|Dear PEI Member:
Three important announcements were made late last month that affect the
marketing of mid-level ethanol blends. They include:
EPA delays the E15
waiver decision. The Environmental Protection Agency says it will wait
until this fall to decide whether vehicle engines can handle higher
concentrations of ethanol in gasoline. The agency had been expected to
decide by mid-year whether to increase the maximum blend from 10 to 15
percent. EPA said in its announcement that initial tests "look good" and
should be completed by the end of September. A decision will come after the
Energy Department completes the testing of the higher blend on vehicles
built since 2007. EPA said it is also testing some vehicles built before
2007 but will make a decision after the newer vehicle testing is completed.
DOE also is testing tanks and other fuel handling equipment to see how they
might be affected by E15.
Not only has the time frame been delayed, but the possible number of
vehicles involved has been reduced dramatically. at least in the short term. Originally, EPA had stated
they would make the decision for E15 for all vehicles made in 2001 or later.
In this most recent announcement, EPA said the decision would now only
include vehicles made in 2007 or later, lowering the number of affected
vehicles to 20 percent of the U.S. market. EPA stated that another
announcement about the use of E15 in older vehicles (i.e., made before 2007)
would come later in the fall.
This is the second time EPA has announced a delay on its decision on the
E15 waiver petition. The agency pushed the decision to this summer last
December, saying further testing was needed. Petroleum marketers contend
that other issues have to be resolved before retailers can feel confident about selling E15,
including misfueling liability issues; pump labeling requirements; fire code
and OSHA requirements; and the tank insurance state fund and business loan
agreements they have with third parties.
UL lists E85 dispensers.
Underwriters Laboratories (UL) has certified fuel-dispensing systems
designed to be used with ethanol fuel concentrations up to E85 (85 percent
ethanol; 15 percent gasoline). The fuel-dispensing system includes the
dispenser, hose, nozzle, swivel, breakaway, and shear valves. Both the
Gilbarco Veeder-Root Encore® and the Dresser Wayne Ovation® Eco fueling E85
dispensers have been certified.
The impact of the approval enables the petroleum marketing industry to
build the much-needed infrastructure to support ethanol with equipment that
is legal (approved) to operate. The question now will be what officials in
states that granted a waiver or variance (e.g., CA, CO, DE, IL, IA, MI, MO,
MN, NY, OH, OR, WV, WI) to use an alternate dispenser design that was not
listed by UL will do with the many dispensing systems currently in
Fire code amendment defeated. An amendment to the National Fire
Protection Association's (NFPA) Code for Motor Fuel Dispensing Facilities
and Repair Garages (NFPA 30A) that would have made it easier―and
legal―for service stations to dispense mid-level
ethanol blends (E15) using equipment that is not listed for E15 by a
nationally-recognized testing organization like UL was defeated by the
committee responsible for the document. The measure fell two votes shy of
the 75 percent majority vote needed to pass the amendment. Fire officials
who commented on the amendment thought that the proposed language was
ambiguous and not detailed enough to allow authorities having jurisdiction
to make informed decisions when reviewing legacy (i.e., existing) dispensing
devices for higher ethanol blends.
Mid-level Ethanol Blends
NCWM and Rebuilt Equipment
Price Posting Group Formed
Early registration discounts expires soon.
Surplus Videos Now Available
Save on VHS and DVD safety videos!
PEI and Industry Events »
Respond to this Newsletter
e-mail to the editor, Robert Renkes at
join the discussion in the
Petroleum Equipment Forum
unsubscribe or change preferences
The defeat of the amendment is thought by many industry observers to
have less of an impact now that dispensers listed by UL for concentrations
of fuel ethanol up to E85 are available. Furthermore, gasoline marketers who
have been using the equivalency section of the fire code to get non-listed
equipment approved for use with ethanol blends greater than E10 believe that
option will still be available to them.
NCWM TO CONSIDER PROPOSED CHANGE TO "REMAN" DEFINITION
A proposed change to the National Institute of Standards and
Technology's (NIST) Handbook 44 regarding the definition of remanufactured
devices could have a profound impact on our industry. The National
Conference on Weights and Measures (NCWM), meeting next week in St. Paul,
Minnesota, will consider verbiage that defines how fuel dispensers are
evaluated and the standard to which they must comply.
The proposal is a change to Section G-A-6 of Handbook 44, the publication
used by most weights and measures authorities in the United States. The
proposed changes are indicated below in bold text:
G-A.6. Nonretroactive Requirements. – “Nonretroactive” requirements are
enforceable after the effective date for:
(a) devices manufactured and remanufactured within a state after
the effective date;
(b) both new,
and used, and remanufactured devices
brought into a state after the effective date; and
(c) devices used in noncommercial applications which are placed into
commercial use after the effective date.
Nonretroactive requirements are not enforceable with respect to devices
that are in commercial service in the state as of the effective date or to
new equipment in the stock of a manufacturer or a dealer in the state as
of the effective date.
These may appear to be minor changes, but many believe they could have a
major impact on businesses that remanufacture fuel dispensers and their
component parts. PEI members and other observers have raised several
questions as this issue has been considered at various regional weights and
measures meetings across the country. For instance, they want to know:
- What type of equipment will this affect?
- How is a remanufactured device different from a used device? Remanufactured is
very close to a "repaired" device and repaired devices do not have to meet
the non-retroactive requirement. If a manufacturer brings back an old
device, fixes it up and markets it as a used device, is it remanufactured?
- Is there a better definition of what is "remanufactured?" Will this be
- Will all remanufactured devices require their own Certificate of
- What problem is this trying to solve? Some say the practice of
reconditioning equipment to meet the specifications of the original
Certificate of Conformance has been
going on for years and that these devices are used equipment and already
covered by Handbook 44.
The regional weights and measures entities are equally split on this
issue, with half in favor of voting on the change next week while the other
half recommends the Conference not vote but rather view this material as
"informational." PEI will attend the
National Conference on Weights and
Measures meeting in St. Paul and hopes to learn the answers to these
questions and report back to you. If you have other questions on this
issue that you would like us to raise, please
PRICE POSTING UNDER SCRUTINY BY NCWM
A new workgroup has been formed by the National Conference on Weights and
Measures (NCWM) to review current price posting and computing practices in
the retail motor fuel marketplace. Its primary task is to consider whether
any changes are necessary to Handbook 44 regarding price posting and
computing capability requirements for retail motor fuel devices. The group’s
first meeting will be held Sunday, July 11, at the National Conference on
Weights and Measures meetings in St. Paul, Minnesota.
PETROLEUM MARKETING NOTES
Retail gasoline operators in the United States enjoyed their best
January-to-June period for gross margins this century, according to a study
conducted by Oil Price Information Service (OPIS).
ConocoPhillips said it completed the sale of its 50 percent stake in
CKJ Properties-Flying J truck stops to Pilot Travel Centers
for $626 million.
BP PLC will sell 114 refueling stations and convenience stores
located in 22 states throughout the Midwest and East Coast as part of its
plan to divest itself from direct service station ownership.
Quarles Petroleum Inc., Fredericksburg, Virginia, has sold its retail
outlets―19 convenience stores and one truck stop―in
Virginia to various companies, including 14 to 7-Eleven Inc.
Casey's General Stores, Ankeny, Iowa, plans to expand by
approximately 60 to 90 stores in fiscal 2011. In addition, it will replace
20 stores and perform 20 major remodels. The company has recently signed
purchase agreements for real estate in Arkansas and currently has four or
five contracts to begin construction in the state.
Pilot Travel Centers LLC and Flying J Inc. announced the
completion of the merger of the two companies on June 30. The new company―Pilot
Flying J―owns and operates more than 550 interstate
travel centers and travel plazas in 43 states and six Canadian provinces.
Pilot Flying J is selling 26 locations to Love's Travel Stops & Country
Stores to meet a Federal Trade Commission condition to the
Catterton Partners, a private-equity firm, has announced that
Mid-Atlantic Convenience Stores (MACS) has acquired a majority
interest in the 44-location Uppy's Convenience Stores Inc. and 170
convenience stores and fueling stations from Exxon Mobil Corp. The
stores are located in Maryland, Virginia and Delaware.
PEI SEEKING FIND RED VOLUNTEERS AT CONVENTION IN ATLANTA
PEI invites members to greet and assist attendees in finding their way
around the convention center in Atlanta. Each Find Red volunteer
works a few hours and helps in areas such as registration, bus drop-off
locations, education sessions and receptions. Volunteers are provided a
"Find Red & Find PEI" vest to wear during the scheduled volunteer times that
run Tuesday-Thursday, October 5-7. For more information or to volunteer
Find Red & Find PEI page or contact Carletta Denison at
Pipe manufacturer. Advantage Earth Products, 317 Vicki Towers Lane, Saint
Augustine, Florida 32902, has applied for manufacturer division membership.
Georges Boyazis is president of the firm, which was established in 2009. The
company produces aboveground and underground pipe for the transfer of
petroleum products. The pipe is sold through distributors. Sponsored for PEI
membership by Marc Wiederhorn, ISPSystems, North Brunswick, NJ.
Software provider. Orchestra, LLC, 172285 SW Arborcrest Way,
Beaverton, Oregon 97006, has applied for affiliate division membership.
John-Michael Davis is vice president of operations for the firm, which was
established in 2008. The company provides fuel distribution software with
solutions that apply to all petroleum marketers, from the wholesale
distributor to the single-station owner. Sponsored for PEI membership by
James Phelps, CapitalOR, Beaverton, OR.
South Carolina convenience store construction company. Progressive
Builders, Inc., P. O. Box 4367, Greenville, South Carolina 29608 has applied for service and construction
division membership. Stephen Roach is vice president of the firm, which was
established in 1965. The company builds convenience stores and performs
associated petroleum work. Sponsored for PEI membership by Jeff Dailey, SoPmpTnkNC, Charlotte, NC.
Virginia service company. C-Mark, P. O. Box 566, Forest, Virginia
24551, has applied for membership in PEI's service and construction
division. Warner Hall is owner of the firm, which was established in 2007.
The company provides service and parts to its customers. Sponsored for PEI
membership by Brian Travis, GasStaSup, Lynchburg, VA.
ADMITTED TO PEI
- Berco Tank, Watertown, CT (dis)
- Percise Tank Modifications, Madison, PA (dis)
- Velcon Filters, LLC, Colorado Springs, CO (mfr)
- Robert Coker, Murphy Oil USA, El Dorado, AR (O&E)