Tulsaletter- click here to read this in your web browser...
April 27, 2017 | Vol. 67, No. 9

respond | preferences | login | unsubscribe

In This Issue

Dear PEI Member:

No federal agency has garnered more headlines in the first 100 days of the Trump administration than the U.S. Environmental Protection Agency (EPA). Most of the buzz has been about the massive EPA funding cuts in President Trump’s proposed 2017-2018 fiscal year budget (see the “Budget Note” at the end of this article).

But the budget drama is only part of the story. Just as important is a recently launched regulatory review process that could dramatically change the framework under which the EPA operates. Executive Order 13777, “Enforcing the Regulatory Agenda,” signed by President Trump on Feb. 24 and published in the Federal Register on March 1, requires each federal agency to appoint a task force to identify and recommend for repeal, replacement or modification any of its regulations that:

  1. Eliminate jobs or inhibit job creation.
  2. Are outdated, unnecessary or ineffective.
  3. Impose costs that exceed benefits.
  4. Create serious inconsistencies or otherwise interfere with regulatory reform.
  5. Rely on data, information or methods that are not publicly available or are insufficiently transparent.
  6. Derive from Executive Orders or other presidential directives that have been rescinded or substantially modified.

EPA Administrator Scott Pruitt formed and appointed EPA’s regulatory reform task force on March 24. Less than three weeks later (April 11), EPA began accepting public comments “on regulations that may be appropriate for repeal, replacement, or modification.” The comment period is open until May 15.

As of 11:59 p.m. yesterday, 33,870 comments had been received—3,528 of which are viewable by the public. (EPA declines to publish certain comments, including those that contain inappropriate language or private or proprietary information, as well as duplicate submissions received as a result of a mass-mail campaign.)

EPA Regulatory Review Process

Iowa Renewable Fuels Infrastructure Grants

Service & Construction Managers Conference

Mobil Enters Canadian Market



Respond to this Newsletter

by e-mail to the editor, Rick Long at rlong@pei.org

or join the discussion in the  Petroleum Equipment Forum

to unsubscribe or change preferences see below.

return to top of page

Not surprisingly, a large number of commenters have pushed back against the need for any EPA regulatory reform at all. The anonymous individual submitting Comment 2266, for example, said: “EPA regulations should be expanded, not reduced. The life of our planet is at stake, not to mention our health. Allowing people and corporations to pollute at will is not in the best interests of either.”

So far, comments relating to fuel and fuel storage are relatively few in number.  A quick search shows only seven submissions regarding ethanol, 15 on the federal Corporate Average Fuel Economy (CAFE) standards and only one addressing underground storage tank systems for vehicle fueling.

The most detailed of the fuel-related comments is Comment 0085, a rather lengthy letter submitted by the American Coalition for Ethanol (ACE), which requests regulatory action on a variety of matters, including:

  • Extending Reid Vapor Pressure Relief to E15 and higher level ethanol blends (see March 14, 2017 TL), thereby allowing these fuels to be sold all year long.
  • Streamlining the approval process for high-octane E25 to E40 fuel blends.
  • Adjusting the CAFE standards to remove restrictions that ACE believes discourage the use of E85.
  • Improving EPA’s vehicle emission test models to better reflect the real world.

With almost three weeks remaining until the comment period closes, more submissions of interest to PEI members almost certainly will come in. If you would like to make a comment of your own about the EPA regulations, you may do so here.

One has to wonder, however, exactly what EPA will do with all these comments. Administrator Pruitt has asked EPA offices to submit recommendations for regulatory repeal, replacement or modification to the agency’s regulatory reform task force on May 15—the same day the public comment period closes. PEI will continue to monitor the process and let you know.

Budget Note: As we reported last month (see March 28, 2017 TL), if enacted, President Trump’s budget proposal would cut EPA staff by more than 20 percent, slash the state grant program administered by EPA’s Office of Underground Storage Tanks (OUST) and put longstanding tribal programs at risk. Since then, other commentators have predicted reduction or elimination of OUST research, technical assistance, compliance inspections, publications and conferences.

However, the president’s budget proposal is only the first step in a long process that will continue until at least the Oct. 1 start of the 2017-2018 fiscal year. Constitutionally, federal appropriations authority lies with the Congress. So, ultimately, the president will be asked to sign the Congress’ budget bill—not the other way around.  While some EPA cuts can be expected (perhaps even substantial ones), the final FY 2017-2018 budget will, no doubt, be quite different than the president’s initial proposal.

Iowa’s Renewable Fuels Infrastructure Partnership (RFIP) program received a boost on April 20, when the state’s legislature approved $3 million in grants for the fiscal year ending June 30, 2018. Iowa fuel marketers may use RFIP grants to reimburse purchase and installation costs for equipment required to store, meter and dispense E15, E85 and biodiesel blends. Marketers that agree to sell the renewable blends for three years may apply for a 50 percent reimbursement. Those that commit for at least five years may apply for a 70 percent reimbursement. Grants are capped at $50,000 per project. In FY 2017, RFIP awarded $4.4 million in grants to 92 projects.

Today is the last day to register for PEI's 2017 Service & Construction Managers Conference, May 11-13, 2017, in Indianapolis. Consultant and author Marty Clark will present general session talks on “Leadership Land Mines,” “Creating a Standout Experience” and “Making Good Decisions When the Heat Is On.” Attendees can also select roundtable discussion topics specifically geared to their needs. Registration is $395 for PEI members ($695 for nonmembers). To learn more, register and reserve your hotel room, visit www.pei.org/sc2017.

On April 19, Canadian grocery store chain Loblaw sold its 213 gas stations to Brookfield Business Partners. Brookfield simultaneously announced its intention to rebrand all of the locations with the Mobil flag. The purchase price for the acquisition was $540 million (Canadian). While Mobil is among the leading fuel brands in the United States, this will be its first appearance in Canada.

“Tesla CEO Elon Musk announced that the company plans to unveil its electric semi truck
, called ‘Tesla Semi’, in September, which is sooner than most industry watchers anticipated.”—Electrek, April 13, 2017
Volkswagen has outlined its initial plans for the Electrify America division the German automaker has launched to dot the US landscape with more plug-in vehicle chargers. The $2 billion initiative's first phase will entail spending about $300 million on either deploying or having in the development process as many as 240 highway-adjacent charging stations throughout 39 states.”—Autoblog, April 17, 2017
“This year, the number of Superchargers available for public use will double—from 5,000 to 10,000, according to a blog post Tesla published Monday. That’s 39 percent more Superchargers than CEO Elon Musk promised for 2017 when he unveiled the Model 3. The company will also increase the number of so-called Destination Chargers located at hotels and restaurants from 9,000 to 15,000.”—Bloomberg, April 24, 2017

SPATCO Petroleum Solutions, a wholly owned division of SPATCO Energy Solutions
, has opened a new facility in Memphis, Tennessee. The company also has acquired the assets of PetroTech, LLC, a petroleum equipment and services supplier based in Plantersville, Mississippi. Steven (Brad) Gilmore, owner of PetroTech, LLC, will join SPATCO Petroleum Solutions as operations manager in Plantersville. Headquartered in Charlotte, North Carolina, SPATCO also has locations in South Carolina, Alabama, Florida, Georgia and Virginia.
Dixon Pumps has announced two new hires. Randy Cassagne, a mechanical engineer with more than 18 years of experience in the oil and gas industry, will be responsible for sales and support in the company’s Southeast region. Paul Knaub, who has more than 20 years of experience in industrial B2B sales and application support, will be responsible for sales and support in the Northeast.
ELAFLEX HIBY Tanktechnik has acquired a major stake in Oasis Engineering Ltd of Tauranga, New Zealand. Oasis specializes in valves and couplings used in the compressed natural gas (CNG) industry, including components and systems for CNG fueling stations and gas delivery networks.

“The busiest time for the gas station of 2035 may be at 2 a.m.
when autonomous driving cars are programmed to take themselves to the station to fill up for the next morning’s drive to the office.”—Forbes, April 18, 2017
“The California legislature has passed a bill that will more than double the state’s excise tax on diesel and increase the excise tax on gasoline by 43%. The legislation marks the first time fuel taxes have increased in 23 years.”—Oil Express, April 17, 2017
“Two bills before the Florida Legislature this session, SB 766 and HB 343, would make it a third-degree felony to possess or sell credit-card skimming devices in Florida. ‘These devices are designed to specifically collect and steal consumer data,’ said the sponsor of the Senate bill, state Sen. Jose Rodriguez, D-Miami. ‘There is no other place in the market where you need a device like this.’”—Palm Beach Post, April 20, 2017

France sensor manufacturer.
AVENISENSE, 17 rue de Lac Saint Andre, Le Bourget de Lac, 73370 France, has applied for affiliate division membership. Svetlana Zezyulinskiy handles marketing for the firm, which was established in 2010. The company manufactures embedded sensors for quality monitoring of fuels, oils, gas, chemicals, lubrication, food and beverage.  Sponsored for PEI membership by Royal Wollberg, LqdCntrols, Lake Bluff, Illinois.  
Missouri fuel polishing firm.  Miles Fuels, L.L.C., 309 Cypress Point Court, Cottleville, MO 63304, has applied for service and construction division membership. Vince Miles is owner of the firm, which was established in 2015. The company provides fuel polishing, tank cleaning, vacuum service and oil recovery and recycling. Sponsored for PEI membership by Harvey Stokes, UntdPtrSer, St. Louis MO.


  • Lansing Ice & Fuel, Lansing, Michigan (dis)
  • TCF Industries, Houston, Texas (aff)
  • Dan Gross, Wal-Mart Stores Inc., Bentonville, Arkansas (O&E)


Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute intended for %full_individual_name%. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2017 All rights reserved.

return to top of page

© 2017
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. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.