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FUELIowa Magazine: May/June 2026

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THE VOICE AND RESOURCE FOR IOWA’S FUEL INDUSTRY

STRATEGIC PLANNING

pg. 4

TAXABILITY OF ABOVEGROUND TANKS

pg. 8

CAMP COURAGEOUS 45TH ANNIVERSARY

pg. 10

VOLUME 81, NO.3 2026 MAY / JUN

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FE A TUR E S

ON THE COVER 45TH ANNUAL BENEFIT FOR CAMP COURAGEOUS

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STRATEGIC PLANNING

8

TAXABILITY OF ABOVEGROUND TANKS

10

CAMP COURAGEOUS 45TH ANNIVERSARY

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HUMAN TRAFFICKING VISIBILITY

IN TH IS IS S UE 22

IOWA RETAILERS WORK TO MEET E15 SAFE HARBOR

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THE PETROLEUM REVOLUTION

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2026 FUELIOWA END OF SESSION REPORT

WHAT' S I N THI S I S S UE

Gary

This issue highlights the people and priorities driving FUELIowa forward. Gary Koerner shares how strategic planning and a strong financial position are helping the association invest in advocacy, member services, and future growth. John Maynes provides an update on the legislative session, E15 implementation, and a landmark Iowa Supreme Court victory on the taxability of aboveground tanks. Sarah Bowman brings the industry's story to life through coverage of the 45th Annual Benefit for Camp Courageous and a personal look at how convenience stores can help combat human trafficking through simple but impactful awareness efforts. Jim Ewing shares a look at 250 years of liquid fuels and the industry's role in powering America. You'll also find a session recap from our lobbyists Marc Beltrame and David Peck, and a preview of SUMMERFEST 2026 as we continue working together to strengthen Iowa's fuel industry.

10430 New York Ave Suite F Urbandale, IA 50322 p (515) 224-7545 f (515) 224-0502 info@FUELIowa.com www.FUELIowa.com 2

Together, We FUEL Iowa! Gary


M E S S A G E FROM THE C HAIR Dear FUELIowa Members, With legislative session now closed and summer heating up, the past few months have been very busy and rewarding for FUELIowa members. One of the biggest victories came with the recent Iowa Supreme Court's decision on the taxability of aboveground storage tanks. This landmark ruling is the result of years of hard work and persistence from FUELIowa, its partners, and key members and will provide meaningful relief and certainty for fuel marketers, propane distributors, farmers, and customers across Iowa. The 2026 legislative session also delivered important wins for our industry. FUELIowa helped defeat a proposed fuel tax indexing plan that would have automatically increased fuel taxes on Iowa consumers. Additionally, or advocacy team protected retailers from a cigarette tax increase, secured lower-than-proposed taxes on nicotine and vapor products, reduced the state's minimum spirits order requirement from $1,000 to $500, and supported liability protections for fuel retailers related to greenhouse gas claims. These successes are a direct result of strong advocacy and

EXECUTIVE COM M I TTEE Nate Lincoln Chair Lincoln Farm & Home Service LLC Glenwood 712-527-4833 Jason Stauffer Vice Chair NEW CENTURY FS Ames, 515-370-3127

member engagement throughout the legislative process. Lastly, I also want to thank everyone who helped make our 45th Annual Benefit for Camp Courageous such a tremendous success. Through the generosity of our sponsors, golfers, donors, and volunteers, we raised $40,000 to support an organization that changes lives every day. Events like this remind us of the impact we can make when we come together.

Dennis Jaeger Treasurer Molo Companies Dubuque 515-845-8359

As we celebrate these accomplishments, the Board, committees, and staff are beginning our annual strategic planning process to identify priorities and opportunities for the year ahead. I hope you'll join us August 6-7 in Okoboji for SUMMERFEST to reconnect with industry friends, enjoy time with family, and learn more about the future direction of FUELIowa. I look forward to seeing you there.

Tessa Anderson Past Chair Rainbo Oil Dubuque 563 - 526-1179

Together we FUELIowa

Nate BOA RD O F D I R E C T O R S Chad Besch Director NEW Cooperative Algona | 515-295-2741

Dave Reif Director Reif Oil Company Burlington | 319-750-5405

Nate Stumpf Director HTP Energy Onalaska, WI | 608-779-6624

Don Burd Director Otter Creek Country Store Cedar Rapids | 319-533-1825

Scott Richardson Director Key Cooperative Roland | 515-291-0623

Kathy Gunlock Associate Director Core-Mark / Farner-Bocken Carroll | 531-777-6104

Brett Kimmes Director Kimmes Country Stores Carroll | 712-775-2202

Inder Singh Director Brew Oil LLC Storm Lake | 712-299-0838

Cara Ingle Associate Director Unified Contracting Services Des Moines | 515-266-5700

Keith Olsen Director Olsen Fuel Supply Atlantic | 712-243-2340

Cody Staab Director Casey’s General Stores Ankeny | 515-381-5815

Kyle May Associate Director Reynolds American Winston Salem, NC | 828-291-9049

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Ed Rogers Associate Director Midwest Petroleum Equipment Des Moines | 515-491-9891

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Summer Is Here… and the Time Is Right for Strategic Planning

By Gary Koerner, CEO, FUELIowa

As another legislative session comes to a close and we look forward to a full slate of summer events, it also marks the beginning of one of the most important times of the year at FUELIowa: strategic planning.

Each year, our Board of Directors, Government Affairs Committee, and lobbying team begin the process of evaluating the legislative and regulatory issues facing our industry and developing priorities for the year ahead. Those priorities help shape not only our advocacy efforts, but also the investments we make on behalf of our members. At the same time, we begin developing our annual budget. Working closely with our Treasurer, Dennis Jaeger of Molo Companies, and members of our Finance Committee, a proposed budget and accompanying strategic plan will be presented to the Board at our August meeting. Once

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approved, we will share those plans with members during our Annual Meeting and SUMMERFEST in Okoboji. A strategic plan and budget must work hand in hand. The budget provides the resources, while the strategic plan provides the direction. As we begin this process, I wanted to share a few of the initiatives and opportunities currently being discussed.

The good news is that FUELIowa is in a very strong financial position. That strength allows us to do more for our members, invest in new opportunities, and put additional resources behind the programs and services that matter most. It also allows us to continue delivering value without increasing dues. In fact, as I promised during the UMCS meeting in St. Paul this past April, there will be no dues increase again this year. If approved by the Board, that will mark thirteen consecutive years without a dues increase—a record we are proud of, especially considering the inflationary environment businesses have faced over that same period. Advocacy will continue to be our highest priority. We are planning to increase financial support for our government affairs efforts again this year, including maintaining a strategic initiative fund that can be deployed—with Board approval—to advance legislative priorities or defend against the constant challenges and attacks our industry faces. As

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every member knows, success in advocacy requires preparation, flexibility, and the ability to act quickly when opportunities or threats emerge. We also plan to continue investing in our member benefit programs. That includes our long-standing partnership with EMC Insurance and our HEALTHAlliance Benefit Plan. These programs continue to provide significant value to members while helping strengthen the overall competitiveness of Iowa's liquid fuels industry.

Likewise, we are making substantial investments in RINAlliance following another outstanding year from our RIN management team. Their continued success is creating opportunities for future growth and innovation that ultimately benefit our members and the association as a whole. Another exciting development is the formation of our new Propane Committee, which recently held its first meeting. The committee includes Keith Olsen of Olsen Fuel Supply, Shannon Martin of New Century FS, Henry Jessen of Johnson Propane/Cylinder Express, and Jason McDermott of McDermott Oil. Their mission is to identify opportunities that strengthen our propane-related programs, enhance the value of our EMC Property & Casualty Program, and improve member access to safety, compliance, and training resources. As we all know, investments in safety, compliance, and training play a critical role in

reducing claims and helping maintain strong year-end safety dividends. Like all FUELIowa committees, this group brings together industry experts who will evaluate opportunities, develop recommendations, and help guide future strategic investments. Several new initiatives are also being evaluated. One example is our website. The current site has served us well for more than a decade, but technology has changed dramatically during that time. We are exploring whether a new platform could better serve members, improve efficiency, and create new opportunities for communication, education, and engagement. These are just a few of the areas where we are looking to invest and enhance member value. There will undoubtedly be additional opportunities and priorities discussed as we move through the planning process. I encourage you to reach out to me or any member of our Board of Directors to share your ideas, observations, and feedback. We want to ensure our strategic plan and annual budget reflect the needs of all our members and continue positioning FUELIowa and our industry for long-term success.

It is an exciting time to be part of FUELIowa. We are fortunate to be in a position where we can fund meaningful initiatives, expand services, and continue investing in the future of our industry. Equally important, we are seeing tremendous engagement from our 5


Board, committees, and members as we work together to position Iowa's liquid fuels industry for long-term success. As always, I am just a phone call away if you have questions, concerns, or ideas you would like us to consider as we develop next year's strategic plan and budget. I look forward to presenting the final budget and strategic priorities in Okoboji this August. I hope to see you there. Together, We FUEL Iowa! Gary Koerner CEO, FUELIowa

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Iowa Supreme Court Issues Ruling on Taxability of Aboveground Tanks

By John Maynes, President, Government Affairs, FUELIowa

The wheels of justice move slowly. Finally, after nearly seven years of legal challenges, the Iowa Supreme has issued a ruling on the taxability of aboveground storage tanks. In a decision titled Chickasaw County Board of Review v. Iowa Property Assessment Appeals Board and Growmark, filed on June 5, 2026, the Iowa Supreme Court affirmed a decision from district court in Chickasaw County and held that the eleven 90,000-gallon propane storage tanks at issue were not assessable as real property under Iowa Code section 427A.1. The decision by the Iowa Supreme Court concludes a lengthy legal battle with county assessors across the state. FUELIowa alone supported appeals centered around the taxability of aboveground storage tanks at ten facilities across the state. In all instances, the respective court sided with the tank owner and held that the tanks were not assessable as real property under Iowa’s statute.

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In addition to the district courts, the

and dozens of decisions in favor

Court decision filed on June 5,

Iowa Court of Appeals, and now the

of tank owners before Iowa’s

2026 applies to any aboveground

Iowa Supreme Court rulings, Iowa’s

Property Assessment Appeals

storage tank with a capacity up to

Property Assessment Appeals Board

Board. All of these challenges

90,000 gallons.

has hundreds of aboveground

filed against taxapayers were

tank assessment appeals pending

likely on the taxpayers dime. I

It’s possible that your inquiry to your

before their bench. With the Iowa

don’t have a monetary figure to

county assessor to have your tanks

Supreme Court decision issued on

place on the amount of taxpayer

removed from your tax roll may

June 5, taxpaying tank owners with

money wasted by assessors, but I

be met with administrative hurdles

a pending appeal should see their

do have plans to find out.

due to timing. Nonetheless, odd-

appeals resolved quickly in the near future.

numbered years afford taxpayers With the favorable Iowa Supreme

a formal right to appeal their

Court decision now firmly in

property tax assessment before

Through the process of challenging

hand, FUELIowa members are

the taxing authority’s local Board

tank related assessments at the

encouraged to review their

of Review. Appeal hearings before

county level, we’ve learned many

property assessments through the

your county Board of Review are

lessons with regard to the power

Beacon platform to determine

very straightforward and there’s no

stored within county assessor

whether your tanks are being

need for legal representation.

offices. County assessors operate

included in your assessment.

with a tremendous amount of

Transparency comes in all shapes

Assessment’s should arrive in late

autonomy and are only loosely

and sizes among assessors

March or early April. Upon receipt,

overseen by the Iowa Department

and there is no one size fits all

you will have a 30-day window

of Revenue. While the state

template for assessments. Often

to respond, appeal, and request

legislature passed what they are

times, tanks are referenced within

a hearing. The reason for your

calling comprehensive property

the “yard extras” category and if

appeal will be the assessment at

tax reform for taxpayers across

you have any trouble determining

your facility is contrary to the law

the state, without checks and

the tax status of your tanks at

and you should to cite the June 5,

balances applied to assessor

your facility, I encourage you

2026, Iowa Supreme Court decision

offices across the state, the true

to contact your assessor and

in Chickasaw County Board of

impact of the property tax reform

ask them directly. Alternatively,

Review v. the Iowa Property

package passed this year will

give me a call and we can work

Assessment Appeals Board and

be better judged in the coming

through the issue together.

Growmark as the basis for your

years as county assessors prepare

claim for relief.

future valuations and look to offset

After learning the status of your

revenues lost from the property

tanks using the Beacon platform,

FUELIowa members are

tax reform package passed this

reach out to your county assessor

encouraged to contact John

legislative session.

and ask him or her to remove

Maynes with any questions

the tanks from the tax roll at

about the process of having your

As an example of the lack of state

your facility. In the past, tank

aboveground tanks removed from

oversight of county assessor offices,

owner’s requesting removal

your tax roll. The Supreme Court

county assessors used taxpayer

have been met with resistance

decision serves as a victory for

money to deny tank owners

from assessor’s centered on the

Iowa’s rural fuel distribution network

property tax relief by attempting

contents, orientation (horizontal

and benefits fuel marketers,

to drown out challenges using the

v. vertical), and size of the tank.

commercial and residential end-

cost of the legal process. In fact,

Fortunately, the Iowa Supreme

users, and farmers alike. Be sure to

assessors were brazen enough to

Court decision makes clear that

share this news with your customers

hire private legal counsel to carry

content and orientation are of

throughout Iowa so they can enjoy

their challenges all the way through

no consideration in the taxability

the relief as well.

to the Iowa Supreme Court after

of an aboveground tank. As it

double-digit district court rulings,

relates to the size of a tank, at

an Iowa Court of Appeals ruling,

a minimum, the Iowa Supreme

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FUELIowa’s 45th Annual Benefit for Camp Courageous

By Sarah Bowman Director, Communications & Events FUELIowa

A little rain wasn't enough to dampen the spirit of generosity at FUELIowa's 45th Annual Benefit for Camp Courageous, held June 8 at Riverside Casino & Golf Resort. What began in 1981 as a fundraising effort to support Camp Courageous has grown into one of FUELIowa's most cherished traditions. For 45 years, fuel marketers, suppliers, business partners, and friends from across Iowa have come together to support a cause that makes a lasting difference in the lives of Iowa children. This year's event was a fitting celebration of that legacy. The day began with cloudy skies and scattered rain showers, but the weather quickly turned in our favor. As golfers gathered for registration and prepared to hit the course, the clouds broke and sunshine emerged, creating the perfect backdrop for a memorable day of golf, fellowship, and fundraising.

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Golfers enjoyed a full day of activities, including a putting contest, pin prizes, and plenty of friendly competition on the course. More importantly, they came together with a shared purpose: supporting the children served by Camp Courageous. One of the highlights of the day was the participation of a large group of Iowa Hawkeye football players, who generously took time out of their schedules to join golfers on the course. Their presence added excitement throughout the day, provided plenty of opportunities for photos and conversations, and helped make the event even more memorable for participants. After an enjoyable afternoon on the links, golfers gathered for dinner and the evening auction and awards. FUELIowa CEO Gary Koerner once again stepped into the role of auctioneer, bringing his trademark energy, humor, and enthusiasm to the festivities. As always, the auction proved to be one of the evening's most anticipated events, with attendees enthusiastically bidding on a wide variety of unique items and experiences. Among the most sought-after auction packages was a Caitlin Clark collector's bundle featuring a signed Iowa Hawkeye basketball jersey, a signed water bottle, and a signed Indiana Fever trading

helps create opportunities, experiences, and lifelong memories for Iowa children and their families.

card. The package generated significant excitement throughout the room and quickly became one of the evening's premier auction items. After spirited bidding, the coveted package was ultimately won by Randy Woodard. The competition on the golf course was equally spirited. Congratulations to the team from Holmes Murphy, which captured this year's tournament championship and took home the coveted trophy. Their strong play earned bragging rights for the coming year, although the true winners were the children who will benefit from the funds raised through the event. While final fundraising totals are still being calculated, early estimates indicate that this year's event raised more than $40,000, making it one of the most successful Benefits for Camp Courageous in FUELIowa history. Organizers believe the final total could set a new fundraising record—a remarkable achievement as the event celebrates its 45th anniversary.

Forty-five years after the first tournament was held in 1981, the mission remains unchanged: bringing people together to support Iowa kids and the incredible work of Camp Courageous. Judging by the enthusiasm and generosity displayed at Riverside, that tradition remains as strong as ever. As final fundraising totals are calculated, one thing is already clear: the impact of this event extends far beyond a single day on the golf course. It is measured in smiles, friendships, confidence, and experiences that will stay with campers for years to come. Thank you to everyone who sponsored, attended, donated, volunteered, and participated in making the 45th Annual Benefit for Camp Courageous one of the most successful in our history. Because Together, We FUELIowa.

None of this would be possible without the support of our sponsors, golfers, donors, volunteers, and countless supporters who continue to believe in the mission of Camp Courageous. Your generosity F U E L I O WA // w w w. F U E L I o w a . c o m

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Human Trafficking Visibility

By Sarah Bowman Director, Communications & Events FUELIowa

It started as a road trip. Miles of highways, gas stops, pop refills, and the familiar rhythm of convenience stores that all of us in this industry know so well. Traveling from Iowa through Kansas, Oklahoma, and Texas, I wasn’t looking for anything unusual. But somewhere along the way, I noticed something missing—and I couldn’t unsee it. In Iowa, I’ve grown used to seeing small but powerful reminders in convenience store restrooms— stickers placed intentionally, often on the back of stall doors, offering help to victims of human trafficking. They’re simple. Easy to overlook if you’re not paying attention. But if you are paying attention, they say everything that needs to be said. As we traveled farther from home, those signs disappeared. Stop after stop, state after state, I looked…and didn’t find them. And that absence said just as much as their presence does in Iowa.

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efforts underway. There are. Training programs, awareness campaigns, partnerships with law enforcement, all of it matters. But without visible, accessible resources placed directly in front of potential victims, there is a gap.

The Power of What’s Quietly There Human trafficking does not announce itself. It operates in the margins, along highways, in transient spaces, in places where people come and go without question. Convenience stores sit squarely in that reality. We are open when others are closed. We serve everyone. And we are often one of the few consistent touchpoints along long stretches of road. That’s what makes those restroom stickers so important. They are placed where someone might finally have a moment alone. A moment to read. A moment to think. A moment to act. Many point directly to the National Human Trafficking Hotline, offering a way to reach out safely, without needing to ask for help out loud. It’s not dramatic. It’s not loud. But it is effective.

What’s Missing Matters The absence of those signs in other states doesn’t mean there aren’t

And that gap is avoidable. Because the reality is simple: if someone doesn’t see the resource, they can’t use it.

An Industry Positioned to Make a Difference Convenience stores are uniquely positioned to be part of the solution. We are not bystanders in this issue, we are on the front lines of it, whether we realize it or not. Every day, our employees interact with travelers, observe patterns, and serve communities that rely on us for more than just fuel and food. Adding a sticker to a restroom door may seem small. But across hundreds, or thousands of locations, it becomes much bigger. It becomes a network. A signal. A consistent message that no matter where you are, help exists. And that kind of consistency is exactly what’s needed.

A Call to Lead, Together What I saw on this trip wasn’t just a difference between states…it was an opportunity. An opportunity for convenience stores to work alongside state leaders, including Secretaries of State, to make this kind of visibility standard, not the exception. An opportunity to ensure that these resources are placed not just in women’s restrooms, but in men’s as well, recognizing that trafficking impacts people of all backgrounds. An opportunity to lead. The National Human Trafficking Hotline is already there. The tools already exist. What’s needed now is coordination, commitment, and the willingness to act. Iowa’s Secretary of State Office has an office dedicated to fighting this. We can only do this if we do it together. Because traffickers rely on movement. On inconsistency. On people not noticing. But imagine if every stop along every highway told a different story. Imagine if every convenience store, no matter the state, offered the same quiet message: You are not alone. Help is here. That’s what I noticed on the road. And it’s what we have the power to change. Because Together, We FUELIowa.

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August 6-7, 2026

It all starts Thursday afternoon with a lake-side cocktail hour & dinner reception complete with open bar, steak or scallops dinner, comedian, silent auction & our annual bags tournament. Afterwards, enjoy Okoboji night-life. On Friday, enjoy 18 holes of golf with breakfast followed by shotgun start and beverage carts keeping you cool all day at Brooks Golf Club. DAY

ON E

DINNER & RECEPTION

BAGS & COCKTAILS

Mix and mingle on the shore at the beautiful Waterfront Event Center at Bridges Bay Resort. We will have open bar, steak and scallops dinner, and dessert as we watch the sunset over the lake. Enjoy the entertainment, and after dinner, explore all that Okoboji has to offer.

What’s better than a game of bags? The obvious answer is, of course, two games of bags! We will kick-off our annual bags tournament with views of beautiful Lake Okoboji while enjoying cocktails, and conversation. Who will win the bags belt this year??

10430 New York Ave Ste F, Urbandale IA 50322 | 515.224.7545

DAY

T WO

GOLF

FAMILY FUN

Day two, it is time to hit the links! Enjoy 18 holes at Brooks Country Club - Okoboji’s premier golf facility. This is a 4-person scramble with shotgun start complete with pin prizes and a putting contest. Lunch is provided and beverage carts will keep you cool all day. Meet up at the 19th hole to collect your prizes.

Not a golfer? Take advantage of Bridges Bay Resort, Lake Okoboji or a day at Arnolds Amusement Park. Bridges Bay features a pool, waterpark, restaurants on the water and much more, perfect for a long weekend. Spouses and family can participate with you at events, take a cruise on the famous Queen II, or explore everything on their own while you network!


SUMMERFEST | August 6-7, 2026 | Okoboji

Our annual action packed summer event. Join us for a cocktail reception, entertainment, dinner & silent auction with family and friends. Enjoy fun in the sun and a choice of golf or a day at Arnolds Park!

SCHEDULE OF EVENTS: Check fueliowa.com for schedule and time updates. Day 2 7:00 a.m. 7:45 a.m. 8:00 a.m. 10:00 a.m. 11:00 a.m. 12:30 p.m.

Day 1 4:00 p.m. 5:00 p.m. 6:00 p.m. 6:00 p.m. 9:00 p.m.

Happy Hour & Annual Meeting Dinner & Comedian Silent Auction Bags Tournament Auction Closes - Okoboji Night Life

Golf Registration Opens – (coffee, juice, donuts) Group Picture Golf Shotgun Start - Brooks Country Club Golf Arnolds Park (non-golfers) Grab and Go Lunch at the Clubhouse Awards Ceremony

HOTEL: Bridges Bay Resort, call (712) 332-2202 & reference FUELIowa for a preferred rate or bridgesbayresort.com and use code fueliowa26.

R E G I S TR ATI O N I N FO R MATI O N Primary Contact:

Company:

Address:

City:

Email:

Phone:

(

S U M M E R F E S T - $300 per attendee, dinner, open bar & choice of golf or Arnolds Park.

)

-

Cell:

(

Zip:

)

-

B A G S T O U R N A M E N T - FUELIowa bags belt awarded to the tournament champion.

TOTAL

NAM E & TEAM NAM E

E MAIL

NAM E

State:

1 ____________________________ ________________________ 1

$______________

2 ____________________________ ________________________ 2

$______________ $______________

3 ____________________________ ________________________ 1

$______________

4 ____________________________ ________________________ 2 TOTAL

DAY 1 S P O N S O R S H I P S

D AY 2 S P O N S O R S H I P S

 Dinner Reception (2) ....................................................$1500

    

 Entertainment Sponsor (2).............................................$1500  Open Bar ....................................................................... $500  Auction Prize (fund or donate item) .................................. $500

$______________

Gift Bag Sponsor ......................................................... $500 Lunch / Awards Sponsor ...........................................$1000 Cigar Sponsor ..............................................................$1000 Putting Contest ..........................................................$1000 Hole Sponsor ................................................................$1200 Includes Four (4) SUMMERFEST Passes

 Bags Tournament ........................................................ $500

 Beverage Cart Sponsor (2) ........................................$1200  Pin Prize Sponsor (4) ..................................................... $250  Pre-purchase Mulligan Package ...............................$100

 Signature Drink ........................................................... $500

Includes 8 Mulligans/4 extra drink tickets

PAY M E N T I N F O R M AT I O N *TOTAL DUE

$

Card

 Check Enclosed

 Credit Card

Exp Date

Name on Card

 VISA  Master Card  AmEx  Discover

Signature

Billing address if different from Primary Contact information.

S U B M I T R E G I S T R AT I O N A N D PAY M E N T FUELIowa, 10430 New York Ave Ste F, Urbandale, Iowa 50322 | Questions? Call (515) 421-4596 or e-mail jim@fueliowa.com. Download a PDF registration form online at www.FUELIowa.com Disclosure: In the event of inclement weather or other possible changes, we will not reschedule. Please consider your fees a donation.

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2026 FUELIOWA SPONSORS DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

F U E L I O WA // w w w. F U E L I o w a . c o m

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WANT BETTER HEALTH INSURANCE FOR LESS? HEALTHAlliance offers industry leading health & wellness plans exclusively designed to meet the needs of fuel marketers, convenience stores, and associated businesses. With partners like Blue Cross & Blue Shield, Delta Dental & more, FUELIowa members enjoy the finest coverage at low rates due to the combined buying strength of our membership. The last 10 groups to join HEALTHAlliance averaged premium savings of 21%

Call us today for a free quote.

515.224.7545 www.HealthAllianceBenefitPlan.com

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PARTNER WITH US cenex.com/dealer-branding-program

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THE FINAL STRETCH: IOWA RETAILERS WORK TO MEET E15 SAFE HARBOR

By John Maynes, President, Government Affairs, FUELIowa

compliance deadline having passed seven months ago, these facilities fall into a class of facilities granted a safe harbor designation from the Iowa Department of Agriculture and Land Stewardship.

Passed in July of 2022, Iowa’s E15 mandate went into effect on January 1, 2026. According to Iowa Department of Agriculture data, 1,062 of Iowa’s 2,266 retail gasoline stations are selling E15 and in compliance with Iowa’s E15 mandate. Iowa’s small business gasoline retailers have

designation differs from a facility operating under a Small Retailers Exemption or a Class I or Class II waiver. A Small Retailer Exemption and a Class I or Class II waiver are blanket exemptions from Iowa’s E15 mandate. The Small Retailer

In a memorandum dated June

Exemption and a Class I or Class

26, 2025, the Iowa Department of

II waiver remain in place until

Agriculture and Land Stewardship

the earlier of a terminable event

outlined their expectations of a

occurring or 2041. A terminable

retail gas station owner applying for

high blends of ethanol and gasoline.

event as it pertains to the Small

Safe Harbor status. Retail gas station

Retailer Exemption or a Class I

owners must be able to produce

Significantly more work remains to be done to modify Iowa’s retail gasoline infrastructure. While nearly 750 small business gas stations were able to successfully secure a waiver from the mandate, approximately 275 gas stations remain with infrastructure modifications yet to be completed.

or Class II waiver includes the

evidence of a signed agreement

removal and replacement of

with an Iowa licensed installer for

an underground storage tank

future fuel infrastructure-related

(UST). With all commercially

work at the location seeking Safe

available underground tanks

Harbor status. The evidence of

today compatible with E15, the

agreement may include a copy

assumption is that any replacement

of an equipment purchase order,

tank installed in the future will be

work order, installation agreement,

compatible with E15.

contract, or invoice for work to be

stepped up and made the best of Governor Reynolds led mandate by investing hundreds of millions of dollars into infrastructure modifications to safely accommodate E15 and other

Among these 275 facilities, the majority continue to pursue a combination of federal and state grant opportunities to offset the soaring costs associated with infrastructure modifications to come into compliance with the state E15 mandate. With the mandate

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A facility with a Safe Harbor

with Iowa’s E15 mandate by offering E15 from at least one fueling position no later than September 30, 2026. The pursuit of a Small Retailer Exemption or a Class I or Class II waiver is no longer an option. The Small Retailer Exemption or Class I or Class II Waiver’s were required to be applied for and approved by December 31, 2025.

For the approximate 275 or so facilities operating under Safe Harbor status, the deadline for offering E15 has been moved to September 30, 2026. Gasoline retailers approved for a Safe Harbor Designation must come into compliance

completed. Alternatively, a copy of a submitted, active application for an Iowa Renewable Fuels Infrastructure Program (RFIP) E15 cost-share grant will be accepted to meet the Safe Harbor threshold set by the Iowa Department of Agriculture and Land Stewardship. As the September 30, 2026, Safe Harbor deadline approaches,


retailers and licensed installers have expressed concern regarding delays attributable to workload, workforce, and equipment delays. With approximately 275 projects pending, it is likely that delays to project timelines will occur over the summer months bringing the Safe Harbor deadline into question.

FUELIowa members, both licensed installers and retailers, are encouraged to contact John Maynes in the FUELIowa office if there are concerns about meeting the state Safe Harbor deadline. The earlier this outreach is

F U E L I O WA // w w w. F U E L I o w a . c o m

made the better and allows for adequate time for all parties to be informed and to set a path forward toward completion of an infrastructure project. Throughout implementation of the E15 Access mandate, the Iowa Department of Agriculture and Land Stewardship has been consistent in their approach by supporting small business gasoline retailers who can demonstrate a good faith effort toward completing a fueling infrastructure project at their location.

FUELIowa expects the department will continue to adhere to this approach by looking at delayed projects on a case-by-case basis. Early communication and documentation showing the reason for delay will be the key elements analyzed by the staff at the Iowa Department of Agriculture and Land Stewardship.

23


The Petroleum Revolution Part 3 of 6

By Jim Ewing, Director, Membership & Business Services

Automobiles, War, and the Rise of Mass Mobility (1900–1945) At the dawn of the 20th century, gasoline was little more than a byproduct of kerosene refining. That changed forever with the invention of the automobile and the rapid expansion of America's transportation network. The turning point came in 1908 when Henry Ford introduced the Model T. By making automobiles affordable for ordinary Americans, Ford unleashed unprecedented demand for gasoline. Within a generation, millions of vehicles filled American roads, gasoline became the dominant petroleum product, and filling stations spread across cities and highways. The modern fuel retail industry was born.

24


Iowa was no exception. As automobiles became commonplace, farmers gained greater access to markets, rural families enjoyed increased mobility, and communities became more connected than ever before. The state's growing network of roads and highways created new opportunities for fuel retailers, service stations, and businesses serving the traveling public. By the 1920s and 1930s, gasoline stations had become a familiar sight across Iowa's towns and rural crossroads. While gasoline powered passenger vehicles, diesel fuel revolutionized trucking, railroads, and agricultural

equipment. Iowa's economy, built on agriculture and commerce, benefited from more efficient transportation of crops, livestock, and goods. Dieselpowered machinery also helped modernize farming operations throughout the state. The strategic importance of liquid fuels became even more evident during World War I and World War II. Aviation gasoline enabled air power, while diesel and fuel oil powered ships, tanks, and military logistics. Iowa contributed significantly to the war effort through agricultural production, manufacturing,

and military service, all of which depended on reliable fuel supplies. Refineries and fuel distribution networks became critical components of national security. By 1945, liquid fuels were inseparable from American life. In Iowa and across the nation, mobility, agriculture, industry, and national defense all depended on petroleum. The United States had become a nation powered by gasoline and diesel, setting the stage for the economic growth and prosperity that would define the postwar era.

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2026 FUELIowa End of Session Report FUELIowa Advocacy Partners Report Marc 2026 FUELIowa EndTeam of Session

Beltrame and David Peck, Beltrame Law Firm, PLC FROM: FUELIowa Advocacy Team Partners Marc Beltrame and David Peck, Beltrame Law Firm, Session Overview PLC Marc Beltrame

David Peck

With the Iowa Legislature officially adjourning sine die on the afternoon of Sunday, May 3, 2026, the 2026 legislative session proved to be an extremely active year for tax policy, fuel regulation, tobacco and vapor products, alcohol distribution, SNAP policy, and broader energy and infrastructure legislation impacting FUELIowa members.

Session Overview

With the Iowa officiallyremained adjourning sine dieengaged on the afternoon of Throughout theLegislature session, FUELIowa actively in legislation Sunday, May 3, 2026, the 2026 legislative session proved to be an extremely involving motor fuel taxation, motor fuel gallons reporting, above ground active fornicotine tax policy, fuel regulation, tobacco and vapor products, alcohol storageyear tanks, and vapor taxation, cigarette taxation, alcohol inventory distribution, SNAP policy, andgas broader and infrastructure legislation transfer reform, greenhouse liabilityenergy protections, SNAP purchasing impacting FUELIowa members. regulations, credit card fees, property tax, and numerous other issues affecting Iowa’s fuel retailers and FUELIowa fuel marketers. Throughout the session, remained actively engaged in legislation involving motor fuelproposals taxation,generated motor fuel significant gallons reporting, above ground While many major legislative attention storage tanks, nicotine and vapor taxation, cigarette taxation, alcohol inventory throughout session, the final outcomes for FUELIowa members were ultimately transfer mixed. reform, greenhouse gas liability protections, SNAP purchasing regulations, credit card fees, property tax, and numerous other issues affecting Iowa’s fuel retailers and fuel marketers.

Legislative Priorities & Key Outcomes While many major proposals generated significant legislative attention

throughout session, the final outcomes for FUELIowa members were ultimately SSB 3001 — Gas Tax and Property Tax Reform Proposal mixed. FUELIowa Position: Oppose Fuel Tax Increases and Indexing Provisions Final Status: Failed to Advance in House

Legislative Priorities & Key Outcomes

One of FUELIowa’s largest legislative priorities during the 2026 session involved opposition fueland tax increases using anReform indexing provision included SSB 3001to—proposed Gas Tax Property Tax Proposal within SSB 3001 and related property tax reform discussions. FUELIowa spent FUELIowa Oppose Fuel Tax Increases andlegislators Indexing and Provisions significantPosition: time throughout the session engaging stakeholders Final Status: Failed to Advance in House One of FUELIowa’s largest legislative priorities during the 2026 session involved opposition to proposed fuel tax increases using an indexing provision included within SSB 3001 and related property tax reform discussions. FUELIowa spent significant time throughout the session engaging legislators and stakeholders 26


regarding concerns surrounding automatic fuel tax increases, affordability impacts on Iowa consumers and businesses alike, and broader transportation funding proposals. Throughout the session, FUELIowa remained heavily engaged with legislators and stakeholders regarding concerns surrounding automatic fuel tax increases, long-term affordability impacts on Iowa consumers, and broader transportation funding discussions. Ultimately, the Senate property tax package containing the fuel tax language failed to advance through the House after passage in the Senate, representing a significant victory for Iowa’s fuel industry and consumers alike.

SF 2480 — Cigarette, Alternative Nicotine & Vapor Product Tax Legislation FUELIowa Position: Undecided / Seek Amendments Final Status: Passed in Amended Form SF 2480 represented one of the most significant tobacco and vapor policy debates of the 2026 legislative session. A policy debate which is likely to rise again in 2027. Throughout negotiations, FUELIowa remained heavily engaged regarding concerns surrounding tax rates, floor stock taxes, minimum markup provisions, and broader regulatory impacts on retailers. While the final legislation ultimately imposed new alternative nicotine (pouch) and vapor product taxes, FUELIowa was successful in staving off a cigarette tax increase while suppressing new tax rates for alternative nicotine and vapor products. Multiple additional nicotine and vapor taxation proposals introduced during session contained significantly more aggressive tax and regulatory structures than the ultimately enacted legislation. Compared to several alternative tobacco tax proposals introduced during session, the final version of SF 2480 represented a substantially improved outcome for retailers represented by the lowest tax rates in the country on nicotine pouches and vapor products at 5 cents per container of 20 pouches and 5 cents per milliliter of vapor product. No tax increase associated with cigarette’s was passed during the 2026 session.

SF 2451 / HF 2647 — Alcohol Inventory Transfer Legislation FUELIowa Position: Support Final Status: Did Not Advance to Final Passage SF 2451 and HF 2647 sought to allow commonly owned retail establishments operating with a Class E liquor license greater flexibility in transferring spirits

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27


a meaningful operational improvement for retailers. The reduced minimum order requirement is slated to take effect on July 1, 2026. FUELIowa will be partnering with ABD to provide licensees information on the upcoming change in policy. inventory between licensed locations under common ownership. The legislation remained priority throughout 2026 session. HF 1050 a—significant AboveFUELIowa Ground Storage Tankthe Assessment Although the bills ultimately did not reach final passage this year, substantial Exemption Legislation groundwork was laid with both legislators and regulators regarding the FUELIowa Position: Support operational challenges facing retailers under Iowa’s current alcohol distribution Final Status: Did Not Advancegreatest opposition came from your supplier system. Curiously, FUELIowa’s members of the Iowa Wholesale Beer Distributor’s Association. HF 1050, legislation relating to above ground storage tank assessment exemptions, remainedwas a FUELIowa focus throughout the 2026 session but Importantly, FUELIowa successful in ongoing discussions with the Iowa ultimately didofnot advance in Iowa the Senate. Department Revenue and Alcoholic Beverages Division (ABD) regarding minimum spirits order requirements. As a result of those discussions, the state For the second time in three years, the Iowa House passed this legislation with reduced the minimum spirits order requirement from $1,000 to $500, representing nearly unanimous support. FUELIowa anticipates an Iowa Supreme Court a meaningful operational improvement for retailers. The reduced minimum decision to be rendered in the next 30 days on our above ground storage tank order requirement is slated to take effect on July 1, 2026. FUELIowa will be taxation issue. Stay tuned. partnering with ABD to provide licensees information on the upcoming change in policy.

Biofuels & Renewable Fuels Policy

HF 1050 — Above Ground Storage Tank Assessment SF 2493 / HFLegislation 2798 — E85 Agricultural Implement Tax Exemption Exemption

FUELIowa Position: Support Final Status: Did Not Advance FUELIowa Position: Engage and Monitor Final Status: Passed in Negotiated Form HF 1050, legislation relating to above ground storage tank assessment exemptions, remained a FUELIowa focus throughout the 2026 session but The Legislature considered multiple proposals during the 2026 session involving ultimately did not advance in the Senate. excise tax exemptions for E85 and high-ethanol fuel used in agricultural implements. These reflected continued in with For the second timediscussions in three years, the Iowa House legislative passed thisinterest legislation expanding ethanolsupport. usage and supporting Iowa biofuels nearly unanimous FUELIowa anticipates an Iowamarkets. Supreme Court decision to be rendered in the next 30 days on our above ground storage tank FUELIowa was successful in advocating for fuel marketer protections in the final taxation issue. Stay tuned. version of this bill. Agricultural end-users claiming exemption will be required to sign an exemption certificate to be kept on file by a marketer, a process analogous to end-users claiming exemption from state sales tax.

HF 2786 / HSB 688 — Biodiesel Tax Credit & Refund Biofuels & Renewable Fuels Policy Legislation SF 2493 / HF 2798 — E85 Agricultural Implement Tax FUELIowa Position: Monitor and Engage Exemption

Final Status: Mixed Outcomes FUELIowa Position: Engage and Monitor FUELIowa remained engaged on multiple Final Status: Passed in Negotiated Form biodiesel tax credit and sales/use tax refund proposals throughout the session, including legislation extending repeal dates and modifying refund structures associated with biodiesel production and blended fuel incentives. No extension or modification to Iowa’s retail biodiesel tax credits was agreed upon. The sunset date for Iowa’s biodiesel tax credits remains January 1, 2028. 28

Fuel & Infrastructure Legislation


dates and modifying refund structures associated with biodiesel production and blended fuel incentives. No extension or modification to Iowa’s retail biodiesel tax credits was agreed upon. The sunset date for Iowa’s biodiesel tax credits remains January 1, 2028.

Fuel & Infrastructure Legislation SF 2484 — RFIP Funding & Infrastructure Appropriations FUELIowa Position: Undecided Final Status: Passed Without Additional RFIP Appropriations Earlier versions of SF 2484 included additional funding related to the Renewable Fuels Infrastructure Program (RFIP). However, those appropriations were ultimately removed from the final version of the legislation prior to adjournment. While additional RFIP funding would have been welcomed, the outcome was largely anticipated given the current unobligated balances already available to the RFIP Board for distribution toward qualifying fuel infrastructure and upgrade projects. As a result, the removal of additional appropriations is not expected to significantly impact near-term RFIP funding availability for retailers seeking infrastructure improvements.

Other Legislation of Interest HF 2133 — Kratom Regulation Legislation FUELIowa Position: Monitor / Engage Final Status: Failed HF 2133, legislation regulating kratom products, failed to advance during the 2026 legislative session after significant debate among stakeholders regarding product standards, underage use, regulation, and retail impacts.

HSB 690 — “American Beer” Excise Tax Proposal FUELIowa Position: Support Final Status: Failed HSB 690, legislation proposing reductions to excise taxes on beer manufactured in the United States, ultimately failed to advance during the 2026 session as broader alcohol-related policy initiatives stalled throughout the legislative process. Concerns over lost revenues to the state during a difficult budget year were ultimately the undoing of this proposal.

HF 2676 — SNAP Purchasing & Program Changes FUELIowa Position: Monitor and Engage Final Status: Passed F U E L I O WA // w w w. F U E L I o w a . c o m

HF 2676 included changes relating to SNAP purchasing, nutrition program

29


requirements, and program administration. FUELIowa remained actively engaged regarding retailer compliance obligations, operational impacts, and implementation concerns affecting convenience stores and fuel retailers participating in SNAP programs.

HF 2527 — Greenhouse Gas Liability Protection FUELIowa Position: Support Final Status: Passed HF 2527 provides liability protections to fuel retailers against certain lawsuits relating to greenhouse gas emissions and climate-related claims. The legislation represented an important pro-active legal protection measure for fuel retailers and related businesses facing increasing litigation concerns nationwide.

Major End-of-Session Legislative Issues In addition to fuel and retail-specific legislation, the final weeks of the 2026 legislative session were dominated by negotiations surrounding property tax reform, state budget agreements, and eminent domain policy related to carbon pipeline projects. These issues consumed significant legislative attention and ultimately drove the Legislature beyond its planned adjournment date before lawmakers officially concluded session on May 3, 2026.

Property Tax Reform After months of negotiations between the House, Senate, and Governor Reynolds’ office, lawmakers ultimately reached agreement on a comprehensive property tax reform package that included new limitations on local government revenue growth and broader reforms aimed at reducing long-term property tax burdens statewide. The reform package negotiated by the House, Senate, and Governor Reynolds’ office is projected to save Iowa consumers and businesses $4 billion over the next six years.

State Budget Agreement – for state fiscal year 2027 Legislative leaders also finalized the Fiscal Year 2027 state budget during the closing days of session after extended negotiations between the House and Senate Republican caucuses. Budget discussions were heavily shaped by slowing state revenue projections and broader fiscal concerns following the March Revenue Estimating Conference. Ultimately, lawmakers approved a $9.65 billion budget for state fiscal year 2027. To meet their budget target, lawmakers were forced to tap Iowa’s taxpayer relief fund. The state fiscal year 2027 budget represents a 1.43 percent increase over the state fiscal year 2026 budget.

Eminent Domain and Pipeline Policy

30

Eminent domain and carbon pipeline legislation remained one of the most politically sensitive and closely watched issues of the session. Debate surrounding pipeline siting authority, landowner protections, and eminent domain authority continued throughout the year and remained a major point of discussion among legislators and stakeholders during final negotiations. This contentious issue is likely to rise again in 2027.


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fund. The state fiscal year 2027 budget represents a 1.43 percent increase over the state fiscal year 2026 budget.

Eminent Domain and Pipeline Policy Eminent domain and carbon pipeline legislation remained one of the most politically sensitive and closely watched issues of the session. Debate surrounding pipeline siting authority, landowner protections, and eminent domain authority continued throughout the year and remained a major point of discussion among legislators and stakeholders during final negotiations. This contentious issue is likely to rise again in 2027.

Conclusion The Legislature has transitioned into the interim period, attention will now quickly shift toward the 2026 election cycle. With Iowa’s Primary elections in the rearview mirror, he November general election will play a significant role in shaping the composition of the Iowa Legislature and the policy priorities heading into the 2027 session. Many of the issues debated during the 2026 session including fuel taxation, nicotine and vapor regulation, cigarette taxation, alcohol distribution policy, SNAP requirements, and energy infrastructure issues are expected to remain central topics moving forward. Additionally, Iowa’s biofuels tax credit program is set to expire on January 1, 2028, making the 2027 session the final session for modification to Iowa’s biofuels tax credit program. FUELIowa’s engagement throughout the 2026 legislative session would not have been possible without the continued involvement, responsiveness, and support of its members across the state. Member outreach, operational expertise, testimony, and direct communication with legislators played a critical role in advancing industry priorities and shaping legislative discussions throughout the session. We sincerely appreciate the time, effort, and collaboration provided by FUELIowa members throughout the legislative session and look forward to continuing this work together during the interim and into the 2027 legislative session. Together, we fuel Iowa.

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PAC CONTRIBUTIONS As of 4/21/26 PAC CONTRIBUTIONS

VISIONARY ($5,000+) As of 4/21/26 $10,300 - Don Burd - Otter Creek Country Stores* V ISIONARY ($5,000+) $5,000 - Tessa Anderson - Rainbo Oil Company* $10,300 Don Burd - Otter Creek Country Stores* $5,000 - Larry Bentler - Jet Gas Company* $5,000 - Tessa Anderson - Rainbo Oil Company* $5,000 - ($2,500-$4,999) Larry Bentler - Jet Gas Company* LEADER $4,000 - Cliff & Dave Reif - Reif Oil * LEADER- ($2,500-$4,999) $3,730 Todd Kanne - Community Oil Co* $4,000 & Dave Reif - Reif Oil Oil * & Propane* $2,500 Cliff Thomas Flogel - Mulgrew $3,730 Kanne --Community Oil Co* $2,500 - Todd Brett Kimmes Kimmes Enterprises Thomas Flogel - Mulgrew Oil & Propane* $2,500 - Jason McDermott - McDermott Oil* $2,500 - Brett Kimmes Kimmes Enterprises Keith Olsen - Olsen Fuel Supply* Jason McDermott Oil* $2,500 - Andrew Woodard - McDermott Elliott Oil Company* $2,500 - Keith Olsen - Olsen Fuel Supply* $2,500 - Andrew Woodard - Elliott Oil Company* PARTNER ($1,000-$2,449) $2,000 - Jennifer Likes - Harms Oil PARTNER ($1,000-$2,449) $1,500 - Marc Beltrame - Beltrame Law Firm $2,000 - Josh Jennifer Likes - HarmsOil Oil $1,500 Gilroy - Grysson $1,500 - Marc Beltrame Beltrame Gary Koerner - FUELIowa Law Firm $1,500 Gilroy- -FUELIowa Grysson Oil $1,000 - Josh Jim Ewing $1,500 - Brooke Gary Koerner FUELIowa $1,000 Lilley - -Jet Gas Company* $1,000 - Jim Ewing FUELIowa Nate Lincoln - Lincoln Farm & Home Service Brooke Lilley - -Jet Gas Company* $1,000 - John Maynes FUELIowa Nate Lincoln Lincoln Farm Home Service $1,000 - David & Matt- Scheetz - The & Depot Express $1,000 - John Maynes - FUELIowa $1,000 - David & Matt Scheetz - The Depot Express FRIEND ($500-$999) $500 - Sarah Bowman FRIEND ($500-$999) $500 - Doug Coziahr $500 - Sarah Bowman $500 - Doug Coziahr

GOAL : $75K YTD: $53.61k GOAL : $75K 71.48% YTD: $53.61k

71.48% DONORS: GOAL: 50 DONORS: YTD: 27 GOAL: 54% 50 YTD: 27 54%

CONTRIBUTOR ($0-$499)

$250 - Dennis Jaeger $125 - John Meehan CONTRIBUTOR ($0-$499) $100 $250 -- Kathy DennisGunlock Jaeger $100 $125 -- Reo JohnMenning Meehan $100 - Kathy Gunlock $100 - Reo Menning

F U E L I O WA // w w w. F U E L I o w a . c o m

*

Fuel Marketer Leader Program

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GY M AR KETERS INSIDE THE BELTWAY ENER OF AM ER I CA

May 1 Inside the Beltway Update On April 30, the House of Representatives passed the Republican-led farm bill by a vote of 224-200, marking the most significant progress on such legislation since the 2018 reauthorization. While the bill received crucial support from some moderate and rural Democrats, it still faces significant challenges in the Senate due to deep-seated policy disagreements. The path forward remains uncertain, as Democratic leaders aim to delay or reverse the proposed cuts to food assistance programs. House Democrats, including ranking member Angie Craig (D-MN), are looking to the Senate to produce a more bipartisan version that removes what they describe as “poison pills” regarding pesticide and livestock provisions. Senate Agriculture Committee Chair John Boozman (R-AK) has indicated that he expects to strip away controversial elements to meet the 60-vote threshold required for passage, with a goal of moving the legislation forward within weeks rather than months. Most importantly, due to significant disagreements, a separate plan

F U E L I O WA // w w w. F U E L I o w a . c o m

regarding year-round E15 fuel sales

contributed to the legislative

was decoupled from the main bill

gridlock included changes to

and will be voted on independently

SNAP eligibility for hot food, bans

on May 13. This move was intended

on certain animal testing, and the

to placate oil-state lawmakers who

removal of emissions mandates

had threatened to block the broader

on farm equipment. EMA and a

package. The farm bill was delayed

coalition of other major retailer

earlier in the week due to an internal

associations strongly oppose

revolt over several contentious policy

proposed restrictions on items like

issues. The central point of contention

soft drinks or candy, citing $1.6 billion

was the proposal to permit year-

in upfront compliance costs and

round, nationwide sales of E15 fuel.

significant administrative hurdles.

While supported by many farm-

They contend that vague definitions

state lawmakers, the measure was

and the constant introduction of

opposed by small refineries and their

new products would make these

allies, who argue that it would leave

restrictions impossible to manage at

them vulnerable to compliance costs.

the point of sale, ultimately risking

A coalition of small and independent

higher prices and reduced food

refineries wrote to Speaker of the

access for SNAP recipients.

House Mike Johnson (R-LA) to express their strong opposition to the year-

Also on April 30, Congress ended a

round sale of E15. They argue that

record-breaking 76-day shutdown

the amendment would benefit large,

of the Department of Homeland

integrated oil companies while

Security (DHS) by passing a

causing “tremendous economic

bipartisan bill to restore funding to

harm” to smaller, more vulnerable

most of its agencies. This measure,

refineries. While the companies state

which President Trump is expected

that they do not oppose biofuels, they

to sign, provides full funding through

advocate for balanced RFS reform

September for the Coast Guard,

that would enable year-round E15

TSA, Secret Service, FEMA, and the

sales and provide relief from high RIN

Cybersecurity and Infrastructure

prices, which they estimate currently

Security Agency (CISA). Notably,

add 35 cents or more per gallon to

the legislation excludes funding

fuel costs.

for immigration enforcement agencies, specifically Immigration

Furthermore, a Congressional Budget

and Customs Enforcement (ICE) and

Office (CBO) estimate found that the

Border Patrol. Republicans intend

E15 plan would add billions of dollars

to address those agencies through

to the federal deficit. This alienated

a separate, party-line package by

fiscal hawks and undermined efforts

June 1, using special budget powers

to keep the farm bill budget-neutral.

to bypass the Senate filibuster.

Beyond ethanol, the bill faced a significant challenge regarding pesticide preemption language. Other proposed amendments that 37


Temporary Rule Issued for IRC §6435 Dyed Fuel Refunds

As a reminder, the EMA Board of

This push for swifter action is

Directors voted in favor of supporting

supported by groups like NACS,

a 1-pound waiver for E15 to enable

which noted that the influx of illicit

year-round sales via a permanent

products has grown out of control.

Today, the Treasury Department and

Meanwhile, nineteen members of the

reached a bipartisan agreement

the IRS issued a temporary regulation,

House, led by Rep. Richard Hudson

on a topline funding figure for the

together with a notice of proposed

(R-NC), have sent a letter to FDA

upcoming surface transportation

rulemaking, implementing new

Commissioner Dr. Martin Makary

reauthorization bill, setting the

Internal Revenue Code §6435. The

urging them to take aggressive action

amount between $550 and $600

temporary rule addresses a narrow

against the proliferation of illicit

billion. This consensus brings the

and specific transaction -- clear

vapor and nicotine pouch products.

committee closer to finalizing the

(undyed) diesel fuel or kerosene on

The legislators highlight a crisis in

legislative text and moving toward

which the §4081 federal excise tax

which the U.S. market is currently

a markup, which is tentatively

has been paid, that is subsequently

overwhelmed by unregulated

scheduled for the week of May

indelibly dyed at a terminal and

products, primarily originating from

18. Committee Chair Sam Graves

removed for a nontaxable use.

China, while the FDA's own approval

(R-MO), despite his upcoming

Section 6435, created by last year’s

process remains significantly delayed.

retirement, remains committed to

One Big, Beautiful Bill, establishes a

Despite receiving over 26 million

seeing the reauthorization signed

new statutory refund mechanism for

applications for review, the FDA has

into law before current programs

the tax paid on that fuel, applicable

authorized only about 60 products

expire.

to eligible dyed fuel removed on or

to date. This regulatory bottleneck

after December 31, 2025.

has resulted in a market where

However, significant challenges

an estimated 85% of products are

remain as lawmakers work toward

currently illicit.

the September 30 deadline to avoid

legislative fix at our Fall Meeting in Chicago last October.

The House Transportation and Infrastructure Committee has

May 8, 2026 Inside the Beltway Update Barring any surprise procedural snag (House Rules Committee), the House is on track to vote on year-round E15, May 13. Passage odds in the House look decent, but the Senate would be the bigger hurdle later. Please reach out to your U.S. Representatives today and ask them to vote YES on H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act. The bill would prevent the emergence of fragmented “boutique” gasoline markets in Midwestern states that have opted out of the E10 waiver. Such boutique markets could disrupt gasoline supplies, raise costs, reduce fuel fungibility, and ultimately drive-up prices at the pump for consumers.

38

a simple clean extension of existing To combat this issue, the

programs. Even if the committee

congressional letter outlines three

successfully advances the legislation

specific strategies: improving

this month, there is limited floor time

regulatory clarity, addressing the

available for debate. Furthermore,

massive backlog of premarket

the bill must still navigate input from

applications, and strengthening

several other key bodies, including

enforcement efforts. The members

the House Ways and Means

of Congress argue that the lack of

Committee and various Senate

clear information regarding product

panels, many of which have not yet

denials makes it difficult for retailers

scheduled markups or released their

and consumers to make informed

own legislative.

decisions, while the slow pace of authorizations, which includes only

Trump Administration Withdraws

39 vapor and 26 pouch products,

Appeal of Biden-Era Overtime Rule,

fails to meet demand and drives

Delivering Relief to Energy Marketers

illegal behavior. Furthermore, the

In a swift and decisive move

letter recommends that the FDA

welcomed by business advocates,

collaborate with the Department of

the U.S. Department of Labor (DOL)

Justice’s multi-agency task force to

under the Trump administration has

utilize every available tool to remove

formally withdrawn its appeal of the

illegal products from the marketplace.

Biden-era 2024 overtime rule. The


action, taken via a joint stipulation

marketing and convenience store

satisfy both the salary and

filed yesterday in Flint Avenue LLC v.

operations. Many of our members

duties tests under the 2019 rule.

DOL before the U.S. Court of Appeals

employ salaried managers,

for the Fifth Circuit, ends all litigation

dispatchers, sales professionals, and

over the rule and confirms that the

administrative staff who routinely

proposals that could adjust

more stringent salary thresholds will

work variable and often extended

thresholds in the future.

never take effect. The Biden-era rule is

hours to meet customer needs,

dead, not enjoined.

especially during severe weather events, supply disruptions, or peak

• Stay alert for any new DOL

• Consult with legal counsel or

HR professionals regarding

The Biden administration’s April 2024

demand periods.

compliance with both federal

final rule would have dramatically

The withdrawn rule would have

FLSA requirements and any

raised the minimum salary level

forced many marketers to either

applicable state overtime laws.

required for executive, administrative,

raise salaries for exempt employees,

For example, California, New

and professional (EAP) employees to

reclassify them as non-exempt

York, Washington, Colorado,

qualify for exemption from overtime

and pay overtime, or absorb

Alaska, and Maine all have

pay under the Fair Labor Standards

significant new labor costs. In an

state salary thresholds that

Act (FLSA). It set the weekly threshold

industry already operating on thin

exceed $35,568, and several

at $844 ($43,888 annually) effective

margins amid volatile fuel prices

index annually. EMA members

July 1, 2024, with a further increase to

and rising operational expenses,

operating in those states must

$1,128 ($58,656 annually) scheduled

those changes would have

comply with the higher state

for January 1, 2025. The highly

been particularly burdensome.

floor regardless of federal law.

compensated employee (HCE)

By preserving the current, more

threshold would also have risen.

flexible thresholds, the Trump

This development underscores the

Federal district courts in Texas had

administration’s action provides

value of proactive engagement

already vacated the rule, determining

immediate regulatory certainty and

with policymakers to protect the

that the DOL exceeded its statutory

helps control payroll costs for small

operational flexibility our industry

authority by relying too heavily on

and mid-sized energy businesses

needs to deliver reliable, affordable

salary levels rather than job duties.

nationwide.

energy to American consumers and

With the appeal now withdrawn,

This outcome aligns with EMA’s long-

the salary thresholds established by

standing advocacy for practical,

the 2019 rule remain firmly in place:

business-friendly labor policies that

$684 per week ($35,568 annually)

recognize the unique demands of

for standard EAP exemptions

energy marketing and distribution.

and $107,432 in total annual

We will continue to monitor any

compensation for HCE exemptions.

future DOL rulemaking on overtime

Employers must continue to meet

exemptions and stand ready to

the applicable duties tests for each

provide member input.

businesses.

exemption category.

FDA Issues PMTA Authorizations for Glas Vapor Products *First PMTA MGOs for Flavored Vapor Products*

Next Steps for Members

The FDA issued PMTA Marketing

While the Biden-era expansion is

(Blueberry) – all with 5% nicotine

Energy Marketers of America

now permanently off the table,

content. These authorizations are

represents family-owned and

employers should:

the first for flavored vapor products.

Why This Matters for EMA Members independent businesses that keep America’s fuel supply chain

• Review current employee

classifications to ensure they

Granted Orders (MGOs) for four Glas vapor pods, Classic Menthol, Fresh Menthol, Gold (Mango), and Sapphire

The FDA also recognized the Glas G2technology, which includes

moving—from wholesale distribution

Bluetooth-enabled device-level age

and heating oil delivery to propane

verification and access controls.

F U E L I O WA // w w w. F U E L I o w a . c o m

39


In March, FDA issued MGOs to

neither collect nor can afford to

involvement in the defense of the

the Glas G2 device and a Blonde

compile.

costly and unnecessarily intrusive climate change disclosure rules." The

Tobacco 5% pod. With these recent authorizations, the FDA has now

EMA raised these concerns

Eighth Circuit, however, declined the

issued MGOs for 45 vapor products:

directly with the SEC in comments

SEC's subsequent request to simply

submitted in June 2022, noting

rule on the merits, instead holding the

Vapor Products Authorized by the

that energy marketers lack the

case in abeyance and directing the

FDA

compliance infrastructure of large

Commission to either formally rescind

public companies, and that the

the rule through notice-and-comment

SEC Moves to Rescind Biden-Era

reporting burden would effectively

rulemaking or renew its defense in

Climate Disclosure Rule

be passed down the supply chain

court.

The Trump administration is taking

to businesses that are not even

formal steps to permanently eliminate

subject to SEC jurisdiction. EMA also

The OMB submission represents the

the Securities and Exchange

flagged significant privacy concerns

SEC's response to that directive

Commission's (SEC) climate disclosure

— including the exposure of

— initiating the formal rulemaking

rule — a regulation that, had it

competitively sensitive sales volumes

process needed to permanently

been implemented, could have

— and warned that marketers

rescind the rule.

imposed compliance burdens on

unable to provide Scope 3 data to

energy marketers throughout the fuel

their suppliers could lose business

distribution supply chain. The White

entirely, threatening the viability of

House Office of Management and

smaller operations.

Budget (OMB) received a formal SEC proposal to rescind the rule on May 4, 2026, marking the most concrete administrative action toward permanent elimination since the rule was adopted in March 2024.

Background: Why Energy Marketers Were Concerned

A Tortured Legal and Regulatory History The rule never took effect. Within days of adoption, a myriad of legal petitions were filed challenging the rule, including a lawsuit by 25 Republican state attorneys general and the U.S. Chamber of

The Biden-era rule would have

Commerce. Even environmental

required publicly traded companies

groups filed challenges, arguing that

to disclose material climate-related

the final rule was not as protective

risks and, critically, greenhouse

to investors as initially proposed. The

gas emissions from their entire

challenges were consolidated in the

value chain — including Scope 3

U.S. Court of Appeals for the Eighth

emissions generated by downstream

Circuit. The SEC voluntarily stayed

customers and business partners.

implementation in February 2025

For fuel marketers, the “knock on”

due to the pending litigation; thus,

implications were that oil majors and

the rule never took effect.

other public company suppliers would

40

What Happens Next Once OMB completes its review, the proposal returns to the SEC for a commissioner vote before public release. A standard notice-andcomment period will follow before a final rescission rule can be adopted — a process that typically takes several months. EMA will monitor these developments and engage in the public comment process as appropriate. This is a significant development in a long-running battle that EMA has been part of from the beginning. While formal rescission is not yet final, the regulatory trajectory is clear. EMA will continue to advocate for energy marketers' interests throughout the rulemaking process.

May 15, 2026

have been required to track and

In March 2025, the SEC voted to

report data from their downstream

withdraw its defense of the rule

Inside the Beltway Update

customers' day-to-day operations —

entirely, with Acting Chairman

On May 13, the House of

data that most energy marketers, as

Uyeda stating the goal was

Representatives passed a bill, with

small and family-owned businesses,

to "cease the Commission's

a vote of 218-203, to allow the year-


round sale of E15 ethanol-blend

businesses. The Merchant Payments

fuel, a move intended to support

Coalition and other opponents warn

corn farmers and provide a cheaper

that expanding these exemptions

domestic fuel option amid high gas

would increase inflation at the

prices. While the vote is a victory for

checkout counter and add to the

Midwestern lawmakers, the legislation

significant financial burden swipe

faces an uphill battle in the Senate

fees already place on American

due to entrenched opposition from

families, who currently pay an

oil-state representatives. Opponents

average of $1,200 more per year

of the measure, including oil refiners,

due to these costs.

environmental groups, and fiscal hawks, cite concerns regarding rising compliance costs, potential climate harm, and a CBO analysis indicating the bill would add billions to the federal deficit over the next decade. The EPA has proposed a twoyear delay and a comprehensive rewrite of the "Tier 4" conventional pollution standards for new lightduty vehicles, pushing the initial compliance deadline from 2027 to 2029. Administrator Lee Zeldin stated that the move aims to "return EPA regulations to reality" by addressing insufficient electric vehicle adoption rates and restoring consumer choice. The agency plans to use the delay to reconsider the entire Tier 4 program, including its emission standards and phase-in schedules, while current Tier 3 standards remain in place for the interim. The Merchants Payments Coalition and 17 other trade groups have sent a letter urging the Senate Banking Committee to reject a proposal that would raise the asset threshold for debit card swipe fee regulations from $10 billion to approximately $15 billion. This legislative change would exempt dozens of banks from current fee caps, potentially allowing them to charge an average of 62 cents per transaction, nearly triple the current regulated rate, and resulting in higher prices for consumers and small

F U E L I O WA // w w w. F U E L I o w a . c o m

EMA Submits Comprehensive Comments on PEI/RP900

May 22, 2026 Inside the Beltway Update The House Transportation and Infrastructure Committee on Thursday, advanced the BUILD America 250 Act (H.R. 8870), a bipartisan five-year surface transportation reauthorization bill totaling approximately $580 billion. Passed by a strong 62-2 committee vote, the legislation seeks to reauthorize core programs for highways, bridges, transit, rail, and hazardous materials safety before the current law expires on September 30, 2026. While this represents a significant legislative step, the bill must still

The Energy Marketers of America

navigate the full House, Senate, and

(EMA) has formally submitted

conference process before it can be

detailed comments to the

enacted.

Petroleum Equipment Institute (PEI) on the latest draft or revision of PEI/

A key component of the legislation

RP900: Recommended Practices for

is the creation of a new revenue

the Inspection and Maintenance

stream for the Highway Trust Fund

of Underground Storage Tank (UST)

(HTF), marking the first such addition in

Systems.

over 30 years. The bill imposes annual federal registration fees of $130 for

Widely recognized as the primary

battery electric vehicles (EVs) and

industry reference for proper

$35 for plug-in hybrids (PHEVs), with

UST inspection, operation,

fees scheduled to increase by $5

and maintenance, PEI/RP900

every two years starting in 2029. This

consolidates guidance from

measure is designed to address the

equipment manufacturers,

decline in gas and diesel tax revenue

contractors, marketers, and

as EVs become more prevalent,

regulators. It is also explicitly

ensuring that the infrastructure

referenced in the 2015 EPA UST

used by fuel delivery trucks remains

regulations as an acceptable

funded without solely burdening

code of practice for meeting

traditional fuel users. States face a

federal walkthrough inspection

125% withholding penalty for non-

requirements. EMA’s input is

compliance, and though these fees

intended to strengthen the

are currently lower than traditional

document’s clarity, technical

fuel taxes, they mark a directional

accuracy, consistency, and real-

shift in how EV drivers contribute to

world applicability for fuel marketers

infrastructure. Additionally, the bill

operating gasoline, diesel, and

reauthorizes Road Usage Charge

biofuel systems nationwide.

and per-mile user fee pilots through 2031, signaling a potential long-term move toward a VMT-based revenue collection system. 41


The legislation also codifies "Jason’s

funds as a "gimmick" used to cover

Law," creating a competitive grant

an inadequate budget. The bill

Gallon of Gasoline & Ways to

program for commercial vehicle

proposes maintaining mandatory

Reduce Gas Prices

parking while requiring consultation

spending for highway and airport

with private providers to prevent

trust fund-supported programs at

EMA presented its signature UST

publicly subsidized competition

$83.3 billion. It includes $4 billion for

Graphic and a detailed diagram

with private truck stops. The bill also

the Federal Aviation Administration’s

of the refined products distribution

establishes weight parity for hydrogen

Facilities and Equipment account,

system to illustrate how crude oil

vehicles with existing gas and battery-

with $1 billion of that total

costs, refining, distribution, marketing,

electric exemptions and allows 10%

redirected from an electric vehicle

and taxes combine to form the final

axle weight variances for CMVs

charger grant program.

pump price. Discussions focused

carrying dry bulk goods. The bill also establishes restroom access requirements for CMV operators at “covered establishments” during loading and unloading, with specific obligations on marine terminal operators (including port authorities) to provide accessible restrooms and parking for drayage truck operators. Notably, the section does not require physical modifications which softens what could otherwise have been a significant facility-investment mandate for petroleum terminals and bulk plants. Also this week, the House Appropriations Subcommittee on Transportation, Housing and Urban Development advanced the fiscal 2027 Department of Transportation (DOT) spending bill in a 9-7 party-line vote. The legislation is characterized by its heavy reliance on repurposing nearly $8 billion originally allocated in the 2021 infrastructure law. This funding strategy has led to conflicting interpretations. Republican summaries suggest an increase in discretionary spending, while Democrats argue the bill represents a year-over-year cut. While Subcommittee Chair Steve Womack (R-AR) maintains that the bill prioritizes essential sectors like air traffic control, highways, and freight rail, Ranking Member Jim Clyburn (DSC) has dismissed the repurposing of 42

Energy Marketers of America Holds Successful DC Conference and “Day on the Hill” The Energy Marketers of America (EMA) successfully concluded its 2026 Washington Conference & Day on the Hill, held May 13-15 at The Mayflower Hotel. During the event, EMA members and staff visited more than 350 Congressional offices to advocate for policies supporting fuel marketers, convenience store operators, and heating fuel providers nationwide. “EMA’s strong turnout on the Hill demonstrates our industry’s unified voice on issues that directly affect consumers, small businesses, and energy security,” said EMA President Rob Underwood. “We appreciate the engagement from lawmakers and remain committed to working with Congress to advance practical solutions.” In meetings with lawmakers and staff, EMA highlighted several priority issues critical to maintaining a reliable, affordable, and efficient energy supply chain:

• What Consumers Pay in a

on practical policy solutions to lower consumer costs, including streamlining permitting, supporting domestic production, and addressing regulatory burdens that drive up prices. • IRS Processing Delays of

Federal Motor Fuel

EMA raised ongoing concerns about delays by the Internal Revenue Service in processing federal motor fuel excise tax (FET) ultimate vendor claims—particularly refunds for taxpaid diesel fuel sold to state and local governments. These delays create cash-flow hardships for small business marketers and disrupt operations; EMA urged Congress and the IRS to restore timely processing. • Payments Policies Impacting

Convenience Stores

Marketers highlighted their concerns over skyrocketing credit card interchange (“swipe”) fees and evolving payment processing regulations that squeeze retailer margins. • THC and Hemp Policy for

Convenience Stores

EMA emphasized the need for balanced federal oversight of hempderived products (consistent with the 2018 Farm Bill) that allows responsible sales while ensuring consumer safety, product compliance, and economic


opportunity for c-store operators.

Semrau of Worldpay.

including Senate Finance, Banking, and Commerce, as well as House

The Board of Directors Meeting

Ways and Means and Energy and

featured Jon Medo and Dave

Commerce, the latter of which has

EMA stressed the importance of

Szymanski of Federated Insurance

already marked up sections on motor

reliable and affordable heating fuel

and Amber Moore of Altria Group

vehicle safety.

supply for American homes. Key

Distribution Company. The Board

topics included strong continued

of Directors also heard from EMA

As the bill moves forward, key

support for the National Oilheat

VP Sherri Stone and EMA Disaster

debates are expected to center

Research Alliance (NORA) and other

Response Director Sam Bell over the

on the Highway Trust Fund's funding

heating fuel priorities to maintain

latest with EMA's efforts to streamline

shortfalls, permitting reforms, and the

consumer choice, safety, and winter

hours of service waivers.

role of climate initiatives. Tensions also

• Heating Fuels Issues

exist regarding rail safety legislation,

reliability. EMA thanks its generous sponsors

which was added to the House bill

The conference also featured a full

for making the conference possible:

via amendment but faces opposition

schedule of educational sessions and

Federated Insurance, Altria Group

from Chairman Graves. On the

high-level briefings. EMA President

Distribution Company, Marathon,

Senate side, EPW Chair Shelley Moore

Rob Underwood opened the event

Reynolds American, PMI US, BP

Capito (R-WV) has outlined principles

with a Congressional briefing.

Products North America, HF Sinclair,

that prioritize accelerating permitting

Andrea Pavon of the National

Shell, Valero, ExxonMobil, CITGO,

and eliminating duplicative programs.

Propane Gas Association (NPGA)

and Chevron.

Additionally, Senate Finance Ranking Member Ron Wyden (D-OR) said

provided an overview of NPGA’s Administrative Compliance Services

Inside the Beltway Update – May 29

he considered the proposed fee

to help marketers meet FMCSA

The BUILD America 250 Act, has

on electric vehicles and hybrids

Entry-Level Driver Training credential

been approved by the House

“off the table” and EPW Ranking

requirements. Larry W. Minor of the

Transportation & Infrastructure

Member Sheldon Whitehouse (D-RI)

U.S. Department of Transportation’s

Committee. Rep. Sam Graves (R-

is also against the fee. Despite these

Federal Motor Carrier Safety

MO), chair of the Committee and

challenges, the historically bipartisan

Administration (FMCSA) addressed the

Rep. Rick Larsen (D-WA), Committee

nature of such reauthorizations

Northeast Region regarding federal

Ranking Member, said they look

suggests that the current House and

hours of service waivers. The Southern

forward to moving the bill to the

Senate efforts will eventually be

Region Committee heard from Phil

House floor in the near future and to

reconciled into a final package but

Squair of Colonial Pipeline, and Chris

it passing prior to September 30th,

the ability to meet the September

Elliott of the BP AMOCO Marketers

when the current reauthorization

30th deadline remains in question,

Association (BPAMA) delivered

expires. Despite the bipartisan

and negotiations will need to move

remarks during the Washington Salute

start in the House, several hurdles

quickly.

to EMA Chairman Glenn Hasken.

threaten the September 30th deadline. There are significant policy

Committee sessions offered deeper

disagreements between House and

dives into sector-specific challenges:

Senate leadership. Mainly, provisions

Heating Fuels Committee – Featured

regarding proposed fees on electric

Chris Brennan of Sprague Energy

vehicles and the repeal of climate-

and Michael Devine of NORA; Motor

related programs complicate a

Fuels Committee – Included Holly

timely deal. The legislative scope

Alfano of the Independent Lubricant

of the act is also broad, involving

Manufacturers Association (ILMA),

multiple committees of jurisdiction

who addressed the nationwide base oil supply crunch; Convenience Store Committee – Heard presentations from Jim Duke of PMI US and Chris F U E L I O WA // w w w. F U E L I o w a . c o m

June 5, 2026 Inside the Beltway Update A bipartisan group of Senators, including Sen. Todd Young (R-IN) and Sen. Angela Alsobrooks (D-MD), have proposed repealing the 12% federal excise tax on heavy-duty trucks. Proponents of the bill argue that the current tax significantly inflates the cost of new equipment, adding between $15,000 and

43


criticism from Democrats, who argue

$30,000 to the price of a new truck, trailer, or tractor, which discourages

During the June 4th vote-a-rama,

the GOP is "raiding" the 2021 law to

companies from upgrading their

a legislative proposal by Sen. Jack

mask "woefully inadequate" funding

fleets. By removing this tax, lawmakers

Reed (D-RI) intended to significantly

allocations. DOT subagencies face

aim to incentivize the purchase of

increase financial support for

various reductions and shifts in

newer, cleaner, and safer models,

energy and housing assistance

funding sources. The Federal Transit

noting that approximately 20% of the

was rejected by the Senate. The

Administration (FTA) would see a

largest trucks currently on the road

amendment sought to allocate

$1.7 billion cut in total budgetary

still use engines manufactured before

$62 billion toward the Low Income

resources, with its Capital Investment

2010. Sen. Alsobrooks emphasized

Home Energy Assistance Program

Grants receiving no new money

that the legislation would support a

(LIHEAP) and other affordable

and instead relying on $737 million

more fuel-efficient industry by making

housing initiatives by repurposing

in repurposed funds, a significant

it easier for companies to adopt

funds from a larger Republican

drop from the $1.7 billion in new

modern technology. However, the

reconciliation bill. Despite the

spending it received in fiscal 2026.

proposal faces a significant hurdle

effort to prioritize utility aid for

The Federal Highway Administration

regarding infrastructure funding; the

struggling families, the measure

(FHWA) would see a $1.3 billion cut,

excise tax currently generates more

failed to reach the necessary 60-

with new General Fund spending for

than $6 billion annually dedicated

vote threshold during a high-speed

highway programs eliminated in favor

to road construction and repairs.

voting session. Despite the effort

of transfers. In contrast, the National

Because Congress has historically

to prioritize utility aid for struggling

Highway Traffic Safety Administration

struggled to find replacement

families, the measure failed to

(NHTSA) would see an $81 million

revenue for the highway fund, the

reach the necessary 60-vote

increase in total budgetary resources,

loss of this billion-dollar income stream

threshold during the high-speed

while the Federal Motor Carrier Safety

presents a challenge for future road

voting session. Despite this setback,

Administration (FMCSA) would face a

maintenance.

the fight for LIHEAP funding is not

$5 million cut due to reduced motor

over. Congress is likely to pass a

carrier safety grants.

The Senate passed the homeland

continuing resolution to sustain the

DOE Eliminates Fuel-Switching Rebates

security reconciliation bill late on

funding levels for LIHEAP later this

Under IRA Home Energy Rebate

June 4, 2026, following a marathon

year.

Programs

early morning hours. The Republican-

House Republican appropriators

The U.S. Department of Energy

led package, which uses the budget

have unveiled a fiscal year 2027

(DOE) has issued updated program

reconciliation process to provide

Department of Transportation

guidance that eliminates the use of

roughly $70 billion in dedicated

(DOT) spending bill that relies

federal rebate funds to incentivize

funding for Immigration and Customs

heavily on repurposing funds from

consumers to switch from heating oil,

Enforcement (ICE), Customs and

the 2021 infrastructure law to

propane, or natural gas systems to

Border Protection (CBP), and other

sustain rail and transit agencies.

electric heat pumps. The change is

Department of Homeland Security

Under the proposal, the DOT

significant for EMA members whose

priorities, cleared the chamber on a

would face a $4.7 billion cut in

customers had been exposed to

party-line vote. This marks a significant

total new budgetary resources,

federally subsidized campaigns

victory for Senate Republicans,

dropping from $108.4 billion to

encouraging replacement of

delivering multi-year resources to

$103.7 billion. However, by utilizing

conventional heating equipment.

bolster immigration enforcement

$7.9 billion in transfers, money from

Regulatory Background

and border security after months

the already appropriated Biden-

of negotiations and a partial

era package, the department

The Inflation Reduction Act (IRA)

government shutdown earlier in the

would actually see a $1.2 billion

established nearly $9 billion in federal

year. With the bill now headed to

year-over-year increase in total

funding across three home energy

the House, it sets the stage for final

available funds, reaching $111.6

rebate programs:

congressional action on one of the

billion. This strategy has drawn

vote-a-rama that stretched into the

session’s top GOP priorities. 44


DOE-approved insulation standard.

for new rebate approvals. In sum,

to $8,000 for whole-home energy

This requirement substantially raises

federal policy in this context is

efficiency improvements

the cost and complexity bar for

no longer a source of downward

(Program Notice 26-1)

electrification retrofits.

demand pressure. States must realign

• HOMES Rebate Program — up

their programs by August 29, 2026. Liquid Fuel Equipment May Stay

Previously approved rebates may be

and Territories — up to $14,000

Households may now retain their

honored, but the pipeline for new

for specific appliances and

existing heating systems even

fuel-switching incentives is closed.

equipment administered by state

when installing a heat pump. The

energy offices (Program Notice

heat pump need not become

• HEEHR Program for States

26-2)

the primary heating source for the rebate to apply. This means

• HEEHR Program for Indian Tribes

conventional heating equipment is

— a separate version

no longer required to be removed

administered directly by federally

as a condition of rebate eligibility.

recognized Tribes (Program

Justice40 Requirements Removed

Notice 26-3)

DOE has eliminated all program requirements related to the

Under the Biden Administration's

Justice40 Initiative, which required

original program design, these

reserved allocations to certain

funds were explicitly structured to

low-income households fitting a

encourage homeowners to remove

diversity, equity, and inclusion

working fossil-fuel heating systems

parameter. Instead, the guidance

and replace them with electric heat

focuses on affordability and

pumps. That incentive structure has

consumer choice with more

now been eliminated.

concrete parameters.

Key Changes — What the New Guidance Does

Fraud, Waste, and Abuse Controls

Fuel-Switching Rebates Eliminated Going forward, rebates under all three programs are limited to upgrading existing electric equipment to more efficient electric equipment, and to qualifying new construction. Homes that heat with oil, propane, or natural gas are no longer the target of a federally subsidized electrification campaign. Weatherization Required First DOE now requires that homes complete insulation and air sealing upgrades before accessing heating and cooling equipment rebates — unless the home already meets a F U E L I O WA // w w w. F U E L I o w a . c o m

Strengthened States are now required to vet contractors through the U.S. Treasury's "Do Not Pay" database and implement a Fraud, Waste, and Abuse Mitigation Plan. Implications for EMA Marketers The DOE has fundamentally redirected one of the largest home energy subsidy programs in American history. Nearly $9 billion in IRA funding — originally designed under the Biden administration to accelerate the replacement of oil, propane, and gas heating systems with electric alternatives — will no longer serve that purpose. DOE's updated guidance closes the door on federally subsidized fuelswitching, effective immediately

EMA Strongly Opposes OCC’s Interim Actions on Credit Card Swipe Fees Last week, the Energy Marketers of America (EMA) formally submitted detailed comments to the Office of the Comptroller of the Currency (OCC) strongly opposing two controversial interim actions that threaten to lock in excessive creditcard swipe fees for independent fuel marketers and convenience store operators nationwide. In comments filed under Docket ID OCC-2026-0430 (“National Bank Non-Interest Charges and Fees”) and Docket ID OCC-2026-0431 (“Order Preempting the Illinois Interchange Fee Prohibition Act”), EMA called on the OCC to immediately withdraw both the Interim Final Rule and the accompanying Interim Final Order. EMA argues the moves do nothing to ease the crushing burden of swipe fees on small businesses and instead protect the interests of Visa, Mastercard, and the nation’s largest banks at the direct expense of Main Street fuel retailers and the consumers they serve. “EMA’s members are family-owned businesses operating on razor-thin margins,” the comments state.

45


“Excessive credit-card swipe fees

themselves. The OCC’s rushed

The Cybersecurity and Infrastructure

have become one of our largest

order, EMA says, attempts to

Security Agency (CISA), in

operating costs—second only to

manufacture preemption that the

coordination with the FBI, NSA, EPA,

payroll and often exceeding utility

court declined to find on the merits.

DOT, and other federal agencies, has issued an advisory warning of active

expenses. These fees drain billions of dollars every year from businesses

EMA also sharply criticized the

malicious cyber activity targeting

that cannot fully pass the costs along

OCC’s process, noting that both

automatic tank gauge (ATG) systems

without harming customers or losing

actions were issued as “interim

at fuel storage facilities across the

sales.”

finals” with immediate effective

United States. Federal agencies have

dates—bypassing the notice-and-

observed threat actors exploiting

The numbers tell the story: In 2025

comment requirements of the

internet-exposed ATG systems to

alone, U.S. businesses paid an

Administrative Procedure Act. “The

gain unauthorized access, execute

estimated $200 billion in swipe

agency had no ‘good cause’ to

commands, alter tank parameters,

fees, with EMA’s retailer members

skip public input,” the comments

and pump controls, disable system

shouldering approximately $15

state. “The good-cause exception

alerts, and create conditions that

billion of that total. Those costs

is narrow and reserved for genuine

could mask leaks or cause physical

have skyrocketed in recent years

emergencies. It does not excuse

damage to tank infrastructure.

with no meaningful competitive

an agency from hearing from the

pressure, reducing funds available for

thousands of small businesses its

Per the advisory, EMA urges marketers

employee wages, station upgrades,

actions directly affect.”

to take immediate action:

supply-chain resilience, and keeping • Remove ATG systems from public

fuel prices affordable for families and

The association emphasized that

communities.

its position aligns with a broad

internet exposure — use firewalls,

national consensus—from President

VPNs, or access control lists for

Rather than promoting competition,

Trump and bipartisan lawmakers to

any necessary remote access

EMA contends the OCC’s Interim

business associations, labor groups,

Final Rule blesses the current system

consumer advocates, and tribal

in which third-party networks like Visa

nations—that urgent, meaningful

immediately and implement

and Mastercard centrally dictate

reform is needed to curb excessive

strong, unique credentials with

interchange rates on behalf of the

swipe fees and restore competition

multifactor authentication where

largest banks. The rule goes far

in the payment system.

feasible

• Change default passwords

beyond credit-card fees, potentially • Apply available security patches

green-lighting collective fee-setting

“Instead of advancing that shared

for ATM fees, annual fees, late fees,

objective, these OCC actions

in coordination with certified

and more—further entrenching higher

would deliver a windfall to Visa,

ATG service providers

costs for merchants and consumers.

Mastercard, and the nation’s largest banks,” EMA concluded.

• Monitor networks for

The companion Interim Final Order

“We therefore call on the OCC to

unauthorized access and report

targets Illinois’ commonsense law

withdraw the Interim Final Rule and

suspicious activity to CISA at

that simply prohibits banks and

Interim Final Order without delay.”

report@cisa.gov or 888-282-0870

card networks from charging swipe fees on the tax and tip portions of

EMA will continue to monitor

transactions—amounts merchants

developments on this critical issue

collect on behalf of governments

and keep members informed of

and employees but never keep for

next steps.

themselves. EMA notes that a federal district court had already ruled the

Federal Agencies Urge Immediate

Illinois law is not preempted by federal

ATG Action to Mitigate

law because the fees at issue are set

Cybersecurity Risks

by the card networks, not the banks 46

BUILD America 250 Act (H.R. 8870) Update Senate Environment and Public Works (EPW) Committee Chair Shelley Moore


EMA Supports Recent California Air Pollution Rule Waivers

Capito (R-WV) has indicated that

materials safety and regulatory

an extension of the current surface

efficiency. Section 10607 requires

transportation authorization bill, which

PHMSA to conduct rulemaking

expires September 30, remains a

for enhanced safety placards

realistic possibility. While she prefers

capable of withstanding high

completing a full reauthorization

temperatures from uncontrolled

by the deadline, Capito and the

fires, applying to rail and other

committee’s ranking Democrat, Sen.

surface freight modes in response

EMA fully supports repealing the four

Sheldon Whitehouse (D-RI) have not

to incidents like East Palestine.

California air pollution rule waivers

yet reached agreement or released

Industry groups, including EMA,

recently submitted to Congress by the

official bill text.

are engaging PHMSA and plan to

EPA under Administrator Lee Zeldin.

coordinate with the Association

These submissions trigger a process

Other Senate leaders, including

of American Railroads to ensure

under the Congressional Review Act

Commerce Committee Chair Ted

the changes do not extend to

(CRA) that could allow Republicans

Cruz (R-TX), are waiting for the EPW

fuel transportation. Section 10608

in Congress to nullify portions of

Committee to complete its markup

mandates a PHMSA study, due

California’s rules.

before advancing their portions of

one year after enactment, on

the legislation, which may include

the feasibility of material-specific

This action is part of a broader

language on autonomous vehicles.

hazardous materials endorsements

effort to eliminate both federal and

Despite ongoing work in both

for commercial driver’s licenses,

state-level tailpipe greenhouse gas

chambers, those close to the process

with public comment and a report

standards, freeing automakers from

have widely expected for months

to congressional committees which

climate requirements in California and

that an extension will ultimately be

EMA sought to include. Section

the at least 12 other states that follow

needed to avoid a lapse in funding.

10604 streamlines the special

its regulations. Republican leadership

permit process by extending initial

and the auto industry have pushed

The BUILD America 250 Act includes

permits from two to four years

for these steps to prevent what they

several provisions aimed at improving

and reducing the timeline for

describe as a “backdoor” national

Highway Trust Fund solvency and

incorporating proven permits into

electric vehicle mandate.

modernizing transportation policy.

permanent hazmat regulations

Section 1129 establishes new annual

from ten to eight years.

The new batch of waivers includes older greenhouse gas rules for light-

state registration fees of $130 for electric vehicles and $35 for plug-in

The bill also repeals two

duty vehicles dating back to 2009, the

hybrids, with mandatory collection

programs from the 2021

2013 Advanced Clean Cars (ACC)

mechanisms and a 125% withholding

Bipartisan Infrastructure Law that

rule, and the Biden administration’s

penalty for non-compliance.

supported emissions reduction

reinstatement of the ACC rule after

Beginning in 2029, both fees would

and electrification. Section 1118

a previous revocation. The EPA also

increase by $5 every two years,

eliminates incentives for medium-

submitted a waiver for small off-

subject to caps of $150 for EVs and

and heavy-duty electric trucks

highway engines (such as those in

$50 for PHEVs. Section 6004 directs

and other electrification measures

lawn mowers, chainsaws, and leaf

continued analysis of a potential

at port facilities. Section 1125 fully

blowers) that requires a transition to

national vehicle miles traveled (VMT)

repeals the Carbon Reduction

zero-emission technology. Industry

fee as a replacement or supplement

Program, which had directed

groups are challenging this rule in

to the federal gas tax, including

federal highway funding toward

court, arguing that a lack of viable

studies on impacts to rural versus

projects aimed at lowering

alternatives could hinder disaster relief

urban drivers and the feasibility of

transportation-related greenhouse

efforts.

interstate interoperability for road

gas emissions. These changes

usage charge systems.

reflect a shift away from certain climate-focused transportation

Several sections focus on hazardous

F U E L I O WA // w w w. F U E L I o w a . c o m

initiatives in favor of other priorities.

47


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