Issuu

THE VOICE AND RESOURCE FOR IOWA’S FUEL INDUSTRY

Are You Being Taxed Correctly? pg. 4 2022 Legislative Recap p. 8 2021 Fuel Gallons Report pg. 12 Rainbo Oil: Community Powerhouse pg. 14 VOLUME 75, NO.3 2 0 2 2 M AY / J U N

F U E L I O WA // w w w. F U E L I o w a . c o m

ON THE COVER With nearly 500 members spread across all 99 counties in Iowa, FUELIowa members make up the fabric of Iowa’s rural fuel distribution network. FUELIowa members are the necessary link between fuel

FE A TUR E S 3

PRESIDENT’S PERSPECTIVE

STORAGE TANK TAXES

2022 LEGISLATIVE RECAP

suppliers and the end-users throughout the state of Iowa.

IN TH IS IS S UE

10430 New York Ave Suite F Urbandale, IA 50322 p (515) 224-7545 f (515) 224-0502 info@FUELIowa.com www.FUELIowa.com 2

FUEL GALLONS REPORT

RAINBO OIL MEMBER FEATURE

SUMMERFEST

PAC CONTRIBUTIONS

CALENDAR OF EVENTS

DRUG & ALCOHOL TESTING

MEMBER HAPPENINGS

INSIDE THE BELTWAY

RISK MANAGEMENT

PR E S ID ENT ’S PER S P E C TI V E H.F. 2128 – THE FUEL MANDATE: THE INTEGRITY OF OUR EFFORTS On Tuesday, May 17, 2022, H.F. 2128 was signed into law. The signing took place in a rural setting surrounded by farmers, and agricultural interests who expressed their pleasure that the number of retail sites selling E15 in Iowa will now grow from 15% to 71%. This anticipated growth from our perspective, is unattainable without critical infrastructure investments from the State and Federal governments. The perception H.F. 2128 was overwhelmingly supported by the Iowa Legislature ignores the fact our membership and Fuel Coalition partners actively engaged the political process to protect our interests until the final weeks of the legislative session. I am very proud of the Board of Directors and the membership who participated in weekly legislative updates to provide guidance and active engagement with local legislators. I especially applaud the members who gave their time, talent, and treasure to attend regional briefings, contributed to the FUELIowa PAC, and added their collective expertise to challenge the disinformation by our proponents about the cost of compliance and the real time direct impact on small retailers and rural communities. FUELIowa remains committed to assisting our members with the timeline demands imposed by the bill. It is now equally important for FUELIowa to actively engage in the rule making process required by the legislation. Truthfully, we fought against terrible odds, but made our objections known. Despite the overwhelming odds weighted against us, the integrity of our efforts, the dedication to our purpose was outstanding which resulted in essential improvements in the bill. We must keep the lines of communication open and constructive especially during the rule making process to ensure that those who will benefit the most from H.F. 2128, will help support small retailers, especially in rural communities who will be challenged to make investments in their businesses to remain competitive in the market created by this legislation. The challenges to the Iowa retail fuel industry remain, and we will continue to make the business case for good public policy on behalf of our membership, the customers we serve and the economy of Iowa. Thank you.

R NL

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

EXECUTIVE COM M I TTEE Bev Jessen Chair Johnson Oil/ Cylinder Express Battle Creek 712-365-4740 Joseph Zietlow Vice Chair Kwik Trip, Inc La Crosse, WI 608-793-6484

Nicole Johnson Treasurer Molo Companies Dubuque 563-557-5714

Doug Coziahr Immediate Past Chair Nebraska-Iowa Supply Company Omaha 402-393-8350

Ronald N. Langston, President & CEO

BO A RD O F D I RECT OR S Chris Biellier Associate Director Seneca Companies Davenport | 563-332-8000

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

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

Chad Besch Associate Director New Cooperative Algona | 563-200-5115

Tessa Fahey Director Rainbo Oil Dubuque | 563- 526-1179

Keith Olsen | Director Olsen Fuel Supply Atlantic | 712-243-2340

Don Burd Director Otter Creek Country Store Cedar Rapids | 319-533-1825

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

Jim Pauk Director W&H Coop Oil Co Humboldt | 515-332-2782

F U E L I O WA // w w w. F U E L I o w a . c o m

Matt Scheetz Director The Depot Express Tiffin | 319-545-9514

Are Your Bulk Above-Ground Storage Tanks Properly Taxed?

With nearly 500 members spread across all 99 counties in Iowa, FUELIowa members make up the fabric of Iowa’s rural fuel distribution network. FUELIowa members are the necessary link between fuel suppliers and the end-users throughout the state. While most consumers think first of the traditional convenience store when analyzing the fuel distribution chain, in Iowa, hundreds-of-millions of gallons of motor fuels are stored and distributed to commercial end-users and farmers through the bulk fuel storage facilities owned and operated by FUELIowa members. In 2018, FUELIowa staff and the FUELIowa Board of Directors began discussing the taxation of above-ground storage tanks. With thousands of above-ground storage tanks statewide storing propane, diesel fuel, and gasoline, we believed taking a closer look at how these tanks were assessed for property tax purposes warranted a closer look. Through an agreement with a FUELIowa member, FUELIowa put forward our time and resources to challenge the assessment of above-ground storage tanks as real property subject to tax. Recently, the Iowa Court of Appeals issued their decision on the challenge brought forward by our member.

court denied McDermott’s appeal. Like many of us, County Assessors have

In 2016, McDermott relocated the pro-

been doing their job in the same way

pane distribution business to a property

Finally, McDermott appealed to the

for many years. When it comes to

about a mile outside Cascade to allow

Iowa Supreme Court, and the case

assessing commercial real estate for

for the town to grow. As part of that

was transferred to the Iowa Court of

tax purposes, many county assessors

relocation, McDermott left the piers,

Appeals.

have been placing an assessed value

bulkhead, and piping behind. At the

on bulk above-ground storage tanks

new location, McDermott installed a

The Court of Appeals began by quot-

under the premise that these tanks are

fence, shed, two new bulkheads, the

ing a portion of the applicable stat-

improvements to the real property, and

necessary piping and electrical wiring,

ute, Iowa Code section 427A.1. That

thus taxable. A recent Iowa Court of

and four precast concrete piers with

statute provides that “unless otherwise

Appeals opinion finds fault with that

saddles. Then, in a process that took

qualified for exemption,” the following

approach under Iowa law. This article

about half a day with a crane and a

must be taxed as real property by the

will summarize that recent ruling and

small crew, the two bulk above-ground

assessor:

provide suggestions on steps you can

tanks were transferred from the old

take to determine if your bulk above-

location to the new location.

ments, any of which are constructed

ground storage tanks are properly taxed.

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

c. Buildings, structures, or improve-

The new property was assessed at

on or in the land, attached to the land,

$122,110 in 2018. Then, in 2019 the

or placed upon a foundation whether

assessment jumped to $171,920. Upon

or not attached to the foundation…

inquiry, McDermott learned the basis for the increase was simply that it had

d. Buildings, structures, equipment,

added a third tank to the site, not that

machinery, or improvements, any of

there was any change to the existing

which are attached to the buildings,

real estate.

structures, or improvements defined in paragraph “c” of this subsection…

ed a propane distribution business in Dubuque County for four decades. For

Accordingly, McDermott petitioned

most of that time, McDermott operat-

the Dubuque County Board of Review

The only word from the statute that is

ed the propane distribution business

for a modification of the 2019 assess-

further defined is “attached” which,

from its bulk plant in Cascade, IA. That

ment. He alleged in his petition that

according to the statute, means:

bulk plant consisted of two 30,000-gal-

the tanks should not be assessed. The

lon above-ground storage tanks, two

board denied McDermott’s protest.

sets of concrete piers with saddles, a

McDermott then appealed to the

bulkhead, and a pumping unit. The sys-

district court alleging that a fair

tem was interconnected by the usual

assessment would be $96,920,

piping and ran on electrical power. The

a value that did not include

tanks themselves were held in place on

the three tanks. After a

the concrete piers by gravity. Also, for

hearing, the district

the entire existence of the bulk plant, the county assessor valued each component of the plant, including the tanks, for property tax purposes in the yearly assessments.

F U E L I O WA // w w w. F U E L I o w a . c o m

a.Connected by an adhesive preparation

STEPS YOU CAN TAKE TO DETERMINE THE TAXABILITY OF YOUR TANKS

b. Connected in a manner so that disconnecting requires the removal of

If your bulk above-ground storage

one or more fastening devices, other

tanks appear to be included in the

than electric plugs

assessment of your real estate, the best thing to do is contact your county

c. Connected in a manner so that

assessor to confirm the same. Thereaf-

removal requires substantial modifi-

ter, if your bulk above-ground stor-

cation or alteration of the property

age tanks are set up or installed in a

removed or the property from which it

manner similar to the tanks that were

is removed

examined in the McDermott case, you should consider seeking legal advice

To add another layer to the analysis, a

to determine whether the holdings in

piece of equipment is deemed not at-

the McDermott case could potentially

tached “if it is a kind of property which

apply to your situation.

would ordinarily be removed when the owner of the property moves to

If you plan to challenge your tax as-

another location.” Iowa Code section

sessment, you will need to follow the

427.1(3).

procedure established by your County Assessor’s office and Iowa law.

In its ruling, and agreeing with McDermott’s position, the Iowa Court of

First, as McDermott did, you should pay

Appeals found that the bulk above-

attention to your tax assessments. Iowa

ground storage tanks were pieces of

law provides that while the county

“equipment” and not “improvements”

assessor will set a value on each real

as urged by the Board of Review.

estate parcel every January 1st, formal assessments are done only in odd-num-

Further, the Iowa Court of Appeals held

bered years unless there has been a

the tanks were the kind of equipment

physical change to the property. In

ordinarily removed when an owner

the odd-numbered years when you

moves to another location, and there-

receive your assessment, the assess-

fore met the exception to the definition

ment should indicate whether a value

of “attached” in the statute. The Court

is being placed on your bulk above-

of Appeals ordered the case back to

ground storage tanks. If you do not

the district court for entry of an order

want to wait for your assessment, you

excluding the three bulk above-ground

can attempt to review your property

storage tanks from the 2019 assess-

on the county assessor’s webpage

ment.

which may indicate something similar

Owners Deed Holder Mcdermott Propane LLC 1501 1st Ave E Cascade IA 52033 Land Lot Area: 2.95 Acres; 128,502 SF Yard Extras #1 - (1) Fencing – Chain 3 Strand Bard, 6 ft-Hgh, 600 LF, 0 LF-Gates, Built 2016 #2 - (2) Tank – Small Bulk Horz Sti-Single w/Saddles, 30,000 Gal, Built 1970 #3 - (1) Shed W10.00 x L12.00 SF, Frame, High Pricing, Built 2018 #4 - (1) Tank – Small Bulk Horz Sti-Single w/Saddles, 30,000 Gal, Built 1991

to the right: The entirety of the Court of Appeals’ decision can be found here: https://www.iowacourts.gov/courtcases/14818/embed/CourtAppealsOpinion

This article should not be taken as legal advice and does not represent the view or position of FUELIowa on any issue related to the matter discussed. All members are encouraged to seek competent legal counsel regarding tax issues. 6

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By Marc Beltrame, FUELIowa Lobbyist

2022 Legislative Recap Here’s Where We Stand

The 2022 session of the Iowa General Assembly finally concluded on May 24, more than a month later than the statutory date. FUELIowa worked tirelessly during session to protect the interests of our members while promoting the legislative agenda set by the board of directors, which included modernizing Iowa’s container deposit law (also known as the Bottle Bill), securing the Comprehensive Petroleum Underground Storage Tank Fund (UST), increasing funding to the Renewable Fuel Infrastructure Program (RFIP), and ensuring efforts to increase access to E-15 fuel were less burdensome on smaller retailers. We achieved all these policy priorities while also addressing legislation which would have added significant costs to the HEALTHAlliance insurance plan.

IOWA’S BOTTLE BILL: FUELIowa has advocated for sweeping modernization of Iowa’s Bottle Bill for more than 40 years. The law, which was passed in 1978 to control litter along highways, has placed a tremendous burden on retail businesses while becoming less efficient in accomplishing its goal over time. Curbside recycling, which did not exist in the late 1970s, is now widespread and provides a more convenient option favored by consumers.

For the first time in 44 years, the Gen-

the legislation would have placed cer-

eral Assembly passed a comprehen-

tain restrictions and mandates which

sive reform that maintains the core

would have resulted in HEALTHAlliance

The result of these efforts was the

structure of Iowa’s Bottle Bill but allows

members paying significantly more.

passage of HF2128, legislation

retailers like our members to opt out

Working closely with a broad coalition

which included expanded retail tax

of the program without paying any

of business interests, FUELIowa and

incentives and double the amount

additional fees. The legislation makes

HEALTHAlliance successfully advocated

of money invested in infrastructure

several key changes to the current law,

for changes to the original legislation,

grants for retailers. FUELIowa will

including setting a convenience stan-

which is a huge win for members.

continue to work with our retail

ture grants.

dard based on population (10 miles

partners, farmers, renewable fuel

for counties with a population greater

producers, and elected officials in

than 30,000 and 15 miles for counties

the months and years ahead to en-

less than 30,000). Retailers who choose

sure that those who profit most from

to continue accepting containers from

this legislation assist those retail fuel

customers may qualify as a redemp-

businesses who face tough econom-

tion center and receive a 3-cent

ic challenges as a result.

handling fee (triple that of the current

WHAT FOLLOWS IS A SUMMARY OF HF2128

1-cent fee). For those who choose to opt out of accepting containers altogether, there is a process that allows

General E15 Access Standard:

this to happen once the law takes

• Any facility built after January 1,

effect on January 1, 2023.

2023, must comply with the General E15 Access Standard which

IOWA UNDERGROUND STORAGE TANK FUND LEGISLATION:

IOWA’S E15 ACCESS MANDATE:

FUELIowa and Casey’s worked col-

House File 2128, requires fuel retailers

laboratively on legislation to protect

around the state to offer E-15 fuel to

Alternative E15 Access Standard:

the Underground Storage Tank Fund,

customers. FUELIowa members have

• Existing facilities which do not

culminating in the passage of HF 2337

supported the renewable fuel industry

qualify for a waiver (described be-

by an overwhelming bipartisan vote of

for 50 years by making investments in

low) from the Alternative E15 Access

97-0. This legislation disbands the Iowa

storage and dispensing infrastructure.

Standard must offer E15 from a

Comprehensive Petroleum Under-

This commitment by fuel retailers has

minimum of one fueling position on

ground Storage Tank Fund Board but

been bolstered by government policies

January 1, 2026.

protects the priorities of remediating

of tax incentives and infrastructure

• Any facility replacing a gaso-

past petroleum contamination from

grants. The result of these policies has

line storage tank will be required

underground tanks; operator training;

led to a vast expansion of the renew-

to comply with the General E15

and tank pull grants. While the legisla-

able fuel market, which in turn has

Access Standard and offer E15 from

tion did not pass the Iowa Senate prior

been an important driver of Iowa’s

a minimum 50 percent of qualifying

to adjournment, FUELIowa still accom-

economic growth.

gasoline dispensers.

UST program funding set by the board

For the past two years, FUELIowa and

of directors.

its retail partners have sought to work in good faith with farmers, renewable

Waivers From The Alternative E15 Access Standard: Small Retailer Exemption

fuel producers, and elected officials

• A retail facility selling 300,000

to further expand customer access to

gallons of gasoline or less is eligi-

House File 2384, a pharmacy benefits

higher blends of ethanol and biodiesel.

ble to apply to the Department of

manager bill, placed new regulations

That effort was regrettably emotional

Agriculture for an exemption from

on pharmacy benefit managers, who

at times as retailers preferred an ex-

the Alternative E15 Access Stan-

work to administer prescription benefits

pansion of tried-and-true government

dard. The retailer must submit their

in health insurance plans. In particular,

policy of tax incentives and infrastruc-

annual gallons beginning January

requires E15 to be offered for sale at 50 percent of qualifying gasoline dispensers.

plished the policy priority of protecting

PHARMACY BENEFITS MANAGER (PBM) REFORM:

1, 2020, and ending December 31, F U E L I O WA // w w w. F U E L I o w a . c o m

2022, if requested by the Department

tax credit of $0.05 cents-per-gallon.

Class I Waiver

Penalties For Submission of an Inaccurate E15 Incompatibility Infrastructure Waiver:

• Sites with underground storage tanks

• A retail dealer knowingly submitting a

B20 Tax Credit:

meeting the following criteria are ex-

false incompatible infrastructure waiver

• Biodiesel blends containing between

empt from the Alternative E15 Access

order commits perjury as provided in

20 percent and 29 percent by volume

Standard:

Iowa Code 720.2.

biodiesel will be eligible for an income

of Agriculture.

during or prior to 1985. o Each single-wall fiberglass storage

uary 1, 2028.

tax credit of $0.07 cents-per-gallon.

o Each motor fuel storage tank not constructed of fiberglass installed

Effective January 1, 2023, through Jan-

E85 Gasoline Compatible Infrastructure Requirement:

Effective January 1, 2023, through January 1, 2028.

• A retail dealer installing, replacing,

tank was installed during or prior to

or converting gasoline storage and

B30 Tax Credit:

1996.

dispensing infrastructure used to store

• Biodiesel blends classified as B30 or

and dispense ethanol blended gas-

higher are eligible for an income tax

tank was installed during or prior to

oline classified as E15 or higher must

credit of $0.10 cents-per-gallon. Effec-

1991.

install infrastructure compatible with

tive January 1, 2023, through January

• The installation, replacement, or

E85. Effective January 1, 2023.

1, 2028.

B20 Diesel Fuel Compatible Infrastructure Requirement:

E15 Plus Gasoline Promotion Tax Credit:

o Each double-wall fiberglass storage

conversion of a gasoline storage tank triggers compliance with the General E15 Access Standard described above.

• A retail dealer installing, replacing,

• The E15 income tax credit moves to

Class II Waiver

or converting diesel fuel storage and

a flat rate of $0.09 cents-per-gallon

• If the cost to a facility owner to

dispensing infrastructure must install

effective January 1, 2023.

comply with the Alternative E15 Access

infrastructure compatible with B20 or

Iowa Department of Revenue Retail

Standard exceeds $71,428 to make E15

higher. Effective January 1, 2023.

Motor Fuel Gallons Report – Mandatory

available at a single gasoline fueling

Reporting and Penalty:

Qualified Renewable Fuel Use by State Motor Vehicles:

• Retail dealers, including tank wagon

Department of Agriculture for a Class II waiver. The cost analysis shall be based

• The state shall provide for the pur-

port with the Department of Revenue.

on a completed inspection report by

chase and operation of motor vehicles

Failure to file may result in a fine of $100

a certified professional retail motor fuel

using qualified renewable fuels. A

per occurrence.

site installer. The reasonable costs asso-

state motor vehicle operating using an

ciated with assessing a retail motor fuel

internal combustion engine powered

site may be included in the inspection

by gasoline or diesel fuel shall use the

Excise Tax Imposed on Gasoline and Diesel Fuel:

report.

highest possible classification of a qual-

• Excise tax rates for E15 plus will re-

ified renewable fuel allowed by the

main subject to market share and ad-

vehicle manufacturer.

justed accordingly on an annual basis.

position, the owner may apply to the

Duration of Waivers: • Class I and Class II Waivers applied

operators, shall prepare and file the re-

• Effective July 1, 2024, the current ex-

for and received by an owner are valid

E85 Tax Credit:

cise tax offset for B11 will move to B20.

until 2041 or until a gasoline storage

• The tax credit remains $0.16 cents-

On July 1, 2024, the excise tax rate for

tank is installed, replaced, or convert-

per-gallon and is repealed on January

B0 – B19 will move to $0.325 cents-per-

ed.

1, 2026.

gallon. B20 will be assessed an excise

Penalties For Non-Compliance with The E15 Access Standards:

B5 Tax Credit:

will be adjusted upward according to

• Eliminated effective January 1, 2023.

market share on an annual basis.

refuse to issue or renew and may sus-

B11 Tax Credit:

Biodiesel Production Tax Credit:

pend or revoke a license issued by the

• Biodiesel blends containing between

• The biodiesel production tax credit

Department.

11 percent and 19 percent by volume

paid to biodiesel producers for pro-

biodiesel will be eligible for an income

ducing biodiesel in Iowa has increased

tax rate of $0.295 cents-per-gallon and

• The Department of Agriculture may

from $0.02 cents-per-gallon to $0.04

tier II facility is eligible for a cost share

70 percent of cost, whichever is l

cents-per-gallon. The credit is applied

agreement covering up to 75 percent

Terms

to the first twenty-five million gallons of

of the project cost not to exceed

• Cost share terms include a 5-year

biodiesel produced at a facility.

$53,250.

commitment to marketing the ethanol

• A tier III facility is any facility not

or biodiesel product eligible for grant

Renewable Fuel Infrastructure Grant Program: Compatibility

meeting the criteria above. A tier III

assistance.

• Ethanol related projects eligible for

or $50,000, whichever is less.

facility is eligible for a cost share agreement covering up to 70 percent of cost

grant funding under the program must standard.

Biodiesel Project Cost Share and Eligibility

• Biodiesel related projects eligible for

• A minimum blend of B5 is required

grant funding under the program must

to be sold by an applicant throughout

meet a B20 or higher equipment com-

the duration of the grant commitment

patibility standard.

with one exception. Beginning April

meet an E85 equipment compatibility

1 and ending October 31 of each

Ethanol Project Cost Share

year, the grant recipient must use the

• A tier I facility is owned by an op-

biodiesel infrastructure to store and

erator of ten or fewer sites and sells

dispense, or store, blend, and dispense

between 1-140,000 gallons of gasoline

biodiesel blended fuel classified as B11

annually. A tier I facility is eligible for a

or higher.

cost share agreement covering up to

• Cost share awards remain $50,000 or

90 percent of the project cost not to exceed $63,900. • A tier II facility is owned by an operator of ten or fewer sites and sells more than 140,000 gallons but not more than 450,000 gallons of gasoline annually. A

F U E L I O WA // w w w. F U E L I o w a . c o m

2021 Iowa Retail Motor Fuel Gallons Report Summary REGU LATORY UP D AT E

By John Maynes,

Regulatory Affairs Manager

On April 1, 2022, the Iowa Depart-

was provided by the Department on

ment of Revenue released their an-

how to use the webform despite out-

nual Retail Motor Fuel Gallons Re-

reach from FUELIowa encouraging the

port for calendar year 2021. Iowa

Department to partner with FUELIowa

Code section 452A.33 requires all

to improve webform reporting pro-

Iowa fuel retailers to report motor

cesses and outreach.

fuel and diesel gallons to the Iowa Department of Revenue. The Iowa

As a result, the response rate from

Department of Revenue has been

retailers to the 2021 gallons request

compiling retail fuel sales data from

from the Iowa Department of Reve-

Iowa’s retailers since 2007. With the

nue reached an all-time low of 57.2

recent passage of the E15 access

percent. Historically, the response rate

mandate, reporting will move from

has settled around 80-85 percent. It is

voluntary to mandatory and the

also worth noting that the published

Department will now be able to

response rate of 57.2 percent rep-

assess penalties upon retailers for

resents 1,744 retail locations respond-

non-compliance with the reporting

ing to the request for information. This

requirement.

means that webform requests were sent to over 3,000 locations in Iowa,

For 2021 reporting, Iowa’s fuel re-

a number which is well beyond the

tailers were directed to report sales

actual scope of retail facilities even

data using the Department of Rev-

when including tankwagons and mari-

enue’s webform. No formal training

nas into the reporting entities.

Total Gasoline & Ethanol

In analyzing the data compiled from past retail gallons reports, the following trends are noteworthy: u Gasoline consumption is declining.

million gallons from 2020 to 2021. The

with moving the state excise tax offset

Consumption held steady around 1.6

question surrounding E15’s growth is

to B20, will end-users migrate toward

billion gallons for a decade. In 2021,

whether the gallon increase is attribut-

B20 or will B20 consumption remain pri-

consumption declined to just over 1.4

able to the increasing number of loca-

marily with the over-the-road industry?

billion gallons. It will be interesting to

tions offering E15 or whether consumers

see if consumption rebounds as we

are migrating away from E10 and to-

u Dyed biodiesel consumption remains

move further away from the covid

ward E15? The answer should become

an embarrassment. For an industry ad-

pandemic.

clearer in the coming years.

vocating for others to use homegrown biofuels produced right here in Iowa,

u In 2021, ethanol blended gasoline

u The clear diesel fuel market has re-

the data shows the producers of the

accounted for 87.7 percent of all gas-

mained steady. Clear B11 remains the

feedstock used to create biodiesel are

oline gallons sold in Iowa. 87.7 percent

dominant diesel fuel of choice among

not using their own product at a rate

represents the highest percentage

end-users. The growth of B11 is largely

which comes close to approaching

of gasoline market share for ethanol

attributable to the pairing of the $0.055

that of other end-users.

since the inception of the retail gallons

cent-per-gallon state income tax credit

report.

and the state excise tax offset. With the passage of House File 2128 and its

u E15 sales increased by just over 26

F U E L I O WA // w w w. F U E L I o w a . c o m

reduction of the B11 tax credit paired

Community Involvement Powerhouse: Rainbo Oil Company MEMBER FEAT UR E

By Strategic Elements

FUELIowa’s membership is made up of

Paul Fahey, Bernard’s son, took own-

fuel distributors, cooperatives, conve-

ership of the business in 1985 where he

nience and grocery stores, refiners,

worked closely with a team of employ-

biofuel producers, and other business-

ees to create the operating philosophy

This program takes place throughout

es. Our organization would not be

that runs throughout the company

the month of July and allows patrons

the same without the members that

today. Rainbo Oil Company will be

and customers to utilize a Vet-themed

empower Iowa’s fuel industry every

celebrating their 100-year anniversary

gas pump to donate two cents per

day. Rainbo Oil Company has been a

in 2023 and now has six warehouse lo-

gallon to the Dubuque Iowa Veterans

FUELIowa member since 1947 and has

cations distributing multi-line lubricants

Freedom Center. Rainbo Oil proudly

continued to be a leading example for

throughout Iowa, Wisconsin, Illinois, Min-

participates in the Veteran’s Freedom

independent business owners. Rainbo

nesota, Michigan, and Missouri, as well

Center honor flights and multiple other

Oil is a strong voice in the fuel indus-

as twelve convenience stores and five

events throughout the year.

try and a leading example of small

restaurants across the state of Iowa.

business expansion and community growth. Read more about the priority initiatives of Paul Fahey, the owner of Rainbo Oil Company, and his daughter

Magical Kwik Stop Christmas This holiday season will be the 20-year

Tessa Fahey, a current FUELIowa Board

Paul and Tessa believe that local,

anniversary of a community-loved

Member, below.

independent businesses are unique-

program that collects gift donations for

ly positioned to help communities

28 different Dubuque families. Rainbo

grow through community service and

Oil Company partners with Catholic

involvement initiatives. This mindset has

Charities to identify families in need

The History of Rainbo Oil Company

led to the company being communi-

then works with the local community

Rainbo Oil Company, headquartered

ty service leaders through numerous

and other organizations to collect do-

in Dubuque, Iowa, is a family-started

programs.

nations and financial support to ensure

and owned company founded in 1923. Bernard Fahey started his 45-year career as General Manager, and later

Community Involvement Initiatives

Kwik Stop Cents for Vets

Kwik Kare

every family member gets ten gifts for the holidays. Follow the Kwik Stop Dubuque Facebook page for updates

became President of the company. He

The Kwik Kare program highlights one

left a legacy in Dubuque by building

local nonprofit a month in which all

the city’s first drive-thru car wash on

donations and proceeds will be given.

Dodge Street, the first self-service car

This program offers smaller nonprofits a

wash on 20th Street, and the first con-

chance to gain visibility and financial

venience store in 1970.

support while maintaining a significant

This three-year-old program gets four

impact in the community.

local high schools involved in a design

on how you can get involved this year.

Kwik Stop Fuel for Schools

“We know that our

competition for one of Rainbo Oil’s gas

collection bins for school supplies and

pumps. The winning design is placed

the raising of funds that are utilized to

on a pump and allows customers and

purchase materials and resources for

contributions will have

patrons to donate two cents per gallon

the classroom. With the program being

to the winning school. Historically, this

such a success last year, Rainbo Oil is

lasting impacts and look

program has raised $8,000 - $10,000

excited to continue the program with

and is expected to grow.

hopes of expansion in the future.

forward to continuing to grow and expand not only our business but our community involvement initiatives to help the city of Dubuque flourish.” FUELIowa Membership benefits Rainbo Oil Company has been a proud FUELIowa member for 75 years and has been grateful for the educational support and resources. “FuelIowa has been a tremendous resource for our company since the beginning of our relationship,” stated Tessa Fahey, Wholesale Operations Development, Rainbo Oil Company.

“In addition to the remarkable time

“FUELIowa provides its members with

and energy that our employees invest

an understanding of current technical

in the community, I am also proud of

regulations and laws that affect our

In 2021 the Dubuque Fighting Saints

the strong and viable third-generation

industry, allowing us to make the best

hockey team and Rainbo Oil Compa-

owned business that we have grown

decisions for our company and our

ny partnered together on this pro-

and that is now a standing part of the

customers. In doing this, they are pre-

gram to provide financial support for

Dubuque community,” stated Paul Fa-

paring and educating the next gener-

local teachers. This program features

hey, Owner of Rainbo Oil Company.

ation of strong fuel industry leaders.”

Clear List Campaign

F U E L I O WA // w w w. F U E L I o w a . c o m

Don't Miss FUELIowa’s SUMMERFEST EVENT FEAT UR E

B y G a r y K o e r n e r, Executive Vice President, FUELIowa

our best shot tournament, head to

fulfilling our mission as the voice of the

Arnold’s Park, or just chill at the pool.

fuel industry in Iowa. Your PAC contributions make a difference, and this is our only

Summerfest is Summerfest is our annual summer lake party to re-connect and have some fun as an industry in a relaxed setting. It is a fantastic opportunity to really get to know the leaders of our industry, make connections and build relationships. In these days of zoom meetings and emails, what better way is there than to enjoy a beverage on the sunny shores of Lake Okoboji? This summer, we are putting together another action-packed schedule including our second annual bags tournament, boat cruise, cocktail reception, silent auction and dinner with a great comedian, and all with open bar thanks to our sponsors. The next day choose to play eighteen holes of golf in

fund-raising event

held at

of the year.

Bridges Bay

As you consid-

Resort

er attending,

right

please take

on the

a moment to

lake with

review the list of 2022 PAC donors.

all the ame-

These leaders have

nities you would expect. Restaurants, bars,

made an investment in

and pool and all of it right in the heart

their business that helps everyone in

of Okoboji’s nightlife. Although the

our industry and if we are going to be

event is only two days, we are hop-

successful, we will need many more

ing the industry takes advantage by

leaders to help achieve our legislative

coming a few days earlier or staying

goals for 2023.

after to make it an annual summer vacation. Bring the family so they can

Lastly, we could not have this event

enjoy while you are “working.” Own

without the support of our great

a boat? Bring it and treat your friends

sponsors. Please take a look and send

and family to a day on the lake.

a thank you to these companies that make Summerfest so special.

In addition to being a fun time, Summerfest also helps us raise money for

To learn more, register, or become

the FUELIowa PAC. Register to attend

a sponsor call FUELIowa’s Jim Ewing

or be a sponsor by making a personal

today at 515-224-7545.

contribution to the PAC. Not only will you have an enjoyable time, but you will also be helping us and yourself by

S E E YO U AT THE L AKE !

SUMMERFEST | AUG 4-5, 2022 | Okoboji

Our annual action packed event in support of the FUELIowa-PAC. Join us for a boat cruise, cocktail reception, dinner & silent auction with family and friends. Enjoy fun in the sun and a choice of golf or a day at Arnolds Park! Pay with personal funds to be included on the 2022 FUELIowa PAC Donor List.

SCHEDULE OF EVENTS: Check fueliowa.com for schedule and time updates. Day 1 3:00 p.m. 5:00 p.m. 6:00 p.m. 7:00 p.m. 9:00 p.m.

Day 2 9:00 a.m. 10:00 a.m. 10:00 a.m. 2:30 p.m.

Boat Cruise on Queen II Cocktails, Dinner & Reception Silent Auction Begins Bags Tournament Okoboji Night Life

Golf Registration Opens – (coffee, juice, donuts) Golf Shotgun Start - Brooks Country Club Golf Arnolds Park (non-golfers) (includes rides, cruise on the Queen II & museums) Lunch / Awards Ceremony

HOTEL: Bridges Bay Resort, call (712) 332-2202 & reference FUELIowa for a preferred rate.

REGISTR ATION INFOR M ATION Primary Contact:

Company:

Address:

State:

City:

Zip:

Email:

Phone:

(

)

Cell:

(

)

S U M M E R F E S T - $175 per attendee, dinner, open bar, bags tournament, & choice of golf or Arnolds Park. NA M E

COM PANY o r GU E S T

RSVP

E M AI L

Boat

1 ___________________________________________

______________________________________

_______________________________________

2 ___________________________________________

______________________________________

_______________________________________

3 ___________________________________________

______________________________________

_______________________________________

4 ___________________________________________

______________________________________

_______________________________________

5 ___________________________________________

______________________________________

_______________________________________

6 ___________________________________________

______________________________________

_______________________________________

     

Dinner Golf or Park

     

$_____________

TOTAL

$______________

$_____________ $_____________ $_____________ $_____________ $_____________

PAYM E N T I N F O R M A T I O N * TOTAL DU E

 PERSONAL Check Enclosed

Card

 PERSONAL Credit Card

Exp Date

Name on Card

 VISA  Master Card  AmEx  Discover Signature

Billing address if different from Primary Contact information.

S U B M I T R E G I S T R A T I O N A N D PAYM E N T FUELIowa, 10430 New York Ave Ste F, Urbandale, Iowa 50322 | Questions? Call (515) 421-4596 or e-mail jim@fueliowa.com. Download a PDF registration form online at www.FUELIowa.com Disclosure: In the event of inclement weather or other possible changes, we will not reschedule. Please consider your fees a donation.

T HAN K YO U T TO L A S T YE AR ' S S PO N SO R S To become a sponsor call FUELIowa’s Jim Ewing today at 515-224-7545. Westmor

EMC Insurance

REG

Jet Gas

GROWMARK Energy

LMC Insurance

Seneca Companies

Rainbo Oil Company

Cylinder Express

Mast ATM

Sinclair Oil

Altria

Midwest Petroleum Equipment

CHS Inc

Molo Petroleum

Zahls Petroleum Maintenance Unified Contracting Services Siouxland Trailer Sales Valero

Community Oil Company

PMMIC Insurance

RINAlliance

F U E L I O WA // w w w. F U E L I o w a . c o m

2022

PAC CONTRIBUTORS AS OF MAY 18, 202 2

FUELIOWA PAC CONTRIBUTION CARD

VISIONARY ($5,000+)

$11,000 Bev & Henry Jessen, Cylinder Express * $ 5,100 Don Burd, Otter Creek Country Stores * $ 5,000 Paul & Tessa Fahey - Rainbo Oil *

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

$4,000 Bob Mast, Mast ATM * $2,500 Jason McDermott, McDermott Oil * $2,500 Todd Kanne, Community Oil * $2,500 Ronald N. Langston, FUELIowa ^

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

$1,500 Joe Zietlow, Kwik Trip ^ $1,000 Dave Reif, Reif Oil $1,000 Cliff Reif, Reif Oil $1,000 Randal Woodard, Elliott Oil $1,000 Matt Scheetz, Depot Express $1,000 Erik 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) $500 Rod Gittins $500 Mark Lincoln $500 Keith Olsen $500 Keith Crandall

CONTRIBUTOR ($0-$499) $200 Chad Besch $100 Dave Scheetz $100 Allen Boeckman $100 Wade Fowler $100 Dean Onken $ 50 Nathan Nolte

^ Sustaining Member * Fuel Marketer Program

Donate at: www.fueliowa.com/donate-to-pac.cfm

^ Sustaining Member * Fuel Marketer Program

CONTRIBUTOR INFORMATION Name____________________________________________ Address___________________________________________ City_______________________________________________ State ____________________

Zip_________________

E-mail____________________________________________

CONTRIBUTION AMOUNT

 Bill Me*

$_________________

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

BILLING ADDRESS Billing Address_____________________________________ ( I f d i f f e r e n t f r o m a b ove a d d r e s s)

__________________________________________________ Signature_________________________________________ Date______________________________________________

WE GO ABOVE, BEYOND, AND BELOW. Over 30 Years Providing Professional AST/UST Services F U E L I O WA // w w w. F U E L I o w a . c o m

UPGRADES, NEW INSTALLATIONS, LICENSED ELECTRICAL CONTRACTORS, CATHODIC PROTECTION SERVICES, VACUUM TRUCK SERVICES, EQUIPMENT SALES, DISPENSER SERVICES, ENVIRONMENTAL & COMPLIANCE.

888-788-8860 or 515-266-5700 19

C AL END AR O F EV EN T S

J UNE 0 6 , 2 0 2 2 CAMP COURAGEOUS GOLF BENEFIT Coralville, IA Come and join FUELIowa members for a fun filled day of golf among industry peers for a great cause - Camp Courageous of Iowa. Enjoy a round of golf at the beautiful Brown Deer Golf Club in Coralville, followed by an awards reception and prime rib dinner. This is an event you do not want to miss!

AU G U S T 4 & 5 , 2 022 SUMMERFEST Okoboji, IA Enjoy two full days at Lake Okoboji! Have a drink lakeside at Bridges Bay Resort, tour the lake, earn bragging rights at the bags tournament, enjoy 18 holes of golf, and get out and explore all that Okoboji has to offer!

Visit www.fueliowa.com and select “Training and Events” to register. To sponsor an event, call FUELIowa at 515-224-7545 or email jim@fueliowa.com 20

PROVIDING

THE COMPLETE SOLUTION” FOR IOWA PETROLEUM MARKETERS CELEBRATING 50 YEARS OF SERVICE

FUEL SYSTEMS CONSTRUCTION, SERVICE, UPGRADES, INSPECTION AND EQUIPMENT

•

OPERATOR TRAINING PROGRAMS

•

GENERAL CONTRACTING

•

EMV COMPLIANCE

•

ENERGY MANAGEMENT

•

POINT OF SALE SYSTEMS

•

ENVIRONMENTAL CONSULTING

•

FUEL RESTORATION & TANK CLEANING

•

INDUSTRIAL CLEANING

•

UST/AST REMOVAL

•

AUTOMOTIVE EQUIPMENT

•

COMPLIANCE MANAGEMENT

•

DRI-SUMP TESTING

•

515-262-5000 STORE.SENECACO.COM SENECACO.COM INFO@SENECACO.COM F U E L I O WA // w w w. F U E L I o w a . c o m

It’s not just business.

It’s personal.

Cylinder Express makes it easy. Just unlock, exchange, collect! Call 888.365.1241

• Family Owned & Operated • Battle Creek • Iowa • At Cylinder Express, we take your business personally. A call to us means

always being greeted by a person, not an automated message. It means never running out of cylinders so you can advertise a special on propane with complete confidence that your customers will always find a propane tank at your store. It means value, quality and service. It means we treat you like family.

Value — Offering your customers grill cylinder cages provides your business with an excellent additional source of income and increased traffic flow. Quality — Each cylinder tank that arrives at our state-of-the-art facilities is carefully inspected, scraped, cleaned and painted to ensure it’s like new for your customer. Service — A friendly team member will assist you right away, not an automated system. Run ads with confidence. We deliver weekly or bi-weekly, based on your need for product.

Call 888.365.1241 or visit www.propanehank.com 22

Clean fuel innovation powers a sustainable future. 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 sustainability profitable.

Turnkey Solution to Drug & Alcohol Testing Requirements S ERVICE F EAT UR E

By John Maynes,

Regulatory Affairs Manager

With the Covid-19 pandemic behind

wa members with a valuable local

FUELIowa’s partnership with CJ Cooper

us, the Department of Transportation

resource. Paired with your access to

meshes the DOT’s controlled substance

(DOT) is back to pro-actively enforcing

FUELIowa staff managing the program,

testing regulations seamlessly with the

its regulations covering motor carriers.

members can be assured of first-class

FMCSA’s CDL Driver Clearinghouse

With spring quickly turning toward

customer service and immediate

Requirements to satisfy both regulatory

summer, that means the DOT audit

access to someone with knowledge

arenas in one spot. Partnering with your

season is once again upon us. For

of DOT’s controlled substance testing

association to satisfy your compliance

FUELIowa members, a main area of

rules and regulations. FUELIowa under-

needs in these areas eliminates the

focus by the DOT during a safety audit

stands when an issue arises involving a

need to make multiple phone calls to

is the enrollment of your company and

driver and controlled substance testing

multiple service providers to obtain

your drivers in a random testing pool

our members need answers quickly.

the information you need when called

for controlled substances and alcohol.

Our DOT controlled substance testing

upon by the DOT. Rest assured, there

Let FUELIowa be the source for your

program is available to you to meet

are no call centers monitoring our

compliance needs in this area.

that need.

phones and no automated system to

In partnership with FUELIowa Associate

Working in conjunction with our con-

need on the timeline you need them.

Member CJ Cooper and Associates,

trolled substances testing program is

FUELIowa members subscribing to our

FUELIowa is proud to provide members

our turnkey solution to the Federal Mo-

program have direct access to our

with access to a turnkey solution for

tor Carrier Safety Administration’s re-

staff who can handle your needs no

your DOT controlled substance testing

cently implemented CDL Driver Clear-

matter what situation presents itself.

needs. Through CJ Cooper and Asso-

inghouse Program. Beginning January

ciates expansive network of partner

6, 2020, any CDL driver changing em-

Members interested in learning more

clinics throughout Iowa and its neigh-

ployers or entering the industry for the

about the program should contact

boring states, FUELIowa members can

first time is required to have a prospec-

John Maynes in the FUELIowa office at

be assured of access to a convenient

tive employer conduct a search of the

515-421-4043 or

collection location no matter where

FMCSA CDL Driver Clearinghouse as a

by email at

their drivers are starting and ending

condition of employment. Additionally,

john@fueliowa.com.

their days.

drivers and employers must use the

Signing on is easy

navigate to obtain the answers you

CDL Driver Clearinghouse to document

and our staff is here

A local small business headquartered

positive tests and any return-to-duty

to assist you along

in Hiawatha, Iowa, CJ Cooper and

information prescribed by a DOT ap-

the way.

Associates expertise provides FUELIo-

proved substance abuse professional.

FUEL YOUR BUSINESS

Choose an insurance company that makes the grade. Whether you’re wholesaling or retailing, you can Count on EMC ®, the only property/casualty insurance company endorsed by FUELIowa. FUELIowa Insurance, powered by EMC, offers these advantages: • • • • • •

Competitive rates Comprehensive coverage Financial stability Potential for annual dividend Program expertise since 1983 Reliable loss control resources

Contact your independent insurance agent for more information. EMC Insurance Companies Des Moines Branch 700 Walnut, Suite 900 Des Moines, IA 50309 515-280-2604 desmoines@emcins.com emcins.com ©Copyright Employers Mutual Casualty Company 2021. All rights reserved.

F U E L I O WA // w w w. F U E L I o w a . c o m

M EMBER HAPPEN IN GS WELCOME NEW MEMBERS Argus Media Please welcome Argus Media to FUELIowa. Argus is a leading independent provider of energy and

lab’s services is so great that it has outgrown its space in that building.

DEB GROOMS RETIRES FROM IOWA PROPANE GAS ASSOCIATION (COURTESY LP GAS MAGAZINE)

commodity price benchmarks

BITCOIN KIOSKS ARE COMING After 27 years at the helm of the Iowa

CASEY’S DONATION PROVIDES FOR NEW BIOFUELS TESTING LAB FOR IOWA CENTRAL (COURTESY MESSENGER NEWS)

Iowa Central Community College will build a new biofuels testing lab on the west side of Fort Dodge using land donated by Casey’s General Stores and the owners of the former Colonial Inn site. Construction could begin late this summer. ”Iowa Central Community College continues to be a leader in the biofuel testing industry,” said Dr. Jesse Ulrich, the college president. ”The Iowa Central Fuel Testing Laboratory has been uniquely positioned for the last decade to offer quality fuel testing and ana-

Propane Gas Association and a serious health scare, Deb Grooms looks forward to settling into her lakeside

The La Crosse convenience store chain

retirement home in the Ozarks with her

announced Monday it is partnering

husband and their “really obnoxiously

with Coinsource to install Bitcoin ATMs

cute” black-and-white boxer puppy,

at over 800 Kwik Trips in Wisconsin, Min-

Ozzie.

nesota, Illinois and Iowa.

But, she says, she’s grateful for her

“We are delighted to be partnering

career in the propane industry and has

with Coinsource and facilitating simple

thoroughly enjoyed the people she’s

access to Bitcoin for our guests," said

met along the way.

Dave Wagner, controller of Kwik Trip. "We understand Coinsource’s aim of

Grooms is especially proud of helping

providing the fastest, easiest and most

the state industry win passage of the

secure way to buy and sell cryptocur-

PERC bill authorizing the checkoff pro-

rencies and how a key part of this is

gram in 2007. The funding allowed the

placing the Bitcoin ATMs in convenient

association to hire Tom Dunn 12 years

and easily accessible locations.”

ago as safety director and open its own training center for classes.

Wagner said the Bitcoin ATM rollout is still in the early stages. He said 200

Grooms’ administrative assistant of 13

stores have been equipped, including

renewable fuels industry.”

years, Michelle Wicker, will replace her.

the new Kwik Trip in Holmen. He said

Before joining the association, Wicker

the company is still gauging customer

Ulrich said the facility is the official

had worked in customer service with

response.

lytical services for the petroleum and

analytical laboratory for the state’s Bureau of Weights and Measures. That means the lab is the place where fuels to be used all across Iowa are tested to make sure they meet state standards. The lab was started in about 2007 on the Fort Dodge campus and is currently located in the Bioscience and Health Science Center. The demand for the 26

TO KWIK TRIP

Ferrellgas, so she is well acquainted with the industry. Grooms feels secure that, when she concludes her tenure Dec. 31, she will leave the association in good hands.

F U E L I O WA // w w w. F U E L I o w a . c o m

E N E RG Y MARK ETERS OF A M E R ICA

INSIDE THE BELTWAY

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.

ly to consumers. Specifically, the rule

co products and likely other in-store

would provide that a cigarette or any

products if such a ban goes into effect.

of its components or parts (including

Menthol cigarette sales make up

the tobacco, filter, wrapper, or paper,

about one-third of overall cigarette

as applicable) may not contain, as a

sales and even more in some regions.

constituent (including a smoke con-

The ban also has the potential to affect

stituent) or additive, menthol that is a

all levels of the tobacco industry from

characterizing flavor of the tobacco

the thousands of unionized farmers,

product or tobacco smoke.

machinists, raw materials providers, truck drivers, warehouse operators, and

F DA Prop os e s B a n o n M ent h ol Ci g a ret tes a nd Flavo re d Ci ga r s

The proposed rule for cigars and ciga-

retailers who operate responsibly in the

rillos would prohibit the use of all flavors

legal, regulated industry today. In addi-

in cigars. The FDA proposes to define

tion, the federal government and state

The Food and Drug Administration

“cigar” as a tobacco product that:

governments combined stand to lose more than $6.6 billion in tax revenue in

(FDA) issued two new proposed rules this week that would ban the manu-

(1) is not a cigarette and

thol-flavored cigarettes and flavored

facture and sale of menthol flavored cigarettes and ban all flavored cigars

(2) is a roll of tobacco wrapped in leaf

cigars, as recently reported by the Tax

and cigarillos. Should these feder-

tobacco or any substance contain-

Foundation, an independent tax policy

al flavor bans be finalized, it would

ing tobacco. The rule would provide

nonprofit.

represent the most far-reaching action

that a cigar or any of its components

taken by the FDA since Congress gave

or parts (including the tobacco, filter,

There is no timeline for the FDA rules to

the agency the authority to regulate

or wrapper, as applicable) must not

be finalized, but they are believed to

tobacco products in 2009. The pro-

contain, as a constituent (including

be fast tracked and could be finalized

posed rules essentially mirror each

a smoke constituent) or additive, an

by the end of 2022 or early 2023. The

other with a few exceptions. Both rules

artificial or natural flavor (other than

public comment period is open for

would: become effective one year af-

tobacco) or an herb or spice. The

60 days and will close on July 4, 2022.

ter becoming finalized; focus enforce-

banned flavors include, but are not

After the rules are finalized, retailers

ment on manufacturers, distributors

limited to: strawberry, grape, orange,

will have one year from the effective

and retailers, but not on consumers for

clove, cinnamon, pineapple, vanilla,

date of the rules to sell remaining floor

possession or use. However, tobacco

coconut, licorice, cocoa, chocolate,

stocks. EMA encourages retailers to

manufacturers as well as the Energy

cherry, coffee, mint, or menthol,

submit comments on the proposed

Marketers of America strongly oppose

that is a characterizing flavor

rule highlighting that a ban on menthol

the menthol and flavor bans and will

of the tobacco product or

likely challenge the proposed rules

tobacco smoke.

cigarettes and cigars with characterizing flavors will likely lead to an illicit market that will put small

which is likely to set off a protracted legal battle that would delay imple-

A proposed menthol ban would give

mentation of the rule for years and/or

rise to illicit sales of these products by

likely to stop implementation.

vendors and individuals who would not verify the age of consumers or collect

the year following prohibition of men-

Specifically, the proposed rule for

taxes. Convenience retailers train their

cigarettes would prohibit the use of

employees how not to sell tobacco

menthol as a flavor in cigarettes and

products to underage customers, yet

cigarette components and parts,

law-abiding small businesses could

including those that are sold separate-

lose in-store sales of flavored tobac-

business convenience stores out of business and lead to billions in lost government revenue.

FMCSA is seeking comments and data

Send your Comments to

from interested parties regarding the

Mark Morgan,

adjustment or reprogramming of ECUs.

EMA Regulatory Counsel at

The data collection includes:

mmorgan@emamerica.org before July 1, 2022.

What percentage of the CMV fleet currently uses speed limiting devices? If in use, at what maximum speed are the

FMCS A Con s i der ing Speed Li mi ter R e tro f i t R e qu irem ent for Comme rcia l M otor Ve h i cles The Federal Motor Carrier Safety Administration (FMCSA) announced this week it will move forward with a proposed rulemaking that would require speed limiters commercial motor vehicles (CMVs) weighing over 26,000 pounds and operated in interstate commerce. The FMCSA, in conjunction with the National Highway Traffic Safety Administration (NHTSA), proposed a speed limiter rule back on September 7, 2016 that was never acted upon. That rule would have required speed limiters on newly manufactured CMVs. The FMCSA now says it intends to issue a supplemental proposed rulemaking that would require motor carriers to retrofit CMVs manufactured after 2003 with speed limiters. According to the FMCSA, CMVs manufactured after this date are equipped with an electronic engine control units (ECUs) capable of governing maximum vehicle speed. Motor carriers would be required to retrofit ECUs by reprograming them for use as a speed limiter set at a maximum speed that will be determined by the FMCSA in a final rulemaking. As in the previous proposed rule, the FMCSA proposal would apply to CMVs over 26,000 pounds operating in interstate commerce. The proposed rule would require motor carriers to maintain the ECU limit for the service life of the vehicle. F U E L I O WA // w w w. F U E L I o w a . c o m

devices generally set? What training is needed for maintenance personnel to adjust or program ECUs to set speed limits? What tools or equipment are needed to adjust or program ECUs? How long would adjustment or reprogramming of an ECU take? Where can the ECU adjustment be completed, on site, at a dealership or service center? Do responses to questions 3 through 6 change based on the model year of the power unit? Since publication of the proposed rule in September 2016, how has technology changed as it relates to the ability to set speed limits using ECUs? Should FMCSA revisit using the 2003 model year as the baseline requirement for the rule? Should FMCSA consider a retrofit r equirement in the rule and, if so, should it be based on model year or other criteria, and what would the cost of such a requirement be? The data collected will then be used to issue a proposed rule later in the year. EMA will comment on the proposed rule and welcomes your comments on the 10 questions listed above.

E PA Agrees to Fin a l ize R F S An n ua l Bl en din g Vo l um es fo r 2021 a n d 2022 by June 3 The U.S. EPA has entered into a consent decree with Growth Energy to issue minimum biofuel blending volumes under the renewable fuel standard (RFS) no later than June 3. The consent decree was the result of settlement of a lawsuit between the EPA and Growth Energy over the agency’s tardiness in meeting statutory deadlines for issuing blending volumes that ethanol producers and refiners rely on to manage production. The consent decree was approved by the U.S. District Court for the District of Columbia and covers the annual volumes under the RFS for 2021 and 2022. The litigation centered around the annual volumes of conventional biofuel, such as corn ethanol, along with other renewables including advanced biofuels. The annual blending volumes for 2020 were finalized, but the EPA proposed to change them retroactively to reduce blending requirements for advanced biofuels. The upcoming rule to be finalized in June apply to volumes for cellulosic biofuel, advanced biofuel, and total renewable fuel for 2021 and 2022, and the biomass-based diesel (BBD) applicable volume for 29

2022. The EPA is also expected to mod-

which EMA is a member, welcomed

ify the volumes previously established

Wednesday’s announcement that

for cellulosic biofuel, advanced biofu-

the Senate Judiciary Committee will

el, and total renewable fuel for 2020.

hold a hearing next week, May 4, on

In addition, to address the remand of

anticompetitive practices by the credit

the 2014-2016 annual rule by the D.C.

card industry that have led credit card

Circuit Court of Appeals, the EPA is pro-

“swipe” fees to more than double over

posing a supplemental renewable fuel

the past decade and are driving up

(ethanol) volume of 250 million gallons

prices as consumers face near-record

in 2022, and 2023. EMA supports limiting

inflation.

annual corn ethanol blending volumes to 9.7 percent of projected gasoline

The announcement comes less than

demand to address E15 compatibility

two weeks after Durbin, Senator Roger

issues with underground storage tank

Marshall (R-KS); Representative Peter

equipment.

Welch (D-VT), and Representative Beth Van Duyne (R-TX), wrote to Visa and

Meanwhile, Midwest governors sent a

Mastercard asking that they withdraw

letter to the EPA requesting a perma-

$1.2 billion in credit card swipe fee

nent reduction in the Reid Vapor Pres-

increases set to take affect this month.

sure (RVP) gasoline standard in order to allow retailers to sell E15 year-round

Credit card swipe fees are still hidden

without the need to receive temporary

and centrally fixed by the card com-

waivers in the future. Unfortunately,

panies. Fees have more than doubled

requiring a lower RVP standard will

over the past decade despite tech-

likely increase prices at the pump and

nological improvements that have

not result in any additional savings to

driven down processing costs. The rates

motorists given ethanol’s lower energy

charged to U.S. retailers are among the

content. According to the EIA, be-

highest in the world, seven times the

cause ethanol contains about 67 per-

maximum allowed in Europe. In 2019,

cent of the energy content of gasoline

card processing fees totaled $116.4

per gallon, use of ethanol blends results

billion, according to the Nilson Report.

in lower vehicle fuel economy (miles

That was up 88 percent over the pre-

traveled per gallon) relative to gasoline

vious decade. Additionally, swipe fees

that does not contain ethanol.

are the second highest operating cost for convenience store retailers. In 2019, the industry’s pre-tax profit was $11.9 billion and card fees paid by the industry were $11.8 billion. For small business energy marketers, swipe fees are the highest expense other than payroll. Because swipe fees are a percentage of the purchase, the amount collected goes up as prices go up, creating a multiplier effect for inflation and giving

S enate Comm it tee to Ex ami n e Anticomp e t i t ive Pra c tice s by Cre dit Ca rd I ndu s t r y The Merchants Payments Coalition, of

the card industry an unearned windfall even if rates stay the same.

N F PA Sta n da rds Counci l R ej ec ts O ver l y R estr i c tive Fire S a fet y Rules fo r E V Ch a rgin g at G as Statio n s Recently, the NFPA Standards Council voted not to issue the proposed Tentative Interim Amendment (TIA) which would have added a new section to the 2021 edition of NFPA 30A (Code for Motor Fuel Dispensing Facilities and Repair Garages) regulating the placement of Electric Vehicle (EV) charging stations at motor fuel dispensing facilities. A TIA generally serves as an emergency recommended amendment to an existing NFPA standard that has not gone through the formal standard revision process. The TIA failed to achieve the necessary support of the Technical Committee on both its technical merit and emergency nature when balloted prior to submission to the Standards Council. As a member of the Technical Committee, EMA submitted a “no” vote on the TIA. As justification for its vote on the TIA and in public input on the TIA, EMA submitted detailed comments outlining its specific concerns with the proposal including provisions requiring setbacks from excluding property lines, buildings and other areas of a motor fueling facility. These concerns raised the potential for the unintended consequence of excluding motor fueling facilities from the opportunity to be part of the development of an EV charging infrastructure. Instead, EMA urged NFPA to wait to develop a EV charging instal-

lation standard during the normal 2024

tiatives, stakeholder meetings, listening

revision cycle for NFPA 30A rather than

sessions and regulatory reform. The

through a temporary interim amend-

Plan will address an array of issues,

ment. In this way, marketers would

including low pay, regulatory process-

have sufficient time to comment and

ing delays long hours that force drivers

collaborate with NFPA on the standard

and potential applicants into other

so that it does not unduly restrict instal-

professions. The goal is to support and

lation of EV chargers at retail gasoline

expand access to quality driving jobs

stations.

that attract new drivers, according to the Administration.

NFPA 30A is currently in the midst of the

register online this year and do so early. However, registrations submitted before May 1, 2022 will not be processed until the open season begins.

each year in return for a certificate of

for the installation of EV chargers at

authority to operate in intrastate and/

motor fuel dispensing facilities. EMA

or interstate commerce. Since PHMSA

will be submitting comments on the EV

allows multiyear registration, not all reg-

charging and other proposals and will

istration certificates are up for renewal

DOT An n ua l H a zm at R egis tratio n Per io d Open s M ay 1, 2022

by July 1, 2022. Marketers should look

The U.S. Department of Transportation’s

istration look-up to determine whether

at their registration certificate for the date of renewal or search registration

Pipeline and Hazardous Material Safety Administration (PHMSA) online portal

Bi den Ad mi n i st rat io n La u n ch e s Ne w I niti at i ve s to Address Natio n al Tru c k Dr iver Shor t ag e

processing delays, marketers should

mon carriers to register and pay a fee

which include proposed requirements

charging.

COVID-19 workplace restrictions and

hazardous materials through com-

ments to the 2024 edition of NFPA 30A

of overly restrictive requirements for EV

be completed by July 1, 2022. Due to

terial transporters and those who ship

public input on the proposed amend-

Committee to prevent the adoption

May 1, 2022. Registration renewals must

PHMSA requires both hazardous ma-

2024 revision cycle and is accepting

continue to work with the Technical

for annual HAZMAT registration opens

status at PHMSA’s online portal at regregistration is due for renewal.

Glasteel II by Modern

The Biden Administration is launching a new series of initiatives aimed at increasing the number of qualified CDL drivers available to motor carriers

• Compatible with all biofuels and additives – no peeling, flaking, or cracking

nationwide. The “Trucking Action Plan”

• Customizable multi-compartment design options to meet your specific storage needs

(Plan) is designed to draw new CDL

• Does not rely on backfill for structural support

drivers into the profession and retain

• Capacities up to 70,000 gallons

those currently employed in an effort

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RISK M A NAGE M E N T By Risk Improvement Department, EMC Insurance Companies, Des Moines, Iowa

H o w to P re p are Un d e r g ro u n d S t o r ag e Tan k s f o r F lo o d in g Convenience stores are everywhere, making them convenient for consumers but also vulnerable to a variety of weather-related disasters. Flooding events are especially dangerous when it comes to maintaining the integrity of your underground storage tanks (USTs).

Many areas of the country that weren’t prone to flooding in the past are experiencing changing weather patterns, so it’s more important than ever to fortify your operations against flooding which can disrupt your business long after the water has receded.

WHAT HAPPENS TO USTS DURING A FLOOD?

CUSTOMIZE UST INSTALLATION TO PREVENT DAMAGE DURING FLOODING

Underground storage tanks contain both fuel and air within a closed system. This becomes a problem when the space around the tank fills with water from a heavy rain event, hurricane or river overflowing its banks. Imagine holding a beach ball underwater—it wants to rise to the surface. Similarly, the air in a UST makes the tank buoyant, pushing up against the ground to rise above the water. In a worst case scenario, the tank can pop out of the ground, compromising the entire system and causing a fuel release. Tanks may shift underground, creating cracks in the 32

tank or the piping that can cause a release once operations resume. Other damage can include erosion and scour, product displacement and damage to the electrical system.

If your UST is located near water or low-lying areas, you can help prevent flood damage by increasing the burial depth of the tank or adding additional pavement on top. The additional weight can help a tank from floating. You can also use special anchors to help hold the tank down. Consider adding additional automatic shutoff valves and vent pipe extensions. Always review the recommendations of the tank manufacturer and local soil conditions when planning UST placement.

PROTECT YOUR UNDERGROUND STORAGE TANK WHEN FLOODING IS IMMINENT Many flooding events have advance notice—from a few hours for heavy rain events to days for hurricanes. Put together flood mitigation plans in advance so your managers and employees can use that time as effectively as possible. Plans should be easy to understand and training should be provided. To prevent tank displacement or water entering the system, the Environmental Protection Agency (EPA) recommends these precautions:

PTurn off electricity to UST system PTake product inventory and water level reading of all USTs to account for product loss PFill the tank as much as possible (with fuel, not water) to weigh it down PSecure all openings on top of the tank as tightly as possible to prevent product release PEnsure the seal on spill bucket plungers are operational PClose the shear valve on pressurized piping PTemporarily cap off vent pipes PPlace a dumpster, sandbags or large containers of sand/rock over the tank to prevent floating BRING YOUR UST BACK ONLINE AFTER FLOODING Depending on your site-specific situation, you may take the following actions once the water has receded and local officials allow re-entry:

PMake sure the power is off to any UST-related equipment PDetermine if product leaked from the UST PDetermine if water/debris entered the UST PInspect the electrical system and return power to the UST PCheck release detection system for proper operation PCheck all equipment including pumps, shear valves, fill pipes and vent lines PClean and empty spill buckets and sumps (including those under dispensers and above tanks); inspect piping and fittings for damage

PPerform a UST system tightness test before adding product PTest spill buckets and sumps PTest cathodic protection If you’ve had a tank float out of its excavation, or if you operate a remediation system that has been flooded, consult the EPA’s UST Flood Guide for information. You can also contact your storage tank authority or the National Response Center (NRC).

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