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PMAA's weekly update on important national industry issues.

 
PMAA's Weekly Review - April 24, 2015  [WR-15-17]

 

 

In This Issue:
 

OZONE CONCERNS VOICED

 

U.S. REFINERS CONTRIBUTIONS TO CLEAN AIR

 

ENERGY SECRETARY COMMENTS ON CRUDE OIL EXPORT BAN

 

PMAA JOINS COALITION TO FIGHT PROPOSED AFUE STANDARDS FOR RESIDENTIAL BOILERS

 

FEDERATED’S RISK MANAGEMENT CORNER

 

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.

 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: CORD FINANCIAL SERVICES
 

 
 

 
 

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Telephone:
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Petroleum Marketers Association of America

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OZONE CONCERNS VOICED

PMAA’s Immediate Past President Sam Bell met this week with Senator Tim Scott (R-SC) to discuss the huge cost of the proposed EPA ozone regulations. Sam was in town to participate in emergency preparedness meetings with the Oil and Natural Gas Sector Coordinating Council (industry) and the Oil and Natural Gas Government Coordinating Council. Because PMAA is actively involved in the national development of emergency preparedness and response systems and policies, PMAA is available to assist you and answer questions from government officials not only before and after a disaster, but also if you are visited by government officials who plan to review your emergency plans  

U.S. REFINERS CONTRIBUTIONS TO CLEAN AIR

The American Fuel and Petrochemical Manufacturers (AFPM) reports that emissions from U.S. fuel manufacturers have decreased substantially over the last two decades, even as U.S. petroleum fuel production increased during the same time period. These findings, combined with other Environmental Protection Agency (EPA) data showing continuous and significant reductions in all criteria pollutants economy-wide, raise further questions regarding EPA’s rationale for proposing new National Ambient Air Quality Standards (NAAQS). The study commissioned by AFPM and conducted by Sage Environmental Consulting, revealed a significant reduction in both criteria air pollutant (CAP) emissions and hazardous air pollutants (HAP) emissions during the period of investigation from 1990 to 2013.

The analysis also highlights that despite density and sulfur content of crude oil feedstocks increasing over 16 percent during the study period, the primary CAP emissions – sulfur dioxide, nitrogen oxides and volatile organic compounds – fell by 91 percent, 67 percent and 69 percent, respectively. The total HAP emissions similarly declined by 66 percent.

“The numbers don’t lie. EPA’s data shows U.S. air quality continues to improve, despite arguments to the contrary, and domestic refiners have significantly contributed to that trend. The air is cleaner today than it ever has been and so are fuel manufacturing operations,” AFPM President Charles T. Drevna said.

EPA is in the process of finalizing new emissions control standards to reduce ground-level ozone from the current level of 75 parts per billion (ppb) to between 65 and 70 ppb, a rulemaking that could reduce U.S. Gross Domestic Product (GDP) by as much as $140 billion per year according to a recent report. The current standard was enacted in 2008, but the Agency did not finalize implementation regulations until February 2015.

“The refining industry’s demonstrated commitment to improving efficiencies and investing in technological advancements to process both heavier and lighter crude oils will guarantee further emissions reductions without overly burdensome new requirements,” Drevna said. “It is important to recognize that ozone-forming emissions will continue to decrease due to the 2008 ozone standard, the implementation of which did not even begin until earlier this year. Revisiting the standard now typifies the proverbial analogy about moving the goal posts. Policy makers need to look at these facts before approving little-to-no benefit regulations that will impose additional costs on domestic manufacturers.”

ENERGY SECRETARY COMMENTS ON CRUDE OIL EXPORT BAN
Senate Energy Committee Chairwoman Talks Jones Act

U.S. Energy Secretary Ernest Moniz said this week that major oil companies still have not presented a compelling case for lifting the ban on U.S. crude oil exports. Moniz said, “This is a Department of Commerce issue, so I'm not for it or against it,” Moniz said. “I'm just saying from an economic perspective, we still import 7 million barrels of crude a day, so I don't think the economic arguments have been compelling.” The Energy Secretary also said that U.S. exports of liquefied natural gas (LNG) will hit 10 billion cubic feet per day within a decade while declining to comment on the Keystone XL pipeline.

Meanwhile, Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-AK) continued her push for full repeal of the crude oil export ban while acknowledging that passing legislation to repeal the ban faces an uphill battle. “We're negotiating with Iran, which could result in 1 million barrels of Iranian oil to the global market every day. Our crude export ban equates to a sanction against ourselves,” Murkowski said. The Energy Committee Chairwoman also said that while she supports the Jones Act, she is not against reviewing it to see how it impacts oil and refined product markets.
  

PMAA JOINS COALITION TO FIGHT PROPOSED AFUE STANDARDS FOR RESIDENTIAL BOILERS

PMAA is participating in a newly formed coalition to oppose a Department of Energy proposed efficiency standard for boilers. The proposed rule would amend existing annual fuel rating efficiency (AFUE) standards for residential boilers using natural gas, propane and heating oil. AFUE is the ratio of annual heat output of the furnace or boiler compared to the total annual fossil fuel energy consumed by a furnace or boiler. The DOE’s Notice of Proposed Rulemaking (NPRM) proposes new minimum AFUE levels of 85 for gas and 86 for oil fired hot water boilers. Currently the AFUE standard for gas and oil fired hot water boilers are 82 and 84, respectively.

PMAA is concerned that the proposed standards are not technically feasible for natural draft systems and imposes an unjustified economic burden on both manufacturers and consumers. The NEFI lead coalition is partnering with NORA and other interested parties in a new laboratory and field study on oil heating appliance venting and how these issues may affect AFUE efficiency standards. The coalition will seek to delay any change in AFUE standards until results from the study are completed. The coalition will also testify at a DOE public meeting on the subject later this month.      

FEDERATED’S RISK MANAGEMENT CORNER
An Impossible Skill

As you’re reading this article, are you doing something else at the same time? Maybe you’re eating, listening to the radio, or even planning your day. You might think you’re multitasking, but—and this may come as a surprise—you’re not. Scientists have learned that our brains don’t process more than one stream of information at a time.

When you read, your brain absorbs the information it receives through the act of reading. You may be conscious of the radio in the background, but, to be fully aware of the song that’s playing, your brain drifts to the music for a few seconds. When that happens, you no longer comprehend the words on the page. The time “away” is so fleeting that you may not realize you’re not fully focused on the original task of reading, leading you to believe you’re multitasking.

Please click here to read this article in its entirety. For additional information or to discuss this in further detail, please contact your Federated regional representative or PMAA’s National Account Executive Jerry Leemkuil at 800.533.0472.    

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.
What Beats Petroleum Prices Down

Marketers unknowingly make decisions that literally drive their business worth DOWN in the last few years before they sell. Do they mean to do that? Of course not! Their decisions are rational and warranted in their minds. But those decisions send their value tumbling.

We catch these faux pas because in our Meridian valuations we tell marketers how to increase their company’s value, something that CPA firms typically don’t dare risk.

Please read Betsi’s full article here to find out what the six common tragic pitfalls are and how to avoid them. To learn more about PMAA’s Platinum Partner, Meridian Associates, please visit or contact them at 800.728.9008

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: CORD FINANCIAL SERVICES
Benefits of ATMs in Your Store

Store owners must find ways to attract customers to their stores and more importantly spend money there. A MasterCard study shows that consumers may use debit cards for routine purchases, but they still visit ATMs more often for small cash withdrawals. ATMs are also an essential part of a merchant’s business. Please read about the benefits of having an ATM in your store here.

To learn more about getting your ATM placement in your business, please visit, email or call 800.410.5217, Option 4.

   
 

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