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Dear PEI Member:
Yesterday President George W. Bush signed the Energy Independence and Security Act.
The signing was expected after the Senate stripped a $21.8 billion tax package with
incentives for renewable energy and energy efficiency from the bill, mostly
paid for by repealing billions of dollars of tax breaks for the oil
industry, to avoid a Republican filibuster and threatened presidential veto.
For PEI members, the most important section of the law is the one that establishes a
five-fold
increase in the use of biofuels in motor fuel to 36 billion gallons a year by
2022. Some 21 billion gallons must come from non-corn sources, such as wood
chips, switchgrass and other cellulosic materials. The law does not include a mandate for
the installation of E85 dispensers at retail outlets.
The Act also requires an increase in the Corporate Average Fuel Economy
(CAFE) standard for passenger cars, light trucks and SUVs to a fleet-wide
average of 35 miles per gallon by 2020, which will eventually reduce U.S.
oil demand by 2 to 4 million barrels a day. It is the first increase to
automobile efficiency standards in more than three decades.
The legislation also increases energy efficiency standards for
appliances, lighting, and commercial and federal buildings.
PUBLICATIONS
PEI's Recommended Practices for Installation of Bulk Storage Plants
(PEI/RP800-08) is currently available for public comment through January 15,
2008, at www.pei.org/RP800. A paper
copy of the draft document was mailed December 20 to the official
representatives of all PEI member companies in the Unites States and Canada.
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Bush Signs Energy Bill
New Publications
Government Fleet
Card Study
Ethanol Regulated
Under UST Program
Don't miss out on the 2008 Young Executives Winter Conference!
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How to Test Cathodic Protection on Underground Storage Tanks has
been made available by NACE International. The 120-page,
spiral-bound book was written by Alex Ralston, president of PEI member Petcon, Inc., Richland, Mississippi. The book covers
testing cathodic protection of underground storage tanks and piping
covered under the federal underground storage tank regulations. The
publication (Item #38477) can be purchased from the NACE web site:
www.nace.org.
Recommended Practice for the In-service Inspections of Aboveground
Atmospheric Fiberglass Reinforced Plastic (FRP) Tanks and Vessels (FTPI
2007-1) has been released by the Fiberglass Tank and Pipe Institute. The
27-page document includes information on inspector qualifications, periodic
preventive maintenance inspections, certified external inspections, certified
integrity inspections, internal inspections and alternate non-intrusive
inspection methods. The document also includes report forms for monthly,
annual and periodic preventive maintenance, certified inspections, and a
section on aboveground fiberglass tank fabrication. To obtain a copy of the
recommended practice, go to
www.fiberglasstankandpipe.com.
GOVERNMENT FLEET CARD PROBLEMS
Federal fleets have a statutory and regulatory duty to measure and
report the use of alternative fuels under the provisions of the Energy
Policy Act of 2005 and Executive Order 13423 (January 4, 2007). The majority
of federal fleets purchase alternative fuels at commercial retail sites
using GSA SmartPay® contracted fleet cards. The fleet cards collect
extensive data regarding fleet operations and refueling—including fuel
type—from retailer point of sale equipment. But, as a report prepared for
the Department of Energy's Federal Energy Management Program points out,
the fuel type reporting
from retailer POS systems is only accurate 40 to 50 percent of the time. As
a result, federal fleet managers cannot use the reports available from fleet
card companies to demonstrate compliance with the requirements to use
alternative fuels in alternative fuel vehicles
The report, prepared by Vista Consultants, LLC, examines the current status of
the fleet card industry from card to fleet manager and proposes several
approaches to solving the reporting issues encountered when alternative
fuels are purchased.
Click here
for a copy of the 81-page report.
EPA: ETHANOL MIXED WITH GASOLINE REGULATED UNDER UST PROGRAM
In response to questions from members of the House Energy and Commerce
Subcommittee on Environment and Hazardous Materials, George Gray, EPA
assistant administrator for research and development, said that
an underground storage tank containing an ethanol-gasoline blend is fully
subject to UST regulatory requirements. Gray said, "Pure ethanol is not a
regulated substance; however, gasoline is a petroleum product, and petroleum
is a regulated substance. Therefore, an [underground storage tank] storing E85
is a regulated UST, because it stores an accumulation of regulated
substances."
APPOINTMENTS AND PROMOTIONS
The International Code Council has named the following PEI-associated people to its
2008 UST/AST Exam Development Committee: Roy Creley,
Lakes Region Environmental; Richard J. Pochman, Mascott Equipment Company;
George Watkins; and Bob Young, Petroleum Equipment Institute. Each
will serve a three-year term.
Mark VII Equipment Inc., the U.S. subsidiary of WashTec AG of Germany,
announced earlier this month that Craig Campbell has been named director of
business development for distributor markets at WashTec. Campbell will
relocate to Augsburg, Germany, and be responsible for business development
in indirect markets in Western Europe, the Middle East, Africa, Latin
America, Australia and New Zealand.
Valero Energy Corp., San Antonio, Texas, announced that Greg King has
resigned as president of Valero Energy and will leave the company December
31, 2007.
Guardian Fueling Technologies has named Mike Durkin manager of
the company's Fort Myers, Florida, branch operation. Durkin formerly worked for
Baird Petroleum, Gilbarco/Veeder-Root and Red Jacket (Marley Pump).
Butler Capital Corporation, Hunt Valley, Maryland, has promoted
Shirah Kellman to the position of business development manager. In her new
position, Kellman assumes oversight of the company's Car Care Finance and
Convenience & Gas Finance Divisions.
COMMENTS ON ETHANOL AND ONBOARD CANISTERS SOLICITED
We have been asked by two members if there is any data
available on the effect of ethanol blends (E10 and E85) on
onboard vapor recovery canisters. We are not aware of any. Members with
information on the subject can email Bob Renkes at
rrenkes@pei.org.
STAGE II VAPOR RECOVERY CONSIDERED FOR PIMA COUNTY, ARIZONA
The Arizona Daily Star reports that the Pima County Board of
Supervisors is considering requiring Stage II vapor recovery in the
unincorporated areas in the county. Stage I vapor recovery has been required
in the county since 1994. On December 18, the supervisors unanimously voted
to convene a special committee to study the Stage II issue and report back
in three months, and to offer a recommendation in six months.
BRIEFLY NOTED
Deadline for registration and housing for the PEI Young Executives 2008
Winter Conference is January 7. The conference will be held at the
Westin Cancun from February 7 to 9. Steven S. Little will
present the program on The Seven Irrefutable Rules of Small Business Growth.
Go to www.pei.org/ye for more
information.
UPP Systems of PetroTechnik Inc., with a U.S. sales office in Cresskill,
New Jersey, has named Mike Long & Associates, Inc., Mooresville, North Carolina,
as its Manufacturer's Representative of the Year.
U.S. PETROLEUM MARKETING BRIEFS
Colbea Enterprises LLC has acquired Motiva's interest in 34
Shell-branded sites in Rhode Island. Colbea Enterprises was a joint venture
with equal ownership by Motiva and East Side Enterprises LLC.
CEFCO Convenience Stores, Temple, Texas, has purchased Deweese
Enterprises, Inc., Meridian, Mississippi, and its chain of 45 Super Stop!
convenience stores. CEFCO, which had 78 stores prior to the acquisition, is
the retail arm of Fikes Wholesale, Inc.
Motiva Enterprises has sold 10 of its Shell-branded retail locations
in the Houston area to The Lewis Group for an undisclosed price.
Lewis
has operated Shell stations throughout the Houston area for more than four
years.
INTERNATIONAL PETROLEUM
MARKETING NOTES
Brazil's Petrobras and
South Korea's Samsung Group have signed a memorandum of understanding
calling for joint technical, financial and trade studies for future
production of sugar cane-based fuel (ethanol) for the South Korean market.
Repsol YPF SA plans to open 10 to 15 stations a year in
Portugal over the next 5 years.--PetroPlaza, December 11, 2007.
DEATHS
Leo J. LeBlanc, former owner of Enterprise Brass Works (EBW) and
Advanced Polymer Technology Inc., died December 18. He was 81. He bought EBW
in 1978 and founded APT in 1991. He sold both companies to Franklin Electric
in 2000. Leo served on the PEI Board of Directors from 1990 to 1992. He was
named Michigan Small Business Person of the Year and national
runner-up Small Business Person in 1991. He was preceded in death by his wife, Olga. He is
survived by a son, Pat, and two daughters, Cathy Goeckel and Lisa Foster.
Leo was known for his tenacity, bluntness and fierce competitive spirit.
Everyone who knew him has at least one "Leo LeBlanc" story to relate– some,
perhaps, not particularly flattering, but classic Leo nonetheless. I suspect he would
want to be remembered in no other way.
ADMITTED TO PEI
- Mike Villa, United Fuel & Energy Corp., Midland, TX (O&E)
- Chandramouli Thandavan, Emarat-OE, Dubai, United Arab Emirates
(O&E)
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