april 21, 2015 drury inn and suites flagstaff, az

AprilMonthly Meeting

April 21, 2015Drury Inn and Suites

Flagstaff, AZ

Agenda

» Welcome, Antitrust Review & Table Introductions – Jason Davis, Arizona Fuel Distributors & APMA President

» Flagstaff Tourism Update – Heather Ainardi, Flagstaff Convention and Visitors Bureau

» Legislative Recap and APMA Updates – Amanda Gray, APMA

2015 Legislative Session Recap

» The Basics ˃ 52nd Legislature, 1st Regular Session

+ 1,163 bills introduced + 344 bills passed + 324 signed into law + 20 vetoed

˃ Adjourned Sine Die + April 3 at 3:37 am+ 81 days + General effective date – July 3

˃ Lobbyists+ Janna Day and Ryan O’Daniel from

Brownstein Hyatt + Mike Williams from Williams and

Associates


» Legislative and UST Committees ˃ Met 5 times in 2015 (so far)˃ Tracked over 30 bills ˃ Legislative Cmte led by Vice Chair Mark Ellery from Caljet ˃ UST Cmte chaired by Troy Little from Quik Mart Stores

» Top priority – UST Program » Other priorities – ADWM dismantling, packaging preemption,

security requirements preemption, biofuels definitions, diesel tax


» UST Program˃ Background and Negotiations ˃ Penny per gallon UST tax was set to expire on December 31, 2015

» HB2636 – Rep. Rusty Bowers ˃ Creates a new and improved UST Program, starting January 1, 2016

+ Extends penny per gallon UST tax until January 1, 2024 + Allows payment of time barred claims + Study period to determine reforms to insurance industry + Optional baseline site assessments + Provides grants for tank pulls, baselines, release investigations

˃ Signed by Governor Ducey on April 9

2015 Legislative Session Recap – UST Program Details

Time Barred Claims ˃ Reimbursement for gap 1 and 2 releases ˃ Operates essentially under old program rules

+ 90% reimbursement + Cap of $1M if O/O uses insurance; Cap of $500K if O/O does

not use insurance to satisfy FR + New costs only

˃ Priority to gap 1 claims, paid pro rata share annually˃ Applications period: January 1 – December 31, 2016˃ $28M at minimum in time barred payments in 2017 and $5M per

year after that

2015 Legislative Session Recap – UST Program Details

New Program ˃ NOT an FR Mechanism – O/Os must maintain FR and pursue it

+ 100% reimbursement + Priority for payments to small O/Os (<20 sites)+ Preapproval process for work and costs + Cap of $1M with $50K cost share obligation for non-insurance FR or

high deductibles˃ Insurance Issues

+ Study Period - All nonpayments must be reported to ADEQ+ By January 1, 2017, all O/Os must have insurance with a retro date

tied to either (1) most recent baseline, (2) tank system installation or (3) earliest retro date under last policy

+ ADEQ required to assist O/Os with insurance claim pursuit ˃ 7 year optional baseline period

+ Releases discovered are program eligible ˃ Grant program for tank pulls, baselines, site upgrades and suspected

release investigations

HB2480 – Department of Weights & Measures (Rep. Petersen) - Striker

SB1241 – Municipal Regulation Prohibition (Sen. Barto) – Striker

» Eliminates the Department of Weights and Measures

» ADOT assumes responsibility for regulating vehicles for hire and livestock and agricultural products

» A Division of Weights and Measures is established in the Department of Agriculture and assumes responsibility for the rest

» Signed by Governor

» Prohibits counties and cities from regulating the sale, use or disposition of auxiliary containers (including plastics, Styrofoam, etc.) or imposing a fee

» Prohibits counties and cities from requiring a property owner to report energy usage and consumption



SB1069 – Municipal Regulation Prohibited Security Requirements (Sen. Smith)

HB2395 – Biofuels Definitions (Rep. Pratt)

» Prohibits counties and cities from adopting ordinances that require retail businesses to comply with specific security requirements based on size or type of business or number of calls made to law enforcement


» Changes definitions of biofuel and ethanol flex fuel in Weights and Measures statutes

» Changes diesel sulfur content definition to comply with federal standards

» Passed the House, did NOT pass Senate


Diesel Tax Two-Tiered Structure Reform

Regulatory Reforms

» Opportunity to streamline government - waste of staff and industry time to track refunds

» Only state with two tiered system» Spoke with ADOT Representatives,

House Transportation Chair, Governor’s staff

» HB2212 (Rep. Petersen) – gives private civil action to enforce business’ licensing rights

» HB2213 (Rep. Petersen) – requires an inspector to read regulatory rights

» HB2297 (Rep. Farnsworth) – prohibits rulemaking that would restrain businesses

» All signed by Governor



Bills APMA Tracked and Opposed: ˃ HB2462 – Genetically Engineered Foods; Labeling (Rep. Mendez)˃ HB2502 – Labor Rest Periods and Meal Breaks (Rep. Larkin) ˃ HB2505 – Paid Sick and Safe Time (Rep. Andrade) ˃ HB2579 – Tobacco Retailer; Location Restriction (Rep. Otondo) ˃ HB2583 – Motor Fuel Taxes; Forest Products (Rep. Campbell) ˃ HB2596 – Luxury Tax on Electronic Cigarettes (Rep. Otondo) ˃ SB1013 – Employment Discrimination; Enforcement; Damages (Sen.

Ableser) ˃ SB1108 – Task Force; Gas Tax Replacement (Sen. Farley) ˃ SB1160 – County Motor Vehicle Fuel Taxes (Sen. Farley)˃ SB1161 – Vehicle and Use Fuel Taxes (Sen. Bradley) ˃ SB1391 – Fuel Taxes; Exemption, Navajo Reservation (Sen. Begay)NONE OF THESE BILLS WERE SUCCESSFUL.

APMA Updates

» APMA and PMAA PACs» Help our industry by supporting industry-conscious elected officials

» APMA PAC» Created in August 2014 » Since then, raised over $6,000» Made political contributions of $2,900

» PMAA PAC » Reached its overall goal last year for the first time EVER!» Arizona met its goal of just under $2,000

» Fuel Monitor Magazine » Spring edition available today! » Summer edition coming in June

2015 Scholarship Golf TournamentMcCormick Ranch Golf Club

Thursday, April 23, 2015 Registration 11:30 am – 12:15 pm12:30 pm shotgun start Awards Event 5:00-6:00 pm

APMA Updates

» PMAA Day on the Hill - May 13 – 15, 2015 in Washington, DC

» Next Meeting – May 19, 2015 at Phoenix Country Club» Board Meeting at 9:30 am » Conference Committee Meeting at 1:00 pm

» Annual Conference Save the Date – Sunday, September 27 – Tuesday, September 29, 2015 at the Omni Tucson National Resort and Golf Club

april 21, 2015 drury inn and suites flagstaff, az

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