August 1, 2018 | Vol. 68, No. 15

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Dear PEI Member:

The U.S. Environmental Protection Agency (EPA) has denied requests by the Petroleum Marketers Association of America (PMAA), the National Association of Convenience Stores (NACS), the National Association of Truck Store Operators (NATSO), the Food Marketing Institute (FMI), 25 U.S. senators and 20 members of the U.S. House of Representatives to delay by six years the Oct. 13 federal deadline for initial testing of sumps, spill buckets and overfill prevention devices. (See June 29, 2018 TL).

The parties requesting the delay had questioned the feasibility of the testing and inspection requirements in the 2015 federal underground storage tank (UST) regulations and the availability of qualified contractors to complete the work before the deadline.

In its July 24 determination letters, the EPA said it had concluded a six-year extension of the deadline “could unintentionally do more harm than good.” The agency noted that the testing and inspection requirements in the 2015 regulations focus on the components most likely to leak or fail to detect a leak. The requested delay, therefore, “could result in releases not being identified and addressed for many years, which ultimately could result in unnecessary environmental damage and more expensive cleanup costs.”

Other factors mentioned by the EPA in support of its decision not to extend the deadline include:

Many owners, operators, service providers, testing companies and other contractors have based their business plans on the Oct. 13 deadline, so an extension at this late date would create major disruptions for these companies.
The final 2015 rule was the culmination of an eight-year rulemaking process that reflected numerous accommodations in response to industry input, including a simplified implementation schedule, reductions of the burden of walkthrough inspections and decreased requirements for periodic testing of tank secondary containment, among others.
In May 2017, the EPA made another accommodation by accepting a low-water sump test as an alternative to the approved hydrostatic testing method in PEI/RP1200: Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities.
The Oct. 13 federal deadline applies in only the 16 states and territories that have not received State Program Approval (SPA). Under the 2015 rule, SPA states can, if they so choose, extend their compliance deadlines for up to three additional years. The extended deadlines in these states will spread the burden on and reduce the demand for contractors at any one time.

EPA Declines to Extend UST Compliance Deadline

NCWM Annual Meeting Report

PEI Convention Sponsorships

Highway Trust Fund Overhaul Proposed

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

or join the discussion in the Petroleum Equipment Forum

The EPA closed its decision letters by encouraging tank owners not to wait until the last minute to arrange for testing and inspection. The agency also acknowledged that if the required tests and inspections uncover equipment failures that must be corrected, owners may require additional time to complete necessary repairs and upgrades. Accordingly, the EPA will consider the good faith efforts of diligent owners when deciding if and how to respond to a violation.

NCWM ANNUAL MEETING REPORT
The National Conference on Weights and Measures (NCWM) held its annual meeting July 15-19, in Tulsa, Oklahoma. During the four-day gathering, regulators and industry stakeholders discussed and voted on a number of topics related to the fuel handling equipment industry.

Retail Fuel Receipts. Voters at the annual meeting approved a proposal that all retail fuel receipts identify the dispenser “by either an alpha or numeric description.” A few regulators objected to the lack of an exception for facilities having only one dispenser, but the final vote approved the measure as written.

E15 Dispenser Labeling. Also approved was a measure to clarify labeling requirements on E15 dispensers. The cause of the confusion? Federal Trade Commission (FTC) guidelines consider E15 a flex fuel, while the EPA classifies it as a gasoline blend. The measure approved in Tulsa will require E15 dispenser labels to comply with both the FTC and EPA labeling guidelines.

Skimmers. The ongoing problem of credit card skimmers was a major topic of discussion in Tulsa. Weights and measures officials across the country are struggling with how best to deal with the growing number and complexity of skimming incidents. Although NCWM is considering various regulatory responses, training regulators to spot compromised dispensers and disable various types of skimmers is the most likely future action.

Uniform Fuels and Lubricants Table. A massive update to the Uniform Fuels and Lubricants Table in Handbook 130 added a definition for alternative fuels, resolved internal inconsistencies and made other changes necessary to align this reference tool with federal laws, regulations and other industry codes.

The 2019 NCWM interim meeting will be Jan. 13-16, 2019, in Charleston, South Carolina.

PEI CONVENTION SPONSORSHIP OPPORTUNITIES
If your company is looking for extra exposure at the 2018 PEI Convention (Oct. 7-10 in Las Vegas), consider one of PEI’s Convention Sponsorship opportunities. Open to any PEI member exhibiting in Las Vegas, 10 separate packages provide a range of affordable and effective ways to reach fuel and fluid handling decision-makers before and during the industry’s biggest event. Take a look at the complete menu of sponsorship opportunities. For additional information or to reserve your spot, contact Jennifer Lindsey at jlindsey@pei.org or 918-236-3964.

OVERHAUL OF HIGHWAY FUNDING PROPOSED
A July 23 proposal by Rep. Bill Shuster, chair of the House Transportation and Infrastructure Committee, would increase federal gasoline taxes by 15 cents and diesel taxes by 20 cents over a three-year period. The bill also would impose taxes on bicycle tires and electric vehicle (EV) batteries, and phase out fuel tax exemptions currently enjoyed by public motor coaches.

Notably, Shuster’s proposal would eliminate fuel taxes altogether in 2028. At that point, a “vehicle miles traveled tax” (VMT) would replace fuel taxes as the primary revenue source for the federal Highway Trust Fund.

Although several states have boosted their fuel taxes in recent years (eight states so far in 2018 alone), federal gasoline and diesel taxes have been static for the past 25 years. Even so, few observers expect immediate action on the politically risky proposal in this election year.

ARIZONA DEQ REQUESTS COMMENTS ON UST RULE FRAMEWORK
Following a May 15 stakeholder meeting and a June 15 low-level sump workgroup session, the Arizona Department of Environmental Quality (ADEQ) released for public comment a one-page document called “Underground Storage Tank Rulemaking--Guiding Principles and Features.”

Interested parties are invited to submit comments on the document to USTRule@azdeq.gov by Aug. 8. Stakeholder input on the guiding principles will assist ADEQ as it develops the state’s new UST rules.

PEI MEMBER NEWS
Matrix Capital Markets Group Inc. announced the sale of Vermont-based Champlain Oil Company Inc. and Coco Mart Inc. to Global Partners LP (NYSE: GLP). The acquired assets include 37 company-operated convenience stores selling fuel and 24 other owned or leased fuel sites, primarily in Vermont and New Hampshire.
Renewable Fuels Association hired Scott Richman as its chief economist. Most recently, Richman served as senior vice president and co-head of North America Consulting for Informa Agribusiness Consulting.
Tanknology Inc. promoted David Edens to operations manager for the Southeast region (Mississippi, Alabama, Georgia, Tennessee, South Carolina and North Carolina). Edens joined Tanknology in 2012 as a service technician. Since 2015, he has served as quality control manager for the Northeast region.
Titan Chemical Transfer Solutions (Titan-CTS) hired Phil Parker to help grow its commercial and retail markets. Parker has more than 40 years of industry experience. He also has served on the PEI board of directors and chaired PEI’s Vehicle Maintenance Fluids Equipment Committee (PEI/RP700).

BRIEFLY NOTED
“In the UK, the Department for Transport has opened a public consultation through September 16 seeking feedback on the proposal to boost ethanol blending to 10% from the current 5% mandate. The policy is in line with the European Union’s Renewable Energy Directive that requires 10% renewable energy consumption in transport by 2020.”—Biofuels Digest, July 23, 2018
“Reading-based UGI Utilities Inc. opened [a compressed natural gas fueling] station at its Bethlehem office on Monday. The station will provide fuel for the company's fleet of natural-gas powered vehicles, including dump trucks, vans and trucks, according to a UGI announcement. But UGI is hoping to expand the concept to about 12 stations along the Pennsylvania Turnpike over the next five or six years, the company said.”—Oil Express Alert, July 30, 2018
“Toyota is going big on fuel cells. Its latest effort expands on the Mirai sedan by converting semitrucks to hydrogen fuel-cell power. … The first truck covered 10,000 miles of zero-emissions driving throughout L.A. in a proof-of-concept operation in Toyota's Project Portal. … The new model, "Project Beta," has a range of 300 miles and leaves room for a small sleeper behind the cab without increasing the truck's wheelbase, Toyota says.”—Green Car Reports, July 31, 2018

MEMBERSHIP APPLICATIONS
New Zealand distributor. Clarksons, 226B Bush Road, Rosedale, North Shore, Auckland 0632, New Zealand, has applied for Distributor Division membership. Gary Fynn is general manager of the company, which was established in 1997. Clarksons provides supply and maintenance of fueling equipment for the retail, aviation and terminal sectors in New Zealand. Sponsored for PEI membership by Philip Mansfield, Mansfield Installations Ltd, New Zealand.
www.clarksons.co.nz

Alaskan manufacturer representative. duAlaska Inc., 6706 Greenwood, Anchorage, AK 99518, has applied for Affiliate Division membership. Ernest Dummann is president of the firm, which was established in 1959. duAlaska Inc. is a manufacturer representative of industrial heating equipment and controls. Sponsored for PEI membership by Ellis Smith, Ace Supply, Inc., dba Alaska Petroleum Equipment, Anchorage, Alaska.

Minnesotan car wash affiliate. XpresSystems Inc., 407 4th Ave. SW, New Prague, MN 55372, has applied for Affiliate Division membership. Sandi Gustafson is administrator for the company, which was established in 2006. XpresSystems Inc. manufactures RFID entry systems for car washes. Sponsored for PEI membership by Mark Tentis, PDQ Manufacturing, Inc., De Pere, Wisconsin.
www.xpreswash.com

Missouri service company. Show Me Petroleum Equipment Co., 3440 W. Division St., Suite G, Springfield, MO 65802, has applied for Service and Construction Division membership. Tony Wilson is owner of the company, which was established in 2016. Show Me Petroleum Equipment sells, services and installs fueling equipment, storage tanks and point-of-sale systems. Sponsored for PEI membership by Jodi Solomon, Seneca Companies, Des Moines, Iowa.

Oklahoma environmental service firm. Oklahoma Environmental Services, 4415 N. Classen Blvd., Oklahoma City, OK 73118, has applied for Service and Construction Division membership. Deanna Atkinson is president of the firm, which was established in 2002. Oklahoma Environmental Services offers environmental consulting, vacuum extraction, soil and groundwater sampling/remediation, real estate assessments, tank system testing, excavation, tank removal and compliance management audits. Sponsored for PEI membership by Alex Ralston, Petcon, Inc., Jackson, Mississippi.
www.oeservices.net

ADMITTED TO PEI

Leaaf Environmental LLC, Gretna, Louisiana (aff)
Goldfinch Pumps, Overland Park, Kansas (aff)
HMR Enterprises LLC dba FuelWurks, Parkville, Missouri, (s&c)
Innoplast, Chagrin Falls, Ohio (manf)
Cornerstone Petroleum Equipment Ltd., Stony Plain, Alberta, Canada (s&c)
TSG Ireland, Dublin, Ireland (dist)
Aoniken Servicios IT S.A., Buenos Aires, Argentina (aff)

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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.