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September 25, 2014 | Vol. 64, No. 18

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Dear PEI Member:

Earlier this month, Home Depot disclosed that its payment systems were breached at nearly 2,200 U.S. and Canadian stores in a cyber attack that may have stretched back to April. Home Depot later announced that around 56 million customer cards may have been compromised. Credit protection firm BillGuard said losses will be at least $2 billion and could result in up to $3 billion in fraudulent charges.   

The breach at Home Depot is only the most recent in a torrent of high-profile data compromises. AOL, eBay, United Parcel Service (UPS), Goodwill, Neiman Marcus, PF Chang’s and Michaels have recently experienced similar breaches. Data- and identity-related crimes are at record levels.

Retailers are now seeing firsthand why EMV is necessary and how technology costs pale in comparison to the direct and indirect costs associated with a major data breach. Judging from what I heard from petroleum marketers earlier this week at the Southern New England Energy Conference, EMV is definitely in their sights. Most of those I talked with plan to install the new technology, although many don’t plan to do it until immediately before liability shifts to them. But a distinct minority of petroleum marketers is still not convinced. Lessons learned the hard way by some of the nation’s most visible corporations haven’t made an impression on them. But as payment systems of big retail chains keep getting hacked—compromising the credit card information of millions and millions of U.S. consumers—my gut says the tide will continue to turn.

Tomorrow—Friday, September 26—is the last day to take advantage of money-saving advance registration rates for the 2014 PEI Convention at the NACS Show, October 7-10 in Las Vegas. This year’s show features a sold out trade show as well as a strong lineup of education sessions. Just as important are the many opportunities the convention offers for networking with and learning from your peers. Advance registration saves $150 per attendee.

The second edition of PEI’s Recommended Practices for the Design and Maintenance of Fluid Distribution Systems at Vehicle Maintenance Facilities (PEI/RP700-14) is now available from PEI. The 2014 edition supersedes and replaces the 2009 edition of RP700.

Home Depot & EMV

PEI/RP700 Revised

2015 RFS

Washington State Vapor Recovery Review


In This Issue


PEI and Industry News »


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PEI’s centralized fluid distribution systems manual for vehicle maintenance facilities was first published to serve an industry that had little written industry guidance and few regulatory standards to help designers and installers safely and efficiently produce and contain the pressures required to move these viscous fluids.      

The recommended practices apply to stationary, centralized fluid distribution systems for vehicle-related new and used fluids, such as motor oil, gear oil, transmission fluid, hydraulic fluid, grease, antifreeze and windshield washer fluid. The equipment covered includes supply containers (e.g., tanks, totes, drums, kegs, pails), piping and tubing, pumps, compressors, hoses, reels, control handles and other equipment typically used to construct these systems.

The document was revised by the PEI Vehicle Maintenance Fluids Equipment Committee: Phil Parker (chairman); Harrell “Doc” Blair, McKinney Petroleum Equipment; Bill Parker, Lincoln Lubrication Systems; Don Smith, Balcrank Corporation; and Alex Stuart, Beneficial Systems.  

If you design and/or install vehicle fluid distribution systems, you should have a copy of this revised document. Order online ($40 for members; $95 for nonmembers) at www.pei.org/rp700.

According to EPA’s recently updated Action Initiation List
of newly launched regulations, the agency in June started work on a notice of proposed rulemaking for the 2015 RFS (Renewable Fuels Standard) but it will take “more than 12 months.” That schedule would mean the agency is unlikely to release the next RFS proposal until at least next June, pushing issuance of the final version toward the end of the 2015 compliance year. EPA has repeatedly fallen behind schedule on releasing the annual RFS fuel targets, and only last month sent the final 2014 RFS for White House pre-publication review—the last major step before its publication in the Federal Register. EPA’s notice underscores long-running industry criticisms that the agency for years has violated a statutory mandate to issue the annual RFS targets before the compliance year begins.  
Mansfield Oil Co. has merged its retail assets with Empire Petroleum Partners LLC. The merger will add close to 900 retail store sites and the combined network of dealer-only stations will include more than 1,200 locations.
U.S. exports of petroleum products reached a monthly record in August as refiners boosted rates, the American Petroleum Institute (API) said September 19. Shipments of fuel increased to 4 million barrels a day last month, up 7.5 percent from a year earlier, according to API’s monthly report. Imports of crude oil dropped 6.2 percent from a year earlier to 7.6 million barrels a day, the lowest imports for August in 18 years.
California Governor Jerry Brown recently signed into law several bills designed to boost use of clean air vehicles in California. One bill allows 15,000 additional electric and partial zero-emissions vehicles, or 70,000 total vehicles, to get green stickers that allow driving in carpool lanes, even when driving solo. Another bill requires freeway high-occupancy toll lane operators to allow clean air vehicles to drive for free or reduced rates. A third bill requires the property owner, rather than the person leasing it, to install an electric vehicle charging station and its infrastructure in most cases. California makes up 40 percent of the nation’s electric vehicle sales.

The Washington legislature directed the Joint Legislative Audit and Review Committee (JLARC) to conduct a study of the regulations and registration fees administered by the Washington Department of Ecology and the local clean air agencies that regulate businesses that emit gasoline vapors. Additionally, JLARC staff will compare Washington’s approach to regulating gasoline vapors with the approaches used by other states and the U.S. Environmental Protection Agency. SLARC staff will present its preliminary report at the December 2014 JLARC meeting and the final report at the January 2015 meeting. We have attached a 2-page summary of JLARC’s Study of Gasoline Vapor Regulation

As of 2014, it is estimated that there are nearly 9.1 million women-owned businesses generating over $1.4 trillion in annual revenues in the United States. Between 1997 and 2014, when the number of businesses in the United States increased by 47 percent, the number of women-owned firms increased by 68 percent—nearly 1½ times the national average. The growth in the number (68 percent), employment (up 11 percent) and revenues (up 72 percent) of women-owned firms over the past 17 years exceeds the growth rates of all but the largest publicly traded firms, topping growth rates among all other privately held businesses over this period. When large, publicly traded firms are excluded, women-owned firms comprise 31 percent of all privately held firms and contribute 14 percent of employment and 11 percent of revenues.—The 2014 State of Women-Owned Businesses Report, commissioned by American Express OPEN.  

Note: Thirty-seven women have joined PEI Women since the formation of the group was announced September 4. Click here to join. Fee is only $100 for a lifetime membership.

Hockman-Lewis Limited
, West Orange, New Jersey, will open a new regional sales office in Kuala Lumpur, Malaysia. The office, which will open in November, will be managed by Matt Davis, Hockman-Lewis’s vice president of sales. Besides growing the company’s Asian distribution network, Davis will continue to be responsible for sales in the Middle East and Africa. 

Guatemala distributor
. Talleres Soto, S.A., 9 Av. 10-24 Zona 12 Reformita, Guatemala, Guatemala 01012, has applied for distributor division membership. Victor S. Soto is project manager for the firm, which was established in 1983. The company represents AileOilEqp, Catlow, Fueltec, Gilbarco, Goodyear, Nupi, PetroClear and RedJacket. Talleres Soto also provides construction and maintenance services to its customers. Sponsored for PEI membership by Kent Reid, VeederR, Simsbury, CT.
Mexico distributor. Arte Comercializadora de Nuevo Laredo S.A. de C.V., Leona Vicario #3150, Nuevo Laredo, Tamaulipas, Mexico, C.P. 88240, has applied for distributor division membership. Arturo Martinez Morales is president of the firm, which was established in 1996. The company sells equipment manufactured by CentralIL, Franklin, Gilbarco, OPW and VeederR. Sponsored for PEI membership by Andrew Knapp, Franklin, Madison, WI.
Vapor recovery equipment manufacturer. Aereon, 5051 Commerce Crossing Drive, Louisville, Kentucky 40229, as applied for manufacturer division membership. Teri Lyons is marketing communications specialist for the firm, which was established in 1979. The company makes equipment that captures terminal and service station hydrocarbon vapors which is sold through distributors. Sponsored for PEI membership by Kent Reid, VeederR, Simsbury, CT. www.aereon.com
Puerto Rico software developer. Artisoft Laboratories, LLC, 8169 Calle Concordia, Suite 413, Ponce, Puerto Rico 00717, has applied for affiliate division membership. Arnaldo Rivera is a software engineer for the firm, which was established in 2011. The company develops software for gas stations. Sponsored for PEI membership by Ted Warn, ProgrsElec, Knightdale, NC. www.artisoftlabs.com


  • Phillips Sales and Service Inc., McMinnville, TN (dis)
  • Qingdao Accugauge Instrument Co., Ltd., Qingdao, China (mfr)
  • Barwood Petro Trading, St. Catherine, Jamaica (S&C)
  • Fommor S.A., Desamparados De Alajue, Costa Rica (S&C)
  • George Bryant Construction Inc., Alta Loma, CA (S&C)
  • Midwest Energy Solutions Inc., Kansas City, KS (S&C)
  • Petro y Mas, Santo Domingo, Districto Nacion, Dominican Republic (S&C)
  • Robertson Loia Roof Architects & Engineers, Alpharetta, GA (aff)
  • Andres Cardona, Servicio Oxnard SA de CV, Ecatepec, Estado de Mexico, Mexico (O&E)
  • Ben Zakarian, Zak’s Auto Shack Inc., Twain Harte, CA (O&E)


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© 2014
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.