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Dear PEI Member: The U.S.
Environmental Protection Agency (EPA) has proposed long-delayed targets for
blending biofuels into conventional petroleum fuels in 2014-16.
EPA noted in its 118-page proposal that the targets
fall short of the volumes Congress originally mandated in the Renewable Fuel
Standard (RFS), which was signed into law by President George W. Bush in
2007. However, it added that the targets would still result in further
growth in U.S. consumption of renewable fuels, in line with the original
intent of Congress.
The RFS sought to reduce oil consumption and emissions
of greenhouse gases by mandating the blending of steadily rising volumes of
biofuels, such as ethanol and biodiesel, into petroleum fuels such as
gasoline and diesel. Problems developed when U.S. fuel consumption grew more
slowly than anticipated at the time the RFS was developed. Furthermore, oil
refiners noted practical obstacles to blending ever-increasing volumes of
biofuels into petroleum fuels. Specifically, refiners have argued that it is
unsafe to blend biofuels in concentrations greater than 10 percent because
doing so can damage automobile engines and the equipment used to transport,
store and dispense the blended fuels.
In its proposal, EPA relied on its authority to set
targets at lower levels than Congress originally mandated since, in its
view, the statutory volumes were not reasonably achievable. EPA set the
total renewable fuels target for 2014 at the level that was actually blended
in that year: 15.93 billion gallons. It also proposed targets of 16.30
billion gallons for 2015 and 17.40 billion gallons for 2016. EPA believes
“the proposed standards to be ambitious but within reach of a responsive
marketplace.”
Once the proposal is published in the Federal
Register, it will be open for public comment through July 27, with the
goal of finalizing the targets by November 30. EPA noted that this would put
the agency back on track to meet the statutory deadline for finalizing
annual RFS blending targets. EPA will hold a public hearing on the proposal
on June 25 in Kansas City, Kansas.
The bottom line for the petroleum equipment industry: If the renewable
fuels targets for 2015 and 2016 are finalized as proposed, the market for
E15-compatible equipment will continue to be more market- and
incentive-based (see article that follows) than statutorily driven.
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EPA Proposes RFS Targets
USDA Grants for Ethanol Dispensers
NREL Releases E15 Infrastructure Report
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USDA OFFERS $100 MILLION FOR ETHANOL DISPENSERS
The U.S. Department of Agriculture (USDA) is offering states up to $100
million to encourage the use of gasoline dispensers that blend high amounts
of ethanol—like E15 or E85—into the fuel. The announcement came May 29, the
same day EPA proposed its biofuel blending targets for 2014-16.
The USDA program will match state funds to help
purchase and install dispensers compatible with gasoline blended with
greater amounts of ethanol. USDA hopes to double the number of ethanol
blending dispensers in the country through the new grants. The project will
be formally launched in a Notice of Solicitation of Applications later this
month.
NREL RELEASES E15 EQUIPMENT INFRASTRUCTURE REPORT
E15 and Infrastructure is a
44-page report
(PDF) produced under direction of the Renewable Fuels
Association (RFA) by the National Renewable Energy Laboratory (NREL). The
paper, as the title suggests, addresses the compatibility of E15 with
equipment at refueling stations. Findings of interest to the equipment
industry contained in the report include:
- Refueling equipment manufacturers have improved their sealing
materials for compatibility with a wide range of fuels.
- The majority of installed tanks are compatible with E15.
- A literature review going back 15 years was conducted to
determine if there were any negative impacts during the multi-year
deployment of E10 nationwide. No incidents of E10 causing known releases
(also referred to as leaks) from UST systems were identified during the
deployment of E10. This is not to say that there were no issues, just that
there were no known releases and no reports on this subject.
- Credit card companies are requiring retail fueling stations to
update their dispensers to accept new chip and PIN secure credit cards by
October 2017, at which time fraud liability would switch to station owners
if they have not updated their equipment. This presents an opportunity to
increase E25 UL-listed equipment through a retrofit kit. If electronics are
being upgraded to accommodate the new credit cards or if a station owner
must purchase a new dispenser, the owner could pay a minimal amount more for
an E25 dispenser. If a new dispenser is purchased, this may also present an
opportunity to upgrade to an E85 dispenser, but at significant additional
cost.
- There are approximately 60 pieces of equipment at a station
designed to handle fuel and vapor. All known manufacturers’ website product
pages and catalogs were reviewed for every equipment type and model to
determine if the products could be used with blends above E10. All known
manufacturers were contacted to review compatibility lists. This resulted in
an extensive list—shown in one of the report’s appendices—of equipment
compatible with blends above E10.
The study was funded by the
Blend Your Own Ethanol campaign, a joint effort of the American Coalition
for Ethanol (ACE) and RFA.
IN THE PRESS
“Firms touting natural gas as a transportation fuel face headwinds in
2015, now that the cost of diesel has fallen. Natural gas, either liquefied
or compressed, had been winning over owners of truck fleets looking to save
on fuel in recent years. Because the price gap has narrowed, the switch to
gas engines is less compelling. Still, long-term prospects for natural gas
as a motor fuel remain positive. Odds are the price gap between natural gas
and diesel will widen again. Meanwhile, more motor builders are designing
gas-fired truck engines, giving fleets more options.”—The Kiplinger
Letter, May 15, 2015.
Hillary Clinton writes in The Gazette of Cedar Rapids that the
United States should continue supporting and “improving” the RFS, arguing
that it can be a “powerful tool” to boost development of advanced biofuels
and expand the role of renewables in the nation’s fuel mix. “[W]e also can’t
ignore significant changes to the energy landscape since the RFS was
expanded in 2007,” she writes. “We have to get the RFS back on track in a
way that provides investors with the certainty they need, protects
consumers, improves access to E15, E85, and biodiesel blends, and
effectively drives the development of cellulosic and other advanced biofuels.”
“The percentage of companies with at least 10 percent of their total
revenue from e-commerce grew 14 percent in 2014 from 2013.”—MDM Special
Report: 2015 State of E-Commerce in Distribution.
PEI BOARD ELECTION DEADLINE
It is time to begin the process of electing members to the PEI Board of
Directors. Under PEI’s election procedure, the official representative or a
duly appointed alternate must request to have his/her name included on the
ballot. An email for that purpose was sent June 1 to the official
representatives of PEI member companies from the odd-numbered districts of
PEI’s distributor and manufacturer divisions, as well as PEI’s service and
construction division. The form must be received in Tulsa by the close of
business on Monday, June 22, for the name to appear on the ballot. If you
have misplaced your form and need another one, email Teresa Jonkman at
tjonkman@pei.org.
FRANKLIN FUELING ADDS TWO TO ITS SALES TEAM
Franklin Fueling Systems, Madison, Wisconsin, has made two additions to
its North American sales team. Gordon Carlson (gcarlson@franklinfueling.com;
(816) 854-9725) has been named Midwest territory manager. Based in Kansas
City, Missouri, Carlson will be responsible for sales in Kansas, Nebraska,
Missouri and southern Illinois. Luis Martinez is now territory manager,
Florida and Caribbean. Based in the Miami area, Martinez can be reached at
(407) 278-4341 or
Luis.Martinez@franklinfueling.com.
MEMBERSHIP APPLICATIONS
Turkey installation company. ETS Yapi Insaat Muh. Tic. Sti., Site Mah,
Samanyolu Cad. Gurler Sokak, Upstone Residence No. 68 B Blok D:4, Umraniye,
Istanbul, Turkey 34760, has applied for service and construction division
membership. Tamer Ozbey is general manager of the firm, which was
established in 2009. The firm provides turnkey installation of fuel and LPG
dispensers, automation systems and infrastructure materials. Sponsored for
PEI membership by Bob Chase, Bennett, Spring Lake, MI.
www.etscons.com
Florida credit card and processing center. Service First Processing,
4401 North Federal Highway, Suite 101, Boca Raton, Florida 33431, has
applied for affiliate division membership. David James is relationship
manager for the firm, which was established in 2010. The company processes
credit cards for merchants. Sponsored for PEI membership by Chris Monroe,
Monroe, Arlington, TX.
www.sfprocessing.com
Connecticut service firm. NTSS, Inc., P. O. Box 336, Putnam,
Connecticut 06260, has applied for service and construction division
membership. Christopher J. Fischkelta is vice president of the firm, which
was established in 1987. The company specializes in the service of petroleum
equipment. Sponsored for PEI membership by Craig Smith, Smith&Sons,
Chinchilla, PA. |
