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August 2, 2017 | Vol. 67, No. 15

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In This Issue

Dear PEI Member:

The 102nd annual meeting of the National Conference on Weights & Measures (NCWM) was held July 16-20 in Pittsburgh. Three items on the agenda had the potential to affect PEI members and their customers. But in the end, none of the three advanced. Here’s a quick summary.

First, a proposal to limit the maximum allowable level of water in underground storage tanks (USTs) to 0.25 inch will remain on the docket for further discussion and development. The proposal seeks to address two worthy goals: simplifying the regulatory code and reducing water in tanks. However, retailers are concerned about the real-world cost of such a dramatic change. Tank manufacturers, engineers and many installers also question whether achieving such a level is even feasible. Given the divergent views on the topic, we may or may not see a vote on the water level proposal next year.

A second item slated for a vote at the 2017 annual meeting—this one involving dispensers—also was returned to committee for further development. The proposal would have required that retail fuel receipts include the dispenser number in addition to the price per gallon and number of gallons dispensed. But the delegates in Pittsburgh concluded that the proposal’s language was confusing and needed additional tweaking before any vote. Many delegates also questioned the wisdom of retaining a provision that would allow retailers to enter the dispenser number by hand.

A third proposal sought to consolidate the complicated web of dispenser labeling requirements for E15. The U.S. Environmental Protection Agency (EPA) and the Federal Trade Commission (FTC) take different views on the matter. To be specific, FTC guidelines consider E15 a flex-fuel, while the EPA classifies the blend as gasoline. This conflict has left marketers and regulators in a very uncomfortable position. In Pittsburgh, the American Petroleum Institute (API) proposed an inclusive approach that attempted to harmonize the two positions. However, most delegates considered the API plan too broad in scope. So, for now, the E15 dispenser labeling confusion continues.

Melinda Whitney, president of the Washington, DC-based International Liquid Terminals Association (ILTA), has accepted a position as PEI’s director of operations. Founded in 1974, ILTA represents nearly 500 corporate members, from owners of liquid terminals and aboveground bulk storage tank facilities to related manufacturers, suppliers and contractors—and including a good number of PEI members. Melinda is well versed in association operations, membership, government relations and education. She also speaks Spanish and helped launch several successful Latin American programming initiatives at ILTA. Interestingly, Melinda has deep roots in the petroleum equipment industry. Her grandfather owned several gas stations in Wichita, Kansas, and her father began his career building gas stations for Cities Service/CITGO. Be sure to look for and welcome Melinda at the 2017 PEI Convention in Chicago.

NCWM Annual Meeting

PEI Hires Director of Operations

E15 Waiver Stalls

Comments on RP400 and RP500 due Sept. 30



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The U.S. Senate Environment and Public Works Committee declined on July 21 to act on a bill that would have accelerated the year-round sale of E15. The Consumer and Fuel Retailer Choice Act, introduced in the spring by a bipartisan group of senators from several corn states (see Mar. 14, 2017 TL), would have extended to E15 a partial waiver on the tight summertime evaporative emission requirements imposed on the nation’s vehicle fuel supply by the Clean Air Act.

In 1991, Congress granted such a waiver to E10, an action that spurred the widespread sale of E10 across the nation. However, when the EPA acted in 2011 to approve the sale of E15 for model-year 2001 and newer vehicles, it did not grant a summertime evaporative emission waiver to E15. Ethanol advocates say the inability of retailers to sell E15 all year long is one of the primary impediments to the nationwide adoption of the higher-blend fuel.

Despite this setback, sponsors of the Consumer and Fuel Retailer Choice Act have indicated they will continue to push for adoption of the bill after Congress returns from its August recess.

It’s been a busy couple of weeks for the federal Renewable Fuel Standard (RFS).

On July 21, the EPA opened a 60-day public comment period on its proposed 2018 volume requirements for cellulosic biofuel, advanced biofuel and total renewable fuel, as well as 2019 requirements for biomass-based diesel. Comments on this most recent version of the RFS will be accepted through Aug. 31.

Exactly one week later, on July 28, the U.S. Court of Appeals for the District of Columbia unanimously ruled that the EPA exceeded its statutory authority when it relied on lagging consumer demand in setting 2014, 2015 and 2016 RFS biofuel blending requirements below the goals set by Congress. Ethanol advocates cheered the decision. However, it is worth noting that U.S. Circuit Judge Brett Kavanaugh, who authored the opinion, also said during oral arguments, “I understand the difficulty EPA is in here, but the statute doesn’t seem to give EPA the authority to fix everything that is not working right. If this thing is totally screwed up, Congress should fix it.”

A one-hour, free webinar hosted by PEI on PEI/RP1200-17: Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities is now available on PEI’s YouTube channel.

The EPA has recognized the procedures in PEI/RP1200 as sufficient to meet federal testing requirements for secondary containment, spill prevention and leak detection. The webinar, which attracted more than 300 attendees when presented live July 12, is designed to help state regulators and PEI members better understand key provisions of the new document. The presenters were Edward S. Kubinsky Jr., Crompco LLC; Michael Frank, Maryland Department of the Environment (MDE) and Environmental Protection Agency (EPA) Region 3 UST Task Force; Scott Boorse, Wawa Inc.; and Kevin Henderson, Kevin Henderson Consulting. You can view the webinar at www.pei.org/youtube.

The PEI committees charged with updating PEI/RP400: Recommended Procedure for Testing Electrical Continuity of Fuel Dispensing Hanging Hardware and PEI/RP500: Recommended Practices for Inspection and Maintenance of Motor Fuel Dispensing Equipment will soon begin their work. To assist in the committees’ review, PEI is soliciting public comments on both documents. If you have suggestions for improving these recommended practices, visit www.pei.org/rp400 or www.pei.org/rp500 and click the “Comment Now” button. To be considered for the next editions, comments must be received by Sept. 30.

The U.S. Department of Labor (DOL) issued a formal Request for Information July 26 on whether and how it should revise a 2016 DOL rule raising from $23,660 to $47,476 the threshold salary at which exempt workers are entitled to overtime protection. Implementation of the rule, which was scheduled to go into effect Dec. 1, 2016, was halted Nov. 22 when a federal district court in Texas issued a nationwide injunction.

The Trump administration has indicated it will not defend the 2016 increase. However, in the Request for Information, the DOL seeks comments on 11 questions including whether the existing $23,660 threshold should be updated for inflation, vary by employer size or reflect regional cost of living differences. The 60-day comment period ends Sept. 25, 2017.

Acterra Group
has announced two appointments. Bruce Urman has joined Acterra as corporate service manager, based in the company’s Des Moines, Iowa office. Bryan Kohler has been named manager of government services and will be based in Marion, Iowa.
Bravo Systems, Inc. celebrated the grand opening of its new fulfillment center at 1524 S. Gage Ave in Montebello, California, with a ribbon-cutting ceremony July 29. The new location is the third facility operated by Bravo in southern California. The company also announced that Daniel Summers has been named manager of the shipping, assembly and pick/pack departments located at the fulfillment center.
Lube-Tech & Partners LLC
has acquired three Mighty Auto Parts distribution franchises. Mighty Auto Parts is a supplier of aftermarket products and inventory-control services to automotive professionals. Lube-Tech & Partners, which was formed in June 2016 by Lube-Tech, Boyer Petroleum and Moore Oil, distributes lubricants and chemicals to commercial, automotive and industrial customers.
Northwest Pump & Equipment has purchased some of the assets and product lines of the Portland, Oregon branch of Argo International Corp. Argo has been a distributor of industrial pumping and fluid handling equipment since 1952. As a part of the agreement, Northwest Pump added four of Argo’s sales and service personnel to its staff.
Seneca Companies has named Loyd Phillips strategic account manager for its Waste Solutions division. Phillips comes to Seneca with 20 years of experience in the oil and gas industry, most recently as the director of safety at Willbros Construction.

“Emerging technologies, the rise of e-commerce and government regulations are top of mind right now for wholesale distributors
, according to a recent report by Exact, Macola division. … Amazon's role in the wholesale distribution chain was prominent. 92% of respondents said they considered the e-commerce giant a competitor, although 64% also consider Amazon as a partner.’”—SupplyChainDive, July 19, 2017
“Despite the relative density of the charging network in Denmark, EV sales are suffering under the government's gradual reinstatement of a registration tax for EVs, which started in 2016 and will be fully reintroduced by 2022. So far this year, only 182 EVs were sold in Denmark, with just 17 of those to private buyers, reports Autovista Group. Compare with the far healthier number for 2015, when 4,605 EVs were sold in Denmark.”—FleetEurope, July 27, 2017
Britain will ban sales of new gasoline and diesel cars starting in 2040 as part of a bid to clean up the country's air. … ‘We can't carry on with diesel and petrol cars,’ U.K. environment secretary Michael Gove told the BBC on Wednesday. ‘There is no alternative to embracing new technology.’"—CNNMoney, July 26, 2017

Ohio security device manufacturer.
Van Lock Company, Inc., 6834 Center Street, Cincinnati, OH 45244, has applied for manufacturer division membership. Chris Padjen is vice president of the firm, which was established in 1959. Van Lock manufactures locks and security devices for dispensers, which are sold through distributors. Sponsored for PEI membership by Chuck Storey, Storey&Son, Cincinnati, Ohio. www.vanlock.com
Brazil tank manufacturer.
ARXO Industrial Do Brasil SA, Rod. BR101, S/N-KM 100.4, Picarras – SC, Brazil, has applied for manufacturer division membership. Kauan Osinski de Oliveria is marketing manager for the firm, which was established in 1967. The company manufactures jacketed tanks for fuel storage and used oil, which are sold through distributors. Sponsored for PEI membership by Ricardo Britto, ExcelTire, Warwick, Rhode Island. www.arxo.com
Hardware and software compliance management firm. Canary Compliance, 1900 Market Street, 8th Floor, Philadelphia, PA 19103, has applied for affiliate division membership. Jonathan Kelly is CEO of the firm, which was established in 2011. The company provides UST compliance management with cellular-connected hardware and intelligent software. Sponsored for PEI membership by Edward Kubinsky, Jr., CROMPCO, Plymouth Meeting, Pennsylvania. www.cancomply.io
Pennsylvania environmental and engineering company.  Synergy Environmental, 155 Railroad Plaza, Royersford, PA 19468, has applied for affiliate division membership. Robert J. May is vice president of the firm, which was established in 2003. The company is an environmental and engineering company. Sponsored for PEI membership by Chris Andrews, MVISer, Brentwood, Tennessee. www.synergyenvinc.com
Michigan imaging firm. Bazo Construction, 8747 Brandt Street, #N101, Dearborn, MI 48126, has applied for service and construction division membership. Tony Bazo is the owner of the firm, which was established in 1999. The company offers complete imaging of stations including painting, canopy and pump branding and rebranding. Sponsored for PEI membership by Bob Patterson, TFCCanopy, Garrett, Indiana. www.bazoinc.com
Oklahoma electrical contractor.  ISO Fuel Control Systems/Patco Electrical Services, 1301 S. Highway 81, Duncan, OK 73533, has applied for service and construction division membership.  Tara Hackney is production manager for the firm, which was established in 1993. The company provides electrical contracting services. Sponsored for PEI membership by Bryan Newcomb, PetMarCo, Oklahoma City, Oklahoma. www.isofuel.net


  • Christopher Stewart, Wal-Mart Stores, Inc., Bentonville, Arkansas
  • Christine Tims, Wal-Mart Stores, Inc., Bentonville, Arkansas


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Petroleum Equipment Institute
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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.