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PMAA's weekly update on important national industry issues.

 
PMAA's Weekly Review - April 11, 2014  [WR-14-15]

 

 

In This Issue:
 

SENATE DEMOCRATS URGE PRESIDENT TO APPROVE KEYSTONE PIPELINE

 

CDL DRIVER SHORTAGE

 

U.S. ENERGY INFORMATION ADMINISTRATION PREDICTS $3.57 CPG GASOLINE THIS SUMMER

 

FUELQUEST AND ORION FOODS VOTED BEST IN U.S.

 

MENU LABELING GOES TO WHITE HOUSE: HOUSE APPROVES 40 HOUR FULL TIME DEFINITION

 

BID EARLY FOR SIGNED DEREK JETER BAT RAFFLE DURING MAY DC CONFERENCE

 

MUHAMMAD ALI COLLAGE FOR SILENT AUCTION

 

RESERVE YOUR ROOMS NOW FOR PMAA’S WASHINGTON CONFERENCE AND DAY ON THE HILL

 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: STAPLES ADVANTAGE®

 

PMAA PARTNER SPOTLIGHT FEATURING: WORLDPAY™

 

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Telephone:
703-351-8000

Petroleum Marketers Association of America

(PMAA)

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Arlington, Virginia 22209

SENATE DEMOCRATS URGE PRESIDENT TO APPROVE KEYSTONE PIPELINE

On Wednesday, 11 Senate Democrats urged the President to approve the Keystone XL pipeline by May 31. The letter cited the State Department’s fifth and final environmental impact statement (EIS) which essentially dispelled environmental critics’ claims that the Keystone XL pipeline is not in the nation’s best interest. The final EIS argued that Canadian oil sands would be developed with or without the pipeline. Hauling crude oil by rail carries with it a higher CO2 rate and safety concerns. Approving the Keystone XL pipeline would help alleviate these environmental and safety concerns.

Eight federal agencies, including the Energy Department and the EPA, have until May 1 to weigh in with the State Department. Some analysts believe the latest State Department report boosts the possibility that the pipeline wins U.S. approval as soon as this summer.

Five Senate Democrats seeking reelection signed the letter which included: Landrieu (LA), Begich (AK), Pryor (AR), Hagan (NC), and Warner (VA). To view a copy of the letter, please click here
  

CDL DRIVER SHORTAGE

Over the next 10 years, the U.S. is expected to face a driver shortage in excess of 239,000 drivers. Simply put, America needs more commercial drivers. All Commercial Driver’s License (CDL) applicants must pass a skills test before being issued a CDL. What most people do not know, however, is our nation’s ability to efficiently produce drivers is being hampered by skills testing delays. If a CDL applicant fails their skills test the first time, it may take weeks or even months before he or she can retake the test due to delays in securing another testing slot.

Current Department of Transportation regulations allow States to determine how and where to skills test their CDL applicants. In many States, the State government outsources this testing function to contracted third parties. In other States, the State government does not outsource this testing function. The Commercial Vehicle Training Association (CVTA) is concerned that testing delays are hurting applicants from efficiently entering the job market. Therefore, CVTA believes that Congress should explore whether these testing delays are impacting our ability to get more Americans into the trucking industry.

CDL skills testing varies from State to State. While all States must meet minimum testing criteria established by the Department of Transportation, the grading of certain procedures or skills varies depending on State law. CVTA is concerned that certain test examiners, who test CDL applicants, are not following proper procedure. By not following proper procedure, these testing examiners are causing CDL applicants to unnecessarily fail skills tests. Given the disparities, CVTA believes Congress should act to ensure greater consistency in our nation’s CDL testing.

In 2015, new Department of Transportation regulations go into effect that attempt to streamline the process for individuals to receive a CDL. While the intent of this regulation is to create reciprocity that allows States to issue CDLs to its citizens who receive training and skills test out of State, CVTA fears that many States will not issue CDLs to its citizens due to the way the current regulation is written. As such, CVTA would like Congress to ask the Federal Motor Carrier Safety Administration (FMCSA) to clarify its own regulation.

U.S. ENERGY INFORMATION ADMINISTRATION PREDICTS $3.57 CPG GASOLINE THIS SUMMER

In the April 2014 Short-Term Energy Outlook (STEO), EIA projects that regular-grade gasoline retail prices will average $3.57 per gallon (gal) during the current summer (April through September) driving season, similar to the $3.58/gal average of summer 2013. After rising into May, the retail price is expected to fall through the remainder of the summer because both crude oil prices and gasoline crack spreads (the difference between wholesale product price and the price of crude oil) decline. Daily and weekly national average prices can differ significantly from monthly and seasonal averages, and there are also significant regional differences, with prices in some areas exceeding the national average by 25 cents/gal or more.

On April 7, the national average regular-grade gasoline retail price stood at $3.60/gal. Most of the expected increase from the current price over the next several weeks is attributable to an increase in crack spreads as a result of typical seasonal factors such as refinery maintenance and the switch to summer-grade gasoline, which is more costly to produce than winter-grade gasoline. Gasoline crack spreads are expected to average 44 cents/gal in May, up from an average of 15 cents/gal during the first quarter.

Retail prices are expected to gradually decline after May to an average of $3.46/gal in September. The largest driver of the expected decline is falling gasoline crack spreads, which are expected to decline to an average of 29 cents/gal in September. The expected decrease in crack spreads results from a projected increase in crude oil throughput at refineries, which add supplies to the market along with easing seasonal demand increases as the summer progresses. North Sea Brent crude oil prices are projected to fall from a March average of $107 per barrel (bbl) to a May average of $105/bbl and a September average of $103/bbl. The May-to-September crude oil price drop contributes almost five cents/gal to the projected decline in gasoline prices.
  

FUELQUEST AND ORION FOODS VOTED BEST IN U.S.

In a nationwide survey of petroleum marketing executives conducted by PMAA, FuelQuest and Orion Foods have earned the title “Best in the U.S”.

FuelQuest was voted best "Fuel Management Program" and Orion Foods was voted best "Franchise Food Service".

FuelQuest, headquartered in Houston, Texas, is the leading on-demand software and services company for the global downstream energy industry. They provide on-demand fuel management, tax automation and compliance solutions for suppliers, distributors, buyers and traders of petroleum products and other energy commodities.

Orion Foods, headquartered in Sioux Falls, South Dakota, is an award-winning foodservice company whose roots were determined to provide restaurant-quality delivery pizza to consumers on-the-go. The food service company continued to expand into other services and industries and now offer numerous brands across a variety of industries to customers around the globe.      

MENU LABELING GOES TO WHITE HOUSE: HOUSE APPROVES 40 HOUR FULL TIME DEFINITION

Following three years of review, the FDA has sent final regulations required by Section 4205 (Menu Labeling) of the 2010 healthcare law to the White House Office of Management and Budget.

Section 4205 requires restaurants and convenience store owners with 20 or more locations to list content information for standard menu items, such as posting calorie information on menus and menu-boards. Retailers must also provide additional nutrition information to be made available in writing upon request. The proposed FDA rule would define a “covered entity” as any retailer where more than 50 percent of the store’s floor area is devoted to selling food. The caveat is that FDA proposed to include pre-packaged food that is already required to include nutritional information on its packaging which would capture most c-stores. FDA has not announced what changes were made to the measure sent to the White House and the Administration has 90 days to review the rule.

PMAA continues to support the “Commonsense Nutrition Disclosure Act” (H.R. 1249 and S. 1756), which would ease some of the regulatory burdens attributable to Section 4205 by limiting the provisions in the health care law to establishments that derive 50 percent or more of their revenue from food for immediate consumption and/or prepared and processed on-site. Prepackaged food would not be considered in this equation. PMAA believes H.R. 1249 would bring a commonsense solution to regulation which will unfairly burden convenience store owners.

Also related to the Affordable Care Act, yesterday the House of Representatives approved Rep. Young’s (R-IN) “Save American Workers (SAW) Act” (H.R. 2575) which would define full time workers as those who work 40 hours a week instead of the ObamaCare 30 hour a week standard. Without this change, in 2015 companies with more than 100 employees will pay penalties if health insurance is not provided to all full time (30 hours per week) employees. The requirement for all employers with 50 or more employees follows in 2016. PMAA supports this legislation as we support the “Forty Hours is Full Time Act” (S. 1188 and S.701) introduced last year by Senator Susan Collins (R-ME) and Joe Donnelly (D-IN. All of these bills would repeal the 30 hour threshold for classification as FTE for the employer mandate in the Affordable Care Act and replace the threshold with a 40 hour requirement.

Although the House passed the bill by 248-179, Senate Majority Leader Harry Reid (D-NV) and President Obama are opposed to the 30 hour definition therefore, the House vote is mostly symbolic.
    

BID EARLY FOR SIGNED DEREK JETER BAT RAFFLE DURING MAY DC CONFERENCE

The PMAA Small Business Committee (SBC) PAC will hold a raffle during the Washington, DC May 21-23 conference and the raffle winner will be identified during the conference on May 23. The winner does not have to be present to win. If you are not attending the conference, you will be notified the week following the May drawing if you are the fortunate owner of the signed Derek Jeter bat!

Since 2014 will be his final season, this autographed Derek Jeter baseball bat will be a collector’s item. It’s a Rawlings bat and he only signed 22 of this specific model. Jeter played 19 seasons for the New York Yankees and is a five-time World Series champion. Jeter is regarded as a central figure of the Yankees during their success of the late 1990s and into the 2000s. He is the Yankees' all-time career leader in hits (3,316), games played (2,602), stolen bases (348), and at bats (10,614). His accolades include thirteen All-Star selections, five Gold Glove Awards, five Silver Slugger Awards, two Hank Aaron Awards, and a Roberto Clemente Award. Jeter is the all-time MLB leader in hits by a shortstop, and the 28th player to reach 3,000 hits. Jeter has been one of the most heavily marketed athletes of his generation, and teammates and opponents alike regard him as a consummate professional and one of the best players of his generation.

The proceeds of the raffle will benefit the PMAA SBC PAC. The money distributed to the PAC is used to benefit federal legislators who support the industry and have a solid record on key industry legislative issues. SBC PAC co-chairs Gerry Ramm and Michael Fields thank the raffle award donor, Mike Rud and the North Dakota Petroleum Marketers Association.

Tickets are $20 each or six for $100. Advanced tickets for the autographed Derek Jeter baseball bat are available until May 19, 2014. Ticket sales will continue at PMAA’s conference in DC until the drawing on May 23. Tickets must be paid for with personal funds by MasterCard, VISA, AMX, cash or check (checks should be made out to the PMAA Small Business Committee). To purchase tickets before May 19, contact Sabrina Pitcher at 703-351-8000 or SPitcher@pmaa.org

MUHAMMAD ALI COLLAGE FOR SILENT AUCTION

Boxing fans, you will love the three piece Muhammad Ali collage contributed by Matt Hauser of the Wisconsin Petroleum Marketers & Convenience Store Association. Ali autographed (signing Muhammad Ali and birth name Cassius Marcellus) a black and white photo of him standing over his opponent that became the century’s greatest sports photos. Also, Ali’s hand print cast in poly-resin (inlaid signature autograph imprint beneath), mounted on a plaque with face plate and a bio on Ali’s life are part of the collage that will be available at the auction.

Tim Keigher and the Nebraska Petroleum Marketers & Convenience Store Association expanded the auction with a bottle of Crown Royal XO and a box of 20 Macanudo Count David cigars! Count David cigars please the well-heeled cigar aficionado with the finest Connecticut shade wrappers, mild flavorful twice-aged Dominican fillers, and binders grown in the San Andres Valley of Mexico. XO and Macanudo are sure to spark the auction bidding!

Vera Haskins of Spirit Petroleum and Lea Wilson and the Washington Oil Marketers Association (WOMA) provided this year’s first PAC Silent Auction items. In addition to a lovely Navy Blue Paolo Masi Italian leather handbag from Vera, WOMA contributed a stunning Fred Meyer Jewelers fashion necklace that features a heart and key that is set with diamond accents. The necklace offers a romantic and bold look that certainly stands out.

In order to contribute your items for the Silent Auction, please contact Sabrina Pitcher at 703-351-8000.

RESERVE YOUR ROOMS NOW FOR PMAA’S WASHINGTON CONFERENCE AND DAY ON THE HILL

PMAA’s annual Washington Conference and Day on the Hill will be held in our Nation’s Capitol of Washington, DC from May 21-23. The meeting will begin with an Opening Session / Issues Briefing in the early afternoon of May 21. Our welcome reception including our popular PAC silent auction fundraiser concludes the day! On the morning of May 22, marketers will head to Capitol Hill for visits with their Congressional delegations after a buffet breakfast and an issues briefing if you did not arrive in time to attend the opening session. The PMAA Board of Directors will meet on May 23

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 the room blocks closes on April 29th at 6pm Eastern Time.

For those planning to attend this informative conference, please be sure to complete the appropriate Registration Form at your earliest convenience. You can find the registration forms and instructions along with all related details for Washington Conference and Day on the Hill here.

Please make your plans now to attend this important and productive forum to meet with your members of Congress and network with other marketers from across the country! 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: STAPLES ADVANTAGE®

The PMAA / Staples Advantage program brings many benefits to all PMAA members.  Not only does Staples have great prices on office supplies and technology items, but we also offer a wide variety of products and services to help you consolidate vendors, streamline processes and cut down on ordering costs. 

Cleaning & Breakroom: Contrary to popular belief, breakrooms do not clean themselves!  The flu season is upon us and studies show it costs U.S. employers an estimated 70 million missed workdays and billions in lost office productivity! All of the snacks, beverages, paper products, and cleaning supplies you need to keep your breakroom fully stocked.

Celebrate
Earth Day:
You'll find a wide assortment of eco-conscious office essentials along with some fun, interactive ways to help lessen your environmental impact in our interactive
Green Guide. It's all part of our commitment to environmental excellence.

Hot Deals Center: Super savings on furniture, technology, office supplies and more!  Be sure to check back weekly!

All Products: You can also shop by category

To find out more about making Staples your one source for all of your business needs or to check for further discounts or a custom program when ordering large ticket technology, furniture, bulk purchases and custom printing, please contact PMAA’s National Inside Account Consultant Albina Oboimova or 888.224.3784 extension 4117.  You can also call Staples Customer Service at 877.826.7755 or Order@StaplesAdvantage.com.

PMAA PARTNER SPOTLIGHT FEATURING: WORLDPAY™

PMAA’s National Partner and Endorsed Vendor WorldPay would like to share the Final Communication on the Spring Release effective April 11, 2014. There have been some items added and they are noted by *(red).

Should you have any additional questions on this or any other petroleum solutions, please contact PMAA Customer Service at 877.862.9195 or PMAA’s WorldPay Executive Client Manager, Glenda Preen at 972.325.1801.

 

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