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June 17, 2011 | Vol. 61, No. 12

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In This Issue
Dear PEI Member:

The White House's Office of Management and Budget (OMB) has approved the Environmental Protection Agency's (EPA's) E15 misfueling label rule and has returned it to EPA. Approval by OMB is the final step in the misfueling mitigation rulemaking process. We are told that some announcementperhaps in the form of a press release once the EPA Administrator signs the rule―could occur within the next several weeks. The industry would have to wait a few weeks longer if EPA times its announcement to coincide with the publication of its rule in the Federal Register.

What the pump label will say and how it will look (size, color, warnings, etc.) is still unknown at this time. It's important to note that several additional things have to happen before E15 can be sold to the public. One large and time-consuming step is the registration and certification of the fuel to meet ASTM D4806-10 standards. Sources close to the process expect that this might take until the end of 2011 to complete.

The New York State Department of Environmental Conservation (DEC) is currently in the process of revising 6 NYCRR Part 230 which would repeal Stage II vapor-recovery requirements for 3,000 gasoline dispensing facilities in the New York metropolitan area and lower Orange County. On May 25, DEC issued an enforcement discretion directive to relieve owners of gasoline dispensing facilities of compliance with the Stage II requirements in 6 NYCRR 230.2 and 230.5, provided the facilities:

  • Begin operation after January 1, 2011, and would otherwise be required to install a new Stage II system;
  • Become subject to Stage II requirements due to an increase in throughput after January 1, 2011, and would otherwise be required to install a new Stage II system; or
  • Decommission existing Stage II equipment in accordance with Stage II decommissioning procedures contained in the directive.

Gasoline dispensing facilities equipped with Stage II systems that are not decommissioned must continue to comply with existing Stage II requirements until the Stage II requirements are repealed by DEC.

A checklist that can be used to document the procedure followed to decommission a Stage II vapor collection system is included in the directive. PEI's decommissioning procedure and checklist are available at

Each year, PEI distributors have the opportunity to participate in the PEI Distributor Profitability survey, a detailed review that benchmarks financial statements to industry norms in expenses, gross margin and employee productivity.

The survey, distributed via email on May 31, consistently ranks as one of the most highly valued of all member benefits. The words of one longtime survey participant explain why:

"I have found that the Distributor Profitability survey is a very important tool for several reasons. Firstly, the survey gives a complete financial picture of the performance of your company for the year, which sets a base for developing a strategic plan—thereby enabling you to set goals to improve performance, identify weak areas and build on your strengths. Secondly, it provides a measure of your performance against the industry—keeping you acutely aware of your financial condition and providing comparative industry figures that are not available anywhere else."
--Rob Bateman, President, Western Oil Services Ltd.

All survey information is compiled by a third party and treated with complete confidentiality.

OMB Approves EPA's E15 Misfueling Label Rule

NY State to Repeal Stage II VR Requirements

PEI Distributors: Participate in Profitability Survey

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If you are a PEI distributor member and would like to participate in the survey, please contact Chris Bouldin at (918) 494-9696, ext. 964 or Additional details, including instructions on how to submit your information, are included in the questionnaire. The deadline to return your completed questionnaire is June 30, 2011.

The U. S. Senate voted 59-41 yesterday against a proposal that would have blocked federal funds to help pay for ethanol blender pumps and storage tanks at gasoline refueling stations. The Senate vote comes after the House of Representatives voted earlier in the day to prohibit the Agriculture Department from underwriting ethanol blender pumps and storage systems.

The U. S. Senate voted to end longstanding ethanol incentives by a 73-27 margin yesterday, just two days after the chamber rejected an identical measure. The Senate measure aims to eliminate the 45-cent-per-gallon ethanol blending credit midway through 2011 and end the 54-cent-per-gallon tariff on imported oil. Farm-state senators argued that the ethanol credits should be phased out, not terminated at once. The White House issued a statement saying it was against a full repeal of ethanol subsidies, indicating it could use its veto power if the amendment continued to advance through Congress.

Petroleum Solutions, Inc., (PSI)
, McAllen, Texas, has opened a new branch at 1533 South Treadaway, Abilene, Texas 79602. Overseeing sales and operations is Dru Hall, former owner of West Texas Service Station Equipment in Abilene. Email: Phone: (325) 676-2371.
Veeder-Root, Simsbury, Connecticut, has named Mark Maybee president of the company. He most recently served as the vice president of the Vapor Recovery Business Unit at Veeder-Root. 

The General Services Administration
announced that it will buy 101 Chevrolet Volts, 10 Nissan Leafs and five Think City EV models. The charging stations for government vehicles will be installed in Detroit, Los Angeles, San Diego, San Francisco and Washington, D.C., the Associated Press reports. 
Hertz Corporation will expand its Global EV initiative to Washington, D.C., adding Chevy Volts and Nissan Leafs to its fleet at Union Station. Hertz is making the EVs available to members of Congress, employees on Capitol Hill and the general public through its car-sharing program. The Hertz car-sharing program has approximately 30,000 members and is available in six countries and 54 university campuses.
Kwik Trip, La Crosse, Wisconsin, has installed 110-volt charging stations at 25 of its locations in Iowa, Minnesota and Wisconsin. The company intends to install electric charging stations at all new stores.Midwest Energy News.

A study conducted by VTT Technical Research Centre of Finland shows there is practically no difference between commercial petrol grades E5 and E10 sold in Finland with regard to fuel consumption in normal driving. The study showed that E10, which has a higher ethanol content, increases consumption by 0.7 percent over E5.

All new light-duty vehicles purchased by the federal government must be powered by alternative fuels by December 31, 2015, under a presidential memorandum on federal fleet performance issued May 24. In addition, the memorandum directs the General Services Administration to determine the optimal fleet size for all federal agencies within 90 days and provide agencies with recommendations for alternative-fuel vehicle acquisition and fleet optimization. Alternative-fuel vehicles include hybrid or electric vehicles or those that run on compressed natural gas or biofuels, according to the memorandum, which also requires that agencies locate alternative-fuel vehicles in proximity to fueling stations "as soon as practicable."

Lawmakers in the House of Representatives introduced the Open Fuel Standard Act of 2011 (H.R. 1687), which would require that 50 percent of new automobiles in 2014, 80 percent in 2016 and 95 percent in 2017, be warranted to operate on non-petroleum fuels in addition to, or instead of, petroleum-based fuels. The legislation promotes the use of flex fuel vehicles, hydrogen, electric plug-in, biodiesel and natural gas vehicles.

On May 27, the Propane Green Autogas Solutions Act of 2011 (H.R. 2014/S. 1120) was introduced to the House and Senate. The proposed legislation would extend existing tax credits for the purchase of propane autogas as a motor fuel, the purchase of propane autogas vehicles and the installation of propane autogas refueling infrastructure through 2016.  

Charley Sunderhaus
, risk manager and technical liaison for OPW Fueling Components, is retiring June 30 after over 38 years with the company. Charley's home email address is

Mark "Babu Mzee" Jensen
, husband of retired Xerxes sales and marketing services manager Terry Jensen, died June 13. He was 65. Mark and Terry became rostered volunteer ELCA (Evangelical Lutheran Church in America) missionaries in 2003. At that time, Mark became the founding director of the Institute of Agriculture, Tumaini University, Iringa, Tanzania, East Africa. He was given the name Babu Mzee ("Old Grandpa") by the people of Tanzania. Survivors include his wife, Terry, of Annandale, Minnesota; two daughters; and six grandchildren.   

California general contractor
. Slunaker Construction, 3672 Chicago Avenue, Suite B, Riverside, California 92507, has applied for service and construction division membership. Greg Slunaker is president of the firm, which was established in 2000. The company is a service station and petroleum facility general contractor which also performs compliance testing of aboveground and underground storage tanks. Sponsored for PEI membership by B. A. Scowley, ShldsHarper, Martinez, CA.
Texas fuel system installer. Innovative Fueling Solutions, 6507 Storage Drive, Amarillo, Texas 79110, has applied for service and construction division membership. Ted Billingsley is president of the firm, which was established in 2010. The company installs and services equipment for fuel systems. Sponsored for PEI membership by Richard H. Long, RDMElec, Nebo, NC.


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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.