OPMCA Connection - Keeping You Informed!
OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA Staff

Candace McGinnis
Executive Director 
Candace@opmca4you.com 

Hannah Fite
Director of Member Services 
Hannah@opmca4you.com

OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2017-2018 Board of Directors


 
  Brian Lohman, Chairman 
 ASAP Energy Inc.

Jerry Davidson
Pete’s Corporation

Jason Flinn 
Flowers Oil Company

Mike Gramm 
Speedy's, LLC 

Kurtis Hutchinson
Hutchinson Oil Company

John Netherton
Danielson Fuel Services

Tommy Shreffler
OnCue Marketing, LLC

Rob Toth
Coffeyville Resources
OPMCA NEWS
2018 OPMCA Annual Business Meeting
Please join us for the 2018 OPMCA Annual Business Meeting held on Thursday, June 7, 2018 at Cattlemen's Steak House Event Center. The luncheon will take place from
11 AM - 1 PM with legislative and financial updates, as well as a new slate of officers!
OPMCA Welcomes New Member!
Environmental Works, Inc.

Anthony Moore
7107 S. Yale Ave., #138
Tulsa, OK 74136
Phone: (417) 773-5747
(877) 827-9500
Fax: (417) 823-9659
Email: anthony@environmentalworks.com
Monday, May 14, 2018
  • 2018 OCC Requirements

  • OCC Task Force Public Listening Session

  • Oklahoma Legislature Adjourns Sine Die

  • IRS Issuing Hefty Fines

  • EPA Takes Steps Toward Easing Ozone and Particulate Matter Standards

  • Tentative Deal Reached on RFS Reform

  • New Guidance Released Regarding Menu Labeling Requirements

  • Federated Insurance
2018 OCC REQUIREMENTS
NEW REQUIREMENTS FOR UST OWNERS & OPERATORS OCTOBER 13, 2018
October 13, 2018 is the deadline for new operation and maintenance requirements for owners and operators of underground storage tank systems for inspections of overfill prevention equipment, spill prevention equipment testing, containment sump testing, testing of release detection equipment, and walkthrough inspections. OCC has posted an information sheet and forms you can download at no cost from their website. Please note that some of these requirements begin October 13, 2018, but some must have the first inspection and/or test conducted by October 13, 2018. For complete information and to download the free forms go to the Classes, Forms and Guidance tab on the Petroleum Storage Tank Division's webpage at www.occeweb.com and click on the Compliance link.

Liquid Tightness Tests for Spill Buckets and Containment Sumps:
Click HERE

Overfill Equipment Inspection Recordkeeping form:
Click HERE

Release Detection Testing Recordkeeping form:
Click HERE

30-Day Walkthrough Inspection Checklist:
Click HERE
OCC TASK FORCE PUBLIC LISTENING SESSION
NOTICE OF PUBLIC MEETING

Oklahoma Corporation Commission Task Force
Public Listening Session
Tuesday, May 15 th
1:00-5:00 P.M.

1:00-2:00 pm Oil and Gas
2:00-3:00 pm Telecommunications
3:00-4:00 pm Utilities
4:00-5:00 pm Transportation

Oklahoma Association of Electric Cooperatives
2325 E I-44 Service Rd, Oklahoma City, OK 73111

This public meeting is open to all individuals with an interest in the Second Century Corporation Commission Task Force. The listening session will aid the Task Force in their final report on the study of the Oklahoma Corporation Commission.

The Second Century Corporation Commission Task Force is tasked with conducting an organizational analysis of the Oklahoma Corporation Commission. The Task Force does not examine any past or current cases heard by the OCC. Executive Order 2017-23 is the establishing document of the task force and can be referred to for further information.

For more information contact: occtaskforce@ee.ok.gov
OK LEGISLATURE ADJOURNS SINE DIE
The Oklahoma State House and Senate declared Sine Die on May 4th and the 2018 State Legislative Session has come to an end. Many bills are now pending at the Governor’s desk where she has 15 days from adjournment (not including Sunday’s) to decide if she will sign them into law, or not. 
 
This Session was made especially difficult as we were concurrently in a second Special Session still dealing with short-falls for the current FY’18 that required additional funding to make it through June 30th..........AND trying to deal with deciding a Teacher Pay Raise that resulted in a 2-week statewide Teachers walk-out with crowds of 25-50,00 teachers coming each day to walk the halls of the State Capitol.  So, between 2017 Session and two Special Sessions and finally the wrap-up of this 2018 Session, we have pretty much been in Session non-stop for the last 16 months. Needless to say everyone was very tired and very ready to go home early this year!
 

The biggest news of the Session was two-fold:
 
1. The passage of a tax package to fund a $6,000+ Teacher Pay raise, and
 
2. The approval this year of the largest budget in state history for upcoming FY’19 that begins on July 1. 
 

The $7.6 billion budget for FY ‘19 is an 11% increase in appropriations over what was approved last year and the first budget in many years that did not contain massive spending cuts. Essentially all state agencies either received a flat budget or an increase in funding from last year.
 
Significantly, one of the most talked about issues of the Session ended up without any changes being made. After a Session-long address of how to “reign in the state’s incentives for the Wind Industry”, ultimately nothing happened. A bill to cap wind incentives was ultimately defeated on the Senate Floor. 
 
In terms of the higher profile business issues — there was good and bad news. First, attempts to expand State Sales Tax on Services were repeatedly brought forward, but did not pass. Additionally, the proposal to eliminate the state tax incentive on Capital Gains was ultimately not passed. But the bill to allow Constitutional Open Carry for guns was passed and SB 1212 has been sent to the Governor. The bill eliminates the need for background checks, training or a permit to be able to carry a gun. The business community is concerned this will result in many more guns on the streets. Law enforcement is concerned that it will make it more difficult for them to be able to identity bad guys who are carrying guns! 
 
After several years of work, significant criminal justice reforms were passed. Hopefully, the long term effect will be more reasonable sentencing for non-violent crimes and a reduction in the number of people incarcerated. 
 
Looking ahead the first thing on the horizon is the June 26th Primary Elections. At that time, the people will vote on SQ 788 which is proposing Medical Marijuana legalization. Opponents are saying the SQ is purposefully broad in an attempt to be a defacto approval of Recreational Marijuana. We are told that if SQ 788 passes, we can expect to come back in for Special Session so the Legislature can pass needed guidelines for how to deal with the issue. 
IRS ISSUING HEFTY FINES
IRS Issue Hefty Fines for Failure to Display Nontaxable Use Dispenser Labels

PMAA continues to receive calls from marketers who are being slapped with hefty fines for failure to display IRS nontaxable use warning labels on dispensers. The IRS requires all dyed diesel and dyed kerosene dispensers to have a specific label indicating that the fuel is for nontaxable use only. Dispensers supplying undyed, untaxed kerosene sold from a blocked pump must also display an IRS nontaxable use warning label. 

The labeling requirement has been in place for diesel dyed diesel dispensers since 1993 and for dyed and clear kerosene dispensers since 1998. IRS field agents continue to aggressively enforce the dispenser label requirement in all regions of the country. Under IRS regulations, marketers who fail to post the required labels on applicable dispensers are presumed to know that the fuel will not be used for a nontaxable use and will be responsible for paying the 24.4 cpg federal excise tax on the fuel (the back-up tax) and assessed a $10 for every gallon of fuel in the tank at the time of the violation. 

Some petroleum marketers are under the mistaken belief that the required EPA and FTC dispenser labels, which also provide a warning notice for nontaxable use, satisfy the IRS label requirement. This assumption is incorrect. The IRS, EPA and FTC labels are all required to appear on dispensers despite their apparent redundancy. The IRS does not enforce EPA and FTC label requirements.

The following IRS labels must be posted on any retail dispenser or other delivery facility (skid tank, consumer dispensers at bulk plants or card locks) where dyed diesel fuel and/or dyed kerosene are dispensed for use by a purchaser/consumer: 

“DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE” or

“DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE”.

In addition, the following label must be posted on all blocked pumps that sell clear, untaxed kerosene: 

"UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY".

The labels must be affixed to the dispenser in a conspicuous place within easy sight of the person dispensing the fuel either on the face of the dispenser (on both sides) or on the side of the dispenser just above the nozzle housing. The IRS issues violations for any IRS required label that is missing, faded, ripped or obscured in any from the consumers view. Marketers should frequently inspect dyed diesel fuel, dyed kerosene and clear untaxed kerosene dispensers to ensure the IRS label is properly placed and legible. Labels can be ordered online from most petroleum and c-store supply vendors.

EPA TAKES STEPS TOWARDS EASING OZONE AND PARTICULATE MATTER STANDARDS
EPA Administrator Scott Pruitt is setting in motion plans to review and set six new National Ambient Air Quality Standards (NAAQS) required under the Clean Air Act. The review is important to petroleum marketers because two of the standards under review involve ground level ozone and particulate matter, both of which could impact gasoline and diesel fuel use and formulation requirements. 

In a memo released this week, Pruitt laid out five "principles" for determining NAAQS which are aimed at streamlining EPA review and approval process and easing of scientific standards to determine if current standards are adequate to protect human health and environment. The memo also set out an ambitious goal to quickly finalize new NAAQS standards for ozone by 2020 and particulate matter by 2022. Pruitt also seeks to streamline procedures for evaluating scientific research used to determine whether current or proposed standards are adequate to protect public health and give greater weight to the economic costs when determining new pollution control measures. 

The goal for the agency is to ease NAAQS standards issued under the Obama Administration that significantly increased non-attainment areas for ozone and particulate matter. The new standards are likely to reduce the number of counties in nonattainment requiring RFG and slow the switch from diesel to natural gas-powered diesel vehicles in counties in nonattainment for particulate matter. The planned changes come less than a month after the Administration ordered EPA to revamp the NAAQS review process and just two years after the Obama Administration lowered the ozone standard from 75 ppb to 70 ppm, greatly expanding nonattainment areas nationwide.

TENTATIVE DEAL REACHED ON RFS REFORM
Last Tuesday, reports began emerging that the Trump Administration had reached a deal on the RFS in a White House meeting with Senators representing corn and refining states, as well as the Secretary of Agriculture and the Administrator of EPA. 

Since then, it has been clear that the regulatory deal is not yet complete and there are still more negotiations to come. Under the tentative agreement that was reached this week, the ethanol industry would receive a year-round RVP waiver for E15 blends, while biofuels exports would qualify for RINS generation. The White House also agreed to not pursue an artificial cap on RINs prices. The ethanol industry had already pushed back against any effort to cap RIN values and/or allow ethanol exports to qualify for RINs generation since any reduction in RINs will likely hurt E15 sales. In other words, for E15 to become a viable “new fuel” in the
marketplace, the ethanol industry needs the 15-billion-gallon ethanol mandate to stay intact which maintains RIN values. Attaching RINs to exported ethanol would likely provide relief to refiners by reining in the cost of RINs.

NEW GUIDANCE RELEASED REGARDING MENU LABELING REQUIREMENTS
Last Monday, the FDA released new guidance for the implementation of the menu labeling requirements that also went into effect on Monday.

This guidance updates the guidance document that was released last year and includes new examples of alternatives to aid in compliance. It also identifies places where FDA intends to be more flexible in its approach. The guidance reflects input from stakeholders in response to an interim final rule (IFR) (82 FR 20825, May 4, 2017), as well as comments received on the draft guidance document.  Enforcement of the menu labeling requirements began on Monday, May 7, 2018. For information on which establishments are required to comply with the menu labeling rule, see PMAA General Counsel Al Alfano’s detailed explanation.

FEDERATED INSURANCE
Summer Work Environment: Working in the Heat
Tuesday, May 15, 2018 (1:00 PM CT)
30 minutes | Complimentary | Advance registration required

As we move from spring to summer, many of us are thrilled to enjoy the summer heat and sunshine while it lasts! That same heat, however, can have catastrophic or even deadly consequences if not managed properly by employees working in it every day. This webinar will discuss the risk factors aligned with extreme heat conditions, how to identify heat-related illness, and training to help employees make good decisions while working in the heat.

Click HERE for more information and registration.


April Educational Articles:
HR Question of the Month: Discounted PTO for Part-Time Employees?

Risk Management Corner: The Elephant in the Room