Energy Marketers of America Weekly Review - March 28, 2025
Energy Marketers of America Weekly Review - March 28, 2025
EMA Engages at the Agencies on Biofuels Policy
The Energy Marketers of America has been actively engaging with federal agencies this week on biofuels policy, as the Trump administration works to define a clear path for expanding biofuel availability. From blending mandates to biofuel production incentives and gasoline volatility management in the Midwest, the administration aims to finalize a strategy that industry stakeholders can support. EMA is weighing in, advocating for a holistic approach that considers infrastructure compatibility and affordability at the pump.
At the EPA, EMA and FUELIowa shared key market insights with the Office of Air and Radiation, emphasizing the need to delay the Midwestern Governors’ opt-out of the E10 Reid Vapor Pressure (RVP) waiver. Additionally, EMA is planning a meeting with the EPA’s Office of Transportation and Air Quality to reinforce that biofuels policies should maximize fuel fungibility to minimize chances of retail price hikes that disproportionately impact small business marketers and consumers.
On infrastructure compatibility, EMA has engaged with the USDA’s Rural Development Office to stress the urgent need for HBIIP grant disbursements to support affordable biofuel expansion. There are indications that the agency intends to resume the administration of the program, as it aligns with federal energy and environmental policies.
Finally, EMA will submit comments to the Treasury and IRS regarding the 45Z Clean Fuel Production Credit. EMA’s position is that a blenders credit remains the most effective mechanism to increase biofuel consumption and is more compatible with the Renewable Fuel Standard. The federation is also advocating for the inclusion of heating oil in the tax structure to yield more carbon reduction gains.
“Engagement with federal agencies on biofuels policy is a key priority for EMA as the Trump administration works to build wide consensus on its energy agenda; we continue to drive the message that fuel marketers are essential in boosting the portfolio of energy liquids,” said EMA President Rob Underwood.
“We appreciated the opportunity to share Iowa’s perspective as a nation’s leader in biofuels. Regulators must consider infrastructure compatibility and price hikes when making decisions, as transitioning to a lower RVP blendstock could result in a $269 million cost increase in Iowa alone –– which will ultimately be borne by consumers at the pump,” said FUELIowa’s President of Government Affairs, John Maynes.
CBP Provides Guidance on Energy Imports from Canada
Earlier this week, the U.S. Customs and Border Protection published a list of imported energy products subject to the 10% carve-out if they do not meet the requirements of the United States-Mexico-Canada-Agreement (USMCA).
As previously noted by EMA Counsel, motor fuels and heating oil classified under Chapter 27 of the Harmonized Tariff Schedule fall under the energy carve-out as “refined petroleum products.” Accordingly, these products can avoid the additional 25% duty if not in compliance with USMCA. USMCA compliance remains the only off-ramp from the additional duties.
The full list of energy imports can be downloaded here.
WHO Seeks to Classify Gasoline as Carcinogenic, Potentially Sparking Private Lawsuits
The International Agency for Research on Cancer, a branch of the World Health Organization (WHO), is taking affirmative steps to apply a cancer classification to automotive gasoline. Deviating from previous findings, the international body now states that there is enough evidence to categorize gasoline as carcinogenic through the inhalation and dermal exposure. While the report and its conclusions are not expected to be published until 2026, they could start having legal ramifications.
In the U.S., federal agencies, including the EPA and the ATSDR, have determined that there is not sufficient evidence to link gasoline exposure to cancer in humans. This is not likely to change, especially now that the U.S. has withdrawn from the WHO. However, it is possible for personal injury lawsuits to begin emerging based on this assessment and its underlying studies. For instance, private citizens or organizations may seek to leverage California’s Proposition 65 to trigger regulations and even commence litigation.
EMA will monitor developments and collaborate with partner organizations to ensure there are no trickle-down effects.
The House and Senate returned to Washington this week, beginning a three-week legislative sprint to mid-April.
On Tuesday, Speaker Mike Johnson (R-LA), Senate Majority Leader John Thune (R-SD), and other congressional leaders met at the White House to break the weeks-long impasse between the House and Senate over budget reconciliation strategy. The leaders appear to have made considerable progress in teeing up action on Republicans’ tax, spending, and debt limit plans, with Leader Thune previewing a potential vote on a compromise budget resolution as soon as next week. Assuming House Republicans advance the compromise resolution before the two-week April recess, House and Senate Committees may soon begin the weeks-long process of drafting President Trump’s “big, beautiful” budget reconciliation bill. Drafting and advancing the comprehensive tax, border, energy, and spending legislation is likely to consume Congress’s attention over the coming months, with key deadlines to increase the federal debt limit and prevent tax hikes looming before the end of the year.
Also driving the news this week is President Trump’s continued trade and tariff actions. On Wednesday, President Trump announced a 25 percent tariff on all passenger vehicles imported to the United States, as well as certain automobile parts including engines, transmissions, and other components. During the White House announcement of the tariffs, Commerce Secretary Lutnick indicated the automotive tariffs would take effect on April 3, coinciding with several other tariff announcements expected during the first week of April.
Meanwhile, Congressional Republicans are also focusing on the Environmental Protection Agency’s (EPA) recent approval of California’s Advanced Clean Cars II and Advanced Clean Trucks regulations. These waivers, granted under the Clean Air Act, allow California to mandate electric drivetrains for light-duty and heavy-duty vehicles. However, industry leaders representing motor fuel retailers and suppliers are urging Congress to pass Congressional Review Act (CRA) resolutions disapproving of the waivers. The CRA resolutions would prevent California’s rules from effectively becoming a de facto national standard, preserving space for alternative technologies like biofuels and synthetic fuels. Speaker Johnson and Leader Thune are expected to weigh in on the matter as CRA votes may be scheduled in the coming weeks.
EMA, NACS, SIGMA and NATSO sent a letter to Congressional leadership to pass the CRA resolutions as soon as possible. Click here to read the letter.
Treasury Exempts Domestic Companies from BOI Reporting Requirement
This week EMA joined over 80 organizations, representing millions of Main Street businesses operating in every industry and community in America, in applauding the Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) for issuing the interim final rule on March 21, 2025, which revises the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA). The original CTA reporting requirements encompassed an estimated 32 million legal entities with 20 or fewer employees or $5 million or less in revenues, effectively targeting nearly every small business in the United States.
This rule appropriately narrows the scope of entities required to report BOI by exempting domestic reporting companies and U.S. persons who are beneficial owners of foreign reporting companies. By doing so, the Department has alleviated substantial compliance burdens that would have disproportionately affected law-abiding Main Street businesses, while also shifting to a risk-based enforcement protocol that will ultimately strengthen the effectiveness of the CTA.
EMA is actively monitoring developments inside the Beltway and at the agencies to ensure that energy marketers benefit from burden reduction mechanisms. EMA will keep you updated on any official actions. Again, as of now, marketers do not need to meet BOI reporting requirements as only people who are beneficial owners of foreign reporting companies are required to comply with the reporting requirements. Domestic companies are exempt.
House Lawmakers Urge White House to Crack Down on Chinese-made E-Cigarettes
Three House lawmakers sent a letter to the Trump Administration to act on the influx of unauthorized Chinese-made e-cigarettes and vapes sold in America. “The large-scale smuggling of these illicit vaping products – accounting for more than half of all vapes sold in the U.S. – undermines American public health priorities and contributes to a significant increase in youth vaping,” the members wrote. “Youth vaping as a general matter is dangerous and directly harms consumers, including minors in particular, but the continued importation of these unapproved products, often through deceptive transshipment tactics, also violates U.S. trade laws.” Click here to read the full letter.
EMA’s annual Washington Conference and Day on the Hill will be held in Washington, DC from May 14-16 at The Mayflower Hotel. Our industry continues to have many important legislative and regulatory issues to discuss, and the Day on the Hill remains the primary focus of this conference for you to meet with your members of Congress and network with other marketers from across the country!
Hotel reservations will close the earlier of April 23 at 6:00 pm Eastern or when the room block is sold out. Tuesday night (has reached capacity), Wednesday night (13 available), and Thursday night (10 available). We will most likely SELL OUT.
Registration must be received by April 23 to be included in our hotel guarantee.
| Click Here to Register and Book your Hotel Room for EMA’s DC Conference and Day on the Hill |
Energy Marketers of America Small Business Committee (SBC) PAC Co-Chairs Mike Downs and Tim Keigher would like to thank Amanda Gray and the Arizona Petroleum Marketers Association (APMA), Brian Clark and the Kentucky Petroleum Marketers Association (KPMA), Lewis Wall, Davenport Energy, Inc., and Tim Keigher and the Nebraska Petroleum Marketers and Convenience Store Association (NPM & CSA).
Amanda and the APMA donated a unique bottle of Clase Azul Reposado Tequila. It is an ultra-premium Tequila made of 100% Tequilana Weber Blue Agave. The 8-month aging gives this sipping Tequila an amazing balance, body, and flavor. Each bottle is hand-made and hand-painted by artisans in a village in Mexico, so each one is a unique piece. The Tequila comes with two handblown Mexican drinking glasses that are handmade by skilled artisans using techniques handed down from generation to generation.
The KPMA donated a Jerry Can Mini Bar handcrafted by our own KPMA state executive and craftsman, Brian Clark, this piece is unique, handmade with expert craftsmanship and built to last. A perfect addition to your man-cave, home bar or for tailgating. This bespoke jerry can mini bar is constructed of the highest quality, authentic steel gas can available with a poplar wood insert that holds your favorite bourbon, two rocks glasses, and two mixer sodas or beers.
Davenport Energy, Inc., donated a bottle of Russell Reserve Bourbon signed by the Bourbon Hall of Famer “Jimmy Russell.” Master Distiller Jimmy Russell was trained by the greats and inspired the next generation, passing down his time-honored secrets and bourbon contributions to his son, Eddie. Together they make Russell’s Reserve one of the only father-and-son Master Distiller teams in the industry. This single-barrel, non-chill filtered bourbon is unique, delivering a balance of rich, creamy toffee and vanilla notes with over 100 combined years of whiskey making experience. The bourbon comes with a set of Glencairn whiskey glasses. The Glencairn whiskey glass is an excellent addition for the times when you only want a sip of something, but don’t want to feel the emptiness of a tiny pour in a normal glass. Elevate your whiskey collection today!
Tim Keigher and the (NPCA) generously donated a box of cigars and a bottle of bourbon. The winning bid will enjoy one box of 24 Alec Bradley Magic Toast Toro Natural Cigars, which deliver a medium to full-bodied smoke with a slight natural sweetness, and one bottle of Whistle Pig 15, a subtle and nuanced whiskey.
The Auction will take place in conjunction with EMA’s Washington Conference May 14-16. Auction bidding will begin April 14 and will close during the conference on May 16 at 9:00 am. The auction items will be displayed at the Welcome Reception on May 14. Last year, there was tremendous support in auction contributions and PAC Co-Chairs Mike Downs and Tim Keigher urge your participation this year as well! Mike and Tim wish to remind you that donations can include the use of your personal vacation properties.
If you have items that you would like to contribute to the EMA SBC PAC Silent Auction or the MDF Fall Auction, please click here or contact Sabrina Pitcher at 703-351-8000.
Trump administration tells oil and biofuels groups to hash out new biofuel policy
Local disaster officials prepare for ‘a world without FEMA’ | E&ENews by Politico
Oil rises 1% as Trump plans tariff on countries that buy Venezuelan oil, gas | yahoo!finance
Supreme Court grapples with Clean Air Act venue disputes | E&ENews by Politico
Federated Insurance Employment Practices Network HR Question of the Month
Federated Insurance’s HR Question of the Month focuses on employment-related practices liability issues. This month’s question is: Arrest Record. As a last step in our hiring process, we require a candidate to pass a background check after they have been interviewed. Recently, a background check came back with an arrest listed. Are we allowed to turn down the candidate due to the arrest? Please click here to read the response.
For additional information or to discuss this in further detail, please contact your Federated regional representative or EMA’s National Account Executive Jack West at 262.719.7750 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.
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