July 10, 2020 | Vol. 70, No. 14

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In This Issue

Dear PEI Member:

“Sure, you’ll spend more to buy an electric vehicle (EV) than a comparable gasoline-powered model. But over time, your savings will more than offset the higher purchase price.”

In support of this oft-repeated mantra, EV advocates cite their vehicles’ lower fuel costs.

A just-released study from the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) affirms the argument yet shows the complexity of the electric vs. gas comparison. EV buyers’ energy savings over a 15-year period could be as low as $3,000 or as high as $14,500, according to the study. The range is a function of such factors as:

  • The price of electricity. Average U.S. charging costs vary from 8 cents to 27 cents per kilowatt-hour, depending on location, utility rate bases and peak/off-peak usage patterns.
  • Charging technology. Greater use of DC fast charging increases costs. Greater reliance on traditional, home charging decreases costs.
  • Home charging equipment installation. EV owners who upgrade to a faster home-charging system can expect $1,800 or so in installation costs.
  • Location. Total savings largely depend on where the owner lives. Gas Buddy’s July 8 data, for example, showed that the average gallon of regular gas costs $1.88 in Oklahoma and $3.12 in California.
  • Miles driven. Driving patterns and distances can multiply — or cut into — individual savings.

EV owners who intend to upgrade to a newer model fairly quickly will face another reality. For now, at least, EVs do poorly in the resale department. The average EV loses 56.6% of its original value in three years, according to iSeeCars. That compares to a 38.2% three-year depreciation average for all vehicles.

EV Fuel Costs

PEI Updates Aviation Fueling RP

Skimming Breaches Decline

Free Latin America Webinar

PPP Deadline Extended, Borrower Data Released

Florida Funds Ethanol-Related Repairs, Replacements, Upgrades

Conexxus' EMV Deployment Survey

Main Street Lending Program Opens


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Those are the numbers today. But stay tuned — as EVs get better, government incentives evolve and gas prices rise (or fall), the calculus will be different tomorrow.

PEI today released an updated edition of PEI/RP1300: Recommended Practices for the Design, Installation, Service, Repair and Maintenance of Aviation Fueling Systems. Major changes in PEI/RP1300-20 include:

  • A new paragraph addressing reclaim tanks (sometimes referred to as recovery tanks), which allow for the removal of dirt, water or both before returning fuel to a storage tank.
  • A new warning about consulting with filter manufacturers before using monitor vessels or replacing elements.
  • Revisions to Section 6.6 on controlling static electricity when filling refueling tank trucks/vehicles or storage tanks.
  • A discussion of secondary refueler high-level shutoffs, which halt rack loading operations when a refueler sensor indicates failure of the primary system.
  • Updates to the Publication Reference Appendix.

PEI thanks the Aviation Fueling Committee for its work on this important document:

  • Jim O'Day, O'Day Equipment LLC, chairman
  • Michael J. Brunmeier, Petro-Chemical Systems Inc.
  • Roy Creley, Lakes Region Environmental Contractors
  • Penelope Ellis, Fuelmaster/Syn-Tech Systems Inc.
  • Arthur H. Hoffmann, A.H. Hoffmann LLC
  • Charles B. Hubbard, Oil Equipment Sales & Service Co. Inc.
  • Gordon Johnson, Millennium Systems International LLC
  • John Lindner, Epic Aviation LLC
  • Scott Milsted, Mascott Equipment Co. Inc.
  • Thomas M. Riddle, AMEC Foster Wheeler
  • Steve Thickstun, Advanced Fuel Systems Inc.
  • Andrew Thompson, Facet Filtration Group

Single copies of PEI Recommended Practices are $50 for PEI members and $195 for nonmembers. Learn more about RP1300-20 and order your copy here.

Verizon’s 2020 Data Breach Investigations Report shows a shift from point-of-sale (POS) skimmer intrusions to e-commerce breaches. Skimming incidents accounted for only 0.7% of worldwide data breaches from Nov. 1, 2018 to Oct. 31, 2019, an 85% decline since 2013, according to the report. E-commerce data incidents represented more than 40% of this year’s total. Download the complete report or executive summary here.

PEI Latin America Director Liliana Cruz and Jorge Ballesteros, director of Lima, Peru-based Surtidores, will host a free July 16 webinar on how Latin American petroleum equipment distributors can face the COVID-19 pandemic. The one-hour webinar, which begins at 10 a.m. Central, will be presented in Spanish. Ballesteros will discuss new business models, strategies and tactics that can help Latin American members preserve liquidity and achieve their post-COVID-19 business objectives. Register here.

President Trump signed legislation extending the Paycheck Protection Program (PPP) loan application deadline from June 30 to Aug. 8. The program is open to businesses and 501(c)(3) charitable nonprofits with up to 500 employees.

The U.S. Small Business Administration (SBA) also released details on the nearly 5 million PPP loans issued to date. For each loan of $150,000 or more, the now-public information includes the borrower’s business name, address, NAICS code, zip code, business type, lender, jobs supported and loan amount range.

The data dump is partly in response to a warning and recommendation in a June U.S. Government Accountability Office (GAO) report, which states: “[T]o help quickly disburse funds, SBA allowed lenders to rely on borrower certifications to determine borrowers’ eligibility, raising the potential for fraud. GAO recommends that SBA develop and implement plans to identify and respond to risks in PPP to ensure program integrity, achieve program effectiveness and address potential fraud.”

You can view and download the loan data here.

Florida Gov. Ron Desantis signed legislation June 20 to help underground storage tank (UST) system and aboveground storage tank (AST) system owners and operators pay for “the repair or replacement of petroleum storage tanks, integral piping, or ancillary equipment that may have been damaged, or is subject to damage, by the storage of fuels blended with ethanol or biodiesel or for other preventive measures to ensure compatibility with ethanol or biodiesel.”

Individual applicants may receive up to $200,000 per site and $500,000 per year for all their sites. The legislation authorizes total annual disbursements of $10 million on a first-come, first-served basis. Program details and fund application forms may be found here.

Forecourt EMV upgrades are underway or complete at 48% of the 16,095 U.S. retail fueling facilities participating in a recent Conexxus survey. That’s up from 30% in Conexxus’ 2019 survey.

Survey responses were collected Feb. 27 to March 31. Owners and operators of 89% of the sites that have not yet upgraded say they intend to do so. Those who were unsure whether they will upgrade cited cost as their biggest concern. Download the survey here.

The Federal Reserve Bank of Boston announced July 6 that applications for the Main Street Lending Program (MSLP) are now open. The program is open to organizations with up to 15,000 employees and $5 billion in revenue that have been negatively affected by COVID-19. MSLP loans have a 5-year maturity, 2-year principal deferrals and 1-year interest deferrals. Read more.

“The EPA will end its relaxed enforcement policy
in response to the coronavirus pandemic on Aug. 31, according to a publicly released memo. Since the policy was put in place, new federal guidelines have been issued to support the public health response and economic recovery efforts, Susan Parker Bodine, the EPA’s assistant administrator for enforcement and compliance assistance, wrote in the memo dated Monday.” — Bloomberg Law, June 30

“Chestnut Petroleum Distributors Inc. has entered a consent decree to settle a civil lawsuit against the petroleum marketer and distributor for underground storage tank violations at 20 gasoline stations, according to the U.S. Attorney for the Southern District of New York (SDNY) and the U.S. Environmental Protection Agency. … These actions include failing to perform release (i.e., leak or spill) detection, failing to maintain and provide records of release detection monitoring, failing to operate corrosion protection systems including inspecting and testing for steel underground storage tank systems, and failing to maintain and provide records of corrosion protection monitoring, among others.” — Oil Express Alert, July 1

D&H United Fueling Solutions
named John Kocurek vice president of services. In this new position, Kocurek will lead D&H United’s service organization and service growth strategy. Kocurek has 15 years of industry experience, most recently as the Houston branch manager for Petroleum Solutions Inc.

Petroleum Containment Inc. appointed Eastern States Associates Inc. its representative in Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia. Petroleum Containment also named Merthan Enterprises its representative in Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wisconsin.

SME Solutions LLC acquired the assets of Grand Ronde Petroleum Solutions LLC (GRP), effective July 1. GRP President Gary Jones and the entire GRP staff have joined SME. Jason Franke will be the service manager at SME’s new Kennewick, Washington branch, which will operate from GRP’s former facility.

Mexican distributor.
Equipos Industriales Del Noroeste S.A. de CV, Aldama 1734 Sur, Los Mochis 81280, Mexico, applied for distributor division membership. Juan Leopoldo Frias Rodriguez is CEO of the company, which was established in 1984. Equipos Industriales Del Noroeste S.A. de CV sells and installs gas station and oil industry equipment, including submersible pump systems, monitoring systems, fuel nozzles and signage. Sponsored for PEI membership by J. Gregory Hockman, Hockman-Lewis Ltd., West Orange, New Jersey.


  • American Coalition for Ethanol, Sioux Falls, South Dakota (affiliate)
  • M & Y Pump Services Inc., Smithtown, New York (service and construction)
  • C & J Petroleum, Temple, Texas (service and construction)
  • Ron Haroon, DES Wholesale LLC, Roswell, Georgia (operations and engineering)


  • Tanknology Inc., Austin, Texas (from manufacturer to service and construction)
  • COPPSA Group SA, Cordoba, Argentina (from distributor to service and construction)
  • Arkansas Testing Services LLC, North Little Rock, Arkansas (from distributor to service and construction)
  • MIBA, Inc. dba Reliable Construction Services, Dayton, Ohio (distributor to service and construction)
  • Advanced Petroleum Services Inc., Renfrew, Pennsylvania (from service and construction to distributor)
  • Durapipe, Cannock, Staffordshire, U.K. (from distributor to manufacturer)
  • Richard James Markie, Conjunto Desarrollo Marina Mar S.A. de C.V., Nuevo, Vallarta, Mexico (operations and engineering)
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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.