Inside the Beltway Update

With the One Big Beautiful Bill signed into law and August recess quickly approaching, Congress has shifted its focus to the fiscal year (FY) 2026 appropriations process. This week, the House and Senate made incremental progress on government funding, with the House and Senate Appropriations Committees each marking up several appropriations bills.

On Monday, the House Appropriations Energy and Water Subcommittee marked up their FY 2026 appropriations bill, which includes proposed cuts to several discretionary funding programs at the Department of Energy as well as increased funding for several bipartisan priorities. Notably, the bill proposes:

• $57.3 billion in total discretionary funding, including $48.8 billion for the Department of Energy, a decrease of approximately $1.4 billion from previously enacted levels;

• $1.85 billion for the Office of Energy Efficiency and Renewable Energy (EERE), a decrease of $1.6 billion from FY 2025, or a 46 percent reduction. The President’s Budget Request (PBR) proposed to cut EERE funding by more than 70 percent;

• $687.5 million for the Office of Fossil Energy, a reduction of $177.5 million from FY 2025.

• $7.15 million for continued Northeast Home Heating Oil Reserve (NEHHOR) operations. The FY 2026 PBR proposed to sell NEHHOR’s one million barrels of ultra-low sulfur distillate to generate $100 million for deficit reduction.

On Tuesday, the House Interior-EPA Subcommittee advanced their appropriations bill on an 8-5 party-line vote. The bill includes approximately $7 billion in funding for the EPA for FY 2026, a decrease of $2.1 billion or 23 percent below 2025 levels. Nevertheless, the bill provides additional EPA funding above levels requested by the Trump Administration, including by maintaining funding for the Diesel Emissions Reduction Act (DERA) program.

The bill also includes approximately $60 million for the Leaking Underground Storage Tanks Program, an increase from the PBR but a decrease from previous fiscal years. Unfortunately, the appropriations bill also includes language that allows funds up to $300,000 to be raided from the LUST Fund for construction activities unrelated to leak clean ups. Specifically, the Science and Technology, Environmental Programs and Management, Office of Inspector General, Hazardous Substance Superfund, and Leaking Underground Storage Tank Trust Fund Program Accounts, are available for the construction, alteration, repair, rehabilitation, and renovation of facilities, provided that the cost does not exceed $300,000 per project.

The House Appropriations Committee held a subcommittee and full committee markup of the FY 2026 Transportation-Housing and Urban Development (THUD) appropriations bill on Monday and Thursday, respectively. The bill proposes a $3.1 billion decrease in funding for US DOT, with transit and rail seeing significant cuts in year-over-year funding. Despite proposed cuts in discretionary funds, the bill notably proposes to also transfer over $4 billion dollars from the Biden-era Infrastructure Investment and Jobs Act (IIJA) to fund various programs at the agency, including $1 billion in unspent funds from the National Electric Vehicle Infrastructure (NEVI) Formula Program. The transferred funding will largely be redirected to aviation programs.

The House and Senate are expected to unveil additional funding bills over the coming weeks, including funding bills covering the Departments of Labor and Health and Human Services, as well as programs like the Low-Income Home Energy Assistance Program (LIHEAP). However, with the current federal funding deadline of September 30, the lack of floor action on appropriations bills means a short-term continuing resolution (CR) to prevent a government shutdown at the end of September is increasingly likely which is good news for energy marketers who support the LUST fund.

Prohibition of Funding for Speed Limiting Devices Language in House Appropriations Bill

This week, the continuation of the Administration’s moves to reverse the Biden Administration’s push for speed limiting device mandates for semi-trucks was propelled by blocking funding for promulgation of any rule requiring speed limiting devices.

Specifically, language included in the House Transportations Appropriations bill states that none of the funds appropriated may be used to promulgate any rule or regulation to require vehicles with a gross vehicle weight of more than 26,000 pounds operating in interstate commerce to be equipped with a speed limiting device set to a maximum speed.

In April President Trump signed an executive order calling on DOT to carry out additional administrative, regulatory, or enforcement actions to improve the working conditions of America’s truck drivers. Following that order, DOT Secretary Sean Duffy began efforts to roll back the proposed rule that was first proposed under President Obama and revived under President Biden in 2022.

EMA will continue to support efforts to stop the mandate.

EMA Joins Others in Urging the White House to Clean Up the Center for Tobacco Products

This morning EMA joined NACS, NATSO, NATO and SIGMA In urging President Trump to clean up FDA’s Center for Tobacco Products (CTP) and develop a properly functioning regulatory system for vapor and e-cigarette products.

Our industry is systematically losing sales to businesses that sell illicit products because the CTP has abandoned its fundamental responsibility as a regulator. The CTP required manufacturers of vapor products (also known as e-cigarettes) to submit premarket approval applications in order for those products to remain on the market. The deadline for submitting those applications was September 2020 (“Deemed tobacco-derived products”) and also 2022 (“synthetic nicotine”). The CTP has dragged its feet on determining the premarket authorization of these deemed products. It is nearly five years since the application deadline and applications for thousands of products remain undecided and innovation remains in limbo.

We urged the White House to:

Require CTP to make decisions about all premarket applications, and fast. Many products awaiting decisions are very similar to authorized products and seem easy to authorize.

Require CTP to provide clarity. CTP must be told to reveal exactly which products (not just manufacturers) have been denied, exactly which products remain in legal limbo, and exactly which products submitted timely applications.

Supercharge the multi-agency task force. Once product clarity has been provided, the federal multi-agency task force led by FDA and DOJ, which was established in June 2024 to combat illicit vapes, should be directed to bring the strongest civil and criminal enforcement actions against the worst offenders to deter ongoing noncompliance. Illicit product, wherever it is found, should be seized.

Require more from Customs and Border Protection. CBP should strengthen its efforts to prevent the importation of illicit Chinese vapes by increasing targeted inspections throughout the supply chain, expanding the use of risk-based analytics tools, and pursuing civil and criminal penalties in cases of fraudulent import misdeclarations.

Click here to read the entire letter.

EMA Regulatory Reminder: $600 Federal Tax Credit for B20 Compatible Furnaces and Boilers Available to Homeowners Expires on December 31, 2025

The Inflation Reduction Act (IRA) included a provision to incentivize the efficiency of heating oil equipment while increasing the amount of biodiesel blended into the fuel. Under the IRA, homeowners are eligible for tax credits of $600 for installation of new oil/biofuel blend-compatible heating appliances. The credit is available to homeowners on an annual basis and capped at $600 per year. Beginning January 1, 2023, heating oil dealers should make their customers aware of the new tax credit and explain how to apply for it. The One Big Beautiful Bill included language to end the credit by December 31, 2025, so homeowners have until the end of the year to claim the credit.

In order to qualify for the $600 federal tax credit, the following conditions must be met:

Equipment Placed in Service After December 31, 2022

• Equipment must have 2021 Energy Star ratings (87 AFUE for oil boilers and 85 AFUE for furnaces) and be certified by the manufacturer to burn heating oil blended with a 20 percent biodiesel or renewable diesel fuel. This equipment is available now.

Many new heating oil boilers and furnaces currently available from manufacturers should be compatible with 20% biodiesel blends and qualify for the $600 credit on new installations beginning January 1, 2023. Manufacturers are currently providing certification for B20 compatibility on new equipment.

Please check with your supplier to ensure their equipment is compliant and that certifications are available to the homeowner. Homeowners may apply for the credit on IRS Form 5695 and file it with their 1040, 1040-SR or 1040-NR return. The IRS published the updated Form 5695 to claim the credit. Click here to view it.

EMA’s Fall Meeting at the NACS Show 2025: October 13-14: Website and Registration Open!

EMA will hold its Fall Meeting in conjunction with the NACS Show on October 13-14 at the InterContinental Chicago Magnificent Mile. The EMA meeting will begin with a New Attendee Orientation/Federal Legislative Update mid-afternoon on October 13. The NACS/EMA Reception Salute to State Association Executives (all EMA members are welcome) will follow at the McCormick Place Convention Center in the Hunter Club Lounge. On the morning of October 14, there will be a Buffet Breakfast followed by Region and Committee Meetings. The EMA Board of Directors meeting is scheduled after the Distinguished Service Award Luncheon honoring Louisiana Marketer and EMA’s Past Chair Grady Gaubert sponsored by EMA Board of Director Council Partner Federated Insurance.

An invitation was sent to your inbox on July 8. Responding to the links on the invitation email is the recommended way to register. Housing registration deadline is September 19, 2025 (Subject to Change) and our room block is sold out for Sunday, October 12, for Monday, October 13, 57 percent is sold out, for Tuesday, October 14, 58 percent is sold out and for Wednesday, October 15, 37 percent is sold out so please do not delay in making plans! Members have access to all other hotels with availability in the block. If the general block has rooms, you will continue to see those options.

Remember, the NACS Show registration is separate from EMA’s Fall Meeting registration.

Special EMA Members Code for NACS Show 2025 Registration

Using the 2025EMANS code provides EMA with $100 for every retailer or marketer paid registration at any rate. EMA encourages EMA state execs to promote and share with your state association's member companies. Click here for the flyer.

**Please note that EMA State Execs are comped for NACS Show registration. Additionally, the NACS Show registration is separate from EMA's Fall Meeting registration.

Click here for full instructions to register.

Questions registering for NACS Show? Contact NACS Show registration customer service at nacs@maritz.com or 469-513-9489, Monday-Friday, 9:00 a.m. - 5:00 p.m. EST, for assistance.

Weekend Reads

Juul gets FDA’s OK to keep selling tobacco and menthol e-cigarettes | AP

U.S. EV sales could spike, then collapse, as subsidies vanish | AXOIS

Daimler Deepens Diesel Engine Focus, Boosts Investment | Transport Topics

DOE approves giving ExxonMobil a million barrels of oil from reserve | msn

FDA Approves Gardenia (Genipin) Blue Color Additive While Encouraging Faster Phase-Out of FD&C Red No. 3 | FDA

How Likely is $100 Oil in 2025? | Rigzone

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Federated Insurance Risk Management Academy Complimentary Webinar
Cannabis Use for Employees

This webinar will give an overview of various state laws on marijuana legalization for both recreational and medical use, as well as laws protecting employees based on their off-duty use. It will cover best practices for handling off-duty cannabis use and recognizing on-the-job impairment.

Attendees will learn about cannabis testing methods, their limitations, and why exposure doesn’t always mean impairment. With more states legalizing recreational use, employees’ expectations around off-duty use, and drug testing have shifted. Employers now face complex, often conflicting state laws, making it challenging to create consistent multistate policies.

This session offers practical insights and strategies to help employers address these issues. Speakers are Christopher M. Backlund, Risk Management Learning Manager and Allison Cardenas, Partner, Gordon Rees Scully Mansukhani, LLP.

What you will learn:

• An overview of the state-specific cannabis laws regarding legalization and protecting

off-duty use

• The different testing methods for cannabis exposure and their limitations

• How to determine if an employee is impaired on the job

• Best practices for employers in navigating these issues

Advanced registration is required for this 30-minute webinar.

For additional information or to discuss this in further detail, please feel free to contact your Federated regional representative or EMA’s National Account Executive Jack West at 262.719.7750 for any additional information or risk management questions. Federated is a Partner in EMA’s Board of Directors Council.

At Federated Insurance, It’s Our Business to Protect Yours®

EMA Member Services Spotlight Featuring: National Purchasing Partners (NPP)
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Join NPP for free, then register for the Sherwin-Williams discount. You’ll find a diverse catalog of business offers as well as lifestyle deals you can share with your employees.

Membership is free and there is no obligation to purchase. NPP is a member benefit provider of EMA. Restrictions may apply.