March 14, 2017 | Vol. 67, No. 6

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Dear PEI Member:

The battle over ethanol is being waged on several fronts in the early days of the Trump administration, with possible changes to the Renewable Fuels Standard getting most of the headlines.

First up for possible legislative action is a bill that would make it easier for fuel marketers to sell E15 year-round. Introduced on March 2 in both houses of the U.S. Congress by bipartisan legislators from corn-growing states, the Consumer and Fuel Retailer Choice Act has garnered lots of backing from the ethanol industry and, so far, only muted opposition.

From June 1 to Sept. 15, the Clean Air Act places extra limits on the evaporative emissions of the nation’s fuel supply. With the warmer temperatures during these months, highly volatile fuels evaporate rapidly and increase air pollution, particularly ground-level ozone.

Volatility is typically measured by the fuel’s “Reid vapor pressure” (RVP). The higher the RVP, the greater the fuel’s tendency to evaporate. In most jurisdictions, the allowable summertime RVP for non-flex fuel vehicles is 9 psi. E10’s RVP is about 10. However, in 1991, EPA granted a one-pound waiver to E10, thereby putting the fuel under the summertime limit. As a result, E10 is widely available across the country during the summer.

E15 has an RVP comparable to that of E10—at or slightly below 10 psi. Nevertheless, when EPA acted in 2011 to approve the sale of E15 for model-year 2001 and newer vehicles, it did not grant a RVP waiver that would allow the fuel to be broadly sold during the summer.

The Consumer and Fuel Retailer Choice Act would extend the summertime RVP waiver to E15, thus opening the way for the fuel to be sold all year long.

Ethanol advocates say the inability to sell E15 in the summer is a major disincentive for many retailers that otherwise would consider offering the higher blend. And the 650 U.S. marketers that so far have chosen to sell E15 are forced to choose between two awkward options to comply with the RVP summer requirements. One option is to put labels on their E15 dispensers that warn consumers the fuel is “for flex-fuel vehicles only” on June 1—and then remove the labels on Sept. 16. Alternatively, retailers may choose to not sell the higher blend at all from June 1 to Sept. 15.

E15 in the Summer?

Service & Construction Managers Conference Deadline

OSHA Tightens Silica Rules

PEI Foundation Scholarships

Free Service Tech Skills Test Webinar

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In recent months, the movement toward E15 has been gaining momentum, with a number of large chains (including Kum & Go, Sheetz, RaceTrac, MAPCO, Murphy USA and Family Express) now selling the blend at some of their locations. If enacted, the Consumer and Fuel Retailer Choice Act would accelerate that momentum.

While congressional leaders have not announced a timetable for consideration of the bill, corn-state legislators almost certainly will attempt to push the legislation forward before the 2017 summer driving season.

EARLY BIRD REGISTRATION FOR SERVICE & CONSTRUCTION MANAGERS CONFERENCE ENDS TODAY
Today is the last day to receive early bird registration discounts for PEI's 2017 Service & Construction Managers Conference (May 11-13, 2017, in Indianapolis).

The conference, hosted by PEI at the Westin Indianapolis Hotel, will offer general sessions and roundtable discussions specifically geared to the needs of service and construction managers. Attendees also will learn more about the scientifically based skills aptitude test for service technicians recently introduced by PEI. Registration by midnight tonight, March 14, is $295 for PEI members ($545 for nonmembers). Beginning tomorrow, the registration fee increases to $395 for members ($695 for nonmembers). Registration includes all conference materials, three general sessions, four roundtable discussions, three meals and two receptions.

To learn more about the 2017 PEI Service & Construction Managers Conference, register and reserve your hotel room, click HERE.

PEI thanks the corporate sponsors whose generosity has helped make this conference possible. Three new additions—Icon Containment Solutions, AvaLAN Wireless and Central Illinois Mfg. Co—recently joined 12 other previously announced sponsors.

OSHA TIGHTENS SILICA DUST RULES FOR CONSTRUCTION
Effective June 23, 2017, PEI members engaged in construction work and covered by federal Occupational Safety and Health Administration (OSHA) rules will be subject to much more restrictive limits on silica dust. The new rule limits exposure to airborne silica crystals to 50 micrograms per cubic meter of air, averaged over an 8-hour shift. The rule also adds new requirements for employers to:

Use water, ventilation or other engineering controls to limit worker exposure;
Provide respiratory protection when engineering controls cannot adequately limit exposure;
Limit worker access to high-exposure areas;
Develop a written exposure control plan;
Offer medical exams to highly exposed workers;
Train workers on silica dust risks and methods for limiting exposure.

PEI FOUNDATION SCHOLARSHIP APPLICATIONS DUE MARCH 31
Each year, the PEI Foundation provides Charles D. Kemp Scholarships to deserving dependents of full-time employees of PEI member companies. The deadline to apply for scholarships for the 2017-18 academic year is March 31. To be considered, applicants must plan to enroll as an entering freshman at an accredited four-year college or university. Scholarship awards are based on academic achievement, leadership, character, financial need and the applicant’s intent to contribute to the future of the fuel and fuel handling equipment industry. Visit www.pei.org/foundation to download the complete scholarship guidelines and application form. The site also includes a downloadable flyer that can be posted at PEI member workplaces. For questions about the application process, contact Teresa Jonkman at tjonkman@pei.org.

FREE WEBINAR ON SERVICE TECH SKILLS ASSESSMENT TEST
PEI has partnered with a professional testing firm to produce a technologically advanced and scientifically sound skills aptitude test for new service technicians. Join a free 90-minute webinar on Tuesday, March 21 at 10:00 a.m. CDT to learn how this test can help you in your recruitment efforts. Click on this link to sign up. Contact Bob Young at byoung@pei.org for additional details.

APPOINTMENTS AND RETIREMENTS
Kevin Long has been named president of OPW, a Dover Company. Long joined Dover in 2014 as the president of Colder Products Company. He previously served as vice president of customer care at KaVo-Kerr, a division of Danaher. Long graduated from Ohio State University with a BS and MS in mechanical engineering and received his MBA from MIT.
Ken Hayden is retiring as president of Northeast Petroleum Technologies, effective April 15, 2017. Hayden has held this position since the 1998 founding of the Schenectady, New York-based distributor.

BRIEFLY NOTED
“[Michigan] Republican Gov. Rick Snyder is proposing to shift nearly $15 million from another fund — one used to address 8,000 leaking underground fuel tanks — as a one-time ‘buffer’ to continue the remediation of abandoned paper mills, foundries and other properties next year. The proposal worries some legislators who already are upset about past raids on the tank cleanup fund … .”—Associated Press, March 6, 2017
“Trump officials will propose a $6.1 billion budget for the EPA next year, a $2 billion cut from current levels, according to reports in E&E News and Politico, citing sources. The agency’s staffing levels would fall to 12,000 workers, from 15,000 currently, according to the reports.”—The Hill, Feb. 27, 2017
“Cars and light trucks from the 2016 model year will be the first to fall short of U.S. fuel economy targets in more than a decade, according to a new projection released by regulators that will feed a debate over efficiency standards between automakers and environmental groups. The National Highway Traffic Safety Administration forecasts that the 2016 models will average 32.1 miles per gallon, below the target of 32.8.”—Bloomberg Technology, March 7, 2017

MEMBERSHIP APPLICATIONS
Texas fittings manufacturer. TCF Industries, 6529 Cunningham Road, Suite 2401, Houston, Texas 77041, has applied for affiliate division membership. Tim Abrams is sales and marketing manager for the firm, which was established in 1972. The company manufactures custom fittings and flanges for petroleum, hydraulic and other related industries. Sponsored for PEI membership by Andy Veri, HoseMaster, Cleveland, Ohio.
www.anchorfluidpower.com

ADMITTED TO PEI

Warrington Measurement & Controls, Oldwick, NJ (aff)
Apex Companies, LLC, Rockville, MD (S&C)
AVA Environmental Inc., Compton, CA (S&C)
Gas Station Technical Repairs Co. Inc., West Palm Beach, FL (S&C)
Keith Hardesty, Two Farms, Inc. dba Royal Farms, Baltimore, MD (O&E)
Jeffery Ihrcke, Jacobus Energy, Inc., Milwaukee, WI (O&E)

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The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.