January 4, 2017 | Vol. 67, No. 1

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Dear PEI Member:

Craig Hoyer, president of Kubat Equipment & Service Co., Denver, Colorado, became the 67th president of the Petroleum Equipment Institute on Jan. 1. He succeeds Steve Trabilsy, president of Accurate Tank Technologies, North Aurora, Illinois. Robert Peavey, president of Pumptex, Inc., Beaumont, Texas, is PEI’s vice president.

One of Hoyer’s first duties was to appoint committees for 2017. In all, 179 people were named to serve on 25 PEI committees. This includes 18 members who have not previously served on a PEI committee. As in years past, the number of qualified PEI members who asked to serve exceeded the number of open committee positions. Although we were not able to place all of our would-be volunteers, we want to acknowledge and thank all who offered their services. If you are interested in serving on a committee in 2018, email your committee preferences to Rick Long at rlong@pei.org.

You can find a complete list of all committees and committee members here.

REGISTRATION OPENS FOR PEI WOMEN CONFERENCE
Registration is now open for the third annual PEI Women Conference, to be held April 25-27, 2017, in Savannah, Georgia, at the Embassy Suites by Hilton Savannah.

The event launches with a welcome reception and dinner on Tuesday evening, April 25. This is an ideal opportunity to network, catch up with old friends and meet new friends.

Conference education begins with a workshop by Diane Thielfoldt on multigenerational communications, “A Guide to the Changing Workforce: Four Generations, One Workforce.” Thielfoldt is co-founder of The Learning Café. This highly interactive, skills-focused event will provide practical tools to help attendees thrive in today’s work space.

Linda Larsen, entrepreneur and best-selling author, also will lead several sessions, including “Playing to Win: It’s Not Your Mother’s Playground Anymore.” Larsen will illustrate the different ways men and women approach situations and explain how to solve problems and strengthen professional relationships.

Another sure-to-be-popular event is a panel discussion featuring the insights, perspectives and experiences of five extremely accomplished PEI Women members:

PEI Committees Appointed

Registration Opens for PEI Women Conference

REGS Rule Comment Period Extended

CAFE Standards Solidified

UID Early-Bird Registration Ends Jan. 11

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Chris Blumberg, vice president and general manager of SouthEastern Petroleum Systems, Inc.
Paola Bravo, president and CEO of S. Bravo Systems Inc.
Marion Long, executive vice president of Walsh, Long & Company, Inc.
Joyce Rizzo, president of JD2 Environmental, Inc.
Ann Thomas, CEO of Petroleum Marketing Equipment.

Early-bird registration for the PEI Women Conference is $495 ($595 for nonmembers) through Feb. 28. After Feb. 28, the fee increases to $595 for members ($695 for nonmembers). Registration includes all sessions and materials, one lunch, two receptions and two dinners. The nonmember registration fee also includes a lifetime PEI Women membership.

PEI’s negotiated room rate at the conference hotel is $169 plus tax Sunday, April 23 through Thursday, April 27, and $249 for the Friday and Saturday nights before and after the event. Book your room early to make sure you get PEI’s special rate.

To learn more about the speakers, schedule and host hotel, and to register, click here.

EPA EXTENDS REGS RULE COMMENT PERIOD
The Environmental Protection Agency (EPA) has extended by 30 days the comment period on its proposed Renewable Enhancement and Growth Support (REGS) rule. Originally set to expire Jan. 17, the comment period is now open until Feb. 16.

The REGS rule would reclassify ethanol blends from E16 to E83 as flex fuels approved for use in flex fuel vehicles. According to the EPA, this would “clear the way for the expanded production and use of high ethanol fuel blends at a lower cost, and thereby the opportunity for increasing demand.” The reclassification also would exempt these blends from certain gasoline quality standards, including summertime Reid Vapor Pressure (RVP) requirements in certain states.

While applauding the expansion of the higher ethanol blends, ethanol advocacy groups have expressed concerns that the REGS rule would have the unintended consequence of disadvantaging E15, just as this fuel is making inroads into the market. If the REGS rule is adopted as proposed, E15 would be the only ethanol blend without RVP relief.

CAFE STANDARDS MOVING FORWARD
In two year-end actions, the EPA moved to solidify Corporate Average Fuel Economy (CAFE) standards established by President Obama in 2012.

The 2012 rule gradually increases the CAFE standards for the nation’s fleet to 54.5 miles per gallon by 2025. However, the rule also requires EPA to make a “Midterm Evaluation” of the standards for model years 2022-2025 by April 2018.

On Nov. 30, 2016, EPA, acting well in advance of that deadline, launched the Midterm Evaluation and opened a 30-day comment period on its determination that the averages for model years 2022-2025 are appropriate.

Within days, three auto industry groups and two states (Ohio and Michigan) petitioned EPA to either withdraw the Midterm Evaluation or extend the comment period to at least 120 days. The additional time, they argued, was necessary for stakeholders to provide thorough input on a mandate they believe will cost the industry billions of dollars.

On Dec. 22, 2016, the EPA rejected all of the requests to delay the Midterm Evaluation or extend the comment period.

DOE AWARDS $7 MILLION IN RESEARCH GRANTS
Following a three-month-long bidding process, the Department of Energy (DOE) on Dec. 30, 2016, awarded up to $7 million in research grants to eight universities under its Co-Optimization of Fuels and Engines (Co-Optima) initiative. The Co-Optima program—a collaborative effort involving DOE, 10 national laboratories and various private industry stakeholders—seeks to identify, develop and accelerate adoption of new vehicle fuel and engine technologies that will maximize performance and minimize environmental impact.

Collectively, the eight research projects will provide detailed data and analysis on the combustion and performance characteristics of a wide range of diesel, biodiesel, biofuel and other alternative fuel blends. DOE will use the results to develop strategies for improving conventional spark-ignition engine efficiencies and enabling next-generation, advanced compression ignition engines.

UID EARLY-BIRD REGISTRATION ENDS JAN. 11
Early-bird registration for the 2017 University of Innovative Distribution (UID), March 5-8, at the JW Marriott in Indianapolis, closes Jan. 11—one week from today.

PEI is offering $600 scholarships to the first 30 members who register—reducing the early-bird registration fee from $1,095 to $495.

UID’s concentrated educational program is tailored specifically for professionals in the wholesale distribution industry. CEOs, branch managers, operations managers, sales and marketing professionals, purchasing and inventory personnel, and manufacturers all can benefit from this exceptional educational opportunity. To view the full menu of courses and register, visit www.pei.org/uid.

NACS EXHIBITOR ADVISORY COMMITTEE APPOINTMENTS
Representatives of two PEI member companies—Dawn Brooks of Purpora Engineering, Saukville, Wisconsin, and Kelly A. Mulligan of Morrison Bros. Co., Dubuque, Iowa—have been appointed to the NACS Exhibitor Advisory Committee (EAC). They will join three other PEI members presently serving on the committee: Sara Brenden, Growth Energy, La Vista, Nebraska; Doug Wagner, AIR-serv Group, LLC, Orlando, Florida; and Melanie Widmann, Petrosoft, LLC, Pittsburgh, Pennsylvania.

The NACS EAC gives exhibiting companies a voice on issues related to the NACS Show and fosters better communication among the exhibitors, on-site service contractors and show management. The committee also develops initiatives intended to keep the NACS Show relevant, current and viable.

ACQUISITIONS
Dover Corporation has sold Wayne Fueling Systems UK to Petrotec Group. The United Kingdom’s Competition and Markets Authority (CMA) had previously expressed concerns that Dover’s $780 million acquisition of Wayne Fueling Systems would limit competition in the UK. With some 75 employees, Wayne Fueling Systems UK provides a variety of products and technologies to fueling stations in the UK and Ireland. Petrotec, with 900 employees servicing more than 80 countries, entered the UK market in 2013.
Unified Services of Texas, Inc. (UST) of Southlake, Texas, has acquired Kansas City, Missouri-based Schwob Energy Services Fuel Division. The acquired organization will continue to do business as a newly formed division of UST. James Robinette, who has managed Schwob's Fuel Division for the past four years, will serve as manager of the new division. Before joining Schwob, Robinette was part owner of a fuel contracting business in Kansas City.

BRIEFLY NOTED
“[A]fter six months, 7.8% of the almost 12,000 service stations in Mexico are selling fuel under new brands, providing Mexican drivers an alternative to the classic Pemex stations …. OxxoGas has taken the lead of the new fuel retailers by rolling out a network of around 300 gas stations spread throughout 10 states of Mexico. They are followed by Petro-7, a subsidiary of 7-Eleven specially made to fuel the Mexican market, which now has over 200 fuel stations in the country.”—PetrolPlaza, Dec. 27, 2016
“Come the new year, millions of the lowest-wage workers across the country will get a raise …. All told, the minimum wage is set to rise in 21 states, at least 22 cities, four counties and one region. The biggest minimum wage raises, percentage wise, will be in Arizona (up 24% to $10), Maine (up 20% to $9) and three Silicon Valley cities (up 20% to $12).”—CNN Money, Dec. 19, 2016
“Nikola Motor Co. said it would roll out a nationwide network of hydrogen fueling stations to support its upcoming Nikola One hydrogen fuel cell electric semi-truck. The web of 364 stations, which will be accessible to other fuel cell vehicles, will start construction in January 2018 and begin opening in late 2019, said Trevor Milton, Nikola’s chief executive.”—Trucks.com, Dec. 20, 2016
“Effective Jan. 1, [Michigan’s] new 26.3 cents per gallon gasoline equivalent CNG fuel tax will be collected on road use of compressed and liquefied natural gas. Previously, CNG consumers had paid the 6 percent sales tax, but not the state’s 19-cent-per-gallon fuel tax.”—The Times Herald, Dec. 20, 2016
“Today, we have more than 5,000 natural gas collection trucks on the road, which makes us the largest private vocational heavy-duty fleet user of natural gas in the nation. We continue to expand this fleet, with up to 90 percent of new trucks purchased in 2015 running on compressed natural gas.”—Waste Management report, as quoted in US GasVehicles.com, Dec. 19, 2016

DEATHS
Lee Radermacher, longtime owner of Pump & Meter Service of Hopkins, Minnesota, died Dec. 31, 2016, at age 87. Lee was a former member of the PEI board of directors and in 1979 served on the first PEI Safety Committee. He retired from active involvement in the business in 1998. Before beginning his more than 40-year career with Pump & Meter Service, Lee served in the Navy during the Korean War. He was a Rotarian, an active church member/Stephen's minister and a business mentor to many others. Survivors include his friend and partner Dori Helmer; brother Jack; sister Ramona Digre; children Joe, Tom, Cheri Wolfe, Connie Haugen, Carol Narum and Cathy Ruckheim; stepsons Peter and Drew Keogh; 21 grandchildren; and 11 great-grandchildren.
Thomas Edwin “Ed” Adams died Dec. 27, 2016, at age 99. In 1976 Ed founded Athabasca Research Corporation Ltd. Ed will be remembered for developing the VacuTect process, a method for identifying leaks in underground hydrocarbon tanks. In 1986, he sold all the assets of Athabasca to a newly formed company, Tanknology Inc., which continues to operate around the globe today.

ADMITTED TO PEI

FDR & CP Services, LLC, Bryan, TX (S&C)
Ridge Petroleum Contractors Inc., Muncie, IN (S&C)

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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.