Dear PEI Member:
As soon as a May 8
White House meeting involving President Trump, the U.S. Environmental
Protection Agency (EPA), the Department of Agriculture and senators from
corn-growing and oil-producing states ended, the headlines declared a major
victory for ethanol.
president, according to those first reports, had agreed to the nationwide,
summertime sale of E15 — a development ethanol advocates have long said
would boost E15’s position in the nation’s vehicle fuel supply. Texas
Republican Sen. Ted Cruz, for example, tweeted, “Terrific final decision
from @POTUS meeting: E15, year-round plus RINs for all exports. This is a
WIN-WIN for everyone.”
Why all the
The Clean Air
Act places extra restrictions on fuel sales from June 1 to Sept. 15. Warmer
summer temperatures cause highly volatile fuels to evaporate rapidly and
increase air pollution, particularly ground-level ozone. Volatility
typically is measured by the fuel’s Reid vapor pressure (RVP). The higher
the RVP, the greater the fuel’s tendency to evaporate. In most
jurisdictions, the allowable summertime RVP for non-flex fuel vehicles is 9
has an RVP closer to 10 psi, it cannot be sold legally for non-flex fuel
vehicles during the summer. A presidential decision to waive the summertime
RVP requirement for E15 would, therefore, be a very big deal.
initial post-meeting reports were a bit premature. Within hours, several
meeting participants began clarifying their statements. Republican Sen. Pat
Toomey of Pennsylvania described the outcome as an “agreement in principle.”
Iowa’s two Republican senators were even more cautious. Sen. Joni Ernst said
negotiators were “headed in the right direction.” Sen. Chuck Grassley
tweeted, “Need to see … plan. Devil in details.”
Did the White House Promise an E15 Waiver?
PEI Purchasing and Inventory Managers Conference
California Sues to Protect Fuel Efficiency Standards
News From the States
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House has yet to make an official statement, but a deputy press secretary
emailed Bloomberg News: “President Trump is pleased to announce that a final
decision has been made that allows E15 to be sold year-round, while
providing relief to refiners."
positive, but two big questions remain.
First, can a single package offer relief to the many
different types of refiners
involved in the ethanol supply chain? Some are large operations: others,
small. Some are importers; others, exporters. If negotiations with the
refiners break down, will that scuttle the E15 waiver?
the White House use emergency powers to allow nationwide E15 sales this
summer? If a summertime RVP waiver can be achieved only through a lengthy
regulatory or legislative process, the earliest possible effective date will
be the summer of 2019. Sen. Grassley, the staunchest advocate of E15 in the
meeting, has said he does not expect a waiver before 2019.
early claims about the May 8 meeting may have been exaggerated, I think a
deal will come together, the summertime waiver will be granted and, as a
result, E15 adoption by U.S. retailers will accelerate—but not this year.
SECRETS OF PURCHASING & INVENTORY MANAGEMENT
Register now for the
2018 PEI Purchasing & Inventory Managers Conference, June 7-9, at the
Doubletree by Hilton Orlando at Seaworld in Florida.
Attendees will participate in a range of discussions, including compensation
plans; cores and warranty management; customer freight policies; cycle
counts; controlling inventory with barcodes; and service management
software. Distribution expert Jason Bader also will speak on turning buyers
into investors; inventory turns and customer service; and sales vs. profits.
more, register and book your hotel,
LAUNCHES LAWSUIT TO PROTECT CAFE STANDARDS
Joined by 16 other states and the
District of Columbia, California filed a lawsuit on May 1 to prevent the EPA
from reducing federal corporate average fuel economy (CAFE) standards for
2022 to 2025 model year vehicles.
In April, EPA
Administrator Scott Pruitt announced that the EPA would revise rules
finalized shortly before President Obama left office that require automakers
to reach an average of 54.5 mpg by 2025. Pruitt based his decision on a
formal finding that the fuel economy standards were impractical, could
reduce vehicle safety and would impose higher costs on consumers,
particularly the poor.
Attorney General Xavier Becerra, who filed the action in the U.S. Court of
Appeals for the District of Columbia, said the Obama-era standards are
achievable and based on sound science. Becerra also noted that the states
joining the lawsuit represent 140 million Americans and nearly 43 percent of
the nation’s new car market.
participating in the lawsuit are Connecticut, Delaware, Illinois, Iowa,
Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon,
Pennsylvania, Rhode Island, Vermont, Virginia and Washington.
CONVENTION REGISTRATION OPENS MONDAY, MAY 14
Each year, the
PEI Convention at the NACS Show is the single best place to learn, grow,
gain inspiration and connect with others in the retail fueling industry.
registration for the 2018 PEI Convention opens Monday, May 14. The show will
be Oct. 7-10 in Las Vegas. To register and reserve your hotel rooms,
Arizona. The Arizona Department
of Environmental Quality (DEQ) will hold a May 14 stakeholder meeting to
discuss how best to amend the state’s underground storage tank (UST) rules
to align with the 2015 federal UST requirements. Interested parties may
attend in person or by logging into a DEQ video conference link. For more
information or to submit comments in advance, visit the
DEQ events page.
Colorado. Inspectors from the Colorado Division of Oil and Public
Safety report that 40 percent of the known UST releases in the state are
discovered through tank removals. Colorado’s updated Petroleum Storage
Tank Regulations, which took effect May 1, are available
Iowa. The Iowa Legislature approved $3 million for the Iowa Renewable
Fuels Infrastructure Program (RFIP) in fiscal year 2019. The program assists
Iowa retailers with the costs of installing blender pumps and other
equipment necessary for the sale of higher blends of ethanol and biodiesel.
Missouri. EPA Region 7 awarded a $100,000 grant to the Missouri
Department of Natural Resources to assist in cleaning up petroleum
contamination from leaking USTs in the state.
Texas. The Texas Commission on Environmental Quality (TCEQ) is
offering $15 million in grants to convert or replace heavy-duty vehicles
with natural gas power. TCEQ will accept applications for the
Texas Natural Gas Vehicle Grant Program through May 31, 2019.
Wisconsin. According to Oil Express, Wisconsin fuel retailers
sold a record 17.28 million gallons of E15 during the first quarter of 2018.
The first quarter figures are 90 percent of Wisconsin’s total E15 sales
Kirk Mercer, former PEI president and CEO of
R.W. Mercer Co. in Jackson, Michigan, received the 2018 Distinguished
Service Award from his alma mater, Jackson College. Mercer was recognized
May 2 at the Dr. Ethelene Jones Crockett Distinguished Alumni and Jackson
College Distinguished Service Award Reception, and May 5 at the Jackson
College commencement ceremony.
PDQ Manufacturing named One Stop Carwash Equipment Pvt. Ltd. as a
distributor of PDQ vehicle wash equipment for Victoria and Tasmania,
Seneca Companies appointed Loyd Phillips vice president of
safety. Phillips joined Seneca in 2017 as a strategic account manager for
the Waste Solutions division. He has 12 years of experience in safety roles
with large oil refineries and natural gas companies.
Snyder Industries’ parent company, Tank Holding Corp., named Greg
Wade CEO. Wade has been president of Tank Holding since 2017.
Steel Tank Institute/Steel Plate Fabricators Association (STI/SPFA)
elected Charles A. Frey Jr., vice president of Highland Tank and
Manufacturing, and Rich Horn, regional sales manager for Chicago Bridge
& Iron Co., to the STI/SPFA Hall of Fame. The STI/SPFA Hall of Fame honors
individuals who have made outstanding contributions to the organization.
Tanknology Inc. named Megan Stewart international manager for the
Americas, Australia and Africa. For the past three years, Stewart has served
as the international coordinator for Tanknology.
“Andeavor will change its name to Marathon Petroleum
(MPC) when the $23.3 billion merger deal is completed, an Andeavor
spokeswoman said on Tuesday. … As OPIS reported on Monday, MPC and Andeavor
plan to keep Andeavor and ARCO retail fuel brands after the merger ….
However, ... Marathon will be the dominant brand in the combined retail
asset.”—Oil Express News Alert, May 1, 2018
“The auto industry is finally getting traction on its quest to make 95
RON octane gasoline — basically the same grade as Europe’s regular and
the lowest grade of premium here — the new regular in the United States. …
That would eliminate today's grades, generally 87 octane for regular, 88-90
for midgrade and 91-94 for premium.”—Automotive News, Apr. 17, 2018
“At its annual meeting Wednesday, Audi announced an ambitious plan to
build 20 new electrified cars by 2025, most of them battery electrics.
The company says it will invest $47.6 billion (40 billion euros) into these
electrified cars, a new app platform for its cars, a new fleet of autonomous
vehicles to be launched in 2021, and into creating sustainable factories.”—Green
Car Reports, May 10, 2018
Missouri manufacturer. Shure Manufacturing, 1901
W. Main St., Washington, MO 63090, has applied for manufacturer division
membership. Ryan Wakeman is sales manager for the company, which was
established in 1941. Shure Manufacturing makes secure transaction drawers
used in convenience stores and other commercial settings. The company’s
products are sold through distributors. Sponsored for PEI membership by R.N.
Cole VSA Inc., Dallas, Texas.
- China Baotai Science and Technology Co. Ltd., Wenzhou,
Zhejiang, China (mfr)
- EAPetrol, Guayas, Ecuador (aff)
- NAX Petroleum, Superior Township, Michigan (s&c)