Fuels Market News Magazine Summer 2019 by Fuels Market News

SUMMER 2019

Your Source for News and Information

Race Between

Electric and Liquid Fuel Vehicles

A Force in

Mobile Fueling

Truck Roundup

Summertime E15

AI: The Robots

and RIN Reform

Are Here!

F U E L M A R K E T E R S • F U E L R E TA I L E R S • C O M M E R C I A L F U E L S

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It’s the 50th Anniversary of the Apollo 11 moon landing! See Brian Reynold’s article on page 56.

6 How the Race

Between Electric and Liquid Fuel Vehicles Plays Out by Joe Petrowski

16 Summertime E15 and RIN Reform by Keith Reid

30 The Robots Are Here!

by Roy Strasburger

46 A Force in

Mobile Fueling by Keith Reid

50 Biofuels

for Aviation by Dean Hislop

64 TRUCK ROUNDUP

The Apollo 11 space vehicle rises from the launch pad. 16 July 1969. Courtesy NASA.

features

The Search for the Gulf Lunar Module Eagle

contents 10 by Department

PUBLISHER'S NOTE

FUELS & SUPPLY

Diesel’s Future Role in Trucking by Allen Schaeffer

Head Like a Hole by John Eichberger

RETAIL OPERATIONS

Using Technology to Get the Best Fuel Price Possible by Keith Reid

Destination Unknown—E15 by Joe O’Brien

Good News and Sobering News for Convenience Retailing by Joe Petrowski

What Site Operators Need to Do to Meet the Updated EPA Requirements by Angela Wisdom

Fiberglass Tank Sumps Can Help Retailers Stay Ahead of the Regulatory Curve by Ed Kammerer

WHOLESALE & FLEET OPERATIONS

What Site Operators Need to Do to Meet the Updated EPA Requirements

Wet Hosing Without a CDL or HAZMAT

Ending Injuries from Slips, Trips and Falls

Wet Hosing Without a CDL or HAZMAT by Keith Reid

COMMERCIAL FUELS

Ending Injuries from Slips, Trips and Falls by Jane Jazrawy

BUSINESS OPERATIONS

Environmental Issues in a Mergers and Acquisition Transaction by Josh Mikels

71 72

FMN ACRONYMS ADVERTISER’S INDEX

Head Like a Hole

Environmental Issues in a Mergers and Acquisition Transaction

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PUBLISHER’S NOTE

A note from

EDITORIAL STAFF

Gary Bevers, Group Publisher Welcome to the Summer 2019 Issue of Fuels Market News Magazine.

Then, in 1913, the Ford Model T, created by the Ford Motor Company, became the first affordable automobile to be mass-produced on a moving assembly line, and the internal combustion engine took off as the clear winner of the race! Less expensive to produce and operate, it drove faster and farther and thus was more practical for everyday transportation use.

As summer driving hits full stride, we find that gas prices this year are actually down from last month and from last year. This is great news for consumers as this trend runs counter to all the news stories expounding on how oil companies want to gouge drivers just as they are leaving on their summer vacations.

It has been over a hundred years since the invention of the Model T and there have been huge progressions in the development of both gasolinepowered and electric vehicles; however, significant challenges remain for electric vehicles. In my mind, electric vehicles have an uphill battle to fight because they:

Ironically, seven states are using this opportunity to raise gasoline taxes and push gas prices back up. It is not just ironic; it is purposeful and with the clear intent to cause traditional transportation fuels to become expensive in order to benefit “green fuels” growth. As we have learned from the “Green New Deal,” there is a desire to eliminate all fossil fuels, and that can only be made possible with a costeffective alternative. And, according to the “collective brain trust,” that alternative should be electric power. In this issue of FMN, Joe Petrowski explores the current race between liquid-fueled and electric vehicles.

1. Are still more expensive to purchase than gasoline-powered vehicles 2. Produce three to four times more CO2 than fossil fuels 3. Cost more in fuel per vehicle, per year 4. Generate no highway trust funds or general revenue

For some perspective, here is a brief history of the automobile engine:

5. Cost more to insure and maintain 6. Create inherent range anxiety

1769—First steam-powered automobile

The bottom line is that although electric vehicles have greatly improved in the last 100 years and clearly have their place in the transportation market, they won’t replace fossil fuel-powered vehicles anytime soon.

1808—First hydrogen-powered automobile 1832—First electric-powered carriage 1870—First gasoline-powered combustion engine

I hope you enjoy this issue of Fuels Market News Magazine, and we always appreciate your thoughts and feedback. Visit our website at www.FuelsMarketNews.com, and while you’re there, please go ahead and subscribe to one of three weekly e-newsletters as well as our newest publication, the Fuels Market Watch: Friday Report, which analyzes the week’s news and statistics regarding fuels and pricing. Feel free to reach out to me personally at GBevers@FMNweb.com or my cell: 832-444-7675. I’m always happy to hear from you.

1881—First automobile powered by electricity 1885—First gasoline-powered “production” automobile So, gasoline was the last engine invented and commercialized for automobile power. Electric vehicles were among the earliest automobiles and enjoyed popularity between the late nineteenth century and early twentieth century when electricity was the preferred method for automobile propulsion—and they out-sold gasoline-powered vehicles even though they were more expensive.

CEO & Group Publisher Gary D. Bevers GBevers@FMNweb.com Editorial Director & Digital Publisher Keith Reid KReid@FMNweb.com Director of Production & Managing Editor Kathy Bevers KBevers@FMNweb.com Digital Editor Scott A. Croom SCroom@FMNweb.com Industry Analysts/Editors Frank M. Hunter FHunter@FMNweb.com Nancy Yamaguchi, Ph.D. NYamaguchi@FMNweb.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 Ed Burke Lisa Calhoun George A. Overstreet, Jr. Joseph H. Petrowski Art Director Jeff Beene JBeene@FMNweb.com Marketing Director Joe A. Martinez JMartinez@FMNweb.com Advertising Representative Bill Kaprelian 262-729-2629 BKaprelian@FMNweb.com

Gary Bevers CEO & Group Publisher

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by Joe Petrowski

How the Race Between

Electric and Liquid Fuel Vehicles Plays Out

The United States currently has 340 million vehicles and

â&#x20AC;&#x153;

130 million households, or 2.6 vehicles per household. Currently only 3 million vehicles are electric vehicles (EVs) or hybrid, with 273 million gasoline powered vehicles (including motorcycles), 20 million ďŹ&#x201A;ex-fuel vehicles and 44 million diesel-fueled vehicles. Those making combustion-powered vehicles and producing or selling liquid fuels are frightened by the prospect of the EVs growing in the U.S. as they have in China and the Scandinavian countries where EVs are over 25% of new sales.

FMN Magazine FMN Magazine

6 6

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Those making combustionpowered vehicles and producing or selling liquid fuels are frightened by the prospect of the EVs growing in the U.S. as they have in China and the Scandinavian countries where EVs are over 25% of new sales.

FUELS & SUPPLY

“

While optimism always outruns reality, even if under the most optimistic scenario (price and regulations), EVs achieve one-fourth of the sales of the 18 million new vehicles sold every year by 2025, it will mean an additional 5 million electric vehicles added to the fleet every year. That would mean almost 15 years before we reach the 100 million EV mark, leaving a substantial amount of liquid fuel vehicles on the road. What to watch and what may allow the liquid fuels market to survive jointly with EVs is the multiple car household. Current interesting facts on multi vehicle households:

With 454 million liquid fuel vehicles, we will still need 250 billion gallons of liquid fuel per year; or 16.5 million barrels/day of petroleum and ethanol production…

What this leads us to is the following conclusion. By 2025 we should have:

1 160 million households (given

1 30% of households are one car

historical household formation— and millennials getting away from their screens)

(39 million households).

2 34% of households are two-car households

2 2.9 vehicles per household

(44 million households).

(at historical growth rates and the Dakotas—for once—being trendsetters)

3 36% of households are 3 or more vehicles (47 million households).

4 Washington DC is biggest single-car owner city

3 Which gives us 464 million vehicles

with 63% of households owning one car.

broken out as follows:

5 In the Dakotas, 13% of households have 5 or

•

more vehicles.

10 million EVs vehicles (in Elon Musk’s wildest dreams)

6 There is no correlation between income and multi-car

•

ownership. In fact, it is actually an inverse relationship (the richer you are, the more likely you will have one vehicle).

30 million flex-fuel vehicles (in the Renewable Fuel Association’s wildest dreams)

•

7 There is a strong relationship between multi-vehicle

22 million diesel vehicles (only CNG and LNG threaten this sector, not electric)

ownership and rural/urban split. Urban households (NYC, DC, San Francisco) dominate single vehicle households while Texas, Montana, Nebraska, Missouri, Kansas, New Mexico and Oklahoma lead the multivehicle group.

•

402 million gasoline vehicles

With 454 million liquid fuel vehicles, we will still need 250 billion gallons of liquid fuel per year; or 16.5 million barrels/day of petroleum and ethanol production; or 193,000 retail fueling facilities compared to 154,000 today, even if the average site does 25,000 gallons per week. n

Note to policy makers:

1 Do not stop drilling or growing corn. 2 10 million EVs remove 22 million

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tons of CO2.

3 Allow retailers and marketers to purchase greenhouse gas offsets (one tree absorbs 48 pounds of CO2/year). On the last point, a retailer selling 20,000 gallons per week would need to plant or have someone plant for him 170,000 trees to mitigate entirely their greenhouse gas footprint. And possibly we would spur an industry to remove greenhouse gases without bankrupting the country or stop living. It’s also easier than putting a methane-capture diaper on a cow!

Joe Petrowski Joe has had a long career in international commodity trading, energy and retail management and public policy development. He currently serves as Director of Fuels for Yesway, where he oversees all operations of the fuels team, including pricing, procurement and management of the firm’s fleet services program. In 2005, he was named President and CEO of Gulf Oil LP and elected to the Gulf Oil LP Board of Directors. In October of 2008, he was named CEO of the now combined Gulf Oil and Cumberland Farms, whose annual revenues exceed $11 billion and that now operates in 27 states. In September 2013, Petrowski stepped down as CEO of The Cumberland Gulf Group. He is Managing Director of Mercantor Partners, a private equity firm investing in convenience and energy distribution and a member of the Gulf Board.

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by Allen Schaeffer

Diesel’s FUTURE ROLE IN Trucking Aspirations and predictions for new fuels and technologies are high, but these must be evaluated in the context of reality to meet the needs of the trucking industry both today and tomorrow. The new generation of diesel technology continues to evolve to ensure that truckers can deliver their cargo anywhere, anytime and under any conditions. Diesel—the most energy efficient internal combustion engine—remains the technology of choice in the trucking industry. Diesel’s dominance in trucking has held steady over many decades and challenges from many

other fuel types, thanks to its unique combination of unmatched features: proven fuel efficiency, economical operation, power, reliability, durability, availability, easy access to fueling and service facilities and now, near-zero emissions performance. And diesel technologies are not standing still. Right alongside the exploration of alternative powertrains, manufacturers are developing even cleaner, more efficient diesel engines. From coupling with hybrid-electric technology and battery storage systems to pushing thermal efficiency boundaries, the new generation of advanced diesel technology is part of a sustainable future. New renewable diesel fuels and advanced biofuels deliver further benefits when paired with diesel engines: lower carbon dioxide emissions and significant reductions in ozone precursors. These renewable biofuels are helping public and private fleets in cities and states across the country take meaningful steps toward a low-carbon future. Our shared goal is to provide goods movement technologies that meet the needs of the customer and society and are economically viable. The new generation of advanced diesel technology is already competing in the future, today.

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FUELS & SUPPLY

“”

Heavy-Duty Trucking in the U.S. • More than 4.9 million new-generation dieselpowered Class 8 (tractor-trailer size) vehicles are on the road in America today—that means 36 percent of America’s Class 8 truck fleet runs on the newest, cleanest diesel technologies.

seven Class 8 diesel trucks in the demonstration exceeded an average of 10 mpg, even with heavy loads of more than 65,000 lbs., with some trucks exceeding 12 mpg. This represents a dramatic improvement in ton-mile freight efficiency.

• More than 97 percent of all U.S. Class 8 trucks run on diesel fuel. • About 21 percent of all commercial trucks (Class 3 – 8) use gasoline. Only about 4 percent use other fuels, with those using natural gas amounting to less than 1 percent. • The 4.9 million new-technology diesel trucks on America’s roads have removed more than 26 million tonnes of nitrogen oxides (NOx) and 59 million tonnes of carbon dioxide (CO2) from the air. • In 2014, the first-ever fuel economy rule for commercial vehicles kicked in. Three out of every four of these trucks are powered by diesel, and more than 97 percent of the larger Class 8 trucks are powered by diesel. Technologies designed to meet these rules will make the fuel-sipping diesel engine sip even less fuel. Between 2014 and 2018, these fuel-efficient trucks will have saved 530 million barrels of crude and eliminated 270 million tons of carbon dioxide. • All new diesel trucks sold since 2011 meet stringent emissions standards established by the U.S. Environmental Protection Agency (EPA), California Air Resources Board (CARB) and the National Highway Traffic Safety Administration (NHTSA). The EPA’s Cleaner Trucks Initiative, launched in November 2018, will help bring the next generation of commercial diesel trucks even nearer to zero emissions than ever before. • As of March 2019, U.S. sales of Class 8 trucks was up by nearly 18 percent over last year. By the end of 2019, ACT Research analysts forecast U.S. sales of new Class 8 trucks will top 264,000. The overwhelming majority of these trucks will be powered by advanced diesel technology. • Research and development of new clean diesel and hybrid technologies continue to push the envelope. Engine manufacturers participating in the U.S. Depart ment of Energy’s SuperTruck program are pursuing 57 percent thermal efficiency for Class 8 trucks. These benefits are delivered by clean diesel technology.

• Diesel-powered trucks, trains, ships and intermodal systems move more than 80 percent of all cargo in the U.S. and more than 90 percent throughout the world. According to The Fuels Institute, diesel will remain the predominant fuel for commercial vehicles through at least 2025, when it retains 96 percent of the mediumand heavy-duty market. Ultra-low-sulfur diesel fuel is available at all truck stops and more than half of all retail fuel stations across the country. • Today’s heavy-duty diesel engines virtually eliminate criteria emissions, including particulate matter and NOx. • It would take more than 60 of today’s generation of diesel-powered heavy-duty commercial trucks to equal the emissions of a single U.S. model made in the pre2000 era. • The Health Effects Institute Advanced Collaborative Emissions Study (ACES) undertook the most comprehensive emissions and health testing examination done to date of new-technology heavy-duty diesel engines meeting the U.S. 2007/2010 on-road diesel emissions standards. The study reports the effectiveness of diesel particulate filters in reducing particulate matter emissions by more than 90 percent and of selective catalytic reduction systems in reducing smog-forming NOx emissions by 94 percent. • Renewable diesel fuel cuts greenhouse gas emissions by more than 80 percent (compared to fossil-based diesel) and reduces emissions (soot) and does so without requiring any engine or vehicle conversions or the buildout of expensive new infrastructure. n

READ MORE at FuelsMarketNews.com

Allen Schaeffer

• Diesel technology offers truckers the greatest fuel efficiency for the dollar. As evidenced in the recent “Run on Less” campaign from the North American Council on Freight Efficiency, after more than 50,000 miles, the FMN Magazine

Diesel’s dominance in trucking has held steady over many decades and challenges from many other fuel types, thanks to its unique combination of unmatched features: proven fuel efﬁciency, economical operation, power, reliability, durability, availability, easy access to fueling and service facilities and now, near-zero emissions performance.

Allen is the executive director of the Diesel Technology Forum. The Diesel Technology Forum is a non-proﬁt organization dedicated to raising awareness about the importance of diesel engines, fuel and technology.

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by John Eichberger

Head Like a Hole T

here are some issues that so entrench stakeholders into their own camps that it is difficult to weigh in to try to provide some perspective without taking a side or being attacked. Yet, that is exactly what the Fuels Institute is supposed to do—look at data objectively and try to help advance the discussion without a desired outcome. So this month, let’s grab hold of that third rail and talk about E15. I am going to buckle up for this one, because I expect to get earfuls from many of my friends on both sides of this issue. With that expectation, let’s play with the music selection. I recently saw Buckcherry live in a very small venue (capacity of 650), and it was a great show. They opened with their cover of Nine Inch Nails hit song Head Like a Hole. I love both versions—the power and the energy of this song is incredible. Its relevance to this topic is loose, but think about this: if you don’t want to look at the data objectively, you have essentially stuck your head into a hole.

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â&#x20AC;&#x153;â&#x20AC;?

While the debate about E15 has been furious, market expansion has been slow. According to Prime the Pump, a pro-ethanol infrastructure funding group, there are nearly 1,800 stations in the U.S. selling E15, and they report that dozens of terminals now offer E15 directly at the rack, compared to only five terminals that did so in 2017.

Necessary Disclaimer: The Fuels Institute does not advocate for nor weigh in regarding any regulatory, legislative or market initiative and, for that reason, it has no position on whether E15 should be sold year-round or at all. But, given the significance this issue has for the market as a whole, I thought it might be interesting to look at some of the data. The administration is working now on a rule enabling the year-round sale of E15, a gasoline product containing 15% ethanol. To date, sales have been restricted to nonsummer months due to vapor pressure regulations. There are various perspectives on this regulatory approach, and it is likely that the administration will be sued, whichever way they ultimately act. Some believe the administration has the authority and justification to make this change independently; others believe only an act of Congress can change the regulations affecting the sale of E15.

The Fuel Retailers While the debate about E15 has been furious, market expansion has been slow. According to Prime the Pump, a pro-ethanol infrastructure funding group, there are nearly 1,800 stations in the U.S. selling E15, and they report that dozens of terminals now offer E15 directly at the rack, compared to only five terminals that did so in 2017. The geographic diversity is impressive, but the store count is very limited. With just 1,800 stores selling E15, market penetration is less than 2%. But, there is significant opportunity for growth. (For more insight into the retailer perspective, check out the Fuels Institute article that was featured in NACS Magazine in February 2018.) Personally, I have had many conversations with fuel retailers and have learned that the issue of year-round sales is a significant hurdle that has kept expansion limited. Imagine a customer who on May 31 refuels with E15, but on June 1 is told they are not allowed to do so. How might that customer react? The reaction will likely not be directed at the regulators but at the retailer who yesterday sold him a product that he is not allowed to use today, potentially eroding trust in that retailer. I have had many retailers tell me that if this restriction were removed, they would much more seriously consider adding E15 to their product offer. There are also compatibility issues that must be addressed if a retailer is going to sell E15. All equipment storing and dispensing motor fuel must be listed as compatible with that fuel. This means underground storage tanks, pipes, connectors, attached equipment and dispensers all must be compatible. If a retailer does not know the compatibility rating of equipment underground, it is incumbent upon that retailer to replace unknown equipment to ensure compatibility or risk major potential liability. Above ground, most dispensers are listed only for E10â&#x20AC;&#x201D;but E25 compatible units can be acquired for pretty much the same price as E10 units, assuming the retailer is ready to replace his dispensers. This potential capital investment to upgrade facilities is another impediment to E15 expansion.

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Head Like a Hole

The Vehicles

“”

The EPA has said vehicles since model year 2001 are fair game—but will that cover a retailer in the event E15 causes a warranty violation in a more recent vehicle?

Ultimately, assuming a retailer has compatible equipment and is ready to sell E15, he has to consider his customers. The EPA has said vehicles since model year 2001 are fair game—but will that cover a retailer in the event E15 causes a warranty violation in a more recent vehicle? How quickly have the automakers adapted their production and warranties to open the door for E15? E15 advocates point out that more than 80% of vehicles on the road today are eligible to use E15 under the EPA’s approval. They argue that EPA would not have approved the fuel unless it was confident that the fuel would pose no harm to the environment or risk to the vehicles for which it was approved. (“E15 is the most tested fuel in history,” I have been told repeatedly.) They further point to the billions of miles that have been driven using E15 (specifically referencing the use of the fuel in NASCAR) without problems. I must admit that I am personally aware of no highprofile issues associated with E15, although that does not mean that there have been no issues experienced by consumers. EPA’s approval of E15 for 2001 and newer vehicles is not necessarily supported by the automotive industry, however. The American Petroleum Institute (API) has been monitoring warranties to better understand this situation. If you look back to 2001, there will be at least 10 years in which E15 was not mentioned in vehicle warranties because it did not exist. Since then, there has been quite a bit of progress in terms of automakers adjusting their warranties to permit E15—but it is not ubiquitous. Assuming the data from API is correct, the sales market share by manufacturers of E15-warrantied light duty vehicles from 2014 – 2018 is shown in the figure below, excluding models that API has indicated were not approved for E15. Now, I recognize this is not exact because this data is based upon sales, many of which might be from the prior model year. But it gives us an idea of market share potential— ranging from about 58% of vehicles sold to nearly 90% in 2018.

Vehicles Warrantied for E15 100% 90%

VW Auto Group

80%

Toyota

70%

Subaru

60%

Nissan

50%

Jaguar/Land Rover

40%

Hyundai/Kia

30%

20%

Ford

10%

Chrysler

2014

2015

2016

2017

2018 Sources: American Petroleum Institute, WorldAuto

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Head Like a Hole

New Vehicles as Share of Fleet on the Road

“”

The debate about E15 will continue for many years, regardless of what happens with the proposal to enable year-round sales.

80% 70% 60%

Data and Assumptions: EIA LDV Fleet Size – 243.8 million in 2018 EIA LDV Sales Forecast – 16.1 million/year average

50% 40% 30% 20% 10%

So clearly, the majority of the automobile manufacturing industry has grown to accommodate E15, but not all of it, which is a major point of those who express caution about E15. Another thing to remember is a chart I show all the time—how long it takes to convert the fleet. If the first warrantied vehicles started to enter the market in 2012 and by 2018 nearly 90% of new vehicles were so warrantied, how long will it take for the fleet to be represented by a majority of vehicles approved by manufacturers for E15? I am not going to attempt to do the actual math, but the figure above reminds us how long it takes to turn over the fleet with a new vehicle feature, assuming 100% adoption on January 1, 2018.

0% 2018 2019

2020 2021

2022 2023

2024 2025

2026 2027

2028 2029

2030 2031

2032 2033

2034 2035

Source: U.S. EIA Annual Energy Outlook 2018

Final Perspective The debate about E15 will continue for many years, regardless of what happens with the proposal to enable year-round sales. I believe that, should year-round sales be approved, there will be a substantial increase in the number of stations that sell E15. This is a product currently offered with an octane rating of 88 (slightly higher than regular grade gasoline) at a price point that is often 5 to 10 cents per gallon less expensive. I have argued for years that consumers do not understand octane, but they believe a higher number means it is better and typically more expensive. When E15 is presented with a higher number at a lower price, it may seem like Christmas every day for some consumers. That is a gift many retailers will want to deliver. Today, nearly all vehicles on the road are approved by EPA to use E15. And each year, more and more consumers are driving vehicles that are warrantied for E15. This may not be the case for the majority today, and it may be many years before the number of E15-warrantied vehicles represents the majority, but it is coming in the near future. This situation is not sufficient to satisfy the concerns of some stakeholders, but it is reassuring to the aspirations of others. Regardless of the outcome you prefer, understanding the data is important—and I love data. n

at FuelsMarketNews.com

John Eichberger John is the executive director of the Fuels Institute. The Fuels Institute, founded by NACS in 2013, is a non-proﬁt research-oriented think tank that evaluates market issues related to vehicles and the fuels that power them, incorporating the perspective of diverse stakeholders to develop and publish peer-reviewed, comprehensive, fact-based research projects. The Fuels Institute is a non-biased organization that does not advocate. www.fuelsinstitute.org.

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by Keith Reid

Summertime E15

and RIN Reform Another renewable fuel standard (RFS) milestone passed on May 30, 2019, when EPA finalized the required regulatory adjustments to allow gasoline containing 15 percent ethanol, or E15, to be sold yearround. The primary impediment from an EPA perspective had been the increased evaporative nature of ethanol blended fuels. This is exasperated in the hotter, summer months. To allow the now ubiquitous E10 gasoline to be sold under Clean Air Act requirements, it was granted a 1-psi Reid Vapor Pressure (RVP) waiver for summer blends and that is now extended to E15. In related news, EPA took advantage of the rulemaking opportunity to address some concerns with the renewable identification number (RIN) compliance system. RINs are a market mechanism that was added to the RFS program to boost biofuel adoption. Obligated parties, which are gasoline and diesel refiners/importers use RINs to demonstrate compliance with the RFS’ Renewable Volume Obligation (RVO). These RVOs are set each year to help push

a determined amount of biofuel into the market. A RIN is generated when an obligated party produces a gallon of renewable fuel. They can be traded between parties or bought independently or attached to a gallon of biofuel on the open market. Further, obligated parties can carryover unused RINs. EPA had become concerned though commentary feedback in the rulemaking process that there were manipulations and fraud in the RINs market. EPA explored a range of adjustments they considered useful to address these concerns. Considerable blowback resulted to many of the proposals, and in the end, two proposed changes to the RIN program were adopted out of five: • Requiring public disclosure when RIN holdings exceed speciﬁed thresholds • Collecting additional data to improve market transparency and enhance EPA oversight These have generally been well received, especially compared to the proposals that were dropped.

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Pushing E15 The Trump administration had been promoting the idea of allowing yearround E15 sales as far back as early 2018. The push for this solidified October 9, 2018, when Trump announced publicly that he had signed a memo directing EPA to move forward. As he stated, “Today we are unleashing the power of E15 to fuel our country all year long. Promises made, promises kept.” Since early in his presidential campaign Trump had pushed for an “all of the above” energy policy that would support coal, oil and gas from fracking, conventional oil and gas as well as a continuation of the RFS maintaining ethanol and biodiesel in the fuel mix. While this broad approach was not necessarily a win for the specific, and highly competitive, corporate fuel and agribusiness entities, it did have strong appeal to farmers, coal miners, oilfield “roughnecks,” pipeline builders and any unions that help support these professions. It fit in well with his campaign focus on American jobs, grassroots votes and cheaper energy. The administration’s move on E15 can be seen in a similar light. The low-level trade war being fought against China has already seen tariffs put in place that impact American agricultural producers. In addition to a range of multibilliondollar aid packages, year-round E15 will certainly benefit corn growers. Interestingly, a March CNN/Des Moines Register poll of registered Republicans in Iowa found the Trump support remained strong with 81% approving of Trump’s job performance. The administration’s policy and cash support undoubtably help, but as a May 19, 2019, CNBC Associated Press article covering the poll results reported, the previous trade relationship with China was hardly a great deal for American farmers. The agricultural considerations are noted in the rule: In sum, the primary consideration underlying the 1-psi waiver is to limit gasoline volatility while promoting the use of ethanol due to its importance to energy security and the agricultural sector. EPA addressed a handful of regulatory hurdles to cover E15 under the E10 waiver

“

The low-level trade war being fought against China has already seen tariffs put in place that impact American agricultural producers. In addition to a range of multibillion-dollar aid packages, year-round E15 will certainly benefit corn growers.

that can be found in the full-rule PDF link noted at the end of the article. Essential, as the rule noted: The interpretation in this action represents a change in EPA’s prior interpretation and, as explained in more detail below, is appropriate in light of the increased presence of E15 in the gasoline marketplace. This interpretation is further supported by the fact that the conditions that led us to provide the original 1-psi waiver for E10 in 1990 are equally applicable to E15 today. EPA anticipates E15 to have “similar (if not slightly lower) RVP than E10.” The changes do not establish that E15 is “substantially similar” to E10 in regard to its use in vehicles produced prior to 2001, heavy-duty gasoline engines and vehicles, on and off-highway motorcycles, nonroad engines, vehicles and equipment. The fuel is still prohibited for those engines. The response from the impacted industry parties broke along expected lines. Needless to say, ethanol producers were pleased with the new E15 regulation. Renewable Fuels Association (RFA) President and CEO Geoff Cooper issued the following statement: “The ethanol industry thanks President Trump for personally championing this critical regulatory reform that will enhance competition, bolster the rural economy, and provide greater consumer access to cleaner, more affordable fuel options. We have always agreed with the President’s assertion that the outdated summertime prohibition on E15 was ‘unnecessary’ and ‘ridiculous.’” The American Coalition for Ethanol (ACE) CEO Brian Jennings issued the following statement: “EPA’s rule means U.S. retailers finally have the opportunity to offer E15 to their customers year-round as the FMN Magazine

FuelsMarketNews.com

peak summer driving season kicks off this weekend. We’re grateful EPA kept the President’s promise to get the rulemaking done on time and we will work to ensure retailers understand their hands are no longer tied by red tape preventing them from offering a lower priced, higher octane E15 fuel to their customers all year starting this summer. For the ethanol industry and farmers, this means greater market access—more ethanol demand over the long term as additional retailers begin offering E15.” Ethanol industry association Growth Energy CEO Emily Skor stated: “With yearround E15, retailers will have the regulatory certainty they need to offer American drivers a cleaner, more affordable fuel choice throughout the year. This action also means savings for American motorists at the pump and a sorely needed market for farmers who are facing a devastating economic downturn. We estimate this one change will generate over a billion new gallons of ethanol demand in the next five years. Over time, demand for E15 could boost the market for American grain by an additional two billion bushels.” “Big Oil,” as big agribusiness likes to call the fossil fuel industry was not amused, to put it mildly. “Extending this waiver is an anti-consumer policy that risks causing costly engine and fuel system damage to nearly three out of four vehicles on the road today,” said American Petroleum Institute (API) Vice President of Downstream and Industry Operations Frank Macchiarola. “EPA has acted outside its statutory authority in granting year-round E15 and rushed through the rulemaking process in order to meet an arbitrary deadline. This prema-

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Policy Brief: Summertime E15 and RIN Reform

EPA takes claims of RIN market manipulation seriously. Though, as stated in the proposal and reaffirmed in this action, we have yet to see database evidence of such behavior, the potential for manipulation is a concern.

ture policy attempts to push E15 into the market before it is ready.” Even less amused was the American Fuel & Petrochemical Manufacturers association. Perhaps this was due, in part, to the unrelenting attack on small refinery exemptions covered below. Regardless, Chet Thompson, President and CEO of the AFPM issued the following statement about a petition filed by AFPM with the U.S. Court of Appeals for the District of Columbia Circuit for review of the EPA E15 rule: “We fully expect the court’s ruling to align with what the EPA and Congress have each previously concluded: the plain language of the Clean Air Act does not authorize an RVP waiver expansion beyond E10. Nothing has changed—a waiver for E15 is unlawful, plain and simple.” Thompson also issued a statement on the need for reform of the Renewable Fuel Standard (RFS) as the President prepares to visit an Iowa ethanol plant on Tuesday. “An E15 waiver is in no way a fix for the shortcomings of the RFS, which has for years plagued markets with volatility. Following his visit to Iowa, we invite the President to listen to refinery employees and constituents in Pennsylvania, Ohio and elsewhere to fully understand the economic harm the RFS is causing and the overwhelming need for its reform.” Growth Energy has announced a counter by filing a motion in the U.S. Court of Appeals for the District of Columbia Circuit to intervene in support of the EPA. “It’s no surprise that oil companies want to block consumer choice at the fuel pump,” Skor said. “We saw the same kind of frivolous challenges when Growth Energy first secured approval of E15 in 2011. We beat them then, and we’ll beat them now.”

Fuel marketers and retailers were, for the most part, neutral on the issue as a whole. A joint release from NATSO (the national association representing truckstops and travel plazas), the National Association of Convenience Stores (NACS) and the Society of Independent Gasoline Marketers of America (SIGMA) stated that they “did not object to the sale of E15 year-round.” Hardly a raging endorsement, but one that reflects the reality in the marketplace. As Growth Energy points out, E15 is sold at more than 1,800 locations in 31 states, with more expansion on the horizon. Retailers include some of the larger operations such as Sheetz, Kwik Trip, Cenex, RaceTrac, QuikTrip, Casey’s, Family Express and MAPCO sell E15 at least at some of their sites. “This fix provides major regulatory relief for all retailers seeking to offer lower-cost, higher-octane options at the fuel pump,” said Mike Lorenz, Executive Vice President for Sheetz in a Growth Energy press release. “For too long, retailers had to pay millions to retool and relabel pumps each summer and fall, which creates needless confusion for drivers. Now our customers will have uninterrupted, yearround access to E15 and a chance to save money during the busy summer travel season.” On the flip side, there remain concerns over such issues as misfuelling liability and dispensing equipment compatibility. Petroleum Marketers Association of America (PMAA) is one of the industry groups that has objected to the expansion of E15, primarily over materials compatibility concerns with underground storage tanks. FMN Magazine

FuelsMarketNews.com

RIN Reforms Going into the most recent rulemaking process, EPA had received some comments that stated concerns over manipulations of the RIN market. When EPA announced its initial proposed rule in March, it included the following proposals in its RIN Market Reform Proposal: • Prohibiting certain parties from being able to purchase separated RINs • Requiring public disclosure when RIN holdings exceed specified thresholds • Limiting the length of time a nonobligated party can hold RINs • Increasing the compliance frequency of the program from once annually to quarterly After considerable pushback from virtually all parties, it amended its requirements. The agency stated the following: EPA takes claims of RIN market manipulation seriously. Though, as stated in the proposal and reaffirmed in this action, we have yet to see databased evidence of such behavior, the potential for manipulation is a concern. Accordingly, we are finalizing two reforms to increase our market monitoring capabilities, bring more transparency to the RIN market and discourage RIN holdings in excess of normal business practices. Specifically, we are finalizing the following RIN market reforms: • Requiring public disclosure when RIN holdings held by an individual actor exceed specified limits • Requiring the reporting of additional price and affiliate data to EPA API was pleased with the changes, though it reiterated its desire to end the RFS. “While we are encouraged that EPA limited the scope of the proposed RIN reforms, the rule does nothing to address the ethanol blendwall, which is the main structural problem with the RFS,” said API Vice President of Downstream and Industry Operations Frank Macchiarola. NATSO, NACS and SIGMA commended EPA for finalizing only those aspects that enhance disclosure requirements. In its combined statement: “We are still analyzing the rule, but at first glance we are

FUELS & SUPPLY pleased that EPA appears to have hit the sweet spot here by reasonably enhancing disclosure requirements without altering market participants’ behavior. We appreciate that EPA chose not to promulgate unnecessary regulations that came with a high likelihood of unintended, counterproductive consequences.” ACE echoed the other biofuel players in its statement: “We’re also grateful EPA considered the comments ACE and many others made in opposition to sweeping and unnecessary reforms to the way RIN credits are handled under the Renewable Fuel Standard. Had EPA gone forward with the so-called RIN reforms, it would have dulled the upside benefit of E15 year-round.”

Refiners Exemption As predictable as API’s desire to see the RFS eliminated was the ethanol lobby’s desire to see absolutely no impediment to ethanol expansion even with such a significant win. The issue, not surprisingly given the long running complaints, was their

Policy Brief: Summertime E15 and RIN Reform claimed abuse of small refinery exemptions from ethanol volume requirements which RFA has referred to as a “nightmare.” In a less hysterical response, RFA President and CEO Geoff Cooper stated: “The promise of today’s E15 announcement could be undermined if EPA continues its unprecedented assault on the RFS with indiscriminate small refinery hardship waivers. Against the intent of Congress, EPA has been granting RFS exemptions to refiners without requiring them to demonstrate their claimed ‘hardship’ is somehow connected to the RFS. The demand destruction caused by EPA’s waivers must end. We urge the President to build upon the momentum of today’s announcement by reining in EPA’s abuse of the small refiner exemption program.” As a response, these groups are supporting the bipartisan Renewable Fuel Standard Integrity Act of 2019 from House Committee on Agriculture Chairman Collin Peterson (D-MN), and Reps. Dusty Johnson (R-SD), Dave Loebsack (D-IA),

FMN Magazine

FuelsMarketNews.com

Rodney Davis (R-IL), and Roger Marshall (R-KS). As the National Biodiesel Board (NBB) notes the legislation would require small refineries to petition for RFS hardship exemptions by June 1 each year. The change would ensure that EPA properly accounts for exempted gallons in the annual RVOs it sets each November. “NBB and its members appreciate Representative Peterson’s legislative solution to EPA’s recent flood of small refinery exemptions. This is just one of the many things EPA could do on its own to ensure that the RFS volumes it sets each year are met and the market for biodiesel and renewable diesel remains open,” said Kurt Kovarik, NBB’s Vice President of Federal Affairs. Full final rulemaking on E15 and RIN reform: https://www.epa.gov/renewablefuel-standard-program/final-rulemakingmodifications-fuel-regulations-provideflexibility. n

FMN FUELS MARKET WATCH

FuelsMarketNews.com

The biggest weekly decline in the nation’s stockpile of commercial crude since 2016 helped push oil near $60 per barrel on June 26. That big dip included a new weekly record for U.S. crude exports, hitting 3.77 million barrels of exported oil per day. The U.S. was a net exporter of overall petroleum products for the week, which has only happened a few times. U.S. crude imports also continue to fall. Source: Jordan Blum, “Big dip in crude stocks, record-high exports push oil near $60,” Houston Chronicle, June 26, 2019

Bottom Line: In numerous articles covering this development, declining inventories and increasing exports were cited driving the price of crude. The potential conflict with Iran impacting the Strait of Hormuz— not so much. While a real conflict would undoubtedly have significant price impacts, it’s remarkable to see how little panic arises over “scares” after the fracking revolution.

at FuelsMarketNews.com

Using Technology to Get the Best Fuel Price Possible by Keith Reid

Fuel price modeling analytics have been around for about 20 years or so. The concept, at its most basic, looks to digitally model consumer fuel purchasing behavior relative to price, traffic patterns and competitors in relation to volume and margin. The traditional method has been to have store managers scout local competitors, and then have the person responsible for setting fuel prices use cost and “gut feeling” to figure out how to proceed. It can be a proactive process, or reactive. Quite often it has been “look at what X is doing and let’s match it or be a penny lower.” And, historically that worked very well. It can still work well today. But fuel procurement has become far more complex and the market more volatile, and, there has always been missed opportunity. Price modeling analytics is not used as a tool to replace the human factor, but to enhance those capabilities. What if you could charge 2 cents more, maybe 5 cents more and not lose volume? What if you could afford to be 3 cents less and steal volume? While consumer behavior is heavily focused on price, there are other factors involved. Those factors can change multiple times per day. How do you quantify and adjust to that? Price modeling analytics has grown from more of a niche concept to one increasingly practiced by the larger and mid-sized competitors. While economies of scale can come into play where ROI is concerned, the size of operation that can benefit keeps decreasing. FMN Magazine

FuelsMarketNews.com

RETAIL OPERATIONS

“The sale point data is accumulated in our systems and tools and feeds into the analytics capabilities so that price managers can run sophisticated scenarioplanning based on historical data from their own business and the old price points.”

Niels Skov

PDI SVP, Fuel Pricing Solutions

FMN decided to look at three of the main players in the field for a quick rundown on their solutions:

They take into account the various specific supply demand conditions and therefore the pricing sensitivity and mechanics of particular sites.

FMN: How do you develop the data

PDI

to build up an individual site model?

PDI, a leading global provider of enterprise software solutions to the convenience retail, wholesale petroleum and logistics industries, acquired Inform Information Systems, Ltd. (known commercially as FuelsPricing) in 2018. Headquartered in the UK, FuelsPricing has experience providing analysis and pricing for more than 35,000 retail service stations and over 100,000 business-to-business shipping locations for petroleum wholesalers. It services customers in over 50 countries, ranging from independent retailers to large, multinational integrated oil companies. One pitch for the PDI solution is that it integrates with the range of back office/enterprise/ loyalty solutions offered by the company.

FMN interviewed Niels Skov, PDI’s SVP, Fuel Pricing Solutions, for information on their solution.

FMN: Tell us about the solution. Skov: It was developed in very close collaboration with customers, so the solutions that we have are tailored to their specific processes and to the specific problems they have in the marketplace. It handles the significant data intensity that exists in this area. For example, incorporating competitive prices, the latest in network planning, loyalty programs, et cetera, which are all solutions that are now available in the PDI portfolio. In the solution itself we have techniques that we refer to as market clearing pricing and market clearing mechanics, which are all part of our price optimization solutions. FMN Magazine

Skov: The sale point data is accumulated in our systems and tools and feeds into the analytics capabilities so that price managers can run sophisticated scenario-planning based on historical data from their own business and the old price points. That’s the first point. Secondly, we collect competitive pricing as well. So, focused on specific site environments, it’s set up with relevant competitive price points that need to be considered. Then, now as a part of PDI, a lot of information comes from loyalty programs that enable specific pricing for individual consumers to a degree that we think the industry has not seen in any systematic way. We’ve been working with a number of customers around this and we think that combination is something the marketplace will find extremely useful in the future. You can optimize your pricing in relation to the traffic of trade that is going through your sites in almost any imaginable way. The richness of data and information that price managers and commercial leaders have at their fingertips is very substantial, and we think is unique in the marketplace.

FMN: How often might prices be adjusted during a day?

Skov: That depends on how many times your supply and demand dynamics change down to the site location. For example, do you have a rush hour where the customer flows and queues at your site will accumulate at a particular time? Do you have a competitive environment and a competitive pricing FuelsMarketNews.com

RETAIL OPERATIONS

Using Technology to Get the Best Fuel Price Possible

“The beauty of it is you can run an analysis for a very specific timeframe with a particular strategy in place and see how it does. Then you tweak that strategy and analyze it again to see if it made a difference.”

John Keller

wise, these capabilities that are available for the first time in the marketplace drive adoption. Companies have been trying to achieve similar goals, but with very rudimentary set-ups and systems and often very manual in nature—even down to pen and paper, spreadsheets, et cetera. And, when companies grow and operations start to scale that just becomes harder to do. So that is releasing a lot of latent demand, and I would suggest that is the single most important aspect of taking these solutions to market.

FMN: What are the benefits with using price analysis?

Skov:

Division Director, PriceAdvantage

I think that the benefits are very substantial, and they play out in different ways. There are the specific benefits of enhancing volume and price and therefore your margin achievements for an operation down to a specific site. I have personally seen margin improvements above of 10 percent. So, we have seen some very substantial results. I will also say though that there are substantial benefits from a commercial agility and strategy level that you get from really understanding the behavior of your underlying customer base for a particular site using the data points and the analytics. You become more data driven, you can react faster to movements and you become cleverer in comparing current conditions to similar scenarios in the past. I think that the decisions related to your network, the content of the store, the way you optimize it and the way you fine-tune your pricing strategy based on the particular customer scheme, et cetera, is very rarely available if you manage these things manually. Once you are set up and you have the actual price points, you can observe over time and understand the effects of your pricing strategies to a degree of detail that is rarely possible otherwise.

FMN: How should a retailer prepare to implement these solutions? dynamic? In other words, all the drivers of your supply and demand situation for this specific site would play a role in that answer. We observe some market locations where the number of changes can be very high. Sometimes more than 20 times a day. For others, you might want to change it once every three days. It comes back to the importance of understanding your price sensitivities and the volume price relationship that you have with the sites, if you have the underlying data and information.

FMN: How receptive is the industry to the technology today?

Skov: There’s a substantial amount of receptiveness to the idea, and I think there are a couple of fundamental reasons for that. The first one is that price managers and commercial leaders are very knowledgeable about their world. And, technologyFMN Magazine

Skov: The two main considerations are process and data. If you have a good degree of maturity in those areas, then I would say there is nothing that should stand between you and the ability to make good use of the available technology options that exist today. It’s going to be rare for us to come across companies, even down at the mid-size or smaller-size segments of the marketplace, where this technology is cost prohibitive or too difficult to implement.

Price Advantage Based in Colorado Springs, PriceAdvantage is a privately held U.S. company founded on nearly 45 years of retail fuel marketing experience. Its parent company, Skyline Products, produces retail software solutions and thousands of American-made gas price and transportation signs annually. From a single, easy-to-use interface, PriceAdvantage can help streamline fuel pricing processes, enabling a retailer to “push the right price to the right stores at the right time.” According to the company: gain control 24

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RETAIL OPERATIONS

“With the advent of more technology being deployed, even in operators down to the folks that run mom and pop sites, there is a general environment in which technology is becoming almost table stakes in some areas of the business. If you don’t deploy technology, you’re going to be automatically at a competitive disadvantage.”

of your fuel pricing; reduce manual processes and human errors; use your unique pricing strategy by store, region or entire chain; and increase margins by posting new prices to POS, signs and pumps in 15 minutes or less.

FMN interviewed John Keller, PriceAdvantage Division Director, for information on their solution.

Mark Hawtin

FMN: Tell us about the solution. Keller:

Managing Director, Kalibrate Pricing

We see two fundamental aspects to the value proposition that Price Advantage provides. And depending on the environment and the sophistication of the retailer, they’ll be taking advantage of one or both of those aspects. The first is aspect of it is price determination—the price modeling. There are nuances to that. There’s the standard stuff where you say: I understand the business; I understand who my competitors are. I’ve got to implement these business rules and be able to reduce the time to reaction of a competitor’s movements and/or a rack cost change. I want to make sure I’m considering my actual costs, my in-ground costs and my volume performance—any of these key performance indicators. We’ve had that for a long time, and we keep enhancing the sophistication of those business rules based on the feedback. The second is the price execution to the street—getting that price out there to the point of sale, to the pump and ideally to the electronic sign. Although if you don’t have an electronic sign, at least you’re notifying folks to get out there and get their manual signs adjusted. That is both consumer and commercial through our recent integration with Comdata. Part of the workflow is making sure that you’ve received a confirmation message that the price change has been completed. Ideally you can remove the store personnel from the price change execution side. It frees up employees to service customers and ensure changes don’t get overlooked. Another aspect is that sometimes you have a dealer relationship where they are compensated based on their store profits. There might not be as much interest in raising prices as requested, at least in a timely manner.

FMN:

What are some of the insights that come from data analysis?

Keller: We had a customer say they were always convinced that it made most sense to change their price first thing in the morning. And then they did an analysis and their conclusion was, oh my gosh, it’s much better if we sit tight in the morning and make our price changes in the afternoon because overall profitability is just that much stronger. And you know, there are different theories behind that in terms of consumer behavior. They might be driving to work but don’t have time to get gas, but they are looking at the signs and seeing who’s got what price. Then on the way home from work, when they have more time, they’ve already made the buying decision in the morning.

FMN:

How does the analysis play out with the location as a general profit center beyond just fuel? FMN Magazine

Keller: There are the nuances like considering the correlation between in-store transaction product by product, or by the number of transactions and the volume and sales of fuel. We’re able to import all these different categories of non-fuel related SKUs. There’s this age-old debate between the marketing folks who are focused on the inside gross revenue or gross profit and the fuel guys who are primarily focused on the gallons and the margins. Oftentimes you’ll have the in-store folk tell the fuel guys hey, we need to get our inside sales up. All we have do is just drop our fuel price by a penny or two. And then you have the fuel guys saying time out, that’s a myth. The competitive reaction is they are going to match us and all we’ve done then is lowered our margin. So, with these correlations we can see whether or not this strategy is working. The beauty of it is you can run an analysis for a very specific timeframe with a particular strategy in place and see how it does. Then you tweak that strategy and analyze it again to see if it made a difference.

FMN: How do you get buy-in for this change in an operation?

Keller: It is something you’ve got to address it from a change management perspective. You have folks in the field who’ve been doing it one way for 20 to 30 years and they’ve been autonomous and then suddenly you introduce these folks “back at corporate” who think they know better. The initial reaction might be: why do they think they understand my market better than I do? So, it takes some gentleness and some coaxing to build the trust. Some district managers are more concerned and don’t want to give up their control. They want to be convinced that you’re going to do this right before they just hand over the keys. Others are just happy to let go and shift their time to other functions.

FMN: What are the bottom line benefits to the retailer?

Keller: People don’t want us to share many specifics, but we’ve heard repeatedly that they are breaking records from a gross profit standpoint. Every one of our customers has told us that from an operational standpoint and from a gross revenue standpoint it’s just been tremendously successful and pays for itself as quickly as in several months. 26

FuelsMarketNews.com

RETAIL OPERATIONS

Using Technology to Get the Best Fuel Price Possible

Kalibrate For over 25 years, Kalibrate has advised fuel and convenience retailers worldwide on how to be best-in-class operators in the fast-changing marketplace. Through the years, Kalibrate has brought together global strategic expertise and data science with software solutions to become the authority in fuel pricing, location planning, market data and traffic count data. These solutions have been deployed in over 70 countries with hundreds of clients of all sizes, including oil companies, convenience stores and supermarkets. Its retail intelligence software is backed by people who offer insight—not just analytics—so every retailer can better capitalize on opportunities.

FMN interviewed Mark Hawtin, Managing Director, Kalibrate Pricing, for information on their solution.

FMN: Tell us about the solution. Hawtin: One of the big things that’s really changed our perspective on fuel pricing is to gain a better understanding of what draws consumers to a given retail outlet. Is it the location? Is it the brand? Is it the way they price? Is it because we’ve got great facilities? Is it because they have a great dealer or group of associates that are operating the site? Before you think too deeply about how you price you really need to look at why the consumers come to that particular outlet, and what are the other levers that you might be able to pull in order to drive more consumers to an outlet. These are what we call our volume magnets. So, a lot of what we do now is we help our customers understand why people come to you versus a competitor, and you then know how much pricing power that gives and how you can turn those customer visits into profits.

FMN: That obviously implies

period during the morning and one in the late afternoon and in between demand is more relaxed, and the dynamics are somewhat different. But you lack the nuance involved with that insight, and, more importantly, how much more sensitive, or not, are consumers during those different day parts. We now have the scientific ability to let the data tell us that rather than rely on intuition.

FMN: How receptive do you see

the market being for such solutions?

Hawtin: I think what we’re seeing in the U.S. now is with all the consolidation of players, the underlying trend is that there are more people coming into the workforce that are pre-engaged to use more advanced analytical techniques. With the advent of more technology being deployed, even in operators down to the folks that run mom and pop sites, there is a general environment in which technology is becoming almost table stakes in some areas of the business. If you don’t deploy technology, you’re going to be automatically at a competitive disadvantage. I think we are now getting past the idea that you have to have been a fuel pricing manager for 15 years to be good at it. And for those experienced fuel managers, as markets become more volatile, it’s now recognized that people need tools to help them keep up.

FMN: How does your solution scale? Hawtin: The sweet spot for more sophisticated pricing is going to be in hundred-plus operations because they’ve got more data to be able to leverage. They’re very concerned about operational efficiencies. The core of what we address is to be as operationally efficient as you can be from the price decision to pump. We’ve seen some super growth in what I would call the hype majors—the 7-Elevens, Circle Ks, Marathons of the world. I think the place for us to grow in the future is in the 15- to 100-site segment. We’ve seen larger growth there than in the past, but we have more work to do.

FMN:

What are your clients seeing from a return on investment (ROI) standpoint?

a lot of data for analysis.

Hawtin: We are about to release version 3.0 of our Kalibrate pricing product, and the single biggest movement forward in that is over a couple of million dollars’ worth of investment on the data side. Clearly one of the big problems that’s been apparent in most industries, and definitely for convenience retail, is the prevalence of more and more data about consumers, the site environment, weather, demographics, people movement, traffic movement…. Gone are the days where all you needed were a couple of competitive prices, a little bit of volume information and cost. Retailers now can bring a lot more data to bear about what’s happening in their environment. It’s not only on their own sites but on competitive sites, and to try to find ways to leverage their own pricing strategies and their own pricing tactics to take advantage of that.

Hawtin: With every potential client we conducted a discovery process to really understand how much value this might generate for them, and we work toward a six-month or better return on investment. We make sure that whatever we pitch, we can back up with a business case. I think the most extreme business case was seven weeks. We operate typically on three- to five-year subscriptions, and we want it paid for well within the first year of a three-year deal. Starting to use smart analytics and optimization is where you really make the big bucks. Now, if all you’re interested in is the operational efficiencies, in other words, getting prices from the point of decision to the pump, POS and price sign, then the ROI might take a little longer—maybe an eight-month payback. It’s pretty easy to measure the impact both on volume and profit depending on your strategy, so it’s fairly easy to measure payback. n

With very little additional data requirements from the client we can begin to automatically segment any given day into demand segments. We all know intuitively that there is usually a rush hour FMN Magazine

READ MORE at FuelsMarketNews.com

Roy Strasburger

I need to be clear that I am neither an expert in regard to these products nor do I work for any of these companies. If I have made any misrepresentations, I apologize to the panelists. Please feel free to contact them directly if you have any questions about their programs. FMN Magazine

Roy is the President of StrasGlobal. For 35 years StrasGlobal has been the choice of global oil brands, distressed assets managers, real estate lenders and private investors seeking a complete, turnkey retail management solution from the most experienced team in the industry.

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by Joe Petrowski

Good News and

Sobering News for Convenience Retailing The convenience store retail gasoline business grew last year against the overall difficult trend for general retail. This represented the 16th straight year of growth. The industry now represents 3.1 percent of U.S. GDP and with the U.S. economy still expandingâ&#x20AC;&#x201D;and that bodes well for our industry. With 2.5 million direct employees and another 10 million workers in associated industries, the convenience-retail gasoline business, along with the 180,000 people who visit a store at least once a week, the industry is a political force to be reckoned with. The average c-store station has $71,000 of

pre-tax profit per year. The industry had an exceptional fuel margin year of 23.4 cents/gallon. As a result, the industry is drawing interest and capital from many sectors, including private equity. Thatâ&#x20AC;&#x2122;s all pretty great news. l Credit Card fees are

equal to pre-tax profits. l The average store is selling

$30,000/week inside with $7,000 coming from food. l The average fuel gallons per

week is up to 19,000 gallons.

So, the bar continues to get higher. n Please see Joeâ&#x20AC;&#x2122;s bio on page 7.

FMN Magazine

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What Site Operators Need to Do

to Meet the Updated EPA Requirements by Angela Wisdom The U.S. Environmental Protection Agency (EPA) new underground storage tank (UST) fuel site compliance regulations, which place the full responsibility for compliance, inspection and documentation onto the fuel site convenience store and commercial fueling site operators, are now live. These revisions include several new actions that site owners and operators must take. The changes are intended to ensure all USTs in the United States conform to minimum standards of operation and environmental protection against fuel spills. Some of these 2015 EPA regulatory changes for improved groundwater protection were adopted immediately, and some were phased in over a three-year timeline. The final set became mandatory in October 2018.

Seven Required Inspection Action Items for Fuel Site Owners and Operators

#1Conduct monthly operations and

maintenance site walk-through inspections This new inspection requires that site owners and operators personally walk their site, checking every 30 days for damage and ensuring proper operability of all fuel spill prevention equipment, release detection equipment and containment sumps. The results must be documented and filed either electronically or onsite for one year. See “Site WalkThrough Inspection Checklist” on next page.

#2 Review release detection equipment testing records All electronic and mechanical components of fuel release detection equipment must be tested annually to ensure it is operating properly. These test records must be verified every 30 days as part of the site walk-through.

interstitial monitors monitor the area between the fuel storage tank (UST) and the barrier and must be inspected every 30 days and these results must be kept for three years.

#4 Test containment sumps upon initial installation and annually

Commercial fueling site and retail fueling site owners and operators must maintain records of containment sump testing for at least three years. Documentation must show the equipment is double-walled and the integrity of both walls is checked at least every 30 days. Double-walled spill buckets with periodic interstitial monitoring between the spill bucket walls are not required to meet the testing requirement.

#5 Test release detection equipment annually Fuel site owners/operators must have release or leak detection monitoring equipment that will detect a leak from any portion of the UST system and they must verify that leak detection equipment is installed and calibrated per the manufacturer’s instructions. Records of equipment testing must be kept for at least three years and must include every component tested, whether each component passed the test or needed to have action taken, and any action taken to correct an issue. For internally-lined USTs, please note that if the periodic internal lining inspection shows that the lining fails and cannot be repaired according to a code of practice, then that UST system must be permanently closed.

#6 Inspect overﬁll equipment

#3 Monitor spill prevention equipment and containment sumps used for interstitial monitoring of piping

Site owners/operators are required to have a type of overfill protection. Overfill protection devices either shut off flow, restrict flow or alert the delivery operator when the tank is close to being full. These devices trigger an alarm if the regulated substances reach a certain level in the tank.

For USTs installed or replaced after April 11, 2016, secondary leak containment units must be installed and monitored for all new pumps and piping for all fuel types, including gasoline, diesel and fuel blends. These

The three types of overfill protection are automatic shutoff devices, overfill alarms and flow restrictors. Flow restrictors in vent lines (ball floats) are no longer an approved method for overfill protection for UST systems.

FMN Magazine

YEARS

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RETAIL OPERATIONS Existing units may remain; however, they must be replaced when they are no longer functioning properly.

Site Walk-through Inspection Checklist

Overfill protection devices must be tested to ensure they are operating as intended at least once within a three-year period and records must be kept for three years.

#7Review Class A, Class B and Class C Operators Certiﬁcations

Certified Class A, Class B and Class C operators must be designated for each retail or commercial/fleet fueling facility. A Class A operator is required to operate and maintain the UST system, a Class B operator is required to implement the UST regulations, and the Class C operator must be trained to take appropriate actions in response to emergencies or alarms caused by spills or releases from the UST. Class A and Class B operators must be formally trained and pass an examination by a recognized authority. The Class C operator can either be trained by a Class A or Class B operator, complete a training program or pass an examination. Recordkeeping is required for as long as the operator is assigned to the facility and retraining is required for Class A and B operators at facilities determined to be out of compliance.

Get to Know Your State Level Regulations and Enforcement Rules State-by-state, regulations and compliance around USTs are essentially the same, but enforcement of those regulations varies across the country. There are 38 states that are labeled as SPA (State Program Approval) states. SPA states meet or exceed federal requirements, and regulations are enforced on the state level rather than the federal level. The remaining twelve states that are non-SPA states, which include Alaska, Arizona, California, Florida, Illinois, Kentucky, Michigan, New Jersey, New York, Ohio, Wisconsin and Wyoming, must work directly with the EPA to enforce the regulations.

Get Organized and Be Prepared

Angela Wisdom

The new EPA regulations, documentation and record keeping standards for UST systems can appear to be a bit daunting and it may even be a little tempting to procrastinate—but don’t do that. Instead, start establishing and documenting the detailed processes and procedures sooner rather than later, which will put proactive owners and operators ahead of the game. Whether it’s using a checklist found online or engaging an alarm and compliance monitoring service, the time is now to get organized. n

Angela is recognized as a leading authority in downstream petroleum process automation and operational excellence. Insite360 is the analytics business unit of Gilbarco Veeder-Root, a leading international fueling equipment and solutions provider. With over 20 years of fuel and environmental decision support experience, Insite360 helps optimize commercial and retail operations with inventory, purchasing, logistics and environmental compliance. Contact Angela at awisdom@insite360suite.com. For more information, visit www.insite360suite.com.

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by Ed Kammerer

Fiberglass Tank Sumps Can Help Retailers Stay

Ahead of the Regulatory Curve So, you’ve completed your research, performed your due diligence and selected what you think is the best dispensing and underground storage tank equipment and systems for your new retail fueling site, or an upgrade to an existing one. Installation has been completed, the switch has been ﬂipped on and the customers are rolling in. Time to take a deep breath and relax, right? Not so fast. While your equipment and systems were, as required, up to code when they were installed, the regulatory agencies are always working on ways to tweak, revise and improve their regulations. This puts pressure on fuel retailers to constantly stay abreast of any impending regulatory changes and to be aware of how they may affect the regularity status of their operations and what they must do to remain compliant if any changes are required. For example, Underwriters’ Laboratories (UL) recently implemented changes to its regulation regarding “Containment Sumps, Fittings and Accessories for Fuels.” Called the UL-2447 standard, this regulation updates the requirements for sumps, fittings and their accessories regarding “design and technology, regulatory compliance, industry needs” and addresses “scope of use, biofuels, compatibility and functional safety issues with respect to generally expected assembly, use and environmental conditions over the product’s average service life.”

“

While your equipment and systems were, as required, up to code when they were installed, the regulatory agencies are always working on ways to tweak, revise and improve their regulations.

”

Specifically, UL-2447 lays out a Test Program for fiber-reinforced polymer (FRP), or fiberglass, sumps. These types of sumps are a relatively recent arrival on the scene, created by fuel-site equipment manufacturers who determined that FRP performs better than the more traditional polyethylene (PE) in sump construction. This has led to fiberglass sumps being specified more frequently at retail and commercial fueling sites. In conjunction with this, UL-2447 specifically targets FRP sumps with a series of tests that must be performed by the manufacturer to ensure their viability. These tests include:

u Leak Prevention. The FRP sump’s u Cold-Impact. Samples from retention valves must be able to retain 70% of Type A and B fuels, as opposed to the old standard demanding retention of 50% of Type A and 30% of Type B fuels.

u Fluid Compatibility. Samples of the sump are immersed in Type A and Type B external fluids periods of 30, 90, 180 and 270 days and Type A and B internal fluids for a period of 3 0 days. After these testing periods, the samples must test within a range of flexural strength (50% for Type A fluids and 30% for Type B fluids) as compared to the flexural sump in as-received condition.

u Air-Oven Aging. Samples of the sump are placed in an air-circulating oven at a temperature of 158°F (70°C) for periods of 30, 90 and 180 days. At the completion of these time periods, the sample must have a flexural strength of at least 80% of the flexural strength of the sump in as-received condition.

the bottom and side of the sump are placed in a freezer with a temperature of -20°F (-29°C) for 16 hours. When removed from the freezer, the sample are subjected to an impact from a 1.18-pound steel ball dropped from a height of six feet. Upon impact, the samples must not crack.

u Hydrostatic Load. Sumps with penetration fittings installed are filled to capacity with water for 24 hours. At the completion of that time frame, there can be no leakage.

u Identiﬁcation. Samples of the sump material are subjected to infrared analysis, differential scanning calorimetry analysis, thermogravimetric analysis, percent ash content and specificgravity determination, with the results kept on file by UL and used as a baseline for follow-up Identification tests.

Realizing the importance of developing FRP sumps that can meet the UL-2447 standard, manufacturers have taken great pains to create products that satisfy UL-2447, with the most critical consideration being the method with which they are manufactured. FMN Magazine

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RETAIL OPERATIONS

“

”

A Reliable Alternative

As mentioned, FRP tank sumps have become a popular choice for fuel retailers because they offer some significant benefits over PE sumps. The most basic benefit is that fiberglass is compatible with most fuel formulations and additives, including alternative fuels made with ethanol (E15, E85, etc.) and biodiesel (B20, B100, etc.). Additional advantages of FRP sumps are higher corrosion resistance; higher structural strength, which allows them to withstand underground

The hand or wet layup (left) and chopper gun layup (right) fiberglass sump construction methods are the least expensive, but they can also result in products of the lowest quality.

loading, ground movement and hydrostatic pressure; watertight construction when properly molded and installed; the ability to be molded into many unique shapes and sizes; and the capacity to be easily bonded together. They can also be repaired quickly in the field and can last for 30 years or more. All of these benefits come into play when the FRP sump is subjected to the tests of the UL-2447 Test Program. While the evolution of FRP sumps has been an improvement for fuel retailers, site operators still must be aware that all fiberglass sump manufacturing methods are not created equal— meaning some may be used that will produce sumps that will have difficulty satisfying the UL-2447 tests. There are four common FRP-manufacturing methods and two main materials (polyester resin and glass) that are used to produce fiberglass sumps. They are: u Hand Layup: Also known as “wet” layup, with this method the resin and glass are essentially handpainted onto a single-sided mold with a roller before a thin layer of gel coat is applied to seal any holes in the fiberglass.

While the creation of fiberglass sumps has been an improvement for the retail-fueling industry, fuel-site operators must take care to realize that not all fiberglass sump manufacturing methods are equal.

u Chopper Gun Layup: This method is similar to hand lay-up, except that a spray gun is used to apply the mixture of resin and glass to a single-sided mold and then gel coat is typically applied to the finished product.

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u Filament Wound: A mold is placed on a steel mandrel that slowly rotates as a fine string of glass/resin filament is sprayed on the mold to create the sump. u Vacuum-Assisted Resin Transfer Molding (RTM): This is a carefully controlled manufacturing process in which a male and female sump mold are mated together sandwich ing a glass mat and a vacuum is used to form an airtight seal between the two molds as the resin is pulled by vacuum into the space between the two molds. This provides a controlled and consistent ratio of resin and glass as well as consistent wall thicknesses in each sump that comes out of the mold. As expected, the hand/wet layup and chopper gun layup construction methods are the least expensive, but— in line with the “you get what you pay for” mantra—they are of the lowest quality. Specifically, cheap molds (also known as tools) are used to construct the sump. These molds wear out quickly and can result in part deformity or inconsistency during the construction process. Also, each molded part is reliant on the molder repeating the resin and glass application process exactly. The molder must also be sure that the fiberglass is completely “wetted” out, but in order to ensure this, the molder may paint too much resin on the mold, resulting in inconsistent wall thicknesses. This can also lead to brittles areas where the sump wall is resin-rich (too much resin and not enough glass). It can also lead to areas of the sump wall with not enough resin and too much glass

Image courtesy Veeder-Root, Â®2019

RETAIL OPERATIONS

Fiberglass Tank Sumps Can Help Retailers Stay Ahead of the Regulatory Curve

causing that section to wick or leak any water or fuel that comes in contact with that area. Another drawback is that the molded part will be rough on one side, making it difficult to work with in the field. The rough surfaces make it challenging for entry fittings to properly seal, causing a potential leak point. The parts may also have to be gel-coated to achieve the required level of watertightness, with the gel-coat layer often applied inconsistently and prone to being scratched off or damaged during transport or installation. Finally, these “open” molding processes release polyester resins, paint vapors and solvents into the air, which may cause air quality issues and expose molders to hazardous vapors that are above approved regulatory levels.

Vacuum-assisted resin transfer molding is a carefully controlled manufacturing process in which a male and female sump mold are mated together, sandwiching a glass mat. A vacuum is used to form an airtight seal between the two molds as the resin is pulled by vacuum into the space between the two molds.

The Case for RTM Sumps

Conversely, the vacuum-assisted RTM manufacturing process eliminates the concerns associated with the hand/wet and chopper gun layup processes while delivering a long list of benefits:

u The tooling is made of high-end metal or epoxy-based composites with metal inserts to ensure consistency and shape

u Each sump is molded according to a precise, predeter mined and controlled process that is done under vacuum, resulting in consistent wall thicknesses and high-quality construction

u The vacuum source completely pulls the polyester resin through the ﬁberglass, a capability that guarantees the sump is fully wetted out, solidly built and with lower permeability

u The use of male and female molds ensures that both sides of the sump will have a smooth and visually appealing ﬁnish

u No gel coat is needed to achieve watertightness u The “closed” molding process releases no polyester resins, paint vapors or solvents into the air, meaning that air quality is not affected and falls within regulatory standards

“

With the number of regulatory standards that must be satisﬁed—many of which are constantly being revised—it’s not uncommon for fuel retailers to get the feeling that Big Brother is always watching.

”

With the number of regulatory standards that must be satisfied—many of which are constantly being revised—it’s not uncommon for fuel retailers to get the feeling that Big Brother is always watching. Though these regulations can be thought to be restrictive or overzealous, in reality, the regulatory agencies only have the best interests of the retailer, environment and general public in mind, especially when it comes to the handling, dispensing and storing of motor fuels. The ongoing conversion from PE to FRP sumps has unquestionably aided the fuel-site operator’s peace of mind when it comes to fuel containment and public and environmental safety. However, those benefits can be lost when substandard FRP sumps are used. An FRP sump manufactured using the hand/wet layup or chopper spray gun process may have half the cost of an RTM sump, but it also will likely have one-third the quality. So, before you are ready to welcome customers to that new or upgraded fuel site, make sure your FRP sumps are UL-2447 listed, which will give them the capability to reliably perform for many years. n

The ultimate benefit of RTM-manufactured FRP sumps is that they are capable of more reliably containing any fuel that may leak or spill during dispenser operation, as the result of a submersiblepump leak within the tank sump or during underground storage tank (UST) refills. Failure to contain any leaking fuel can lead to contamination of the soil and surrounding groundwater supply. If undiscovered or left unchecked, any uncontained leaks or spills will put the site out of compliance, which can result in heavy fines, along with cleanup and restitution costs, with the worst-case possibility that the site may be shut down permanently. FMN Magazine

Vacuum-assisted resin transfer molding provides a controlled and consistent ratio of resin and glass as well as consistent wall thickness in each sump that comes out of the mold.

Ed Kammerer Ed is the Director of Global Product Management for OPW, based in Cincinnati, OH, USA. He can be reached at ed.kammerer@opwglobal.com. OPW delivers a comprehensive line of fueling equipment and services to retail and commercial fueling operations around the globe. For more information on OPW, please go to opwglobal.com.

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A study commissioned by the U.S. Chamber of Commerce’s 21st Century Energy Institute says the extraction of “unconventional” shale oil and gas through horizontal hydraulic fracturing—or fracking—has meant a job boom even in states that don’t actually have shale deposits, with 1.7 million jobs already created and a total of 3.5 million projected by 2035. The study was released in two phases in October and December, and a third phase is forthcoming. Skeptics with environmental and citizens groups have questioned the numbers and also the beneﬁts that these jobs actually provide to local communities. Many industry jobs are not ﬁlled by local residents, and a boom town effect, including escalating cost of living and other social problems, has been documented in places where an extraction industry rapidly arises. Source: Kari Lydersen, U.S. Chamber of Commerce Global Energy Institute

Bottom Line: To turn the cliché around, “You can’t let a success go unchallenged.” Environmental and “grassroots” citizens groups (often organized by large national anti-fracking organizations) will never ﬁnd any good news with our energy revolution.

at FuelsMarketNews.com

Wet Hosing without a CDL or HAZMAT

by Keith Reid

Smaller tank wagon platforms have been around for some time, often based on a medium-duty truck chassis. This type of solution is well-suited for disaster relief and other operations where the ability to move through tight spaces is an advantage. Thunder Creek Equipment has developed a truck solution based upon its multi-tank trailer that takes the concept a step further. The Multi-Tank Upfit, or MTU, is based on a Ford F550 chassis and allows an operator to transport 920 gallons of diesel without the requirement for a Commercial Driver License (CDL) or HAZMAT endorsement.

FMN Magazine

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“In today’s world of driver shortages, especially commercial drivers, finding those with HAZMAT certifications is becoming increasingly more difficult to find” Luke Van Wyk Vice President of Sales for Thunder Creek Equipment

WHOLESALE & FLEET OPERATIONS “In today’s world of driver shortages, especially commercial drivers, finding those with HAZMAT certifications is becoming increasingly more difficult to find,” said Luke Van Wyk, Vice President of Sales for Thunder Creek Equipment. “We’ve been selling a non-HAZMAT system for three-and-a-half years in a trailerbased platform.” Although Thunder Creek was reluctant to go into proprietary details, the gist of the capability involves the number of tanks, tank capacities and the connection system. It utilizes eight 115-gallon tanks that are only connected when a common manifold is opened at the pumping station. Also, the product is limited to diesel. Van Wyk noted that the company has conducted an exhaustive amount of research and compliance work to ensure that the non-HAZMAT claims are legitimate in all 50 states, have compliance documents and hired independent third-party compliant consultants to make sure that the claims are defendable.

Who is the “typical” customer? That would primarily be a fuel distributor who specializes in emergency management or larger utility operations, telecom companies or wireless providers. “They’ve got their own budgets and their own resources that are dedicated to coming in and reestablishing services after a disaster,” said Van Wyk. Those are going to be the users, along with fuel jobbers looking to serve those needs.” It could also fill a role for more conventional mobile fueling in less conventional terrain. For example, construction in congested urban areas. For more information: Thunder Creek Equipment, 1833 Highway 163, Pella Iowa, Mile Marker 37, 866.535.7667. https://thundercreek.com/. n

Equipment Equipment Parts Parts Solutions Solutions

“As an added benefit, the F550 chassis gives us factory-equipped four-wheel drive on the truck. So, when you are wet hosing you have the ability to get out to where the equipment is on this job site or in an emergency management or emergency response situation,” he said. Aside from its format and layout, the MTU is designed to be as similar in operation to a standard tank wagon as possible on a smaller package. There’s a wet kit, or a hydraulic packet, that is installed on the truck and integrated into the truck’s power takeoff. If features a 2" Blackmer pump and can be equipped with up to a 150' self- or electricallywinding hose reel. The customer can specify their preference for the specific reel or weights-andmeasures-approved meters and registers.

800-772-2300 800-772-2300 || sales@shieldsharper.com sales@shieldsharper.com

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Fuel Additives: The Key to Setting YOUR Business Apart Go beyond by providing what customers REALLY want: fuel that cleans up engine deposits and provides improved horsepower, fuel economy and decreased emissions--saving them time and money on expensive downtime and maintenance. Contact MCC today to learn more about our customized fuel additive programs, including TOP TIER™ Diesel and TOP TIER™ Detergent Gasoline! 1994 - 2019

www.mcchemical.com | 877.862.2436

IMPROVING YOUR PERFORMANCE

READ MORE at FuelsMarketNews.com

Bottom line: slips, trips and falls are a clear and present danger to your drivers, and to your company when it comes to injury claims. To truly have a partnership with your drivers in keeping them safe, think about these two things: how have you educated drivers on how to reduce the risk, and more importantly, what investments have you made to help drivers avoid injury? n FMN Magazine

Jane Jazrawy Jane is CEO of CarriersEdge. a leading provider of online driver training for the trucking industry, and co-creator of Best Fleets to Drive For, an annual evaluation of the best workplaces in the North American trucking industry produced in partnership with the Truckload Carriers Association. She can be reached at www.carriersedge.com.

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Refined products and biofuels are used to power internal combustion engines. Regardless of how quickly electrified powertrains enter the market and gain market share, the role of the internal combustion engine will remain critical to achieving efficiency gains and emissions reductions for decades to come. Just look at the last four years—combustion engines represent 98.8% of all light-duty vehicles sold in the U.S. Source: : John Eichberger, Fuels Institute, “Rock the Casbah” The Commute Blog

Bottom Line: Don’t plan on scrapping those aboveground storage tanks (ASTs) any time soon.

at FuelsMarketNews.com

50th Anniversary of Apollo 11

The Search for the Gulf Lunar Module Eagle July 20, 1969

by Brian Reynolds Buzz Aldrin (Pilot): “Contact light. Okay. Engine stop. ACA—out of detent. Mode control—both auto. Descent Engine command override—off. Engine alarm—off.” NASA (CAPCOM): “We copy you down, Eagle.” Neil Armstrong (Commander): “Houston. Tranquility Base here. The Eagle has landed.” Van Reynolds (My Big Brother): “If you want one of these Gulf Lunar Module Kits, you better hurry…only two left.” I had just turned 10 years old the week before, and my older brother was taunting me with something I just had to have. It was July 20, 1969, and we had just watched the exciting coverage of the historic first lunar landing. Even at the ripe old age of 10, I had an awareness of the historical significance of the event. The live television coverage was supplemented with commentary from NBC’s John Chancellor. The suspense was expertly dramatized, and to me it didn’t sound like they would make it all the way down in one piece.

Then the announcer declared, “One per 8-gallon fill-up, and supplies are limited.” Without stopping to consider the logistics or requirements, there were only two left and I had to find a way to have one! The must-have for Petroliana (the fine art of collecting gas station memorabilia) collectors actually is the Gulf Oil Apollo 11 Lunar Lander Kit. No collection is complete without one. They were printed on a cardstock that was not much thicker than an ordinary sheet of paper. They were flimsy and unless great care was taken in putting them together, a rip would surely happen. The cardboard model itself was of the “punch out along the perforated lines, fold and insert tab ‘A’ into slot ‘A’” type of kit, and, apparently, supplies were limited.

In front of the announcer’s news It’s hard to imagine today how desk was the ever aggressive branded fuel present Gulf Oil logo. marketing used to be. Gulf When they would cut was certainly aggressive— away to a commercial after all, they sponsored the NBC News Anchor John Chancellor break, it seemed like it first moon landing! Today, was always to an ad for Gulf Oil. The commercial that corporations brand major sport stadiums, but branding was playing all day was telling everyone to hurry to the moon, WOW, how cool was that! the nearest Gulf Station and get a “free” Gulf Oil Apollo All the way through the 50s, 60s, 70s and 80s Major Oil 11 Lunar Module Kit—and I just found out there were aggressively marketed themselves and the products they only two left! sold. Advertisers would often declare how their gasoline The Gulf Oil commercial featuring the lunar lander was better or would make your car engine cleaner. All looked more like a toy commercial to me. The kid in that kind of talk sounded good until one day somebody the commercial was expertly bringing his lunar said, “Prove it!” module in for a landing. Mission Control was guiding him all the way down. Disaster was narrowly averted The Federal Trade Commission (FTC) charged that Exxon only by the pilot’s cat-like reflexes. One last blast of Corporation misled consumers by making unsubstantiengine thrust sugggrrrrr phgggffffffffff shhhhh and ated advertising claims for Exxon gasoline. The ads history was made. The kid nailed it. A perfect 4-point claimed that switching to Exxon gasolines generally—or landing. Tranquility Base—the Gulf Eagle has landed. to Exxon 93 Supreme specifically—would make engines FMN Magazine

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BUSINESS OPERATIONS cleaner and significantly reduce auto maintenance costs. According to the FTC, Exxon failed to substantiate those claims. Through advertising, the FTC complaint alleges Exxon represented that consumers could reduce significantly their automobile maintenance costs by switching to Exxon from other gasoline brands and switching to Exxon 93 Supreme from lower-octane Exxon gasolines. In fact, Exxon did not have a reasonable basis for these claims, according to the FTC. So, by the mid-1990s, petroleum advertising changed completely, not just for Exxon, but for the entire petroleum marketing industry. The FTC made EXXON put up disclaimers and distribute pamphlets regarding how most cars would run just fine on the lower-octane grade. Here’s a helpful excerpt from the 1997 FTC court order. The FTC not only changed the advertising process for Major Oil, it seemingly changed their minds on how they wished to operate their businesses. Life was better back in the day when Madison Avenue Mad Men created great advertisements for TV and print for the major brands. Today, the unbranded marketers are the ones who draw the most attention with not only their advertise-

ments but the way they run their stores, making them retail destinations. Buc-ee’s in Texas is one of my favorites. They have great, entertaining highway billboards and their restrooms are so clean a doctor could perform surgery in them. But in 1969, it was still game on! On the moon and in Cisco, Texas, the Eagle had just landed and, to recap, I find out that there are only two Gulf Lunar Landers left. I get on my bike and ride to the only Gulf station in town. It’s too late. They just ran out and I want one. So, what’s a fast thinking 10-year-old to do in the middle of July, late in the afternoon? You ride your bike to the next town over, Eastland, which is 10 miles away where they have two Gulf Stations. Now, 10 miles is “nothing,” and so what if it’s 100 degrees outside? I have to get me a Lunar Lander. By 6:00 P.M. preparations are being made for the moon walk and for dinner at my house. The Eagle may have landed on the moon, but buzzards are circling me and my new flat tire and it’s getting late. Luckily, I only make it about a mile past the city limit sign. So, I start to walk it home when a friend of the family passes by and gives me a lift in his truck. I managed to ease into the house without any problems. My dad had already taken over the project from my brother of assembling his Lunar Module. It looked pretty good and I told Dad that I really wanted one. He said, “Sure, no problem, I have two cases of them in my office.” Being a jobber and all, of course he had two left! n

FMN FUELS MARKET WATCH

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The 1969 Gulf Oil Lunar Lander Kit Editor’s Note:

Brian On the Paper and Packaging Board’s Reynolds website is a brief article Brian began his career working as a teenager in about the cardboard his family-owned jobbership in Cisco, Texas and Gulf Lunar Module Kit was at the forefront of many signiﬁcant industry milestones. Reynolds was an early adopter of that Brian and thousands of American cardlock systems in the 1980s, a pioneer of highvolume supermarket fueling centers in the kids were so excited 1990s and one of the key architects of inventing reward-based fueling loyalty in the 2000s. He about back in 1969. To currently works for Dover Fueling Solutions in read the article and ClearView, wet stock management sales. download the link to Contact Brian at Brian.Reynolds@DoverFS.com create your own Gulf or cell 325-733-6490. Lunar Module Kit, visit https://www.paperandpackaging.org/blog/innovation/gulftmoils-cardboard-lunar-model . Good luck! FMN Magazine

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BUSINESS OPERATIONS

Environmental Issues in a Mergers and Acquisition Transaction by Josh Mikels, SVP

ow can representations and warranties (R&W) and pollution legal liability insurances indemnify environmental risks and protectpotential buyers in a robust mergers and acquisition (M&A) environment? Imagine that you are in the process of buying a company with potential environmental issues. While ﬁnalizing the purchase of the target company, you procure a representations and warranties insur ance policy to enhance the limited indemnity given by the seller. Six months after the transaction closes, an environmental issue arises at one of the acquired sites. The matter was undisclosed, and the cleanup costs will exceed $1 million. Is there insurance available to cover your loss? The answer may not be that simple.

What environmental issues? Whether a business is a manufacturing operation, healthcare facility, fuel distributor or real estate developer—these operations have varying degrees of environmental exposures. Potential acquir ers consider environmental issues during diligence. Any quantiﬁed liabilities can impact buyers and even put the brakes on a transac tion. As part of a typical diligence process, buyers engage environmental consultants, environmental counsel and insurance specialists to conduct assessments. Environmental assessments range from desktop reviews of benign locations (i.e. leased warehouse and oﬃce space) to Phase I and Phase II assessments of owned or leased manufacturing locations. Additionally, as part of the diligence process, consultants determine what environmen tal insurances are in place (if any) to protect the assets in the underlying transaction.

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Parties in a transaction need to consider what an R&W insurance policy covers: a breach in a representation or warranty made by the seller in an underlying transaction agreement.

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What does the representations and warranties insurance cover? Every R&W insurance placement is subject to an insurer’s underwriting of a buyer’s underwriting process. Depending on the underlying risks of the target business, insurers may, at times, exclude environmental matters. Why? Because if there is an inherent risk to an underlying business, the R&W insurer would expect that the target business has a stand alone pollution legal liability (PLL) policy to protect against these environmental risks. In certain circumstances, the environmental exclusion can be modiﬁed to sit excess of underlying pollution legal liability insurances. In these situations, an R&W insurer would consider providing excess coverage even if the proposed buyer were to put the insurance in place in conjunction with the closing. Lastly, with some tech and distribution businesses where the environmental risk is more benign, an insurer may remove the pollution exclusions altogether and excess coverage is a nonissue.

BUSINESS OPERATIONS

In each of the abovereferenced situa tions, parties in a transaction need to consider what an R&W insurance policy covers: a breach in a representation or warranty made by the seller in an underlying transaction agreement. For example, if there is an environmental condition that the company knew about but did not disclose and made a representation that there were no environmental issues, this could be considered a breach and a claim ﬁled for damages under an R&W policy. Assuming in the above example that the environmental matter is a covered claim under the R&W policy, the R&W policy is subject to a retention (the amount before which insurance will pay). Typical R&W policy retentions are between 0.5 and 1 percent (depending on when during the policy period a claim is made). As such, on a $200 million purchase price transaction, the initial retention would be $2 million before insurance kicks in. If the claim is brought 12 months from closing, the retention will drop to $1 million. In either scenario, the R&W retention is signiﬁcant and usually much higher than the retention for a standalone pollution legal liability policy.

Environmental Issues in a Mergers and Acquisition Transaction

“”

While known conditions are exclusions on R&W policies, a PLL policy can be tailored to cover speciﬁc known conditions.

My R&W insurance policy won’t cover all the environmental issues— now what? When R&W policies don’t cover certain issues, a pollution legal liability (PLL) policy may be something to consider. If a target company has potential environ mental exposures, they may already have a PLL policy in place. If one exists, that policy would be evaluated during due diligence to ensure that it provides appropriate coverages for the underlying business. A PLL policy can be written if one does not exist. Terms could be struc tured to cover preexisting conditions or

known conditions for up to 10 years and new conditions for up to five years. The typical PLL policy term is a more prolonged survival period than the usual coverage afforded under an R&W insurance policy. Again, while known conditions are exclusions on R&W policies, a PLL policy can be tailored to cover specific known conditions. During underwriting of a PLL policy, schedule Phase I or Phase II reports to cover known conditions to the policy. Please note that more material known condi tions may be specifically excluded and other exclusions could also apply, such as voluntary investigation and capital improvements. Therefore, even if there is no coverage in an R&W policy, a PLL policy could respond for covered claims for preexisting and new conditions for thirdparty bodily injury, property damage and cleanup. In addition, the PLL policy can also be structured to cover new conditions that arise postclose. Since it is a new environmental condition that didn’t exist preclosing, it cannot be covered by R&W insurance. The PLL policy, however, can provide new conditions coverage if elected by the buyer when purchasing the policy.

R&W vs. PLL Snapshot What the R&W insurance policy won’t cover There may be environmental condi tions that a seller did not know about, and therefore, no speciﬁc representa tions or warranty was made. In such a circumstance, coverage is not triggered as there is no breach. Furthermore, there could be new environmental conditions that occur postclosing; in which case, the R&W policy would also not respond. The buyer would be on the hook for any damages or cleanup costs related to the environmental issue(s). For situations where there was a representation or warranty made, the typical R&W insurance policy covers only three years from the closing date for environmental matters. Occur rences that take place beyond this period would not be insured.

ITEM

R&W POLICY

PLL POLICY

Breach in rep/warranty of a pre-closing environmental matter.

Potentially covered if environmental exclusion is removed and the matter is not disclosed.

Generally covered if pre-existing conditions coverage purchased.

Pre-closing matter with no breach of rep/warranty.

Not covered.

Generally covered if pre-existing conditions coverage purchased.

Unknown (as respects seller) pre-close conditions.

Potentially covered subject to the underlying terms and conditions of the policy.

Generally covered if pre-existing conditions coverage purchased.

Post-close environmental matter.

Not covered.

Generally covered if new conditions coverage purchased.

Policy Term.

Typically 3 years for general reps.

Typically 5 – 10 years for pre-existing conditions and 3 – 5 years for new conditions.

Policy assignable to new buyer upon divestiture.

Yes, subject to carrier approval.

Typically yes, unless material change of use for the covered sites.

Limits.

Typically 10 – 15% of enterprise value, but shared with all other reps/warranties coverage.

Speciﬁcally negotiated and dedicated limits for environmental matters only.

Limits.

1% of purchase price (dropping down to 0.5% after 12 – 18 months.

Speciﬁcally negotiated, but typically ranging from $25k to $500k.

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BUSINESS OPERATIONS

“”

Environmental Issues in a Mergers and Acquisition Transaction

The PLL policy can also be structured to cover new conditions that arise postclose. Since it is a new environmental condition that didn’t exist pre-closing, it cannot be covered by R&W insurance.

ADVANTAGES OF A PLL POLICY • Broader protection than R&W. • Covers both known and unknown pre-existing conditions and new conditions.

• Can be purchased with a longer policy term and typically much lower retentions.

For transactions where environmental or potential environmental issues are of concern, it is important to understand the roles that both R&W and PLL insur ance can play in the transaction. While every situation is unique, both types of policies, if purchased, can play a role. Lockton can work with buyers in the due diligence process to not only help examine the environmental risks, but also in the procurement of PLL or R&W insurance, or both, depending on the situation and goals of the buyer. n

• If structured properly, it can be

assigned to a new buyer down the road if the company is divested.

More than 6,000 professionals at Lockton provide 50,000 clients around the world with risk management, insurance and employee beneﬁts consulting services that improve their businesses. For more information, contact Greg Cushard, Sr. Vice President Lockton Insurance Brokers at cell: 916-730-4849 or ofﬁce: 415-568-4115, email: gcushard@lockton.com.

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Consider this reality: there are more than 400,000 new commercial driver’s licenses (CDLs) issued each year—most for long-haul operations. However, most of these new drivers won’t last more than a few months behind the wheel. In fact, some of our nation’s largest truckload carriers have driver turnover rates that consistently exceed 90 percent year-after-year. To be clear, high-driver turnover is a serious problem in trucking but there is no driver shortage. Source: Congressional testimony, Todd Spencer. President & CEO Owner-Operator Independent Drivers Association, Inc.

Bottom Line: The issues facing trucking are varied and especially so as you move through the various types of operators serving ﬂeet logistics.

at FuelsMarketNews.com

Truck, Trailer and Truck Equipment

ROUNDUP The ﬁrst quarter of a new year brings with it a range of industry trade shows. FMN staff tries to rotate its presence at these events and this year was no exception, with the staff being present at WPMA, M-PACT and TMC. We use the opportunity to look at trucks, trailers, tanks and truck equipment. Here are some of the companies that are strong players in the industry. Where we can we’ve highlighted new product announcements. Otherwise we present a general company description. We apologize for any companies that might have been missed.

Add Systems Raven® is the heart of the ADD Systems® endto-end delivery logistics solution. Forecasted orders, Internet orders and orders initiated by tank monitors can all be assigned to drivers; routes can be optimized, and those routes can be pushed to each driver’s on-board Raven. Plus, dispatchers are provided with a real-time wireless view of their fleet. ADD Systems was one of the first technology companies to provide mobile computing solutions to the petroleum and propane marketplace, and over 7,000 Ravens are deployed across the United States and Canada by industry-leading heating oil and propane companies. www.addsys.com

Amthor International Amthor International offers an expansive line of truck- and trailer-mounted tanks solutions. Amthor has an extensive variety of tank trucks for the refined fuel, propane, portable restroom, vacuum, septic, water, dust control, well drilling, construction and fire protection industries. Each tank is custom built in America. Hands-on owners Butch and Brian Amthor are always available throughout every step of the process. www.amthorinternational.com

BASE Engineering Inc. BASE Engineering offered its ProControl handheld control center designed specifically for the fuel industry. It features an internal GPS for accurate customer tank location capture. You can preset delivery volume before you FMN Magazine

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pump. ProControl communicates with multiple meters simultaneously. The operator is able to select up to 15 different products or compartments from the display, in addition to the existing 12 functions on the handheld. Hose and product selection allow the operator complete end-of-hose control of the electronic register’s product selection functionality, paving the way for automatic compartment selection/fluid routing. http://www.baseng.com

Beall Trailers Beall’s extensive line-up of petroleum trailers offers a wide variety of products to meet the specific needs of fuel haulers. Its semi-trailers, doubles, truck tanks and pull trailers are available in various combinations, all designed and finished to customer specifications. www.bealltrailers.com

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Betts Industries Inc. Betts, a leading manufacturer of critical components and lighting systems for the tank truck industry, offers its “Supertanker” package of premium components, which provides a discount over individual purchases. Customers can now order Betts lighting components along with the package. Every “True Fit” lighting kit is custom assembled and sized to the customers specifications. www.bettsind.com

Blackmer The TX and TDX are durable pumps, suitable for truck mounting and biofuels, and provide fast and quiet operation. Sliding vane design provides sustained performance and troublefree operation. Unique features include adjustable relief valve and protects pump from excessive pressure. Optional air operated relief valve offers easy hose and nozzle handling. T-type strainers are available to protect pumping systems from damage caused by welding slag and foreign matter in the piping and tanks. www.psgdover.com/blackmer

Civacon Take total control of your tank truck with CivaCommand from Civacon. Designed as the truck’s nucleus, CivaCommand’s touchscreen interface seamlessly integrates all tank-truck technology, giving the operator complete control during the loading and unloading process. This can be integrated with the crossover prevention system (COPS) by adding smart elbows. It operates air controls directly, eliminating the need for an air panel. Security automatically prevents unauthorized access. Among other capabilities, it prevents the driver from leaving the site without acknowledging a retain condition has occurred. www.opwglobal.com/civacon

READ MORE at FuelsMarketNews.com

CMI Solutions CMI Solutions, a back office software provider for retail and wholesale fueling operations, was showcasing DreamTec Software’s OutTrak mobile handheld software and i-Meter Fuel Tracking Solutions. The meter tracking function is an entry-level offering specifically designed for fuel distribution companies seeking greater control over their physical and human resources. Data on delivery quantities, times and locations; unplanned stops or multidrop drift is displayed through the system’s reporting tools and helps to monitor work rates, detect discrepancies and inform business decisions. Mobile fleet management is a more complex solution, involving integration with ERP or accounts software. www.cmisolutions.com

Cummins Inc. The Cummins X12 for the medium-bore engine category (10L – 13L), sets new standards for productivity in regional-haul, vocational and intermodal truck applications. Smaller in size— up to 600 lbs. lighter than other engines in its class and at least 150 pounds lighter than the next-closest competitive engine. The X12 still delivers powerful performance from 350 hp to 475 hp (260 to 354 kW) and 1250 to 1700 lb-ft (1694 to 2304 N•m) of peak torque. The X12 has the highest power-to-weight ratio of any heavy-duty engine from 10 liters to 16 liters in size. www.cumminsengines.com

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Comdata The Comdata SmartSite GX is built to deliver the quickest, most convenient fuel stops in America. Fast payment processing, quick and simple driver operation, easy back office training and administration, PCI-compliant data security, and real-time operational alerts. The GX equips today’s fleets with superior service and convenience. The GX equips fuel distributors to accept all fleet cards and bank cards, as well as Apple and Google mobile payments. Help reduce fraud and create a secure transaction environment with EMV card readers. www.comdata.com FMN Magazine

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Dixon Pumps The Dixon Pumps 1500 and 2000 series pumps feature patented tri-lobe positive displacement impeller technology that provides exceptional dry run and flow performance. The hydraulic transfer configurations are perfect for truck mounted applications where hydraulic power is available, or in locations where hydraulic wet kits can be mounted to a larger skid. The hydraulic power option provides a wide range of flows and pressures. www.dixonpumps.com

Exosent Engineering The goal at Exosent is to design the safest LPG Transport in North America. The company manufactures low center of gravity tanks that resist rollovers. Each cargo tank is fully engineered and designed in 3D CAD, including FEA analysis, and durable. The trailers are designed to last with a heavy-duty 5th-wheel plate (only deflects 1/16" under load). www.exosent.com

ROUNDUP: Truck, Trailer and Truck Equipment piping with flexible sections for longevity, special fittings to make hose repair simple, cold-weather gaskets and fittings, and provides a sealed hose compartment. www.innocar.ca

Grid Mark Grid Mark Signs began in 1998 to help businesses make their mark with the highest quality visual branding. Solutions enhance corporate identity through fleet imaging, vehicle wraps and interior and exterior signs of all shapes and sizes. Grid Mark Signs can turn a company vehicle or fleet into a mobile advertising machine. High quality digital printing combined with the best vinyl and lamination will give a long-lasting advertising exposure. www.gridmark.com

HEIL Trailer HEIL’s fleet duty petroleum trailer now weighs less than 9,000 pounds. The company used advanced engineering to subtract 900 pounds of tare weight over the previous generation trailer, the goal being to allow the customer to haul more product with fewer runs and less fuel consumed. This trailer provides the base for a range of customer customization. www.heiltrailer.com

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Innocar Based in Québec, Canada, Innocar works to differentiate itself by incorporating a number of small innovations that combine to make a big impression on the operator. For example, a PLC (programmable logic controller), which centralizes the controls and diagnostics of electrical-related functions such as air, meters, reels and pumps in an easy to access location. If the pumps are running but not pumping fuel and the motor gets hot, the system shuts down and provides an error code for the truck owner/operator to see what is happening. Similarly, the company only uses stainless steel

Jarco Jarco has been building propane bobtail since 1959. They do not just provide custom builds but maintain a variety of well spec’d out common options that are available immediately on the lot. The units are designed to be high quality and remain reliable and attractive through years of hard service. Jarco uses a powder coat on their propane bobtail and transport barrels. Jarco was also a leader in the use of stainless steel piping with sweeps instead of hard corners to improve gas flow. Their solutions also feature three-piece deck and fender set to reduce cracking associated with long-term stress and ease maintenance in case of a minor accident. www.jarco.com

LBT, Inc. LBT, Inc. is one of North America’s foremost original equipment manufacturers, producing high quality and very durable liquid and dry bulk tank trailers and portable storage units. LBT’s manufacturing facility is centrally located in Omaha, Nebraska. All raw materials used are made in the United States. The engineering team averages over 17 years of tank design and the production supervisors over 27 years of tank manufacturing experience. With 20+ standard models and many options, LBT can tailor its designs to a customers’ needs. www.lbt-inc.com

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MAC LTT Tank trailer manufacturer MAC LTT recognizes the complexity of today’s ever-changing market and the necessity to make you more competitive with advanced design trailers that provide operational benefits; or incorporate alternative components-materials that will improve fuel economies, maximize performance, reduce maintenance costs, increase payloads, generate greater profits, protect your investment and focus on safety. MAC LLT has seen a surprising and strong interest in its fire extinguisher holder tube which fulfills a requirement in some states for a fire extinguisher to be accessible and in some cases at the drop point. . www.macltt.com

MID:COM The E Count from MID:COM is an electronic counter primarily used on bulk delivery trucks and can be mounted on or connected to any type of meter. It supports 99 products, each with a custom product label, price, two taxes, cash discount and special charges. Preset deliveries can be made by volume or price, and with unlimited presets on each delivery. The hardware is linked to a free configuration software called Matrix which can be used to customize the delivery ticket. www.midcomcorp.com

Oilmen’s Truck Tanks Inc Oilmen’s has been building small fuel trucks for several decades to meet the unique needs of its customer base. These units are often designed to operate in tight spaces where there may be maximum height restrictions or reduced turnaround area. They are optimized for emergency response, small on/off road equipment and construction equipment. They feature up to 1300-gallon capacity, single or

ROUNDUP: Truck, Trailer and Truck Equipment dual pump configurations, multi-compartment capability and terminal loading capabilities. www.trucktanks.com

Paciﬁc Truck Tank Inc. Sacramento, California-based Pacific Truck Tank provides a range of custom-built petroleum and propane delivery units for customers throughout the western United States. These typically include propane and petroleum bobtails and LPG service trucks that are designed to customer specifications and constructed at the company’s 22,000 squarefoot building. www.paciﬁctrucktank.com

hauling dry and liquid bulk freight. Polar Tank Trailer produces custom-built aluminum, stainless steel and carbon steel tank trailers for crude oil, hot oil, refined fuels, propane, chemicals, corrosives, food products and other bulk commodities. www.polartank.com

Polar Service Centers Located strategically across the United States, PSC has an expansive network of tank trailer and tank truck service centers. Specializing in all makes and models, PSC provides a range of services from DOT inspections and repairs to full refurbishment, tractor rig-outs and specialized fabrication and customization such as pumping and metering systems. www.polarservicecenters.com

Polar Tank Polar Corporation is a leading North American tank trailer manufacturer. Working with commercial and private fleets of all sizes it designs, builds and supports trailers for

Ryder Select Care Maintenance Ryder offers a wide range of maintenance products for all vehicle types, giving fleets the flexibility to select the level of maintenance needed to keep a truck running properly throughout its life span. With Ryder SelectCare Maintenance an operator can choose from SelectCare Full Service, SelectCare Preventive or SelectCare On-Demand. There is the option to choose where the service delivered—at a Ryder shop, on-site or via mobile service. www.ryder.com

Seneca Tank Seneca Tank makes buying a tank truck or tank wagon as easy as possible. It builds and manufactures a full line of tank trucks for

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ROUNDUP: Truck, Trailer and Truck Equipment commercial, agricultural, marine and industrial fuel delivery applications. Seneca Tank aims to provide exceptional quality and service after the sale. Seneca Tank trailers maximize structural integrity in high-stress locations throughout the tank. This optimizes tank life without sacrificing payload.www.senecatank.com

SmartDrive SmartDrive Systems gives fleets and drivers heightened driving performance insight and analysis, helping save fuel, expenses and lives. Its video safety, predictive analytics, telematics, compliance and personalized performance program help fleets improve driving skills, lower operating costs and deliver significant ROI. With an easy-to-use managed service, fleets and drivers can access and self-manage driving performance anytime, anywhere. www.smartdrive.net

Syntech Syntech, producer of the FuelMaster commercial fleet fuel management and mobile fueling systems, offers its FMLive solution. Instant access to tank inventories and alarms allows managers to track every drop of fuel in and out of tanks ensuring real-time inventory. FMLive gives users the ability to view fuel transaction inventory and system diagnostic in real time. Web-based functionality enables access to data from any device anywhere in the world. FMLive utilizes Federal Government approved security to protect information and networks from malicious and unauthorized users. The FMLive provisioning server allows for updates and upgrades to be deployed without taking systems offline. www.myfuelmaster.com

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Scully Signal Company Scully Connect is an easy, tool-free, quickconnect overfill sensor connection system. Cut installation time by more than 50 percent with pre-wired sensors, and quick sensor and cable connections. Replace Scully Connect™ Sensors in minutes with no tools and no wire splicing. Engineered for rugged dependability, it will outperform other overfill prevention systems and keep your vehicles on the road. It comes with corrosion-proof, marine-grade connectors, easy sensor adjustment, and enhanced vapor tightness. It has been field tested for over two years to ensure rugged dependability. It Incorporates Scully’s existing patented sensor technology and pre-wired connections. www.scully.com

Skybitz Skybitz’s SMARTruck’s fleet management mobile technology provides drivers with technologically advanced yet easy-to-use handheld devices. Implementing SMARTruck software allows an operator to centralize your dispatching operations and manage driver activity in real-time. Approved onboard truck technology solutions are available in various brands and configurations. The application itself is intuitive and user friendly. Within minutes, operators will quickly learn to navigate through the brightly-colored touch screen to effectively master this powerful fleet management solution. www.skybitz.com

Thunder Creek The Multi-Tank Upfit from Thunder Creek is a 920-gallon system for medium-duty truck bodies. What’s most interesting about this setup is that the driver that runs this truck up and down the road will not need a CDL or HAZMAT. The concept was born from the company’s Multi-Tank Trailer, which made FMN Magazine

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transporting bulk diesel without a CDL/HAZMAT a legal reality. The Multi-Tank Upfit is the natural evolution of this concept. Beginning with a customer-provided Ford F550 chassis, the upfit incorporates 920 gallons of diesel capacity in eight 115-gallon tanks. The tanks are isolated with either a manual or automatic manifold to ensure the truck can be legally driven by anyone with a standard license. www.thundercreek.com

Trinium Technologies Trinium’s Cardlock Management System provides a complete enterprise system to manage network or proprietary cardlocks and fuel cards. Automatically upload card files, reconcile foreign, domestic and remote transactions and invoice customers. This module also allows an operator to set up automated pricing and manage cardlock inventories as well as to report on all elements of the cardlock operations. Trinium’s CMS eliminates manual card file handling and processing allowing staff to focus on the important business of selling fuel at the best possible margins, billing and collecting cash. www.triniumtech.com

Total Control Systems The TCS 700 rotary flow meter combines excellent accuracy with low pressure drop. The TCS 700 rotary flow meter has a compact size and lightweight design that offers minimal maintenance and long service life. This meter is built with advanced materials of construction for a broad range of measurement applications and is accompanied by a full selection of accessories and electronic registration. www.tcsmeters.com

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Tremcar USA Tremcar offers a range of truck and trailer mounted petroleum tank solutions. Canadianbased Tremcar produces stainless steel farm

pickup tanks trailers, stainless steel chemical tank trailers, stainless steel food grade tank trailers, aluminum dry bulk tank trailers, aluminum petroleum truck mounts, aluminum petroleum trailer, stainless steel and aluminum crude oil/ethanol tank trailers, aluminum vacuum trailers or hot product/asphalt tank trailers, among others. www.tremcar.com

Tuthill Tuthill Transfer Systems’ commercial/municipal Fill-Rite Fuel Management System combines hardware, a mobile application, and a web portal to give users real-time control over their fuel. At least one Control Module is required at each site. With the addition of Expansion Modules, each control module can monitor up to 51 hoses, and it is compatible with most

pump and meter brands. The hardware stays connected everywhere, even in areas with low connectivity and it easily fits most installations because it is roughly the size of a shoe box. www.ﬁllrite.com

Vertrax Vertrax’s Smartdrops completely automates the delivery transaction for the driver from controlling the pump to generating the invoice to batch reconciliation. It uploads delivery plans to vehicles at the beginning of the day, computes and prints invoices and captures signatures in the field, allows instant wireless messaging and management of delivery data with back office systems. www.vertrax.smarksites.com

Westmore industries Westmor Industries manufactures a full line of equipment designed to store, transport and dispense petroleum, propane and other liquids and gasses as the company says: “From Pipeline to Pump.” Westmor manufactures two transport trailer trucks. The Proline Transport is manufactured in five different models for LP, LT, CO2 and NH3 fuels. Our 80K Truck and Pull is manufactured to DOT 406 spec and designed to give drivers on the west coast better payload and greater maneuverability when delivering to c-stores with small footprints. For tank wagons and bobtails, Westmor has trucks for propane, refined fuel, heating oil, and service fluids. www.westmor-ind.com

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What Does That Mean? Test Your FMN Acumen The list below represents acronyms used in this issue of Fuels Market News. ACE ACES ACT AFPM AI ANSI API ASME AST ASTM ATA b/d B100 B20 CARB CDL CNG CO2 DEF DOT E10 E15 EIA EMV EPA ERP EU EV FRP FTC GDP HAZMAT ICAO LNG LP LPG M-PACT M&A MPG NACS NATSO NBB NH3 NHTSA NOx OEM PCI PE PEI PLC PLL PM PMAA POS psi R&W RFA RFS RIN ROI RTM RVO RVP SAF SKU SPA TMC UL UST WPMA

American Coalition for Ethanol Advanced Collaborative Emissions Study Americas Commercial Transportation Research American Fuel & Petrochemical Manufacturers Artificial Intelligence American National Standards Institute American Petroleum Institute American Society of Mechanical Engineers Aboveground Storage Tank American Standard Test Method American Trucking Associations Barrels Per Day 100% Biodiesel 20% Biodiesel, 80% Petroleum Diesel California Air Resources Board Commercial Driver License Compressed Natural Gas Carbon Dioxide Diesel Exhaust Fluid Department of Transportation 10% Ethanol Gasoline 15% Ethanol Gasoline U.S. Energy Information Administration EuroPay, Mastercard, Visa U.S. Environmental Protection Agency Enterprise Resource Planning European Union Electric Vehicle Fiber-Reinforced Polymer Federal Trade Commission Gross Domestic Product Hazardous Materials International Civil Aviation Organization Liquefied Natural Gas Liquefied Petroleum (Gas) Liquefied Petroleum Gas Midwest Petroleum and Convenience Tradeshow Mergers & Acquisitions Miles Per Gallon National Association of Convenience Stores National Association of Truck Stop Operators National Biodiesel Board Ammonia National Highway Traffic Safety Administration Nitrogen Oxide Original Equipment Manufacturer Payment Card Industry Polyethylene Petroleum Equipment Institute Programmable Logic Controller Pollution Legal Liability Preventative Maintenance Petroleum Marketers Association of America Point of Sale Pounds per Square Inch Representations & Warranties Renewable Fuels Association Renewable Fuel Standard Renewable Identification Number Return on Investment Resin Transfer Molding Renewable Volume Obligation Reid Vapor Pressure Sustainable Aviation Fuels Stock-Keeping Unit State Program Approval Technology and Maintenance Council Underwriters’ Laboratories Underground Storage Tank Western Petroleum Marketers Association

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ADD Systems...................................... 18 Biobor Fuel Additives......................... 25 Cummins & White.............................. 20 Ecogreen Tank Monitor....................... 70 FPPF....................................................15 Fuels Market News............................. 68 IGEN..................................................... 3 Innospec..................... Inside Back Cover Lock America, Inc................................ 71 Loxahatchee Electronics...................... 62 MidContinental Chemical Company, Inc............................... 44 â&#x20AC;&#x201C; 45 North American Bancard.....................54 OPW Retail Fueling............................. 5 Paragon Solutions.............................. 40 RDM Industrial Electronics, Inc...................... Back Cover Shields, Harper & Co........................... 43 SkyBitz Petroleum Logistics..................... Inside Front Cover Source NA.......................................... 32 Thunder Creek Equipment...................13 TMC................................................... 38 TriniumTech....................................... 61 WPMA............................................... 67

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