Industry Groups Testify on Critical Link Between Fuel Retailers & Supply Chains

NATSO and SIGMA spoke to Congress on the importance of investing in alternative fuels and creating a stable distribution network.
truck at truck stop

ALEXANDRIA, Va. NATSO and SIGMA: America's Leading Fuel Marketers testified before Congress on the critical role that the nation's fuel retailers play in facilitating the efficient movement of goods and energy throughout the United States.   

[Read More: NATSO Returns to Capitol Hill for In-Person Event]

Speaking before the Subcommittee on Highways and Transit of the House Transportation and Infrastructure Committee, the organizations specifically 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.

"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. 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," said NATSO and SIGMA Executive Vice President of Government Affairs David Fialkov. 

NATSO and SIGMA also underscored the need for market reforms that allow businesses to profitably invest in electric vehicle (EV) charging stations, as the existing refueling network represents the fastest, most efficient way to build out a nationwide network of EV charging stations. According to the two organizations, EV charging grant programs, including the National Electric Vehicle Infrastructure Program, should encourage states to reexamine arcane regulations that are incompatible with public EV charging transactions.

NATSO and SIGMA additionally 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. 

Fialkov also testified on additional comprehensive policies that would improve the supply chain, such as allowing year-round sales of E15 ethanol gas blends, advancing the Truck Parking Safety Improvement and Right to Equitable and Professional Auto Industry Acts, and helping to address labor challenges that lead to industry bottlenecks within the supply chain. 

Founded in 1960, NATSO is a national trade association representing America's truck stops, travel centers and off-highway transportation energy providers.

SIGMA represents a diverse membership of approximately 260 independent chain retailers and marketers of motor fuel.

Together, both organizations represent approximately 80 percent of fuel sold at retail.