Congressional Update
With less than 35 days to go before the election and members of Congress hot on the campaign trail, direct activity is slow in Washington. But before Congress left town, Reps. Adrian Smith, (R-NE), Angie Craig, (D-MN) and more than 30 of their colleagues introduced the Nationwide Consumer and Fuel Retailer Choice Act. The bill aims to enable year-round sales of E15 nationwide. The bipartisan, bicameral legislation would extend the Reid vapor pressure (RVP) volatility waiver to gasoline blends containing up to 15 percent ethanol. The regulatory change would allow E15 to be sold year-round across the country. Sen. Deb Fischer (R-NE) introduced companion legislation in July 2023.
Meanwhile, Senator Joni Ernst (R-IA) and Amy Klobuchar (D-MN) sent a letter to the USDA requesting more funding for the Higher Blends Infrastructure Incentive Program (HBIIP). Specifically, the Senators urged the USDA to extend HBIIP funding through the Commodity Credit Corporation (CCC) to assist retail store owners to purchase the infrastructure necessary to provide e10 and b20 plus blends at the pump and b20 plus blends for heating fuel distribution facilities.
“Since its inception in 2020, HBIIP has been vital in expanding access to higher blends of biofuels like E15, E85, and B20 for customers. Through a cost-share approach, HBIIP has helped fuel retailers invest over $77.8 million in biofuel-related infrastructure projects, leading to an estimated 1.2-billion-gallon increase in annual biofuel sales,” wrote the senators. “However, access to these higher blends of renewable fuel can only occur if the proper infrastructure is in place at our gas stations, truck stops, and heating fuel facilities, a gap HBIIP has and will continue to help bridge. As the final quarter ends on September 30, 2024, we strongly encourage the USDA to allocate CCC funds to sustain this essential program.”
Meanwhile, due to severe damage caused by Hurricane Helene and escalation of the conflict in the Middle East, President Biden briefly considered asking Congress to return to pass a broad bill on disaster relief. While the impetus was the storm, there are many measures that could be included in any bill considered, including funding for the replacement of the I-695 bridge that collapsed in Maryland earlier this year. Still, most believe the $20 billion in disaster relief funds currently available to the White House and FEMA negate the need for immediate action from Congress, though they will still need to act at some point. In other words, we’re ok for now—no need to rush back. That said, the damage that has been done throughout the South and in Appalachia is catastrophic, and while the Administration is working with Governors in the affected states to determine how best to provide assistance, EMA members have been doing so on the front lines, and for that we’re all incredibly grateful.
A separate matter that took up oxygen last week was a strike at ports along the East Coast and Gulf of Mexico that began October 1. The International Longshoremen’s Association (ILA) union, which represents about 45,000, was entangled in a pay dispute with the United States Maritime Alliance, which represents the interests of the operators of the main ports involved with the dispute. Although the strike could have led to issues like increased traffic congestion at ports, and likely fuel price increases, overall, the strike was unlikely to directly impact the petroleum industry because the industry does not typically rely on dock workers for marine operations. Generally, there was a concern a strike could reignite inflation and create significant supply chain bottlenecks for goods nationwide. Fortunately, the dockworkers’ union reached a tentative agreement on wages and are extending an expired contract through Jan. 15, 2025. “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume,” the union said yesterday evening.
While we’re not typically focused on Middle Eastern affairs, but following an Iranian missile attack directed at Israel, Israel is expected to retaliate, and President Biden acknowledged one of the possible targets include Iranian oil facilities. Obviously, a strike on Iranian oil could increase the price of oil which is unwelcome news for anyone who purchases gas in any quantity. Regardless, we will report more as we learn more about the activities unfolding in Israel.
Separately, in an interview with Politico, Rep. Eric Burlison (R-MO) used a few choice words to describe Transportation Secretary Pete Buttigieg, who is implementing policies to “destroy the car industry.” Congressman Burlison noted in the interview that he wanted to claw back the $7.5 billion designated for EV charging stations provided in the Infrastructure Investment and Jobs Act (IIJA) and rescind a broad scope of emissions standards. We’ll continue to flag as many of these Congressional insights as possible as they can provide interesting color to the otherwise monotonous drone of Congress.
