Tulsaletter- click here to read this in your web browser...
June 3, 2015 | Vol. 65, No. 10

respond | preferences | login | unsubscribe

In This Issue

Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) has proposed long-delayed targets for blending biofuels into conventional petroleum fuels in 2014-16.

EPA noted in its 118-page proposal that the targets fall short of the volumes Congress originally mandated in the Renewable Fuel Standard (RFS), which was signed into law by President George W. Bush in 2007. However, it added that the targets would still result in further growth in U.S. consumption of renewable fuels, in line with the original intent of Congress.

The RFS sought to reduce oil consumption and emissions of greenhouse gases by mandating the blending of steadily rising volumes of biofuels, such as ethanol and biodiesel, into petroleum fuels such as gasoline and diesel. Problems developed when U.S. fuel consumption grew more slowly than anticipated at the time the RFS was developed. Furthermore, oil refiners noted practical obstacles to blending ever-increasing volumes of biofuels into petroleum fuels. Specifically, refiners have argued that it is unsafe to blend biofuels in concentrations greater than 10 percent because doing so can damage automobile engines and the equipment used to transport, store and dispense the blended fuels.

In its proposal, EPA relied on its authority to set targets at lower levels than Congress originally mandated since, in its view, the statutory volumes were not reasonably achievable. EPA set the total renewable fuels target for 2014 at the level that was actually blended in that year: 15.93 billion gallons. It also proposed targets of 16.30 billion gallons for 2015 and 17.40 billion gallons for 2016. EPA believes “the proposed standards to be ambitious but within reach of a responsive marketplace.”

Once the proposal is published in the Federal Register, it will be open for public comment through July 27, with the goal of finalizing the targets by November 30. EPA noted that this would put the agency back on track to meet the statutory deadline for finalizing annual RFS blending targets. EPA will hold a public hearing on the proposal on June 25 in Kansas City, Kansas.

The bottom line for the petroleum equipment industry: If the renewable fuels targets for 2015 and 2016 are finalized as proposed, the market for E15-compatible equipment will continue to be more market- and incentive-based (see article that follows) than statutorily driven.

EPA Proposes RFS Targets

USDA Grants for Ethanol Dispensers

NREL Releases E15 Infrastructure Report




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

The U.S. Department of Agriculture (USDA) is offering states up to $100 million to encourage the use of gasoline dispensers that blend high amounts of ethanol—like E15 or E85—into the fuel. The announcement came May 29, the same day EPA proposed its biofuel blending targets for 2014-16.

The USDA program will match state funds to help purchase and install dispensers compatible with gasoline blended with greater amounts of ethanol. USDA hopes to double the number of ethanol blending dispensers in the country through the new grants. The project will be formally launched in a Notice of Solicitation of Applications later this month.     

E15 and Infrastructure is a 44-page report (PDF) produced under direction of the Renewable Fuels Association (RFA) by the National Renewable Energy Laboratory (NREL). The paper, as the title suggests, addresses the compatibility of E15 with equipment at refueling stations. Findings of interest to the equipment industry contained in the report include:

  • Refueling equipment manufacturers have improved their sealing materials for compatibility with a wide range of fuels.
  • The majority of installed tanks are compatible with E15.
  • A literature review going back 15 years was conducted to determine if there were any negative impacts during the multi-year deployment of E10 nationwide. No incidents of E10 causing known releases (also referred to as leaks) from UST systems were identified during the deployment of E10. This is not to say that there were no issues, just that there were no known releases and no reports on this subject.
  • Credit card companies are requiring retail fueling stations to update their dispensers to accept new chip and PIN secure credit cards by October 2017, at which time fraud liability would switch to station owners if they have not updated their equipment. This presents an opportunity to increase E25 UL-listed equipment through a retrofit kit. If electronics are being upgraded to accommodate the new credit cards or if a station owner must purchase a new dispenser, the owner could pay a minimal amount more for an E25 dispenser. If a new dispenser is purchased, this may also present an opportunity to upgrade to an E85 dispenser, but at significant additional cost.
  • There are approximately 60 pieces of equipment at a station designed to handle fuel and vapor. All known manufacturers’ website product pages and catalogs were reviewed for every equipment type and model to determine if the products could be used with blends above E10. All known manufacturers were contacted to review compatibility lists. This resulted in an extensive list—shown in one of the report’s appendices—of equipment compatible with blends above E10.   

The study was funded by the Blend Your Own Ethanol campaign, a joint effort of the American Coalition for Ethanol (ACE) and RFA.  

Firms touting natural gas as a transportation fuel face headwinds in 2015, now that the cost of diesel has fallen. Natural gas, either liquefied or compressed, had been winning over owners of truck fleets looking to save on fuel in recent years. Because the price gap has narrowed, the switch to gas engines is less compelling. Still, long-term prospects for natural gas as a motor fuel remain positive. Odds are the price gap between natural gas and diesel will widen again. Meanwhile, more motor builders are designing gas-fired truck engines, giving fleets more options.”—The Kiplinger Letter, May 15, 2015.
Hillary Clinton writes in The Gazette of Cedar Rapids that the United States should continue supporting and “improving” the RFS, arguing that it can be a “powerful tool” to boost development of advanced biofuels and expand the role of renewables in the nation’s fuel mix. “[W]e also can’t ignore significant changes to the energy landscape since the RFS was expanded in 2007,” she writes. “We have to get the RFS back on track in a way that provides investors with the certainty they need, protects consumers, improves access to E15, E85, and biodiesel blends, and effectively drives the development of cellulosic and other advanced biofuels.”
The percentage of companies with at least 10 percent of their total revenue from e-commerce grew 14 percent in 2014 from 2013.”—MDM Special Report: 2015 State of E-Commerce in Distribution.  

It is time to begin the process of electing members to the PEI Board of Directors. Under PEI’s election procedure, the official representative or a duly appointed alternate must request to have his/her name included on the ballot. An email for that purpose was sent June 1 to the official representatives of PEI member companies from the odd-numbered districts of PEI’s distributor and manufacturer divisions, as well as PEI’s service and construction division. The form must be received in Tulsa by the close of business on Monday, June 22, for the name to appear on the ballot. If you have misplaced your form and need another one, email Teresa Jonkman at tjonkman@pei.org.   

Franklin Fueling Systems,
Madison, Wisconsin, has made two additions to its North American sales team. Gordon Carlson (gcarlson@franklinfueling.com; (816) 854-9725) has been named Midwest territory manager. Based in Kansas City, Missouri, Carlson will be responsible for sales in Kansas, Nebraska, Missouri and southern Illinois. Luis Martinez is now territory manager, Florida and Caribbean. Based in the Miami area, Martinez can be reached at (407) 278-4341 or Luis.Martinez@franklinfueling.com.

Turkey installation company
. ETS Yapi Insaat Muh. Tic. Sti., Site Mah, Samanyolu Cad. Gurler Sokak, Upstone Residence No. 68 B Blok D:4, Umraniye, Istanbul, Turkey 34760, has applied for service and construction division membership. Tamer Ozbey is general manager of the firm, which was established in 2009. The firm provides turnkey installation of fuel and LPG dispensers, automation systems and infrastructure materials. Sponsored for PEI membership by Bob Chase, Bennett, Spring Lake, MI. www.etscons.com
Florida credit card and processing center. Service First Processing, 4401 North Federal Highway, Suite 101, Boca Raton, Florida 33431, has applied for affiliate division membership. David James is relationship manager for the firm, which was established in 2010. The company processes credit cards for merchants. Sponsored for PEI membership by Chris Monroe, Monroe, Arlington, TX. www.sfprocessing.com
Connecticut service firm. NTSS, Inc., P. O. Box 336, Putnam, Connecticut 06260, has applied for service and construction division membership. Christopher J. Fischkelta is vice president of the firm, which was established in 1987. The company specializes in the service of petroleum equipment. Sponsored for PEI membership by Craig Smith, Smith&Sons, Chinchilla, PA.


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 © 2015 All rights reserved.

return to top of page

© 2015
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.