May 7, 2021 | Vol. 71, No. 9
|Dear PEI Member:
The EPA has not yet indicated if, how or when the rulemaking will proceed. One reason might be the scale of the industry’s response to the proposal. EPA received 2,297 submissions during the 90-day comment period. The longest (from Growth Energy) is 159 pages. Commenters represented ethanol advocacy groups, state regulators, the Department of Defense, UST component manufacturers, fuel marketers, major oil companies, auto and motorcycle dealers and PEI members.
After winnowing out duplicates and comments with confidential information, EPA posted for public viewing 89 representative submissions. PEI read every one.
Here’s a summary of what EPA will have to address—if the rulemaking proceeds in one form or another.
E15 Dispenser Labels
by e-mail to the editor, Rick Long at email@example.com
Soften the tone. Although few commenters endorsed elimination of the E15 label, ethanol advocates uniformly supported modifications similiar to those proposed by EPA. The bold colors and strong language of today’s label depress E15 sales, according to these stakeholders. Softer colors and friendlier language, they believe, would relieve the public’s fears and boost sales of the mid-level blend.
Make it stronger. Auto dealers and many state regulators recommended strengthening the label’s language. In support of this position, these commenters said:
Among the “make the label stronger” crowd, one popular suggestion was changing the label’s header from “Attention” to “Warning.”
The Energy Marketers Association (EMA) requested language encouraging consumers to check their vehicle’s warranty for E15 compatibility. EMA also wants EPA to ban the term “Unleaded88” in E15 marketing and require that nozzles dispensing E15 be labeled accordingly.
NACS, SIGMA and NATSO said they have no problem with a stronger label, but recommended that fuel marketers be allowed to keep the current version if they prefer.
UST Ethanol Compatibility
Ethanol advocacy groups uniformly approved of the loosened compatibility requirements. Stakeholders who questioned the proposals offered seven main objections:
PEI CONVENTION REGISTRATION OPENS
Early bird discounts save $300 off the on-site rate. Group discounts are available for members that register four or more attendees at the same time. Register and learn more about the schedule, health and safety precautions, cancellation policies, housing options and more here.
In related news, Chicago Mayor Lori Lightfoot announced on May 4 that her goal is to fully reopen the city by July 4. Illinois Gov. JB Pritzker also confirmed that Chicago’s first major 2021 event, the Chicago Auto Show, will be held July 15-19 at McCormick Place, the site of the 2021 PEI Convention at the NACS Show.
INDIANA REJECTS STRICTER E15 LABEL
The governor’s April 26 veto message states, “The Environmental Protection Agency already mandates that all E15 pumps have a label clearly advising consumers of the possible implications of using the fuel in certain engines. I find this additional layer of government unnecessary and confusing."
SOME EV OWNERS RETURN TO GASOLINE
Two factors correlated most strongly with decisions to switch:
For BEV owners, the lack of at-home Level-2 charging was a particular source of dissatisfaction.
Discontinuation rates were 18.1% for BEV owners and 20.1% for PHEV owners. Some 4,167 consumers participated in the survey. The results have a 2%± margin of error.
The study’s authors noted that financial incentives, economical availability of at-home Level-2 charging, acquisition of additional household vehicles, battery range advances and other variables could cause purchasers who switched to gasoline to change their minds again.
PEI MEMBER NEWS
JF Petroleum Group, a MidOcean Partners portfolio company, acquired New Orleans-based Rittiner Equipment Company Inc., a full-service provider of petroleum equipment, maintenance and construction services in the Gulf Coast region.
Lucas Ford Associates Inc. appointed Hunter East as a new sales associate, effective June 21. East, a recent graduate of Keiser University, will be based in Charlotte, North Carolina.
Northwest Pump purchased the assets of Everett, Washington-based D.R. Smith Co. Inc., dba Air Compressor Service.
Petro Supply is celebrating its 50th anniversary in 2021. President and CEO Galen Heaps founded the Elkridge, Maryland-based distributor in 1971. Vice president and COO Brandon Heaps joined the company in 1999.
Petroleum Containment Inc (PCI) named Chris Cummings regional sales manager for Arkansas, Iowa, Louisiana, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota and Texas. PCI also named Renee Mackenzie regional sales and marketing manager for Michigan and Indiana.
Seneca Companies acquired petroleum service contractor Titan Fuel Systems of Oklahoma City, Oklahoma. Scott Cole, founder of Titan Fuel Services, will be branch manager for this new Seneca location.
Mexican manufacturer representative. CTN, Lerdo de Tejada 1422 Ote. Torreón, 27000, Mexico, applied for affiliate division membership. Marco Tulio Sandoval Rodríguez is COO of the company, which was established in 2000. CTN offers IT solutions (hardware, software and services) for the fuel sector in Mexico. Sponsored for PEI membership by Pablo Gualdi, ATIO Group, Mexico City, Mexico. www.ctn.mx
Canadian affiliate. EcoTank Canada, 48 Centennial Road, Unit 21, Orangeville, Ontario, L9W 3T4, Canada applied for affiliate division membership. Robert Mair is president of the company, which was established in April 2020. EcoTank Canada manufactures an eco-friendly windshield fluid refilling solution. Sponsored for PEI membership by Allison Ramdial, CSC ServiceWorks, Burlington, Massachusetts. www.ecotankcanada.com
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The TulsaLetter 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.