October 31, 2012 | Vol. 62, No. 24

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In This Issue
Dear PEI Member:

Biofuels Issues and Trends is a report issued October 18 by the U.S. Energy Information Administration (EIA), the statistical and analytical agency within the U.S. Department of Energy. The report addresses the ethanol and biodiesel markets separately, reviewing recent (January 2009 to August 2012) trends in consumption; production and feedstock inputs; imports; exports; prices and producer margins; and infrastructure. If your company is interested in equipment related to biofuels, the 48-page report is worth downloading. Primary takeaways from the report include: 
  • Legislation and regulations are important factors in the production and consumption of ethanol and biodiesel. Processing plants are being built to produce the required annual volumes, and market participants are sensitive to legislative and regulatory developments.
  • Ethanol grew from 8 percent of U.S. gasoline consumption by volume in 2009 to nearly 10 percent in 2011 and the first eight months of 2012.
  • With almost all gasoline in the U.S. already blended with 10 percent ethanol (E10), the maximum level approved for use in all cars and light duty trucks, significant increases in domestic consumption of ethanol face a blend wall unless higher percentage ethanol blends can achieve significant market penetration.
  • The serious drought in the midwestern U.S. during summer 2012 lowered production estimates for corn and other crops, resulting in higher prices and a reduced forecast for biofuels production for the 2012/2013 marketing year.
  • Cellulosic biofuels production to date is far below the targets set by the Energy Independence and Security Act (EISA) of 2007. The Environmental Protection Agency (EPA) issued waivers that substantially reduced the cellulosic biofuels obligation under the expanded Renewable Fuels Standard (RFS2). However, even that anticipated level of commercial production failed to materialize.
  • E10 can be sold at service stations from any existing dispenser. Widespread use of E15 or E85 will require that existing service station dispensers, storage tanks and other associated systems be upgraded or replaced. Retailers may dedicate dispensers to E15 or E85, or they may install blender pumps for additional flexibility. Several hundred of these dispensers are in operation in the United States.
  • While EPA has approved the use of E15 for model year 2001 and newer cars and light trucks, concerns related to automobile warranties, potential liability for misfueling, and infrastructure costs are likely to limit E15 use to low volumes in the near term.

EIA Report: Biofuels Issues and Trends

RP1300 Comment Deadline November 5

California Revises Cleanup Manual

CNG Information from NREL

In This Issue


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Under the legally mandated renewable fuel standard, EPA requires the total volume of fuel sold in the U.S. in 2012 to contain 15.2 billion gallons of renewable fuels. EISA requires that the 2013 fuel supply contain 16.55 billion gallons of renewable fuels. The Clean Air Act allows EPA to waive the standard's renewable fuel production requirements for up to one year if the agency finds that the RFS would severely harm the economy or environment of a state, region or the United States. EPA took comments through October 11 on recent requests to waive the standard. EPA must respond to the waiver requests by November 11. No matter which way EPA goes in the fuel waiver decision, industry observers believe the decision will be litigated.

PEI is accepting comments to its draft Recommended Practices for the Design, Installation, Service, Repair and Maintenance of Aviation Fueling Systems (PEI/RP1300) through November 5. Individuals interested in reviewing and/or commenting on the draft document before publication can download a copy and submit comments online from PEI's website at www.pei.org/RP1300.

The California State Water Resources Control Board (SWRCB) has updated a 1989 guidance document for cleaning up leaks from underground storage tanks (USTs). Released last month, the California Leaking Underground Fuel Tank Guidance Manual outlines technologies and implementation strategies for site assessments, cleanups, monitoring, and other activities that have proven to be efficient and effective, according to the water board. The manual is designed to help regulators, responsible parties, and consultants make appropriate decisions about how to comply with the state's regulations and policies that protect the public, drinking water supplies, and the environment from risks posed by leaking USTs.

It could cost the industry more than $1.3 billion to comply with EPA's proposed UST inspection and testing requirements, according to comments filed last week by the Petroleum Marketers Association of America (PMAA). The trade group commented that the requirements would cost each of the 233,157 affected facilities $6,100 per year.
The Texas Commission on Environmental Quality (TCEQ) has indicated that it hopes to propose changes to its State Implementation Plan (SIP) to remove Stage II vapor recovery equipment by April 1, 2013; change its SIP by October, 2013; and then seek EPA approval of its new SIP in early 2014. Until then, the TCEQ will exercise enforcement discretion and not require Stage II equipment in new installations.
Virginia Governor Bob McDonnell announced October 2 an initiative to convert the state's vehicle fleet to run on natural gas and propane.

Purpora Engineering, Inc.
, Saukville, Wisconsin, has acquired all the rights and assets of Alert Technologies, Indianapolis, Indiana. Purpora has moved the manufacturing and support to Saukville.
Ed O'Hanrahan of Galloway Chemical Division has acquired Jim Coleman Company/Hanna. The new company, Coleman Hanna Carwash Systems LLC, will be led by O'Hanrahan and Russell Coleman.

The National Renewable Energy Laboratory in Golden, Colorado, has useful information on compressed natural gas available on its website including basic information, CNG infrastructure, case studies and incentives by state. Visit www.afdc.energy.gov/fuels/natural_gas.html

Modern Welding Company
, Owensboro, Kentucky, has added John W. Campbell to its corporate sales staff.
Leighton O'Brien, Colorado Springs, Colorado, has appointed Jeff Davis as vice president of U.S. sales. He will focus on spearheading its operations in the United States and the company's licensed service provider network. Davis formerly worked for Petrotechnik, Inc. and, before that, Gilbarco Veeder-Root.

Colorado manufacturers representative
. Rocky Mountain Rep Agency, 6082 South Millbrook Court, Aurora, Colorado 80016, has applied for affiliate division membership. Mike Piatchek is the owner of the firm, which was established in 2010. The company operates in the Rocky Mountain region. Sponsored for PEI membership by Chris Piatchek, PiSquare, St. Louis, MO.
California maintenance company
. Central Petroleum Maintenance, P. O. Box 211, Pleasanton, California 94566, has applied for service and construction division membership. Robert Gibson is service manager for the firm, which was established in 1972. The company provides service station maintenance. Sponsored for PEI membership by Gregg Miller, NWPump, Portland, OR.
Tahiti installation and service company. Vertgreen Industries, P. O. Box 9104, Motu-Uta, Papeete, Tahiti, French Polynesia, has applied for service and construction division membership. Louis Triponel is general manager of the firm, which was established in 2004. The company installs underground tanks and provides service. Sponsored for PEI membership by David Naylor, Durapipe, Cannock, Staffs, United Kingdom.


  • O Ring CNG Fuel Systems, L.P., Coolspring, PA (dis)
  • Hernon Manufacturing, Sanford, FL (mfr)
  • Five C's Design and Consulting, Inc., Saint John, New Brunswick, Canada (aff)
  • Prevention Technologies Inc., Moorestown, NJ (aff)
  • TFG Founders Group, Fort Worth, TX (aff)
  • Galca Trading and General Services, Mandaue City, Cebu, Philippines (S&C)
  • Gemini Pump & Compressor Service Ltd., Calgary, Alberta, Canada (S&C)
  • Stoneybrook Services, Roanoke, VA (S&C)
  • Robert Lomeli, Desechos Biologicos e Industriales S.A. de C.V., Mexico City, Mexico (O&E)
  • Joe Serenko, Giant Eagle Inc., Bedford Heights, OH (O&E)
  • Ignacio Urbieta, Jr., Urbeita Oil, Medley, FL (O&E)
  • Carl Overturf, PECO Energy, Berwyn, PA (O&E)
  • Hitendra Chaudhary, Overton Truck Stop, Overton, NE (O&E)


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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.