Funding Available To Build Colorado E85 Stations
7-Eleven Buys 10 McKee Oil Stations
Holly to Upgrade Western Refineries
New Mexico To Offer Alternative Fuel Incentives
Self-Extinguishing Cigarettes Mandated in California

FUNDING AVAILABLE TO BUILD COLORADO E85 STATIONS

DENVER, CO. — In an effort to increase the number of ethanol fueling sites available to consumers in the state of the Colorado, The Governor's Ethanol (E85) Coalition is making funds available for the installation of alternative fuel equipment, pumps, and other infrastructure additions.

Grants will be awarded to service stations based on criteria including the ability to obtain a long-term supply of ethanol at a set price, the number of alternative fuel vehicles in the area of the station, and the number of alternative fuels marketed at the location. Preference will be given to station locations near an agricultural community or near a major highway.

The Coalition will provide partial funding for ethanol projects not to exceed $15,000 or a maximum of 75% of the after-tax incentive project costs, whichever is less. The Coalition money would be offered in addition to state and federal tax incentives available to service station owners.

In addition to financial assistance, the Coalition will offer E85 marketing and technical assistance to those chosen for funding.

For more information, service station owners are encouraged to contact Gerry Harrow, Chairman of the E85 Coalition, Gerry_Harrow@nrel.gov or or Rob Pearson, Rob.Pearson@state.co.us, 303-866-2163.

7-ELEVEN BUYS 10 MCKEE OIL STATIONS

DALLAS, TX. — 7-Eleven, Inc. has purchased 10 gasoline stations with convenience stores in the greater Salt Lake City area from McKee Oil Company. The price for the deal was not disclosed.

All of the sites sold marketed gasoline under the Phillips 66 brand. 7-Eleven officials said they will determine in the future if they will switch the stations to their own 7-Eleven-branded fuel.

McKee Oil will continue to operate seven c-stores in the area; the sites were not included in the sale because they were deemed too small for 7-Eleven's requirements.

7-Eleven stated that the purchase is part of the company's strategic growth plan to expand in areas where they currently operate 7-Eleven stores.

With the purchase of the McKee Oil stations, 7-Eleven will operate 112 branded c-stores in northern Utah.

HOLLY TO UPGRADE WESTERN REFINERIES

WOODS CROSS, UT. — Holly Corporation announced it plans to begin upgrades on its Western refineries to increase volume and upgrade their output.

At the 85,000 bpd Navajo refinery in New Mexico, Holly will install a new 15,000 bpd hydrocracker and a new hydrogen plant for about $125 million. The updated facility is expected to increase crude capacity to 100,000 bpd as well as increase the refinery's capacity to process outside feedstocks and allow the refinery to meet the Environmental Protection Agency's low sulfur diesel fuel specifications.

At the 26,000 bpd Woods Cross, Utah refinery, Holly will add a new 15,000 bpd hydrocracker along with sulfur recovery and de-salting equipment. The cost of these additions is estimated at approximately $100 million, expanding the refinery's capacity to 31,000 bpd as well as allowing the facility to process heavy Canadian crude oils.

Holly's Board of Directors approved refinery upgrade projects at the end of last year. The company expected the upgrades to be completed during the third quarter of 2008.

NEW MEXICO TO OFFER ALTERNATIVE FUEL INCENTIVES

SANTA FE, NM. — New Mexico Governor Bill Richardson has signed an executive order aimed to reduce greenhouse gas emissions in the state by a number of measures including the promotion of the use of alternative fuels.

As part of the executive order, Richardson has asked state officials to "develop financial incentives to reduce greenhouse gas emissions" including the proposal of a one-time tax credit of up to 40% for the purchase, construction, or retrofitting of alternative fuel filling stations.

The order also mandates that New Mexico state vehicles use "mainly clean, renewable fuels."

Looking to all drivers in New Mexico, the state will examine financial incentives for drivers of clean vehicles as well as implement a clean car standard "consistent with clean car standards adopted by other states" including the reduction of CO2 emissions by January 2008.

The program will be put into practice by a newly-formed Climate Change Action Implementation Team. The Team will report to the Governor as part of the Clean Energy Development Council established in 2004.

"Climate change is the major environmental issue of our time," said Richardson, announcing his executive order. "Nothing poses a bigger threat to our water, or livelihood, and our quality of life."

Richardson estimated that the plan, if fully implemented, would reduce greenhouse gas emissions by approximately 267 million metric tons and create $2 billion in savings for New Mexico's economy.

SELF-EXTINGUISHING CIGARETTES MANDATED IN CALIFORNIA

SACRAMENTO, CA. — Under new legislation passed last year, only self-extinguishing cigarettes may be sold in the state of California.

Under AB 178, the "California Cigarette Fire Safety and Firefighter Protection Act," cigarette manufacturers must certify that their products self-extinguish at least 75% of the time under an ASTM protocol.

Cigarette distributors, wholesalers, and retailers may "sell out" their traditional cigarettes that were taxed and in stock prior to Jan. 1; however all new inventory must be the fire-safe cigarettes. Distributors, wholesalers, or retailers who sell cigarettes not in compliance with the new law may be fined up to $1,000 for each violation.

The California Board of Equalization has authority to inspect all retailers for compliance with the new law.

Similar legislation had already been passed in New York and Vermont prior to California adopting the self-extinguishing cigarette requirement.

According to the National Fire Protection Association, cigarettes are the leading cause of fatal deaths and the third-leading cause of fire-related injuries in the United States. Each year approximately 1,000 Americans die from cigarette-related fires and another 4,000 are injured, causing $4 billion in damages.

Originally published in the February 2007 issue of O&A Marketing News.
Copyright 2007 by KAL Publications Inc.