From: WPMA
To: Dean Sanpei,
Subject: WPMA Weekly Update - Friday, December 6, 2013
Date: Fri Dec 06 18:10:17 MST 2013


Weekly Update Header

December 6, 2013                        Visit us online at                            WP-12-06-13


On Wednesday, Congressman Earl Blumenauer (D-OR) introduced legislation to phase in a 15 cent-per-gallon motor fuels excise tax increase over the next three years which would more than double the federal fuel tax to 33 cents per gallon. Motor fuel excise taxes have not been increased since 1993 and are not indexed to inflation. H.R. 3636, "The Update, Promote and Develop America's Transportation Essentials (Update) Act" would raise nearly $170 billion over 10 years.

Revenue into the Highway Trust Fund (HTF) has been inadequate in recent years partially because vehicles have become more fuel efficient - hence - less taxable gallons. Volatile gasoline prices have also prompted motorists to drive less and conserve fuel. Currently, the HTF is spending $15 billion more annually than the revenues it receives requiring Congress to inject $50 billion from the U.S. Treasury's General Fund to pay for the HTF shortfall in recent years.

Earlier this year, House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) said a long-term funding solution for highway infrastructure should be part of the broader tax reform bill.

PMAA would like to thank Orion Food Systems, Federated Insurance, Fuel Merchants Association of New Jersey, Illinois Petroleum Marketers Association, North Dakota Petroleum Marketers Association, PMAA State Executives Conference, RJ Reynolds, Western Cascade and Western Petroleum Marketers Association for sponsoring our PAC event held at the Omni La Costa Resort and Spa on November 20th - 21st. PMAA would also like to thank PAC co-chairs Michael Fields and Gerry Ramm for planning such a successful event.

PMAA PAC supporters really enjoyed their time getting a golf lesson from one of the world's best teaching professionals - two-time PGA Championship winner and 1991 Ryder Cup Captain Dave Stockton Sr. and his son Dave Stockton Jr. PMAA Chairman Benny Hodges especially enjoyed the event after a lesson in the long game from Dave Stockton Jr. "The Stockton's definitely lowered my handicap by several strokes after a few simple tweaks to my swing," Hodges said.

Yesterday, PMAA President Dan Gilligan testified before the EPA over the agency's 2014 proposed RFS blending volume standards. Specifically, Gilligan highlighted petroleum marketers' concerns about E15. Given underground storage tank (UST) system infrastructure legal and regulatory uncertainties, Gilligan argued that E15 is unlikely to solve the corn-based ethanol blendwall, and therefore, lowering the corn-based ethanol mandate to a level achievable up to an E10 blend with reasonable growth in E85 sales will avoid unintended consequences. "Another reason to lower the ethanol mandate is to prevent the loss of neat Premium in some markets. We are already seeing some refiner-suppliers blending E10 Premium, eliminating consumer choice to purchase fuel without ethanol. Currently, those customers are paying extra for Premium because they need ethanol free gasoline. If RIN values are exorbitant, ethanol-free gasoline could become totally unavailable in some markets, a very negative unintended consequence," Gilligan highlighted.

EPA proposed a modest reduction to the 2014 RFS blending volumes, calling for 15.21 billion gallons of biofuels -- including up to 13.01 billion gallons of corn-based ethanol -- to be blended with gasoline. If EPA were to require 14.4 billion gallons of corn-based ethanol required under The Energy Independence and Security Act of 2007 (EISA) for 2014, refiners would likely hit the ethanol "blend wall" next year given the U.S. is expected to consume approximately 133 billion gallons of gasoline. PMAA supports lowering the corn-based ethanol mandate to approximately 13 billion gallons and maintaining it at this level for the foreseeable future to prevent higher levels of ethanol blended into the nation's fuel supply.

PMAA will submit detailed comments on the agency's proposed 2014 RFS blending volumes. The public comment period closes on Jan. 28, 2014.
WPMA has partnered with NPP to provide members discounts on many products and services. NPP negotiates the rates, and makes them available to WPMA members.  Membership with NPP is free, and there is no obligation to purchase.  Discounts through Verizon, Expedia, Fastenal, Cradlepoint, and more.  

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.




December 10, 2013 - WOMA Holiday Party at the Race Track, Emerald Downs, Auburn, Washington

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: "You have the right to remain silent.  Anything you say will be misquoted, then used against you. "


© 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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