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September 29, 2017 | Vol. 67, No. 19

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In This Issue

Dear PEI Member:

When the U.S. Environmental Protection Agency (EPA) tightened nitrogen oxide (NOx) emission requirements for medium- and heavy-duty vehicles in 2010, an entirely new industry built around an entirely new vehicle fluid was born. To meet the requirements, major truck manufacturers quickly settled on selective catalytic reduction (SCR), a technology that used a new exhaust after-treatment called diesel exhaust fluid (DEF), a mixture of 32.5 percent urea and 67.5 percent deionized water.

In June 2009, just months before the new emission standards went into effect, PEI and the National Association of Truck Stop Operators (NATSO) held a DEF conference in Nashville. More than 300 curious manufacturers, distributors, truck store owners and others showed up to learn what this new fluid was and the role it might play in our industry. The conference program included such basic topics as:

  • “Driving for Cleaner Air”
  • “Why Are We Talking about DEF?”
  • “All About DEF”
  • “DEF Requirements and Storage Options”

Earlier this week, a very different kind of DEF conference took place. The 2017 DEF Forum USA, presented in San Antonio by Integer Research, gave testimony to how far DEF has come in eight years.Take just three examples:

  • 720 million gallons of DEF will be sold in the United States in 2017. That’s up from 601 million gallons last year and 495 million in 2015. The projection for 2018 is north of 800 million gallons. Phase 2 of the EPA’s greenhouse gas emissions standards for medium- and heavy-duty trucks, which arrive in 2021, are likely to require higher DEF dosing rates and, therefore, increase usage even more.
  • National Conference of Weights & Measures (NCWM) standards on DEF properties, and labeling have been adopted in 27 states, with three more getting close.
  • 16 North American urea plants are online. Four others are in development.

DEF Lessons

RP400 and RP500 Comments Closing

Public Comments on STI Standards

PEI Hurricane Relief Update

E10 in Mexico on Hold




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DEF also has become much more than a curiosity to PEI members. A quick scan of the 2017 PEI Directory shows more than 30 manufacturer members producing components for the systems that store, meter and deliver DEF—including totes, underground storage tanks, valves, meters, pumps, dispensers and hanging hardware. Another 30 or so affiliate members are providing related design and engineering services. And many distributors and contractors that serve truck stops, agricultural customers or fleets have had at least some experience with building out DEF infrastructure.

Not only are PEI members engaged in DEF, the work they are doing is first rate. PEI/RP1100:, Recommended Practices for the Storage and Dispensing of Diesel Exhaust Fluid (DEF) is now in its second edition. Statistics from the DEF aftermarket audit program conducted by the American Petroleum Institute (API) even show that DEF purity is higher in bulk storage systems than in prepackaged containers.

No business is without its challenges. If you’re in the DEF game, you’ll likely encounter a few headwinds in the years to come. For example, the California Air Resources Board (CARB) may soon mandate even higher “ultra-low” NOx reduction requirements. If so, other states are certain to follow. It is even possible that the EPA may adopt ultra-low NOx requirements at the federal level to ensure a uniform national standard. The complexity and expense of complying with ever tighter NOx standards may prompt some fleet owners to move away from diesel and toward compressed natural gas (CNG) or even hybrid electric vehicles.

However, 95 percent of the nation’s medium- and heavy-duty truck fleet is diesel-powered today, and no analyst is forecasting a dramatic drop in that number any time soon. So, the market for DEF equipment solutions should remain strong for the foreseeable future.

The rapid rise of DEF is an interesting story in and of itself. But whether you are directly involved in this product category or not, the story illustrates an important lesson for all PEI members.

In the fueling equipment industry, opportunities often spring up quickly, whether as a result of technological breakthroughs or in response to government regulations. DEF’s 8-year growth from nothing to a very big something is one example, but there are plenty of others too. The introduction of submersible turbine pumps. The move from mechanical to electronic meters. Card reader in dispenser (CRIND) systems. PCI compliance. And, most recently, EMV.

Given the importance of vehicle fueling systems to the world’s economy, new growth opportunities—some of which may seemingly come out of nowhere—will continue to develop in the future. There’s no question about it. The real question is whether you will be ready.

The public comment periods for the next editions of 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 end tomorrow, Sept. 30. 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.Comments must be submitted online

The STI/SPFA committee responsible for SP001, Standard for the Inspection of Aboveground Storage Tanks and SP031, Standard for Repair of Shop-Fabricated Aboveground Tanks for Storage of Flammable and Combustible Liquids, is requesting comment on draft revisions of both standards. Proposed SP001 changes include:

  • Inspection requirements for concrete-encased shop-fabricated tanks;
  • Inspection details for steel diked tanks;
  • Reduced requirements to check for water in some Category 1 tanks;
  • Provisions on the suitability of continued service of double-wall tanks;
  • Restructurer monthly and annual inspection checklists.

Proposed changes to SP031 include:

  • Revised definitions;
  • Improved repair descriptions and diagrams.

If you are interested in commenting, email Dana Schmidt at dschmidt@steeltank.com to receive drafts of the standards and instructions for submitting comments. Public comment must be received by Oct. 27, 2017.

Earlier this month, the board of governors of the PEI Foundation announced a hurricane relief campaign for full-time employees of PEI member companies who suffered loss as a result of Hurricane Harvey or Hurricane Irma. (see Sept. 14, 2017 TL)

Until Oct. 19, you can help your fellow members by making a tax-deductible gift to the PEI Foundation, a 501(c)(3) corporation. Every dollar raised will go to individuals in the PEI community who have suffered loss. To learn more and make your contribution, click here. If you suffered at least $1,000 of unreimbursed losses from or as a result of either storm, click here to complete the simple, one-page aid application.

The EPA issued a Notice of Data Availability (NODA) Sept. 26 seeking public comment on potential reductions in 2019 biomass-based diesel volume and/or 2018 biomass-based diesel, advanced biofuel, and total renewable fuel volumes under the Renewable Fuel Standard (RFS). Comments will be accepted for 15 days after publication of the NODA in the Federal Register.

A Mexican court granted a temporary injunction Sept. 13 against a June 27 decision by the country’s Energy Regulatory Commission to increase the allowable amount of ethanol in gasoline from 5.8 percent to 10 percent throughout much of the country (see July 6, 2017 TL). The court is expected to rule soon on whether the injunction will be made permanent.

Core States Group named Randy Sauer vice president of the company. Sauer was most recently a principal/sector leader at the DLR Group. Dover Fueling Solutions (“DFS”) appointed Jeroen de Gruijter as managing director of Europe, Middle East and Africa (EMEA). Reporting directly to David Crouse, the president of DFS, de Gruijter will be based in the DFS manufacturing center in Dundee, Scotland. Fatboy Electric will open a second office at 1008 W. Farmer Street, Ozark, Missouri, on Oct. 1. The company named John Henry as branch manager at the new location and Daniel Stallings field supervisor. Mike Keul was appointed operations manager at Fatboy’s home office in Kansas City, Missouri.

Pete Sokoloff died Sept. 24 in Santa Fe, New Mexico. Sokoloff was a 38-year veteran of the petroleum equipment industry, most recently with the Boston-McDermott manufacturers' representative firm. At the time of his death, he was a resident of Fountain Valley, California.

“On Tuesday at the National Safety Council Congress & Expo in Indianapolis, the Occupational Safety and Health Administration (OSHA) announced its annual preliminary list of the top 10 most frequently-cited workplace safety violations the organization encounters during safety inspections throughout the U.S. ... Fall Protection remained No. 1 on the list ... with Hazard Communication at No. 2; Scaffolding at 3; Respiratory Protection at 4; and Lockout/Tagout at 5.—Industrial Distribution, Sept. 26, 2017
“Daimler AG plans to spend $1 billion to start production of Mercedes-Benz electric vehicles at its Alabama factory, setting the world’s largest luxury-car maker up to battle with battery-car specialist Tesla Inc. on its home turf. … The Alabama factory will assemble plug-in sport utility vehicles, taking on Tesla’s Model X and making Stuttgart-based Daimler the first European company to assemble fully electric autos in the U.S.—Bloomberg, Sept. 21, 2017
“Americans are still leery of autonomous vehicles and doubt that they can provide a safer mode of transportation. Twenty-two percent of registered voters say self-driving cars are safer than the average human driver, according to a new Morning Consult/POLITICO poll. Thirty-five percent of respondents said the automated technology is less safe than human-operated vehicles, while 18 percent said autonomous vehicles have about the same level of safety as human drivers.”—Morning Consult, Sept. 14, 2017
“Dyson—yes, the British vacuum-cleaner maker—is planning to build an electric vehicle. Founder and chief engineer James Dyson told employees Tuesday that the company would invest the equivalent of about $2.7 billion to build an electric vehicle by 2020. Dyson is hoping that its growing expertise in advanced batteries will pay off in an altogether new area.”—USA Today, Sept. 26, 2017

Car wash system manufacturer. AUTEC, Inc., 2500 W. Front Street, Statesville, NC 28677, has applied for manufacturer division membership. Lorie Street is responsible for marketing for the firm, which was established in 1981. AUTEC manufactures soft-touch, touch-free and combination car wash systems, all of which are sold through PEI distributors. Sponsored for PEI membership by Tim Gibbar, Nwestco, Kalispell, Montana. www.autec-carwash.com
Texas compliance and contractor firm. Rite-Way Environmental Testing & Compliance, LLC, 266 Larkspur Circle, Lufkin, TX 75904, has applied for service and construction division membership. Larry Brevard is the owner of the firm, which was established in 2013. The company provides corrosion protection surveys, installation, maintenance, repairs and removal of underground storage tanks. Sponsored for PEI membership by Doug Jones, PumpMaster, Shreveport, Louisiana. www.ritewayetc.com
Georgia installation company. Universal Equipment Maintenance Co., 325 Veterans Memorial Highway SE, Mableton, GA 30126, has applied for service and construction division membership. Gary Godfrey is president of the firm, which was established in 1979. The company installs and removes petroleum equipment. Sponsored for PEI membership by BJ Benton, UntdPumpGA, Suwanee, Georgia.
Montana service company. EnergiSystems, P. O. Box 51297, Billings, MT 59195, has applied for service and construction division membership. Paul Martens is a partner in the firm, which was established in 2015. The company provides service for petroleum and car wash equipment. Sponsored for PEI membership by Kirk Brumfield, MktgSpec, Billings, Montana.


  • Comdata, Nashville, Tennessee (aff)
  • Florida Petroleum Services Inc., Apopka, Florida (S&C)
  • Petroleum Standards, Sykesville, Maryland (S&C)
  • Paul Beu, Wawa Inc., Media, Pennsylvania (O&E)


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© 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.