NATSO, SIGMA TESTIFY ON CRITICAL ROLE OF FUEL RETAILERS IN BOLSTERING NATION'S SUPPLY CHAIN

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May 10, 2023, 13:23 ET

ALEXANDRIA, Va., May 10, 2023 /PRNewswire/ -- NATSO, representing America's travel centers, truck stops and transportation energy retailers, and SIGMA: America's Leading Fuel Marketers, testified before Congress today on the critical role that the nation's fuel retailers play in facilitating the efficient movement of goods and energy throughout the United States.

Testifying before the Subcommittee on Highways and Transit of the House Transportation and Infrastructure Committee, NATSO and SIGMA Executive Vice President of Government Affairs David Fialkov said bolstering the nation's supply chain requires an efficient fuel distribution system that ensures plentiful fuel supplies at competitive prices for consumers.

Specifically, the organizations, which represent 80 percent of fuel sold at retail, testified that a regulatory approach which encourages fuel retailers to invest in alternative fuels would diversify the nation's fuel supply while mitigating the environmental footprint of commercial trucks and passenger vehicles. Such an approach would enhance fuel supply options and limit the industry's exposure to unexpected fuel market disruptions, such as hurricanes or refinery outages.

"Policymakers have had challenges navigating the balance between encouraging investment in alternative fuels such as electricity or biofuels, without excessively disrupting today's fuel markets and in so doing harm the broader supply chain," Fialkov testified. "You can have an efficient fuel distribution system and still have supply chain problems, but you simply cannot have a well-functioning supply chain without an efficient fuel distribution system. That's the role we play. It is critically important to recognize the efficiencies of the liquid fuel distribution system and, to every extent possible, replicate those efficiencies as the country transitions to future fuels."

NATSO and SIGMA underscored the need for market reforms that allow businesses to profitably invest in electric vehicle charging stations. The existing refueling network represents the fastest, most efficient way to build out a nationwide network of EV charging stations, a fact underscored by the U.S. Department of Transportation's Rural Electric Vehicle (EV) Infrastructure Toolkit touting truck stops and travel plazas as a partnership success story.

EV charging grant programs, including the National Electric Vehicle Infrastructure (NEVI) Program, should encourage states to reexamine arcane regulations that are incompatible with today's need for public EV charging transactions. NATSO and SIGMA also urged Congress to encourage the Department of Transportation to flexibly interpret the recent Buy America regulations.

NATSO and SIGMA also highlighted the market challenges created by preferential treatment for sustainable aviation fuel (SAF) over renewable diesel and biodiesel, which power commercial trucks. Preferential tax treatment for SAF will encourage producers to make SAF rather than the longstanding renewable fuels already used in ground transportation, shortening diesel supply and increasing the cost of all goods moved by truck. Consumers ultimately will be forced to pay more for fewer environmental benefits as emission reductions are transferred away from trucking to the aviation sector.

The biodiesel blenders' tax credit has worked successfully to build a robust biodiesel and renewable diesel industry in the United States, enhancing the supply of transportation energy for commercial trucks while limiting U.S. exposure to global petroleum markets and improving the transportation sector's emissions footprint.

Fialkov also testified on additional comprehensive policies that would improve the supply chain, including:

Allowing year-round sales of gasoline containing up to 15 percent ethanol (E15). NATSO and SIGMA encouraged Congress to lift the restrictions on the sale of E15 as soon as possible.
Advancing the Truck Parking Safety Improvement Act introduced by Congressman Mike Bost (R-Ill.), which would encourage state transportation departments to partner with the private sector to expand truck parking capacity;
Advancing the Right to Equitable and Professional Auto Industry (REPAIR Act), which would allow independent repair shops to access the necessary diagnostic information to repair commercial motor vehicles, returning motor vehicles to the road as expeditiously as possible;
Addressing labor challenges that lead to industry bottlenecks within the supply chain. Fuel retailers not only serve professional drivers and fleets, they also frequently employ their own drivers. NATSO and SIGMA support efforts to address the labor shortage.

To read the full written testimony click here.

About NATSO and SIGMA
NATSO is the national trade association representing America's truckstops, travel centers and off-highway transportation energy providers. Founded in 1960, NATSO represents the industry on legislative and regulatory matters; serves as the official source of information on the diverse travel plaza and truckstop industry; provides education to its members; conducts an annual convention and trade show; and supports efforts to generally improve the business climate in which its members operate. For more information, visit NATSO.com.

SIGMA: America's Leading Fuel Marketers represents a diverse membership of approximately 260 independent chain retailers and marketers of motor fuel. While 67 percent are involved in gasoline retailing, 83 percent are involved in wholesaling, 56 percent transport product, 39 percent have bulk plant operations, and 20 percent operate terminals. Member retail outlets come in many forms including truckstops, traditional "gas stations," convenience stores with gas pumps, cardlocks, and unattended public fueling locations.

Contact: Tiffany Wlazlowski Neuman
Vice President, Public Affairs

SOURCE NATSO, Inc.