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TOP OF THE NEWS tise in developing innovative fueling solutions to lower the ownership and operational costs of natural gas vehicle (NGV) fueling stations. With the development of shale resources dramatically increasing the amount of low-cost natural gas in North America, the GE-Chesapeake collaboration can help incentivize operators to put more NGVs on the nation's highways. n Ultra-low sulfur fuel set to debut in New York By Stephen Bennett New York is ahead of the pack. Effective Sunday, July 1, separate regula- tions passed by New York City and New York State will require ultra low sulfur fuel oil—that is, heating oil with sulfur con- tent of no more than 15 parts per million (ppm). That deadline puts New York years ahead of other states intending to switch to lower sulfur heating oil that burns cleaner and results in fewer emissions. How will New York's head start affect the wider market and the indus- try? That's something fuel oil deal- ers, refiners and trade associations in both New York and other northeastern states are waiting to see. Grant Brown, vice president of marketing and investing for Sprague Energy, Portsmouth, N.H., a supplier of energy products including heating oil, said one of the impending challenges in New York is management of inventory with sulfur content higher than 15 ppm. Sprague Energy has large volumes of higher-sulfur fuel oil in storage in New York; the company plans to move it to other markets, a project that has costs associated with it, Brown noted. Whether supply of the low-sulfur fuel oil in New York City and in the state will be an issue remains to be seen as well, Brown and others said. New York state will need 15 ppm heat- ing oil from refiners who don't have to supply it to customers anywhere else, Brown pointed out. That could mean heating oil customers competing with diesel fuel customers for the same product. "There is a potential for prices to increase," Brown said. 8 MARCH 2012 New York City adopted its require- ment and its deadline first, and New York State followed, urged on by, among others, the Empire State Petroleum Association (ESPA) which represents marketers of liquid petro- leum products including fuel oil. "We pursued the legislation," Tom Peters, chief executive officer of the association, said. In addition to the benefits that ultra low sulfur fuels have for consumers, Peters said, the prospect of two differ- ent fuel oil markets—one in New York City and another throughout the rest of the state—did not bode well. "The oil heat marketers in the met- ropolitan New York City area were very concerned that if they went by themselves they would wind up with a boutique fuel and all the premiums that might be attached to that," Peters said. "Their customers in the New York City area would be burdened with higher costs," he added. New York City also will require, beginning Oct. 1, that ultra low sulfur fuel oil contain two percent biofuel. New York State has no such man- date—yet. "We're working with the New York State legislature to see if we can do likewise at the state level," Peters said. "That is one of our priori- ties this year—to get a bioheat man- date for the entire state of New York consistent with what New York City already has." As for ESPA members' readiness for dealing with the ultra low sulfur fuel, Peters said, "Most of them are rack buyers so they're expecting that the terminals in the state are going to have the product available for them on July first. If they're concerned, they're concerned about whether or not there will be a premium for that fuel and, if so, how much? I don't think anybody can answer that question yet." Peters said, "It looks like there will be adequate supply. That may or may not change as a result of the refinery closings in Pennsylvania." "The only concern that I'm really hearing is that some suppliers said to the legislature that they may not be prepared to provide the 15 ppm [product]," Peters said. "We've been assured by other suppliers that even though one or two or three may not be able to supply this year because they might not have made necessary upgrades to their refining capacity, these other suppliers could step in and fill that void." INDUSTRY ANNOUNCEMENTS n How to go 'green:' Station installs solar panels, LEDs, geothermal The Highland Chevron gas station and ExtraMile food market in Beaverton, Oregon, was recently rebuilt to incorpo- rate extensive "eco-renovations." Green features of the gas station and convenience store include 180 solar panels on the fueling canopy and store rooftop, capable of delivering nearly one-third of a typical gas sta- tion's electricity needs, reported Cree, Inc. Durham, N.C., a manufacturer of light emitting diode (LED) systems and one of the product suppliers for the project. Highland Chevron also installed a geothermal well that exchanges heat through groundwater to naturally cool water for the store's refrigeration cases, while water pipes store heat from cool- ing units underground for hot water usage, Cree said in a press release describing the project. The lighting manufacturer said that the installation of its interior and exte- rior LED lighting delivers an estimated 70 percent energy savings over the old non-LED fixtures. The Highland Chevron store is fully lit with Cree LED luminaires under the exterior canopy and inside the convenience store, the manufacturer said. According to Bob Barman, owner of the Highland Chevron, the indoor and outdoor LED lighting allows the station to consume a third less energy than typical 24-hour convenience stores and petroleum stations. Barman estimates that the new luminaires should provide payback in 2.5 years. NPN Magazine n www.npnweb.com