Dear PEI Member:
PEI, together with representatives from eleven other trade associations and
various government agencies, met last week in Washington, D.C. to review
results of a survey asking about problems
associated with the storage, transportation and dispensing of ultra low
sulfur diesel (ULSD) fuel.Nearly 1,200 people with first-hand ULSD experience responded to the survey. Collectively, 42 percent of the respondents indicated that they
are receiving more reports within their organization of equipment
operational problems, premature failures, accelerated corrosion, rust,
gasket or seal problems, and/or equipment warranty issues related to ULSD
within the last several years than they did before ULSD was introduced.
Respondents included
North American tank owners, fuel suppliers, service providers, equipment
manufacturers, tank/equipment regulators, and cargo tank motor vehicle
owners.
Among the various groups participating in the survey, the percentages
reporting greater issues with ULSD were as follows:
- Equipment service providers (66%)
- Equipment manufacturers (53%)
- Tank owners (40%)
- Fuel suppliers who may also own tanks (39%)
- Tank or equipment inspectors/regulators (37%)
- Cargo tank motor vehicle owners (20%)
Sixty-nine percent of the total number of respondents either identified
themselves as tank owners or fuel suppliers who may also own tanks.
The problems were widespread and not confined to any
particular area of North America. Respondents had reported first-hand knowledge of
nearly 5,000 locations with problems, although a portion of that
number were probably counted more than once. Problems encountered most often
include:
- Filters clogging/requiring more frequent replacement
- Seal/gasket/O-ring deterioration
- STP replacement/column pipe wear/motor problems
- Tanks rusting/leaking (includes tanks on vehicles)
- Meter failure
- Line leak detectors damaged or broken
- Automatic nozzle shutoff failure/shorter lifespan
- Tank probes malfunctioning
- Check valves not seating
- Shear valves not sealing/failing tests
- Swivels failing/shorter lifespan
- Dispenser leaks/failure/premature replacement
- Solenoid valves clogged/failing
- Corrosion on the riser pipe
- Pipe failure
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ULSD Survey Results
Stage II Vapor Recovery
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The consensus of the group that gathered in Washington last week was that
the survey results were inconclusive as to the potential causes of these
issues. The Clean Diesel Fuel Alliance (CDFA) will now lead the effort to
determine why these problems are occurring. As a first step, the CDFA will
develop guidance on monitoring and maintenance of fuel distribution and
dispensing equipment. The CDFA also will explore the best ways to gather
additional information so all interested parties can get a better
understanding of the nature of the issue. PEI will continue to remain
engaged in the process to ensure our members' interests are represented. Organizations whose members participated in the survey include the
Petroleum Equipment Institute, Steel Tank Institute, Petroleum
Marketers Association of America, NATSO, NACS, SIGMA, American Petroleum Institute, National Biodiesel
Board, National Association of Fleet Administrators, American Trucking
Association, New England Fuel Institute, National Association of Corrosion
Engineers, as well as state and local underground storage tank offices, and
others. The survey was conducted during a four-week period in March/April
2010.
EPA ASKED TO DECLARE "WIDESPREAD USE" OF ONBOARD VAPOR RECOVERY
On January 19, 2010, the U. S. Environmental Protection Agency (EPA)
proposed regulations (Proposed Rule Regarding the National Ambient Air
Quality Standards for Ozone or "Ozone NAAQS") to tighten the standards
controlling ozone emissions into the atmosphere. EPA proposed setting the
primary standard in a range between 0.060 part per million (ppm) and 0.070
ppm. In 2008, EPA had set the primary standard at 0.075 ppm, a level higher
than was recommended by EPA's Clean Air Scientific Advisory Committee. EPA
chose to revise the 2008 standard after several states and environmental
groups filed lawsuits challenging the standards as too weak to protect human
health. Lawsuits challenging the 2008 standard are being held in abeyance
while EPA reconsiders the ozone standards.
This proposed rulemaking is
important to PEI members because new areas of the country could be
designated "severe" or "extreme" ozone non-attainment areas. Language in the
Clean Air Act states that an area's being designated as in either severe or
extreme non-attainment requires the appropriate authority to require the
installation of Stage II vapor recovery equipment at motor fuel outlets
unless the Administrator of EPA has determined that onboard vapor recovery
equipment is in "widespread use." EPA, to date, has not defined the term and
therefore is not in a position to declare that onboard vapor recovery is in
widespread use.
The prospect that Stage II vapor recovery might be required in new
non-attainment areas close to when EPA projects achievement of widespread
use (somewhere around 2015) has caused the National Association of
Convenience Stores (NACS) and the Society of Independent Gasoline Marketers
(SIGMA) to provide official written comments requesting EPA "make its
declaration of widespread use as part of any final rulemaking in the Ozone
NAAQS proceeding." The groups make the point that installing Stage II
equipment in new areas at this time would be "expensive, non-productive and
completely duplicative of the on-board recovery equipment."
INDUSTRY NOTES
E. O. Habhegger Company's South Jersey branch office moved April 1 to a
larger facility to better serve its customers. The new address is 334 North
Washington Street, Unit 20B, Hammonton, New Jersey 08037. The phone and fax
numbers remain the same.
"Standard for Automotive Lifts - Safety Requirements for Installation and
Service" (ANSI/ALI ALIS: 2009) has been adopted as an American National
Standard and becomes effective April 20, 2010. Visit
www.autolift.org for more information
or to order the publication.
Royal Dutch Shell plc plans to exit 35 percent of the company's
current retail markets as its downstream operation continues to focus on
profitability. In keeping with that strategy, Shell Oil Products Africa
announced April 1 that it is reviewing ownership options for its downstream
businesses in 21 countries in Africa. Shell also announced March 28 that it
has signed a sale and purchase agreement to sell its downstream business,
including a network of more than 220 retail stations, to a consortium.
The Georgia Tank & Environmental Contractors Association will hold
its annual convention and spring seminar May 13-15 at Unicoi State Park in
Helen, Georgia. Visit www.gteca.com or
call 770-426-1133 for more information.
APRIL 13 WEBINAR: "SEVEN STEPS TO SEARCH ENGINE MARKETING SUCCESS"
PEI is joining other members of the Association Education Alliance to
present an enlightening webinar that will help member companies boost their
Internet marketing. The 90-minute program will demonstrate how you can put
your company in front of more customers by improving and measuring your
Website's search engine rankings. The webinar will be held Tuesday, April
13, at 1 pm EST/noon CST. For more information or to register, visit the PEI
Website at
www.pei.org.
MEMBERSHIP APPLICATIONS
Virginia distributor. Gas Station Supply, P. O. Box 11196, Lynchburg,
Virginia 24506, has applied for distributor division membership. Brian
Travis is vice president of the firm, which was established in 2009. The
company represents ChampLabs, GeneralInd, Goodyear, HuskyCorp, Morrison and
TurnerTank. Sponsored for PEI membership by Brad F. Baker, HuskyCorp,
Pacific, MO. www.gasstationsupply.net
Piping system manufacturer. Tricon Piping Systems, Inc., P. O. Box
361, Canastota, New York 13032, has applied for manufacturer division
membership. Hugh Roszel is president of the firm, which was established in
1999. The company manufactures pre-insulated containment piping for
aboveground and belowground applications which is sold through distributors.
Sponsored for PEI membership by Glen Corkill, SourceIL, Addison, IL.
www.triconpiping.com
California general contractor. Jones Covey Group, Inc., 9595 Lucas
Ranch Road, Suite 100, Rancho Cucamonga, California 91730, has applied for
service and construction division membership. Bob Christie is a principal in
the firm, which was established in 2001. The company is a full-service
general contractor specializing in the petroleum industry. Sponsored for PEI
membership by B. A. Scowley, ShldsHarpr, Oakland, CA.
www.jonescovey.com
Florida installation and service contractor. Petroleum Service &
Renovations Inc., P. O. Box 451262, Sunrise, Florida 33345, has applied for
service and construction division membership. Marty Sweet is president of
the firm, which was established in 2000. The company provides tightness
integrity testing, meter calibration and marina service. Sponsored for PEI
membership by Glen Corkill, SourceIL, Addison, IL.
Pennsylvania tank installation firm. YCP, Inc., 1550 Oak Lane, Dover,
Pennsylvania 17315, has applied for service and construction division
membership. Stephanie Scott is administrative assistant for the firm, which
was established in 2005. The company installs underground and aboveground
storage tanks, piping and monitoring systems. Sponsored for PEI membership
by Brian D. Sheaffer, PerryPtrEq, Ickesburg, PA.
ADMITTED TO PEI
- A & H Contracting Services, Inc., Apache Junction, AZ (dis)
- Equipos & Accesorios S.A., Managua, Nicaragua (dis)
- ISP Fuel Systems, North Brunswick, NJ (mfr)
- Intradin (Shanghai) Machinery Co., Ltd., Shanghai, China (aff)
- Gallium Global Procurement LLC, Houston TX (aff)
- ENCON Technologies, Santa Fe Springs, CA (S&C)
- John R. Morgan, Inc., North Franklin, CT (S&C)
- Tidewater Fuel Distribution Services, Jacksonville, NC (S&C)
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