June 30, 2011 | Vol. 61, No. 13

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Dear PEI Member:

On June 23, the U.S. Environmental Protection Agency (EPA) finalized fuel dispenser labeling and other requirements for gasoline blends containing more than 10 and up to 15 percent ethanol (E15). EPA hopes these requirements will help ensure that E15 is properly labeled and used once it enters the market.

The new orange and black label (right) must appear on fuel pumps that dispense E15. The label, according to EPA, will help inform consumers about which vehicles can use E15. The label also warns consumers against using E15 in vehicles older than model year 2001, motorcycles, watercraft and gasoline-powered equipment, such as lawnmowers and chainsaws.

Over the past year, EPA issued two partial waivers under the Clean Air Act (CAA) that in sum allow E15 to be sold for use in model year 2001 and newer cars and light trucks. These decisions were based on test results provided by the U.S. Department of Energy (DOE) and other test data and information regarding the potential effect of E15 on vehicle emissions.

The E15 partial waivers impose a number of conditions to help ensure that E15 is introduced into commerce for use only in model year 2001 and newer light-duty motor vehicles and in flexible-fuel vehicles, and not for use in any other vehicles, engines or equipment. The regulation finalized by EPA on June 23―in addition to the labeling requirements―includes a prohibition against misfueling with E15; a requirement to track E15 and other fuels as they move through the fuel supply chain so that E15 can be properly blended and labeled; and a quarterly survey to help ensure that gas pumps dispensing E15 are properly labeled. The regulation also modifies the Reformulated Gasoline (RFG) Program to allow fuel producers to certify batches of E15 as complying with RFG standards. Finally, EPA's rule denies a petition for rulemaking to require retail stations to offer gasoline containing ≤10 percent ethanol.

EPA notes on its website that prior to the distribution of E15, fuel and fuel additive manufacturers are required to register the fuel or fuel additive with EPA. As of June 23, 2011, E15 had not been registered. EPA also states on its website that a number of additional factors―including requirements under other federal, state and local laws―may also affect the distribution of E15. Last, but certainly not least, EPA reiterates that it does not mandate the use of E15.

EPA also issued guidance―not a rule―on the compatibility of underground storage tank (UST) systems with gasoline containing greater than 10 percent ethanol or diesel containing greater than 20 percent biodiesel. The guidance is intended to assist owners and operators in meeting existing federal UST compatibility requirements. We will review that guidance in the next TulsaLetter.

The rule and the guidance will be available on the following sites until the official versions are published in the Federal Register:

EARLY-BIRD DEADLINE NEARS FOR PEI CONVENTION
Excitement is building for the PEI Convention at the NACS Show, October 1-4, 2011, in Chicago. Why should you attend? Here are three compelling reasons:

One, an outstanding educational lineup―including sessions on DEF, E15, regulatory developments, online marketing and the economy. General session speakers include Michael Durant, the inspiration behind the Academy Award-winning film Black Hawk Down, and Eric Wahl, whose "Art of Business Excellence" presentation will show you how to outthink your competition and boost your profits.

EPA Finalizes Pump Labeling Requirements

PEI Convention Early Bird Registration Deadline Nears

EPA Proposes 2012 Ethanol/Biodiesel Volumes

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Two, a huge roster of exhibitors―more than 500 booths spread across 132,000 square feet with the latest in technology, equipment, products and services for you and your customers. Click here for a list of exhibitors who already have reserved their space and an interactive floor plan of the McCormick Place exhibition hall.

Three, opportunities galore to network with your peers, customers and prospects―thanks to special events like our industry reception, 10-Group meetings, the relaxing After-Hours Lounge and a very special gathering just for Young Executives.

With our Early-Bird discounts, you can save $200 off the regular registration rates. Group discounts (five or more registrants) can mean even more savings. But you have to hurry. These discounts expire in just three short weeks (July 22). Register today to save.

The PEI Convention at the NACS Show is the event of the year for the energy marketing and fluid handling equipment industry. We look forward to seeing you there.

EPA PROPOSES 2012 ETHANOL AND BIODIESEL MANDATE VOLUMES
The U.S. Environmental Protection Agency (EPA) is required to determine and publish the applicable renewable fuel percentage standards for each compliance year by November 30 of the previous year. The proposed 2012 overall volumes and percentage standards―representing the ratio of renewable fuel volume to non-renewable gasoline and diesel volume―are:

Biomass-based diesel (1.0 billion gallons; 0.91 percent)
Advanced biofuels (2.0 billion gallons; 1.21 percent)
Cellulosic biofuels (3.45 to 12.9 million gallons; 0.002 to 0.010 percent)
Total renewable fuels, including 13.2 billion gallons of corn-based ethanol (15.2 billion gallons; 9.21 percent)

KIPLINGER ON ELECTRIC CAR CHARGING STATIONS
"The feds are also pitching in to set up charging stations for electric cars in California, Oregon, Washington, Texas, Arizona and Tennessee, as well as in the nation's capital. Over the next few years, a partnership of federal and state agencies, government labs and private firms will roll out 15,000 stations sporting high-voltage fast chargers, capable of juicing up an electric vehicle in a few hours, or 30 minutes on high power. The feds figure they'll get the most bang for their buck by concentrating the stations in a handful of markets at first. Eventually, they'll help build stations elsewhere. Look for charging stations to sprout up in public and commercial venues. . . places where drivers and their cars are most likely to spend lots of time. Think shopping centers, sports arenas, office parks, amusement parks and the like."―The Kiplinger Letter, June 10, 2011.

SEVERAL GROUPS OPPOSE TAX BREAKS FOR NGVS
"Incentives to promote the use of natural gas vehicles (NGVs) have bipartisan support in Congress and are backed by the White House, but several groups have stepped forward to oppose tax credits for the purchase of NGVs and construction of refueling infrastructure.

"Stakeholders in industries that rely on natural gas as a feedstock have launched letter-writing campaigns urging lawmakers to reject the Nat Gas Act, a bipartisan bill that aims to establish tax credits for NGVs, compressed natural gas CNG fuel and filling stations. They argue that efforts to boost US demand for natural gas―in this case, by creating additional consumption of gas in the form of a transportation fuel―would place upward pressure on prices.

"This could add significantly to the operating costs of energy-intensive industries, such as the production of fertilizer, ammonia, paper and ethanol. Opponents of the Nat Gas Act include manufacturing giant Dow Chemical, along with trade associations like the Industrial Energy Consumers of America, the American Chemistry Council, the Fertilizer Institute and the American Forest and Paper Association."―Oil Daily, June 21, 2011.

PEOPLE IN THE NEWS
OPW, A Dover Company, Cincinnati, Ohio, has named Steve Stewart as its new Eastern Canada district manager, beginning July 5. Based in Guelph, Ontario, he will be responsible for sales in the provinces of Quebec, Ontario and Nova Scotia.
Don Longo, president of Don Longo, Inc., Chester, New Jersey, was honored with a Lifetime Achievement Award presented by the Petroleum Equipment Contractors Association of New Jersey.

MONEY AVAILABLE FOR BLENDER PUMP CONVERSION IN INDIANA
The Indiana Corn Marketing Council's Flex Fuel Pump Program is offering grants to retailers who offer E85 and at least one other mid-level blend. Retailers are eligible for up to 50 percent of the cost―or $20,000, whichever is less―of a flex-fuel pump, hardware and storage tank, or the conversion of an existing pump to a blender pump. The program is open to both new and existing stations in Indiana.

MEMBERSHIP APPLICATIONS
Service trailer manufacturer. LDJ Manufacturing, dba Thunder Creek Equipment, 1833 Highway 163, Pella, Iowa 50219, has applied for manufacturer division membership. Luke Van Wyke is general manager of the firm, which was established in 1999. The company manufactures fuel and DEF handling equipment and service trailers, which are sold through PEI distributors. Sponsored for PEI membership by Steve Murray, TotlConSys, Fort Wayne, IN. www.thundercreekequipment.com

ADMITTED TO PEI

Sonny's Enterprises Inc., Tamarac, FL (mfr)
Economy Controls Corp., St. Louis, MO (mfr)
Altametrics AutoGas, New Braunfels, TX (mfr)
UST Training (Powered by Petroleum Training Solutions), Saukville, WI (aff)
Vinamco Import & Export Petroleum Equipments JSC,
Ho Chi Minh, Vietnam (aff)
Service Station Repair, Waco, TX (S&C)
Kenstruct Ltd., Pefferlaw, Ontario (S&C)

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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.