March 29, 2018 | Vol. 68, No. 6

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Dear PEI Member:

The TulsaLetter first discussed on-demand vehicle fueling services in early 2016 (see Feb. 3, 2016, TL). Consumers who use this new fueling option don’t drive to their local convenience stores to fill up; they order fuel through an app on their mobile devices, and the fuel is delivered to their parked vehicles.

At the time of that first article, only a handful of on-demand fueling start-ups—almost all in California—were operating. Code and regulatory authorities were just beginning to consider the safety and environmental issues inherent with on-demand fueling. And even the apps through which consumers placed their orders were essentially in beta mode.

Two years later, on-demand fueling is for real.

Several of the early start-ups are today well-capitalized, well-managed, growing ventures. Silicon Valley-based Yoshi, for example, offers basic vehicle maintenance in addition to fuel and has expanded to Austin, Nashville, Atlanta and Chicago. With $13 million in new funding from ExxonMobil, General Motors and other investors (including NBA superstar Kevin Durant), Yoshi intends to enter many more markets later this year.

San Francisco-based Filld added service in Seattle earlier this month. Booster Fuels is using $9 million to pursue corporate clientele and expand into the Pacific Northwest.

On the regulatory front, the 2018 edition of the Code for Motor Fuel Dispensing Facilities and Repair Garages (NFPA 30A) has a new Chapter 14 (“On-Demand Mobile Fueling”) with requirements for mobile fueling vehicles, equipment and operations, including:

On-demand mobile fueling operations must be approved by the local authority having jurisdiction (AHJ).
The AHJ may require a safety and emergency response plan for any location where mobile fueling will be conducted.
The fuel delivery vehicle must use only listed metal safety containers or chassis-mounted fuel tanks with a total capacity of no more than 1,200 gallons.
Fuel delivery vehicle personnel must receive operator, safety and emergency training.
Mobile fueling may not take place within 25 feet of buildings, property lines or combustible storage.
A storm drain cover or equivalent is required when mobile fueling occurs within 25 feet of a storm drain.
Mobile fueling and delivery vehicle parking are prohibited in buildings, parking structures and on public streets.
Dispensing hose assemblies must be listed, and the hose length may not exceed 50 feet.
The fueling nozzle must be a listed, automatic-closing type with a latch-open device.
The delivery vehicle must include a listed fuel shutoff switch and shutoff valve assembly.

On-Demand Fueling Update

Spending Bill Preserves EPA UST Funding

EPA Prepares to Weaken Fuel Economy Standards

Early Bird Ends April 15 for Purchasing & Inventory Managers Conference

Respond to this Newsletter

by e-mail to the editor, Rick Long at rlong@pei.org

or join the discussion in the Petroleum Equipment Forum

The latest edition of the International Fire Code includes Chapter 57 (“Mobile Fueling Systems”), with requirements nearly identical to those in NFPA 30A.

But hurdles remain if on-demand mobile fueling is to move beyond its current niche. The National Conference on Weights and Measures (NCWM) is concerned about but has yet to address basic storage and metering requirements. States have been slow to adopt or adapt the national fire code provisions and, when they do act, state authorities are proceeding cautiously. Earlier this month, for example, legislation proposed in Connecticut to license on-demand mobile fueling providers failed to make it out of committee. The Connecticut Fire Marshals Association and the Connecticut Energy Marketers Association had opposed the bill on the grounds that the state should establish its mobile fueling fire and safety standards first.

Is on-demand mobile fueling moving forward? Yes, and it’s definitely a trend to monitor. But it’s a long way from being a widespread threat to traditional retail fueling facilities.

SPENDING BILL REJECTS PROPOSED EPA BUDGET CUTS
The omnibus federal spending bill signed into law March 23 by President Trump maintains U.S. Environmental Protection Agency (EPA) spending at its current $8 billion level. This includes $92 million for the Leaking Underground Storage Tank (LUST) fund, an amount equal to previous authorizations for that program.

EPA MOVES TO EASE FUEL ECONOMY STANDARDS
The EPA is expected to step back from federal fuel economy standards for model year 2022–2025 light-duty vehicles on or before an April 1 deadline. The current standards, which went into place in 2011, require automakers to reach a 54.5 mpg Corporate Average Fuel Economy (CAFE) level by the 2025 model year.

The most likely scenario appears to be a two-step process in which the EPA would declare by April 1 that the existing standards are “not appropriate,” and then open negotiations with automakers to set new standards sometime this summer.

If the EPA acts as expected, a confrontation with California and 12 other states that follow California’s emissions standards might quickly follow. Currently, automakers that satisfy EPA vehicle emission standards are “deemed to comply” with California’s requirements. However, if the federal standards are weakened, California might choose to revoke the “deemed to comply” rule and keep its tougher standards in place. The result would leave automakers with a confusing patchwork of emission requirements across the country.

EARLY BIRD RATES END APRIL 15 FOR PURCHASING & INVENTORY CONFERENCE
You can save at least $100 if you register by April 15 for the 2018 PEI Purchasing & Inventory Managers Conference, June 7–9, at the Doubletree by Hilton Orlando at Seaworld.

Attendees will participate in roundtable discussions on topics of their choosing. In addition, Jason Bader, president of The Distribution Team, will direct three general sessions:

“Turning Buyers Into Investors”
“Finding the Balance: Inventory Turns and Customer Service”
“Gross Sales Is for Vanity; Profit Is for Sanity”

To learn more, register and book your hotel room, click here.

Confirmed conference sponsors are Cim-Tek Filtration; Davisware Inc.; ESCO Services Inc.; Freedom Electronics Inc.; Husky Corp.; Morrison Bros. Co.; Performance Ink Inc.; PMP Corp.; RDM Industrial Electronics; and Universal Valve Co. If your company would like to sponsor the conference, contact Bob Young at byoung@pei.org or 918-236-3966.

SHELL ADDS CHASE MOBILE PAY
Consumers can now purchase fuel at more than 10,000 Shell-branded retail locations through Chase Bank’s Chase Pay app. When pulling up to a dispenser, the customer enters the dispenser number into the app and immediately receives a three-digit code. Punching in the code on the dispenser’s keypad authorizes fueling and charges the transaction amount to the customer’s Chase bankcard.

PEI MEMBER NEWS
BJM Pumps announced the retirement of Ron Woodward from his full-time role as president. Woodward, who has spent 45 years in the industry, will continue to assist BJM part-time. BJM’s management team will now report to Brian Comiskey, who joined the company as chief operating officer last December.
Dover Corp., the parent of several PEI member companies, announced the retirement of its president and CEO, Robert A. Livingston. He will be succeeded by Richard J. Tobin, former CEO of CNH Industrial N.V. and a member of Dover's board of directors. Tobin has more than 30 years of experience in international management, finance and leadership.
Guardian Fueling Technologies has acquired SouthEastern Petroleum Systems (SEPS) in Charlotte, North Carolina. The acquisition adds to Guardian’s footprint in the Carolinas and grows the total number of full-service Guardian branch offices to 13 across five states in the southeastern U.S.
SloanLED is expanding its operations in Mexico, and Central and South America, due in part to customer growth in the petroleum and retail signage market. As part of the expansion, SloanLED is partnering with Grupo Espinosa for local sales and distribution support.

BRIEFLY NOTED
“The Iowa Renewable Fuels Infrastructure Program awarded all remaining blender-pump grants for this year, running out of cash before a scheduled fourth round of disbursements. The program board awarded funds to 15 projects for retailers involving equipment installation that will allow customers to buy higher blends of ethanol and biodiesel. Some retailers were turned away.”—Business Record, March 28, 2018
“Arizona has suspended Uber's self-driving car tests in the state following a fatal crash involving one of the company's autonomous vehicles. Arizona Gov. Doug Ducey sent a letter Monday to Uber CEO Dara Khosrowshahi informing him of the decision. Just over a week ago, a self-driving Uber car struck and killed a pedestrian in Tempe, Arizona. It was the first fatal autonomous car accident.”—CNN Money, March 27, 2018
“When it comes to cashing in customer loyalty points, 39% of consumers prefer fuel savings where only 35% prefer cash-back on credit cards, according to a 2017 survey by Excentus-Ipsos, ‘The Road to Rewards 2017.’ For brands and retailers, this means that cents-per-gallon fuel savings are the currency most likely to increase frequency, customer interactions and new revenue opportunities.”—NACS Online, March 26, 2018

MEMBERSHIP APPLICATIONS
Ecuadorian import company. EAPetrol, Km. 11 Via a Samborondon Urb. Matices. Etapa, Aguamarina, Mz. 4 V. 13, Daule, Guayas 090602, Ecquador, has applied for affiliate division membership. Eithel Armando Teran is CEO of the firm, which was established in 2007. EAPetrol imports and markets parts and equipment for service stations. Sponsored for PEI membership by Doc Boehme, Bottom Line of MN Inc., Osakis, Minnesota.
www.eapetrol.com

Michigan service company. NAX Petroleum LLC, 1977 Hunters Creek Drive, Superior Township, MI 48198, has applied for service and construction division membership. Adam Cacioppo is owner of the firm, which was established in 2016. NAX Petroleum LLC specializes in sales, service and installation of petroleum equipment. Sponsored for PEI membership by Andy Mercer, R. W. Mercer Co., Jackson, Michigan.
www.naxpetroleum.com

Chinese manufacturer. China Baotai Science and Technology Co. Ltd., No. 1779, First Road, Binhai Industrial Park, Wenzhou Economic and Technological Development Zone, Wenzhou, Zhejiang, 325025, China, has applied for manufacturer division membership. Vicky Suen is sales manager for the firm, which was established in 2009. The company designs, manufactures and supports equipment for the petroleum station market. Sponsored for PEI membership by Brian Fedro, Great Plains Industries Inc., Wichita, Kansas.
www.chinanozzle.com

ADMITTED TO PEI

Pickett Equipment Co. Inc., Olive Branch, Mississippi (dist)
AssetWorks LLC, Wayne, Pennsylvania (aff)
GP2 Environmental, Cidra, Puerto Rico (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.