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HOUSE COMMITTEES
TACKLE HIGHWAY REAUTHORIZATION BILL
Wetlines Study Included
Very early this morning, the House Transportation and
Infrastructure Committee approved the “American Energy &
Infrastructure Jobs Act” (H.R. 7) by a vote of 29 - 24. The
five-year $260 billion surface transportation bill would be
paid by tapping royalties from oil and gas drilling on
public lands and federal waters and would cut some
transportation programs to pay for the reauthorization.
However, oil and gas drilling is a contentious congressional
issue and may not make it into the final bill when the House
and Senate reconcile differences. The Congressional Budget
Office (CBO) projected this week that the trust fund would
be insolvent by 2013 assuming current spending levels.
Meanwhile, the House Ways and Means Committee also held a
markup of their portion of the Highway reauthorization bill
today. The bill entitled, the “American Energy and
Infrastructure Jobs Financing Act of 2012, (H.R. 3864) would
reauthorize through September 30, 2016 expenditure authority
for the Highway Trust Fund (HTF) and the .001
cents-per-gallon leaking underground storage tank tax.
Additionally, the current the 18.3 cents-per-gallon gasoline
tax and the 24.4 cents-per-gallon diesel tax would be
extended through September 30, 2018.
Wetlines
PMAA and a few coalition members were successful in
including a wetlines study and cost benefit analysis which
would require the Secretary of Transportation to coordinate
with an independent non-partisan organization before the
Department of Transportation’s (DOT) proposed wetlines rule
can be finalized. Late last year, PMAA and coalition members
met with House Transportation Committee members expressing
our concerns with DOT’s proposed wetlines rule and urged
committee members to include language in the Highway
reauthorization bill that would require an independent study
on wetlines including a cost benefit analysis. PMAA argued
that the DOT failed to justify the need for wetlines
retrofit because DOT used incorrect incident data which
resulted in a seriously flawed regulatory cost benefit
analysis. Although this is good news for petroleum
marketers, the fight is not over. The House will need to
reconcile differences with the Senate, and there is no
guarantee that the highway reauthorization bill will be
signed into law this year.
Commercialization of Rest Areas
PMAA also continues to urge Congress to oppose any attempt
to commercialize rest stops. There is some language in H.R.
7 that would allow expanded tourism advertising, ATM
placements, lottery machine access and corporate
sponsorships at rest areas. PMAA is working with the
Partnership to Save Highway Communities to ensure that food
and fuel cannot be sold at rest areas when the House and
Senate meet to reconcile differences.
Hours-of-Service
Included in H.R. 7 is a section which would require an
Hours-of-Service (HOS) study to be completed by March 31,
2013. Until the study is completed, the 2008 HOS rule would
remain in effect which would void the recent HOS rule from
Dec. 27, 2011 that requires a thirty minute break period for
drivers, restricts and limits the 34-hour restart provision,
and imposes new fines for violations.
Truck Weight Limits
H.R. 7 also included a provision that would increase the
weight of trucks allowed on interstate highways from 80,000
to 97,000 pounds. The provision essentially eliminated an
inequitable government regulation permitting six-axle trucks
weighing up to 97,000 pounds to travel on some states’
interstate highways and not others. In 27 states, trucks up
to 100,000 pounds can travel on interstate highways, but in
some states, trucks weighing more than 80,000 pounds must
either unload cargo or travel to through secondary roads
across small towns. While the measure was included in the
initial legislation, an amendment by Rep. Lou Barletta
(R-PA) that was approved by the Transportation Committee
repealed the truck weight limit provision and now calls for
a DOT study on the issue.
Funding Mechanism Could Potentially Impact Marketers
in the Senate Proposal
Meanwhile, the Senate Environment and Public Works
Committee’s highway bill would reauthorize programs for two
years and totals $109 billion. Portions of the Senate
version were passed by the Banking Committee earlier in the
week while the Senate Finance Committee is scheduled to meet
next week to find at least $13 billion to close the funding
gap between the bill’s cost and the projected revenue from
motor fuels excise taxes. One of the proposals to close the
funding gap includes a transfer of $3 billion from the
Leaking Underground Storage Tank (LUST) Trust Fund to help
finance the highway infrastructure bill. While PMAA agrees
that Congress needs to fund a long-term extension of highway
infrastructure programs, PMAA adamantly opposes any proposal
to remove vital funds which support important UST related
programs.
Last month, PMAA
wrote to Senate Finance Committee Chairman Max Baucus
(D-MT) urging him to find other ways to pay for the highway
bill without raiding the LUST fund. PMAA argues that the
LUST Fund should be used solely to support UST leak
prevention and remediation programs. The transfer of $3
billion from the fund would cripple important programs and
ultimately harm marketing companies who have paid the tax
and built the fund over the past 25 years.
Senate Majority Leader Harry Reid (D-NV) indicated that the
Senate will start debating the transportation bill late next
week and extend the debate into the following week. Since
the differences between the House and Senate vary greatly
regarding highway bill reauthorization, it’s unclear whether
a comprehensive bill will emerge before March 31, 2012 when
the current highway law expires.
SENATOR INTRODUCES LEGISLATION TO
EXPEDITE KEYSTONE XL PIPELINE
On Monday Senator John Hoeven (R-ND)
introduced legislation which would expedite the construction
of the Keystone XL pipeline by granting Congress the
authority to move the project forward without the
President’s consent. Citing Congress’s authority enumerated
in the Commerce Clause of the U.S. Constitution, Article 1,
Section 8, Senator Hoeven, along with Senators David Vitter
(R-LA), Richard Lugar (R-IN) and 42 other Senators
introduced the legislation to allow work to begin
immediately on the pipeline. Senator Joe Manchin (D-WV), was
the lone democrat who signed onto the bill. The legislation
will give the Nebraska state government time to find an
alternative route through the state.
Meanwhile, Rep. Ted Poe (R-TX)
introduced a pro-Keystone bill last week. Rep. Poe’s bill is
similar to Senator Hoeven’s bill. H.R. 3811, “The Keystone
for A Secure Tomorrow Act (K-FAST),” has 54 House
cosponsors. While H.R. 3811 is likely to pass the House, it
faces an uncertain future in the Senate. Speaker John
Boehner (R-OH) has indicated that he’s open to attaching the
pro-Keystone bill to the Highway reauthorization bill which
Congress will consider next month.
Approval of the Keystone XL pipeline
would greatly enhance America’s energy security. According
to experts, the proposed pipeline could bring up to four
million barrels of Canadian crude oil per day by 2020 which
is twice what the U.S. is currently importing from the
Persian Gulf. Most labor unions, along with API and the U.S.
Chamber of Commerce, support the Keystone XL Pipeline.
PMAA was disappointed in the
President’s recent decision to deny the permit and will
continue to supports efforts in the House and Senate to have
the pipeline approved as soon as possible. Senator Hoeven
and Rep. Poe’s bill will help create thousands of jobs and
will bring needed oil supplies to the Gulf of Mexico. To
send a letter to your members of Congress in support of
these bills, please go to this
link.
EPA EXCLUDES PALM OIL FROM RFS
Last week, the
U.S. EPA omitted palm oil from the renewable fuel standard (RFS)
citing its findings that palm oil did not meet the minimum
20 percent lifecycle CO2 reduction threshold needed to
qualify as renewable fuel under the RFS program. Palm oil is
used to produce biodiesel and renewable diesel and most
notably comes from Malaysia and Indonesia. EPA found that
the lifecycle CO2 emissions reductions for biodiesel
produced from palm oil had a 17 percent CO2 reduction and
renewable diesel had an 11 percent reduction compared to the
baseline petroleum diesel fuel they replace. The agency’s
findings were based on a study in conjunction with Iowa
State University.
FDA AGREES TO
INCLUDE TIME OF INSPECTION
According to a letter dated February 1, 2012, which was sent
to National Association of Tobacco Outlets (NATO), the FDA’s
Center for Tobacco Products will begin including in Warning
Letters the time of day when retail compliance check
inspections occur. On January 16, 2012, NATO sent a letter
to the FDA’s Center for Tobacco Products requesting that
Warning Letters include the time of day that retail
compliance inspections take place. This information will be
helpful to retailers in determining which employees were
working at the time of the inspection.
REGULATORY REPORT
This week PMAA published a Regulatory Report titled,”2012
Federal Motor Fuel Excise Tax Rates and Renewable Fuel
Credits”. Please contact Brandon Wright at 703-351-8000
or via email at
bwright@pmaa.org for a copy of the Regulatory Report.
PMAA MEMBERS
PROFIT THROUGH RISK MANAGEMENT DESIGNATED RISK MANAGER
SEMINAR OFFERED MARCH 26-28, 2012
Federated's Designated Risk Manager Training Program was
developed to target specific risk management concerns for
the petroleum transportation and convenience store
industries. Companies that are the most successful
controlling losses have designated a key person as their
risk manager. This person is supported by top management and
is both responsible and accountable for identifying loss
exposures and implementing risk management solutions.
Through PMAA's relationship with Federated Insurance, there
is no charge to attend this training and you do not have to
be a current Federated client. However, attendees are
responsible for air and ground transportation and lodging to
and from Owatonna, Minnesota. Several of PMAA's members have
attended in the past and can give referrals on the course
content. According to Andrew Woodard, Vice President of
Elliott Oil Company in Ottumwa, Iowa: "The seminar was very
professional and organized. On behalf of Elliott Oil
Company, I would like to thank Federated for providing this
seminar to our industry."
The class is
limited to 20 attendees and the registration cutoff date is
February 24. To reserve your spot in the upcoming
session, or for answers to any questions you may have,
contact Royetta Spurgeon
at Federated, 800.533.0472 extension 455-5604.
JANUARY 2012
PMAA MDF CONTRIBUTORS
PMAA’s Marketer Defense Fund wants to thank the following
individuals for their contributions during the January 1- 31
timeframe:
Arizona: Arizona Petroleum Marketers Association
California: Matt Cullen
Colorado: Al Butler, Colorado Petroleum Marketers and
Convenience Store Association
Idaho: Idaho Petroleum Marketers and Convenience
Store Association
Indiana: Indiana Petroleum Marketers and Convenience
Store Association
Kansas: Petroleum Marketers and Convenience Store
Association of Kansas
Massachusetts: Edward C. Hough
Mississippi: Kirk Dickerson
Missouri: Clark Houghton
Montana: Frank Barnes, Montana Petroleum Marketers
and Convenience Store Association
Nevada: Nevada Petroleum Marketers and Convenience
Store Association
New Mexico: New Mexico Petroleum Marketers
Association
New York: David Tarsa
North Dakota: North Dakota Petroleum Marketers
Association
Oregon: Oregon Petroleum Association
Pennsylvania: Scott McCorry, Steven J. Oehlert
Tennessee: Mark McBride, Tennessee Fuel and
Convenience Store Association
Washington: Washington Oil Marketers Association
West Virginia: Art Hartley
Wyoming: Wyoming Petroleum Marketers and Convenience
Store Association
Corporate donations are acceptable. The monies raised for
MDF are used for special projects, personnel and materials
dedicated to strengthening our lobbying efforts on Capitol
Hill.
REGISTRATION IS NOW OPEN FOR PMAA’S
WASHINGTON CONFERENCE AND DAY ON THE HILL SCHEDULED FOR MAY
PMAA’s 2012 annual Washington Conference and Day on the Hill
will be held in Washington, DC from May 16-18. Our industry
continues to have dozens of important legislative and
regulatory issues to discuss with members of Congress and
the Day on the Hill continues to be the primary focus of
this conference.
The meeting will begin with an issues briefing and committee
meetings on the afternoon of May 16th followed by a welcome
reception including our PAC silent auction fundraiser. On
the morning of May 17th, there will be another issues
briefing if you did not arrive in time for the first one.
Marketers and association executives will then head to
Capitol Hill for visits with their Congressional
delegations. Please be sure to make these appointments at
your earliest convenience. There will be a hospitality suite
and luncheon on the Hill. On the evening of May 18th, we
will honor our new PMAA Chair, Stanley Roberts. Our
conference will conclude after the PMAA Board of Directors
meet on May 18th following regional meetings.
A complete
Conference Schedule and
Hotel Information is available. If you plan on attending
PMAA’s Annual Washington Conference and Day on the Hill, now
is the time to make your room reservation as we are nearly
sold out. We have two hundred members who have reserved
rooms in our block on our peak night! Please note that we
will have an overflow hotel option once we are completely
sold out at The Washington Court.
Please make your plans now to attend. See you in DC in the
spring!
PMAA MEMBER SERVICES SPOTLIGHT FEATURING:
WORLDPAY™
Information
from WorldPay™
PMAA’s Partner
and Endorsed Vendor WorldPay would like to share their new
Chargeback Management Tool which will be rolled out to
all their customers by February 14, 2012. It will be a time
saver for you and the card networks.
Please feel free to contact
WorldPay
or PMAA Customer Service at 877.862.9195 for any additional
information you may require on any of their petroleum
solutions or to discuss these changes in greater detail.
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