June 19, 2019 | Vol. 69, No. 12
Dear PEI Member:
But developments in the courts and the marketplace during the past few days suggest the future of E15 remains unclear.
Litigation. Within hours after publication of the rule in the Federal Register, the American Fuel & Petrochemical Manufacturers (AFPM) filed suit in federal court to block the waiver. AFPM President and CEO Chet Thompson explained that in AFPM’s view, the “plain language of the Clean Air Act does not authorize an RVP waiver expansion beyond E10. Nothing has changed — a waiver for E15 is unlawful, plain and simple.”
Anticipating such a response, the EPA included in the final rule a statement that it was “adopting a new statutory interpretation” of the Clean Air Act based on its conclusion that E15 is “substantially similar” to E10 when used in 2001 and newer model year light-duty vehicles. The agency further noted that the “conditions that led us to provide the original 1-psi waiver for E10 in 1990 are equally applicable to E15 today.”
Ethanol advocate Growth Energy filed a motion June 12 to intervene in the AFPM litigation in order to support the EPA rule. “[T]he law is on our side,” said Emily Skor, CEO of Growth Energy. “We know — and the EPA has said — the agency has clear authority to implement the law through appropriate regulations. A move toward cleaner fuels is exactly what Congress intended under the Clean Air Act.”
Geoff Cooper, CEO of the Renewable Fuels Association (RFA), indicated his group also would seek to intervene. The RFA issued a statement saying, “EPA’s legal analysis is sound and is overwhelmingly supported by the public record and a plain reading of the statute. … AFPM’s desperate effort to have the court overturn President Trump’s E15 rule will fail and reflects a callous desire to protect market share at the expense of rural America.”
Ethanol Production. The U.S. Energy Information Administration reported ethanol production surged 5% to 1.096 million barrels a day immediately after the ruling. RFA predicted E15 usage will double to as much as 800 million gallons in 2019.
Year-Round E15 Sales Begin
by e-mail to the editor, Rick Long at email@example.com
or join the discussion in the Petroleum Equipment Forums
Retailer Responses. The National Association of Convenience Stores (NACS), the Society of Independent Gasoline Marketers of America (SIGMA) and NATSO, the national association representing truck stops and travel plazas, gave lukewarm assent to the EPA action, affirming in a joint statement that they “do not object” to the new rule. The Petroleum Marketers Association of America (PMAA), however, remains concerned that E15 is not sufficiently compatible with underground storage tank (UST) system materials.
Individual fuel marketer response was muted, with just two E15 developments of note after the EPA’s rule. Casey’s General Stores said June 3 it would add E15 at more than 60 stores this summer, as part of a previously announced plan to sell E15 at up to 500 Casey’s locations over time. Nuvu Fuels, a two-location retail operation in Michigan, said E15, rather than E10, will now be its primary unleaded fuel.
Our take: The E15 waiver is a big step. E15 availability and sales will see incremental growth during the next year, as major retailers introduce the fuel at new sites and other strategic locations. But the higher-level blend is a long way from making major inroads into the nation’s vehicle fuel supply.
REVISES LEAK DETECTION TEST PROCEDURES
According to a notice from the EPA’s Office of Underground Storage Tanks (OUST), existing release detection equipment that was evaluated using the 1990 protocols and listed by the National Work Group on Leak Detection Evaluations (NWGLDE) does not need to be re-evaluated and relisted. The 2019 protocols must be used for new equipment and for equipment modifications for which the manufacturer desires re-evaluation. Details and background on the new protocols can be found here.
SAFETYLETTER NOW AVAILABLE IN SPANISH
The Spanish edition of the SafetyLetter — Boletín de Seguridad — is the first PEI resource specifically developed for Latin American members. The new edition also should help Spanish-speaking employees in U.S. member companies deepen their safety knowledge.
To receive the Boletín de Seguridad del PEI or sign up personnel in your organization for the monthly Spanish edition, complete this short form.
BOARD OF DIRECTORS CANDIDATE DEADLINE IS TODAY
Official representatives or duly appointed alternates who wish to run for the board must submit an application to put their names on the ballot. The deadline for requests to be put on the ballot is today, June 19.
To learn more about serving on the board of directors, visit www.pei.org/election.
To submit your request to be on the ballot, complete this form by midnight tonight.
distributor. Shyrispro y Servicios S. A. AV.
America N37-17 y Naciones Unidas, Quito, 170510, Ecuador, applied for
distributor membership. Gustavo Santamaria is head of sales for the company,
which was established in 2014. Shyrispro y Servicios S.A. is an equipment
distributor, consultant and contractor for commercial and retail gas
stations. Sponsored for PEI membership by J. Gregory Hockman, Hockman-Lewis
Ltd., West Orange, New Jersey.
Canadian contractor. Keller Construction, 11430
160 St. NW, Edmonton, Alberta, Canada T5M3Y7, applied for service and
construction division membership. Ewen Campbell is human resources director
for the company, which was established in 1962. Keller Construction does
fueling system contracting, designing and construction. Sponsored for PEI
membership by Tiina McCombie, National Energy Equipment Inc., Mississauga,
Malaysian distributor. Polyflo Sdn Bhd, No. 6,
Jalan TSB 7, Taman Industri Sungai Buloh, Selangor, 47000, Malaysia, applied
for distributor division membership. Wan Hisham Ismail is sales director for
the company, which was established in 1989. Polyflo Sdn Bhd is a fueling
solutions provider. Sponsored for PEI membership by Mike Chuah, Flexrite,
Sdn. Bhd., Selangor DE, Malaysia.
Rican service provider. JFM Services Corp., Urb.
El Plantio G22, Toa Baja, Puerto Rico 00949, applied for service and
construction division membership. Juan Mattei is president of the firm,
which was established in 2009. JFM Services Corp. provides maintenance and
construction services for gas stations. Sponsored for PEI membership by Ken
Neeley, ESCO Manufacturing Inc., Tampa, Florida.
Arkansas software company. Gas Pos, 419 Main St.,
Suite 200, North Little Rock, Arkansas 72114, applied for affiliate division
membership. Ernie Dye is sales manager for the firm, which was established
in 2015. Gas Pos is a software-as-a-service solution that includes an EMV
compliant point-of-sale system providing advanced payment security.
Sponsored for PEI membership by Lonny M. Goodwin, Lonny M. Goodwin Co. Inc.,
Puerto Rican maintenance company. Caribbean Contracting Services, P.O. Box 367321, San Juan, Puerto Rico 00976, applied for service and construction division membership. Juan Perez is president of the firm, which was established in 2013. Caribbean Contracting Services provides UST and AST maintenance and construction services for gas stations. Sponsored for PEI membership by Paul Doyle, Petroleum Marine Construction, LLC, Oakland Park, Florida.
insurance nonprofit. Petroleum Storage Tank Fund,
P.O. Box 83720, Boise, Idaho 83720, applied for affiliate division
membership. David Wattles is claims examiner for the organization, which was
established in 1990. Petroleum Storage Tank Fund is a state-created,
not-for-profit insurance organization that provides coverage for approved
petroleum cleanup costs and third-party claims resulting from covered
accidental releases. Sponsored for PEI membership by Steve King, Leonard
Petroleum Equipment of Boise LLC, Boise, Idaho.
Colorado compliance company. Storage Tank
Technology Inc., 685 W. Gunnison Ave., Suite 102, Grand Junction, Colorado
81501, applied for service and construction division membership. Brett Redd
is president of the firm, which was established in 1987. Storage Tank
Technology Inc. performs compliance inspections, compliance management,
environmental testing and remediation services. Sponsored for PEI membership
by Craig Hoyer, Kubat Equipment & Service Co., Denver, Colorado.
Illinois solutions provider. Sevan Multi-Site
Solutions, 3025 Highland Parkway, Suite 850, Downers Grove, Illinois 60515,
applied for service and construction division membership. Matthew Baum is
senior project manager for the company, which was established in 2011.
Sevan Multi-Site Solutions provides program management, fuel systems layout
and design services, comprehensive construction services, fuel system
installations, tank and line replacements, and tank top upgrades. Sponsored
for PEI membership by Mark Pawuk, Empaco Equipment Corp., Richfield, Ohio.
ADMITTED TO PEI
Manage Your Subscription
This newsletter is a member benefit of the Petroleum Equipment Institute intended for *|FNAME|* *|LNAME|*. PEI® and the PEI mark are registered trademarks of the Petroleum Equipment Institute. Copyright © 2019 All rights reserved.
The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.