted and reliable payments processing and share important information.
If you or one of your locations have a Verifone MX900 series pin pads, you need to read this Advisory Alert as soon as possible and follow the steps indicated. As the time of December 31, 2017 is nearing, this is another reminder so that merchants DO NOT GET FINED if they are not supporting the latest software updates that is available for your POS device. The latest update will support the 2-series bin requirement.
Worldpay is finding that many merchants have not made these updates because the reseller/VASC may charge a fee for updates. Please be sure to install these updates immediately as the MasterCare fines are very steep if a merchant is not supporting the 2-series bin.
Please read this document in its entirety here. Should you have any additional questions on this topic, please contact PMAA's Worldpay Executive Client Manager, Glenda Preen at 972.325.1801.
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The demand for renewable diesel fuel is expected to rise as California raises the Low Carbon Fuel Standard (LCFS) target for carbon intensity (CI) reductions in the coming years. Due to lower greenhouse gas emissions, renewable diesel has become increasingly popular.
Register now for the OPIS Renewable Diesel Webinar on November 15 at 2pm ET, and hear from our panel of experts on the current happenings in the renewable diesel market. During this free 90-minute webinar, sponsored by Renewable Energy Group, they will address a range of topics including:
- The current supply of renewable diesel in California
- Who the largest producers are and how quickly the industry will be able to meet rising demand
- How much of a price premium renewable diesel has over conventional and biodiesel fuel
- What role the Renewable Fuel Standard and LCFS credits play in reducing costs
- State requirements for handling and labeling the fuel
If you're active in the California fuel market, you can't afford to overlook renewable diesel. Register now for the OPIS Renewable Diesel Webinar on Wednesday, November 15.
For additional information or to discuss this in further detail, please contact Scott Berhang at (888) 301-2645 ext. 1966.
Renewable Energy Group is a PMAA Corporate Platinum Partner.
OPIS is a PMAA Corporate Bronze Partner.
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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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