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The past month brought plenty of opportunities to listen — at the 2019 PEI Convention at the NACS Show in Atlanta, at a fuels conference in Las Vegas and at the Association of State and Territorial Solid Waste Management Officials (ASTSWMO) annual conference in Washington, D.C. 

The members, regulators and other stakeholders I met on the road had lots of good ideas, but even better questions. Four themes, in particular, kept reappearing:

1.  “What’s next?”
This has been a terrific year for PEI members, and the good times likely will continue through 2020 and 2021, thanks to the upcoming forecourt EMV liability shift and state underground storage tank (UST) system compliance deadlines.

But what will keep members’ momentum going in 2022? I heard that question more than any other.

Even if the answer isn’t yet clear, keep asking the question. How can you turn the success of the past few years into a foundation for the next big thing, whatever it might be? As “the leading authority for fuel and fluid handling equipment,” PEI will support our members’ quest through this newsletter, the PEI Journal, conferences, education and other resources.

2.  “Will our state provide funds to help replace aging USTs?”
Aging USTs affect all PEI members involved with retail fueling systems. That’s why PEI’s convention session on aging USTs drew 500 attendees and PEI/RP1700: Recommended Practices for the Closure of Underground Storage Tank and Shop-Fabricated Aboveground Storage Tank Systems has become such an important industry resource.

Nevertheless, so far, state financial assistance for tank removals remains spotty. At this point, Colorado wins the gold medal for shifting the focus of its petroleum storage tank fund from cleanup to release prevention. Among other benefits, owners and operators replacing USTs in the Centennial State can receive grants of $1 per gallon of tank volume removed.

EV Environmental Effects

High-Octane Fuels

Tailpipe Emission Battles

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How can Colorado be that generous? Three reasons top the list: the state’s fund is healthy; the Department of Oil and Public Safety has excellent aging data for the state’s UST population; and the regulatory authorities have adopted a long-term perspective.

States without one or more of these characteristics might not be as generous.

3.  “Does whatever happens in Washington really matter?”
Gridlock is the new normal in Washington. On the campaign trail, “socialism” is no longer a dirty word, and proposals for government programs are getting bigger. It’s hard to predict what Washington will look like in a year or two.

But does it really matter?

Yes, it does. A fractured Congress might not do much. But executive action, regulatory rulemakings and guidance documents can do great harm or great good for individual businesses. You have to pay attention — and PEI will continue to report on the changes that could affect you.

4.  “Is E15 for real?”
The number of U.S. retail stations selling E15 is still small — about 2,000 or so.

But that number could grow soon. As vehicles become more fuel-efficient and liquid fuel volumes fall, E15 will be one way to meet the statutorily required Renewable Fuel Standard (RFS) volumes.

Other market factors also point toward greater adoption of the higher level ethanol blend. The EPA’s decision to allow year-round E15 sales is part of the calculus. Congress’ failure to renew the biodiesel tax credit negates that fuel’s price advantage. If automakers, as expected, move toward higher-compression engines, E15 could provide the higher octane those engines will need. Finally, two sources confirmed to PEI this week that the U.S. Department of Agriculture (USDA) is considering another round of grants for the blender pumps and infrastructure upgrades necessary to store, meter and sell E15.

Ask the right questions, and you just might find the right answers.

FUELS INSTITUTE REVIEWS EV ENVIRONMENTAL IMPACTS
“Supercharged: The Environmental Impact of Electric Vehicles,” a new literature review from the Fuels Institute, is available for free download. 

“Overall, the consensus from the literature is that while EVs produce zero tailpipe emissions, they are still a source of emissions due to the generation of electricity they consume, their production, disposal, recycling, etc.,” according to a Fuels Institute press release. “For example, one report noted that manufacturing an EV can generate up to two times more greenhouse gas (GHG) emissions than when manufacturing an ICE. However, reports also indicate that because a mid-size EV can emit up to 51% less GHG than a gasoline-powered mid-size vehicle, this manufacturing disadvantage might be overcome within 4,900 miles of travel.”

Download “Supercharged: The Environmental Impact of Electric Vehicles” at www.fuelsinstitute.org.

BRIEFLY NOTED
“Senator Chuck Schumer of New York, the Democratic leader, is preparing a $450 billion climate change initiative that aims to replace about a fifth of the nation’s traditional gasoline-powered vehicles with hybrid, electric or hydrogen fuel-cell cars and trucks in the next 10 years.” — The New York Times, Oct. 24, 2019
“Representatives Bill Flores (R-TX) and John Shimkus (R-IL) have introduced legislation that would require that all new cars and trucks be designed to run on high-octane fuels starting with model year 2023. The 21st Century Transportation Fuels Act (H.R. 4690) is virtually identical to a discussion draft released by the Congressmen last year.” — SIGMA Weekly Report, Oct. 25, 2019
“General Motors Co., Toyota Motor Corp. and Fiat Chrysler Automobiles NV plan to back President Donald Trump in a contentious battle with California officials over automobile emissions rules, splitting with major rivals including Ford Motor Co. … The Trump administration last year proposed to dramatically ease federal automobile greenhouse gas emission and fuel economy standards that had previously been coordinated with California.” — Bloomberg Environment, Oct. 29, 2019
“The Trump administration is backing away from a plan to freeze tailpipe-emissions targets for new vehicles through 2025 … . The administration is now considering requiring a 1.5% annual increase in fleetwide fuel efficiency, using an industry measure that takes both gas mileage and emissions reductions into account … . The target moves the number closer to the Obama-era rules calling for 5% gains but still provides auto makers with significant relief and would allow cars to emit more pollution.” — The Wall Street Journal, Oct. 31, 2019

PEI MEMBER NEWS
Accent Environmental Services Inc. added five PEI members as Dri-sump® Containment Tightness Test Associates: Crompco LLC, DDS Environmental Inc., Keystone Petroleum Equipment Ltd., Meco Inc. of Augusta and Professional Petroleum Service Co.
Dana Schmidt retired from STI/SPFA Nov. 1, after 21 years with the organization. Schmidt was instrumental in advancing the STI SP001 AST Inspection Standard, which many tank owners use to gain compliance with EPA SPCC regulations. She also was a long-time member of the PEI Aboveground Tank Overfill Prevention Committee.
Neumayer Equipment Co. hired Bill Hubbard and Eric Velasco to run the company’s new Imaging division.
Peiker/Piatchek Associates Inc. celebrated its 50th anniversary Nov. 1. The firm was founded by Ed Peiker, a former Texaco construction engineer, and Dick Piatchek, a regional sales manager for Whiteway Manufacturing. Peiker/Piatchek Associates represents petroleum equipment manufacturers to convenience stores and automotive dealerships.
Titan Cloud Software acquired JMM Global Oct. 25. Brentwood, Tennessee-based Titan Cloud Software provides solutions for environmental compliance, advanced fuel analytics and facility management. JMM Global, based in Elgin, Illinois, was founded by Jon Marinas in 2003.

MEMBERSHIP APPLICATIONS
Michigan trailer company. Integrity Trailers, 12409 Cleveland St., Nunica, MI 49448, applied for affiliate division membership. William Hogan owns the firm, which was established in 1985. Integrity Trailers builds custom trailers to individual customer specifications for unique industry applications. Sponsored for PEI membership by James Ether, R. M. Dalrymple Co., Inc., Saratoga Springs, New York.
www.integritytrailers.com

North Carolina service provider. Eastern Fuel Systems Inc., 133 Ketchie Dr., Mooresville, NC 28115, applied for service and construction division membership. Joseph Penney owns the company, which was established in September 2018. Eastern Fuel Systems Inc. provides service and installation services. Sponsored for PEI membership by Glen Corkill, Source North America, Addison, Illinois.

Florida service provider. GCM Transports SA, 222 Phoenetia Ave. Apt #8, Coral Gables, FL 33134, applied for service and construction division membership. Javier Sevilla is project manager for the firm, which was established in 2007. GCM Transports SA installs gasoline dispensers and provides complete maintenance services. Sponsored for PEI membership by John Ellsworth, John M. Ellsworth Co. Inc., Milwaukee, Wisconsin.

Massachusetts car wash POS manufacturer. Washify Services LLC, 1208 VFW Parkway, West Roxbury, MA 02132, applied for manufacturer division membership. Greg Snow is marketing manager for the company, which was established in 2012. Washify Services LLC manufactures integrated point-of-sale systems for car washes. The products are sold primarily through distributors. Sponsored for PEI membership by Carol Schram, PECO Carwash Systems, Auburn Hills, Michigan.
www.washify.com

Chinese manufacturer. Guangzhou Leared Automatic Equipment Co. Ltd., No. 235 Shinan Road, Dongyong Town, Nansha District, Guangzhou City, China, applied for manufacturer division membership. Catherine Liu is marketing director for the company, which was established in 2006. Guangzhou Leared Automatic Equipment Co. designs and manufactures fuel dispensers and accessories sold primarily through distributors. Sponsored for PEI membership by Wang Li, Zhejiang Jiasong Technology Co. Ltd., Wenzhou, China.
www.leared.com.cn

Oklahoma investment firm. Infinity Capital Partners, 1611 N. Broadway Ave., Oklahoma City, OK 73103, applied for affiliate division membership. Christopher Lee is managing partner of the firm, which was established in 2016. Infinity Capital Partners helps companies raise capital for growth or acquisitions, sell their businesses and restructure or refinance debt. Sponsored for PEI membership by Lyndell Thomas, Hooten Equipment Co., Springdale, Arkansas.
www.infinitycappartners.com

ADMITTED TO PEI

• Earl Arnold, Stinker Stores, Boise, Idaho (operations and engineering)
• Ted Augustine, Triplett Inc., Salina, Kansas (operations and engineering)
• Robert Godfrey, Rubis Engineering, St. George’s, Bermuda (operations and engineering)
• Tech Solutions, El Paso, Texas, (service and construction)
• Clean World Distribution, Valencia, California, (affiliate)
• Insepet S.A.S., Bogota, Cundinamarca, Colombia (affiliate)
• Armer/Norman & Associates, San Leandro, California (service and construction)
• B. P. S. Maintenance Service Co., Ltd., Prawet, Bangkok, Thailand (service and construction)
• NCSS, Cairo, Egypt (service and construction) Tech Solutions, El Paso, Texas, (service and construction)
• Third Party Testing, Camdenton, Missouri (service and construction)

© 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.