OPMCA Connection - Keeping You Informed!
OPMCA Connection keeps you informed and current on regulations from all state and national agencies as well as laws pertaining to the petroleum marketing/c-store industry.
OPMCA Staff
Candace McGinnis
Executive Director 
Candace@opmca4you.com 
Hannah Fite
Director of Member Services 
Hannah@opmca4you.com
OPMCA  
6420 N. Santa Fe, Suite B
Oklahoma City, OK 73116
Phone: (405) 842-6625 
(800) 256-5013 
Fax: (405) 842-9562
2017-2018 Board of Directors
Brian Lohman, Chairman 
 ASAP Energy Inc.

Mark Cross 
Cross Oil Company

Jerry Davidson
Pete’s Corporation


Jason Flinn 
Flowers Oil Company

Mike Gramm 
Speedy's, LLC 

Kurtis Hutchinson
Hutchinson Oil Company

John Netherton
Danielson Fuel Services

Tommy Shreffler
OnCue Marketing, LLC

Rob Toth
Coffeyville Resources
OPMCA NEWS
The OPMCA office will be closed today, Friday March 30th in observance of Good Friday. Happy Easter!
OPMCA Welcomes New Member:
American Fuel & Petrochemical Manufacturers

Peter Barnes
Manager - State & Local Outreach
1667 K Street NW, Suite 700
Washington, DC 20006
Office: (202) 457-0480
Direct: (202) 602-6615
Cell: (919) 946-7056
Fax: (202) 457-0486
Email: pbarnes@afpm.org
ROOM BLOCK ENDS TOMORROW!
The room block at the 21C Museum Hotel ends on Saturday, March 31st.
If you do not reserve your room before then, you will miss out on the discounted rate of $190 per night. 21C is the new modern luxury hotel in downtown OKC with free parking available. This is where the bulk of OPMCA members will be staying for the Convention and Trade Show. Click HERE to reserve your room now AND don't forget to register for the Convention!
Friday, March 30, 2018
  • ABLE Licensing Reminder - Expect Lengthy Wait Times
  • 2018 OCC Requirements
  • Congress Approves Omnibus Spending Bill
  • Refiners Respond to Secretary Perdue's Comments on RINs
  • Federated Insurance Risk Management Academy
  • Federated Insurance March Educational Articles
ABLE Licensing Reminder - Expect Lengthy Wait Times
Although some laws regarding full strength alcohol sales in 2018 may not have been finalized yet, it is VITAL anybody who plans to carry ANY alcohol (including 3.2% product) begin the licensing process as soon as possible to avoid wait times.
The current wait time is 60-90 days to issue a license but this wait time will dramatically increase as October 1, 2018 approaches. The earlier you apply, the easier it will be to obtain licensing.
Click HERE for the Interim License Application
From now until September 30, 2018, an INTERIM license is available through the Oklahoma ABLE Commission. An INTERIM license allows a retailer to purchase full-strength beer and wine to be placed in storage, not available to the public, until 12:01 a.m. on October 1, 2018. An INTERIM license will become a PERMANENT license on October 1, 2018. Interim applications must be submitted by mail or in person at the OKC ABLE Commission offices, located at 3812 North Santa Fe, Suite 200, OKC, OK 73118. Tulsa and McAlester offices are enforcement offices only. 
Any stock (including 3.2% alcohol) in a retailer's inventory on October 1, 2018, will AUTOMATICALLY be considered "full point liquor" by Oklahoma law. Stores who have not obtained licensing will be unable to sell or keep stock of alcohol on location.
Please click HERE to view frequently asked questions and answers from the ABLE Commission regarding licensing and application.
More information can be found on the ABLE Commission website , or by calling the ABLE office at (405) 521-3484.
2018 OCC Requirements
NEW REQUIREMENTS FOR UST OWNERS & OPERATORS OCTOBER 13, 2018

October 13, 2018 is the deadline for new operation and maintenance requirements for owners and operators of underground storage tank systems for inspections of overfill prevention equipment, spill prevention equipment testing, containment sump testing, testing of release detection equipment, and walkthrough inspections. OCC has posted an information sheet and forms you can download at no cost from their website. Please note that some of these requirements begin October 13, 2018, but some must have the first inspection and/or test conducted by October 13, 2018. For complete information and to download the free forms go to the Classes, Forms and Guidance tab on the Petroleum Storage Tank Division's webpage at www.occeweb.com and click on the Compliance link.

Liquid Tightness Tests for Spill Buckets and Containment Sumps: Click HERE

Overfill Equipment Inspection Recordkeeping form: Click HERE

Release Detection Testing Recordkeeping form: Click HERE

30-Day Walkthrough Inspection Checklist: Click HERE


Below are the new release detection testing and/or inspection requirements taking place in 2018. The sections below briefly cover each new requirement as well as explain how testing/inspection can be accomplished.  

Overfill Prevention Equipment Inspection
[ OCC Rule: 165:25-2-39, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41579 ]
By October 13, 2018, overfill protection equipment must be inspected for proper operation at least once every 3 years. When inspecting, owners and operators must at a minimum ensure the overfill prevention equipment is set to activate as the correct level in the tank and will activate when regulated substances reach that level. The first inspection must be conducted by October 13, 2018.

"For overfill prevention equipment inspections, owners and operators must use manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. Manufacturer’s requirements are an option only when manufacturers have developed inspection requirements for their overfill prevention equipment that determines the device is set to activate at the appropriate level in the tank and will activate when the regulated substance reaches that level. As of this final UST regulation, EPA is aware of one code of practice that contains procedures for inspecting overfill prevention equipment: Petroleum Equipment Institute (PEI) Recommended Practice (RP) 1200 (“PEI RP 1200”), Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities. "


Spill Prevention Equipment Testing
[ OCC Rule: 165:25-2-39, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41577 ]
By October 13, 2018, spill prevention equipment must be tested for liquid tightness at least once every 3 years or use a double-walled spill bucket with periodic interstitial monitoring that is monitored at least every thirty (30) days. The first test must be conducted by October 13, 2018.

"For spill prevention equipment that must be tested once every three years, this final UST regulation requires owners and operators to conduct testing using vacuum, pressure, or liquid methods. In addition, the test must be conducted in accordance with manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. The manufacturer’s requirement is an option only when the manufacturer has developed requirements for testing the tightness of their spill prevention equipment. As of the publication date of this final UST regulation, EPA is aware of one code of practice that contains procedures for testing spill prevention equipment: PEI RP 1200, Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities. In addition, EPA is providing implementing agencies flexibility to allow other methods they determine to be as protective of human health and the environment as the manufacturer’s requirements or a code of practice. This option allows alternatives in case codes of practice and manufacturer’s requirements are not available for testing spill prevention equipment."


Annual Operation & Maintenance Tests for Release Detection Equipment
[ OCC Rule: 165:25-3-6.21, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41581 ]
Beginning October 13, 2018, the electronic and mechanical components of release detection equipment must be tested for proper operation in accordance with manufacturer’s instructions or use a code of practice developed by a nationally recognized association or independent testing laboratory. A test of proper operation must be performed at least annually and, at a minimum, cover the following components and criteria as applicable to the facility.

(1.) Automatic tank gauge and other controllers: test alarm, verify system configuration, test battery backup;

(2.) Probes and sensors: inspect for residual buildup, ensure floats move freely, ensure shaft is not damaged, ensure cables are free of kinks and breaks, test alarm operability and communication with controller;

(3.) Automatic line leak detector: test operation to meet criteria in 40 CFR 280.44(a) by simulating a leak;

(4.) Vacuum pumps and pressure gauges: ensure proper communication with sensors and controller (Refer to PEI 900 Section 8 (8.5.3.4.2) ; and

(5.) Hand-held electronic sampling equipment associated with groundwater and vapor monitoring; ensure proper operation.

Owners and operators must maintain records of the annual operation tests for 3 years. At a minimum, records must list each component tested, indicate whether each component needed to have action taken and describe any action taken to correct the issue.

"Owners and operators must meet the release detection operation and maintenance requirements according to one of the following: Manufacturer’s instructions; a code of practice developed by a nationally recognized association or independent testing laboratory; or requirements determined by the implementing agency to be no less protective of human health and the environment than the two options listed above. These requirements are consistent with options for other operation and maintenance activities in this final UST regulation. EPA reviewed PEI’s final Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities (RP 1200) and is including it in this final regulation as an option for meeting the annual release detection equipment testing requirements."


Containment Sump Testing
[ OCC Rule: 165:25-3-6.25, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41580 ]
By October 13, 2018, containment sumps used for interstitial monitoring of piping must be tested for liquid tightness at least once every 3 years or use double-walled containment sumps with periodic interstitial monitoring of the space between the 2 walls of the sump at least every 30 days (on installations containment sumps must be tested at installation and then every 3 years thereafter). The first test must be performed by October 13, 2018.

"For containment sumps that require testing at least once every three years, this final UST regulation requires owners and operators conduct testing by using vacuum, pressure, or liquid methods. In addition, the test must be conducted in accordance with manufacturer’s requirements or a code of practice developed by a nationally recognized association or independent testing laboratory. The manufacturer’s requirement is an option only when the manufacturer has developed testing requirements for their containment sumps that ensure their containment sump is tight. As of this final UST regulation, EPA is aware of one code of practice that contains procedures for testing containment sumps: PEI RP 1200, Recommended Practices for the Testing and Verification of Spill, Overfill, Leak Detection and Secondary Containment Equipment at UST Facilities, and is adding this code of practice to the final UST regulation. In addition, EPA is providing implementing agencies flexibility to allow other methods they determine to be as protective of human health and the environment as the manufacturer’s requirements or a code of practice. This option allows alternatives in the event that a code of practice and manufacturer’s requirements are not available for testing containment sumps."


30-Day Walkthrough Inspections
[ OCC Rule: 165:25-1-60, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41576 ]
By October 13, 2018, owners and operators of UST systems must begin conducting 30-day and annual walkthrough inspections. Walkthrough records must be maintained on site for 3 years. The first walkthrough inspection must be performed by October 13, 2018.

(1.) Every 30 days all spill prevention equipment and release detection equipment must be inspected (except spill prevention equipment at UST systems receiving deliveries at intervals greater than 30 days may be checked prior to delivery). Containment sumps and any hand-held release detection equipment, such as tank gauge sticks, must be inspected annually.

(2.) Records should include a list of each area checked, whether each area checked was acceptable or needed action taken, a description of any actions taken to correct issues, and delivery records if spill prevention equipment is checked less frequently. Airport hydrant systems must meet the additional walkthrough inspection requirements (see 40 CFR 280.252(c) for specifics).

"In addition, this final UST regulation allows owners and operators to conduct operation and maintenance walkthrough inspections according to a standard code of practice developed by a nationally recognized association or independent testing laboratory or according to requirements developed by the implementing agency. The inspections must check equipment in a manner comparable to the walkthrough inspection requirements described above."


Temporary Out of Use (TOU) Tanks
[ OCC Rule: 165:25-2-133, Federal Register: Volume 80, Number 135, July 15, 2015, Pg. 41639 ]
Beginning October 13, 2018, tank systems that are temporary closed for 3 months or less are not required to meet spill testing and overfill inspections, however, they are required to:

(A) Continue to monitor for leaks by performing release detection,

(B) Perform monthly walkthrough inspections,

(C) Perform annual inspections and tests of release detection equipment, and

(D) Perform 3-year containment sump testing on containment sumps used for interstitial monitoring of piping.

Beginning October 13, 2018, tank systems that are empty to less than one inch (1”) of residual fluid are not required to maintain the following:

(1.) Spill prevention testing,

(2.) Overfill prevention inspections,

(3.) Release detection,

(4.) Annual release detection equipment testing and inspections,

(5.) Monthly walkthrough inspections, and

(6.) Three-year containment sump testing on containment sumps used for interstitial monitoring of piping.

If you have any further question regarding this matter, please contact our Compliance staff. See contact information below.

Darryl Cole – (405) 522-4810
Brock Stuber – (405) 521-6397
Brian McDonald – (405) 522-2989
Congress Approves Omnibus Spending Bill
A week ago, Congress approved a $1.3 trillion spending bill which would fund the government through the end of the fiscal year on September 30. The bill includes funding for: fencing on the U.S. border with Mexico; combatting opioid addiction; building roads and strengthens background checks for guns.
Of significance for marketers, the bill includes: 

  • $92 million for the Leaking Underground Storage Tank (LUST) fund which matches previous funding levels. 
  • A $250 million funding increase for the Low-Income Home Energy Assistance Program (LIHEAP) from $3.39 billion to $3.64 billion.
  • A $23 million funding increase for the Weatherization Assistance Program (WAP) from $228 million to $251 million.
  • A $4.5 billion funding decrease for the Supplemental Nutrition Assistance Program (SNAP) from $78.5 billion to $74 billion. 
  • A $29 million funding increase for the Strategic Petroleum Reserve (SPR) from $223 million to $252 million.
  • A 10-million-barrel sale from the SPR through fiscal years 2020 and 2021.
  • A funding level of $6.5 million for the Northeast Home Heating Oil Reserve, which remains unchanged from the previous year.

Unfortunately, several provisions did not make the cut including federal preemption of state meal and rest break requirements provision for motor carriers, a provision that would have corrected a mistake in Section 168 of the new tax law that may cause retailers to lose eligibility for bonus depreciation and a provision that would have delayed implementation of EPA's revised ozone standard for 10 years from 2015 to 2025. 

Congress will eventually have to fund the government again before the September 30th deadline. It is likely that Congress will pass another short-term continuing resolution (CR) through the mid-term elections and then return during a lame-duck session to approve a government spending bill.  
 
 PMAA continues to work with like-minded associations to include these important provisions in the next spending bill.

Refiners Respond to Secretary Perdue's Comments on RINs
Last week, a group of refiners known as the Fueling American Jobs Coalition responded to comments made by Agriculture Secretary Sonny Perdue that Congress would be better off handling the issue over the price of RIN credits instead of the White House. In their comments , the coalition praised Secretary Perdue for acknowledging that there is a problem with the current Renewable Fuel Standard (RFS) program and that the issue surrounding the volatility of RINs needs to be addressed.

However, the group did respond to Secretary Perdue’s comments with some criticism, saying that "arguing that administrative reforms and legislative are an either-or matter is simply presenting a false choice. Administrative reform is needed now to avoid job loss and squandering of needed capital by the poorly calibrated RINs program. Legislation on the RFS is a laudable goal but will clearly take time to navigate the tough politics of biofuels on Capitol Hill.” Lastly, the group stated that Secretary Perdue’s call for a “middle ground” solution "must include serious, meaningful and direct cost containment for RINs of the very sort the President has previously discussed, such as waiver credits." 

PMAA has been following the issue closely and will continue to provide updates.

Federated Insurance Risk Management Academy
Federated Insurance is offering complimentary risk management training for petroleum marketers on April 24-26, 2018. Through this valuable session, you will discover methods you can use immediately to help protect profits by reducing risk at your business.

Companies that are the most successful at controlling losses and protecting profits have integrated risk management into their overall company culture. Many have designated a key person as their risk manager. This person is supported by top management and is both responsible and accountable for identifying loss exposures and implementing risk management solutions.

These seminars are designed for individuals in positions of risk leadership including owners, operations management, service management, risk management, or human resources. The key to a successful business is implementing and leading a strong risk management culture, so attendees should be in a position to take action!

Class size is limited to 25. For more information or to reserve your spot in the upcoming session, please contact Royetta Spurgeon at Federated Insurance by calling 507.455.5604, or e-mailing drm@fedins.com.
Federated Insurance March Educational Articles
Okay to limit holiday pay to specific employee class?
Click HERE to view the HR Question of the Month!

Risk Management Corner: When Disaster Strikes

It's Your Life: Tax Cuts and Job Act