Fuels Market News Magazine Summer 2018

Summer 2018

Your Source for News and Information

Jimmy Frangis

Celebrating Clean Diesel’s Progress and Potential

Time for Retailers to Love Higher Ethanol Blends

West Texas Traffic Jam

The Latest Battles with the RFS FMN Interviews PDI CEO

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

features Page 8 The Latest Battles

with the RFS

by Keith Reid

Page 10 Celebrating Clean

Diesel’s Past Progress and Future Potential

by Ezra Finkin

Page 16 Heroes Around You:

Fuel Logistics Lessons From Maria

by Randy Grizzle

Page 19 PDI Makes Big Moves

to Become an All-Encompassing Solution Provider

by Keith Reid

Page 30 Time for Retailers to Love

Higher Ethanol Blends

by Joe Petrowski

Page 33 Laying the Groundwork for UST Compliance

by Joe O’Brien

Page 48 West Texas Traffic Jam:

Pondering Progress in the Oil Field

by Brian Reynolds

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by Department

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PUBLISHER'S NOTE

FUELS & SUPPLY

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The Simple and Compelling Case for Natural Gas Vehicles

by Joe Petrowski

RETAIL OPERATIONS

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Keeping the Main Thing the Main Thing: The Key to C-Store Growth

by Tom Bandy

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COMMERCIAL FUELS

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Now is a Good Time to Outsource Your Fuel Program!

by Glen Sokolis

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Fleets Create Appealing Work Environment Through New HR Strategies

by Mark Murrell

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The Business Case for Propane Autogas

by Michael Taylor

BUSINESS OPERATIONS

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Five Steps to Proactively Steer Gray Fleet Risks

by Blake England and Lori Severson

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DEF ROUNDUP

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INDUSTRY NEWS

44 52

The Simple and Compelling Case for Natural Gas Vehicles Heroes Around You: Fuel Logistics Lessons From Maria The Business Case for Propane Autogas Five Steps to Proactively Steer Gray Fleet Risks

ADVERTISER’S INDEX

The Latest Battles with the RFS

PUBLISHER’S NOTE

A note from

Gary Bevers, Group Publisher EDITORIAL STAFF

It’s hot as blazes here in Houston—and in many other parts of the country, for that matter. Every year at this time, I question my sanity for living in such a hot part of the country! (Then in January, I remember why.) Many of our readers are on vacation right now, but despite holidays and other summertime distractions, here at FMN we continually strive to present the most timely and insightful articles to help you with your business.

In this issue we cover alternative fuels, from Joe Petrowski making a case for natural gas vehicles and higher ethanol blends to Michael Taylor’s article covering propane autogas. On the operational front, Glen Sokolis writes that to save money, outsourcing your entire fuel program makes a lot of sense, and Joe O’Brien has a very timely and detailed article on UST compliance.

Turning to traditional-but-still-improving fuels, read Ezra Finkin’s article on clean diesel’s potential and Everett Osgood’s and Bernard Roell’s Top Tier Fuels piece showing you have many options to explore to improve operational performance and save money.

FMN Editorial Director Keith Reid covers “The Latest Battles with the RFS” and also interviews PDI’s CEO Jimmy Frangis to learn more about PDI’s bid to become the first all-encompassing solution provider in the downstream space.

With the current driver shortage in mind, Mark Murrell, a new contributor for FMN, writes an excellent article entitled “Fleets Create Appealing Work Environment Through New HR Strategies.” Blake England and Lori Severson provide an insightful and educational piece on protecting your business from gray fleet risks—a subject I had never thought about but now find compelling and interesting.

Brian Reynolds got lost in West Texas and shares an entertaining and personalized account on frac fueling, which can be a new revenue generator in many parts of the country, not just Texas!

And finally, Randy Grizzle’s feature on “Heroes Around You: Fuel Logistics Lessons From Maria” is very appropriate for our Summer Issue and provides a heartfelt “lessons learned” when government and private enterprise cooperate in a crisis.

I hope you enjoy this issue of Fuels Market News Magazine, and I always appreciate your thoughts and feedback. 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.

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

Mailing Address 15201 Mason Road, Suite 1000-288 Cypress, TX 77433 www.FuelsMarketNews.com © Copyright 2018, FMN Media, LLC All Rights Reserved

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The Simple and Compelling Case for Natural Gas Vehicles

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FUELS & SUPPLY

While the fascination of the public policy crowd is with electric, natural gas is the superior alternative and should be vigorously supported by all segments of the transportation fueling industry. The reasons are numerous and powerful.

by Joe Petrowski In the United States today, we have 242 million vehicles.

They are powered as follows:

• 3.2 million Hybrids • 234,000 Plug-in Electric

For electric, our power grid is already at capacity and undercapitalized. Adding 50 million or more electric vehicles would ensure that brownouts and blackouts are in our future, especially with the closing of coal and nuclear plants while relying more on intermittent power like solar and wind.

Precious power is better used for desalination; clean water will be our next commodity crisis.

• 150,000 NGVs

(Natural Gas Vehicles)

So, there are 3,584,000 alternate fuel vehicles, or less than 2% of the total vehicle fleet. The 238,416,000 petroleum vehicles produce 105,000 short tons of CO2/year and other heat-trapping gases and particulates.

What we need to lobby for:

• Tax credits and accelerated depreciation

While the fascination of the public policy crowd is with electric, natural gas is the superior alternative and should be vigorously supported by all segments of the transportation fueling industry. The reasons are numerous and powerful.

• Environmental: While a gallon of gasoline

produces 20 lbs. of CO2 and diesel 23 lbs., a gallon of natural gas produces 16 lbs. of CO2. Switching half the fleet to compressed natural gas (CNG) reduces CO2 by 30,000 tons/year.

for NGVs and fueling infrastructure

• HOV lanes and special parking • A recognition that electric vehicles will

always be limited by cost, range anxiety and zero adoption by the small truck, van and SUV segment—the fastest growing and most profitable segment for automakers n

• Price: The gallon-equivalent cost of CNG is

$1/gallon, and with our domestic abundance, reserves and efficient production costs, it will remain inexpensive for 50 years. A natural gas-based transport system would save $437 billion per year, or almost 3% of current GDP.

READ MORE at FuelsMarketNews.com

Joe Petrowski

• Infrastructure: While a conversion to electric

would require massive investments in and disruptions to current infrastructure and threatening the 1.9 million currently employed in fuel services from wholesale to retail, a buildup of natural gas fueling at current fueling facilities would add jobs and capital formation. It would further diversify our fuel supply with that diversification being domestic and add capability to weather threats to our fuel chain.

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

FuelsMarketNews.com

by Keith Reid

The Latest Battles with the RFS The battle between Big Agribusiness and Big

Oil relative to the Renewable Fuel Standard (RFS) and most specifically ethanol, is heating up once again over a range of moves by the Trump administration and by its proxy, the Scott Pruitt EPA.

The first issue has been the willingness of the Trump EPA to issue RFS volume exemptions to smaller refineries. This was a component of the RFS during its first two years for refineries with a throughput of no more than 75,000 barrels per day (bpd) of crude oil. After that initial period, a refinery could ask for an extension if the RFS program was causing that particular facility a “disproportionate economic hardship.”

Unsurprisingly, such exemptions were rare during the Obama years. Equally unsurprising such exemptions are not so rare under the Trump administration, with the Renewable Fuels Association (RFA) noting that in recent months EPA has granted over two dozen exemptions and that small refinery exemptions granted for the past two years have effectively reduced volumes of renewable fuel by as much as 1.6 billion gallons. By comparison, the current volume requirement is approximately 15 billion gallons of conventional biofuel.

Seeing this as an end-around on the RFS volume requirements while wanting greater transparency in the process, RFA, National Corn Growers Association (NCGA), American Coalition for Ethanol (ACE) and National Farmers Union (NFU) with support of Farmers Union Enterprises recently filed suit to

“EPA is trying to undermine the RFS program under the cover of night. And there’s a reason it has been done in secret—it’s because EPA is acting in contravention of the statute and its own regulations, methodically destroying the demand for renewable fuels.”

Bob Dinneen, RFA

“”

challenge three of these waivers. The refineries in question estimated in financial disclosures that the exemptions have saved them a collective $170 million in compliance costs according to the ethanol supporters.

“EPA is trying to undermine the RFS program under the cover of night,” said Bob Dinneen, CEO and President of RFA in a release. “And there’s a reason it has been done in secret—it’s because EPA is acting in contravention of the statute and its own regulations, methodically destroying the demand for renewable fuels. With the little information we’ve been able to piece together through secondary sources, it’s clear that EPA has been extending these exemptions to refineries that didn’t qualify for them.”

RFA noted that although EPA typically publishes its proposed actions and final decisions in the Federal Register, EPA has not followed those protocols for small refineries, nor has EPA informed the public by any means that it had received or acted on such carve-out requests. Instead, ethanol producers learned of the exemptions second-hand, through media reports and secondary sources.

“EPA left us with no choice but to challenge their systematic cuts to ethanol blending in the U.S. by distorting the intent of the law to grant secret hardship waivers to refineries, which in some cases exceed the definition of ‘small’ and fall short of demonstrating ‘disproportionate economic hardship,’” said Brian Jennings, CEO of ACE in a release. “We cannot sit by and allow EPA to violate the RFS, which requires increasing the use of renewable fuels in the U.S.” FMNMagazine

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FUELS & SUPPLY Ted Cruz: “More corn will be sold (good for farmers), plus lower RINs (saves blue-collar refinery jobs), plus more ethanol exports (good for America).”

The release noted that the petitioners are not challenging EPA’s underlying authority to exempt certain small refineries, rather, they are challenging three granted exemptions as abuses of EPA’s authority. EPA should be forced to explain why an otherwise profitable refinery faces disproportionate hardship from compliance with the RFS. “We want EPA to explain why it is reasonable for HollyFrontier, which apparently could not afford to comply with the RFS, could nonetheless afford to undertake a $1 billion stock share repurchase program during the same time—and that’s before the company received over $300 million in tax cuts last year.

Likewise, the petitioners would like to understand how EPA could find hardship at CVR Energy, which reported a $23 million profit in the biofuels credit market in the first quarter of 2018, due to what it called a lower RFS obligation.”

It also seemingly reflects Trumps’ desire to maintain his campaign promises (support for an all-of-the-above energy policy including biofuels) with his desire to make “good deals.” While RINsupported exports would seemingly be a wash, a contention strongly refuted by the ethanol industry, it’s hard to argue that they would not impact the stability of the RFS program by reducing blend volumes in the United States.

“Attaching a RIN to ethanol exports would have a crippling impact on American agriculture—significantly reducing demand for ethanol and corn,” said Emily Skor, CEO of Growth Energy in a release. “It would also have major trade implications, as export RINs would be considered a subsidy by our global trading Oddly enough, American Petroleum Institute (API), which is no partners, who will likely challenge this as unnecessary advantage friend of ethanol and has called for the repeal of the RFS many to U.S. ethanol. Further, export RINs would be a clear violation of times, is also against these exemptions—but for far different the RFS, which is intended to increase the domestic use of biofuels. We continue to thank our Congressional champions for standing firm against efforts to destroy “The ongoing issues with the RFS program ethanol demand.”

are structural in nature, apply to all regulated parties, and need to be addressed on a nationwide basis. API recommends that EPA should deny the state waivers and should not approve any small refinery exemptions.”

“”

Frank J. Macchiarola, API

reasons. “Any RFS volume reductions contemplated by the agency must maintain a level playing field in the marketplace, and must apply equally across the whole refining sector. The ongoing issues with the RFS program are structural in nature, apply to all regulated parties, and need to be addressed on a nationwide basis. API recommends that EPA should deny the state waivers and should not approve any small refinery exemptions,” said API Downstream and Industry Operations Director Frank J. Macchiarola in a February 12 filing.

Under pressure from the ethanol lobby, Trump has apparently backed away from the RIN/Export proposal while remaining committed to the year-round E15 offer.

The major concern there now becomes the actual implementation of that policy beyond the verbal commitments.

Most of the impacts from these policy initiatives are framed in the releases relative to the economic hardship for farmers or ethanol producers. Our focus is, of course, on fuel marketers and retailers. Many are moving to E15 and in some cases E85. So why are these bad policies for our industry?

ACE senior Vice President Ron Lamberty noted in an FMN interview that at the user end it’s not so much the impact of these moves on RIN prices, but the potential fundamental shifts in RFS policy and the availability of domestic RINs to smooth out price swings and add stability for marketers and retailers.

“It takes away a market from us, essentially. Right now, we export ethanol to make up for times when we get excess supply here,” said Lamberty. “Assigning RINs to exported gallons would actually reduce the amount of ethanol required to be sold here.

Every gallon sold in another country would replace a domestic gallon, so we’d be hurting ourselves by exporting if those gallons generated RINs. They (RINs) need to apply to U.S. ethanol for the reason the oil companies wanted RINs in the first place. What if there’s no ethanol? What do I do? I bought extra last year. Can I use it this year? Sure. Here’s the credit. On the flip side of things, we shouldn’t have to be exporting any gallons at all right now, because when ethanol is super cheap it should be selling like crazy, and since RINs come along with it for nothing, RIN price wouldn’t matter because they have extra RINs to use later.” n

RINs for Exports and E15 Summer Exemptions Another issue has been the Trump administration’s May 8 proposal to have EPA waive Reid Vapor restrictions for E15 in order to allow it to be sold in the summer, or essentially yearround. Also proposed was allowing Renewable Identification Numbers (RINs) to be used for exported biofuels. This was discussed at an RFS meeting that included Sens. Chuck Grassley (R-Iowa), Joni Ernst (R-Iowa), Ted Cruz (R-Texas) and Pat Toomey (R-Pa.) A previous proposal to cap RIN prices, which had been high but subsequently dropped, was shelved.

READ MORE at FuelsMarketNews.com

On the surface, both the E15 and RIN export proposals would seem to be a win/win, as Tweeted by oil supporting Senator FMNMagazine

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by Ezra Finkin

Celebrating Clean Diesel’s Past Progress and Future Potential

Clean Technologies Drive Air Quality Improvements: The advancement in clean technologies, notably clean diesel technologies, is a leading contributor to these reductions. As mobile source emissions have fallen, the number of miles traveled by cars, trucks, buses and equipment grew by 31 percent.

There was much to celebrate this 20th anniversary of Air Quality Awareness Week (April 30 – May 4).

Consistent progress to reducing emissions has been achieved largely through cleaner fuels and technologies like clean diesel.

Our Ambient Air Quality is Much Improved

Clean Technologies Drive Air Quality Improvements

Oxides of nitrogen (NOx), a smog-forming compound, are down 31 percent while fine particle emissions (PM) are down 21 percent between 1996 and 2016, the last full year for which EPA reports emissions data.

The advancement in clean technologies, notably clean diesel technologies, is a leading contributor to these reductions. As mobile source emissions have fallen, the number of miles traveled by cars, trucks, buses and equipment grew by 31 percent. These improvements in emission reduction are largely provided by the advancements of clean technologies, including clean diesel technology.

Mobile Source Emission Contributions Are Down Emissions from things that move—cars, trucks, equipment, ships, trains, etc.—have fallen. As a share of NOx emissions, mobile sources contribute 36% today, down from 52 percent in 1996. For fine particles, mobiles sources are down from 21 percent in 1996 to 14 percent today.

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Celebrating Clean Diesel’s Past Progress and Future Potential

1996 —2016

A clean diesel Class 8 truck that meets the most recent EPA tailpipe emissions standard can reduce NOx emissions by 2.3 tons relative to older technologies.

Clean Diesel Pathway to Better Air Quality

The Pattern of Continuous Improvement of Diesel Technology Will Accelerate

Today, diesel is the fuel and powertrain choice of work.

Ninety-nine percent of the largest Class 8 commercial vehicles are powered by diesel and the technology is the powertrain of choice for larger construction and agricultural equipment and much larger applications like tug boats and locomotives. Thanks to the collaboration between industry and regulators, clean diesel technologies are ready and available today to meet the demanding duty cycle of equipment owners while reducing emissions to near-zero levels that have a part to play in the cleaner air we all breathe.

One of the added benefits of the clean diesel platform is its capability for continuous improvement. The diesel engine of today looks nothing like the engine patented by Rudolf Diesel over a century ago. Engine and component manufacturers are hard at work taking today’s near-zero emissions technology closer to zero, just as they work to reduce greenhouse gas emissions and achieve new efficiency milestones for tomorrow. Hybridization and renewable fuels are large opportunity areas for diesel. Biofuel producers will be expanding access to renewable fuels when enabled by the diesel engine of tomorrow, which will be optimized to operate exclusively on renewable low-carbon fuels.

Shortly after the first anniversary of Air Quality Awareness Week, regulators, engine manufacturers and fuel producers began working on the challenge that was known as clean diesel, planning for the pathway to slash emissions from diesel engines by over 90 percent.

The first step was the shift to a cleaner ultra-low sulfur diesel (ULSD) fuel that was implemented beginning in 2006. With access to cleaner diesel fuel, the latest engine designs and aftertreatment technologies were developed for trucks and more recently for off-road equipment. Together, these technologies reduce emissions to near-zero levels.

Sustaining air quality progress is a celebration and challenge. We must embrace the progress that all fuels and technologies play in achieving clean air for the future. n

Comparison of Growth Areas and Emissions, 1970—2016

A clean diesel Class 8 truck that meets the most recent EPA tailpipe emissions standard can reduce NOx emissions by 2.3 tons relative to older technologies.

A tug boat powered by the latest clean diesel engines can reduce emissions by 14.9 tons relative to older technologies.

Clean diesel is already out on the road and in the field moving our economy and reducing emissions. Today, about one-in-three commercial vehicles on the road comes with a clean diesel engine. The fleet of these clean diesel trucks has removed 21 million tons of NOx emissions since 2011, when EPA required new trucks rolling off assembly lines meet the near-zero NOx standard. Getting newer trucks in service, along with larger off-road equipment, will further contribute to emission reductions and air quality improvements.

READ MORE at FuelsMarketNews.com

Ezra Finkin Ezra is the policy director for 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. Diesel Technology Forum members are global leaders in clean diesel technology and represent the three key elements of the modern clean diesel system: advanced engines, vehicles and equipment, cleaner diesel fuel and emissions-control systems.

What about the next 20 years?

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Ethanol policy under the Trump administration still sees support with such initiatives as a promise to exempt E15 from Reid Vapor Pressure requirements in summer months. At the same time, the oil industry is not being treated as a pariah as it was under the Obama administration, leading to some friction in areas like renewable fuels standard (RFS) volume waivers with smaller refiners. Further, recent presidential candidates Ted Cruz and Rand Paul contend that running against ethanol subsidies is not an electoral deal breaker compared to past political conventional wisdom, even with the importance of the Iowa primary.

Bottom Line:

A lot has changed in the domestic energy landscape since the current RFS became law. Arguments over the impact of policy initiatives on agribusiness and ethanol producers are probably not the most effective for the RFS’s long-term viability, compared to developing strategies that establish and show ethanol’s positive impacts for fuel marketers, retailers and consumers.

READ MORE

at FuelsMarketNews.com

WHOLESALE & FLEET OPERATIONS

by Randy Grizzle

Heroes Around You

Fuel Logistics: Lessons From Maria

“

The island was left without power, water and fuel. While tragic, this would not have been an immediate concern to Diversified. Diversified had never delivered fuel into Puerto Rico, in fact, none of the team members at Diversified had ever in their many years in the fuel industry delivered to Puerto Rico. A late-night call from a customer would change that.

�

F

uel Logistics can be a challenge on a good day. Delivering gasoline and diesel into the impacted area of a hurricane is challenging on an entirely different level. In addition to floods and wind damage, hurricanes have the bad habit of making fuel supplies scarce.

The hurricane season of 2017 had already proven to be one of the most active seasons in recent memory. Diversified Energy Supply (DES), a national fuel marketer, thought they were officially done with hurricane recovery after the last backup generator on their list was filled after Hurricane Irma. Absent a late season hurricane, they could finally relax after weeks of relentless effort.

Hurricane Maria had other plans. Maria struck the island of Puerto Rico causing untold damage. The island was left without power, water and fuel. While tragic, this would not have been an immediate concern to Diversified. Diversified had never delivered fuel into Puerto Rico, in fact, none of the team members at Diversified had ever in their many years in the fuel industry delivered to Puerto Rico. A late-night call from a customer would change that.

The customer had facilities on the island that shipped various products that included medical supplies. Their locations needed fuel to keep trucks moving. The customer viewed this as a humanitarian event and was determined to help, which meant asking Diversified to send fuel trucks to Puerto Rico.

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WHOLESALE & FLEET OPERATIONS The customer connected Diversified to their export broker. The broker was at first hesitant, but with gentle coaxing, proved to be a godsend in helping navigate the many forms and regulations.

The vessel operator who would carry the trucks from the Port of Jacksonville obtained waivers that allowed the trucks to be shipped loaded with gasoline and diesel. The fuel truck provider, Perry Oil, had contacts with other fuel companies operating on the island and was able to secure lodging for the drivers at a hotel that had electricity and satellite television where the drivers could wait, entertained and in safety, while the wheels of bureaucracy sputtered. Despite everything, the plan was slowly coming together.

There were many late evening and weekend calls with the customer, customs, truck suppliers, import brokers and drivers. Despite having no experience in Puerto Rico, language barriers, a storm-damaged communication infrastructure and mounds of bureaucracy, six fuel trucks made their way to the island, delivered fuel to the customer and eventually returned home safely.

With so many challenges to overcome, there were several lessons DES was able to glean from this adventure to the island of Puerto Rico:

Persistence Pays: Given the complexity of the challenge it

would have been easy to say, “no,” and not delivered for the customer. There were plenty of opportunities to accept “no” as an answer. When faced with a sea of problems, do not become overwhelmed. Solve the first problem first. Upon completion, solve the next. With persistence, you just might be able to solve all of them.

Persistence Coupled with Creativity is Powerful:

Sometimes simply hammering at a problem is not enough; some problems require creative thinking. DES had to alter the framework of the agreement in order to meet certain regulatory requirements. The cabs of the trucks had to be filled with provisions for the drivers because food and water might not have been available otherwise. Travel agents were unable to find hotel rooms, so creativity was required to ensure driver safety. When persistence alone cannot seize the day, creativity coupled with persistence can be a most powerful combination.

“ ” Success Is a Team Effort: Shipping fuel

trucks to Puerto Rico was not just a Diversified Energy Supply story. The real truth is that DES would never had been able to achieve any of this without numerous heroes in the story.

Dorothy, an export broker, was scheduled to leave work early the day Diversified called seeking help. She stayed until 9 PM that night to get paperwork completed. In the middle of the event, Paul, the lead driver, learned that his brother had passed away. Paul returned to the states for the funeral and then returned to the island to usher the trucks back into port. Jackie, the import broker on the island, had no electricity so she would charge her phone in her car to keep communications open.

Each hero worked tirelessly until the quest was complete.

Words cannot adequately describe all the efforts these and other heroes made. Each worked for a different company but shared a common goal. Together they were able to achieve great things.

When facing the seemingly impossible, realize there are heroes around you. With their help and a common goal, the seemingly impossible can become the recently achieved.

It will take years for Puerto Rico to fully recover from the damage of Hurricane Maria. Diversified Energy Supply is thankful to have played a small part in the recovery and for the lessons learned. DES is also grateful for the heroes who contributed so much. n

Success Is a Team Effort: Shipping fuel trucks to Puerto

Rico was not just a Diversified Energy Supply story. The real truth is that DES would never had been able to achieve any of this without numerous heroes in the story.

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Randy Grizzle Randy is the Director of Business Development for Diversified Energy Supply. Randy’s fuel industry experience spans over eighteen years and includes accounting, corporate strategy, operations management, sales and business development.

Contact Randy at RGrizzle@diversified.energy or 404-474-4696.

WHOLESALE & FLEET OPERATIONS

PDI Makes Big Moves to Become an All-Encompassing Solution Provider PDI

An Interview with

Jimmy Frangis

by Keith Reid

, a leading global provider of enterpriseclass software solutions to the convenience retail and wholesale petroleum industries has been on an acquisition binge since September 2016. It seems like every few months there is a major acquisition announcement and not just of some small-scale technology facilitator, but of an established full-service peer. These acquisitions represent a range of motivations that include entering new markets (regional and business sector), acquiring new customers, acquiring new technologies and acquiring industry talent.

We spoke with PDI CEO Jimmy Frangis about the rationale behind these acquisitions and the processes and strategies at work tying the results together into what will be the future PDI.

But first, a review of the acquisitions and some other major, recent developments in chronological order, and as noted in various announcements. n On September 6, 2016, PDI announced the acquisition of Intellifuel Systems, Inc., a provider of fuel management and logistics solutions for downstream and midstream participants in the fuel supply chain. Intellifuel provides solutions across the fuel supply chain market. Downstream, the company helps petroleum marketers automate the entire order life cycle. Midstream, they provide terminal automation systems, custody transfer, terminal and railcar scheduling, inventory position management and customer/ stockholder portal solutions. n On January 5, 2017, PDI acquired the enterprise resource planning (ERP) assets of what was arguably it’s largest near-peer competitor, The Pinnacle Corporation. This included intellectual property, development and support resources that paralleled PDI’s software offerings for retail automation, fuel supply chain, business intelligence and workforce management. Pinnacle’s customer base includes over 20,000 convenience stores across the U.S.

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PDI Makes Big Moves to Become an All-Encompassing Solution Provider business productivity in the oil and gas, transportation and aviation operations industries. TouchStar’s web-based integrated platform helps customers simplify the management of fleets and mobile enterprises around the world. TouchStar’s global customer base and infrastructure, and its sophisticated mobility and fleet automation solutions, complement PDI’s comprehensive logistics solutions suite.

While not an acquisition, on March 29, 2017, the company released PDI/Payroll that eliminated the need for multiple products and enabled users to simplify the payroll processing experience with a single solution that connects every step from time tracking to check distribution. A few days later, on April 4, 2017, PDI announced the acquisition of three companies: n With established operations and customers with over 30,000 sites in over 50 countries, DataMax Group Inc. provides convenience store back office software and services for retail fuel stores including major oil companies. Their scalable software allows both multi and single store operators to improve control and manage operations more efficiently.

n On April 11, 2018, rumors that loyalty provider Excentus was potentially in play were confirmed when PDI acquired the company. Excentus is a provider of loyalty and coalition marketing solutions for the U.S. retail, grocery, national brands and convenience retail segments. This adjacency expansion complements PDI’s enterprise software solutions while broadening the company’s capability to serve customers better. In addition, it added over 600 new customers to PDI’s roster and allows PDI to deliver comprehensive, enterprise software technology and data solutions—adding another facet to PDI’s suite of ERP and back-office solutions.

n Based in Germany, LOMOSOFT provides secondary fuel distribution customers with more than 27 years of deep logistics and carrier industry network expertise. It expands PDI’s footprint into Europe to 38 countries and adds robust logistics capability to PDI’s portfolio of offerings in the area of wholesale logistics and fuel supply chain.

n Finally, as of May 30, 2018, PDI has acquired DM2. Founded nearly 30 years ago, DM2 provides back office enterprise resource planning automation solutions for over 200 customers. The company has been a leading supplier of technology to wholesale petroleum marketers in the U.S. PDI will acquire DM2’s intellectual property, development and support resources—strengthening its overall operations with cardlock and lubricants knowledge being specifically noted.

The acquisition will also provide PDI with a regional presence on the U.S. West Coast to better service customers in that area.

Focused on wholesale petroleum companies serving over 170 clients selling more than 20 billion gallons of fuel per year, FireStream Worldwide provides end-to-end software for downstream and midstream jobbers, lubricant suppliers and propane marketers. On September 13, 2017, PDI introduced a new brand identity, which was spearheaded by PDI’s Chief Marketing Officer Nadine Routhier. The logo pays homage to the stylistically unique lettering of its predecessor, signifying the company’s stability and 34-year reputation in the industries it serves. The accompanying sphere, which features a series of connecting dots and arcs, symbolizes the flexibility of PDI’s solutions and the company’s commitment to building a thriving, global ecosystem of customers, partners and products.

Although these were acquisitions, we have referred to them in the present tense they all are listed as independent solutions at the PDI website (at least for the time being) and are largely still being maintained as such. That will undoubtedly change over time.

Helping finance this growth were investments from TA Associates starting in 2016 and, later, Genstar Capital.

“There’s never been a more exciting time to be at PDI,” said Routhier in the announcement release. “I’m so proud of the results we’ve achieved by collaborating with our customers and employees. Not only is our new identity visually compelling, but it reinforces our mission to help create an unparalleled, servicecentered experience for our customers that supports their business and drives their growth.”

“Since beginning our partnership with the PDI management team in May 2016, PDI has successfully executed against its growth strategy, rapidly accelerating topline revenue growth, delivering significant levels of product innovation and deepening its presence in international markets,” said Hythem T. El-Nazer, managing director, TA Associates.

The end of 2017 and start of 2018 brought more acquisitions.

That sentiment was echoed by Eli Weiss, managing director, Genstar Capital. “Genstar focuses on identifying market leaders in the software sector and we believe that PDI has established an unmatched presence in the market for more than 30 years,” Weiss said. “We are confident that the breadth of PDI’s current portfolio along with the potential for expanding its existing services and software offerings will bring a new level of experience to the industries and the customers it serves. Our added capital and resources in partnership with TA Associates will provide PDI with the means to further develop their technology and allow for strategic add-on acquisitions that we believe will meet the needs of a rapidly changing market.”

n On November 1, 2017, PDI acquired TelaPoint™ from WEX Inc., a provider of corporate payment solutions for fleet operators. As a leading provider of fuel supply chain management software, TelaPoint’s software enables convenience retailers and petroleum outlets to improve the efficiency of their fuel replenishment, buying and administrative operations. TelaPoint manages inventory, dispatch and fuel pricing for 77 customers around the globe, 150 carrier companies and 67,000 sites. n On January 8, 2018, the company acquired TouchStar Group LLC, a multinational logistics automation company. The acquisition expands PDI’s product offerings into enterprise mobility software and automation systems, which transform FMNMagazine

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WHOLESALE & FLEET OPERATIONS

PDI Makes Big Moves to Become an All-Encompassing Solution Provider

Now, on to the interview.

FMN: What drives your acquisition strategy?

Frangis: We look at the needs of the industry. Then we look at the solutions we have in-house, examine where we have gaps and determine whether we want to fill those gaps through acquisitions or our own R&D budgets.

FMN: Traditionally, PDI has been seen as a leader in retail, in-the-store back office/ERP solutions. While there are some significant retail-related acquisitions, a tremendous part of the activity has been related to the wholesale fuel side.

“PDI’s heritage is more on the retail side of the business. We’ve got very strong solutions there, so we needed some more capabilities on the wholesale and logistics side, and that’s why you’ve seen some of the investments we’ve made in that area the past 18 months.”

Jimmy Frangis customers more holistically. And then there was this whole swath of the industry that we weren’t serving at all because they were wholesale only or wholesale-centric. So, the investments we’ve made both through acquisitions and through our organic R&D have now given us the capability to serve a jobber that is exclusively wholesale with a fleet of trucks they own and manage, or a dedicated retailer or a combined operation. That was a big part of what we were trying to do.

FMN: PDI has had such a strong retail brand—what

is the brand message moving forward with the new wholesale facing?

Frangis:

We believe there is a lot of strength and power in the PDI brand. So, we have focused on that brand.

Certainly, some of the companies that we’ve acquired have strong recognition in the market as well. The way we’ve handled some of those brands is we’ve retained them as more product line or solution brands. But we believe, especially here in the North America market, that PDI has a really strong brand, a good reputation for serving customers, and we believe that carries forward into the wholesale market as well.

Frangis: PDI’s heritage is more on the retail side of the business. We’ve got very strong solutions there, so we needed some more capabilities on the wholesale and logistics side, and that’s why you’ve seen some of the investments we’ve made in that area the past 18 months. I’m not suggesting we’re done there, but we’ve made a lot of progress. Now we’re in the throes of the integration process and increasing the efficiency of our investments and putting the investments in the right platforms going forward is a big part of that. So, there’s a lot of emphasis there on the wholesale and logistics side, and we’re working very closely with all of our customers on that.

FMN: With a full portfolio of solutions, PDI would seem to be positioned, now, to serve virtually any of the more common retail/wholesale business models in the industry.

Frangis: We had a bunch of customers who were primarily retailers that might have had a wholesale business as well, and we felt like there was an opportunity to serve those FMNMagazine

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FMN: Pinnacle was obviously an earlier and very big

move on the retail side, and one we’ve covered previously in FMN. The loyalty provider Excentus was a more recent pick up, and provided a retail-focused acquisition to complement the wholesale activities.

Frangis: Even though we’ve been focused a lot on wholesale logistics, our roots are in retail and our strength has always been in retail. We’ve got a great customer base in North America with really strong solutions, and we always want to enhance the position in retail. So, loyalty was just a natural extension. The convenience segment is investing in loyalty solutions today industry-wide. We felt like there was an opportunity to acquire and then partner with that business to deliver a best-in-class loyalty solution. When you add that to our ERP and retail back office software, you create a compelling combined offering. It was on our list of areas to look at, and when the opportunity came up with Excentus we felt like it was a good match at the right time.

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WHOLESALE & FLEET OPERATIONS

PDI Makes Big Moves to Become an All-Encompassing Solution Provider

“I’m not going to say that we’re perfect at it, and I can’t say there are no bumps along the way—there certainly are. I would say, generally speaking, the integrations have gone well, and we’ve got a really good team that’s excited about the direction of the business and excited to continue to serve our customers.”

Jimmy Frangis

FMN:

How does this acquisition align with customers that might want to use an alternative loyalty program?

Frangis: We would like to build a compelling offering where our customers see the value in leveraging our full portfolio. However, we completely realize not everybody’s going to do that. So, we will remain open in the same way we’re open on the logistics side. We have implementations where our ERP software is integrated into third-party logistics solutions. The same thing with financials. We’ve got our retail back office integrated to third-party financial applications, even though we offer all of those. At the end of the day, we’re going to serve the customer. And if our customers have a competing solution and they need us to support them, we’re absolutely going to do that.

FMN: What are some of the unique capabilities the various acquisitions brought to the table?

Frangis: As discussed, we’ve done a lot of investment in the wholesale petroleum and logistics area, and TelaPoint and TouchStar both fit into that category. Before that, we did FireStream and Lomosoft, the latter of which gave us capabilities in Europe.

TelaPoint gave us a really strong North America-focused dispatch solution along with a tier one customer base that we can continue to serve here in the U.S. But again, more North America focused.

If you look at TouchStar, that helped us in two areas. One, they’re a very global business, and they have a significant presence in Asia Pacific. They have a large office in Sydney, Australia, and service the Asia Pacific region out of that office.

They’ve got a presence in Europe and also a presence here in the U.S. Their real strength from a technology standpoint—and they’ve got a great solution across the board—was in the mobility solution, which is the in-truck.

When you think of logistics there’s the home office solution, which entails dispatching. Then there’s the in-truck piece, which is the technology the drivers use to manage their interactions back to corporate, etc. So, we think it gave us best-in-class, intruck capability. It also gave us a more significant presence FMNMagazine

outside of the U.S. as we continue rounding out our portfolio to be an enterprise management solution provider to the convenience retail and wholesale petroleum markets globally.

FMN: Technologies that support electronic logging

devices (ELD), geofencing and telematics are often provided to fleets by more generic fleet solution vendors. How do your solutions compare and what can be gained by integrating this support into a centralized solution?

Frangis: PDI products leverage geofencing and telematics primarily as a function of updating order status and driving freight calculations, which is very specific to our solutions and not available in generic platforms. As it relates to ELD, we have partnered with KeepTruckin, a San Francisco-based company backed by Good Ventures. KeepTruckin has a robust application programming interface (API), and we are working now to leverage ELD data inside other PDI applications.

FMN: In covering the Pinnacle acquisition, and then in

various discussions and materials released relative to the current acquisitions, PDI seems to have a gradual strategy.

At the start, by and large the acquisitions will remain independent solutions, but over time they will morph in various ways into a more unified package that perhaps still uses (in some cases) the original brands as sub brands. Is that an accurate summary?

Frangis:

I think that’s a fair assessment of how we treat a technology solution when it comes in through the PDI portfolio.

We try to look at it through the lens of the customer, and we try to understand their needs with that solution in its lifecycle. Our goal is to be smart about how we are investing in all the solutions in our portfolio.

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PDI Makes Big Moves to Become an All-Encompassing Solution Provider that’s excited about the direction of the business and excited to continue to serve our customers.

“Generally speaking, with each acquisition there is a specific product strategy that addresses how it fits in the overall portfolio. In some cases, we are consolidating features from one product into another. Over the long-term, as PDI further develops its cloud offerings and international presence, the acquired products will converge as global products under the PDI brand with localized features.”

I think one of the things our team members see is that we are investing heavily. And that is not just with acquisitions, but even more so with our own R&D budget. Ultimately, team members get excited about doing a good job for customers.

They love delivering good value to customers, getting good feedback and seeing customers utilize the solution and get the benefits they were expecting.

FMN:

As a bit of a sidetrack, one component of the TouchStar acquisition was its cloud-based technology— hardly the buzz it was a few years back—and that is something that PDI has also provided. Yet a lot of solutions are still implemented on the customer’s server. How do you see this technology trend playing out over time?

Jimmy Frangis

Frangis:

Generally speaking, with each acquisition there is a specific product strategy that addresses how it fits in the overall portfolio.

In some cases, we are consolidating features from one product into another. Over the long-term, as PDI further develops its cloud offerings and international presence, the acquired products will converge as global products under the PDI brand with localized features.

This is all about us serving the customers and providing them with a technology solution in a roadmap. We want them to be confident that they can continue to utilize our solutions well into the future.

I should say one key tenet in all of that is our team. We’re certainly getting good technology solutions, but more importantly, we’re getting good team members. We’re getting folks who know the industry, know the customers, know the solutions and are excellent at serving the customers. So, we’re trying to bring those teams in, ensure they understand the vision of the business, are excited and engaged about that vision and continue to serve their customers really well.

FMN: Considering the number of acquisitions in the past

18 months or so, it has to be a fairly exciting time to be working at PDI, to say the least. How do you handle what might seem from the outside to be a fairly overwhelming process with bringing all of these entities together, then sorting things out?

Frangis: Certainly, integration can be challenging. We try and set certain principles in place when we embark on an acquisition and integration. Some of those principles are around how we treat our people and how we treat our customers and fulfill commitments. Then we bring teams together that are building like solutions and ensure that there’s good alignment around the direction for those solutions. I’m not going to say that we’re perfect at it, and I can’t say there are no bumps along the way—there certainly are. I would say, generally speaking, the integrations have gone well, and we’ve got a really good team FMNMagazine

23

Clearly, there’s a movement towards more cloud-enabled or cloud-delivered solutions versus onpremise solutions. We’re seeing that with some of the business we’ve acquired, but we’re also seeing that in our core business. We’re hosting probably 40 percent of our core PDI enterprise solution customer base and delivering that solution via our cloud environment. And I’d say probably seven out of every 10 new customers that make the decision to license our technology elect to have it delivered through our cloud infrastructure. So, it’s definitely a growing trend. I think there are some really good reasons behind it. There are some good efficiencies that our customers can gain, and it also gives us an ability to help manage that migration of technology over time too.

FMN: Several of the acquisitions reflect a growing

international focus for PDI. What are some of the commonalities and some of the differences between how the industry goes to market in the U.S. versus overseas?

Frangis:

A lot of the same challenges exist on the wholesale side—the visibility into fuel inventory through the supply chain and better management of that fuel supply chain. Obviously, the world’s a big place, and different geographies can be a little bit different, but you do see fully integrated or more vertically integrated companies outside of North America. Here, there’s a very distinct wholesale market.

But that’s changing too. There’s a lot of consolidation in the market. I think that the key thing we try to focus on is solving the business problems, and on that wholesale side, there are inefficiencies in the supply chain and poor visibility and we’re working hard to solve that. And that is relevant regardless of the specific business model in place in each geography. n

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Bottom Line:

Habits have changed here and there, and millennials still seem to be less automobile focused than other generations. But America still loves the open road and the opportunity for a summer adventure made possible by a car and a tank of gasoline.

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RETAIL OPERATIONS

Keeping the Main Thing the Main Thing The Key to C-Store Growth

FMNMagazine

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Change Is Required

by Tom Bandy

Growing a c-store demands new things to happen, such as more customers, better upselling, improved interactions, etc.

Making improvements by training your staff and improving the store appearance takes time away from the existing workload. There is a natural conflict between doing the existing work and trying to further develop people and systems. For many, “change while you go” cannot be avoided if you want to also “grow while you go.” That is, we must keep the stores running and make improvements “as we go.”

Business guru Steven Covey stated, “The main thing is to keep the main thing the main thing.” Another operational expert, Kevin Kruse, argued in a Forbes article a few years ago that this practice has the power to change one’s life. For many c-store managers the main thing is to grow. They are

Making Time Available

expected to keep the store running and growing. But there is an everyday struggle for

Since time is limited, focusing on the main thing each day is critical. One way to make time available is to eliminate low-value work and only address those tasks that bring the highest value. That means that we must choose the balance carefully— too much and we overload, too little and the customer or growth suffers.

many just to keep the store running as it is. So, how can a store manager keep growth as

“”

the main thing, and how can senior leadership help support that focus?

Setting Priorities Balancing the need for change with existing daily work is made easier by setting priorities. Identify which work items are the main things. Prioritize so work is sequenced from most important to least important. In this way, the work that is not done (i.e., not a main thing) is automatically the work that has the least value. Hence the very definition of productivity is met; replace less important work with higher-value work. The key then is picking the right things or setting the c-store performance expectations.

There is a natural conflict between doing the existing work and trying to further develop people and systems. For many, “change while you go” cannot be avoided if you want to also “grow while you go.”

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?

?

RETAIL OPERATIONS

Know the Priorities

Providing guidance through information, training and technology makes it easier for managers to choose and accomplish the most important work each day. A direct way to help achieve growth is by enhancing employee development with software so it’s easier to set priorities.

How easy is it for your managers to know answers to key questions for your company, district or store? The less time spent finding answers, the more time there is for implementing needed changes. For example:

l Same day sales Was it a good day compared to last year?

“”

Providing guidance through information, training and technology makes it easier for managers to choose and accomplish the most important work each day. A direct way to help achieve growth is by enhancing employee development with software so it’s easier to set priorities.

l Monthly sales What are the trends?

l Top selling items Anything new selling?

l Items that are not selling at all What happened?

l Customer feedback What do they want so they’ll come back? l Communication What feedback needs to be shared?

l Shift duties Are all the shifts doing them completely? l Shift duties Any special training needed?

l Staff development Are we engaging our customers? l Staff development What inspections items failed?

l Store inspections Are the stores how they should be?

l Store inspections Are there specific areas that need improvement? l Store maintenance items Is everything working?

If technology allows the most important information to be found efficiently, then the manager is not wasting time gathering and sharing the information. It then becomes a quick check to decide which things need attention. Creating a list of the priorities that must be done makes work faster and even easier. Sometimes the hardest problem is just figuring out what to do first. So, make it easy for yourself and your team. List the priorities.

Keep the main thing the main thing. n READ MORE at FuelsMarketNews.com

Tom Bandy

Tom is CEO of Bandy Works, the creator of the product Quik Data C-Store Performance Software. It is used to prioritize, track and verify operations. It is a training tool for best practices. Quik Data offers modules that address scorecards, alert resolution, store maintenance, shift duties, store inspections, customer surveys, cigarette scan data, product sales management and 3rd party data integration.

l Store maintenance items Are my stores getting the support they need?

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Focus—Knowing the Main Thing

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RETAIL OPERATIONS

Time for Retailers to Love Higher Ethanol Blends

by Joe Petrowski

F

rank Sinatra once said, “Alcohol may be man’s worst enemy, but the Bible tells us to love our enemies!”

Fuel retailers have had a love/hate relationship with ethanol from high prices and shortages in the beginning of its use, to infrastructure costs that the retailer had to bear, to a plethora of new regulations.

“

”

Politically, in a nation that can and will disagree on most everything, coastal states thought ethanol was nothing more than a boondoggle for Midwestern states at the expense of the coasts and driven by large political agri-business contributors like ADM and Cargill. But it may be time for smart fuel marketers to investigate embracing higher blends.

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FuelsMarketNews.com

RETAIL OPERATIONS Politically, in a nation that can and will disagree on most everything, coastal states thought ethanol was nothing more than a boondoggle for Midwestern states at the expense of the coasts and driven by large political agribusiness contributors like ADM and Cargill. But it may be time for smart fuel marketers to investigate embracing higher blends.

Ethanol is now (as of mid-February 2018) 80 cents/gallon cheaper than RBOB gasoline, meaning every 5% blend increase drops the finished price 4 cents/gallon with E-85 showing a 60-cent discount to generic E10. In a world where there are customers who will jump a curb for 5 cents/gallon, this is simply too resisting for most retailers and their customers.

The U.S. ethanol annual supply and demand looks as follows:

v v v v v

Production—19 billion gallons per year (and increasing) Imports 0.5 billion gallons/year (but declining as domestic prices collapse) Total supply 19.5 billion gallons per year Usage in gasoline blending 17 billion gallons Ending stocks 2.5 billion (54 days of usage—high by any commodity measurement)

There are now 250,000 flex-fuel vehicles in the United States and while the largest number are in California, there are several states with an excess of 3,000 flex-fuel vehicles including Iowa, Nebraska, Oklahoma, Texas and Kansas (as would be expected).

By attracting flex-fuel vehicles, a retailer can expect an incremental 55 trips to the fuel island and 35 trips inside, generating $11,000/year incrementally. When considering a new tank and blending system will cost $20,000, this generates a payback in under two years. Whether it makes sense for any particular site of course will depend on the number of flex-fuel vehicles in your market area and the number of flex-fuel competitors, which is available from the U.S. Energy Information Administration (EIA), Renewable Fuels Association and DOT. It appears ethanol is with us for the foreseeable future and retailers’ only fear of embracing this is another old alcohol joke: “When alcohol is cheaper than gasoline, drink whiskey and walk.” n See Joe Petrowski’s bio, page 7

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RETAIL OPERATIONS

In 2015, the U.S. Environmental Protection Agency

by Joe O’Brien

Laying the Groundwork for UST Compliance

issued new regulations for underground storage tanks (USTs). They will help galvanize a program that promotes strong operational and maintenance practices at fuel sites. But they also put more responsibility on owners and operators—both to know what is expected of them at the federal level, at the state level, or both, and to implement the necessary compliance practices.

With another set of implementation deadlines on the horizon, let’s review the new UST requirements, take a look at how a few states are responding to the regulations and explore what is taking shape for the future of UST compliance management.

Recap of Federal Updates The EPA’s 2015 UST revisions, which can be viewed at www.epa.gov/ust, aim to strengthen the 1988 federal underground storage tank regulations through increased emphasis of proper training and maintenance of UST equipment. Revisions include the following requirements. n Secondary containment requirements were added for new and replaced USTs and piping.

Further, under-dispenser containment must be installed for new dispenser systems. This went into effect on April 11, 2016. n Operator training requirements were added for Class A, Class B and Class C operators. Deadline for training is October 13, 2018. n Periodic inspection and testing will be required beginning October 13, 2018. These regulations include walkthrough inspections, inspection of overfill equipment, spill prevention equipment and containment sump testing, and testing electronic and mechanical components of release detection equipment including automatic tank gauges, probes and sensors, automatic line leak detector, vacuum pumps and pressure gauges and hand-held electronic sampling equipment use for groundwater and vapor monitoring. n Requirements were clarified to ensure UST system compatibility for storage of biofuel blends. (EPA required compatibility beginning with the 1988 UST regulation.) n Effective October 13, 2018, past deferrals for emergency generator tanks, field constructed tanks and airport hydrant systems have been removed. n UST owners/operators in Indian country must now comply with the regulations.

RETAIL OPERATIONS

Laying the Groundwork for UST Compliance

Ruling Authority: Whose Rules Do I Need to Meet?

Which state your fuel site is located in determines which set(s) of regulations you need to follow.

In 1988, the EPA published final regulations that allow the agency to delegate authority of UST requirements to state agencies. Since then, 38 states plus the District of Columbia and Puerto Rico have instituted “State Program Approval” (SPA). USTs in Indian country are not eligible for SPA. States with approved programs must meet or exceed the federal UST requirements in their regulations. Under the 2015 state program approval regulation that was part of the EPA’s 2015 UST revisions, those 38 states and territories must re-apply by October 13, 2018, to retain their SPA status.

The benefit of SPA to UST operators is that operators in SPA states do not have to interpret and meet

multiple sets of regulations (state and federal), which may conflict with one another. Owners and operators in SPA states must continue to follow their state requirements until the state changes its requirements or until the state’s SPA status changes. As of January 30, 2018, 15 states and territories had updated their UST regulations to include the 2015 federal UST regulations.

Due to many state-by-state variables, however, a cloud of regulatory ambiguity hangs over the 2015 compliance initiative. For instance, some SPA states have not yet completed updating their regulations to meet the federal requirements. Several have proposed adoption of the regulations or are pursuing rulemaking to propose adoption of the amendments. And a SPA application may technically be approved by a regional administrator, but the process to publish the approval of the program’s Federal Register notice is still underway, and therefore updated documentation of updated regulations isn’t available on the EPA website. Some non-SPA states are incorporating the federal regulations into their rules or are making additional amendments outside of the scope of the federal regulations.

“”

Due to many state-by-state variables, however, a cloud of regulatory ambiguity hangs over the 2015 compliance initiative.

For instance, some SPA states have not yet completed updating their regulations to meet the federal requirements

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RETAIL OPERATIONS

Laying the Groundwork for UST Compliance

Here’s a status of UST regulations from a sampling of SPA and non-SPA states:

California This non-SPA state is working to incorporate the federal regulations—and its deadlines—into its regulations. A public comment period regarding these amendments closed on April 11, 2018. Information about the reconciliation of the federal regulations as well as access to the current California regulations is available from the State Water Resources Control Board’s Division of Water Quality—Underground Storage Tank Program.

Florida This non-SPA state updated its rules to incorporate the federal UST requirements. The current regulations, Chapter 62-761— Underground Storage Tank Systems, are effective January 11, 2017, and available from the Florida Department of Environmental Protection’s Division of Waste Management.

proper training and maintenance of UST equipment, then their adoption may be coming along at a fortuitous time: the upcoming round of federal UST deadlines have coincided with requests to trim the EPA budget, including the Leaking Underground Storage Tank (LUST) program.

UST Management: Beyond 2018 If the genuine intentions of the new federal regulations are to emphasize proper training and maintenance of UST equipment, then their adoption may be coming along at a fortuitous time: the upcoming round of federal UST deadlines have coincided with requests to trim the EPA budget, including the Leaking Underground Storage Tank (LUST) program. At least for this current fiscal period, Congress has maintained status quo with regard to both the EPA and LUST budgeting.

Illinois This non-SPA state is currently updating its underground storage tank rules to streamline and update its processes and requirements in conjunction with the October 13, 2018, federal requirements. A comment period for the revisions concluded April 9, 2018. Notices of the proposed rules are available from the Office of the Illinois State Fire Marshal.

New York

Despite legislators’ approval to keep EPA and LUST funding flat for fiscal year 2019, the priorities at the EPA suggest that budget cuts for LUST are likely as we face these spending-deadline bills with increased regularity. Budget cuts could mean that states with UST program authority would not receive LUST prevention funding. If this happens, everybody from legislators and regulatory authorities to technicians and UST owners/operators would need to act cooperatively to maintain a successful decline in compliance incidents moving forward. n

This non-SPA state is revising its Petroleum Bulk Storage regulations in two phases. The first phase, effective October 11, 2015, reflects previous changes in state laws and federal laws.

The second phase, which is under way, will begin to incorporate more of the EPA’s 40 CFR Part 280 revisions that were introduced in 2015. The current regulations, 6NYCRR Part 613— Petroleum Bulk Storage and additional bulk storage information is available from the Department of Environmental Conservation Petroleum Bulk Storage program.

Texas This SPA state has proposed implementing the federal storage tank rules. A comment period closed on January 9, 2018. The rulemaking would allow the TCEQ to reapply for state program approval from the EPA. Learn more about the status of proposed and pending rules from the Texas Commission on Environmental Quality.

Washington This SPA state has proposed implementing the federal storage tank rules. Public hearings were held February 28 and March 2, 2018. An overview of the changes to the current rule is available from the Department of Ecology’s Underground Storage Tank program.

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“”

If the genuine intentions of the new federal regulations are to emphasize

Joe O’Brien Joe is Vice President of Marketing at Source™ North America Corporation. He has more than 20 years’ experience in the petroleum equipment fuel industry.

Contact him at jobrien@sourcena.com.

READ MORE at FuelsMarketNews.com FuelsMarketNews.com

The United States remained the world’s top producer of petroleum and natural gas hydrocarbons in 2017, reaching a record high. The United States has been the world’s top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and the world’s top producer of petroleum hydrocarbons since 2013, when U.S. production exceeded Saudi Arabia’s. Since 2008, U.S. petroleum and natural gas production has increased by nearly 60%.

Linda Doman and Ari Kahan, U.S. Energy Information Administration

Bottom Line:

The paragraph says about all there is to say, aside for the amazement that still comes with such facts.

READ MORE FMNMagazine

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at FuelsMarketNews.com

FuelsMarketNews.com

COMMERCIAL FUELS

Now is a Good Time to Outsource Your Fuel Program!

Fuel

prices have been increasing rapidly over the last several months. Just one event or change can cause prices to spike or plummet. Volatility will continue in the fuel market as much as it does in the stock market, which can keep whoever is managing your fleet’s fuel program up at night.

by Glen Sokolis

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Unfortunately, fuel price volatility is not the only problem for companies with fleets. Driver retention and driver shortage issues continue to plague the industry and are anticipated to continue getting worse. Fleets may be dealing with aging vehicles that require more attention and maintenance compared to fleets that have had vehicles replaced within the standard time frame. On top of that, fleets are also dealing with the electronic logging device (ELD) mandate.

FuelsMarketNews.com

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With an outside team of experts handling fuel management, more time and energy (and some of the money saved) can be spent on increasing driver retention.

Fleet managers/logistic professionals might feel like they are on their own when it comes to solving the various problems they face on a daily basis. However, when it comes to fuel management, outsourcing is a solution that merits attention because of its potential to drive significant value to a company’s bottom line.

able to leverage their industry network to negotiate advantageous supply contracts while also helping to minimize the impact of price volatility. In addition to better and less volatile pricing, outsourced fuel management provides invoice price verification and reconciliation at the individual transaction level.

Outsourcing fuel management also helps fleet managers get their arms around the other problems they regularly face. With an outside team of experts handling fuel management, more time and energy (and some of the money saved) can be spent on increasing driver retention. The happier the drivers are, the greater the retention, which in turn improves overall operations.

Some of the savings made possible by fuel management outsourcing can also be used to reinvest in the fleet itself or used for infrastructure investment in other areas. When invested back in the fleet, it can also yield benefits such as reduced maintenance costs for the fleet’s vehicles. Newer and upgraded vehicles will also help improve driver retention and overall operations. This makes fuel management a win-win situation for fleet managers and their companies. n

READ MORE at FuelsMarketNews.com

When compared with other expenditures, fuel costs are second only to payroll for most transport companies.

Therefore, it is vital that these firms manage fuel costs proactively, as it is the only way to manage them effectively.

Because the savings potential is so large, but the time required can be significant, many fleets recognize the value of outsourcing.

Glen Sokolis Glen is the Founder and President of Sokolis Group, a nationwide fuel management and fuel consulting company. He has more than 25 years of experience with fleet fuel and founded Sokolis Group in 2003. Sokolis Group’s mission is to reduce and control their clients’ fuel spend through tightly managed, customized programs. Sokolis can be reached at GSokolis@SokolisGroup.com or 267-482-6160.

Simply put, the knowledge, experience and technology employed by outsourced fuel management experts can yield more savings than most fleet managers could ever achieve on their own. Outsourced fuel management experts are also

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SPONSORED CONTENT

TOP TIER Fuels: Improving Fuel Performance for Consumers ™

Since its start in 2004, the TOP TIERTM (registered trademark of General Motors, LLC) program has been widely adopted for use in the gasoline market in North America. TOP TIER promotes higher fuel performance standards for consumers than EPA (Environmental Protection Agency) regulations and currently represents a substantial percentage of gasoline sold—not only in North America (Canada, US and Mexico), but now also in Central America.

Additionally, the marketer must implement a quality assurance program to ensure the diesel (and/or biodiesel blended) fuel being dispensed meets the relevant country standards (e.g., ASTM D975 or ASTM D7467) and is “clean” and “dry.” This means that the marketer must take measures to ensure the amount of water in the diesel fuel passing through the nozzle into the consumer’s diesel fuel tank is not greater than the amount allowed by ASTM D975/D1744 (less than 500 ppm).

In early 2017, the TOP TIER Diesel Fuel performance standard was added to the program as an upgraded specification to meet the demands of modern diesel engines with four main criteria: improve injector cleanliness, improve oxidative stability (especially with biodiesel blends), reduce wear with enhanced lubricity in diesel engines, and improve diesel fuel quality at the nozzle. The specification was developed by a broad group of original equipment manufacturers (OEMs) but is currently only endorsed by General Motors and Detroit Diesel. The TOP TIER program is administered by The Center for Quality Assurance (CQA) based in Midland, Michigan.

rate level prior to being able to display the TOP TIER logo and to promote that they offer TOP TIER Detergent Gasoline.

Additional details are available from CQA (TopTier@CenterForQA.com).

The TOP TIER Diesel Fuel program is slightly more complex but maintains a common element: the detergent requirement. As with the gasoline detergent program, there are tests established that diesel detergent manufacturers must pass to have their diesel detergent TOP TIER certified. This is where the similarity to the TOP TIER Detergent Gasoline Marketer program ends.

A common approach to addressing the “clean and dry” requirement is the use of water sensing dispenser filters that reduce or restrict flow when too much water is detected in the diesel. These filters should also be of small enough micron media size to prevent an excessive number of particulates to transfer into the vehicle tank. High speed diesel dispensers may use 30-micron filters; low speed automotive diesel dispensers (fuel flow of less than 15 gallons per minute) must use 10micron filters. These filters must have a greater than 90% efficiency rating as demonstrated using ISO 16889 procedure.

The differences between the two programs are extensive; to contrast the two programs, we’ll briefly lay out the requirements of the TOP TIER Detergent Gasoline program. These requirements have been in place for nearly 15 years and most fuel marketers are already aware of the program.

As previously mentioned, TOP TIER Diesel Fuel must deliver increased lubricity and oxidative stability in the marketers’ fuel.

Compared to the TOP TIER Detergent Gasoline program, the additive package is more complex and without tuning may not meet the requirements in your specific fuels.

There is a license agreement process to become a TOP TIER Diesel Fuel participant, but unlike TOP TIER Detergent Gasoline, not all locations have to participate. In other words, marketers do not have to offer it across their entire brand and may be selective with where they offer TOP TIER Diesel Fuel. n

The TOP TIER Detergent Gasoline program is strictly a detergent program. Gasoline detergent manufacturers must submit their detergents to a third party independent laboratory that meets the program’s criteria.

These laboratories have a specific set of tests in which the detergent is tested and must pass to become a certified TOP TIER Gasoline Detergent. These tests also determine the level of treatment required for the detergent. TOP TIER Detergent Gasoline marketers must use one of the certified detergent products at the specified rate or higher. CQA allows marketers to use up to three times the specified rate without requiring additional testing to demonstrate effectiveness and no harm.

Once a gasoline marketer determines that they want to become a TOP TIER Detergent Gasoline Marketer, there are license agreements to sign, fees to pay, and they must proceed to treat all their gasoline at the TOP TIER treat rate for their specified gasoline at all locations for their brand. This means, all grades of gasoline, at every pump, at all locations that carry the brand must be at the TOP TIER treat

TOP TIER Fuel Program Requirement

Gasoline 4

Must use a TOP TIER certified detergent

4

All locations for a brand must participate

Diesel 4

Must meet a more stringent lubricity specification

4

Must control water content

4

Must meet a more stringent oxidative stability specification

4

Must control particulate levels

4

Dr. Bernard C. Roell, Jr.

Dr. Roell is the Technical Director at MidContinental Chemical Company, Inc. (MCC) and has over 20 years of extensive experience in the specialty chemical industry. Dr. Roell can be reached at bernardr@MCChemical.com.

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Everett Osgood

Everett Osgood is the Market Manager for Fuel Additives at MidContinental Chemical Company, Inc. (MCC). He has 30+ years of experience in the petroleum industry, with a wide background of responsibilities in sales and marketing positions, as well as operations and project management. Everett can be reached at everetto@mcchemical.com.

by Mark Murrell

Fleets Create Appealing Work Environment Through New HR Strategies

COMMERCIAL FUELS

Fleets are quickly finding that

support for drivers on the road. Many use a comprehensive coaching and multi-pronged outreach approach.

with an ever-growing shortage of new drivers, if they’re going to attract and keep the industry’s best, they have to create a more appealing work environment.

At these fleets, executives and upper management call drivers to chat and to get feedback from them. In several instances, executives attend town hall meetings and round-table discussions at the companies’ main terminals or home offices.

This gives drivers the opportunity to discuss issues impacting their daily work such as loading delays at a shipper’s terminal or to ask questions about company initiatives and objectives.

Last year, the trucking industry came up 51,000 drivers short of its recruitment needs, the highest shortage on record, according to the American Trucking Association.

The driver shortage has only grown more acute recently due in large part to increased freight volumes and a growing number of older, more seasoned drivers retiring.

“

For those drivers unable to get back to the terminal or home office, the companies record the meetings and round tables and post the videos on YouTube. Or, they arrange to stream them using Facebook Live or other streaming service.

So, it’s pretty clear why fleets are re-examining their human resources (HR) strategies and adopting changes to create that more appealing work environment. When we analyzed responses to questionnaires, interviews and driver surveys for the 2018 Best Fleets to Drive For program, we found the highest rated fleets apply a variety of human resource strategies to create a working environment that drivers covet most.

Best Fleets to Drive For, produced by CarriersEdge in partnership with Truckload Carriers Association, is the only annual program dedicated to identifying the best workplaces in the North American trucking industry.

Every year, we evaluate fleets across a range of performance criteria, identifying those companies with the greatest success in motivating and retaining drivers.

We’ve found that when fleets develop formal coaching programs and multi-pronged outreach programs consisting of surveys, phone calls and direct meetings, they receive much higher marks for their post-orientation support efforts.

All 20 of the Best Fleets differentiated their HR strategy from the award finalists by conducting more frequent postorientation reviews, surveys and coaching. Five of the Top 20 Best Fleets stepped up their game even further by Last year, the trucking conducting formalized industry came up 51,000 onboarding programs with multiple department reviews drivers short of its recruitment and extended coaching for needs, the highest shortage on new hires.

”

record, according to the American Trucking Association.

The driver shortage has only grown more acute recently due in large part to increased freight volumes and a growing number of older, more seasoned drivers retiring.

Through our analysis of survey responses, interviews and questionnaires, we found that when fleets use an onboarding approach to welcome new drivers in addition to post-orientation support, they’re more likely to be seen as places drivers want to work. Onboarding is vastly different from the standard HR practice of relaying important information, policies and procedures every new employee must know.

Onboarding may include not only the one- or two-day orientation many other employees might recognize, but also significant post-orientation activities such as formal coaching, surveys, and scheduled phone calls and direct meetings with the company’s senior managers and executives.

READ MORE at FuelsMarketNews.com

Mark Murrell

About 70 percent of the finalists for the 2018 Best Fleets to Drive For award conduct some kind of post-orientation FMNMagazine

Ultimately, the goal here for a company that wants to become one of the industry’s highest rated workplaces is not only to fully integrate new drivers into its operation, but also to help them feel more of a connection to the company. As a result of these efforts, drivers will know what is expected of them and why, and they’ll feel more fully engaged in the company’s culture.

They’ll also be more likely to seek help when they feel like they’re in over their head instead of looking for a job elsewhere and quitting. n

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Mark is co-founder 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. He can be reached at www.CarriersEdge.com.

FuelsMarketNews.com

COMMERCIAL FUELS

by Michael Taylor

The Business

Case for Propane Autogas

How Propane Autogas Can Lower a Fleet’s Total Cost-of-Ownership More public and private vehicle fleets are considering a move to alternative fuels, like propane autogas, than ever before. Clean fuels help companies meet emissions benchmarks and position themselves to customers within their communities as mindful of the local environment.

But occasionally, decision-makers incorrectly think the move to alternative fuel comes by sacrificing the costs and convenience of other fuels.

Fortunately, there’s one alternative fuel—propane autogas—that is providing reduced emissions along with the cost savings and convenience fleet owners require of their fleet fuel today.

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COMMERCIAL FUELS

The Business Case for Propane Autogas

Propane autogas is recognized as the proven solution for fleets seeking reduced emissions, with new medium-duty propane autogas engine technology dramatically reducing harmful emissions like nitrogen oxide (NOx) and greenhouse gases.

But the fuel is also providing serious cost savings over the lifetime of the vehicle. Several factors contribute to propane autogas’s low total cost-of-ownership, including reduced fuel and maintenance costs and accessible infrastructure.

Fuel

Propane autogas makes it easier for fleets to manage annual fuel budgets and cost objectives. The cost of wholesale propane falls between the price of oil and natural gas—the fuel’s two sources—making propane autogas consistently less expensive than traditional fuels. On average, it costs as much as 50 percent less than gasoline and diesel.

Unlike electric vehicles, propane autogas fleets are protected from the wide variation in kilowatt-hour costs caused by demand pricing and on-peak rates applied in parts of the United States. This can sharply raise utility bills if electric vehicles are not charged during off-peak hours.

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Maintenance and Garaging

Another major advantage in using propane autogas is what the fuel doesn’t need: added fluids and filters, which is a necessary and costly expense for other fuels, such as diesel. The engine systems for propane autogas are less complex and burn clean, eliminating the need for additional parts and fluids that can contribute to unexpected repairs and downtime.

It’s highly likely that fleets adding propane autogas vehicles won’t need to make costly modifications or upgrades to maintenance or garaging facilities, as can be the case with other alternative fuels like compressed natural gas (CNG). In fact, if buildings are code-compliant for diesel and gasoline, there are often no infrastructure changes required.

Segregation of major and minor repairs is not required, either. Facility managers should always check with their local Authority Having Jurisdiction.

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COMMERCIAL FUELS

The Business Case for Propane Autogas

Flexible Refueling Options

Affordable and scalable refueling infrastructure is another reason propane autogas vehicles boast the lowest total cost-of-ownership of any fuel. Fleet managers can choose from several propane autogas refueling options that allow fleets to create a tailored program to specifically fit their needs:

u A standard or advanced private station can be perfect for fleets

both small and large that require a centralized refueling station, with site preparation requiring only crash protection and electrical for dispensers, and the option to lease or own fuel tanks and dispensers. These options can easily expand with the growth of a fleet.

u Public or private refueling stations can provide another solution for propane autogas fleets or fleets with limited space. With a 24/7 cardlock system, fleets can maintain records for each vehicle. A list of stations nationwide can be found at www.afdc.energy.gov and searching for “Propane Fueling Station Locations.”

u A fuel storage tank and dispenser mounted on a trailer may even provide a temporary refueling solution for fleets in the process of installing permanent infrastructure, or on a long-term job site.

u For fleets with limited space for on-site infrastructure in the long term, mobile refueling is a good solution. In this scenario, the fleet’s propane provider arrives on-site in a bobtail and refuels the fleet vehicles one by one.

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With all the combined savings, some fleets have observed a complete return on their investment in as little as two to three years or less. Sales of propane autogas are predicted to grow as more fleets realize the cost savings that come with the fuel, and as technology continues to expand the use of the fuel to even more vehicle applications. To learn more about the benefits of using propane autogas vehicles, visit propane.com/on-road-fleets. n

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Michael Taylor Michael Taylor is the director of autogas business development for the Propane Education & Research Council. He can be reached at michael.taylor@propane.com.

COMMERCIAL FUELS

West Texas Traffic Jam

by Brian Reynolds

Pondering Progress in the Oil Field

Recently, I took a business trip to Odessa, Texas. In Texas, the interstate speed limit in most places is 75 miles an hour. I had my cruise control on 75 (or somewhere around 75) when suddenly, I had to slam on the brakes. Of course, this isn’t unusual for interstate travel, but out in the middle of the desert, I witnessed the biggest traffic jam I have ever seen. Not a traffic jam created by some witless driver texting and causing a wreck with slowdowns for a couple of miles, but one created by what seemed like the largest collection of 18-wheeler oil field trucks in the history of the world that extended for over 50 miles—and apparently this traffic jam is continuous 24/7.

The traffic in West Texas looks like the traffic in Tokyo only with oil field trucks and out in the middle of nowhere!

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West Texas is experiencing zero unemployment rates where a run-ofthe-mill decent hotel literally costs $500.00 a night, if you can find one! As a matter of fact, on my recent trip the closest hotel for me with an available room was over 100 miles away. Some chain restaurants have had to close due to the fact that they can’t keep a big enough staff on board due to the lure of higher wages in the oil patch!

Today, West Texas is a place where an oilfield truck driver can earn over $100,000.00 dollars a year. If you’re an experienced truck driver and need to take a vacation—no problem. Just quit your current job and start back doing the same thing for somebody else in a couple of weeks! I saw at least four full-size highway billboards recruiting—begging—for drivers.

Drilling for oil 30 years ago, the ratio of a dry hole to setting pipe for a producing well was 8 to 1, i.e., 8 dusters to every 1 good one! Today, the success rate is almost 100% for a productive well and a return on investment. The reason why is due to horizontal drilling and fracking!

Horizontal drilling and fracking has changed the entire process for drilling and operating wells. Many years ago and fresh out of college, I was working as an oil field geologist. I would spend weeks (stranded)

COMMERCIAL FUELS

West Texas Traffic Jam

on drilling rigs. I was lucky to sleep a couple of hours a day in my truck and meals were whatever I had enough sense to bring with me. Pat Green sings about eating the two-day old burrito he found under his car seat— been there done that!

Today, healthy and hearty meals are catered by chefs on location. (Can you believe that? They’re not called cooks, but chefs!) Advanced technology means working from home or the office while a well is being drilled. If for some reason the need arises to stay on location, nice (i.e., clean sheets) mobile sleeping accommodations are available at many drilling locations. The “Blue Condo” is also a thing of the past; there’re even real men’s and women’s restroom facilities on a modern drilling location. Innovation in the oil field seems to have no boundaries.

Frac Fueling Control Module can refuel up to 20 hot fueling positions simultaneously pressure to frac a well requires multiple pump trucks producing pressure simultaneously forcing sand, water and other chemicals into tight oil-bearing formations. The ground literally quakes beneath your feet during a fracking operation and can do so for what typically is two to three days straight of pumping up to six million pounds of sand into the well bore!

The concept of “hot fueling” has been around for years, primarily by the military. To the uninitiated, hot fueling is essentially filling up a machine of any type with the engine running.

Specialized safe techniques have been perfected primarily for aviation purposes, particularly for helicopters.

Petroleum fracking has also been around for a long time, but only in the past few years has the procedure become prevalent and routine.

Moving drilling rigs from one location to another used to require a complete dismantling of the entire system, transporting pipe, derricks, water tanks, etc. Today, rigs can actually pick themselves up and walk/scoot over a few yards and then start drilling a completely new well going a different direction, and do so with little downtime.

The petroleum engineering requirements of hydraulically fracking a well are so precise that to stop the pumping process during a frac job is not a good idea. What all is needed to do a frac job is a whole bunch of trucks! Up to 20 different types of pump trucks, blenders and sand units need to keep going at full blast and at the same time to generate pressures over 10,000 PSI.

Of course, the fuel business has always been an integral part of the oil field. Drilling rigs and trucks run on diesel, but the fracking business has taken diesel fueling to an entirely new dimension. To generate the necessary

So, it’s important to keep all the different units topped off with diesel throughout the entire procedure and to not disrupt the job. Plus, with that kind of pressure being generated, it’s a good idea to stand back. Way back!

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Fuel suppliers quickly started seeing the danger in hot fueling for frac operations and soon invented mobile command posts that can safely and simultaneously keep diesel flowing to the frac trailers. Innovative computerized fueling posts monitor for fuel flow and quantity delivered to each machine being serviced and does so from a hardened steel, temperaturecontrolled mobile safety bunker.

Frac fueling is here to stay and is now another way for fuel marketers to make money in the fueling industry.

While it is obviously a niche business, frac fueling operators are beginning to emerge as true oil field services companies that for their specific geographic locations are on footing as relevant as any other service company in the oil business. n

Brian Reynolds Brian began his career working as a teenager in his family-owned jobbership in Cisco, Texas, and was at the forefront of many significant industry milestones.

Reynolds was an early adopter of cardlock systems in the 1980s, a pioneer of high-volume supermarket fueling centers in the 1990s and one of the key architects of inventing reward-based fueling loyalty in the 2000s. His entire professional career has been an experienced-based building block succession of leading-edge game changer concepts. He currently works for Dover Fueling Solutions in ClearView, wet stock management sales. Contact Brian at Brian.Reynolds@DoverFS.com or cell 325-733-6490.

“This latest survey, which includes data from more than 100,000 drivers, shows that fleets are reacting to an increasingly tight market for drivers by boosting pay, improving benefit packages and offering other enticements to recruit and retain safe and experienced drivers.�

ATA Chief Economist Bob Costello

Bottom Line:

This American Trucking Associations survey was just one of a number of recent announcements that included major carriers showcasing their pro driver pay and benefit packages.

Supply and demand is fundamental to basic economics, and if you want quality drivers for your operation, the solution might be painful but certainly not surprising.

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5 BUSINESS OPERATIONS

Five Steps to Proactively Steer Gray Fleet Risks

by Blake England and Lori Severson

Aaron is a manager at a local retail store. One of his responsibilities is dropping off deposits at the bank.

Since the bank is on his way home, he frequently completes the task at the end of his shift while driving his own vehicle. This arrangement worked well for Aaron and his employer until Aaron became distracted behind the wheel and hit a pedestrian.

Many employees drive personal vehicles for work.

This is known as a company’s “gray fleet.” Gray fleets do not completely transfer the duty of care onto the employee as some may think. While the employee initially covers insurance, maintenance and fuel costs, employers still have a duty of care to these drivers. Employers who allow employees to drive their own vehicles for work-related matters are legally responsible for the safety of those employees while on the job and the vehicles operated on their behalf.

Gray Fleets Employers who allow employees to drive their own vehicles for work-related matters are legally responsible for the safety of those employees while on the job and the vehicles operated on their behalf.

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BUSINESS OPERATIONS

Transportation-related accidents are the number one cause of workplace fatalities in all age groups. 2

In 2015, 26 percent of occupational deaths occurred on roadways. 2 The injury data proves driving is a “recognized hazard” and therefore a risk employers must control as best they can through policies, education and oversight.

The 1974 Federal OSHA General Duty Clause states that each employer “shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” 1 Failing to take reasonable steps to determine if your drivers are “qualified,” or allowing someone with a poor driving record to drive on your behalf, can be grounds for negligent entrustment if that employee causes an accident.

If, like Aaron, your employee crashes a vehicle during a work-related trip and strikes a pedestrian, it is likely that legal action will be taken against you as the employer. The accident will follow the primary insurance coverage carried by the employee’s personal insurance. However, the employers’ auto, workers’ compensation and liability policies may all be impacted by a work-related auto accident even when the employee is driving his or her personal vehicle. The employee’s driving history will come under scrutiny, including driver’s license and what, if any, safety education for prevention of auto accidents the employee received. Even the vehicle’s appearance makes a statement about your company’s commitment to safety and community service.

The costs associated with any property damage and bodily injuries will be covered by the employee’s auto policy but only to the limits they hold. Many employees choose the minimum limits, such as those required by the state, placing employers at financial risk. For the employee’s auto policy to insure the employer or business, the employee needs to add the employer as an “additional insured” by endorsement to his or her policy. How many employees want to do this? Not many.

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“”

Failing to take reasonable steps to determine if your drivers are “qualified,” or allowing someone with a poor driving record to drive on your behalf, can be grounds for negligent entrustment if that employee causes an accident.

What steps can you take to mitigate your gray fleet risk?

1

2

Add a nonowned auto liability endorsement to your auto policy. This endorsement provides coverage when employees who drive their own vehicles on business get into accidents. It provides coverage above the limits of the employee’s auto policy.

Know who is driving for you, how frequently and how far. In partnership with your safety and Human Resource professionals, create a complete account of who is in your gray fleet: • Personal vehicle(s) used for work through reimbursement.

• Rented vehicles for work in the company’s name or personally.

• Leased vehicles for work through cash allowance programs.

Details to account: 1

List who is driving most frequently for the organization.

2

Define how far these drivers are driving in estimated round-trip distances.

3

For those meeting a frequency and distance range, stipulate the age(s) of the drivers.

4

List the issuing state(s) of their drivers’ licenses.

5

List the vehicles they operate for work (make, year and model).

6

Obtain a copy of a currently instated auto insurance policy, including coverages and limits carried.

7

Look at the vehicles. Note any concerns.

Upon review of these items, an organization’s leadership team must make a business decision regarding the level of driving in a personal vehicle(s) and if these vehicles meet the need of the organ-ization and are practical in size and condition for the scope of the work conducted.

BUSINESS OPERATIONS

The severity and frequency of distracted driving accidents is strongly related to the use of technology in vehicles.

3

Develop a written gray fleet policy. Compare your gray fleet safety policy to ANSI/Z15.1-2017 Safe Practices for Motor Vehicle Operations. This standard provides minimum requirements for workplace roadway safety. It is the cornerstone of an effective fleet loss control program where drivers who are hired to drive for work will meet learning and driving safety expectations even if in personal vehicles. Include in your policy that the company is not responsible for any parking tickets, moving violations, vehicle damage, or equipment or property damage the employee incurs. We also recommend including these elements:

Finding out after a roadway accident and during a lawsuit is not when you want to discover one of your gray fleet drivers had infractions or a revoked or invalid driver’s license.

4

• Technology used in vehicles. The severity and frequency of distracted driving accidents is strongly related to the use of technology in vehicles. It is imperative to address technology in your gray fleet policy. We recommend employers forbid the use of any cell phones or mobile devices (dialing, texting, reading) while driving on company business. Recommend a process of pulling over and parking before using a mobile device. Sample policies are available through your Lockton loss control consultants and auto carrier resources.

• Driver criteria. Employers should set a minimum age of accepting drivers and state what number of infractions is acceptable. We recommend drivers be at least 21 years old, and we recommend creating a point system for infractions. With time to gain more driving experience and mature decisionmaking skills, drivers 21 years and older are statistically a bit safer. Through hiring screening a and having criteria of acceptance and denial, an employer can avoid a risk before it happens.

• Personal auto policy (PAP) minimum limits.

Organizations can encourage their employees who will drive a personal vehicle for company business t to maintain certain limits of insurance that will be depleted as primary insurance before the organization’s auto policy is accessed. This effectively creates a buffer layer of insurance for the organization.

• Motor Vehicle Record (MVR) reviews. Set the expectation in your fleet policy that MVR reviews will be completed upon hire and at least annually after that.practicewhen dealing with roadway safety of the employeesand the public. An employment screening service canprovide these reviews as well as third-party vendorswho may have discounts available through Lockton or the auto carrier.

• Driver qualification checks. During the hiring process, it is imperative to clearly communicate job descriptions and offer details of how background checks will include an employee’s driving history via his or her motor vehicle record (MVR). Finding out after a roadway accident and during a lawsuit is not when you want to discover one of your gray fleet drivers had infractions or a revoked or invalid driver’s license.

• Include rental vehicles for work in the gray fleet program. Rental vehicles have additional risks associated with them for employers. Employers rely on rental agencies to be the fleet safety managers. We can only hope regular maintenance is performed and that our employees are driving safely. Sometimes a leased vehicle can be seen as permission to drive harder, faster and with less care. The gray fleet policy should set the expectation for personal and rented vehicles used for work.

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Reduce your exposure by establishing controls.

These can include:

• Enhanced motor vehicle record reviews. During your program development, speak to vendors of enhanced MVR processes that inform you as infractions occur, instead of waiting for 12 months to learn about issues. This will allow you to manage an employee’s driving performance without delay.

There are administrative costs of using an enhanced MVR service, but it may be worth the upfront investment.

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BUSINESS OPERATIONS

5

5 Steps to Proactively Steer Gray Fleet Risks

Provide education to keep your employees safe.

• Employee driver safety training. It is not the expectation that all gray fleet drivers go through a roadway test or sit in hours of classroom instruction. You should provide basic safety tips regarding defensive driving, distracted driving, proper use of technology in a vehicle, and how to report an accident. During orientation, an employee who is expected to drive for the company should be given a copy of the fleet policy and handouts as well as links to any online training. Refresher training should be provided annually or semiannually thereafter. If an accident does occur, ensure employees know they may receive remedial training specific to their incident.

All training should be documented.

• Report promptly and investigate all accidents.

Communicate regularly to all employees the importance of reporting roadway accidents promptly to their direct supervisor. Conduct accident investigations for causes of all accidents.

Based on the contributing factors that caused the incidents, share lessons learned generically across the organization and provide training to all to prevent future accidents.

Each organization is unique and the size of the gray fleet will vary. Roadway occupational injuries can be a financially and emotionally significant event for any organization. Gray fleets are a risk not to leave to chance. Compare this list of recommended practices to your current operations and select what would be the correct mix of safety practices to mitigate your exposures. Time invested in such a review can save employees’ lives and the company’s financial well-being. n

What steps can you take to mitigate your gray fleet risk?

1. Add a nonowned auto liability endorsement to your auto policy.

• Vehicle maintenance and inspection.

Recommend vehicle maintenance for the seasons they will encounter. Encourage employees to carry their proof of insurance and maintenance from their auto carrier and mechanic(s).

2. Know who is driving for you, how frequently and how far.

• Employee signatures. Employees who will be expected to drive for company business should sign an acknowledgment of all these risk management steps.

3. Develop a written gray fleet policy.

4. Reduce your exposure by establishing controls.

5. Provide education to keep your employees safe.

References 1 https://www.osha.gov/pls/oshaweb/owadisp.show _document?p_table=OSHACT&p_id=3359

https://www.bls.gov/news.release/cfoi.t02.htm

2

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Blake England, ARM-E, ASP, AIC is a Loss Control Consultant at Lockton. Lori Severson, MS, CSP is a Vice President, Senior Loss Control Consultant at Lockton. 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, Lockton Insurance Brokers at Cell: 916-730-4849 or Office: 415-568-4115, email: gcushard@lockton.com FMNMagazine

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Since the December shift to mandatory use of electronic logging devices to track drivers’ hours of service, there have been some issues for the industry—not about ELD use, but about the flexibility of the underlying hours-of-service rules.

“Many complaints associated with ELDs are really issues with the hours-of-service rules themselves—issues that were papered over by inaccurate or falsified logbooks,” said Collin Stewart, president and CEO of Stewart Transport Inc. “ELDs have made it more difficult for drivers to ‘fudge’ their logs, but have also shown where the weaknesses in the HOS rules are. The solution proposed by Congressmen Crawford, Westerman and Bishop is a reasonable one and we urge Congress to quickly move on it.”

Source: American Trucking Associations press release, June 21, 2018

Bottom Line:

This is exactly as expected. Now legislative solutions are being bandied about to create carve outs for specific impacted parties.

While the exemptions noted in the ATA approved legislation make sense, how many other sectors of the trucking community are similarly impacted but lack the resources to work Washington politics for their benefit?

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DEF ROUNDUP Certified DEF

Blackmer Blackmer® STX-DEF Series Sliding Vane Pumps feature 316 stainless steel construction with external ball bearings, chemical-duty mechanical seals, PTFE elastomers and non-metallic vanes, making them the ideal choice to handle DEF. STX-DEF pumps meet or exceed all industry specifications for DEF AUS 32.

The Blackmer pumps’ non-metallic vanes self-adjust for wear to maintain flow rate while minimizing shear and agitation.

Adjustable relief valves protect the pumps from excessive pressures. The pumps have excellent self-priming and dry-run capabilities, and maintenance is reduced because internal wear is almost completely limited to the easily replaced sliding vanes, which can be accomplished without needing to take the pump out of line.

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

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

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DEF ROUNDUP

Diesel Direct

Fluidall

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

Diesel Direct is one of the transportation industry’s largest dedicated national mobile fueling companies, servicing tens of thousands of trucks each day from a fleet of customized fueling trucks.

Specializing in mobile fueling and bulk deliveries, Diesel Direct provides fuel services and solutions for local, regional and national truck and equipment fleets.

By focusing on using technology and innovation, Diesel Direct has developed a state-of-the-art proprietary on-site fuel management process and system that gives customers accurate and meaningful data to both assist in the management of their fuel consumption and to meet the needs of continuously evolving business requirements.

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

www.BurkeOil.com

www.DieselDirect.com

www.Fluidall.com

Dennis K. Burke, Inc.

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DEF ROUNDUP

Franklin Fueling Systems

Gorman-Rupp Pumps

Integer Research Ltd

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

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

Headquartered in London, UK, and with offices around the world, Integer offers a variety of information services to meet any client need. A major focus for the organization is DEF. The Integer DEF Forum will return on 26 – 28 September 2018, this time taking place in Scottsdale, Arizona.

www.FranklinFueling.com

www.GRPumps.com

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

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

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The Forum is the leading meeting place for North America’s DEF industry. Every year the most influential stakeholders in the DEF supply chain attend to gain vital insights into current and future market trends, strengthen relationships and forge new partnerships to accelerate business growth.

DEF Forum 2018 will provide: 20+ hours of networking events dedicated to the growing North American DEF market; presentations on the latest outlook for the DEF and urea markets and future of quality standards; multiple group networking activities, including cocktail events with entertainment, breakfast mixers and golf outing opportunities at the beautiful Westin Kierland Resort; and over 150 senior executives from across the DEF supply chain in one place. www.Integer-Research.com

KleerBlue KleerBlue’s patented Fueling IslandFriendly Mini-Bulk Systems are ideal for small to medium DEF retailers and fleets needing lane fueling. These innovative systems are engineered for long-term investment protection. Triple wall construction with secondary containment significantly reduces the risk of leaks.

Insulation and redundant heating lead the industry in protecting against freezing and DEF degradation. KleerBlue patented the revolutionary design and they are pleased to announce that their 400 and 1000 Gallon Mini-Bulk tanks were recently issued patent number US 9,669,991 B1.

With their state-of-the-art Mini-Bulk systems, KleerBlue enables North American retailers and fleet managers to tackle the challenge of storing and dispensing DEF. www.KleerBlueSolutions.com

DEF ROUNDUP

Liquid Controls, LLC

Micro Matic

MISCO Refractometer

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

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

Protect your SCR-equipped vehicles from accidental DEF dilution or tampering with the MISCO DEF Tester.

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

www.LCMeter.com

www.MicroMatic.com

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www.MISCO.com

DEF ROUNDUP

OmegaFlex

OPW Retail Fueling

DEF-Trac® addresses the emerging needs of the DEF supply industry.

Unaffected by the corrosive effects of DEF, DEF-Trac is manufactured from corrugated 316L stainless steel, and is supplied in long coils to streamline the installation of distribution piping from the storage tank to the dispensing pumps.

Other features are as follows: manufactured with 316L highly flexible stainless steel tubing; stainless steel fittings that are field attachable with a self-flaring metal-to-metal sealing surface; available with or without insulation or heat trace; no special tools required for assembly; fluid components meet ISO 22241-3 standard; one Thermon low-temp self-regulating heater BSX cable; and much more.

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

www.DoubleTrac.net

www.OPWGlobal.com/OPW-Retail-Fueling

READ MORE at FuelsMarketNews.com Quality DEF Solutions

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

Quality DEF Solutions is a manufacturer of DEF and is centrally located in Texas.

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

Roth North America Roth double-walled oil tanks offer the highest level of safety and environmental protection. Storage liquids include diesel, DEF, ATF, heating oil and biofuels. The outer tank is made from leak-proof weldfree galvanized steel and roll seamed with an oil and fire resistant seal. It can FMNMagazine

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contain at least 110% of the capacity of the inner tank for maximum protection.

The inner tank is made of blow-molded, high-density, seamless polyethylene that is leak-proof and will never corrode.

Additionally, Roth’s compact tanks are available in several different sizes, providing more flexibility for placement in any garage, service station or lube shop. www.Roth-USA.com

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

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

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

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

DEF ROUNDUP

Shaw Development LLC

Snyder Industries

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

Snyder Industries manufactures a wide variety of storage tank solutions for the DEF and lubricant industries. Products include HDPE rotationally molded DEF storage tanks in both single wall and double wall containment designs, which range in size from 30 – 20,000 gallons, along with stackable lube and DEF storage and dispensing tanks. Snyder offers a selection of commercial tanks as well as industrial-grade tanks designed and built to ASTM D1998 standards.

Snyder operates eight manufacturing plants across the U.S. to serve their customers’ needs. Snyder has been manufacturing tanks for 60 years and they are focused on exceeding their customers’ quality, value and service expectations.

www.ShawDev.com

www.SnyderPetroTanks.com

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

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

TECALEMIT, Inc. TECALEMIT, Inc. is a Horn Group company with deep roots in the European markets, bringing decades of experience and performance to North America.

TECALEMIT is not just a DEF pump company. They are your one-stop shop for high quality, heavy-duty measuring and dispensing equipment for lubes, fuels and chemicals, as well as DEF. TECALEMIT FMNMagazine

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offers off-the-shelf items such as transfer pumps, dispensers, nozzles and meters, but also designs and builds customized hi-flow transfer skids, dollies and DEF mini-bulk solutions. No customer is too small and no job is too large for TECALEMIT to handle. Let them show you why their customers #TrustTheT. www.TecalemitUSA.com

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

Together, this maintains ISO compliance for life and helps ensure the integrity of the emissions systems found in today’s trucks, buses and heavy equipment. www.ThunderCreek.com

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

DEF ROUNDUP

Did You Know

?

Yara North America, Inc. Yara’s knowledge, products and solutions grow farmers’, distributors’ and industrial customers’ businesses profitably and responsibly while protecting the earth’s resources, food and environment. Yara’s industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. Since 2004, Yara has been at the forefront of the development of DEF and its compatibility with SCR technology in heavy-duty trucks, buses, passenger cars and non-road mobile machinery.

As the world’s largest producer of DEF, Yara can ensure product quality, guaranteed sourcing and reliable distribution through their large number of production plants and terminals. www.Yara.us

Obligated parties have a Renewable Volume Obligation (RVO) based upon their production or importation volumes of conventional fuels. The process is driven by credits or RINs (Renewable Identification Numbers) generated when biofuel is produced and separated from the physical biofuel when it is blended with conventional fuel. RINS can then be used to establish RVO compliance or sold to companies that cannot otherwise meet RVO compliance. Ultimately, the final customer ends up paying most of the costs, but significant advantages exist for the initial blending party.

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Autonomous vehicles are one of the main sources of uncertainty in the future of U.S. transportation energy consumption as autonomous vehicle technology has the potential to change travel behavior, vehicle design, energy efficiency and vehicle ownership. Analysis in EIA’s Annual Energy Outlook 2018 (AEO2018) shows that the widespread adoption of autonomous vehicles could increase overall light-duty vehicle travel and, depending on how those vehicles are powered, lead to slightly higher transportation energy consumption.

Nicholas Chase, U.S. Energy Information Administration

Bottom Line:

Autonomous vehicles, particularly with trucking, promise a number of benefits once the technical and cultural issues are resolved. The current commercial driver shortage is one critical area. However, there are limits. This futuristic unmanned fuel tanker lacks a driver. But who is going to load the tank at the fuel terminal and make the drop at the retailer’s site?

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and Petro Stopping Center brands are primed for franchise growth, a new brand, TA Express, will be launched later this summer. TA Express was developed as a smaller, more nimble concept to serve travelers, professional drivers and local motorists with top-quality diesel fuel, branded gas options, food offerings and convenience items. TA Express will also give prospective franchisees another model from which to choose. TA Express sites will increase the number of fueling options for professional drivers and will accept the same fuel programs and payment methods as traditional TA and Petro locations. In addition, professional drivers in TravelCenters’ UltraONE Program will be able to earn and redeem points at TA Express locations. Franchise expansion efforts are ongoing and TA Express locations will be announced soon. n

station that is expected to greatly reduce greenhouse gas (GHG) emissions, fueling costs, noise pollution, and maintenance expenses. The $4 million project, funded by both municipalities, along with the Kansas Department of Transportation (KDOT), will jointly power 50 refuse vehicles in Olathe and 120 transit buses in Johnson County. The initiative is expected to reduce toxic emissions in the region by an estimated 20 to 29 percent, lower consumption of diesel fuel by 7,300 gallons annually, per truck, and provide an estimated 80 percent decrease in noise level. The City of Olathe and Johnson County join other successful Clean Energy projects and stations in the region, including the City of Kansas City, Missouri, the Kansas City Transportation Authority, Lee’s Summit School District, Blue Springs School District, and the North Kansas City School District. n

TravelCenters of America Renews Franchise Efforts, Company Launches New TA Express Concept

Clean Energy Opens CNG Station for Buses and Refuse Trucks Transitioning to Cleaner Fuel Alternative in Olathe and Johnson County, Kansas

Stuzo Launches Open Commerce Platform for Digital Services and Experiences in Fuel and Convenience Retail

TravelCenters of America LLC, operator of the TA® and Petro Stopping Centers® travel center brands, is renewing its efforts to grow and expand the TA franchise network. While traditional TA

Clean Energy Fuel Corp. joined city officials and county executives in the City of Olathe and Johnson County, Kansas, to mark the opening of a compressed natural gas (CNG) fueling

WEX Evolves Fuel Payments from Plastic to Phone WEX Inc., a leading provider of innovative corporate payment solutions, today announced the launch of DriverDash, a simple, easy-to-use alternative to plastic for added security.

DriverDash lets fleet drivers authorize a fuel transaction from inside their vehicles to create a seamless and secure transaction via mobile device.

DriverDash borrows heavily from the long WEX tradition of using proprietary technology in close consultation with customers to develop products that make the daily operations of their job easier.

The DriverDash program is currently available at more than 11,000 Exxon and Mobil-branded service stations across the continental U.S. and WEX is actively expanding the network among its accepting merchants. n

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Stuzo has announced the public launch of Open Commerce SM Application Server and Command Center, the first and only agnostic platform to empower rapid delivery and real-time management of Digital Services and Experiences for Fuel and Convenience

INDUSTRY NEWS Retailers. Open Commerce Application Server is a PCI DSS Level 1 Certified Compliant middleware that securely unifies and exposes best-in-class Digital Services from multiple vendors into one central point-of-interface via a public API to empower merchants and their vendors to rapidly and efficiently deliver connected commerce applications across digital channels. Open Commerce Command Center is a web-based portal that centralizes and operationalizes the key functions and data of Digital Services from multiple vendors into one interface with dashboards and workflows that empower merchants to in real-time monitor, manage, and optimize missioncritical programs powered by multiple third-party services. By unifying provider capabilities via one central middleware powering front end experiences across digital channels, and providing one central command center for the operationalization and optimization of mission-critical programs, Stuzo has solved the IT and marketing challenges of today while creating opportunity for rapid growth in digital, tomorrow. n

Al’s Corner Oil Company Selects ADD Systems Software and Keeps Pinnacle Palm POS Advanced Digital Data, Inc., a leading supplier of software solutions to the convenience store and energy distribution industries, is proud to partner with Al’s Corner Oil Company as their back office software provider. Al’s Corner needed a system that would increase efficiency and connect all aspects of their business. Their business has grown over the years to include Sparky’s One Stop convenience stores and a commercial and residential fuel delivery business. After more than five months of extensive research on software providers, Al’s Corner has decided to partner with ADD Systems for their convenience store and fuel businesses. In addition to ADD eStore® and ADD Energy E3®, the back office systems for stores and energy operations,

Al’s Corner Oil Company will implement Atlas Reporting®, ADD Systems’ solution for business intelligence and reporting.

Atlas provides operational reporting and analytics for the stores with real-time POS reporting, as well as increased efficiency and visibility into the energy distribution operations. Al’s Corner also plans to implement Raven®, the ADD mobile delivery solution, in their fleet in the future. Al’s Corner will be keeping their existing Pinnacle Palm POS™ systems. ADD Systems is excited to partner with The Pinnacle Corporation on the integration between the Palm POS and ADD eStore back office system. n

Growth Energy: Prime the Pump Success Driving Ethanol Demand More than 2,800 retail sites will offer E15 by 2021, generating approximately 350 million new ethanol gallons annually, according to a one-pager released today

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by Growth Energy. The report touts the immense success of E15 and the accomplishments of Prime the Pump, a nonprofit organization dedicated to helping build the infrastructure and distribution of higher biofuel blends, to give more and more Americans the choice of E15 at the pump. “Thanks to the hard work and generosity of participants in the Prime the Pump program, American consumers can purchase E15 at more than 1,400 locations across 30 states,” said Growth Energy CEO Emily Skor. “American drivers have logged more than 4 billion miles on E15, because when we give them a better option, consumers are choosing E15 again and again.” Prime the Pump is the market development campaign underway that is delivering new domestic demand today. n

Matrix Announces Promotions and New Industry Team Addition Matrix Capital Markets Group, Inc., a leading, independent middle-market investment bank, is pleased to announce the promotion of two professionals, as well as the addition of a new team member to the firm. Matrix would like to recognize the following individuals whose continued contributions to the firm and our clients have resulted in recent promotions: Robbie A. Nickle,

Gilbarco Veeder-Root Announces Industry’s First Wide Production Release of POS Software to Enable Outdoor EMV Transactions with Passport® POS More than 2,800 retail sites will offer E15 Gilbarco Veeder-Root, a leader in payment security and EMV technology, deployed the first software production release to enable full indoor and outdoor EMV support for First Data Generic Networks. Passport Version 11.02 is the industry’s first EMV software that enables full chip card functionality outside on the forecourt as well as inside the store. Passport Version 11.02 enables retailers using Passport® POS to protect their businesses from fraud and meet the EMV compliance in advance of the 2020 deadline. Passport Version 11.02 software functionality includes electronic signature capture, the ability to limit or minimize receipt printing, and supports larger fueling locations with up to 64 fueling positions and twelve cashier stations. Passport Version 11.02 is also the key component that makes the tablet-style POS system Passport EDGE EMV-ready outof-the-box, offering a new payment security option for smaller retailers. n FMNMagazine

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MBA, has been promoted to the position of Associate. Nickle joined the firm in 2016 as a Senior Analyst in Matrix’s Consumer & Industrial Products Group.

Prior to joining Matrix, he was an Associate Equity Analyst with BB&T Capital Markets and a Senior Financial Analyst with Capital One. Martin C. P. McElroy, Jr., CFA, has been promoted to Senior Analyst in Matrix’s Downstream Energy & Convenience Retail Group.

McElroy joined Matrix in 2017 as an Analyst in the firm’s Consumer & Industrial Products Group. Matrix is also pleased to welcome John R. Mosser, Jr., Analyst, to the firm as a member of the

INDUSTRY NEWS Consumer & Industrial Products Group.

He was previously a valuation consultant at Dixon Hughes Goodman in Charlotte, North Carolina. Mr. Mosser received a BSBA in Finance and Banking from Appalachian State University and he is a CFA Level II candidate. n

Petroleum Card Services Partners with the Oklahoma Petroleum Marketers & Convenience Store Association to Become Preferred Payment Processing Vendor Petroleum Card Services (PCS), a leading provider of payment processing solutions geared specifically for independent petroleum and convenience store (c-store) owners, announced their preferred partnership with the Oklahoma Petroleum Marketers & Convenience Store Association (OPMCA). The partnership brings exclusive membership benefits for OPMCA’s vast network of independent wholesale and retail marketers of gasoline, diesel, lubricating oils and other petroleum products; transporters of those products; and retail convenience store operators. Effective June 15th, OPMCA members can begin taking advantage of exclusive benefits offered by PCS at any time. n

Gas Pump TV and Bennett Pump Company Partner to Increase C-Store Sales in Light of EMV Upgrades Bennett Pump Company, a world leader in fuel dispensing technology and Gas Pump TV (GPTV), the leader in interactive fuel media, have committed to a long-term partnership to deploy a program aimed to increase fuel retailer forecourt and in-store sales. The subsidy program will help to soften the financial blow to fuel retailers

for EMV fuel dispenser upgrades. EMV fuel dispenser upgrades are required in order for fuel retailers to comply with updated credit card authentication standards and are estimated to cost gas station owners in the U.S. an estimated industry total of $5 – $7 billion by October 2020. The new program is available to fuel supply wholesalers, distributors and jobbers across the country and enables fuel suppliers to provide GPTV to their customers in a fully funded, pumpintegrated video and merchandising platform. The program is designed to make it easier for fuel suppliers to extend their services and leverage the GPTV platform as a simple, cost-effective, addedvalue solution for their customers. n

S. Bravo Systems Expands Into Alaska and Hawaii Bravo Systems, Inc., a leading U.S. manufacturer of secondary containment systems and products, based in Los Angeles, is pleased to announce that the company is broadening its national reach to Alaska and beyond the continental U.S. to Hawaii through a contract with Boston McDermott, a territory agency representation group. Boston McDermott has represented Bravo in the Pacific Northwest for years and is expert in the Bravo product line. Bravo’s new presence in the Alaska and Hawaii markets is a significant move in Bravo’s continuing rapid expansion. The expansion to Alaska and Hawaii is timely, with updated EPA regulations coming on October 13, 2018.

With complete coverage of the U.S. market, Bravo products will be vital tools for customers to achieve EPA compliance. One of Bravo’s most significant recent innovations was the launch of the Bravo Solutions Center, designed to provide real time responses to customers in the field and as needed, to construct and repair underground containment sites. The Bravo Solutions Center extends Bravo’s EPAcompliant environmental protection capabilities for its customers by troubleshooting field challenges and providing on-demand technical support. n

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Casey’s General Stores Selects FLEETCOR to Manage its Commercial Fuel Card Program FLEETCOR Technologies, Inc., a leading global provider of commercial payment solutions, announced today that it has entered into a contract with Casey’s General Stores, Inc., the fourth largest convenience store chain in the United States. Through the agreement, FLEETCOR will manage the private-label corporate fuel card program for all of Casey’s retail locations nationwide.

Casey’s General Stores owns and operates a chain of 2,074 convenience stores spanning sixteen states that deliver quality gasoline and freshlyprepared foods to customers. Under the agreement, FLEETCOR will manage and provide a variety of services supporting Casey’s General Store-branded fuel card from initial sales to back-end system processing, billing and customer service.

FLEETCOR will begin selling the product to new commercial card customers immediately and will convert Casey’s existing commercial card customers to the new program in the fall. n

Tanknology Launches STS ProTec Program to Battle Sump Corrosion Tanknology Inc., a leading provider of environmental compliance testing and inspection services, announced the launch of the STS ProTec Sump Corrosion Treatment and Prevention program. The STS ProTec Sump Corrosion Treatment and Prevention program allows site owners to prevent environmental contamination and costly component replacement by reconditioning and repairing sumps affected by corrosion. The STS ProTec sump treatment process is performed by a trained Tanknology technician and begins with a full inspection and documentation of the condition of each sump, followed by a thorough cleaning using a rust removing gel that eliminates corrosion on carbon steel, cast iron, brass, copper, steel and

INDUSTRY NEWS stainless steel components. Each metallic component is then brushed with a highbuild epoxy coating that is chemical, corrosion and abrasion resistant, thereby rendering each sump, not only clear of corrosion, but fully resistant to further contamination. The process does not require 30-, 60- or 90-day reapplication.. n

DTN Launches DTN Instant Market to Provide Quick Access to Critical Market Information DTN, a leading information services company, announced today the launch of its newest product for participants in the energy and agricultural supply chains, DTN Instant Market. This new solution is designed to provide the highlevel market view companies need to be more successful with their marketbased decisions and operations. DTN Instant Market offers visibility to exchange data, content and index

providers, commodity cash prices, market moving news, and company proprietary data. This critical data is a must for executives, marketers, merchandisers, accountants, logistics, business analysts, and others within organizations who need high-level market awareness. DTN Instant Market is cloud-based and available worldwide via web browsers and mobile apps. DTN is well known for providing the most powerful commodity market information and analysis available to companies. The launch of DTN Instant Market underscores the company’s commitment to serving users throughout organizations, regardless of their role, with real-time understanding of key markets. For customers who need in-depth analysis, proprietary industry news, and sophisticated charting options, DTN offers ProphetX, a tool designed to equip active commodity and energy traders to make profitable trading decisions. n

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Ryder Introduces RyderGyde , a Mobile Commercial Fleet Management App with the Ability to Schedule Maintenance Services within Seconds ™

Ryder System, Inc., a leader in commercial fleet management, dedicated transportation, and supply chain solutions, announced today the launch of RyderGyde™, a new, free mobile application and the only one of its kind allowing users to do everything from compare real-time fuel rates to conveniently schedule shop services—all from their smartphone. With this application, drivers, fleet owners, and fleet managers now have a customized, streamlined digital experience to more efficiently manage and act on their fleets.

INDUSTRY NEWS Any fleet manager or driver is able to leverage the features of RyderGyde. Ryder customers will especially enjoy the benefits of being able to see their entire fleet and maintenance performance.

RyderGyde is one of the many ways Ryder is addressing disruption in the industry, including the growing need for ondemand information. Once logged in, Ryder customers can schedule their maintenance appointments across North America in 60 seconds or less. In the app, users can view and manage which vehicles within their fleet need servicing.

A combination of a vehicle’s odometer reading and telematics data determines when a vehicle is ready for maintenance, and it is automatically flagged in the application. In addition, users can view all upcoming service appointments. n

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Magellan Midstream Launches Supplemental Open Season for Possible Further Expansion of Western Leg of Texas Refined Petroleum Products Pipeline System Magellan Midstream Partners, L.P. announced a new open season to solicit additional commitments from shippers to potentially further expand the western leg of its refined petroleum products pipeline system in Texas. Binding commitments are due from interested customers by 5:00 p.m. Central Time on July 11, 2018.

Magellan previously announced it is expanding the capacity of the western leg of its Texas refined products pipeline system to approximately 150,000 barrels per day (bpd) from its current capacity of 100,000 bpd. Subject to the results of the supplemental open season launched

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today, the partnership is considering the addition of another 35,000 bpd of capacity, for a total capacity up to 185,000 bpd. In addition, construction of a new refined products terminal in Midland remains under review. All of the expanded capacity will handle incremental shipments of gasoline and diesel fuel to demand centers in Abilene, Midland/Odessa and El Paso, Texas and New Mexico. The pipeline system can also access markets in Arizona and Mexico via connections to other pipelines. Magellan currently expects the expanded capacity to be available mid2020, subject to receipt of all permits and approvals. n

PDI Acquires DM2— Expanding its Capabilities and Team Serving Wholesale Petroleum Marketers PDI Software, a leading provider of software solutions to convenience retailers and wholesale petroleum marketers, announced it has acquired DM2, a privately held company with corporate headquarters in Vancouver, Washington. PDI has acquired DM2 to better serve customers and deepen its expertise in petroleum wholesale. The acquisition will add additional expertise to PDI’s professional services team and bolster the company’s cardlock and lubricants knowledge. The acquisition will also provide PDI with a regional presence on the U.S. West Coast to better service customers in that area. Founded nearly 30 years ago, DM2 provides back office enterprise resource planning (ERP) automation solutions for over 200 customers. The company has been a leading supplier of technology to wholesale petroleum marketers in the U.S. PDI will acquire DM2’s intellectual property, development and support resources—strengthening its overall operations. The acquisition of DM2 continues PDI’s strategy of developing, acquiring, and supporting best-in-class industry solutions for the petroleum wholesale and logistics industries worldwide. n

INDUSTRY NEWS

Penske Truck Leasing Completes 1 Millionth VoiceDirected Preventive Maintenance Inspection Penske Truck Leasing has successfully completed its 1 millionth voice-directed preventive maintenance inspection using its recently deployed innovative paperless technology. Over the last year, Penske implemented its voice-directed preventive maintenance processes for its fleet of more than 270,000 vehicles. The pioneering approach improves inspection and repair accuracy and consistency while also eliminating paperwork and ensuring full documentation and compliance with regulations. Penske commemorated the milestone by honoring David Barba, a Phoenix-based technician, who performed the 1 millionth preventive maintenance inspection on a 2018 Freightliner Sleeper Tractor. Penske’s innovative voice-directed preventive maintenance system provides its technicians everything they need at the point of repair—reducing wasted time, motion and manual keying. It taps a robust, high-speed indoor and outdoor gigabit Wi-Fi network and uses rugged mobile tablet devices for its technicians and industry-leading diagnostic tools. The system provides voice prompts via a headset to direct technicians through a preventive maintenance inspection. It is the foundation of Penske’s proprietary preventive maintenance process, providing the ability to tailor inspections to the specific vehicle, its age, specifications and technologies now and in the future. n

marketing services for BATeam clients.

Marketing today needs to be an extension of the sales effort—before, during and after. Integrating digital and traditional marketing strategies is essential in the retail industry. As a group, BATeam couples individual engagement strategies with sound digital tactics to maximize exposure in the industry. Founded in 2015 by three experienced petroleum, convenience store and media professionals—Kay Segal, Paul Reuter, and David Nelson—the Business Accelerator Team (BATeam) is an outside-in catalyst assisting with insight, strategy, marketing and key industry connections. The

Digital Marketing Strategies Take a Lead at BATeam Business Accelerator Team—a consultancy providing business development and digital marketing expertise to retailing and foodservice— has been leveraging the industry knowledge and expertise of recently announced Partner, Mike Flebotte, to develop an extensive suite of digital FMNMagazine

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consultancy provides businessdevelopment expertise derived from a deep understanding of what has worked with suppliers, retailers and media in retailing and foodservice. n

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What Does That Mean?

PAGE

ADD Systems......................................................24 American Coalition for Ethanol...........................69

Biobor Fuel Additives......................................... 11

Cummins & White..............................................60

Dennis K. Burke, Inc............................................18

Fuels Market News............................................. 66

FuelConnect 360........................ Inside Back Cover

Fuel Ethanol Workshop and Expo....................... 63

IGEN.....................................................................3

Innospec Fuel Specialties................................... 28

Integer DEF Forum............................................. 58

Lock America...................................................... 70

MidContinental Chemical Company............40 – 41

OmegaFlex.........................................................32

OPW Retail Fueling............................................ 45

PDI.......................................................................5

POC....................................................................67

RDM Industrial Electronics.................... Back Cover

REG.....................................................................12

SkyBitz.......................................Inside Front Cover

Source North America.........................................14

TMC....................................................................36

Trinium Technologies......................................... 31

WPMA................................................................71

Test Your FMN Acumen The list below represents acronyms used in this issue of Fuels Market News.

ACE

American Coalition for Ethanol

AEO

EIA Annual Energy Outlook

IFTA

International Fuel Tax Association

API

American Petroleum Institute

LUST

API

Application Programmable/ Programming Interface

Leaking Underground Storage Tank

NACS

ATA

American Trucking Associations

National Association of Convenience Stores

NCGA

bpd

Barrels per Day

National Corn Growers Association

CNG

Compressed Natural Gas

NFU

National Farmers Union

CO2

Carbon Dioxide

NGV

Natural Gas Vehicle

DOT

Department of Transportation

NOx

Oxides of Nitrogen

E-10

10% Ethanol, 90% Gasoline

PM

Particle Emissions

E-15

15% Ethanol, 85% Gasoline

E-85

85% Ethanol, 15% Gasoline

EIA

U.S. Energy Information Administration

ELD

Electronic Logging Device

EPA

U.S. Environmental Protection Agency

ERP

Enterprise Resource Planning

GDP

Gross Domestic Product

GPS

Global Positioning System

HOS

Hours of Service

HOV

High-Occupancy Vehicle

HR

Human Resources

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PSI

Pounds per Square Inch

R&D

Research and Development

RBOB

Reformulated Blendstock for Oxygenate Blending

RFA

Renewable Fuels Association

RFS

Renewable Fuels Standard

RIN

Renewable Identification Number

RVO

Renewable Volume Obligation

SPA

State Program Approval

TCEQ

Texas Commission on Environmental Quality

ULSD

Ultra-Low Sulfur Diesel

UST

Underground Storage Tank

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Sharon Schneider 888-575-FUEL (3835) 803-490-7809 sschneider@fuelconnect360.com www.FuelConnect360.com