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August 15, 2016 | Vol. 66, No. 15

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In This Issue

Dear PEI Member:

The National Association of Wholesaler-Distributors (NAW) is the trade association that represents the wholesale distribution industry. Its members include more than 80 national line-of-trade associations that represent virtually all products that move through wholesale distribution. PEI has been a member of NAW since the 1960s.

The chief staff officers of NAW member trade associations gather twice a year to discuss issues and trends affecting their industries. It was interesting to hear during our summer meeting that many of the issues PEI members face today are similar to those experienced by companies in other commodity lines. The following four trends were commonly cited by association executives at the meeting:

  • A need for small and large distributors will always exist as each have their advantages, while mid-sized companies have to constantly meet the demands from both sides. Small distributors that have built the proper relationships and are quick on their feet will continue to have a niche. And large distributors always will have an advantage because of their ability to buy right. Mid-sized distributors might not be large enough to hold manufacturers’ attention when it comes to volume and, at the same time, they might not be small enough to service customers the way they will demand.
  • Distributors are struggling to keep their employees and find new talent. And while technicians and installers in the HVAC, irrigation, plumbing, landscaping and vehicle repair industries were identified as being in short supply, companies in nearly every industry represented at the meeting hunger for good people in every position. Ongoing training and development programs are more important than ever. So is having a process in place to show employees that their employers are interested in developing the skills of their employees. 
  • With 60 percent of business owners born before 1965, the wholesale distribution industry is in the midst of the largest wealth transfer in the history of the United States—and too few distributors are prepared for the pending leadership or ownership transitions. 
  • Distributors are expected to continue to consolidate through 2025. Acquiring companies are moving from a focus on small or niche transactions to larger, more strategic deals that bring scale advantages and strengthen channel position.

Comparing PEI to Other Industries

NCWM Annual Meeting Results

DOE Funding for Co-Optima Program



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The 101st meeting of the National Conference on Weights and Measures (NCWM) was held recently in Denver. Regulators voted on three issues that might be of interest to PEI members.

  • Retail sales of natural gas sold as a vehicle fuel. In the retail marketplace, compressed natural gas (CNG) is sold as an alternative fuel to gasoline and diesel fuel. Liquified natural gas (LNG) is also sold as an alternative fuel to diesel. Handbooks 130 and 44 were changed by delegates at the Denver meeting to allow fuel retailers to sell CNG and LNG in diesel gallon equivalent (DGE) units. The change, effective January 1, 2017, will allow consumers to more readily compare cost and fuel economy.
  • Credit card authorizations. New, nonretroactive language was added to Handbook 44 that governs pay-at-the-pump retail motor fuel devices. It provides: “Once a device has been authorized, it must de-authorize within two minutes if not activated. Re-authorization of a device must be performed before any product can be dispensed. If the time limit to de-authorize the device is programmable, it shall not accept an entry greater than two minutes.”
  • Filters on dispensers selling diesel fuel at retail. Another proposal to require all (with limited exceptions) diesel dispensers be equipped with a 10-micron or smaller nominal pore size filter was not passed. The vote does not preclude the issue being brought up in the future.  

A new proposal to reduce the amount of water allowed in all tanks storing fuel for retail sale to ¼ inch was discussed and is on the agenda for next year.

There is some confusion among members regarding the implementation time frames for states without program approval (non-SPA states) to comply with EPA’s UST requirements. In particular, members and the regulated community want to understand when UST owners in non-SPA states will be required to conduct the first test or inspection of the following:

  • Spill prevention equipment (test)
  • Overfill prevention equipment (inspection)
  • Containment sump testing for sumps used for piping interstitial monitoring
  • Release detection equipment (test)
  • Walkthrough (inspection)

The deadline for UST owners and operators in non-SPA states to conduct their first test or inspection of the equipment mentioned above is October 13, 2018. The non-SPA states include AZ, CA, FL, IL, KY, MI, NJ, NY, OH, RI, WI, and WY. EPA has published a brochure that highlights the implementation time frames to meet the 2015 federal UST requirements.

The Steel Tank Institute-Steel Plate Fabricators Association (STI-SPFA) has produced a new educational brochure for owners and operators of UST systems. The brochure encourages owners and operators to monitor and inspect their fuel storage systems frequently for water to maintain quality product and reduce business risk. The brochure features easy-to-understand text, an illustration of where water enters USTs, and a list of additional resources. 

Earl Gerald “Jerry” Galvin
, owner and president of Jemko Petroleum Equipment Inc. from 1975 until his retirement in 1996, died July 23. He was 88. Jerry continued to serve on the Jemko board until his passing. Survivors include his wife, Ella R. (Tropper) Galvin, who he married in 1954; a daughter, Linda L. Maslar; a son, Daniel G. Galvin, who serves as vice president of Jemko; and four grandchildren.

RDM Industrial Electronics, Inc.
, Nebo, North Carolina, has acquired the assets of the 3M™ Wired Communication Systems business. This includes the existing inventory for Performance and Classic Series intercoms and their accessories. The wired intercom products and systems manufactured by RDM will be sold under the RDM brand.
Ace Tank & Fueling Equipment, a division of Source North America, moved August 1 to a new location in the Seattle-Tacoma area of Washington. The address is 19111 Des Moines Memorial Drive, Suite H, SeaTac, WA 98148. Ace Tank’s phone number (800-426-2880) remains the same.
Samson Corporation, Swannanoa, North Carolina, has contracted with Impact Solutions Rep Group LLC to represent Samson lubrication equipment products in Colorado, Utah, Wyoming, Montana and eastern Idaho. 

The U.S. Department of Energy (DOE) announced up to $7 million in funding for the Co-Optimization of Fuels and Engines (Co-Optima) initiative. The first-of-its-kind initiative is a collaboration between DOE’s Office of Energy Efficiency and Renewable Energy’s (EERE’s) Bioenergy Technologies Office and Vehicle Technologies Office. It brings together DOE national laboratories and industry stakeholders to simultaneously conduct tandem fuel and engine research, development and deployment assets. Reuben Sarkar, DOE’s deputy assistant secretary for transportation, will speak about the Co-Optima initiative October 19 at PEI’s convention in Atlanta. 

Georgia engineering firm
. civilogistix, 1995 North Park Place SE, Suite 430, Atlanta, Georgia 30339, has applied for affiliate division membership. David White is an engineer with the firm, which was established in 2015. The company provides civil engineering and petroleum fueling design for retail fueling centers, trucking facilities and convenience stores. Sponsored for PEI membership by James E. Young, YoungGroup, Johns Creek, GA. www.civilogistix.com
Lift manufacturer. Stertil-Koni, 200 Long Canoe Circle, Stevensville, Maryland 21666, has applied for affiliate division membership. Stephanie Smith is a marketing associate for the firm, which was established in 1997. The company provides in-ground lifts and heavy-duty vehicle lifts. Sponsored for PEI membership by Stephen E. Dixon, Hoidale, Wichita, KS, and Mark Barron, PtrSolutns, McAllen, TX. www.stertil-koni.com
Ohio environmental consulting firm. Emerald Environmental Services Inc., 1621 St. Clair, Kent, Ohio 44240, has applied for affiliate division membership in PEI. Andrew Hershberger is a project manager and the primary contact for the firm, which was established in 1998. The firm provides environmental, waste management and industrial hygiene services to its customers. Sponsored for PEI membership by David R. Spochart, BolgerBros, Altoona, PA. www.emerald-environmental.com 
Philippines service company. VSanJuan Enterprises, 224 Bermudez Compound, JP Rizal Street, Cabuyao, Laguna 4025, Philippines, has applied for service and construction division membership. Luis F. San Juan is operations manager for the firm, which was established in 1998. The company installs signage for fueling stations and other establishments in the Philippines. Sponsored for PEI membership by Reuben M. Valerio, ACCorp, Makati City, Philippines.


  • EY Engineering Plc., Addis Ababa, Ethiopia (aff)
  • CPI dba Quick Seal Tire Repair, Wilder, ID (aff)
  • MAES Inc., St. Michael, Barbados (S&C)
  • Interstate Construction, Roseville, CA (S&C)


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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.