Fuel Marketer News Magazine Summer 2017 by Fuels Market News

Summer Issue 2017

A PUBLICATION OF EPIC MARKET NEWS

Whatâ&#x20AC;&#x2122;s the Value of

Pricing Data?

New Market Disruption in Retail Developing Gas Stations Outstanding Fuel Management Teetering or Tottering Making Fleet Cards

Work for You

Who Likes Low Gas Prices?

S U P P L Y, M A R K E T I N G , D I S T R I B U T I O N , T R A N S P O R T A T I O N & L O G I S T I C S

PUBLISHER’S NOTE

EDITORIAL STAFF President and Publisher Gary D. Bevers GBevers@EpicNewsData.com Editorial Director and Digital Publisher Keith Reid KReid@EpicNewsData.com CAO and Associate Publisher Kathy Bevers KBevers@EpicNewsData.com Managing Editor Kyndall P. Krist KKrist@EpicNewsData.com Industry Analysts/Editors Frank M. Hunter FHunter@EpicNewsData.com Nancy Yamaguchi, Ph.D. NYamaguchi@EpicNewsData.com Columnists and Contributors Greg Cushard Vladimir Collak Shane Dyer John Eichberger Doug Haugh Corey Henriksen Maura Keller Alan H. Levine Joseph H. Petrowski W. Brian Reynolds Fred M. Whitaker Editorial Board Paul Reuter, Editor at Large Ed Burke Lisa Calhoun George A. Overstreet, Jr. Joseph H. Petrowski Art Director Jeff Beene JBeene@EpicNewsData.com Account Manager Don M. Hester, Jr. DHester@EpicNewsData.com Digital Products Business Manager Joe A. Martinez JMartinez@EpicNewsData.com Digital Marketing Specialist Scott A. Croom SCroom@EpicNewsData.com Advertising Sales Greg Mosho c 732-610-5735 GMosho@EpicNewsData.com Mailing Address 15201 Mason Road, Suite 1000-288 Cypress, TX 77433

A note from

Gary Bevers, Group Publisher Four years ago this summer…

across the spectrum. Our energy production is

…we launched FMN Media, our digital

so abundant and inexpensive that, for the first

publishing company, and our inaugural Fuel Marketer News (FMN) website magazine and newsletter. To our friends, subscribers and

U.S.-produced crude around the world—and

followers, you have seen us grow and develop,

even coal exports are up by 60%.

add new publishing products and titles, merge

Today…

into EPIC News+Data and now further serve the industry with insightful market news and analysis in addition to wholesale and retail price indexes and benchmarks. As always, our news division continues to inform and educate our readers to

The core mission of FMN has always been, and continues to be, to provide you—the fuel marketer—with a range of useful news and information focused on keeping you in tune

help promote better fuel operations and

with the important fuel products, pricing,

business practices. Our pricing data division’s

regulatory and operational issues so critical

goal is to help bring pricing transparency to the

to your business.

market through retail and wholesale rack price benchmarks.

For more information about our data offerings, see our special supplement, “What’s the Value

During this same four-year timeframe of covering

of Pricing Data?” starting on page 54. Other

transportation fuels, we have seen the industry

notable articles in this issue include Doug

undergo even more changes than we have!

Haugh’s “New Market Disruption in Retail Gas

Mexico has deregulated and opened their

Stations” on page 13, Maura Keller’s “Making

downstream fuel market to imported fuel and

Fleet Cards Work for You” on page 38 and John

private business participation from

Eichberger’s “Teetering or Tottering: Who Likes

U.S.-based companies. Sustained low crude

Low Gas Prices?” on page 44. In every issue,

prices with unprecedented full supply have kept

our energy-expert columnists deliver objective

wholesale and retail street prices low, even

analyses of the facts, changes and trends in our

considering the rising fuel prices—just in time

industry, and what that means to you as a fuel

for the summer driving season. We have also

marketer.

seen continued company consolidation and roll-ups in the wholesale jobber and retail

As we continue to offer new, value-added

marketer business segments.

fuel-related services to our publications, we promise to work hard to make sure you have

And now, with the election of who I call

every reason to make us your go-to news source

America’s “Energy President,” the oil and gas

for motor fuels buying and supply. To stay in

industry has been deregulated at unprecedented levels; the EPA has been restricted to its core mission, and has already been pulled back from overregulating the development of our energy resources; oil and gas job creation has risen to levels we have not seen in decades; and

time since Jimmy Carter was President in the 1970s, it is legal for U.S. companies to export

the loop as new content gets posted, visit our website at www.EpicMarketNews.com, where you can also register for our e-newsletters. Registration is free, and the process is short and easy.

consumer optimism has been fueled (pun

So, here’s looking forward to more positive

intended) by historically low energy prices

trends and changes in the future.

16 Mapping

TABLE OF CONTENTS

Out a Positive Future for Roadway Funding and the Troubled

PUBLISHER’S NOTE

FUELS & SUPPLY

Trump Pulls the Plug on Paris by Keith Reid

In Case You Missed It: Policy Brief Overview

Developing Outstanding Fuel Management by Joe Petrowski

New Market Disruption in Retail Gas Stations by Doug Haugh

Mapping Out a Positive Future for Roadway Funding and the Troubled Gas Tax by Joe O’Brien

California Passes Fuel and Vehicle Tax Bill by Dr. Nancy Yamaguchi

RETAIL OPERATIONS

Addressing Corrosion and Microbial Growth in Today’s Fuel Environment by Brad Hoffman

Do You Know the ABCs of the EPA 2018 UST Regulation Deadline? by Peter J. Cochefski

Making Fleet Cards Work for You by Maura Keller

Teetering or Tottering: Who Likes Low Gas Prices? by John Eichberger

Gas Tax $ $ $ $ $

Tax Bill

Bringing a Driver’s Background to the Foreground by Stephen Bennett

SPECIAL SUPPLEMENT:

What’s the Value of Pricing Data?

by Gary Bevers, Frank Hunter and Sharon Fielding-Schneider

Biodiesel Incentives for Government Fleets and Marketers by Jon Scharingson

Driving Performance with Telematics by Stephen Bennett

BUSINESS OPERATIONS

Is Customer Service Hurting or Helping Your Business? by Ann Pitts

76 DEF ROUNDUP 86 INDUSTRY NEWS 94

ADVERTISER’S INDEX

Making

Fleet Cards Work for You

WHOLESALE & FLEET OPERATIONS

California Passes Fuel and Vehicle

Biodiesel Incentives for Government Fleets and Marketers

70 Is Customer

Service

Hurting or Helping Your Business?

by Keith Reid

Trump Pulls the Plug on Paris

On June 1, President Donald Trump announced that America was going to pull out of the Paris climate accord, which had been agreed to by the Obama administration at the COP 21 meeting in 2015. The announcement was not particularly surprising given Trump’s campaign statements, which have been reinforced by his cabinet appointees and some of their initial actions to reverse former President Obama’s climate change initiatives.

The United States never ratified the accord as a treaty, as it stood little chance of making it though the Senate. The provisions were also voluntary and non-binding, which made it possible to avoid the Senate and increased the likelihood of it being more palatable to other governments as well, if history is any indication. With that framework, the accord worked out a range of contentious issues relative to payments being sourced from developed nations and sent to developing nations through the UN Green Climate Fund, as well as aggressive carbon reduction goals that claimed to reduce the rise of global temperatures to be less than 2 degrees Celsius (°C) above preindustrial levels. Even this was considered inadequate by environmental activists—from the reduction targets to financial obligations. Further meetings are anticipated to ratchet up international requirements.

FMNMagazine

FuelMarketerNews.com

To force the reductions while bypassing Congress, the Obama-era Environmental Protection Agency (EPA) began or intensified a range of aggressive regulations—such as the Clean Power Plan and the ozone rule—to start working toward the agreement’s emission goals. At the same time, lawsuits from impacted parties began working against the most onerous regulations. During the campaign, Trump stated a goal to reevaluate and roll back much of these regulations, and he has already acted to work toward this end.

“”

FUELS & SUPPLY POLICY BRIEF

playing field with emission targets have all worked to prevent an agreement more binding than the Paris accord. Even with a lineup of progressive climate regulations supporting governments in the developed world, the Paris accord was the best that could be achieved.

“The cost to the economy at this time would be close to $3 trillion in lost GDP and 6.5 million industrial jobs, while households would have $7,000 less income and, in many cases, much worse than that.” President Donald Trump

Trump’s Rationale Trump’s rationale for pulling out of the agreement mirrored common themes from the campaign. In his speech on June 1, he noted that the accord would be costly to the U.S. economy, citing an impact of 2.7 million lost jobs by 2025, including 440,000 manufacturing jobs, as reported by the National Economic Research Associates (NERA). In addition, the same study predicted that by 2040, paper production would be down by 12%, cement by 23%, iron and steel by 38%, coal by 86% and natural gas by 31%.

comply with the Paris accord were going to become signiﬁcant and more than noticeable to the average person. The result would be even more pushback in addition to more skepticism. Without support from the United States, international climate policies that, either as a bug or feature, centralize government power and control from the national level to the UN level are further imperiled.

What Does the Announcement Actually Mean?

“The cost to the economy at this time would be close to $3 trillion in lost gross domestic product (GDP) and 6.5 million industrial jobs, while households would have $7,000 less income and, in many cases, much worse than that,” Trump said.

For something that was touted as a great achievement by much of the media, the Paris accord was low on actual enforcement mechanisms and was generally criticized by a number of environmental activists. So why is there outrage over Trump’s announcement, and more specifically, what does it mean to those involved in motor fuels?

Trump also fell back on another campaign mainstay: that this accord was poorly negotiated. Most of the treaty’s impact would be felt by the developed Western nations—the U.S. at the forefront—which by and large are already green in their production and use of energy and fossil fuels.

Unlike previous efforts, the requirements to comply with the Paris accord were going to become significant and more than noticeable to the average person. The result would be even more pushback in addition to more skepticism. Without support from the United States, international climate policies that, either as a bug or feature, centralize government power and control from the national level to the UN level are further imperiled.

“For example, under the agreement, China will be able to increase the emissions by a staggering number of years: 13,” said Trump. “They can do whatever they want for 13 years— not us. India makes its participation contingent on receiving billions and billions and billions of dollars in foreign aid from developed countries. There are many other examples, but the bottom line is that the Paris accord is very unfair at the highest level to the United States.”

More granularly on the motor fuels side, the next tier of Corporate Average Fuel Economy (CAFE) standards are already being called into review by the Trump administration, and it would seem likely that the similar Phase 2 diesel standards for commercial vehicles will come under review.

Trump threw out the bone that he would be willing to renegotiate the accord should the other parties be interested, with the purpose of obtaining a deal that treated the United States fairly, but that is highly unlikely.

Trump has indicated his support for an all-of-the-above energy policy, and that does not seem to have changed. However, the specifics of how these initiatives will play out—from supporting electric vehicles (EVs) to tax incentives for biofuel production— are still question marks.

The primary reasons for the failure of past climate accord attempts—from Kyoto in 1997 to Copenhagen in 2009— have been the wealth redistribution from the developed world to the developing world and the relative impact between the two sides. The size of climate fund payments; the issues of liabilities for droughts that might, or might not, be linked to climate; and the requirements that skewed the FMNMagazine

Unlike previous eﬀorts, the requirements to

It can be expected that the virtual rubber stamp support seen under the Obama administration is a thing of the past. With the withdrawal from the Paris accord, we can get a solid indication that Trump was serious about his campaign promises. n 7

FuelMarketerNews.com

FUELS & SUPPLY POLICY BRIEF OVERVIEW

Did you enjoy that policy brief? We believe timeliness is important to our readers, so for the most up-to-date policy briefs, regulatory updates, legislative updates and more industry news, visit our website at www.EpicMarketNews.com/Briefs.

POLICY In case you missed it: NACS in 2017: An Inside Look with Paige Anderson

Paige Anderson

Trump Rolls Back Clean Power Plan, Reviews CAFE Standards

Read our exclusive interview with Paige Anderson, the National Association of Convenience Stores’ (NACS) Director, Government Relations, where we discuss the organization’s legislative priorities for 2017.

Read about President Trump’s “Energy Independence” executive order, backing out of the Obama administration EPA’s Clean Power Plan and the review of the next phase of Corporate Average Fuel Economy (CAFE) standards.

PMAA in 2017: An Inside Look with Rob Underwood

Rob Underwood

EPA Announces Final RFS Volumes for 2017, and the Biomass Diesel Volume for 2018

Read our exclusive interview with Petroleum Marketers Association of America (PMAA) President Rob Underwood, where we examine PMAA’s regulatory and legislative plans for 2017.

Read about the EPA’s finalized volume requirements and associated percentage standards that apply under the Renewable Fuel Standard (RFS) program in calendar year 2017, as well as the volume requirement for biomassbased diesel for 2018.

FMNMagazine

FuelMarketerNews.com

by Joe Petrowski

Developing Outstanding Fuel Management

For a retailer to maximize fuel income and traďŹ&#x192;c for inside sales, it is vital to have both a great procurement team and a street pricing team working in a collaborative and coordinated fashion.

“ ”

FUELS & SUPPLY

director and retail

For street pricing, the essential variables are:

pricing director should

Both the procurement

be cross-trained in each

other’s function, along

Pricing to competition on a real-time basis, 2. taking facility and location into account.

with any supporting

contract sales through a ﬂeet 3. Maximizing program, loyalty program or Internet sales.

clerical professionals.

social media to “ping” customers for 4. Using purchases during the 10:00 a.m. – 4:00 p.m.

For procurement, the essential variables are: 1.

slow period.

5. A director of street pricing is measured by: a. Maintaining and growing site volume. b.. Matching or beating retail margin results for the market area.

Building optionality into the book as much as possible. That means multiple suppliers, multiple terminals, multiple trucking vendors and a portfolio of contracts (index, posted, NYMEX, diﬀerentials and ﬁxed).

Maximizing credit lines with suppliers and being set up at multiple terminals.

Understanding transportation costs, including pipeline, barge and trucking.

Both the procurement director and retail pricing director should be cross-trained in each other’s function, along with any supporting clerical professionals.

Finally, the important function for overall fuel performance is possessing the best information systems and data, including EPIC, OPIS, Platts, GasBuddy, Kalibrate and PriceAdvantage. The team’s key attributes are always information, intelligence, speed and diligence. n

blending economics, 4. Understanding including renewable identiﬁcation number (RIN) economics.

Focusing on the impact events that aﬀect regional supply, including reﬁnery outages, pipeline interruptions, strikes, turnarounds and terminal outages or constraints— especially during Reid vapor pressure (RVP) change season—and reacting quickly.

READ MORE at FuelMarketerNews.com

Joe Petrowski Joe has had a long career in international commodity trading, energy and retail management and public policy development. In 2005, he was named President and CEO of Gulf Oil LP and elected to the Gulf Oil LP Board of Directors. In October 2008, he was named CEO of the now combined Gulf Oil and Cumberland Farms, whose annual revenues exceed $11 billion and now operates in 27 states. In September 2013, Petrowski stepped down as CEO of The Cumberland Gulf Group. He is now the Managing Director of Mercantor Partners, a private equity firm investing in convenience and energy distribution. He is also a member of the Gulf, Yesway and Green Print, LLC Boards.

The procurement director’s job is not to forecast prices or speculate. A top performer: a. Keeps the system supplied at all times. b. Purchases better than index or on par with competition. FMNMagazine

Establishing weekly volume for every site and using daily price adjustments to maintain that volume.

FuelMarketerNews.com

FUELS & SUPPLY

New Market Disruption in Retail Gas Stations

by Doug Haugh

Market disruption seldom originates from obvious origins, which is one of the reasons why it’s so, well, disruptive. It seems pretty clear that if electric vehicles (EVs) replace gas and diesel in substantial numbers, we will need far fewer gas stations in our communities. An interesting future to ponder, but you have to admit, EVs are a pretty obvious suspect. With that in mind, I have been looking for other disruptive market forces that are not so screamingly obvious.

The Disrupter You Know Before we go there, let’s deal with the prime suspect: EVs. It can and has been argued that significant growth in EVs may not be the end for gas stations. Retailers could replace current fuel dispensers with fast charging stations. These chargers would still provide value and convenience to the customer who needs a charge away from home, or to those who do not have a garage to charge in overnight. It’s pretty clear that EV owners will need public charging stations, but if you’re going to stop somewhere for 20 – 30 minutes, I just cannot see customers choosing to do so at a typical gas station. Starbucks—sure; the new RaceTrac near where I live in Atlanta that has a nice outdoor seating area and some good food—maybe. The typical gas pumper with four to eight fuel islands—no way.

FMNMagazine

FuelMarketerNews.com

But just how big of a threat are EVs anyway? The most optimistic forecasts are that in 20 years, they will make up 25% of new car sales, and in 33 years—by 2050—they will make up the majority of new car sales. Okay, so the gas retailer of today will have fewer customers over time, but loads of customers will still need gas. No one is going to be putting their own gas tank in their garage to fuel at home, and Starbucks may add chargers, but let’s agree that they’re never adding gas. So, it seems that even retailers building new stations should be fine, as long as their returns and payback models are attractive over the next 10 – 20 years. Great news: crisis averted—at least for this generation of retailers.

“ ”

What if EVs aren’t the most disruptive new technology that could threaten gas stations? Maybe, just maybe, the biggest threat is the same one that’s taking down countless other industries. Yes, you got it: that supercomputer in your pocket.

The Disrupter to Watch What if EVs aren’t the most disruptive new technology that could threaten gas stations? Maybe, just maybe, the biggest threat is the same one that’s taking down countless other industries. Yes, you got it: that supercomputer in your pocket.

It’s hard to keep up when mobilization is bringing change to so many industries right now, but this mobile disruption has not applied to the fuels industry yet. Take mobile payments as an example; five years ago, everyone said this disrupter was going to be the next big wave to impact gasoline retailers. It has only now started to move the needle, and only a small fraction of customers are using their phones to turn on the gas pump. Once I started looking at how mobilization could impact how consumers fuel their cars, I was most surprised by all the new businesses being created to address the potential. No less than a dozen new startups, some of which are shown in the following chart, want to steal gas station customers by bringing the fuel directly to their vehicles. To be clear, the fuel is not delivered to the customer—it is delivered to their vehicle while it’s parked. This approach is all about freeing up the time a customer would have to invest in fueling their vehicle by eliminating an extra stop on the way home or out of town.

Company

Service Area

Website

Fees

Gas Price

FuelMe

Houston

www.FuelMeApp.com

Charges a small delivery fee with each delivery.

Takes the average price per gallon of gas in the ZIP code the car is parked in, and offers a lower price per gallon.

Yoshi

San Francisco; Nashville; Atlanta

www.StartYoshi.com

$20 per month for the first vehicle, $10 per month for additional vehicles.

Gas is sold at the city’s AAA average.

Booster Fuels

Northern California; Dallas-Fort Worth

www.BoosterFuels.com

Free in parks/garages and at offices where companies host the service as a benefit to employees.

Competitive with local gas station prices.

Filld

San Francisco

www.Filld.com

Delivery fee of between $3 – $10 per fill.

Customers pay the lowest price of the three gas stations closest to their location. Filld purchases their pricing data from OPIS, updating it daily.

Purple

Los Angeles; Orange County; San Diego

www.PurpleApp.com

Delivery fee of $3 – $9 per fill, or by monthly subscription (Purple Plus).

Competitive prices based on the area’s average fuel cost.

WeFuel

San Francisco Bay Area; Palo Alto and Menlo Park, California

www.WeFuel.com

$7.49 fee per fill up, planning to roll out a monthly subscription service for unlimited refills at $19.99 per month per car, plus the cost of gas.

Daily calculation based on fuel prices for specific ZIP codes, using GasBuddy as one of their data sources.

Gas Drop

Jacksonville, Florida

www.GasDropApp.com

Delivery fee of $5.

Gas prices will be the average price in the area.

GasNinjas

Miami

www.GasNinjas.com

Free after 11:00 p.m., $5 fill within the hour.

Averages the five closest gas stations that sell Top Tier gasoline.

Instafuel

Houston

www.Instafuel.com

For consumers, there are no delivery fees. Fleets are charged a set delivery fee based on the number of vehicles and refueling visits per week.

Guarantees fuel prices that are below the area’s average price.

Joule Refuel

Los Angeles

www.JouleRefuel.com

No extra fees or hidden costs. Prices are always quoted before payment.

Quote to daily market based on ZIP code, charging a competitive price per gallon.

Mobile Fuel

Houston; Dallas; Oklahoma City; Charlotte, North Carolina; Atlanta; Washington, D.C.; Miami

www.MobileFuel.me

Membership is $20 per month for up to three vehicles at a refueling location. There are no delivery charges.

Premium gasoline prices are updated daily by AAA’s Fuel Gauge Report.

“

FUELS & SUPPLY

”

New Market Disruption in Retail Gas Stations

So, What’s the Hold Up?

I have found only one of these companies that has even contemplated working with the existing fuels industry. Most simply see the industry as one more to be disrupted by mobile technology and a fresh perspective on consumer tastes.

Interestingly, I have found only one of these companies that has even contemplated working with the existing fuels industry. Most simply see the industry as one more to be disrupted by mobile technology and a fresh perspective on consumer tastes. In direct discussions and by reading their claims, I found that many of these startups seem to have limited knowledge about how the fuels industry and supply chain actually work today, and even less interest in leveraging what has already been built to service customers in a new way.

With so many companies working to win over drivers, one would expect a lot of diversity in business models and pricing, and this roster doesn’t disappoint on that count. Fees or no fees? Pay by the car or by the location? Charge fees for each delivery or sell monthly memberships? Deliver regular or premium gasoline, or offer both? Compete with the price offered by the gas station around the corner or the average price across your city?

These companies’ founders and employees also appear to be fearless—or perhaps naïve—in the face of fire codes, environmental restrictions and regulations, or they’re worried about limitations imposed by property owners or local communities. I have little doubt that all of these factors will come into play if and when we see a significant number of consumers showing interest in these services. Once these mobile consumer fueling startups find themselves “on the radar” of regulators, they will come to appreciate just how difficult it is to build a business of any scale in the fuels industry. Then they will find it is even harder to consistently make money off of that scale, even if they can continue to interest customers in the service. So, while the industry is busy being worried about EVs, I think these mobile startups and their excited founders are really the ones worth watching. Their ability to disrupt the over half-atrillion-dollar-a-year U.S. fuels industry seems unlikely, but that’s the point: current business owners will already be prepared for the likely suspects. Occasionally, the long shots succeed. n

at FuelMarketerNews.com Each of these companies answers those questions a little differently, and in the past few months that I’ve been tracking them, many have made changes and adjustments to their business models and pricing approaches.

Douglas S. Haugh

Most of these companies are also taking a widely different approach when it comes to the physical delivery. One firm is using freelancers who agree to deliver fuel to a customer’s car from their own car or truck; think of it like Uber’s ride sharing business model. Others are seeking to innovate in the area of fuel storage tanks and how to work within Department of Transportation (DOT) regulations regarding hazmat placarding and driver qualifications. One is taking a rather traditional approach to the truck itself, but is positioning the service to be offered by employers as a new perk for time-pressed employees. FMNMagazine

Doug is currently President and Chief Strategy Officer of Mansfield Energy. The company provides energy commodities and related services to 6,000 customers in 18,000 locations across the U.S. and Canada. The company’s expertise covers a broad range of transportation and facilities energy—from traditional petroleum products, CNG, renewable fuels and specialty chemicals to power and natural gas. Haugh is a frequent speaker on energy, supply chain technology and entrepreneurship. He can often be found leading general sessions or seminars at national conferences and conventions. He also blogs on energy issues at ThinkingOnEnergy.com. The opinions expressed there (and here) are his, and not those of Mansfield.

FuelMarketerNews.com

Mapping Out a Positive Future for Roadway Funding and the Troubled Gas Tax

FUELS & SUPPLY

Revenues from the federal gas tax support the Highway Trust Fund—a program modeled after the Social Security Trust Fund—which provides about 80% of the funding for roads, highways, bridges, tunnels and public transit.

by Joe O’Brien

“

The evolutions of motor fuels and transportation technologies have far-reaching and counterproductive consequences for our highways, jeopardizing the funding on which all drivers depend. How did this happen, and why should fuel retailers care?

50 Years of Annual U.S. Vehicle Fuel Consumption, Average Gallons Per Vehicle

Motor fuels taxes have been the bedrock of most roadway funding for decades. Because the relationship between fuel pricing, automotive purchasing trends and future fuels is as interconnected as the U.S. interstate system itself, fuel retailers need to stay abreast of changes within the funding structures.

712 Gallons

677 Gallons

720 Gallons

678 Gallons

The first federal gas tax was authorized in 1932 with the original intention of closing a gap in the general fund that was a result of a depressed economy. The gas tax has undergone several revisions since then—increasing and decreasing, having been used to fund roadways or reallocated to other needs—as the times dictated.

830 Gallons

A Taxing Situation

784 Gallons

Source: Energy Information Administration (EIA)

But before we look ahead to how the roadway funding mechanisms could change, let’s take a look at what brought us to the funding crisis in the first place.

1960

1970

1980

1990

2000

2010

In the short term, some transportation budgets have been buoyed slightly by revenue generated by an improved economy. More revenue is coming in from vehicle sales taxes, and with relatively low fuel prices, motorists are driving more (and therefore purchasing more fuel). However, a long-term financing solution has remained elusive.

The last increase to the federal gas tax was authorized in 1993. Since then, it has remained steady at 18.4 cents per gallon. Revenues from the federal gas tax support the Highway Trust Fund—a program modeled after the Social Security Trust Fund—which provides about 80% of the funding for roads, highways, bridges, tunnels and public transit.

As such, states are looking for ways to bridge their shortfalls. Seven states—Florida, Georgia, Indiana, Michigan, Nebraska, North Carolina and Pennsylvania—opened 2017 with higher state gasoline taxes. Some of the increases were modest (less than a penny per gallon) and based on automatic adjustments to the tax rate. But in other states, the increase was substantial. Pennsylvania hiked its tax rate by 7.9 cents per gallon (for a 58.3-cents-per-gallon tax) and Michigan increased its gas tax by 7.3 cents per gallon (for a 37.84-cents-pergallon tax).

Absent a federal gas tax increase for the past 24 years, states have been grappling to cover increasing road maintenance costs. As the infrastructure continues to age, the maintenance demands increase, but the federal gas tax does not adjust for inflation.

Alaska, Louisiana, Mississippi, Oklahoma and Tennessee are debating increases of their own. Other states are redirecting monies from other funds, depending on funding from the federal government or private project funding to shore up their transportation coffers.

In addition, improved fuel efficiency, an increase in electric vehicles (EVs) and hybrid vehicles (HVs) and a shift of population from the suburbs to urban areas have resulted in lower fuel consumption, and therefore, lower gas tax revenues. According to data from the U.S. Energy Information Administration (EIA), fuel consumption in 2010 was 18% lower than it was in 1970. FMNMagazine

”

Most people agree that increasing the federal gas tax rate isn’t a sustainable solution given the trend toward increasing fuel efficiency and more carbon-neutral automotive technologies. The following section highlights a few of the alternative ideas on the table for funding roads in the future. 17

FuelMarketerNews.com

FUELS & SUPPLY

Roadway Funding and the Troubled Gas Tax

Paving the Way for a New Funding Structure Revise the Tax Structure: Increased Fees:

Some states are revisiting the structure of their motor fuel excise tax to create more parity between fuel types. In this instance, the tax rate would be adjusted for the energy content of the fuel being taxed. It is thought that this approach will enable the fuel tax rates to better correlate with the distance a vehicle will travel on a given volume of fuel, whether it be petroleum-based or an alternative fuel. Some states are looking at raising all vehicle registration fees. For instance, Tennessee is considering increasing vehicle registration fees by $5, while a bill proposed in Indiana would add an extra $15 registration fee. In addition, several states are either implementing or exploring charging fees for vehicles that utilize alternative fuels, particularly electricity. The thought behind this is that fees for EVs will substitute the gasoline taxes these car owners either don’t have to pay, or are paying less of compared to their gasoline-purchasing counterparts. Ten states have already implemented annual EV fees that range from $50 – $300, and at least six others—Indiana, Kansas, Montana, New Hampshire, South Carolina and Tennessee—have introduced bills this year that would add fees for electric cars.

Vehicle Miles Traveled (VMT):

In 2015, Oregon launched a limited program for 5,000 volunteer motorists who are charged 1.5 cents per mile driven. California and Colorado launched similar pilot programs in 2016, and Illinois began a limited program for trucks in 2015. In Colorado’s pilot program, a motorist driving a hybrid vehicle 1,000 miles per month pays $84 a year more than they are paying now in gas tax, while the owner of a light-duty truck pays $12 less a year than they are paying in gas taxes. Owners of pure EVs pay about $200 a year. This type of road-use fee structure has taken hold abroad, where several European countries—including Germany, Poland and Switzerland—have implemented VMT fees for trucks. Other countries are looking to adopt similar programs.

More Tolls:

More than half of the country’s states already have statewide or regional tolls. Recently, several states have also developed highoccupancy toll (HOT) lanes, which allow vehicles that do not meet the minimum occupancy requirement for high-occupancy vehicle (HOV) lanes to use these lanes with payment. Missouri is considering a variation on this theme: “managed lanes.” These lanes would provide motorists the ability to leave a congested— albeit free—lane for a new toll lane. In addition, the current federal administration has suggested a public/private partnership for infrastructure projects; presumably, any such project for highway improvement would have a tolling component to reimburse the private partner. One challenge facing this funding approach is that investors are unlikely to be enticed by the meager amount of toll revenue generated in rural areas, which comprise over 95% of U.S. land according to the U.S. Census Bureau. FMNMagazine

FuelMarketerNews.com

What becomes of the gas tax will directly impact fuel consumption. In this highly competitive market, fuel retailers who respond to changing consumption patterns sooner rather than later will position themselves for a sustainable future.

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Navigating the Road Ahead These alternative approaches to road funding have the potential to shape future consumer automotive preferences and driver behavior. Therefore, they would also influence the fuels that will be in demand on the forecourt. Will consumers be willing to adopt EVs on a wide scale if the cars have higher costs of ownership? Will motorists be willing to pay a VMT tax for their lengthy commutes? Will they pursue public transportation, or perhaps relocate to reduce the distance and their automotive expenses? What becomes of the gas tax will directly impact fuel consumption. In this highly competitive market, fuel retailers who respond to changing consumption patterns sooner rather than later will position themselves for a sustainable future. However, a situation where certain states increase gas taxes while other states eliminate gas taxes in favor of alternative taxes will lead to unbalanced competition at the borders, and will greatly affect petroleum marketers with operations in multiple states. n

Joe O’Brien Joe is Vice President of Marketing at Source™ North America Corporation. He has more than 20 years of experience in the petroleum equipment fueling industry. Contact him at JObrien@SourceNA.com.

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$ $ $ $ $ $ $ $ $ $ $

by Dr. Nancy Yamaguchi

California Passes Fuel and Vehicle Tax Bill “I like to pay taxes. With them, I buy civilization.” —Said No One Ever Admittedly, the “Said No One Ever” part was added by the author. The quote is accepted as a paraphrase of, “Taxes are what we pay for a civilized society,” written by U.S. Supreme Court Justice Oliver Wendell Holmes, Jr., in a dissent he wrote in 1927. It has been paraphrased and requoted in various forms, perhaps because the sentiment used to be common in a way that it no longer is.

FUELS & SUPPLY The topic of tax increases is contentious, and it seems even more contentious when the tax increase affects gasoline. Yet California is now planning an increase in taxes on gasoline and diesel. The tax increase will be a 12-cents-per-gallon excise tax on gasoline, a 20-cents-per-gallon excise tax on diesel and an additional 4% increment sales tax on diesel, to start November 1, 2017.

California Governor Jerry Brown made a personal appeal to the Senate to support this bill, acknowledging the political difficulties of increasing taxes but speaking strongly for the need to repair transport infrastructure. A state assemblyman is already starting an initiative to repeal the bill.

The bill proposes a new Transportation Improvement Fee (TIF), which escalates based on the market value of vehicles. It also proposes a Road Improvement Fee of $100 per vehicle for zero-emission vehicles (ZEVs), which have been exempt from certain fees to promote their adoption.

As a quick calculation of costs related to gasoline:

• California used 15,297,030,909 gallons of gasoline in 2016, according to the Board of Equalization.

As a practical side note for fuel marketers and fuel purchasers, an increase in California’s motor fuel taxes is likely to cause a surge in fuel buying at stations just before the border crossing.

• California’s population is estimated at 39.35 million.

• Gasoline consumption per capita is therefore

The bill is SB-1 “Transportation Funding (2017 – 2018),” and the full text is available at LegInfo.Legislature.ca.gov. The following summary is taken from the Assembly Floor Analysis:

388.74 gallons per year.

• An increase of 12 cents per gallon in gasoline tax equates to $46.65 per person per year.

SUMMARY: Increases several taxes and fees to raise the equivalent of roughly $52.4 billion over ten years in new transportation revenues and makes adjustments for inflation every year; directs the funding to be used towards deferred maintenance on the state highways and local streets and roads, and to improve the state’s trade corridors, transit, and active transportation facilities. Specifically, this bill:

1) Increases a number of taxes and fees for transportation purposes: a) Increases the excise tax on gasoline by $0.12 per gallon, starting November 1, 2017. b) Increases the excise tax on diesel fuel by $0.20 per gallon, starting November 1, 2017. c) Increases the sales tax on diesel fuels by an additional 4% increment, starting November 1, 2017. d) Creates a new annual Transportation Improvement Fee (TIF), starting January 1, 2018, based on the market value of the vehicle with the fee range described below:

Naturally, since not all people drive, the cost for active motorists will be higher. However, motorists may find the “user-pays” tax palatable if the revenue is strictly devoted to the task of fixing roads. In the past, monies collected for transportation purposes were diverted because of a state budget crisis. The language of SB-1 is being crafted to prevent diversion. It is noteworthy that President Donald Trump recently stated that he would consider raising the federal tax on gasoline to help pay for some of the infrastructure spending he promised during his campaign. Although President Trump promised to cut taxes, he must now find the money to pay for the ambitious projects he has proposed. It would be an interesting moment in political history to find President Trump and Governor Brown both advocating higher taxes on gasoline. n

i) $25 per year for vehicles with a market value of $0 – $4,999; ii) $50 per year for vehicles with a market value of $5,000 – $24,999;

Dr. Nancy Yamaguchi

iii) $100 per year for vehicles with a market value of $25,000 – $34,999; iv) $150 per year for vehicles with a market value of $35,000 – $59,999; and, v) $175 per year for vehicles with a market value of $60,000 and higher e) Creates the Road Improvement Fee of $100 per vehicles for Zero-Emission Vehicles (ZEV)s, as defined, starting in 2020 for model year 2020 and later.

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Nancy is an author and petroleum industry expert specializing in the advanced analysis of energy markets. Dr. Yamaguchi is the Senior Markets Analyst for EPIC News+Data and the President of Trans-Energy Research Associates, where she focuses on a wide spectrum of fuel-related issues such as economics and the environment. She possesses a strong interest in global oil industry, including supply, demand and trading trends, as well as transport, refining, product blending, alternative and reformulated fuels, product quality and price behavior. Dr. Yamaguchi can be reached at NYamaguchi@Trans-Energy.com.

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The North American DEF Market in 2017:

Increasing Focus on Logistics and Declining End User Prices— Despite Higher Usage in New Trucks

The North American diesel exhaust fluid (DEF) market is a mature market that is changing to accommodate stricter fuel economy standards and a more complex supply network to reduce logistics costs. Strong DEF market growth rates are being seen on the back of market fundamentals, such as commercial vehicle sales growth and stricter emission legislation for diesel engines. In 2016, approximately 620 million gallons of DEF were consumed in the U.S. and Canada. Integer Research forecasts that DEF consumption will more than double, exceeding 1.5 billion gallons/year by 2025. Emission legislation is the main driver for DEF demand in North America. Other than mitigating nitrogen oxides (NOx) and particulate matter, the focus has shifted to reducing carbon dioxide (CO2) emissions, which is achieved through tighter fuel efficiency standards.

In 2016, approximately 620 million gallons of DEF were consumed in the U.S. and Canada. Integer Research forecasts that DEF consumption will more than double, exceeding 1.5 billion gallons/year by 2025. DEF consumption by vehicles is directly related to fuel consumption. For instance, a Class 8 truck (gross vehicle weight rating [GVWR] above 33,000 pounds) has a typical DEF dosing rate equal to approximately 3% – 4% of its fuel consumption. New fuel economy standards are encouraging manufacturers to rely more on selective catalytic reduction (SCR) rather than exhaust gas recirculation FMNMagazine

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(EGR). Integer forecasts that DEF dosing could begin to approach 7% of diesel consumption after 2026 following the mandatory enforcement of greenhouse gas (GHG) Phase 2 requirements. These new emission standards are expected to continue to drive DEF consumption in North America in the coming years, which will increasingly be met by a more complex localized network of small-scale DEF producers operating small dissolving facilities. In recent years, this has been the trend as DEF producers fight to compete with falling DEF prices by streamlining logistical costs. On the other hand, drivers are yet to see the real benefits of using DEF. The ratio between DEF prices and diesel prices is the key factor here, and DEF prices have been on a downward trend since mid-2015—albeit briefly rising at

Raw material and production costs are largely equal between DEF producers, thus the main competing cost is logistics.

the end of 2016—in line with falling global urea prices. Integer reported a 23% fall in full truckload (FTL) delivery prices across this period with average FTL prices falling to US$1.31/gallon in 2016—down from US$1.70/gallon in 2015. This fall in DEF prices has squeezed margins and forced the DEF market to streamline costs to stay competitive in an increasingly crowded market. By its own nature, raw material and production costs are largely equal between DEF producers, thus the main competing cost is logistics. In North America, this has led to several small-scale plants opening in highly competitive coastal states in the Southeast and Gulf Coast. Together, these factors have added some complexity to the DEF market while also supporting its growth as DEF becomes more reliably available and cost efficient as the industry becomes more competitive.

More DEF Market Insights The North American SCR & DEF Forecast Service The North American SCR & DEF Forecast Service from Integer Research contains in-depth analysis on the SCR and DEF markets, focusing on legislation, demand, supply and pricing. Find out more and order the report securely online. For more information, email Publications@Integer-Research.com.

The Integer DEF Forum USA 2017 Join Integer and the DEF industry’s most influential stakeholders at The Integer DEF Forum USA 2017. Taking place in San Antonio, Texas, on September 26 – 28, the forum will feature a packed program, valuable networking opportunities and the launch of The DEF Awards 2017. For more information, email Conferences@Integer-Research.com. n FMNMagazine

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Fuel Price Discovery

Affordable Price. Flexible Subscriptions. EPIC Data Subscriptions for wholesale price discovery benefits buyers and sellers through increased pricing transparency. Wholesale jobbers and marketers—or anyone buying fuel, analyzing markets, benchmarking prices or selling on commercial contracts—will benefit from having access to EPIC Wholesale Fuel Price Reports. Expand your market view of rack cities and supplier terminal pricing while dramatically lowering your subscription fees! Affordability. EPIC is offering affordable wholesale pricing indexes to everyone in the motor fuels supply chain. Flexibility. EPIC Data Subscriptions are user-friendly, cost-effective and facilitate flexibility in sharing pricing data.

With over 4 million miles of roads crisscrossing the United States—from 15-lane interstates to residential streets—roads are among the most visible and familiar forms of infrastructure. In 2016 alone, U.S. roads carried people and goods over 3 trillion miles—or more than 300 round trips between Earth and Pluto. Source: American Society of Civil Engineers (ASCE) 2017 Infrastructure Report Card

Bottom Line:

Like the circulatory system of the human body, the U.S. road system transports the “lifeblood” of the nation.

at FuelMarketerNews.com

by Brad Hoffman

VENDOR VIEWPOINT:

Addressing Corrosion and Microbial Growth in Today’s Fuel Environment The U.S. Environmental Protection

Agency (EPA) began to phase in ultra-low-sulfur diesel (ULSD) in 2006, with stringent regulations intended to virtually eliminate sulfur from diesel fuel and thereby reduce sulfur dioxide emissions. The EPA order was to reduce the sulfur content of all diesel fuel sold from a one-time high of as much as 5,000 parts per million (ppm) to a maximum of 15 ppm by 2014. Highway diesel was required to meet the standard by 2010.

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Unfortunately, a problem quickly emerged. Water is typically found in all diesel tank systems. The sulfur in diesel served as a critical biocide that minimized microbial growth. So, almost immediately, the tanks containing diesel fuel with virtually no sulfur started showing signs of aggressive microbial growth and corrosion— the damage that once took many years to emerge began surfacing in a matter of months.

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Last summer, the EPA released the first major study on this aggressive corrosion in ULSD tank and dispensing systems. Overall, the findings were staggering: 83% of tank systems in the study exhibited moderate to severe corrosion. However, another finding was potentially the key to the rapidly developing issue. In the study, the fuel in each tank was sampled and tested. Ethanol was present in 90% of the tanks sampled. Ethanol is not blended with ULSD— at least not on purpose. It appears that ethanol’s prevalence in diesel tanks is largely due to crosscontamination occurring when transport tankers switch from ethanol-blended gasoline in one run to ULSD in the next. It takes only trace levels of ethanol for certain bacteria to create the acid that appears to be destroying these diesel fueling systems.

RETAIL OPERATIONS

Addressing Corrosion and Microbial Growth in Today’s Fuel Environment

So, What Is There to Do?

Assessment: Automatic tank gauge (ATG) inventory reports are run for each tank. Tanks are also manually sticked for product level and bottom water at multiple risers, verifying the low end of the tank. A bottom sample of fuel is collected at multiple risers for comparison in the ﬁltration process.

If you can see corrosion or microbial growth on your underground storage tank (UST) system components, or your dispenser ﬁlters are becoming clogged more frequently, it’s time to look further and assess the severity of the situation.

Sampling can verify “before” and “after” condition

Application of Biocide: If microbial growth is present in the fuel or water bottom, a biocide treatment may be employed. A culture test can be utilized to conﬁrm the type of growth. If it’s the ﬁrst application in the tank, it may be “shocked” with a high dose of biocide—per the manufacturer’s instructions—similar to how a swimming pool can be “shocked” with chlorine to get rid of algae. Biocides may take 24 hours or more to impact the microbes in the tank, though some claim to work within a few hours.

A high-pressure pump with custom nozzles is used to clean all tank surfaces

Sampling the fuel will likely determine the extent of microbial growth inside the tank. Next, a thorough tank cleaning and ﬁltration of the existing fuel is typically in order. Several companies provide fuel ﬁltration services. At Tanknology, our service is called FuelPure™, and the following processes demonstrate how we approach it.

Bottom Sweep: In some cases, a bottom sweep process may be employed once the biocide has killed the microbial growth in the tank. This sweep process is used to extract heavy debris and dirty product along the bottom of the tank.

The objectives include removing particulates, water, sludge, algae and other microbial growth, as well as visibly dirty fuel, and returning the tank system to a more optimal operating condition.

FuelPure™ Fuel Filtration and Polishing Process: Fuel is drawn through an initial filtering process that removes the heavy tank bottom contaminants and water. The types and number of contaminants are assessed, and the contaminated fuel is passed through a series of filters. The filters remove suspended water and polish the fuel in multiple stages, depending on the level and density of the contaminants. During the process, the intake hose is repositioned throughout the tank to ensure maximum fuel and tank cleanliness. Incorporation of Remote Video: Tanknology also offers a unique service called TankClean™, which is a video-guided tank cleaning process. A proprietary camera is placed inside the tank and is remotely operated by a technician, providing a live view of the entire cleaning process on a color monitor. It provides a clear look at the condition inside the tank before, during and after the cleaning. Because the technician can see inside the tank, the cleaning process is precisely focused on the problem areas. When the cleaning is complete, a digital file of the video is provided to the operator so they can see the before and after comparison for themselves.

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“”

A Preventive Maintenance Approach Once your tank system and fuel have been cleaned and polished, it’s time to implement a strict and comprehensive preventive maintenance (PM) approach to fuel management.

Water is the enemy of fuel and tank systems. Many of the problems discussed in this article can be avoided with an intensive focus on detecting and eliminating water from your UST system.

The number one rule of dealing with fuel in the age of ethanol and ULSD is minimizing water. Water is the enemy of fuel and tank systems. Many of the problems discussed in this article can be avoided with an intensive focus on detecting and eliminating water from your UST system. A comprehensive site inspection, fuel testing and treatment program should also be created to ensure that the fuel and tank systems remain in optimal condition. Many of our customers are leveraging the upcoming requirement for monthly site walk-throughs by using a trained professional to also take multi-point fuel samples and periodically treat their tanks with biocide. Given the composition of today’s fuels, the unfortunate reality is this: if your fuel and tank systems aren’t being closely monitored and carefully managed, severe microbial growth and corrosion is a matter of when, not if. n

at FuelMarketerNews.com

Brad Hoffman Brad is Vice President of Engineering, Research & Development for Tanknology Inc. of Austin, Texas, the largest UST compliance services company in the world. Brad is a 28-year industry veteran, formerly an engineer and program manager for Exxon. He serves on a variety of PEI and API technical committees. Brad can be reached via email at BHoffman@Tanknology.com.

VENDOR VIEWPOINT:

Do You Know the ABCs of the EPA 2018 UST Regulation Deadline? by Peter J. Cochefski

It was 1988 when the world of retail fueling in the United States changed forever—and for the better. That’s when the U.S. Environmental Protection Agency (EPA)—in response to the shocking revelation that thousands of underground storage tanks (USTs) were leaking petroleum products and contaminating groundwater supplies—introduced a program, which included technical compliance standards that more stringently regulated USTs containing petroleum or other hazardous materials.

Basically, those regulations set operating requirements and standards pertaining to tank design and installation, leak detection, spill and overfill control, corrosion protection, corrective actions and tank closure. Those landmark regulations—with a few tweaks by the EPA regarding leak detection, training, required inspections and compliance reporting tied into the Energy Policy Act of 2005—resulted in a massive cleanup of leaking USTs and served the industry extremely well for nearly 30 years, or until 2015. That’s when the EPA announced the first major changes to its UST regulations since the Reagan administration, all of which will have a profound effect on how the owners and operators of retail fueling sites will conduct their businesses going forward.

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RETAIL OPERATIONS

What You Need to Know The most important thing to know is, by October 13, 2018—a date that seems to be in the distant future, but in the world of regulatory compliance is actually just around the corner—all fueling sites must either be in compliance with the EPA’s new regulations, or have produced written proposals showing how they plan to eventually come into compliance. So, what’s new? The most overarching aspect of the new UST regulations is that there will now be a set of national standards with which every fueling site must be in compliance. In the past, while there were national standards established, many states had their own individual UST compliance standards, which superseded the national regulations. The new national standards will also bring those fueling sites located on Indian lands, which had been autonomous in the past and subject only to tribal regulations, under the national compliance umbrella. Here are some of the major new regulations that will become law next year:

The program was designed to verify that a significant number of employees at a fueling site have completed some level of state or third-party training, and have been certified to work at a location featuring USTs for retail fuel storage and dispensing.

• Spill bucket testing will be required every three

years, unless the UST system is outfitted with double-wall spill buckets where the interstitial space is tested regularly. Some states, such as California and Maryland, already require spill bucket testing every year.

Based on the amount of training completed, employees will receive one of three certification designations:

• Class A: Have primary responsibility to operate and

• Sump and under-dispenser containment systems

must be tested every three years if the system uses interstitial monitoring of the piping as its main form of leak deterrence.

maintain the UST system and typically manage resources and personnel to achieve and maintain compliance. Training for Class A operators should give the operator the ability to make informed decisions regarding compliance with regulatory requirements.

• Testing must be done within 30 days after the repair of any component in the spill protection, overfill containment and secondary containment areas of the UST system, regardless of whether or not an actual product release occurred.

• Class B: Have daily responsibility for on-site

operation and maintenance of UST systems. Training for Class B operators should provide an in-depth understanding of the operation and maintenance aspects of the UST system.

• Overfill prevention equipment inspections will be required every three years, except in states like Mississippi, where they are required annually.

• Class C: Daily on-site employees who are generally

the first line of response to events that may be emergency conditions. Training should allow the Class C operator to take appropriate action in response to UST-related emergencies or alarms that are caused by spills or releases from a UST system.

Essentially, these new testing regimes will help ensure that all spill buckets, overfill devices and secondary containment systems are tested on a regular basis, and that they are installed and working properly. Also, they will ensure that secondary containment systems relying on sump sensors as a way of testing for piping leaks are operating effectively.

No matter the level of certification an employee has achieved in the ABC Operator Program, all must be able to perform and document monthly walk-through inspections of the UST system to guarantee all sumps, spill buckets and secondary containment areas are dry.

One part of the updated UST regulations that will receive emphasis is the ABC Operator Program. This training program was part of the Energy Policy Act of 2005, but its enforcement will become stricter under the new regulations.

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By October 13, 2018—a date that seems to be in the distant future, but in the world of regulatory compliance is actually just around the corner—all fueling sites must either be in compliance with the EPA’s new regulations, or have produced written proposals showing how they plan to eventually come into compliance.

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RETAIL OPERATIONS

“

Do You Know the ABCs of the EPA 2018 UST Regulation Deadline?

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All fueling site operators should take advantage of the ABC Operator Program by having, if possible, at least one A-level, one B-level and two C-level certified employees on-site at all times.

What You Can Do

Realizing the importance of the EPA’s new UST regulations, and the consequences that can result if they are not met or followed, operators must be proactive in making sure their sites are up to code by the October 13, 2018, compliance deadline. This means operators may have to identify and work with outside service providers that possess the expertise, experience and compliance systems that have been specifically designed to help fueling sites come into compliance with the new regulations.

The Road to Compliance The revelations of 1988 were an obvious shock to the retail fueling system. In response, fuel site operators—driven by the EPA’s strict UST regulations—dug in and cleaned up their sites, ultimately producing a safer fueling process. In 2018, three decades since the implementation of those landmark UST regulations, retail fuelers are again being asked to do what’s best for their customers and the environment. The new regulations that will go into effect in late 2018 are an extension of those that changed the fueling industry in 1988, and they are a logical next step in ensuring that the fuel storage processes and systems at retail sites reach even higher levels of safety. However, that will only be possible if site operators take the necessary strides to make sure that new testing, training and inspection regulations are met. By working with a company able to guide them through the regulation and compliance minefield, retailers will help guarantee that their operations are not dogged by fines or, in the ultimate worst-case scenario, marked for closure. n

Most crucially, all fueling site operators should take advantage of the ABC Operator Program by having, if possible, at least one A-level, one B-level and two C-level certified employees on-site at all times. To make this happen, many compliance service providers will work with third-party training agencies to make sure all retail site employees achieve at least some level of certification in the ABC Operator Program.

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Peter J. Cochefski Peter is the Director of Ryder Fuel Services, Houston, a subsidiary of Ryder System, Inc. He can be reached at 281-647-8900, ext. 222, or Peter_Cochefski@Ryder.com. Ryder Fuel Services is a provider of fuel management services that focus on compliance management, remote monitoring, alarm management, service management, fuel management and supply and environmental best management practices. For more information, please visit Ryder.com.

Aside from that, the best compliance service programs will offer clients a dedicated account manager who can guide site operators through what can often be a complicated process, including advanced electronic notification of expiring documents, daily electronic notification of compliance deficiencies, detailed compliance reporting, online compliance tools and management reporting.

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Shields, Harper & Co.

Shields, Harper & Co. was established in 1917 and its headquarters are in Martinez, California. The company’s mission is to supply the fuel handling industry with the best products, knowledge and industry experience. Shields, Harper & Co. is the largest petroleum equipment distributor on the West Coast with eight branches located throughout California, Arizona and Nevada. The company has been supplying fuel handling equipment to service stations, c-stores, supermarkets, marinas, airports, government municipalities and commercial users for 100 years.

Shields, Harper & Co. was founded by two newly minted University of California, Berkeley graduates— Harold Shields and Locke Harper— who were looking for business ideas. After discovering that rubber fuel transfer hoses were difficult to find for fuel marketers, the pair began buying and reselling them to Standard Oil Co. of California, now commonly known as Chevron. Thus, Shields, Harper & Co. was born. The business quickly took off and the need for a warehouse immediately

During that time, the organization has gone through various stages of ownership that have helped them evolve with the ever-changing marketplace. Currently, they operate as a California corporation and are a federally chartered employee-owned company. Their sales cover markets in California, Arizona, Nevada, Oregon, Washington, Alaska and Hawaii.

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became apparent. In 1919, the company moved to its first location at 455 Howard Street in San Francisco. As the company grew, the headquarters were relocated to Oakland, California, and branches were established in Los Angeles, Seattle, Portland and Sacramento. In 1946, the company employed more than 100 people and represented 40 of the industry’s finest manufacturers. In 2010, after 62 years of business in Oakland, the headquarters were moved to a larger, more modern location in Martinez, California, where they currently operate. Presently, there are seven other warehouse locations covering the western United States in Fresno, Las Vegas, Orange, Phoenix, Reno, San Diego and West Sacramento. The company now represents more than 50 of the industry’s preferred manufacturers. n

MAKING FLEET CARDS

WORK FOR YOU

Fleet card programs have been available for years, but technological changes

continue to affect the petroleum industry, and its focus on efficiencies in fueling practices is ever-evolving. Thus, it’s imperative to evaluate fleet card program “best practices” to make sure your program is working for you.

by Maura Keller As fleet card programs have evolved in recent years, so too have the providers and, subsequently, the end users. For the fleet operator, the benefits keep expanding. Today, there are greater controls and data available not only through card programs, but also through technologies like telematics, which allow fleets to get a much clearer picture of how their vehicles and drivers operate and how they can become more efficient and cost-effective. According to Glen Sokolis, Owner of Sokolis Group, a fuel management and consulting firm, just about any company can realize benefits from using a fleet card. “As the size of a fleet grows, so does the need for greater control over fuel purchasing, which is one of the main benefits of using a fleet card,” Sokolis explained. There are very few drawbacks to using and subsequently offering a fleet card program, but some businesses may find it burdensome to set up and maintain the cards as drivers and vehicles change. “In addition, some fleet cards may charge fees, which could be based on each card per month, each transaction or some other formula,” Sokolis said. “However, the benefits can easily outweigh any drawbacks.” FMNMagazine

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RETAIL OPERATIONS to Eric Lind, President of Commercial Fueling Network (CFN) and Pacific Pride, two of FLEETCOR’s cardlock petroleum marketer service brands, business owners cite the per-mile vehicle expense and hourly wages wasted when drivers seek a specific fuel brand or location.

“We wouldn’t be the company we are today without a fleet card program.” James Pederson, Associated Petroleum Products

“For fleets that need the option of more fueling locations, one of the strengths of the CFN and Pacific Pride systems is the ability for marketers to let fleets access the Fuelman network,” Lind noted.

The controls over fuel purchasing can be tailored to what kind and how much fuel can be purchased, along with when and where it can be purchased. The detailed data captured with a fleet card provides significant insight into the number of fuel purchases, the price per gallon and where the fuel was purchased. When properly monitored, these data points help promote an environment that reduces the potential for theft or fraud due to the added visibility and awareness of the existing controls.

Having a convenience card that offers more fueling options allows marketers to capture market share from other fuel card purveyors. Industry research shows the average fleet carries two to three cards to ensure fuel availability everywhere they do business. “Upon launching the convenience card concept, CFN and Pacific Pride marketers picked up volume from existing customers,” Lind said. “This volume represents sales formerly purchased on competitive fuel cards.”

Cards Expand the Cardlock Network

Higher prices have also made fleets more attuned to the cost of fraudulent fuel charges. Fleet cards can be set up to align with the needs of a particular fleet. For instance, they can allow purchases only during the hours of the day and days of the week in which the fleet operates, and only allow the purchase of specific products that a vehicle uses.

With the advent of higher fuel prices, fleet operators became much more sensitive to how they procure fuel. In focus groups, business owners and fleet managers speak candidly about the need for convenient fueling locations. According

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RETAIL OPERATIONS

Making Fleet Cards Work for You

Bridging Cardlock and Retail Associated Petroleum Products (APP), a company that provides high-quality petroleum products and services, has had a fleet card program in place since 1988. They were one of the original CFN marketers in the Pacific Northwest, according to James Pederson, Vice President, Commercial Sales at APP.

“Even when they’re off the clock, we’ve found that commercial drivers are loyal customers who purchase out of uniform too. In fact, 79% are ‘very likely’ to visit the brand in the future for fuel—either for work or on personal time.”

“Our business has grown and evolved in unison with the national expansion of CFN and Pacific Pride,” Pederson explained. “We market to all types of fleets, but we particularly concentrate on fleets of five or more vehicles and/or monthly gallon sales of 1,000 or more.”

Peggy Watson, WEX Inc.

At the Retail Site

When we talk about the advantages of a fleet card program, we’re really talking about two things: higher transaction volume and loyalty. “Like loyalty programs for retail consumers, convenient locations, easy access and amenities matter to drivers,” explained Peggy Watson, Vice President of Product at WEX Inc., a global leader in corporate payment solutions whose roots began with fleet card payments in 1983. “Like you, these businesses are busy with their day-to-day routines. Making it easy to do business means having one less thing to get in the way of people doing their jobs.” It’s important to note that a commercial driver’s average monthly transaction total is much greater than that of a typical consumer. Statistics show that 83% of commercial drivers fuel more than once a week, and 37% also make in-store purchases. Pederson views fleet cards as the introductory platform to APP’s entire product line.

“Even when they’re off the clock, we’ve found that commercial drivers are loyal customers who purchase out of uniform too,” Watson said. “In fact, 79% are ‘very likely’ to visit the brand in the future for fuel—either for work or on personal time. In addition, 85% are ‘very likely’ to visit the brand in the future for the c-store, either for work or on personal time. Fuel cards amplify this through loyalty programs that pull drivers back to the location again and again.”

“Fleet cards are a natural ancillary product to our commercial lubricant and chemicals businesses and overnight wet hosing operation,” Pederson continued. “We are headquartered in Tacoma, Washington, an industrial area and major shipping hub, so the fleet card business was a natural fit for us.” What’s more, retail fuel sales are labor intensive and offer lower margins compared to commercial gallons. In contrast, commercial sales offer greater efficiencies as more gallons are sold per transaction. As such, APP’s average commercial transaction is close to 40 gallons, which is four times more than the average retail customer’s transaction.

Lind agrees that the business potential for a fleet card program is tremendous. “Industry research shows that only 40% of fleets use a major oil or traditional fleet card. Many fleets still purchase via cash or traditional bank cards. These do not offer purchase controls or exception reports for small business owners to manage their fuel expenses, allowing unnecessary costs to slip through while the potential for savings goes unseen,” Lind explained. “Few businesses offer such an open market opportunity.”

“CFN and Pacific Pride both allow branding of our retail sites, allowing us to have more in-network, higher-margin gallons,” Pederson added. “The ability to send our commercial customers to our retail service station dealers helps support their businesses as well.”

Fleet card programs also provide the ability to move highmargin commercial fuel gallons via a proven business system that builds customer loyalty.

Thanks to their robust fleet card program, the company has grown their total sales via new fleet card customers and existing customers as they are able to offer fleets nationwide fueling.

“Fleet card customers also open the door for ancillary sales, especially for marketers in the commercial lubricant and retail convenience store businesses,” Lind noted. “We continue to see significant business potential for marketers in both the retail and commercial arenas.”

“We’ve also increased sales by cross-selling our fuel and lubricants businesses,” Pederson noted. “We wouldn’t be the company we are today without a fleet card program.” FMNMagazine

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RETAIL OPERATIONS

Making Fleet Cards Work for You

Best Practices

As with any business, the first key to success with a fleet card program is location, location, location. FLEETCOR’s highest volume sites are located in industrial areas or major manufacturing and shipping hubs. “Having a site in close proximity to major freeway arteries also enhances the ability to serve large over-the-road fleets,” said Lind. “Agriculture is another big driver for diesel fuel sales—both on- and off-road.”

“Lot size is important. Cardlock facilities should feature large curb cuts for easy ingress and egress. The site also has to have overall lot dimensions to support the turning radius of large trucks.”

Eric Lind, Commercial Fueling Network and Pacific Pride

The additional drivers for diesel fuel sales are construction and freight. FLEETCOR has seen higher volume growth across the West and Sun Belt, which reflects the population growth and economic development in those areas.

The most common mistake fuel marketers make as it relates to fleet cards is trying to compete with other fleet cards exclusively on price. “Another common mistake is not setting up the cards with purchase controls that align with the needs of the fleet,” Lind advised. “The card controls and exception reporting are not only tremendous selling features, but also serve to manage credit exposure and prevent fraud.”

It is imperative that fuel marketers extend their outreach in local communities to include commercial prospects, then target your message to include all the differentiators that will make your fleet card program stand out. “For us, those differentiators include convenience; for example, easy access to fueling stations where the card is accepted; savings and control delivered via detailed information about each transaction to reduce misuse or fraud; and 24/7 award-winning customer service,” Watson explained. “The effort required to acquire a commercial customer on your fleet card program pays dividends because the number of transactions and drivers is a multiplier.”

Complacency is also a trap that some fuel marketers fall into. Like in most businesses, competition is widespread. Marketers need to stay in contact with their customers and ensure their offerings are relevant and aligned with the competitive landscape. “Fleets have different needs based on their business models and where they travel,” Lind noted. “The mindset that a marketer can satisfy the fueling needs of every fleet within their proprietary network is outdated. This often forces the fleet to carry a competitive fuel card, which puts the overall business at risk.” n

To build efficiencies and economies of scale, initial marketing efforts should be concentrated on the marketer’s local area. The next phase involves marketing to fleets that are domiciled outside of a marketer’s local market area, but travel in and out for routine business. From there, the sky is limit. Additionally, remember that friction with retail customers can occur when marketers try to serve fleets with large vehicles at their retail locations. The adage that big trucks scare little cars continues to hold true in this case.

Inherent Best Practices That Help Fleet Cards Work

One potential solution is to designate an island in your current configuration that caters to larger trucks. Some retail site owners have added islands behind the station or on adjacent property, which is another option.

Have a clear business plan that answers the following questions: • What types of customers are we pursuing?

“Fleet customers are also likely to have higher c-store spend,” Lind said. “If a retailer can configure their site to accommodate fleet customers, the increased volume and inside sales can offset any impact to the traditional retail consumer.”

• Where are the customers located? • How do we market to customers? • How/where do we procure sales leads? • What are our fleet card policies (e.g., credit terms, statement frequency, card fees, etc.)?

Similar concerns can be found with cardlock siting. “Lot size is important,” Lind continued. “Cardlock facilities should feature large curb cuts for easy ingress and egress. The site also has to have overall lot dimensions to support the turning radius of large trucks.”

Employ dynamic and perpetual marketing practices—this ensures consistency in filling your sales pipeline with prospective customers. Establish card controls (i.e., purchase parameters) on all cards.

The availability of high-speed fueling is also a competitive differentiator compared to the retail environment. Remember, cardlock fueling is about enhancing business productivity and driver efficiency––ensuring that drivers refuel quickly without distractions and get the truck back on the road in minutes. FMNMagazine

Cross-sell lubricant and chemical sales with fleet card customers, and vice-versa.

FuelMarketerNews.com

Teetering or Tottering: Who Likes Low Gas Prices? Have you ever watched kids playing on a teeter-totter? Who is

having more funâ&#x20AC;&#x201D;the kid going up or the one going down? Or perhaps more importantly, which kid has greater influence over up versus down? You could ask the same thing about the oil market: Who likes prices going down, who likes them going up and what has the greatest influence on the movement?

by John Eichberger

FMNMagazine

FuelMarketerNews.com

RETAIL OPERATIONS Let’s set the stage: Consumers love cheap gas. More than three years of monthly consumer surveys conducted by the National Association of Convenience Stores (NACS) confirm this. With minimal variation, when prices go down, overall optimism about the nation’s economy goes up, and vice versa. At the same time, fuel retailers love cheap gas. Typically, margins are stronger, costs are lower and consumers have more money to spend inside the store. So, these groups want to be on the side of the teeter-totter that is going down. We also know that when fuel prices are low, consumers are less sensitive. While price remains their number one reason for selecting a fuel retailer, its influence is much lower than when prices are high. Consequently, consumers don’t shop around for the lowest price with as much dedication, they are not seeking every opportunity to reduce fuel consumption and they are not seriously considering more fuel-efficient or alternative-fuel vehicles. The impact? Interest in alternative fuels and vehicles wanes. Those advocating for the adoption of alternative fuel, or simply more efficient vehicles, prefer times when the teetertotter is up—higher gas prices increase interest in, if not the purchase of, these vehicles. The empirical evidence indicating consumers swapping their preferred class of vehicle in response to volatile pump prices is murky; for instance, Bubba isn’t trading his full-size pickup for a compact sedan, and the family with four kids won’t be ditching their SUV for a two-door coupe.

However, the adoption of alternative powertrains does seem to flutter with fuel prices. Let’s use hybrid vehicles as a case study. Since 2013, the retail price of gasoline has dropped from an annual average of $3.49 to $2.13 in 2016. Meanwhile, sales of hybrids have dropped 32% and their share of light-duty vehicle sales has dropped 40%. This is not a declaration that fuel prices drive the type of vehicles consumers buy—that’s too simplistic. However, it is an indication that consumers are not as easily able to justify paying the additional price for a hybrid vehicle when fuel prices are low; the return on investment (ROI) takes a lot longer and they don’t have a daily reminder to encourage them to crunch the numbers. When the retail price of gasoline eclipsed a national average of $4.00 per gallon in 2007, there was tremendous enthusiasm about alternative powertrains and fuels, and investments in research and development flourished as companies raced to satisfy the needs of the frustrated consumer. Now, it seems like

Those advocating for the adoption of

“”

alternative fuel, or simply more efficient

vehicles, prefer times when the teeter-totter

is up—higher gas prices increase interest in,

if not the purchase of, these vehicles.

you can hit the consumer on the head with a two-by-four and they may not even blink—they are having too much fun riding the teeter-totter down. But, if that teeter starts to totter up again, will consumers start looking around for cost-saving alternatives? And will those alternatives be available and affordable? A lot depends on how long fuel prices stay low, because that impacts how long automobile manufacturers can and will produce products that consumers aren’t looking for. Particularly in the absence of government mandates, who knows how sustainable it is? When we start talking about the government, the dynamics of this oldschool playground metaphor get interesting. For this discussion, let’s focus on oil, which is the primary force affecting the direction of the teeter-totter. On average, it represents more than 60% of the retail price of gasoline. So, when oil prices go up, the teeter-totter goes with them—but what is influencing the direction of movement? The oil market is incredibly diverse with too many players and influencing factors to really develop a comprehensive overview in such a small space. So, let’s isolate and focus on one critical factor: U.S. policy. Working to push the teeter-totter side down are administration policies affecting domestic oil production. Supporting Keystone and Dakota Access Pipeline projects, opening offshore oil production and expanding domestic energy production put the

RETAIL OPERATIONS

Teetering or Tottering: Who Likes Low Gas Prices?

Which kid—domestic policy or foreign policy—is heavier? The answer is not immediately clear, but whichever way the oil market teeters or totters, retail gasoline prices will ultimately follow.

“”

U.S. in a position to have a growing influence on global markets. Increased domestic production can apply downward pressure on increasing global prices, especially now that the U.S. is exporting oil into the global market.

domestic production increases. The introduction of more North American oil into the global market could yield lower oil prices, with the net effect being relative stability in the fuels market. Who wins?

However, working to prop the teetertotter up are those who do not like low oil prices. OPEC is working to cut production in an effort to drive prices higher, and several non-OPEC nations have been cooperating. Their economies depend on higher oil prices, and perhaps none more so than Russia—and when Russia needs something that the global market seems disinclined to provide, its neighbors start getting nervous (but that’s another story).

If the two forces acting on the teetertotter are equal, the consumer will prevail and continue to enjoy relatively low fuel prices. It is conceivable that U.S. production can be increased sufficiently to offset upward price pressure exerted by global tensions, thereby limiting the upward potential of the oil market and protecting consumers from a significant run-up in price (unless other domestic policies, such as protective trade measures, exert upward pressure on the market). In a market that might be stable at current prices, consumers will remain happy and non-fuel spending should stay strong.

Once alternative powertrains are competitive with traditional vehicles, they will be able to compete on their merits rather than relying upon the fickle fuel market for survival.

By contrast, in a stable market, alternative fuels and technologies will struggle if they do not improve their value proposition to convince consumers to make the switch. This dynamic is likely to slow their pace of market penetration, but will ultimately make them better and more competitive. Once again, this could yield significant consumer benefits.

On the playground, it really doesn’t matter which way the teeter totters— both kids have fun. Maybe in this metaphor, the consumers are the kids and, if neither of the competing forces in the oil market gain a significant advantage, the consumer could reap the benefits. Only time will tell which carries more influence: domestic or foreign policy. n

Enter into the equation an unlikely potential ally of those seeking higher oil prices: U.S. foreign policy. The price of oil is determined primarily by traders on Wall Street buying and selling futures contracts. These prices are based upon actual and anticipated changes in supply and demand. We have learned that military conflicts in the Persian Gulf region lead to increased volatility in the markets. If more assertive U.S. policy initiatives lead to increased tension in oil producing regions of the world—or prompt a more assertive foreign policy by Russia—it is conceivable that this tension would exert upward pressure on oil markets.

John Eichberger

So, which kid—domestic policy or foreign policy—is heavier? The answer is not immediately clear, but whichever way the oil market teeters or totters, retail gasoline prices will ultimately follow.

For more information about the Fuels Institute or how you can get involved, contact John Eichberger, Executive Director, at JEichberger@FuelsInstitute.org or 703-518-7971. The Fuels Institute is constantly monitoring and evaluating market developments. To join the conversation and share your insights, contact Director of Operations Donovan Woods (DWoods@FuelsInstitute.org) and sign up to receive Fuel Institute’s monthly e-newsletter, Fuel for Thought.

This playground metaphor, while perhaps antiquated, is real—if global unrest yields higher oil prices, the incentive for FMNMagazine

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Tomorrow’s Rack PriceToday

Affordable Price. Market Transparency. EPIC FutureRack wholesale fuel price forecasts are calculated for over 200 delivery markets (racks) across the United States. These reports show the expected average wholesale price for gasoline and diesel fuel for the following day in each rack market. Based on proprietary methodology that incorporates a variety of intraday market data points, each report is rack market-specific. What’s in it for you? • Access to the Live Data Dashboard– You can view forecasts based on the most up-to-date wholesale rack pricing available for your location. • Market forecasts delivered twice daily via email– The 2:30 p.m. report reflects any intraday adjustments subsequent to the 11:30 a.m. report.

What can you do with EPIC’s pricing data? • Anticipate wholesale rack price moves across multiple rack-city markets • Optimize daily operational dispatch and terminal loading strategies • Predict retail street price movement for the coming day • Schedule bulk deliveries with suppliers to capture savings What else do you get? • Gasoline Average Wholesale Price Forecast • Diesel Fuel Average Wholesale Price Forecast • Relevant Spot Market Indicators • Energy Market News Summary

The market has come a long way since the days when Big Oil dominated supply; they released just one price change per month and there were only five fuel products at the terminals. Now, price changes happen intraday and intermittently for hundreds of product formulations, almost in real time, depending on various dynamics in the marketplace. With posted rack prices, volumetric discounts, formula-based prices and private contracted prices, this complexity and sheer volume will continue to create a lack of transparency for fuel buyers and sellers alike.

Bottom Line:

The complexity of wholesale fuel pricing at the rack is trending upward in 2017 and will continue to fragment the market for years to come.

at FuelMarketerNews.com

WHOLESALE & FLEET OPERATIONS

Three Ways to Benefit from Distilled Biodiesel

Background checks are regulated, but apart from the necessity of following regulations, background checks done correctly can help fleet operators limit liability and expenditure of resources on hiring drivers. HireRight, a company in Irvine, California, that performs background checks, notes, “Companies are typically liable for employees when they drive for business purposes.” Furthermore, the Federal Motor Carrier Safety Administration (FMCSA) requires employers to obtain and review a motor vehicle record (MVR) from every state in which a commercial driver has held a license during the previous three years. In addition, at least once every 12 months, companies are required to obtain MVRs from every state in which their drivers held licenses.

by Stephen Bennett

Bringing a Driver’s Background to the Foreground

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WHOLESALE & FLEET OPERATIONS

Bringing a Driver’s Background to the Foreground

“Drivers have a lot of protection because of the FCRA, and they should know that. And carriers have the obligation to let those drivers know why they didn’t hire them.”

Lana Batts, Driver iQ

Because of an industry-wide shortage of drivers, “Most trucking companies are not trying to figure out how to screen guys out,” said Lana Batts, Co-President of Driver iQ, a company based in Tulsa, Oklahoma. “Employers hope applicants clear the screening process.” Driver iQ maintains a proprietary database called Previous Record of Employment (PRE). As a consumer reporting agency, Driver iQ is subject to the Fair Credit Reporting Act (FCRA). “We do not do the screening,” Batts clarifies. “All we do is provide the report.” Under the act, companies that perform background checks can’t pass judgment on what those reports say.

A thorough background screening is expected to determine whether an applicant received a pardon or if a record of a conviction was expunged. If such information can be found on the internet, a certified background screening company must not provide it under the FCRA. “That protects the employer from lawsuits by applicants,” Batts said. A conviction, “by regulation,” must be confirmed, which means visually examining the specific record. In most counties, records are electronic, but in some small counties, Batts explained, “Ethel’s only in there two days a week and you’ve got to physically go get it from Ethel on Tuesdays and Thursdays. It’s not like you see on NCIS”— referring to a popular television show featuring crime solvers whose computer system promptly spits out needed information on demand. “Drivers have a lot of protection because of the FCRA, and they should know that,” Batts noted. “And carriers have the obligation to let those drivers know why they didn’t hire them.” If a consumer report cites a criminal record and it was used to deny employment, the notice to the applicant must say so. The copy of the report sent to the applicant can include the criminal record, or the notice must inform the recipient that they have “X” number of days to request a copy of the record. Driver iQ recommends sending them the record with the notice denying employment. The notice must include instructions on how the applicant can dispute the record. Davis Transport in Missoula, Montana, started using Driver iQ in the fall of 2016. According to Pat Ross, Contractor Services for Davis Transport, Driver iQ’s system is user-friendly, even for those that might not be tech-savvy.

A carrier can ask for information on a driver applicant’s convictions for certain kinds of crimes. For example, it’s a felony to be in possession of a bald eagle feather. “Who cares?” Batts asked. “Right?” More pressingly, companies typically want to be informed if a background check turns up convictions for crimes such as theft and aggravated assault, possible indicators that an applicant can’t deal with conflict. The Equal Employment Opportunity Commission (EEOC) prohibits employers from rejecting an applicant “willy-nilly because they have a criminal record,” Batts noted. One consideration is how much time has passed since a conviction; another is whether a crime relates to the job in some way. If a carrier specializes in transporting museum artifacts, a conviction for possession of a bald eagle feather might suddenly seem pertinent.

Davis Transport is a flatbed operation that hauls commodity freight, employing about 55 drivers. “I’m looking forward to running the MVRs on our drivers,” Ross said. “I used to have to do that by hand.” Allowing for interruptions, “It was always a good two- or three-hour process,” but using Driver iQ, Ross will submit a list of the drivers and the system will run the MVRs and send her the results. With that, the simplified process is complete. n

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WHAT’S THE VALUE OF

Pricing Data? Reviewing the Benefits of Data for Fuel Marketers and the EPIC PRA Model by Gary Bevers, Frank Hunter and Sharon Fielding-Schneider

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EPIC News+Data, the newest PRA to serve the downstream petroleum industry, has a business model that now makes pricing data affordable and accessible to even the smallest players in the industry.

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SPECIAL SUPPLEMENT

“The principal value—independent of the size of your organization—is the greater availability of this information across your organization.” Frank Hunter, EPIC News+Data

Since the rise of the digital age in the

1990s, data has been king for virtually every industry. Data was critically important before that of course, but it was usually more difficult to acquire, difficult to organize and manage and certainly more expensive. And, for the downstream petroleum industry, it was in short supply. The most well-funded players for whom fuel is an integral part of their operations—oil companies, traders and analysts, large marketers, commercial fleets and retail operations—have long appreciated the value of both wholesale and retail pricing data from the traditional price reporting agencies (PRA), and have used their indexes for contract purposes. EPIC News+Data, the newest PRA to serve the downstream petroleum industry, has a business model that now makes this data affordable and accessible to even the smallest players in the industry. The general benefits that EPIC’s affordable rack pricing data can provide to sales and fuel operations were not previously available in the market. Additionally, this overview will discuss how larger players can affordably take their data-driven intelligence to the next level. Further summary articles will explore these points in greater detail in the future. As an initial overview, free EPIC price indexes are available through the EPIC Fuel Gauge widgets on EPIC’s websites, and through the Fuel Marketer News, Commercial Fuel Buyer and Fuel Retailer Magazine websites and daily newsletters. These user-friendly widgets cover retail

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and wholesale averages in the top 10 metropolitan statistical areas (MSA) for gasoline and diesel fuel. Free average price data is also available down to the local ZIP code market (retail) and 400 rack city markets (wholesale). EPIC also offers premium paid subscriptions, which are 75% – 80% lower in cost per rack compared to other PRAs and provide great value in addition to effective data. EPIC offers flexible subscriptions that do not charge for additional users. An organization only needs a single license for the company. EPIC provides free trials that allow customers to examine the data over time and compare it against any data they are currently receiving. Frank Hunter, EPIC Senior Market Analyst and a contributor to this article, has an extensive background in fuel procurement in addition to more upstream issues. He has been instrumental in developing the various EPIC data products to meet what he long realized were significant operational needs. “The principal value—independent of the size of your organization—is the greater availability of this information across your organization,” Hunter explained. “It creates opportunity to save money through buying better, or selling, or making more money through better selling. The point is it goes right to your bottom line. There are savings or greater revenue that you capture that flows right to the bottom line—and the cost of this information is trivial.”

SPECIAL SUPPLEMENT

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What’s the Value of Pricing Data?

With EPIC’s affordable premium reporting offerings, a new level of transparency and control can be achieved. An operation can now get custom terminal reports and averages for any kind of benchmark or contract at the terminal level.

Value for the Smaller Marketer Smaller marketers typically wear many different hats. There is the fuel procurement operation, maybe a bulk plant, distribution through trucks and common carrier relationships and perhaps a retail operation. The market footprint is smaller and the staffing is tighter, but the responsibilities and needs are just as great as in any larger operation. If you are unbranded, are you getting a good wholesale price deal from your supplier(s)? A higher price might be acceptable because of other benefits from the supplier—or not. What is the best deal at the terminals in your market? You can spend time on the phone or online trying to work this out piecemeal, but that is hardly cost-effective. With EPIC’s affordable premium reporting offerings, a new level of transparency and control can be achieved. An operation can now get custom terminal reports and averages for any kind of benchmark or contract at the terminal level. A smaller marketer in a one-rack market can get a daily pricing report for $20 per month, which includes all of the products available at that rack for a particular time stamp. A branded marketer—and many smaller marketers are branded—can have a less complicated life, up to a point. A Shell marketer knows what Shell is charging, but what about ExxonMobil? That information is now available. A marketer can now have access to pricing data at all the terminals within a rack market so they can get all of the Shell quotes from all Shell terminals. With some thought, a business can benchmark its operations against its competitors. Additionally, more often than not, these branded marketers have unbranded relationships for purchasing diesel fuel. They can now easily and affordably access additional terminals and supplier options to beat the diesel price available at the terminal where they are lifting their branded gasoline. Furthermore, a buyer might have been quoted one price but could be unaware that the supplier has a couple of choices in terminals to pull from, and sometimes the terminals have different prices.

Value for the Larger Marketer The pressure on a smaller marketer can be intense, but the fuel procurement manager in a larger operation has his or her own set of challenges. That person is certainly held accountable for the department’s performance in market-effective purchasing and cost reduction. Also, the operational footprint— providing opportunities and challenges—can be much larger. The manager’s staff can take advantage of the rack/terminal information (through that single subscription) at a highly affordable and quantity-discounted per-rack rate. Now, that manager can begin to think outside the box since getting the necessary data that allows for broader market visibility is affordable and accessible. Having visibility with pricing allows that manager to look at not only the most obvious rack markets that he or she might be pulling fuel or dealing in, but also to look at the shoulder or satellite markets that are close by and may represent alternatives. For example, a marketer operating out of Akron, Ohio, has refining options down in Canton and also in Toledo, on the other side of the state. There is pipeline access in the Cleveland area from

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Michigan, and so on. In Western Pennsylvania, there is Midland, Pennsylvania, which is the end of the Buckeye Pipeline, which also has access to the New York Harbor. Through the Colonial Pipeline, there is access to Houston. Then there is the Texas Eastern Pipeline running up through Columbus and Lebanon, Ohio. That Akron marketer might typically only be looking at Canton, or maybe Cleveland, in terms of supply. However, sometimes Toledo and Pennsylvania can have a 10-cent or 15-cent differential with an incrementally higher cost of transportation. This particular market is complex in terms of supply options, but greater visibility gives that marketer an opportunity to take advantage of those significant price opportunities as they become available. Larger marketers can also be suppliers to smaller marketers and independent retailers. These marketers can similarly use this data to provide competitive benchmarking. Sellers can gain more visibility by looking at their competition in the same market and seeing their daily posted prices.

Terminals are owned by individual petroleum marketers, by common carrier pipeline/terminal companies or by integrated oil companies. As a result, fuels supplies that are available in excess of whatâ&#x20AC;&#x2122;s needed to meet contractual obligations are treated as a surplus and sold at a discount. In a shortage, contractual needs are served first and there is little or no surplus. Hence, vendors who rely solely on this surplus supply may be unable to supply criticalneeds customers during a shortage. Source: American Petroleum Institute (API)

Bottom Line:

Even terminal-level operations in the supply chain are subject to the laws of supply and demand.

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SPECIAL SUPPLEMENT

What’s the Value of Pricing Data?

EPIC is a progressive technology-based digital publisher for news and data, and as such, relies on the latest in digital publishing platforms and utilizes efficient data acquisition and management methodologies to publish fuel pricing data—up to 200 wholesale fuel prices per day—in the most efficient publishing environment.

Historical Data for Analysts, Auditing and New Market Development Having access to daily pricing data is critical for operations, but there are times when historical data is also necessary. EPIC provides Wholesale Rack Price History with a minimum of two years of daily price reports and customizable data sets. EPIC’s Fuel Price History reports and data sets are offered to the market at 40% – 50% less than a traditional PRA’s offerings. At the top end of the spectrum, the largest distribution operations have analysts that follow the fuel commodities in far greater detail, and make far-reaching projections often in conjunction with hedging and other advanced purchasing activities. These analysts need history to evaluate specific situations. They tend to be “pack rats” where data is concerned, and embrace the philosophy that one can never have too much (budgets permitting). EPIC provides quality data to satisfy these needs at prices that fit any budget. Contract pricing also requires access to quality historical data at affordable prices. Long-term supply contracts tend to be linked to an index price plus a markup. Some large wholesale suppliers are already starting to use the EPIC Wholesale Rack Price Index for this function. An audit may be required as part of that contract, or in the case of a dispute. If there is tax collection involved, the taxing authorities come in and ask that an audit be performed. The Department of Revenue typically does not pay for the pricing history. An audit may also be requested if a business is being acquired. This is a cost of doing business, but there is no reason why that cost should be excessive. On a more proactive note, fuel price auditing can be an important tool in deciding to enter a new market. For a reasonable fee—almost inconsequential compared to the overall costs and risks—an operation can get a general understanding of the costs and potential profitability of the fuel product with any major move into an otherwise unknown area. FMNMagazine

Value and Quality of EPIC Data EPIC offers affordable fuel price indexes and the highest quality, industry-leading pricing data solutions. How can this work? EPIC operates under a markedly different publishing model compared to other PRAs. EPIC is a progressive technology-based digital publisher for news and data, and as such, EPIC relies on the latest in digital publishing platforms and utilizes efficient data acquisition and management methodologies to publish fuel pricing data— up to 200 wholesale fuel prices per day—in the most efficient publishing environment. As with virtually all PRAs in the fuels space, EPIC receives its core wholesale data from DTN. EPIC then packages that original, raw price data into customized, free and subscription-based price indexes that offer the fuel selling and buying market a range of fuel price discovery product solutions tailored to a price point the entire industry can afford. EPIC’S Wholesale and Retail Indexes provide suppliers with posted prices and movements, including last price and date changes for full transparency. Sellers deliver fuel at a price based on an EPIC Index. Buyers have the price transparency to improve their buying proficiency and incur lower transaction costs. There is significant value for the larger customer, but the EPIC model relies primarily on the value of affordable data and price transparency to customers who have been previously shut out of this opportunity. n

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SPECIAL SUPPLEMENT

Whatâ&#x20AC;&#x2122;s the Value of Pricing Data?

Gary Bevers President & Publisher

Frank Hunter Senior Market Analyst

Gary brings over 30 years of leadership experience to EPIC News+Data, specializing in downstream petroleum supply chain, marketing, branding, fuel management purchasing and distribution logistics, web-enabled technology solutions and product and market development. Gary was honored with the Exxon Chemical PRIME Marketing Award of Excellence in 1996, and is a popular speaker at industry conferences. He is an incredibly hard worker, always driven to succeed and is passionately dedicated to motivating his employees and partners along the way, ultimately developing meaningful, long-lasting relationships both inside and outside of his business endeavors. GBevers@EpicNewsData.com

Frank serves the EPIC News+Data business model as an analyst and supports management in daily operations. He can best help customers with utilizing motor fuels pricing information for better buy/sell decision-making. Frank specializes in the midstream and downstream petroleum sectors, including traditional refined products, propane and alternative and renewable fuels. His experience includes market development and strategic planning for most of the major U.S. oil companies as well as operational experience with a large regional petroleum marketer. This latter role laid the groundwork for Frankâ&#x20AC;&#x2122;s appreciation for greater access to wholesale pricing in day-to-day operations. FHunter@EpicNewsData.com

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Sharon Fielding-Schneider Director of Product Management Sharon brings 30 years of fuels pricing industry experience to EPIC News+Data. She is responsible for product management and is focused on helping EPIC grow its brand and customer base in the downstream transportation fuels marketplace. Sharon is driven to keep abreast of new opportunities for the wholesale, retail and commercial aspects of the transportation fuels industry. She can best assist customers with data-driven pricing solutions as well as EPIC products and opportunities. Sharon is a member of several energy and fuels-related associations, and she specializes in new product development, customer service, sales, account retention and energy markets. SSchneider@EpicNewsData.com

BIODIESEL

INCENTIVES

by Jon Scharingson

for Government Fleets and Marketers

FUEL PRICES into the“Summer ” “If people were to look out their windows and see black smoke pouring out of buses, that would not be acceptable. We are very sensitive to that.”

here are several reasons why Rochester, Minnesota, runs its public buses on biodiesel blends. But when the city made the switch nearly 20 years ago, two benefits rose to the top.

Tony Knauer Transit and Parking Manager, City of Rochester, Minnesota

“One was cost, and the other was lowering emissions,” said Tony Knauer, the city’s Transit and Parking Manager. Today, those continue to be the two chief reasons why Rochester Public Transit not only uses biodiesel in its 52-bus fleet, but has also increased to a B20 blend, meaning the fuel is 20% biodiesel. In 2016, the city paid 8 cents per gallon less for B20 than it would have for B10, and it saved 17 cents per gallon over what it would have paid for 100% petroleum diesel, according to Knauer.

As for the environment, it should come as no surprise that the issue is a priority for city officials and residents. Rochester, after all, is home to Mayo Clinic, the renowned health-care system. “If people were to look out their windows and see black smoke pouring out of buses, that would not be acceptable,” Knauer said. “We are very sensitive to that.”

Renewable Energy Group (REG) has found that municipalities, along with county, state and federal fleets, are among the most advanced adopters of biodiesel. Two of the biggest reasons are price and emissions. As public entities, they are particularly cost conscious. Additionally, an increasing number of government entities are implementing sustainability plans and setting goals for reducing their carbon footprints. Other motivations are related to government policy, community desire and performance benefits.

Smart fuel marketers are adding biodiesel to their offerings so they can tap into the demand created by government fleets. Additionally, some of biodiesel’s financial incentives and regulations directly benefit marketers.

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WHOLESALE & FLEET OPERATIONS

Financial Benefits Let’s start with an area that fleets and marketers care about greatly: financial benefits. The U.S. Department of Energy (DOE) lists 34 federal incentives and laws related to biodiesel. These include the $1-per-gallon biodiesel tax credit. It expired at the end of 2016, but is commonly reinstated retroactively and efforts are ongoing to get it back on the books. One of the most well-known federal programs is the Renewable Fuel Standard (RFS), which requires certain amounts of renewable fuels to be blended into transportation fuels. The RFS includes renewable identification numbers (RINs), which are used to track compliance with the RFS; they are also a commodity that can be traded and that many in the biodiesel industry view as a value-added benefit. Another federal law is the Energy Policy Act (EPAct) of 1992. This requires certain state and alternative fuel provider fleets to use alternative fuel vehicles or otherwise reduce their petroleum consumption. Many of these public fleets turn to biodiesel to meet their EPAct requirements. A National Renewable Energy Laboratory (NREL) fact sheet notes that state fleets have gone “beyond what is required” under EPAct and are “using alternative fuels to help solve local air quality issues, develop local economic opportunities and demonstrate regional leadership.” Many states also offer incentives, and some have requirements. Here are examples:

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Three Ways to Benefit from Distilled Biodiesel specific installation costs with a five-year commitment to store and sell renewable fuels and install certain equipment.

Texas: The biodiesel portion of blended

Many local and state governments have adopted sustainability plans, and renewable fuels are one way they meet those goals.

fuel containing taxable diesel is exempt from the diesel fuel tax. Additionally, grants for 50% of the eligible costs, up to $600,000, are available to construct, reconstruct or acquire a facility to store, compress or dispense alternative fuels—including biodiesel—in air quality nonattainment areas.

Minnesota: All diesel fuel sold in Minnesota from April – September must

contain at least 10% biodiesel. In the other months, a minimum of B5 is required. In May 2018, the warm weather requirement will increase to B20.

Tips for Marketers: Know the incentives and regulations that are available to you and your customers. The examples above are just a sampling of what’s out there. In addition, look beyond what’s written into codes. Some states have executive orders related to biofuel use. There are also instances of departments within a government having their own policies.

Environmental Benefits Many local and state governments have adopted sustainability plans, and renewable fuels are one way they meet those goals. Biodiesel has become a key part of their strategy to reduce emissions and petroleum usage because: • It has lower hydrocarbon, particulate matter and carbon monoxide emissions than petroleum diesel. • The California Air Resources Board (CARB), which oversees the state’s Low Carbon Fuel Standard (LCFS), has determined that biodiesel has the lowest carbon intensity value of all liquid fuels, meaning it creates fewer greenhouse gas (GHG) emissions. • It can be made from feedstocks that are waste or by-products, such as used cooking oil and inedible corn oil. • Public health experts promote the benefits of biodiesel blends. In Illinois, the American Lung Association has partnered with the Illinois Soybean Association to create the B20 Club, which recognizes Illinois-based fleets that use biodiesel blends of B20 and higher. Several municipal fleets are members.

Iowa: Retailers who sell blends of B5

and higher are eligible for a 4.5-centsper-gallon tax credit, plus an additional 3-cents-per-gallon tax rollback on B11 and higher blends. Infrastructure grants are also available. A three-year commitment to sell certain renewable fuels can result in up to 50% reimbursement for the cost of specific components of a project. That could increase to 70% reimbursement for FMNMagazine

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WHOLESALE & FLEET OPERATIONS

Biodiesel Incentives for Government Fleets and Marketers

Biodiesel has its own ASTM specifications, and the industry also has higher standards for producers and suppliers who are members of the voluntary BQ-9000® quality assurance program.

“Biodiesel has proven emission and health benefits,” said John DeRosa, Director, American Lung Association in Illinois. “You get a lot of bang for your buck just by switching to a cleaner-burning fuel, and it’s something that can be used in existing diesel engines.” In Minnesota, Rochester Public Transit moved from B10 to B20 in warm weather months at the recommendation of the state’s American Lung Association. “We decided to start using B20 because we know the mayor and the city want Rochester to be environmentally friendly,” Knauer explained. “Also, the fuel performs well. It has not been detrimental to our engines.”

Performance Benefits The financial and environmental benefits of biodiesel wouldn’t matter much if the fuel didn’t perform. However, that’s not an issue. Biodiesel has its own ASTM specifications, and the industry also has higher standards for producers and suppliers who are members of the voluntary BQ-9000® quality assurance program. Not only does biodiesel not harm fleet performance, it also provides a boost in a couple of important categories: • Cetane: The ASTM specification for biodiesel requires a minimum cetane number of 47. That’s higher than the ASTM diesel spec of 40. Higher cetane equals a shorter ignition time. • Lubricity: The change to ultra-low-sulfur diesel (ULSD) not only reduced the sulfur in diesel fuel, but also removed lubricity. Adding as little as 2% biodiesel can double the amount of lubricity in the fuel. Modern diesel engines rely, in part, on fuel to aid in the lubrication process.

Farther north, near the Minnesota-Canada border, the federally run Voyageurs National Park has been using B20 blends—winter months included—in its diesel fleet since 2000.

Then there’s ease of use. Biodiesel blends don’t require vehicle or infrastructure upgrades, and nearly all original equipment manufacturers (OEMs) support blends of up to B20.

“In every decision we make, everything we do, we try to be as sustainable as we can,” said Bill Carlson, the park’s Facility Manager. “That’s our top goal.”

As the DOE reported, “Fleets from every corner of the country … are discovering firsthand that biodiesel is an easy-to-implement, renewable and economically viable alternative to conventional diesel that can yield almost immediate results.” n

Tips for Marketers:

Learn the sustainability goals for government fleets in your area—many post their plans on their websites—and educate them on how biodiesel can help to meet their objectives. If they are already using a lower blend, show them how blends from B10 – B20 can bring even greater environmental benefits. Tout yourself as a provider of clean-burning biodiesel, which could help you win bids as more government entities consider sustainability in their requests for proposals.

Tips for Marketers:

Some fleet managers still believe myths about biodiesel when it comes to performance, cold weather usage and OEM acceptance. Educate them on the facts. Data and case studies are available through REG.

Jon Scharingson Jon is the Executive Director, Sales and Marketing at REG. Headquartered in Ames, Iowa, REG is an international producer of biomass-based diesel, including biodiesel and renewable hydrocarbon diesel, and is North America’s largest producer of advanced biofuel. Contact Jon at 515-2398042 or Jon.Scharingson@REGI.com. For more information about REG, visit REGI.com. FMNMagazine

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by Stephen Bennett

Driving Performance with Telematics Monitoring driving behavior helps to identify drivers who are operating a vehicle aggressively or recklessly. Those drivers can be given remedial training with the aim that it will lead to not only improved performance by the driver, but also an improved overall safety record for the fleet. Additionally, safer driving can result in reduced fuel consumption, less wear and tear on vehicles and decreased maintenance and repair costs. This year, Netradyne, a company in San Diego, began offering a camera-based system called Driveri, which is designed to enhance driver management by recording every driving moment; safe, productive performance is documented right alongside troublesome behaviors such as speeding and hard braking. “Having the big picture enables supervisors to cite examples of good driving and use them for best practice reinforcement,” said Adam Kahn, Vice President, Fleets, for Netradyne. A driver who has a string of productive, safe driving days and has received positive, timely feedback is less likely to react negatively when a later careless maneuver is brought to his or her attention. FMNMagazine

It’s important to note the difference between “lagging” indicators and “leading” indicators. Lagging indicators are based on collected data downloaded sometime after the end of a day or shift, and sometimes they are not reviewed by a supervisor until days later. Leading indicators are based on data generated by exceptional or noteworthy events that have just occurred. “Netradyne’s system generates an email alert almost immediately,” Kahn explained. “The near real-time generation of that email can allow the supervisor to take actions to reinforce a desired outcome, or help minimize or avoid an unwanted one. “If you see the driver is doing a great job, you might be able to insert praise at midday. Or, if a driver is having a decline in performance at midday, you might be able to intervene. Perhaps a driver running late on a delivery drives fast and runs a red light without incident, for example. The system will notify the supervisor within minutes. FuelMarketerNews.com

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“Netradyne’s system generates an email alert almost immediately. The near real-time generation of that email can allow the supervisor to take actions to reinforce a desired outcome, or help minimize or avoid an unwanted one.”

WHOLESALE & FLEET OPERATIONS “The supervisor can react by changing the scheduled time of the next delivery to allow the driver more time. When the supervisor communicates the rescheduled time, he can also tell the driver to slow down. The message is, ‘I’d much rather you be late than crash your truck and get injured,’” Kahn concluded.

Adam Kahn, Netradyne

Driveri is a camera-based system; a device is mounted on the windshield near the rearview mirror. It consists of three cameras, which are positioned to cover the road ahead as well as the left and right peripheries. The cameras record vehicles, stop signs, stop lights and pedestrians during every driving moment of the vehicle operator’s shift, and a processor in the device sorts out highlights and generates the email to the fleet manager, who then visits a secure website to watch relevant video. The bulk of the video is stored in case some portion needs to be reviewed later; for instance, if someone claims a truck struck their mailbox. “In those cases, you don’t cast blame on the driver right away,” Khan noted. “You have to settle those inquiries.” Having that extensive video on hand to establish what actually happened creates trust in the driver.

Fleet Complete—which is headquartered in Toronto, Ontario, Canada—primarily focuses on fleets with up to 20 vehicles, though it has some customers who operate larger fleets. The Fleet Complete system is wired into each vehicle’s engine control module, a requirement of U.S. hours of service (HOS) regulations. Installing the company’s MGS700 device is “relatively easy, and while we offer installation services, most of our fleet customers install the units themselves,” said Tim Kwan, Marketing Lead for Fleet Complete. Data are transmitted via cellular network to a Fleet Complete desktop application. “The cost depends on the device, the cables required and so on, but it works out to less than $1.00 per day, per vehicle,” Kwan continued. “We sell it on a subscription model, so typically there is no upfront cost on hardware.” A fleet operator can use data from the system to monitor driving performance and to implement remedial driver training when necessary. “You can see when a driver is speeding, cornering harshly, ignoring recommended routes and so on,” Kwan explained. Reports generated by the system can help a fleet operator coach and manage his or her drivers’ behaviors, and the same data can be used to support vehicle maintenance. FMNMagazine

Here are descriptions of some additional systems designed to help fleet operators manage their drivers: Drivewyze: Drivewyze’s network of weigh station bypasses operates at more than 600 locations in 36 states. Fleet operators that use the service can cite its benefits in driver recruitment campaigns and in retention efforts, while also pointing to productivity and fuel cost savings. Learn more at www.Drivewyze.com. ERM: ERM’s products are designed to improve security, enhance safety, lower operating costs and thereby increase business efficiency. For location services, driver behavior, fuel management and fuel theft alerting, cold chain, motorcycle tracking, immobilizing and so on, ERM offers everything needed to securely and efficiently manage customers’ fleets. For more information, visit www.ERMTelematics.com. Geotab: Geotab is a global leader in telematics, providing open platform fleet management solutions to businesses of all sizes. Geotab’s intuitive, fullfeatured solutions help businesses better manage their drivers and vehicles by extracting accurate and actionable intelligence from real-time and historical trips data. Many Fortune 500 companies rely on Geotab’s technology to provide measurable management data. For more information, visit www.Geotab.com. Gorilla Safety: Gorilla Safety offers a cloud-based software solution designed to automate fleet and safety management. Its mobile app integrates the capabilities necessary to safely and efficiently manage large short-haul and long-haul vehicle fleets. For more information, visit www.GorillaSafety.com. SkyBitz: SkyBitz Local Fleets offers activity and GPS tracking features to help fleets gain full visibility of its vehicles, drivers and assets so they can improve productivity and their bottom line. For more information, visit www.SkyBitz.com. SmartDrive Systems: SmartDrive Systems are designed to give fleets and drivers insight on, and analysis of, driving performance. Its systems feature video analysis, predictive analytics and personalized performance programs designed to help fleets improve driving skills, lower operating costs and deliver return on investment (ROI). For more information, visit www.SmartDrive.net. Verizon Telematics (includes Fleetmatics and Telogis): Fleetmatics Group PLC provides mobile workforce solutions, delivered as software-as-a-service (SaaS), for service-based businesses. Its offerings are designed for managing local fleets, including generation of driver behavioral data. Its Web-based solutions provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage. Fleetmatics and another system for fleet management, Telogis, have been acquired by Verizon. To learn more about both systems, go to www.NetworkFleet.com. n FuelMarketerNews.com

Even using the most optimistic scenario for electric vehicle (EV) sales—assuming high oil and low battery prices—EVs will comprise at most 5% of new car sales by 2025. In 2025, vehicles powered by liquid fuels (gasoline, diesel, flex-fuel vehicles and traditional hybrids) will still account for more than 96% of vehicles on the road in the United States, with the balance comprised of battery electric, plug-in hybrids and a mix of hydrogen, natural gas and propane powered vehicles. Source: “Tomorrow’s Vehicles” by the Fuels Institute

Bottom Line:

Liquid fuels will continue to dominate the “demand” side of the marketplace for the foreseeable future, driven by economics and continued public acceptance.

at FuelMarketerNews.com

Is Customer Service Hurting or Helping Your Business?

by Ann Pitts

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From airlines to hotels to retail to petroleum distributors, first-class customer service seems to be getting harder and harder to experience, yet most businesses tout their customer service as a reason to do business with them.

ustomer service issues have become a trending topic lately, and it’s generally reported that the quality of customer service delivered today is suffering greatly. From airlines to hotels to retail to petroleum distributors, first-class customer service seems to be getting harder and harder to experience, yet most businesses tout their customer service as a reason to do business with them. To examine this trend, it’s worthwhile to ask why this is happening. Are the up-and-coming frontline employees in that 18 – 30 age range (the Millennial generation) unable to deliver first-class customer service because they have not experienced enough themselves? Is technology and digital service diluting the ability to be truly responsive to customers? Is society moving away from caring for customers? Could lackluster customer service be a result of poor training practices and employees not knowing what to do or how to do it?

The answer is probably a combination of all the above, but even if employees have not personally experienced great service, they can still be trained to deliver stellar service to your customers. Within the corporate culture, bad customer service just breeds more of the same bad customer service. It’s like a cancer growing within an organization that is difficult to stop. Once the company’s culture dial is set on “who cares,” the only hope of reversal starts at the top. “The top” refers to the leadership level, which is not to be confused with or delegated down to the managerial level. When leadership focuses on a problem or issue, real change begins. While you might not have an employee dragging a struggling customer down an airline aisle, there are likely issues within your company that need to be fixed. The dial needs to be moved from “who cares” to “you better believe I care, and I’m going to do whatever I can to make you happy.” Employees who lack that skill, ability and personality style need to go work for a competitor. Putting a direct emphasis on employee training, scripting of problem scenarios and role playing (with one employee taking the role of an angry customer and another the problem solver) are all ways to elevate the level of service within an organization. Company meetings dedicated

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BUSINESS OPERATIONS

Customer Service Killers

Problem Solvers

“We can’t do that.”

“I will do my best to make that happen, and will update you on my efforts.”

“That’s not our fault.”

“I’m so sorry you’re experiencing this situation, and I can fully understand your frustration. Let’s work on getting it corrected.”

“I can’t help you.”

“Let me find the best person who can get this corrected. I will follow up with you by 2:00 this afternoon.”

“We are out of that product and won’t get any more until the end of the month.”

“I will order that product for you today, and will let you know as soon as it arrives. Our supplier estimates arrival in three weeks, will that work?”

“If you talk to me like that, I’m hanging up.”

“I can tell you are having a bad day and are stressed about this situation. I want to help you, so can we resume this conversation tomorrow? Can I give you a call back at 9:00 in the morning?”

to discussing how service is delivered— led by leadership—can deliver priceless results. Open discussion and questionand-answer (Q&A) sessions can uncover basic training needs that can be fixed. Put some fun into this project! Organize Family Feud-style teams to compete against each other on the best responses to commonly heard complaints. Are customers always right? Of course not, but first-class customer service depends on redirecting the conversation from the “who is right/who is wrong” argument to actually solving difficult problems. Customer retention is directly related to how well a business handles the inevitable complications that arise when working with the public. First-class customer service is truly delivered not only in the message, but also messenger. Being attentive, exhibiting a positive attitude and good listening skills go a long way in soothing angry customers. No amount of customer relations management (CRM) software can make up for frontline employees’ interactions with customers,

especially when a rough situation emerges. Examining what employees say—and how they say it—can uncover some inflammatory habits that can be changed through script training. When an employee is stuck in a loop and unable to satisfy a customer, it’s helpful to bring in a different person. Oftentimes another perspective and communication style will diffuse a volatile situation. Perhaps the CFO or a manager can redirect the conversation to avoid the possible loss of a loyal customer. The protocol for this type of transfer should be communicated to employees well ahead of time, before it’s needed. Keep in mind that every customer service interaction should be ended with a verbal agreement of satisfaction. Ask the customer if they are content with the resolution that’s been offered. Give customers a final opportunity to be heard before ending the phone call. In some cases, a next-day follow-up call to ensure that everything has been resolved can turn a disaster into

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legendary customer service. Small, simple gestures make all the difference. Finally, don’t forget to tell every customer, every time, that they are valued and appreciated. Customers play an important role in your business. A simple “thank you” is a big statement that most customers don’t hear nearly enough. n

Ann Pitts Ann Pitts is the President of The Pitts Group, a company dedicated to assisting petroleum marketers with increasing their cash flow by improving accounts receivable results. Staff training, sharing of best practices and strengthening company policy are all part of The Pitts Group program. Ann is an experienced business speaker and trainer who has enjoyed focusing on the petroleum industry for over 12 years. Contact her via cell, 817-304-1533, or email, Ann.Pitts@PittsGroup.net.

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Cleaning Up on DEF Leading Chemical Distribution Company Brenntag North America Relies on Blackmer® STX-DEF Series Sliding Vane Pumps to Safely and Efficiently Deliver Bulk Quantities of DEF by Scott Jackson

Brenntag North America, Inc., as part of the Brenntag Group, currently has a global network of more than 530 locations in 74 countries, offers more than 10,000 products, employs more than 14,000 people and serves more than 150,000 customers worldwide. The company realized global sales of €10.3 billion (US$11.5 billion) in 2015. Brenntag, headquartered in Reading, Pennsylvania, is responsible for providing business-to-business distribution as well as sales and marketing solutions for industrial and specialty chemicals throughout the U.S. and Canada. Or, to put it simply, the company connects chemical manufacturers to chemical users. One of the chemicals Brenntag North America is responsible for delivering to the market is diesel exhaust fluid (DEF).

DEF is a non-toxic, high-purity solution comprised of 32.5% urea and 67.5% deionized water. Using this fluid in diesel-powered vehicles, such as trucks, buses and tractors, helps to reduce the amount of nitrogen oxides (NOx) emitted into the air by 90%. “We started delivering DEF in the U.S. in 2009,” explained Alan Smith, DEF Business Director for Brenntag North America. “Since then, we have made significant investments in DEFdedicated terminals and delivery assets across the U.S. and Canada. We have more than 25 dedicated DEF tankers and around 31 DEF rail locations in the U.S. These assets make us unique in the DEF space. We have a broad global network with outstanding local execution, allowing us to supply a wide variety of customers, including fleets, distributors, OEMs and truck stops.”

It is critical for Brenntag North America to deliver clean, non-contaminated DEF fluid to its customers. Therefore, the company only uses equipment that is DEF compatible.

Keeping DEF Clean Delivering DEF can be challenging and must be handled by equipment and transports designed specifically for hauling DEF. DEF is incompatible with materials such as copper and brass, and can lead to corrosion of these materials. This means that any transport used to haul DEF, as well as all of its wetted components, needs to be made of stainless steel or approved plastics such as high-density polyethylene (HDPE). This ensures fluid won’t become contaminated by trace quantities of metals during its handling and transfer.

Brenntag North America has made significant investments in DEF-dedicated terminals and delivery assets across the U.S. and Canada, with a total of 25 dedicated DEF tankers and 31 DEF rail locations. FMNMagazine

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By extension, the pumps needed during the DEF production process, or those that are required to load DEF onto the transport and off again into a storage vessel, must also be compatible with DEF’s unique characteristics.

Blackmer® STX-DEF Series pumps can be used in a wide variety of applications throughout the entire DEF supply chain.

“The main consideration when choosing a pump for a DEF application is the materials of construction,” said Matthew Sparrow, a DEF Mechanical Engineer for Brenntag North America. “All materials that come in direct contact with DEF must be compatible to avoid any contamination of the fluid. To ensure that all of our equipment is compatible, we follow ISO 22241-3 standards, which describe best practice recommendations and requirements for the handling, transporting and storage of DEF.” While the contamination of DEF can occur during the manufacturing and packaging process, it is more likely to occur during transfer or in storage. Therefore, companies responsible for the transportation of DEF must take extra precautions and safeguard themselves against these occurrences. If contaminated DEF is delivered, and then the same DEF is used in a vehicle, the results can be very costly for all parties involved. Not only does contaminated DEF damage the reputation of the delivery company, but it can also significantly damage a vehicle’s selective catalytic reduction (SCR) system. “It is essential to deliver clean, noncontaminated DEF fluid to customers,” said Smith. “Vehicles using contaminated

design can cause the equipment to lock up or leak, resulting in costly downtime or a messy cleanup.

DEF-initely the Right Solution Delivering DEF can be challenging. This is something that DEF Mechanical Engineer Matthew Sparrow, and the company he works for, Brenntag North America, knows all too well. So in order to ensure the safe and efficient delivery of its DEF, Brenntag North America utilizes STX-DEF Series Sliding Vane Pumps from Blackmer®.

DEF are in danger of suffering severe damage to their SCR system. A majority of issues encountered stem from materialof-construction issues; either the wrong materials are selected or materials not on the recommended list were not properly tested by a third-party lab.” Another major issue is downtime and leakage. When DEF dries, a white crust will appear. This residue can create havoc on the internal pump components, connectors, seals and anything else that comes in contact with the fluid. Improper FMNMagazine

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When it came time to select a transport pump capable of interacting positively with DEF during the loading and unloading process, Brenntag North America turned to STX-DEF Series Sliding Vane Pumps from Blackmer®, Grand Rapids, Michigan, a product brand of PSG®, Oakbrook Terrace, Illinois, a Dover company. “We use STX-DEF pumps from Blackmer at our terminals to unload railcars, transfer product from one tank to another and to load and unload tank trucks,” explained Sparrow. “With the addition of either a bypass line or variable frequency drive (VFD), the STX-DEF pump can also be used to fill drums and totes. In addition, we use Blackmer pumps on our internal DEF tanker fleet to fill customers’ drums, totes and mini-bulk tanks. These pumps are the ideal solution for applications with long runs of piping, when suction hoses and piping need to be stripped dry or when precise flow rates are desired.”

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high-capacity flow rates up to 250 gpm (946 L/min), and pump speeds up to 800 rpm for delivering fast fluid offloading. In fact, a 6,000-gallon (22,700-liter) tanker can be unloaded in about 24 minutes using the STX3-DEF pump. Designed for relatively high flow rates, STX1220A-DEF models feature flow rates from 42 – 92 gpm (159 – 348 L/min), while the STX2ADEF models are ideal for lower flow rates generally in the 15 – 60 gpm (57 – 227 L/min) range. Blackmer® STX-DEF Series Sliding Vane Pump

STX-DEF pumps from Blackmer feature 316 stainless-steel construction with external ball bearings, chemical-duty mechanical seals, PTFE elastomers and non-metallic vanes, making them the ideal choice to handle DEF. These features allow STX-DEF pumps to meet the ISO 22241-3 material standards and cleanliness specifications required for DEF-handling applications. Specifically, Brenntag North America utilizes Blackmer STX3-DEF, STX1220ADEF and STX2ADEF pump models for its operation. STX3-DEF models offer

The STX-DEF Series pump’s non-metallic vanes self-adjust for wear in order to maintain flow rate while also minimizing shear and agitation. An adjustable relief valve protects the pump from excessive pressures. The pump has excellent selfpriming and dry-run capabilities, and maintenance is reduced because internal wear is almost completely limited to the easily replaced sliding vanes, which can be accomplished without needing to take the pump out of line. “Blackmer DEF pumps have an excellent service record. Our facilities have reported less downtime and repair work since installing Blackmer pumps. The wetted components have a long service life, and the housings, gearboxes, motors

Pumps used during DEF production and the loading/unloading process must be compatible with DEF’s unique characteristics. This is why Brenntag North America relies on STX-DEF Series Sliding Vane Pumps from Blackmer®.

Conclusion “Bottom line is Blackmer pumps work extremely well with DEF thanks to their many features and benefits,” said Sparrow. “As Brenntag continues to build its internal infrastructure for DEF, Blackmer pumps will continue to be an essential component. In addition, we will continue to recommend Blackmer pumps as an approved equipment solution for our customers’ mini-bulk and bulk applications.” n Scott Jackson is the Product Manager– Vane Pumps for Blackmer® and PSG® and can be reached at +1 616-248-9218 or Scott.Jackson@PSGDover.com. For more information on the full line of innovative and high-quality Blackmer rotary vane and centrifugal pumps, and reciprocating compressor technologies, please go to www.Blackmer.com or call +1 616-241-1611. Blackmer is part of PSG, which is comprised of several leading pump brands. You can find more information on PSG at www.PSGDover.com.

Brenntag North America has more than 25 dedicated DEF tankers and around 31 DEF rail locations in the United States.

FMNMagazine

and frames hold up well in indoor and outdoor applications. Only a handful of pumps have ever needed repairs over the last five years, and thanks to their excellent design, repairs are typically completed in a day or less depending on the availability of parts,” said Sparrow.

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The National Association of Convenience Stores (NACS) reports that as gas prices decline, consumers feel more optimistic about the state of the economy. In June, three in five (60%) American drivers reported feeling optimistic about the economy, a two-point increase from the previous month and a point off the record high recorded in March. Last July, only 47% of American drivers expressed optimism related to the economy. Source: NACS Consumer Fuels Survey

Bottom Line:

Nothing new hereâ&#x20AC;&#x201D;repeat economic cycles for motor fuels demonstrate a consistent inverse relationship with the optimism of the consumer.

at FuelMarketerNews.com

DEF ROUNDUP

Certified DEF

Blackmer Blackmer® STX-DEF Series Sliding Vane Pumps feature 316 stainless steel construction with external ball bearings, chemical-duty mechanical seals, PTFE elastomers and non-metallic vanes, making them the ideal choice to handle DEF. STX-DEF pumps meet or exceed all industry specifications for DEF AUS 32. The Blackmer pumps’ non-metallic vanes self-adjust for wear to maintain flow rate while minimizing shear and agitation. Adjustable relief valves protect the pumps from excessive pressures. The pumps have excellent self-priming and dry-run capabilities, and maintenance is reduced because internal wear is almost completely limited to the easily replaced sliding vanes, which can be accomplished without needing to take the pump out of line.

Blue1USA Blue1USA is a fully integrated manufacturer and distributor of DEF storage and dispensing systems for use by commercial SCR fleets and retail establishments. Blue1USA’s quality DEF products are engineered with state-ofthe-art, cutting-edge technology that will provide years of reliable service and long-term value. www.Blue1USA.com

www.CertifiedDEF.com

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www.PSGDover.com/Blackmer FMNMagazine

Certified DEF is a national producer and distributor of DEF that operates an extensive network of DEF production and packaging plants located across North America. Certified DEF’s broad network of facilities allows them to service customers more efficiently and effectively throughout the country by providing a high-quality product within close proximity, thus cutting costs and improving economics. Certified DEF offers packaged and bulk DEF products, as well as DEF dedicated equipment from trusted industry suppliers.

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DEF ROUNDUP

Dennis K. Burke, Inc. Dennis K. Burke offers the highest standard in DEF equipment from standard closed-loop systems to fully customized solutions. Dennis K. Burke supplies both out-of-the-box systems by Liquid Dynamics and customer-specific customized solutions. Dennis K. Burke also uses remote monitoring. Remote DEF tank monitoring ensures adequate product, eliminates run outs, maximizes efficiency and gives 24-hour monitoring and alerts for peace of mind. They also deliver from a dedicated DEF trailer with an insulated stainless steel inner wall, transit heat system, cabinet heater and 1-micron filtration to maintain the highest product integrity on full metered deliveries. www.BurkeOil.com

Diesel Direct

Fluidall

Diesel Direct is one of the transportation industry’s largest dedicated national mobile fueling companies, servicing tens of thousands of trucks each day from a fleet of customized fueling trucks. Specializing in mobile fueling and bulk deliveries, Diesel Direct provides fuel services and solutions for local, regional and national truck and equipment fleets. By focusing on using technology and innovation, Diesel Direct has developed a state-of-the-art proprietary on-site fuel management process and system that gives customers accurate and meaningful data to both assist in the management of their fuel consumption and to meet the needs of continuously evolving business requirements.

The Fluidall Vault for DEF is the ideal solution for DEF storage and dispense at construction sites, mining sites, harsh environments and for private or commercial fleet use. The Vault’s highly secure, fully-enclosed compact footprint is 46" x 46". The Vault’s outer shell is constructed of powder-coated industrialgrade steel to ensure years of hassle-free use, and also provides important secondary containment that is compliant with the EPA’s SPCC guidelines. The lockable hatch opens easily with gas assist shocks for DEF refills, transfers and inspections. The Vault features Graco’s electric self-priming membrane pump, a 25' dispense hose reel and a dispense nozzle with automatic shutoff.

www.DieselDirect.com

www.Fluidall.com

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DEF ROUNDUP

Franklin Fueling Systems

Gorman-Rupp Pumps

Integer Research Ltd

Franklin Fueling Systems provides a stateof-the-art recirculation system as part of their TS-550 evo™ tank gauge that gives you complete control of your DEF system and provides energy cost savings throughout the life of the system, in addition to up-front cost savings on equipment. DEF will freeze at approximately 12°F (-11°C). The DEF recirculation system utilizes temperature sensors placed within the pipework system to circulate the fluid and prevent freezing. By pairing an INCON™ brand TS-550 evo™ fuel management system with Franklin Fueling Systems’ complete DEF/AdBlue® compatible pipe, containment, hardware and dispensing systems, you can achieve these system benefits that no other single manufacturer can provide.

Roto-Prime® pumps are actually two pumps in one: a variable capacity vane pump used during the priming cycle, and a standard centrifugal pump to move liquid. Whenever air or vapor is present at the start of the pumping operation, the priming pump automatically moves air and vapor from the suction line to the discharge line. Once the flowing liquid from the centrifugal portion of the pump builds up sufficient pressure in the discharge system, the pressure backs up through a tube to act on the bottom of the priming pump’s movable slide block, placing it in a neutral position during normal operation. The design makes the Gorman-Rupp Roto-Prime® pump ideal for loading and off-loading transports and stripping hoses.

Now in its tenth year, Integer’s DEF Forum has established itself as the meeting place for North America’s DEF industry. Every year, the most influential stakeholders in the DEF supply chain attend The DEF Forum to gain critical insights into current and future market trends, strengthen relationships and forge new partnerships to accelerate business growth. This year’s DEF Forum will see the exciting launch of The DEF Awards 2017. The awards will celebrate innovation and achievements throughout the DEF supply chain over the course of a fun-filled evening, including dinner, drinks, a ceremony and entertainment. Join us on September 26 – 28, 2017, at the Grand Hyatt in San Antonio, Texas, for North America’s DEF industry event of the year!

www.FranklinFueling.com

www.GRPumps.com

www.Integer-Research.com

READ MORE at FuelMarketerNews.com Hose Master

Gilbarco Veeder-Root Gilbarco’s Encore® S and 700S are available as Ultra-Hi flow diesel dispensers with flow rates up to 60 gallons per minute combined with an integrated DEF cabinet. These models can be configured as an Ultra-Hi master, a master/satellite combo and a satelliteonly dispenser. The Encore Ultra-Hi dispenser combined with a heated DEF cabinet allows for a single fueling point for both diesel and DEF. The DEF cabinet is designed with a heater as a standard feature, which enables it to operate in ambient temperatures down to -20°C (an extended temperature package is also available). Currently, there are over 25,000 Gilbarco Veeder-Root Encore Ultra-Hi dispensers with DEF actively being used in the retail diesel market today. www.Gilbarco.com

Hose Master offers a competitive advantage with all stainless construction DEF Flex Connectors, offering the safest and strongest connection for corrosive media. All stainless DEF Flex Connectors offer excellent corrosion resistance, strength, increased flexibility and service life. Though the solution is non-toxic and safe to handle, it still has corrosive properties. The use of all stainless steel increases resistance to DEF and any other chemical impurities. DEF Flex Connectors are available with stainless steel hex males, female union or Hose Master’s QuickClamp design (with special peroxide-cured EPDM gasket). DEF Connectors are ideally suited for mobile skids, aboveground totes and storage tanks. www.HoseMaster.com

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KleerBlue KleerBlue’s patented Fueling IslandFriendly Mini-Bulk Systems are ideal for small to medium DEF retailers and fleets needing lane fueling. These innovative systems are engineered for long-term investment protection. Triple wall construction with secondary containment significantly reduces the risk of leaks. Insulation and redundant heating lead the industry in protecting against freezing and DEF degradation. KleerBlue patented the revolutionary design and they are pleased to announce that their 400 and 1000 Gallon MiniBulk tanks were recently issued patent number US 9,669,991 B1. With their state-of-the-art Mini-Bulk systems, KleerBlue enables North American retailers and fleet managers to tackle the challenge of storing and dispensing DEF. www.KleerBlueSolutions.com

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DEF ROUNDUP

Liquid Controls, LLC

Micro Matic

MISCO Refractometer

Liquid Controls (LC) provides two flow measurement technologies engineered specifically to meter DEF. The patentpending design of LC DEF Positive Displacement Flowmeter Systems features a 316 stainless steel housing— 33% lighter than similar DEF systems in the marketplace today—as well as advanced polymer components within, and DEF-resistant EPDM seals. LC positive displacement DEF meters are built to meter with sustained accuracy and low maintenance in stationary applications such as DEF carts, bulk plants and terminals as well as highvibration mobile applications, such as delivery trucks. With sizes from ½" – 4" and flow rates from 2 – 1,200 gpm, they are manufactured with 316 stainless steel housings, duplex stainless steel rotors and engineered polymer sleeve bearings.

As an industry leader in closed systems and with over 50 years of experience, Micro Matic has worked with DEF manufacturers and distributors to assist in consistent delivery of DEF purity throughout the supply chain. They understand that there are different ways of bringing DEF to market and have designed a complete portfolio of DEF Closed Systems to meet these requirements. Micro Matic is not a onesize-fits-all company and offers closed system options to best serve different operation and application environments so industry professionals can operate most efficiently, effectively and, most importantly, economically.

Protect your SCR-equipped vehicles from accidental DEF dilution or tampering with the MISCO DEF Tester. The MISCO Palm Abbe DEF-201 and DEF-202 are handheld digital refractometer models designed specifically for testing the concentration of urea-based DEF. By applying a ureaspecific temperature compensation, MISCO achieves a higher level of measurement precision, +/- 0.1 percent by weight. Proper urea concentration is critical for sustaining reduced diesel emissions that, besides being good for the environment, can save the DEF consumer money, prevent damage to expensive SCR components and help identify tampering. Custom programming is also available for measuring a variety of coolants, antifreeze, methanol, battery acid, brake fluid or any other water-soluble fluids.

www.LCMeter.com

www.MicroMatic.com

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www.MISCO.com

DEF ROUNDUP

OmegaFlex

OPW Engineered Systems

OPW Retail Fueling

DEF-Trac® addresses the emerging needs of the DEF supply industry. Unaffected by the corrosive effects of DEF, DEF-Trac is manufactured from corrugated 316L stainless steel, and is supplied in long coils to streamline the installation of distribution piping from the storage tank to the dispensing pumps. Other features are as follows: manufactured with 316L highly flexible stainless steel tubing; stainless steel fittings that are field attachable with a self-flaring metal-to-metal sealing surface; available with or without insulation or heat trace; no special tools required for assembly; fluid components meet ISO 22241-3 standard; one Thermon low-temp self-regulating heater BSX cable; and much more.

The all-new Kamvalok® Flat is the next generation of OPW dry-disconnect couplings. The manufacturer took its proven, best-in-class Kamvalok and flattened the connection points. The Kamvalok Flat reduces product loss at disconnect by up to 85% compared to its already high-performing standard Kamvalok. The patent-pending flat-face poppets virtually eliminate spillage of any residual liquid contained within the line after disconnection. OPW Engineered Systems offers the most comprehensive line of dry disconnect products in the industry, and its couplings have built a reputation as a trusted technology to help protect workers and the environment in the transfer of hazardous materials.

The OPW 21Gu™ DEF Nozzle outperforms and outlasts the competition, giving you outstanding reliability and durability. With OPW’s unique Mis-Filling Prevention Device, your investment is safe. Other nozzles can leave your expensive trucks vulnerable to fuel contamination; however, the 21Gu DEF has been engineered with magnetic internal components that will only release DEF when inside an appropriate filling receptacle. With automatic shutoff, the 21Gu DEF is the industry standard in Europe and is trusted by fleets across the United States. Plus, the nozzle’s strict manufacturing process guarantees compatibility with DEF, allowing you to maintain focus on generating revenues instead of babysitting your fleet.

www.DoubleTrac.net

www.OPWGlobal.com/OPW-ES

www.OPWGlobal.com/OPW-Retail-Fueling

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DEF ROUNDUP

Quality DEF Solutions Quality DEF Solutions is a manufacturer of DEF and is centrally located in Texas. The DEF is offered in 330-gallon totes, 55-gallon drums, 2 x 2.5-gallon jugs, single 2.5-gallon jugs, truck load bulk and rail car. Their products are API certified and ISO 22241 compliant. Quality DEF Solutions is also a distributor for Enduraplas chemical and water storage tanks. The sizes range from 50 gallons up to 42,000 gallons. www.QualityDEFSolutions.com

Roth North America Roth double-walled oil tanks offer the highest level of safety and environmental protection. Storage liquids include diesel, DEF, ATF, heating oil and biofuels. The outer tank is made from leak-proof weld-free galvanized steel and roll seamed with an oil and fire resistant seal. It can contain at least 110% of the capacity of the inner tank for maximum protection. The inner tank is made of blow-molded, high-density, seamless polyethylene that is leak-proof and will never corrode. Additionally, Roth’s compact tanks are available in several different sizes, providing more flexibility for placement in any garage, service station or lube shop.

by Rovanco under strict quality standards, assuring you years of trouble-free operation. Rovanco has already provided miles of DEF piping for several hundred stations, so look to Rovanco for the experience you need and DEF piping systems that work.

solution for you. Choose from one of their standard designs or work with Semler to bring your imagination to life! www.SemlerIndustries.com

www.Rovanco.com Shaw Development LLC

Semler Industries Semler Industries has over 100 years of experience in meeting customers’ demands and 50-plus years of serving the petroleum and chemical markets. Their DEF equipment portfolio ranges from low-flow drum and tote dispensing to high-volume storage and transfer, and also extends to prill or liquid blending equipment. With all in-house engineering and fabrication, Semler’s customers are guaranteed the quality they deserve. So, whether you are moving DEF from tanks to totes, rail cars to trailers, or simply storing bulk quantities, Semler has a

www.Roth-USA.com

Rovanco Rovanco manufactures DEF piping systems designed to transfer fluids from your holding tanks to dispensers in either an aboveground or belowground operation. All of Rovanco’s DEF piping systems can be constructed utilizing any of the approved materials for the carrier pipe. Rovanco is a top choice for DEF systems because they can manufacture the product to your customer’s specific needs. These piping systems are made FMNMagazine

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Shaw Development LLC is a privately held company specializing in the design, validation and manufacturing of fluid management solutions. Shaw components and systems range from ground-level refueling systems, autonomous mine refueling systems, centralized fluid service connections, positive displacement pumps, fluid filtration systems, SCR/DEF systems and DEF/AdBlue filtration solutions to fluid caps, adapters, strainers and plugs. Shaw Development’s extensive experience in offroad, on-road, military vehicle and stationary applications has positioned them as a trusted partner for vehicle OEM and engine manufacturers worldwide. www.ShawDev.com

DEF ROUNDUP

Snyder Industries Shields, Harper & Co. Shields, Harper & Co. is the largest petroleum equipment distributor on the West Coast with eight branches located throughout California, Arizona and Nevada. They have been supplying DEF handling equipment to commercial and industrial companies, truck stops and service stations since it first appeared in the North American market. Shields, Harper & Co. offers the full spectrum of DEF solutions and carries inventory at each of their warehouse locations. From tanks and pumps to dispensers and nozzles, they make sure your site continues smooth operation. You can be assured there is a knowledgeable sales staff member who can assist with your DEF questions. www.ShieldsHarper.com

Snyder Industries manufactures a wide variety of storage tank solutions for the DEF and lubricant industries. Products include HDPE rotationally molded DEF storage tanks in both single wall and double wall containment designs, which range in size from 30 – 20,000 gallons, along with stackable lube and DEF storage and dispensing tanks. Snyder offers a selection of commercial tanks as well as industrial-grade tanks designed and built to ASTM D1998 standards. Snyder operates eight manufacturing plants across the U.S. to serve their customers’ needs. Snyder has been manufacturing tanks for 60 years and they are focused on exceeding their customers’ quality, value and service expectations. www.SnyderPetroTanks.com

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SPATCO DEF DEF is necessary for your diesel-fueled operations, and it must be stored properly to ensure quality and to maximize effectiveness. SPATCO DEF designs and manufactures storage and dispensing systems that safely protect your investment night and day. Their broad portfolio of products includes something for every diesel application. From retail and commercial mini-bulk and bulk systems to portable solutions for off-road, SPATCO DEF can customize the ideal product to meet your specific requirements. www.SPATCO.com

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DEF ROUNDUP

TECALEMIT, Inc.

Thunder Creek Equipment

Wayne Fueling Systems

TECALEMIT, Inc. is a Horn Group company with deep roots in the European markets, bringing decades of experience and performance to North America. TECALEMIT is not just a DEF pump company. They are your one-stop shop for high quality, heavy-duty measuring and dispensing equipment for lubes, fuels and chemicals, as well as DEF. TECALEMIT offers off-the-shelf items such as transfer pumps, dispensers, nozzles and meters, but also designs and builds customized hiflow transfer skids, dollies and DEF minibulk solutions. No customer is too small and no job is too large for TECALEMIT to handle. Let them show you why their customers #TrustTheT.

Thunder Creek Equipment provides solutions designed for both on- and off-road applications that simplify the storage and dispensing of DEF, all while maintaining the highest fluid quality. This includes bulk systems that fit seamlessly into the flow of existing fueling and service operations, and mobile solutions that provide businesses in agriculture, construction, oil fields, mining and other off-road environments with reliable means of transporting DEF out to the field. All are equipped with Thunder Creek’s exclusive closed 2-in-1 DEF Pumping System. Together, this maintains ISO compliance for life and helps ensure the integrity of the emissions systems found in today’s trucks, buses and heavy equipment.

Wayne Fueling Systems, part of Dover Fueling Solutions, is pleased to present the new Wayne Ovation™ HS Ultra-HighCapacity Dispensers. These new dispensers provide all the benefits of the Ovation Dispenser user interface features—leading secure payment technology, large color display options, media, etc.—coupled with fast master and satellite refueling to optimize truck refueling throughput. The HS and DEF models offer the convenience and spacesaving benefits of dispensing diesel and DEF from the same dispenser. Whatever your high-volume fueling island need, Wayne has an Ovation HS Ultra-HighCapacity Dispenser that will fit.

www.TecalemitUSA.com

www.ThunderCreek.com

www.Wayne.com

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DEF ROUNDUP

Did You Know Yara North America, Inc. Yara’s knowledge, products and solutions grow farmers’, distributors’ and industrial customers’ businesses profitably and responsibly while protecting the earth’s resources, food and environment. Yara’s industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. Since 2004, Yara has been at the forefront of the development of DEF and its compatibility with SCR technology in heavy-duty trucks, buses, passenger cars and non-road mobile machinery. As the world’s largest producer of DEF, Yara can ensure product quality, guaranteed sourcing and reliable distribution through their large number of production plants and terminals.

Diesel exhaust fluid (DEF) is a non-hazardous solution that is 32.5% urea and 67.5% deionized water. DEF is sprayed into the exhaust stream of diesel vehicles to break down dangerous nitrogen oxide (NOx) emissions into harmless nitrogen and water. Source: discoverDEF.com

www.Yara.us

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Forecasts show that total U.S. crude oil production will average 9.3 million barrels per day (b/d) in 2017, up 0.5 million b/d from 2016. In 2018, crude oil production is expected to reach an average of 9.9 million b/d, which would surpass the previous record of 9.6 million b/d set in 1970. Source: U.S. Energy Information Administration (EIA)

Bottom Line:

U.S. crude oil production has become the source of world incremental supplyâ&#x20AC;&#x201D;all at the expense of OPEC.

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INDUSTRY NEWS FUEL MARKETER NEWS

U.S. DOT Proposals Simplify, Reduce Costs to States and Individuals Obtaining CDL The U.S. Department of Transportation’s (DOT’s) Federal Motor Carrier Safety Administration (FMCSA) announced two proposals that would take steps toward responding to a national shortage of qualified truck and bus drivers. These proposed processes would simplify obtaining a commercial driver’s license (CDL) for many individuals and reduce administrative expenses to both the driver applicant and state driver licensing agencies.

personnel, including National Guard and Reserves, seeking to obtain a civilian CDL. This waiver would simplify processing and reduce costs for states and for qualified individuals. Commercial Learner’s Permit Validity: This proposed rule would allow states to issue a CDL learner’s permit with an expiration date of up to one year, replacing the current six-month limitation. This extra flexibility would eliminate burdensome and costly paperwork requirements by the states. It would also eliminate unnecessary re-testing and additional fees presently incurred by individuals who seek an additional 180-day renewal of their CDL learner’s permit. n

FMCSA is seeking public comment on the following two notices of proposed rulemakings (NPRMs):

Trucking Industry Congestion Costs Top $63.4 Billion

Military Licensing and State CDL Reciprocity: This proposed rule would allow state driver licensing agencies to waive the CDL knowledge test for qualified veterans and active duty

Traffic congestion on the U.S. National Highway System (NHS) added over $63.4 billion in operational costs to the trucking industry in 2015, according to research released by the American FMNMagazine

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Transportation Research Institute (ATRI). The calculated delay on the NHS totaled more than 996 million hours of lost productivity, which equates to 362,243 commercial truck drivers sitting idle for a working year. ATRI’s analysis also documented the states, metropolitan areas and counties that were most impacted by these delays and subsequent cost increases. The top 10 states experienced costs of over $2 billion each, with Florida and Texas leading with over $5 billion each. As expected, traffic congestion tended to be most severe in urban areas, with 88% of the congestion costs concentrated on only 17% of the network mileage, and 91% of the total congestion cost occurring in metropolitan areas. The analysis also demonstrates the impact of congestion costs on a per-truck basis, with an average increased cost of $22,676 for trucks that travel 100,000 miles annually. n

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INDUSTRY NEWS

Global Pump Leader Launches New DEF Line in North America FMT Swiss Ag, a global leader in specialty fluid storage and dispensing solutions, has launched a full line of diesel exhaust fluid (DEF) pumps and storage units for the U.S. and Canadian markets. Designed to meet the highest manufacturing tolerances, these products are specifically created with 100% DEF-compatible parts to safeguard the sensitive chemistry and meet the high demands of this growing industry. FMT Swiss Ag will conduct business under the name FMT NA, a wholly owned subsidiary with sales and customer service offices based in Elk Grove Village, Illinois. The company has tapped industry veteran Norm Winkler as its National Sales Manager to lead the new venture. FMT Swiss Ag will offer a complete line of drum/tote dispensing options along with

mobile and self-contained storage/dispensing systems in 396-, 660- and 1,320gallon options. n

U.S. DOT Announces Regulatory Reform Task Force and Officer The U.S. Department of Transportation (DOT) announced Deputy Secretary Jeffrey Rosen will serve as the department’s Regulatory Reform Officer and Chairman of the department’s Regulatory Reform Task Force (RRTF). The RRTF was formed earlier this year in accordance with President Trump’s Executive Order 13777, which directs each agency to establish an RRTF to make recommendations to alleviate unnecessary regulatory burdens. U.S. Transportation Secretary Elaine L. Chao has directed the RRTF to consider ways to accomplish DOT’s primary safety objectives in less burdensome

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ways and to further review “midnight rules” that were issued at the end of the last administration. n

Omnitracs to Acquire the Assets of Shaw Tracking, Expand Canadian Presence Omnitracs LLC, a global pioneer of fleet management solutions to transportation and logistics companies, announced that it has signed an agreement to acquire the assets of Shaw Tracking, the leading fleet management solutions provider in Canada, from Shaw Communications Inc. The terms of the transaction, expected to close summer 2017, subject to regulatory approval of the transfer of operational licenses, were not disclosed. Through the combination of Omnitracs and Shaw Tracking, Canadian fleet customers will have access to the

INDUSTRY NEWS comprehensive Omnitracs product and service portfolio. Shaw Tracking has been the exclusive Canadian distributor of Omnitracs fleet management solutions for over 25 years, helping to increase efficiency and reliability for customers. Shaw Tracking will be integrated into the Omnitracs solution portfolio, further expanding Omnitracs’ customer base and reach into Canada. Every year, more than $650 billion in goods cross the U.S.-Canada border. With Omnitracs expanding its well-known presence into Canada, customers will benefit from direct access to Omnitracs’ products while operating cross-border trade routes, utilizing notable customer support centers in both countries. The actual legal entity acquiring Shaw Tracking is Turnpike Global Technologies Inc. (Ontario), a wholly-owned Canadian subsidiary of Omnitracs, LLC. n

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TBG Completes Acquisition of DTN With the completion of TBG’s acquisition of DTN from Schneider Electric SE for a total consideration of $900 million, TBG plans to fully reinstate the powerhouse DTN brand that has been known and trusted since 1984, and focus on growing the business in both the domestic and international markets. DTN President Ron Sznaider said, “TBG provides strong and stable ownership that offers unmatched long-term investment and commitment to the DTN business. With this support, we intend to deliver new world-class solutions to the market to drive our domestic growth and international expansion plans, and to further enhance the DTN brand.” As an independent source of missioncritical proprietary content and decision support tools, DTN provides customers with actionable insight to make smarter decisions, manage risk and operate more efficiently. DTN’s refined fuels business

connects the downstream oil and gas supply chain as the digital hub for all supply chain participants enabling operational efficiencies and improved profitability. n

U.S. Bank Voyager ® Fleet Card Adopts a “Green” Hue Beginning this summer, public buses, delivery trucks and other corporate fleets will have the opportunity to reduce their environmental footprint more than ever before. U.S. Bank is teaming up with ChargePoint, the world’s largest electric vehicle (EV) charging network, to offer Voyager Network Fleet Card acceptance at tens of thousands of ChargePoint charging ports throughout the United States. Together, the companies are bringing many firsts to the industry. ChargePoint is the first EV charging network to accept corporate fleet cards, and Voyager is the first fleet card issuer to be accepted at their charging spots. This first-of-its-kind relationship in the fleet industry is timely, as Electric Vehicles International predicts electric car fleets to reach 20 million by 2020 globally. The Voyager Network, owned and operated by U.S. Bank, is one of the largest fleet fueling and maintenance acceptance networks in the United States. The Voyager Fleet Card is accepted at more than 320,000 fueling, maintenance and service locations and used by millions of drivers of fleet cars, trucks and heavy-duty commercial rigs. The network offers sophisticated purchase controls and data that simplify fleet expense management by giving fleet managers greater visibility and control over fleet spend. ChargePoint offers a broad range of smart networked charging offerings, software solutions and cloud services to help fleet managers effectively manage EV fleets. In addition to charging solutions, ChargePoint provides a number of tools for a wide range of fleet scenarios, including depot, mixed-use and on-route. n

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Ryder Launches NaviShare, a New Software Platform Ryder System, Inc., a leader in commercial fleet management, dedicated transportation and supply chain solutions, announced the launch of Ryder NaviShare™, a cloud-based platform that provides real-time shipment visibility, predictive alerts and exception dashboards. Ryder’s deep engineering expertise, combined with features that enable real-time exception handling, routing and analytics, make NaviShare the ultimate tool in logistics network management and customer service.

The Weather Company Introduces New Solutions to Help Freight and Logistic Companies Weather-related delays cost the freight industry alone approximately $8.7 billion a year. To help address these inefficiencies, The Weather Company, an IBM Business, has introduced its new Operations Dashboard for Ground Transportation, a solution that is designed to help optimize

The technology is accessible through a customer-facing website and mobile application that utilizes cellular and GPS technology to link shippers with onboard vehicle technologies. The system provides real-time visibility and event management capabilities to shippers, and delivers information updates and routing instructions to drivers. NaviShare will be available to all Ryder customers in North America in the third quarter of 2017. NaviShare provides real-time information regarding load status, tracking status, carriers, shippers, customers, origins and destinations. A user—who can be a shipper, carrier/driver or dispatcher—is able to toggle among multiple features for each load, including stops, maps, updates and messages. If there is a delay in a shipment while in transit, NaviShare alerts the shipper and recipient, and provides the shipper with a list of rerouting options. The software application also has the capability to track shipments at a SKU/part level and to monitor the condition of the load. The NaviShare platform is transportation management system agnostic. The front-end user experience is combined with Ryder’s logistics engineering services on the backend to deliver the most proactive and unique platform in the industry today. n

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workforce productivity and route selection for freight and logistics companies. This comprehensive, customizable dashboard includes key information on weather and road condition information, such as precipitation, wind, fog, ice and pooling water. The dashboard also integrates real-time traffic flow and incident data, and flags safety hazards. The Operations Dashboard for Ground Transportation is designed to provide input across the trucking and fleet organizations. n

INDUSTRY NEWS

Leighton O’Brien USA Signs Dealership Agreement with Conidia FUELSTAT ® Leighton O’Brien has announced a U.S. sales distribution agreement with Conidia Bioscience Ltd, manufacturers of FUELSTAT®, the latest technology in microbial contamination detection in middle distillate fuels. FUELSTAT® complements Leighton O’Brien’s patented fuel cleaning and polishing services and improves fuel quality testing and treatment strategies for the fuel cleaning and polishing industry. “Through this partnership, we can expand our product and service offering to enhance our portfolio of market-leading technologies,” said Jeff Davis, President of Leighton O’Brien USA. “We can now offer our customers the best on-site diesel fuel

quality test. The FUELSTAT® PLUS diesel fuel test is ASTM D8070 compliant to determine the presence of fungi, bacteria and diesel bugs in 10 minutes. “This partnership will enable our customers to properly detect and treat diesel fuel quality issues at a significantly reduced cost when compared to older methods on the market. If you can use an eyedropper, you can now test your diesel fuel in minutes,” Davis said. n

OOIDA to Push Forward with Fight against ELD Mandate An appeal to the U.S. Supreme Court by a national association of small-business truckers will not be reviewed. The OwnerOperator Independent Drivers Association (OOIDA) contends that a mandate to electronically track commercial truck drivers was never about safety and that

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the government was never able to demonstrate how such a mandate would improve safety. Jim Johnston, President and CEO of OOIDA, said that the association will continue to pursue the issue on the congressional side as part of its “Knock Out Bad Regs” campaign, and will continue to communicate with the administration about this and other regulations. OOIDA had filed the petition seeking a review of a ruling from the U.S. Court of Appeals for the Seventh Circuit regarding the electronic logging device (ELD) mandate. The court had ruled against the association last year on its lawsuit against the Federal Motor Carrier Safety Administration (FMCSA). OOIDA says mandating ELDs is the equivalent of warrantless surveillance of truckers and that the government’s weak excuses for doing so fail to justify violating their Fourth Amendment rights.

INDUSTRY NEWS “That intrusion on the rights of hardworking Americans cannot be justified. The mandate will not improve safety. It will, however, be another costly regulatory burden heaped upon an already over-regulated industry,” Johnston noted.

the full gamut of fueling system services in six states. Neumayer is proud to be a WBE business as well. Now, with the partnership with Clean Fuels National, they can offer the very best fuel filtration and tank cleaning services in the country.

The association also says there are still many questions about the technical specifications and enforcement aspects of the mandate.

With this exclusive agreement, Clean Fuels National and its sampling division, Fuel Quality Testing, will inspect and clean an additional 12,500 – 17,000 tanks in the Midwest. Michael Vanover, President of Clean Fuels National, said, “Our roots are in the Midwest with our home office in Indiana, and it makes us feel good to know that we’re partnering with a fellow Midwest company—one with such a long history of dedication to doing good work. We are proud of this partnership and we look forward to seeing both of our companies benefit.” n

“The mandate has everything to do with large, economically motivated entities using the government to impose their will on small businesses, which comprise the majority of the trucking industry. Until the government is able to answer many fundamental and basic questions about the mandate, they should at least delay its implementation,” said Johnston. In its petition to the Supreme Court, OOIDA asked the court to determine whether the ELD rule violated the Fourth Amendment by failing to establish a regulatory structure at the state and federal levels that serves as a substitute for a warrant. n

Clean Fuels National Partners with LongStanding Midwest Equipment Provider Founded in 2000 by a father and his sons, Clean Fuels National has grown from a one-truck operation cleaning the local tanks of farmers and schools to a company relied upon by major fuel retailers across the nation to maintain their fuel quality. Clean Fuels National offers patented phase separation remediation as well as fuel filtration and tank cleaning. Neumayer Equipment has a longstanding reputation in the industry, having started over 80 years ago in 1934. Neumayer has decades-long relationships with leading manufacturers of fueling system components and works with fuel retailers and fleets, providing complete fuel storage and dispensing systems. From new site construction to regulatory compliance, Neumayer Equipment offers FMNMagazine

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National Retail Federation Names Legislator of the Year The National Retail Federation (NRF) has named Representative Mike Kelly as the Legislator of the Year as retailers from across the country gathered for NRF’s annual Retail Advocates Summit congressional fly-in. “Mike Kelly is a true advocate for the retail industry and we want to thank him for his ongoing support,” said NRF President and CEO Matthew Shay. “We need the backing of lawmakers like him to help retailers across the country grow their businesses and create jobs in their communities.” “I am incredibly grateful to receive this tremendous honor and want to express my gratitude to everyone,” Kelly said. “Retailers are the backbone of our nation’s economy. They impact every single American’s daily life, from the food we enjoy to the clothes we wear to the cars

INDUSTRY NEWS we drive, and everything in between. “As a lifelong automobile dealer, I know firsthand just how important retailers are to not only consumers, but also to our associates, their families and the communities they call home,” Kelly continued. “Retail means jobs, retail means growth, retail means opportunity. I consider it a personal duty to help keep these things true by bringing my own private sector experience to the table each and every day on behalf of all those who ‘walk the walk’ and know how our economy truly works.” Kelly is a member of the tax-writing House Ways and Means Committee, where he serves on the tax, trade and Social Security subcommittees. He was chosen for the Legislator of the Year award by the NRF Policy Council because of his support of pro-growth tax reform and his opposition to a controversial border adjustment tax (BAT) proposal that would drive up prices for consumers and potentially force some retailers out of business. n

Skyline Products Helps MFA Oil Company Improve Pricing Efficiency at New Petro-Card 24 Cardlock Fuel Station Skyline Products, a leading manufacturer of electronic fuel price signs, announced that it has been selected by MFA Oil Company to provide LED price signs to a new Petro-Card 24 cardlock fuel station located in Hamilton, Missouri. The two LED price signs will provide seamless integration to Fiscal, the company’s existing point of sale (POS) system, allowing fuel prices to be pushed directly to the price sign. “Skyline was our top choice for this project due to their quality, legibility and robust, native integration with Fiscal Systems,” said Kenny Steeves, MFA Oil Vice President of Bulk and Propane Plant

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Operations. “Many of our existing sites have manual price signs that lack visual appeal and require too much staff time to update. The ability to push prices through POS will be a significant timesaver over the long term.” “We’ve seen many cardlock locations replace manual price signs with Skyline’s electronic price signs,” said Chip Stadjuhar, President and CEO of Skyline Products. “The benefit is two-fold: it allows the retailer to change fuel prices faster and more accurately while also letting passenger vehicles know that they are invited to purchase from these locations. The increase in volumes and gross profit can be substantial.” This was the goal for Petro-Card 24. This newest station was built next to a major four-lane highway with the goal of attracting passenger vehicles and traditional fleet card accounts. MFA Oil plans to replace its older, manual price signs at many of the company’s cardlock stations over the next several years. n

What Does That Mean

Test Your FMN Acumen

The list below represents acronyms used in this issue of Fuel Marketer News. °C °F API ASCE ATF ATG ATRI AUS 32 b/d CAFE CARB CDL CNG CO2 CRM DEF DOE DOT EEOC EGR EIA ELD EPA EPAct EPDM EV FCRA FMCSA FTL GDP GHG gpm GVWR HDPE HOS HOT HOV HV

Degrees Celsius Degrees Fahrenheit American Petroleum Institute American Society of Civil Engineers Automatic Transmission Fluid Automatic Tank Gauge American Transportation Research Institute

L/min LCFS MSA MVR NACS NERA NHS NOx NPRM NREL NYMEX OEM OOIDA

Aqueous Urea Solution Barrels Per Day Corporate Average Fuel Economy California Air Resources Board Commercial Driver’s License Compressed Natural Gas Carbon Dioxide Customer Relations Management Diesel Exhaust Fluid U.S. Department of Energy U.S. Department of Transportation Equal Employment Opportunity Commission

OPEC PEI PM PMAA ppm PRA PRE PTFE Q&A RFS RIN ROI rpm RRTF RVP SaaS SCR SPCC

Exhaust Gas Recirculation U.S. Energy Information Administration

Electronic Logging Device U.S. Environmental Protection Agency Energy Policy Act Ethylene Propylene Diene Monomer Electric Vehicle Fair Credit Reporting Act Federal Motor Carrier Safety Administration Full Truckload Gross Domestic Product Greenhouse Gas Gallons Per Minute Gross Vehicle Weight Rating High-Density Polyethylene Hours of Service High-Occupancy Toll High-Occupancy Vehicle Hybrid Vehicle

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SUV TIF ULSD US$ UST VFD VMT 93

Liters Per Minute Low Carbon Fuel Standard Metropolitan Statistical Area Motor Vehicle Record National Association of Convenience Stores National Economic Research Associates National Highway System Nitrogen Oxides Notice of Proposed Rulemaking National Renewable Energy Laboratory New York Mercantile Exchange Original Equipment Manufacturer Owner-Operator Independent Drivers Association Organization of the Petroleum Exporting Countries

Petroleum Equipment Institute Preventative Maintenance Petroleum Marketers Association of America

Parts Per Million Price Reporting Agency Previous Record of Employment Polytetrafluoroethylene Question and Answer Renewable Fuel Standard Renewable Identification Number Return on Investment Revolutions Per Minute Regulatory Reform Task Force Reid Vapor Pressure Software as a Service Selective Catalytic Reduction Spill Prevention, Control and Countermeasure Sport Utility Vehicle Transportation Improvement Fee Ultra-Low-Sulfur Diesel U.S. Dollars Underground Storage Tank Variable Frequency Drive Vehicle Miles Traveled

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ADVERTISER’S INDEX

OUR ADVERTISERS COMPANY

PAGE

COMPANY

ADD Systems............................ Inside Front Cover

North American Bancard.................................... 5 OmegaFlex......................................................57

Advanced Fuel Solutions...................................91

RDM................................................... Back Cover

AIMS...............................................................12

REG..................................................................19

American Coalition for Ethanol......................... 83

Roth................................................................41

Ascentium Capital............................................89

Rovanco.......................................................... 80

Biobor...............................................................9

Scully..............................................................81

Blackmer.......................................72 – 74 and 87

Shaw Development......................................... 65

Cummins & White............................................61

Sheilds, Harper & Co................................. 36 – 37

EPIC News+Data...................................24 and 48

SkyBitz Petroleum Logistics..............................27

FPPF......................................... Inside Back Cover

Source North America...................................... 51

Integer DEF Forum........................................... 79

SPATCO........................................................... 29

Integer DEF Market................................... 22 – 23

Tanknology..................................................... 68

Integer Emissions Summit................................77

TFFA Fuels Summit...........................................90

Keystone.........................................................47

Thunder Creek.................................................52

Liquid Controls................................................ 39

Trinium........................................................... 84

Lock America................................................... 88

ValvTect....................................................30 – 31

Lomosoft.........................................................35

WPMA Expo.....................................................92 Yara................................................................ 82

MISCO.............................................................43

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