Oil Prophets

Winter 2015

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29 Oil Prophets reduce the compliance requirements LQD¿QDOUXOH30$$ZLOOH[SORUH DGGLWLRQDOPHDQVWR¿JKWWKHUXOH including legal action. Potential New Ozone Standards 2QHRIWKHELJJHVW¿JKWVQH[W\HDUZLOO be over the Obama Administration's newly proposed tightening of ozone standards. In particular, the Senate Republican leadership plans an all- out attack via Senator John Thune's 56'OHJLVODWLRQWKHDSSURSULDWLRQV process and the Congressional Review Act. Senator Thune's bill, known as "The Clean Air, Strong (FRQRPLHV$FW´&$6($FWZRXOG block the EPA from revising its ozone standard downward until 85 percent of the current non-attainment counties comply with the current standard. 5HSUHVHQWDWLYHV3HWH2OVRQ57; DQG%RE/DWWD52+LQWURGXFHG companion legislation in the House +530$$LQDFRDOLWLRQZLWK hundreds of other business groups, has urged EPA not to revise the standard. If the standard is lowered, it would force more counties into non- attainment, and therefore, require RFG and lower RVP gasoline which would increase the cost of motor fuels. By EPA's own estimates, the new regulations would cost taxpayers up to $90 billion per year, making them the most costly regulations ever proposed. Worse still, according to the National Association of Manufacturers, the proposed rule will cost over one trillion dollars per year from 2020-2030. If EPA succeeds in adopting this new VWDQGDUGLWZLOOKDYHDVLJQL¿FDQW negative consequence for gasoline UH¿QHUVPDUNHWHUVDQGUHWDLOHUV Interchange Fees Credit Cards A proposed settlement of longstanding antitrust litigation between retailers and the credit card industry was reached to address Visa and MasterCard's anticompetitive interchange fee practices. As expected, Federal Judge John Gleeson approved the proposed settlement in the interchange fee class action litigation against Visa and MasterCard. A dozen plaintiffs appealed the decision which could delay the settlement for another year or so because it offers money damages of only about two months' worth of interchange fees paid by UHWDLOHUVOLPLWHGPRGL¿FDWLRQVWR surcharging rules, and most notably, prevents retailers from challenging anti-competitive interchange fees in the future. The decision by Judge Gleeson is important, but it is only one more step in a long process. Petroleum marketers need not take any action as a result of this decision. Everyone involved must wait for the appeals process to conclude. Meanwhile, American Express Co. agreed to pay as much as $75 million and alter some of its merchant rules to settle two class-action suits similar to the Visa MasterCard litigation. The 0HUFKDQWV3D\PHQWV&RDOLWLRQ03& opposes the settlement because it does nothing to bring competition and transparency to American Express Co.'s interchange pricing policies. The settlement terms still have to be approved by the Court. Debit Cards During the summer of 2013, U.S. District Court Judge Richard Leon tossed the Federal Reserve's 2011 ¿QDOUXOHRQGHELWFDUGLQWHUFKDQJH fees and sided with retailers' arguments that the Fed's cap on the IHHVDUHXQIDLUDQGGRQ¶WUHÀHFWWKH Durbin amendment's intent to ensure that swipe fees are "reasonable and proportional" to the cost of processing a debit transaction. Unfortunately, the DC appeals court overturned the favorable decision from Judge Leon's court on March 21st. The decision to overturn Judge Leon's ruling is a huge disappointment for the retailer community. The Merchants 3D\PHQWV&RDOLWLRQ03&SODQVWR take the issue to the Supreme Court. In December 2014, the 28-nation European Union reached an initial agreement that fees charged to merchants for accepting consumer card payments will be limited to 0.2 percent for debit and 0.3 percent for credit. In addition, member states may VHWDORZHUPD[LPXPRUD¿[HG¿YH cent cap. The agreement will not apply to one bank only cards such as Diners and American Express or for cards used only for business expenses. 2QFHWKH¿QDOHQGRUVHPHQWRIWKH agreement is made, the new fee caps will apply six months later. Keystone XL Pipeline Incoming Senate Majority Leader 0LWFK0F&RQQHOO5.

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