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Dear PEI Member:

The PEI Board of Directors met April 4-6, in Nashville, to review member surveys, approve committee reports, update the association’s strategic long-range plan and address other important matters. Here is a summary of the board’s key discussions and actions.

Net Promoter Score. For the first time, this year’s PEI member survey measured the association’s “net promoter score” (NPS). The NPS metric, which was introduced in a 2004 Harvard Business Review article, has been widely accepted by leading associations and businesses as a tool to gauge member (customer) loyalty. PEI’s net promoter score was 64.55. Under the NPS model, any score above 0 is considered “good” and scores from 50 to 69 are “excellent.”

Service & Construction Division Representation. PEI has 454 distributor members and 446 service & construction members. Under the association’s constitution, the board of directors has nine seats for distributors and one for service and construction companies. To better represent both groups on the board, PEI members will be asked at the annual membership meeting in October to approve constitutional amendments that would:

• allow both Distributor and Service & Construction members to run for the nine district board seats;
• eliminate the Service & Construction board position; and
• grant Service & Construction members the right to serve as officers.

PEI Recommended Practices. The board authorized PEI staff to create pass/fail criteria for PEI recommended practice exams and to formally recognize test-takers who pass the exams. The change will support emerging state efforts to require technicians and installers to pass PEI tests. (See Colorado news in “From the States” below.)

PEI Priority Club. For the last five years, PEI has had a waiting list of members interested in joining the Priority Club. In Nashville, directors approved a proposal to open the Priority Club to new members and restructure the program into three membership tiers, with different levels of benefits in each tier. Details on the new structure will be announced soon, and the changes will take effect with the 2020 membership year.

PEI Mid-Year Board of Directors Report

PEI Convention Registration and Housing Open

Update from Washington

News from the States

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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

Latin America. The board renewed its commitment to increase membership in Latin America and establish PEI as the recognized authority for fuel and fluid handling equipment in the region. The directors agreed that the hiring of marketing expert Liliana Cruz to direct the Latin America initiative will be central to the success of these efforts.

Service Tech Training and Recruitment. The board asked PEI staff to develop a toolkit to equip vo-tech schools and military training organizations with information and resources that will promote career opportunities for fueling equipment technicians.

Safety Committee. The board approved recommendations to develop four new Dos & Don’ts resources and three new safety posters; create a new-employee safety checklist; expand a planned video on confined space entry; and test webinars and podcasts as vehicles to deliver safety information to members.

Education & Convention Committee. Directors approved recommendations to schedule a Spring 2020 Purchasing & Inventory Managers Conference and evaluate how best to use webinars, videos, podcasts and alerts to deliver educational content to members.

In other actions, the board:

• accepted the minutes of the PEI Foundation Board of Governors and the Investment Committee;
• approved a $4,082,003 budget for the 2019-2020 fiscal year;
• authorized membership dues increases of up to 3% per year for the next five years as part of the annual budgeting process.

Charlie Burns, Oscar W. Larson Co., Clarkston, Michigan, presided at the mid-year meeting. Other officers, directors, co-directors and staff in attendance included:

• Robert Peavey, PumpTex Inc., Beaumont, TX (immediate past president)
• Bill Mascott, Mascott Equipment, Portland, OR (vice president)
• Steve Dixon, P.W. Hoidale Co., Wichita, KS (treasurer)
• Rick Long, PEI, Tulsa, OK (executive vice president)
• Tom Dion, Wildco PES, Bloomfield, CT (District 1)
• Wayne Henderson, Gas Station Supply, Lynchburg, VA (District 2)
• BJ Benton, United Pump and Controls, Suwanee, GA (District 3)
• Tom Fassas, PetroTowery Inc., Richmond, KY (District 4)
• Eric Scott, The Southern Co., Memphis, TN (District 5)
• Casey Kuppart, Mid-South Steel Products Inc., Cape Girardeau, MO (District 6)
• Mike Bakken, Valley Petroleum Equipment, Grand Forks, ND (District 7)
• John Keller, Petroleum Solutions Inc., San Antonio, TX (District 8)
• Ryan Rethmeier, Western Pump, San Diego, CA (District 9)
• James Ayers, Cim-Tek Filtration, Bement, IL (District 10)
• Tony White, Southern Tank and Manufacturing Inc., Owensboro, KY (District 11)
• Paola Bravo, S. Bravo Systems Inc., Commerce, CA (District 12)
• Brad Hoffman, Tanknology, Austin, TX (District 13)
• Liz Concannon, Petroleum Card Services, Minden, NV (Affiliate Division)
• Ben Stallings, Fatboy Electric, Kansas City, MO (Service & Construction Division)
• Sarah West, PEI, Tulsa, OK (education and convention director)
• Melinda Whitney, PEI, Tulsa, OK (director of operations)

REGISTER AND RESERVE HOUSING FOR THE 2019 PEI CONVENTION
Early bird registration and housing are now open for the 2019 PEI Convention, Oct. 1-4, in Atlanta. Attendee registration through May 29 is $295 (members) and $495 (nonmembers). Beginning May 30, the rates increase to $445 (members) and $645 (nonmembers). Companies registering five or more attendees before the early bird deadline receive additional group registration discounts.

The convention keynote speaker is Lt. Col. Rob “Waldo” Waldman. A graduate of the U.S. Air Force Academy, Waldo overcame massive claustrophobia and a fear of heights to become a decorated fighter pilot with 65 combat missions and 2,650 flight hours. He will show attendees how to win with integrity in highly competitive environments through disciplined training, dedicated teamwork and courageous leadership. (Oct. 2, $30 ticket)

WASHINGTON UPDATE
A bipartisan group of senators proposed a bill to extend and expand the electric vehicle (EV) tax credit. The existing $7,500 EV tax credit begins to phase out when an automaker sells 200,000 EVs. GM and Tesla already have hit that mark. The Driving America Forward Act would allow a $7,000 tax credit for an additional 400,000 vehicles from each manufacturer.

Legislation was introduced in the U.S. House and Senate to extend for two years the biodiesel tax credit, which expired at the end of 2018. According to the National Biodiesel Board, annual U.S. biodiesel production has grown from 100 million gallons to more than 2.6 billion gallons since the initial credit was enacted in 2005. NATSO, the American Trucking Associations, NACS and the Society of Independent Gasoline Marketers of America (SIGMA) have signaled support for the legislation.

The U.S. Environmental Protection Agency (EPA) is likely to modify its proposed freeze of vehicle fuel economy standards. Last August, the EPA and National Highway Traffic Safety Administration (NHTSA) proposed freezing new vehicle fuel economy requirements at 2020 levels for six years. On April 11, EPA Administrator Andrew Wheeler said, “Our final regulation is not going to be the same as our proposal. We’ve taken constructive comments, criticisms and concerns from a whole host of different interest groups.”

NEWS FROM THE STATES
Arizona. The Arizona Department of Environmental Quality (ADEQ) scheduled an April 25 public meeting to discuss the second draft of the state’s proposed underground storage tank (UST) regulations. Interested parties may participate in person, via webinar conference or by telephone.

Colorado. Effective January 1, 2020, every individual seeking Qualified Service Technician certification must submit an application showing that he/she passed the PEI Entry-Level Service Technician Training Course and the PEI/RP900 exam. Individuals applying for certification as UST installers will be required to pass the PEI/RP100 exam. For complete details, click here.

Kentucky and South Carolina. The EPA awarded $1,170,000 to Kentucky and $485,000 to South Carolina to help clean up and prevent contamination from leaking underground fuel storage tanks.

Wyoming. The Wyoming Department of Environmental Quality cited a convenience store and gas station that allegedly overfilled its underground gasoline storage tanks, causing the fuel to migrate into the nearby river. The notice of violation claims the store failed to make repairs that would have prevented overfilling.

DEATHS
David M. Rodrigues, 73, died March 17. Rodrigues founded Titan Rubber & Supply Co. in 1976, and remained as the company president until its 2001 sale to Petroleum Marketing Equipment. Survivors include wife Maria; son Michael; daughter-in-law Pamela Almeida; daughter Lesley Moore; son-in-law Andrew Moore; and grandchildren, Charles, Elizabeth and Mason.

MEMBER NEWS
D&H United Fueling Solutions hired Bill Reichhold as its vice president for growth strategy. Reichhold has more than 30 years of industry experience, most recently as Wayne’s vice president of North America. 
Jones & Frank named David Whittington the company’s CFO, effective March 4. Most recently, Whittington was vice president of finance and IT for the Purolator Advanced Filtration Group and a business unit manager for the Industrial Process division at Parker Hannifin.
Leighton O’Brien expanded its global fuel cleaning operations into Southeast Asia through a licensed service partnership agreement with Flowco Malaysia. Flowco Malaysia’s suite of Leighton O’Brien technologies will include integrity testing, tank cleaning and fuel restoration.
Tanknology formed a new Fuel and Tank Quality Services division to address the growing demand for cleaning diesel tanks and filtering diesel fuel in the U.S.

MEMBERSHIP APPLICATIONS
Wisconsin contractor. Haydin Electrical Services, 7436 Aurora Rd., West Bend, WI 53090, applied for service and construction division membership. Nathan Haydin is president of the company, which was established in 2008. Haydin Electrical Services is an electrical contractor engaged in the construction, maintenance and service of commercial and retail fueling stations. Sponsored for PEI membership by Steven Ettl, Badger Oil Equipment Co. Inc., Milwaukee, Wisconsin.

Mexican manufacturer representative. ESM Fuel Solutions SA DE CV, Blvd Las Pilas 80, Parque Pyme100, Carr Fed 45 KM 8, Morelos, Zacatecas 98100, Mexico, applied for affiliate division membership. Jorge Gaitan is director of the firm, which was established in 2017. ESM Fuel Solutions is a manufacturer representative for transport and refueling tanks in Mexico. Sponsored for PEI membership by Giulio Guastalli, Emiliana Serbatoi SRL, Campogalliano, Italy.
www.eserbatoi.com.mx

Oklahoma installation company. Image Builders, P.O. Box 1602, Owasso, OK 74055, applied for service and construction division membership. Ryan Neurohr is CEO of the firm, which was established in 1995. Image Builders specializes in image design, installation, electrical service and analysis, LED lighting and signage. Sponsored for PEI membership by Barry Brodersen, Domino Equipment Company, Oklahoma City, Oklahoma.
www.imagebuilders.info

Georgia service provider. Admiral Enterprise Solutions, 821 Livingston Court SE, Ste A, Marietta, GA 30067, applied for service and construction division membership. Sean Graham is CEO of the company, which was established in 2017. Admiral Enterprise Solutions is a total solution provider of convenience fuel retail technology, including the sale, installation and service of dispensers, tank monitoring equipment, point-of-sale systems, peripherals and all related electronic technology. Sponsored for PEI membership by Mike Vegeais, Freedom Electronics LLC, Kennesaw, Georgia.

Chinese affiliate. Sino Polymer Co. Ltd., No. 4600 Long Wu Road, Shanghai 200241, China, applied for affiliate division membership. David Wong is representative of the firm, which was established in 1981. Sino Polymer Co. Ltd. is an anti-corrosion lining system provider. Sponsored for PEI membership by Wayne Geyer, STI/SPFA, Lake Zurich, Illinois.

California manufacturer representative. CalTech Industrial Corporation, 16 Technology Drive, Suite 128, Irvine, CA 92618, applied for affiliate division membership. Michael Dale Miller is CFO of the company, which was established in April 2018. CalTech Industrial Corporation is a manufacturer representative operating in southern California. Sponsored for PEI membership by Christopher Fasse, B & T Service Station Contractors, Nipomo, California.
www.caltechindustrial.com

ADMITTED TO PEI

• Pyrus Petro Service, Weedsport, New York (service & construction*)
  *previously published in the distributor division

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Petroleum Equipment Institute
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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.