|Dear PEI Member:
EPA's proposal to revise its 1988 underground storage tank
(UST) regulations was published in the
November 18 Federal Register.
The changes deal with the technical, financial responsibility and state
program approval regulations. This proposal establishes federal requirements
that are similar to key provisions of the Energy Policy Act of 2005 and
updates certain 1988 UST regulations. The changes that impact PEI
members were discussed in the October 31 TulsaLetter. Since that
time, members have asked questions about EPA's proposal, some of which we
will share here.
comments to the proposed rules have to be filed? Comments must be
received on or before February 16, 2012. Instructions and tips for preparing
comments are located on the first two pages (71708-9) of the proposal.
Does PEI intend to comment on the regulations? Probably yes, although the comments will be focused on
EPA's proposed references to
the association's recommended practices. Members that wish to respond to
EPA's proposal―especially to questions
specifically proposed in the Federal Register―should
do so individually.
Will PEI publish a more detailed analysis of this proposed regulation?
Yes, we are in the process of preparing a 12-page report for the next
issue of the PEI Journal. The printed and online versions of the PEI Journal
will be available in January.
How much business might this mean for the average PEI member? The
regulatory requirements generally focus on additional testing and inspection
of existing equipment, and do not reflect large-scale investments in
equipment. EPA estimates that the average regulated facility will spend $890
per year in complying with the rule. Motor fuel retailers, which account for
roughly 80 percent of UST systems, are expected to bear approximately 70
percent of the total costs.
The October 31 TulsaLetter mentioned that EPA knows of one code
of practice currently being developed by PEI that will address testing of spill, overfill, release detection and secondary containment
equipment. What is the status of
that recommended practice? The PEI committee responsible for that
document will meet December 15 and December 22 to resolve
remaining issues. We anticipate that the committee will complete the draft
of PEI's Recommended Practices for the Testing and Verification of Spill,
Overfill, Release Detection and Secondary Containment Equipment (PEI/RP1200) in January.
We expect the recommended practice will be made
available to interested parties for comment in mid- to late-January.
WEBINAR: ETHANOL BLEND IMPACTS ON PLASTICS, ELASTOMERS AND METALS
Staff from Oakridge National Laboratory (ORNL) and the National
Renewable Energy Laboratory (NREL) will host a free webinar on test results of
fueling infrastructure equipment/materials with various ethanol blends.
EPA UST Proposal Published in Federal Register
Webinar: Ethanol's Impact on Petroleum Equipment
PEI's RP400 and RP600 to be Revised
Charles D. Kemp Scholarship Applications Available
PEI and Industry News »
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The webinar will cover the coupon exposure tests of plastics to various
ethanol blends and a reference fuel. The presentation also will cover the
impact ethanol blends have on metals and elastomers―information
covered in a January 2011 meeting among representatives from ORNL, NREL, Underwriters
Laboratories and companies whose equipment was tested.
The webinar will be presented one time: Thursday, January 5, 2012, 2:00 pm, EST. Participants
can join the event directly
and listen in by calling 877-546-1573. Visit the link today and bookmark it
for later reference. Contact Kristi Moriarty at
or via phone (303-275-4477) with
TWO PEI RECOMMENDED PRACTICES TO BE REVISED―COMMENTS
The committees responsible for writing
Recommended Procedure for Testing Electrical Continuity of Fuel-Dispensing
Hanging Hardware (PEI/RP400) and Recommended Practices for
Overfill Prevention for Shop-Fabricated Aboveground Tanks (PEI/RP600)
are in the process of revising those documents. Any interested party is
eligible to comment and offer changes to the document(s).
If you have
suggestions or recommendations for revisions to either document, you can
submit them now online. Instructions for completing the form are available at
www.pei.org/RP600. All comments must be
received at PEI by Tuesday, January 17, 2012, to be considered. If you have
any questions or need further information, contact Bob Young (email@example.com)
or call 918-236-3966.
SENATE PROPOSES COMPANION LEGISLATION TO NAT GAS ACT
Senators Robert Menendez (D-NJ), Harry Reid (D-NV), Richard Burr (R-NC)
and Saxby Chambliss (R-GA) have introduced companion legislation to H.R.
1380, the Alternative Transportation to Give Americans Solutions Act (NAT
GAS ACT) of 2011, that would encourage the use of domestic natural gas
to fuel vehicles. The House bill was introduced on April 6 and currently has
181 bipartisan co-sponsors.
Both bills include an extension and expansion
of income tax credits for the purchase of natural gas vehicles and the
installation of a natural gas fueling infrastructure. Production tax credits
for vehicle makers to manufacture natural gas vehicles are also included in
The House bill includes a 50-cent-per-gallon excise tax credit per gallon
sold, while the Senate version does not. Furthermore, the Senate bill would
charge a temporary user fee on the sale of liquefied natural gas and
compressed natural gas sold for use as a motor fuel to fund the new tax
credits. The fee would ramp up by steps over a 10-year period, from zero in
the first two years to 12.5 cents per gallon in the last two.
CHARLES D. KEMP SCHOLARSHIP APPLICATIONS NOW AVAILABLE
Each year, the PEI Foundation awards Charles D. Kemp Scholarships to
deserving dependents of PEI member company employees. The scholarship
awards are $1,000 each, or another amount determined by the PEI Foundation
Board of Governors.
Scholarship applications for the 2012-2013 academic year are now open. To
be eligible, an applicant must be a dependent of a full-time employee of a
member company in PEI's manufacturer, distributor, service & construction,
or affiliate divisions. The applicant must also plan to enroll as an entering
full-time freshman for the 2012-2013 academic year at an accredited
four-year college or university. Recipients are selected based on academic
achievement, leadership, character, need and the applicant's intent to
contribute to the future of the petroleum and energy handling equipment
For additional information and to download the complete scholarship
guidelines and application form visit
www.pei.org/foundation. Deadline for completed
applications is March 31, 2012.
New Hampshire. On November 29, the state's Department of Environmental Services
amended its Stage II vapor recovery regulations (Env-Wm 1404.7). Beginning January 1, 2012, the amended rule eliminates the
requirement to install Stage II controls on new or significantly modified
gasoline dispensing facilities and to allow existing Stage II systems to be
decommissioned. In addition, the regulation now requires facilities that
currently have Stage II equipment to decommission the equipment by December
22, 2015, which is the same deadline tank owners have for removing any part
of an existing single-walled underground storage tank system without
secondary containment and leak monitoring. The rule requires that the Stage
II system be decommissioned in accordance with all of the steps listed in
Section 14 of PEI's Recommended Practices for Installation and Testing of
Vapor-Recovery Systems at Vehicle-Fueling Sites (PEI/RP-300). The
amendment applies to any gasoline storage tank or gasoline dispensing
facility that (1) is subject to Stage I requirements; (2) is located in
Hillsborough, Merrimack, Rockingham or Strafford county; and (3) has an
annual throughput for any year of ≥420,000 gallons of gasoline or was constructed after November 15,
1990 (regardless of throughput).
Utah. The Utah Department of Environmental Quality (DEQ) has amended
its UST rules to allow for up-front loan payments
to contractors from the Utah Petroleum Storage Tank (PST) loan fund.
Previously, proceeds were paid to the owner only after the work was done.
The amended loan procedures allow a UST owner to apply for one initial
disbursement of up to 40 percent of the approved loan amount. The
owner/borrower must begin work on the project no later than 60 days after
the initial disbursement. The procedure was modified to allow UST owners to
make a partial payment to the UST installer before the work begins.
Brenntag AG has completed the acquisition of Multisol Group Limited
(UK), the holding company of the Multisol Group. Multisol is a specialist in
the distribution of lubricant additives and high-quality base oils in Europe
ConocoPhillips said December 3 that its downstream business
(refining and marketing) will receive the same $1.2 billion capital budget
it received in 2011, with $1 billion going to its U.S. businesses and $200
million being funneled abroad.
Getty Petroleum Marketing Inc., a fuel marketer acquired in March by
Cambridge Petroleum Holding Inc. from Lukoil OAO, filed for Chapter 11
bankruptcy protection December 5. Its Gasway Inc., Getty Terminals Corp. and
PT Petro Corp. units also sought protection.
SOCAR, the state oil company of Azerbaijan Republic, on November 16
signed a sale and purchase agreement to acquire ExxonMobil's Swiss
affiliate, Esso Schweiz GmbH. Esso Switzerland includes a retail
station network with more than 170 service stations, of which 63 are company
NHTSA PROBES SAFETY OF GM'S VOLT
The National Highway Traffic Safety Administration (NHTSA) has opened an
investigation into the safety of the Chevrolet Volt's battery pack. A
lithium-ion battery pack in a Volt that had been through a crash test in May
caught fire three weeks later at a test facility in Wisconsin, according to
NHTSA. In lab tests completed in November by government regulators, a second
Volt pack began to smoke and throw off sparks while a third battery pack
caught fire a week after a simulated crash.
General Motors chairman Dan Akerson said December 1 that General Motors may redesign
the battery to address issues raised after federal officials opened the
safety probe. "We want to assure the safety of our customers, of our buyers,
and so we're just going to take a time out, if you will, in terms of
redesigning the battery possibly," Akerson told Reuters Insider. The
company also said it would not deliver the Opel-branded version of the Volt
in Europe until its engineers and safety regulators had worked out how to
deal with the 400-pound battery pack after any accidents.
EFFORTS TO DELAY E15
A bipartisan group of 33 members of the House of Representatives sent a
letter to EPA Administrator Lisa Jackson on November 17 urging the agency to
delay the registration of E15 until testing has demonstrated that E15 will
not damage engines and misfueling concerns are properly addressed. That
said, one of the signers of the letter told me privately last week that he
expects EPA will go ahead with its plans to register the fuel sometime this
Rep. Jim Sensenbrenner (R-Wis) introduced a bill (H.R. 3431) November 15
that would amend the Clean Air Act by prohibiting EPA from granting a waiver
for any fuel or fuel additive that would reduce fuel efficiency or cause or
contribute to engine damage. The bill currently has no co-sponsors. It has
been referred to the House Committee on Energy and Commerce, which has not
scheduled action on the bill.
APPOINTMENTS AND PROMOTIONS
Eastern States Associates, Inc. (ESA), headquartered in Palmer,
Massachusetts, has hired Tim Murphy to represent the company in the New
England area and Tom Ranieri to serve the New York State and central
Pennsylvania areas. Both come to ESA with a petroleum sales background. John
Flick has also joined the ESA team as an inside sales and customer service
representative based out of the company's office in White Plains, New York.
Fleming Reid Petroleum Equipment Ltd., headquartered in Spruce Grove,
Alberta, has hired Gord Wedel to be in charge of sales and customer support
for the company in Manitoba and Saskatchewan. Wedel has 27 years experience
providing technical service and technical support with Kraus Global. Email:
FLEX-ING, Sherman, Texas, has named Eastern States Associates
as its exclusive sales representative group for the northeastern portion of
the United States including Connecticut, Delaware, Massachusetts, Maryland,
Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and
Vermont. FLEX-ING also moved Jason Brown from inside sales manager/retail
fueling products to the company's materials requirements planning team.
Chris Gaines has replaced Brown as the inside sales contact for all retail
Petroleum Solutions, Inc., McAllen, Texas, has hired Cassie Stewart
as director of marketing. She will office in the company's Houston branch
and will cover all regional offices. Phone: 832-483-4801. Email:
Containment Solutions, Inc., Conroe, Texas, has named Eastern
States Associates (ESA) to represent the fiberglass storage tank
manufacturer in most of the New England and Mid-Atlantic region.
R-J Sales & Associates Inc., headquartered in Greensboro, Georgia,
has been named FLEX-ING's Sales Representative of the Year for 2011.
Ohio signage and consulting firm. Triumph Signs and Consulting, Inc.,
480 Milford Parkway, Milford, Ohio 45150, has applied for service and
construction division membership. Joe Smallwood is regional sales manager
for the firm, which was established in 2005. The company manages sign and
lighting implementations for the petroleum and other industries. Sponsored
for PEI membership by Jayme Leonard, LeonardAsc, Cincinnati, OH.
ADMITTED TO PEI
- BJM Pumps, LLC, Old Saybrook, CT (mfr)
- Yenen Engineering Ltd., Istanbul, Turkey (mfr)
- 1st Choice Compliance, Inc., Albany, GA (aff)
- Albelal Technical Trading Est., Amman, Jordan (S&C)
- T & P Service, LLC, Palestine, TX (S&C)
- Joseph Barton, Triple A Fuels, Inc., Dallas, TX (O&E)