MPCA NEWS ONLINE | Petroleum Marketing & Convenience Store News

April 27, 2020

1. COVID-19 Updates.

►MPCA Golf Tournament & PAC Fundraiser: Rescheduled To Monday, 9/28/2020. ►Stay At Home Orders. ►Paycheck Protection Program (PPP): Additional Funding Available Now. ►Gasoline: RVP, RFG, Waivers, & Standards (Reprint). ►Most Recent MPCA Newsletters.

2. The 2020 Missouri Legislative Session.

3. RFG Update: 5 County St. Louis Metro Area.

4. 7 Pound Low RVP Update: Kansas City Metro Area.

5. Tobacco: The Latest News From NATO - The National Association of Tobacco Outlets.

6. MPCA Members Can Save Money On:

A. Workers’ Comp Insurance. B. Health, Property & Liability Insurance. C. Employee Background Checks. D. Industry Publications & Information Including OPIS. E. Credit Card Fees. F. Retailer Alcohol Training. G. “We Card” Materials.

1. COVID-19 UPDATES.

►MPCA Golf Tournament & PAC Fundraiser: Rescheduled To Monday, 9/28/2020. Because of the uncertainty surrounding the COVID-19 pandemic, MPCA has rescheduled the Monday, 6/8/2020, Golf Tournament & PAC Fundraiser to Monday, 9/28/2020.

All we have done is change the date. The event will still be held at the same time at Osage National Golf Resort at the Lake of the Ozarks.

Thank you for your understanding, and ongoing support!

►Stay At Home Orders. On 4/16/2020, Governor Parson extended the statewide stay at home order through Sunday, 5/3/2020.

On 4/24/2020, Governor Parson extended the state of emergency declaration through 6/15/2020 and said:

“I want to be clear that this is not an extension of the ‘Stay Home Missouri’ Order. Our order reopening Missouri will still take effect on Monday, May 4. Extending the emergency declaration simply allows us to continue utilizing our resources and deploying them around the state, even as we move into the recovery process. This also enables us to keep all of the waivers or suspensions of state statutes and regulations in place while we adjust to the reopening.”

This week the Governor will provide a plan for the phased-in reopening of Missouri which starts on Monday, 5/4/2020. Stay tuned for details.

Local governments such as St. Louis County and Kansas City have extended their stay at home orders past 5/3/2020, so please make sure you review those very carefully.

►Paycheck Protection Program (PPP): Additional Funding Available Now. MPCA received the following on 4/27/2020 from the Petroleum Marketers Association of America (PMAA).

“The Small Business Administration (SBA) has resumed accepting Paycheck Protection Program (PPP) applications from participating lenders as of 10:30am EDT today.

Last Friday, the President signed into law the latest COVID-19 response bill that replenished the PPP with an additional $310 billion as well as an additional $10 billion for SBA’s Economic Injury Disaster Loan (EIDL). The bill did not make any substantive changes to the PPP or EIDL program. Congressional leadership is characterizing the latest COVID-19 response bill as an interim funding effort, with the expectation that they will continue to negotiate a larger “phase 4” package in the coming weeks.

Click here for more information on the PPP.

Click here for more information on the EIDL.”

►Gasoline: RVP, RFG, Waivers, & Standards (Reprint).

●On 4/6/2020, the Missouri Department of Agriculture, Division of Weights, Measures, and Consumer Protection, issued a memo regarding “Summer Gasoline Volatility Waiver”.

Click here to see the 4/6/20920 waiver.

If you have any questions or concerns, email Director Ron Hayes - [email protected] – and copy Ron Leone at [email protected].

●Below are several important items on this topic from recent Newsletters.

●Click here to see the 3/27/2020 email regarding the EPA’s temporary waiver for summertime RVP gasoline from the Petroleum Marketers Association of America (PMAA).

●3/30/2020 mail from Ron Hayes, Division Director, Missouri Department of Agriculture, Weights, Measures & Consumer Protection Division:

“On May 1, EPA’s summertime volatility season for gasoline begins at terminals and on June 1 at retail. The main focus is of the waiver is for terminals and pipeline companies, but applies to all points except at the refinery. Basically, there are four parts to the waiver.

Federal RVP Standards – This is referred to the summertime 9-psi vapor pressure requirement for all conventional gasoline areas. This includes all counties in Missouri except the St. Louis and KC area which will be explained below. So, the waiver means the 9 psi at terminals required for May 1 will be delayed until May 21. Winter-grade fuel may continue to be sold through May 20.

Reformulated gasoline – This part applies to the St. Louis area. “Low volatility” RFG is required be sold at terminal beginning on May 1. RFG is required year around but the low volatility fuel begins May 1. The federal requirement prohibits mixing conventional gasoline into RFG and sold as RFG. However, the waiver allows winter RFG through May 20. It also allows comingling conventional gasoline with RFG through May 20.

Federally-Enforceable SIP Covered Areas – As part of DNR SIP plan for KC area, a special 7 psi vapor pressure requirement is required during the summer months beginning on June 1 through September 15. Because lack of storage and pipeline movement, a waiver is granted until May 20 to allow the continued use of winter-grade gasoline at the terminal.

Waiver Conditions – The waiver is designed to facilitate the turnover of storage tanks from winter to summer gasoline. Refineries must comply on May 1. Retailers and wholesale purchaser-consumers may continue selling or dispensing gasoline that meets the conditions of this waiver after May 20, until their supplies are depleted.

EPA can only grant a waiver for 20 days and will likely extend it for a few additional days, if needed.

MDA will also develop a similar waiver that coincides with EPA’s. Stay Safe!”

●Click here to see the 3/31/2020 letter from the Missouri Petroleum Council to Ron Hayes, Division Director, Missouri Department of Agriculture, Weights, Measures & Consumer Protection Division.

●4/1/2020 email received from Ron Hayes, Division Director, Missouri Department of Agriculture, Weights, Measures & Consumer Protection Division.

“Ron L.: I followed up this morning on a phone call with EPA and they confirmed the waiver is effective on May 1 and is not in effect at this moment.

So, the answer is no. You cannot sell convention gasoline in the St. Louis area at this time. Ron H.”

►Most Recent MPCA Newsletters.

Click here to see the 4/24/2020 Newsletter. Click here to see the 4/17/2020 Newsletter. Click here to see the 4/13/2020 Newsletter. Click here to see the 4/8/2020 Newsletter. Click here to see the 4/4/2020 Newsletter. Click here to see the 4/3/2020 Second Newsletter of the Day. Click here to see the 4/3/2020 Newsletter.

2, THE 2020 MISSOURI LEGISLATIVE SESSION.

A. Legislative Session. The Missouri Legislature is back in Session as of Monday, 4/27/2020, 1 week before the statewide stay at home order expires at 12:01 AM on Monday, 5/4/2020.

It is unclear exactly what the Legislature intends to accomplish.

They may try to pass the following pieces of legislation that have received a great deal of press:

“CLEANER” Missouri. A Republican backed Constitutional amendment that is a response to the more Democratic leaning CLEAN Missouri that was passed by a vote of the people in 2018. The measure addresses the topic of re-districting of Congressional and state legislative districts every 10 years.

PDMP. The prescription drug monitoring program to help combat opioid addiction and abuse, which Missouri is the only state in the union which has not passed a statewide PDMP.

Tort Reform. A proposal already passed by the Senate that restricts the possibilities of plaintiffs receiving punitive damages in civil lawsuits and limits the use of the Missouri Merchandising Practices Act (MMPA) awaits a House hearing and a final House vote.

They may try to put together an omnibus piece or pieces of legislation to help address the COVID-19 pandemic.

Finally, they may try to pass any piece of legislation that is still on the calendar – biodiesel mandate, VLTs, etc.

Rest assured MPCA will continue to remain alert, vigilant, and fully engaged.

B. State Budget: $500 - $700 Million Deficit. COVID-19 funds currently flowing to Missouri are restricted and can’t be used to fill shortfalls in Missouri’s general revenue (GR) receipts.

Without federal funding to help fill the GR hole, Missouri is looking at an estimated $500 to $700 million deficit for fiscal year (FY) 2021 which runs from 7/1/2020 to 6/30/2021.

If no federal funding is forthcoming, this large of a deficit will require very painful cuts, especially to higher education, social services, and K-12 education.

Many believe the Legislature will not make the 5/8/2020 Constitutional deadline to pass the FY 2021 budget, which means Governor Parson may have to call a Special Session to pass the budget before the FY 2021 begins on 7/1/2020.

Stay tuned, because this situation is rapidly changing as more information is received from the Feds, and regarding Missouri GR receipts.

C. Schedule & Dates.

►12/1/19: Pre-filing of House and Senate bills begins. ►1/8/20: 2020 Missouri Legislative Session begins at 12:00 noon. ►3/20/20 – 3/29/20: Legislative Spring Break. ►5/8/20: FY 2021 budget must be balanced and passed. ►5/15/20: 2020 Missouri Legislative Session ends at 6:00 PM. ►7/1/20: First day of FY 2021. ►7/14/20: Last day for the Governor to sign or veto legislation. ►8/28/20: Effective date of legislation passed by the Legislature and not vetoed by the Governor that did not have an emergency clause or specific effective date. ►9/16/20: Annual Veto Session.

D. Majorities & Leadership.

►Missouri Senate. In the Missouri Senate, Republicans hold a 24-seat veto proof majority over the 10 Democrats. 23 votes are needed to override a Governor’s veto. Key Senate leadership includes:

Republicans. President Pro Tem: Dave Schatz (R-Sullivan). Majority Floor Leader: Caleb Rowden (R-Columbia). Asst. Majority Floor Leader: Wayne Wallingford (R-Cape Girardeau). Majority Caucus Whip: Sandy Crawford (R-Buffalo). Majority Caucus Chairperson: Dan Hegeman (R-Cosby).

Democrats. Minority Floor Leader: Gina Walsh (D-St. Louis). Asst. Minority Floor Leader: Kiki Curls (D-Kansas City). Minority Caucus Whip: Jamilah Nasheed (D-St. Louis). Minority Caucus Chairperson: Karla May (D-St. Louis).

►Missouri House. In the Missouri House, Republicans hold a 114-seat veto proof majority over the 48 Democrats (1 vacancy). 109 votes are needed to override a Governor’s veto. Key House leadership includes.

Republicans. Speaker: Elijah Haahr (R-Springfield). Speaker Pro Tem: John Wiemann (R-O’Fallon). Majority Floor Leader & Speaker-Elect: Rob Vescovo (R-Arnold). Asst. Majority Floor Leader: J. Eggleston (R-Maysville). Majority Caucus Whip: Steve Lynch (R-Waynesville). Majority Caucus Chair: Sonya Anderson (R-Springfield). Majority Caucus Secretary: Chris Dinkins (R-Annapolis). Policy Development Chair: Jeff Messenger (R-Republic).

Democrats. Minority Floor Leader: Crystal Quade (D-Springfield). Asst. Minority Floor Leader: Tommie Pierson Jr. (D-St. Louis). Minority Caucus Whip: Keri Ingle (D-Lee’s Summit). Minority Caucus Chair: Ingrid Burnett (D-Kansas City). Minority Caucus Secretary: Barbara Washington (D-Kansas City).

E. 2020 Election Update.

►Missouri House of Representatives. All 163 seats of the House of Representatives are up for election in November 2020. Due to term limits, there will be 35 new members coming into the House in 2021.

►Missouri Senate. 50%, or 17, of the 34 seats are up for election in November 2020. This election cycle, all odd numbered senate seats will hold elections. Due to term limits, there will be at least 11 new members coming into the Senate in 2021.

►Statewide Offices. 5 of the 6 statewide offices (not the Auditor) will be up for election in November 2020. Keep in mind that 4 of the 5 “incumbents” facing the voters in 2020 were appointed and never elected to their current statewide office due to the transition that occurred when Governor Greitens resigned.

►Ballot Issues. Ballot measures are becoming increasingly popular and the norm for major policy changes in recent years despite the large amount of funding needed to be successful. Currently, signatures are being collected to push Medicaid expansion before the voters on the November 2020 ballot. Other initiative petition (IP) rumors are circulating that the Missouri National Education Association is working to put forward some education funding initiatives.

F. Industry Bills To Watch Carefully, & Capitol Report. Click here to view the updated MPCA Capitol Report which tracks all the 2020 legislation that is of interest to MPCA. Please take the time to regularly and carefully review this very important document, and do not hesitate to contact MPCA with any questions or concerns.

3. RFG UPDATE: 5 COUNTY ST. LOUIS METRO AREA.

A. Background & Information. Please recall that the Missouri Department of Natural Resources (DNR) is actively looking to eliminate RFG in the 5 county St. Louis metro area.

B. Counties: In Missouri, RFG is required in St Louis City, and the counties of St. Charles, Franklin, Jefferson, and St. Louis. In Illinois, MPCA believes RFG is required in the border-counties of Madison, St. Clair, and Monroe.

C. EPA Region: Missouri is in EPA Region 7, while Illinois is in EPA Region 5. Two different EPA Regions may complicate this issue.

D. Local “Partners”: East West Gateway.

E. Process: Eliminating RFG in the 5 county St. Louis metro area will not require a state rule change but will require asking the EPA to amend Missouri’s State Implementation Plan (SIP) to no longer require RFG in the 5 county St. Louis metro area.

The EPA will either support or oppose this amendment to Missouri’s SIP, which may require a rulemaking by the EPA.

F. Emissions Testing: The DNR’s request to the EPA will only eliminate emissions testing in Franklin and Jefferson counties.

The hope is that data in the near future will allow emissions testing to also be eliminated in St. Louis City, St. Louis County, and St. Charles County.

G. Update. MPCA received this update from DNR on 4/27/2020:

“So, for this one, we are still working on both prongs of the two-prong approach...For the first prong, EPA has not yet acted on our demonstration on the Ozone and PM Maintenance Plans. Technically, they have a little more than a year left on their 'approval clock,' but we are hoping for action in a much sooner timeframe.

Also, as you know, the second prong requires the Opt-out Letter from the Governor. I am not sure exactly where that is in the review/approval process, however EPA is not waiting for that, to my knowledge in their approval for the first prong.

Thanks, Darcy A. Bybee Director, Air Pollution Control Program, Missouri Department of Natural Resources P.O. Box 176, Jefferson City, MO 65102-0176 Direct: (573) 751-7946, Program: (573) 751-4817 Fax: (573) 751-2706, [email protected]”

4. 7 POUND LOW RVP UPDATE: KANSAS CITY METRO AREA.

A. Background & Information. Please recall that the Missouri Department of Natural Resources (DNR) is starting to consider eliminating the requirement that 7 pound low RVP motor fuel be sold in the Kansas City metro area from June 1st through September 15th.

B. Counties: In Missouri, low RVP motor fuel is required in Kansas City, MO, and Clay, Jackson, and Platte counties.

In Kansas, MPCA believes low RVP motor fuel is required in Kansas City, KS, and the border-counties of Johnson and Wyandotte.

C. EPA Region: Both Missouri and Kansas are in EPA Region 7.

D. Local “Partners”: Mid-America Regional Council (MARC).

E. Process: Eliminating low RVP motor fuel in the Kansas City metro area will require a state rule change plus asking the EPA to amend Missouri’s State Implementation Plan (SIP) to no longer require low RVP motor fuel in the Kansas City metro area.

The EPA will either support or oppose this amendment, which may require a rulemaking by the EPA.

F. Emissions Testing: None.

G. Update. MPCA received this update from DNR on 4/27/2020:

“The public notice period closed earlier this month and we are in the process of reviewing and responding to comments. We have the rescission on the agenda for a Request for Adoption at the May 28, 2020, Missouri Air Conservation Commission meeting.

If all moves forward per schedule, the rescission would be effective September 30, 2020. We will submit it to EPA, shortly thereafter, for removal from the SIP.

We have been in close coordination with EPA and also with Kansas, so I am hopeful for a timely, coordinated response from EPA--ideally well in advance of the 2021 summer season.

Please, as always, let me know if you have any questions!

Stay safe and well!

5. TOBACCO: THE LATEST NEWS FROM NATO - NATIONAL ASSOCIATION OF TOBACCO OUTLETS.

MPCA is a member of NATO - the National Association of Tobacco Outlets - led by Executive Director Thomas A. Briant. As a result, and as an added benefit of your MPCA membership, every MPCA member is now automatically a member of NATO!

Click here to read the latest from NATO.

6. MPCA MEMBERS CAN SAVE MONEY ON: WORKERS’ COMP INSURANCE; HEALTH, PROPERTY & LIABILITY INSURANCE; EMPLOYEE BACKGROUND CHECKS; INDUSTRY PUBLICATIONS & INFORMATION; CREDIT CARD FEES; & MUCH MORE!

A. What It’s All About. MPCA members who take advantage of MPCA’s member services accomplish 3 key objectives:

►First, they save money and thus increase their company’s productivity and profitability. ►Second, they help generate a very important source of “non-dues revenue” for MPCA which helps to keep your MPCA membership dues as low as possible. ►Finally, this “non-dues revenue” stream provides MPCA with the tools we need to protect and advance your legislative and regulatory interests in Jefferson City, Missouri and Washington, D.C.

Truly a “win” scenario for all involved!

B. Who Is Eligible. Every MPCA member service is available to every MPCA member - marketer members, partner members, c-store members, associate members, etc.

C. Specific Member Services. The following is a list of a few of the member services offered by or through MPCA:

1. Employment Reports: Criminal Background, Credit, Liquor Control, Driver/Motor Vehicle and More. 2. Workers’ Compensation Insurance. 3. Property and Liability Insurance, and Financial Protection Services. 4. Industry Publications & Information including OPIS. MPCA members are eligible for the following annual discounts from OPIS (Oil Price Information Service): $150 off Oil Express newsletter subscriptions; $300 off OPIS Newsletter subscriptions; and 20% off all other OPIS products, including RetailSuite, a single solution for optimizing every aspect of station performance. Feel free to call OPIS customer service at 888.301.2645 or email [email protected]. 5. Credit Card Processing. 6. Office Supplies and Equipment. 7. Overnight Delivery. 8. Age Verification Materials. 9. Retailer Alcohol Training.

D. How To Get Further Information. Click here to access all the information you need to start saving money and support MPCA!

MPCA STAFF Ronald J. Leone, Esq., Executive Director, [email protected] Karen Antweiler, Asst. Executive Director, [email protected] Penny Thill, Administrative Assistant, [email protected]