FUELIowa Magazine: July/August 2023

THE VOICE AND RESOURCE FOR IOWA’S FUEL

INDUSTRY

PRESIDENT'S PERSPECTIVE pg. 3

USDA LAUNCHES NEW PROGRAM pg. 4

FUELIOWA GOLF BENEFIT FOR CAMP COURAGEOUS p. 8

VOLUME 76, NO.4 2023 JUL / AUG

PRESIDENT’S PERSPECTIVE

LETTER FROM THE PRESIDENT & CEO

The 2024 Iowa Legislative Session will be here in five months, and preparing the FUELIowa legislative priorities during the interim period is the highest priority.

FUELIowa has initiated a Task Force structure designed to engage the board and membership through targeted advocacy in articulating and aligning key issues of importance and impact to the growth and sustainability of the association.

Presently, there are three task forces working to enhance and project FUELIowa’s advocacy goals. The Fuels Task Force is the leading voice on fuel issues impacting the FUELIowa membership and charged with the primary responsibility of recommending policy and legislative recommendations to the board.

The Lottery and Alcohol Beverage Division Task Forces are focused on “inside the store” challenges impacting profitability and sustainable growth. The Lottery Task Force is the following: Training and training support, vending machines and kiosks, commissions, lottery sales, managing new price points.

The Alcohol Beverage Task Force goal are to build a working relationship with the ABD administrator and staff, develop policy and procedures to strengthen marketing and to enhance store productivity and customer experience. Emphasis will focus on a general overview of statutory and administrative issues impacting the Iowa convenience store industry. It is critical to have a viable advocacy program due to complex nature of the fuels industry.

The intricate and varied aspects of providing high-quality, cost-efficient products to Iowa consumers is often misunderstood and misrepresented. An effective advocacy program is essential to ensuring the interests of the Iowa retail fuel distribution system is not disrupted or negatively impacted by regulatory and legislative policies.

Equally important is the persistent need by FUELIowa to speak directly with local legislators and administrative policy professionals on the importance of the Iowa retail fuel industry and its distribution network.

The importance of effective advocacy is critical to sustaining Iowa’s retail fuel industry.

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

USDA Launches New Program Targeting Biofuel Infrastructure Investment For Retail Gas Stations

By John Maynes, Director of Government and Regulatory Affairs, FUELIowa

On July 10, the United States Department of Agriculture (USDA) launched their latest version of the High Blend Infrastructure Investment Program (HBIIP) targeting biofuel infrastructure investment at retail gas stations. This latest round of HBIIP funding could be considered version 3.0, with version 1.0 and 2.0 producing mixed results among retailers.

Although the previous rounds of HBIIP funding produced mixed results, USDA deserves credit for receiving feedback from industry members like FUELIowa on behalf of small business owners. USDA has listened to industry’s concerns regarding the barriers to accessing the grant program faced by small businesses and looked to address those concerns where they can. After reviewing HBIIP version 3.0, I’m confident in stating that this round of HBIIP Funding will be the most lucrative and most accessible version of the program to date.

Late in the calendar year 2022, Congress passed the Inflation Reduction Act. Although the Inflation Reduction Act was a mixed bag for fuel industry

members, included in the final version of the bill which achieved passage was an appropriation of $500 million to USDA to expand access to high blend biofuel products like E15, E85, and biodiesel blends containing a minimum of 6 percent by volume biodiesel.

Over the course of the next five calendar year quarters, USDA will release $450 million in federal grants to support the expansion of biofuels through dedicated infrastructure investment grants. $68.5 million of the $90 million released each quarter will be available to fuel retailers operating traditional brick-and-mortar gas stations throughout the United States. Like the previous versions of HBIIP, applicants applying for project funding will compete with each other for grants through a competitive grant process. The good news for FUELIowa members is that states west of the Mississippi will be awarded a preference point in USDA’s scoring process.

Additional good news for FUELIowa’s small business gas station owners is that owners operating 10 or fewer locations will compete amongst one another for grant program funding. In a competitive grant environment, having small business gas stations competing against other small businesses was something FUELIowa advocated for with USDA.

More good news for small business gas station owners comes in the

form of new cost share parameters. In place of using a project’s total cost as the baseline for eligible grant funding, USDA uses capped costs for components to guide an applicant’s eligibility for funding. Under previous versions of HBIIP, applicants were eligible to receive grant funding equivalent to 50 percent of the capped costs set by USDA for dispensers and 25 percent of the capped costs set by USDA for tanks.

Under HBIIP version 3.0, owners operating 10 or fewer gas stations will see their cost-share increased to 75 percent for both dispensers and underground storage tanks. Owners who fall outside of this category will be eligible for a 50 percent cost-share opportunity for both dispensers and tanks. The per component cost caps set by USDA were also increased for this version of HBIIP. USDA deserves credit for their willingness to dig into real the cost associated with upgrading retail fueling infrastructure and continued impact of inflation on equipment prices. E15 dispensers are allotted a capped cost of $50,000 per dispenser; E85 dispensers are allotted a capped cost of $63,000; and underground storage tanks are allotted a capped cost of $168,000.

FUELIowa members projecting their anticipated monetary award from USDA need to be mindful of how Iowa’s recently passed mandate on E15 and mandate on the installation of E85 compatible equipment for the sale of E15

impacts their eligibility under the USDA HBIIP program. For USDA’s program, your cost cap is determined by the product you intend to sell. In Iowa, although you are required to install E85 compatible equipment to facilitate the sale of E15, you will not be eligible for the higher capped cost on the equipment unless you are actually selling E85 through the equipment. This is something to consider as you look to maximize the opportunity for assistance through the USDA program.

Applying the cost caps available from USDA, an applicant seeking to replace four dispensers and one underground storage tank to facilitate the sale of E15 would be eligible to receive up to $37,500 per dispenser and $126,000 for the installation of the storage tank and all associated underground components. In total, a project of this scope would be eligible to receive up to $276,000.

Although E85 has been heavily subsidized throughout the years and failed to curry favor with consumers, finding room for it at your location raises your cost caps, the ceiling on your potential award, and provides preference within the competitive review of applications. Comparatively speaking, a project involving four dispensers and an underground tank where E15 and E85 are intended to be sold would be eligible to receive up to $315,000 assuming all per component capped costs are met.

to E15 E85 B6-B20

In past versions of HBIIP, timing has been an impediment preventing many small businesses from accessing the HBIIP program.

While the application process remains labor intensive, USDA has adjusted the application process and timeline for completed work which should help small business owners access the grant program. Like past HBIIP windows, USDA is seeking to fund new projects and applicants should not start any construction on their site until after they receive a commitment for funding from USDA. Concerns over securing equipment and contractors following a commitment from USDA have also been lessened by USDA’s leniency allowing for a project completed with the assistance of a grant up to three years to be completed.

Another big change in this round of HBIIP is the application window. As stated previously, USDA will release approximately $68 million per quarter for the next five quarters in funds eligible to be used for the advancement of retail fueling infrastructure. While the first quarter application window will be difficult to meet, applicants submitting a completed application will see their application rollover into subsequent quarters and remain eligible for review.

Although USDA has made significant changes for the betterment of the program and to ensure access to the grant funds for all businesses, the application process, namely securing the requisite government access codes remains a major challenge. The

good news is that there are some best practices you can follow to help you through the process and resources are available to you to aid in that effort.

Step one is getting started. This process is time consuming and getting started early is key. With five rounds of funding being released, you will want to ensure your application is eligible across as many funding windows as possible. The USDA HBIIP site is a good resource for getting started. URL’s are not particularly helpful in print form but I’m including it anyway https://www.rd.usda. gov/HBIIP. Contact me and I can walk you through the website if you’d like.

Once you access the USDA HBIIP landing page and have a chance to review their documentation on how to apply, you will want to begin the process of registering your entity at www.sam.gov (avoid www. sams.gov) . This process can take considerable time and getting started early is your only remedy. Once your registration through sam.gov is complete, you will receive a Unique Entity Identifier (UEI) and expiration date. Both are necessary to complete an application and have been pain points for past applicants. I can’t stress enough getting started with the registration process early.

While you wait for your Unique Entity Identifier, you can spend time securing bids from contractors and familiarizing yourself with the application process. The application will not

be accessible to you until you receive your UEI. Unfortunately, USDA’s HBIIP program does not provide small businesses with access to grant writers for assistance with the application process. However, there are contacts within the industry who can assist with questions, provide guidance, and even troubleshoot when necessary. Once again, call me and I can connect you with people in the know.

In addition to these industry resources, Jeff Carpenter is the program lead for USDA on their HBIIP program. Jeff is very knowledgeable about the program and has assisted numerous applicants with various parts of the application process. Last, I am available to assist in any way I can, including putting you in touch with the people who understand the HBIIP process and can guide you to a successful application. As always, I am here to assist, and I encourage you to take a hard look at USDA’s HBIIP program as you look to invest in your business.

FUELIowa Hosts Successful Golf Benefit for Camp Courageous

By Sarah Bowman, Communications Director , FUELIowa

FUELIowa hosted a successful golf outing for Camp Courageous at Finkbine Golf Course in Iowa City on June 19th. The event was a huge success, raising over $25,000 to support Camp Courageous' mission of providing year-round recreational opportunities for individuals with special needs.

The success of this benefit is a testament to the generosity and compassion of FUELIowa members and their commitment to making a meaningful difference in the lives of those with special needs. FUELIowa has been supporting this wonderful cause for 42 years and looks forward to continuing their partnership with Camp Courageous in the future.

Camp Courageous is a non-profit organization that enhances the quality of life for individuals with disabilities by providing a safe, fun, and inclusive environment where they can participate in various recreational activities such as camping, fishing, swimming, and more. The organization plays an important role in the lives of these individuals, and the funds raised by FUELIowa will help ensure that they

continue to receive the resources and support they need to lead happy and fulfilling lives.

The weather couldn’t have been better, and the event saw its highest attendance to date. Attendees were treated to a surprise visit from members of the University of Iowa Hawkeyes Football team and coaching staff. During their visit, the players shared their stories of camp, and how it is usually reserved for Seniors to visit the camp. This visit by the football players was a highlight of the event and a testament to the impact that Camp Courageous has had on the community…even for the volunteers.

Congratulations to the Jet Gas team of Jim Becker, Larry Bentler, Jim Mulgrew and Randy Woodard who won the traveling trophy with a score of 59!

Charlie Becker, CEO of Camp Courageous said, “What an incredible day! Can’t thank the FUELIowa team enough for your incredible outpouring of work and support of the Golf Benefit for Camp Courageous…You are SUPER! I met so many new and old friends. You have a lot to be proud of with your members, vendors, and sponsors.”

We are looking forward to next year, be sure to save the date for Monday, June 10, 2024 at Finkbine!

FUELIowa is grateful to everyone who contributed to this important cause. Together, we can make a difference in the lives of individuals with special needs and help them to achieve their full potential…and Together We FUELIowa.

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 Hosts SUMMERFEST in Okoboji: The Perfect Summer Event for a Good Cause

By Sarah Bowman, Communications Director , FUELIowa

Summer in Iowa is known for warm temperatures, green landscapes, and, of course, SUMMERFESTFUELIowa’s fundraising event in Okoboji. The event was a hit, attracting members from all over the state while raising money for the Political Action Committee (PAC) of FUELIowa.

SUMMERFEST took place on August 3-4, giving participants plenty of time to soak up the summer vibes. FUELIowa changed the Annual Meeting from January to August this year, and kicked off the SUMMERFEST event. FUELIowa President and CEO Ronald N. Langston presented a State of the Association to the FUELIowa members. Reo Menning, President of RINAlliance presented the Shareholder’s report, and Gary Koerner updated members on HealthAlliance. Bryan Bandstra, Chairman of the HealthAlliance Board of Trustees (2015-2023) was recognized for his years of service and wished well in his upcoming retirement. Closing out the Annual Meeting, FUELIowa Chairman Joe Zietlow, Ronald Langston, and members of the FUELIowa Executive Committee fielded questions from the membership.

Following the Annual Meeting, members enjoyed dinner (steak or scallops) at Bridges Bay Resort. Comedian Willie Farrell entertained members, bringing his unique brand of humor to the event.

The main highlight of the evening was the bags tournament, which had both casual and competitive players, and saw dozens of teams participate. The annual silent auction was held at the same time, and helped raise an additional $9,000 for the FUELIowa PAC.

The following day, the annual SUMMERFEST Golf Event took place at the Brooks Golf Course, which saw participants enjoy a fun round of golf while raising more money for the cause. Congratulations to the MAST ATM team for taking home the trophy!

According to Langston, “SUMMERFEST is the most significant fundraising event for the FUELIowa PAC. The PAC's main focus is on advocating for legislative and regulatory issues affecting the liquid fuel industry in Iowa. The funds raised from SUMMERFEST will be used to support these advocacy efforts and further advance the industry.”

As Langston explains, "Events like SUMMERFEST remind us of the strength and resilience of our industry and its ability to come together in support of important causes."

Mark your calendars for next year's SUMMERFEST (August 1-2, 2024) and be part of this amazing industry event, because TOGETHER, WE FUEL IOWA.

Senator Grassley Joins FUELIowa Board to Discuss Infrastructure and Renewable Fuels

By Sarah Bowman, Communications Director , FUELIowa

FUELIowa and its board of directors have been advocating for changes to state and federal regulations and targeted infrastructure investment funding they believe are holding back the growth of biofuels. During his address to the board, Senator Grassley spoke about his efforts to push for greater support for renewable fuel infrastructure funding in Congress. He highlighted the importance of the biofuels industry for Iowa's economy and its potential to reduce greenhouse gas emissions while simultaneously highlight the role gas station owners play in bringing renewable fuels to market.

Following the meeting, FUELIowa President and CEO Ronald N. Langston expressed his gratitude to Senator Grassley for taking the time to address the board. "Senator Grassley has always been a staunch advocate for the fuel industry in Iowa, and we appreciate his ongoing support," Langston said. "We look forward to continuing to work with him to ensure our industry can thrive in the years to come."

By bringing together industry leaders and policymakers, the organization continues to play a vital role in advocating for the interests of Iowa's retail fuel industry. #Together We FUELIowa

FUELIowa had the honor of hosting Iowa United States Senator Chuck Grassley for their board of directors meeting last week in Okoboji, Iowa. The meeting provided an opportunity for Senator Grassley to speak to the board about current National policy issues impacting Iowa’s fuel industry. Iowa’s fuel industry members have been pioneers and champions for the marketing and sale of renewable fuels. However, recent state policy decisions mandating the installation of infrastructure compatible with E15 have led to grave concerns about the impact on the small business owners comprising Iowa’s rural fuel distribution network.

Senator Grassley also took questions from board members about credit card swipe fee legislation aimed toward easing the pain swipe fees inflict on convenience store owners. As one of the longest-serving senators in Congress, Senator Grassley's insights into policymaking were invaluable for the board. His willingness to listen to their concerns and commitment to work towards solutions demonstrates his pledge to listening to the retail fuel industry and representing the people of Iowa.

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FUELIOWA MEMBERS IN THE NEWS

Welcome New Member! Western Oil, fueling customers journey with locations in NE & IA

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Otter Creek Country Store, Hiawatha, IA was recognized as one of the fastest growing companies in the Iowa City/ Cedar Rapids area by the Corridor Business Journal.

Jim Ewing.

Your membership & support is critical to our one voice being heard at the statehouse and enables our tremendous regulatory consulting & members only service programs. Together, we FUELIowa.

NEW Cooperative Foundation continues donations to local 4-H clubs

Source: Globe Gazette

The NEW Cooperative Foundation is continuing its ongoing commitment to supporting local 4-H youth. Recently, the Foundation donated $52,020 to 22 county extension and outreach offices, which will support 3,468 individual 4-H members.

FUELIowa Dues Invoices Mailed

The contribution from the Foundation will pay for half of each 4-H member’s dues in NEW Cooperative’s trade territory counties. That includes Calhoun, Carroll, Cerro Gordo, Cherokee, Clay, Crawford, Dickinson, Emmet, Greene, Franklin, Hamilton, Hancock, Humboldt, Kossuth, Monona, Palo Alto, Plymouth, Pocahontas, Sac, Webster, Woodbury, and Wright Counties.

FUELIowa annual dues invoices have been mailed. Even with high inflation, we're pleased that FUELIowa did not raise dues again this year.

Please check your mailbox for your annual dues renewal invoice and provide payment using the selfaddressed return envelope. If you have any questions, please contact

“NEW Cooperative takes great pride in supporting our area youth 4-H programs,” NEW Cooperative Communications Director Gary Moritz said. “We strongly believe that 4-H helps youth develop practical knowledge while empowering them with the skills to lead for a lifetime.”

NEW Cooperative, Inc. is a farmerowned grain, agronomy, energy and feed cooperative headquartered

in Fort Dodge, Iowa. As a leading agriculture retailer, NEW Cooperative is focused on being an innovative and efficient provider of today’s agriculture markets and services to 8,000 members throughout its 60 locations in Iowa.

The combined 38 Casey’s affiliated stores give the company a larger footprint in the Kansas City market; though, there are still considerably fewer storefronts than rival QuikTrip. QuikTrip, based in Tulsa, Oklahoma, maintains a total of roughly 97 stores in the Kansas City market, with approximately 61 stores on the Missouri side and approximately 36 stores on the Kansas side.

Sinclair

Adds New Payment Option

for Fleet Drivers Source: Convenience Store News

Source: Convenience Store News

Car IQ Pay will be accepted across more than 30 states.

help our fleet customers facilitate payments by eliminating the use of credit cards. This is a natural expansion on the success we have achieved with the deployment of Sinclair's DINOPAY Mobile Payment App, through our partnership with P97 Networks."

Car IQ Pay is accepted at more than 25,000 fuel station brands nationwide and offers fleets advanced payment technology to pay for fuel and services. Vehicles are able to transact securely with payment networks, banks and service providers in order to automatically initiate and complete payments for services ranging from fueling, toll management and paid parking to electric vehicle charging and more.

Source: Globe Gazette

KANSAS CITY, Mo. — Convenience store chain Casey’s says it’s expanding in the greater Kansas City market through the purchase of 26 Minit Mart stores.

Earlier this year, the Des Moines, Iowa-area-based company purchased 26 Minit Mart locations in the Kansas City area.

A spokesperson said that while plans are still in development for the former Minit Mart locations, the company, which already had 12 locations across Kansas City, says the newly acquired stores should satisfy the cravings of existing Casey’s fans. The spokesperson said the company is focused on markets such as Kansas City, Oklahoma City, Omaha and Knoxville, Tennessee, as part of its current growth plan.

DALLAS — HF Sinclair Refining & Marketing LLC, a subsidiary of HF Sinclair, is giving fleet drivers a new payment option through its partnership with vehicle payment solutions provider Car IQ Inc.

Now, Car IQ Pay is accepted at 1,600 Sinclair branded stations across more than 30 states. The Car IQ Pay platform connects the vehicle directly to the pump and eliminates the need to use a credit card, PIN number or vehicle odometer reading.

"Sinclair is committed to offering our customers the latest technology to manage and pay for fueling," said Doug Lawes, manager, payments and technical solutions, HF Sinclair. "Partnering with Car IQ allows us to

"The addition of Sinclair not only brings more locations, but also the Sinclair brand to Car IQ Pay, which our fleet customers have been asking for," said Matt Nicholson, senior vice president, merchant commercialization at Car IQ. "Automating and simplifying the payment process for our fleet customers helps them streamline their accounting process and eliminate costly time and errors."

Sinclair first partnered with P97 Networks in 2014. P97 Networks is a leading connected commerce, mobile payments and mobility services provider for the convenience retail, fuels marketing and automotive industry.

"P97 Networks is dedicated to providing innovative digital experiences for everyone, and this partnership is accelerating the future of convenient and effortless fuel payments," said

Casey’s convenience store expands footprint in Kansas City market

Don Frieden, president and CEO of P97 Networks. "Providing fleet customers, a more secure and efficient way to do business with retailers makes the interactions for all parties run seamlessly."

Headquartered in Dallas, HF Sinclair is an independent energy company that produces and markets high value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah, and markets its refined products primarily in the Southwest United States, the Rocky Mountains extending into the Pacific Northwest, and in other neighboring Plains states. HF Sinclair supplies fuels to more than 1,300 Sinclair branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country.

In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands and export products to more than 80 countries. Through its subsidiaries, HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in Artesia, N.M. HF Sinclair also owns a 47 percent limited partner interest and noneconomic general partner interest in Holly Energy Partners LP, a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HF Sinclair subsidiaries.

Sinclair, an HF Sinclair brand, is one of the oldest continuous brands in the energy business. Recognized for its iconic dinosaur, Sinclair has more than 1,600 independent branded and licensed stations, featuring DINOCARE TOP TIER gasoline.

Governor Reynolds Statement on Iowa & Nebraska Suing the EPA

Monday, August 7, 2023

Gov. Kim Reynolds released the following statement today in response to Iowa and Nebraska bringing a lawsuit against the U.S. Environmental Protection Agency for its failure to issue final rules on E15, which would pave the way for year -round E15 access. Final rules were required to have been issued by July 2022.

“The EPA’s ongoing failure to act following our E15 notification more than two years ago is nothing more t han a thinly veiled disguise of their disdain towards clean, renewable, Americanproduced ethanol. The EPA disfavors anything that doesn’t have the word 'electric' in its name.

“American energy independence, including Iowa’s renewable energies, should be the goal of any presidential administration - especially when it saves Americans money at the gas tank. I applaud Attorney General Bird for bringing this lawsuit holding the federal government accountable. Enough is enough.”

Current regulations promulgated under the Clean Air Act apply a more stringent RVP limitation on E15 than on gasoline blended with 10 percent ethanol during the high ozone season from June 1 to September 15. This prevents access to E15 during the peak -driving summer months unless a wai ver can be obtained.

INSIDE THE BELTWAY

ENERGY MARKETERS OF AMERICA

The coalition, led by Naig, also includes the elected commissioners from Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, North Dakota, South Carolina, Texas, and West Virginia, according to a Department of Agriculture news release. They highlighted their concerns in a joint letter to EPA Administrator Michael Regan.

Gov. Reynolds Statement on EPA Announcing RFS 2023-2025

Gov. Kim Reynolds released the following statement in response to the Environmental Protection Agency announcing the RFS volumes for 2023 through 2025:

“At a time when American energy and national security is threatened, it’s disappointing to see the Biden Administration continue its assault on home grown, American energy production. Biofuels can play a key role in fighting off this energy crisis and provide millions of Americans with cheaper, cleaner burning fuel.”

Ag Leaders Raise Concerns about RFS Volumes Source: Iowa Farmer

Today

DES MOINES — Iowa Secretary of Agriculture Mike Naig and 10 other elected Commissioners of Agriculture from around the country recently raised concerns with the Environmental Protection Agency about the biomassbased diesel volumes in the proposed Renewable Fuel Standard rulemaking for 2023 through 2025.

“Since its inception, the RFS has uplifted the agriculture economy and rural communities across the U.S. and has stimulated critical growth in biofuel markets, diversifying our available supply of critical liquid transportation fuels that drive our nation’s economic success,” wrote the coalition.

“However, EPA’s proposed rule fails to consider the key investments that our farmers and biofuel producers have made in recent years and ignores the historic level of biofuel and feedstock processing capacity expansion that is planned and underway, thereby restricting the opportunity for clean, homegrown biofuels to meet our nation’s energy independence and carbon reduction goals.”

A summary of concerns raised by the coalition included the following:

While the U.S. is expecting to see more than 5 billion gallons of renewable diesel come online by 2025, the EPA’s proposed biomass-based diesel (BBD) volumes are significantly lower than current production and usage levels of biodiesel and renewable diesel. If this rule is finalized, it will hurt future advancements in feedstock and biofuel production as well as reduce supply in the diesel market.

While conventional biofuel levels in the proposed rule appear to be sufficient in and of themselves, there is great concern over the potential cannibalization that could occur in this category due to the woefully inadequate BBD levels. Higher ethanol blends such as E15 and E85 provide consumer savings at the pump and emission reductions for the air, and the RFS should be harnessed to accelerate — not hinder — the use and availability of these homegrown, lower carbon fuel choices.

In its final rule, the EPA is strongly encouraged to increase the proposed volumes for BBD — along with corresponding increases to the total advanced biofuel and total renewable fuel obligation levels — to account for the significant growth in investments and production capacity in the renewable diesel and biodiesel space.

Without considering the increases in newly available feedstocks, crush capacity and biofuel production, the EPA will be hurting investments and impacting supply of critical fuels in the diesel market. Biofuels offer the most immediate and affordable path to both reducing greenhouse gas emissions and enhancing U.S. energy security.

The EPA and Biden Administration are expected to finalize and announce the RFS volumes later this year.

U.S. Oil and U.S. Gain Combine to Form U.S. Energy™

U.S. Oil, a leader in retail, commercial, and wholesale fuel distribution; supply and trading; logistics; and terminal operations of refined products and

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.

renewable fuels, and U.S. Gain, a leader in the development and distribution of alternative fuels and environmental credits, today announced the formation of a combined company: U.S. Energy™. U.S. Energy is a vertically integrated energy solutions provider proficient in refined products, alternative fuels, and environmental credits. Its comprehensive portfolio of assets paired with risk management, financial services, and advisory insights offer customers realistic, executable strategies that satisfy both their economic and environmental goals.

RaceTrac Inks Deal for Gulf Oil

The Atlanta-based company will grow its reach to 40 U.S. states and Puerto Rico.

and U.S. territories, all of Gulf's branded distributor and license agreements, and the exclusive rights to market fuel at Gulf's retail locations along the Massachusetts Turnpike.

This acquisition reflects RaceTrac's ongoing strategy to accelerate growth in its core business activities and drive enhanced operating efficiencies. The combination of Metroplex and Gulf creates a best-in-class fuel network with a leading presence in high-demand markets across the country and adds another renowned consumer-facing brand to RaceTrac's family of companies, the company stated.

RaceTrac's family of companies to nearly 40 states across the continental U.S. and Puerto Rico," said RaceTrac CEO Max McBrayer. "Gulf is a trusted national brand that has been innovating and evolving for over 100 years, combining quality petroleum products with outstanding service. We look forward to continuing to expand the Gulf legacy."

Wells Fargo Securities LLC served as exclusive financial advisor to RaceTrac and Metroplex Energy. Kilpatrick Townsend & Stockton LLP served as legal advisor. Barclays served as exclusive financial advisor to Gulf Oil LP. Latham & Watkins LLP served as its legal advisor.

ATLANTA — RaceTrac Inc. is growing its energy reach through a deal with Gulf Oil LP.

The Atlanta-based company's wholly owned wholesale fuel supply and trading subsidiary, Metroplex Energy, signed a definitive agreement to acquire Gulf Oil LLC.

As part of the transaction, RaceTrac will acquire Gulf's nationally recognized fuel brand across the United States

"The gasoline marketplace is undergoing historic and fundamental change and will continue to evolve rapidly. We are committed to remaining an industry leader and continuing to invest and grow our transportation fuels network," said AJ Siccardi, president of Metroplex Energy. "The combination of Gulf's outstanding distributor network and RaceTrac's history of driving retail fuel volume creates a tremendous opportunity to serve dealers and distributors in a manner that will make their sites successful fueling destinations of the future."

The transaction is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Act, and is expected to be completed within 60 to 90 days. Financial terms are not being disclosed.

"This exciting acquisition continues our history of growth, expanding

RaceTrac Inc. is the 22nd largest privately held company in the United States and has been serving guests since 1934. The organization has nearly 800 retail locations representing the RaceTrac and RaceWay brands in 12 states in the southeast. RaceTrac employs more than 10,200 team members across RaceTrac, RaceWay and affiliated companies Metroplex Energy and Energy Dispatch.

Metroplex Energy sells fuels to all RaceTrac locations, as well as many other leading retailers and fuel wholesalers in 15 states primarily in the southeast. Energy Dispatch employs more than 250 drivers and operates 98 tractor-trailers out of six states, delivering more than 1.2 billion gallons of fuel each year.

Metroplex Energy is an Atlanta-based wholesale fuel supply and trading company that secures bulk fuel to

supply rack sales and delivery of gasoline, diesel and biofuel products by pipeline, rail, truck, barge and vessel.

Gulf is a Wellesley, Mass.-based company with more than 120 years of dedicated service, fuel supply, retail programs and the latest loyalty offerings to its customers and consumers. Gulf fuels consumers through approximately 1,200 Gulf branded locations across the United States and Puerto Rico.

What’s Going On With Credit Card Swipe Fees?

By Jeff Lenard  NACS

Here's why retailers and consumers should care about swipe fees, and what they can do about it.

mousetrap, the world will beat a path to your door. Especially in in the United States of America.

Nope, that’s not how it works with credit card swipe fees.

Every time a payment card is used, retailers are charged a swipe fee. In short, swipe fees, also known as interchange fees, are the 2%–3% that credit card companies charge retailers every time a customer swipes their credit card to make a purchase. Visa and Mastercard set the swipe fees for the thousands of banks that issue their cards—and consumers foot the bill.

Here’s how it works: If you have a $50 fill-up at the pump, likely more than a dollar of that can be chalked up to swipe fees. If you’re a typical driver, you fill your gas tank at a convenience store about 50 times a year, which means you’re likely paying at least $50 annually in swipe fees at the pump alone. If you buy $100 worth of groceries, about $2.25 of what you pay could be taken in swipe fees. Now apply that to every other item you pay for with your credit card.

no competition there is no need to use prices to attract customers. Instead, the fees just increase.

The banks that control the credit card market want to tell you the system works perfectly. But they also told you that mortgages were the safest investments before the 2008 financial crisis. They said things were fine again, right before the 2022-23 banking crisis. They also say that gas stations are the reason for debit holds when in fact banks are responsible for those holds on your card at the pump.

Banks also say that high swipe fees are the only way to ensure security. But they can’t explain why swipe fees are higher in the United States than every other developed country. And if fees are lower everywhere else, wouldn't that mean that they are less secure? Of course not. They want to tell you anything that might distract you from the problem that costs the average American family more than $1,000 a year. They must think, to quote the auto mechanic from Vacation, “You musta got manure for your brains.”

In the 1983 movie National Lampoon’s Vacation, Clark Griswold takes the ‘Family Truckster’ to the only auto repair shop in town for emergency repairs after an offroad misadventure. He asks the mechanic, “What’s the bill?” The mechanic replies, menacingly, “How much you got?”

That scene pretty much describes the current credit card market. There is no competition, so there is no reason to compete on price. You pay what Visa and Mastercard say you will pay—and they are fighting to keep it that way.

Wait, what? No competition, comrade? I thought, as the saying goes, that if you build a better

It gets worse with inflation recently hitting 40-year highs. Swipe fees are a percentage of the total price, so when inflation spikes, so do swipe fees. When card usage increases, swipe fees take a bigger bite out of your wallet. Swipe fees have more than doubled over the past decade and now top $160 billion annually. By comparison, they were only $16 billion in 2001. Plug that through an online inflation calculator and that $16 billion in in 2001 is $28 billion in 2023 dollars. Yet, swipe fees today are $160 billion.

Now you may be asking, “How is this possible? Haven’t massive advances in technology greatly enhanced efficiencies and led to reduced costs?” Of course they have, but when there is

Retailers have no effective tools to manage credit card swipe fees. But you do see some fuel retailers offer a discount if you pay by cash. Or some small businesses have handmade signs asking you to consider paying by cash. However, Visa and Mastercard’s operating rules actually make these discounts difficult to offer. If you don’t believe me, take a look at Visa’s operating rules, but be sure to set aside some time because they’re 891 pages. It would take you less time to read “A Game of Thrones.”

Support is growing to change this broken system and introduce competition. In June, legislation addressing swipe fees was introduced in both the U.S. Senate and U.S. House of Representatives, which is identical to

a 2022 bill authored by U.S. Sens. Roger Marshall (R-KS) and Richard Durbin (D-IL). Like last year, the 2023 legislation has bipartisan support. Let me repeat that—in this day and age, the bill has bipartisan support.

The Credit Card Competition Act of 2023 seeks to enhance competition and choice in the credit card network market, which is currently dominated by the Visa-Mastercard duopoly that controls about 83% of the nearly $5 billion credit card business. In short, the legislation would require banks to put a second network on a credit card, meaning it can’t be just Visa or just Mastercard—they’d have to add a smaller independent network on the card, too. When a credit card is used to pay at a convenience store, the retailer gets to choose which network to route that card transaction through. The networks will compete for the retailer’s business, and as any retailer can attest, competition is always good for the consumer because it drives prices down.

It’s estimated this legislation, if enacted, would save business owners and consumers $11 billion a year. Visa and Mastercard already compete with other networks on debit cards, so we know the same can work on credit cards.

Swipe fees are clearly a problem. They cost the convenience store industry $53 million—a day. Unless you are part of the elite cape and monocle crowd that sets and patrols swipe fees, these fees hurt business owners and U.S. consumers' ability to manage their household budget.

Ask your senators and representatives to support the Credit Card Competition Act of 2023. If one guy with a wrench could fix the Griswold's battered Family Truckster, imagine what we could do if we worked together to fix the broken

credit card swipe fee system.

Court Vacates FDA Deeming Regulations for Premium Cigars

simple tools, such as scissors to cut the tobacco prior to rolling);

5. Has no filter, nontobacco tip, or nontobacco mouthpiece;

6. Does not have a characterizing flavor other than tobacco;

7. Contains only tobacco, water, and vegetable gum with no other ingredients or additives; and

8. Weighs more than 6 pounds per 1,000 units.

Judge Amit Mehta of the U.S. District Court for the District of Columbia issued a ruling that vacates the U.S. Food and Drug Administration’s deeming regulations which pertain to premium cigars. When a court “vacates” a regulation, the regulation is cancelled or declared null and void. This decision was issued in a seven-year long lawsuit filed by the Cigar Association of America, the Premium Cigar Association, and the Cigar Rights of America against the FDA challenging the inclusion of premium cigars in the deeming regulations.

This ruling means that those cigars which meet the definition of a “premium cigar” would not be regulated by the FDA. In this lawsuit, the federal district court relied on a definition of “premium cigar” which requires that a cigar meet all of the following eight criteria:

1. Is wrapped in whole tobacco leaf;

2. Contains a 100 percent leaf tobacco binder;

3. Contains at least 50 percent (of the filler by weight) long filler tobacco (i.e., whole tobacco leaves that run the length of the cigar);

4. Is handmade or hand rolled (i.e., no machinery was used apart from

In July of 2022, Judge Mehta issued a ruling that the FDA’s decision to include premium cigars in the deeming regulations to exert regulatory authority over these products was arbitrary and capricious because the agency failed to consider data submitted to it concerning the use of premium cigars and the health effects of such use. Based on that decision, Judge Mehta needed to decide whether to vacate those portions of the deeming regulation that regulated premium cigars or remand, or send the issue back to the FDA to correct the deficiencies in the provisions of the deeming regulations related to premium cigars.

The decision issued by Judge Mehta yesterday vacated those portions of the rule related to premium cigars in their entirety and did not provide the FDA an opportunity to correct the deeming regulations. The FDA has the right to appeal this latest court decision to the U.S. Circuit Court of Appeals.

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.

RISK MANAGEMENT

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

Duty to Warn: 4 Steps to an Effective Program

storage of propane, as well as how to detect a gas leak

Why Is It Important?

This industry best practice provides protection for your customers and employees and can significantly reduce the risk of propane-related accidents. In addition to possibly saving lives, fulfilling your duty to warn may provide your company with legal protection should a residential or commercial propane accident occur—potentially saving your company a significant amount of money due to costly litigation.

How to Develop a Duty to Warn Program

leak, information about gas detector availability and your company’s emergency contact information.

2. Document the distribution Keep a record of your mailing. Be sure to include the date, a copy of the material sent and a list of customer names and addresses.

3. Make it an annual practice

Propane gas is a hazardous material. As a propane professional, you know that very well. But it’s likely that your customers don’t fully realize the dangers of propane. That’s why “duty to warn’ has become an industry standard.

What Is Duty to Warn?

Duty to warn is a risk mitigation method of propane professionals. Simply put, it is your responsibility to provide your customers with the information they need to recognize and avoid hazards associated with the product you deliver. This includes providing information on the proper use and

An effective duty to warn program with accurate documentation can help protect your customers and build your reputation as a responsible propane dealer. Don’t know where to start or not sure if your current duty to warn program is adequate? Below, we outline the four most important components that every duty to warn program should include.

1. Put it in writing Send your customers information on the hazards of propane. Make sure it includes tips for recognizing a propane leak (scratch and sniff cards are a great way to do this), instructions on how to respond to a

Sending materials on an annual basis helps ensure that all customers are getting the information they need, especially newer customers. For longterm customers, notifying annually provides the repetition that helps make sure the information really “sticks.”

4. Don’t

let commercial clients slip through the cracks

While some of the most memorable propane accidents occur in homes, you need to make sure you don’t neglect your commercial customers. If you deliver bulk propane or propane cylinders to commercial entities, you must send them the same duty to warn materials as your residential customers.

EMC’s Free Duty to Warn Service

EMC Insurance Companies knows effective duty to warn programs are important. In fact, we value them so much that we provide free duty to warn services to policyholders who deliver propane and have an EMC general liability policy. We partner with P3 Propane Safety, a compliance and risk management company that has been servicing the propane industry for more than 17 years, to help our policyholders manage their annual duty to warn mailings. Here’s how the service works:

Get started

If you are an EMC policyholder with a general liability policy, get started by emailing your contact information to dutytowarn@ emcins.com. EMC will pass your information along to P3 Propane Safety.

• Identify customers securely

We know you value your

customers’ privacy. That’s why P3 Propane Safety is contractually obligated to maintain your customers’ privacy. This means that contact information is only used for duty to warn notifications and will never be shared.

• Check and double check

To maximize accuracy and deliverability, P3 Propane Safety runs your customer list against a U.S. Postal Service database to ensure addresses are valid and will be able to receive the mailing.

• Send letters

Validated addresses receive a customized letter about propane safety along with a scratch and sniff brochure that outlines how to identify the signs of a gas leak.

• Recordkeeping made easy

After the mailing is successfully distributed, P3 Propane Safety will provide you with a signed certificate confirming the mailing. P3 Propane Safety also manages all recordkeeping, including who received the duty to warn notifications and when.

• Annual notifications

For your convenience, duty to warn packages are automatically sent annually.

CALENDAR OF EVENTS

JANUARY 9, 2024

LEGISLATIVE CONFERENCE & LEGISLATIVE RECEPTION

Des Moines, Iowa

JANUARY - FEBRUARY, 2024

LEGISLATIVE LUNCH & LEARNS

Dates & Locations TBA

APRIL 15-17, 2024

UMCS CONVENTION

St. Paul, Minnesota

JUNE 10, 2024

FUELIOWA BENEFIT FOR CAMP COURAGEOUS

Iowa City, Iowa

AUGUST 1-2, 2024

SUMMERFEST AND ANNUAL MEETING

Okoboji, Iowa

EPA’S 4TH FUEL WAIVER EXTENDS 15% ETHANOL GASOLINE SALES TO AUG. 29

The U.S. Environmental Protection Agency (EPA) has issued its fourth emergency fuel waiver of the year, effective today, extending sales of gasoline with a 15% ethanol blend another 20 days to Aug. 29 for areas of the country without a Reformulated Gasoline Program. The agency said it intends to continue extending the waiver until the “extreme and unusual fuel supply circumstances” stemming from the war in the Ukraine subside.

“Domestic and international sanctions and public pressure on Russia have significantly disrupted the supply and distribution of purchasable barrels of crude oil and petroleum products in the global market for the U.S. and likeminded countries,” EPA Administrator Michael Regan said in an Aug. 8 letter to governors announcing the waiver extension.

While gasoline prices at the pump this summer are lower than a year ago, they’re still at a high level historically. The $3.807 per-gallon retail price of gasoline on August 1 was about 20 cents lower than the $4.060 per-gallon price on the same day last year, GasBuddy said. The U.S. national average retail price of regular unleaded gasoline spiked to $5.034 per gallon on June 16, 2022, according to GasBuddy, a unit of Alpharetta, Georgia-based PDI Technologies.

By allowing sales of fuel with 15% ethanol during the summer, it could push down regular gasoline prices, according to Geoff Cooper, president and chief executive officer at the Renewable Fuels Association in Washington, D.C. and Ellisville, Missouri.

“Common sense tells you if you blend more ethanol, the effect is going to be to reduce the finished price of that gasoline that’s delivered to retail. That’s exactly why EPA issued those emergency waivers – to allow E15 to continue to be sold this summer and they did the same thing last summer. Gas prices are pretty high,” Cooper said. The wholesale price difference between a gallon of denatured fuel ethanol, containing 98% ethanol/2% denaturant, is 60 cents to 70 cents lower than a gallon of ethanol-free

100% gasoline, he said.

The $3.807 per-gallon retail price of gasoline on August 1 is about 20 cents lower than $4.060 on Aug. 1, 2022, GasBuddy said. The U.S. national average retail price of regular unleaded gasoline spiked to $5.034 per gallon on June 16, 2022, according to GasBuddy.

U.S. benchmark crude oil prices rose to their highest price of the year Wednesday, reaching $84.40, or about 25% higher than June 27 and the highest level since Nov. 16, The Wall Street Journal reported Thursday.

GasBuddy on Thursday reported this week’s U.S. overall gasoline inventories at 216.4 million barrels, down 1.8% from August 2022 and about 7% below the five-year average for this time of year. Inventories were down in every region except the West Coast, where they were up by 0.1 million barrels, and in the Rockies, where inventory levels were unchanged from a year ago, GasBuddy said.

“Domestic and international sanctions and public pressure on Russia have significantly disrupted the supply and distribution of purchasable barrels of crude oil and petroleum products in the global market for the U.S. and likeminded countries,” Regan said.

At the pump, the average price of gasoline in the U.S. increased 7.8 cents in the last week to $3.79 per gallon, according to GasBuddy, which compiles gas-price data from over 11 million price reports from a base of 150,000 gas stations across the country. The average price of diesel in the U.S. rose 14.9 cents in the last week to $4.14 per gallon, GasBuddy said. A 15% ethanol blend sold at U.S. convenience stores and fuel stations is commonly called Unleaded 88, which has an octane level of 88.

U.S. benchmark crude oil prices rose to their highest price of the year Wednesday, reaching $84.40, or about 25% higher than June 27 and the highest level since Nov. 16, The Wall Street Journal reported Thursday.

GasBuddy on Thursday reported this

week’s U.S. overall gasoline inventories at 216.4 million barrels, down 1.8% from August 2022 and about 7% below the five-year average for this time of year. Inventories were down in every region except the West Coast, where they were up by 0.1 million barrels, and in the Rockies, where inventory levels were unchanged from a year ago, GasBuddy said.

“Domestic and international sanctions and public pressure on Russia have significantly disrupted the supply and distribution of purchasable barrels of crude oil and petroleum products in the global market for the U.S. and likeminded countries,” Regan said.

At the pump, the average price of gasoline in the U.S. increased 7.8 cents in the last week to $3.79 per gallon, according to GasBuddy data. GasBuddy, a unit of Alpharetta, Georgiabased PDI Technologies, compiles gasprice data from over 11 million price reports from a base of 150,000 gas stations across the country. The average price of diesel in the U.S. rose 14.9 cents in the last week to $4.14 per gallon, GasBuddy said. Fuel sold as Unleaded 88 contains 15% ethanol and has an octane rating of 88.

While government regulations prohibit sales of a 15% ethanol-blend fuel during summer months in areas without a Reformulated Gasoline Program, the EPA can overrule this regulation with a waiver to address unusual fuel supply circumstances. The EPA issued the first waiver in April, then extended it in June and again in July. In areas with a Reformulated Gasoline Program, E15 can be sold year round.

With $90 million in new government funds for alternative fuels flowing from the Inflation Reduction Act, rural fuel stations can apply for grants from the Higher Blends Infrastructure Incentive Program, aims to broaden the availability of higher blends of renewable fuels, such as E15 and B20. The goal is to help small, rural companies, such as fueling stations and food-and-fuel retailers, afford the cost of replacing fuel dispensers and tanks through federal grant dollars.

2023 FUELIOWA SP ONS ORS