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April 22, 2009 | Vol. 59, No. 10

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Dear PEI Member:

The Environmental Protection Agency (EPA) is seeking public comment on a waiver application to increase the amount of ethanol that can be blended into a gallon of gasoline up to 15 percent by volume (E15). Since 1978, the limit has been set at 10 percent by volume ethanol (E10) for conventional (non flex-fuel) vehicles.

Growth Energy and 54 ethanol manufacturers submitted the E15 application to EPA on March 6, 2009. The Clean Air Act calls for EPA to make a decision within 270 days of receipt, which is December 1, 2009.

Section 211(f)(1) of the Clean Air Act makes it unlawful for any manufacturer of any fuel or fuel additive to increase the concentration of any fuel or fuel additive for use in motor vehicles manufactured after model year 1974 which is not "substantially similar" to any fuel or fuel additive utilized in the certification of any model year 1975 (or subsequent) vehicle or engine.

Section 211(f)(4) of the Act provides that the EPA Administrator "may grant a waiver for a prohibited fuel or fuel additive if the applicant can demonstrate that the new fuel or fuel additive will not cause or contribute to engines, vehicles or equipment failing to meet their emissions standards over their useful life."

EPA makes it clear in its notice that the effect of increasing the ethanol blend on existing (legacy) petroleum marketing equipment "is not a specific criterion by which to evaluate a waiver request under section 211(f)." However, EPA recognizes the potential problem with legacy equipment and "seeks comment on the effect of a potential waiver for ethanol blends above 10 percent and up to 15 percent on existing fuel programs" such as underground storage tanks and the petroleum marketing infrastructure.


Ethanol Waiver Application


PEI Seminar May 6 in Atlantic City

In This Issue

PEI and Industry Events »


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If you are a manufacturer of petroleum equipment, EPA wants to know if your legacy equipment will be compatible with ethanol blends up to E15. What scientific proof do you have, one way or the other? Will your warranty be extended to blends up to E15, or will they be voided?

If you are a distributor or installer of equipment, what practical problems do you anticipate from fire marshals and other code enforcing entities whose codes require equipment in petroleum service to be "listed" when it is clear that legacy equipment will not be listed for increased ethanol blends?

PEI members are encouraged to respond to EPA with their comments. The comment period will be open for 30 days after the notice is published in the Federal Register, which is expected on or about April 22. Here is a link to the FR notice with details on how to respond:

Please copy Bob Renkes ( with your responses. If you would rather PEI respond collectively for you, please direct your comments to Bob and he will include them, without attribution, as part of PEI's comments.   

For more information on the E15 request, go to

WikiPEI, PEI's new online reference site, is now available at More than a dictionary or an encyclopedia, WikiPEI is a comprehensive database of information about the petroleum equipment industry referencing terms, products, companies and the history of our industry.

WikiPEI is much like its famous cousin Wikipedia. It is designed to accept online editorial submissions and changes from visitors to the site. WikiPEI is moderated by PEI staff to restrict offensive language and derogatory comments about any person or product. The rest is up to you and others with an interest in the petroleum equipment and liquid handling industry.   

You can add new material or edit existing material on WikiPEI right now. It is available free of charge. There is no need to register. To get started, click the WikiPEI tab in the upper right hand corner of PEI's home page

PEI partnered with four regional trade shows in 2009 to sponsor workshops for PEI members exhibiting in and attending the shows. This is an opportunity to foster the PEI community on a regional basis, especially for members who are unable to attend the annual PEI convention. The last of these four workshops will be presented May 6 at the Atlantic Region Energy Expo (AREE). The topic is Profit Myths in Wholesale Distribution and will be presented by John MacKay. The session will examine some of the major myths about profitability and how they can harm distributors. All participants will receive an Excel template to help them understand how incorrect thinking impacts profits in their own firm.

Aventine Renewable Energy Holdings
has filed for Chapter 11 bankruptcy. The Illinois firm operates 207 million gallons of ethanol capacity and is one of the leading producers and marketers of ethanol in the United States. Aventine recorded a $47 million loss last year after earning $34 million in 2007.
EZ Fuel & Tank Solutions, Duluth, Georgia, and Blue1 International of Belgium have reached an agreement where EZ Fuel will manufacturer and distribute in the United States similar DEF storage and dispensing systems used throughout Europe. The owners of EZ Fuel have formed a new company, Blue1USA, to provide DEF equipment for the SCR industry.
Suggested changes to PEI's Recommended Practices for Vapor-Recovery Systems
(PEI/RP300-04) will be accepted through May 15. The revised document will also include a new chapter on the decommissioning of Stage II vapor recovery systems, along with a decommissioning checklist. You can read RP300 and download the decommissioning chapter at

John Aguilar
, salesman for Petroleum Marketing Equipment (PME), Placentia, California, died April 10 in Covina after suffering a heart attack earlier in the day. He was 50. He began work at PME in 2002 and was named PME Salesman of the Year in each of the last three years. John is survived by his wife, Lucille, a daughter and two sons.   

Pump and transfer dispensing system manufacturer
. Horn GmbH & Co. KG, Munketoft 42, Flensburg, D-24937 Germany, has applied for manufacturer division membership. Britta Roeloffs is assistant to the CEO for the firm, which was established in 1944. The company manufactures pumps, fueling dispensing systems, liquid management systems, and tire pressure equipment. The equipment is sold through distributors. Sponsored for PEI membership by Karsten Ehlers, ELAFLEX, Hamburg, Germany.
Transfer pump manufacturer
. Flowserve Pump Co., 5599 East Holmes Road, Memphis, Tennessee 38118, has applied for manufacturer division membership. Richard Hines is sales manager for the firm, which was established in 1967. The company manufactures transfer pumps for the agricultural and chemical industries. The pumps are sold through distributors. Sponsored for PEI membership by Steve Murray, TotlConSys, Fort Wayne, IN.
Storage tank manufacturer. Snyder Industries, Inc., P. O. Box 4583, Lincoln, Nebraska 68504, has applied for manufacturer division membership. John Wobig is eastern account regional manager for the firm, which was established in 1957. The company manufactures polyethylene storage tanks for use in the industrial and agricultural markets. The tanks are sold through distributors. Sponsored for PEI membership by Dennis Walls, MidwestNE, Lincoln, NE.
Colombia installation and service contractor. Combustion & Fuel - Service & Improvement, P. O. Box 140148, Cajica, Colombia, has applied for service and construction division membership. Fernando Santos is director for the firm, which was established in 2003. The company specializes in fuel improvement, inspection and maintenance of fuel tanks. Sponsored for PEI membership by J. Gregory Hockman, HockmnLews, West Orange, NJ.
Colorado installation and service firm. JHL Industrial Services, 7076 South Alton Way, Building H, Centennial, Colorado 80112, has applied for membership in the service and construction division. Steve Hoffman is project manager for the firm, which was established in 2006. The company installs industrial and commercial petroleum systems, and installs and removes tanks. Sponsored for PEI membership by Fred Seymour, J8EqpCo, Denver, CO.
Florida installation and service contractor. Kandras Construction & Management Inc., 4113 SW 1st Court, Plantation, Florida 33317, has applied for service and construction division membership. John Kandra is owner of the firm, which was established in 2002. The company is a general contractor and installs underground and aboveground storage tanks. Sponsored for PEI membership by Fred Monroe, Monroe, Arlington, TX, and Christine Schutt, TriCntyFL, Davie, FL.
Florida environmental consulting group. Mott-Smith Consulting Group, LLC, 2268-2 Wednesday Street, Tallahassee, Florida 32308, has applied for affiliate division membership. Marshall T. Mott-Smith is president of the firm, which was established in 2008. The company provides solutions for storage tank management issues. Sponsored for PEI membership by Mark Mays, PtrTechnik, Cincinnati, OH.
DEF producer. Kruse North America, 3511 Silverside Road, Suite 203, Wilmington, Delaware 19810, has applied for affiliate division membership. Tom Katchmark is responsible for new business development for the firm, which was established in 1930. The company sells and markets DEF (urea fluid) with a full line of containers, dispensing equipment and bulk stations. Sponsored for PEI membership by David Crouse, OPW-FC, Hamilton, OH.


  • Jeremy Dugas, Dugas Oil Company, Franklin, LA (O&E)


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Petroleum Equipment Institute
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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.