FUELIowa Magazine: January / February 2023

THE VOICE AND RESOURCE FOR IOWA’S FUEL

INDUSTRY

Meet FUELIowa's New Board Members pg. 4

Above-Ground Tank Taxation p. 8

Legislative Kick-off Events p. 12

The Iowa Legislative Session began January 9, 2023. FUELIowa will provide updates weekly in their e-newsletter, the FUELInsider.

PRESIDENT’S PERSPECTIVE

Managing Change and The Politics of Disruption

President Biden is committed to fostering transformational climate and environmental change. The national dialogue is highly focused on new technologies to enhance the development of energy alternatives to ensure long term energy independence.

The national transformational change toward carbon neutral energy independence strategically represents a policy and the politics of purposeful disruption.

The national fuel distribution network to which the Midwest, and particularly Iowa, are at the tip of spear in balancing the clean energy initiatives represented by a national policy agenda to produce electric vehicles and the mandating of the sale of higher blended fuels.

A key element in managing the disruptive policy change for carbon neutral energy independence and climate change is the impact on the Iowa retail fuel distribution network. Specifically, the cost of upgrading essential infrastructure for rural, small community fuel retailers.

During the 2023, Iowa legislative session FUELIowa welcomes the opportunity to present data highlighting the number of facility underground storage tanks, pipes, and dispensers requiring upgrades installers can complete annually, and the financial impact on the Iowa retail fuel distribution network to comply with the Access to Biofuels legislation (H.F. 2128).

Managing the national energy and climate policy initiatives and impact on the regional and local retail fuel distribution network will require a constructive partnership with interested public and private stakeholders to which FUELIowa is fully committed.

RNL

BOARD OF DIRECTORS

Chris Biellier Associate Director Seneca Companies Davenport | 563-332-8000

Chad Besch Director New Cooperative Algona | 515-295-2741

Don Burd Director

Otter Creek Country Store Cedar Rapids | 319-533-1825

Ronald N. Langston President & CEO FUELIowa 515-224-1599

EXECUTIVE COMMITTEE

Joseph Zietlow Chair Kwik Trip, Inc La Crosse, WI 608-793-6484

Keith Olsen Vice Chair Olsen Fuel Supply Atlantic 712-243-2340

Tessa Fahey Treasurer Rainbo Oil Dubuque 563- 526-1179

Bev Jessen Past Chair Johnson Oil/ Cylinder Express Battle Creek 712-365-4740

Nathaniel Doddridge Director Casey's General Stores Ankeny | 515-446-6239

Tia Eischeid Director Al’s Corner Oil Co Carroll | 712-673-2723

Wade Fowler Associate Director Core-Mark Midcontinent, Inc. DBA Farner-Bocken Carroll | 641-777-0308

Steve Kimmes Director Kimmes Enterprises LLC Carroll | 515-681-7890

Nate Lincoln Director Lincoln Farm and Home, Inc. Glenwood | 712-527-4833

Dave Reif Director Reif Oil Company Burlington | 319-752-9809

Scott Richardson Director Key Cooperative Roland | 515-291-0623

New Board Members at FUELIowa

By Sarah Bowman, Communications Director , FUELIowa

FUELIowa held elections for their Board of Directors in December 2022. During the FUELIowa Board meeting held January 11, 2023, the results of the Board of Directors’ election were announced.

The election resulted in the re-election of Tia Eischeid (Al’s Corner Oil, Carroll), Tessa Fahey (Rainbo Oil, Dubuque) and Chris Biellier (Seneca Companies, Davenport) to another term to the FUELIowa Board of Directors. New to the board is Nathaniel Doddridge (Casey’s General Stores, Inc., Ankeny), Nate Lincoln (Lincoln Farm and Home, Inc, Glenwood), Dave Reif (Reif Oil, Burlington), and Scott Richardson (Key Cooperative, Roland).

After the new board members were seated, nominations were offered for the Executive Committee.

Joseph Zietlow (KwikTrip, LaCrosse, WI) was elected to the Chairmanship, Keith Olsen (Olsen Fuel Supply, Atlantic) Vice Chairman, Tessa Fahey (Rainbo Oil, Dubuque) Treasurer, and Bev Jessen (Johnson Oil/ Cylinder Express, Battle Creek) as the Immediate Past Chair.

“We are pleased to welcome Mr. Zietlow as Chairman of the board for FUELIowa stated Ronald N. Langston, FUELIowa President and CEO. “As a highly respected and seasoned leader in the fuel and convenience store sectors, we look forward to Mr. Zietlow’s expertise and assistance in guiding our mission and vision of the FUELIowa membership.”

Mr. Langston continued, “We thank Bev Jessen for her service as Chair of the board and her continued service as Immediate Past Chair. We also thank Jim Pauk (W&H Coop Oil Company, Humboldt), Matt Scheetz (The Depot Express, Tiffin) and outgoing Immediate Past

FUELIowa said Mr. Zietlow. “I look forward to working alongside my fellow board members and serving as Chairman of FUELIowa.”

Get to Know Your New Board Members

This issue will spotlight Nathaniel Doddridge and Nate Lincoln

Prior to Casey’s, he held several leadership positions across fuel and operations at Murphy USA. Doddridge received his bachelor’s degree in Business Administration from Ouachita Baptist University and holds an MBA from Southern Arkansas University.

“FUELIowa is a great example of an organization that provides a unified voice despite the size of the members and I look forward to working with leaders across the state,” said Doddridge.

Doddridge and his wife Mary of 16 years have 3 children and proudly call Ankeny home.

Nathaniel Doddridge has been with Casey’s General Stores, Inc. since August 2017. He is the Vice President, Fuels where he leads the strategy and execution for all facets of fuel. “I feel it was important for Casey’s to be more engaged with our industry peers across Iowa. FUELIowa has so many members

“Given the future of energy in our country, I am excited about how we will be able to tackle the shifting of liquid fuels, electricity and any other energy sources that will be introduced to our members,” added Doddridge.

We asked each new member of the board, “What role do you hope to play, and what do you hope to accomplish in your time on the board?"

Chair, Doug Coziahr (Nebraska-Iowa Supply Co, Omaha) for their service on the board.”

“I am excited about the future of

with diverse experiences that I felt the collaboration would have a net benefit to Casey’s and to our industry by joining the board.”

Doddridge responded, “I hope to be a resource. Casey’s is fortunate with our size to have a point of view that might be different due to how we operate in other states. I hope to provide some value through uncovering blind spots for our members. I can be a part of further unifying our voice within the industry/state as we battle future uncertainties. Also selfishly, I hope to build some lasting friendships that I wouldn’t normally be exposed without being a member of the board.”

Nate Lincoln graduated from Iowa State University with a major in agricultural business. After graduation in 2015, he returned home to join the family business. He always knew that he would enjoy working in the convenience and bulk

fuel industry. Lincoln Farm & Home Service owns and operates three convenience stores, a bulk fuel business and supplies many other c-store locations with fuel.

“Our industry is changing rapidly with different fuel options, laws and regulations, and innovation.  It is exciting to be able to help our members navigate the best possible path to make us all successful well into the future,” shared Lincoln.

We asked each new member of the board, “What role do you hope

to play, and what do you hope to accomplish in your time on the board?"

Lincoln responded, “I am willing to fill in where I’m needed most, and I hope to make decisions that help our FUELIowa members as a whole.”

Lincoln is excited to have the opportunity to be a part of FUEL IOWA and to give back to its members in this fast-changing world.

POWERFUL BRAND. HOMETOWN FEEL.

RUNNING YOUR BUSINESS YOUR WAY. POWERED LOCALLY.

We know that the true power behind the Cenex® brand comes from our locally-owned retailers – valued partners who are invested in their customers and community. That’s why we’re committed to your success and helping you build your business from the moment you become a Cenex® retailer. From flexible brand conversion and marketing, to convenient payment processing and training programs, we can provide your business with the support it needs to help you grow.

A name your customers trust, a brand you can count on –visit cenex.com/businessopportunities to learn more.

Are Your Bulk Above-Ground Storage Tanks Properly Taxed?

By John Maynes, Director of Government and Regulatory Affairs, FUELIowa & Tim Lillwitz, Attorney At Law, Bradshaw, Fowler, Proctor and Fairgrave

Like many of us, County Assessors have been doing their job the same way for many years. When it comes to assessing commercial real estate for tax purposes, many county assessors have been placing an assessed value on bulk above-ground storage tanks under the premise these tanks are improvements to the real property, and thus taxable. A recent Iowa Court of Appeals opinion finds fault with that approach under Iowa law. This article will summarize that recent ruling and provide suggestions on steps you can take to determine if your bulk above-ground storage tanks are properly taxed.

McDermott Propane, LLC v. Board of Review of Dubuque County, No. 20-1619 (Iowa Ct. App. Feb. 16, 2022).

McDermott Oil Company has operated a propane distribution business in Dubuque County for nearly four decades. For most of that time, McDermott operated the propane distribution business from its bulk plant in Cascade, IA. That bulk plant consisted of two 30,000-gallon above-ground storage tanks, two sets of concrete piers with saddles, a bulkhead, and a pumping unit. The system

was interconnected by the usual piping and ran on electrical power. The tanks themselves were held in place on the concrete piers by gravity. Also, for the entire existence of the bulk plant, the county assessor valued each component of the plant, including the tanks, for property tax purposes in the yearly assessments.

In 2016, McDermott relocated the propane distribution business to a property about a mile outside Cascade to allow for the town to grow. As part of that relocation, McDermott left the piers, bulkhead and piping behind. At the new location, McDermott installed a fence, shed, two new bulkheads, the necessary piping and electrical wiring, and four precast concrete piers with saddles. Then, in a process that took about half a day with a crane and a small crew, transferred the two bulk aboveground tanks from the old location to the new location.

The new property was assessed at $122,110 in 2018. Then, in 2019 the assessment jumped to $171,920. Upon inquiry, McDermott learned the basis for the increase was simply that it had added a third tank to the site, not that there was any change to the existing real estate. Accordingly, McDermott petitioned the Dubuque County Board of Review for a modification of the 2019 assessment. He alleged in his petition that the tanks should not be assessed. The board denied McDermott’s protest. McDermott then appealed to the district court alleging that a fair assessment would be $96,920, a value that did not include the three tanks. After a hearing, the district court denied McDermott’s appeal.

Finally, McDermott appealed to the Iowa Supreme Court, and the case was transferred to the Iowa Court of Appeals.

The Court of Appeals began by quoting a portion of the applicable statute, Iowa Code section 427A.1. That statute provides that “unless otherwise qualified for exemption,” the following must be taxed as real property by the assessor:

The only word from the statute that is further defined is “attached” which, according to the statute, means:

To add another layer to the analysis, a piece of equipment is deemed not attached “if it is a kind of property which would ordinarily be removed when the owner of the property moves to another location.” Iowa Code section 427.1(3).

In its ruling, and agreeing with McDermott’s position, the Iowa Court of Appeals found that the bulk above-ground storage tanks were pieces of “equipment” and not “improvements” as urged by the Board of Review. Further, the Iowa Court of Appeals held the tanks were the kind of equipment ordinarily removed when an owner moves to another location, and

therefore met the exception to the definition of attached in the statute. The Court of Appeals ordered the case back to the district court for entry of an order excluding the three bulk above-ground storage tanks from the 2019 assessment.

A copy of the full decision from the Iowa Court of Appeals is available through FUELIowa. Please contact john@fueliowa.com for more information.

Steps You Can Take to Determine the Taxability of Your Tanks

First, as McDermott did, you should pay attention to your tax assessments. Iowa law provides that while the county assessor will set a value on each real estate parcel every January 1st, formal assessments are done only in odd-numbered years unless there has been a physical change to the property. In March or April of 2023 when you receive your assessment, the

assessment should indicate whether a value is being placed on your bulk above-ground storage tanks. If you do not want to wait for your assessment, you can attempt to review your property on the county assessor’s webpage which may indicate something similar to the below:

If your bulk above-ground storage tanks appear to be included in the assessment of your real estate, the best thing to do is contact your county assessor to confirm the same. Thereafter, if your bulk above-ground storage tanks are set-up or installed in a manner similar to the tanks that were examined in the McDermott case, you should consider seeking legal advice to determine whether the holdings in the McDermott case could potentially apply to your situation.

Because we are in an odd-numbered year, formal assessment are forthcoming. This means your assessment will be accompanied

by a right to appeal. A template for the appeal form is included with this article. FUELIowa members will check box number three and, in the space provided, should write or type “equipment not attached”. Taking this step will preserve your initial right to appeal with your local board of review. Attach a copy of, or reference to, the McDermott decision rendered by the Iowa Court of Appeals.

Assuming your local board of review denies your appeal, their denial will trigger your right to appeal to your local District Court. This should be a much more impartial venue for your challenge and allow for a thorough review of your appeal. If you plan to challenge your tax assessment, you will need to follow procedure established by your County Assessor’s office and Iowa law. FUELIowa encourages members to retain an attorney to insure proper procedure is followed during the appeal process.

This petition must be filed or mailed to your city or county assessor from April 2 to and including April 30. It must be postmarked no later than April 30. Contact information for all assessors can be found at the Iowa State Association of Assessors website: (www.iowa-assessors.org).

Petition to Local Board of Review Regular Session

For use by Board of Review only

Petition number:

Class:

Parcel number:

To the Board of Review for (jurisdiction) of the State of Iowa, the undersigned (print name), , as owner or aggrieved taxpayer of the following described real estate: with the property address: _ and as such, liable for the payment of taxes thereon, do hereby respectfully object to the assessment made against said real estate as of current year January 1, 20 , in the sum of (enter total assessment) $ for the following reasons, and upon the following grounds: Check and complete all grounds that apply see instructions on back.

☐ 1. That said assessment is not equitable as compared with assessments of other like property in the taxing district. Address and assessment of representative number of comparable properties (optional):

Assessed at: $

Assessed at: $

Assessed at: $

Assessed at: $ Assessed at: $

☐ 2. That said property is assessed for more than the value authorized by law

Actual value (optional): $

☐ 3. That said property is not assessable, is exempt from taxes, or is misclassified. Reason for exemption, misclassification, or non-assessment (optional):

Equipment not attached.

☐ 4. That there is an error in the assessment. List of errors (optional):

☐ 5. That there is fraud or misconduct in the assessment. State specifically the fraud or misconduct (required):

I, the undersigned respectfully request that the assessment made against said real estate be adjusted accordingly based upon the facts presented I declare under penalties of perjury or false certificate, that I have examined this document, and, to the best of my knowledge and belief, it is true, correct, and complete.

An oral hearing is requested: Yes: ☐ No: ☐

Mailing address:

City: State: ZIP:

Signature (Owner or Duly authorized agent): Date:

Day Phone: Cell: Email:

FOR BOARD OF REVIEW:

Action Taken: Date:

Recap of Recent FUELIowa Events

By Sarah Bowman, Communications Director , FUELIowa

The beginning of the year is always a whirlwind of excitement. It seems we just catch our breath from the holidays and suddenly, the legislative session starts – along with all the meetings that coincide with session. Grassroots advocacy is incredibly valuable, not only to an organization, but to the legislators who serve. Members must speak their truth to their legislator – without it, the legislator is not sure what to believe. They take their constituent’s issues and points of view into their discussions on legislation, and it helps influence how they vote.

The 2023 FUELIowa Legislative Conference looked a little different than years past. This year, the staff suggested, and board of directors voted to move the FUELIowa Annual Meeting to the Summerfest event in August. This allowed the Legislative Conference to be focused on just that, the upcoming legislative session.

Only two days into session, FUELIowa members met at the Hilton Downtown to hear from legislators and speakers on issues important to the industry.

The first item on the agenda was to thank our outgoing board of

directors in attendance, Jim Pauk and Doug Coziahr (Outgoing Past Chair) for their years of service on the FUELIowa board of directors. Bev Jessen, Chair presented both Jim and Doug plaques of appreciation. Matt Scheetz was unable to attend, however, he too was presented with a plaque at the FUELIowa lunch in learn in Riverside, by Bev Jessen.

FUELIowa lobbyist introduced Senator Jason Schultz and Representative Jane Bloomingdale to the attendees at the Legislative Conference.

During the panel discussion, Senator Jason Schultz, Chair of the Senate State Government Committee, and Representative Jane Bloomingdale, Chair of the House State Government Committee answered questions from Marc Beltrame, FUELIowa lobbyist Marc Beltrame, Ronald N. Langston, President and CEO of FUELIowa, and members.

The “Inside the store line up” speakers included Jim Pulsifer, Director of Regulatory & Legislative Industry Engagement with Altria, Stephen Larson, Administrator with the Iowa Alcoholic Beverages Division, and Matt Strawn, CEO of the Iowa Lottery. Each industry expert shared information important and valuable to our C-Store members.

Iowa Secretary of Agriculture Mike Naig awarded the 2023 Renewable Fuel Marketing Awards. The awards were created to recognize fuel marketers that have gone above and beyond in their efforts to promote and sell renewable fuels. “Iowa’s renewable fuels industry continues to thrive, creating value-added markets for our crops, employing thousands of Iowans, and offering cleaner and more affordable fuel to consumers,” said Secretary Naig.

“Growmark FS is being honored for their efforts to market ethanol and Kwik Trip/Kwik Star is receiving recognition for their biodiesel marketing. I want to thank both of those companies and their employees for continuing to build demand for

Iowa produced renewable fuels.”

Secretary’s Ethanol Marketing Award –GROWMARK FS

Matthias Schwartzkopf

Since the 1920s, the Growmark FS (Fast Stop) has been providing fuels across the Midwest. Today, they are a leading supplier of refined and renewable fuels and operate 19 Fast Stop locations in northwest Iowa. Through those Fast Stop locations, over 4.5 million gallons of refined fuels are sold each year. Fast Stop operates in communities with a size of 264 residents in Yale, Iowa, to 24,912 residents in Fort Dodge. Fast Stop offers E15 at all 19 locations. At seven of these locations, they offer higher blends of ethanol such as E30 and E85.

gallons in Iowa since 2016. They offer separate diesel islands at over 300 of the 800+ locations across the Midwest. Kwik Trip has embraced including biodiesel blends from 5 percent - 20 percent across Iowa and only purchases biodiesel that meets or exceeds the ASTM D6751 standard and BQ-9000 quality protocol. Since 2020, Kwik Trip has been awarded over 25 biodiesel grants through the Iowa Renewable Fuels Infrastructure Program to update existing infrastructure to sell biodiesel blends at locations across Iowa.

Legislative Reception

Following the Legislative Conference, FUELIowa members traveled to the Embassy Suites to visit with more legislators at a Reception co-sponsored with Iowa Association of Electric Cooperatives, Iowa Biotechnology Association, Iowa Communications Alliance, and the Iowa Institute for Cooperatives.

Current and new board members visited with legislators from all over the state. Doing this allowed members to visit with legislators they may not run into in their own district. Legislators had the opportunity to speak with Iowans from other parts of the state, not just their constituents.

Secretary’s Biodiesel Marketing Award –Kwik Trip | Kwik Star

Joel Fasnacht

Kwik Trip was founded in 1965 with headquarters in La Crosse, Wisconsin. They opened their first Iowa location under the name Kwik Star in 1993. Kwik Trip | Kwik Star has been selling biodiesel in all their diesel

FUELIowa Past Chair Bev Jessen, and Board Member Steve Kimmes visit with Representative Brian Best and Senator Jason Schultz.

From the Legislative Reception to the Inaugural Ball FUELIowa members were not only at the Conference and Reception, but Past Chair Bev Jessen (accompanied

FUELIowa is the voice and resource for Iowa’s fuel industry. The only way we can continue to do so is with the help of our members. FUELIowa hosted 5 Regional Lunch and Learns in 2023. The first meeting was held in Council Bluffs, followed by Riverside, Spencer, Dubuque, and wrapping up in Carroll. All of the Lunch and Learns were well attended by members and helped in creating an excitement and interest in grassroots advocacy for our members.

Thank you to everyone who attended our Legislative Conference, Legislative Reception, and/or the Lunch and Learns. FUELIowa’s beliefs and values reads “FUELIowa believes a strong, accessible fuel distribution network is essential to Iowa’s rural and urban economies. We value fuel choice, fuel quality, fair competition, consumer and environmental protection, and innovation. We advocate for policies and marketplace practices that support these beliefs and values.”

Our members and board explained our values when speaking to legislators at events. However, it doesn’t take a planned event to gain the attention of your legislator – they want to hear from you because all politics is local. If you see them at church, the grocery or convenience store, introduce yourself. They appreciate it.

And when we show a united message, we show that Together We FUELIowa.

New FUELIowa board member Dave Reif speaks with Representative Ray “Bubba” Sorenson.

FUELIowa Vice Chair Keith Olsen visits with Senator Tom Shipley

by her husband Henry) attended the Inaugural Ball for Iowa Governor Kim Reynolds.

CEO Ron Langston was also in attendance and visited with State Senator and FUELIowa Member Adrian Dickey.

CEO Ron Langston captures a friendly moment (photo) with Governor Reynolds

Short Term Disability Coverage

By Gary Koerner, Executive Vice President, FUELIowa

FUELIowa is aware of the challenges in today’s labor force for our members. Trying to attract and retain quality employees is a real concern and one that is constantly being discussed in our board meetings.

Just recently, we launched a shortterm disability product to give our members one more tool to compete in this tight labor market. A comprehensive benefits package can make a difference in recruiting and retaining a quality workforce. Statistics show 37% of employees prioritize generous benefits above higher pay and additional paid time off.

Beginning February 1, 2023, Health Alliance Benefit Plan (HABP) is offering our member groups an opportunity to purchase short term disability benefits through our preferred carrier partner, Symetra Life. We’ve had a strong response thus far including Rainbo Oil who is bringing a significant number of people into our new program. Short-term disability insurance income typically provides protection for the first three to six months of a non-work-related injury or illness. Short-term disability insurance can

replace a portion of your employee’s income, so they continue to pay every-day expenses such mortgages & car payments without interruption.

In addition to Short Term Disability, HEALTHAlliance is aggressively expanding the variety of plans we offer for Medical, Dental, Vision and Life. Please contact Mary Johnson at 515.554.0784 or Mary.Johnson@AssuredPartners.com to learn more and receive your customized proposal.

“Adding a short-term disability plan for our team was a top priority heading into this year. Having a short term disability plan establishes a clear and consistent path to support our employees when an unexpected medical event occurs. It allows us, as an employer, to support our employees showing a level of care, compassion, and connection with our team.”

Lori Thielen, Rainbo Oil

“We received substantial positive feedback and appreciation from our team thanking us for our investment and commitment to them.”

April Moldenhauer, Rainbo Oil

WANT BETTER HEALTH INSURANCE FOR LESS?

HEALTHAlliance offers industry leading health & wellness plans exclusively designed to meet the needs of fuel marketers, convenience stores, and associated businesses. With partners like Blue Cross & Blue Shield, Delta Dental & more, our members enjoy the finest coverage at low rates due to the combined buying strength of our membership.

www.HealthAllianceBenefitPlan.com

FUELIowa Legislative Tracker

By Sarah Bowman, Communications Director , FUELIowa

A new addition to the weekly FUELInsider has been created for the 2023 Legislative Session. FUELIowa Lobbyist Marc Beltrame, with his assistant John Hirl have created a legislative tracker that includes bills that FUELIowa is registered for/against/undecided, or not registered on the bill, but watching.

The tracker includes a link to the legislation on the State of Iowa Legislative page for you to review the legislation. Every week, the tracker is updated for our members including additional legislation, and movement of bills that are being followed.

The FUELInsider is sent out every Tuesday afternoon. Be sure to watch for it in your inbox. If you have any questions about the tracker, please email Sarah Bowman at sarah@fueliowa.com.

If you don't currently receive the FUELInsider, visit www.fueliowa.com under Member Benefits and sign up for the newsletter.

CALENDAR OF EVENTS

APRIL 17-19, 2023

UPPER MIDWEST CONVENIENCE STORE & ENERGY CONVENTION St. Paul, MN

UMCS is simply the best trade show, networking and educational event for the Fuel and C-store industry in the Upper Midwest.E

JUN 19, 2023

CAMP COURAGEOUS GOLF OUTING

Finkbine Golf Course, Iowa City, IA

Come and join FUELIowa members for a fun filled day of golf among your peers for a great cause - Camp Courageous of Iowa.

AUGUST

3-4, 2023

ANNUAL MEETING & SUMMERFEST

Okoboji, IA

Enjoy two days at beautiful Lake Okoboji! On Monday, have a drink lake side at Bridges Bay Resort and enjoy a beautiful dinner reception complete with entertainment, silent auction and lots of fun.

Fleet managers, transport owners, and fuel transporters turn to Westmor when they’re frustrated with downtime and maintenance issues or when they are looking for better ways to maximize their fleet. Oftentimes, they’re having troubles with their trailer weights and payload capacity or they need a product to help with a diversified operation.

TRANSPORT IT YOUR WAY

» Match your trailer and equipment to your operational needs

» Design equipment to maximize your payload capacity

» Diversify your operation with the ability to transport or deliver fuel

westmor-ind.com

» TranstechTM Tank design provides an unforced, precise fit-up of components for a stronger, longer lasting tank

» Made in the USA

VISIONARY ($5,000+)

$ 14,000 Bev & Henry Jessen - Cylinder Express*

$ 5,000 Paul & Tessa Fahey - Rainbo Oil*

$ 5,000 Larry Bentler, Jet Gas*

$ 5,000 Ronald N. Langston - FUELIowa^

LEADER ($2,500-$4,999)

$2,500 Robert Mast - Mast ATM

$2,500 Randy & Andrew Woodard - Elliott Oil*

$2,500 Todd Kanne - Community Oil*

$2,500 Jason McDermott - McDermott Oil*

$2,500 Cliff & Dave Reif - Reif Oil*

PARTNER ($1,000-$2,449)

$1,500 Joe Zietlow - Kwik Trip^

$1,000 Mark Cobb - Cobb Oil

$1,000 Jennifer Likes - Harms Oil ^

$1,000 Thomas Flogel - Mulgrew Oil

$1,000 Marc Beltrame - Beltrame Law Firm

$1,000 Richard Weiner - Cartersville Elevator

FRIEND ($500-$999)

$500 Matt Scheetz

CONTRIBUTOR ($0-$499)

$200 Keith Crandall

$200 Eric Scheuchl

$150 John Maynes

$150 Gary Koerner

$150 Jim Ewing

$150 Sarah Bowman

$100 John Meehan

^ Sustaining Member * Fuel Marketer Program

Donate at:

www.fueliowa.com/donate-to-pac.cfm

FUELIOWA PAC CONTRIBUTION CARD

CONTRIBUTOR INFORMATION

Name Address City Zip

State

E-mail

CONTRIBUTION AMOUNT

Bill Me*

$

*Contributions not drawn on personal funds will automatically be contributed to the FUELIowa Political Education Fund (PEF).

BILLING ADDRESS

Billing Address

(If different from above address)

Signature

Date

APR.

EDUCATIONAL WORKSHOPS

We’ve extened our offerings from four to fourteen educational workshops and moved them to Monday and Wednesday.

BUSINESS OWNER TRACK

Buying & Selling a Business- Best Practices for a Successful Transaction

Succession Planning Best PracticesPersonal, Legal, & Tax

Employee Retention Credit - It's Not Too Late to Claim $

BIOFUELS TRACK

The Future of Biofuels

Biodiesel Blending 101 - Best Practices, Equipment/Capital, Blending Credits and RINS

Offering Increased Blends without limits to E100 and B100

KEYNOTE SPEAKER

Denton Cinquegrana

Denton Cinquegrana, Chief Oil Analyst, OPIS, A Dow Jones Company

PRAYER BREAKFAST SPEAKER

Dan Meers

Dan Meers, Mascot, Motivational Speaker, Author

DINNER BANQUET SHOW

Williams and Ree

Williams and Ree - Music and Comedy

DINNER BANQUET SHOW

The Shaw Brothers

The Shaw Brothers are a premier Minnesota rock band

EV TRACK

EV Challenges & Best Practices to a Successful Business Model

EV Charging Equipment, Networks, & Ownership Options

EV Installation and Set-Up for a Great Customer Experience

DRIVERS TRACK

Roadside Inspection on the Show Floor

Federal Clearinghouse - Rules & Requirements

OFFICE PROFESSIONALS TRACK

The Future of Hiring & RetentionBuilding & Keeping Great Teams

C-STORE TRACK

The Future of the Tobacco Category & Status of Legal Cannabis

Store Design of the Future, Driving Traffic & Automation

FEDERAL LEGISLATIVE & REGULATORY SPEAKER

Rob Underwood

Rob Underwood, President of the EMA

REGISTER TODAY

There are two great ways to attend! All access and day passes available.

ALL ACCESS PASS $180

TUESDAY FULL ACCESS $120 Includes Dinner & Open Bar

TUESDAY PARTIAL ACCESS $55

Excludes Dinner

WEDNESDAY FULL ACCESS $85 Includes Prayer Breakfast

WEDNESDAY PARTIAL ACCESS $40

Excludes Prayer Breakfast

BECOME A FUELIOWA SPONSOR or ADVertiser

The best way to promote your business & signal your support of FUELIowa members is to become a sponsor & advertiser. Connect with the key decision makers of Iowa’s fuel industry today!

2023 FUELIowa Sponsorship Program

FULL-YEAR SPONSORSHIP PACKAGES

COMPANY RECOGNITION (at your level)

All FUELIowa Events & Meetings (see back cover for details)

FUELIowa Magazine

FUELIowa Website (includes link to your website)

FUELIowa Website Home Page (includes link to your website)

FUEL Insider Weekly E-Newsletter

FUELIowa Annual Industry Email Blast

SPECIAL INCENTIVES

Registrations to All Events (excludes Camp Courageous &UMCS )

Advertising Discount (see ad packages)

SUMMERFEST Golf Hole Sponsorship & Foursome

Meeting Space (FUELIowa Board Room)

Annual Meeting Host Sponsor Recognition

Legislative Reception Host Sponsor

ALA CARTE SPONSORSHIPS

Annual Meeting Lunch Sponsor $2500

Regional Meeting Sponsor (6)

(see back cover for dates/locations)

SUMMERFEST Dinner Sponsor $2500

SUMMERFEST Open Bar Sponsor (2)

SUMMERFEST Bags Sponsor (2)

MEMBER HAPPENINGS

FUELIOWA MEMBERS IN THE NEWS

WELCOME NEW FUELIOWA MEMBERS

Atherton Automotive Service Center, located in Council Bluffs, IA. Automotive excellence since 1928.

Consumers Cooperative Society based out of Tiffin, IA, specializing in providing quality propane and refined fuels.

iRely is an All-in-One Petroleum Distribution Software for Petroleum Marketers & C-store Offices.

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THANK YOU TO OUR DONORS

Thank you to all of our members who helped us meet our goal of $50,000 in donations for the 50th year of Camp Courageous! Our TOP 6 donors were Jet Gas, Molo Petroleum, BP Products, Rainbo Oil Company, Cooperative Energy Company and Harney Oil.

BP TO ACQUIRE TRAVELCENTERS OF AMERICA FOR $1.3B

Source: Convenience Store News

TA's 281 highway locations will complement BP's off-highway convenience and mobility business.

The first blockbuster acquisition of 2023 is here. BP is acquiring TravelCenters of America Inc. (TA) in a deal valued at approximately $1.3 billion.

According to TA, BP will purchase the outstanding shares of TA common stock for $86 per share in cash. The sale price represents an 84 percent premium to the average trading price of the 30 days ended Feb. 15 of $46.68.

"Today's announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans," said TA CEO Jonathan M. Pertchik. "We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level."

TA's strategically located network of highway sites complements its existing predominantly off-highway convenience and mobility business, enabling TA and BP to offer fleets a seamless

nationwide service, according to BP. In addition, BP's global scale and reach will, over time, bring advantages in fuel and biofuel supply, as well as convenience offers for consumers. It will provide options to expand and develop new mobility offers including electric vehicle (EV) charging, biofuels, renewable natural gas (RNG) and later, hydrogen, both for passenger vehicles and fleets.

Convenience is one of BP's five strategic transition growth engines in which it aims to significantly grow investment through this decade. By 2030, the company aims for around half of its annual investment to go into these transition growth engines. From 2023 to 2030 it aims that around half of its cumulative $55 billion to $65 billion transition growth engine investment will go into convenience, bioenergy and EV charging.

"This is BP's strategy in action. We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the U.S. and grow earnings with attractive returns," said BP CEO Bernard Looney. "Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It's a compelling combination."

Closing Requirements

The agreement is the culmination of a comprehensive process by TA's board of directors. Following the implementation of TA's turnaround plan and several quarters of improved operating performance, BP received unsolicited

interest to acquire the company. In response, TA's board hired financial and legal advisors as part of a formal process to consider a potential sale of the company. This process ultimately included competitive rounds of bidding from potential buyers that resulted in the transaction announced Feb. 16, according to TA.

A condition of the sale is the approval by shareholders who own a majority of TA's shares outstanding. Service Properties Trust, which owns 7.8 percent of TA's shares outstanding, and The RMR Group, which owns 4.1 percent of TA's shares outstanding, both have agreed to vote their shares in favor of the sale. At the closing of the transaction, TA will terminate its management agreement with RMR pursuant to the terms of the agreement and pay a termination fee to RMR that is currently estimated to be approximately $44 million.

Subject to shareholder and regulatory approval, the parties are targeting closing the acquisition by mid-year 2023.

The transaction was unanimously approved by TA's board. Citigroup acted as exclusive financial advisor to TA and Ropes & Gray as TA's legal advisor in connection with the transaction.

"Subject to approvals, we look forward to welcoming the TA team to BP. TA's amazing nationwide network of on-highway locations combined with BP's more than 8,000 off-highway locations have the potential to offer travelers and professional drivers a seamless experience for decades to come," said Dave Lawler, chairman and president of BP America.

Westlake-based TravelCenters of America Inc. is the nation's largest publicly traded full-service travel center network. Founded in 1972, its more than 18,000 team members serve guests in 281 locations in 44 states, principally under the TA, Petro Stopping Centers and TA Express brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking, and other services dedicated to providing great experiences for its guests.

TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists. The operator has more than 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet and Country Pride.

INSIDE THE BELTWAY

ENERGY MARKETERS OF AMERICA

Iowa would lose $10.3B a year in ethanol production without pipelines, report says

EPA PROPOSES ALLOWING YEARROUND HIGH-BLEND ETHANOL SALES — BUT NOT AS SOON AS IOWANS WANTED

Source: The Des Moines Register

Gasoline with higher blends of ethanol could be sold year-round in Iowa and seven other Midwestern states beginning in 2024 under a rule the U.S. Environmental Protection Agency proposed Wednesday.

The proposed rule is a victory for the biofuels industry, which for years has pushed to allow sales of gasoline blended with 15% ethanol during the summer. Summer sales have been curtailed because of concerns that the higher ethanol mix would worsen smog during hot weather.

But the proposal received a mixed reception from ethanol makers and Midwestern elected officials. They welcomed the plan for year-round sales, but criticized the EPA for not letting them begin this summer, as requested by a bipartisan group of governors, including Iowa's Kim Reynolds.

“While long overdue, I am thrilled that the EPA has approved our multi-state bipartisan ... request that will pave the way for year-round E15 and bring certainty to the industry," Reynolds, who last year signed a law requiring most Iowa gas stations to offer gasoline with higher blends of ethanol by 2026, said in a statement. “However, the arbitrary delay in implementation this summer is unacceptable and disappointing, but hardly surprising. Iowa won’t accept it without a fight."

Biden administration 'caving to refiner crocodile tears' with delay, critics say

Under the proposal, the higher blend could be sold during the summer in Iowa, Illinois, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Most gasoline sold in the U.S. is now blended with 10% ethanol, which is allowed throughout the year.

The issue is especially important in Iowa because it is both the largest producer of ethanol and corn, the primary ingredient in the biofuel. About half of all the corn grown in Iowa goes to ethanol production, and some 40% of the corn grown in the Midwest.

The American Coalition for Ethanol said in a statement that the group appreciated the EPA's proposal but argued there was no reason to wait until 2024. It accused the agency of delaying the action because of pressure from the petroleum industry, which said implementing the proposal in time to allow sales this summer would have been costly.

“The administration appears to be caving to refiner crocodile tears by kicking the can to 2024 instead," the coalition said. "This delay means consumers in conventional gasoline areas of the country will be forced to pay more at the pump this year and retailers who want to offer lower cost E15 to their customers will be penalized.”

The group, joined by elected officials including U.S. Sen. Joni Ernst of Iowa, a Republican and member of the agriculture committee, urged the EPA to allow the change to take effect in 2023 for the eight Midwestern states and for the Biden administration to allow the expanded ethanol sales in other regions of the country.

Monte Shaw, executive director for the Iowa Renewable Fuels Association, also weighed in.

With even more ethanol going into gas tanks, demand for corn should increase and prices paid to farmers also should rise.

More:Iowa’s ethanol production sets new record, group says

“It is unconscionable for me to think that this summer, Midwestern drivers and fuel retailers will be the ones to pay the price for the illegal delay by the Biden EPA to finalize these rules,” Shaw said in a statement. “The governors’ authority is not in question. The

FUELIowa not only keeps you informed in Iowa but on a federal level as well by partnering with our national organization, EMA. If it will impact you, we’ve got you covered.

air quality science is not in question. There is no question the EPA failed to meet the statutory deadline. Now they are using their own tardiness to justify putting off the E15 fix until 2024, leaving Midwest consumers to pay 15 cents per gallon or more than necessary.”

Refiners say cost of implementing yearround E15 could be steep

The American Fuel & Petrochemical Manufacturers industry group said the EPA was right to delay new rules until 2024 because summer gasoline production is already underway. Even with more lead time, the organization predicted that creating a special blend for the Midwestern states would increase costs and could lead to tighter fuel supplies in the region because not all refiners, pipelines and terminals are ready to handle the different blend.

“Fuel manufacturers and regional pipeline and terminal operators have made clear to the Biden administration and the eight petitioning states that the push to outlaw the current blend of summertime gasoline and replace it with a boutique blend is going to impose major costs on the Midwest’s fuel supply chain and consumers — ranging from $500-$800 million per year, and potentially higher if unforeseen interruptions occur,” the organization said in a statement.

The EPA said it would hold a hearing on the proposed rule in late March or early April. The agency didn't immediately respond to a request to comment about questions regarding its proposed rule.

C-STORES ARE SERIOUS FOOD AND BEVERAGE PLAYERS

Source: NACS

Foodservice at convenience stores directly competes with QSRs, and gas, groceries and more give the c-store channel an edge.

Convenience stores are changing the conversation on where to enjoy good food, giving customers a reason to stop beyond the gas pump and directly competing with QSRs, reports QSR Magazine.

According to Tom Cook, principal at King-Casey, a restaurant and foodservice business improvement firm, convenience stores are threatening quick-serve and fast-food restaurants in five ways.

• Fifty percent of consumers agree that convenience stores are just as capable of offering fresh food and beverages as restaurants are.

• Consumers’ perceived value of convenience stores is currently higher than that of restaurants.

• Convenience store foodservice margins are generally higher than at QSRs, so they can offer more frequent deals and with greater discounts.

• Convenience stores generally of-

fer greater menu variety than QSRs, which is an opportunity to lure away customers.

• Convenience store retail items provide an opportunity to attract consumers looking for the convenience of a one-stop shopping occasion.

Drive-thru, he says, which is currently not widespread at convenience stores, offers the opportunity to get on equal footing with quick-service brands in terms of speed and convenience.

“Channel blurring between quick-service restaurants and convenience stores has been occurring for some time now. That being said, the pace is picking up, so now is the time to keep these six convenience store threats top-of-mind as you develop and implement your 2023 business plan,” he advises restaurants.

QSR Magazine reports that Midwest convenience retailer Kwik Trip is prioritizing low prices but also readily available high-quality food. The convenience retailer offers food sampling often and promos such as “Dollar Wednesdays.”

“Our goal is to get the food in our customers’ mouths,” Paul Servais, retail foodservice director for the brand, told QSR. “We sample all the time. The expectation is that we're going to be sampling a minimum of eight hours a week per store.” (Read about Kwik Trip’s food-sampling program in “Elevate the In-Store Experience” in the April 2022 issue of NACS Magazine.)

Two years ago, Kum & Go, also based in the Midwest, made a concerted effort to improve its foodservice menu to put more emphasis on quick-service

foods rather than the typical c-store menu, Jac Moskalik, Kum & Go’s vice president of food innovation, told QSR.

“All statistics show that once the consumers try our new menu they're hooked. Once they try it, they come back,” Moskalik said.

Kum & Go has a 68% customer retention rate, according to Natasha Ratzlaff, director of category management and food service at the company. “The lines of convenience are blurring,” she told QSR.

Kum & Go thrives during the morning daypart, as 54% of the retailer’s sales occur during the early window, but the company still plans to innovate its breakfast menu, as well as focus on the afternoon and evening dayparts as well.

“Next year all of our innovation is built around different occasions,” Moskalik told QSR.

Casey’s, based in Ankeny, Iowa, is enhancing its breakfast offering, as the company thrives in the afternoon and evening daypart, thanks to an established pizza business that brought in $1.2 billion in revenue last fiscal year. Last year, Casey’s focused on broadening its morning daypart offerings, including new bean-to-cup coffee machines and updated breakfast burritos.

“We've continued to see unit and dollar growth in that product,” Tom Brennan, Casey’s chief merchandising officer, told QSR. “We've also taken a look at our breakfast sandwich lineup to make sure that we are delivering the same quality that we deliver in our pizza. We've seen guests really engage with us, and it's been very favorable.”All three of these retailers offer their customers a loyalty program that are tied to gas discounts. Kum & Go’s reward program is connected to

its app and allows customers to unlock the gas pump and pay for their fuel all on the app. Customers can also tailor their rewards to what they want, such as fuel discounts or free food.

“You can actually fuel up while not having to leave your car with the exception of putting the pump inside of your vehicle,” Moskalik told QSR. “Then you can actually shop for items inside the store while you're fueling up and our fuel rewards are all linked in there.”

Casey’s rewards program launched in January 2020 and has nearly six million members. Customers can redeem their points earned for Casey’s cash, which can be used for fuel discounts, in-store items or donations to its Cash for Classrooms program. Brennan told QSR that 50% of its members are active in the app on a monthly basis.

Kwik Trip’s rewards program is used “religiously” by customers to get money off their gas purchases.

“The magic of rewards is cents-off gallons,” Servais told QSR. “That’s what drives loyalty in the c-store industry.”

operating in the United States, a 1.5% increase from a year earlier, reversing a four-year decline, according to the 2023 NACS/NielsenIQ Convenience Industry Store Count.

Convenience stores sell an estimated 80% of the motor fuels purchased by consumers in the United States. The new store count shows that 118,678 convenience stores sell motor fuels (79.0% of all convenience stores). Store count increases were recorded in 39 states and Washington, D.C., led by Georgia, which added 271 stores. California lost 53 stores, the most of the seven states that saw their counts decline.

The industry growth was fueled by a 1,087-count increase in single-store operators, which now stand at 90,423 stores (60.2% of all convenience stores). In addition, there are “gas station/kiosk” stores that sell fuel but not enough of an in-store product assortment to be considered convenience stores. Overall, there are 13,346 kiosks. The kiosk format continued to decline—down 11.2% the past year and 49.3% over the past six years—as more consumers sought out stores that have robust food and beverage offers.

While the overall convenience store count indicated growth, results were mixed for similar channels.

With the U.S. population at 334.2 million, according to the U.S. Census Bureau, there is one convenience store per every 2,225 people.

U.S. CONVENIENCE STORE COUNT REVERSES 4-YEAR DECLINE

Source NACS

More than 150,000 c-stores operate in the U.S., up 1.5% from a year ago.

There are 150,174 convenience stores

“The value of convenience continues to grow, and that’s a driving factor why every retailer, regardless of channel, seeks to provide it. And it’s also clear that the convenience offer at convenience stores resonates with consumers, given the record in-store sales at convenience stores and

increase in store count,” said NACS Managing Director of Research Chris Rapanick.

State Rankings

Texas continues to have the most convenience stores (16,018 stores), or more than 1 in 10 stores in the United States. The remainder of the top 10 is the same order from the year prior: Despite a decline in store count, California remains second at 12,000 stores, followed by Florida (9,596), New York (7,917), Georgia (6,719), North Carolina (5,749), Ohio (5,673), Michigan (4,879), Pennsylvania

(4,728) and Illinois (4,666). Alaska grew its store count by 9.2% but still has the fewest stores (190) of any state.

The 2023 NACS/NielsenIQ Convenience Industry Store Count is based on stores in operation as of December 2022.

WE GO ABOVE, BEYOND, AND BELOW.

RISK MANAGEMENT

By Risk Improvement Department, EMC Insurance Companies, Des Moines, Iowa

Keep Customers and Employees on Their Feet: 3 Keys for Managing Black Ice

You know that black ice is dangerous. This clear glaze of extra-slippery ice can be found on roads, sidewalks and parking lots creating extra challenges for anyone attempting to walk or drive safely. When to Watch

Out for Black Ice

The thin, slippery layer of ice forms when warmer daytime temperatures melt snow and ice, and then cold overnight temperatures dip low enough to refreeze it.

While black ice can appear any time these temperature patterns are in place, it's most frequent in February and March when increasing daylight and warm days combine to speed up melting of snow piles that have been collecting all winter. This snowmelt spreads across sidewalks and parking lots, freezing overnight and creating a slippery surprise for you to deal with the next day.

Why is Black Ice So Dangerous?

Black ice can appear daily until

nighttime temperatures are consistently above freezing. This makes it challenging to keep up with if you're responsible for ensuring safe walking surfaces on your property.  It's also hard to spot, blending in to patches of wet concrete or asphalt. Unsuspecting employees and customers who don't expect to encounter sudden slippery spots are more likely to fall and suffer an injury.

Help keep your people on their feet with these three strategies.

Work with your snow removal contractor to choose a snow pile location that considers factors such as the slope of the property, paths that pedestrians and vehicles usually take and the area’s exposure to the sun (which will increase the rate of snow melt).

If you can, take advantage of drain grates as a way to direct melt water away from travel paths.

Pile Snow Where it Won't Cause Black Ice

Runoff from melting snow piles is a prime source of dangerous refreeze, so it’s important to collect plowed snow in a location that limits melting onto walkways.

Check for Black Ice in the Morning

Because black ice forms overnight, it’s important to check on walkway conditions early in the morning before pedestrian traffic picks up.

If black ice is present, mark the area with cones to alert passersby and treat the walkway with ice melt or traction aids, such as sand or poultry grit.

Make sure employees know which areas are most prone to

refreeze so they can check these areas throughout the day, looking for spots that may need additional attention. Make this task easier by placing treatment and snow removal supplies near doorways where employees can quickly grab them.

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Watch for Black Ice from Roof Runoff

Snowmelt from your roof or gutters can also be a source of black ice if the downspout discharge is directed across walking surfaces. Divert this runoff away from walkways with a downspout extension or a channel that directs the water underneath the walkway.

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