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Tuesday, November 9, 2021

The U.S. DOT has published its latest Regulatory Agenda update showing where rules stand in the regulatory process and which rules will be proposed in the coming months. The Regulatory Agenda is important to energy marketers because it provides a “heads up” on rules and regulations that will have an impact on their businesses. EMA monitors the Regulatory Agendas of all agencies and submits comments on those impacting energy marketers. Here is what the Federal Motor Carrier Safety Administration has in store for energy marketers thus far in 2021.

This rule would amend 49 CFR 392 to allow hazardous material vehicles to obey active traffic signals and signage at active railroad crossings rather than stopping at every instance. The FMCSA said the stop at all crossing rule is outdated because most crossings are now gated eliminating the need to stop and look both ways for oncoming trains. Proposed rule due out in August 2021.

FMCSA is proposing to prohibit state licensing agencies from issuing, renewing, upgrading or transferring a CDL or commercial learners permit for individuals prohibited under current regulations from driving a commercial motor vehicle due to drug and alcohol program violations. The driving ban is intended to keep these drivers off the road until they comply with their return to duty requirements under the U.S. DOT drug and alcohol testing program. Final was due out June 2021.

This rulemaking would propose changes to eliminate a requirement that drivers operating commercial motor vehicles prepare and submit a list of their convictions for traffic violations to their employers annually. This requirement is largely duplicative of a provision requiring employers to make an annual inquiry to obtain the motor vehicle record for each driver it employs from every state in which the driver holds or has held a CDL in the previous year. FMCSA says this change will reduce paperwork burdens n drivers and employers. Final rule expected in December 2021.

FMCSA would amend its parts and accessories regulations to update its current certification and labeling requirements for rear impact guards and include rear impact guards on the list of items that must be examined as part of the annual inspection of commercial motor vehicles. Final rule due out November 2021.

Require states to implement a system for the exclusive electronic exchange of CDL driver history record information, including the posting of convictions, violations and disqualifications. This will allow enforcement authorities to instantly access all driver history records during roadside enforcement actions. Final rule was due out May of 2021.

This rulemaking would reconsider Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks that were established in the agency's April 30, 2020 final rule. This rulemaking would respond to requirements of the Energy Independence and Security Act of 2007. The statute requires that corporate average fuel economy standards be prescribed separately for passenger automobiles and non-passenger automobiles. For model years 2021 to 2030, the average fuel economy required to be attained by each fleet of passenger and non-passenger automobiles shall be the maximum feasible for each model year. The law requires the standards be set at least 18 months prior to the start of the model year. Proposed rule due out July 2021.

The Biden Administration has delayed the EPA’s proposed RFS biofuel blending mandates for 2021 and possibly 2022 pending a decision how to address the competing interests of the ethanol and oil industries and their political backers. The RFS divides Democrats and Republicans along regional lines that pit Midwestern biofuels supporters against biofuel supporters against and backers of the oil industry who believe ethanol is bad for the environment. Complicating the process is razor thin support in the Senate for the pending infrastructure package that the White House worries could be used as leverage if the RFS blending mandates were to be released sooner than later. The EPA is required by law to set RFS blending mandates by November 30th each year for the following year’s obligations. However, the EPA has not submitted its proposed blending mandates to the Office of Management and Budget (OMB) which typically takes 90 days to sign off on proposed regulations. Presidential election politics together with the difficulty of establishing 2021 blending mandates based on skewed gasoline consumption data from 2020 due to COVID were initially responsible for EPA’s delay. Nevertheless, the agency expected to propose blending mandates this spring. But that deadline was missed as well due to the EPA’s need to sort out three significant court rulings, one from the Supreme Court and two from the U.S. Court of Appeals, that bear directly on the RFS blending volumes. Due to the time required for OMB review and the mandatory notice and public comment period, it is likely the EPA may delay release of proposed 2021 blending mandates until November 30th when 2022 volumes are announced.

Underscoring the political complexity of the RFS, Sens. Pat Toomey (R-PA), Dianne Feinstein (D-CA), Susan Collins (R-ME) and Bob Menendez (D-NJ) introduced a bill on July 20 to eliminate “implied” corn ethanol mandate under the RFS. The RFS program does not explicitly mandate corn ethanol, but most of the program’s overall requirement is still satisfied by a de facto 15 billion gallons corn ethanol statutory volume. The senators want to end that mandate and move to renewable fuels providing greater reductions in greenhouse gas emissions. 

Last week, EMA joined a coalition in letters to Senate Democratic Leadership and Senate Republican Leadership urging them not to include language that would increase the minimum liability insurance requirements for motor carriers. Such language was included in the recently passed House INVEST in America Act highway bill but was not included in the Senate Commerce Committee’s highway bill. The letter encourages senators to keep the language out of the final senate highway bill, and out of the final conferenced bill.

The House bill would increase minimum liability insurance requirements for motor carriers by 167 percent from the current level of $750,000 to $2,000,000. Federal research has demonstrated such a change is entirely unnecessary, would do nothing to improve highway safety, would needlessly jeopardize countless blue-collar jobs, and destroy many small, family-owned businesses. Raising insurance minimums for countless businesses engaged in trucking would undoubtedly cause many to shutter, leading to the loss of American jobs at the worst time possible. This policy clearly does not belong in legislation that is designed to rebuild our infrastructure and encourage economic growth.

Although the minimum increase would not directly impact petroleum carriers, it would set a precedent that could lead to an increase in requirements for marketers down the road. EMA will continue to oppose efforts to raise minimum liability insurance.

EMA will hold its Fall Meeting in conjunction with the NACS Show on October 4-5 at the InterContinental Chicago Magnificent Mile. The EMA meeting will begin with a New Attendee Orientation mid-afternoon on October 4 followed by the Federal Legislative Update. NACS/EMA Reception Salute to State Association Executives and EMA Chair Aaron Littlefield (all EMA members are welcome) will follow at the InterContinental Hotel. On the morning of October 5, there will be a Buffet Breakfast followed by Region and Committee Meetings. The EMA Board of Directors meeting is scheduled after the Distinguished Service Award Luncheon honoring North Dakota Marketer Matt Bjornson sponsored by EMA Corporate Platinum Partner Federated Insurance.

You can find all available details here from how to make your hotel reservations through NACS Housing to viewing the Conference Schedule and registering with secure event payment processing. If you have attended an EMA Conference in the past, you will receive an invitation through Cvent system next week. Responding to this event email is the recommended method to register or decline.

Registration is open for the 2021 NACS Show to be held October 5-8 in Chicago at McCormick Place and is separate from the EMA Meeting Registration.

If you click here when registering for the show and enter the promo code EMA2021NS you will be assisting the Energy Marketers of America (EMA) and your state member association considerably. By promoting registration using this unique code amongst our marketer members, both EMA and your state member association will receive an increase in revenue, as each registration using that code will deliver a financial gain to these organizations that will be shared between them.

The NACS Show continues to be an important networking and educational trade show to advance your businesses and our industry, and we encourage you to share this information with your state’s member companies, particularly those who have attended the NACS Show in previous years, in order to benefit EMA and your state association.

Risk Management Corner

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