EPA Proposes Rule To Regulate HAP Emissions

Stage II/Widespread Use

PHMSA Registration Fee Raises Question

Tobacco Companies Can Still Sell Light Cigarettes

You're Invited! Blues Night Out With Buddy Guy!

SIGMA Legislative Meeting

SIGMA/NPN/OPIS Executive Leadership Conference

Biofuels Share Group

Wyden Blocks Martella Nomination for Benzene

Advertising and Sales Position open at SIGMA

EPA PROPOSES RULE TO REGULATE HAP EMISSIONS
This week EPA announced the release of a proposed rule to regulate hazardous air pollutants (HAP) from "area sources" in the gasoline distribution industry sector, including bulk distribution facilities as well as gasoline outlets .   Area sources are "non-major" sources of HAP ("major" sources emit 10 tons per year of a single HAP or 25 tons or more of all HAP combined).   The HAP contained in gasoline which EPA's proposal is designed to control is benzene. The proposal is consistent with information received from EPA earlier this year (and reported in a Weekly Report from May 2006). Under the proposal, gas stations in "urban" areas (defined as those generally within a metropolitan statistical area with a population of 250,000 or more) would be required to convert to submerged fill processes (instead of splash fill) for storage tank loading.  The proposal does not address "Stage II" vehicle refueling.  The agency also is requesting comment on the possibility of requiring stations in urban areas to install vapor balancing equipment that controls emissions during storage tank refilling.  While existing tanks would not have to be retrofitted with "two point" vapor balancing systems, certain CARB specifications related to capture efficiency would need to be met. 

The rule also would cover emissions at bulk distribution facilities.  For these facilities, EPA is proposing to require:  (1) best seals on storage tanks at terminals and pipeline facilities; (2) use of submerged fill pipes when loading storage tanks at bulk plants; (3) vapor processors to control tank truck loadings at bulk terminals; (4) use of submerged fill pipes to control tank truck loading emissions at bulk plants; (5) leak testing of tank trucks and railcars; and (6) checking for leaks and using good housekeeping procedures to prevent evaporation of gasoline.  The agency also is requesting comment on an alternative option that would only require items (1) and (3) above. 

EPA is claiming that the compliance costs for the proposed approach will be more than offset by the value of the recovered gasoline (or gasoline that is saved from evaporating).   SIGMA's Legislative Committee will discuss this proposal at the Annual Meeting in Chicago and decide whether to file comments on the proposal.  SIGMA counsel will be preparing a detailed legal memorandum on the proposal in the near future.

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STAGE II/WIDESPREAD USE 
SIGMA submitted comments to EPA this week regarding the approach the agency is considering to define the point at which "widespread use" of onboard refueling vapor recovery (ORVR) is achieved, thereby triggering elimination of the Clean Air Act mandate for Stage II vapor recovery systems (VRS) in certain ozone non-attainment areas.  The comments urge EPA to adopt a reasonable, common sense definition of "widespread use," and criticizes a recommended approach that would define the term in as the point at which emissions captured through ORVR is equal to emission reductions achieved through combined use of ORVR and Stage II systems.  The comments also urge EPA not to grant SIP credit to States for continued Stage II requirements after the "widespread use" date.  EPA intends to issue guidance to States (most likely in early- to mid-2007) on how to determine when widespread use is achieved.  SIGMA continues to work with the agency on this issue. The comments can be viewed on SIGMA’s website, www.sigma.org. 

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PHMSA REGISTRATION FEE RAISES QUESTION
A Pipeline and Hazardous Materials Safety Administration (PHMSA) proposal to raise registration fees for hazmat transporters and carriers generated more than 800 comments, including letters from individual propane gas industry businesses, hazmat transport industry groups, and state and local governments.  PHMSA proposed to increase hazmat registration fees for large business in August to $1,975 for the 2007-2008 registration year and $2,975 in the 2008-2009 registration year.  The largest number of comments came from individual propane gas companies who argued that the proposal only served to penalize the propane industry, excessively fining them for already having safety programs in place. 

The registration fees paid by hazmat shippers and carriers fund hazmat emergency preparedness grants, which the propane and hazmat industries also questioned in their comments.  They wanted to know how and to whom PHMSA distributed the grants to and whether the administration would illegally collect too much money through the newly proposed fee structure.  On the other hand, various states and emergency responder groups said the importance of fully funding the hazmat grants could not be overstated, claiming that no other source could cover these funds. 

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TOBACCO COMPANIES CAN STILL SELL LIGHT CIGARETTES
On Tuesday, a U.S. federal appeals court handed down a decision that allows tobacco companies to continue selling cigarettes labeled “light” and “low tar” until the companies’ appeals can be reviewed. The decision by the U.S. Circuit Court of Appeals for the District of Columbia also allows the companies to continue to use the advertising campaigns that a federal judge in August ruled were misleading. This ruling puts a hold on the order that would have required retailers to post countertop and header display signs saying that manufacturers lied about light and low tar cigarettes.  If retailers didn't do it, they would not have been able to have merchandising agreements with tobacco manufacturers. If they did it, it would have taken up valuable retail space.  The ruling says that retailers will not have to do that until an appeal of the case is decided (which won't happen until next year).  
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YOU’RE INVITED! BLUES NIGHT OUT WITH BUDDY GUY!
On Friday Night, November 10, BP will show SIGMA annual meeting attendees to a “Blues Night Out” with five-time Grammy Award winner and Rock and Rock Hall of Fame inductee Buddy Guy at Buddy Guy’s Legends nightclub in Chicago! SIGMA will start running shuttle buses from the Fairmont’s Motor Lobby starting at 8:15 p.m.  If you’re planning to go to Blues Night Out after dinner and do not have enough time to make it back to the hotel, please arrange for your own transportation to Buddy Guy’s Legends nightclub, located at: 754 S. Wabash, Chicago IL, 60605.  The party goes from 8:30 p.m. – 11:00 p.m. Your V.I.P. pass will be in your registration materials. You’ll need it to get into the club. Don’t miss out on this fun event!
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SIGMA LEGISLATIVE MEETING
The SIGMA Legislative Committee Meeting will be held on Saturday, November 11, 2006, 9:00 a.m. - 12:00 noon, at the Fairmont Hotel in Chicago during SIGMA’s Annual Meeting. Slated to be a packed house session, the committee will discuss: (1) 2006 Congressional Election Results and What They Mean for Independent Marketers in the 110th Congress; (2)State BioFuels Mandates and Avenues for Federal Legislative Action; (3) Media and Federal Legislative Attention to Retail Motor Fuel Temperature Compensation; (4) Underwriters Laboratories Notice on E-85 Dispenser Certification; (5) Changes in Spot Market Pricing Methodologies; (6)Association Position on New Ozone Non-Attainment Standard under Development at EPA.  Other items in the agenda include credit card interchange rates; minimum wage, EPAct 2005; Stage II Vapor Recovery, and ULSD. SIGMA’s Annual Meeting will be held November 10-12 in the Fairmont Hotel in Chiacgo, IL. For more information on the meeting, or to register, go to www.sigma.org. Online registrations will no longer be accepted after Monday, November 6 at 5:00 p.m. EST.  You can always register onsite if you miss this deadline!
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SIGMA/NPN/OPIS EXECUTIVE LEADERSHIP CONFERENCE
SIGMA along with National Petroleum News (NPN) and Oil Price Information Services (OPIS) will hold the 2007 Executive Leadership Conference on February 11-14 in Aspen/Snowmass, Co., at the Silvertree Hotel and Wildwood Lodge. Philip K. Verleger, Jr., will share his views on what the U.S. oil markets might look like in the coming decade. Verleger is an expert on the economic structure of energy markets and the determination of energy prices. Plus, there will be a CEO Outlook 2007 panel that you won’t want to miss. And, don’t forget the wintertime activities! For more information, visit www.sigma.org. 
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BIOFUELS SHARE GROUP
SIGMA will host the final Share Group of 2006 in Kansas City on December 6-7.  “Biofuels: Beyond Basics—Where the Tire Meets the Road,” will address the ROI economics, operational issues and other refined details of marketing biodiesel and E10-E85. For more information on this program, go to SIGMA’s website, www.sigma.org.
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WYDEN BLOCKS MARTELLA NOMINATION FOR BENZENE
Sen. Ron Wyden (D-OR) announced on Thursday that he will block Senate consideration of the Roger Martella nomination to be general counsel of the Environmental Protection Agency (EPA) to protest a proposed rule he said would do little to reduce levels of benzene in gasoline.  Wyden claims that although a proposed EPA rule would cut the amount of benzene in gasoline by one-third, this reduction would be a national average and that some areas of the country could maintain current benzene levels. Wyden said he will maintain a hold on Martella’s nomination until EPA revises its proposal to reduce benzene levels in gasoline in Oregon and the Pacific Northwest.
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ADVERTISING AND SALES POSITION OPEN AT SIGMA

SIGMA is looking for a motivated, well organized, experienced Advertising Sales & Development Manager. The successful candidate will be a highly motivated team player to sell advertising & sponsorships for bimonthly magazine, annual membership directory, website, conventions and leadership conferences. This person will develop and maintain the current/potential client database, coordinate and place artwork, manage the billing and collection of advertising and sponsorship revenue, and design corporate proposals and additional revenue generating opportunities.  If you know anyone who would be a good fit, pass this information along! Call us at SIGMA at 703-709-7000 if you have any recommendations.
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SIGMA Weekly Report November 6, 2006 © Copyright SIGMA, 2006