June 10, 2020 | Vol. 70, No. 12

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In This Issue
Dear PEI Member:

After months of government-mandated business shutdowns, the economic recovery is underway. As detailed in the June 1 PEI Industry Alert, more than two-thirds of PEI members in our most recent survey reported that May was equal to or better than April. Members also are much more optimistic about the next 12 months than they were in April.

An encouraging trend, for sure — and one I fully expect to continue, as states continue their phased reopenings. However, the rebound will not be business as usual. In the months and years ahead, PEI distributors, contractors and manufacturers will have to adjust to:

  • Evolving c-store business models;
  • Heightened consumer concerns about fueling safety;
  • Growing, and probably permanent, interest in touchless payment systems;
  • A likely breakthrough in electric vehicle (EV) battery technologies;
  • The emergence of mobile fueling and other non-traditional fuel delivery models;
  • Societal struggles to confront and resolve longstanding injustices;
  • The unsettling reality that the next big disruption may look nothing like COVID-19.

Recovery Begins, PEI Responds

RP700-20 Available for Purchase

New ASTSWMO Resources

COVID-19 Developments

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With all of these changes and unknowns, the 2020 PEI Convention at the NACS Show (Oct. 11-14 in Las Vegas) couldn’t come at a better time. Watch my short video to learn how the convention will prepare you to “Fuel the Future” and why PEI believes it’s essential that the industry come together this year.

Just added to the educational lineup: Brian Gray, one of the most consequential speakers the PEI Convention has ever presented. Brian is managing director and North American retail fuels and convenience lead for Accenture, the largest consulting firm in the world. His peerless research and keen insights will reveal the opportunities soon to arise as consumers change how they buy, where they buy and how they travel.

Early bird registration and group registration discounts end soon. Join your colleagues, customers and friends in Las Vegas at the 2020 PEI Convention.

PEI has released an updated version of PEI/RP700: Recommended Practices for the Design and Maintenance of Fluid Distribution Systems at Vehicle Maintenance Facilities.

RP700 provides a concise summary of design considerations and guidelines for the installation of safe and reliable centralized distribution systems for lubrication oil, gear oil, transmission fluid, hydraulic fluid, grease, antifreeze and windshield washer fluid. The document’s recommended practices cover containers (tanks, drums, pails), piping, tubing, pumps, compressors, hoses, reels, nozzles and other equipment typically used to construct these systems.

PEI thanks the PEI Pneumatic and Hydraulic System Installation Committee, which was responsible for publication of this document:

  • Philip J. Parker, Blue1 Energy Equipment (chairman)
  • Harrell Blair, McKinney Petroleum Equipment
  • Perry Heaton, C.L. McBride Co. Inc.
  • Donald Smith, Balcrank Corp.
  • Alex Stuart, Beneficial Systems
  • Larry Webster, Alfred Benesch & Co.

The Association of State and Territorial Solid Waste Management Officials (ASTSWMO) released its 2019 Annual State Fund Survey. Conducted in association with the Vermont Department of Environmental Conservation, the survey provides data on states’ fund design characteristics, financial sources, payment activity and cost control measures.

The new ASTSWMO State Programs Addressing Abandoned Underground Storage Tanks resource summarizes 10 states’ efforts to remove abandoned underground storage tanks (USTs) and identify related contamination. Other states interested in being included should follow ASTSWMO’s suggested template and email their submissions to Charles Reyes at

ASTSWMO also released a statement concurring with recent U.S. Environmental Protection Agency (EPA) guidance that the ASTM 3225-20 visual sump examination method does not meet 40 CFR 280.35 requirements for periodic testing of spill prevention equipment and containment sumps. (See the March 31, 2020 TL.)

PPP Flexibility Act.
President Trump signed the Paycheck Protection Program (PPP) Flexibility Act on June 5. The act: lengthens the minimum maturity of the unforgiven portion of PPP loans to 5 years; extends the covered period from June 30 to Dec. 31, 2020; expands from 8 to 24 weeks the time during which a loan must be spent; and removes the mandate that 75% of a PPP loan must be spent on payroll.

CDC Guidance for Employers. On May 28, the Centers for Disease Control and Prevention (CDC) issued additional guidance for businesses as they reopen.

Main Street Lending Program (MSLP). On May 27, the Federal Reserve released forms and agreements for borrowers and lenders seeking to participate in the MSLP. On June 8, the Fed modified the MSLP to allow greater small and medium-sized business participation by: lowering the minimum size of most loans from $500,000 to $250,000; increasing the maximum loan amount; extending loan terms from 4 to 5 years; and deferring principal payments for 2 years. Details on the June 8 MSLP expansion can be found here.

Employee Retention Tax Credit (ERTC). Reps. Stephanie Murphy (D-FL) and John Katko (R-NY) introduced a bill (H.R. 6776) to enhance the ERTC. (See April 14, 2020 TL.) The bill would:

  • Expand the ERTC from 50% to 80% of qualified wages;
  • Increase the per-employee limitation from $10,000 to $15,000 per calendar quarter (with a maximum of $45,000 for all calendar quarters);
  • Make employers with as little as a 20% revenue decline eligible for a partial credit; and
  • Allow employers to participate in both the PPP and the ERTC, with appropriate guardrails to prevent “double dipping.”

PEI is one of many trade associations participating in a sign-on letter urging passage of the bill.

“From 2015 to 2018, plug-in vehicle market share in the United States rose from 0.7% to 2.1%
and made up 1.9% in 2019. In that same five-year timeframe, market share of plug-in vehicles in China more than quadrupled, reaching 5.1% in 2019. Europe, as a whole, has also seen growth of plug-in vehicle sales share reaching 3.0% in 2019.” — U.S. Department of Energy, June 5

“Germany said it will oblige all petrol stations to offer electric car charging to help remove refuelling concerns and boost consumer demand for the vehicles as part of its 130 billion euro ($146 billion) economic recovery plan. The move could provide a significant boost to electric vehicle demand along with ... taxes to penalise ownership of large polluting combustion-engined sports utility vehicles and a 6,000 euro subsidy towards the cost of an electric vehicle.” — Reuters, June 4

“Phillips 66 has joined majors promoting mobile pay as a way to help prevent the spread of coronavirus disease 2019 (COVID-19) … . The 15cts/gal mobile payment discount is good on purchases up to 30 gal every time — not just the first time a consumer fills up during the promotional period, Phillips said in its announcement.”— Oil Express Alert, June 2

“‘COVID-19 may have slowed fuel demand in recent months, but the promise of E15 remains stronger than ever as we mark the first anniversary of year-round sales,’ said Growth Energy CEO Emily Skor. … ‘In just the last 12 months, we’ve seen a surge of interest from Growth Energy’s retail partners who are eager to offer consumers a cleaner, more affordable fuel choice. Nearly 400 new E15 locations have been added over the last year, bringing the total to 2,180, and ... the number of wholesale terminals offering pre-blended E15 continues to rise from only five in 2017 to nearly 200 today.’” — CStore Decisions, June 2

ELAFLEX HIBY Tanktechnik GmbH & Co. KG
and ELAFLEX – Gummi Ehlers GmbH consolidated their operations and will now operate as ELAFLEX HIBY GmbH & Co. KG. Stefan Kunter will serve as CEO and managing director. Thorsten Wasmuth will join the management team to promote distribution. Moritz Hiby will be managing director of the company’s Plettenberg factory.

Hose Master announced three appointments to its sales team: Tim Quarry, Southwest regional sales manager; Nathan Partain, Southeast regional sales representative; and Lance Portwood, South Central regional sales representative.

S. Bravo Systems Inc. expanded Rice Christ’s territory to include Washington, Oregon, Hawaii and Alaska. Rice Christ, which has represented Bravo for more than 11 years, also covers New Mexico, Texas, Oklahoma, Arkansas, Mississippi and Louisiana.

Shields, Harper & Co. promoted Niazi “Z” Alzouhbi to president. Alzouhbi succeeds Dave Sarginson, who retired in March after 41 years with the company. Sarginson will remain on Shields Harper’s board of directors. Alzouhbi, who joined the company 18 months ago, will work closely with CEO Bart Scowley and CFO Greg Brown.

Indiana service company.
WOC Maintenance LLC, P.O. Box 6850, Evansville, IN 47719, applied for service and construction division membership. John Meyer is general manager of the firm, which was established in 2000. WOC Maintenance LLC specializes in fuel management systems, aboveground storage tank (AST) fuel tank installation, tank metering and gauging systems. Sponsored for PEI membership by Frans Paul Fouche, Fuel Management Technology, Troy, Michigan.

Florida installation company. Fuel Services Management Inc., P.O. Box 20264, West Palm Beach, FL 33426, applied for service and construction division membership. Coraliz Cordero is president of the company, which was established in 2017. Fuel Services Management Inc. installs and services fueling equipment, with specialties in ASTs, USTs, pipe installations and removals for commercial and industrial sites, as well as fueling system upgrades, tank monitoring systems and meter calibrations. Sponsored for PEI membership by Paul Doyle, Petroleum Marine Construction, LLC, Oakland Park, Florida.

Mexican distributor. Petrogas Corp., Av. Rómulo Garza #212 Col. Hacienda Los Morales, San Nicolás de los Garza, Nuevo León, 66495 Mexico, applied for distributor division membership. Javier Vargas is director of the company, which was established in 1992. Petrogas Corp. designs, supplies equipment, builds and provides specialized maintenance for service stations. Sponsored for PEI membership by Andrew Knapp, Franklin Fueling Systems, Madison, Wisconsin.


  • Tecnologia e Ingeniería Luqross SA de C.V., Ciudad de México, Mexico (service and construction)
  • Petro Technicians, SA de C.V., Zapopan, Jalisco, Mexico, (affiliate)
  • CIEFSA S.A. de C.V., Ciudad de México, Mexico (service and construction)
  • Precision Testing and Compliance, Austin, Texas (affiliate)
  • K&K Environmental Compliance Testing Services, LLC, Pearl City, Hawaii (service and construction)
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The TulsaLetter 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.