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February 26, 2009 | Vol. 58, No. 5

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In This Issue

Dear PEI Member:

The federal EPA has been in the process of revising its underground storage tank regulations for nearly a year (see June 2, 2008 TL). EPA concluded its initial outreach to stakeholders (including PEI) last fall and has now compiled a list of suggested changes to the regulations received from all groups. The complete list of over 250 separate changes covers rule applicability, closure, corrective action, definitions, delivery prohibition, operator training, secondary containment, financial responsibility, release detection, and release prevention.

It is important to note that EPA has neither decided on nor endorsed any of the ideas on this list. Over the next few months, EPA will narrow the list to include only changes "where the lack of regulations or lack of regulatory clarity may be causing an environmental harm."

PEI will meet March 3 with other stakeholders in the process to help EPA narrow the list. EPA anticipates the list will begin to be cut down after the first week in March.

We are interested in your feedback on these suggested regulatory changes. Email Bob Renkes ( with your top priority items to change and provide any supporting information that will help EPA demonstrate the need for that change. We will keep you posted as the list is updated.

Underwriters Laboratories (UL), Northbrook, Illinois, issued a statement last week announcing that it "supports Authorities Having Jurisdiction (AHJs) who decide to permit legacy system dispensers, listed to UL 87 and currently installed in the market, to be used with fuel blends containing a maximum ethanol content of 15 percent. UL stresses that existing fuel dispensers certified under UL 87 were for intended use with ethanol blends up to E10, which is the current legal limit for non-flex fuel vehicles in the United States under the federal Clean Air Act.

EPA Considers Changes to UST Regs

UL Statement on E15

Study on Corn Ethanol and Public Health

In This Issue

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However, data the company has gathered as part of the organization's ongoing research to investigate the impact of using higher ethanol blends in fuel dispensing systems supports that existing dispensers can be used with ethanol blends up to 15 percent."

UL advises authorities having jurisdiction to consult with the dispenser manufacturer to "confirm that the dispenser is compatible with the fuel to be dispensed." UL also stressed "that dispensers pumping this higher percentage of ethanol should be subject to regular inspection and preventive maintenance as specified by the dispenser manufacturer for the blend of fuel being dispensed because the potential for degradation of the metals and materials (e.g., plastics, elastomers and composites) used in a dispensing system increases as the percentage of ethanol increases."

UL's announcement is the first step of several that need to occur if the industry is to comply with the volume mandates of the Renewable Fuel Standard (RFS). It is important to note that UL simply "supported AHJs" who decide to permit dispensers listed under UL 87 to dispense ethanol blends up to 15 percent. As far as I can tell, UL did not certify UL 87 dispensers for use with blends above 10 percent. Here are some reasons why this announcement, by itself, will not solve any longstanding ethanol issues:

  • Some state and local fire marshals will require UL-listed or –certified equipment for dispensing blends over 10 percent. I don't think we have that here.
  • Insurance companies covering petroleum marketers may require UL-listed or UL-certified equipment for ethanol blends over 10 percent as well.
  • UL's announcement applies only to dispensers. It says nothing about equipment from the impact valve and below.
  • EPA has not approved any fuel above E10 for conventional-fuel vehicles. The automakers still claim that ethanol blends above E10 will damage engines and void warranties.

Ethanol derived from corn is more harmful to public health than either cellulosic ethanol or traditional gasoline, according to a new study published this month in the "Proceedings of the National Academy of Sciences." The study, conducted by researchers at the University of Minnesota, Stanford University, Argonne National Laboratory, and Cambridge-based Industrial Economics, concluded that corn ethanol has higher health costs resulting from emissions of fine particulate matter than gasoline. Cellulosic ethanol has the lowest cost of the three types of fuel, with prairie grasses imposing the very lowest burden on human health.

A number of recent studies have questioned the perceived environmental benefits of corn ethanol. This study adds a new dimension to the controversy by focusing on how corn-based ethanol can affect public health. With corn-based ethanol expected to rise in the coming years to meet the 2007 Energy Independence and Security Act, this new information will add fuel (no pun intended) to the debate. 

The Environmental Protection Agency (EPA) plans to implement its heavy-duty diesel emissions standards on schedule, an agency spokesman said February 11. The agency's statement was issued in response to a request by Navistar International to delay the implementation of EPA's diesel emissions standards, set to take effect in January 2010. Most truck manufacturers are complying using selective catalytic reduction (SCR), which uses a urea catalyst to convert nitrogen oxide emissions.

If you wish to submit a public comment on PEI's Recommended Practices for the Design and Maintenance of Fluid-Distribution Systems at Vehicle Maintenance Facilities (PEI/RP700-09), the comment closing date is March 18, 2009. Anyone interested in viewing and commenting on the draft document can download a copy and submit comments online from PEI's web site at

HBD/Thermoid, Inc.
, Bellefontaine, Ohio, has named David A. Schempp director of sales and marketing for the company. Schempp has nearly 35 years of experience in the rubber industry.
National-Spencer, Inc., Wichita, Kansas, has named Smith-Turnbow Associates, with offices in Arlington and Houston, Texas, as its 2008 Representative of the Year.
Husky Corporation, Pacific, Missouri, has added Sunbelt Industries and The Boston Group West to its sales team. Mike Piatchek will cover Colorado, Utah, southern Idaho, Montana and Wyoming for Sunbelt while Jay Boston will be responsible for southern California and southern Nevada for The Boston Group West. Husky has also expanded the territory covered by Rice-Christ to include Texas, Oklahoma and Arkansas.
William Robbins Associates, Inc., Lafayette, California, will represent Riverside Steel, Inc. in northern California and northern Nevada. Sunbelt Industries, Phoenix, Arizona, will represent Riverside in Arizona, New Mexico, southern California, southern Nevada, Colorado, Utah, Idaho, Wyoming and Montana.
Franklin Fueling Systems, Madison, Wisconsin, announced that Tony Almond has joined the organization as territory manager for Florida and southern Alabama. He can be reached at
Total Control Systems, Fort Wayne, Indiana, has hired Rob Born and Mike Kies. Born will work as an inside sales application and support manager while Kies will be the regional sales manager for the company's East Coast OEM and distribution network.

, Dallas, Texas, will "add 150 to 200 new stores in North America over the next three to four years, with even greater expansion envisioned in the long term. Some 20 stores are to be opened in the New York area alone this year."--CSP Daily News, February 16, 2009.
Bulk Petroleum Corp., Mequon, Wisconsin, has filed for Chapter 11 bankruptcy protection. Bulk Petroleum supplies gasoline to more than 200 gas stations.

Mongolia import firm
. MPI Consultants LLC, POB 13/263, Prime Minister Amar str-4, Internom Building Floor 4, Ulaanbaatar, Mongolia, has applied for affiliate division membership. Dolgorsuren Gansukh is general director for the firm, which was established in 2000. The company imports, installs and maintains equipment, and provides engineering services. Sponsored for PEI membership by Lucy Sackett, Gilbarco, Greensboro, NC.
California installation and construction company
. AVA Environmental Inc., 829 West Compton Boulevard, Compton, California 90220, has applied for membership in PEI's service and construction division. Antonio Verduzco is president of the firm, which was established in 2006. The company installs tanks and dispensers, and builds complete fueling facilities. Sponsored for PEI membership by Trinidad Martinez, TLMPetro, Downey, CA.
Florida installation and service company
. Petro Flow, Inc., P. O. Box 8010, Southport, Florida 34209, has applied for service and construction division membership. Dwain Sapp is the primary contact for the company, which was established in 2006. The company installs and services petroleum equipment at convenience stores, bulk plants and industrial facilities. Sponsored for PEI membership by Pete Turner, APSPtrEqp, Anniston, AL.
Oklahoma installation and service company. TriStar Petroleum Equipment Co., 416 Glade Avenue, Oklahoma City, Oklahoma 73127, has applied for service and construction division membership. Tom Swenson is president of the firm, which was established in 2006. The company installs petroleum marketing equipment, including tanks and piping. Sponsored for PEI membership by John Farrell, UntdPumpTX, Arlington, TX.
Texas service and installation firm. Lynd Fueling Systems, Inc., P. O. Box 861357, Plano, Texas 75086, has applied for service and construction division membership in PEI. Cameron Korneychuk is director of sales for the company, which was established in 1999. The company installs and services petroleum equipment. Sponsored for PEI membership by Al Eichorn, PMPCorp, Avon, CT, and Terry Christ, RiceChrist, Grand Prairie, TX.
Virginia installation and service company. C-First, Inc., P. O. Box 19157, Roanoke, Virginia 24019, has applied for service and construction division membership in PEI. Joshua J. Sparks is office manager for the firm, which was established in 2001. C-First installs, services and upgrades petroleum equipment. Sponsored for PEI membership by Forrest W. Allen, BairdEqp, Richmond, VA.


  • SHM Industries, Obour City, Cairo, Egypt (from the distributor to manufacturer division of PEI)


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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. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.