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New U.S. Environmental Protection Agency (EPA) data shows that the 2015 federal underground storage tank (UST) regulations are doing their job. Compliance with key UST performance measures is climbing. However, the nation’s backlog of yet-to-be-cleaned-up UST sites remains high.

1. Compliance is up. The Semiannual 2021 Fiscal Year UST Performance Report (October 2020 – March 2021) shows impressive gains in compliance rates, as compared to the Semiannual 2020 Fiscal Year UST Performance Report (October 2019 – March 2020).

UST Compliance Rates Improve

Florida Tightens Anti-Skimming Requirements

DC Court Rules Against Year-Round E15 Sales

Oregon Approves E15

Thirteen More States May Adopt ZEV Mandates

PEI Seeks EVSE Initiative Volunteers 

Respond to this Newsletter

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

2. Active UST count declines. When the 2015 EPA regulations were issued, the U.S. had 569,340 operating USTs. The semiannual 2021 report shows that number has fallen to 540,329. C-store consolidation doubtless has played a role in the decline. Another factor is how fuel marketers are responding to the regulations. For some owners and operators, closing an aging UST system is a reasonable alternative to investing in costly testing, inspection and upgrades.
   
   PEI/RP1700: Recommended Practices for the Closure of Underground Storage Tank and Shop-Fabricated Aboveground Storage Tank Systems provides guidance for the safe removal and closure in place of these systems.
   
   
3. Cleanup backlog persists. The semiannual 2021 report shows 2,395 confirmed releases and 3,439 completed cleanups between October 2020 and March 2021. Nationwide, 63,048 cleanups have yet to be completed. That is down from 63,677 one year ago and 72,248 in 2015.

FLORIDA TIGHTENS ANTI-SKIMMING REQUIREMENTS
Florida fuel marketers will have to adopt at least two of seven approved anti-skimming measures by Jan. 1, 2022, under a bill signed into law June 16 by Gov. Ron DeSantis. The approved list of precautions includes:

1. Pressure-sensitive security tape on the dispenser cabinet opening
2. Controls that would make the pump’s metering or scanning devices inoperable if the cabinet is opened by an unauthorized person
3. Encryption of payment card information during card scanning
4. A physical locking mechanism that requires a unique access key
5. An alarm whenever there is an unauthorized opening of the cabinet
6. Documented daily dispenser inspections
7. A contactless POS payment system

Operators that fail to comply with the requirements may be subject to fines, prosecution and removal of their dispensers from service.

APPEALS COURT RULES AGAINST YEAR-ROUND E15 SALES
The U.S. Court of Appeals for the District of Columbia ruled July 2 that the EPA exceeded its statutory authority in 2019 when it allowed the year-round sale of E15 in most of the country. The unanimous opinion said that the Clean Air Act’s authorization of “blends containing gasoline and 10 percent denatured anhydrous ethanol” cannot fairly be construed to include blends with greater than 10% ethanol.

Writing for the court, Judge Judith Rogers said, “This understanding accords with the ordinary meaning of the word ‘contain’ used as a percentage. Consider a label that a bottle of wine ‘contains 10% alcohol by volume.’ No one would understand that number to be other than a literal statement of the actual amount of alcohol in a serving.”

Given its strict construction of the statute, the court also dismissed as moot biofuels groups’ argument that EPA should have authorized year-round sale of blends even higher than E15.

In a joint statement, Growth Energy, the Renewable Fuels Association and the National Corn Growers Association said, “We disagree with the court’s decision to reject EPA’s move to expand the RVP [Reid Vapor Pressure] waiver to include E15, a decision that could deprive American drivers of lower-carbon options at the pump and would result in more carbon in the atmosphere. … We are pursuing all available options and will work with the administration and our congressional champions to ensure that we have a solution in place before the 2022 driving season.”

OREGON ALLOWS E15 SALES
Oregon Gov. Kate Brown signed HB 3015, which provides that gasoline sold in the state must contain “at least” 10% ethanol. Previous state law had required gasoline to include “up to” 10% ethanol. The result is that Oregon marketers now may offer higher ethanol blends, including E15. The June 23 action leaves California and Montana as the only states that do not allow the sale of E15.

THIRTEEN MORE STATES CONSIDER ZEV MANDATES
Up to 13 more states might soon join California in prohibiting the future sale of new internal combustion-powered vehicles, according to the U.S. Department of Energy Vehicle Technologies Office.

Gov. Gavin Newsom’s June 23 executive order launched California’s 2035 zero emission vehicle (ZEV) mandate. Other states considering mandates include:

• Washington. The state legislature passed a 2030 ZEV mandate in March. Gov. Jay Inslee supported the mandate but vetoed the bill because it included a road usage fee he opposed.
• Massachusetts. A December 2020 interim state report has recommended ZEV-only sales by 2035.
• New York. Legislation mandating ZEV-only sales by 2030 was introduced last September.
• New Jersey. An October 2020 press release from Gov. Phil Murphy recommended ZEV-only sales by 2035.
• Colorado, Connecticut, Delaware, Maine, Maryland, Oregon, Pennsylvania, Rhode Island and Vermont. These nine states have pledged to follow California’s lead but not yet acted.

PEI SEEKS EVSE INITIATIVE VOLUNTEERS
PEI will soon begin work on several resources to support the safe design, installation and servicing of electric vehicle supply equipment (EVSE) at facilities that store, meter and dispense liquid fuel. Several of the resources will be developed in partnership with the Fuels Institute and NACS.

If you would like to be involved in these EV charging station initiatives, please send a brief summary of your expertise to Rick Long at rlong@pei.org by Friday, July 9. Areas of expertise could, for example, include permitting, utility requirements, spacing considerations, ground-up site design, safety and other essentials.

BRIEFLY NOTED
“Canoo, the electric vehicle startup that recently became a publicly traded company through a merger with a SPAC [special purpose acquisition company], plans to build a factory in Oklahoma that will employ up to 2,000 workers, newly appointed CEO Tony Aquila said Thursday during the company’s investor day presentation. The factory will be located on a 400-acre site in the MidAmerica Industrial Park in Pryor, Oklahoma about 45 minutes from Tulsa. The facility, which the company describes as a ‘mega microfactory’ will include a paint shop, body shop and general assembly plant and is expected to open in 2023.”—Techcrunch, June 17

“The push for electric vehicles, intense competition in the retail gasoline market and growing regulation of the fuel business threaten underground storage tank (UST) insurance through state tank funds, according to experts who spoke at a recent webinar for the Association of State and Territorial Solid Waste Management Officials. … If regulators were to adopt the expert recommendations from the session, petroleum marketers could see risk-based pricing for insurance coverage under state tank funds. Single-walled tanks and tanks over 30 years old could be outlawed, and owners of high-risk tanks could be forced to get private insurance, which would be more costly. Some states could get out of the tank insurance business altogether, forcing tank owners to obtain coverage from private insurers.” — Oil Express, June 21

“Canada will ban the sale of fuel-burning new cars and light-duty trucks from 2035 in an effort to reach net-zero emissions across the country by 2050, Prime Minister Justin Trudeau’s government said on Tuesday. Only zero-emissions cars and trucks can be sold from 2035, according to a statement, adding that a mixture of investments and regulations will help industry transition toward that goal. The government also said it will set interim targets for 2025 and 2030.” — Reuters, June 29

“A new report from the National Academies of Sciences, Engineering, and Medicine commissioned by the Pentagon is recommending that the U.S. Army diversify the fuels it uses in ground vehicles but warns that electricity and pure electric vehicles are not practical alternatives. … The noise and thermal signatures from an electric drivetrain are substantially less than those from a diesel and electric motors provide higher torque at lower speeds than diesel engines, potentially improving vehicle acceleration and towing capacity. But these perceived benefits tend to be outweighed by the limits of electricity’s portability, associated transport penalties, battery energy density and the combat vulnerabilities of EVs, the study finds.” — Forbes, June 23

PEI MEMBER NEWS
D&H United Fueling Solutions acquired Petroleum Marketers Equipment Co., a full-service petroleum industry supplier with branches in Oklahoma City, Tulsa and Dallas-Ft. Worth. The combined operation will have approximately 350 team members and 12 branches in Texas, Oklahoma, New Mexico, Arizona, Colorado, Louisiana and Arkansas.

Leighton O’Brien announced four appointments to its leadership team. Philip Fraher joined the company’s board as finance director. Director Neil Thomas is the company’s new chairman. Michael McDonald becomes legal director. Angela Wisdom was promoted to chief revenue officer.

Matrix Capital Markets Group Inc. advised Circle K Stores Inc. on the sale of 48 fuel and convenience stores to Casey’s General Stores in Oklahoma. The Circle K-branded stores sell Conoco, Phillips 66, Shell, Valero and Circle K fuels. Circle K Stores Inc. is owned by the global convenience and fuel retailer Alimentation Couche-Tard Inc.

Oscar W. Larson Co., a portfolio company of Trive Capital, acquired WildcoPES, a Manchester, New-Hampshire-based provider of petroleum equipment sales, maintenance, inspection, testing and construction services. The addition of WildcoPES and its Massachusetts, Michigan, New Jersey, Virginia and Georgia branches expands Oscar W. Larson’s presence to the East Coast.

Patriot Capital partnered with the Energy Marketers of America (EMA) in a financing program to help EMA members achieve EMV compliance and make other needed site upgrades. When an EMA member uses Patriot Capital financing, the company will donate to EMA and the member’s state marketing association.

MEMBERSHIP APPLICATIONS
Utah distributor. Folsom Industrial, 1815 West 2300 S., Salt Lake City, UT 84119, applied for distributor division membership. Josh Bruening is a sales engineer for the company, which was established in 1968. Folsom Industrial is an equipment distributor for the petroleum equipment industry. Sponsored for PEI membership by Shawn Kiefer, Total Control Systems, Fort Wayne, Indiana. www.folsomindustrial.com

Honduran distributor. Insatesa, Colonia La Mora 20 Avenida Calle 9B No. 906 N. O., San Pedro Sula, 21104, Honduras, has applied for distributor division membership. Julio Vásquez is owner/manager of the company, which was established in 2001. Insatesa represents Gilbarco and Veeder Root products in Honduras and Nicaragua. The company also provides design, installation, maintenance and fleet control services for retail and commercial facilities. Sponsored for PEI membership by Ramon Jose Padilla, Técnica Electromecánica Aplicada Corp., Miami, Florida.  

APPLICATIONS FOR READMISSION
Utah construction company. Romac Services Inc., 3570 S. West Temple, Salt Lake City, UT 84115, applied for readmission to the service and construction division. Dave Fenton is president of the firm, which was established in 2003. Romac Services Inc. performs full facility fuel maintenance, construction and remodeling services. Sponsored for PEI membership by Brian Travis, Eaton Sales & Service LLC, Denver, Colorado. www.romacfacility.com

Nicaraguan distributor. Equipos Y Accesorios, S.A. Rotonda Cristo Rey 150vrs Este., Edificio Equipsa, Managua, Nicaragua applied for readmission to the distributor division. Axel Irias is the general manager of the company, which was established in 1962. Equipos y Accesorios, S.A. provides fueling stations in Central America with equipment, parts and service. Sponsored for PEI membership by J. Gregory Hockman, Hockman-Lewis Limited, Florham Park, New Jersey. www.grupoequipsa.net

ADMITTED TO PEI

• Pablo Orozco Salazar, Petróleos y Servicios C.A., Quito, Ecuador (operations & engineering)
• Phoenix Petroleum Ltd., New Brunswick, Canada (service and construction)
• Maror Comercializadora Industrial, S. de R. L. de C. V., Saltillo, Mexico (distributor)
• Mitchie Petroleum Equipment and Parts Trading, Cabiao, Philippines (service and construction)
• Tecsien, San Nicolas de los Garza, Mexico (affiliate)
• InServe Mechanical Integrity Group, Sulphur, Louisiana (affiliate)
• Creighton Construction & Management, Ft. Meyers, Florida (service and construction)
• AJKB LLC, Olathe, Kansas (service and construction)
• Lytle Signs Inc., Twin Falls, Idaho (service and construction)
• Tyson Petroleum Contractors, Tallahassee, Florida (service and construction) 

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The TulsaLetter 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.