November 19, 2013 | Vol. 63, No. 23

respond | preferences | login | unsubscribe

In This Issue

Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) on November 15 proposed for public comment the 2014 levels of renewable fuels to be blended into gasoline and diesel as required by Congress under the Energy Independence and Security Act of 2007.

The proposal would lower the 2014 renewable biofuel mandate from 18.15 billion gallons to a range of 15 billion to 15.52 billion gallons. EPA’s recommended target of 15.21 billion gallons is within the proposed range. That includes 13.01 billion gallons of corn ethanol and 2.20 billion gallons of biodiesel and advanced biofuels.  The corn ethanol target of 13 billion gallons represents almost exactly 10 percent of the gasoline consumption forecast by the U.S. Energy Information Administration for next year. EPA also proposed changes for cellulosic biofuels, with a range between 8 million and 30 million gallons and a recommended target of 17 million gallons.

The proposed 2014 biofuels blending mandate of 15.21 billion gallons is down from the 16.55 billion gallon target finalized for 2013, and 14 percent lower than the original 2014 goal envisioned by Congress. The Renewable Fuel Standard (RFS) requires annually increasing amounts of biofuels to be added into U.S. transportation fuel supplies, to a total of 36 billion gallons in 2022.

This marks the first time in the history of the RFS that EPA has proposed to scale back the government’s overall biofuel blending target for the forthcoming year. If the proposed targets become law, the biofuels markets will stagnate with no growth expected in the foreseeable future. The bottom line for petroleum marketers is that E10—the blend sold in almost all gasoline stations in the U.S. today—will not be tampered with, but that 15-percent (E15) and 85-percent (E85) ethanol blends primarily will be sold as niche or regional products.

The proposal is subject to a 60-day comment period, and could later be changed.  

PEI is seeking to identify topics that might provide subject matter for future recommended practices. Submitted ideas for recommended practices should meet all of the following:

  •  The subject matter involves practices and/or procedures used in the petroleum equipment industry and serves the greater good of the industry;
  • The topic has not been adequately covered in documents produced by another organization; and
  • The expertise exists among PEI members to write the document.

EPA Proposes 2014 Renewable Fuels Levels

PEI Seeks Topics For Future RPs

RP1000 Comment Deadline Nov. 22

In This Issue

2014 Young Executives Mid-Winter Conference
San Juan, Puerto Rico Feb. 6-8. 2014

Learn, Network, Grow!

PEI and Industry News »


Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

return to top of page

If there is a topic you believe PEI should consider developing as a recommended practice, we would like to hear from you. If you have submitted a topic that was not selected in the past, you must resubmit. Email Bob Young byoung@pei.org with your suggestions by December 20. Please include the purpose and scope of the proposed document, along with the intended audience. We will compile the responses and forward them to PEI’s Recommended Practices Committee for its review and recommendations to the PEI Board of Directors.

The 2013 PEI Marina Fueling System Installation Committee is soliciting comments on PEI’s Recommended Practices for the Installation of Marina Fueling Systems (PEI/RP1000-09). Comments should be submitted online at www.pei.org/rp1000. All comments to this document must be received by PEI by Friday, November 22, 2013, to be considered by the committee for the next edition of RP1000. If you have any questions or need further information, contact Bob Young at byoung@pei.org or 918-236-3966.

Robert Fine II, owner of FINEnvironmental Inc.
, Lenexa, Kansas, pled guilty November 12 to mail fraud and money laundering after embezzling more than $1.3 million from the Missouri Petroleum Storage Tank Insurance Fund. His plea agreement requires him to pay restitution of $1.5 million. Fine was the owner and sole employee of FINEnvironmental Inc., a home-based company that used subcontractors to perform environmental services for property owners with underground petroleum storage tanks. Prosecutors say Fine created false, inflated invoices for the services and submitted them to the insurance fund. He could be sentenced to up to 30 years in federal prison.
Federal and state authorities have filed criminal charges against five executives of Environmental Management Inc., Springfield, Illinois, for allegedly taking part in a scheme that defrauded the Illinois leaking underground storage tank (LUST) program out of $13.6 million. The charges were contained in two grand jury indictments filed in U.S. District Court for the Central District of Illinois. The indictments point to several alleged schemes that took advantage of the LUST fund, including inflated billing and fictitious claims for payment. In addition, the indictments allege sham business relationships with subcontractors to pad invoices and bid-rigging strategies to manipulate pricing for services.

Susser Holdings Corporation and Susser Petroleum Partners LP said November 14 that both companies have signed a definitive agreement to acquire substantially all of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores Inc. and 3W Warren Fuels Ltd. Sac-N-Pac owns and operates 47 convenience stores in the corridor between San Antonio and Austin. 3W Fuels supplies approximately 65 million gallons of motor fuel annually to the 47 Sac-N-Pac locations and to approximately 20 independent dealer locations.
Travel Centers of America LLC said November 14 that it has agreed to acquire 31 Minit Mart convenience stores with retail gasoline stations for $67 million. Twenty-eight of the stores are located in Kentucky and three are in Tennessee.
Alimentation Couche-Tard Inc. said November 15 that it has signed, through its wholly-owned  indirect subsidiary, Circle K Stores Inc., an agreement with Albuquerque Convenience Retail LLC, a wholly-owned subsidiary of Phillips 66 Company, to acquire 23 stores in New Mexico. The transaction is expected to close in December.

PDQ Manufacturing, Inc.
, De Pere, Wisconsin, announced that Tony Smith has joined the company as vice president of sales – auto dealer sector. He will report to Gerry Hanrahan, senior vice president of sales for PDQ.

Taiwan distributor
. Hummel Gas Pump Co., Ltd., 5F, 88, Sec. 1, Guang-Fu Road, San Chong Dist., New Taipei City, Taiwan 241-58, has applied for distributor division membership. Cindy Yang is president of the firm, which was established in 1988. The company represents Catlow, Gilbarco, OPW-FC and VeederR. Hummel Gas Pump also installs and services service station equipment. Sponsored for PEI membership by Lucy Sackett, Gilbarco, Greensboro, NC. www.hummelpump.com
Cam and groove coupling manufacturer. NECO, 5644 Highway 96 East, Youngsville, North Carolina 27596, has applied for manufacturer division membership. Craig Rooth is vice president sales for the firm, which was established in 1965. The company manufactures cam and groove couplings, which are sold through distributors. Sponsored for PEI membership by Gary E. Estes, EstesEqpCo, Chattanooga, TN, and Carlos Solares, Solares&Co, Bayamon, Puerto Rico.
Delaware systems provider. Smart Oil Technology, 2210 Riviera Lane, Wilmington, Delaware 19810, has applied for affiliate division membership. Karl Bittner is owner of the firm, which was established in 2006. The company provides touch POS systems for stations with optional back office and head office systems. Sponsored for PEI membership by Joe Hinkle, CampbellVA, New Market, VA. www.smartoiltechnology.com
Texas consultant. PCG, LLC, 1605 Thibodeaux Drive, Round Rock, Texas 78664, has applied for affiliate division membership. Julie Kemi is executive vice president of the firm, which was established in 2009. The company offers consulting solutions in the fields of sales, business development, training and management. Sponsored for PEI membership by Liz Concannon, PCS, Minden, NV. www.consultingpetroleum.com.


  • Automotive Equipment Experts Inc., Loganville, GA (S&C)
  • Michael Yount, Delta Sonic, Buffalo, NY (O&E)


Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute intended for %full_individual_name%. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2013 All rights reserved.

return to top of page

© 2013
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.