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Dear PEI Member:

As expected, the U.S. Environmental Protection Agency (EPA) issued a final rule May 30 granting E15 a 1-pound summertime Reid Vapor Pressure (RVP) waiver. The move makes it legal for marketers throughout the U.S. to sell E15 year-round.

But developments in the courts and the marketplace during the past few days suggest the future of E15 remains unclear.

Litigation. Within hours after publication of the rule in the Federal Register, the American Fuel & Petrochemical Manufacturers (AFPM) filed suit in federal court to block the waiver. AFPM President and CEO Chet Thompson explained that in AFPM’s view, the “plain language of the Clean Air Act does not authorize an RVP waiver expansion beyond E10. Nothing has changed — a waiver for E15 is unlawful, plain and simple.”

Anticipating such a response, the EPA included in the final rule a statement that it was “adopting a new statutory interpretation” of the Clean Air Act based on its conclusion that E15 is “substantially similar” to E10 when used in 2001 and newer model year light-duty vehicles. The agency further noted that the “conditions that led us to provide the original 1-psi waiver for E10 in 1990 are equally applicable to E15 today.”

Ethanol advocate Growth Energy filed a motion June 12 to intervene in the AFPM litigation in order to support the EPA rule. “[T]he law is on our side,” said Emily Skor, CEO of Growth Energy. “We know — and the EPA has said — the agency has clear authority to implement the law through appropriate regulations. A move toward cleaner fuels is exactly what Congress intended under the Clean Air Act.”

Geoff Cooper, CEO of the Renewable Fuels Association (RFA),  indicated his group also would seek to intervene. The RFA issued a statement saying, “EPA’s legal analysis is sound and is overwhelmingly supported by the public record and a plain reading of the statute. … AFPM’s desperate effort to have the court overturn President Trump’s E15 rule will fail and reflects a callous desire to protect market share at the expense of rural America.”

Ethanol Production. The U.S. Energy Information Administration reported ethanol production surged 5% to 1.096 million barrels a day immediately after the ruling. RFA predicted E15 usage will double to as much as 800 million gallons in 2019.

EPA Revises Leak Detection Protocols

PEI SafetyLetter Now Available in Spanish

Deadline for PEI Board Candidates

Respond to this Newsletter

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

or join the discussion in the Petroleum Equipment Forums

Retailer Responses. The National Association of Convenience Stores (NACS), the Society of Independent Gasoline Marketers of America (SIGMA) and NATSO, the national association representing truck stops and travel plazas, gave lukewarm assent to the EPA action, affirming in a joint statement that they “do not object” to the new rule. The Petroleum Marketers Association of America (PMAA), however, remains concerned that E15 is not sufficiently compatible with underground storage tank (UST) system materials.

Individual fuel marketer response was muted, with just two E15 developments of note after the EPA’s rule. Casey’s General Stores said June 3 it would add E15 at more than 60 stores this summer, as part of a previously announced plan to sell E15 at up to 500 Casey’s locations over time. Nuvu Fuels, a two-location retail operation in Michigan, said E15, rather than E10, will now be its primary unleaded fuel.

Our take: The E15 waiver is a big step. E15 availability and sales will see incremental growth during the next year, as major retailers introduce the fuel at new sites and other strategic locations. But the higher-level blend is a long way from making major inroads into the nation’s vehicle fuel supply.

EPA REVISES LEAK DETECTION TEST PROCEDURES
The EPA revised its 1990 leak detection evaluation protocols to better address technological developments over the past 29 years and ensure compliance with the 2015 federal UST regulations.

According to a notice from the EPA’s Office of Underground Storage Tanks (OUST), existing release detection equipment that was evaluated using the 1990 protocols and listed by the National Work Group on Leak Detection Evaluations (NWGLDE) does not need to be re-evaluated and relisted. The 2019 protocols must be used for new equipment and for equipment modifications for which the manufacturer desires re-evaluation. Details and background on the new protocols can be found here.

PEI SAFETYLETTER NOW AVAILABLE IN SPANISH
PEI members now can read the SafetyLetter in Spanish. One of the most popular of all PEI member benefits, this monthly publication discusses actual safety incidents in forecourt, excavation, confined space and other common work settings. The newsletter then suggests corrective actions as recommended by the PEI Safety Committee.

The Spanish edition of the SafetyLetter — Boletín de Seguridad — is the first PEI resource specifically developed for Latin American members. The new edition also should help Spanish-speaking employees in U.S. member companies deepen their safety knowledge.

To receive the Boletín de Seguridad del PEI or sign up personnel in your organization for the monthly Spanish edition, complete this short form.

PEI BOARD OF DIRECTORS CANDIDATE DEADLINE IS TODAY
PEI is conducting elections for the odd-numbered membership districts and the Service & Construction division this summer. (For a map of the states in each PEI distributor member district, click here.)

Official representatives or duly appointed alternates who wish to run for the board must submit an application to put their names on the ballot. The deadline for requests to be put on the ballot is today, June 19.

To learn more about serving on the board of directors, visit www.pei.org/election.

To submit your request to be on the ballot, complete this form by midnight tonight.

FROM THE STATES
California. The EPA and the California Water Resources Control Board released the state’s 2018 UST Leak Prevention Report. The report identified a total of 64 new releases, but only three new petroleum releases. UST owners and operators took an average of 64 days to get nonconforming UST systems back in compliance. Some 2,849 USTs at 1,174 facilities will require upgrade or permanent closure by Dec. 31, 2025. Download the complete report here.
Colorado. In response to reports that UST owners are having difficulty scheduling spill bucket repairs, the Colorado Division of Oil and Public Safety (OPS) will allow up to 15 days after a failed spill bucket test for a tank owner to complete the necessary repair or replacement. If repair or replacement cannot be made in 15 days, fuel deliveries to the site will be prohibited.
Colorado. Gov. Jared Polis signed legislation May 31 to allow Colorado’s two investor-owned utilities to own and operate electric vehicle (EV) charging stations.
New Jersey. Gov. Phil Murphy launched the New Jersey Partnership to Plug-In program, an initiative of the state’s Board of Public Utilities, Department of Environmental Protection and the Economic Development Authority to build the infrastructure to support 330,000 EVs in the state by 2025.
New Jersey/New York. The U.S. Department of Justice and the EPA filed a complaint in federal court alleging that Genesis Petroleum Inc. and other related companies violated environmental requirements for 38 USTs at 13 gas stations in Long Island and New Jersey.

PEI MEMBER NEWS
Domino Equipment relocated its Oklahoma City headquarters to a larger facility at 8130 W. Reno, Oklahoma City, OK 73127.
Island Pump & Tank Corp. opened two new branches. Jason Lastomirsky will lead a new branch in North Haven, Connecticut. Chuck Pedano will direct a new Eagleville, Pennsylvania, branch.
Leighton O’Brien named Chris Cooper global president of the company’s Field Technologies business unit. Cooper’s more than 12 years of experience include key leadership roles at Dover Corp. and Gilbarco Veeder Root. Leighton O’Brien also appointed Neil Thomas to the company’s board of directors. Thomas has more than 30 years’ industry experience, including nearly 15 years as CEO of Wayne Fueling Systems.
Morrison Bros. Co. named Mike Lattner director of business development. Lattner joined the company as a product engineer in 1985. He became Morrison’s chief engineer in 1990 and since then has occupied various company leadership roles.
Oklahoma Environmental Services (OES) celebrated its upcoming move to a new campus at 2424 N Kelley Blvd., Oklahoma City, OK 73111, with a May 2 ribbon-cutting and groundbreaking ceremony.
Oscar W. Larson Co. named Matt Koziel branch manager of the company’s Toledo/Perrysburg, Ohio office. Koziel brings more than 25 years of sales and project management experience to his new role.
PumpTex Inc. and United Pump & Controls signed agreements with Canary Compliance, under which the companies will offer their customers Canary Compliance’s data-driven remote tank monitoring system for USTs.
Titan Chemical Transfer Solutions (Titan CTS) and Blue1 Energy Equipment (Blue1), have merged their businesses. Titan CTS CEO Mark Daniels will serve as CEO of the combined operation. DEF systems and solutions will be marketed under the Blue1 brand. Titan’s pump lines and other components will continue to be marketed under the Titan brand.
UST Training signed reselling agreements for the company’s online Class A/B and C UST operator training courses with the Florida Petroleum Marketers Association, the New England Convenience Store and Energy Marketers Association, the Oregon Fuels Association, the Petroleum & Convenience Marketers of Alabama and the Convenience Marketers Association.

DEATHS
Ben Davisson, 83, of Owensboro, Kentucky, died June 12. Davisson served as general manager of Southern Petroleum Equipment Co. (Southern Tank and Manufacturing) from 1958 until his 1998 retirement. Survivors include Julia, his wife of 56 years; a son, Eric (Susan) Davisson; a daughter, Andrea (Brian) Johnson; and two grandsons, Alec and Adam Davisson.

MEMBERSHIP APPLICATIONS
Florida installation company. BARCOR Enterprises Inc., 1093 Freeboard Blvd., Pensacola, FL 32507, applied for service and construction membership. Robert Barr is president of the firm, which was established in 1995. BARCOR Enterprises installs UST and aboveground storage tank (AST) systems, and performs environmental site assessment and remediation. Sponsored for PEI membership by Kevin McKinney, McKinney Petroleum Equipment, Mobile, Alabama.

Ecuador distributor. Shyrispro y Servicios S. A. AV. America N37-17 y Naciones Unidas, Quito, 170510, Ecuador, applied for distributor membership. Gustavo Santamaria is head of sales for the company, which was established in 2014. Shyrispro y Servicios S.A. is an equipment distributor, consultant and contractor for commercial and retail gas stations. Sponsored for PEI membership by J. Gregory Hockman, Hockman-Lewis Ltd., West Orange, New Jersey.
www.shyrispro.com

Canadian contractor. Keller Construction, 11430 160 St. NW, Edmonton, Alberta, Canada T5M3Y7, applied for service and construction division membership. Ewen Campbell is human resources director for the company, which was established in 1962. Keller Construction does fueling system contracting, designing and construction. Sponsored for PEI membership by Tiina McCombie, National Energy Equipment Inc., Mississauga, Ontario, Canada.
www.keller.ab.ca

Malaysian distributor. Polyflo Sdn Bhd, No. 6, Jalan TSB 7, Taman Industri Sungai Buloh, Selangor, 47000, Malaysia, applied for distributor division membership. Wan Hisham Ismail is sales director for the company, which was established in 1989. Polyflo Sdn Bhd is a fueling solutions provider. Sponsored for PEI membership by Mike Chuah, Flexrite, Sdn. Bhd., Selangor DE, Malaysia.
www.polyflo.com.my

Puerto Rican service provider. JFM Services Corp., Urb. El Plantio G22, Toa Baja, Puerto Rico 00949, applied for service and construction division membership. Juan Mattei is president of the firm, which was established in 2009. JFM Services Corp. provides maintenance and construction services for gas stations. Sponsored for PEI membership by Ken Neeley, ESCO Manufacturing Inc., Tampa, Florida.
www.jfmservice.com

Arkansas software company. Gas Pos, 419 Main St., Suite 200, North Little Rock, Arkansas 72114, applied for affiliate division membership. Ernie Dye is sales manager for the firm, which was established in 2015. Gas Pos is a software-as-a-service solution that includes an EMV compliant point-of-sale system providing advanced payment security. Sponsored for PEI membership by Lonny M. Goodwin, Lonny M. Goodwin Co. Inc., Saratoga, Arkansas.
www.gaspos.co

Puerto Rican maintenance company. Caribbean Contracting Services, P.O. Box 367321, San Juan, Puerto Rico 00976, applied for service and construction division membership. Juan Perez is president of the firm, which was established in 2013. Caribbean Contracting Services provides UST and AST maintenance and construction services for gas stations. Sponsored for PEI membership by Paul Doyle, Petroleum Marine Construction, LLC, Oakland Park, Florida.

Idaho insurance nonprofit. Petroleum Storage Tank Fund, P.O. Box 83720, Boise, Idaho 83720, applied for affiliate division membership. David Wattles is claims examiner for the organization, which was established in 1990. Petroleum Storage Tank Fund is a state-created, not-for-profit insurance organization that provides coverage for approved petroleum cleanup costs and third-party claims resulting from covered accidental releases. Sponsored for PEI membership by Steve King, Leonard Petroleum Equipment of Boise LLC, Boise, Idaho.
www.idahopstf.org

Colorado compliance company. Storage Tank Technology Inc., 685 W. Gunnison Ave., Suite 102, Grand Junction, Colorado 81501, applied for service and construction division membership. Brett Redd is president of the firm, which was established in 1987. Storage Tank Technology Inc. performs compliance inspections, compliance management, environmental testing and remediation services. Sponsored for PEI membership by Craig Hoyer, Kubat Equipment & Service Co., Denver, Colorado.
www.sttienviro.com

Illinois solutions provider. Sevan Multi-Site Solutions, 3025 Highland Parkway, Suite 850, Downers Grove, Illinois 60515, applied for service and construction division membership. Matthew Baum is senior project manager for the company, which was established in 2011.  Sevan Multi-Site Solutions provides program management, fuel systems layout and design services, comprehensive construction services, fuel system installations, tank and line replacements, and tank top upgrades. Sponsored for PEI membership by Mark Pawuk, Empaco Equipment Corp., Richfield, Ohio.
www.sevansolutions.com

ADMITTED TO PEI

• Pneumatic Components Ltd., Sheffield, Wyoming (manufacturer)
• Newtoil S. A., Alcala de Henares, Madrid (affiliate)
• Matt Thornhill, Cumberland Farms, Westborough, Massachusetts (operations and engineering)
• Jennifer Bunting, Southern States Cooperative Inc., Richmond, Virginia (operations and engineering)
• Bridgitt Ellis, FireKeepers Pit Stop, Battle Creek, Michigan (operations and engineering)
• Sunshine Hester Redmond, Walmart Stores Inc., Bentonville, Arkansas (operations and engineering)

© 2019
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

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.