June29, 2018 | Vol. 68, No. 12

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Dear PEI Member:

Pressure is building on the U.S. Environmental Protection Agency (EPA) to delay the deadline for initial compliance testing of sumps, spill buckets and overfill prevention devices.

Currently, owners and operators in the 16 states and territories that have adopted the 2015 federal underground storage tank (UST) regulations must complete an initial compliance test on sumps, spill buckets and overfill prevention devices by Oct. 13, 2018. Compliance deadlines in State Program Approval (SPA) states vary, depending on when the state revises its UST rules. In some cases, owners and operators in these jurisdictions have until Oct. 13, 2021, to conduct their initial tests.

Last December, however, the Petroleum Marketers Association of America (PMAA) asked the EPA to extend the last possible deadline for the initial compliance tests to Oct. 13, 2024. (See Dec. 20, 2017 TL.)

Then, earlier this month, 20 members of the U.S. House of Representative and 25 U.S. Senators added their voices to the effort, with letters asking EPA Administrator Scott Pruitt to defer the sump, spill bucket and overfill prevention testing deadline to Oct. 13, 2024.

And last week, the National Association of Convenience Stores (NACS), the National Association of Truck Stop Operators (NATSO) and the Food Marketing Institute (FMI) joined PMAA in yet another request for a delay until Oct. 13, 2024. The trade groups’ letter stated, “Our members are concerned that there are far too few qualified contractors available to install the upgraded equipment mandated under the final rule.”

As explained in the Dec. 20, 2017 TulsaLetter, the EPA may respond to these requests in one of three ways.

First, the EPA could choose to do nothing, in which case the existing deadline will stand.

PMAA, NACS, NATSO, FMI Request Testing Delay

EPA Proposes New Renewable Fuel Volumes

Texas Proposes Changes to Fuel Quality Program

EPA Approves Isobutanol Registration

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

Second, the EPA could extend the deadline through a fast-track process known as a “direct final rule.” Designed for non-controversial matters, a direct final rule would automatically take effect unless the EPA received any objections from the public during a short comment period.

The third option would be a formal rulemaking involving notice, a public hearing and public comments. Such a process likely could not be completed before the Oct. 13 deadline.

It’s hard to predict what, if anything, will come of these efforts. As we said last December when PMAA made its initial request, “we’ll see.”

EPA PROPOSES NEW RENEWABLE FUEL VOLUMES
On June 26, the EPA proposed renewable fuel volume requirements for 2019 under the Renewable Fuel Standard (RFS). Under the proposal, conventional (corn-based) ethanol volume for 2019 would remain at the statutorily mandated 15 billion gallons, advanced biofuel requirements would increase from 4.29 billion gallons to 4.88 billion gallons and cellulosic biofuel would rise from 288 million gallons to 381 million gallons.

The EPA also proposed a biomass-based diesel volume of 2.43 billion gallons for 2020, a 330 million gallon increase from the 2.1 billion gallons mandated for 2019.

The complete EPA proposal can be found here. Parties wishing to comment on the proposal must do so by August 17.

TEXAS MODIFYING FUEL QUALITY PROGRAM
The Texas Department of Agriculture (TDA) is preparing to modify two key implementation procedures for the state’s fuel quality program, which was signed into law June 15, 2017. (See July 6, 2017 TL.)

First, TDA has begun random fuel testing at retail locations throughout the state. Retailers selected for the program receive fuel sampling kits from TDA. The sampling must be conducted by a Texas-licensed service company, and the retailer bears the costs of the test, including shipping the sample back to TDA.

Second, TDA has proposed reducing the time retailers have to respond to fuel quality complaints from five days to 24 hours. Operators would be required to keep the fuel subject to a complaint in the tank until testing is completed.

In a June 14 letter to its members, the Texas Food & Fuel Association (TFFA) signaled its opposition to both changes and stated its intention to work with the Texas legislature on less expensive and more practical alternatives.

EPA APPROVES ISOBUTANOL REGISTRATION
On June 12, the EPA granted the request of Butamax Advanced Biofuels LLC to register isobutanol as a gasoline additive in concentrations up to 16 percent. The decision comes after a March 29 EPA Request for Information, which produced 2,150 public comments on Butamax’s application.

The registration affirms EPA’s preliminary conclusion that blending isobutanol into gasoline will not negatively affect health, safety, the environment or the operation of gasoline-fueled vehicles and engines.

Butamax, a joint venture of BP and Dupont, is the first large gasoline provider to receive approval for blending isobutanol into gasoline.

2019 PEI SERVICE & CONSTRUCTION MANAGERS CONFERENCE
PEI will present a Service & Construction Managers Conference in the spring of 2019. Every aspect of the conference, which will combine general session presentations, networking and roundtable discussions, will address the unique needs of service and construction management professionals.

If you are interested in serving on the conference planning committee, contact Bob Young, PEI’s director of industry relations, at byoung@pei.org by Friday, July 13. Planning committee meetings will be held via conference calls. Committee members will be expected to register for and attend the conference.

PEI MEMBER NEWS
Matrix Capital Markets Group Inc. made three personnel announcements. Robbie A. Nickle, who joined Matrix in 2016 as a senior analyst in the firm’s Consumer & Industrial Products group, was promoted to associate. Martin C. P. McElroy, Jr., CFA was named senior analyst in Matrix’s Downstream Energy & Convenience Retail group. McElroy was previously an analyst in the firm’s Consumer & Industrial Products group. John R. Mosser was hired as analyst for the Consumer & Industrial Products group.

S. Bravo Systems Inc. retained Boston McDermott as its representative in Alaska and Hawaii. With the new coverage in these two states, Bravo now has on-demand, localized customer support in all 50 states.

SPATCO Energy Solutions acquired the assets of Performance Oil Equipment Inc., a Mississippi-based supplier of petroleum equipment and services. Jimmy Ratcliff, formerly president of Performance Oil Equipment, will remain with SPATCO as installation manager. Wayne Parish, Performance Oil Equipment’s former vice president, will become service manager. The acquisition is SPATCO’s 10th expansion in three years.

Tanknology Inc. promoted Jason Bloch to vice president of its Inspection Services division, which includes the Periodic Visual Inspection, Aboveground Storage Tank Inspection and Compliance Management groups. For the past five years, Bloch has managed the Periodic Visual Inspection group.

BRIEFLY NOTED
“UPS is investing $130 million to build five new compressed natural gas (CNG) fueling stations and add more than 700 new CNG vehicles to its fleet, the company announced Tuesday.” — Oil Express Alert, June 19, 2018
“British Petroleum has been forced out of a US$1.3 billion deal to acquire Woolworths’ petrol stations and convenience stores in Australia after competition regulators blocked the plan, arguing fuel prices would raise. … The acquisition of Woolworths’ 533-site network in Australia would have been BP’s largest downstream acquisition in more than a decade.”—PetrolPlaza, June 22, 2018
“California and eight other states announced a plan Wednesday to promote electric vehicle sales. The plan lists 80 steps that automakers, dealers, utilities, government officials and charging and fueling companies should take between 2018 to 2021 to boost adoption of zero-emission vehicles, mainly electric vehicles but also plug-in hybrid and hydrogen fuel-cell vehicles.”—Washington Examiner, June 20, 2018

DEATHS
Richard “Dick” Morgan, 76, former president of Collins Equipment Corp. in Cleveland, Ohio, died June 15. Morgan served multiple terms on the PEI Board of Directors and was a founding member of the Ohio Petroleum Contractors Association. He is survived by his wife of 54 years, June Collins Morgan; sons, Patrick, Timothy and John; siblings David, Douglas, Tom and Bill; and grandchildren, Charlie, Teddy, Clara, Julia, Lydia, Dagny and Collins.

Kenneth J. Hayden, 62, died June 15. Hayden was a founding partner of Northeastern Petroleum Technologies in Schenectady, New York, and a former member of the PEI Board of Directors. Hayden was predeceased by his first wife, Terry Coppola. He is survived by his wife, Christi (Grasso) Hayden; son, Dylan; stepchildren, Nicholas Nelson and Annie Nelson; and siblings, Kathleen Miller, David Hayden and Melissa Johnson.

MEMBERSHIP APPLICATIONS
Louisiana environmental company. Leaaf Environmental LLC, 812 Rupp Street, Gretna, LA 70053, has applied for affiliate division membership. Jesse Hoppes is geologist/member for the firm, which was established in 2005. Leaaf Environmental conducts UST closures, environmental site checks and compliance work at UST sites located primarily in Louisiana. Sponsored for PEI membership by Alex Ralston, Petcon, Inc., Jackson, Mississippi.
www.leaaf.com

Kansas pump manufacturer. Goldfinch Pumps, 5350 College Blvd., Overland Park, KS 66211, has applied for affiliate division membership. Michelle Dias is director of marketing and sales for the firm, which was established in 2015. Goldfinch Pumps manufactures a variety of commercial and municipal pumps and valves. Sponsored for PEI membership by John Moore, Banks & Co., Fresno, California.
www.goldfinchpumps.com

Missouri construction company. HMR Enterprises LLC dba FuelWurks, 6413 N. State Route 9, Parkville, MO 64152, has applied for service and construction division membership. Adam Jackson is owner of the firm, which was established in 2012. The company does service and construction work for fueling stations. Sponsored for PEI membership by Chris Monroe, Monroe & Monroe Insurance, Arlington, Texas.

Ohio manufacturing company. Innoplast, 10120 Gottschalk Parkway, Chagrin Falls, OH 44023, has applied for manufacturer division membership. Brooke Long is sales and marketing manager for the company, which was established in 2006. Innoplast manufactures products for vehicle, facility and fuel pump protection, which are sold through distributors. Sponsored for PEI membership by Joseph A. Zulewski, Universal Valve Co., Inc., Elizabeth, New Jersey.
www.innoplast.com

Canadian construction company. Cornerstone Petroleum Equipment Ltd., 5 Boulder Blvd., Stony Plain, AB, T7Z 1V6, Canada, has applied for service and construction division membership. Doug Morrison is owner of the firm, which was established in 2016. Cornerstone Petroleum Equipment specializes in fuel control and inventory management systems and also designs and builds fueling facilities. Sponsored for PEI membership by Paul Nelson, R & D Marketing, Inc., Duvall, Washington.
www.cornerstonepe.ca

Ireland distributor. TSG Ireland, Unit L1, Baldonnell Business Park, Baldonnell, Dublin 22, D22 H295, Ireland, has applied for distributor division membership. Paul Farren is general manager for the company, which was established in 1997. TSG Ireland supplies, installs and maintains fuel tanks, piping, dispensers, level gauges and forecourt control equipment, including point of sale (POS) and payment systems. Sponsored for PEI membership by Bill Reichhold, Dover Fueling Solutions, Austin, Texas.

Argentina software company. Aoniken Servicios IT S.A., Saavedra 39 7 B, Bahia Blanca, Buenos Aires, B8000DDA, Argentina, has applied for affiliate division membership. Marcelo Daniel Janez is president of the firm, which was established in 2005. Aoniken Servicios IT S.A. develops software for front office, back office and POS applications. Sponsored for PEI membership by Sergio Navarro, Lihue Ingenieria S. A., Buenos Aires, Argentina.
www.grupoaoniken.com

ADMITTED TO PEI

Shure Manufacturing, Washington, Missouri (manf)
James Osborne, Love’s Travel Stops and Country Stores Inc., Oklahoma City, Oklahoma (o&e)

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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.