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Dear PEI Member:
PEI staff regularly engages in
dialogue with regulatory officials and other organizations whose work
intersects with or parallels our industry. The past three weeks have been
particularly busy in this regard, with visits to the offices of the U.S.
Environmental Protection Agency (EPA) Office of Underground Storage Tanks
(OUST) and meetings of the National Association of Manufacturers (NAM) and
the National Association of Wholesaler-Distributors (NAW). Here are the key
takeaways.
Chief executives of
NAM-affiliated associations rank oppressive regulations and high taxation as
their members’ biggest business challenges. The most often cited area for
manufacturer growth? International expansion. Increased use of 3-D printing
technologies also is proving to be a boon for fast and accurate prototypes
and new niche products.
Executives with
distributor-based associations also sounded familiar themes, noting
specifically the heavy burden of healthcare costs, consolidation, the
shortage of skilled workers and the increase in direct sales to customers.
But, on balance, distribution business is strong—just as PEI’s distributor
members report.
Not surprisingly, much of the
talk in our various meetings concerned what businesses can expect from the
new Trump administration. On the environmental front, the EPA will no doubt
face changes as a new Administrator with different priorities comes on
board. However, the primary environmental framework governing our industry
has so far received little attention from President Trump’s team. The
administration seems more focused on reducing regulations in “big ticket”
areas—power generation and climate change, for example.
At the same time, the
possibility of across-the-board environmental regulatory rollbacks can’t be
discounted. In fact, the former head of the administration’s EPA transition
team said his personal “aspirational” goal would be to cut EPA employment by
two-thirds (from 15,000 to 5,000) over four years. It’s hard to imagine how
a reduction anywhere close to that could happen without significant cuts in
even successful programs like EPA OUST.
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Industry and Legislative Updates
EPA Nomination Advances
RP Topics Requested
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The president’s first two
weeks in office have certainly been busy, with 21 high-impact executive
orders so far and more to come. However, as Jade West, senior vice president
for government relations with NAW, said, “Sooner or later, President Trump
is going to run out of things he can do by executive order and have to start
passing legislation.”
The White House and Congress
have announced three immediate legislative priorities: healthcare reform,
infrastructure development and tax reform. All are of interest to PEI
members.
- Healthcare. The mantra of “repealing and replacing” the Affordable Care
Act (ACA) was a central tenet of President Trump’s campaign. But in the
early days of the administration, what a new healthcare package might look
like remains anybody’s guess. The most likely model is a scaled-down federal
program, with more control moving to the states. House Speaker Paul Ryan has
said he would like to act on healthcare this spring. The NAM and NAW
government relations staffs think summer is a more realistic goal. Perhaps
illustrating the legislative difficulties that could lie ahead, some
Republican leaders are now speaking of “repairing” the ACA, not repealing
it.
- Tax
Reform. NAM and NAW both believe tax reform has a solid chance of
passing even more quickly than healthcare reform. A blueprint presented by
the House leadership last June includes key elements that are largely in
line with President Trump’s wishes—among them, a substantial reduction in
income tax rates for corporations and individuals, accelerated depreciation
and the deduction of exports from taxable income. Politically, many
Democrats won’t want to go on record as opposing tax reduction. Look for
action on this front by summer 2017.
- Infrastructure. Both parties have produced $1 trillion infrastructure
plans. But that’s where the similarity ends. The Democrats’ plan focuses
almost exclusively on traditional projects, such as road and bridge repair,
rail and bus systems, ports, airports and waterways. The Trump
administration would devote large sums to the nation’s cybersecurity
defenses. The proposed funding mechanisms also differ. Democrats want 100
percent public funding, with possible sources including an increase in the
federal gasoline tax. The president has proposed relying on public-private
partnerships. The big push on infrastructure likely will come in the third
or even fourth quarter of 2017. As a stopgap, however, the president has
issued an executive order designed to expedite approvals of infrastructure
projects.
Both NAW and NAM advise
lowering expectations on near-term comprehensive trade reform—another topic
that got lots of attention during the campaign. President Trump has promised
to renegotiate the North American Free Trade Agreement (NAFTA), impose
tariffs on goods from certain countries and pursue bilateral trade
agreements around the globe. But trade deals are complicated because they
aren’t just about business. Foreign affairs and complex geopolitical issues
also come into play. As a result, it probably will take a while for trade
rhetoric to become policy.
EPA NOMINATION ADVANCES
On Feb. 2, the Senate Committee on Environment and Public Works approved
the nomination of Oklahoma Attorney General Scott Pruitt to lead the EPA.
The committee’s action sends the nomination to the full Senate, where a
final vote on Pruitt’s confirmation is expected sometime next week. A simple
majority is required for confirmation, and the Republicans hold 52 of the
100 seats in the Senate.
TOPICS FOR FUTURE
RECOMMENDED PRACTICES REQUESTED
PEI is seeking topics for future recommended practices. Suggestions for
a recommended practice topic should meet the following criteria:
- The
subject matter involves practices and/or procedures used in the fuel and
fluid handling equipment industry and would serve the greater good of the
industry.
- The topic
has not been covered adequately in documents produced by other
organizations.
- PEI
members have the expertise to write the document.
If you have a topic you would
like for PEI to consider as a recommended practice, email your suggestion to
Bob Young at byoung@pei.org by Feb. 28. Submissions should include the
purpose and scope of the proposed document, along with the intended
audience. PEI’s Recommended Practices Committee will review all submissions
and make recommendations to the PEI Board of Directors.
GAS STATION SUPPLY
ACQUIRES PETROLEUM SPECIALTIES
Gas Station Supply has acquired Kernersville, North Carolina-based
Petroleum Specialties. Wayne Henderson, who founded Petroleum
Specialties in 2009, will continue to work with the Lynchburg, Virginia
distributor. In a company press release, Cole Candler, president of Gas
Station Supply, said, “We are excited about our merger with Petroleum
Specialties. The addition of Wayne Henderson, with his decades of
experience, to our staff, will help us achieve our goal of being a one-stop,
full-service petroleum equipment supplier.”
APPOINTMENTS AND
MILESTONES
Veeder-Root has named Andrea Mulhall
vice president of global marketing. In this role, she will guide the
company’s global marketing strategy and product management across all
product lines.
A & A Pump Company
has moved to a new and larger facility after 32
years in its previous location. The new address for the 60-year-old San
Antonio distributor is 5747 Dietrich Road, San Antonio, TX 78219.
Performance Ink, Inc. has honored two of its sales representatives
with 2016 Manufacturing Rep Awards. Mike Long and Associates received
the Sales Award, given to the rep with the highest gross sales for the year.
VSA, Inc. won the Growth Award, given to the firm with the largest
sales growth percentage for the year.
DEATHS
John Martin, longtime owner of J.E. Martin & Associates in Arlington
Heights, Illinois, died on Jan. 10, 2017. He is survived by his wife of 55
years, Nancy; daughter Stacy Johnson and son-in-law Dave; son Bradley and
two granddaughters.
BRIEFLY NOTED
“It’s good that President Trump is meeting with
corporate chief executives and
industry leaders to bring jobs back to America. However, he should probably
be paying attention to a new report from the National Association of
Manufacturers as well. Issued just last week, the study says there are
297,696 regulations that are currently restricting the efforts of
manufacturers.”—Washington Post, Jan. 25, 2017
“General Motors and Honda Motor Co. plan to invest $85 million to build
hydrogen fuel cell stacks for next-generation green vehicles at a
factory in Michigan. The joint venture, Fuel Cell System Manufacturing, will
begin producing the fuel cell systems around 2020 at GM’s Brownstown
Township, Mich., plant south of Detroit, where the automaker already
produces battery packs for hybrid and electric vehicles.”—Autoweek, Jan.
31, 2017
“Hawaii
has the most aggressive
renewable energy targets
in the nation,
aiming for its utilities to get 100 percent of their electricity from
renewable sources by 2045. Now advocates want to extend that goal to the
transportation sector to urge all forms of ground transportation to fuel up
using renewable sources by 2045.”—ABC News, Jan. 19, 2017
“Of the $80 billion or so spent yearly on federal IT, three-fourths
goes to the upkeep of outdated systems, leaving a small and shrinking budget
for upgrades.”—The Kiplinger Letter, Jan. 6, 2017
MEMBERSHIP APPLICATIONS
Michigan distributor. Lansing Ice & Fuel, 911 Center St., Lansing,
Michigan 48906, has applied for distributor division membership. Greg Decker
is sales and service manager for the firm, which was established in 1906.
The company provides new construction and service, and represents ClawsonTnk,
ESCO, MetersInc, RDMElec, Roth and Vaporless. Sponsored for PEI membership
by Brian Shelton, ClawsonTnk, Clarkston, Michigan.
www.lansingiceandfuel.com
New Jersey controls supplier. Warrington Measurement & Controls, P.
O. Box 521, Oldwick, New Jersey 08858, has applied for affiliate division
membership. Philip Walguanery is a principal with the firm, which was
established in 2011. The company supplies industrial equipment and controls
to the petroleum industry. Sponsored for PEI membership by Keith Moye, OPW-FC,
Hamilton, Ohio.
www.warringtoncorp.com
Florida service and maintenance firm. Gas Station Technical Repairs
Co. Inc., 8100 Belvedere Road #11, West Palm Beach, Florida 33411, has
applied for service and construction division membership. Doug Dryden is
owner of the firm, which was established in 2015. The company provides
maintenance, service and technical repairs for fueling facilities. Sponsored
for PEI membership by David Tiger, TigerEnt, Royal Palm Beach, Florida.
Maryland environmental consulting firm. Apex Companies, LLC, 15850
Crabbs Branch Way, Suite 200, Rockville, Maryland 20855, has applied for
service and construction division membership. Travis Black is division
manager for the firm, which was established in 1988. The company provides
environmental consulting, engineering and construction. Sponsored for PEI
membership by Galen C. Heaps, PetroSupMD, Elkridge, Maryland.
www.apexcos.com
California contractor. AVA Environmental Inc., 829 W. Compton Blvd.,
Compton, California 90220, has applied for service and construction division
membership. Antonio Verduzco is president of the firm, which was established
in 2006. The company provides installation and removal of underground
storage tanks, fuel lines and dispensers. Sponsored for PEI membership by
Don Petroni, PtrMktgEqp, Placentia, California. |
