Fuel Oil News

Fuel Oil News February 2016

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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Petroleum Marketers Association of America PMAA President Rob Underwood responded with the following initiatives as being hot-button items. Placarding: PMAA continues to work with Congress and the Pipeline and Hazardous Materials Safety Administration to rescind a recent interpreta- tive guidance for placarding on cargo tank trucks. PMAA has secured language in the Senate Committee on Commerce, Science, and Transportation bipartisan bill known as the "SAFE PIPES Act" which seeks to improve the safety of the nation's oil and natural gas pipelines and overhaul procedures at PHMSA. Section 4 of the bill is language that would force PHMSA to revert back to placarding to the lowest flash point for both split loads and alternating straight loads of diesel fuel and gasoline. This is a cost saving provision for marketers because they can ship diesel fuel, gasoline and heating fuel in different compartments of the same cargo tank vehicle under a gasoline placard, as well as ship straight loads of gasoline or diesel under the gasoline placard instead of affixing or switching multiple product placards. The provision can also benefit emergency responders because it reduces the number of placards on the cargo tank which makes identifying the appropriate response in an emer- gency simple and reliable. Action on this bill is likely in early 2016. On the regulatory side, PMAA joined on as a signatory to a petition for rulemaking at PHMSA that would allow plac- arding to the lowest flashpoint for both split loads and straight loads. PMAA is also working with PHMSA officials to withdraw the new interpretation that prevents placarding to the lowest flash point for straight loads. New Ozone Standards: PMAA plans to work with Congress to repeal the new federal ozone standard. Although the 70 ppm standard is not as low as many feared and is considered a compromise between industry and environmental interests, the ozone final rule still places a burden on some counties which could mean RFG and lower RVP fuels. PMAA will continue to support Rep. Flores' (R-TX) bill known as "The Ozone National Ambient Air Quality Standard Deadline Harmonization Act" which brings certainty to states and localities by allowing adequate time for implementation of the 2008 standard and resulting air quality benefits. PMAA also continues to support additional bills introduced in the Senate to roll back the onerous ozone regulation. RFS Reform/Blendwall: Although EPA finalized the 2014- 2016 RFS volume requirements, the fight is not over. While PMAA was pleased that EPA used its waiver authority to lower the corn ethanol mandate, PMAA continues to aggressively oppose any E15 mandate without a pathway to demonstrate legal compatibility for UST systems and liability protection. Prior to the announcement PMAA met with the White House Office of Management and Budget (OMB) to reiterate market- ers' concerns over demonstration guidelines adopted by the EPA Office of Underground Storage Tanks which do not provide a realistic pathway to legally dispense E15 in existing UST sys- tems. Next year, PMAA will be continuously reminding the EPA and Congress of the compatibility issue. Underground Storage T a n k s : W h i l e P M A A i s pleased with the gains made regarding our concerns with the UST final rule (reducing annual compliance costs from $6,966 to $2,377 per station per year), more work must be accomplished to further reduce compliance costs and burdens imposed by the final rule. Specifically, PMAA believes the current test method for sumps can be improved to reduce compliance costs and better protect the environment. PMAA has developed a less costly and more effective alternative sump test method and is working with ASTM and PEI to incorporate it into new and existing industry standards for tank inspec- tion and testing. PMAA has also provided guidance to state association executives on methods for state regulators to make implementation of the UST rule on the state level less bur- densome. Due to these ongoing efforts definitive compliance guidance is not available at this time. However, given the three year implementation schedule for most provisions under the rule there is plenty of time to get clarifications and changes needed for a compliance guideline. Menu Labeling: Although the FDA delayed compliance with the menu labeling rule until December 1, 2016, this is still not enough. PMAA continues to support passage of the "Common Sense Nutrition Disclosure Act," (H.R. 2017) (S. 2217) which would modify the Menu Labeling language in Obamacare and give retailers the flexibility they need to comply with the menu- labeling regulations. Fuel Neutral Policies: PMAA will continue its fight to high- light fuel neutral policies. Unfair policies that favor one fuel over another, "fuel switching," are threatening thousands of home heating oil businesses. Policy makers fail to acknowl- STATE BY STATE NEWS 10 FEBRUARY 2016 | FUEL OIL NEWS | www.fueloilnews.com A FEW PROJECTIONS FOR 2016 FON asked a range of regional and national association executives to comment on their plans for 2016. The request came out at a busy and distracting time of the year (over the holidays) and also at a time when some associations had yet to formalize their plans for 2016. However, we have received the following responses. Of course, a lot can changes as the months pass and the year moves forward.

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