Energy Marketers of America Weekly Review - August 1, 2025
Energy Marketers of America Weekly Review - August 1, 2025
With the annual August recess looming, the Senate remains in Washington as Senators continue work on annual funding bills and nominations.
This week, the Senate Appropriations Committee continued to advance individual FY 2026 funding bills, potentially teeing up Senate floor action on a “minibus” appropriations package before the September 30 federal funding deadline. On Thursday, Senate Appropriators approved two more annual funding bills in committee markups, the Defense and Labor-Health and Human Services Appropriations bills. While the Senate Committee approved the bills in bipartisan votes, Senate Appropriators may be setting a collision course with the House of Representatives and President Trump on funding levels, as Senators largely dismissed President Trump’s calls for deep funding cuts in the Labor-Health and Human Services package. Notably, the Senate Appropriations Committee approved $4 billion in FY 2026 funding for the Low-Income Home Energy Assistance Program (LIHEAP) in the Labor-Health and Human Services bill, a $20 million increase over the current enacted funding level, rejecting President Trump’s request to defund the program.
Last week, Senate Appropriators also approved two annual funding bills in committee markups, the Transportation-Housing and Urban Development and the Interior-Environment spending bills, and the full Senate cleared a key procedural vote on the Military Construction-VA spending bill. The Senate is expected to attach several spending bills to the VA bill before final passage, including the Interior-Environment bill, which includes $87,350,000 for the Leaking Underground Storage Tank (LUST) Trust Fund, a significant increase over funding proposed by the House.
Meanwhile, the Senate floor was abuzz with nominations activity this week, as Senate Republicans voted to confirm several Trump Administration nominees. Nevertheless, Senate Majority Leader John Thune (R-SD) is facing significant pressure from President Trump and several Senate Republicans to fill additional positions in the coming days or forgo part of the annual August recess to continue work on nominations. While the Senate has advanced more than double the number of nominees through July compared to President Trump’s first time in office, Senate Republicans are facing significant delay tactics from Senate Democrats on key posts, heightening tensions between the White House and Senate leadership.
EPA Administrator Lee Zeldin also made waves this week, releasing a roughly 300-page proposal on Tuesday to rescind the EPA’s 2009 Endangerment Finding, which serves as the basis for the agency to regulate greenhouse gas (GHG) emissions. The 2009 Endangerment Finding found that GHGs endanger public health and welfare, allowing EPA to regulate GHGs as air pollutants under the Clean Air Act. In its proposal, the Trump Administration argues that Congress, through the Clean Air Act, did not give the EPA the authority to regulate GHG emissions. According to the EPA, if finalized, the proposal would “repeal all resulting greenhouse gas emissions regulations for motor vehicles and engines.” The EPA proposal is likely to face legal challenges from states and environmental groups, including under Massachusetts v. EPA, a 2007 Supreme Court decision which found that the EPA can regulate carbon dioxide and other GHGs under federal law.
Additional analysis of the EPA proposal is forthcoming.
EMA Regulatory Alert: EMA Urges PHMSA to Advance Key Regulatory Reforms to Ease Compliance Burdens on Energy Marketers
This week, EMA submitted comments to the Pipeline and Hazardous Materials Safety Administration (PHMSA) in response to its solicitation for stakeholder feedback on reducing regulatory burdens related to the transportation of domestic energy resources, including motor fuels and heating oil. EMA praised PHMSA's efforts to explore deregulatory options that could alleviate pressures on the supply chain for essential liquid fuels and help curb inflationary impacts on consumers.
EMA highlighted three critical areas for reform within the Hazardous Materials Regulations (HMRs) to lessen compliance burdens on small businesses in the downstream energy sector: (1) cargo tank testing requirements, (2) placarding rules, and (3) hazardous materials registration fees.
Reinstating Flexible Cargo Tank Vapor Testing to Restore Efficiencies
PHMSA has historically permitted fuel marketers to conduct leakage tests on cargo tanks using practical methods, such as through vapor recovery systems without full tank pressurization or via a pressure-drop test aligned with EPA vapor tightness certifications under the Clean Air Act. These options have allowed operators to select safe, cost-effective testing based on equipment and needs, minimizing stress on older tanks, and reducing service disruptions.
However, the Biden Administration's 2023 amendments to the National Emission Standards for Hazardous Air Pollutants (NESHAP) for gasoline distribution introduced stricter pressure-drop limits-reducing allowable drops to 0.5 inches over five minutes for most marketers. This change has increased testing complexities, disrupted established protocols, and imposed additional burdens without sufficient coordination between PHMSA and the EPA.
EMA calls for enhanced inter-agency collaboration to reinstate flexible leak testing via a reasonable, three-inch pressure-drop test. Restoring a proven, safe compliance cargo tank vapor testing framework that supports small businesses in delivering reliable fuel supplies is a priority for EMA.
Expanding Lowest Flash Point Exception for Placarding in Split and Alternating Loads
In response to PHMSA's proposed amendments to cargo tank placarding for petroleum distillate fuels. EMA continues to advocate for the use of the UN ID number for the lowest flash point fuel in split loads and alternating straight loads of gasoline, diesel, heating oil, and E10 blends. EMA further urges extending this flexibility to E15 blends, especially when transported with lower-ethanol fuels.
Applying the lowest flash point placard for multiple fuels across the same day or previous business day aligns with regulatory intent and enhances operational efficiency without sacrificing safety. Current limitations force inefficient practices, such as load sequencing or running partial shipments, which drive up costs for energy marketers.
Adopting a Risk-Based Approach to Hazardous Materials Registration Fees
PHMSA's proposed fee hikes for small business registrants funding the Hazardous Materials Emergency Preparedness (HMEP) grants program disproportionately affect fuel marketers in a competitive, low-margin industry. While PHMSA recognizes the need to account for risk differences between large and small entities, the uniform inflation-based increases overlook the varying hazards of transported materials.
EMA advocates for a revised fee structure that incorporates both business size and risk profiles of transported materials. High-risk substances like toxic inhalants or radioactive materials warrant higher fees, whereas lower-risk fuels like diesel and gasoline handled by small marketers should face reduced burdens. This targeted, tiered approach would promote fairness, efficiency, and alignment with legislative goals, easing strains on the fuel and heating oil sectors.
"These reforms are essential to supporting small energy marketers who keep America's vehicles running and homes heated," said EMA President Rob Underwood. "By reducing unnecessary regulatory hurdles, PHMSA can help prevent supply disruptions, lower costs for consumers, and foster a more resilient energy supply chain."
Click here to read the letter.
EMA Regulatory Alert: EMA Applauds FMCSA's Deregulatory Initiatives to Streamline Energy Transportation and Reduce Burdens on Small Businesses
On Tuesday, EMA submitted comments in strong support of multiple regulatory proposals from the Federal Motor Carrier Safety Administration (FMCSA), aimed at reducing unnecessary compliance burdens on the energy and transportation sectors. These initiatives align with the Administration's broader deregulatory agenda under the Executive Orders "Unleashing American Energy" and "Unleashing Prosperity through Deregulation," emphasizing the need to eliminate duplicative requirements that do not enhance transportation safety while maximizing efficiencies for the safe, reliable, and affordable delivery of energy liquids.
EMA's comments highlight the importance of these changes, particularly for small business fuel marketers who bear a disproportionate share of regulatory costs. By streamlining outdated rules, FMCSA's proposals could deliver significant cost savings, paperwork reductions, and operational efficiencies for EMA members and the broader industry.
Key proposals supported by EMA include:
- Elimination of CDL Self-Reporting Requirement: Commercial Driver's License (CDL) holders would no longer be required to self-report motor vehicle violations to state agencies, as this process is now redundant following the implementation of a nationwide electronic violation reporting system in 2024.
- Rescission of the Fuel Tank Overfill Design Restriction: Removal of the outdated requirement in 49 C.F.R. 393.67(c) that liquid fuel tanks be manufactured to prevent filling beyond 95 percent of capacity during normal operations. This rule, over 50 years old, fails to account for advancements in modern tank design and technology.
- Addition of an Exception at Railroad Grade Crossings with Warning Devices: Allowing hazardous materials (hazmat) drivers to proceed through railroad grade crossings when warning devices, such as flashing lights or gates, are not activated, recognizing reliable external indicators that signal safe passage.
- Revision of Roadside Inspection Return Process: Eliminating the need for motor carriers and intermodal equipment providers to sign and return completed roadside inspection reports, due to inconsistent state practices and limited review value.
- Removal of ELD User Manual Requirement: Rescinding the mandate for drivers to carry a hard copy of the electronic logging device (ELD) manual in vehicles, acknowledging the unnecessary burden without a corresponding safety benefit.
These proposals represent a meaningful shift by FMCSA toward more efficient, targeted enforcement, fostering innovation and growth in the energy transportation sector. "EMA welcomes these deregulatory steps to reduce compliance burdens - which disproportionately impact small business fuel marketers - and unleash safe, reliable, and affordable transportation of essential energy products," said EMA President Rob Underwood.
EMA Supported Coalition Testifies on Privacy and Main Street Businesses
This week, Paul Martino from the Main Street Privacy Coalition (MSPC)—an organization in which the EMA holds membership—testified before the Senate Judiciary Committee's Subcommittee on Privacy, Technology, and the Law. The hearing, Protecting the Virtual You; Safeguarding America’s Online Data, also included representatives of the Business Software Alliance, Digital Progress Group, Electronic Privacy Information Center, and UC Berkeley’s Center for Consumer Law.
Martino explained that a preemptive federal privacy law will benefit consumers and Main Street businesses alike. It would give consumers confidence that their data will be uniformly protected across America, and it would provide the certainty Main Street businesses need to lawfully and responsibly use data to better serve their customers online or across state lines.
Click here for the full written statement.
July 2025 EMA Small Business Committee (SBC) PAC Contributions
PAC Co-Chairs Mike Downs and Tim Keigher are grateful for the EMA Small Business Committee (SBC) PAC contributions from the following individuals during the July 1-31, 2025 time frame:
Alabama: Jeffrey Brown, Sterling Jones
Louisiana: Josh Bigott, Will Butterfield, Giselle Diaz, Dean Duplantis, Matthew Guidry, Stephen Hood, Judy Malone, John Mannion, Jim Nickel, Todd Perry, Hugh Raetzsch, Blake Robert, Charles Roe, Dustin Smith
Montana: Roger Schmechel
Nevada: Lee Ables, Harry Allen, Craig Allison, Ren Bevell, Kyle Call, Mackenzie Campbell, Ryan Defilippi, Michael DeMark, Rick Edwards, Kurt Goebel, Kim Gonzales, Kevin Goodwin, Miranda Hoover, Chris Kemper, Christian Larsen, Ron Ludlow, Mackenzie Lytle, Thad Malit, Joe McGinley, Bob Michaelis, Teri Physioc, Bob Prary, Caitlin Scherr, Darin Snow, Kieth Stewart, Shelly Thomas, Fernando Trujillo, Tina Vargas, Chris Wilson
Oregon: Mark Fitz
Virginia: Charles Brown II, M. C. Morgan, Timothy Murphy, Cary Nelson
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At Federated Insurance, It’s Our Business to Protect Yours®
Founded in 1904, Federated Insurance is a national insurance and risk management organization that serves the property, casualty, and life insurance needs of clients in select industries. The organization has more than 500 recommendations from state, regional, and national associations and buying groups, and is rated A+ (Superior) by industry analyst A.M. Best®.