Here is %full_individual_name%'s Tulsaletter
August 4, 2010 | Vol. 60, No. 15

respond | preferences | login | unsubscribe

In This Issue
Dear PEI Member:

U.S. Representatives Mike Ross (D-AR) and John Shimkus (R-IL) introduced the Renewable Fuels Marketing Act of 2010 (H.R. 5778) on July 20. The legislation would allow existing fueling equipment to be deemed compatible with any future-approved fuels, including E15, as well as protect petroleum marketers in the case of misfueling.

H.R. 5778 would establish guidelines by which equipment could be evaluated and then determined to be legally compatible with renewable fuels. Specifically the measure requires that:

Not later than one year after the enactment of the Renewable Fuels Marketing Act of 2010, the [EPA] Administrator shall issue guidelines for determining whether underground storage tanks and associated dispensing equipment are compatible with any fuel or fuel additive that is authorized by the Administrator or by statute for use in a motor vehicle, nonroad vehicle, or engine. Guidelines issued under this subsection shall apply with respect to existing underground storage tanks and associated dispensing equipment and with respect to new underground storage tanks and associated dispensing equipment. Underground storage tanks and associated dispensing equipment that, as of the date of enactment of this section, have been listed by a nationally recognized testing laboratory as compatible with a fuel or fuel additive . . . shall be deemed compatible under the guidelines issued under this section.

As this bill works its way through Congress, we'll learn more about the practical effect of this language. For instance, does "guidelines" mean "testing"? How will the fire codes recognize approval from groups other than national testing laboratories? What happens to testing labs like Underwriters Laboratories? Is a year realisticand soon enough? How long will the equipment evaluation on legacy equipment take, if that is to occur? Is that work already being done by the national laboratories like Oak Ridge? And will this legislation be supported by the small engine manufacturers?

Renewable Fuels Marketing Act of 2010

SPCC Deadline Extension?

Dodd-Frank Bill Signed Into Law

In This Issue

PEI and Industry News »


return to top of page


Respond to this Newsletter

by e-mail to the editor, Robert Renkes at

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

This action is precipitated by EPA's anticipated two-stage approach to approve E15 this fall. EPA indicated in July that the agency is likely to grant a partial waiver for E15 blends for model year 2007 and newer vehicles in September 2010 and another in late November for 2001 - 2006 models after the Department of Energy completes all of its testing. 

The legislation is supported by both the ethanol industry and those in the business of bringing fuel to American drivers. Support for the measure has been expressed in a letter signed by PMAA, NACS, SIGMA, NATSO and the Renewable Fuels Association (RFA).  

Friday, August 13 is your lucky day! PEI members who register for the 2010 PEI Convention by August 13 can save up to $200 (nonmembers can save up to $100). Group registration discounts of up to 40 percent (five or more attendees) also expire August 13. This year's convention (October 5-8 in Atlanta) celebrates the 60th anniversary of PEI and includes a rich array of speakers; more than 500 exhibit booths featuring the latest technology, products and services; and exceptional networking opportunities.

PEI's headquarters hotel for the October 5-8 event is the beautiful Hyatt Regency-Atlanta. Additional room blocks are available at the Westin.

Reserve your room and choose the registration option that fits your needs, schedule and budget; just remember to do it by Friday, August 13, to receive these big discounts. For more information or to register, click here.

The U.S. EPA issued a proposed rule July 28 that would extend the current November 10, 2010, compliance deadline for SPCC plan revision and implementation for one year―until November 10, 2011. If the deadline is moved back to 2011, it will mark the seventh time that the SPCC rule has been extended since August 16, 2002, the original compliance deadline set by EPA.

If you are a distributor member who is looking for tools to manage growth and increase profitability, you are encouraged to participate in the PEI Distributor Profitability Survey that is currently underway. Participants in the survey will receive a online Profit Toolkit that will assist you in your planning. This is available only to distributors who participate in the survey.

The original deadline of August 1 has come and gone. With only 55 members participating through that date, we have extended the deadline until August 30. The Profit Planning Groupthe company that crunches the numbers for PEI and writes the reporttells us that our industry needs at least 90 participants to make the results statistically valid. The information will continue to be made available to PEI distributors only if members participate. The Distributor Profitability Report, which is also provided free of charge to participating PEI members, has been the best benchmarking source in our industry for nearly three decades.  The survey is available for download from our website or obtained by emailing

President Obama signed the Dodd-Frank Wall Street Reform bill into law last week. Under the law, retailers may now offer customers discounts on the form of payment such as cash, check, credit card and debit card. In addition, the legislation directs the Federal Reserve to issue rules by April 2011 to ensure that debit card interchange fees―swipe fees―are reasonable and proportional to the processing costs incurred.

A Congressional Budget Office (CBO)
report has found that the 45˘/gallon excise tax credit―known as the Volumetric Ethanol Excise Tax Credit (VEETC)― that has been used for years to support the ethanol industry no longer works as intended to increase production. Congressional mandates passed in 2005 and 2007 now determine the levels of future ethanol production through a renewable fuels standard.
EPA has outlined its proposed 2011 renewable fuels standard (RFS2) requirements to include 800 million gallons of biomass-based diesel, 1.35 billion gallons of advanced biofuel, 13.95 billion gallons of renewable fuel, and somewhere between 5 and 17.1 million gallons of cellulosic biofuel. The cellulosic biofuel projections are far less than the 250 million gallons Congress mandated.
BP's North American biofuels subsidiary will spend $98.3 million to take full control of its joint venture with Verenium by acquiring Verenium's 50% stake in cellulosic biofuels and cellulosic enzyme technologies as well as its Jennings, Louisiana, and San Diego, California, facilities. 

Payments to owners or operators of underground tanks from state financial assurance funds or other state UST reimbursement programs are included in gross income under IRC Section 61(a), the Internal Revenue Service said in a memorandum (LMSB-4-0710-020) posted on its website July 14.
New York
. A new law signed by Gov. David Patterson (D-NY) mandates the use of 15 ppm ultra-low sulfur heating oil effective July 1, 2012.

Les Gray & Company, Inc.
, Garland, Texas, is celebrating its 35th anniversary this year. Les Gray is president of the company.  
Anabi Oil Corp.
, Upland, California, has acquired Shell Oil Co.'s interests in 88 Shell-branded retail locations in California. This includes 15 leased locations and the right to supply 52 Shell-branded retail locations owned by independent open dealers.

A dedicated ethanol pipeline from the Midwest to the East Coast may require financial incentives from the federal government, according to a Department of Energy study released July 19. The study found that increasing demand for ethanol to 4.1 billion gallons per year by allowing use of blends containing greater than 10 percent ethanol (or expanding the use of E85) would make the pipeline economically feasible without major financial incentives. "A pipeline delivering this volume will be able to charge a competitive market rate and still provide sufficient investor return," the study said.

Coles Marsh
retired from Jones & Frank in May. A 37-year veteran of the petroleum equipment industry, he will continue to provide sales support to the Jones & Frank team until May 2011. Coles has served on the PEI Board of Directors, several association committees, and as PEI president in 1998. He plans to work as a sales agent for Transaction Financial Services, an independent sales organization specializing in business-to-business and business-to-government processing. He can be reached at One Texas Avenue, Milton, Delaware 19968-9511. Cell: 410-370-2153.

An article on page 17 in the printed edition of the 3rd Quarter issue of the PEI Journal mentions Congress' recent extension of a key biodiesel tax credit. In fact, while both the United States Senate and the House of Representatives have approved the extension, they did so in separate pieces of legislation, neither of which has been approved by the other body. As a result, the credit, for now, has not been officially reinstated. For a more clear description of the current status, view the online version of the article at

Costa Rica distributor
. Empress Equipsa Tica, S.A., Tibas, del cruce de Colima, 400 mts Oeste, San Jose, Costa Rica, has applied for distributor division membership. Roycers Domingo Urbina Cerna is operations manager for the firm, which was established in 2003. The company represents Catlow, Cim-Tek, Davis, Gilbarco, Goodyear, HoseMaster, IRPCOinc, Natl-Spencr, OPW-FC, RedJacket, Tronitec and Zeppini. The firm also maintains equipment for service stations in Central America. Sponsored for PEI membership by Eva Chambers, VeederR, Simsbury, CT.  
Facia and sign provider
. Neon Nieto S.A., P. O. Box 3499-1000, San Jose, Costa Rica 1000, has applied for service and construction division membership. Arnoldo Nieto is vice president and general manager for the firm, which was established in 1937. Neon Nieto is a sign company that specializes in corporate identity for firms operating in Central America, Panama and the Caribbean. Sponsored for PEI membership by David Cescon, NovycElec, Dorval, PQ.   
Cleaning and maintenance product manufacturer
. Shore Corporation, 2917 Spruce Way, Pittsburgh, Pennsylvania 15201, has applied for affiliate division membership. Debra Ignacz is account manager for the firm, which was established in 1982. The company manufactures cleaning and maintenance products for convenience stores, service stations and car washes. Sponsored for PEI membership by John Radu, Riverside, Vienna, OH.
Fuel dispensing equipment repair company. P&L Gas Dispensers, LLC, 2210 Pech Road, B1, Houston, Texas 77055, has applied for service and construction division membership. Pedro Navarro is manager of the firm, which was established in 2003. The company sells, installs and repairs fuel dispensing equipment. Sponsored for PEI membership by Doc Boheme, BottomLine, Osakis, MN.


  • Kurt Karlson, Whatcom Transit Authority, Bellingham, WA (O&E)


Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute. To unsubscribe by email click here or manage all your newsletter subscriptions online at

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2010 All rights reserved.

return to top of page

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.