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Dear PEI Member:

There has been a lot in the news in the last 30 days about increasing the ethanol blend in gasoline. Here is a summary:

• "Ford endorses efforts to increase base level blends up to E15 and collaborate with key stakeholders to overcome challenges with introducing these higher levels of ethanol."—Susan Cischke, Ford's vice president for sustainability, environment and safety engineering, in a letter to Jeff Broin, CEO of POET, the nation's largest ethanol producer.
• Growth Energy, which represents ethanol producers, petitioned EPA on March 6 to lift its current cap on E10, saying there is data to warrant an immediate increase to E12 or E13 while studying the merits and data relative to lifting the cap to allow E15. The group says EPA should designate E12 or E13 as "substantially similar" to gasoline—an abbreviated process that would be less onerous than a formal waiver request to increase the ethanol blend.
• "American motorists and consumers cannot afford to have the EPA's decision on whether to permit the use of ethanol blends higher than 10 percent in motor vehicle and smaller engines be guided by any factor other than sound and unbiased science," a coalition of health, environmental, food production and manufacturing groups said in a statement released March 6.
• The government should raise the current level of ethanol in the nation's gasoline supply from 10 percent to 12 or 13 percent soon, then later to 15 or 20 percent.—Tom Vilsack, U.S. Secretary of Agriculture, to attendees at the National Farmers Union convention March 9, according to Congress Daily.
• "The only issue (with E15) is what auto companies say about the damage it can do to engines."—Energy Secretary Steven Chu, Washington Post, March 6, 2009.
• "An immediate move to E12 or E13 is both prudent and scientifically supportable. Such action should be viewed as substantially similar to the E10 blend sold across the country today."—Bob Dinneen, president of the Renewable Fuels Association, in a March 19 letter to President Obama.
• "Before the use of mid-level ethanol blends is permitted, we must ensure that these blends are safe for consumers, do not harm gasoline-powered engines, and do not lead to increases in emissions from these engines that will harm the environment."—Charles Drevna, president of the National Petrochemical and Refiners Association, to a subcommittee of the Senate Environmental and Public Works panel on April 1.
• A decision on the government raising the current level of ethanol in the nation's gasoline supply will not be made for quite some time because the science is not yet complete.—Lisa Jackson, EPA Administrator.

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Note that nothing much is being said about the equipment that will be used to store, meter and dispense ethanol blends over 10 percent. We know that much of that legacy equipment is not listed to handle gasoline blended with over 10 percent ethanol. EPA is the only agency with the authority to lift the cap, and we hope they will consider the petroleum handling equipment implications in its review of Growth Energy's petition.

Higher ethanol blends was a hot topic at the 21st Annual National Tanks Conference last week in Sacramento. The eventuality of higher blends had most attendees concerned, since most of the people we talked with seemed to think that the Obama administration is leaning toward lifting the ethanol ceiling to E12 or E13, while EPA continues researching the effect on higher concentrations.

SCHWARZENEGGER CALLS FOR DELAY IN EVR ENFORCEMENT
California Governor Arnold Schwarzenegger has called for a delay in the enforcement of the state's enhanced vapor recovery (EVR) program, saying it creates a hardship for station owners impacted from the sagging economy. Schwarzenegger urged the California Air Resources Board (CARB) to delay enforcement 6 to 12 months and asked the legislature to come to the rescue. A bill was quickly introduced that would impose a one-year moratorium. CARB chairperson Mary Nichols has asked her staff to urge the state's local air control districts to "exercise their enforcement authority with discretion and restraint."

PEI members in California tell us that over 50 percent of the dispensing facilities are in compliance with the rule. Those petroleum marketers already in compliance are encouraging anyone who will listen to enforce the law. PEI members in California expect EVR work to continue through 2009.

MICHIGAN TO OFFER TAX CREDITS FOR ETHANOL, BIODIESEL DISPENSERS
Service station owners who install or convert pumps to provide E85 or biodiesel fuels are eligible for new tax credits, the Michigan Department of Labor and Economic Growth said March 18. The credits—30 percent of the eligible costs of an installed or converted fuel delivery system, to a maximum of $20,000 per applicant—are available for work completed between January 1, 2009, and December 31, 2012.

APPOINTMENTS AND PROMOTIONS
Tanknology Inc., Austin, Texas, has placed five executives into key regional and sales management positions. Kevin Callaway has been named regional manager of the company's Gulf Coast region (Texas, Oklahoma, Arkansas and Louisiana), which is based in Austin. Eddie Campbell has been promoted to regional manager for the company's southeast division (Georgia, Alabama, Mississippi, North Carolina, South Carolina and Tennessee). Ron Raleigh has joined Tanknology as eastern division sales manager; Blaine Garwood is the company's new northern division sales manager, and Kevin O'Hearn has been named Gulf Coast sales manager.
Eastern States Associates, Inc. (ESA), headquartered in Palmer, Massachusetts, has appointed Pat Hough to the ESA sales team. A 30-year petroleum industry veteran, he will focus his efforts on the mid-Atlantic states. 
The acting director of EPA's Office of Underground Storage Tanks (OUST) is Carolyn Hoskinson. She has most recently served as OUST's Deputy Office Director. Cliff Rothenstein, OUST's former director, has taken a position with the Department of Transportation's Federal Highway Administration.
Emco Wheaton Retail Corporation, Wilson, North Carolina, has appointed P&G Marketing and Associates, Clinton, Illinois, to represent the company in Illinois, Kansas and Missouri.
Inclusion Solutions, Chicago, Illinois, has named David Lopez as the national sales director for its FuelCall® division.

ALLIANCES/MERGERS/EXPANSIONS
OPW Fueling Components, Cincinnati, Ohio, has reached an exclusive private-label distribution agreement with ELAFLEX Tankstellentechnik GmbH & Co., Hamburg, Germany. The agreement allows OPW Fueling Components to distribute ELAFLEX's diesel exhaust fluid (DEF) nozzles in the United States and Canadian markets.
Tanknology Inc., Austin, Texas, has added UETL, Jeddah, Saudi Arabia, to its network of international licensees.
Containment Solutions,  Inc., Conroe, Texas, has spent $750,000 to add capacity to its Mount Union, Pennsylvania, facility.
Suncor Energy Inc. and Petro-Canada announced the proposed merger of the two companies, with the firms operating corporately and trading under the Suncor name. Both companies have strong retail brands in Canada, with Suncor's 427 locations and Petro-Canada's 1,323. Suncor also operates a refining and marketing business in Ontario, with retail distribution under the Sunoco name.

ALTERNATIVE FUELS
Brazil's state-controlled Petrobras has started producing and selling E3 (3 percent ethanol) at stations across Japan. 
AT&T will buy and convert 8,000 Ford vans and trucks to natural gas over the next five years. AT&T currently has 88,000 vehicles in its fleet.

DEATHS
William Richard (Bill) Giles, former president of Florida Equipment Sales, Jacksonville, Florida, died February 24 in Jacksonville. He was 86. A World War II veteran, Bill lived in Oxford and Atlanta, Georgia, before moving to Jacksonville in 1960. He worked for Florida Equipment Sales for 54 years and served two terms on the PEI Board of Directors. He is survived by his wife of 62 years, Margaret; a daughter, Deborah; a son, Rick; and 4 grandchildren.      

MEMBERSHIP APPLICATIONS
Louisiana distributor. Pump Tech of Louisiana, P. O. Box 316, Crowley, Louisiana 70527, has applied for distributor division membership. John Bryant Gielen is the primary contact for the company, which was established in 2006. The company sells and services service station equipment including tanks and dispensers and represents AmFab, Champion, EBW, EmcoWheatn, Flex-Ing, Freedom, ModernWeld, VeederR and VeriFone. Sponsored for PEI membership by Orien Denham, Petron, Alexandria, LA.
Carwash rinse/reclamation systems manufacturer. New Wave Industries, Inc., 3315 Orange Grove Avenue, North Highlands, California 95660, has applied for manufacturer division membership in PEI. Danielle Heyward is marketing coordinator for the firm, which was established in 1983. The company manufactures rinse systems and water reclaim systems which are sold through distributors. Sponsored for PEI membership by Charlie Tew, SoPmpTnkNC, Charlotte, NC.
Alabama construction and remodeling firm. Bryant and Company, Inc., P. O. Box 320937, Birmingham, Alabama 35232, has applied for service and construction division membership. Jeff Bryant is secretary/treasurer for the firm, which was established in 1955. The company builds, remodels and demolishes service stations throughout the Southeast. Sponsored for PEI membership by Lucas Ford, LucasFord, St. Petersburg, FL.
Arizona installation and service company. Trinium LLC, P. O. Box 11805, Chandler, Arizona 85248, has applied for service and construction division membership. Bryan Weber is the primary contact for the company, which was established in 2007. The company provides installation, retrofit and decommissioning construction. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.
Costa Rica maintenance company. ACM-Petrotica, Rorhmoser, 50 oeste, 125 noroeste, Mall Plaza Mayor, San Jose, Costa Rica 1691-3000, has applied for service and construction division membership. Luis Vargas is operations manager for the firm, which was established in 2002. The company designs and builds service stations and provides maintenance and repair of petroleum equipment. Sponsored for PEI membership by Matt Cothren, UnivStruc, Plant City, FL.
North Carolina service firm. Convenience Store Service, P. O. Box 582, Burlington, North Carolina 27216, has applied for service and construction division membership. Ronald Smith is owner of the firm, which was established in 2006. The company services dispensers, carwash equipment, lights, signage, vacuums and tire inflators. Sponsored for PEI membership by Richard H. Long, RDMElec, Nebo, NC.
Saskatchewan installation and service company. Elgon Petroleum Inc., 201 21st Street East, Suite 1000, Saskatoon, Saskatchewan S7K 0B8, has applied for service and construction division membership. Depesh Parmar is vice president of the company, which was established in 2007. The company installs, services, removes and disposes of underground and aboveground storage tanks, and services bulk plants, service stations and airport fueling systems. Sponsored for PEI membership by Ven Cote, ZCL, Edmonton, Alberta.
Wisconsin installation and service provider. G an D Petroleum, LLC, 9837 West Welsh Road, Janesville, Wisconsin 53548, has applied for service and construction division membership. Gary Moser is CEO of the firm, which was established in 2002. The company designs, builds, installs and provides service to the petroleum industry. Sponsored for PEI membership by Tim Esterling, WestMorInd, Morris, MN.
Loss prevention solutions provider. VRX Company, Inc., P. O. Box 4663, Maryville, Tennessee 37802, has applied for affiliate division membership. Forrest Erickson is president of the company, which was established in 2004. The company integrates electronic scales, cash registers or point-of-sale to closed circuit TV systems to help pinpoint employee theft. Sponsored for PEI membership by W. Douglas Bruce, RBMCo, Knoxville, TN.
Indiana training firm. Practical American Safety Solutions, LLC, 720 North Dr. Martin Luther King Jr. Boulevard, Muncie, Indiana 47307, has applied for membership in the affiliate division. Raymond Rees is vice president of operations and information for the company, which was established in 2003. The company is currently designing and implementing a system to train operators of underground storage tanks. Sponsored for PEI membership by Daniel J. Esposito, OilEqpSup, Indianapolis, IN.
North Carolina environmental consulting firm. M D Shaw & Associates, P.C., 8501 Foxtail Lane, Huntersville, North Carolina 28078, has applied for affiliate division membership. Michael Shaw is president of the firm, which was established in 2007. The company provides environmental consulting services to underground storage tank owners and operators. Sponsored for PEI membership by Benjamin Thomas, ThomasAscs, Clinton, WA.

ADMITTED TO PEI

• MPI Consultants LLC, Ulaanbaatar, Mongolia (aff)
• Alaska Fuel Systems Inc., Anchorage, AK (S&C)
• AVA Environmental Inc., Compton, CA (S&C)
• Commercial Fuel Systems, Inc., Mount Airy, MD (S&C)
• Gillhespy Inc., Grand Rapids, MI (S&C)
• Kaiser Commercial Petroleum, Linden, CA (S&C)
• MDM Services, Inc., Lakeland, FL (S&C)
• Moonlight Petroleum Services, Tampa, FL (S&C)
• Petro Flow, Inc., Southport, FL (S&C)
• TriStar Petroleum Equipment Co., Oklahoma City, OK (S&C)
• Lynd Fueling Systems, Inc., Plano, TX (S&C)
• C-First, Inc., Roanoke, VA (S&C)

©2009
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.