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Dear PEI Member:

Traditionally the oil industry has been the sole voice of temperance amid the hubbub in Congress for the use of more alternative fuels to reduce US dependence on foreign oil. Now environmental groups are joining some academics and other stakeholders to point out the downside of certain alternative fuel bills that will be considered by Congress in the months ahead.

The bill before the Senate, which mandates the use of 36 billion gallons of alternative and renewable fuels by 2023, has caused groups such as the Natural Resources Defense Council, Friends of the Earth, and Clean Air Watch to issue warnings to lawmakers that they are rushing through legislation without full consideration of the potential damage to the environment and the impact on climatic change. Since available scientific evidence already suggests that the existing renewable fuels mandate of 7.5 billion gallons of ethanol and other biofuels would increase smog-causing pollutants like nitrogen oxide and hydrocarbons, the groups fear that an increase to the mandate could only worsen air pollutants. Environmental groups cite a rule recently issued by EPA that eases air quality requirements for ethanol production facilities as proof that Congress is not considering adequate safeguards to protect the environment.

Meanwhile, a report (www.pei.org/frd) issued by Stanford University professor Mark Jacobson claims if all vehicles ran on E85 in 2020 (hypothetically, the author admits), that E85 may be responsible for increasing ozone-related mortality, hospitalization, and asthma. He estimates the increase would be about 9 percent in Los Angeles and 4 percent in the United States as a whole relative to gasoline without any ethanol. Jacobson goes on to say that “due to its ozone effects, future E85 may be a greater overall public health risk than gasoline. However, because of the uncertainty in future emission regulations, it can be concluded with confidence only that E85 is unlikely to improve air quality over future gasoline vehicles.”

The big question now is how many lawmakers in Congress are willing to stop and study the issue before they advance the legislation. With efforts to boost biofuels seen as enhancing national security and helping rural Americans, my guess there won’t be enough to slow things down.
 

Alternative Fuels and Congress

UST Operator Training

New Distributor Branches

Regulatory Briefs

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EPA RELEASES DRAFT GUIDELINES FOR TRAINING UST OPERATORS
The Environmental Protection Agency (EPA) released draft guidelines (available at www.pei.org/frd) April 10 for states that receive federal funding to train operators of underground storage tanks (USTs). Section 1524 of the Energy Policy Act of 2005 requires EPA to publish guidelines that specify training requirements for those with primary and daily responsibility for on-site maintenance of UST systems, and with responsibility for dealing with emergencies presented by a spill or release from an underground storage tank.

The guidance breaks down operators into three classifications. Class A operators, those with supervisory responsibility, are required to be trained in spill prevention, overfill prevention, release detection, corrosion protection, emergency response, notification requirements, release and suspected release reporting, and temporary and permanent closure requirements. They also must have a general knowledge of tank requirements and be able to make informed decisions regarding compliance with federal requirements and the assignment of appropriate personnel to daily operations.

In addition to all requirements for Class A operators, Class B operators–those with daily responsibility–must be trained in the components and materials of an underground storage tank system.

Class C operators, those who are responsible for responding first to an emergency, must be trained in emergency response.

States must require operators to be trained by August 8, 2012. EPA is taking comments on the draft guidance until May 10.

TWO DISTRIBUTORS OPEN NEW BRANCHES
Northwest Pump & Equipment Co., headquartered in Portland, Oregon, has opened a branch operation at 1271 North Patt Street, Building 25, Anaheim, California 92801. The Anaheim operation is the company’s 14^th branch in the West and 6^th in California.
PWI Incorporated, headquartered in New Oxford, Pennsylvania, has relocated its branch office from West Chester to a new location in King of Prussia, Pennsylvania. The new location provides expanded office facilities and nearly doubles the available warehouse space. The address is 307 East Church Road, Suite 7, King of Prussia, Pennsylvania 19406. Telephone: (610) 272-8590. Fax: (610) 272-8593. Rick Bernhard is branch manager.

REGULATORY BRIEFS
Florida. The Department of Environmental Protection (DEP) has proposed rules that would eliminate Stage II vapor recovery requirements for new and upgraded gasoline dispensing facilities in Miami-Dade, Broward and Palm Beach counties and phase out Stage II vapor recovery requirements for existing facilities in those counties. The proposed rule would also apply Stage I vapor recovery requirements statewide to new and upgraded dispensing facilities, and phase in Stage I vapor control requirements statewide for gasoline dispensing facilities. Go to www.pei.org/frd for a copy.
Maryland. S.B. 975, passed by the Maryland General Assembly during the 2007 legislative session, would expand the definition of “oil” under state environmental laws to include ethanol that is intended to be used as a motor fuel or fuel source, and biodiesel, regardless of whether the biodiesel is petroleum based. Governor Martin O’Malley has until May 29 to sign or veto this legislation.
New Mexico. The New Mexico Court of Appeals has upheld the authority of the state Environmental Improvement Board (EIB) to adopt regulations designed to protect convenience store workers from violence in the workplace. EIB adopted regulations in 2004 requiring c-store owners to have at least two employees working at night or to provide bulletproof enclosures, install video surveillance systems, improve lighting and provide safety training to employees. A spokesman for the New Mexico Petroleum Marketers Association told the Associated Press that the group is leaning away from further appeals.
New Mexico. Governor Bill Richardson has signed a bill into law that is designed to boost biodiesel production and use. The law requires that diesel sold in the state beginning in July 2012 contain a 5 percent biodiesel blend. For sales of biodiesel fuel to local and state governments and to public schools, the implementation date is July 2010. The new law contains a “safety valve” that suspends the content requirement for up to six months in instances of insufficient supply or when the price of biodiesel-blend fuel “significantly exceeds” that of diesel fuel for at least two months.
Texas. The Texas House Agriculture and Livestock Committee heard testimony April 17 on two bills covering temperature compensation for retail dispensers. At the conclusion of the hearings, committee chairman Sid Miller left both bills pending in committee.

APPOINTMENTS
Tait Environmental Services (TES), Inc., Orange, California, has announced that Thomas M. Mullin has joined the company as vice president and general manager. In addition to managing operations at TES, Mullin is responsible for positioning the company into expansion of new areas of growth.
FLEX-ING, Inc., Sherman, Texas, has added Walsh, Long & Company to its sales force. The Illinois-based company will represent FLEX-ING in the Midwest.

NORTH AMERICAN PETROLEUM MARKETING ACQUISITIONS
The Pantry Inc., Sanford, North Carolina, has acquired 11 convenience stores in the Spartanburg, South Carolina, market from Willard Oil Company. The stores operate under the Fast Phil’s banner.
ETNA Oil Co., Ottawa, Illinois, has sold its 11-store c-store chain to Johnson Oil Co. of Rock Falls, Illinois.

DEATHS
Blake Neal, founder of Palmetto Oil Equipment Co., Columbia, South Carolina, died April 16. He founded Palmetto Oil Equipment in 1970 and his son, Robin, serves as company president. Besides Robin and his wife, Robbin, survivors include Blake’s wife, Sue; a daughter, Susan DiBiase and her husband, Larry; and four grandchildren.

YOUNG DISTRIBUTION PROFESSIONALS CONFERENCE SOLD OUT
The Young Distribution Professionals Conference, scheduled for August 5-8 in Itasca, Illinois, is sold out. The conference is sponsored by the Association Education Alliance, of which PEI is a member. Judging from the extraordinary response to this inaugural meeting, there will be other conferences.  

MEMBERSHIP APPLICATIONS
Texas distributor. Dup’s Inc., P.O. Box 4395, Houston, Texas 77210, has applied for distributor division membership in PEI. James DuPriest is manager of the firm, which was established in 1997. The company represents AmFab, Champion, CNIMfg, CntmtSoltn, FEPetro, Franklin, Graco, INCON, ModernWeld, Universal and VST. The company provides fuel systems, automated fueling equipment and environmental consulting and supplies. Nominated for PEI membership by Fred Monroe, Monroe, Arlington, TX.
China hose manufacturer. Xiamen Jolac Petrochemical Equipment Co., Ltd., No. 68, 3^rd Road, Dianqian, Huli District, Xiamen, China 361006, has applied for manufacturer division membership. Connie Yang is commercial assistant for the firm, which was established in 2002. The company manufactures composite hose for petroleum, fuel oil, and chemicals which is sold through distributors. Nominated for PEI membership by Joe Tan, JolacEng, Selangor Darul Ehsan, Malaysia.
Florida environmental engineering firm. Cherokee Enterprises, Inc., 14474 Commerce Way, Miami Lakes, Florida 33016, has applied for affiliate division membership. Alex Sanchez is vice president of the firm, which was established in 1999. Cherokee Enterprises provides fuel system design and installation services. Nominated for PEI membership by Christine Schutt, TriCntyFL, Davie, FL.
Indiana installation and service firm. Northern Indiana Mechanical, 3311 East 15^th Avenue, Gary, Indiana 46403, has applied for affiliate division membership. Michael Hawley is general manager of the firm, which was established in 1982. Nominated for PEI membership by Mickey Meyer, MMSerEqp, Silver Grove, KY, and Jack Horner, NatActMktg, Woodridge, IL.
Mississippi installation and service company. Blue Lightning Enterprise L.L.C., 4045 Davall Road, Olive Branch, Mississippi 38654, has applied for affiliate division membership. John R. Wagner is CEO for the firm, which was established in 2004. The company installs and services petroleum equipment. Nominated for PEI membership by Ray A. Meggs, RaysRepair, Memphis, TN.

ADMITTED TO PEI

• Clean Fuel Technologies Inc., Jacksonville, FL (aff)
• Enviro-Logical Solutions, Inc., Tampa, FL (aff)
• Genesis Environmental Solutions, Inc., Lee’s Summit, MO (aff)
• The Makar Company, LLC, Berryville, VA (aff)
• TouchStar, Tulsa, OK (aff)
• Kennedy Construction Company, Grandview, TX (aff)
• Chen Fuel Systems Ltd., Maalot, Israel (aff)
• Scott McIntosh, Alliance Energy Corp., Branford, CT (O&E)

©2006
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.