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THE VOICE AND RESOURCE FOR IOWA’S FUEL INDUSTRY

2021 Year In Review pg. 4 Agility in the Fuel Industry p. 8 Preparing for Media Opportunities pg. 12 Driver Training Rule Approaching pg. 16 VOLUME 74, NO.6 2021 NOV / DEC

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ON THE COVER FUELIowa takes full advantage of all opportunities given to us to speak with our elected officials about our industry at a recent Republican Party of Iowa event.

FE A TUR E S 3

PRESIDENT’S PERSPECTIVE

2021 YEAR IN REVIEW

AGILITY IN THE FUEL INDUSTRY

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 2

www.FUELIowa.com

PREPARING FOR MEDIA

DRIVER TRAINING RULE DEADLINE

KEY LEGISLATIVE DATES

CALENDAR OF EVENTS

INDUSTRY INSIGHT S

PAC CONTRIBUTIONS

MEMBER HAPPENINGS

RISK MANAGEMENT

PR E S ID ENT ’S PER S P E C TI V E THE RESILENCE OF FUEL MARKETERS: WHAT HAVE WE LEARNED?

This past October, I had an opportunity to attend my first Energy Marketers of America (EMA) conference in Chicago, Illinois. I would like to share what I learned about the great resilience of the retail fuel marketing industry. Despite the COVID-19 pandemic, the industry proved resilient in adapting to change, managing supply chain disruptions, worker shortages, and the often mixed, unpredictable, and uncertain directions received from federal, state, and local governments. Various retail fuel market store models not only survived but thrived in providing key essential services to the public 24 hours a day, seven days a week. For a national perspective, the observations presented by Dr. Henry. Armour, President and CEO of NACS (National Association of Convenience Stores) are certainly of interest. Dr. Armour noted that overall direct store operating expenses (DSOE) increased by 14.6 percent, driven by the growth in credit card transaction fees. But financial growth trends also occurred ‘inside the store’ resulting in positive year-over-year profits. Retailers transitioned to offering e-commerce services by utilizing advanced technologies. Supply chain disruptions resulting from COVID-19 thwarted ‘just-in-time' efficiency strategies resulting in product shortages and higher cost of goods. There were other discussions during the conference which focused on Dr. Amour’s big strategic issues: electric vehicles, climate change, creating carbon neutral engagement, integrating cyber technologies with brick and mortar, supply chain fragility, and the life cycle of electric vehicle development and deployment. These references are good indicators of resilience, based on the four key factors Dr. Armour noted as “acceleration, adaptability, agility, and opportunity.” Iowa’s retail marketers are resilient, and, as Dr. Armour’s observations emphasize,“Business is coming back.”

R NL Ronald N. Langston, President & CEO

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

EXECUTIVE COM M I TTEE Doug Coziahr Chair Nebraska-Iowa Supply Company Omaha 402-393-8350 Bev Jessen Vice Chair Treasurer Johnson Oil/ Cylinder Express Battle Creek 712-365-4740 Joseph Zietlow Treasurer Kwik Trip, Inc La Crosse, WI 608-793-6484

Jason McDermott Immediate Past Chair McDermott Oil Company Cascade 563-852-3510

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

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

Nicole Johnson Director Molo Companies Dubuque | 563-557-5714

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

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

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

Jim Bocken Associate Director Core-Mark Midcontinent, Inc. DBA Farner-Bocken Company Carroll | 712-792-7412

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

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

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

By Strategic Elements

2021 YEAR IN REVIEW

FUELIowa has been on the move throughout 2021. As COVID-19 lessened throughout the year, our association was able to return to normal activities. Here is a recap of what FUELIowa has been up to throughout 2021:

2021 opened with a highly active legislative session for FUELIowa. Even with COVID-19 complicating things, we were present at the Capitol and in conversations with legislators in their districts across the state. We relentlessly advocated on behalf of our members, and there were certainly many issues of interest. Bottle bill reform was on the table once again during the 2021 legislative session. While no substantial bills were passed, the session took us one step forward in the reform process. Other issues, like underground storage tank regulation, also raised their heads for a brief period. But the issue that took up the most 4 4

amount of time and effort was a proposed bio-fuel mandate. FUELIowa immediately jumped into the fight, flagging our concerns about the business closures and price increases that a mandate would bring. FUELIowa formed and led the Fuel Choice Coalition, a coalition representing the full spectrum of liquid fuel retailers and distributors alongside consumers and free market advocates to battle against the mandate. With much effort, and the help of some key allies in the legislature, the legislative session ended without the mandate passing. Since then, FUELIowa has continued to be a voice at the table advocating for sensible policies to further biofuel consumption across the state.

In June, FUELIowa was able to get back into event rhythms that COVID-19 disrupted. FUELIowa members turned out, with 120 golfers in attendance at our 2021 Annual Golf Benefit, setting a new record for Camp Courageous fundraising. Together, we raised $30,000 to support a wonderful organization. Iowa Hawkeyes’ Head Football Coach Kirk Ferentz and several of his players joined us for dinner and the event. We appreciate their continued support of Camp Courageous.

– Dubuque), and Representative Ross Paustian (R – Walcott) as champions of Iowa’s fuel industry. This year was the first time our association has distributed such awards, which highlight the relationships built in the State Capitol and the efforts of legislators aligned to our organization’s policy goals. FUELIowa was pleased to recognize these legislators and looks forward to future collaboration.

Following the trend of events returning post-COVID-19, Summerfest returned in July of 2021. After taking a year off during the pandemic, the event returned better than ever, with more than 100 attendees joining us in Okoboji. The weekend brought thoughtful conversation between members, an informative session with staff from our Congressional Delegation, and some fierce (but friendly!) competition, with many members competing in our bags and golf tournaments.

FUELIowa members banded together to “Round Up for Camp Courageous.” This was a new fundraising idea where consumers could round up their purchases at the pump or in-store and donate that money to the camp. The round up took place from November 21st through the 27th.

FUELIowa representatives attended numerous events with the Republican Party of Iowa throughout the year. We appreciate every opportunity our membership receives to connect with our elected officials. 2021 has been an excellent year for FUELIowa, and there is still more to come. But as we close out 2021, we can celebrate a great year and look forward to a fantastic 2022.

FUELIowa was able to gather in person for our annual meeting in Iowa City. During the meeting, our organization recognized Senator Adrian Dickey (R – Packwood), Senator Pam Jochum (D F U E L I O WA // w w w. F U E L I o w a . c o m

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Acceleration, Adaptability, Opportunity, and Agility in the Fuel Industry

By Ronald N. Langston, President & CEO, FUELIowa

This October, representatives of FUELIowa attended the NACS (National Association of Convenience Stores) trade show in Chicago, Illinois. This show ran from October 5th through October 8th, 2021, and all four days were packed to the brim with breakouts, events, and exhibitions beneficial to our industry. The FUELIowa team greatly benefited from attending the conference. FUELIowa representatives also attended the Energy Marketers of America (EMA) Fall Meeting of Association Executives. This meeting was also hosted in the Chicago area. Ronald N Langston, President and CEO of FUELIowa, found the meeting extremely valuable and returned to Iowa with notes he wanted to share with our membership: “The Energy Marketers of America held a joint session for state fuel association executives on Monday, October 4th, 2021, at the Intercontinental Hotel in Chicago, Illinois. The message was titled: ‘Managing Acceleration, Adaptability, Agility and Opportunity.” “A key part of the discussion focused on an industry update by

panelist Dr. Henry Armour, President and CEO NACS. Dr. Armour noted there are strategic issues of importance to the fuel industry nationally: advances in technology, COVID-19, O2O (office to online), climate change, and a focus on governmental incentives.

profits were up 5 percent overall, with a 14.6 percent growth in credit card fees. Fuel volume was down 7 percent; however, merchandise and food services products saw a positive change upward. Overall direct store operating expenses were slightly down, all margins were slightly down, but sales overall were up.

titled “Three Retailers on Resiliency & Keynote Kendal Netmaker.” Days three and four ran similarly, with their general sessions titled respectively “Reinventing Convenience and Reimagining our Future” and “Ideas 2 Go Video and Panel Discussion.”

“The panel emphasized the fuel industry must focus on managing issues of acceleration, adaptability, agility, and opportunity. Panel discussions were held on COVID-19 rapid response, the political landscape for climate centric electric vehicle policy, and process gouging legislation and enforcement. “There was an update on federal legislation, the virtual day on the hill, and state association advocacy programming. “On Wednesday, October 5th, there was a robust discussion regarding mutual interests and concerns from members of the North Central state association executives. FUELIowa comments focused on the need to jointly oppose fuel mandates, support incentives and increased infrastructure funding.” Day one of the NACS conference featured pre-conference workshops and educational sessions.

“The session noted the business year for the industry was very profitable despite COVID-19, with instore transactions outpacing sales at the pump. Wages and F U E L I O WA // w w w. F U E L I o w a . c o m

There was also an opportunity to visit the “Cool New Products Preview Room” and learn about products hitting the market. The conference officially opened in the evening with a welcome session featuring Jennifer Powers, a coach, speaker, and best-selling author. The second day of the conference brought more product reviews, exhibitions, and educational sessions. It also included a general session

D o u g C o z i a h r, Chairman of FUELIowa representing our members at the NACS Conference.

Overall, the FUELIowa delegation participation was found to be of great value and time. All fuel retailers and industry stakeholders across the nation face similar challenges to our industry here in Iowa. Networking, making connections, and taking the opportunity to learn was beneficial for our team and will benefit our association. The conference will be moving to Las Vegas next year, October 1st through 4th, 2022. If you are interested in attending, mark your calendars, and keep an eye out for registration!

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BE P RE PA RED F O R M E DI A OP PO RT U N I T IE S DUR I N G LEG ISL A T I V E S E S S I O N MEMBER FEAT UR E

By Strategic Elements

On Tuesday, November 9th, Strategic Elements, public affairs and communications consultants for FUELIowa, hosted a media training for roughly 25 FUELIowa members. The training offered guidance for the various media opportunities that arise, particularly during the legislative session. While the training covered a range of subjects, the following advice on interviewing will be beneficial for FUELIowa members:

INTERVIEW PREPARATION

First of all, whether this interview is spearheaded through FUELIowa and Strategic Elements or if a reporter directly reached out to you, researching before agreeing to the interview is essential. What is the story topic? Are you one of several sources or the only source? When is the reporter’s deadline? You can also always ask for sample questions or parameters for what topics are to be covered. Preparing adequately before the interview will not only make for a better discussion but will boost your confidence as well. A great place to start is identifying the three key talking points you want to communicate during the interview. It 12

Rehearse your talking points, and make sure you know where the numbers you are sharing can be found. Practice until you’re ready! You may even want to record yourself practicing and watch it for further feedback.

still, and keep your gaze focused on the direction specified by the reporter. For radio, stay close to the microphone; if interviewing from home, keep your phone close to your face and find a quiet spot to talk. If you conduct your interview via computer, be mindful about finding a non-distracting background in a place with a strong internet connection.

DURING THE INTERVIEW

POST-INTERVIEW

is essential to practice once you know what the discussion is about and what you want to say.

During the interview, stay on message. Do not allow yourself to be pulled into a debate on topics you are not there to talk about or to talk on behalf of another party. Pivot back to your talking points – you are in control of what you talk about during this interview. Stay calm and relaxed – you always have room to slow down the speed you are talking. Take a few deep breaths, stay focused, and slow down. Nonverbally, there are some essential things to do during an interview as well. Dress appropriately for the context, and aim for darker and solid (not small patterned like checks or fine striped) clothing that will show up well on camera. Hold

After the interview, there are some things you can do to help develop the best possible outcomes from your interview. You can offer to fact-check the story before it goes live and request a copy of the interview before it is public. If it is a positive story, offering to send the reporter other photos, videos, and content that may help support the story is always a good idea. You will also want to confirm with the reporter the spelling of all names (both individuals and businesses) and word-for-word titles to make sure they are accurate.

OTHER TIPS FOR INTERACTING WITH REPORTERS

Automatically assume everything you say, everything visible on

location (like papers on your desk) or emails you send to this reporter will be considered on the record. Practicing this rule of thumb will ensure that you don’t say or show anything to a journalist you should not. The tips and tricks covered within this media training will be handy to our membership as we grow nearer to the beginning of the legislative session. Several attendees on the webinar were recognized as having conducted interviews regarding the biofuel mandate last legislative session. The opportunities to speak about the mandate and other issues facing our industry will also be firmly in place in this cycle. To learn more about these tips and other topics covered within the training, or to receive a recorded copy of the training, please contact FUELIowa’s Jim Ewing at jim@ fueliowa.com. Please also reach out if you are interested in going through this training yourself or if you have a media request come in from a journalist so that our team can assist you.

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FMCSA ’S N EW E NT R Y - L E VE L D R I V ER T RA IN I NG R U L E AP PR OA CH I N G R EGU L ATORY F EAT UR E

By John Maynes, Regulatory Affairs M a n a g e r, FUELIowa

Originally scheduled to take effect on February 7, 2020, the implementation of the Federal Motor Carrier Safety Administration’s Entry-Level Driver Training Rule was subsequently delayed until February 7, 2022. The COVID-19 pandemic played a critical role in the delay of the rule and the rule comes at an inopportune time as the overthe-road trucking industry struggles with a growing shortage of drivers. Effective February 7, 2022, the Entry-Level Driver Training Rule mandates new baseline standards for drivers applying for their initial CDL, drivers upgrading their current class of CDL, or those CDL drivers obtaining endorsements for hazardous material, school busses, or passenger endorsement. Under the Entry-Level Driver Training Rule, a prospective CDL driver will be required to complete program curriculum prescribed by rule which includes a program of theory and behind-the-wheel instruction from an accredited provider registered publicly with the FMCSA. Accredited entities 16

registered with the FMCSA will be listed in a forthcoming public registry managed online by the FMCSA called the Training Provider Registry (TPR). To obtain accreditation, training providers will apply through the FMCSA’s TPR and will be listed in the registry if all elements of the FMCSA’s training curriculum are satisfied. Prospective CDL candidates and CDL candidates planning to upgrade a CDL license to include a hazardous material endorsement should search the TPR prior to starting any coursework with a training provider. Once again, only CDL curriculum providers listed on the publicly available TPR by FMCSA serve as accredited training providers. The Entry-Level Driver Training Rule mandates an applicant complete an approved program of theory and behind-the-wheel instruction from an accredited provider prior to taking the CDL skills test. Theory instruction encompasses knowledge instruction on the operation of a commercial motor vehicle through mediums like lectures, simulation, online training, and

other means. The final rule requires certain topics to be covered under five general categories:

Basic Operation: Orientation; Control Systems; Pre-trip and Post-Trip Inspection; Basic Control; Shifting; Backing; Docking; For Class A CDLs only, Coupling and Uncoupling.

Safe Operating Procedures: Visual Examination; Speed; Space; Night Driving; Communications; Driver Distractions; Driving Conditions.

Advance Operating Procedures: Hazards; Skid Controls/Recovery/ Jackknifing; Railroad-Highway Crossing.

Vehicle Systems and Reporting

Malfunctions: ID and Diagnosis for Malfunctions; Roadside Inspections; Maintenance.

Non-Driving Activities: Handling/ Documenting Cargo; Environmental Compliance; Hours of Service; Fatigue and Wellness; Post-Crash Steps; Whistleblower Claims; Trip Plans; Substances of Abuse Regulations; Medical Certificates and other requirements; External Communications.

behind-the-wheel curriculum is based solely upon the discretion of the instructor administering the curriculum. CDL applicants seeking a hazardous materials endorsement will be required to complete theory instruction curriculum

reporting; release response requirements; loading and unloading; railway grade requirements; tunnels; route planning and safety; hazardous materials safety permits; tires; fueling; emergency response procedures; bulk packages, hazardous materials, and passenger vehicle safety.

Applicants will be required to meet a minimum score of 80% on the theory assessment curriculum to achieve a passing score. Behind-the-wheel instruction for Class A and B CDL applicants will be required to be administered in a vehicle of the same class or type in which the applicant plans to operate in commerce. The instruction associated with behind-the-wheel training does not specify a minimum number of hours, however, instructors will be required to document the total hours each applicant applies to their completion of behind-the-wheel curriculum. Behind-the-wheel instruction must involve the following behind-thewheel training related topics: • Vehicle inspection; parallel parking, blindside and sight side; straight line backing; alley dock backing; offset backing; coupling; uncoupling; vehicle controls; shifting/transmission; communications and signaling; visual searches; speed and space management; safe driving; hours-of-service regulations. The successful completion of the F U E L I O WA // w w w. F U E L I o w a . c o m

specific to the safe transport and handling of hazardous materials. CDL applicants pursuing a hazardous material endorsement can expect to see the following required topics included within hazardous material specific theory instruction: • Hazardous material regulatory requirements; operational hazardous material requirements; hazardous material accident

Once again, the successful completion of theory instruction is measured by a minimum passing score of 80 percent. A CDL applicant successfully completing training administered by a training provider listed on the FMCSA’s TPR will have their provider submit their training certification through the TPR. By midnight following the second business day after the trainee completes the 17

required training curriculum, the training provider is required to submit a completed training certification document through the Training Provider Registry website.

• Records of individual entry-level driver assessments.

providers receiving accreditation through the TPR.

• Training Provider Registration Form.

The following documents will be required to be retained by training providers through the TPR:

• Records shall be kept by training providers for three years.

As a reminder, the requirements associated with this rule take effect on February 7, 2022 and are applicable to drivers applying for their initial CDL; drivers upgrading their current class of CDL; or those CDL drivers obtaining a hazardous material endorsement, school bus endorsement, and a passenger endorsement. Applicants applying for a CDL prior to February 7, 2022, will want to consider completing their CDL training prior to the implementation of the new rule and its requirements.

• Applicant self-certifications for approved applicants certifying compliance with applicable regulations. • A copy of the driver-trainee’s commercial learner’s permit. • Documentation of instructor qualifications. • Lesson curriculum in the areas of theory instruction and behind-thewheel training.

Currently, the FMCSA’s Training Provider Registry does not allow access to search for training providers successfully registering with the online database. FUELIowa will be working closely with state regulators and our national association the Energy Marketers of America to provide the FUELIowa membership with timely updates on the implementation of FMCSA’s new Entry-Level Driver Training Rule. FUELIowa anticipates more information to become available soon, including a list of Iowa specific training

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F UEL IOWA 2 0 2 2 LEGISLA T IV E S E S S I ON KEY D A T ES MEMBER N EWS

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

The leaves are turning, and we are starting to feel that chill in the air. That can only mean one thing – the 2022 Legislative Session is approaching, and it is time to put some key dates on your calendars.

The FUELIowa Annual Member Meeting is our kick-off to the year on January 11th at the Downtown Hilton starting at noon. Join us for lunch and network with industry leaders, followed by a great agenda including guest speakers, awards and a discussion on the strategic direction and priorities of FUELIowa.

This meeting is a terrific opportunity to hear from FUELIowa’s Board of Directors, meet fellow members, and learn how to get more involved in key initiatives that impact our industry. Most importantly, you will receive a Legislative Briefing from Marc Beltrame, FUELIowa’s Lobbyist, laying out our key priorities and issues we expect to face in the 2022 Legislative Session. The briefing will prepare you for the 2022 Welcome Back Legislative Reception immediately following the Annual Meeting. The 2022 Welcome Back Legislative Reception immediately follows our Annual Meeting from 5 pm – 7 pm at the Embassy Suites Downtown. The reception is sponsored by FUELIowa, Iowa Institute for Coops, Iowa Association of Electric Cooperatives, Iowa Bio. Org and the Iowa Communications Alliance. This reception is a long-standing tradition and well attended by legislators and industry leaders.

This reception provides a wonderful chance to meet or re-connect with your legislators and share FUELIowa’s key priorities for the upcoming session. The reception includes refreshments, cocktails, and appetizers in a relaxed setting. We strongly encourage all FUELIowa members to attend and show the strength of our association across all counties of Iowa. There is no cost for FUELIowa members to attend either event, although FUELIowa PAC donations are welcomed. You will need to register for both events, which you can do by visiting FUELIowa.com or by calling FUELIowa’s Jim Ewing at 515-421-4596.

Our 2022 Legislative Lunch and Learn schedule has been set. We will be hosting five lunch and learns around the state during the 2022 Legislative Session. Our Lunch and Learns attract local legislators to learn about our industry and hear directly from their constituents right in their backyard. We discuss how critical pieces of legislation will impact the local communities they serve and have a dialog on issues important to each legislator. Each event is from 11-1 and includes lunch. It is essential for FUELIowa members to attend to ensure a strong, grassroots advocacy program.

2022 LEGISLATIVE LUNCH & LEARN SCHEDULE Friday, January 28th: Council Bluffs The Gathering Space

There is no cost for FUELIowa members to attend, but you need to register by going to FUELIowa.com or calling Jim Ewing at 515-421-4596.

Friday, February 4th: Riverside/Iowa City Riverside Casino Friday, February 11th: Carroll Hotel Carrolton Friday, February 18th: Dubuque Hotel Julien Friday, February 25th: Spencer Clay County Fairground

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C AL END AR O F EV EN T S

JANUA RY 11 , 2 0 2 2

JA N -FEB , 2 0 2 2

APRI L 1 8 -2 0 , 2022

ANNUAL MEETING &

LEGISL ATIVE

UPPER MIDWEST

LEGISL ATIVE RECEPTION

LUNCH & LEARN

CONVENIECE STORE &

Des Moines, IA

Locations Vary

ENER GY CONVENTION

FUELIowa's Annual Meeting is our

Get caught up on the latest at the

signature kick-off event focused on

Iowa Statehouse, be better prepared

priority issues, advocacy, policy trends,

for Federal and State policies that

and association initiatives. It is followed

affect your business, and hear directly

by FUELIowa's Legislative Reception,

from some of Iowa's state legislators.

St. Paul, MN

which is a great way to touch base with legislators from across the state in a fun and relaxed setting. Be sure to join us to show our united voice, "together, we Fuel Iowa!"

Jan 28 Council Bluffs Feb 4 Riverside/Iowa City Feb 11 Carroll Feb 18 Dubuque Feb 25 Spencer

UMCS is simply the best trade show, networking, and educational event for the Fuel and C-store industry in the Upper Midwest. With the combined power of the state associations of both Minnesota and Iowa, UMCS is the largest show in the Upper Midwest, bringing more than 2,000 professionals together in a fun and relaxing atmosphere.

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

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SUMM ER S A L E S O F E15 – W H AT ’ S N E XT ? FUELIowa members are the pioneers of ethanol marketing. Because of your commitment to the sale and marketing of highblend ethanol offerings such as E15, FUELIowa members are often asked to wade into the grey areas of the law while pushing forward the advancement of high-blend ethanol sales. Examples of this issue include Iowa’s adoption of a UST system compatibility checklist for the safe dispensing of ethanol blends beyond E10 and Iowa’s position on the sale of E15 during the EPA’s summer ozone season from June 1 – September 15. Both issues saw Iowa act years in advance of any federal rules on the respective subjects only to have the federal government act years after implementation in Iowa. Despite the uncertainties associated with E15, FUELIowa members belief in ethanol and its benefits for Iowa’s farmers and economy has motivated fuel retailers and fuel distributors to invest time and money into the advancement of ethanol offerings at retail locations 24

and in the minds of consumers.

overcome the plain text.”

In Iowa alone, the estimated 251 retail locations offering E15 have invested hundreds of millions of dollars into the sale and marketing of E15. Many more retailers are in the planning stages of major investments into their retail infrastructure to jump into the E15 market. President Donald Trump signed an executive order in 2019 paving the way for Reid Vapor Pressure (RVP) parity between E10 and E15 during the summer months. The Environmental Protection Agency followed with a rulemaking extending the one PSI RVP waiver previously granted for E10 to also include E15. At last, the summer ozone season limitation on sales of E15 appeared to be solved.

Not only was the strong opinion issued by the court a crushing blow to future appeals of the decision, but the ruling handed down by the court also created great uncertainty for retailers offering E15, slowing down the momentum of those looking to jump into the game. Fortunately, no immediate injunction was issued against summer sales of E15. However, retailers quickly turned their focus to the summer driving season in 2022 and what the court ruling means for the future of E15.

Predictably, following the final rulemaking promulgated by EPA, oil industry stakeholders filed suit against the EPA challenging the finalized version. On July 2, the United States Court of Appeals for the District of Columbia Circuit reversed the rulemaking on a 3-0 vote. The panel of federal judges for the D.C. Circuit ruled the legislative text in the law underwriting the nation’s biofuel mandate is insufficient to support a regulatory waiver authored by the Trump Administration that allowed E15 to be sold during the summer driving season. In the opinion authored by Circuit Judge Judith Rodgers, the court said the legislative history “is silent” on why Congress opted to use language specifically citing a 10 percent blend, and “the ambiguous history hardly suffices to

With Iowa and its surrounding states all overwhelmingly classified as ozone standard attainment areas under the Clean Air Act, the nine PSI gasoline supplied by refiners to these markets cannot be blended into E15 without exceeding summertime federal RVP limits. Extending the one PSI waiver granted by Congress to E10 to also include E15 was a critical piece of the puzzle. Following the court ruling, E15 had only two pathways to summer sales in conventional gasoline markets. The most efficient avenue is Congressional action. Unfortunately, the current state of Congress is dysfunctional at best and the likelihood of Congress reaching agreement on E15 is unlikely. A Congressional compromise on E15 would require negotiation between major ethanol and oil stakeholders involving E15 on one side and the Federal Renewable Fuel Standard on the other side. It is highly unlikely any compromise could be

reached anytime soon and more unlikely by the start of EPA’s summer ozone season in 2022.

With Congressional action on E15 unlikely, E15 sales in Iowa during EPA’s summer ozone season in 2022 were left with only one option. Under the Clean Air Act (CAA), Section 211(h)(5) of the Act establishes that upon the request from the Governor of a State, the Administrator of the EPA shall apply volatility limitations to gasoline-ethanol blends that exclude the benefit of the one-pound PSI RVP waiver provided to E10 in Section 211(h)(4). On November 4, Iowa Governor Kim Reynolds and her colleagues from Minnesota, Missouri, North Dakota, South Dakota, and Wisconsin signed a letter addressed to EPA Administrator Michael Regan requesting guidance regarding the F U E L I O WA // w w w. F U E L I o w a . c o m

process for securing an exclusion from the one PSI ethanol waiver currently in place for E10.

make a business decision best suited for their business model.

If Governor Reynolds and her colleagues move forward with their request and EPA Administrator Regan grants the request for exclusion from theone PSI ethanol waiver for E10, all gasoline sold in Iowa will be limited to a maximum RVP of nine PSI with no exceptions. Because the addition of ethanol to a gallon of gasoline increases the RVP of the gasoline gallon by approximately one PSI, refiners will need to weigh the costs and benefits associated with changing their refining process to refine 7.8 PSI gasoline suitable for blending with ethanol in Iowa.

While a successful petition to the EPA for exclusion from the 1 PSI waiver re-opens the door for E15 sales during the summer months, a successful petition is likely to come at a steep price for Iowa businesses and Iowa consumers. Using the Kansas City market as a reference, during Kansas City’s now defunct 7.8 PSI gasoline standard, 7.8 PSI gasoline was $.08 cents per gallon (CPG) more expensive than its 9.0 PSI counterpart. A $.08 CPG increase to the raw cost of gasoline equates to a $126 million overall increase to the cost of gasoline paid for by Iowa’s businesses and consumers.

The response of refiners to the request made by Governor Reynolds and her colleagues to EPA Administrator Regan remains unknown. If approved, the petition positions Iowa as an outlier in an otherwise predominantly fungible United States gasoline distribution system. The nearest markets where 7.8 PSI gasoline is currently available are Chicago and St. Louis, and neither supply source is connected to Iowa via an existing petroleum product pipeline. The nearest market connected to Iowa via pipeline infrastructure where 7.8 PSI gasoline is available is Denver, Colorado.

Additionally, a successful petition for the further regulation of gasoline calls into question the future stability of gasoline supply shipped into Iowa. It’s highly unlikely that all refiners will continue to ship gasoline destined for Iowa and other petitioner states after assessing the economic impact of the regulation on their business. The unintended costs associated with major gasoline supply shortages to the state or region are unquantifiable but real, and will be born by Iowa business and consumers.

If Governor Reynolds and her colleagues choose to move forward with their petition, refiners will have to adjust their refining process to produce adequate supplies of both 7.8 PSI gasoline and 9.0 PSI gasoline at their refineries. Additionally, storage capacity will have to be adjusted at both refineries and pipeline terminal facilities. Like any business, refiners will assess the costs associated with the mandated government regulation and

FUELIowa remains supportive of a Congressional pathway to summer sales of E15. We will continue to work with Governor Reynolds and her staff throughout the petition process. In the end, all parties share the common goal of finding a pathway for the sale of E15 in the summer months and furthering Iowa’s position as the nation’s leader in the production, sale, and marketing of biofuels.

2 0 2 1 PA C C O N TR IBUT O RS CONTRIBUTIONS RECEIVED AS OF Nov. 15, 2021

VISIONARY ($5,000+)

$12,160 Bev & Henry Jessen, Cylinder Express * $10,170 Don Burd, Otter Creek Country Stores*

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

$3,800 Ronald N Langston, FUELIowa ^ * $2,800 Jason McDermott, McDermott Oil * $2,600 Tessa Fahey, Rainbo Oil * $2,600 Todd Kanne, Community Oil * $2,500 Paul Fahey, Rainbo Oil * $2,500 Dave & Clifford Reif, Reif Oil *

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

$2,000 Larry Bentler, Jet Gas $2,000 Mike & Dean Cox, Kardes C-Stores $1,500 John Gilroy, Grysson Oil $1,500 Steve Kimmes, Kimmes Enterprises $1,350 Doug Coziahr, Nebraska Iowa Supply $1,300 Joe Zietlow, Kwik Star ^ * $1,001 Keith Crandall, KC Mart $1,000 Frank Bradley, ET Products $1,000 Mark Cobb, Cobb Oil $1,000 Tom Flogel, Mulgrew Oil $1,000 Jennifer Likes, Harms Oil ^ $1,000 Aaron McDermott, McDermott Oil $1,000 Dan Moellers, CSOI Corporation $1,000 Mark Molo, Molo Petroleum $1,000 Matt Scheetz, The Depot Express $1,000 Don Zietlow, Kwik Star $1,000 Marc Beltrame, Beltrame Law Firm $1,000 Terry Hovden, Hovden Oil

FRIEND ($500-$999) $800 Seth Rotermund $700 Gordon Hagen $550 Thomas Burd $550 Jim Pauk $500 Steve Demmer $500 Tia Eischeid $500 Glenn Hasken $500 Nicole Johnson $500 Richard Weiner $500 Delone Wilson $500 Andrew Woodard

Donate at: www.fueliowa.com/donate-to-pac.cfm ^ Sustaining Member * Fuel Marketer Program 26

$500 Randal Woodard $500 Travis Buhman $500 Dick Metzger $500 Mark Lincoln $500 Brad/Laura Taylor

CONTRIBUTOR ($0-$499) $400 Lisa Abens $310 John Maynes $300 Steve Loehr $300 Gerald Stewart $300 Joseph Miller $300 Pat Bresnahan $275 Brian Beers $250 Russ/Barb Danielson $250 Rod Gittins $250 Michael Stanton $200 Sam Annis $200 Rick Gappa $200 Chad Besch $150 Eric Ziph $150 Gerald Bogler $100 Jim Bocken $100 Ace Ettleman $100 Jim Ewing $100 Gerry Greve $100 Charlie Good $100 Craig Kiracofe $100 Gary Koerner $100 Reo Menning $100 Thomas Pearson $100 David Scheetz $100 Dean Onken $100 John Meehan $100 Teresa Hunt $100 Tom/Linda Fuller $100 Trent Hepler $100 Aaron Ezzio $100 Chris Irlbeck $100 Colin Tiefenthaler $100 Dan Toale $100 Randy Morriss $100 Scott Struck

FUELIOWA PAC CONTRIBUTION CARD

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 ro m a b o v e a d d r e s s)

__________________________________________________ Signature_________________________________________ Date______________________________________________ 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 NE W FU ELIOWA M E M B E R S

Southern Glazer’s Wine of Iowa The pre-eminent distributor of beverage alcohol, and proud to be a multi-generational, family-owned company with a vision to be the distributor of choice for customers and suppliers. NGL Supply Wholesale, LLC NGL delivers a reliable supply of natural gas liquids, including propane and butane, sourced from twenty-six state-of-the-art proprietary terminals, dedicated pipeline systems, and refineries throughout the US.

SHELL TO ACQUIRE TIMEWISE STORES & ESTABLISH FOUNDATION TO GROW COMPANY-OWNED NETWORK IN U.S.

Shell Retail and Convenience Operations LLC, a subsidiary of Shell Oil Products US, has signed an agreement to acquire 248 company-owned convenience stores and gas stations from the Landmark group of companies. The c-stores operate in Texas under the Timewise brand. Supply agreements with an additional 117 independently operated fuel and convenience sites are also part of the acquisition. The addition of more than 2,000 Landmark team members serves as the foundation that will enable Shell to grow its company-operated network in the United States. As one of the largest fuels and convenience retail markets globally, growing in the U.S. gives Shell the opportunity to build on its successful brand presence and leverage the strength of its ongoing business relationships, the company said.

YESWAY ANNOUNCES PROPOSED INITIAL PUBLIC OFFERING

Yesway announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission ("SEC") relating to the proposed initial public offering of its Class A common 28

stock. Application has been made for listing the Class A common stock on The Nasdaq Global Select Market under the ticker symbol "YSWY." The number of shares to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering. The proposed offering will be made only by means of a prospectus.

HY-VEE DEPLOYS INTEGRATED PLATFORM TO SUPPORT VARIOUS CUSTOMER TOUCHPOINTS

Hy-Vee Inc. completed the rollout of GK Software's OmniPOS TransAction+ Payments and Drive forecourt solutions across all its convenience stores. Hy-Vee utilizes the integrated platform to support a variety of customer touchpoints, including traditional point of sale (POS), self-checkout, fuel, payments, curbside pickup, and more. "We're always looking for ways to provide convenient, cutting-edge customer service on the forefront of such a competitive and evolving retail landscape," said Luke Tingley, chief information officer and senior vice president at Hy-Vee. "Our goal is to implement a flexible and agile

platform in store and at the pump to make our locations the most convenient destination for customers."

CASEY'S & IRI EXPAND, ENHANCE DATA SHARING PARTNERSHIP

Casey's General Stores Inc. and IRI are expanding their point-of-share (POS) data sharing partnership to include frequent shopper loyalty program data from Casey's Rewards, which has more than four million members.

Casey's POS and loyalty data will be integrated in a new collaboration portal that will arm the convenience retailer's merchants and supplier partners with the data and insights needed to create a differentiated product assortment. This includes where the right products are optimally placed, priced and promoted to drive traffic, revenue and profitability, according to the companies.

and we are excited at the new market opportunities it will allow us to unlock in the future," said Tom Brennan, chief merchandising officer of Casey's. "We look forward to building upon our relationship and introducing this powerful portal so we can collaborate with our suppliers more effectively and efficiently as we generate new opportunities for growth."

"IRI's data and analytics have helped us enhance our capability to be even more relevant, engaging and convenient for our guests,

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RI SK M A NAGE M E NT By Risk Improvement Department, EMC Insurance Companies, Des Moines, Iowa

4 Wa ys t o P re v e n t W i n t e r S l i ps wit h Fl oo r M a t s Icy and snowy conditions can easily lead to slips, trips and falls— both outdoors and indoors. Consider floor mats your first line of defense in preventing these types of incidents on your premises.

Choose the Right Kind of Mat to Prevent Slips Whether you rent or own your floor mats, selecting the right variety is key. Mats with a slip-resistant backing are preferable because they’re less likely to shift or bunch. To get the same effect on existing mats, spray a thin layer of pressure-sensitive adhesive on the underside. Depending on budget and preference, you could opt for disposable, adhesive-backed mats that can be cut to size and don’t buckle, or high-performance mats that last longer and perform better. You can also add water-absorbing mats in areas prone to drips and spills, like water fountains and drink dispensers. Make sure to have spare mats as well. Wet or worn mats will need to be changed out for fresh ones. 30

Pick the Best Place for Floor Mats Building points of entry should have three lines of defense: a scraper mat, a combination scraper/wiper mat and additional wiper mats as needed. Each of these mats is critical to preventing water and dirt being tracked into buildings. Scraper mats help remove snow, slush and dirt from shoes. Combination scraper/wiper mats remove excess moisture, while additional wiper mats catch remaining contaminants. The walking distance across these entrance mats should be 20 feet at minimum. All mats should create a smooth, level walking surface with minimal gaps and overlaps. Use pressure sensitive adhesive or edge taping to secure mats in place.

Maintain Your Mats Floor mat maintenance is not a one-off event. It must be kept up consistently to make sure mats don’t become hazards themselves. Establish a routine for checking your mats. EMC recommends daily inspections, as well as more frequent ones for heavy traffic areas. Snowy, wet conditions also warrant more vigilant inspections.

Inspection checklists can help your employees understand what to look for when reviewing mat placement and condition. Potential hazards include curled or torn edges, worn face material, buckling, soiled or saturated mats and mats that are out of position. Employees should know how to report these unsafe conditions and respond to them.

Know How to Clean Floor Mats During colder weather, people entering the building bring in ice melt residue, snow, sludge and other debris on their shoes. Regular cleaning helps keep mats in top condition. Mats should be vacuumed to remove surface debris or extracted to remove excess water. They should also be deep cleaned routinely with a commercial carpet extractor to protect the backing and extend their life and performance. For more information, go to www. emcins.com and select Loss Control.

THANK YO U SP O NSO RS

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

PRESORTED STANDARD U.S. POSTAGE

PAID

1 0 4 3 0 N e w Yo r k Av e S t e F

DES MOINES, IA PERMIT NO. 1988

Urbandale IA 50322

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1-866-433-RINS (7467) info@rinalliance.com www.rinalliance.com 32