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July 13, 2015 | Vol. 65, No. 13

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In This Issue

Dear PEI Member:

Here are some of the most often asked questions—with answers—posed to us by TulsaLetter readers about the new underground storage tank (UST) regulation released by the U.S. Environmental Protection Agency (EPA) last month (see summary in June 30 TulsaLetter).

What does the regulation say about USTs in Indian country? The Energy Policy Act of 2005 amended Subtitle I of the Solid Waste Disposal Act (SWDA), the statute that authorized the UST program. Key Energy Policy Act provisions (such as secondary containment and operator training) apply to all states and United States’ territories receiving federal Subtitle I money under SWDA, regardless of their state approval status, but do NOT apply to Indian country. EPA directly implements the UST program in Indian country. In order to establish federal UST requirements that are similar to the UST secondary containment and operator training requirements of the Energy Policy Act, EPA decided to revise its 1988 UST regulation. The 2015 regulation requires secondary containment and operator training in Indian country. EPA will implement this requirement 180 days after the effective date of the UST regulation because of the large capital expenditure associated with new secondarily-contained tanks, piping and under-dispenser containment. The 180 days will allow owners and operators in Indian country who have concrete plans for installing a new UST system, but have not yet applied for or obtained approvals or permits, to install these UST systems.

What did EPA decide to do about process tanks, including oil/water separators? Nothing. Flow-through process tanks were excluded, not deferred, from the 1988 regulation. In other words, they were never regulated by the federal EPA and weren’t on the table for review this time around.   

What states and territories do not have State Program Approval (SPA)? Alaska, Arizona, California, Florida, Illinois, Kentucky, Michigan, New Jersey, New York, Ohio, Rhode Island, Wisconsin, Wyoming, Guam, Northern Mariana Islands and Samoa.

Answers to Questions About New UST Regulation

RFS Down The Road

PEI Looking For Technical Writer

PEI Service Manager Networking Groups

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States have three years to obtain SPA or redo their SPA application. It appears that gives them three years to write a rule. If the operation and maintenance requirements, plus the walkthrough requirements, have to be initiated within three years of the effective date of the rule, does that give SPA states three years or six years to start the O&M and walkthrough requirements? We couldn’t figure out the answer to this question ourselves, so we asked EPA. Here is EPA’s response. “In states without state program approval (SPA) and in Indian country, the new requirements will apply according to time frames specified in the 2015 regulation. In states with SPA, none of the new requirements will apply until:

  • the state adopts their own requirements consistent with the federal requirements, or
  • if the state does not modify its own regulations, until EPA withdraws approval of SPA for that state.

Owners and operators in states with SPA must continue to meet the state requirements. States will have three years from the effective date of the federal regulation to revise their regulations and submit a revised SPA application. States can give owners the same amount of time to meet the state requirements as the federal regulations give owners to meet the federal requirements. We expect that many states will impose a shorter timeline than those in the federal requirements and may even impose more stringent requirements than the federal regulation.”      

Is PEI planning to update its recommended practices that were added to EPA’s new UST regulation? PEI typically updates its recommended practices every five years. Our review of PEI’s Recommended Practices for the Inspection and Maintenance of UST Systems (RP900) was delayed two years until after the EPA rules that covered walkthrough inspections were published. RP900 will be updated in the first quarter of 2016. Persons wanting to submit comments to change RP900 can do so by clicking on the Comment Now button here. Deadline for comments to be submitted for review by the PEI UST System Inspection & Maintenance Committee is October 30.

The other two documents referenced in the federal regulation, Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities (RP1200) and Recommended Practices for Installation of Underground Liquid Storage Systems (RP100) will be revised later in 2016. Deadline to receive comments for either document is January 29, 2016. Go here to comment on RP1200 and here to comment on RP100.

What is the effective date of the regulation? That coincides with the publication of the regulation in the Federal Register, which has yet to happen but is expected soon.

An EPA hearing on its proposed multi-year renewable fuel standard (RFS) rule about whether the Agency should increase or decrease its proposed RFS targets was held last month in Kansas City, Kansas. Those attending the hearing listened to testimony (limited to 3 minutes a person, thank goodness) from more than 200 witnesses.

The testimony was what you’d expect to hear at public forums such as this. Pro-ethanol speakers insisted the RFS is a valuable tool to reduce U.S. dependence on foreign oil that will pay future dividends in the fight against climate change. The oil sector derided the RFS as an inefficient program that is driving up costs for fuel suppliers/marketers and food producers, and poses issues to motorists at the pump.

While the testimony in Kansas City centered on the RFS biofuel volume target proposals out to 2016 (along with biomass-based diesel volumes out to 2017), much of the hallway discussion I participated in concerned the possibility that EPA would reset biofuel targets for 2017 and beyond. Congress wrote into the program a reset provision that lets EPA refigure the Congressional volumes of renewable fuels starting in 2016 if EPA has reduced any of the mandates by at least 20 percent for two consecutive years or by at least 50 percent for a single year. EPA’s current proposal would reduce the overall renewable fuels blending requirements by more than 20 percent in both 2015 and 2016.    

Janet McCabe, EPA’s acting assistant administrator for air and radiation, told the Senate Homeland Security and Governmental Affairs Committee’s Regulatory Affairs and Federal Management Subcommittee (that’s quite a mouthful) June 18 that EPA will pursue a renewable fuel standard reset once it winds up its current proposal to set standards for 2014, 2015 and 2016, which must be completed by November 30. “The minute 2016 is done we will be turning our full attention to the 2017 rule and the reset,” McCabe said. Her statement was echoed by the federal EPA officials I talked to in Kansas City, although they were mum on any specifics about what the reset would look like.

What comes next after the 2016 rule is still anyone’s guess, but it will set the stage for what is to come in the years that follow.

PEI is seeking an exceptional technical writer to assist with the association’s recommended practices and other technical resources. Primary technical responsibilities of this new, full-time position in Tulsa include researching, writing, editing and working with technical committees and industry groups. For a complete job description and instructions on how to apply, click here.

The Oklahoma Corporation Commission
has been awarded more than $1.2 million by the U.S. Environmental Protection Agency (EPA) to respond to leaks from USTs ($459,000) and to clean petroleum from the environment ($809,000).
Crude production in the United States rose slightly to 9.701 million barrels per day (b/d) in April from 9.692 million b/d in March, the U.S. Energy Information Administration (EIA) said June 30. The April production number marks the highest monthly volume since April 1971, according to historical EIA data.
Hawaii Gov. David Ige signed into law a bill that repeals the 10 percent ethanol mandate that had been in place since 2006. The law is effective December 31, 2015.
Mexican state-owned oil company Pemex will not participate in the first phase of the so-called Round One tender of Mexico’s historic energy opening, Mexican energy minister Pedro Joaquin Coldwell said July 8. The initial tenders are part of a sweeping energy overhaul finalized last year that ended Pemex’s nearly 80-year-old monopoly and is aimed at luring private investment into Mexico’s flagging oil and gas sector.
Gas-Mart USA, owner and operator of 42 convenience stores in Illinois, Iowa, Indiana, Nebraska and Wisconsin, has filed a Chapter 11 bankruptcy petition, listing unsecured debts of nearly $14 million. 

PEI’s new Service Manager Networking Groups have successfully launched and are looking for new members to join them at the PEI Convention in Las Vegas (October 11-14). Modeled after PEI’s 10-Groups program, these networking groups provide a forum for service managers in PEI’s distributor or service and construction divisions to brainstorm, share knowledge, problem solve and generate new ideas. Group members are individuals responsible for managing service department work and personnel. If you would like to apply for membership in a PEI Service Manager Networking Group, click here and complete the online application. The information you provide will be used to assist in assigning you to a group of service management professionals with similar responsibilities who don’t compete with you. For more information on this program, contact Bob Young at byoung@pei.org or 918-236-3966.

J. Norman Larsen
, former owner of Western Petroleum Equipment Inc., Seattle, Washington, died March 25 in his home in Wenatchee, Washington, at the age of 73. Norm spent the first part of his career in the industry working with his brother, John, at Petroleum Dynamics in Los Angeles. He later worked for Northwest Pump & Equipment Co., Ace Tank & Equipment Co. and Mascott Equipment Company. Survivors include his wife of 52 years, Elsie; a son, Craig; a daughter, Stacia; and six grandchildren.  
Alan “Al” Hillgren
, lifelong employee and former vice president of Seneca Companies, Des Moines, Iowa, died June 22 at his home in Stuart, Iowa, surrounded by family. He was 61.

Fuel oil system manufacturer.
Critical Fuel Systems, Division of BFS Industries, 200 Industrial Drive, Butner, North Carolina 27509, has applied for manufacturer division membership. Ken Still is national sales manager for the firm, which was established in 1946. The company manufactures fuel oil systems for mission-critical applications. The systems are sold through distributors. Sponsored for PEI membership by Kelly A. Mulligan, Morrison, Dubuque, IA. www.criticalfuelsystems.com
Florida engineering service company. Global Engineering Experts, LLC, 7401 Wiles Road, Suite 227, Coral Springs, Florida 33067, has applied for affiliate division membership. Refat A. Faris is an engineer with the firm, which was established in 2014. The company provides design and engineering services for gasoline stations and convenience stores. Sponsored for PEI membership by Stu Lutz, LutzFL, Pompano Beach, FL.
Florida environmental compliance consulting company. 7G Environmental Compliance Management, LLC, P. O. Box 3433, Tallahassee, Florida 32312, has applied for affiliate division membership. Jason Wiles is president/CEO of the firm, which was established in 2013. The environmental compliance testing company provides periodic visual inspections, compliance and alarm management, permit and testing coordination, maintenance dispatch and NOV resolutions. Sponsored for PEI membership by Marshall T. Mott-Smith, MottSmith, Tallahassee, FL. www.7g-enviro.com 
New Jersey law firm. Brennan Law Firm, 73 North Main Street, Cranbury, New Jersey 08512, has applied for affiliate division membership. Francis J. Brennan III is an attorney with the firm, which was established in 1996. The firm focuses its practice on gasoline retailing, environmental consultants and contractors, and service station contractors. Sponsored for PEI membership by Randy Mitchell, Fernot, Fairfield, NJ.
Pennsylvania fluid conditioning technology firm. Schroeder Industries, 580 West Park Road, Leetsdale, Pennsylvania 15056, has applied for affiliate division membership. Angelica M. Patterson is marketing manager for the firm, which was established in 1950. The company designs, manufactures and markets innovative filtration solutions for hydraulic, lubrication, fuel and process systems. Sponsored for PEI membership by Robert E. Dendy, PetroEnrgy, Houston, TX. www.schroederindustries.com.
Malaysia service firm. PSI Systems (M) Sdn. Bhd., No. 3, Jln 7/6, Tmn Perindustrian Selesa Jaya, Seri Kembangan, Selangor, Malaysia 43300, has applied for service and construction division membership. Joseph Yap is managing director at the firm, which was established in 2009. The company installs and maintains forecourt equipment and tank monitoring equipment, and tests tanks. Sponsored for PEI membership by Dawn Brooks, PurporaEng, Saukville, WI.
Maryland service contractor. Brad’s Fuel Filtering, 2025 Inverness Avenue, Suite 210, Baltimore, Maryland 21230, has applied for membership in PEI’s service and construction division. Brad Bettencourt is president of the firm, which was established in 2014. The company provides mobile fuel filtering of any product. Sponsored for PEI membership by Ted Bedell, TotalEnvMD, Gaithersburg, MD. www.bradsfuelfiltering.com


  • Service First Processing, Boca Raton, FL (aff)
  • ETS Yapi Insaat Muh. Tic. Sti., Istanbul, Turkey (S&C)
  • NTSS, Inc., Putnam, CT (S&C)
  • Edward Aiken, Pepco Holdings, Inc., Newark, DE (O&E)
  • Rick Clements, BP PLC, Plainfield, IL (O&E)
  • Sandra Gratchner, BP Oil, Chicago, IL (O&E)
  • Michelle Knapp, BP Oil, Chicago, IL (O&E)
  • Scott Lister, BP Oil, Placeville, CA (O&E)
  • Oleta Martin, 7-Eleven, Inc., Dallas, TX (O&E)
  • Christian Santiago, Petron Corporation, Mandaluyong, Philippines (O&E)


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© 2015
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.