From: WPMA
To: Dean Sanpei,
Subject: WPMA Weekly Update - Friday, January 10, 2014
Date: Fri Jan 10 18:16:44 MST 2014


Weekly Update Header

January 10, 2014                       Visit us online at                            WP-01-10-14


Make your reservations at the Mirage now before the room block ends January 15, 2014  Attendees may call the hotel directly at 1-800-499-6311 or go to and click on the Mirage link. 




Record setting U.S. oil production from the Bakken and Eagle Ford shale developments has lawmakers debating whether to repeal a decades old law which directed the President to ban U.S. crude oil exports.  The law dates back to the 1975 Energy Policy and Conservation Act in reaction to the 1973 Arab oil embargo which caused the world's oil prices to skyrocket.  The law was intended to keep oil in the country and limit the nation's imports - only allowing oil exports in select circumstances by the Commerce Department.  However, it's not entirely clear whether repealing the ban on oil exports will result in higher or lower U.S. gasoline prices. 
Oil producers are pushing Congress to repeal the ban arguing that there isn't enough refining capacity to handle the oil production growth.  Additionally, proponents of lifting the ban argue that it will create more jobs at home while weakening OPEC's global marketshare.   Others are worried domestic oil prices will rise if the ban is lifted.  Some U.S. refiners want to maintain the ban because they currently enjoy cheaper domestically produced crude oil prices (West Texas Intermediate crude oil contract) compared to the world's benchmark known as the Brent crude contract. 
U.S. Energy Secretary Ernest Moniz has indicated that the Obama Administration is open to revisiting the ban while Congress plans to hold hearings over the issue in 2014.   
On December 31, 2013, the one-dollar per gallon biodiesel blender's tax credit along with other energy tax incentives expired.  While Congress is now back in full swing, it remains to be seen whether Congress has the appetite to pass an energy tax extenders package and make it retroactive in 2014.  Multiple reports indicate Congress doesn't plan to address tax extenders while others indicate lawmakers may address them in March 2014 - when Congress must raise the nation's borrowing limit.  Some reports even indicate Congress may tackle tax extenders during the 2014 lame-duck session.


In the meantime, PMAA will continue to support a clean extension of the one-dollar per-gallon biodiesel blender's tax credit and make it retroactive for 2014.  


The American Petroleum Institute will soon reaffirm or revise RP 1004, Bottom Loading and Vapor Recovery for MC-306 & DOT-406 Tank Motor Vehicles, 8th Edition, Reaffirmed February, 2011.

This Recommended Practice (RP) provides guidance to equipment users and manufacturers in the design and operation of bottom loading and vapor-recovery systems to provide greater reliability and interchangeability with safe features. This RP covers required and recommended features of the following aspects of bottom loading and vapor recovery:


a. Tank vehicles equipped for bottom loading or vapor recovery,
b. Loading installations equipped for bottom loading or vapor recovery,
c. The configuration and operation of 4-in. (101.6-mm) adapters for bottom loading, and
d. Secondary shutoff control systems.


PMAA is a member of the revision team that will review RP-1004. Those who take an interest in, or who are affected by, this publication are invited to join a revision team to first decide if revision or reaffirmation is appropriate, and, if it is, decide to revise the document to determine its content to be presented for ballot. There are no fees charged to participate. Most, if not all, work will be via phone and web conferencing. If interested, by February 14, 2014, please contact Nate Wall at

What's New: The federal one-dollar per gallon biodiesel blender's credit expired at midnight on December 31, 2013. Biodiesel blends created before midnight December 31, 2013 are still eligible for the credit upon a timely return made pursuant to established filing procedures. Biodiesel blends created after midnight December 31, 2013 are not eligible for the one-dollar per gallon credit.


Currently, lawmakers are working to reinstate the biodiesel blender's credit. Whether these efforts will be successful is not known at this point. However, in the event that Congress reinstates the biodiesel credit retroactive to January 1, blenders should continue to maintain detailed blending records. All other federal motor fuel excise tax rates remain the same as 2013 rates.

The following federal motor fuel excise tax rates apply for 2014:


Product  Rate  Cents Per/Gal 
Gasoline  $.184  18.4 
Gasoline (removed for gasohol blending)  $.184  18.4 
Alcohol (for use in downstream gasohol blending)  $.184  18.4 
Aviation Gasoline  $.194  19.4 

The volume of alcohol and biodiesel blended into gasoline or clear diesel are taxed at full federal rate.   

Alcohol Blender's Credit 
(Expired 12/31/11) 
Biodiesel Blender's Credit  (Expired 12/31/13) 


Diesel (clear)  $.244  24.4 
Diesel (dyed)  $.001  1/10th 
Diesel (used in trains)(dyed)**   $.001  1/10th 
Diesel (removed for blending with biodiesel)  $.244  24.4 
Biodiesel (removed for blending with diesel)  $.244  24.4 


Kerosene (clear)  $.244  24.4 
Kerosene (dyed)  $.001  1/10th 
Kerosene (clear-non-commercial aviation)***  $.219  21.9 
Kerosene (clear - for use in non-taxable aviation)  $.001  1/10th 
Kersosene (clear - for use in commercial aviation)  $.044  4.4 
Propane  $.183  18.3 
Compressed Natural Gas  $.183  18.3 
Liquefied Natural Gas  $.243  24.3 

* Rates include the $.001 cpg federal Leaking Underground Storage Tank (LUST) tax. The LUST tax is non-refundable.
**This tax is paid by the railroads, NOT by petroleum marketers.
*** Marketers pay $.244 cpg at the rack, user's rate is $.219. Ultimate vendor claim is $.025 cpg. The ultimate vendor is the only party that can make the claim for 2.5 cpg. Ultimate vendor must have a certificate from the ultimate purchaser verifying the fuel is used for non-commercial aviation. Ultimate vendor must have an IRS 637 UA registration to file claim.

Benny Hodges, Chief Executive Officer of Belen, NM based Hodges Oil Company, will join the Management Committee of the Petroleum Marketers Oil Company, LLC (PMOCO), owner of the Spirit® brand. Hodges begins his Management Committee term effective January 1, 2014.


The outgoing Chairman of the Petroleum Marketers Association of America (PMAA), Hodges is currently beginning his 45th year as head of Hodges Oil Company, the business founded by his grandfather in 1923. The petroleum marketing wholesaler serves 750 accounts throughout central New Mexico and the Rio Grande corridor. "I am very excited to be able to participate with such a remarkable group, and hope that I may be able to contribute to the Management Committee," affirmed Hodges.  "We are thrilled to welcome Benny Hodges to the PMOCO Management Committee," said Spirit® president Vera Haskins. "He brings his many years of experience and service to PMOCO and the Spirit® brand, and we look forward to his guidance."


Spirit® is a nationally recognized petroleum brand managed by marketers and owned by the nonprofit Petroleum Marketers Association of America (PMAA). Spirit® is committed to redefining independence for the American petroleum marketer. Spirit®'s minimal requirements, affordable fees and flexible business solutions give businesses of all sizes the control they need to compete aggressively in today's tough environment. Spirit® offers a sophisticated, patriotic brand image that inspires loyalty and confidence in consumers nationwide. For more information, visit or call (215) 345-4119.  


Start planning now to attend the 2014 WPMA Convention and Convenience Store Expo. It will be held at the Mirage in Las Vegas, Nevada. Mark your calendars for February 18-20, 2014.


Register at:




May 8-9, 2014  - NPM&CSA Big Dogs event - Red Rock Hotel & Casino Las Vegas, Nevada

June 3-5, 2014 - MPMCSA Convention - Hilton Garden Inn - Missoula, Montana

June 16-19, 2014 - WOMA Convention - Suncadia Lodge - Cle Elum, Washington

August 6-8, 2014 - IPM&CSA Convention - Coeur d'Alene Resort - Coeur d'Alene, Idaho

August 19-20, 2014 - NMPMA Convention - Marriott Pyramid North - Albuquerque, New Mexico


Petro Pete:  "Went to school to become a wit.  Only got halfway through!"


© 2013 Western Petroleum Marketers Association - All rights reserved. No part of this work may be reproduced or copied in any form or by any means - graphic, electronic, or mechanical, including photocopying, recording, or otherwise. The information herein is also intended for the sole purpose of members of the Western Petroleum Marketers Association (WPMA). Any other use is strictly prohibited without the express written consent of the WPMA.


If you do not wish to receive information via fax or e-mail, please contact WPMA at: (801) 263-9762, Fax: (801) 262-9413, or e-mail: . Thanks. 






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