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NPN Magazine July/August 2012

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

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TOP OF THE NEWS RFA offers 'E15 Retailer Handbook' To ensure E15 is being appropriately and legally offered to consumers T he Obama administration has given its final approval for the sale of E15 ethanol blends under the waiver conditions set by the Environmental Protection Agency (EPA). U.S. Agriculture Secretary Tom Vilsack announced on behalf of the administration that all regulatory hurdles to E15 had been addressed by the ethanol industry. EPA has notified the Renewable Fuels Association (RFA) that its E15 Retail Advisory addresses the agency's concerns with residual fuel left in gas pumps with just a single hose. The advisory is now incorporated into the RFA's "E15 Retailer Handbook" (see link below to the RFA website to download the handbook and the RFA's EPA-approved "misfueling mitigation plan.") To further help retailers comply with EPA requirements designed to ensure E15 is being appropriately and legally offered to consumers, the RFA is also offering approved and required E15 pump labels free to retailers. Here is more based on a statement issued by the RFA after the June 15 announcement of the EPA decision: "In the eyes of the federal government, E15 is a legal fuel for sale to cars, pickups, and SUVs made since 2001," said RFA President and CEO Bob Dinneen. "E15 has undergone the most vigorous testing and regulatory process of any fuel approved by the federal government. With all i's dotted and t's crossed as far as EPA is concerned, our undivided focus will turn to addressing state regulatory issues, identifying retailers wishing to offer E15, and paving the way to greater use of domestically produced ethanol." Fuel providers and retailers wishing to offer E15 must first register with EPA. In so doing, these companies must state their plans to adhere to the RFA's EPA-approved misfueling mitigation plan. A copy of that plan and the E15 Retailer Handbook can be found at www.EthanolRFA.org. n Merchants group: Economy benefits from debit-card reform The Merchants Payments Coalition, which supports the reforms that created more transparency in the debit-card busi- ness, said it welcomed news that Home Depot is passing along savings from those reforms to customers. Home Depot, the nation's fourth- largest retailer, has cut prices on more than 3,000 products since the Durbin 6 JULY/AUGUST 2012 In cooperation with Growth Energy, the RFA has also ini- tiated a nationwide fuel survey program as required by EPA to ensure stations offering E15 are adhering to misfueling mitigation requirements, such as proper labeling, ethanol content, and vapor pressure. "We are committed to ensuring a safe and smooth introduction of E15 for consumers and retailers alike," said Dinneen. "Change often breeds confusion and as stations begin to offer E15, the RFA will proactively work with those retailers to educate consumers on the appropriate use of E15 and the benefits of greater domestic ethanol use. We believe it is possible that gallons of E15 could be sold under the waiver conditions before the end of the summer." Hurdles to the widespread adoption of E15 remain, including pending litigation, threats of congressional inter- vention to prevent the sale of E15, and state regulatory issues. Also limiting the fast adoption of E15, particularly in summer months, is the requirement that E15 meet stricter federal evaporative emissions standards, known as Reid Vapor Pressure or RVP. Currently, most summer gasoline formulations would likely exceed federal limits when blended with 15% ethanol. An RVP waiver for 10% ethanol blends is in place allowing for year round sale. Such a waiver should be extended to E15 as well given that RVP differences are indistinguishable between and 10% and 15% ethanol blends. "It is no secret that some in the petroleum industry and other anti-biofuel voices will mount an all assault to pre- vent E15 from entering the market," said Dinneen. "But, America's ethanol industry is fully committed to working with stakeholders across the supply chain, and with con- sumers directly to offer American drivers with the choices at the pump—lower cost choices at that—for which they overwhelmingly desire." Amendment lowered bank fees on debit-card transactions, or "swipe fees," starting in October, the coalition said in a statement dated June 13 and posted on its web site. The statement cited a comment by a Home Depot executive to a banking publication: "The money saved [by] Durbin goes into the pool of savings, lowers our overall operating costs and allows us to reinvest in the business to lower prices," said Dwaine Kimmet, Home Depot's treasurer and vice president of credit, to American Banker recently. Critics claim that merchants are sitting on the savings from reformed swipe fees, the coalition said, but publicly held retailers can refute that charge in their reported financial results. Their operating margins, for instance, would have risen were retailers sitting on savings, the mer- chants say. But in fact margins have shrunk since October because retail- NPN Magazine n www.npnweb.com

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