This issue is packed with stories of progress and innovation across FUELIowa. Chair Tessa Anderson highlights our theme of continuous improvement—celebrating the outstanding renewal of the HEALTHAlliance member health plan, the new two-day UMCS Show format in St. Paul, and the launch of our Regional Legislative Roundtables and revamped committees shaping 2026 priorities. You’ll also find important federal updates from the Energy Marketers of America (EMA), and a can’t-miss 2026 Legislative Session Preview—so you’re ready to engage, help shape our legislative priorities, and be part of our Grassroots Advocacy plan. Exciting things are happening at FUELIowa!
MESSAGE FROM THE CHAIR
Dear FUELIowa Members,
Continuous improvement has long been a cornerstone of FUELIowa’s mission. Every initiative we undertake—whether through advocacy, education, or member services— aims to deliver greater value to the companies and people who keep Iowa moving.
This fall, I’m proud to share several examples of that commitment in action. First, we’ve made tremendous progress with HEALTHAlliance, FUELIowa’s member health plan now serving more than 75 member companies. Guided by our strategic plan, HEALTHAlliance achieved a remarkable renewal, outperforming industry benchmarks and proving that collaboration and scale can produce real savings. If your company hasn’t yet explored the plan, I encourage you to request a free quote and see the difference for yourself.
Next, we’re excited to introduce a new two-day format for the Upper Midwest Convenience Store & Energy Show (UMCS) in St. Paul. You’ll still enjoy all the great speakers, workshops, and networking opportunities—now with expanded show-floor time and a more efficient schedule.
On the advocacy front, we’re replacing our traditional Legislative Lunch & Learns with Regional Roundtables launching this December. These smaller, discussion-driven gatherings will foster deeper engagement and local problem-solving—perfectly complementing our revamped committees that are shaping FUELIowa’s 2026 legislative priorities to be voted on at our October Board Meeting.
I hope you’ll read our 2026 Legislative Preview in this issue and be ready to lend your voice as we continue to grow and improve—together.
we FUELIowa
Tessa
BOARD OF DIRECTORS
Chad Besch Director NEW Cooperative Algona | 515-295-2741
Don Burd Director Otter Creek Country Store Cedar Rapids | 319-533-1825
Wade Fowler Associate Director Core-Mark Midcontinent, Inc. DBA Farner-Bocken Carroll | 641-777-0308
Cara Ingle Associate Director Unified Contracting Services Des Moines | 515-266-5700
Dennis Jaeger Director Molo Petroleum Dubuque | 563-845-8359
Brett Kimmes Director Kimmes Country Stores Carroll | 712-775-2202
EXECUTIVE COMMITTEE
Tessa Anderson Chair Rainbo Oil Dubuque 563- 526-1179
Nate Lincoln Vice Chair Lincoln Farm & Home Service LLC Glenwood 712-527-4833
Jason Stauffer Treasurer NEWCENTURY FS Ames 515-370-3127
Keith Olsen Immediate Past Chair Olsen Fuel Supply Atlantic 712-243-2340
Scott Moore Director Western Oil, Inc Omaha | 402-618-2238
Scott Richardson Director Key Cooperative Roland | 515-291-0623
Nate Stumpf Director HTP Energy Onalaska, WI | 608-779-6624
Ed Rogers Associate Director Midwest Petroleum Equipment Des Moines | 515-330-2959
Together
Exciting Improvements at FUELIowa’s HEALTHAlliance
By Gary Koerner CEO, FUELIowa
How Our Trustees and Team Are Delivering Smarter, Stronger Benefits for FUELIowa Members
When FUELIowa created the HealthAlliance Benefit Plan (HABP), our mission was clear: to give our members access to a smarter way to offer employee benefits — one designed by and for Iowa’s fuel and convenience industry. This was not about building another health plan. It was about creating a strategic advantage for our members, keeping their teams healthy and their businesses strong.
Our strategy is working. In fact, the last eleven groups that have joined HABP, have seen savings of 21% on their premiums on average.
But we are not done. Just this past year, our trustees and staff have taken further strides and we are proud to share these improvements are delivering tangible results for your business.
This year, our medical & prescription drug renewal increase is under 4%, our dental renewal is flat, and our vision renewal is going down. Compare our 4% increase to the Iowa Average Benchmark of 10% on medical and 12% on prescription drug.
Our Trustees: Leaders Driving Change
HABP is governed by a dedicated board of trustees who represent member companies from across Iowa. These individuals volunteer their time and expertise to make sure the plan stays competitive, financially sustainable, and member-focused.
This year, we welcomed new trustees, Tera Petersen of Al’s Corner Oil, Adrian Dickey of Dickey Transport, and Raelyn Barkley of Olsen Fuel Supply. They are joining our dedicated team led by our Chair Andrew Woodard of Elliott Oil, Brooke Lilley of Jet Gas, and Lisa Abens of Wessels Oil.
Our Trustees bring fresh perspectives and deep industry experience. Their input has been instrumen¬tal in guiding important updates to plan design, financial strategy, and member services. Together, the board and our advisors are making sure HABP continues to be an extension of your company — not just a vendor.
Investments That Deliver Value
The trustees have made bold decisions to strengthen the plan’s financial position and keep rates low. Remember, HABP is designed by members, for members — a benefit strategy tailored to our industry.
Here is what that means for you:
Stop-Loss & Risk: Due to strong reserves and actuarial investment, HABP has positioned itself to absorb more risk
of large claims saving money on stop-loss insurance. By doing so, our employer groups are now seeing lower premiums.
New Actuarial Partner: We partnered Milliman out of Milwaukee to sharpen our underwriting and pricing models and better predict trends, giving members more stability year after year. Milliman is one the largest actuarial firms in the world.
Expanded Ancillary Products:
In addition to dental, vision, life, and disability, we recently added workplace protection products at competitive rates, and we now manage COBRA administration for our members, creating a one-stop shop for all your employee benefits.
Plan Design Adjustments: The Trustees recently approved changes to our Copay and pharmacy structures which have been carefully adjusted to control costs while preserving robust coverage and network access.
Better Coverage, Broader Networks With HABP, your employees gain access to the strongest network in Iowa:
• HABP members enjoy 100% of Iowa hospitals and 99% of Iowa physicians through Wellmark Blue Cross and Blue Shield
• Nationwide access to 96% of hospitals and 93% of providers
• Telehealth through Doctors on Demand for convenience and cost savings
• Consolidated Billing & Streamlined Enrollment and Built-in compliance support – frees up your team to focus on what matters most – running your business.
An Extension of Your Business
Joining HABP is not just buying coverage — it is gaining a partner. Our experts are a phone call away, ready to help with compliance questions, billing issues, or employee benefit guidance. We know your business, and we are here to help you keep it running smoothly.
It is Easy to Explore Your Options
If you are not yet a member of HABP, now is the perfect time to find out what HABP can do for your business. Getting a free quote is fast and easy — no obligation and no hassle.
HABP is your strategic ally — allowing you to focus on growing your business while we handle the complexity of benefits.
Call: Mary Johnson at 515-237-0121 to learn more or get a FREE QUOTE.
Email: mary.johnson@AssuredPartners. com
Learn More: HealthAllianceBenefitPlan. com
Looking Ahead
The trustees and I are committed to building on this momentum. We will continue to refine plan design, explore innovative cost-containment strategies, and expand member services to make HABP the most competitive solution available for Iowa businesses.
Thank you to every trustee and member company who has helped make HABP what it is today. Your leadership and participation are creating a healthier, more secure future for our entire industry.
HEALTHALLIANCE OFFERS DOCTORS-
ON-DEMAND: WHY IT IS WORTH TRYING
By Gary Koerner CEO, FUELIowa
As you know, FUELIowa’ s HEALTHAlliance is focused on providing our members with the best possible care at the most affordable rates.
Healthcare is changing — telehealth, and especially on-demand doctor services, now plays a vital role. For those who have never used it, here is why it is worth considering — and how employers or plan sponsors can make it effective.
Why Doctorson-Demand Is So Valuable
Convenience and access
One of the biggest barriers to care in rural areas is distance and travel time. Doctors on Demand (DOD) eliminates the need to drive (sometimes many miles) just to see a clinician. Patients can connect from home, work, or wherever they are — reducing the time spent in traffic, parking, waiting rooms, etc. Studies show that DOD can reduce travel burdens and waiting times, making care more accessible for rural populations
Cost savings for patients, employers, and plans
DOD tends to be significantly less costly than in-person visits, urgent care, or emergency department visits (for comparable lowacuity cases). For example, one employer-sponsored telemedicine program (Penn Medicine OnDemand) found telehealth visits were about 23% less expensive than comparable in-person visits, saving $113 per encounter.
From a plan perspective, each DOD visit diverted from an urgent care or ED visit averts higher costs, which over time can reduce claims frequency and total medical spend.
Plus, HealthAlliance’s DOD program has $0 member cost share, including on our high-deductible health plans.
Quality & outcomes
DOD is not just “second best” — for many conditions, care delivered can be equivalent in outcome to in-person visits. It also facilitates more frequent check-ins, better adherence, and earlier intervention
(which can prevent deterioration into more expensive care).
How to Use Doctors-onDemand
Why people should try it
• For non-emergency, low-tomoderate conditions: respiratory infections, sinusitis, allergies, skin conditions, minor urinary issues, medication refills, and followups.
• For convenience: nights, weekends, or when your local office is closed.
• For avoiding travel: ideal if you live far from clinics or have mobility/transportation constraints or small children.
• For mental health: 1 in 5 adults live with mental conditions and 60% do not receive the treatment they need.
1. Scan the QR code to download the Doctor on Demand app or visit DoctorOnDemand.com/ Wellmark
2. Have your Wellmark Blue Cross and Blue Shield member ID card ready.
3. Create an account or sign in to begin your visit.
4. Pick your provider. Select the next available appointment or find the time best for your schedule.
For Employers & HR / Benefit Leaders
Promote usage early and often
• Communicate via email, posters, intranet, onboarding, etc.
• Provide quick “how-to” instructions and FAQ.
• Highlight convenience, cost savings, and that is part of the benefit package.
Incentivize adoption
• Make your team aware that HABP offers $0 copays for DOD visits.
• Set goals or campaigns (e.g., “Try one DOD visit this quarter”).
Track metrics
• Monitor your DOD adoption rate, visits per 1,000, deferral of ED / urgent care visits.
• Measure claims reductions in in-person visits, urgent care, and ER.
• Share success stories or testimonials to encourage use.
Doctors on Demand is not just a convenience — it is a smart, costeffective way to deliver care, especially in rural areas. They reduce travel, save time, and shift loweracuity care out of expensive settings. For individuals, they are easier to use than ever; for employers and health plans, they help bend the cost curve. With clear communication, incentives, and tracking, DOD can become a trusted, widely used part of your benefits offering — and deliver measurable savings over time.
UMCS Unveils
Upgraded Two-Day Format for 2026 ConventionTwo Days. All In.
By Sarah Bowman Director, Communications & Events FUELIowa
SAVE THE DATES - APRIL 1 & 2, 2026! Registration will open on December 1st! Get ready for more energy, more connections, and more reasons to be in St. Paul this April!
September 17, 2025 –The Upper Midwest Convenience Store & Energy Convention (UMCS) is turning up the volume in 2026 with a brand-new, action-packed two-day format at the St. Paul RiverCentre, April 1–2, 2026.
This isn’t just a schedule change— it’s a total upgrade. By transforming two half days into a full-throttle two-day experience, UMCS is delivering more time on the show floor, more networking, and more of the high-energy events attendees and exhibitors love.
Here’s why 2026 will be the biggest and boldest UMCS yet:
• More Time on the Show Floor – Explore, connect, and discover at a pace that works for you.
• Casino Night – The tradition continues with high-energy fun and unforgettable memories.
• Live Entertainment – Enjoy the high quality entertainment you've come to expect from UMCS!
• TWO Happy Hours on the Show Floor – Because one wasn’t enough! Double the networking, double the fun!
• Power-Packed Education Sessions – Fresh insights on the latest trends, policy, and strategies driving the industry.
UMCS 2026 isn’t just an event— it’s the must-attend experience for the fuel and convenience community in the Upper Midwest. Mark your calendars now: April 1–2, 2026. Be there when the new era of UMCS kicks off at the St. Paul RiverCentre!
• Unmatched Networking Opportunities – Build the partnerships that power your business forward.
“UMCS has always been about creating the best convention experience in the Midwest, and in 2026 we’re raising the bar,” said Tyler Freyberg, UMCS Committee Chairman. “This enhanced format is designed to maximize impact for exhibitors and attendees, with more opportunities to connect, learn, and celebrate our industry together.”
For updates and details, visit www.umcs.energy
Media Contact:
Sarah Bowman Director, Communications
& Events
FUELIowa / UMCS 515-224-7545
From Lunch & Learns to Regional Roundtables: Why You Should Attend
By Sarah Bowman Director, Communications & Events FUELIowa
Change is in the air at FUELIowa. For years, members and stakeholders have gathered over meals to hear updates, ask questions, and discuss legislative trends at the “Legislative Lunch & Learns.” But now, the association is reimagining the format — transitioning to Regional Roundtables.
Why the pivot? And why should members make these a mustattend for 2025–2026? Here’s the story.
A Strategic Shift: More Local. More Interactive.
FUELIowa leadership has recognized that the traditional Lunch & Learn, though effective, had limitations:
• Attendance was often centralized or driven by
geography (i.e. those closest to the host city).
• The format was somewhat passive — a presentation delivered over a meal, with limited small-group dialogue.
impacts; fuel, regulatory, and infrastructure issues often differ from one part of Iowa to another.
— both in terms of location and in terms of relevance. According to John Maynes, President of Government Affairs, “the
Dates & Locations
Regional Roundtables and their details for late 2025:
• Legislative updates are increasingly regional in their What remains the same (or improved):
West Council Bluffs (McCoys Thunderbowl)
West Central Carroll (Carrollton Inn)
East Dubuque (Hotel Julien)
East Central Riverside (Riverside Casino & Golf Resort)
To meet these challenges, FUELIowa has rebranded and restructured. The Regional Roundtables will bring the conversation closer to members and help guide advocacy.
Roundtables are positioned as your front-door opportunity to engage with peers and policymakers in your region.”
Thursday, December 3, 2025 11:00 a.m.–1:00 p.m.
Wednesday, December 4, 2025 11:00 a.m.–1:00 p.m.
Wednesday, December 10, 2025 11:00 a.m.–1:00 p.m.
Thursday, December 11, 2025 11:00 a.m.–1:00 p.m.
• Legislative & regulatory intelligence: You’ll still hear from FUELIowa’s government affairs team on fuel policy, tax, environment, compliance, and infrastructure topics.
• Member value & ROI: Rather than just passive listening, you get direct influence, more relevant content, and better peer-to-peer exchange.
• Opportunity to engage with leadership: FUELIowa board, staff, and legislators are expected to attend roundtables to hear feedback
• Help FUELIowa focus resources. By sharing what’s most important in your region, you help guide FUELIowa’s advocacy, resources, and statewide strategy. Regional
Why Attend? Member Benefits at a Glance
• Stay ahead of regulatory change. The fuel industry is under constant pressure from environmental, taxation, and infrastructure fronts. The Roundtables will help members get realtime insight.
• Shape policy with your voice. Smaller, regional forums mean your local concerns are more visible — you won’t be one voice in a large room.
• Build closer industry
connections. Many challenges in fuel distribution, retailing, logistics, and regulation are shared in your region. You’ll find peers with similar issues.
• Save time and cost. No long road trip: get relevant, critical content close to your area.
Tips to Make the Most of our
1. Come prepared. Bring a few burning questions or challenges from your operation—roadwork, permitting, taxation, mandate compliance, zoning, fuel supply.
2. Engage. Don’t hesitate to speak in the discussion periods — your peers likely have similar experiences.
3. Follow up. After the event, connect with FUELIowa staff and elected representatives.
4. Provide feedback. Let FUELIowa know what topics mattered most or regionspecific issues that weren’t addressed so they can adjust future content.
5. Encourage colleagues. Invite other members — the more voices, the more weight the region carries.
A Forward-Looking Format for a Dynamic Industry
By shifting from central Legislative Lunch & Learns to Regional Roundtables, FUELIowa is adapting to the evolving realities of Iowa’s fuel sector.
The new format recognizes that policy, infrastructure, and operational issues are increasingly local — and that members’ time is precious.
For 2025 and beyond, attending your region’s Roundtable isn’t just a good idea — it’s essential for staying informed, connected, and influential. Be sure to check FUELIowa’s events calendar for updates, register early, and bring your insights to the table.
Register on the FUELIowa website under Events. Together, We FUELIowa.
By John Maynes, President, Government Affairs, FUELIowa
With summer in the rearview mirror and fall firmly upon us, your advocacy team at FUELIowa is rapidly preparing for the 2026 Iowa Legislative Session. The upcoming session presents several unique dynamics that will influence its agenda, tone, and timeline — making grassroots engagement by FUELIowa members more important than ever.
A High-Stakes Election Year
The most defining backdrop to the 2026 session is the electoral calendar. Iowa will hold a contested gubernatorial election following Governor Kim Reynolds’ announcement that she will not seek reelection. The presumptive Democratic nominee, State Auditor Rob Sand, is expected to face a strong Republican field led by Congressman Randy Feenstra of Iowa’s 4th District.
Beyond the Governor’s race, voters will also decide the outcome of a U.S. Senate seat, all congressional seats, and dozens of state House and Senate races. Traditionally,
election years are quieter at the Capitol, with lawmakers focusing on constituent work and the campaign trail. But 2026 may prove an exception.
Policy Flashpoints from 2025
Several unresolved issues from the 2025 session are sure to reemerge. Chief among them is the contentious carbon capture pipeline debate. Governor Reynolds’ veto of legislation regulating pipeline development triggered visible divisions within the Republican Party, ensuring the issue will resurface in 2026.
In addition, Iowa’s commercial and residential property tax levies remain a pressing concern for both citizens and businesses. Rising valuations have intensified calls for relief, and lawmakers are expected to pursue meaningful reform. As always, broad tax reform proposals will also place scrutiny on state revenues and the general fund, shaping the fiscal debates of the session.
Leadership Transitions
The 2025 interim has brought notable leadership changes within the General Assembly. In the House, Majority Leader Matt Windschitl stepped down to pursue a run for Congress, opening the door for State Representative Bobby Kaufmann to assume the Majority Leader role. Kaufmann’s successor as House Ways and Means Chair has yet to be announced, leaving questions about the direction of the committee that oversees tax policy.
In the Senate, longtime Majority Leader Jack Whitver stepped aside, and Senate Republicans elected
Senator Mike Klimesh of Spillville as their new leader. FUELIowa extends gratitude to Senator Whitver for his service and looks forward to working with Senator Klimesh in his new role. These leadership changes will undoubtedly shape legislative priorities and styles of negotiation in the upcoming session.
FUELIowa’s Grassroots Priorities
While these broader state issues capture headlines, FUELIowa is focused on advancing the priorities identified through our grassroots committee process. This memberdriven model ensures that the policy agenda reflects the real-world challenges facing small business fuel marketers across Iowa.
Property tax reform is a top concern, especially given the unique challenges our members face in relation to aboveground storage tanks and equipment. But the scope of issues doesn’t stop there. Member committees have also identified:
• State liquor sales reform –modernizing distribution rules that impact many convenience-based fuel retailers.
• Credit card swipe fee reform – ensuring fair treatment for small retailers facing rising transaction costs.
• Potential excise tax increases – monitoring excise tax proposals on traditional tobacco products, alternative nicotine products, and motor fuels to ensure fairness and competitiveness.
Each of these issues has surfaced through committee discussions, reflecting the grassroots voices of members from across the state.
The Committee Process in Action
• Equitable tax treatment of aboveground storage tanks –correcting assessment practices that unfairly inflate property tax burdens.
FUELIowa’s committees play a vital role in transforming local business challenges into statewide policy priorities. Throughout 2025, committees gathered member input, debated solutions, and provided recommendations to the association’s Board of Directors. At its upcoming October 28 meeting, the Board will finalize FUELIowa’s 2026 legislative agenda, shaped directly by this year-long grassroots process.
This structure ensures that every member — whether operating in a rural community or an urban corridor — has a pathway to influence the association’s advocacy. With members in all 99 counties, there is not a single House or Senate district where lawmakers don’t hear from a FUELIowa business. That presence is the backbone of our credibility and effectiveness at the Capitol.
As we prepare for the 2026 session, the message is clear: our strength lies in our members. The issues on the horizon — from property taxes to excise tax debates — demand input from business owners who live
the consequences of legislative decisions every day.
Members interested in shaping FUELIowa’s policy direction are strongly encouraged to join a committee. Participation amplifies your voice but also ensures lawmakers and state agencies hear firsthand how policies affect Iowa’s fuel distribution network.
The 2026 Iowa Legislative Session promises to be shaped by elections, unresolved policy battles, and shifting leadership at the Capitol. Against this backdrop, FUELIowa’s grassroots committees provide the most
effective mechanism for advancing a fair and competitive business environment for small fuel marketers. By sharing their experiences and expertise, members help the association turn challenges into legislative solutions.
As the session approaches, FUELIowa remains committed to ensuring that the voices of Iowa’s independent fuel marketers are heard — in every committee room, agency meeting, and legislative debate. Together, through grassroots advocacy, we can continue building a business environment where Iowa’s small fuel marketers not only survive but thrive.
FUELIOWA REGULATORY SERVICES: STREAMLINING BILLING PROCESS
By Jim Ewing, Director, Membership & Business Services
At FUELIowa, we know running a fuel business isn’t easy, and keeping up with all the rules and regulations can feel like a fulltime job on its own. That’s why we serve as an extension of your business, and we are making a small change to make life a little simpler for our members: starting next year, several of our Regulatory Services will move to an annual billing cycle.
Here’s what that includes:
• Drug & Alcohol Testing and CDL Clearinghous
• Storage Tank Leak Detection and Compliance Program
• FUELIowa 24-Hour Emergency Response Program
• FUELIowa Unattended Site Monitoring Program
The billing will now follow the calendar year, which helps spread things out and offset our fiscal year membership dues that hit at the beginning of July. Fewer invoices, simpler planning, and one less thing on your plate—sounds good, right?
Don’t worry — the services themselves won’t change. You’ll still get the same dependable compliance support and peace of mind you’ve come to expect from FUELIowa Regulatory Services. We hope this change makes it a little easier to focus on running
your business and keeping things humming along smoothly. If you’ve got questions or need a hand with any of our regulatory services, don’t hesitate to give me a call.
SAVE THE DATE
FUELIowa SUMMERFEST Returns to Okoboji
August 6–7, 2026
Get ready to head back to the lake! FUELIowa SUMMERFEST is returning to beautiful Okoboji on August 6–7, 2026, and you won’t want to miss it. After a year away, we’re bringing our signature summer event back to Okoboji—complete with great networking, lakefront fun, and the relaxed atmosphere that makes SUMMERFEST a member favorite.
Our plan is to alternate years and will return to Des Moines in 2027.
Mark your calendars now and start planning for two days of connection, conversation, and celebration with Iowa’s fuel and convenience industry leaders.
Details on registration, lodging, and sponsorship opportunities will be announced soon—but for now, save the date and get ready for Okoboji 2026!
WE GO ABOVE, BEYOND, AND BELOW.
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CALENDAR OF EVENTS
DECEMBER 3, 2025
WEST REGIONAL ROUNDTABLE Council Bluffs, Iowa
DECEMBER 4, 2025
WEST CENTRAL REGIONAL ROUNDTABLE Carroll, Iowa
DECEMBER 10, 2025
EAST REGIONAL ROUNDTABLE Dubuque, Iowa
DECEMBER 11, 2025
EAST CENTRAL REGIONAL ROUNDTABLE Riverside, Iowa
JANUARY 13, 2026
GRASSROOTS ADVOCACY KICK-OFF Des Moines, Iowa
JUNE 8, 2026
RIVERSIDE CASINO AND GOLF RESORT Riverside, Iowa
AUGUST 6-7, 2026
SUMMERFEST Okoboji, Iowa
FUELIOWA FILES AMICUS CURIAE BRIEF IN ONGOING ABOVEGROUND TANK PROPERTY TAX LITIGATION
By John Maynes, President, Government Affairs, FUELIowa
In 2021, FUELIowa began examining the widespread taxation of aboveground storage tanks (ASTs) at member facilities across Iowa. Discussions with operators revealed a troubling trend: the majority of bulk fuel storage facilities were having their ASTs included in county property tax assessments, despite case law suggesting otherwise. At the direction of its Board of Directors, FUELIowa committed to pursuing relief on behalf of its members, with the goal of ensuring fair, consistent, and lawful property tax treatment across all 99 counties.
Early Litigation and the McDermott Propane Decision
In 2022, the Dubuque County District Court ruled against McDermott Propane, LLC, holding that its propane tanks were taxable real property. With FUELIowa’s support, McDermott appealed. The Iowa Court of Appeals reversed, concluding that three 30,000-gallon propane tanks constituted unattached equipment—movable property not
subject to taxation as real estate.
This ruling provided critical clarity and resulted in the removal of the tanks from McDermott’s assessment upon settlement. Importantly, it established a precedent confirming that ASTs are not permanent fixtures but equipment that can and should be treated consistently across jurisdictions.
Coordinated Resistance from County Assessors
Despite the growing body of legal precedent, county assessors and boards of review across Iowa have resisted granting relief. Instead, many counties appear to have coordinated strategies to deny appeals at the local level, forcing small business owners to shoulder the financial burden of pursuing relief in District Court or before the Iowa Property Assessment Appeals Board (PAAB).
This approach effectively weaponizes process costs against taxpayers, creating an uneven playing field. Yet when
appeals were pursued, counties repeatedly settled before trial, with ASTs removed from assessments regardless of content, size, or orientation. These outcomes reinforce that the original assessments lacked legal merit.
PAAB and the Growmark Case
Momentum further solidified in Growmark Inc. v. Chickasaw County Board of Review. In that case, PAAB rejected the Board’s motion for summary judgment and instead entered judgment for Growmark, ordering nearly $2 million in ASTs to be removed from its property tax assessment. PAAB’s decision referred to more than 100 similar appeals filed statewide, underscoring the systemic nature of the issue.
Nevertheless, county assessors escalated their resistance, pooling resources to hire outside counsel and even lobbyists to protect against passage of state legislation. This continued expenditure of taxpayer dollars prolongs uncertainty for businesses and undermines uniform application of Iowa tax law.
FUELIowa’s Amicus Curiae Brief
With the Chickasaw County case now before the Iowa Supreme Court, the stakes could not be higher. Recognizing the broader implications, FUELIowa’s Board of Directors authorized the filing of an amicus curiae brief in Chickasaw County Board of Review v. Property Assessment Appeal Board and Growmark, Inc.
An amicus brief allows a non-party with a strong interest to provide the Court with additional context. FUELIowa’s submission emphasizes three critical points:
1. Equity – AST owners should not be disadvantaged compared to other similarly situated businesses.
2. Uniformity – Consistent
3. Fiscal Responsibility – County assessors’ continued litigation, funded by taxpayers, wastes public resources in pursuit of arguments already rejected by multiple courts.
Counsel for the Chickasaw County Board of Review has opposed FUELIowa’s participation, but FUELIowa has filed a reply defending its right to present these broader policy concerns. The matter is under review by the Iowa Supreme Court.
Looking Ahead
The Iowa Supreme Court is expected to hear the case in late 2026. Its ruling will shape the future of AST taxation across Iowa, determining whether property owners receive the consistent and equitable treatment that both the Court of Appeals and PAAB have already affirmed.
Until then, FUELIowa strongly encourages members to continue pursuing appeals before PAAB. Members approached by opposing counsel, including Willson & Pechacek, P.L.C., are urged to contact FUELIowa immediately for support.
FUELIowa remains steadfast in its commitment: to ensure fairness for its members, consistency in the application of Iowa tax law, and accountability in the use of taxpayer dollars.
Round-up your purchase in support of Camp Courageous of Iowa.
CAMP COURAGEOUS OF IOWA
is a year-round respite care and recreational facility for individuals of all ages with disabilities. The camp was established in 1972 with the first 211 campers attending in the summer of 1974. Today, Camp Courageous serves nearly 10,000 individuals with disabilities in a year-round program.
FUELIowa members support Camp Courageous of Iowa in their e orts to bolster individuals with disabilities.
NOVEMBER 2025
Round-up your purchase in support of Camp Courageous of Iowa.
CAMP COURAGEOUS OF IOWA
is a year-round respite care and recreational facility for individuals of all ages with disabilities. The camp was established in 1972 with the first 211 campers attending in the summer of 1974. Today, Camp Courageous serves nearly 10,000 individuals with disabilities in a year-round program.
FUELIowa members support Camp Courageous of Iowa in their e orts to bolster individuals with disabilities.
INSIDE THE BELTWAY
The View from Capitol Hill: Legislating in 2025, Campaigning for 2026
Congress returns next week from the August recess and Labor Day holiday facing just 16 legislative days to fund the government and address several must-pass items before the September 30 shutdown deadline.
House Republicans plan to move a series of appropriations bills across the floor in early and late September, while the Senate is readying bipartisan funding measures. Ultimately, negotiations between Speaker Mike Johnson (R-LA), Majority Leader John Thune (R-SD), and Democratic leaders are expected to center on a short-term continuing resolution (CR) to avert a shutdown. With limited legislative vehicles left this year, that CR could also become a vehicle for other policy priorities needed to win support from both conservative Republicans and House Democrats.
Republicans are also weighing a second reconciliation bill to advance tax cuts and roll back Biden-era programs, a move that would bypass the Senate filibuster and deliver another win ahead of the 2026
midterms. At the same time, attention is turning to the Farm Bill. Although the “Big Beautiful Bill” addressed roughly half of its usual scope, House Agriculture Committee Chairman G.T. Thompson (R-PA) insists on passing a full reauthorization this year. The House version of the 2024 Farm Bill cleared committee in May 2024, but despite promises from House Republican leadership, the measure never reached the floor. The 2024 Farm Bill stalled on the House floor, forcing a one-year extension (the second in two years) that now expires September 30, 2025.
While the funding deadline looms, Washington is already shifting focus to the 2026 midterm elections
Last week, the Texas Legislature approved a redrawn congressional map expected to give House Republicans an edge in five seats beginning in 2026. The results set off a broader redistricting fight in states such as California, Indiana, and more are anticipated. According to the most recent analysis from the Cook Political Report, the new Texas map increases the Republicans' odds of winning the House from 73% in April to 92% today.
Despite a Senate map that appears to favor Republicans, Democrats are increasingly optimistic about their chances of retaking the Senate in 2026. The GOP message around President Trump’s marquee legislative package the “Big Beautiful Bill” is not resonating with constituents. Meanwhile, Democrats recruited high-profile candidates including Rep. Chris Pappas (NH), former Gov. Roy Cooper (NC), and former Sen. Sherrod
Brown (OH). Republicans, meanwhile, face contentious primaries in must-win states like Georgia and Texas where Republican infighting could bolster Democrats.
Race predictions and polling only mean so much and these numbers will change significantly in the 14 months leading up to the election. For context, in August 2017 – 14 months ahead of the 2018 midterms - Republicans were predicting to win 234 seats. This number fell to 216 by August 2018 and 207 by November. On election night, Republicans won just 199.
In anticipation of the midterms, President Trump and Congressional Republicans must turn control of Congress and the “Big Beautiful Bill” into visible, voter-friendly results while avoiding messy primaries and unforced errors. Democrats see opportunity through recruiting popular statewide candidates, strong fundraising, and voter skepticism of Republican leadership in 2025. Over the next 6–9 months, whether President Trump and Congressional Republicans can deliver tangible gains for the American people will shape the battlefield for November 2026.
EMA’s Preliminary Analysis on EPA’s Proposal to Rescind Vehicle GHG Standards
On August 1, 2025, the U.S. Environmental Protection Agency (EPA) issued a proposed rule to
rescind its 2009 greenhouse gas (GHG) “Endangerment Finding” for mobile sources and repeal all associated GHG emission standards for light-, medium-, and heavy-duty vehicles and engines. If finalized, this would reverse nearly two decades of regulatory policy and significantly reshape the liquid fuels marketplace.
The 2009 Endangerment Finding established six GHGs—including carbon dioxide and methane—as “air pollutants” under the Clean Air Act (CAA), triggering EPA’s duty to regulate motor vehicle GHG emissions. That determination drove increasingly stringent vehicle standards and accelerated automaker investment in efficiency technologies and electric vehicles. By proposing to rescind the Endangerment Finding for motor vehicles, EPA aims to eliminate the legal basis for mobile-source GHG regulation altogether, repealing test procedures, fleet-average requirements, and compliance mechanisms. EPA stresses that other pollution controls (e.g., National Ambient Air Quality Standards and hazardous air pollutant rules) remain in place, as do fuel economy standards overseen by the Department of Transportation.
EPA offers several rationales for its action:
• Statutory scope: The Agency argues the CAA was not intended to cover globally mixed pollutants like GHGs under Section 202(a), which addresses localized public health threats.
• Judicial precedent: Citing Loper Bright Enterprises v. Raimondo (2024) and West Virginia v. EPA (2022), EPA asserts that
regulating GHGs as pollutants presents a “major question” that requires clear congressional authorization.
• Scientific and procedural flaws: EPA questions the methodology and scientific certainty underpinning the 2009 Finding and argues that it lacked adequate cost-benefit analysis.
EPA also concludes that rescission would not open the door to state GHG vehicle standards, as the CAA continues to preempt state regulation of new motor vehicles and engines. This position is likely to be contested by California and other states seeking to advance climate initiatives.
Implications for EMA Marketers
• Market Outlook: Repealing GHG vehicle standards could slow electrification and advanced fuel mandates, sustaining demand for liquid fuels.
• Regulatory Uncertainty: Any final action will face immediate litigation from environmental groups, states, and possibly industry, prolonging uncertainty.
• State-Federal Tensions: While EPA asserts federal preemption, state challenges could revive the longstanding battle over a patchwork of vehicle emission requirements.
As the repeal could reduce regulatory pressure on liquid fuels but also
introduce prolonged uncertainty, EMA will remain engaged to ensure that any policy changes preserve consumer choice and support fuel markets.
EPA Proposes to Disapprove California’s
“Clean Truck Check” Rule
On August 25, the U.S. Environmental Protection Agency (EPA) proposed to disapprove California’s “HeavyDuty Inspection and Maintenance Regulation,” known as the Clean Truck Check rule. Developed by the California Air Resources Board (CARB) as a revision to the state’s implementation plan (SIP) under the Clean Air Act (CAA), the rule would establish periodic emissions testing for heavy-duty diesel and alternativefuel vehicles over 14,000 pounds operating on California roads. EPA’s central concern is that the rule would apply not only to California-registered vehicles but also to trucks from out-ofstate, raising issues of extraterritorial enforcement.
Under the CAA, EPA sets national ambient air quality standards (NAAQS) for criteria pollutants such as nitrogen oxides and particulate matter. States must adopt SIPs showing how they will attain and maintain those standards, and once approved by EPA, SIPs become federally enforceable. With several regions of California still in nonattainment, CARB argues the Clean Truck Check rule is critical to reducing emissions from heavyduty vehicles, which account for more than half of the state’s onroad emissions. CARB projects
that by 2037, the program would significantly reduce nitrogen oxides and particulate matter emissions tonnages, driving significant progress for attainment.
EPA, however, emphasized that this design effectively creates a backdoor emissions standard with nationwide implications, extending California’s regulatory authority beyond its borders. If finalized, EPA’s action would prevent California from establishing and enforcing the Clean Truck Check regulation. This outcome carries important implications for EMA companies that service California markets, as it would affect compliance planning and operational costs associated with fleet emissions monitoring.
More broadly, EPA’s proposed disapproval reflects ongoing tensions over federalism, preemption, and the limits of state authority in regulating vehicle emissions. The proposal is open for a 30-day public comment period, ending September 25, 2025. EMA will continue to track developments closely and advocate against regulations that restrict interstate commerce, disrupt fuel markets, or limit consumer choice.
EPA Acts on SRE Backlog, Signals
Potential for Future Reallocation
EPA’s ongoing Renewable Fuel Standard (RFS) rulemaking for 2026 and 2027 raises renewed concerns about how the Agency will treat Small Refinery Exemptions (SREs). While EMA takes no position on the merits of granting individual exemptions, the association strongly opposes reallocation of exempted volumes.
Reallocation alters compliance obligations and injects volatility into downstream fuel markets, disproportionately impacting small business fuel marketers. On August 22, however, EPA appeared to confirm that reallocation of exempted volumes may be part of the program going forward when it announced actions on SRE petitions from the 2016 – 2024 compliance period.
Reallocation occurs when EPA redistributes exempted volumes across other obligated parties, effectively raising their compliance burdens. This practice can inflate Renewable Identification Number (RIN) values and destabilize wholesale fuel pricing. For small and mid-sized marketers operating on tight margins, these swings undermine long-term planning and often must be absorbed or passed along at the pump.
While EPA’s action on the backlog of SRE petitions is a positive development, revealing some of the agency’s approach to SREs, the future of SRE petitions remains unsettled, with ongoing litigation and unresolved questions exemption criteria. Even EPA acknowledges in the RFS proposal that there is “significant uncertainty regarding the number of petitions that could be granted for 2026 and 2027.” While EPA has attempted to mitigate volatility with upper and lower bound projections, these measures cannot eliminate the risks associated with reallocating volumes in a highly fluid regulatory environment.
In the submitted comment letter, EMA urged EPA to reject reallocation to preserve stability
and transparency in the RFS program. Policy choices that inflate RIN values or distort wholesale pricing ultimately impose disproportionate hardships on small businesses and their customers.
“A consistent and predictable approach to SRE exemptions is essential for maintaining a level playing field and shielding consumers from unnecessary price swings. Rejecting reallocation represents the clearest path to predictability,” said EMA President Rob Underwood.
September 5, 2025
FMCSA Revokes Three Electronic Logging Devices
On September 4, 2025, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) revoked three electronic logging devices (ELDs) from its list of registered devices after finding that they failed to meet the minimum requirements under Title 49 CFR Appendix A to Subpart B of Part 395. This is on top of other revocations in previous months. The affected devices are:
Motor carriers currently using any of the revoked devices must take immediate steps to maintain compliance with federal Hours of Service (HOS) regulations. FMCSA has established a 60-day transition period, ending November 3, 2025, during which carriers are required to:
1. Discontinue use of revoked devices and revert to paper logs or compliant logging software to record HOS data.
2. Obtain and install a compliant device from FMCSA’s Registered Devices list.
Until November 3, 2025, FMCSA has instructed safety officials to exercise enforcement discretion not to cite drivers using these revoked ELDs for violations such as no record of duty status or failing to use a registered ELD. During the transition period, safety officials will instead review paper logs, logging software, or the revoked ELD display as a backup method to verify compliance.
Beginning November 3, 2025, drivers and carriers continuing to use the revoked devices will be considered to be operating without an ELD. At that time, safety officials are recommended to cite for failure to maintain a record of duty status and place non-compliant drivers out-ofservice.
If an ELD provider corrects all deficiencies that led to its removal, FMCSA may reinstate the device to the Registered Devices list and will notify the industry of the update. However, FMCSA is urging motor carriers not to delay
corrective action. Carriers that wait for potential reinstatement risk falling out of compliance if providers fail to resolve the deficiencies. Given the multiple revocations in the past months, carriers should consult with an updated ELD registered list.
Federal Court Upholds EPA Termination of Climate Grants
On September 2, the U.S. Court of Appeals for the D.C. Circuit ruled that the Trump Administration can proceed with terminating more than $16 billion in climate grants initially funded under the Inflation Reduction Act. These funds had been awarded to eight nonprofit organizations to support programs aimed at electrification initiatives, particularly subsidies for electric heat pumps.
The court found that EPA had discretion to withhold or terminate the grants. By a 2–1 decision, the panel determined that challenges brought by nonprofit grantees should largely be heard by the Court of Federal Claims, since they were contractual in nature with the federal government. While key aspects of the legal dispute remain unresolved, the ruling could lead the Trump EPA to redirect funding towards its own policy priorities. Additionally, the One Big Beautiful Bill repealed the grant program at issue, eliminating the expenditure of uncommitted funds.
For heating oil marketers, the decision underscores the shifting landscape of federal energy policy. The prior administration prioritized electrification pathways without comparable support for lower-carbon liquid fuels such as Bioheat® or for energy-efficient oilheat boilers and furnaces. With these grant programs no longer locked into a single electrification strategy, industry stakeholders have an important opportunity to press for recognition of liquid fuels as a viable, immediate, and scalable solution for decarbonization.
“EMA will continue to emphasize the role of renewable liquid fuels and help ensure that heating oil marketers and customers are not left behind in federal climate policy,” said EMA President Rob Underwood.
Inside the Beltway Update
Congress returned to Washington this week from the annual August recess, however, several legislative headaches are already growing for House and Senate leadership, signaling a rocky September ahead on Capitol Hill.
This week, House Republicans made incremental progress on annual appropriations legislation ahead of looming federal funding deadlines. On Tuesday, the House Appropriations Labor, Health and Human Services (LHHS) Subcommittee advanced their FY 2026 funding bill along party lines. The full House Appropriations Committee is expected to mark up the FY 2026 LHHS bill next week, which proposes a $10 million increase for the Low-Income Home Energy Assistance Program
(LIHEAP). On Wednesday, the Appropriations Committee also advanced the FY 2026 Financial Services Appropriations bill following a marathon markup, teeing the bill up for floor consideration later this month. Lastly, on Thursday, the House advanced its third spending bill, the FY 2026 Energy and Water Appropriations bill, across the House floor.
Despite progress on individual funding bills, when Members of Congress depart Capitol Hill this week, Congress will have just over three weeks to prevent a government shutdown when federal funding expires on September 30. House and Senate leaders, including Senate Appropriations Committee Chair Susan Collins (R-Maine) and House Appropriations Committee Chairman Tom Cole (R-Oklahoma) are reportedly negotiating tying a trio of less controversial spending bills with a short-term continuing resolution (CR) to fund the government past September. The duration of a stopgap funding measure remains unclear; however, Republicans need several Democratic votes to advance a CR in the Senate and may require Democratic support in the House due to defections among House Republicans.
Meanwhile, Senate Majority Leader John Thune (R-SD) and Senate Republicans are preparing changes to Senate rules to expedite the chamber’s consideration of executive branch nominees. The rules change, driven by pressure from President Trump to circumvent Democratic delay tactics, may include new rules allowing Senators to vote to confirm multiple nominees at once in en bloc votes. The proposed rules change follows failed
negotiations between Republicans and Democrats in early August to advance several pending nominations before the August recess.
EMA Sends Letter to Congress Opposing the RECHARGE Act
The Energy Marketers of America (EMA) opposed the RECHARGE Act in a letter to Congress this week. The bill was introduced by Senator Jeff Merkley (D-OR) which would amend a long-standing federal law banning automotive services, including electric vehicle (EV) charging stations, at state-operated rest areas. This law, in place for nearly 70 years, fosters competition by encouraging private businesses like restaurants, convenience stores, and truck stops to develop at Interstate exit exchanges.
Allowing EV charging at rest areas could undermine private investment by creating an uneven playing field where state governments don’t compete for customers. The opposition comes as the U.S. Department of Transportation (DOT) released Interim Final Guidance to promote a consumer-focused approach to EV charging station deployment. This guidance supports selecting sites where the charging station owner is also the site host, ensuring reliable and well-
maintained infrastructure. Energy marketers, who are investing heavily in EV charging stations off Interstate highways, support this flexible approach, which aligns with the Infrastructure Investment and Jobs Act.
This Act encourages collaboration with private sectors for alternative fueling locations while ensuring amenities like food and restrooms are available, without allowing states to unfairly compete by placing chargers at rest areas. Many energy marketers’ facilities, located less than a mile from highway exits, offer visibility, security, food, and restrooms, making them ideal for DC fast chargers that support 20- to 30-minute charging breaks. Expanding these facilities could boost consumer confidence in purchasing EVs.
Inside the Beltway Update –September 12
All eyes are on House and Senate leaders this month as Congress has just over two weeks to pass a stopgap funding bill and prevent a government shutdown on September 30. However, Republicans and Democrats remain far apart in bipartisan negotiations, meaning the risks of a lapse in funding are increasing.
This week, Republican leaders, including Senate Majority Leader John Thune (R-SD), announced their support for a short-term, “clean” continuing resolution (CR) to fund the government past September. The duration of a Republican-led stopgap funding measure remains unclear; however, a CR is likely to extend government funding through November or December to allow
for additional negotiations on appropriations bills. Nevertheless, House and Senate Democrats have expressed opposition to a clean CR and are demanding Republican leaders agree to include several health care policy priorities as part of a spending bill in return for Democrats’ support. Democratic votes are needed to advance a CR in the Senate and may be required in the House due to defections among House Republicans. House Republicans are expected to begin consideration of a stopgap funding bill on the House floor as soon as next week.
As high level talks continued this week, House Republicans also continued to advance annual appropriations bills in committee, teeing up potential bicameral funding negotiations before the end of the year. On Tuesday, the House Appropriations Committee advanced its FY 2026 Labor, Health and Human Services (LHHS) appropriations bill, which proposes a $10 million increase for the LowIncome Home Energy Assistance Program (LIHEAP). On Wednesday, the House Appropriations Committee also advanced its FY 2026 Commerce-Justice-Science appropriations bills, bringing the total number of appropriations bills advanced by the Committee to twelve.
Meanwhile, Senator Mike Lee (R-UT) introduced legislation Tuesday to block the Environmental Protection Agency (EPA) from reallocating Renewable Fuel Standard renewable volume obligations (RVOs) waived via the small refinery exemption (SRE) program. Senators John Barrasso (R-WY), Bill Cassidy (R-LA), Ted Cruz (R-TX), and Cynthia Lummis (R-WY) are cosponsoring
the legislation, titled the Protect Consumers from Reallocation Costs Act of 2025 (S.2742). In a press release accompanying the bill, Sen. Lee stated the bill “would block the EPA from forcing refineries to shoulder forgiven fines from refineries that do not meet the EPA’s environmental standards.” The bill is now pending before the Senate Committee on Environment and Public Works.
FTC Drops Appeal of Noncompete Rule, Shifts to Case-by-Case Enforcement
The Federal Trade Commission (FTC) has voted 3–1 to end its efforts to defend its court-vacated noncompete rule in federal court, officially abandoning the appeal. The noncompete rule, finalized in April 2024, prohibited employers from entering in new noncompete agreements with workers and required the rescission of existing noncompete clauses. While there is a slim chance that third parties could petition to take over the case, the FTC itself is no longer pursuing the rule in court.
Notably, the FTC last week announced an enforcement action against a pet crematorium’s use of noncompetes. The Commission also issued a Request for Information (RFI) seeking input on how noncompetes affect competition, with responses
intended to guide future enforcement priorities. Importantly, the FTC acknowledged that noncompetes can be both valid and beneficial, and there is no indication that a new rulemaking effort is underway. Instead, the Commission is signaling a return to case-bycase enforcement under its existing authority.
Federal Appellate Court Strikes Down DOE’s 2024 EV Fuel Economy Rule
On September 5, the U.S. Court of Appeals for the Eighth Circuit vacated a 2024 Department of Energy (DOE) rule that revised how DOE calculates the petroleumequivalent fuel economy of electric vehicles (EVs). The rule would have gradually phased out a “fuel content factor” that has boosted EVs’ milesper-gallon-equivalent since 2000, thereby requiring automakers to sell more EVs to meet fleetwide Corporate Average Fuel Economy (CAFE) standards. A three-judge panel unanimously held that DOE lacked statutory authority to apply such a factor to EVs and further faulted the agency for procedural defects under the Administrative Procedure Act.
The court explained that while Congress expressly allowed DOE to apply fuel content factors for certain alternative fuels, it provided no such authority for electricity. Citing the Supreme Court’s Loper Bright decision, the panel emphasized that courts— not agencies—are responsible for statutory interpretation. Additionally, the court ruled that DOE unlawfully introduced supportive data in the final rule that was not in the proposal,
depriving stakeholders of the chance to comment. Thus, the court vacated and remanded the regulation to the agency.
The ruling has the unusual effect of reviving DOE’s 2000 regulation, which includes the very fuel factor the agency had attempted to gradually eliminate and that cannot be part of the regime altogether. In an upcoming rulemaking, DOE must address the court’s holding, which could have the effect of boosting EV production by immediately eliminating the fuel factor that DOE has no authority to use. However, the agency has laid the groundwork for removing EVs altogether from the CAFE standard-setting process: its June interpretative rule indicated that DOE must focus on internal combustion technology when setting fuel economy values. Additionally, Congress has also weighed in. The Big Beautiful Bill Act eliminated civil penalties for noncompliance with federal fuel economy standards, which weakens the CAFE regime and raises questions about its long-term relevance.
For EMA marketers, the decision removes immediate regulatory pressure that could have forced automakers to accelerate EV sales more aggressively. While uncertainty remains over how long current CAFE developments will last, recent policy shifts may encourage automakers to adjust production strategies in ways that help preserve motor fuel demand in the medium and long term, particularly if federal GHG standards for vehicles are rolled back. EMA will continue to monitor DOE’s next steps and ensure marketers’ interests are represented.
“CAFE standards cannot be a backdoor to incentivize EV
production. EMA will continue to advocate before DOT and EPA to ensure fuel efficiency policy accounts for liquid fuel considerations, is bound by statutory authority, and not committed to an EV-oriented outcome,” said EMA President Rob Underwood.
Inside the Beltway Update –September 19
Republicans and Democrats are barreling towards a potential government shutdown on September 30 as leaders in both parties remain far apart on a stopgap funding measure. This week, Speaker Mike Johnson (R-LA) and House Republicans unveiled a short-term “clean” continuing resolution (CR) to fund the government through mid-November. However, the Republican-led bill immediately ran into Democratic opposition, with House and Senate Democrats unveiling their own funding bill which also includes extensions of expiring health care subsidies and rollbacks of Medicaid cuts enacted as part of the “Big Beautiful Bill”. Nevertheless, Republicans are forging ahead with their CR, daring Democrats in both chambers to oppose the clean funding extension. With limited legislative vehicles left this year, if Republicans and Democrats can meet at the negotiating table, a compromise CR could also become a vehicle for other policy priorities needed to win support from both conservative Republicans and House Democrats.
On Tuesday Sept. 16, the House Energy and Commerce Committee, Energy Subcommittee held a hearing on appliance and building
policies. Full committee Chair Rep. Brett Guthrie in his opening remarks emphasized how Kentucky residents have the option to choose between gas and electrical heating and stated how “all Americans deserve to make that same choice”. Acting General Counsel and Principal Deputy General counsel for the US DOE, Jeff Novak, described two bills - the Energy Choice Act and the Reliable Federal Infrastructure Act, as responses to categorical prohibitions or mandates to reduce or, ultimately, eliminate fossil fuelgenerated energy. Novak stated that 149 jurisdictions have adopted laws or ordinances effectively banning natural gas consumption, and by extension, gas appliances. Whether done directly or indirectly, Novak stated these laws and ordinances deny residents and commercial tenants’ access to energy solutions. Mr. Novak when questioned by Vice Chair of the Energy Subcommittee Rep. Randy Weber agreed that there are gaps in the current NECPA auditing scope, particularly with seasonal energy efficiency rating of an air conditioning or heating system that do not take into effect the loss of energy. Additionally, Rep. Weber asked “what might be the potential impacts on grid reliability if that 344 trillion BTUs currently supplied by fossil fuel was entirely shifted to the federal grid? What do you think the outcome of that would be?” Mr. Novak said, “It would clearly have benefits for the grid.”
Inside the Beltway Update –September 26
Activity in DC this week is overshadowed by a looming possibility of a partial government shutdown, as both the House and Senate failed to agree on a short-term
funding bill, leaving only days before the September 30 deadline. Last Friday, the House narrowly passed a continuing resolution (CR) to fund the government through November 20. To avoid a government shutdown, the Senate must pass the CR prior to government funding expiring at midnight on September 30. The House and Senate were on Recess this week, and the Senate is expected to consider the CR when they return to Session on Monday. Questions remain whether Senate Majority Leader John Thune (R-SD) can secure the seven Democratic votes to meet the 60-vote threshold to pass the CR.
Meanwhile, the Trump Administration is advancing broad spending cuts. DOE canceled $13 billion in clean energy funding and is reviewing $15 billion in Biden-era awards. Energy Secretary Chris Wright defended the move as relief from costly subsidies driving up electricity prices. DOE also plans to use emergency powers to keep aging fossil-fuel plants online, citing grid reliability and AI-driven power demand. Critics argue this raises consumer costs and overextends federal authority; Michigan is challenging the orders in court.
In preparation for a possible government shutdown, The White House Office of Management and Budget (OMB) ordered agencies to draft reduction-in-force (RIF) plans for permanent layoffs. This is a shift from past shutdowns when workers were furloughed and later recalled. Directed by OMB Director Russ Vought, the memo targets programs dependent on discretionary funds and not aligned with President Trump’s priorities, using the threat of job cuts to pressure Democrats in funding talks. Essential services
would continue, but other positions could be permanently eliminated if funding lapses on October 1. Democrats called the move intimidation, while OMB said plans will be unnecessary if Congress passes a stopgap bill.
Meanwhile, President Trump announced a series of new tariff actions through posts on his Truth Social account, all of which we expect are being undertaken pursuant to Section 232 investigations announced earlier this year. The President specifically called out heavy trucks:
Effective October 1, the United States will impose a 25% tariff on all imports of heavy trucks. President Trump did not reference medium-duty trucks, medium- and heavy-duty truck parts, and their derivative products, which together with heavy-duty trucks were the subject of a Section 232 investigation launched earlier this year.
EMA Regulatory Alert: The Impact of a Government Shutdown on Federal Regulatory Agencies –October 3
Each year, Congress must pass 12 spending bills before October 1, the start of a new fiscal year for the
federal government. As Congress failed to act by September 30, the federal government has officially entered into a “shutdown,” meaning it faces a lapse in funding, and all nonessential functions ceased at 12:01 a,m. on October 1.
Lawmakers can pass a short-term funding extension (Continuing Resolution-CR) to temporarily fund the affected agencies and services at the previous year’s level until a fullyear appropriation can be worked out.
Agencies may continue to operate temporarily beyond the October 1 deadline by using any unexpended funds leftover from the previous fiscal year or other sources of appropriations, like the Inflation Reduction Act (IRA). Most agencies have only a few days of unexpended funds to continue operations.
The following is an overview of how key federal agencies are affected by the current shutdown.
Internal Revenue Service
• Potential delays and long wait times for taxpayers, including motor fuel excise tax refund claims, if the IRS exhausts contingency funds set aside under the IRA, originally intended for system modernization.
• The contingency plan covers the first five business days following a lapse in appropriations.
• Capacity constraints from prior workforce reductions mean that shutdowns exceeding five days could
significantly delay tax-related processes, affecting energy marketers and other taxpayers. For context, after the 34day government shutdown at the end of 2018, it took over a year to clear claims backlogs. During the COVID-19 shutdown, energy marketers faced long delays processing motor fuel excise tax claims, tying up millions in refunds for tax-exempt sales of clear diesel fuel. Similar delays are possible.
• The IRS pays interest on delayed refunds: for paper claims, after 45 days of receipt; for electronic claims, after 20 days.
Environmental Protection Agency
• All rulemaking, guidance, policy development, civil enforcement inspections, permit issuance, and approvals of pending state requests (i.e., authorized/ delegated state-issued EPA permits and State Implementation Plans) are suspended.
• Superfund site activities will continue only where a failure to maintain operations poses an imminent threat to human life.
• Timely payments to contractor and grantees will continue if available funds are obligated and the employees necessary to make the payments are excepted or exempted.
• The EPA may exempt activities depending on available funds.
• EPA regional offices are similarly affected by a lapse in appropriation.
• Approximately 89% of EPA workforce will be furloughed.
Department of Health and Human Services
• Already facing uncertainty with appropriations separately from the shutdown, the Low-Income Home Energy Assistance Program (LIHEAP) may be impacted.
• State grantees with leftover funding may continue distributing leftover funds until exhausted.
Transportation Security Administration
• The Transportation Worker Identification Credential (TWIC) and the Hazardous Materials Endorsement (HME) background-check programs are self-funded and fee-based and therefore not impacted by government appropriations.
• Driver background checks will continue as usual.
• TWIC and HME enrollment centers remain open during normal hours of operation.
• The Coast Guard will continue to enforce the TWIC program and secure ports without interruption.
Federal Motor Carrier Safety Administration
• All FMCSA operations continue, funded by the Highway Trust Fund and fees.
• Portals, including the Drug and Alcohol Clearing House, will
remain operational.
• No employees will be furloughed.
Pipeline and Hazardous Materials Safety Administration
• Investigations of hazardous materials accidents, inspections of shippers/carriers, testing facilities, and cylinder reconditioning facilities continue.
• Hazardous materials enforcement actions proceed, but rulemaking is suspended.
• Registration programs and fee collections pause.
• Approximately 190 of 579 employees will be furloughed.
Department of Homeland Security
• The E-Verify portal will cease operation. Employers must still complete Form I-9 but will not be penalized for delayed entry into E-Verify.
Small Business Administration
• Paycheck Protection Program (PPP) loan forgiveness processing continues.
• No new small business loans or support under CDC 504 or 7(a) Loan Programs.
U.S. Department of Agriculture
• The Higher Blends Infrastructure Incentive Program (HBIIP) continues, fully funded under the IRA and not subject to annual appropriations.
• Biofuel feedstock rulemaking and contract management
activities related to energy and environmental markets continue using IRA funds.
• SNAP benefits continue via multiyear carry-over funds. Limited staff are exempted from furlough to maintain operations, including program policy, financial management, and stakeholder communications.
Federal Government Supply Agreements
• Fuel sales to federal government facilities may continue though payment can be delayed.
As we went to press on this article, President Trump continues to vow to use the government shutdown to make further cuts and lasting changes to Executive branch agencies. The White House also has taken steps to halt billions of dollars of federal funding to Democratled states to increase political pressure on the Democrats over the shutdown.
EMA Regulatory Alert: California’s Vehicle Emissions Standards
and Federal Pushback
The Trump Administration is actively challenging California regulators’
efforts to reinstate previous vehicle emissions standards following Congress’ recent revocation of the State’s Clean Air Act waiver that would have imposed electric vehicle (EV) mandates. This development has implications for liquid fuel demand, vehicle market dynamics, and escalating state-federal regulatory tensions.
California Makes Another Move
The California Air Resources Board (CARB) initially adopted the Advanced Clean Cars (ACC I) regulation in 2012, targeting 8% EV and plug-in hybrid sales by model year 2025. In 2022, ACC II replaced it with a mandate of 100% EV and plug-in hybrid sales by 2035. Following Congress’ revocation of EPA waivers for model years 2026 and beyond (ACC II), CARB is now seeking to revert to its 2012 (ACC I) regime. The agency asserts that reverting to ACC I clarifies its authority to certify vehicles in the State amid ongoing federal uncertainty. CARB has scheduled a board vote on November 20 to decide whether to implement this rollback.
This move comes as California and several other states, which had intended to follow California’s lead (allowed under the Clean Air Act), filed a lawsuit challenging the revocation mechanism under the Congressional Review Act. Additionally, litigation is pending regarding EPA’s ACC I Clean Air Act waiver following the recent Supreme Court ruling affirming that fuel stakeholders, including EMA, have legal standing to challenge the ACC I waiver.
CARB is proposing to scale back standards as a backstop to continue promoting EV penetration. In
response, EPA issued a public statement and letter asserting that it retains authority to approve CARB’s proposed scaled-back standards, while signaling that approval is unlikely.
Another Source of Dispute and Uncertainty
The dispute is part of broader federal efforts to roll back California’s EV mandates, originally implemented under the Biden Administration. After Congress revoked the Clean Air Act waivers, EPA proposed repealing all greenhouse gas standards applicable to light-, medium-, and heavy-duty vehicles and engines, emphasizing that such actions would not compromise federal preemption.
For fuel wholesalers and retailers, this regulatory uncertainty may impact gasoline and diesel demand. While EV and plug-in hybrid sales have grown—albeit at a slower pace in Q2 2025—the outcomes of legal challenges and federal-federal disputes will be critical in shaping market dynamics.
EMA has submitted comment letters to EPA and DOT, urging regulators to adopt uniform federal policies that preserve consumer choice and support long-term fuel consumption. EMA members should monitor developments closely, particularly EPA’s responses and potential impacts on vehicle fleet composition and fuel demand.
