Dear PEI Member:
The Environmental Protection Agency (EPA) said February 17 that it has
approved health effects and emissions testing on E15, clearing another hurdle
on the way for E15 to be introduced into commerce for use in model year 2001
and newer light-duty motor vehicles.EPA
issued its approval after reviewing emissions testing performed by Southwest
Research Institute and an analysis submitted by Growth Energy and the
Renewable Fuels Association (RFA) that showed previously approved health
effects testing results for E10 are comparable to E15.
The Clean Air Act requires testing to be completed and approved by
EPA before any new fuel can be registered and sold in the marketplace.
Growth Energy and RFA are making their E15 health effects testing
results available free of charge to any fuel or fuel additive manufacturer
that wants to register E15 for sale, which will lessen the burden for those
seeking to complete the individual registration process. However, EPA
stressed in its February 17 documentation that the Growth Energy/RFA
documents do not constitute a completed application. Individual applicants
also must submit specific information about the company in the registration
application and may not begin selling E15 until EPA approves the
application, a process that can take up to a month. An RFA spokesperson said
last week that there are "ten registrations sitting on EPA's desk waiting
for their processing." Registration, although a prerequisite to
introducing E15 into the marketplace, by itself does not mean E15 can
immediately be sold. Fuel and fuel additive manufacturers wishing to
register E15 must obtain EPA approval of―and
implement―a misfueling mitigation plan and a
survey plan before selling E15. In addition, other federal, state and local
requirements as well as practical concerns, such as dispenser and tank
compatibility, must be addressed. Since a number of states restrict the sale
of some gasoline-ethanol blends, state law changes may be needed before E15
may be sold in those states. Dan Gilligan, president of the Petroleum Marketers Association of America
and a speaker at PEI's annual convention last October in Chicago, suggested
at that time that Iowa could be the first state in the nation to offer a
significant amount of E15 for use in 2001 and newer vehicles. I attended an
ethanol workshop last month in Des Moines, I think he's spot-on. In talking
to the petroleum marketers in Iowa, it's clear that the ethanol blend is
already available through numerous blender pumps used to fuel flex-fuel
vehicles, giving those retailers a head start in offering it to customers
when the time comes. Iowa also offers incentives to retailers who sell
mid-level blends of ethanol and it has a statewide renewable fuel standard,
which further spurs retailers to make alternative fuels available. I am not
certain that automobile liability issues have been resolved to everyone's
satisfaction and I understand there is reluctance from many marketers to
sell E15 without an official ASTM octane rating, but there seem to be enough
marketers in Iowa to offer a substantial amount of E15 to the public
relatively quickly once those issues are resolved.
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EPA's E15 Emissions and Health Effects Approval
Companies Sold/Acquired
PEI and Industry News »
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Most petroleum
marketers in other states will take their time before offering E15. In
talking to station owners at the Western Petroleum Marketers Association
(WPMA) show last week in Las Vegas, misfueling liability, equipment upgrades
and customer acceptance have them taking a wait-and-see approach to
marketing E15. In an unscientific and informal survey of 15 petroleum
marketers at the WPMA show, eleven told me they had no immediate plans to
sell E15 as soon as it became legal to do so; two said they would try it
here and there; one said his company would offer E15 "over my dead body,"
and one said he was going to market it aggressively to differentiate his
company from the competition. All but one―the
dead body guy―agreed that they inevitably will
have to offer E15 unless there is a change in the federal law (RFS2). Most
thought/hoped that the mass change to E15 would occur five to ten years down
the road.
ACQUISITIONS
Tom Fassas of Petro Serv, Inc., Richmond, Kentucky, has purchased the
assets of Towery Equipment Company, Louisville, Kentucky. Doug
McFarland, Towery's previous owner, will serve as a consultant to both
companies.
Western Petroleum LLC, Vernal, Utah, has agreed to be acquired by
Pilot Flying J, based in Knoxville, Tennessee. Western Petroleum
distributes Chevron, Sinclair and Conoco products to the oil and gas
drilling and hydraulic fracturing industries. Western serves customers in
the Rocky Mountains, the Northern Plains, Texas, Oklahoma, Louisiana and
Pennsylvania.
BRIEFLY NOTED
Source North America Corporation, based in Addison, Illinois, will open
its 13th facility in King of Prussia, Pennsylvania, in mid-March.
Morrison Bros. Co., Dubuque, Iowa, has added Florida to Kelly
Briant's territory. Briant is Morrison's southeastern regional territory
manager. Bruce Kwasney, Morrison's west-central regional territory manager,
has been given the additional responsibility for sales in central and
western Arkansas.
Susser Holding Corp., Corpus Christi, Texas, plans to build between
25 and 30 new stores in 2012, compared to 19 in 2011, CEO Sam Susser said on
an earnings conference call February 22.
The U.S. military is testing 16 General Motors Equinoxes, which run
on hydrogen fuel cells that generate electricity by converting hydrogen gas
into water. The automobiles are in Hawaii and fuel at several bases on Oahu
that have been equipped to dispense hydrogen.
A bill (H.B. 5895) was introduced in the Illinois House of
Representatives February 16 that would allow the Department of Commerce
and Economic Opportunity to provide information encouraging gasoline stations to offer E15 as an option to their customers. The bill
would also permit the Department to provide information on any financial
assistance that may be available to gasoline station owners that would
subsidize the cost of providing E15-blended fuel to consumers.
The Environmental Protection Agency has proposed a $62 million fine
against Absolute Fuels of Lubbock, Texas, for allegedly producing and
selling renewable fuel certificates for renewable identification numbers (RINs)
to oil companies without actually producing the renewable fuel the credits
were meant to represent.
MEMBERSHIP APPLICATIONS
Wisconsin distributor. E.H. Wolf & Sons Inc., P. O. Box 348, Slinger,
Wisconsin 53086, has applied for distributor division membership. Robert
Troeller is the equipment manager for the firm, which was established in
1941. The company sells and services aboveground fuel, lube and DEF systems
and represents CentralIL, Graco, HuskyCorp, Krueger, Liquidynam and Usemco.
Sponsored for PEI membership by Steven Ettl, BadgerOEqp, Milwaukee, WI.
www.ehwolf.com
Fuel transfer system manufacturer. Phillips Fuel Systems Inc., 109
Holland Avenue, Bridgeport, Connecticut 06605, has applied for manufacturer
division membership. Patrick Crossin is president of the firm, which was
established in 2010. The company manufactures fuel transfer systems and
controls, which are sold through distributors. Sponsored for PEI membership
by Bill McIndoo, McIndooAsc, Farmingdale, NY.
www.phillipsfuelsystems.com
Tank level gauging system manufacturer. DainLevel Co., Ltd., #320,
3F, Sesingsang Bldg. 698-1, Deungchon-dong, Kangseo-gu, Seoul, South Korea
157-033, has applied for manufacturer division membership. Yean Sang Yoo is
the general manager of the firm, which was established in 1995. The company
supplies tank level gauging systems that measure and manage the liquid in
storage tanks. The systems are sold through distributors. Sponsored for PEI
membership by Nehar AlSaidat, Albelal, Amman, Jordan.
www.dainlevel.com
Texas petroleum equipment broker. Express Equipment, Inc., 10006
Stidham Road, Conroe, Texas 77302, has applied for affiliate division
membership. Angela Baldwin is in sales for the company, which was
established in 1989. The company is a broker for aboveground petroleum
equipment, parts and accessories. Sponsored for PEI membership by Stephen
Scott, BJ2, Longview, TX.
www.expressequip.com
California environmental compliance contractor. SoCal Compliance
Services, 11030 Arrow Route, Suite 212, Rancho Cucamonga, California 91730,
has applied for service and construction division membership. Dan Harris is
a partner in the firm, which was established in 2004. SoCal Compliance
Services provides environmental compliance contracting and consulting
services for UST and AST systems. Sponsored for PEI membership by B. A.
Scowley, ShldsHarpr, Martinez, CA.
Florida fuel/tank cleaning company. Absolute Tank Cleaning, 479
Bayview Drive NE, St. Petersburg, Florida 33704, has applied for service and
construction division membership. Luther Carrier is director of operations
for the firm, which was established in 2008. The company processes fuel
through a filtration unit that removes contaminates from fuel storage tanks.
Sponsored for PEI membership by Lucas Ford, Jr., LucasFord, St Petersburg,
FL. www.absolutetankcleaning.com
Florida petroleum construction firm. PCE Petroleum Contractors
Enterprise, 4946 Patagonia Place, Land O Lakes, Florida 34638, has applied
for service and construction division membership. Raul (Nick) Necoechea is
president of the firm, which was established in 2010. The company remodels
and upgrades gasoline service stations. Sponsored for PEI membership by
Suzanne Johnson, JohnsonFL, Riverview, FL.
Ohio construction and maintenance firm. Cox's Service Station
Maintenance, 151 East Sixth Street, Franklin, Ohio 45005, has applied for
service and construction division membership. Raymond L. Agee III is
president of the firm, which was established in 1979. The company provides
turnkey construction and maintenance of petroleum fuel systems. Sponsored
for PEI membership by Chuck Storey, Storey&Son, Cincinnati, OH.
ADMITTED TO PEI
- Elaflex Latin America, Buenos Aires, Argentina (mfr)
- SignResource, Maywood, CA (aff)
- American LED Lighting Solutions, Jacksonville, FL (aff)
- TranSystems Corporation, Kansas City, MO (aff)
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