OPMCA Connection
Keeping You Informed!


OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA STAFF

Candace McGinnis
Executive Director  
Candace@opmca4you.com 

Hannah May
Director of Member Services  
Hannah@opmca4you.com

OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2020-2021 Board of Directors

Kurtis Hutchinson, Chairman 
 Hutchinson Oil Company

Jerry Davidson
Pete's Corporation

Teresa Hollenbeck
Red Rock Distributing Company

John Netherton
Danielson Fuel Services

Jason Flinn
Flowers Oil Company

Rob Toth
Coffeyville Resource
  • Click Here to View all EMA Coronavirus Related Resources for Petroleum Marketers Including all Regulatory Reports

  • Click HERE to View the Latest Coronavirus Resources Provided NACS Relating to Convenience Stores as Essential Businesses
Friday, Jan. 15, 2021
  • 2021 Federal Motor Fuel Excise Tax Rates

  • Reminder: USDA Offers $22 Million in Grants to Marketers for Higher Blend Ethanol and Biodiesel Infrastructure

  • Update on TSA HAZMAT Endorsements

  • Voluntary Paid Leave Payroll Tax Credit Available Through March 31, 2021

  • Reminder: FMCSA Drug and Alcohol Clearinghouse Registration Portal Experiencing Technical Difficulties

  • Mandatory Annual OSHA Workplace Injury and Illness Posting Begins February 1st

  • DOL Releases Final Rule to Clarify Worker Status Under the FLSA

  • Special Invitation for EMA Marketer Members

  • Federated Insurance Complimentary Webinar
2021 Federal Motor Fuel Excise Tax Rates
EMA Contact: Mark S. Morgan, Regulatory Counsel mmorgan@emamerica.org


What’s New?

Oil Spill Liability Tax Extended - The federal Oil Spill Liability Tax (OSLT) set to expire on December 31, 2020 is extended through December 31, 2025. Refiners pay the $0.09 cents per barrel of crude oil tax and pass it down the distribution chain as a cost. OSLT is a cost and not a tax below the refinery gate.

Alternative Fuel Mixture Credit Extended - The federal Alternative Fuel Mixture Credit set to expire on December 31, 2020 is extended through December 31, 2021. The credit is 50 cents per gallon of alternative fuel used to produce a mixture containing at least 0.1 percent gasoline, diesel, or kerosene. Qualified alternative fuels are liquefied hydrogen, P-Series fuel, liquid fuel derived from coal through the Fischer-Tropsch process, and liquid fuel derived from biomass.

Expiration of COVID-19 Commercial Aviation Kerosene Tax Holiday - The 4.4 cpg federal excise tax for kerosene used in commercial aviation is reinstated on January 1, 2021.

Click here to download a detailed summary of the 2021 Federal Motor Fuel Excise Tax Rates. 


Reminder: USDA Offers $22 Million in Grants to Marketers for Higher Blend Ethanol and Biodiesel Infrastructure
The U.S. Department of Agriculture (USDA) announced it is reopening the application process for the Higher Blend Infrastructure Incentive Program (HBIIP) for marketers seeking grants to install or upgrade higher blend ethanol and/or biodiesel fueling infrastructure. The application period opened on December 21, 2020 and ends on January 19, 2021. The purpose of the HBIIP program is to increase the sales of E15 or higher ethanol blends biodiesel blends greater than five percent. The USDA is making $22 million available for both retail and wholesale higher blend infrastructure. HBIIP grants cover up to 50 percent of total eligible project costs up to three million dollars for equipment upgrades at retail fueling facilities, biodiesel distribution facilities, including biodiesel terminal operations and home heating oil distribution centers or equivalent entities. Eligible Project Costs are only those costs incurred through December 31, 2020 and that are directly related to the use and purposes of the HBIIP. The HBIIP application process is lengthy.

Applicants are encouraged to start the application process as early as possible before the 30-day period ends. Applications must be filed online by clicking on “To Apply” at: HBIIP Application.


Update on TSA HAZMAT Endorsements
The Transportation Security Administration (TSA) decided not to accept EMA’s request to extend the waiver allowing states to recognize expired hazardous material endorsements (HME) beyond December 31, 2020. However, the good news is TSA is allowing drivers a grace period of 180 days to renew expired HMEs so long as they start the renewal process (submit information for TSA background check) within 60 days of the date their HME expired. For drivers who are currently operating with an expired HME, the date from which to measure the 60-day and 180-day grace periods is December 31, 2020, the date the TSA waiver expires. This means drivers with expired HMEs must start the renewal process no later than March 1, 2021 and obtain the HME renewal no later than June 29, 2021. Drivers may continue to operate under an expired HME during the renewal process.

While the TSA grace periods for HME renewal are not binding on state drivers licensing agencies, the TSA believes all states operating under the waiver will adopt the 60-day and 180-day grace periods for HME renewal. The 60-day and 180-day grace periods apply only to HMEs expiring after March 1, 2020 but no later than December 31, 2020. Drivers should check with their state licensing agencies for any possible variances in the HME renewal process.

Voluntary Paid Leave Payroll Tax Credit Available Through March 31, 2021
Beginning April 1, 2020, the Families First Coronavirus Relief Act (FFCRA) required employers to pay sick leave and expanded medical and family leave to employees affected by the coronavirus. The mandate applied to companies with fewer than 500 employees and included partial exemptions for small companies with fewer than 50 employees. The FFCRA paid leave mandate ended on December 31, 2020. Employers are no longer required to provide paid sick leave and expanded family and medical leave. However, Section 286 of the Relief Bill ("Extension of Credits for Paid Sick and Family Leave") allows employers to take a payroll tax credit for providing FFCRA leave into the first quarter of 2021 for two purposes:


  • To recover costs for providing mandatory FFCRA leave in 2020 - If an employee took FFCRA-required leave in 2020, then the employer can take the appropriate tax credits in 2021; and


  • To recover costs providing voluntarily FFCRA Leave in Q1 of 2021 - If an employer elects, voluntarily, to provide paid leave to an employee for an FFCRA-qualifying reason in Q1 of 2021, then it can take payroll tax credits for providing such leave.


Employers who choose to voluntarily provide FFCRA leave between January 1, 2021, and March 31, 2021, and seek the tax credits, must keep accurate records and comply with limits on paid leave imposed under the original FFCRA. Those paid leave limitations (80 hours of emergency paid sick leave and twelve weeks of paid emergency family and medical leave) roll over to the period from January 1, 2021 through March 31, 2021 during which voluntary payments of FFCRA leave qualify for the tax credit. In other words, there is no new “bank” of FFCRA paid leave available to an employee during the voluntary extension period ending March 31, 2020. The payroll tax credit only applies to payments made for FFCRA benefits that the employee has left over after December 31, 2020. Employers will not receive tax credits for benefits provided in excess of statutory limits.

The amount of employee FFCRA leave eligibility subject to the tax credit also depends on which 12-month period an employer uses for the purpose of measuring availability of leave (calendar year, fiscal year, a 12-month period measured forward from use of FFCRA leave, or a rolling 12-month period measured backward from use of FFCRA leave).

EMA will provide additional information once the IRS publishes guidance on the tax credit. In the meantime, employers who choose to provide voluntary FFCRA payments should consult their accountant or tax preparation professional.

EMA Staff Contact: Mark S. Morgan Regulatory Counsel mmorgan@emamerica.org (703) 281-6600.


Reminder: FMCSA Drug and Alcohol Clearinghouse Registration Portal Experiencing Technical Difficulties
The Federal Motor Carrier Safety Administration (FMCSA) requires employers with CDL drivers to register with and use the agency’s Drug and Alcohol Clearinghouse to report, search and manage driver drug and alcohol records.

The deadline to sign up for the Clearinghouse: That means motor carriers or consortia/third party administrators must register with and check the Clearinghouse no later than January 5, 2021 to conduct the mandatory annual drug and alcohol record check for drivers employed as of January 6, 2020.

A number of marketers attempting to register online with the Clearinghouse over the past several weeks have been unsuccessful. In addition, the Clearinghouse hotline is not taking any calls. EMA brought the registration difficulties to the attention of the FMCSA and is seeking guidance on potential liability for noncompliance for those who have been unable to register thus far.

EMA is awaiting feedback from the FMCSA on these issues and will report further when new information is available. In the meantime, continue efforts to register as the backlog of registrations are dealt with and the site is back up and running.

EMA Staff Contact: Mark S. Morgan Regulatory Counsel mmorgan@emamerica.org (703) 281-6600.


Mandatory Annual OSHA Workplace Injury and Illness Posting Begins February 1st
The 2020 posting cycle for OSHA’s workplace injury and illness reporting rule begins on February 1, 2021 and runs through April 30, 2021. The OSHA injury and illness recording and posting requirements apply to most establishments (workplaces) with more than 10 employees. OSHA requires employers to record and post all work-related injuries occurring during the previous calendar year.

Please click here to see the following list which identifies petroleum marketing establishments that must comply with OSHA injury and illness reporting and recordkeeping.


DOL Releases Final Rule to Clarify Worker Status Under the FLSA
Last Wednesday, the Department of Labor (DOL) announced a final rule clarifying the standard for employee versus independent contractor under the Fair Labor Standards Act (FLSA). The effective date of the final rule is March 8, 2021.

Independent contractors are not entitled to the federal minimum wage and overtime pay that covered employees receive under the FLSA.

According to the DOL Wage and Hour Division, the final rule:


  • Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor) or is economically dependent on a potential employer for work (FLSA employee).

  • Identifies and explains two “core factors” that are most probative to the question of whether a worker is economically dependent on someone else’s business or is in business for him or herself:
  • The nature and degree of control over the work.
  • The worker’s opportunity for profit or loss based on initiative and/or investment.

  • Identifies three other factors that may serve as additional guideposts in the analysis, particularly when the two core factors do not point to the same classification. The factors are:
  • The amount of skill required for the work.
  • The degree of permanence of the working relationship between the worker and the potential employer.
  • Whether the work is part of an integrated unit of production.

  • The actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.

  • Provides six fact-specific examples applying the factors.


This “midnight” rule could be frozen from taking effect in a memo on Inauguration Day by the incoming Administration. If so, the DOL could allow the rule to take effect, at least temporarily, or rely on an outside party to challenge it in court. The Department could also reopen the rulemaking.

The Small Business Legislative Council (SBLC), of which the Energy Marketers of America (EMA) is a contributing board member, plans to release a more detailed outline of the rule.


Special Invitation for EMA Marketer Members
January 19th (2:00pm CDT) 
Hot Topic Webinar  
The Meridian Method™ of Building Legacy 
 
In our personal lives, we want to be remembered as the loving spouse or parent and most people know how to do that. When it comes to the company, your team, or your position, you likely want to leave behind a functioning organization positioned to do even better after you are gone. Join us as we walk through the process to do just that.
 

To help EMA marketer members get ideas on how to strengthen their legacy, we are offering this complimentary webinar. To register, please click on this link:




If you have any questions, please call Lesley Merlino or Kayla Duba at our EMA Service Center.


Lesley Merlino
Family Business Specialist
Meridian Associates, Inc.
Direct Line: 512-994-5905
www.AskMeridian.com            


Kayla Duba
Family Business Specialist
Meridian Associates, Inc.
Direct Line: 817-609-3898
Federated Insurance Complimentary Webinar