November 15, 2010 | Vol. 60, No. 22

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Dear PEI Member:

It seems as though something newsworthy happens on the E15 front every week. Here, in chronological order, is an update on the most recent developments of particular interest to PEI members.

October 28. According to INSIDE EPA, Mark Barolo with EPA's Office of Underground Storage Tanks, told the Association of State & Territorial Solid Waste Management Officials (ASTSWMO) that EPA is developing guidance on the compatibility of E15 with legacy underground storage tank equipment. Acknowledging that UL did not start testing equipment for ethanol until the mid-1990s, EPA's guidance will "clarify how owners can demonstrate that their existing tanks meet EPA's compatibility requirements, even if the tanks have not been tested by UL," INSIDE EPA said.

October 28. The Petroleum Marketers Association of America and the Renewable Fuels Association issued a joint memorandum urging petroleum marketers to limit the sale of E15 to flexible fuel vehicles until all regulations on the sale of the fuel are finalized. Noting that some marketers have already begun to market E15 (see October 27 TL), "we encourage each of you to remain vigilant so that you and others do not unintentionally offer E15 to customers driving non-flexible fuel vehicles," the two trade associations said. "E15 will provide customers and marketers another option to maximize their domestic renewable fuel use. But failing to adhere to the legal steps required to do so may give our fuel products and our industries an unnecessary and avoidable black eye."

November 3. Democratic and Republican leaders have said they will make an effort to find common ground over energy issues in the wake of the November 2 election in which the Republicans gained a majority in the U.S. House of Representatives. Senate Minority Leader Mitch McConnell (RKY) said after the election that plug-in hybrid cars are an area of "potential cooperation" with the Obama administration. Although ethanol wasn't specifically mentioned, the 2012 Iowa Caucuses are still slated to be the first major electoral event in the nominating process for President of the United States, and it's difficult to imagine any serious candidates emerging from Iowa without supporting the increased use of ethanol. The Iowa Caucuses are scheduled to take place February 12, 2012.

E15 Update

PEI Sponsors University of Industrial Distribution

GE to Buy 25K Electric Vehicles

PEI Member Notes

PEI and Industry Events »

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November 4. The U.S. EPA misfueling and labeling regulations covering the retail marketing of E15 for vehicles made in 2007 and later were published in the Federal Register, marking the beginning of a 60-day period for comments to the proposed regulations. To date, a dozen comments had been received and entered into the docket.

November 9. Nine farm and fuel trade associations, along with the American Petroleum Institute (API), filed two separate legal challenges with the U.S. Court of Appeals for the D.C. Circuit over EPA's decision to approve E15 in some vehicles. The petitioners maintain that the EPA administrator may grant a waiver for a new fuel additive only if it "will not cause or contribute to a failure of any emission control device or system." They argue that EPA does not have the authority to permit higher ethanol blends in some vehicles and not others. API's group director of downstream operations, Bob Greco, said in press reports that EPA's decision was "premature" and "puts consumers at risk." He said that testing by the oil-and-gas industry, automakers and the Department of Energy on whether E15 is safe is not yet complete.

November 16. EPA will hold a public hearing tomorrow in Chicago on the E15 pump labeling requirement. The hearing will be held from 10 am to 5 pm―or until everyone has had a chance to speak―at the Millennium Knickerbocker Hotel Chicago. You can listen to the hearing over the phone if you are unable to attend in person. Call the toll-free number (1-866-299-3188). At the prompt, enter conference code 7342144423 followed by the # sign. Only 150 lines will be available, and you will not be able to present testimony over the phone.

December 2010. EPA indicates it is still on target to decide whether to allow E15 to be used for vehicles made between 2001 and 2006.

PEI SPONSORS UNIVERSITY OF INDUSTRIAL DISTRIBUTION MARCH 7-10, 2011
PEi is proud to be a sponsoring association of the University of Industrial Distribution (UID), March 7-10, 2011, in Indianapolis, Indiana. UID is a concentrated educational program focused on the unique needs of the industrial wholesale distribution industry. Topics covered include advanced inventory control, leadership, improving productivity, sales and marketing strategies, and negotiation skills. CEOs, branch managers, sales personnel, purchasing and inventory managers, human resources directors and operations managers will benefit from this acclaimed event. For more information or to register, click here.

GE TO BUY 25,000 ELECTRIC VEHICLES
General Electric's chief executive Jeffrey Immelt said the company would convert half its corporate fleet to electric vehicles by 2015. GE said it will buy 12,000 electric vehicles starting next month, beginning with GM's Volt. It plans to add others―up to a total of 25,000 vehicles―as manufacturers expand their electric car offerings. Every major automaker has plans to introduce cars that can be powered by electricity over the next two years. GE builds a home electric car charging station called the WattStation, which could be in higher demand if drivers buy electric cars.

PEI MEMBER BRIEFS
Bottom Line of MN, Osakis, Minnesota, has been appointed by M. Carder Industries, Fenton, Missouri, to represent its product line in the United States and South America.
Western Fiberglass, Santa Rosa, California, has appointed Holloway Marketing of Waterford, Michigan, to represent Western's products in Iowa, Kentucky, Michigan and Ohio.
Petroleum Solutions, Inc., McAllen, Texas, opened its ninth branch location November 1 at 2305 East Adams, Temple, Texas 76501. Phone: 254-770-0440. Overseeing sales and construction at the branch is Chuck Nadeau, previous owner of Temple-based Petro-Tech. Email: cnadeau@petroleumsolutionsinc.com. CEO and founder of Petroleum Solutions is Tom Barron, who celebrated his 40th year in business this September.

PETROLEUM MARKETING NOTES
Sheetz, Inc., Altoona, Pennsylvania, unveiled its "East-West Clean Fuel Corridor" where E85 can be purchased. Motorists can now buy E85 at three Pittsburgh area locations and three locations in and near Harrisburg, Pennsylvania. "Our goal is to expand the use of E85 into more locations to extend the corridor and help our customers," said Stan Sheetz, president and CEO of Sheetz, Inc. "With gasoline prices constantly fluctuating, it's important that we provide our customers fuel options," added Sheetz. "Increasing the use of E85 decreases our reliance on foreign oil while providing more opportunities for America's corn farmers. It also reduces emissions and helps with cleaner air."
The New York Department of Environmental Conservation levied a fine of $180,000 against the owner of French Creek Marina, located in Clayton, New York, and ordered corrective action be taken to remedy 16 alleged violations of the state's bulk petroleum laws.
Casey's General Stores Inc., Ankeny, Iowa, has signed an asset purchase agreement to acquire up to 44 Kabredlo's stores in Nebraska (22), Kansas (21), and Oklahoma (1).
A jury returned a $30 million verdict against Petroleum Wholesale LP, Houston, Texas, for defrauding its customers by deliberately miscalibrating its dispensers. Petroleum Wholesale owns 86 SunMart convenience stores.
Gas City Ltd., Frankfort, Illinois, has filed for Chapter 11 bankruptcy protection, citing more than 1,000 creditors and estimated liabilities of more than $100 million. Gas City owns and operates 52 petroleum marketing locations, including 9 truckstops.

MEMBERSHIP APPLICATIONS
Electronic sign and message center manufacturer. SignQuarters, 106 Max Hurt Drive, Murray, Kentucky 42071, has applied for manufacturer division membership. Peter Cowen is vice president of brand development for the firm, which was established in 1986. The company specializes in electronic gas price changes and electronic message centers for stations and convenience stores. The equipment is sold through distributors. Sponsored for PEI membership by Steve Tretter, Priority, Longwood, FL. www.signquarters.com
Dispenser manufacturer. Aldesan Akaryakit LPG Dogalgaz Ekip. San. Ve Tic. Ltd., Sti., Aksemsettin Mah. Fatih Bulvan No. 499-501, Istanbul, Turkey, has applied for manufacturer division membership. Serdar Kilic is in international relations for the firm, which was established in 1998. The company manufactures dispensers for LPG tanks, mobile gas stations and skid LPG stations. The dispensers are sold through distributors. Sponsored for PEI membership by Bob Chase, Bennett, Spring Lake, MI. www.aldltd.com
Ontario engineering firm. J + B Engineering Inc., 5734 Yonge Street, Suite 501, Toronto, Ontario M2M 4E7, has applied for affiliate division membership. Dave Machan is the primary contact for the firm, which was established in 1980. The company is sponsored for PEI membership by Chris Vassos, WalecoInc, Mississauga, Ontario. www.jandb-engineering.com
Colombia installation and service firm. Insugec Ltda. Cra 52 #29 49, Medllin, Colombia, has applied for service and construction membership in PEI. Juan Felipe Londoño Sierra is manager for the firm, which was established in 2006. The company builds stations and convenience stores in Colombia. Sponsored for PEI membership by John Page, LSI, Cincinnati, OH. www.insugec.com
Guatemala installation and service firm. Reparaciones Ruiz R&R, S.A., Iote 52 Mz I Sector B1, Cuidad San Cristobal, Mixco, Guatemala 01057, has applied for service and construction division membership. Juan Carlos Rivera Estevez is president of the firm, which was established in 1982. The company provides preventive and corrective maintenance for refueling facilities in Guatemala. Sponsored for PEI membership by J. T. Celani, Davis, Conyers, GA.

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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.