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October 27, 2010 | Vol. 60, No. 21

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In This Issue
Dear PEI Member:

Agriculture Secretary Tom Vilsack used a National Press Club speech last week in Washington, D.C., to offer new financial incentives for the biofuels industry, including grants for new gasoline station dispensers and storage systems.

"Over time, a key missing link in the effort to meet the RFS2 goal has been and will continue to be the lack of convenient locations to obtain higher blends of biofuels. Convenience store operators and marketers remain reluctant to incur the cost of new pumps and tanks. USDA and other federal departments can and should offer help," Vilsack said.

"I have instructed Rural Development officials to provide financial assistance, using existing RD programs and resources, to provide matching funds to help install 10,000 blender pumps and storage systems over the next five years," he said. "Work will commence immediately on putting that program together."

In his speech, Vilsack also pledged to encourage "more use of biofuels in our [USDA's] fleet of almost 43,000 vehicles." USDA can move forward with the new programs without additional funding or approval from Congress, he said. 

The Agriculture Department plans to offer matching grants for the dispensers starting next year, reports the Des Moines Register. The Petroleum Marketers Association of America, citing a meeting it had with USDA officials a few weeks ago to offer ideas for expanding ethanol markets and the use of blender pumps, pledged its "support towards helping USDA and the Office of Rural Development implement the blender pump initiative."

USDA: Matching Funds for Biofuel Equipment

PEI Convention Summary

PEI's Service & Construction Managers Conference

FBO RP Committee Appointed

New Members

In This Issue

PEI and Industry Events »

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Attendance at PEI's annual convention in Atlanta was strong, and the current mood of PEI members at the convention was essentially one of guarded optimism. Exhibitors in the Petroleum Equipment & Services and Technology sections of the trade show commented favorably on the quality of the attendees and were pleasantly surprised with the number of visitors from Central and South America.

For the benefit of those who couldn't be with us in Atlanta, here is a brief summary of the convention's highlights.

Dennis Rethmeier, president of Western Pump, Inc., headquartered in San Diego, California, was elected to serve as the 61st president of PEI. On January 1, Rethmeier will succeed Peter H. Ward, president of Glasgow Equipment Service, Riviera Beach, Florida, in PEI's top elected position. Rethmeier is currently serving as PEI vice president.

Replacing Rethmeier as vice president will be Joey Cheek, president of JMP Solutions, Inc., headquartered in Tampa, Florida. Cheek has just completed his term as treasurer of the association, and has twice represented Distributor District 3 on the PEI board. Terry D. Cooper, president/COO of Acterra Group, Inc., headquartered in Marion, Iowa, was appointed treasurer of the association by the PEI Board of Directors.

Seven new board members were installed as members of the association's board of directors during the Atlanta convention. They are Scott Hafer, Hafer Petroleum Equipment, Reading, Pennsylvania (District 2); Tim Woofter, Stanwade Metal Products, Inc., Hartford, Ohio (District 4); Susan Gozdowski, Ampsco, Forest View, Illinois (District 6); Mark Cowie, White-Tucker Company, Houston, Texas (District 8); Eva Chambers, Veeder-Root Company, Simsbury, Connecticut (District 10); Brad Baker, Husky Corporation, Pacific, Missouri (District 12); and Brian Wiegert, Rounds & Associates, Urbandale, Iowa (Affiliate Division).

The buzz among convention attendees centered around the acquisition of Dresser, Inc., by GE and the anticipated decision by EPA to allow fuel that contains up to 15 percent ethanol (E15) in certain model year vehicles. Members' expectations for 2011 and 2012 ran the gamut from unbridled exuberance and optimism to hoping for the means to hang on until the economy improves.

The educational sessions planned by the 2010 Education Committee were top notch and well attended, with many playing to packed meeting rooms. Handouts for most of the sessions are available for free download at PEI's convention sessions and events page.

Members attending the PEI convention in Atlanta are encouraged to complete the brief convention survey. Your candid observations and recommendations are taken very seriously and will help us make next year's convention even better.

PEI will sponsor its 2011 Service and Construction Managers Conference March 31-April 2 at the Hilton Rosemont/Chicago O'Hare Hotel in Rosemont, Illinois. Individuals interested in serving on the planning committee for the conference should contact Bob Young at PEI. The planning committee's work is handled via telephone conference calls.

PEI President Peter Ward has appointed a committee to write Recommended Practices for the Design, Installation, Service, Repair, Maintenance and Decommissioning of Fixed Base Operator (FBO) Fueling Systems (PEI/RP1300). Members of the committee include:

  • Jim O'Day, O'Day Equipment, LLC (chairman)
  • Robert A. Becker, Becker & Associates, Inc.
  • Michael J. Brunmeier, Petro-Chemical Systems, Inc.
  • Mark Cowie, White-Tucker Company
  • A. Roy Creley, Lakes Region Environmental Contractors
  • Penelope Ellis, Syn-Tech Systems, Inc.
  • Arthur H. Hoffmann, A. H. Hoffmann, LLC
  • Charles Hubbard, Oil Equipment Sales & Service Co., Inc.
  • Gordon Johnson, Millennium Systems International, LLC
  • John B. Lindner, Epic Aviation, LLC
  • Ron McDowell, Facet International
  • Scott Milsted, Mascott Equipment
  • Thomas M. Riddle, TolTest Inc. Bulk Fuels
  • Steve Thickstun, Advance Fuel Systems, Inc.
  • Brian Wiegert, Rounds and Associates

Researchers from Norway have designed enzymes
called oxidohydrolases that will help to biodegrade the seemingly insoluble carbohydrate polymers in cellulose and chitin. These oxidohydrolases could make it both less costly and easier to produce cellulosic ethanol.―ScienceDaily, October 18, 2010.
"Petroleum refiners are weighing their options to file a lawsuit or seek legislation to overturn EPA's recent decision raising the amount of ethanol allowed in gasoline from 10 percent (E10) up to E15 in model year 2007 and newer cars, with refiners claiming the approval is premature and raises major liability and misfueling concerns."―INSIDE EPA, October 22, 2010.
Jones & Frank has relocated its Charlotte branch office. The new facility, which boasts a larger warehouse and dedicated training center, is located at 6701 Northpark Blvd., Suite B, Charlotte, North Carolina 28216. Phone: 704-393-8542. Fax: 704-393-8618.

At least two gasoline retailers in Iowa are already offering E15 to their customers. Popkes Car Care Center in Rock Rapids is offering E15 as one of five ethanol blend choices through a blender pump the company purchased two years ago in anticipation of the approval of E15. "E15 is rapidly becoming a popular fuel for our customers," said Greg Popkes. "It provides good fuel mileage and saves our customers money. Using ethanol creates jobs and keeps dollars in Iowa. Saudi oil companies don't pay Iowa taxes, but our ethanol plants do and we need to support them," Popkes said.

A New Century FS station in Vinton started selling E15 on October 22. Owner Kevin DeGoey took advantage of grant money provided by the Renewable Fuels Association to replace the 15-year old dispensers with blender pumps. When asked about the liability associated with misfueling, DeGoey told Radio Iowa that "there is some liability there, but we're a company that's pushing for renewable fuels and I think that's the direction we need to head."

California distributor
. Asesores Tec., Y Mant. de Est. de Ser. SA, 2345 Michael Faraway, Suite 6, Otay Mesa, San Diego, California 92154, has applied for distributor division membership. Jose Mauricio Nuñez Matrinez is owner of the firm, which was established in 2002. The company represents Ameron, Bennett, CentralIL, HuskyCorp, IRPCOinc, RedJacket and Universal. Sponsored for PEI membership by Bob Chase, Bennett, Spring Lake, MI.
North Carolina distributor. Petro Equipment Sales & Service, LLC, 131 Park Street, Canton, North Carolina 28716, has applied for distributor division membership. David McLean is vice president, sales for the firm, which was established in 2009. Petro Equipment Sales & Service sells, installs and services petroleum equipment. The company represents EmcoWheatn, Gilbarco, HighlandTk, HuskyCorp, LSI, RedJacket, ServiceWld, VeederR and Xerxes. Sponsored for PEI membership by Scott Jones, JonesFrank, Raleigh, NC, and Kirk N. Mercer, MercerCo, Jackson, MI.

Filtration system manufacturer.
Facet International, 9910 East 56th Street North, Tulsa, Oklahoma 74117, has applied for manufacturer division membership. Ron McDowell is engineering manager for the firm, which was established in 1942. Facet International manufactures filtration and separation products and systems which are sold through PEI distributors. Sponsored for PEI membership by Roy Creley, LakesReg, Belmont, NH.
Fuel filtration system manufacturer. Algae-X International, 5400-1 Division Drive, Fort Myers, Florida 33905, has applied for manufacturer division membership in PEI. Peter Schmeiser is in marketing for the firm, which was established in 2000. Algae-X manufactures systems for fuel filtration, tank cleaning, fuel polishing, and separation systems which are sold though PEI distributors. Sponsored for PEI membership by Steve Johansen, Leighton, White Hall, MD.
Specialty chemical manufacturer. Detergent Marketing Systems, 300 North Lake Street, Montgomery, Illinois 60538, has applied for affiliate division membership. James Chesser is CEO for the firm, which was established in 1984. The company manufactures over 400 specialty chemicals for c-stores, restaurants and commercial uses. Sponsored for PEI membership by Kirk N. Mercer, MercerCo, Jackson, MI. 


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Petroleum Equipment Institute
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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.