E-15 Labeling Page 2

LIHEAP Page 5

Issue #1892 November 23, 2015

Minnesota Petroleum Marketer

Issue #1892 November 23, 2015 Inside this Issue:

MINNESOTA PETROLEUM MARKETERS ASSOCIATION

3244 RICE STREET ST. PAUL, MN 55126-3047

651/484-7227 800/864-3813 FAX 651/484-9189

E-Mail: kthoma@mpmaonline.com www.mpmaonline.com

The Minnesota Petroleum Marketer (ISSN 1062-8282) is published semi-monthly by the Northwest Petroleum Association dba Minnesota Petroleum Marketers Association. Standard—postage paid at the St. Paul, MN (USPS 5220). Subscription cost $25.00 per year. POSTMASTER: Send address changes to Minnesota Petroleum Marketer at address above.

Labeling E15 at the Dispenser 2-4

LIHEAP Update 5

Local Sales and Use Taxes 5

New OSHA Workplace Hazard Communication Standard Compliance Requirements

6-7

Sam’s Club Pays Penalty to Settle Minimum Markup Case 7

EIA Short-Term Energy Outlook 8

Insurance Corner—EMC Slip/Fall Prevention Checklists 9-10

Legal Corner 11

Certified Food Manager Training and Recertification 12

Classifieds 13

Bulletin No. 1892 -2- November 23, 2015

LABELING E15 AT THE DISPENSER

E15 is a gasoline/ethanol blend containing between 10 and 15 percent ethanol by volume. Before January 2011, E15 was allowed to be sold as an alternative fuel for flex-fuel vehicles only. In January 2011, the EPA issued a partial waiver that allows E15 to be sold as gasoline for use in both flex-fuel vehicles and 2001 (and newer) passenger vehicles. Federal law prohibits E15’s use in other vehicles, boats or gasoline-powered equipment. Retailer Choices Retailers who wish to sell E15 must make two decisions.

Retailers must decide whether to sell E15 as an alternative fuel, or as a gasoline under the EPA waiv-er.

o E15 sold as alternative fuel can be sold only to flex-fuel vehicles.

o E15 sold as gasoline under the EPA waiver can be sold to both flex-fuel vehicles and 2001

(and newer) passenger vehicles.

Retailers must decide whether to sell E15 through a dedicated hose or through a shared hose.

o A dedicated hose can be used to sell E15 as either an alternative fuel or a gasoline under the

EPA waiver and can be switched seasonally if desired.

o A hose shared with E85 and other alternative blends can be used year-round to sell E15 to flex

-fuel vehicles only.

o A hose shared with E10 gasoline can be used to sell E15 as a gasoline under the EPA waiver

only when the vapor pressure of the E15 meets EPA requirements. (September 16 – May 31)

A retailer’s choices will determine the labeling requirements on the dispensers.

If E15 is sold as an alternative fuel, the dispenser must have a Minnesota “FLEX-FUEL VEHICLES ONLY” label and a FTC Motor Fuel Rating label.

If E15 is sold as gasoline under the EPA waiver, the dispenser must have an EPA misfueling mitiga-tion label and an FTC octane label. If sold through a hose shared with E10, it may also need a “Minimum Purchase 4 Gallons” label.

E15 Sold as Alternative Fuel for Flex-Fuel Vehicles Only Whenever E15 is sold as flex-fuel, the dispenser must be clearly labeled "FLEX-FUEL VEHICLES ONLY" per the requirements of Minnesota statute §239.761 subd.4b. No size, color or font is specified on the Minnesota flex-fuel sticker requirement, but the wording must be exact.

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Bulletin No. 1891 -3- October 26, 2015

LABELING E15 AT THE DISPENSER CONT.

E15 sold as flex-fuel must also have an FTC motor fuel rating as required by:

16 CFR 306 http://www.ecfr.gov/cgi-bin/text-idx?SID=a61ff16cec1b96385865d555ae51e77e&mc=true&node=se16.1.306_112&rgn=div8

Minnesota statute §239.792. https://www.revisor.mn.gov/statutes/?id=239.792

The motor fuel rating for alternative fuels like E15 is not an octane rating. It is a statement of the major com-ponent of the alternative fuel. It may also contain a statement of the other components. It must meet the FTC color, size and font guidelines.

E15 Sold as Gasoline Under EPA Waiver to Both Flex-Fuel Vehicles and 2001 and Newer Passenger Vehicles The EPA requires a misfueling mitigation sticker on E15 sold as gasoline under the EPA waiver. http://www.ecfr.gov/cgi-bin/text-idx?rgn=div6&node=40:17.0.1.1.9.14#se40.17.80_11501

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Bulletin No. 1892 -4- November 23, 2015

If E15 is sold as gasoline through a hose shared with E10, retailers must choose between one of two addi-tional actions to mitigate the possibility of misfueling:

Label dispensers with “Minimum Purchase 4 Gallons” next to the E10 selection buttons; or

Provide at least one dispenser dedicated solely to E10 sales.

Minnesota law and the FTC also require E15 sold as gasoline under the waiver to have an octane sticker. Retailers must post the octane as it was certified to them by their supplier.

Dedicated E15 Hoses Offer the Most Flexibility E15 sold as gasoline under the EPA waiver does not get the same 1 pound volatility waiver in the summer that E10 gasoline gets. Retailers must find a supplier who can blend E15 that has no more than 9.0 pounds vapor pressure, or they cannot sell E15 as a gasoline under the EPA waiver during the summer months. E15 with more than 9 pounds vapor pressure which is sold through a dedicated hose can be labeled and sold as gasoline under the EPA waiver from September 16 – May 31. With a label change, it can then be sold as alternative fuel to flex-fuel vehicles only from June 1 – September 15.

Questions? Contact the Minnesota Department of Commerce Weights & Measures Division at 651-539-1555. All these labels are available through the Association Office for $1 each.

LABELING E15 AT THE DISPENSER CONT.

Bulletin No. 1892 -5- November 23, 2015

MN Commerce Department receives $102 million in initial federal funding for the Energy Assistance Program Minnesota Commerce Commissioner Mike Rothman announced that the state’s Energy Assistance Program (EAP) is receiving nearly $102 million in initial federal funding to provide winter heating assistance for eligible Minnesotans.

The funds from the Low-Income Home Energy Assistance Program (LIHEAP) will help low-income homeown-ers and renters pay for heating bills this winter through grant money paid directly to utility companies and heating fuel vendors on behalf of eligible households. Last year, the program served close to 140,000 Minne-sota households.

“Year after year, our Energy Assistance Program has helped needy Minnesota families with their heating bills during the winter,” said Rothman. “These federal funds provide an essential safety net to protect vulnerable Minnesotans from losing heat during the coldest months of the year.”

The Commerce Department administers EAP in partnership with 31 local service providers throughout the state.

The program helps homeowners and renters earning at or below 50 percent of the state’s median income ($46,056 for a family of four) pay their heating bills. The average annual payment for a household last year was about $500. Households with seniors, people with disabilities, veterans and children are especially en-couraged to apply.

Applications were recently sent to households that qualified for energy assistance last year. Others who may qualify are encouraged to apply by contacting the local service provider in their county by calling 800-657-3710. Information is also available at the Commerce Department’s Energy Assistance Program webpage.

LIHEAP UPDATE

LOCAL SALES AND USE TAXES

Bulletin No. 1892 -6- November 23, 2015

Background The OSHA workplace Hazard Communication Standard (HCS) has been revised to align with the United Na-tions Globally Harmonized System of Classification and Labeling of Chemicals (GHS). The purpose of the HCS is to provide employees information about the identities and hazards of chemicals (largely petroleum products) present in the workplace. The OSHA HCS was first introduced in 1983 and applies to all workplac-es where hazardous chemicals are present. These workplaces include petroleum marketers on both the wholesale and retail level. The current HCS requires labeling of containers of hazardous chemicals, includ-ing skid tanks and stationary above ground tanks, employee access to material safety data sheets (MSDS) and employee training. The revised HCS introduces new labeling requirements, new safety data sheets (formerly MSDS) and new employee training. All employers with hazardous chemicals in their workplaces must have labels and safety data sheets for their exposed workers, and train them to handle the chemicals appropriately. Major changes to the Hazard Communication Standard Hazard Classification: Provides specific criteria for classification of health and physical hazards of chemi-cals, as well as classification of chemical mixtures. Upstream chemical manufacturers are responsible for the new hazard classification requirements under the revised HCS. Refiners and/or terminal operators will com-municate the new hazard classification for petroleum products to petroleum marketer distributers by way of new safety data sheets (SDS) which replace current material safety data sheets (MSDS). Petroleum market-ing distributors should already have copies of the new SDS for all petroleum products. Safety Data Sheets: Chemical manufacturers are required to provide new Safety Data Sheets (formerly MSDS) to downstream wholesale customers including petroleum marketer distributors. The new SDS has a new 16 section format that includes a harmonized signal word, pictogram, and hazard statement for each hazard class and category. Petroleum marketer distributors must provide the new SDS to retail customers (one time and upon any revisions to SDS) and keep copies of all SDS on file for employee inspection. Petro-leum marketer retailers must keep all copies of SDS on file for employee inspection. Container Labels: Petroleum marketer distributors and retailers must replace current OSHA hazardous chemical container labels with new, revised labels. Containers that must be labeled include stationary above ground petroleum bulk storage tanks, skid tanks and any other applicable hazardous chemical container in the workplace. Cargo tank vehicles used to transport petroleum do not require OSHA labels. Employee Training: Petroleum marketer distributors and retailers are required to train employees on how to recognize and understand the new container labels and SDS format. Employee Access: Petroleum marketer distributors and retailers must provide employees access to haz-ardous chemicals in the workplace information including, product SDS sheets, Container labels and written hazard communication program.

Continued on next page

NEW OSHA WORKPLACE HAZARD COMMUNICATION STANDARD COMPLIANCE REQUIREMENTS:

Bulletin No. 1892 -7- November 23, 2015

Written Hazard Communication Program: Petroleum marketer distributors and retailers must update their current written hazardous communication program to reflect the OSHA new revisions. Go to http://www.pmaa.org/regulatoryreport/attachments/HAZARD COMMUNICATION PROGRAM Template.doc for a hazard communication program template. Compliance Dates: A recent OSHA directive has effectively delayed enforcement of the new HCS require-ments until June 1, 2016 for distributors and retailers. Both petroleum marketer distributors and retailers must update their written hazard communication program, workplace container labeling (skid tanks and stationary above ground bulk tanks included), train employees concerning the OSHA HCS revisions (labels and SDS) no later than June 1, 2016. Petroleum marketer distributors should supply retailers with new SDS as soon as they become available from upstream suppliers but no later than June 1, 2016. Chemical manufacturers were required to provide the new SDS to downstream distributors by June 1, 2015. Go to http://www.pmaa.org/regulatoryreport/attachments/HAZARD COMMUNICATION PROGRAM Template.doc for the OSHA hazard communication enforcement and compliance directive. State OSHA Programs: Many states have OSHA approved programs and may implement regulations that are more stringent than the federal regulations. Petroleum marketers should check with their state approved OSHA program for any possible variances to requirements in the hazard communication standard. Go to http://www.pmaa.org/regulatoryreport/attachments/HAZARD COMMUNICATION PROGRAM Template.doc to see a list of state approved OSHA programs.

NEW OSHA WORKPLACE HAZARD COMMUNICATION STANDARD COMPLIANCE REQUIREMENTS: (cont…)

SAM’S CLUB PAYS PENALTY TO SETTLE MINIMUM MARKUP CASE

Sam's West Inc. of Bentonville, Ark., has paid the state of Minnesota $20,000 and agreed to a cease and de-sist order to settle allegations that its Sam's Club store in Mankato, Minn., violated the state minimum markup law. The charges are part of the Minnesota Commerce Department's ongoing investigation of price wars in the Mankato and Rochester areas. Sam's West, a division of Wal-Mart Stores Inc., entered the agreement without denying or admitting the alle-gations, the Oct. 28 order said. The Minnesota Commissioner of Commerce charged the Mankato warehouse club sold gasoline below the minimum allowable price from April 14 to May 19, 2015. The cease and desist order said the state identified at least 20 violations of the minimum markup law. Sam's West agreed to a civil penalty of $40,000, of which $20,000 will be stayed as long as the store com-plies with the order. Asked if charges of other fuel retailers are expected, a spokesman for the Minnesota Commerce Department would only say the probe of gas prices is still underway. --Donna Harris, dharris@opisnet.com

Bulletin No. 1892 -8- November 23, 2015

EIA SHORT-TERM ENERGY OUTLOOK

North Sea Brent crude oil prices averaged $48/barrel (b) in October, a $1/b in-crease from September. Daily Brent prices have ranged between $45/b and $53/b since the beginning of September. Oil price volatility was lower during October than during August and September, but it remains elevated compared with levels in recent years.

EIA forecasts that Brent crude oil prices will average $54/b in 2015 and $56/b in 2016. The 2015 forecast price is unchanged from last month’s STEO, and the 2016 forecast price is $2/b lower. Forecast West Texas Intermediate (WTI) crude oil prices average $4/b lower than the Brent price in 2015 and $5/b lower in 2016. The current values of futures and options contracts for February 2016 delivery suggest the mar-ket expects WTI prices to range from $35/b to $66/b (at the 95% confidence interval) in February 2016.

The monthly average price of U.S. regular retail gasoline was $2.29/gallon (gal) in October, a decrease of 8 cents/gal from September and 88 cents/gal lower than in October 2014. EIA expects monthly gasoline prices to decline to an average of $2.06/gal in December 2015. EIA forecasts U.S. regular gasoline retail prices to av-erage $2.33/gal in 2016.

EIA estimates that total U.S. crude oil production declined by 40,000 barrels per day (b/d) in October compared with September. Crude oil production is forecast to decrease through the third quarter of 2016 before growth resumes late in 2016. Pro-jected U.S. crude oil production averages 9.3 million b/d in 2015 and 8.8 million b/d in 2016.

Natural gas working inventories were 3,929 billion cubic feet (Bcf) on October 30, which matches the previous weekly record set November 2, 2012. The October 30 level was 10% higher than a year ago and 4% higher than the previous five-year av-erage (2010-14) for that week. EIA expects the Henry Hub natural gas spot price to average $2.59/million British thermal units (MMBtu) this winter (October 2015–March 2016) compared with $3.35/MMBtu last winter.

Bulletin No. 1892 -9- November 23, 2015

INSURANCE CORNER

Bulletin No. 1892 -10- November 23, 2015

INSURANCE CORNER

Bulletin No. 1892 -11- November 23, 2015

LEGAL CORNER

Bulletin No. 1892 -12- November 23, 2015

Bulletin No. 1892 -12- November 23, 2015

CLASSIFIEDS

REMINDER—This newsletter is available in an electronic version to be sent directly to your email. If you would like to receive the newsletter electronically, email Holly Werner at hwerner@mpmaonline.com and

request the electronic version of the MPM Marketer.

NOTE: Classified ads are accepted on a first come, first serve basis. The cost is $3.00 a line for non-members. The Association office does not look into nor endorse the products and services offered through the Newsletter ads.

FOR SALE: Vendeer root tLS 300c w/ printer mounted in Hoffman A-363612LP UL listed cabinet w/ Hoffman D-AH2001A heater. Includes 2-10 foot probes w/ float kits. Ideal for mounting in unheated area, but can be used anywhere. $1995-Scott 507-27-0655 FOR SALE: JE adams dual motor 110 volt stainless steel commercial vaccum. Unit has very little use/ great condt. Dual recessed locks & user adjustable quarter mechanism for setting the price. Comes w/ several new hoses. $795. Scott 507-276-0655 FOR SALE: 2002 int. 4400DT466, 2800 gal. Alum. Steel tank. Dual pumping/ Excellent condt. 201,000 mil. $59000. Ron 218-3716771 FOR SALE: Local gas & service bay business for sale Very profitable business. Phase I & Phase II as well as new survey is completed. Scott schultz 952-223-0788 or scott.schultz@results.et FOR SALE: Established gas station/repair shop/car wash business in Bagley, MN/ 3 bays w/ hoists, 2 pumps w/ gas & diesel & 24 hr computer pay on one. Rental & U-Haul also available but not in-cluded in price. All tanks etc with up to date inspection certificates. $240,000 call Dick at Grimes Re-alty 218-556-2882 FOR SALE: Daktronics price sign 7ft W x 6ft H. One side is electronic w/ 13”in numbers (remote controlled) other is manual w/ all 16” in numbers included. Both sides have Unleaded, Diesel & E-85 & light up with electric eye. $500. Curt Pederson-320-226-8444 FOR SALE: Trailer from Felling Trailer in St. Cloud, 16000#, wood platform (8x20), ramps, brakes, only used 2x. Located in Central MN, pics available $7500.00. (763)-300-2298 SPECIALIZING in the petroleum industry, Flaten Sandblasting and Paint LLC, fuel tanks, lp tanks, bulk plants, piping. Schedule your next job now with Blake @320-815-4468.

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