May 11, 2018 | Vol. 68, No. 9
May 11, 2018 | Vol. 68, No. 9
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Dear PEI Member: As soon as a May 8 White House meeting involving President Trump, the U.S. Environmental Protection Agency (EPA), the Department of Agriculture and senators from corn-growing and oil-producing states ended, the headlines declared a major victory for ethanol. The president, according to those first reports, had agreed to the nationwide, summertime sale of E15 — a development ethanol advocates have long said would boost E15’s position in the nation’s vehicle fuel supply. Texas Republican Sen. Ted Cruz, for example, tweeted, “Terrific final decision from @POTUS meeting: E15, year-round plus RINs for all exports. This is a WIN-WIN for everyone.” Why all the excitement? The Clean Air Act places extra restrictions on fuel sales from June 1 to Sept. 15. Warmer summer temperatures cause highly volatile fuels to evaporate rapidly and increase air pollution, particularly ground-level ozone. Volatility typically is 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. Because E15 has an RVP closer to 10 psi, it cannot be sold legally for non-flex fuel vehicles during the summer. A presidential decision to waive the summertime RVP requirement for E15 would, therefore, be a very big deal. However, the initial post-meeting reports were a bit premature. Within hours, several meeting participants began clarifying their statements. Republican Sen. Pat Toomey of Pennsylvania described the outcome as an “agreement in principle.” Iowa’s two Republican senators were even more cautious. Sen. Joni Ernst said negotiators were “headed in the right direction.” Sen. Chuck Grassley tweeted, “Need to see … plan. Devil in details.” |
Did the White House Promise an E15 Waiver? PEI Purchasing and Inventory Managers Conference California Sues to Protect Fuel Efficiency Standards
by e-mail to the editor, Rick Long at rlong@pei.org or join the discussion in the Petroleum Equipment Forum
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The White House has yet to make an official statement, but a deputy press secretary emailed Bloomberg News: “President Trump is pleased to announce that a final decision has been made that allows E15 to be sold year-round, while providing relief to refiners." That sounds positive, but two big questions remain. First, can a single package offer relief to the many different types of refiners involved in the ethanol supply chain? Some are large operations: others, small. Some are importers; others, exporters. If negotiations with the refiners break down, will that scuttle the E15 waiver? Second, will the White House use emergency powers to allow nationwide E15 sales this summer? If a summertime RVP waiver can be achieved only through a lengthy regulatory or legislative process, the earliest possible effective date will be the summer of 2019. Sen. Grassley, the staunchest advocate of E15 in the meeting, has said he does not expect a waiver before 2019. Although the early claims about the May 8 meeting may have been exaggerated, I think a deal will come together, the summertime waiver will be granted and, as a result, E15 adoption by U.S. retailers will accelerate—but not this year. LEARN THE
SECRETS OF PURCHASING & INVENTORY MANAGEMENT To learn more, register and book your hotel, click here. CALIFORNIA
LAUNCHES LAWSUIT TO PROTECT CAFE STANDARDS In April, EPA Administrator Scott Pruitt announced that the EPA would revise rules finalized shortly before President Obama left office that require automakers to reach an average of 54.5 mpg by 2025. Pruitt based his decision on a formal finding that the fuel economy standards were impractical, could reduce vehicle safety and would impose higher costs on consumers, particularly the poor. California Attorney General Xavier Becerra, who filed the action in the U.S. Court of Appeals for the District of Columbia, said the Obama-era standards are achievable and based on sound science. Becerra also noted that the states joining the lawsuit represent 140 million Americans and nearly 43 percent of the nation’s new car market. Other states participating in the lawsuit are Connecticut, Delaware, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington. 2018 PEI
CONVENTION REGISTRATION OPENS MONDAY, MAY 14 Early bird registration for the 2018 PEI Convention opens Monday, May 14. The show will be Oct. 7-10 in Las Vegas. To register and reserve your hotel rooms, click here. FROM THE
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© 2018 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. |
