Visa also issued the following enforcement policy regarding encrypting
PIN pad (EPP) usage for petroleum merchants in the United States:
- January 1, 2009: Acquirers may be assessed fines for newly-deployed
AFDs without TDES-capable Payment Card Industry (PCI)-approved EPPs.
- October 1, 2009: Acquirers must submit a summary AFD EPP attestation
for newly-deployed AFDs at sponsored merchants.
Visa went on to warn merchants and acquirers that "in the event of a PIN
compromise, acquirers will continue to be subject to Account Data Compromise
Recovery, Data Compromise Recovery Solution, or similar program liability
(in addition to potential fines) if the entity is found to be non-compliant
with the Payment Card Industry PIN Security Requirements including any use
of SDES past July 1, 2010."
We are still trying to get a handle on what all of this means to the petroleum
equipment industry. Here is our take on it at this time:
- There is no change on new dispensers. New dispensers put into service
after January 1, 2009, still must have TDES-capable PCI-approved EPPs.
- Liability for non-compliance is on the shoulders of the acquirer and
merchant. If SDES systems are compromised after July 1, 2010, the acquirer
(and usually the merchant by contract with the acquirer) will be subject to fines and liability.
- For petroleum retailers, fines will not automatically be assessed to
their acquirer for retailers using SDES DUKPT on their dispensers.
Now that Visa has spoken, the next move will be made by the acquirers.
Will they let their merchants slide past the July 1, 2010, deadline
understanding that they—the acquirers—will be held responsible if there is
a PIN compromise? That's something we will learn over the summer, as
retailers and acquirers compile their plans.
And if the acquirer is willing to give the merchant some breathing room,
what risks are the merchants willing to take in light of the potential
fines, liability and damage to their brand that could be caused in event
their POS is compromised? Visa warned merchants in its April 22 announcement
that "clients are encouraged to transition to TDES usage as quickly as
possible to provide the highest level of protection."
The bottom line for PEI manufacturers, distributors and installers of PCI-compliant
equipment is that the timing of equipment sales and installation jobs is in
flux, depending on how retailers react to the liability and risk that the
Visa announcement placed on them. At this stage, the impact is too uncertain to even hazard a guess about when PCI work will begin in earnest.
CENTRAL WEIGHTS AND MEASURES OFFICIALS OPPOSE ATC
The Central Weights and Measures Association (CWMA) voted unanimously to
oppose both the permissive and mandatory use of automatic temperature
compensation (ATC). The group will urge the National Conference on Weights
and Measures (NCWM) to prohibit the use of ATC at retail during its annual
meeting this July in San Antonio. We continue to believe that the NCWM
proposals related to the permissive and mandatory use of ATC will be
defeated at the NCWM meeting.
STAGE II VAPOR RECOVERY COMING
The European Parliament has confirmed a first-reading agreement reached
in informal negotiations with the Council of the European Union which
requires Stage II vapor recovery at new or renovated service stations with
large throughput as of January 1, 2012. Almost all service stations will be
required to install Stage II equipment by 2018, two years earlier than
proposed by the European Commission. According to Commission data, the EU
has about 110,000 service stations.
NACS SHOW EXHIBIT BOOTH SPACE
Suggested changes to PEI's Recommended Practices for Installation and
Testing of Vapor Recovery Systems at Vehicle Fueling Sites
(PEI/RP300-04) are due by the close of business Friday, May 15. Comments are
also solicited for a new chapter on decommissioning Stage II vapor recovery.
The 2004 edition of the recommended practice, the new chapter and checklist
on decommissioning Stage II vapor recovery, and a comment form are available
The General Services Administration will spend $15 million for pilot
programs involving compressed natural gas and hybrid buses, and all-electric
vehicles, the Obama administration said. Orders for the vehicles will be
placed by September 30.
"The retail gasoline market was peppered with pumps at grocery stores
as far back as 1992, Lundberg price surveys show. In the mid-'90s fear of
roaring Big Box gasoline sales grew to a crescendo of doomsday predictions
for the widespread demise of traditional stations. Instead, it has taken 17
years for the likes of Costco, Wal-Mart, Randalls and others to amass 9.8%
gasoline market share. They will still have well under 11% share of market
three years from now, we project."—Lundberg Letter, February 16,
Over 230 people and 25 exhibitors are registered to attend the PEI/NATSO
DEF Conference June 5 at the Gaylord Opryland Hotel in Nashville. Hotel
the negotiated conference rate are available until May 18. Registration fees
increase after May 22. Go to the DEF Conference section at
www.pei.org to register.
"Love's Travel Stops says it will install bulk DEF facilities in 50
locations, beginning later this year. The specific locations and timeframe
of the rollout will depend on initial demand for DEF, says Jon Archard,
Love's director of fleet sales."—Oil Express, May 11, 2009.
PEI’s 59th Annual Convention will be held in
conjunction with the 2009 NACS Show at the Las Vegas Convention Center in
Las Vegas, Nevada, October 21-23, 2009.
Exhibit space in the Petroleum Equipment & Services area of the NACS Show
is selling quickly. To date we have 110 PEI members showing equipment in
over 380 booths. As before, the NACS Show is organized into six areas,
with the Petroleum Equipment & Services section containing most PEI
members' products. The Technology area is once again conveniently located
adjacent to Petroleum Equipment & Services. Exhibit privileges in the
show are open to all PEI members at a discounted booth
rate for the show: $30.50 per square foot for PEI members compared to $40.50
per square foot for nonmembers. Exhibit
application materials along with a list of exhibiting companies and
a floor plan are
now available online.
For more details contact Bob Young at 918-494-9696 or by email,
EPA TO DISTRIBUTE NEARLY $200 MILLION FOR UST CLEANUPS
The Environmental Protection Agency will distribute $197 million from the
economic stimulus bill for the cleanup of leaking underground storage tanks
(USTs). The funds come from the American Recovery and Reinvestment Act of
2009, the $787 billion stimulus bill signed into law February 17. States
will be able to use the funds to oversee the cleanup of UST leaks, or
directly pay for cleaning up leaks from federally regulated tanks when the
responsible party is unknown, unwilling, or unable to do so, or the cleanup
is in response to an emergency. California will receive more than $15.5
million for UST cleanups, the most of any state or territory. Other states
receiving large amounts include Florida ($11.3 million); Texas ($10.8
million); New York ($9.2 million); Ohio ($8 million); Illinois ($7.4
million); Wisconsin ($6.4 million); and Pennsylvania ($6.1 million).
William B. Riddell, former president and owner of Hall Equipment
Company, Inc., Quincy, Massachusetts, died April 19 at the age of 77. He
began his career at Hall as a stock person in 1957 and rose to become
president and owner in 1981. Upon his retirement and sale of his business,
he moved to Atlanta to be closer to his children and grandchildren. He is
survived by two sons, Andrew and Stephen, and three grandchildren.
DEF dispensing systems manufacturer. American Controls, Inc., P. O. Box
324, Farmington Hills, Michigan 48332, has applied for manufacturer division
membership. Bob Taylor is a sales engineer for the firm, which was
established in 1969. American Controls manufactures DEF fluid dispensing
systems which are sold through distributors. Sponsored for PEI membership by
Steve Murray, MurrayEqp, Fort Wayne, IN.
California installation and service contractor. SW Maintenance Corp.,
3116 Highway 97, Weed, California 96094, has applied for service and
construction division membership. Jeremy Ward is CEO of the firm, which was
established in 2004. The company builds service stations, and tests and
maintains equipment. Sponsored for PEI membership by Fred Monroe, Monroe,
Indiana installation and service contractor. Jacobs Professional
Services, Inc., P. O. Box 7, Monon, Indiana 47959, has applied for service
and construction division membership. Stacy Jacobs is president of the firm,
which was established in 2006. Jacobs is a
petroleum construction company that builds new sites and upgrades existing
sites. Sponsored for PEI membership by Daniel J. Esposito, OilEqpSup,
ADMITTED TO PEI
- Pump Tech of Louisiana, Crowley, LA (dis)
- New Wave Industries, Inc., North Highlands, CA (mfr)
- Bryant and Company, Inc., Birmingham, AL (S&C)
- Trinium LLC, Chandler, AZ (S&C)
- ACM-Petrotica, San Jose, Costa Rica (S&C)
- Convenience Store Service, Burlington, NC (S&C)
- Elgon Petroleum Inc., Saskatoon, Saskatchewan (S&C)
- G an D Petroleum, LLC, Janesville, WI (S&C)
- VRX Company, Inc., Maryville, TN (aff)
- Practical American Safety Solutions, LLC, Muncie, IN (aff)
- M D Shaw & Associates, P.C., Huntersville, NC (aff)