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Editor’s Note—This is my 125^th and final TulsaLetter. When I became TulsaLetter editor back in 2016, I pledged to “synthesize industry news, report key regulatory developments and provide a little analysis to help you do your job better.” For the past five years, I’ve tried my best to keep that promise.

Thanks to all of you who have commented, suggested article ideas, improved my conclusions, forgiven unforgivable typos, said thank you or just taken the time to read the TulsaLetter. It’s been an honor to play a small part in the history of this venerable publication. And I am confident the next generation of the TulsaLetter will serve the association and the industry in even more exciting ways.

As my Dec. 31 retirement from PEI approaches, I’m more grateful than ever for the friendships I’ve made through PEI. Let’s keep in touch. You can reach me at rickclong@gmail.com.

Dear PEI Member:

The federal underground storage tank (UST) regulations in 40 CFR 280 have three simple goals:

• To reduce releases in the nation’s UST systems
• To detect any releases that do occur
• To ensure financial accountability for those releases.

The regulations’ equipment, testing, inspection, maintenance and training requirements address the first two goals. Owners primarily use state tank funds and insurance to meet the financial responsibility requirements.

Today, however, the tank insurance world is changing. Data from the EPA UST Finder tool shows more than 150,000 USTs will reach the end of their 30-year warranties by 2030. Many owners are struggling to find insurance for these systems.

An Oct. 20 EPA email to industry stakeholders provides some assistance. The EPA guidance is equally useful for PEI manufacturers, distributors, service contractors and affiliates who assist owners of aging UST systems. Here’s a summary:

Financial Responsibility for Aging USTs

State of the Industry Recording on YouTube

OSHA Reporting Requirements

EV Charging Station Roundup

Most Ransomware Victims Pay

Respond to this Newsletter

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

Carriers are available. Although some providers will not insure out-of-warranty tanks, the EPA lists on its website 14 insurance carriers that might provide coverage.

Owners can up their chances. Insurance carriers offer several tips for obtaining coverage. Not surprisingly, their first suggestion is for owners of aging USTs to install new tanks. Suggestions for owners not able or willing to make that investment include:

• Demonstrate tank integrity with thorough inspection, release detection and testing records.
• Install new piping, sumps and spill buckets.
• Retrofit tanks with a double-walled interior.

Not all insurance is equal. To meet the EPA’s financial responsibility requirements, tank insurance must cover cleanup costs and compensate third parties who suffer bodily injury or property damage. Tank owners are responsible for confirming the adequacy of their insurance. Fortunately, 40 CFR 280.97 provides model language for endorsements to existing policies and certificates of insurance for new policies.

Brace yourself. UST insurance premiums are based on site-specific characteristics and risks. Even owners who can document years of fully compliant inspection and testing should expect higher premiums and deductibles on out-of-warranty tanks.

Resources are available. The EPA recommends the following resources for UST owners seeking to understand and meet their financial responsibility requirements:

• EPA’s UST Technical Compendium: Financial Responsibility web page includes two new Q&As:
• Question 13 discusses steps owners can take to get insurance on aging USTs.
• Question 14 covers how alternative state mechanisms can satisfy the financial responsibility requirements.

• Dollars and Sense: Financial Responsibility Requirements for Underground Storage Tanks is a 16-page EPA publication that provides a plain-language summary of UST owners’ financial responsibilities.
• Guide to Tank Insurance is an Association of State and Territorial Solid Waste Management Officials (ASTSWMO) resource with definitions, tools, reporting requirements, and questions tank owners should ask when purchasing tank insurance. 

2021 STATE OF THE INDUSTRY ADDRESS ON YOUTUBE
The Oct. 13 TulsaLetter included a few highlights from Rick Long’s 2021 State of the Industry address. The complete 25-minute presentation is now available on PEI’s YouTube channel. The talk, delivered at the 2021 PEI Convention at the NACS Show, provides data and perspective on:

• Business conditions
• COVID-19
• Aging UST systems
• Supply chain disruptions
• Cybersecurity
• EV charging stations
• EMV forecourt upgrades.

OSHA TO STRENGTHEN INJURY, ILLNESS REPORTING
The U.S. Occupational Safety and Health Administration (OSHA) soon will propose tighter injury and illness reporting requirements for companies with at least 250 employees.

Since February 2019, these companies only have needed to submit Form 300A (Summary of Work-Related Injuries and Illnesses).

The OSHA proposal would restore requirements to file the more detailed Form 300 (Log of Work-Related Injuries and Illnesses) and Form 301 (Injury and Illness Incident Report). OSHA has submitted its draft proposal to the White House Office of Management and Budget (OMB) for review and expects to publish a notice of the proposed rulemaking in December.

EV, EV CHARGING STATION ROUNDUP
Hertz plans to buy 100,000 Tesla Model 3s and install thousands of electric vehicle (EV) charging stations by the end of 2022. The first vehicles will be available in early November. More

The global EV charging station market will grow from $17.59 billion to $111.90 billion by 2028, according to Fortune Business Insights. More

Toyota will spend $3.4 billion by 2030 on U.S. EV battery development and production. This includes construction of a $1.3 billion U.S. battery factory. More

The U.S. Energy Information Administration (EIA) forecasts EVs will grow from 0.7% to 31% of the global light-duty fleet by 2050. The conventional (gasoline and diesel) light-duty fleet will peak in 2038, according to the EIA. More

Global demand for nickel, a key ingredient in today’s EV batteries, will exceed supply by 2024, according to Rystad Energy, a Norwegian consulting firm. The firm predicts the shortage will lead automakers to develop alternative battery chemistries. More

MOST RANSOMWARE VICTIMS PAY
Some 83% of ransomware victims during the past 12 months paid their attackers’ demands to restore company data, according to a survey of 300 U.S. IT decisionmakers by ThycoticCentrify, an identity security solutions company.  

Other findings from the 2021 State of Ransomware Survey & Report include:

• 72% of respondents have increased their cybersecurity budgets to counter ransomware threats;
• 93% have developed special budgets to fight ransomware threats;
• 50% lost revenue and suffered reputational damage from an attack;
• 42% lost customers as a result of an attack.

BRIEFLY NOTED
“Wawa Inc. is awarding 15ct/gal discounts to customers who pay for fuel with the Wawa App … . … The large Eastern fuel retailer is not alone. Other fuel brands — such as ExxonMobil, MAPCO, Phillips 66 and Shell — also are encouraging mobile payment through their proprietary apps. The pandemic accelerated an existing uptick in mobile payment used at the point of sale as consumers sought contactless solutions in 2020.” — Oil Express, Oct. 25

“Uncomfortably high inflation will grip the U.S. economy well into 2022, as constrained supply chains keep upward pressure on prices and, increasingly, curb output, according to economists surveyed this month by The Wall Street Journal. … Economists on average see inflation at 5.25% in December, just slightly less than the rate that has prevailed since June. Assuming a similar level in October and November, that would mark the longest inflation has been above 5% since early 1991.” — The Wall Street Journal, Oct. 17

“Chinese automaker GAC Motor claims to have successfully tested a hydrogen combustion engine, although it’s unclear if the engine will ever reach production. Instead of using fuel cells to generate electricity, GAC designed an internal-combustion engine to burn hydrogen in place of gasoline or diesel. … Notable engineering nuggets include a hydrogen-specific combustion chamber design, as well as strengthened pistons, piston rings, and connecting rods.” — Green Car Reports, Oct. 18

PEI MEMBER NEWS
Dover acquired LIQAL B.V., a turnkey supplier of liquefied natural gas (LNG) and hydrogen refueling equipment and micro liquefaction solutions. LIQAL will be part of the company’s Dover Fueling Solutions (DFS) operating unit. Founded in 2014, the Netherlands-based LIQAL is focused on accelerating the decarbonization of transportation fuels.

Matrix Capital Markets Group Inc. advised Jacksons Food Stores Inc. on the acquisition of 62 Speedway and 7-Eleven convenience and fuel retail stores in California, Arizona and Nevada. The stores are among the 293 locations that 7-Eleven Inc. is divesting to satisfy an agreement with the Federal Trade Commission (FTC) as part of its acquisition of Speedway LLC from Marathon Petroleum Corp.

Matrix Capital Markets Group Inc. made three promotions in its Downstream Energy & Convenience Retail Investment Banking Group: Sean P. Dooley, CFA, ASA, to managing director; Martin C. P. McElroy, Jr., CFA, to senior associate; and Nathan B. Wah, CPA, to associate. The company also announced four new hires in the group: Sahan Pandey and Alex B. Harper, analysts; Maggie D. Gerhardt, director of compliance; and Jessica A. Cookmeyer, marketing coordinator.

Nwestco LLC acquired the assets of Bakersfield, California-based Confidence UST. Doug Young is managing the new Nwestco branch, which operates out of Confidence UST’s former Bakersfield and San Jose facilities. The new branch will work closely with Nwestco’s Fresno and Sacramento operation centers.

Sound Payments promoted Mike White to senior vice president for its petroleum channel. The company also named Chad Ellis western region vice president of sales and Joshua Pierre eastern region vice president of sales.

MEMBERSHIP APPLICATIONS
Texas manufacturer. Slow Stop Guarding Systems, 4955 Stout Drive, San Antonio, TX 78219, applied for affiliate division membership. Marko Vojcanin is director of corporate accounts for the company, which was established in 2013. Slow Stop Guarding Systems manufactures and sells rebounding and energy absorbing steel pipe bollards. Sponsored for PEI membership by Ben Thomas, UST Training, Langley, Washington. www.slowstop.com

ADMITTED TO PEI

• Tank Tech SAS, Tocancipá, Cundinamarca, Colombia (affiliate)
• Peacetree Inc., Bloomington, Indiana (service and construction)
• Manpreco, Tecámac, Estado de Mexico, Mexico (service and construction)
• Zhejiang Koeo Petroleum Machinery Co. Ltd., Wenzhou, Zhejiang, China (manufacturer)
• Clean Fuel Solutions LLC, St. Clair Shores, Michigan (service and construction)
• Scott’s Underground Construction Co., Alexander, Arkansas (service and construction)
• Hancock Petroleum Engineering, Yuba City, California (service and construction)
• Civilogistix LLC, Roswell, Georgia (affiliate)

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.