May 28, 2013 | Vol. 64, No. 11

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Dear PEI Member:

Tesla Motors is grabbing the headlines due to an extraordinary stock move following the release of its first ever quarterly profit this month. Coupled with a rare near-perfect score from Consumer Reports for its electric Model S sedan, interest in Tesla has given the electric car industry a real boost.

The first Nissan Leaf and Chevrolet Volt were sold in the United States 28 months ago. Sometime this month, the 100,000th plug-in electric car was delivered to a buyer somewhere in the United States. To some it's a sign that the electric car has arrived and is here to stay. To others, it was a ho-hum event. Let's look at the numbers:

  • Full-year sales for 2011 were about 17,500 cars spread among the Chevrolet Volt, Ford Focus Electric, Mitsubishi i-MiEV, Nissan Leaf and Tesla Roadster.
  • Sales rose to 53,000 cars in 2012.
  • Analysts anticipate that the number will double again to over 100,000 sold in 2013.
  • The numbers are even stronger when you add conventional hybrids to the mix. When you combine the 24,551 electric cars sold through April with the 163,915 hybrids sold during the first four months, electric drive vehicles so far make up 3.8 percent of total vehicle sales for 2013. Not too shabby.

What does this mean for the electric charging station market? According to the U.S. Department of Energy, 5,894 electric charging stations are open to the public in the United States. The availability of public and private funds is certain to add more in the years ahead. Business seems to be booming, although anecdotal information suggests that the recharging stations are vastly underutilized. 

Some people have even begun to question the necessity of an electric vehicle recharging station. Why build one if nobody will use it? That conclusion makes sense when you consider the average American drives just 29 miles a day, far less than the maximum range available from any electric vehicle. And manufacturers so far, at least, have not been able to deliver an affordable EV with long-distance range―an essential if these cars are to move beyond niche status and truly enter the mainstream. Statistics show that these drivers most often refuel from home and don't need a public facility. For example, Nissan reports that 90 percent of Leaf owners charge their cars at home.

Should we be concerned that we are not seeing charging facilities at traditional gasoline stations and that the 5,800 recharging facilities are not being outfitted with equipment manufactured, distributed, installed and serviced by PEI members?

I don't think so. I suppose it's true that electric cars today can meet many, if not most day-to-day mobility needs. But gasoline remains the default choice for most car buyers, and switching to electricity still requires some new habits and a different mindset. The average American buys a car for utility, convenience, low-operating costs and style. Nothing in our crystal ball says that is going to change soon. Petroleum equipment providers and their convenience store customers may be missing an "opportunity" by not serving the nascent electric car market, but I think at this stage they'd say it's no big whoop.

The Environmental Protection Agency (EPA) is extending to June 24, 2013, the public input period on the petroleum vapor intrusion draft final guidelines (see May 9, 2013 TL). The decision to extend the deadline was prompted by comments made by the Utilities Solid Waste Activities Group that said the documents appear to have the effect of a rule, and, therefore, should be subject to statutory notice-and-comment procedures for rulemakings. 

Electric Cars and Recharging Stations

EPA Extends Vapor Intrusion Comment Period to June 24

Walter Bond to Kick Off PEI Convention

PEI Distributor Profitability Survey

Charles D. Kemp Scholarship Recipients

In This Issue

Save Big with Early Bird Rates

PEI and Industry News »


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Walter Bond, former NBA player and now one of the most sought-after speakers in the country, has accepted an invitation to speak at the Kick-Off Breakfast during the 2013 PEI Convention in Atlanta.

Colleagues in other associations have told us Bond is the most popular speaker they have ever presented. His message is that each person has to accept accountability―no matter the situation, no matter the challenge. Through stories rich with humor, emotion and transparency, Bond will show PEI members how to turn self-limiting beliefs into self-empowering strategies.

Bond overcame a devastating injury and other challenges to become the first rookie free agent to start for the Dallas Mavericks. Since completing his successful eight-year professional basketball career, his powerful presentations have helped hundreds of thousands of people gain the confidence they need to focus, align and deliver desired results.

This year's Kick-Off Breakfast will be held Sunday, October 13, at the Georgia World Congress Center in Atlanta. Click here to learn more about this and other education sessions planned for the Convention. Money-saving early bird registration and housing are now open.

How does your company measure up with others in the industry? The PEI Distributor Profitability Survey is your chance to benchmark your financial statements to industry norms―and receive recommendations for specific changes you can make to improve your bottom line.

Participation is easy and completely confidential. Simply submit your balance sheet and income statement for the most recent full fiscal year or fill out the survey questionnaire that can be downloaded here. There is no cost to participate―the PEI Distributor Profitability Report is a benefit of your membership.

Each participating PEI distributor will receive a free copy of the 2013 Distributor Profitability Report, a $250 value.

To participate in the Survey download the questionnaire. Additional details, including instructions on how to submit your information, are included in the questionnaire. The deadline for returning the completed questionnaire is June 28, 2013.

Maine Governor Paul R. LePage (R) signed a bill May 7 that could lead to a prohibition of the sale of gasoline that contains ethanol as an additive at a level greater than 10 percent by volume. The law would enact the prohibition provided at least two other New England states (Connecticut, Massachusetts, New Hampshire, Rhode Island or Vermont) pass similar laws prohibiting such sales.
AIR-serv Group, LLC, Mendota Heights, Minnesota, and Coinmach Service Corp. have been acquired by Pamplona Capital Management for $1.4 billion.
John E. Reed, chairman of the board of OmegaFlex, Inc., passed away in his sleep at home on May 9. He was 97 years old.

The PEI Foundation's scholarship selection committee has selected six entering college freshmen to receive Charles D. Kemp scholarships. Recipients of the $1,000 scholarships are:

  • Heather Jayo, daughter of Thomas Jayo, Cochise Petroleum Equipment Company Inc., Phoenix, AZ
  • Trent Jones, son of Robert Craig Jones, Square D Integrated Power & Control Solutions, Salisbury, NC
  • Cannon Konzer, son of Kyle Konzer, K & K Maintenance Corp., Waterford, MI
  • Tyler Hobson, son of David Hobson, Dale's Service, Inc., Boise, ID
  • Cole Petty, son of Wendy E. Petty, Guardian Fueling Technologies, Jacksonville, FL
  • Taylor Rutherford, son of Jeanette Rutherford, Bolger Brothers, Inc., Altoona, PA

Nozzle manufacturer
. Zhejiang Galaxy Machinery Manufacture Co., Ltd., Dong'ou Industrial District, Oubei Town, Wenzhou, Zhejiang, China 325105, has applied for manufacturer division membership. Lin Songxian is general manager of the firm, which was established in 2001. The company manufactures nozzles, nozzle boots, hose joints, valves, emergency shut-off valves and breakaways. The equipment is sold through international distributors. Sponsored for PEI membership by John Choi, KoreaEnE, Seoul, South Korea. www.yinhe-jixie.com 
Pennsylvania UST service company
. Penn State Fiberglass, LLC, 10773 William Penn Highway, Suite 5-E, Huntingdon, Pennsylvania 16652, has applied for service and construction division membership. Dave Miller is president of the firm, which was established in 2012. The company modifies, recertifies, upgrades and remanufactures existing installed fiberglass and steel aboveground and underground storage tanks. Sponsored for PEI membership by Brian D. Sheaffer, PerryPtrEq, Ickesburg, PA. www.psfiberglass.com


  • WEHTechnologies, Katy, TX (mfr)
  • Matrix Capital Markets Group, Inc., Baltimore, MD (aff)
  • Jauregui & Culver, Inc., Escondido, CA (S&C)
  • Cesar Armando Lopez, Distribuidora de Diesel & Diafano, Mexico City, Mexico (O&E)


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© 2013
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.