MPCA NEWS . ONLINE  .  

Missouri Petroleum Marketers and Convenience Store Association (MPCA)

205 East Capitol Avenue, Suite 200      Jefferson City, MO 65101

573.635.7117  phone      573.635.3575  fax      www.mpca.org      © MPCA 2008

Petroleum Marketing and Convenience Store News from MPCA

 

 

MAY 12, 2008

 

1. MPCA Golf Tournament & PAC Fundraiser: June 2, 2008. 

 

*Only 136 Golfers Have Registered To Date, & We Usually Have 175+! Term Limits Are An Expensive Nightmare - Please Support MPCA & Register Today! *

 

2. The 2008 Missouri Legislative Session: Final Week.

 

*Things Can Change Minute-By-Minute, So Keep An Eye Out For Email Alerts!*

 

3. MPCA Member Services: Save Money, Increase Profitability & Keep Your Membership Dues Low. What Have You Got To Lose?

 

4. Alcohol & Tobacco: Stings!

 

5. Terminals: Law Requires Unblended, 10% Blend, & Ethanol.

 

6. Federal Legislative & Regulatory News:

 

A. MTBE Settlement. 
B. 23 Senators Propose Waiving Renewable Fuel Mandates.
C. Democrats Ask Bush To Create A New Task Force To Investigate Speculators.
D. PMAA Signs Onto Letter That Would Address The “Information Reporting For Electronic Payments”. 
E. Farm Bill Final Deal.
F. FTC Seeks Comments On Proposed Rule On Market Manipulation.
G. USDOT Haz Mat Registration Requirements: Deadline Is 7/1/08. 
H. EPA Stage 1 Initial Report Due 5/9/08!
 

1. MPCA GOLF TOURNAMENT & PAC FUNDRAISER: JUNE 2, 2008.  ONLY 136 GOLFERS HAVE REGISTERED TO DATE, & WE USUALLY HAVE 175+! TERM LIMITS ARE AN EXPENSIVE NIGHTMARE - PLEASE SUPPORT MPCA & REGISTER TODAY!

 

A. WHY. It’s fair to say that every MPCA member is impacted by some or all of the following issues: fuel pricing and taxation; renewable fuel mandates; regulating and/or mandating fuel formulas, fuel tanks fuel pumps & fuel equipment; environmental issues involving fuel, fuel tanks and fuel pumps; transportation funding; and any and all issues involving tobacco, alcohol, billboards, adult magazines and the Missouri Lottery.

 

Term limits were a huge mistake allowing for very little institutional memory and no long-term relationships. Imagine if every eight (8) years Microsoft’s Board of Directors was forced to resign. Sounds silly, right?

 

Unfortunately, every couple of years MPCA needs to spend huge amounts of time and money to make and educate a whole new crop of legislative friends and allies.

 

B. HOW. MPCA and every other politically powerful and successful association needs two (2) things to ensure that our message is heard loud and clear: an active membership (grassroots support and great attendance at Lobby Day) and the resources to effectively communicate our positions and agenda.

 

MPCA’s Annual Golf Tournament and PAC Fundraiser provides MPCA with the resources we need to ensure that MPCA’s message, even in the age of term limits, resonates loud and clear in Jefferson City and Washington, D.C. These resources are used to support statewide and legislative candidates who will protect and advance MPCA's many legislative & regulatory interests.

 

Remember, even if you do not golf you can and should support the PAC by joining us for dinner on Monday evening.  Everyone is welcome and strongly encouraged to attend!

 

C. WHEN & WHERE. MPCA typically holds the Golf Tournament & PAC Fundraiser in May/June in election years (even numbered years) and September in non-election years (odd numbered years). This way MPCA minimizes expenses and maximizes our PAC resources well before the August primary election and the November general election.

 

The 2008 MPCA Annual Golf Tournament & PAC Fundraiser will be held on Monday, June 2, 2008, at the Lodge of Four Seasons at the Lake of the Ozarks.

 

MPCA’s Annual Golf Event features something for everyone!  You can play golf and or opt to just join us for the dinner on Monday evening.  Either way, your event registration helps support MPCA. 

 

Please support MPCA by registering yourself and all of your key personnel ASAP! Thank you!

 

D. HOW TO REGISTER. Click here for a Registration Form and a complete Schedule of Events, or feel free to call Angie at 573.635.7117, ext. 10.

 

E. HOTEL RESERVATIONS.  The Lodge of Four Seasons at Lake of the Ozarks, Missouri will be the headquarters hotel for this event.  Please call 1.800.THE.LAKE and be sure to ask for the special MPCA rate ($120 room rate).

 

2. THE 2008 MISSOURI LEGISLATIVE SESSION: FINAL WEEK. THINGS CAN CHANGE MINUTE-BY-MINUTE, SO KEEP AN EYE OUT FOR EMAIL ALERTS!

 

A. SCHEDULE. The 2008 Missouri Legislative Session commenced on Wednesday, 1/9/08, and ends at 6:00 PM on Friday, 5/16/08.

 

B. SPECIFIC ISSUES. MPCA has nothing to report on any specific issues at this time. The last week of Session its 110% defense, defense and defense.

 

Please check your email frequently this last week in case MPCA sends out any legislative alerts and needs ever member to take action immediately!

 

C. MPCA CAPITOL REPORT. Click here to view the updated MPCA Capitol Report which tracks all the 2008 legislation that is of interest to MPCA.

 

Please take the time to regularly and carefully review this very important document, and do not hesitate to contact me with any questions or concerns.

 

D. VIEW LEGISLATION. To view 2008 legislation, visit the following websites:

 

Click here to view House Bills.

 

Click here to view Senate Bills.

 

E. CONTACT YOUR ELECTED OFFICIALS. To contact your State Representatives and Senators, visit the following websites:

 

Click here to contact your State Representatives.

 

Click here to contact your State Senators.

 

F. HOUSE AND SENATE COMMITTEES. To view 2008 State House & Senate Committees and Committee members, visit the following websites:

 

Click here to view the House Committees.

 

Click here to view the Senate Committees.

 

3. MPCA MEMBER SERVICES: SAVE MONEY, INCREASE PROFITABILITY & KEEP YOUR MEMBERSHIP DUES LOW. WHAT HAVE YOU GOT TO LOSE?

 

A. WHAT IT’S ALL ABOUT. MPCA members who take advantage of MPCA’s member services listed accomplish 3 key objectives.

 

First, they save money and thus increase their company’s profitability. Second, they help generate a very important source of “non-dues revenue” for MPCA which helps to keep your MPCA membership dues as low as possible. Finally, this “non-dues revenue” stream provides MPCA with the tools we need to protect and advance your legislative and regulatory interests in Jefferson City, MO and Washington, D.C.

 

Truly a “win, win, win” scenario for all involved!

 

B. WHO IS ELIGIBLE. Every MPCA member service is available to every MPCA member - marketer members, c-store members, associate members, etc.

 

C. SPECIFIC MEMBER SERVICES. The following is a list of member services offered by MPCA:

 

1. Employment Screening Reports: Criminal Background, Credit, Liquor Control, Driver/Motor Vehicle & More.

2. Workers’ Compensation Insurance.

3. Health Insurance, Property & Liability Insurance, & Financial Protection Services.

4. Credit Card Processing.

5. Office Supplies & Equipment.

6. Overnight Shipping.

7. Industry Publications.

8. MPCA Fuel Theft Decals.

 

D. HOW TO GET FURTHER INFORMATION. Click here to access all the information you need regarding MPCA’s member services.

 

4. ALCOHOL & TOBACCO: STINGS!

 

On Thursday, 5/8, seven (7) out of ten (10) c-stores and liquor stores in Columbia failed surprise stings and sold alcohol to minors.

 

While I’m sure this failure rate is an anomaly, it gives MPCA an opportunity to remind all of our members to make every effort that policies and training are updated to ensure that tobacco and alcohol are never, ever sold to minors!

 

5. TERMINALS: LAW REQUIRES UNBLENDED, 10% BLEND, & ETHANOL.

 

A. THE ISSUES. MPCA has received several calls stating that some Missouri terminals are violating state law and no longer offering unblended fuel.

 

In addition, I am told that some of the majors are demanding that their franchisees only buy ethanol from them.

 

B. THE LAW. Subsections 8 & 9 of section 414.255, RSMo, the 2006 ethanol standard which became effective on 1/1/08, are very clear and self-explanatory when they state:

 

“8. All terminals in Missouri that sell gasoline shall offer for sale, in cooperation with position holders and suppliers, fuel ethanol-blended gasoline, fuel ethanol, and unblended gasoline. Terminals that only offer for sale federal reformulated gasolines, in cooperation with position holders and suppliers, shall not be required to offer for sale unblended gasoline.

 

9. Notwithstanding any other law to the contrary, all fuel retailers, wholesalers, distributors, and marketers shall be allowed to purchase fuel ethanol from any terminal, position holder, fuel ethanol producer, fuel ethanol wholesaler, or supplier. In the event a court of competent jurisdiction finds that this subsection does not apply to or improperly impairs existing contractual relationships, then this subsection shall only apply to and impact future contractual relationships.”

 

Click here to access the entire section 414.255, RSMo.

 

C. WHAT TO DO IF YOU EXPERIENCE A PROBLEM. The Department of Agriculture is charged with enforcing section 414.255, RSMo. Feel free to call Ron Hayes at 573.751.4278 if you have any questions or concerns.

 

In addition, please do not hesitate to call Ron at MPCA (573.635.7117, ext. 16) if you have additional questions or concerns.

 

6. FEDERAL LEGISLATIVE & REGULATORY NEWS.

 

MPCA received the following on 5/9/08 & 5/12/08 from the Petroleum Marketers Association of America (PMAA).

 

A. “MTBE SETTLEMENT. Independent petroleum marketers were surprised to learn that several oil refiners have decided to pay $422 million to settle a multi-district MTBE lawsuit brought by 153 public water companies.

 

Contributing to the settlement was: BP Amoco, Atlantic Richfield, Chevron, ConocoPhillips, Shell, Marathon, Valero, CITGO, Sunoco, Hess, Flint Hills, El Paso Merchant Energy, and Tesoro. It is significant to note that ExxonMobil decided to not join the settlement. 

 

PMAA will be consulting our legal counsel, Bassman, Mitchell and Alfano, to determine how this settlement might impact independent marketers.”

 

B. “23 SENATORS PROPOSE WAIVING RENEWABLE FUEL MANDATES. Twenty-three Senate Republicans, including Republican presidential nominee, Senator John McCain (R-AZ), sent a letter on May 2 to EPA Administrator Stephen Johnson, asking him to consider waiving the ethanol mandate due to the consequences the food-to-fuel mandates have had on food prices.  The Energy Independence and Security Act, H.R. 6, requires nine billion gallons of corn-based ethanol or other renewable fuel to be blended with gasoline in 2008 and 36 billion gallons by 2022.  However, H.R. 6 allows the EPA Administrator to waive the renewable fuel requirements.  Senate Republicans argue that 30 percent of the natural corn crop and vegetable oils will have to be diverted for fuel supplies which would significantly increase food prices.  Last week, Texas Governor Rick Perry (R) asked the EPA to cut the 2008 requirement of nine billion gallons in half.  Under the law established in H.R. 6, the EPA has 90 days to respond to Governor Perry’s request.  While the sentiment for waiving the ethanol mandate picks up momentum in the House and Senate, Senators Charles Grassley (R-IA) and Tim Johnson (D-SD) sent a letter asking their colleagues to sign a letter to the EPA to oppose waiving the mandate.  The letter stated that the RFS has only a three percent effect in the increase on global food prices which would not justify a complete or partial waiver of the mandate.

 

Meanwhile, the House Energy and Commerce Subcommittee on Energy and Air Quality considered rolling back the renewable fuel mandate.  Full committee ranking member Joe Barton (R-TX) considered returning the renewable fuels standard to the levels established in the Energy Policy Act of 2005 which would set a standard of 7.5 billion gallons by 2012.  Several members of the committee stressed the need for coal-to-liquid (CTL) production which was not included in H.R. 6 due to increased carbon emissions concerns.  The EPA stated that it would consider new energy proposals on a case-by-case basis.” 

 

C. “DEMOCRATS ASK BUSH TO CREATE A NEW TASK FORCE TO INVESTIGATE SPECULATORS. As energy prices continue to skyrocket, Democratic Senators Jack Reed (D-RI) and Carl Levin (D-MI) called on President Bush to establish an energy task force to investigate whether speculators are driving energy prices to historic levels.  Various energy experts are pinning the recent energy price run-up on excessive speculation suggesting that it adds anywhere up to 25 percent.  The letter requested that the President pull together several high ranking government officials including the Secretary of the Treasury and Chairmen of the Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Trade Commission, Federal Energy Regulatory Commission, and the U.S. Attorney General to examine energy markets and its effect on prices at the pump.  The Energy Information Agency released its energy outlook for the next six months and projected world oil consumption to grow by 1.2 million barrels per day and gas prices to hover near $3.52 per gallon.”

 

D. “PMAA SIGNS ONTO LETTER THAT WOULD ADDRESS THE “INFORMATION REPORTING FOR ELECTRONIC PAYMENTS”. PMAA, along with 16 other trade associations known as The Coalition for Fairness in Tax Compliance, sent a letter to the Senate Committee on Finance, to address the committee’s draft proposal on “Information Reporting for Electronic Payments.”  The proposal known as a “payment facilitator” would provide the Internal Revenue Service (IRS) and the merchant with an annual aggregate total of the gross receipts of individual merchant processed by the payment facilitator.  The proposal states that this would allow the IRS to develop trends and reporting profiles on merchants. 

 

The proposal would place an administrative burden on retailers because they would receive an annual information return form from the payment facilitator and then would have to reconcile their books and records before filing their tax return for the year. They could later be audited and found to have understated receipts.  The proposal would also increase costs for small businesses to comply and there is no clear evidence that the IRS would be able to use the information to identify merchants who are underreporting their electronic payments.  Finally, the “Information Reporting for Electronic Payments” would require that the merchant card processor verify the Taxpayer Identification Number (TIN) of the merchant.  If the processor fails to verify the TIN or has an incorrect TIN, the processor is required to withhold 28 percent.  This would severely affect honest small business owners who do not have a large amount of cash on hand to absorb the time it would require to obtain the money withheld from them due to a simple mistake by the merchant or government.”

 

E. “FARM BILL FINAL DEAL. Lawmakers announced late May 7 that they have completed their conference report for the Farm bill (H.R. 2419), clearing the way for floor consideration during the week of May 12. Over the last few weeks, Farm bill conferees have been going back and forth with the Bush Administration over funding limits.  According to conferees, they have agreed on every section in the farm bill including the Senate Amendment Title XIII known as the Commodity Exchange Act Reauthorization of 2008. However, PMAA has yet to see the complete details.  The President has signed (2) two week extensions since the previous Farm bill authorization expired to give lawmakers time to settle differences.  The House and Senate are expected to consider the conference report May 14 which should pass each chamber.  However, the White House has said it is unlikely to satisfy the President.  If a veto should occur, the Senate is expected to have the necessary votes to override a veto.”

 

F. “FTC SEEKS COMMENTS ON PROPOSED RULE ON MARKET MANIPULATION. This week the Federal Trade Commission (FTC) officially announced that it is soliciting comments on a rule to prevent possible market manipulation in the petroleum industry.   Two sections of the 2007 Energy Bill give the FTC new authority to promulgate more comprehensive petroleum market oversight regulations. The FTC expects to complete the rulemaking process by the end of the year.

 

PMAA will be submitting formal comments to the FTC on the rule and PMAA’s Board of Directors will discuss the issues next week when they meet in Washington, D.C.

 

A copy of the proposed rule is available here.”

 

G. USDOT HAZ MAT REGISTRATION REQUIREMENTS: DEADLINE IS 7/1/08. Click here to download and review PMAA’s 5/12/08 Compliance Bulletin on this topic.

 

MPCA received the following on 5/12/08 from the Society Of Independent Gasoline Marketers of America (SIGMA). This issue has been addressed in multiple previous MPCA Newsletters.

 

H. “EPA STAGE 1 INITIAL REPORT DUE 5/9/08! In January, the EPA finalized a rule requiring specific vapor controls during the refilling of gasoline storage tanks.  All locations selling more than 10,000 gallons per month are required to submit basic facility information to EPA by May 9, 2008. New or reconstructed facilities must comply with regulations by January 10, 2008 or upon start up of the facility. Existing facilities must retrofit equipment by January 10, 2011. Existing facilities that become subject to requirements because of an increase in gasoline throughput must achieve compliance within 3 years of attaining the volume threshold. Click here to download the appropriate form.

 

The final rule requires the following criteria to be met for all gasoline dispensing facilities:

 

1. At all facilities, checking for leaks and using good housekeeping procedures to prevent evaporation of gasoline

 

2. At all facilities with monthly gasoline throughputs of 10,000 gallons or more, submerged fill pipes must be used when loading storage tanks. Tanks of 250 gallons or less are exempt. If a notice of compliance is not sent to the EPA Regional Office, operators must file with the EPA and the appropriate delegated State authority an Initial Notification by May 9, 2008, or at the time a facility becomes subject to the control requirements (exceeds 10,000 gallons per month). This notification shall include:

 

-Name and address of owner and operator

-Address (physical location) of the GDF

-Statement that notification is being submitted in response to this regulation

 

3. At all facilities with monthly gasoline throughputs of 100,000 gallons or more, vapor balancing should be used between the storage tank and the tank truck. Storage tanks with a capacity less than 250 gallons constructed after January 10, 2008, storage tanks with a capacity less than 2,000 gallons constructed before January 10, 2008, and storage tanks equipped with floating roofs or the equivalent are exempt. Operators must file a compliance report every three years. This report can be submitted in lieu of the initial notification.”

 

 

MPCA STAFF

Ronald J. Leone, Esq., Executive Director, ron@mpca.org

Karen Antweiler, Asst. Executive Director, karen@mpca.org

Angie Rickard, Administrative Assistant, angie@mpca.org