February 17, 2014 | Vol. 64, No. 3
Dear PEI Member:
Most TulsaLetter readers are aware that a 15 parts per million (ppm) sulfur specification, known as Ultra Low Sulfur Diesel (ULSD), was phased in for highway diesel fuel from 2006 to 2010. Diesel engines equipped with advanced emission control devices (generally, 2007 and later model year engines and vehicles) must use ULSD fuel. As a result, exhaust emissions from these engines are decreased by more than 90 percent—a very good thing.
It was anticipated that the change to ULSD would impact lubricity, energy content, materials compatibility, and microbial growth. However, accelerated and increased corrosion of diesel storage equipment was not foreseen as a likely outcome. Unfortunately, as we are all painfully aware, severe and rapid corrosion has been observed in systems storing and dispensing ULSD since 2007—an unintended consequence of reducing sulfur in diesel.
Now let’s consider the changes about to be made to gasoline. Beginning in 2006, new Tier 2 regulations lowered the vehicle standard for sulfur in motor gasoline in stages to an average of 30 ppm, with an absolute cap of 80 ppm, down from the previous standard of 300 ppm—a 90 percent reduction. But in an effort to increase the effectiveness of the catalytic converter, which eliminates nitrogen oxides, hydrocarbons and carbon monoxide, EPA has proposed Tier 3 standards that will reduce sulfur in gasoline even further. The proposed standards, which allow federal gasoline to contain no more than 10 ppm sulfur on an annual average basis by January 1, 2017, are expected to be finalized soon.
Talking to tank owners and contractors in the field, there were no adverse consequences to equipment when the country moved from 300 ppm to 30 ppm. But what will happen when we move from 30 to 10? Has the question been asked? Has the effect on equipment been studied? Do the people proposing the sulfur reduction in gasoline know about the industry’s ULSD experience? Or are we just going to cross our fingers, hope for the best and deal with the problem if equipment that stores 10 ppm sulfur gasoline also starts to corrode more quickly.
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|REGISTRATION OPENS FOR 2014 PEI PURCHASING & INVENTORY MANAGERS CONFERENCE
Register now for PEI's Purchasing & Inventory Managers Conference, June 12-14, 2014, at The Westin Indianapolis to receive the advance registration discount.
The two-day conference will offer a combination of general session presentations and roundtable discussions specifically geared to the needs of purchasing managers and inventory managers. The three general sessions—Turning Buyers Into Investors, Finding the Balance: Inventory Turns & Customer Service and Investing in Profitable Customers—will be presented by Jason Bader, managing partner of The Distribution Team.
Registration for PEI members prior to March 29 is $295 ($545 for nonmembers). Beginning March 29, the fee goes up to $395 for members and $695 for nonmembers. Deadline to register for the conference is Friday, May 16. The registration fee includes all conference materials, three general sessions, four roundtable discussions, three meals, and two receptions. Registration can be completed online at www.pei.org/pi2014. A list of those pre-registered for the conference will be posted on the website in the future.
Conference registration does not include overnight accommodations. PEI has secured a room rate of $159 single/double at The Westin Indianapolis. Hotel reservations must be made prior to May 14 to secure this special rate. Call 888-627-8414 and ask for the PEI Purchasing & Inventory Managers Conference room block or book online here.
PEI members sponsoring the conference are ESCO Services, Husky Corporation, Morrison Bros. Co., Performance Ink, Petro Clear by Fram Filtration, PMP Corporation and RDM Industrial Electronics. If your company is interested in becoming a sponsor, contact Bob Young at firstname.lastname@example.org.
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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.