Fuel management services can be an integrated solution to manage all activities and data associated with purchasing, moving and storing fuel.
Peter J. Cochefski
If there was any doubt that federal and local governments are serious about the enforcement of newly established diesel-fuel and air-quality laws, just ask the California-based trucking firm that received a non-compliance fine earlier this year of more than $500,000.
Modern fuel-management systems have been developed to comply with complicated and detailed compliance issues for fleets that choose to manage their own fuel distribution. The California Air Resources Board (CARB) that levied the fine for non-compliance with several heavy-duty diesel (HDD) programs within the trucking fleet is just one institution in one state that is showing a commitment to increased enforcement on motor carriers operating on the nation鈥檚 roadways.
The impact of non-compliance impact is both costly and demanding as violators are made to incorporate a reactive compliance program. Reference the example of the California-based trucking fleet that was found to be in violation: in order to avoid further fines, it must now demonstrate compliance. Additionally, the fleet must designate an individual who will attend classes on existing regulations, as well as maintenance procedures for emission-control equipment. And if that was not enough, the fleet is now required to submit annual smoke-testing reports and install 鈥淟ow NOx鈥� software on particular model-year engines. Depending on the size of the fleet, all it takes is one non-compliance fuel violation like this one for many fleets to not survive the encounter.
Non-Compliance Issues
The U.S.鈥� fuel-compliance program targets all parties in the distribution system, including refiners, importers, distributors, carriers, oxygenate blenders, retailers and wholesale-purchaser-consumers, which includes fleet operators with their own dispensing pumps.
But not all compliance is environmental. Motor-vehicle fuels are subject to a fuel tax, but non-road fuels are exempt. For tax purposes, the Internal Revenue Service (IRS) and some state governments have established their own enforcement programs to ensure non-road fuels are not used to refuel on-road vehicles.
The truth is that many fleets that maintain their own fuel-storage operations may find themselves in court due to non-compliance issues associated with their fuel supply. For a fleet manager who gets cited for federal, state or local violations, the tough part to swallow (besides the hefty fine) is that many companies do not have the resources available to assign a compliance specialist.
For the fleet manager, his way may be 鈥渨orking鈥� overall, but in reality, there could be enough inefficiency in his approach that it may be costing his company thousands of dollars a year in fuel, equipment maintenance, liability and compliance costs.
Fleet owners may find themselves faced with financial losses due to extensive dispenser downtime or, in a worst-case scenario, an environmental disaster. The answer to these concerns can be found in the technology that is driving today鈥檚 automated fuel-management services.
Whether it is an aboveground or underground storage tank (AST/UST), chances are there is a long list of technical standards regarding the compliance of tank facilities cited within state statutes, rules and other permits for inspection.
The truth is that many non-compliance violations do not come from fleets intending to skirt the law, but rather from fleets who unknowingly miss inspection deadlines, let permits lapse or are unaware of environmental regulations. The business of running a fleet is an all-consuming job, and it is easy to overlook such small details.
Automated Fuel Management Systems
So, how do you avoid the painful fines associated with the non-compliance of regulations when you cannot afford to have someone who can stay on top of the issue 24/7? Even worse, how do you avoid being shut down or limited in your daily fleet operations because of these violations? Consider taking a look at a modern automated fuel-management system.
Automated fuel-management systems have been designed to track and update compliance data and incidents 24/7/365. They continuously monitor all required functions, parameters and issues to ensure more thorough, efficient compliance without increasing the amount of employee interactions.
Compliance management details continue to become more complicated. These regulations can be minute, but the fines for violations are anything but small. Fuel releases from ASTs or USTs, spills, overfills or leaking tanks and piping can cause fires or explosions that threaten safety. Releases from ASTs/USTs can also contaminate the groundwater supply. Stay on top of fuel-storage regulations by minimizing your vulnerability to miss or misunderstand a deadline or necessary permit.
In addition to being a watchdog for compliance issues, systems can provide a fleet with:
- Automated Fuel Tracking: This service relies on dedicated application-specific hardware and software that is designed to deliver an accurate account of fuel-usage data from a facility, including exactly where that fuel is going. This can immediately eliminate any guesswork on expenditures for a day, week or month, and it can help identify or deter fuel theft.
- Reduced Maintenance Costs: Let the fleet manager know how much time maintenance technicians actually spend onsite, which can be hard to track by a clerk. Also, by accurately tracking common maintenance issues, it becomes much easier to anticipate future maintenance expenses.
- Alarm Management: This is a traditionally labor-intensive job that can be outsourced to a company that can diagnose, solve and document alarm conditions immediately. Detecting an alarm event at the earliest possible point is essential in identifying a potential environmental risk and mitigating the costs that can be associated with environmental remediation.
- Contractor Database Management: This service helps a fleet manager ensure that every vendor is up-to-date on its certification, and will never send a contractor to a customer location if the personnel does not have the proper training on the equipment in the customer鈥檚 fueling system.
A Crucial Piece听听听听听听
Fuel-management services can be an integrated solution to manage all activities and data associated with purchasing, moving and storing fuel. This system of centralized computer-based fuel management can be a crucial piece in the optimization of supply-chain efficiencies and overall fuel-supply performance for fuel-site operators.
听Peter J. Cochefski is Director at Ryder Fuel Services (Houston, TX), a subsidiary of Ryder System, Inc., and a provider of fuel-management programs that focus on compliance management, remote monitoring and alarm management, service management, fuel management and supply, and environmental best management practices. He can be reached at (281) 647-8900, ext. 222 or via e-mail at [email protected].