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July 9, 2014 | Vol. 64, No. 13

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Dear PEI Member:

The Renewable Fuel Standard (RFS) establishes minimum volumes of various types of renewable fuels that must be included in the United States’ supply of fuel for transportation. Those volumes—as defined by the Energy Independence and Security Act of 2007 (EISA)—are intended to grow each year through 2022.

In recent years, the requirements of the RFS have been met largely by blending gasoline with ethanol made from cornstarch. In the future, EISA requires the use of increasingly large amounts of “advanced biofuels,” which include diesel made from biomass, ethanol made from sugarcane, and cellulosic biofuels made by converting the cellulose in plant materials into fuel.

The original volume mandated by EISA for 2014 is 18.15 billion gallons. However, after recognizing severe challenges in meeting the EISA target, primarily due to the lack of cellulosic biofuels and the blend wall, EPA is proposing to lower the EISA 2014 mandate by 3 billion gallons to 15.21 billion gallons.

Members of Congress have raised concerns about the RFS, particularly the feasibility of complying with the standard, whether it increases the prices for food and transportation fuels, and whether it will lead to the intended reductions of greenhouse gas emissions. Because of those concerns, some members of Congress have proposed repealing or revising the RFS.

At the request of the Chairman of the House Committee on Energy and Commerce, the Congressional Budget Office (CBO) has analyzed these issues in a 35-page report entitled The Renewable Fuel Standard: Issues for 2014 and Beyond. The report evaluates how much the supply of various types of renewable fuels would have to increase over the next several years to comply with the RFS. CBO also examines how food prices, fuel prices and emissions would vary in an illustrative year, 2017, under three scenarios for the RFS. Under the first scenario, referred to as the EISA volumes scenario, fuel suppliers would have to meet the total requirement for renewable fuels, the requirement for advanced biofuels, and the cap on corn ethanol as stated in EISA. Meeting the cellulosic requirement would not be required because the capacity to produce enough cellulosic fuels is unlikely to be in place by 2017. The second scenario, called the 2014 volumes scenario, would keep the RFS requirements for the next several years at the same amounts proposed for 2014. The third scenario, referred to as the repeal scenario, assumes lawmakers abolish the RFS immediately.

CBO RFS Report

PEI Board Elections

Lift Standards Reaffirmed

SC Recess Appointments Unconstitutional


In This Issue


PEI and Industry News »


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The CBO report says that the EISA volumes scenario would cause gasoline prices to climb by up to 26 cents per gallon, or 9 percent, in 2017. The report favors the 2014 volumes scenario since increasing the total percentage of ethanol in the nation’s gasoline supply—the EISA volumes scenario—would require “significant changes to the infrastructure of fueling stations.”   

The CBO report was generally lauded by the petroleum industry but slammed by the biofuels industry. Biofuel advocates were particularly galled because the report did not weigh how the biofuel program has benefited consumers by reducing demand for diesel and gasoline and decreasing the need for foreign oil.

Although PEI does not have a dog in the fight between the oil and biofuels industries, we are interested in learning about any government program or legislative action that affects retail service stations. And, judging from the questions we receive from members who are thinking about the future of the retail fuel market, so are many of you. We, therefore, recommend the non-partisan CBO report to you but suggest you be open to the views of others whose interests were not particularly well served by the report.   

Triangle MicroSystems
, Raleigh, North Carolina, has announced the appointment of Tommy Goodson as president of the company. Goodson began his career in the industry as a bench technician and last served Triangle MicroSystems as the company’s marketing and sales director.
Cim-Tek, Bement, Illinois, has expanded the territory of Keith Stewart and Associates to include Maryland, Delaware, New Jersey, Pennsylvania and Long Island, New York. This is in addition to Stewart’s current territory of Maine, New Hampshire, Vermont, Massachusetts, New York (excluding Long Island), Rhode Island and Connecticut. Cim-Tek also added Asia to the territory of Hockman-Lewis Limited which includes Africa, Australia, Latin America, Mexico, South America and the Middle East.
Guardian Fueling Technologies, Inc., Jacksonville, Florida, has successfully acquired JMP Solutions, Inc., Tampa, Florida. 

On June 30 an email ballot was sent to all individuals identified as the Official Representative for PEI member companies in two of the association’s even-numbered districts (6 and 12) and the affiliate division. The balloting is open until 5 p.m. July 21. If you are the Official Representative for your company and did not receive a ballot via email on June 30, contact Teresa Jonkman at tjonkman@pei.org. This is the first time the voting process has been handled online, and the PEI Election Commission is pleased with the response to date.

Standard for Automotive Lifts – Safety Requirements for Operation, Inspection and Maintenance
ANSI/ALI ALOIM:2008 (R2013) has been approved by ANSI as a reaffirmed American National Standard. It became effective June 4, 2014. This reaffirmed standard replaces the now obsolete ANSI/ALI ALOIM:2008, but contains no changes beyond the reaffirmation date (R2013). Copies are available from the Automotive Lift Institute, Inc. for $15 at www.autolift.org.

In a ruling issued June 26, a unanimous U.S. Supreme Court decided that President Obama’s January 4, 2012, recess appointments of three National Labor Relations Board (NLRB) members violated the Constitution. Although the ruling invalidates 436 decisions issued during the 18 months when President Obama’s improperly appointed employees worked there, many of the cases will be returned to—and reviewed by—the current NLRB, which now has a full contingent of five members duly confirmed by the Senate. Because the current board has a 3-2 Democratic majority, it is likely to affirm all or nearly all of the rulings, legal experts opined. PEI supported the National Association of Wholesaler-Distributors (NAW) in this court challenge. NAW participated through the Coalition for a Democratic Workplace, which NAW helps manage. (NLRB v. Noel Canning)

Cooler manufacturer
. Custom Cooler Inc., 420 East Arrow Highway, San Dimas, California 91773, has applied for affiliate division membership. Bud Moore is the official representative to PEI for the firm, which was established in 2006. The company engineers, manufactures and installs walk-in coolers and freezers. Sponsored for PEI membership by Robert E. Dendy, PetroEnrgy, Houston, TX. www.customcooler.com.
Kentucky environmental consulting firm. Shield Environmental Associates Inc., 948 Floyd Drive, Lexington, Kentucky 40505, has applied for affiliate division membership. Mark Sweet is president of the firm, which was established in 1994. The company consults, provides site investigation and offers remedial corrective action. Sponsored for PEI membership by Tony Honey, ModernWeld, Owensboro, KY. www.shieldenv.com
California construction firm. GEMS Environmental Management Services, Inc., 1120 Willow Pass Court, Concord, California 94520, has applied for service and construction division membership. Richard Camacho is president of the firm, which was established in 1999. The company provides construction, environmental and waste management services. Sponsored for PEI membership by B. A. Scowley, ShldsHarpr, Martinez, CA. www.gemsenvironmental.com
Tennessee installation company. D & J Services, Inc., 4133 Link Road, Knoxville, Tennessee 37918, has applied for service and construction division membership. James R. Faulkner is president of the firm, which was established in 2003. D & J installs tanks, dispensers, and bulk oil tanks and equipment. Sponsored for PEI membership by W. Douglas Bruce, RBMCo, Knoxville, TN.


  • Hydra-Air Pacific Inc., Honolulu, HI (dis)
  • J-W Power Company, Addison, TX (mfr)
  • Berkley Specialty Underwriting Managers, Jersey City, NJ (aff)
  • Linq3, New York, NY (aff)
  • Cathodic Solutions, Twisp, WA (S&C)


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© 2014
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.