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August 24, 2009 | Vol. 59, No. 19

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In This Issue
Dear PEI Member:

PEI's 59th annual convention will be held October 21-23 at the Las Vegas Convention Center.

Exhibit space for the joint trade show with NACS is nearly sold out. This year in Las Vegas there are currently 187 companies exhibiting petroleum marketing equipment and/or services in 508 booths. Visit our Exhibits page for a list of exhibiting companies and a floor plan.

The educational sessions at the PEI convention are selected each year by the PEI Education Committee. In past years, the sessions were heavy on the business management side. While there are still some management sessions offered in Las Vegas, the convention program has a greater-than-usual emphasis on industry-specific topics designed to appeal to all PEI members. Here are the titles of what you will hear at the 2009 PEI Convention.

  • Life is a Verb: 37 days to Wake Up, Be Mindful, & Live Intentionally (Kick-Off Breakfast, Wednesday, October 21)
  • E15: Are We Ready? (Wednesday, October 21)
  • Biofuels: An Overview (Wednesday, October 21)
  • The Storage, Dispensing and Handling of Diesel Exhaust Fluid (Wednesday, October 21)
  • Blood Pressure, Cholesterol and Business Valuations (Wednesday, October 21)
  • Asset Protection (Wednesday, October 21)
  • The Latest on PCI Compliance (Wednesday, October 21)
  • Making It Through "The Great Recession" (Thursday, October 22)
  • PEI Member Outlook: 2010-2011 (Thursday, October 22)

Click here for more detailed descriptions of the sessions.

PEI members must register by Monday, August 31, to receive the maximum discounted rate. Registration through PEI entitles you to attend all PEI convention functions and the exposition, plus any NACS educational session, including the Closing General Session featuring former President Bill Clinton. Go to the Registration page for rates, options and to register now. Click here for housing information and a reservation form.

Underwriters Laboratories (UL), Northbrook, Illinois, is now providing a new certification path for fuel dispensers handling mid-level blends up to E25. Subject 87A-E25 was developed by UL because "there is increased potential for different types of damage to materials and components at blends above E25 and, as a result, there are more stringent requirements for dispensers for use with these higher blend levels," said Jeff Smidt, general manager global energy business for UL. "This new mid-level option, up to E25, provides another certification path and can help facilitate the distribution of ethanol blends in the market," he said.

The addition of Subject 87A-E25 means that UL can now provide three certification paths for dispensers of pre-blended fuels. The other two are:

PEI Convention In Las Vegas

UL to List Equipment for Mid-Level Ethanol Blends

PEI Board Election Completed

Consumer Fuels & Vehicle Choice Act


In This Issue

PEI and Industry News »

The New PEI Journal
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  • Gasoline and ethanol fuel blends up to E10 (UL87), and
  • Gasoline and ethanol fuel blends up to E85 (Subject 87A-E85).

UL added a listing for mid-level ethanol blends up to E25 to "help assure that mid-level pre-blended fuels, if adopted, can be safely dispensed," according to an August 10 press release.

Retail petroleum marketers that we spoke with are not very enthusiastic about UL's decision to certify dispensers for blends up to E25. An article in the August 14, 2009, PMAA Weekly Review does an excellent job in summarizing the attitude of its members and those marketers we talked to last week:

The new UL E25 standard may prove to be problematic for retail marketers should the E10 maximum blend be lifted or waived by the EPA. The absence of an alternative UL certification (other than costly E85 dispensers) for mid-level dispensers was a powerful argument against a wide scale retrofit of existing E10 dispensers should the EPA authorize an E15 blend. The lack of a viable alternative prompted the UL to issue a statement earlier this year that existing E10 equipment was compatible for E15 use. Now that a UL dispenser certification capable of handling an E15 blend has been developed, there may be more pressure from regulatory authorities to change out existing E10 dispensers for mid-level pumps if the EPA authorizes a higher ethanol blend for conventional fueled vehicles.

Runoff elections have been completed in PEI Distributor District 9 and in the Service & Construction Division. The two newly-elected directors, together with six directors elected earlier, will join seven incumbent directors on the PEI Board of Directors. The eight new directors will be installed October 22 as members of the PEI board during the association's membership meeting and lunch at PEI's convention in Las Vegas. The two members elected last week to the PEI Board of Directors are:

  • Bill Mascott, Mascott Pump & Equipment Co., Portland, Oregon. He will represent Distributor District 9 and succeeds Bob J. Hill, Franzen-Hill Corporation, Tulare, California.
  • Terry L. Perry, Petroleum Solutions Inc., Raleigh, North Carolina. Perry will represent PEI's Service and Construction Division. He succeeds Steven Hamilton, Hamilton Service Co., L.L.C., Basehor, Kansas.

Senators Tom Harkin (D-IA) and Richard Lugar (R-IN) have introduced a new bill in the Senate known as the Consumer Fuels and Vehicle Choice Act of 2009. The legislation requires that 50 percent of all automobile and light duty trucks manufactured in the United States in 2011 and 2012 be dual-fueled vehicles. The bill would also require 90 percent of all vehicles produced in 2013 and afterwards be dual-fueled.

The bill also seeks to accelerate the use of ethanol blend pumps that would offer at least three different blends of ethanol, including blends ranging from zero percent ethanol to E85. Federal grants up to 50 percent of the total cost of installing blender pumps and storage tanks would be available, with $1 billion made available through 2014. "Major fuel distributors," defined as "any person that owns a refinery and directly markets the output of a refinery," would be required to install blender pumps according to a schedule described in the bill.

The auto industry has universally opposed flexible-fuel vehicle production mandates in the past and is certain to oppose this legislation. But something has to be done to meet the federal renewable fuels requirement, so this bill might get some attention. It has been referred to the Committee on Commerce, Science, and Transportation.

PEI has unveiled an improved online version of its quarterly magazine, the PEI Journal. The new digital edition offers the look and feel of a paper magazine, with the convenience of searchable text and clickable hyperlinks. It can even be downloaded for offline viewing. Users will find the digital edition easy to use―no additional software or plugins are required. Anyone with an Internet connection can view the magazine. Online features will eventually augment articles with interactive features, such as podcasts or video. To view the latest issue, search magazine archives or read online-only features visit

California service testing company
. Alltech Petro Inc., 17759 Buttercup Circle, Sonora, California 95370, has applied for service and construction division membership in PEI. Michael Dotten is president and CEO of the firm, which was established in 1989. Alltech Petro is a full-service testing company, providing testing services for vapor recovery, monitoring systems, and tank and line integrity. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Oakland, CA.


  • Sound Operating Services LLC, Lafayette, LA (mfr)
  • Grana Industria Publicitaria S.R.L., Rafaela, Santa Fe, Argentina (aff)
  • Mosbeck Comercio Importação e Exportação Ltda., Santana do Parnaiba, Brazil (aff)
  • New West Equipment Services Ltd., Calgary, Alberta (S&C)
  • Petroleum Construction, Jacksonville, FL (S&C)
  • FABTECH Industrial Services, Ponte Verda Beach, FL (S&C)
  • EEC, Inc., Indianapolis, IN (S&C)
  • Dale Greer, Rogers Petroleum Inc., Morristown, TN (O&E)
  • Tommy Hunt, Calloway Oil Company, Maryville, TN (O&E)
  • Scott Margherio, BJ's Wholesale Club, Inc., Natick, MA (O&E)
  • David Moore, BJ's Wholesale Club, Inc., Natick, MA (O&E)
  • Tim Pruitt, Rogers Petroleum Inc., Morristown, TN (O&E)
  • Steve Reckinger, Holiday Stationstores, Inc., Minneapolis, MN (O&E)
  • LeRoy Stocks, GasMart USA, Overland Park, KS (O&E)


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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.