EMA Journal • Fall 2024 • From Capitol Hill

Washington is bracing for a whirlwind of legislative activity. For the energy marketing sector, several pressing issues could shape our industry’s future in the months ahead.

Recently, Congress took swift action to avert a government shutdown by passing a Continuing Resolution (CR), extending government funding until December 20. This outcome frustrated former President Donald Trump and far-right Republicans, who had pushed for a six-month CR that included the SAVE Act, which mandates definitive proof of citizenship for voter registration (though it is already illegal for non-citizens to vote). After that effort failed, the Speaker, Senate leadership, and Appropriations Committee leaders opted for a clean CR, maintaining current funding levels, and allowing Congress more time to address funding issues after the election. Once the House and Senate passed the CR with broad bipartisan support, Congressional leaders quickly recessed, sending members back to their campaigns, proving once again that nothing motivates Congress more than the prospect of leaving town.

Another key concern is the looming expiration of provisions from the Tax Cuts and Jobs Act (TCJA) of 2017, set to sunset at the end of 2025. This includes business-friendly provisions such as the 100 percent bonus depreciation on capital expenditures and individual income tax cuts. If these provisions expire, it could lead to increased tax burdens for many of our members. Expect fierce debate, as Republicans will likely push for extensions or permanent adoption of these measures, while Democrats may advocate for more targeted tax reforms. Any uncertainty around tax policy will complicate business planning and investment, making this an issue to watch closely.

In addition to tax policy, the Congressional Review Act (CRA) may come into play. The CRA gives Congress the power to review and potentially nullify agency rules within 60 legislative days of their finalization. For energy marketers, this could be particularly relevant if regulatory changes from the EPA or Department of Energy are targeted for rollback by a new Congress in 2025. With a likely focus on environmental and energy regulations, the CRA may be used strategically to unwind rules seen as burdensome to the industry. While the tool requires the president’s signature, its use in a new administration could be pivotal.

Turning to energy policy, recent movement on permitting reform is a positive sign for our industry. The Senate Energy and Natural Resources Committee recently approved a bipartisan bill designed to streamline the permitting process for energy and mineral projects. While this bill’s path forward is uncertain amid a packed legislative calendar, it could be included in a potential omnibus or CR package. This would help expedite domestic energy infrastructure, which is essential to our long-term competitiveness.

One piece of legislation with significant implications for our members is the Credit Card Competition Act. This bill aims to increase competition and reduce swipe fees in the credit card market by allowing retailers to choose between multiple networks to process transactions. Unfortunately, despite bipartisan support, it is unclear if it can gain enough traction to pass during the upcoming lame duck session as a few senators have blocked action on the bill. EMA will continue to actively push this legislation because the burden of high swipe fees remains a challenge for small business owners, particularly in the fuel and convenience sector.

Meanwhile, the Transportation Security Screening Modernization Act is another key piece of legislation in the pipeline. The Act is aimed at enhancing and modernizing airport and transportation security screening technologies. Despite bipartisan support, its path forward remains unclear due to the crowded legislative agenda.

Finally, the National Defense Authorization Act (NDAA), a perennial piece of must-pass legislation, is still on the table. The NDAA not only funds the military but could also serve as a vehicle for other legislative priorities. With limited time before the end of the session, Congress will need to decide whether to focus on these essential bills or risk kicking them into next year’s calendar.

Unfortunately, the Inflation Reduction Act (IRA), which was signed into law in 2022, replaced the biodiesel blender’s tax credit with a new 45Z Clean Fuel Production Credit (CFPC) based on carbon intensity scores. Ethanol, biodiesel, renewable diesel and sustainable aviation fuel will all be eligible for the new production tax credit; however, the Department of the Treasury has yet to publish CFPC guidance. EMA, along with several trade groups, has asked Congress to extend the biodiesel blender’s tax credit for at least another year to give impacted industries market certainty. Senators have also urged the Treasury Department to finalize its guidance in a way that supports domestic biofuel production. Depending on the outcome of the November elections, a Republican-controlled Congress could reelevate much of the IRA’s tax credits.

As we approach the November elections, the next few weeks promise to be a mixture of high stakes legislating and political maneuvering. EMA will continue to monitor these issues and advocate for policies that support the energy marketing sector. From potential tax changes to regulatory rollbacks, there’s a lot at stake. Rest assured we’ll keep you informed every step of the way.