Dear PEI Member:
Government Accountability Office (GAO) released a report, DOE Lacks a
Strategic Approach to Coordinate Increasing Production with Infrastructure
Development and Vehicle Needs, June 11 stating that the Department of
Energy needs to develop a more comprehensive approach coordinating the
expansion of biofuels production with needed infrastructure and vehicle
Although ethanol and biodiesel production has been increasing rapidly, the
GAO report concluded that such fuels are unlikely to displace a considerable
amount of petroleum until less expensive production methods are developed.
The study said the main factor is the rising cost of the primary feedstocks— corn
and soybeans— which are also used for livestock feed and human food. In
addition to the higher cost of production, the higher wholesale price for
ethanol is attributable, to a certain extent, to the high demand for ethanol
caused by the MTBE phaseout, the report said.
The subject of biofuels infrastructure was front and center at a biofuels
conference I spoke at last week at the U.S. Department of Commerce. The
private conversations with many of the attendees echoed the bottom-line
conclusion of the GAO report: E85 use will not grow until E85 is less
expensive than gasoline and more widely available. That is not expected to
happen anytime soon. Until it does, ethanol’s impact will be as a 10 percent
blend in gasoline, and not an E85 fuel.
The California Air Resources Board adopted a resolution last week requiring
refineries making gasoline sold in the state to blend their gasoline with 10
percent ethanol beginning December 31, 2009.
The Indiana Department of Environmental Management (IDEM) has initiated a
rulemaking that will consider amendments concerning requirements for Stage I
vapor recovery systems at gasoline dispensing facilities. Stage I is
currently required at all facilities built after July 1, 1989, that have a
monthly throughput of 10,000 gallons per month or greater. The amendment
would require Stage I vapor recovery at all gasoline dispensing
facilities which have a monthly throughput of 10,000 gallons per month or
greater. A First Notice of Comment Period will appear on-line in the Indiana
www.in.gov/legislative/register/irtoc.htm on June 27, 2007.
H.B. 745 was signed by Governor Martin O’Malley last month. It requires that
at least half of state-owned, diesel-fueled heavy equipment and half of
oil-fired heating equipment in state buildings use a blend that is at least
5 percent biodiesel, beginning in 2009, subject to availability and with
exemptions for equipment whose warranty would be voided if damaged by such
GAO Ethanol Report
OSHA Proposes New PPE
It's All About the Equipment in Atlanta this November
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Deadline for submission of industry data (brief questionnaire, income
statement and balance sheet) for the survey is June 30. The Distributor
Profitability Report generated from the responses to the survey is the best
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download the survey or visit Questionnaires at
RP600 Comments. A draft of PEI’s Recommended Practices for
Overfill Prevention for Shop-Fabricated Aboveground Tanks (PEI/RP600-07)
is available for comment and can be viewed at
www.pei.org/RP600. Written comments are due by July 6.
PEI District Elections. Ballots used to elect members to the PEI
Board of Directors were mailed June 21 to the official representatives of
PEI member companies in the odd-numbered districts and affiliate division.
Ballots must be returned to Jim O’Day, PEI Election Chairman, by July 12 to
PETROLEUM MARKETING NOTES
GPM Investments LLC,
Mechanicsville, Virginia, has acquired a 58-store chain with locations in
and Tennessee. GPM currently operates 145 stores under the Fas Mart or Shore
EZ Energy USA Inc., has purchased Harper Oil Co., Springfield,
Illinois. Harper Oil has 26 convenience stores doing business as Harper On
the Way. The deal is expected to close this summer.
“Shell’s 550 or so wholesalers build about 200 new stations a year;
the company would like to see that number double within the next three to
five years, says wholesale VP Hugh Cooley.”—Oil Express, June 22,
The Michigan Department of Environmental Quality
said it is seeking $869,150 in penalties from BP Products North America
Inc. for failure to submit required reports on leaking underground
storage tanks at eight service stations across the state. The stations are
all current or former corporate-owned BP or Amoco locations.
Brazil’s state-run oil firm Petrobras and the Nigerian National
Petroleum Corporation (NNPC) signed a deal under which Petrobras will
supply ethanol to Nigeria and train NNPC employees to implement a government
program to blend 10 percent ethanol into regular gasoline.
OSHA PROPOSES TO
UPDATE PPE STANDARDS
Department of Labor’s Occupational Safety and Health Administration (OSHA)
is proposing to revise the personal protective equipment (PPE) sections of
its general industry standards regarding the use of eye and face protective
devices, head protection, and foot protection.
OSHA is proposing to replace the existing references to specific consensus
standards with performance language requiring PPE to be constructed in
accordance with good design standards. The proposed revision includes
guidance for determining what is a good design standard. In addition, OSHA
is proposing to add non-mandatory appendices that list standards
constituting good design standards as used in the requirement.
These proposed revisions are a continuation of OSHA’s effort to update or
remove references to specific consensus and industry standards located
throughout the Agency’s standards.
UPP Systems of
with a U.S. sales office in Cresskill, New Jersey, has hired Mark K. Mays as
vice president, sales and marketing for North America. Mays can be reached
at 2715 Turpinknoll Court, Cincinnati, Ohio 45244. Phone: (513) 231-7840.
Carolina Products, Inc., Charlotte, North Carolina, has appointed
Lucas Ford Associates, Tampa, Florida, to represent the company in the
Southeastern United States and Peiker/Piatchek, St. Louis, Missouri,
to represent Carolina Products in Missouri, Kansas, Nebraska, Iowa and
Steel tank manufacturer.
Granby Steel Tanks, 1020 Rue Andre Line,
Granby, Quebec J2J
1J9, has applied for manufacturer division membership. Maire-Claude Chopin
is an executive assistant for the firm, which was established in 1954.
Granby Steel Tanks manufactures steel tanks which are sold through
distributors. Sponsored by Wayne Geyer, STI, Lake Zurich, IL.
Cleaning products manufacturer. Environmental Network Inc., 303 South
Main Street, Suite B, Goodlettsville, Tennessee 37072, has applied for
manufacturer division membership. Steve Meske is director of sales and
marketing for the firm, which was established in 1996. The company
manufactures environmentally-safe, commercial-grade cleaning products based
on bioremediation technology, which are sold through distributors. Sponsored
by David Fiala, SalesForce, Maitland, FL. Ambassador: David Fiala.
Site power problem analysis and design firm. R. M. Stoof &
Associates, Inc., P. O. Box 101624, Pittsburgh, Pennsylvania 15237, has
applied for affiliate division membership. James Stoof is vice president and
sales manager for the firm, which was established in 1993. The company
provides site power protection, premise wiring, systems integration,
security systems installation, site power problem analysis and design
consulting. Sponsored by Richard J. McLaughlin, ReitzPA,
installation and repair firm.
Markgraf Construction, Inc.,
P. O. Box 2713,
Universal City, Texas 78148, has applied for affiliate division membership.
Tracy Markgraf is vice president of the firm, which was established in 2001.
The company installs, repairs and removes underground and aboveground fuel
tanks. Sponsored by Fred Monroe, Monroe, Arlington, TX. Ambassadors: Chris
Monroe and Rhonda Hoopingarner,
& Monroe, Arlington, TX.