Dear PEI Member:
We'd characterize business as "good" for about one-third of our members, not
so good for another third, and about average for the last third. If that
sounds like it's all over the map, well, it is.Let's start with the happy
campers. For them, PCI is a godsend for their service departments, the sale
of PCI-related equipment, and dispenser upgrades. A diversified customer
base helps, as does a sustained period of improved gasoline margins. A few
members are actually enjoying their best year in the past decade, which is
even more noteworthy when you consider the banner years many experienced
from 2007 to 2009. These companies also seem to be located in economically
strong regions of the country.
Those experiencing a below-average year seem to be
equipment distributors and installation contractors in
relatively depressed areas where convenience stores are overbuilt and credit
is still tight. Layoffs and cutbacks are a big part of their business strategy.
The group in the middle isn't exactly singing the blues because
they are comparing 2010 with several very good years. They tell us that they
may not achieve the same sales and profits as 2008 and 2009 but will still
end up in the black.
Things will begin to change as we enter the second half of 2010. PCI will
begin to lose some steam and there isn't a huge national program standing
in the wings to take its place until EPA makes its move to allow E12 or E15
sometime later this summer. Then, frankly, we aren't sure what to expect.
STAGE II VAPOR RECOVERY UPDATE
The ORVR (onboard refueling vapor recovery) "widespread use" definition,
necessary before the country can move away from Stage II vapor recovery, has
been "elevated as a priority" at EPA, according to Janet McCabe, EPA Principal
Deputy Assistant Administrator for the Office of Air and Radiation, as
reported in PMAA's Weekly Review (WR-10-20). EPA plans to issue a proposed
rule on the subject in August or September 2010. PMAA reports "the proposed
rule will undergo a public comment period and will proceed through the
normal rulemaking process." That means EPA will not define "widespread
use" until 2011, at the earliest.
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Business Conditions
Stage II Vapor Recovery
NFPA & Mid-Level Ethanol Blends
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NFPA TIA APPROVED BY TECHNICAL
COMMITTEE; MOVES TO NEXT STEP
The proposed Tentative Interim Amendment (TIA) to the National Fire
Protection Association's Code for Motor Fuel Dispensing Facilities and
Repair Garages (NFPA 30A) that would provide the authority having
jurisdiction with the ability to approve dispensing devices currently listed
for E10 for use with mid-level alcohol
blended motor fuels is moving
forward. On June 7, the proposed TIA achieved the necessary 75 percent
majority vote needed from the Technical Committee on Automotive Service
Stations to proceed to the next step in the code change process. The public
comment closing period on the TIA is June 18, 2010. Public comments will be circulated
to the technical committee on June 21, 2010.
TENNESSEE CHANGES UST LAWS
Gov. Phil Bredesen signed legislation into law last month that
authorizes the state's petroleum underground storage tank cleanup fund to be
used for investigating, identifying, cleaning up, monitoring, and
maintaining petroleum sites and locations from which underground storage
tank systems have been removed. Previous to the change, the Tennessee
Petroleum Underground Storage Tank Act limited the use of the fund for
activities at a site or area where the tank was located. The law also
changes the definition of those financially responsible for investigation,
cleanup, monitoring, and other costs related to petroleum tank releases as
individuals or entities whose intentional or negligent actions directly
caused such releases. Prior to the change, "responsible parties" were
limited to owners and operators of the site or leaking tank.
PEI CONVENTION HOUSING
The Hyatt Regency is
PEI’s headquarters hotel for the 2010 PEI Convention at the NACS Show
(October 5-8 at the Georgia World Congress Center) in
Atlanta. Additional room blocks for PEI attendees are also available at the
Westin. Rooms are filling up fast, so
register for the Convention and
book your hotel as soon as possible. All housing is made through
Connections Housing and not through the individual hotels.
OIL COMPANY NEWS
ExxonMobil will sell its retail fuel business in Australia
to 7-Eleven Stores Pty Ltd. The sale will cover 295 service stations,
most in metropolitan areas of eastern Australia.
Marathon Oil has entered into a nonbinding letter of intent to sell
most of its downstream assets in Minnesota to a group of private investors
for about $800 million. The assets include 166 SuperAmerica convenience
stores.
Sunoco Inc. CEO Lynn Elsenhans said at the Sanford C. Bernstein
Strategic Decisions Conference that although she is not against blending
more than 10 percent of ethanol into gasoline, the issue of whether such
blending would void vehicle warranties is a major concern.
MEMBERSHIP APPLICATIONS
Colorado software solution provider. Infor Global Solutions, 5555 Tech
Center Drive, Suite 300, Colorado Springs, Colorado 80919, has applied for
affiliate division membership. Thad Zylka is vice president, sales for the
firm, which was established in 1982. The company provides software solutions
to the petroleum distribution industry. Sponsored for PEI membership by
Gregg Miller, NWPump, Portland, OR.
www.infor.com
Maine software provider. The Scan Group, Inc., 10 Forest Falls Drive,
8-B, Yarmouth, Maine 04096, has applied for affiliate division membership.
Elizabeth Adams is president of the firm, which was established in 2001. The
Scan Group has a proprietary back-office software package exclusively
designed for convenience stores. Sponsored for PEI membership by Jerry
Tigges, OilEqpWI, Madison, WI.
www.scangroup.com
Fuel dispenser manufacturer. Hefei Zhongsheng Fueling Equipment
Manufacture Co., Ltd., Luyang Industry Zone, Heifei City, Anhui Province,
China 230041, has applied for affiliate division membership. Paul Pu is
foreign trade manager for the company, which was established in 2005. The
company manufactures fuel dispensers and components. Sponsored for PEI
membership by Betty Bao, AileOilEqp, Shanghai, China.
California construction services firm. Cedar Landmark Development,
14748 Pipeline Avenue, Suite H, Chino Hills, California 91709, has applied
for service and construction division membership. Rabin Sater is president
of the firm, which was established in 2008. The company provides commercial
construction services and specializes in the retail and fueling industry.
Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA.
www.cedarlandmark.com
Ontario installation and maintenance firm. Albert's Gas Station
Maintenance Inc., 108 Elmwood Avenue, Cambridge, Ontario N1R 4Y6, has
applied for service and construction division membership. Albert Budding is
president of the firm, which was established in 1997. The company maintains
and installs equipment at service stations. Sponsored for PEI membership by
Chris Vassos, WalecoInc, Mississauga, Ontario.
www.alspumps.com
ADMITTED TO PEI
- American Compliance Technologies, Bartow, FL (S&C)
- Kinetik Industrial Group LLC, Miami, FL (S&C)
- Kenneth Retif, Retif Oil & Fuel, New Orleans, LA (O&E)
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