1 VOLUME 75, NO.4 2022 JUL/ AUG THE VOICE AND RESOURCE FOR IOWA’S FUELpg.SummerFUELIowap.VehiclesElectricpg.StandardE15INDUSTRYAccess410110Events20
2 PRESIDENT’S PERSPECTIVE E15 ACCESS STANDARD ELECTRIC VEHICLES 1011043 FUELIOWA SUMMER EVENTS PAC RISKINSIDEMEMBERCONTRIBUTIONSHAPPENINGSTHEBELTWAYMANAGEMENTINFEATURES3230282620THISISSUE ON COVERTHE Electrical infrastructure costs can be expensive but often will be worth it as more and more EVs continue to hit the road. If you would like to find out about the financial sup port available for EV invest ment, the Iowa Department of Transportation should be able to provide more insight, especially regarding any available funding through the federal Infrastructure Investment and Jobs Act. 10430 New York Ave Suite F Urbandale, IA 50322 p (515) 224-7545 f (515) www.FUELIowa.cominfo@FUELIowa.com224-0502
Associate Director Seneca DavenportCompanies|563-332-8000
Joseph Zietlow Vice Chair Kwik Trip, Inc La Crosse, 608-793-6484WI Doug Coziahr Immediate Past Chair 402-393-8350OmahaSupplyNebraska-IowaCompany
Ronald N. Langston President & CEO 515-224-1599FUELIowa Tessa Fahey 563-DubuqueRainboTreasurerOil526-1179
Bev Jessen JohnsonChair Oil/ Cylinder Express Battle 712-365-4740Creek Matt Scheetz Director The Depot Express Tiffin | 319-545-9514
PRESIDENT’S PERSPECTIVE
ChrisRNLBiellier
BOARD DIRECTORSOF
with Wellmark, the Association of Business and Industry, and others led to the defeat of the Pharmacy Benefit Manager legislation, which would have negatively impacted the FUELIowa MEWA HEALTHAlliance program.
Tia Eischeid Director Al’s Corner Oil Co Carroll | 712-673-2723
At the same time, we must be vigilant in opposing future mandates on the retail fuel sector in Iowa and regionally. We must align ourselves and our interests with strategic partners from business and industry. We must remind Iowans we are not opposed to the sale of renewable fuels, including those with higher blends of ethanol and biodiesel, and the Iowa farmer has been a long historic customer of the Iowa retail fuel industry. Finally, it is in our interest to maintain a productive and positive working relation ship with Governor Reynolds and the Iowa Legislature to achieve mutual goals in support of our customers, and the Iowa economy.
Don Burd Director Otter Creek Country Store Cedar Rapids | 319-533-1825
The passage of House File 2128, the Biofuels Access Bill was a major challenge for our membership. I am very appreciative of the personal efforts of the membership who gave of their time, intellectual talent, and treasure to express their “business case” concerns on behalf of the Iowa retail fuel industry.
Additionally, we succeeded in increasing the Renewable Fund Infrastructure Program Funding from $2 million to $10 million. We worked diligently to protect the Underground Storage Tank Fund. There were several “inside the convenience store” issues that had positive outcomes. For example, the passage of the Bottle Bill Reform Act after 45 years allowed our members to opt out of collecting bottles and cans at their locations. The defeat of the proposed increases on smokeless tobacco and vape products was also a success. We also worked with the Iowa Alcohol Beverage Division on liquor licensing reform, changing the formula used to calculate fees and realigning privileges under new consolidated license cate Ourgories.partnership
Chad Besch Associate Director New AlgonaCooperative|563-200-5115
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
FUELIOWA // www.FUELIowa.com 3
There remains a critical need to pursue additional infrastructure funding from state and federal sources to ensure the goals of HF 2128 are met while securing the long-term economic viability of low volume retailers who will be significantly burdened by the law.
Going forward, what matters is the knowledge our efforts were not in vain. With the professional assistance of our lobbyist, we were successful in making House File 2128, a less onerous economic burden.
Nicole Johnson Director Molo DubuqueCompanies|563-557-5714
Keith Olsen | Director Olsen Fuel Supply Atlantic | 712-243-2340 Jim Pauk Director W&H Coop Oil Co Humboldt | 515-332-2782
COMMITTEEEXECUTIVE
Iowa’s E15 Access Standard presents a myriad of new challenges for Iowa’s fuel marketers. The law passed by the Iowa legislature in the 2022 session implements several new laws direct ed toward fuel marketers to force the expansion of E15 offerings at retail and convenience stores across the state. With the implementation of the new laws within the E15 Access Standard, members have asked for guidance on how they assess the impacts of the new law on their business so they can begin planning for future implementa tion. Unfortunately, there is no one-sizefits-all solution to navigating Iowa’s E15 Access Standard. FUELIowa members must embark on a subjective review of their facilities and determine their path forward on a site-by-site basis.
Additionally, Iowa’s E15 Access Stan dard encroaches upon defined areas of federal law governing the sale of motor fuels through a UST system. The grey area created between federal and state law is of great concern to FUELIowa. As you chart a path for ward, please be mindful of, and inquire about, the requirements your pollution liability and property and casualty 4
Preparing and
StandardE15forYourPlanningBusinessIowa’sAccess
By John AffairsRegulatoryMaynes,Manager
1, 2023, must comply with the General E15 Ac cess Standard. The General E15 Access Standard requires E15 to be offered for sale at 50 percent of qualifying gaso line dispensers. • Any facility replacing an under ground storage tank after January 1, 2023, will be required to comply with the General E15 Access Standard and offer E15 from at least 50 percent of qualifying gasoline dispensers.
INFRASTRUCTUREINCOMPATIBILITY
FUELIOWA // www.FUELIowa.com 5 insurance providers require of your business. They are the most important entities with oversight of your business.
WAIVERS FROM THE ALTERNATIVE E15 ACCESS STANDARD: Small Retailer Exemption
• If the cost to a facility owner to comply with the Alternative E15 Access Standard exceeds $71,428 to make E15 available at a single gasoline fueling position, the owner may apply to the Department of Agriculture for a Class II waiver. The cost analysis shall be based on a completed site inspection report by a certified professional retail motor fuel site installer. The reasonable costs associated with assessing a retail motor fuel site may be included in the inspec tion report and cost analysis.
• Class I and Class II Waivers applied for and received by an owner are valid until 2041 or until a gasoline storage tank is installed, replaced, or convert ed triggering compliance with the General E15 Access Standard.
o Each double-wall fiberglass stor age tank was installed during or prior to 1991.
• The installation, replacement, or conversion of a gasoline storage tank triggers compliance with the General E15 Access Standard described above.
PENALTIES NON-COMPLIANCEFOR WITH THE E15 ACCESS STANDARDS:
o Each single-wall fiberglass storage tank was installed during or prior to 1996.
The good news is that we are in this together and your staff at FUELIowa is here to assist you with every step along your path in implementing Iowa’s E15 Access Standard. While we disagree with the heavy-handed approach taken by government to force in vestment into E15, we do share the common goal of growing the market for biofuels through the introduction of homegrown high-blend biofuels to Rulesconsumers.Implementing
•ACCESSGENERALStandard:E15STANDARD:AnyfacilitybuiltafterJanuary
• Existing facilities not qualifying for a waiver (described below) from the Alternative E15 Access Standard must offer E15 from a minimum of one fuel ing position on January 1, 2026.
Class II Waiver
• A retail dealer knowingly submitting a false incompatible infrastructure waiver order commits perjury as provided in Iowa Code 720.2.
Alternative E15 Access Standard:
Iowa’s E15 Access Standard are under development at the time of this drafting. FUELIowa members can expect rules to be final ized in the fall. FUELIowa will be provid ing regular updates to the membership as the details of the rules become more clear. The following summary is provided to you as a guide highlighting key areas of change required by Iowa’s E15 Ac cess
DURATION OF WAIVERS:
• The Department of Agriculture may refuse to issue or renew, and may sus pend or revoke, a license issued by the PENALTIESDepartment.
FOR SUBMISSION OF AN INACCURATE E15
WAIVER:
• A retail facility selling 300,000 gallons of gasoline or less is eligible to apply to the Department of Agriculture for an exemption from the Alternative E15 Ac cess Standard. The retailer must submit their annual gallons beginning January 1, 2020, and ending December 31, 2022, if requested by the Department of Agriculture in support of the waiver request. Class I Waiver • Sites with underground storage tanks meeting the following criteria are ex empt from the Alternative E15 Access Standard:oEach motor fuel storage tank not constructed of fiberglass (e.g., steel) was installed during or prior to 1985.
• Retail dealers, including tankwagon operators, shall prepare and file the re port with the Department of Revenue. Failure to file may result in a fine of $100 per EXCISEoccurrence.TAXIMPOSED ON GASOLINE AND DIESEL FUEL:
6 E85 GASOLINE
• The E15 income tax credit moves to a flat rate of $0.09 cents-per-gallon effective January 1, 2023 and expires on January 1, 2026.
IOWA DEPARTMENT OF REVENUE RETAIL MOTOR FUEL GALLONS REPORT –MANDATORY REPORTING AND PENALTY:
TAX CREDITS: E85 Tax Credit:
BIODIESEL PRODUCTION TAX CREDIT: The biodiesel production tax credit paid to biodiesel producers for pro ducing biodiesel in Iowa is increased from $0.02 cents-per-gallon to $0.04 cents-per-gallon. The credit is applied to the first 25 million gallons of biodiesel produced at a facility.
• Excise tax rates for E15 plus blends will remain subject to market share and adjusted accordingly on an annual basis. The current excise tax rate for E15 is $0.24 cents-per-gallon.
DIESEL FUEL vehicleifiedhighestbyinternalstateusingchase•MOTORFUELQUALIFIEDJanuaryhigher.infrastructuredispensingor•REQUIREMENT:INFRASTRUCTURECOMPATIBLEAretaildealerinstalling,replacing,convertingdieselfuelstorageandinfrastructuremustinstallcompatiblewithB20orThisprovisioniseffectiveon1,2023.3.RENEWABLEUSEBYSTATEVEHICLES:Thestateshallprovideforthepurandoperationofmotorvehiclesqualifiedrenewablefuels.Amotorvehicleoperatingusingancombustionenginepoweredgasolineordieselfuelshallusethepossibleclassificationofaqualrenewablefuelallowedbythemanufacturer.
• Biodiesel blends classified as B30 or higher are eligible for an income tax credit of $0.10 cents-per-gallon. Effec tive January 1, 2023, through January 1, 2028. E15 Plus Gasoline Promotion Tax Credit:
• Eliminated, effective January 1, 2023. B11 Tax Credit:
• Effective July 1, 2024, the current ex cise tax offset formula for B11 will move to B20. On July 1, 2024, the excise tax rate for B11 will move to $0.325 centsper-gallon. B20 will be assessed an ex cise tax rate of $0.295 cents-per-gallon and will be adjusted upward accord ing to market share
• Biodiesel blends containing between 11 percent and 19 percent by volume biodiesel will be eligible for an income tax credit of $0.05 cents-per-gallon. Effective January 1, 2023, through Jan uary 1, 2028. B20 Tax Credit:
• Biodiesel blends containing between 20 percent and 29 percent by volume biodiesel will be eligible for an income tax credit of $0.07 cents-per-gallon. Effective January 1, 2023, through Jan uary 1, 2028. B30 Tax Credit:
• The tax credit remains $0.16 centsper-gallon and is repealed on January 1, 2026. B5 Tax Credit:
•REQUIREMENT:INFRASTRUCTURECOMPATIBLEAretaildealerinstalling,replacing, or converting gasoline storage and dis pensing infrastructure used to store and dispense ethanol blended gasoline classified as E15 or higher must install infrastructure compatible with E85. This provision is effective on January 1, B202023.
• Priority will be given to applications for sites with Special Status. Special Sta tus is assigned to a site where the cost to make E15 available from a single qualifying dispenser is equal to or less than $71,428.
RENEWABLE FUEL INFRA STRUCTURE GRANT PRO GRAM (CHANGES EFFECTIVE
•TERMS:Costshare terms include a 5-year commitment to marketing the ethanol or biodiesel product eligible for grant PREMIUMassistance.
ETHANOL LABELING:
Ethanol Project Cost Share
• Ethanol projects eligible for grant funding under the program must meet an E85 equipment compatibility stan dard beginning January 1, 2023.
• Cost share awards remain $50,000 or 70 percent of cost, whichever is less for biodiesel projects.
projects eligible for grant funding under the program must meet a B20 or higher equipment compatibility standard.
MINIMUM BLEND OF BIODIESEL ELIGIBLE FOR SALE:
• Following applications receiving Spe cial Status, priority will be given in the following order: o Tier I facilities o Tier II facilities o Tier III BIODIESELfacilitiesPROJECT
• A tier I facility is owned by an op erator of 10 or fewer sites and sells between 1-140,000 gallons of gasoline annually. A tier I facility is eligible for a cost share agreement covering up to 90 percent of the project cost not to exceed $63,900.
• Premium grade gasoline shall have an octane rating of not less than 91. Previously, an octane rating of 90 was required before the use of the grade name Premium was permitted.
JANUARY 1, 2023):
• The state of Iowa sponsored “Amer ican Ethanol” decal is no longer required to identify an ethanol blend. Retailers are no longer required by state law to affix a decal notifying consumers of the presence of ethanol. However, federal labeling requirements remain in effect.
•equipment.Biodieselrelated
• A tier II facility is owned by an oper ator of 10 or fewer sites and sells more than 140,000 gallons but not more than 450,000 gallons of gasoline annually. A tier II facility is eligible for a cost share agreement covering up to 75 percent of the project cost not to exceed
• A minimum blend of B5 is required to be sold by an applicant throughout the duration of the grant commit ment with one exception. Beginning April 1 and ending October 31, the grant recipient must use the biodiesel infrastructure to store and dispense, or store, blend, and dispense, biodiesel blended fuel classified as B11 or higher. This requirement becomes effective on January 1, 2023. o Contracts between an applicant and the state entered prior to January 1, 2023, will not be subject to the B5 and B11 requirements under the new law. The minimum blend requirement for these grant recipients will remain B2.
GRADE GASOLINE:
FUELIOWA // www.FUELIowa.com 7
•$53,250.AtierIII
GRANT PROGRAM PRIORITY:
COST SHARE AND ELIGIBILITY:
Compatibility
o All projects funded with money allocated to the program in state fiscal year 2022 or earlier are not required to install E85 compatible equipment even if installation occurs on January 1, 2023, or later.oEthanol projects funded with state fiscal year 2023 funding completed on or prior to December 31, 2022, are not required to install E85 compatible
facility is any facility not meeting the criteria above. A tier III facility is eligible for a cost share agree ment covering up to 70 percent of cost or $50,000, whichever is less.
• At least five percent of biodiesel blended fuel by volume must be bio diesel. This provision serves to preclude sales of biodiesel blended into diesel at a volume less than 5 percent. Existing contracts between applicants with the Renewable Fuel Infrastructure Grant Program and the State will be unaf fected by this provision of the law.
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ElectricHere’s101:VehiclesElectricHowtoIntegrateinYourBusiness By
According to the Department of Ener gy, electric vehicle (EV) sales grew by 85 percent in 2021. EVs are growing at historic rates—and Iowa is preparing its infrastructure for more EVs on the roads. FUELIowa advocates for the best interests of our state’s fuel retailers and gas station owners. As more consumers turn to electric vehicles, our members must be equipped with the right re sources to make strategic decisions for their business. We spoke with Stephanie Weisenbach, Program Manager for the Iowa Energy Office; David Parker, North American Market Development Manager for Re tail eMobility; and Rob Wozny, Electri fication Program Manager with Alliant Energy about navigating the world of EV infrastructure. Our conversation is below. What are the first steps for an electrification project? The first step of any electrification project is to contact your local utility. Your utility can explain how to submit Strategic Elements
Should I buy, lease, or be a hosted site? Most convenience store owners own and operate their chargers. These C-Store owners prefer the free dom of being able to set the price, collect all revenue, and promote their brand. Additionally, these C-Store owners value the data and education that they receive from owning the chargers. The EV industry is growing and changing at a rapid pace. Owning networked chargers allows for access to dashboards and reports that inform owners on the charger’s utilization, which helps station owners to better understand how much their EV charging busi ness should grow and at what pace. Some convenience store owners elect to host chargers through a third-party company. Depending on your location, hosting is not always an option. Some of the benefits include avoiding any capital invest ment to get into EV charging. How ever, station owners are required to
What are the different EV equipment options?
Level 1 chargers are the slowest and are typical for at-home charging. Level 1 chargers provide approximately 3 to 5 miles of range for every hour charged and depending on the Electric Vehicle it can take more than 100 hours for a full charge. Level 2 chargers are a little faster and offer charging loads that range from 2.5kW to 19.2kW. Level 2 chargers are commonly found at parking garages and provide approximately 10 to 20 miles of range for every hour charged. Level 3 chargers are the fastest and are also known as Direct Curren (DC) Fast Chargers. Level 3 chargers offer to charge loads that range from 25kW to 350kW. A Level 3 charger’s speed of charge will vary depending on the kW output of the charger. A 50kW Level 3 charger delivers approximately two to three miles of range per minute charged while a 175kW Level 3 charger de livers approximately 7 to 10 miles of range per minute charged. Due to their fast speed of charge, Level 3 chargers are commonly found at and recommended for Convenience Store / Fueling loca tions.
What costs might be anticipated infrastructureforand what role does the utility play?
Your utility calculates the cost to deliver energy to your location using a formula referred to as an “energy delivery allowance.” Engineers deter mine this amount based on the power required and anticipated equipment utilization. Utility tariffs determine how much allowance is covered and the business owner is responsible for any overage. Other responsibilities include any “make-ready” infrastructure, which would be any costs related to construction or equipment installed beyond the meter. In some cases, “en ergy-as-a-service” or “charging-as-aservice” companies will deploy equip ment on a customer’s property through a site host agreement. There are many different models of these agreements. It offers site hosts to benefit from other business opportunities such as addition al foot traffic, store sales, and shares of the generated revenue from charging. In exchange, business owners will pay some or all the installation and equip ment costs and, in some instances, the site host may need to pay a monthly fee for the equipment to stay on the property.
When deciding which EV Charger to deploy at your site there are several factors to consider including speed of charge, simultaneous charging capa bility, varied maintenance between charger types, all-in-one chargers versus distributed chargers, and total cost of ownership. Speed of charge could be argued as the most important of these factors and is certainly a good place to start. Speed of charge is largely based on the charger’s kW output. EV Chargers have been categorized into three lev els (Level 1, Level 2, and Level 3).
FUELIOWA // www.FUELIowa.com 11 a request or application for a new upgraded service, discuss your rate structure and help with anything else you need to consider to ensure a successful project. Your utility will be able to tell you if the amount of power you need is available and explain any timeline or financial requirements. They will be able to offer advice about loca tions for infrastructure to help manage costs, how many chargers to install, and at what power levels. They will also inform you about any legislative or regulatory requirements to understand before purchasing. Business owners are urged to consider funding. Most utilities provide resources for addition al funding and information that can potentially save you considerable time and expense.
Leasing EV chargers is not as com mon but could be a good fit for your business. Leasing chargers allow for the same benefits as owning in price setting, collecting revenue, education, and promoting your brand. The deci sion lies upon which financial modeling your business prefers.
Hardware: depending on which options you include with your order a 50kW Level 3 charger can range from 30-50K. A 175kW charger can range from 90-125K.
The cost of energy delivered is based on the amount of energy used and the tariff for that class of service. Operators can choose to charge EV drivers in several different ways. Most common ly, companies will charge by kilowatt hours, minutes, or by the session. We encourage customers to contact their utility early in the process to help them understand the rates and impacts to anticipate from EV charging.
12 promote another company’s brand and risk sacrificing the revenue and business insight received by owning and operating the chargers.
What are considerationskey and cost estimates for making my decisions on EV at my site? Costs and revenue should be consid ered when deciding on implementing EV charging. Potential costs would include hardware, software, electrical upgrades, and utility.
What are hesitationstheyou see from fuel retailers?
Electrical infrastructure costs can be expensive but often will be worth it as more and more EVs continue to hit the road. If you would like to find out about the financial support available for EV investment, the Iowa Department of Transportation should be able to pro vide more insight, especially regarding
How does electricity get charged to my site for resale to electric vehicle customers?(EV)
From a revenue perspective, your customers will pay for their charge either by a credit card reader located at the charger or by a driver applica tion that comes with network software. Network software gives your business flexibility on price setting. An EV driver can charge by kWh, time, parking, or a combination of the three. Typically, drivers will spend 20 minutes on the av erage dwelling for a charge. It should be noted that charging at a 50kW Level 3 charger is faster than that of a customer using gas. Business owners can expect more in-store purchases since EV drivers are there for a little longer.
Software: pricing models vary by pro vider, but plan to pay a subscription and transactional fees.
Electrical Upgrades: Level 3 DC Fast Chargers deliver a lot of electricity at a rapid pace and usually require 480v and 3 phase transformers. This cost to upgrade will vary significantly from site to site. Utility: The average rate paid per kWh to utilities is approximately $0.10 to $0.12. The average rate per kWh paid by an EV driver for a 50kW charger is approximately $0.30 to $0.50. It is also important to consider that some utilities can have demand charges while other utilities have special EV Charging rate plans that make it easier to monetize the resell of electricity.
What is your advice to independent fuel retailers?
David Parker suggests installing EV Chargers in one way or another at your sites as soon as possible.
13 any available funding through the federal Infrastructure Investment and Jobs However,Act. the Iowa Energy Center Iowa Energy Center, administered by the Iowa Economic Development Authori ty, offers support for a variety of energy projects, including electric vehicle charging stations, through the Energy Infrastructure Revolving Loan Program. The program provides low-interest loans for energy infrastructure projects that facilitate electricity or gas gener ation, transmission, storage, or distribu tion.
“The path forward for major manufacturersvehicle is electric and it is important to identify your sites as a destination for EV Charging now to gain loyalty during these initial stages of EV “Ifadoption,”youdonothave a large budget, then start small. The sooner you get into EV Charging the better your EV edu cation will be and will help position you for future success.” he said. For more information on Iowa’s EV plan development, iowadot.gov/IowaEVPlanvisit:
Federal Fiscal Year 2022 Funding $51.4 MILLION
Iowa is a proud and nationally recog nized leader in renewable energy and biodiesel and ethanol production. Our state has made a significant invest ment in renewable fuels infrastructure. State leaders, local communities, private companies, and utilities are making solid progress to add electric vehicle infrastructure to our diverse fuel Iowamix.will remain unwavering in our sup port for varied fuel resources and asso ciated infrastructure, including ethanol, biodiesel, propane, renewable natural gas and electric.
Iowa DOT is partnering with IEDA to oversee development of an Electric Vehicle Infrastructure Deployment Plan that supports the transportation electri fication efforts for Iowa.
The NEVI Program provides federal funds up to $7.5 billion to make EV chargers accessible for public use by establishing a nationwide intercon nected network across the U.S Funds include $5 billion for the NEVI Formula Program and a $2.5billion discretionary grant program.
Iowa’s Commitment to Fuel Diversity
5-Year NEVI Federal Funding
Iowa’s Allocated NEVI Formula Funds
EV Efforts in Iowa
ELECTRIC INFRASTRUCTUREVEHICLEDEPLOYMENT CREATED BY
NEVI Program In February 2022, guidance was issued for the National Electric Vehicle Infrastructure (NEVI) Program, which provides federal funds for strategic deployment of an electric vehicle (EV) charging infrastructure. $7.6 MILLION
• An
Iowa's Existing & Future Stations
EV Vision,DeploymentInfrastructurePlan,&Goals
•A charging network that supports long-term EV station success which maximizes economic benefits for con network of chargers that fosters innovation and collaboration to expand economic opportunities
• A
•sumersAgrowing
•healthAsustainable
A readily accessible EV ecosystem that promotes mobility, reliability, and sustainability for the overall economic and social wellbeing of Iowa. EV fast charging system that sup ports regional and interstate travel local EV system that promotes eq uitable access and mobilitythroughout Iowa’s communities
•A
• A charging network that helps pro vide the traveling public a variety of transportation and energy options transportation system that reduces energy life-cycle emissions to minimize impact on human and environmental transportation and energy system that can adapt to economic, technological, and environ mental changes while providing a high level of system reliability
16 NEVI Requirements for Charging Stations Stay Informed •Visit the before•(not•Charging•<50••a•peers•edand•Understandiowadot.gov/IowaEVPlanwebsite:thegrantcyclewhenfundingisexpecttobeavailableStartconversationswithyourandcommunitiesThisisjustthebeginningoffive-yearprocessIowa.EvPlan@iowadot.usAlongAlternativeFuelCorridorsmilespacing;<1mileawayAtleastfour150kWDCFastportsOpentogeneralpublicproprietary)Needtobuildoutcorridorsgoingoff-corridor
Sarah Bowman joined the FUELIowa team as the Communications Director in July 2022. Bowman came to FUELIowa after almost 5 years with the Iowa Poultry Association/Iowa Egg Council as their Director of Industry Affairs.
Bowman lives in Clive with her husband and five children. In her spare time, she volunteers at St. Boniface teaching Faith Formation, and plays taxi running kids to football, baseball, dance, soccer.
Bowman grew up in Glidden, Iowa, near her family’s Century Farm. She earned a Bachelor of Science in English at Iowa State University and was a staff writer and opinion columnist for the Iowa State Daily.
FUELIOWA // www.FUELIowa.com 17 Committed to mwpetroleum.comQuality.CONSTRUCTION+INSTALLATIONPETROLEUMSERVICESCOMPLIANCE 515.330.2959 /midwestpetroleumequipment info@mwpetroleum.com LINCOLN OMAHA NORTH PLATTE DES MOINES Meet FUELIowa's Newest Team Member
SARAH BOWMAN, COMMUNICATIONS DIRECTOR
Bowman’s previous association work not only includes poultry, but also 3 years with the Agribusiness Association of Iowa. She has worked in 3 legislative sessions clerking at the State Capitol, and man aged communications for a US Senate Campaign and a national Political Action Committee.
It’s not just business. It’s personal.
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Value — Offering your customer s g rill cylinder cages provides your business with an e xcellent additional source of income and increased tr affic flow Quality — Each cylinder tank that arrives at our for your customer. Service on your need for product. At Cylinder Express, we take your business personally. A call to us means always being g reeted by a per son, not an automated message. It means never r unning out of cylinder s so you can adver tise a special on propane with complete confidence that your customer s will always find a propane tank at your store. It means value, quality and ser vice. It means we treat you like family
FUELIOWA // www.FUELIowa.com 19
Leading the evolution. Environmental concerns are driving public demand for sustainability. Renewable fuels are fueling the transformation. U.S.-based Renewable Energy Group is one of the leading producers of bio-based diesel. We use advanced science to help companies change today—so they can benefit from contributing to a cleaner world tomorrow. Visit regi.com or call 844.405.0160 to learn how we make sustainabilityprofitable.Clean fuel innovation powers a sustainable future.
FUELIowa Golf Benefit for Camp Courageous a Huge Success More than 120 golfers from FUELIowa joined together in June at Brown Deer to raise money for Camp Courageous. Together, we raised over $30,000 thanks to strong support from sponsors & members. Over the years, FUELIowa has raised more than $2 million for the camp. Despite an ominous weather fore cast, the great cause we support enabled the sun to shine on us all day for a great 18 hole best shot, followed by a cocktail reception, prime rib dinner, and awards. Special guests included Hawkeye Football players and Charlie Becker, Executive Director of Camp Cou rageous among others. Thank you to everyone who attended and donated as we continue our quest to fund the new Durgin Elevator at the camp.
Summer Events With FUELIowa EVENTS By Gary FUELIowaExecutiveKoerner,VicePresident,
FEATURE
20
FUELIOWA // www.FUELIowa.com
22
FUELIowa's 2022 Summerfest was held in Okoboji starting on August 4 with a productive board meeting. Doug Coziahr was recognized for his years of service to the FUELIowa Board of the board meeting, mem bers boarded the Queen II for a cruise
FollowingDirectors.
FUELIowa’s Summerfest Held August 4 – 5 in Okoboji and networking. Members returned to Bridges Bay to enjoy a steak or scallops dinner while continuing to network (and plan their team name for the bags tournament). extend a special thank you to all of our sponsors and attendees for making this a successful event for the FUELIowa PAC!
We
Doug Coziahr recognized for his service as chair in 2021. Board session. Bag Toss! The tradition continues.
FUELIOWA // www.FUELIowa.com 23
The tournament was DOMINATED by the team from Casey's General Stores & Flint Hills Resources, Nathaniel Doddridge and Corey Urban, having accomplished 5-0 on the day and defeating the team from Olsen Fuel, Keith Olsen & John Olsen in the championship.
Congratulations to the winners of the special events at the golf tournament: Women’s Long Drive: Tera Petersen Men’s Long Drive: Trent Hepler Longest Putt: Trent Hepler Closest to the Pin: Clarence Hudson Random Drawing for Air Pods: Colin Tiefenthaler
After doing battle the night before in the bags tourney, Corey Urban, Keith Olsen, and Jon Olsen joined forces on the golf course on August 5 to win overall low score and secure the FUELIowa Summerfest Golf Trophy, ending the two-year reign of the team from Mast ATM, who had held the trophy the past two years.
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FUELIOWA // www.FUELIowa.com 25 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 westmor-ind.comoperation. » 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 » TranstechTM Tank design provides an unforced, precise fit-up of components for a stronger, longer lasting tank » Made in the USA SCAN TO LEARN MORETRANSPORT IT YOUR WAY
26 ^ Sustaining Member * Fuel Marketer Program Donate www.fueliowa.com/donate-to-pac.cfmat: VISIONARY ($5,000+) $14,200 Bev & Henry Jessen, Cylinder Express * $ 5,100 Don Burd, Otter Creek Country Stores * $ 5,000 Paul & Tessa Fahey - Rainbo Oil * $ 5,000 Ronald N. Langston - FUELIowa^ LEADER ($2,500-$4,999) $4,000 Bob Mast, Mast ATM * $2,875 Todd Kanne, Community Oil * $2,500 Jason McDermott, McDermott Oil * PARTNER ($1,000-$2,449) $2,000 Steve Kimmes, Kimmes Enterprises $1,500 Joe Zietlow, Kwik Trip ^ $1,500 Keith Olsen, Olsen Fuel Supply $1,025 Wade Fowler, Coremark $1,000 Dave Reif, Reif Oil $1,000 Cliff Reif, Reif Oil $1,000 Randal Woodard, Elliott Oil $1,000 Andrew Woodard, Elliott Oil $1,000 Matt Scheetz, Depot Express $1,000 Eric Taylor, Taylor Oil $1,000 Jennifer Likes, Harms Oil ^ $1,000 Larry Bentler, Jet Gas $1,000 John Gilroy, Grysson Oil $1,000 Mark Cobb, Cobb Oil FRIEND ($500-$999) $725 Tia Eischeid $525 Cory Bauer $500 Mark Tiefenthaler $500 Rod Gittins $500 Mark Lincoln $500 Keith Crandall $500 Richard Weiner $500 Jeff Wade $500 Gary Stewart 2022 PAC CONTRIBUTORS ^ Sustaining Member * Fuel Marketer Program AS OF AUGUST 23, 2022 CONTRIBUTOR ($0-$499) $425 Tera Petersen $400 Scott Struck $375 Chad Besch $350 Bob Schueler $350 Eric Swingler $300 Jim Pauk $300 Doug Coziahr $300 Logan Huffman $230 Trent Hepler $195 John Maynes $150 Nathaniel Doddridge $125 Gary Koerner $100 Dave Scheetz $100 Allen Boeckman $100 Dale Boeckman $100 Dean Onken $100 Aaron Ezzio $100 John Hepler $100 Kane Kuehl $ 80 Chris Biellier $ 60 Sarah Bowman $ 50 Nathan Nolte $50 Teresa Hunt $25 Joe Madsen
27 Billing DateSignatureAddress*Contributionsnot drawn on personal funds will automatically be contributed to the FUELIowa Political Education Fund (PEF). CONTRIBUTION AMOUNT Bill Me* (If different from above address) $ CONTRIBUTOR INFORMATION CityAddressName ZipE-mailState FUELIOWA PAC CONTRIBUTION CARD BILLING ADDRESS
Northpoint Commercial Credit of Minneapolis Taiga Data, Inc. Business Intelligence at an Affordable Price Global Source Distribution is a family owned business, estab lished in 2014 out of passion for the industry. New Star Mart located in Pella, Iowa Cogdill Farm Supply, offering propane (LP) gas services throughout Shelby, Harrison, Mono na, and Crawford County. Midwest Food & Tobacco Group, since 1969, Midwest has been known as the distributor of choice for convenience stores. Klinger Paint Company, offering premium LP tank coatings. SK Group – Colfax Travel Center
WELCOME NEW FUELIOWA MEMBERS
Casey's grant program awarded $1 million to benefit schools through 89 grants this year. Its funding priorities in cluded a variety of projects that focus on physical improvements, material needs, teacher support and communi ty engagement initiatives.
CASEY'S KICKS OFF IN-STORE GIVING CAMPAIGN FOR SCHOOLS
Some of Casey's 2022 giving highlights
•include:Bonnie Grimes Elementary in Arkan sas received a $50,000 grant for a new inclusive playground; • Columbus School District in Nebraska received $20,000 for a new training and technology center to host student assemblies, professional development for staff and other activities for their growing population; and • Sigourney Community School Dis trict in Iowa received a $10,000 grant to purchase 10 new microscopes to enhance science curriculum. Grant program details and some additional projects are available at Casey's blog. Casey's continued efforts to give back to the communities in which it operates are part of its long-term strategic plan and tie into its Casey's Rewards loyalty program. Launched in early 2020, the program allows customers across its network to earn points on purchases and turn them into a donation to local schools via Cash for Classrooms. The retailer marked the launch of
28 MEMBER HAPPENINGS
Courtesy of Convenience Store News Store guests can help fund grants for local schools throughout August. Casey's kicked off a giving campaign to help fund grants for local schools across its 16-state operating footprint on Aug. 3. All month long, the convenience store retailer will ask guests to round up their purchases at the cash register to help fund its Cash for Classrooms Grant TheProgram.annual program provides funds for projects and initiatives that will bene fit K-12 public and nonprofit, private schools in the communities Casey's "Schoolsserves. are at the heart of each of our communities, and we are excited to continue supporting students and teachers through our Cash for Class rooms Grant Program," said Megan Elfers, president, Casey's Charities.
FUELIOWA MEMBERS IN THE NEWS
"Casey's proudly serves the communi ties we're in and Cash for Classrooms is one way we can show our support for our students, teachers and schools who could use a boost now more than Everyever." dollar raised from guests and the round-up campaign will go toward the Cash for Classrooms Grant Program. Its next application process will run Oct. 1 through Nov. 30. Grant requests may range from $3,000 to $50,000. Grants will be awarded in March 2023.
Casey's Rewards by giving more than $50,000 in donations toward local schools. The initial donation benefited 16 schools, one in each of the states where Casey's operates. "Being rooted in the communities that we call home has been a pillar for Casey's since day one," said Chris Jones, then-chief marketing officer and senior vice president at Casey's. "With the launch of Casey's Rewards, we're thrilled to be getting our guests involved in directing donations to schools through Cash for Classrooms, and our additional donation of over $50,000 to schools will help kick things off."
HY-VEE NAMES NEW CEO Courtesy of GroceryDive.com Hy-Vee’s naming of Wiese to the top post is the latest in a quick succession of promotions for the nearly 30-year company veteran. And it comes as Hy-Vee faces a few key challenges, including a multi-state expansion and bruising price inflation. Wiese started working at Hy-Vee in 1993 and served in various operations roles before being named director of real estate strategic planning in 2012. He moved through leadership roles with the company’s health and wellness and Amber Specialty Phar macy divisions, and in December 2020 became executive vice president.
FUELIOWA // www.FUELIowa.com 29
Just a few months later, Wiese was named president of digital growth and co-chief operating officer, and last December was promoted to his current role as vice chairman and president of supply chain and subsidiaries. Wednesday’s announcement indi cated that Wiese along with Gosch, who has followed a similar leadership trajectory over the past few years, will collectively run Hy-Vee’s operations while Edeker, who has been Hy-Vee’s CEO since 2009, will remain in charge and serve in a more strategic capacity. These are challenging times for HyVee. In April, the company announced it would shift hundreds of corporate employees to store-level jobs and also pause several large-scale projects. In a surprisingly long and candid letter posted in various local publications, the company detailed how inflation, supply chain pressures and rising gas prices were impacting its business. The Iowa-based grocer, which oper ates close to 300 stores in eight Mid western states, competes heavily with discount retailers like Walmart, Aldi and dollar stores in numerous communities. Not traditionally known as a low-price retailer, Hy-Vee has stepped up its val ue messaging and promotions recent ly, including a “Hy-Vee Deals” digital Incircular.December, Hy-Vee said it planned to expand to several states outside of the Midwest, confirming an earlier report from The Des Moines Register. The company has said it plans to open a location in Louisville, Kentucky, in 2023, and in March announced a location in Spring Hill, Tennessee, but has not provided any updates since then.
MPC firmly believes in opening up the payments market and introducing competition, which in turn would lower costs and drive vote.KamalavoteInflationall-nightOnPASSESREDUCTIONINFLATIONinnovation.ACTSENATESundayAugust7,afteramarathonsession,theSenatepassedtheReductionAct(IRA).Thefinalwas50-50,withVicePresidentHarriscastingthetiebreaking
INSIDE THE BELTWAY ENERGY MARKETERS OF AMERICA
FUNDING FOR ALL 50 STATES
There is nearly a dozen independent networks that are equipped to route transactions, but a handful of domi nant networks (VISA and Mastercard), have prevented them from competing in the credit card space limiting the choice of network. By allowing retail ers a choice of network to handle a transaction, they can reduce costs and pass those savings onto the consumer. Introducing routing competition could save businesses and consumers up wards of $11 billion annually according to payments consulting firm CMSPI.
U.S. Departments of Transportation and Energy announced the receipt of electric vehicle (EV) infrastructure deployment plans from all 50 states. The plans are required in order for states to obtain federal funding under the National Electric Vehicle Infrastruc ture (NEVI) Formula Program. The NEVI program was recently infused with $5 billion in funding under the Bipartisan Infrastructure Law to be distributed over a five-year period starting in fiscal year 2022. The good news is that states are en couraged to contract with private third parties, including energy marketers, to locate, install, operate, and maintain EV charging stations along the fed eral highway system. States will need significant private party involvement because Federal Highway Administra tion (FHWA) guidelines prohibit instal lation of EV chargers at most high way rest areas. Those guidelines also require deployment of NEVI funded EV charging stations to be located within one mile of highway exit ramps, prime real estate already dominated by energy marketers. Some older highway rest areas with commercial activity in operation before the 1956 federal commercialization ban was adopt ed will be eligible for NEVI funded EV charging stations. The FHWA will now review each state plan for compliance with federal EV siting guidelines. The agency’s goal is to review the 50 state programs so that the first wave of NEVI funding can be distributed before the end of the feder al fiscal year on September 30th.
30 FHWA SET TO OPEN FIRST ROUND OF EV INFRASTRUCTURE IN STALLATION
TIME FOR CONGRESS TO PASS CREDIT CARD SWIPE FEE SenateREFORM!Majority Whip Dick Durbin (DIL) and Senator Roger Marshall (R-KS) introduced the bipartisan “The Credit Card Competition Act,” (S.4674) which would ensure retailer choice in pay ment routing by requiring at least two unaffiliated processors on credit cards, the same process that is used for debit card transactions. Swipe fees remain the second highest operating cost for convenience stores which costs the industry $138 billion.
“With the rising rate of inflation and its impact on motor fuel prices, it’s time for Congress to pass credit card swipe fee reform to reduce costs for small business energy marketers,” said EMA President Rob Underwood.
EMA is a member of the Merchants Payments Coalition (MPC), which rep resents retailers, supermarkets, restau rants, drug stores, convenience stores, gas stations, online merchants, and other businesses focused on reforming the U.S. payments system to make it more transparent and competitive.
FUELIOWA // www.FUELIowa.com 31 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. The IRA - a climate, health, and tax-fo cused reconciliation package - does not impose new taxes on small busi nesses (such as the proposed 3.8% tax on business income) and does not raise individual, corporate, capital gains rates, or change step up in basis. The main cost of the bill is $360 billion for clean and traditional energy develop ment. Republicans offered a number of amendments during the debate on the bill, all of which were rejected except an amendment from Senate Minority Whip John Thune (R-SD) that provides an exemption from the corpo rate minimum tax for certain subsidiar ies of private equity firms. The original IRA language had a $1 billion thresh old; Sen. Thune’s amendment clarifies that certain subsidiaries of billion dollar firms would not be required to pay the book Provisionstax. regarding electric vehicles (EVs) remain unchanged from the original version. Broadly speaking, the legislation allows for up to $7,500 for consumer tax credits, but only if the ve hicle meets certain domestic content restrictions and is under $55,000 for se dans and $80,000 for pickups and SUVs. There are also new income ceilings to access the credit -- $300,000 for joint filers and $150,000 for individual filers. Despite insistence from EMA, the Em pire State Energy Association, National Energy & Fuels Institute, and the New York State Energy Coalition, the IRA failed to include heating fuels as eligi ble for the clean fuel production tax credit. The IRA does include favorable tax credit treatment for sustainable avi ation fuel (SAF). EMA argued against this provision as it would disrupt and significantly reduce the market for on and off-road biodiesel and renewable diesel by diverting limited feedstocks to Overall,SAF. the tax implications included in the bill will have minimal effect on small business and energy marketers. The House is expected to return to Wash ington, DC, Friday to pass the bill and send it to President Biden’s desk.
of Transportation’s Federal Motor Carrier Safety Adminis tration (FMCSA) is awarding more than $44 million in grants designed to make the process to obtain a Commercial Driver’s License (CDL) more efficient.
EMA plans to discuss streamlining the hazardous material endorsement train ing and testing process to increase the number of CDL drivers qualified to haul petroleum products. EMA is asking for the creation of a new hazardous ma terial training and testing module that focusses solely on petroleum products. The streamlined training and testing process will require a new hazardous material endorsement (“P” in place of the current “H”) that restricts driver qualification to petroleum products.
U.S. DOT PROVIDES STATES WITH $44 MILLION TO SPEED TheLICENSINGCDLU.S.Department
The funding is part of the administra tion’s Trucking Action Plan (TAP) au thorized last year under the Bipartisan Infrastructure L-aw. Under TAP, states will be able to improve their CDL pro grams by reducing wait times, ensuring conviction and disqualification data is electronically exchanged and imple menting regulatory requirements. Ear lier this year, the U.S. DOT provided $56 million in grants to states to kick start the drive for speedier CDL processing. According to the DOT, this resulted in a 112 percent increase in CDL processing in January and February 2022 com pared to January and February 2021.
EMA believes the module approach will likely result in a higher pass rate while removing cost and time disin centives that discourage drivers from initially pursuing an H endorsement or retaking the test after failing. The licensing restriction would also increase the pool of qualified drivers available to the petroleum industry and increase driver retention as well.
32
MANAGEMENTRISK
To estimate your following distance:
By Risk Improvement Department, EMC Insurance Companies, Des Moines, Iowa
So that same 40’ tanker should allow five seconds of following dis tance when traveling at highway Thisspeed.isa good rule of thumb to fol low when you’re driving during the day and the weather is fine. If con ditions become more challenging, making it harder for you to see or increasing your stopping distance, you should add even more time to your following distance. Consider adding additional seconds when you encounter:
• Take note of your count when your vehicle reaches the stationary object. That is your current follow ing distance. How Much is Enough?
Give ‘Em Some Space
• Select a stationary object near the road ahead of you. Trees, fire hydrants, traffic signs or bridges are all good choices.
Some of your drivers may have learned a “three-second rule” (or even a two-second rule) when they were young drivers’ education stu dents. Three seconds of following
Rear end collisions are one of the most common causes of auto claims for all vehicle fleets, in cluding marketers.petroleum
distance is a good start for drivers of lightweight passenger cars, but when you’re operating a large, heavy vehicle with a long stopping distance and a shifting liquid load, it’s a good idea to give yourself an even larger cushion of space.
• When the rear end of the leading vehicle passes your chosen object, begin counting—“one-one thou sand, two-one thousand, three-one thousand, etc.”
Many trucking resources, including the Federal Motor Carrier Safety Administration (FMCSA), suggest you allow one second of space for each 10 feet of vehicle length at speeds below 40 miles per hour.
If your tanker is 40’ in length, your following distance at low speeds should be four seconds. When speeds move above 40 mph, you should add an additional second.
If you take away one thing from this article, let it be this: maintaining an adequate following distance is likely the most important thing your drivers can do to prevent rear end Followingcollisions. distance is the space a driver keeps between their own vehicle and the vehicle ahead. By maintaining this buffer of empty space, as opposed to following im mediately behind the lead vehicle, drivers increase the time they have to react to unexpected events and obstacles in the roadway ahead. How to FollowingCalculateDistance
• Wet or slippery roads
• Avoid distractions: Cell phones and other mobile electronic devic es are the primary culprits here
Driver-Controlled Factors Beyond following distance, there are several additional ways drivers can help prevent rear end colli •sions.Maintain situational awareness: Be aware of traffic around your vehicle, especially smaller vehicles that travel faster than large trucks and might not give you enough space for safe turns, lane changes and stops
• Keep your cool: Professional drivers need to keep up their safe behaviors even when driving in frustrating conditions
Collision Avoidance Systems: The Future of Safety? Collision avoidance systems, com puterized systems that sense on coming collisions and either warn the driver or activate the brakes to slow the vehicle, are moving into the mainstream and for good Areason.study by the National Highway Transportation Administration fol lowed 150 tractor-trailers equipped with collision avoidance systems. Over the course of a year, rear end crashes were reduced by 87%. Refinements to the technology will almost certainly make collision avoidance systems even more effective, while increased competi tion in the market will help to make them more affordable.
• Don’t drive while impaired: Driv ers should not operate company vehicles while under the influence of alcohol or while using drugs or certain types of medications; fa tigue and drowsy driving also slow a driver’s reaction time
FUELIOWA // www.FUELIowa.com 33 • Reduced visibility due to dark ness, precipitation, sun glare or fog • A frequently stopping vehicle such as a garbage truck or delivery •vanOversized vehicles that obstruct your view of the road ahead
The FMCSA suggests doubling your standard following distance in ad verse conditions.
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