Board Directors Meeting Webinar July 16, 2020

Board Directors MeetingWebinar

July 16, 2020

RFGSA Annual BOD Meeting 1

Wednesday, July 15• Executive Committee

– 1:00– 4:00 PM

Thursday, July 16• Board of Directors

– 8:00 AM – 12:00 PM

FYI - Monday, July 13• Ethanol/E15 Annual

– 10:00 – 11:00 AM

2020 Board of Director’s Meetings(All times Eastern Daylight Savings)

RFGSA Board Meeting

• Chairman’s address• Legal Rules of the Road • Operational Highlights

Anti-Trust Guidelines1. The purpose of RFGSA is to conduct compliance surveys. Discussions at RFGSA meetings should be limited to issues that are germane to this purpose.

2. There should be no discussion of competitively sensitive matters at RFGSA meetings. In particular, there should be no discussion of member companies’ (a) prices, (b) costs, or (c) confidential business information, including marketing plans.

3. Company representatives should not discuss their company’s strategies and plans for complying with regulatory requirements.

4. Members/Participants generally may discuss whether RFGSA should support or oppose proposals for government regulation or legislation.

5. If anyone has a concern that a particular topic of discussion may present an antitrust issue, they should raise their concern with RFGSA. Mr. Lenski can consult with RFGSA’s antitrust counsel as needed. In addition, members are always free to consult with their own company counsel.

Association Operations

• Efficient/Effective – Business Model– Leverages Resources/Low Cost

• 51 RFG Member Companies – 372 Company program participants

• Programs:– 2020 - Gasoline, Diesel, Ethanol/E15, State, legacy

RFG/AZ, E85/E15– 2021 (same as 2020) or Fuels Streamlining

• Gasoline, Diesel, NSOP, RFG legacy– Pay to participate– Minimum RFGSA Dues – Vary by Pgm

• Focus and Prepare 2020 & 2021– Known vs. Likely(Possible) - Flexibility

• Annual updates – June 5, 2020• Current Programs(CP) • RFG, Diesel, Ethanol/E15, State/AZ• Legacy E15/E85, AZ

• Fuels Streamlining(FS)– Gasoline, Diesel, Ethanol/E15, State/AZ

Association Operations

Association Highlights

• SWRI – 2020 STR – 1.7%• National Fuels Survey Program (NFSP)• National Sampling Oversight Program (NSOP)• RFGSA Fuels Streamlining Workshop• Website Re-Development/Enhancements• Administrative – Covid-19

• Facilitate – Fuels Streamlining & Current Operations

• NSOP Development– Prioritized PADDs, API’s, Downloads– Tracks - consistent/updateable– Budgeting/Invoicing integration– Accountant Access/Permissions– User interface/History

• Administrative tools – KC, User

Website Development

• Meetings cancelled/rescheduled• Potential $ exposure

– 2020 - YTD – no impact/Yearend - $ up to $40K– Contracts – thru 2022 - Up to $ 90K/yr. – Force Majeure/Negotiate/Legal response?

• RFGSA - Meeting Criteria (In person)– Safety (area, CDC guidance), Liability– Company travel restrictions/budgets– RFGSA/(EC) determination

Administrative – Covid-19

Niagara On The Lake (NOTL)Niagara On The Lake, Ontario, Canada• July 21-22, 2021• Passport Required• Contract includes “social distancing” clause

2021 Board Meeting

RFGSA – Relocation/Payments

• RFGSA Office Relocated July 1, 2018

• New Address:144 East Main Street,Salem, VA 24153Frank.Lenski@rfgsa.orgWebsite: www.rfgsa.org540-404-4437540-675-4082(Fax)

• IMPORTANT: DO NOT SEND INVOICE PAYMENTS TO THIS OFFICE

• Invoice payments: follow notes on Invoice

• Lockbox payments:Address change 3/21/2019RFG Survey AssociationLockbox 10137PO Box 70280Philadelphia PA 19176-0280

Presentation of Marilyn J. Herman | RFGSA Board of Directors | Virtual Meeting | July 16, 2020

• Congressional Action on RFS

• Federal/State regulatory developments

• Update on ASTM/NCWM

RFGSA ANNUAL BOD MEETING

• Significant controversy on Capitol Hill over “gap year” waiver petitions and Small Refinery Exemptions (SREs) under the RFS

• Congressional biofuel supporters, Governors, and farm groups issued letters to EPA & White House urging denial of SRE petitions and opposing RFS waivers due to COVID-19

• July 2, 2020, 32 members of Biofuels Caucus sent President letter ‒ Requested that 52 new “gap year” SRE petitions received by EPA

under RFG program for past compliance years be denied‒ Requested President direct EPA to uphold 10th Circuit Court Ruling

• Nomination of EPA Deputy Administrator stalled over SREs & RFS

Press Release ofSenator Jodi Ernst (R-Iowa)

U.S. Senate Committee on Environment and Public Works

June 26, 2020

Statement of Senator Jodi Ernst Opposing EPA Nominee for Deputy Administrator

“Until EPA tells us exactly what theyplan to do with the ‘gap year’ waivers,Mr. Benevento does not have my vote,”said Senator Joni Ernst.

“Iowa’s hardworking ethanol andbiodiesel producers are sick of beingyanked around by Andrew Wheeler andthe EPA. Our producers need certainty;until we get that, no EPA nominee isgetting my vote.”

• EPA Emergency Fuel Waiver in response to COVID-19

• EPA Regulatory Fuels Streamlining

• RFS Standards for 2021 & Biomass-Based Diesel for 2022

• RVP Standards SIPs and Recission Low-RVP Areas

• EPA Anti-Backsliding Study

• EPA/NHTSA SAFE Vehicle Rule

EPA Emergency Fuel Waiver In Response to COVID-19

March 27, 2020

RFGSA ANNUAL BOD MEETING 18

March 27, 2020 – EPA issued letter to Governors and Mayor of DC “May 1, 2020 Fuel Waiver Concerning Summer Gasoline”

• EPA waiver issued in response to decreased gasoline demand due to COVID-19 and inability to sell winter gasoline and turn storage tanks to meet EPA summer gasoline requirements

• RVP: Waived Federal EPA summer RVP standards of 9.0 psi or 7.8 psi RVP and Federally-Enforceable SIP covered areas from May 1 - May 20, 2020

• RFG: Waived federal RFG requirements in RFG covered areas and commingling prohibition

• Allowed for distribution and sale of supplies stored in terminal storage tanks after May 20, 2020 until supplies depleted and sale of fuel at retail after May 20, 2020 until supplies depleted

• In alignment with federal EPA waiver, states issued waivers from state ASTM RVP and volatility standards due to COVID-19

http://hermanassociates.com/documents/StateChartCOVID19.pdf

• 100 waivers issued over a 3-month period from April through June (original waivers, extensions, revisions, clarifications)

• 44 states, 1 county, and 1 city issued waivers from state volatility standards

‒ 29 states mirrored EPA by allowing supplies to be depleted past May 20 expiration date / provided most flexibility

‒ Other states set expiration date but issued waiver extensions

www.HermanAssociates.comJuly 16, 2020

IL IN*

MS* GA*

VT NHMACT*

DE*MD*

Summit County*

Issued Waiver for April, May and JuneIssued Waiver for April & MayIssued Waiver for April Issued Waiver for MayNo waiver issued or state has no fuel quality / vapor pressure regulations * Waiver allows for depletion of supplies in storage at terminal and retail sale after May 20, 2020 21

• Initiated Streamlining – Public Workshop May 21-23, 2018

• EPA issued 4 discussion drafts and met with stakeholders

• EPA published Proposed Rule – May 14, 2020

• Held Virtual Public Hearing – May 28, 2020

• Comment period closed June 29, 2020‒ EPA received over 55 comments from stakeholders

• Final Rule anticipated fall of 2020

• Implementation Date – January 1, 2021 (Projected)

• Alliance for Automotive Innovation• American Motorcyclist Association• API and AFPM • Association of Marina Industries• BP America, Inc• Buckeye Partners, LP• Butamax Advanced Biofuels, LLC• Chevron• Chevron Oronite• CITGO Petroleum Corporation• Energy Transfer, LP• Exxon Mobil Corporation• Flint Hills Resources• Florida Department of Environmental

Protection• Growth Energy

• Independent Fuel Terminal Operators• International Liquid Terminals Association• Marathon Petroleum Company• Motiva Enterprises, LLC • National Association of Clean Air Agencies• NACS and SIGMA • National Corn Growers Association • National Marine Manufacturers• Petroleum Marketers Association • Phillips 66 Company• Renewable Fuels Association• Shell Oil Products• Valero Energy Corporation• Wisconsin Department of Natural

Resources• Additional commenters

EPA Proposed Rule: “Fuels Regulatory Streamlining” – May 14, 2020

• Eliminates Summer RFG VOC Standards and Replaces with RVP Cap – Replaces summer VOC standards with single RVP cap (7.4 psi RVP)– Removes complex model as means for determining RFG compliance– Eliminates restrictions on commingling CG and RFG in winter

• Streamlines regulatory requirements– Allows refiners to account for ethanol added downstream in consistent manner– Streamlines recertification of previously certified gasoline (PCG)– Consolidates reporting requirements

• Establishes National Sampling Program – Consolidates independent surveys into one nationwide survey– Streamlines 3rd party oversight provisions

Provisions unchanged include - RVP standards for conventional gasoline, RFS standards, Tier 3 ethanol denaturant, PBMS testing, and others

• May 13, 2020 – EPA submitted Proposed Rule “Renewable Fuel Standard Program: Standards for 2021, Biomass-Based Diesel Volumes for 2022” to Office of Management and Budget (OMB)

• Scheduled to be released early July in order to meet November 30 statutory deadline but rule delayed

• Key issues: ‒ Whether to lower RFS blending targets due to

COVID-19 ‒ Debate over small refiner exemptions (SREs) and

how EPA should handle 10th Circuit Court Decision

Kansas City, MOFiled SOS July 1, 2020Effective date Sept. 30, 2020EPA Final SIP by summer 2021

Atlanta, GA Final Rule Sept. 20, 2019Effective Oct. 21, 2019Implemented summer 2020

KSKansas City, KSUnder Internal ReviewEPA Final SIP by summer 2021

• June 8, 2020 – EPA published a Notice and Request for Public Comment “Proposed Anti-backsliding Determination for Renewable Fuels and Air Quality”

• Clean Air Act requires EPA to complete “anti-backsliding study” to determine whether renewable fuel volumes adversely impact air quality as a result of changes in vehicle and engine emissions

• EPA proposed no additional measures necessary to mitigate adverse air quality impacts of renewable fuel volumes under CAA

• Comment period closed July 8, 2020

• Biofuel groups stated EPA used flawed emission model

• EPA and NHTSA issued final rule “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021-2026” to amend & establish carbon dioxide & fuel economy standards for passenger cars & light trucks

• EPA amended carbon dioxide standards for model years 2021 and later

• NHTSA amended fuel economy standards for MY 2021 and established new fuel economy standards MYs 2022-2026

• CAFE and CO2 emissions standards in final rules will increase in stringency at 1.5 percent per year from MY 2020 levels for MYs 2021-2026

• Final Rule published April 30, 2020 / Effective June 29, 2020

• Lawsuits filed by states and cities, biofuel and farm groups

ASTM D02 Subcommittee A Meeting on Gasoline and Gasoline Oxygenate Blends (June 15, 18, & 19, 2020)

• E15 Ballot to reference 1.0 psi RVP waiver for E15 received multiple negatives / new ballot being prepared

• Work on Temperature Data to Update Volatility Table in D4814 underway – seeking to issue ballot by August

• Discussions occurring on whether Drivability Index (DI) can be eliminated or modified (may send to CRC to evaluate)

• Significant effort underway to determine what changes needed (if any) in ASTM D4814 volatility table, TABLE 4, “Schedule of U.S. Seasonal and Geographical Volatility Classes” based on review of modern weather data

• Volatility Classes in Table 4 of ASTM D4814 Automotive Spark-Ignition Engine Fuel based on 1972 “Doner Report” weather data

• CRC Report completed December 1, 2018 (aka Doner 2) “Comparison of Ambient Temperatures from ‘Doner Report’ to Modern Day Ambient Temperatures for the Same Geographic Areas, CRC Report No. CM-138-16-2”

• Preliminary results indicate changes needed / transition months key issue

• Targeting to ballot temperature changes, 1.0 psi RVP waiver for ethanol, and reduced T50 of 145⁰ late August or September 2020

• Annual Meeting postponed until Interim Meeting January 10 – January 15, 2021

• NCWM Bylaws do not allow electronic Annual Meetings

• NCWM scheduled “technical” sessions July 13-15, 2020 to discuss L&R and other Committee action items

• Key voting issue at upcoming Interim Meeting

– E15: Proposal to add specific percentages of 9-15% to ethanol RVP waiver HB 130 Uniform Engine Fuel Regulation

2.1. Gasoline and Gasoline-Oxygenate Blends.

2.1.2. Gasoline-Ethanol Blends. – When gasoline is blended with denatured fuelethanol, the denatured fuel ethanol shall meet the latest version of ASTM D4806,“Standard Specification for Denatured Fuel Ethanol for Blending with Gasolines forUse as Automotive Spark-Ignition Engine Fuel,” and the blend shall meet the latestversion of ASTM D4814, “Standard Specification for Automotive Spark-IgnitionEngine Fuel,” with the following permissible exceptions:

(a) The maximum vapor pressure shall not exceed the latest edition of ASTM D4814limits by more than:

(1) 1.0 psi for blends containing 9 to 15 volume percent ethanol from June 1through September 15 as allowed by EPA per 40 CFR 80.27(d).

(Amended 20XX)

FLR-20.5: Gasoline-Ethanol Blends (Voting Item) Submitted by API

• GA, NC, NY, MO, SD, WI – Finalized or proposed rules to incorporate 1.0 psi RVP waiver for E15 in fuel regulations

• WI – Issued Draft Proposal to amend petroleum product regulations

• NM – Suspended biodiesel mandate until through Dec. 15, 2020

• PA – Final Rule to reduce sulfur in commercial Fuel Oil No. 2 and lighter commercial fuel oil from 500 ppm to 15 ppm Sept. 1, 2020

• SD – Passed legislation updating to 2020 HB 130 & 2020 ASTM

• OK – Final amendments to Fuel Inspection Regulations including new labeling requirements for E15 tanks

For further information contact…

Marilyn J. Herman, PresidentHerman & Associates3730 Military Rd, NW

Washington, DC 20015202-362-9520 (office)202-550-4282 (cell)

Website: www.HermanAssociates.com

Email: MHerman697@aol.com

• Fuels Streamlining Regulations (FS)– National Fuels Survey Program (NFSP)– National Sampling Oversight Program (NSOP)

• Other Program Issues

Technical Issues

FS Regulations - Status

• Notice of Proposed Rulemaking – April 13, 2020 • EPA unified agenda – FR by 12/2020 - delay

– EPA – Delay - Nov./Dec. 2020?

• Implementation - target - Jan 1, 2021– NFSP – 01/01/2021– NSOP – delayed start - 6/01/2021 ?

RFGSA Exec Comm Meeting 37

• Independent surveyor• Annual plan approved by EPA• National representative Sampling- Size Est. 8600(6600

gas/2000 diesel)• Testing- Benzene, Sulfur, Oxy, RVP(Summer)/Diesel

Sulfur• 10 Business Day Turnaround• Results – within 10 business days of receipt• Expedited - Potential Non-Compliance (PNC’s)• Reports – EPA Quarterly/annually• Survey Design Complete 2/2019 – Pending - FR

National Fuels Sampling Program (NFSP) Gasoline requirements

• Quarterly/Annual Reports• Reporting - 24 hrs. completed analysis

• RVP, Gasoline Sulfur > 95 ppm, Diesel Sulfur >15 ppm• Ethanol vol% - E10 <>10 ,E15 <10 or >15 , E15 labelling,

Refusals• Sample Specification Failure - auto resample

• PNC reporting – retailer/branded refiner notified• Shared Samples/Reporting

– Primary is responsible for PNC management/closure– Secondary – Brand/Product Registered FYI

• Non-Member (unidentified product)– PNC mail notification

Reporting

• Fuels Streamlining Workshop• Terminology• Requirements• Process• Other Issues

National Sampling Oversight Program (NSOP)

• Timing for implementation – short– Get word out to Industry – Coordinate with RFGSA operations/budgeting– Lower compliance costs

• Virtual meeting – Record – available on API/AFPM/RFGSA websites

• EPA participation

Fuels Streamlining Workshop

Fuels Streamlining Workshop –5/20/2020

• RFGSA • Regulations• Survey Designs/Methodology• Costs• Registration • Data Management• Next Steps• Questions

• Sampler : Person performing site sampling• RFGSA Inspector : witnesses sampling• NSOP Project Manager PM : Coordinates project “Events”• Auditor : Independent - 3rd Party - Evaluates Inspector & RFGSA

Inspector* - potential COI events

Terminology

• Independent surveyor• Annual plan approved by EPA• Sampling – all participating facilities – Min 1 summer/1

winter– Based on 350 registered facilities - Est 1000 events

• Refiner/Independent Lab Testing – Sulfur(<80ppm), benzene, RVP(summer) - (Site Sample)

• RFGSA Lab Testing – Sulfur, benzene, RVP(summer), aromatics, olefins, Distillation + compliance (oxy)

• Results – within 10 business days of receipt• Compare results – Inspection Sample vs. Site Sample• Expedited PNC’s (Potential Non-Compliance)• Reports – EPA Quarterly/annually

National Sampling Oversight Program (NSOP)Requirements

Participation

• Defined in Regulations– Claim oxy credit and or affirmative defense

• Exceptions: • In-line blending Wavier, Butane/Pentane blender (PCG),

Rail/Truck, CARB Fuel only, No ethanol dilution ?

• EPA Facility Estimate ?– approx. 350 participating facilities– List of potential participant – Registration – refine – Implications for planning – PADD Importers

NSOP Process TimelineCommunication/Cooperation are ”keys” to OUR “Success”

Initial Site Responsibility

• NSOP Document Package –available for download during registration

• Site Questionnaire – complete –• 2021 no later than 2/01/2021• 2022 + Oct. 31st - Previous Year)

– Facility Checklist – safety requirements, security, type, operation, contacts etc.

• RFGSA PM Schedules/Coordinates/Inspector Witnesses– Site requirements determined – Sampling window based on facility event– a batch of certified gasoline/simulated sample

• Sampling /Site visit - RFGSA Inspector– Min - 2 samples/yr. (1 Summer/1winter)– + 4 samples - (2)RFGSA, (1) EPA, (1) COC Transferred to Site

(sample)– 4 samples for COC before releasing Site Sample– Inspector/Auditor - stop sampling if sample integrity is jeopardized(ASTM)

• Sample Transport – respective labs within 48hrs.

• RFGSA Inspector AND Sampler – same entity (<5%) – Avoid any potential COI – Inspector - all cases - 3rd Party Auditor – Analysis at alternate lab

Sampling / Site Visit - “Successful Event”

• The following steps will be part of the survey design plan to mitigate this potential issue.– Require RFGSA Inspector to notify RFGSA & 3rd

party Auditor of any potential COI issues prior to beginning of each scheduling period (quarter/half).

– In all cases of potential COI - 3rd party auditor will be the Inspector for those events.

• Subject program samples will be analyzed at alternative program lab

• Proposed change is approx. cost neutral –variables - less 3rd party audits/travel/efficiency

Avoid Potential COI

• RFGSA Inspector or PM logs in to RFGSA/SWRI Website– Inspector completes work that day/evening if possible

• no later 24 hrs. after sampling

– Web Form asks for:• EPA Site ID, Inspection Date, COC control #, Inspection result (Pass/Fail)• Uploads PDF of Inspection form• Enters Gasoline specifications for RVP given by Sampler

– Sample Date triggers 10 business day countdown for results from Site• RFGSA Lab has 10 Business Days from Receipt in Lab

– Inspector PNC Comments• Failed Inspection, REFUSAL, Product Not Ready, Site Closed, Etc. - (immediate PNC)

– Resample fees*

Post Site Visit

RFGSA Project Manager(PM) Input Screen Illustration

Testing

• RFGSA - Samples tested via designated methods– Facility/Independent Lab/RFGSA – testing “Neat”

• Sulfur• Benzene• RVP (Summer)

– Comparison Test - (Method Reproducibility (R)) vs RFGSA– Compliance Testing- RFGSA only

• Hand blend 10vol% Ethanol• Sulfur, Benzene, RVP(summer) + distillation characteristics,

aromatics, olefins, and oxygenates

• EPA Reporting- 10 business days of receipt in Lab• PNC’s - Expedited

– Sulfur >80 ppm/ RVP > Specification/ Refusals

• QA/QC data submitted by Facility• Method Used• Site Precision

– Provide Data set used for Site Precision (Min 15 points, Max TBD by Method)

• RFGSA Calculates TPI & Precision Ratio– R/R’ & R/r

• Downloadable Website tool• Upload Inputs – Facility Input Screen

Method QA Data Review

• Site has 10 Business days to upload test results – Exceeding 10-day – Site/Company receives Warning email – Exceeding 15-day window – PNC to EPA/Company– POCs/Members receive notice emails – Site uses EPA ID#, Date of inspection, COC control # to access Website

• (inspector created initial record night of visit)

– Site enters Test values, Site Precision Dataset for each Method/Inst and uploads COA

– Site can return to record but cannot change inputs aside from document upload (Add/Replace Document)/ Comment

– Site can download blank CAR for reference

Site Responsibility

Facility Input ScreenIllustration

Data Review – Site Precision

• REFUSAL – Immediate PNC- all parties notified– Inspector revisit within reasonable window AT SITE EXPENSE

• Inspection Failure – Immediate PNC -all parties notified– Inspector revisit within reasonable window AT SITE EXPENSE

• Test Reproducibility Failure – PNC– All lab results from Site and Inspection must fall within method

reproducibility– Site Notified, CAR process - 60-day response window

• RVP/Sulfur Failure: Immediately after reporting Sample– 24 hr notice to EPA / Member by email

• Fuel specification Failure: Immediately after reporting value– Test Failure requires immediate Primary Lab retest

• RVP automatically receives 2 runs, Sulfur>80 receives 2nd run

• EPA Notified of PNC status

Project PNCs

Reporting

• Goal: Confidential Business Information of Participants• Refiner/Independent lab Sampler/RFGSA Inspector(s)

inputs– reports uploaded on RFGSA website within 10 business days

• Website Reporting:• Comparisons of refiner/importer sample vs. RFGSA Inspector

sample – testing– Sample Variations (Neat) > ‘R’ – Sulfur, Benzene, RVP (summer)

• Compliance (Blended) – Sulfur, Benzene, RVP specifications• Method QA Data Review

– Provide online CAR form to address PNC – follow-up/closure

• RFGSA Quarterly/Annual Reports – Includes QA Review

QA/QC - Oversight*• Independent Auditing (3rd party)Field• NFSP • NSOP

– Initial program and annual Inspector training (PM/Auditor) – Inspector assessment - annually– NSOP Consistency (API, RVP, Benzene, Sulfur) Random Audit

• 2 of the 4 , summer must use RVP - Compare both RFGSA Inspection samples*

Labs• RFGSA/CCC Lab Audit 2/yr per Lab

– Lab/17025/Agreed upon procedures– Utilize existing QA/QC – includes CAR system

*Internal oversight

Cost Estimates• Fuels Streamlining Assumptions:

– 2020 NPRM/2020 Est. Pricing/10% Contingency – Subject to final rule

• National Fuels Sampling Program (NFSP) –Production/Imports

• Includes Gasoline, E15, Diesel – Est. - $ 2.9M• Reg. Obligation/Product/Testing $ - Shared OH Expenses

• National Sampling Oversight Program (NSOP) – Facilities• Based on est. 350 facilities (1000 events) - Est. $4.3M annually

» Increases in est. shipping, testing, PADD witnessing, contingency• Annual cost/registered Facility – Est. $10K

• STATE /AZ Program– Estimated at approx. $223K

• Contact RFGSA– Release PADD restriction

• Registration – add enrollment – Registration Facility Fee + Actual billed expenses– Post billing - RFGSA

• RFGSA /PM coordination • Expedited PADD event

Emergency Response

• New Registrations – Complete - No later -8/01/2020 - (Proposed - extended – 1/15/2021)

• RFGSA Website (www.rfgsa.org)– Login or Create an account– Track descriptions

• Registration– Gasoline/Diesel/NSOP– Ethanol/E15 *– STATE - AZ – separate state program*– Legacy – may only apply if previous RFGSA program

participant*

RFGSA Website Registration

* Not discussed - Questions contact RFGSA

Concept: Fuels Streamlining– Overall PNC summary– Manage my company program link– Archived Data – prior to FS start– Current PNC – action list

• Chronological

– Quick sorting tools – i.e. Retail fuels or NSOP– Search – detailed lookup– User Administration

Compliance Management

• Gasoline Track automatically enrolls/populates:– “Linked” - Diesel, NSOP – Change – will change status – incomplete/waiting

• Gasoline – Prioritized PADD’s• Butane/Pentane blenders – not required to participate• Automatic samplers - ASTM procedure – coordinate

with PM• Multiple PADD import registrations• Witnessing checklist

– COC verification step– RFGSA – NSOP document Pkg – updated

• Comments - NSOP format

RegistrationQuestions/Comments

Program Participation

• Start with Gasoline Track• Populate Gasoline/Import Facility info

– EPA ID#, or Import PADD EPA ID# (2/PADD), Facility Address, Volume

– Volume = Total FMG – all BOB’s - “grossed up “– Prioritized Import PADD facilities

• Likely Anchorage/Dockage• Organized by PADD#

– Facility Name, City, State, Zip – (no EPA ID required)» Don’t need actual address (multiple dockage facilities i.e.

Linden, NJ) – confirmed with PM at event scheduling

• E15 Volume – Est. Total U.S. E15 Volume (in 000's barrels)

Gasoline Registration

NSOP Facility Inputs

Annual/Limited

• ONLY Gasoline facilities participate• Populated by Gasoline NFSP registrations

– Corp, Facility Primary Contacts, Secondary (Optional)

• Exceptions: (Will not participate in NSOP)– Inline blending waiver– Butane-Pentane blending w/PCG– CARB Fuel Exclusively – PADD Rail/Truck exclusively– No Ethanol Dilution

• Can be used for facilities on “hold” – possible activity

NSOP Registration Details (1)

• Manufacturer / Imports – Annual (Year Around)– Limited (Fixed Seasonal Dates)

• PADD Registration lead times – 30 days

• Seasons– Winter1 - January 1 to April 30– Summer - May 1 to September 15– Winter2 - September 16 to December 31

• Limited Production Schedule– Text box for Exception Descriptions

NSOP Registration Details (2)

• PNC notice – via email• Login to website – www.rfgsa.org• PNC organized – chronologically/filters• Sample Worksheet - Details• ACTIONS – Comment/Upload/Close• User Options – Administration• Resources

Compliance Data Management – Action summary

– 3rd Qtr.: Ongoing Registrations• STR contracts signed – NFSP• Budgets Finalized• Board Meetings

– 4th Qtr.: Ongoing Registrations • FR Issued – Nov/early Dec• Survey Design plans finalized/submitted• STR contracts signed• Annual billing – by Oct. 1 - NFSP• Dues Remittance – no later 12/01• EPA - Escrow letter – 12/15

2020 RFGSA – Next Steps

• 1/2021 – NFSP/NSOP Implementation– 1st Qtr.:

• Ongoing Registrations – thru 1/15• Annual Billing – 1/30• Dues Remittance – no later 3/30

– 2nd Qtr.:• EPA Escrow – NSOP 4/15

– NSOP events commence – 6/01?

2021 RFGSA – Next Steps

• 2020 YTD Program Results• 2021 Survey Designs• Other Issues

Other Program Issues

Fuel Waivers

• RFGSA monitors only Federal waivers • Survey - No change in regulatory requirements• Member responsible/accountable for

determining applicability/response• Reviewed process with EPA

2020 RFG/AZ/ULSD Results YTD

78 RFG Samples collected during Waiver period – 0 PNC samples

• Primary - NE states

RFG RVP counts

• Total Requested – 2412• Total Analyzed – 2163• Empties – 10.3%

– Perm Closed 28%

• Refusals – 1.0%• E15 Ethanol PNC’s – 11% (Blended inaccurately)

– 70 % of Ethanol PNCs blended high

• Total Site PNC – 4.2 %• Overall PNC – 5.7%

2020 E15 YTD Results (6/29/20)

E15 Program Participation

2020• All Federal Program – RFG, Diesel, STATE/AZ,

Ethanol/E15 - approved2021• RFG/Ethanol - 9/01• Fuels Streamlining – NPRM – 10/15• Diesel/E15 – 11/01• STATE/AZ – 12/31

2020-21 Survey Designs

Financial Report

• 2019-21 Budget Review– 2019 Review/Audit– 2020 YTD– 2021 Projections– Dues– Investments

RFG Survey Association 2019 Financial Highlights

• 2019 Federal Expenses were below budgeted amounts by 10% largely due to the contingency funds budgeted which did not need to be utilized.

• Financial Position as of December 31, 2019 was very liquid with 37% of the Association’s assets held in cash equivalents and 61% held in mutual funds

• The Association has no long-term debt

• 2019 Financial Audit completed – No findings reported

• No new accounting standards adopted in 2019

RFG Survey Association2019 Actual Expenses by Major Category (Federal)

Sampling Testing & Reporting

Consultants13%

Salaries & Benefits12%

Other3%

Consultants

Salaries & Benefits

RFG Survey Association 2020 Program Expenses

• Actual program expenses are paid directly by benefiting members. (direct expenses) – i.e. Sampling, Testing, Reporting, Consultants

• Other program expenses will be allocated based upon estimated percent of sample of the total program. (in-direct expenses) – i.e. Wages, Rent, Insurance, Office Exp

• For new programs, 1/2 % of the total budget is allocated to new business

RFG Survey Association – FederalActual (06/30/20) vs. Budget

RFG Survey Association2020-21 Budget Projections

• For the six months ended June 30, 2020 expenses are approximately 16% below budgeted amounts but many one-time large expenses occur in the second half of the year (annual meeting, executive committee, etc.)

• Expenses for the remainder of the year are based upon known expenditures where possible or annualized amounts

• Year 2021 expenses are estimated for the Gasoline track and its expected volume of activity. Sampling, Testing and Reporting is estimated at $1.75MM

• Breakdown of Year 2020 projected costs by major categories

RFG Survey Association – Federal 2020 Projected Expenses by Major Category

Sampling Testing & Reporting63%

Consultants14%

Salaries10%

Other14%

Consultants

Salaries & Benefits

Current Programs - (Hybrid) - FSPTC• RFG(Gasoline), Diesel, Ethanol/E15, State/AZ

– Legacy AZ, E15/E85• STR ($) allocation - Move to D6550/5769• 2021 STR Overall Increase 1.7%

Fuels Streamlining – NPRM – 1000 events• Gasoline, Diesel, Ethanol/E15, State/AZ• Budget Options:

– FR status - reallocation/rebilling ?

2021 Budgeting Notes

Track Est. Allocations 2020-2021

RFG SURVEY ASSOCIATION – GASOLINE (RFG)2020-21 PROJECTED

RFG SURVEY ASSOCIATION – DIESEL 2020-2021 PROJECTED

RFG SURVEY ASSOCIATION – STATE/AZ 2020 -2021 PROJECTED

RFG SURVEY ASSOCIATION – ETHANOL/E15 2020-2021 PROJECTED

NPRM – GASOLINE 2020-21 PROJECTED

NPRM – DIESEL 2020-2021 PROJECTED

NPRM – NSOP2020-2021 PROJECTED

NPRM - ETHANOL/E152020-2021 PROJECTED

STATE/AZ (NPRM impact)2020 -2021 PROJECTED

Financial Report – Associated Dues

• Dues Issues– Legacy Programs/Tracks - RFG/AZ

• 2 yr. close out • Annual Billing • Debits billed/Credits remain until closeout - Transfer to

2020 “active” Tracks

• 2021 Estimated Dues – Current Programs – RFG, Diesel, State/AZ,

Ethanol/E15– Legacy E15/E85, AZ closeout

RFG Survey Association Dues2019-21

• 2019 Dues are based upon actual expenses and production volumes reported to the EPA.

• 2020 Dues previously reflected estimated over or underpayment from 2018

• Revised estimates for 2020 production and final over or underpayment from 2019 will be reflected in calculating member dues for 2021.

• Investment income is allocated based on each member’s cash paid to the Association.

RFG Survey AssociationCost per Gallon – Gasoline

0.0079282183

0.00907029640.0104877919

0.0093027337

0.00238446100.0016139377

0.0000000000

0.0020000000

0.0040000000

0.0060000000

0.0080000000

0.0100000000

0.0120000000

Cents per Gallon

RFG Survey AssociationCost per Gallon – State

0.0085053251

0.0102471821

0.0092434960

0.0118364773

0.0000000000

0.0020000000

0.0040000000

0.0060000000

0.0080000000

0.0100000000

0.0120000000

0.0140000000

2019 Actual(AZ)

2020Estimated

(State)

2020Revised

Estimates(State)

2021Estimated

(State)Cents per Gallon

RFG Survey AssociationCost per Gallon – Diesel

0.0009563909

0.0009286232

0.0005487970

0.0000000000

0.0002000000

0.0004000000

0.0006000000

0.0008000000

0.0010000000

0.0012000000

(FieldReserved)

2020Estimated

2020Revised

2021Estimated

Cents per Gallon

• 2020 Registrations– Due June 5, 2020

• Track Status:– Majority of enrollments are complete– 87% overall, Ethanol/E15 85%, NSOP – 70%– Reminders sent (3+)– Notable exceptions – FCL to follow

• NSOP extended 1/15/2021

Registration Update – 7/15/19

Dues Timeline

• 8/01 - Notification of Withdrawal To RFGSA– Final Reconciliation – previous yr.

• 10/01 – Invoices To Members -NFSP/current pgms.• 11-12/01 – NFSP/current pgms. - Payments Due

To RFGSA• Dec. 2020 - Fuels Streamlining FR

– NSOP Enrollment until - 1/15/2021• 01/30/2021 – Invoices to Member – NSOP• 3/31/2021 – Payments Due - NSOP

• Gasoline/STATE - $5000/yr.• Diesel $0 or $2500/yr. (no volume) • Ethanol/E15 – own fee schedule/roles• Refiner Oversight (2021) - $5000• Admin fees - $1500 mid year break-in (new)

Minimum Dues

Investment Summary

• IPS Objective: Security & Liquidity• Investment Advisor – Citibank• Association conservatively invested

– Managed Portfolio – 100% bond - U.S/Global, Low risk

• YTD/Inception Performance – (%) 2.40/2.09• Reviewed Mo./Qtrly – RFGSA/Advisor • Biannually - Exec Committee

2021 BOD Voting IssuesJuly 16, 2020

• Elect – 2021– RFGSA Executive Committee– RFG Survey Services Officers

• Approve ‘21 Contract – SWRI/CCC• Approve ‘21 Budgets• Approve ’21 Survey Designs • RFGSA Survey Services - Next

2021 RFGSA - Executive Committee Nominations

OFFICE NOMINEECHAIRMAN A. Perrin - Irving OilVICE CHAIRMAN J. Reese - Shell PRESIDENT F.C. Lenski - RFGSAVICE PRESIDENT D. Gilstrap – ChevronTREASURER B. Larson - ExxonMobilSECRETARY J. Askounis – Phillips 66CHAIR, TECH COMM V. Lichtinger - Marathon

2021 RFG Survey Services Inc.Nominations

OFFICE NOMINEECHAIRMAN A. Perrin - Irving OilVICE CHAIRMAN J. Reese - Shell PRESIDENT F.C. Lenski - RFGSAVICE PRESIDENT D. Gilstrap – ChevronTREASURER B. Larson - ExxonMobilSECRETARY J. Askounis – Phillips 66CHAIR, TECH COMM V. Lichtinger - Marathon

RFG Survey Association 2021 BOD Voting Issues

• Exec Comm Nominations /RFG Survey Service Officers • Approve 2021 - STR – Contracts

– SWRI – up to $3.1 M– CCC – up to $ 3.3M

• Approve 2021 Budgets – RFG – up to $ 2.8M– Gasoline – up to $2.0M– Diesel – up to $ 488K– State – up to $ 233K– Ethanol/E15 – up to $ 1.4M– NSOP – up to $4.4M

• Approve 2021 Survey Designs– RFG, Gasoline, Diesel, Ethanol/E15, State (AZ)

RFG Survey Services Inc.

Annual Board of Director’s MeetingWebinar

July 16, 2020

Agenda

• Open 2020 Meeting • Officers – 2021 Nominations – previously

approved• Organization is idle – no operations scheduled

for 2021• Close meeting

Presentation Materials

• Available – by 7/23/20• Login to website, member login• Select Program• Downloads tab• Links to other RFG Program downloads

– Board Members• BODMtg_071620

Meeting Summary

• Member Comments/Closing Remarks• Meetings 2020

– TC – Oct. 7, 2020 – Scottsdale, AZ– EC – Dec. 2-3, 2020 – Hyatt Coconut Point, Bonita Springs,

FL – includes: Lawyers/Accountants/Citibank• Meetings – 2021

– BOD - – “Passports required” - Niagara On the Lake, Ontario, CN (NOTL) – July 21-22

– EC - July 21, 1:00 pm – NOTL– TC – March 17 – SAT & Oct. 6, Scottsdale, AZ– EC Dec. 2-3, Hyatt Coconut Point, Bonita Springs, FL

• Board – 2022 - Boulder, CO or Lake Tahoe, NV ?• Thanks for your participation!

Board Directors Meeting Webinar July 16, 2020

Documents

Transcript of Board Directors Meeting Webinar July 16, 2020

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