What’s Dominating the Discussion on Capitol Hill in 2013? Pros & Cons of RFS. Some support repeal, some seek modification, others want RFS to stay intact & let the marketplace develop around it. Immigration Reform. Senate Passed. Farm Bill Reauthorization. Senate Passed. House Failed First Vote, Passed Second.

Challenges with the RFS Many groups are pressing Congress to repeal or revise the RFS. House & Senate Committees are reviewing. PMAA Board: supports a regulatory RFS adjustment. Urging EPA to adjust the corn-based ethanol mandate to a level achievable with E10 & reasonable growth for E85. E-15 has too many infrastructure, liability & marketplace issues to significantly expand national ethanol blending volumes in the short run. PMAA does not oppose E-15 but advises marketers to obtain knowledgeable legal & regulatory counsel before offering E15 at wholesale or retail. Lastly, with nearly all the automobile manufacturers expressing misgivings about E-15, most retailers are reluctant to offer it. We have provided significant responses to the House Energy Committee on a series of White Paper RFS related questions.

 EPA has removed most federal regulatory barriers standing in the way of bringing E-15 to retail consumers.  The “Domestic Fuels Act,” was re-introduced – H.R  Would provide an improved legal & regulatory pathway for marketers to sell E-15.  Congress no longer views ethanol as the super fuel that it once did – an ethanol blender’s credit will not be reinstated for 2013.

Proposed UST Regulations  2011, EPA Office of Underground Storage Tanks announced proposed revisions to1988 UST regulations. Tremendous burden on marketers. $1.5 Billion Annual Cost.

The Rule Would Mandate:  Secondary containment for new & replaced tanks & piping.  30-day UST system walkthrough inspections.  Under dispenser containment.  Integrity testing & monitoring for interstitial spaces,  Regularly scheduled testing & inspection of spill & overfill prevention equipment.  Procedures for determining compatibility of UST systems with alternative fuels.  Documentation requirements for ownership transfer of UST systems.

Industry Response to EPA  PMAA’s UST Task Force submitted comments - cost estimates too low.  Task Force submitted our data on compliance costs.  Our data shows -- proposed rule would impose $6,960 in annual compliance costs, not the $900 EPA estimate.  Proposed rulemaking is pending.

PMAA Leads Congressional Action To Mitigate $1.5 Billion Annual Cost  PMAA initiated & coordinated efforts to send congressional letters to EPA:  Senate Small Business Committee letter from your Ranking Member, Jim Risch (R-ID) & Chairwoman Mary Landriuex (D-LA).  House Small Business Committee letter. Chair, Sam Graves (R- MO) & Ranking Member Nydia Valezques (D-NY).  A House “Dear Colleague” with 58 signatures.  Small Business Committee letters ask for cost review before finalizing rule. “Dear Colleague” asks EPA to withdraw rule and start over.

Use of Food Stamps at Convenience Stores  Proposed Change: Senate passed a Farm bill that includes language that would give USDA authority to preclude c- stores from accepting food stamps if it accepts tobacco, hot food products & alcohol. Not in Farm bill that passed House, but may bring up separately.

Industry Response to Hill  PMAA is working with like-minded associations to remove this provision when it gets to House-Senate Conference Committee.

NORA Authorization  Bipartisan legislation has been reintroduced. HR 1985 & S 913 will promote oilheat efficiency, research & education by reauthorizing & making technical corrections to the NORA Alliance Act of  To date your efforts have garnered 25 House &13 Senate cosponsors.

PMAA Disaster Planning and Response Task Force  Genesis: The number of natural disasters is increasing. PMAA involvement in Super Storm Sandy response. Inefficiencies. Need for governmental change. Need for information and models for states.

PMAA Created Task Force  Marketers are at ground zero when a crisis emerges. Through our combined experiences we see room for improvement in efficiencies.  Goals:  Provide consumers with gasoline, diesel, propane & heating fuel as quickly as possible in emergency situations by addressing Federal, State & local jurisdictional issues.  Help state associations have effective fuel distribution plan in place for use before, during & after a disaster hits.

 Numerous Federal changes are needed. We have submitted recommendations to the White House and have held numerous meetings with key Administrative staff.  PMAA has a seat on newly created Administration priority – Emergency Response Center.  We will staff DOE/DHS central command “war room” during a national disaster.

Keystone XL Pipeline We Want it.

Energy Policy  Climate Change/Carbon Tax -- We don’t want $ increases.  Energy Subsidies -- We want some credits.  Tier 3 Gasoline -- We don’t want it.  Funding for Refinery Outage Coordinator -- We want.

Public Policy  Health Insurance  Swipe Fee Reform  Menu Labeling  Futures Market Reform

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