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Each week in the fuel handling equipment industry brings lots of reports, announcements, and predictions about U.S. vehicle fuels. Many turn out to be agenda-driven puff pieces or speculation with no data behind them.

But a few of the stories represent real developments with a direct bearing on PEI members’ businesses. Five such developments emerged in the past two weeks — two on electric vehicles (EVs), two on E15 and one on ultra-low sulfur diesel (ULSD). Here’s a quick summary of each — and why they matter.

1. Vehicle Fuel Costs. The U.S. Energy Information Administration (EIA) reported Nov. 25 that EVs’ estimated annual fuel costs were the lowest of all 2019 model year vehicles:
   • All-electric: $500 to $900
   • Plug-in hybrid electric: $600 to $1,950
   • Hybrid electric: $650 to $2,500
   • Gasoline: $1,000 to $4,100
   • Diesel: $1,150 to $2,250

   The estimates, which considered both city and highway driving, are based on 15,000 annual miles and fuel prices of $2.55 per gallon for regular gasoline, $3 per gallon for premium, $2.85 per gallon for diesel and $0.13 per kilowatt-hour for electric.

   Why This Matters: Sooner or later, EVs will achieve purchase price parity with liquid-fueled vehicles. When that day arrives, consumers will begin to weigh second-tier factors such as vehicle fuel costs in their purchasing decisions. The EIA data shows EVs score well on that variable.

2. Tesla Cybertruck. During its Nov. 21 unveiling, the Tesla Cybertruck’s supposedly unbreakable window glass shattered twice. Online commentators mocked the pickup’s boxy, angular design. And when Tesla claimed victory in a tug-of-war demo with a Ford F150, some experts said the outcome was more about physics than vehicle towing power.

   Even so, within days of the launch, 250,000 consumers put down a $100 deposit to preorder a Cybertruck.

   Why This Matters. Nearly a year remains before the Cybertruck’s release date. Tesla has time to fix the glass and fine-tune other vehicle features. However, the extent to which Ford, Chevy and Dodge truck owners will transfer their loyalty to Tesla remains an open question. Those 250,000 Cybertruck preorders are less than half of the 518,000 preorders Tesla gained for its Model 3 sedan — and the Model 3 required a $2,500 down payment.

3. New York Approves E15. The New York Department of Agriculture and Markets on Nov. 15 approved the sale of E15 in the state. The department had rejected E15 sales in 2016.

   Why This Matters. Only a handful of states have not yet approved E15. Some of the holdouts, including California, might follow New York’s lead, giving a boost to E15 sales and fueling infrastructure upgrades.

4. 2020 Model Year Vehicles Support E15. The Renewable Fuels Association’s annual vehicle fuel survey showed that E15 is approved for use in 97% of all 2020 model year light duty vehicles. That’s up from 93% of 2019 models.

   Why This Matters. Any lingering concerns about E15 misfueling likely will disappear within the next few years. As a result, UST owners and operators will have greater incentive to ensure their fueling infrastructure is E15 compatible.

5. Pemex Challenges Mexico’s ULSD Mandate. Earlier this year, a Mexico district court temporarily suspended enforcement of the country’s nationwide ULSD mandate. Recently released court documents show Pemex, Mexico’s national oil company, is now seeking to stay enforcement indefinitely.

   Why This Matters. Enforcement of Mexico’s ULSD mandate might lead to UST system maintenance problems similar to those U.S. owners and operators have faced since 2007, the year ULSD was introduced in the U.S.

Wisconsin Allows One-Hose E15 Dispensing

Registration, Sponsorships Open for Purchasing & Inventory Conference

Data Standards for UST Systems?

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by e-mail to the editor, Rick Long at rlong@pei.org

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WISCONSIN TO ALLOW ONE-HOSE E15 DISPENSING
Wisconsin Gov. Tony Evers signed legislation Nov. 25 allowing fuel retailers in the state to offer E15 and E10 through a single fuel hose. Under previous state law, dispensers installed after Feb. 1, 2009, had to use separate fueling nozzles and hoses for E10 and E15. In practice, this kept many Wisconsin retailers from offering higher level ethanol blends.

Under the new law, stations that dispense E10 and E15 through a single hose must maintain at least one dedicated E10 (or pure gasoline) dispenser.

REGISTRATION OPENS FOR PEI PURCHASING & INVENTORY CONFERENCE
Register now for PEI’s 2020 Purchasing & Inventory Conference, April 1-3 at the Courtyard Marriott San Antonio Riverwalk. Early bird registration through Feb. 28 is $325 for PEI members and $595 for nonmembers. Rates will increase March 1 to $425 for members and $745 for nonmembers.

The conference offers a combination of inventory roundtable discussions, general sessions and networking opportunities. Speaker Randy Disharoon, a certified nuclear engineer at age 23, led officer training courses for the Navy by age 25. Two years later, he entered the private sector, focusing on operations and technical sales at a distribution and manufacturing company.

Purchasing & Inventory Managers Conference sponsorships provide cost-effective ways for PEI member companies to reach key buyers, managers and influencers. Members already committed to sponsoring the event include RDM Industrial Electronics, Husky Corp. and Freedom Electronics.

Learn more, register and reserve your hotel room here. For details on available sponsorships, click here or contact PEI Advertising Director Tom Leibrandt at tleibrandt@pei.org or 918-236-3962.

DATA STANDARDS FOR UST SYSTEMS
In response to the industry’s increasing adoption of online databases, mobile inspection apps and remote equipment monitoring, PEI is participating in a Conexxus effort to develop a digital data standard for underground storage tank (UST) equipment. The proposed standard would normalize how data is structured and managed so fuel marketers, service contractors and regulators can better track and analyze equipment registrations, testing, inspection and other UST measurements.

PEI invites interested members to review and comment on the preliminary structure and plan for the equipment to be included in the standard (tanks, lines and line leak detectors, sensors, dispensers and tank monitors). To learn more or participate in this effort, contact Scott Boorse at sboorse@pei.org by Dec. 20. Conexxus plans to release the standard in the third quarter of 2020.

PEI MEMBER NEWS
Hockman-Lewis Ltd. named Ravi Kumar Ramamurthy regional sales director-MEA. Kumar has years of technical and sales experience in the petroleum equipment industry.
Petroleum Parts Inc. (PPI) appointed Scott Beam vice president of new business development. Beam earned a bachelor’s degree from Purdue University and a master’s from Indiana Wesleyan University. He has more than 30 years of experience.
Unified Services of Texas, Inc. (UST) acquired the assets and personnel of Lawrence, Kansas-based KRK Petroleum Engineering Solutions LLC. The KRK team will relocate to UST’s Olathe, Kansas office and operate as UST’s Compliance & Services division. Kevin Polian, the previous owner of KRK, will lead the division. 

BRIEFLY NOTED
“The Oklahoma Department of Environmental Quality (DEQ) is very pleased to announce that the ChargeOK grant program has issued awards for $1,453,933 to install 55 electric vehicle (EV) charging stations across Oklahoma. A second round of awards will be announced in the future.” — Oklahoma Department of Environmental Quality, Nov. 14
“According to the Federal Highway Administration, the average fuel economy for all light vehicles on the road today is 22.3 miles per gallon (mpg) and the average annual miles driven is 11,484 miles. The Federal tax on gasoline is 18.4 cents per gallon, and each state has a gasoline tax, ranging from 8.95 cents in Alaska to 58.7 cents in Pennsylvania. ... Based on average mpg and miles driven, a person owning a gasoline vehicle pays between $141 and $398 in fuel taxes each year, depending upon the state in which the fuel is purchased.” — DOE Vehicle Technologies Office, Dec. 2
“Parkland Fuel Corp. has rolled out a 94-octane gasoline in Canada. The company opened its third-quarter earnings call showing off its first Chevron-branded company gas station in Calgary, Alberta. … OPIS has learned that the fuel is marketed as ‘Supreme Plus’ and is dispensed out of a separate nozzle from multi product dispensers that also carry a 91-octane ‘Supreme’ gasoline, an 89-octane ‘Plus’ gasoline, and 87-octane regular gasoline. The Supreme Plus is ethanol-free.” — Oil Express Alert, Nov. 25

MEMBERSHIP APPLICATIONS
Colorado consulting firm. Palmetto Environmental Group LLC, 4995 York Street, Denver, CO 80216, applied for affiliate division membership. John Drafts is senior geologist/principal member for the company, which was established in 2003. Palmetto Environmental Group provides environmental compliance, testing, consulting and remediation at petroleum storage and dispensing facilities, as well as Phase I/II ESAs, SPCC plan inspections, AST integrity testing and UST removal services. Sponsored for PEI membership by Craig Hoyer, Kubat Equipment & Service Co., Denver, Colorado.
www.palmetto-environmental.com

Pennsylvania service company. Cribbs & Associates Inc., PO Box 44, Delmont, PA 15626, applied for affiliate division membership. Gary Cribbs is president of the firm, which was established in 2004. Cribbs & Associates performs installation and removal of UST systems in Pennsylvania. Sponsored for PEI membership by William Brandenstein, Steel City Fueling Systems Inc., Pittsburgh, Pennsylvania.
www.cribbsandassociates.com

Chile storage tank company. Maestranza e Ingenieria lo Espejo, Av. La Divisa 0649, San Bernado, Santiago 8060027, Chile, has applied for affiliate division membership. Christopher Ward is sales manager for the company, which was established in 1955. Maestranza e Ingenieria lo Espejo makes jacketed underground storage tanks and aboveground storage tanks. Sponsored for PEI membership by Andres Magini, Ingenieria y Proyectos W3G S.p.A., El Bosque, Chile.
www.mle.cl

ADMITTED TO PEI

• Dark Horse Enterprises Inc., Pasadena, Maryland (service and construction)
• DDS Environmental, Inc., San Dimas, California (service and construction)
• LoneStar Fueling, Katy, Texas (service and construction)
• Optimal Tank Solutions, Huntingtown, Maryland (service and construction)
• Relevant Fuel Solutions, Houston, Texas (service and construction)
• Moreau Services LLC, Harvey, Louisiana (distributor)
• International Drying Corp., Prairie Grove, Illinois (manufacturer)
• Sound Payments, St. Petersburg, Florida (manufacturer)
• Brian Decker, SC Fuels, Orange, California (operations and engineering)

© 2019
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

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.