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Ethanol groups, including Growth Energy and the Renewable Fuels Association (RFA), last week asked the U.S. Environmental Protection Agency (EPA) to increase one value the agency uses to forecast E85 consumption. The so-called “F-factor” weights the greenhouse gas (GHG) emissions of flex fuel vehicles (FFVs) that use E85.

Increasing the F-factor would help FFV manufacturers meet federal emissions and corporate average fuel economy (CAFE) targets. The change also would incentivize manufacturers to continue producing FFVs.

"Based on our discussion with automakers, it is clear that manufacturers will hesitate to invest in certain technologies, like FFVs, unless there is some assurance that those vehicles technologies will help enable CAFE and GHG standard compliance over multiple model years,” said Kelly Davis, RFA vice president for regulatory affairs. “Fuel blenders and retailers also need multi-year certainty regarding the likely mix of light-duty vehicles so that they may appropriately direct their investments in wholesale and retail fuel infrastructure."

Chris Bliley, senior vice president of regulatory affairs at Growth Energy, took a similar tone.

“Recent trends in government and private investment in biofuels infrastructure and updated data on E85 availability all lead to growth in higher biofuel blends,” Bliley said. “EPA should seize on that data to provide appropriate, immediate credit to automakers to continue to produce flex-fuel vehicles to run on these higher biofuel blends.”

The groups also said EPA’s methodology underestimates the number of E85 retailers in the U.S. RFA counts more than 5,000 such outlets. The EPA, which relies on data from the Department of Energy’s Alternative Fuels Data Center (AFDC), assumes only 3,600 E85 retailers.

E85 Incentives Sought

PEI Virtual Convention & Expo: Last-Minute Details

Bill to Ban New Gasoline Vehicle Sales

Fuels Institute Environmental Initiatives Report

SAE Wireless EV Charging Standard

Proposed PPP Disclosure Requirements

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

The ethanol and biofuels industry scored a big win earlier this year when the U.S. Department of Agriculture (USDA) announced up to $100 million in Higher Blends Infrastructure Incentive Program (HBIIP) grants for convenience stores, hypermarkets and fleet fueling facilities. In October, USDA awarded the first $22 million in HBIIP grants to 40 recipients in 14 states.

LAST-MINUTE DETAILS: PEI VIRTUAL CONVENTION & EXPO
Just five days remain until the 2020 PEI Virtual Convention & Expo. If you already have registered to attend the Nov. 10-12 event, watch for two important emails in the next few days:

• Tomorrow (Nov. 6): A link to a video walk-through of the platform and a tips-and-tools guide.
• Monday (Nov. 9): Your personal login instructions and a special pre-show edition of the PEI Convention Daily.

If you have not yet registered, there is still time. Watch this short video for the top five reasons you should join the fun next week. Then, register at www.pei.org/show.

BILL WOULD BAN NEW GASOLINE VEHICLE SALES BY 2035
Sen. Jeff Merkley (D-OR) and Rep. Mike Levin (D-CA) introduced the Zero-Emissions Vehicles (ZEV) Act of 2020, which would phase out sales of new gasoline-powered vehicles in 15 years.

Under the bill, a 50% ZEV sales mandate in 2025 would increase 5% per year through 2035. The bill defines a ZEV as “a passenger vehicle that produces zero exhaust emissions of any criteria pollutant, precursor pollutant, or greenhouse gas, other than water vapor, in any mode of operation or condition.”

During the 15-year phase-in period, automakers that cannot meet the ZEV targets could purchase credits from manufacturers whose ZEV sales exceed the minimum. All credits would expire in 2035.

FUELS INSTITUTE RELEASES ENVIRONMENTAL INITIATIVES REPORT
The Fuels Institute on Oct. 28 released Impact of Transportation-Related Environmental Initiatives.

The report summarizes 37 initiatives designed to reduce transportation emissions, with a detailed cost-benefit analysis of 14 of the initiatives.

The initiatives are grouped into four categories:

1. Emissions and fuel economy
2. Alternative fuels
3. Congestion pricing, tolls and telecommuting
4. Mobility

SAE PUBLISHES WIRELESS EV CHARGING STANDARD
SAE International published the first global standard for wireless electric vehicle (EV) charging equipment: SAE J2954: Wireless Power Transfer for Light-Duty Plug-in/Electric Vehicles and Alignment Methodology.

Wireless charging creates a magnetic resonance field between a transmitting pad on the ground and a receiving pad on the underside of the vehicle.

Some experts expect wireless charging to accelerate widespread EV adoption.

SBA PROPOSES NEW PPP LOAN DISCLOSURE REQUIREMENTS
The U.S. Small Business Administration is seeking public comments on a proposed Paycheck Protection Program (PPP) Loan Necessity Questionnaire for loans of $2 million or more. The nine-page questionnaire would require additional information and documentation from such borrowers. Under the proposal, the SBA may seek loan repayment if a borrower fails to complete the form or provide the required documents.

The comment period closes Nov. 25

BRIEFLY NOTED
“The U.S. Environmental Protection Agency is considering changes to labels for gasoline containing higher blends of ethanol, or E15, in an effort to appease the biofuel industry’s concerns that current labels discourage use of the fuel, according to four sources familiar with the matter.” — Reuters, Oct. 26

“[M]ore than 11,500 Exxon and Mobil stations across the country will usher in ‘point-and-pay’ smartphone technology at the gas islands before the close of this year, according to a recent announcement from ExxonMobil. Drivers tap their smartphone on a QR code sticker or use their camera to scan the QR code to pay. The customer authorizes payment using Apple Pay, Google Pay or the Exxon Mobil Rewards+ app and selects the fuel grade.” — Oil Express Alert, Nov. 2

“The U.S. government’s road safety agency is investigating complaints that the Chevrolet Bolt electric vehicle can catch fire. The probe by the National Highway Traffic Safety Administration covers nearly 78,000 Bolts made by General Motors from the 2017 through 2020 model years. The agency says in documents posted on its website Tuesday that it has three reports of fires that began under the rear seat while the cars were parked and unattended. ... The fire damage appeared to be concentrated in the battery compartment area, spreading into the passenger area.” — Associated Press, Oct. 13

PEI MEMBER NEWS
Fatboy Electric achieved the Diamond level in Associated Builders and Contractors STEP Safety Management System for the third consecutive year. Diamond is the highest level in the program, which evaluates 25 safety policies and processes.

JF Petroleum Group, a MidOcean Partners portfolio company, acquired McCon Building & Petroleum Services Inc., a petroleum equipment distributor, maintenance and construction provider based in Flower Mound, Texas.

Matrix Capital Markets Group Inc. announced the sale of Dixie Gas & Oil Corp.’s propane, petroleum and lubricant operations to Quarles Petroleum Inc. The business serves more than 10,000 customers in Virginia and West Virginia.

MEMBERSHIP APPLICATIONS
Florida installer. ABA-CON, 11 S. Brown Ave., Titusville, FL 32796, applied for service and construction division membership. Mary Ballard is secretary/treasurer of the company, which was established in 2008. ABA-CON designs, builds and installs aviation aboveground storage tank (AST) fuel systems. Sponsored for PEI membership by Roy Creley, Lakes Region Environmental Contractors, Belmont, New Hampshire.
www.aba-con.com

Idaho testing company. Wheeler Tank Testing, 760 W. 100 South, Blackfoot, ID 83221, applied for service and construction division membership. Kevin Patterson Wheeler is owner of the firm, which was established in 2015. Wheeler Tank Testing provides underground storage tank (UST) compliance testing and inspection services. Sponsored for PEI membership by Edward Kubinsky, Crompco LLC, Plymouth Meeting, Pennsylvania.

ADMITTED TO PEI

• Jack Hopkins, Combanc Development LLC, Raymore, Missouri (operations and engineering)
• Puentes Petrotech Corp., Palm Springs, Florida (service and construction)
• Fuel Oil Systems, Lathrop, California (service and construction)
• A&D Petroleum & Maintenance, Jacksonville, Florida (service and construction)

The TulsaLetter 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.