August 10, 2012 | Vol. 62, No. 18

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Dear PEI Member:

Guidance that will accelerate the removal of Stage II vapor recovery equipment across the country―except California―was released by the Environmental Protection Agency (EPA) August 7. Here is some background on the Stage II issue and details on the guidance.

A notice of final rulemaking determining that onboard refueling vapor recovery (ORVR) systems are in widespread use throughout the motor vehicle fleet was published in the Federal Register on May 16, 2012.

In that notice EPA Administrator Lisa Jackson exercised her authority under the Clean Air Act (CAA) to waive the statutory requirement that states with Serious, Severe and Extreme ozone nonattainment areas adopt and implement EPA programs requiring Stage II gasoline vapor recovery systems (VRS) at certain gasoline dispensing facilities. EPA's action means that any state currently implementing Stage II programs may decide to seek revisions to its State Implementation Plan (SIP) that, once approved by EPA, would allow that state to remove requirements for Stage II VRS from its governing regulations.

In order to phase out existing Stage II programs, states would need to submit SIP revisions to EPA demonstrating that, as required by Section 110(l) of the CAA, removing Stage II controls would not interfere with the state's ability to attain or maintain compliance with the 2008 ozone National Ambient Air Quality Standard. Then the states would need to receive approval from EPA. States in the Ozone Transport Region (OTR) remain obligated under CAA Section 184(b)(2) to implement either a Stage II program or other measures capable of achieving emissions reductions comparable to those achievable by Stage II.

The guidance document EPA issued this week provides both technical and policy recommendations to states and local areas on how to develop and submit an approvable SIP revision seeking to remove an existing Stage II program in the OTR and throughout the rest of the country.

PEI will review the 41-page guidance document and provide a more detailed analysis in the next edition of the PEI Journal.

A bipartisan group of lawmakers has urged EPA to halt or reduce a federal mandate requiring ethanol be blended with gasoline. More than 150 members of the U.S. House of Representatives sent a letter to EPA Administrator Lisa Jackson last week asking her to reduce its production mandate for corn-based ethanol.

As a result of the drought that's killing crops across the Midwest, "corn prices have risen dramatically over the past few weeks and are likely to remain at record highs," the lawmakers said in the letter. "This means literally billions of dollars in increased costs for livestock and poultry producers, and food manufacturers."

The letter follows a petition filed with EPA a few days earlier by representatives of the U.S. livestock industry, asking EPA to halt the ethanol mandate for a year.

Corn farmers, large agricultural companies and national security advocates who dislike importing oil argue that a waiver would be a giveaway to oil refiners and a knee-jerk reaction to temporary market conditions.

Stage II Vapor Recovery Guidance Released

Ethanol Mandate Threatened


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EPA, under the authority of the Clean Air Act, has the authority to temporarily halt or reduce the mandate for ethanol production that is required by the federal Renewable Fuels Standard. But persuading EPA to issue a waiver will be no easy matter. The agency rejected a similar request in 2008another drought year―saying economic damage would have to be severe. In addition, EPA signaled future petitions would have to demonstrate that implementation of the mandate itself was causing the economic harm, not just contributing to it.

One petroleum marketing lobbyist told us last week to "be sure to bring popcorn and a large soda. It will be an interesting show to watch this summer." Stay tuned.

Richard "Dick" Weil
, founder of Weil Service Products, died July 30. He was 86. Dick was a combat infantry veteran of World War II and founded his company after returning from the war. He retired from the company in 1992. Dick was also heavily involved with the development of the automatic service station nozzle. He is survived by his wife, Marilyn; a daughter; two sons; and several grandchildren.

Car wash manufacturer
. Coleman Hanna CarWash Systems, LLC, 6414 125th Avenue North, Largo, Florida 33773, has applied for manufacturer division membership. Edward J. O'Hanrahan, Jr., is president of the firm, which was established in 1960. The company manufactures car wash equipment and chemicals which are sold through distributors. Sponsored for PEI membership by Rich Andreas, Washworld, De Pere, WI.
Quebec tank manufacturer
. AT&S Division Gil-Fab, 1429, Avenue de la Gare, Mascouche, Quebec J7K 3G6, has applied for manufacturer division membership. Philippe Langlois is national sales manager for the firm, which was established in 1981. The company manufactures atmospheric tanks, pressure vessels, underground jacketed tanks and high-performance oil/water separators. The equipment is sold through distributors. Sponsored for PEI membership by Ronald W. Rathwell, TrianglPmp, Gloucester, ON. www.ats-tank.com
Lighting manufacturer
. Zhongshan Zhongxu Lighting Technology Co. Ltd., No. 3, Tailai Road, Gu'er Industrial Zone, Guzhen Town, Zhongshan, China 528421, has applied for manufacturer division membership. Pan Xiaodong is export manager for the firm, which was established in 2011. The company specializes in manufacturing LED canopy lights, and LED indoor and outdoor lights. The products are sold through distributors. Sponsored for PEI membership by Reuben M. Valerio, ACCorp, Makati City, Philippines.
Renewable chemical and biofuels company
. Gevo, 345 Iverness Drive South, Building C, Suite 310, Englewood, Colorado 80112, has applied for affiliate division membership. Dave Munz is manager of business development for the firm, which was established in 2005. The company converts renewable raw materials into isobutanol and renewable hydrocarbons. Sponsored for PEI membership by Steve Thickstun, AdvFuelOH, Columbus, OH. www.gevo.com
Composite material manufacturer. FormaShape, 9505 Haldane Road, Kelowna, British Columbia V4V 2K5, has applied for affiliate division membership. Bren Steele is director of sales and marketing for the company, which was established in 1981. The firm manufactures composite materials for the retail petroleum and signage industries. Sponsored for PEI membership by Griffin Williamson, TotalPro, Rialto, CA. www.formashape.com 
Texas design and consulting firm. Paragon Solutions, 201 Main Street, Suite 1150, Fort Worth, Texas 76102, has applied for affiliate division membership. Michael Lawshe is president of the firm, which was established in 1987. The company provides design and consulting services to the convenience store and travel center industry. Sponsored for PEI membership by John Farrell, UntdPumpTX, Schertz, TX. www.paragon4design.com
Trade association. Fiberglass Tank & Pipe Institute, 11150 South Wilcrest Drive, Suite 101, Houston, Texas 77099, has applied for affiliate division membership. Sullivan D. Curran is executive director for the association, which was established in 1987. Fiberglass Tank & Pipe Institute is a trade association for the manufacturers of fiberglass tanks and piping used in the underground tank and piping marketplace. Sponsored for PEI membership by Kristi Peterson, Xerxes, Minneapolis, MN. www.fiberglasstankandpipe.com   
Georgia spill clean-up company
. SP Petroleum Transporters, Inc., P. O. Box 8718, Atlanta, Georgia 30106, has applied for service and construction division membership. Steven Paul is president of the firm, which was established in 1985. The company cleans tanks, blends fuel, recycles fuel/oil and cleans up spills. Sponsored for PEI membership by Mike Long, Long&Ascs, Concord, NC. www.sppetroleum.com 
Nevada environmental consulting firm
. Earth Resource Group Environmental Services Division, 6051 Clark Street, Las Vegas, Nevada 89122, has applied for service and construction division membership. Steve Schafer is a principal in the firm, which was established in 2004. The company provides environmental consulting; fuel system design, installation and removal; underground storage tank testing; and fuel cleaning. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA. www.ergnevada.com  


  • RJP Consulting Group, LLC, Downingtown, PA (aff)
  • Sinclair Knight Merz, Wellington, New Zealand (aff)
  • Conidia Bioscience Ltd., Egham, Surrey, United Kingdom (aff)


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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.