Sponsored by:
Meridian Associates
who generously supports
PMAA's work in our Nation's Capital.

PMAA's weekly update on important national industry issues.

 
PMAA's Weekly Review - March 6, 2015  [WR-15-10]

 

 

In This Issue:
 

PMAA SUBMITS COMMENTS OPPOSING INCREASE IN FMCSA MINIMUM INSURANCE COVERAGE

 

PMAA MEETS WITH CFTC COMMISSIONER

 

HOUSE ENERGY SUBCOMMITTEE EXAMINES OIL MARKETS

 

SENATE FAILS TO OVERRIDE PRESIDENT’S KEYSTONE XL PIPELINE VETO

 

PMAA’S WASHINGTON CONFERENCE 2015 SILENT AUCTION

 

FEBRUARY 2015 PMAA SMALL BUSINESS COMMITTEE (SBC) PAC CONTRIBUTIONS

 

PMAA MEMBERS PROFIT THROUGH RISK MANAGEMENT ACADEMY SEMINAR OFFERED APRIL 20-22, 2015

 

PMAA MDF CONTRIBUTORS FOR FEBRUARY 2015

 

DEFENDING AGAINST “BACKOFF” MALWARE WEBINAR ON MARCH 26

 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: LABORCHEX
 

 
 

 
 

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Telephone:
703-351-8000

Petroleum Marketers Association of America

(PMAA)

1901 North Fort Myer Drive

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Arlington, Virginia 22209

PMAA SUBMITS COMMENTS OPPOSING INCREASE IN FMCSA MINIMUM INSURANCE COVERAGE

PMAA submitted written comments this week opposing any increase by the Federal Motor Carrier Safety Administration (FMCSA) to raise the minimum level of financial responsibility (insurance coverage) for commercial trucks including petroleum cargo tank vehicles. FMCSA minimum financial responsibility (FR) applies to both intrastate and interstate petroleum transporters. The rule is important to petroleum marketers because it could raise the cost of cargo tank vehicle insurance coverage between 60 and 80 percent. The FMCSA currently requires petroleum marketers to show a minimum of five million dollars in FR for cargo tank vehicles. The FMCSA is concerned that the current FR requirements are outdated and no longer sufficient to cover total liability in the event of a catastrophic crash. The minimum FR could rise to $10 million or more if the FMCSA moves forward. A recent federal report to Congress in 2014 found that less than one percent of crashes involving commercial motor vehicles result in damages that exceed minimum FR levels.

PMAA argued in written comments that the FMCSA could not justify an increase in minimum FR based on the less than one percent shortfall rate. PMAA pointed out that when fault is assigned to accidents cited in the report to Congress, only 22 out of a total 330,000 resulted in damages greater than minimum FR levels. PMAA also referenced data from the American Trucking Associations showing that there is only a 1.40 percent chance of a claim exceeding $500,000, a 0.73 percent chance of a claim going over one million dollars and a 0.31 percent chance of a claim topping two million dollars. PMAA also pointed out that most petroleum marketers already carry more than the minimum FR, that the private insurance market is regulating coverage appropriately and increased coverage will place a significant cost burden on small business marketers and invite more lawsuits for damages by unscrupulous plaintiff attorneys.

PMAA will continue to oppose this issue as it moves through the regulatory process  

PMAA MEETS WITH CFTC COMMISSIONER

On Tuesday, PMAA and NEFI, Co-Chairs of the Commodity Markets Oversight Coalition (CMOC), met with CFTC Commissioner Christopher Giancarlo. Joining PMAA and NEFI was a CMOC member representing the Industrial Energy Consumers of America.

This introductory meeting allowed our industries to summarize CMOC's involvement with futures market reform and the CFTC's Energy and Environment Markets Advisory Commission. We also highlighted our concerns with the position limits proposed rule, particularly conditional spot month limits and inadequate CFTC funding.

PMAA and NEFI look forward to continuing the excellent rapport we have enjoyed with the Commission as futures market reform moves forward.

HOUSE ENERGY SUBCOMMITTEE EXAMINES OIL MARKETS

On Tuesday, the House Energy and Commerce Subcommittee on Energy and Power held a hearing titled, “21st Century Energy Markets: How the Changing Dynamics of World Energy Markets Impact our Economy and Energy Security.” Testifying before the subcommittee were: Adam Sieminski, EIA; John Kingston, McGraw Hill Financial Global Institute; Amy Jaffe, Energy and Sustainability, University of California, Davis; Scott Sheffield, Pioneer Natural Resources; Charles Drevna, American Fuel & Petrochemical Manufacturers; Graeme Burnett, Delta Airlines and Brad Markell, AFL-CIO.

Much of the hearing focused on the current U.S. policy that bans oil exports. Mr. Drevna said that AFPM is not opposed to lifting the ban, however, the focus should be on a broader view that removes all barriers so that oil markets function in the best interests for consumers. He highlighted an anti-free market policy – the Jones Act. The outdated Jones Act law requires cargo shipped between two U.S. ports be transported on a U.S. built ship as well as crewed and owned by U.S. citizens. AFPM represents 98 percent of refining capacity in the United States and generally agrees with PMAA’s position calling for reform to ensure that crude oil and refined products are being shipped at competitive prices between U.S. ports. It currently costs less to ship oil from the Gulf of Mexico to Canada’s refineries than it is to ship to Mid-Atlantic refineries due to the Jones Act. Drevna contends that the shipping industry cannot hide behind the national security argument anymore since the U.S. allows international companies to build and operate military equipment and civilian aircraft, and thus, the shipbuilding industry should not be treated any different. Drevna also said that refining capacity is there to meet the growing crude oil production boom.

Currently, the price of the Brent crude oil contract is $10 more than the West Texas Intermediate (WTI) crude oil contract. Refiners are concerned that this Brent-WTI differential would disappear if Congress repeals the crude oil export ban. Other witnesses argued that ending the crude oil ban would lower worldwide crude oil prices and diminish OPEC’s market share. Subcommittee Chairman Ed Whitfield (R-KY) said that Congress would thoroughly review all options and suggested House Republicans are in no hurry to end the crude oil export ban. Recently, U.S. oil production reached 9.3 million barrels per day, its highest level since the early 1970s while crude inventories reached 444 million barrels, its highest level in 80 years according to a Bloomberg analysis.

PMAA is neutral on ending the crude oil export ban.
  

SENATE FAILS TO OVERRIDE PRESIDENT’S KEYSTONE XL PIPELINE VETO

This week, the Senate failed to override President Obama’s veto of the Keystone XL pipeline approval bill by a vote of 62 - 37. Sixty-seven votes were needed to override the President. All Republicans voted for the bill along with eight Senate Democrats which included: Michael Bennet of Colorado, Tom Carper of Delaware, Bob Casey of Pennsylvania, Heidi Heitkamp of North Dakota, Joe Manchin of West Virginia, Claire McCaskill of Missouri, Jon Tester of Montana and Mark Warner of Virginia. Even if the Senate garnered the necessary 67 votes to override the President, it faced an uncertain future in the House since the bill needed 290 votes.

The House attracted 270 votes in favor of approving the pipeline earlier this year. Following the failed attempt, the GOP-controlled Senate said it would likely try to attach the bill to future bills that the President may not want to veto such as the highway bill reauthorization, raising the debt ceiling or a spending bill later this year.

President Obama has said he wants to wait until the State Department review is completed before deciding on whether to approve construction of the pipeline. The State Department should give its recommendation anytime now.

PMAA fully supports the immediate approval of the Keystone XL pipeline.      

PMAA’S WASHINGTON CONFERENCE 2015 SILENT AUCTION

PMAA’s SBC PAC Co-Chairs Brad Bell and Michael Fields would like to thank Federated Insurance for donating the Great Outdoors Package for PMAA’s PAC Silent Auction.

If you are serious outdoorsmen or if you are retired and looking to try something different, this package is just for you.

If you like hunting or fishing, you will need the Grizzly Cooler for cooling and securing your fresh catch. If you are not an experienced outdoorsman, you may just want to look the part by wearing your green camo or orange camo hat. You will also need a shotgun shell thermos. The shotgun shell thermos will keep your beverage hot for up to at least 24 hours. Last but not least, to pack up your gear, the outdoor leather duffel bag is the perfect carry-all.

The Auction will take place in conjunction with PMAA’s Washington Conference on May 13 during the welcome reception. If you have items that you would like to contribute for the Silent Auction, please contact Sabrina Pitcher or 703-351-8000.    

FEBRUARY 2015 PMAA SMALL BUSINESS COMMITTEE (SBC) PAC CONTRIBUTIONS

PAC Co-Chairs Brad Bell and Michael Fields are grateful for the PMAA Small Business Committee (SBC) PAC contributions from the following individuals during the February 1 – 28 timeframe:

Arkansas: Vanessa Crossfield, Steven Ferren, Jeff Frost, William Hanesworth, David Harger, Doug Hendrix, Aaron Littlefield III, Berry Magness, Mallory Nimocks

IOMA: Matthew Durand, James Garrett, Christopher Riley, Andrew Slifka

NEFI: Howard Peterson, Sharon Peterson
 

PMAA MEMBERS PROFIT THROUGH RISK MANAGEMENT ACADEMY SEMINAR OFFERED APRIL 20-22, 2015

Federated’s Risk Management Academy provides a unique opportunity for businesses to learn best practices and network with industry peers through short risk management seminars. These seminars are designed for individuals in positions of risk leadership including owners, operations management, service management, risk management, or human resources. Sessions target specific risk management exposures for all industries as well as targeted exposures for individual industries. The key to a successful business is implementing and leading a strong risk management culture, so attendees should be in a position to take action!

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 PMAA members have attended in the past and can give referrals on the course content.

Space is still available! The class is limited to 25 attendees and the registration cutoff date is March 20. For a short video about the seminar and other details, please visit. 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.

PMAA MDF CONTRIBUTORS FOR FEBRUARY 2015

PMAA’s Marketer Defense Fund wants to thank the following individuals for their contributions during the February 1- 28 timeframe:

Colorado: Andy Smith
Connecticut: Sharon Peterson
Kentucky: B. Stephen Harper
Louisiana: Darrell Amar Sr., Todd St. Romain
Missouri: Wayne Baker
Nebraska: Robert Hofstetter, Stan Mills
IOMA: James Garrett
North Carolina: Stuart Kennedy
Pennsylvania: Michael DeBerdine, Steve Oehlert
Tennessee: Tennessee Fuel & Convenience Store Association
Washington: Steven T. Clark

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. 

DEFENDING AGAINST “BACKOFF” MALWARE WEBINAR ON MARCH 26
1:00pm-2:00pm ET

PCI SSC will partner with payment brands and members of the PCI community in 2015 to deliver a series of educational webinars on threats and vulnerabilities to payment data and how your organization can protect against them.
Guest speakers from Visa’s Payment System Cyber Intelligence Team will join us for this first session.

The 60-minute webinar will cover the following topics, and include a live Q&A session:

  • The discovery of "Backoff"

  • Malware capabilities and attack vectors

  • Actionable steps for mitigation

  • PCI and industry resources

Please click here to register.

Should you have any additional questions on these webinars or any other petroleum solutions, please contact PMAA’s Worldpay Executive Client Manager, Glenda Preen at 972.325.1801
.

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: LABORCHEX
The Changing World of Criminal Record Checks

Did you know that in some states, cities, and towns an employer cannot have a question about criminal records on a job application? It is called “Ban the Box,” and is a growing trend. It stems out of federal agencies who believe that some people with criminal records won’t apply for jobs if they see such a question, even if the criminal history would not necessarily prevent them from getting the job. The employer can still check the criminal record history during some point of the evaluation process, but cannot have that question on the application or ask it in an interview.

Also, more and more states are restricting the types of criminal records they report. This makes it even more challenging for employers to hire the best workforces. Contact your legal counsel to learn if there are any “Ban the Box” laws in your state or community, now or expected.

LaborChex provides employment background screening services to PMAA members nationwide at discounted pricing. For more information, review PMAA’s current program or email Steven J. Austin or by phone at 601.624.4321
.

 

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