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It is important to note that EPA's waiver decision allows but does not
require the use of E15 in MY2007 and newer cars, light-duty trucks, and
SUVs. Moreover, a multitude of other decisions have to be made at both the
federal and state levels before E15 can actually be distributed to
consumers. Marilyn Herman, president of Herman & Associates, estimates that
37 states have more than 90 laws and/or regulations on the books that currently
restrict E15 blending.
This E15 waiver decision is by no means an assurance that
a widespread E15 market will develop quickly―in
fact, it
probably won't because fuel retailers see too many costs and liabilities
associated with selling the fuel. We believe early adopters of E15 are likely to be
small marketers in ethanol-producing areas of the country. Here are some of
the big steps that must occur before E15 can be commercialized:
- The regulatory program proposed by EPA to help mitigate the potential
for misfueling engines, vehicles and equipment with blends greater than
10 percent ethanol must be published in the Federal Register. That
should happen this month.
- A 60-day period for comments to the proposed misfueling rule will
begin on the day the proposal is published in the Federal
Register.
- A public hearing on the proposed misfueling rule will be held on
November 16, 2010, at the Millennium Knickerbocker Hotel in Chicago,
Illinois. The hearing will begin at 10 a.m. and continue until everyone has had a
chance to speak. PEI will attend that meeting.
- We expect EPA to make a decision to permit E15 to be used in
MY2001-2006 light-duty motor vehicles in December 2010.
- Depending on the nature and number of comments received, EPA is
expected to issue a final rule on its pump labeling requirements in 2011.
Although the proposed label contains only 38 words, we expect it will take
EPA at least until the summer of 2011 to finalize the language of the
label and issue the rule. In the meantime, work will continue on the numerous
legislative, regulatory and industry hurdles to the implementation of E15.
EQUIPMENT COMPANIES ACQUIRED
Dresser, Inc., headquartered in Addison, Texas, announced that an
agreement has been reached for Dresser to be acquired by GE for $3 billion.
The deal includes all Dresser businesses. Dresser is the parent company of
PEI member Dresser Wayne, located in Austin, Texas.
Husky Corporation, Pacific, Missouri, has acquired the assets of BJ
Enterprises of Waynesboro, Virginia. The operations of BJ
Enterprises, a manufacturer of tank gauges, tank monitors, and filter
crushers with a focus on the quick lube industry, have been completely relocated and integrated into Husky's operation in Pacific.
PETROLEUM MARKETING SITES SOLD
Casey's General Stores Inc., Ankeny, Iowa, has entered into an
agreement with Harper Oil Co. Inc., Springfield, Illinois, to
purchase up to 19 of its 26 Harper On The Way convenience stores in
Illinois.
BP West Coast Products LLC, La Palma, California, is selling 28
ARCO-branded retail sites in California (Sacramento, San Francisco, Los
Angeles and San Diego areas), Oregon (Eugene and Portland), and Washington
(Seattle).
Sam's Mart, Matthews, North Carolina, has closed on the purchase of
20 former ExxonMobil On the Run sites in the Charlotte, North Carolina,
area.
PEI MEMBER NOTES
White-Tucker Company, Houston, Texas, will celebrate its 100th
anniversary with an open house on October 28.
S. Bravo Systems, Inc., Commerce, California, has appointed JV &
Associates as its representative in Florida.
WORTH NOTING
The U.S. EPA has extended the compliance date for revised Spill
Prevention Control and Countermeasure (SPCC) plans for petroleum bulk plants to
November 10, 2011. The deadline extension does not remove the regulatory
requirement for owners and operators of facilities in operation before
August 16, 2002, to maintain and continue implementing an SPCC Plan in
accordance with the SPCC regulations then in effect.
Diesel cars accounted for just 40 percent of new car sales in Europe last
year, according to J.D. Power Automotive Forecasting. That is down from a
peak of 54 percent in 2007. Diesel fuel's price advantage over gasoline is
eroding, as wholesale diesel prices have gone above gasoline for the first time this year.
Even at the pump,
where diesel is taxed less than gasoline, diesel is currently only
10 percent cheaper than gasoline, compared to 15 percent this time last
year.―Oil Daily, September 29, 2010.
Mayor Annise Parker of Houston, Texas, plans to shut down two-thirds of
the city's 99 fueling stations as a cost-cutting measure intended to reduce
the city's potential liability for leaking fuel storage systems.
ELECTRIC CARS
Over the next couple of years, tens of thousands of electric vehicles (EVs) will be
sold throughout the world. These new battery-powered vehicles have much
longer ranges than their predecessors―up to 250 miles in
the case of the Tesla Roadster, but mostly around 100 miles―and are likely to be
the first to sell in large numbers. J.D. Power Automotive Forecasting
predicts that by 2020, annual sales of electric vehicles will reach 2
million. Banking Giant HSBC is even more optimistic and puts the figure at 9
million vehicles. That's short of the 61 million petroleum-powered vehicles sold
around the world in 2009 but still a huge leap from the 5,000 or so EVs sold
last year. But serious questions still remain about the infrastructure―or
rather, the lack of infrastructure―to charge them. The problem is that all
the proposed recharging models, such as home/work plug ins, battery swap
stores, and electric/gasoline hybrid vehicles, have flaws.―Power Struggles, Charging Tomorrow's Cars,
Gerard Wynn and Kwok W. Wan, Reuters, September 10, 2010.
DEATHS
Raymond D. Thompson, founder of Ray's Petroleum Equipment, Inc.,
headquartered in Wichita, Kansas, passed away September 15 after a lengthy
illness. He was 77. Ray started his company in 1976 and sold
his locations to Double Check Company in two separate transactions (2002 and 2006).
Survivors include his wife of nearly 54 years, Sue; a son, David; and
two daughters, Debra Knight and Kris McElhiney.
Vivian Bartt, manager of membership and communications for STI/SPFA,
died September 28 in Barrington, Illinois. She also was editor of the
group's Tank Talk publication. Survivors include her husband, Edward,
and daughter, Nicole Maffia.
Colonel John F. Rhemann, Sr., father of Forrest Rhemann (president of
Petroleum Equipment Co., Inc., Richland, Mississippi) died October 5. He
served as a Marine in the Pacific in World War II, in the U.S. Air Force in
Korea, and flew many missions during four deployments in Vietnam. During his
military career, he received two Legions of Merit, two Distinguished Flying
Crosses, a Bronze Star, and 14 Air Medals.
Robert (Bob) H. Arn, founder and CEO of Petroleum Containment, Inc.,
Jacksonville, Florida, passed away October 7 at the age of 78. He is
survived by his wife, Janet; four children; 21 grandchildren and 29
great-grandchildren.
MEMBERSHIP APPLICATIONS
Idaho industrial coating firm. Northwest RCI, Inc., 1815 American Legion
Boulevard, Mountain Home, Idaho 83647, has applied for service and
construction division membership. Jessica Roberts is a partner with the
firm, which was established in 2005. Northwest RCI specializes in extreme
service area applications and applies both tank linings and blast mitigation
coatings. Sponsored for PEI membership by Steven R. Leonard, LeonardEqp,
Twin Falls, ID. www.northwestrci.com
Missouri installation and service company. All-American Pride, LLC,
P. O. Box 872, Oak Grove, Missouri 64075, has applied for service and
construction division membership. Ida M. Barnhill is owner of the firm,
which was established in 2008. All-American installs and removes storage
tanks; installs and repairs lube equipment, leak detectors, hoses and
fittings; and cleans tanks. Sponsored for PEI membership by Ken Wilcox,
WilcoxAscs, Grain Valley, MO.
Wisconsin import/export firm. HMI USA, Inc., 6100 West Donges Bay
Road, Mequon, Wisconsin 53092, has applied for affiliate division
membership. Steve Plier is vice president of global sourcing for the firm,
which was established in 1985. HMI USA is customer-focused to control all
aspects of the sourcing process―from factory location, tooling and product
engineering to quality inspection, logistics, warehousing and distribution.
Sponsored for PEI membership by Glenn K. Walker, VST, Springboro, OH.
www.hmigroup.com
ADMITTED TO PEI
- Wiley Equipment Company Inc., El Segundo, CA (dis)
- E.J. Ward, Inc., San Antonio, TX (aff)
- SISTEMAS CONICOM S.A.S., Bogota, Colombia (aff)
- Dosmatic - USA, Carrollton, TX (mfr)
- FuelWatch, Atlanta, GA (aff)
- Fitsafe Technologies, Glen Waverley, Victoria, Australia (aff)
- The Same Electric Company, Aurora, CO (S&C)
- US Tanx, LLC, Maryville, TN (S&C)
- ABA-CON Aviation Services, Titusville, FL (S&C)
- Ted Slack Environmental Services Inc., Kenilworth, NJ (S&C)
- First Fueling Systems, Inc., Albuquerque, NM (S&C)
- Arun Kundra, Capital City Travel Center, Monticello, FL (O&E)
- Juan Madrid, Grupo Estactiones, Medelin, Colombia (O&E)
- Maha Rifai, ConocoPhillips, Harleysville, PA (O&E)
- Johnny Thompson, BP, Stockbridge, GA (O&E)
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