November 19, 2012 | Vol. 62, No. 25

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In This Issue
Dear PEI Member:

Judging from the comments we heard from the podium and the audience at Integer Research's 5th Diesel Exhaust Fluid Forum USA 2012, held earlier this month in Cincinnati, the outlook for diesel exhaust fluid (DEF) and DEF equipment has never been brighter. Here are some of the takeaways from the conference.

Current and future numbers. Estimates indicate that the current population of Class 8 (heavy duty tractors) trucks requiring DEF reached 348,000 in September with an annualized rate of net orders near 180,000. DEF consumption is running at 12 million gallons per month and expects to top out at 140 million gallons in 2012. Panelists expect DEF production to ramp up to 700 million gallonsfive times the 2012 figureby 2018. 

Full steam ahead. Within the past 12 months, the uncertainty surrounding SCR (selective catalytic reduction) has lifted. It is now clear that SCR technology will be part of the refueling infrastructure for the foreseeable future. Reasons for the optimism include:  

  • SCR technology has matured and improved for all engine sizes.
  • Compressed natural gas (CNG) or liquefied natural gas (LNG) will not substantially impact the Class 8 line haul structure.
  • The recession has caused chemical and petroleum distributors to seek nontraditional ways to make money. Selling DEF to retailers serves that need.
  • The decision this summer by Navistar International to abandon exhaust gas recirculation (EGR) technology in its engines means that all major diesel engine manufacturers have committed to use SCR technology to meet EPA's emission regulations on nitrogen oxide (NOx) reduction.

Retail infrastructure. The number of truck stops with DEF at the fuel island has doubled since October 2011. Much of that is due to the aggressiveness of the three major travel plaza chains: TravelCenters of America, Pilot Flying J and Love's Travel Stops. After these three companies are finished adding DEF at the pump in all of their locations―which is expected soon―then the next line of truck stops (about 1,000 travel centers owned by smaller chains, convenience stores, independents, etc.) is expected to transition to bulk storage and dispensing at the fuel island within the next 18 months.

Commercial infrastructure. Of the 60 billion gallons of diesel sold annually in the United States, only 15 billion to 20 billion gallons are sold at travel plazas. The rest―somewhere between 66 percent and 75 percent of all diesel sold―is consumed by fleets on property. Panelists at the conference assume DEF will be consumed the same way. Mindful of those quantities, the evolution of DEF from package to tote to quick-change tote to bulk storage on the commercial side is only a matter of time. In the opinion of the attendees at the conference, this evolution is already occurring―and much faster than expected. However, it was the consensus of those in Cincinnati that the big wave of commercial accounts moving to bulk storage has yet to happen.  

Odds and ends. Those at the conference made a few other points worth noting:

  • The truck fleet is as old as it ever has been. Fleet owners have held out as long as they can and will soon have to replace their legacy vehicles with those equipped with SCR technology.
  • Distributors of DEF believe that servicing the demand for DEF on the commercial side by just using totes is not realistic.
  • Although the estimates of bulk DEF stations in Canada currently differ from one person to the next, Canada doesn't have many retail stations dispensing DEF at the island.
  • Freight is a huge component of the delivered price of DEF. In some cases, it is equal to the price of the product itself.
  • The industry's bulk supply terminal network has a long way to go, but it grows monthly.
  • The industry is turning toward dedicated trucks for the delivery of DEF and away from the wash-out issues involved with vehicles used both in petroleum and DEF service. Ticket printers will be required for all DEF delivery trucks used in multi-drop deliveries.

DEF Outlook

PEI Recommended Practice on AST Installation (RP200) to be Revised

RFS Waiver Request Denied by EPA


In This Issue


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PEI's AST Installation Document to be Revised
The PEI Aboveground Tank Installation Committee is soliciting comments to revise PEI's Recommended Practices for Installation of Aboveground Storage Systems for Motor Vehicle Fueling (PEI/RP200-08).

PEI will follow the same procedure in revising RP200-08 that has been used with previous updates of this recommended practice. If you have suggestions or recommendations for improving RP200-08, submit them online at www.pei.org/rp200. Instructions for completing the form are provided on the website.

PEI members, regulators, tank owners, insurance companies and trade associations are encouraged to submit comments. All comments must be received at PEI by Monday, January 7, 2013, to be considered by the committee. If you have any questions or need further information, contact Bob Young byoung@pei.org or 918-236-3966.

On November 16, the U.S. Environmental Protection Agency (EPA) denied requests to waive the national volume requirements for the renewable fuel standard (RFS) program. EPA found that the evidence and information does not support a determination that implementation of the RFS program during the 2012-2013 time period would severely harm the economy of a state, a region or the United States. EPA said that the body of information shows that it is very likely that the RFS volume requirements will have no impact on ethanol production volumes in the relevant time frames, and therefore would have no impact on corn, food or fuel prices.

General Electric (GE) and Clean Energy Fuels have announced an alliance to help expand the use of LNG as a transportation fuel across the United States. As part of the alliance, Clean Energy Fuels will purchase two MicroLNG plants from GE Oil & Gas. The compact modular units are designed to rapidly liquefy natural gas. The two plants will produce up to 250,000 gallons of LNG per day and are designed to be expanded to provide up to 1 million gallons per day.

The two plants will support fueling stations along critical transportation corridors across the U.S. The LNG produced by the plants will be sold primarily at Pilot Flying J truck stops.

The target market is the long-haul trucking industry. Clean Energy expects to have 70 LNG filling stations up and running by the end of the year, with more planned next year according to Clean Energy Fuels chief executive Andrew Littlefair.

Weis Markets, Inc.
, Sunbury, Pennsylvania, recently designated PWI, Incorporated, New Oxford, Pennsylvania, as its vendor/partner of the year. Weis Markets is a regional grocery chain with stores in a five-state area.
The Texas Department of Transportation (TxDOT) announced November 15 that it will initiate a Compressed Natural Gas (CNG) Pilot Program. The program, which will begin with the purchase of four CNG Ford F250 trucks, is designed to help TxDOT leaders evaluate natural gas vehicles and the availability of fuel stations, and whether, operationally, a fleet powered by natural gas meets the agency's needs.
Tank Installers of Pennsylvania
elected the following officers for 2013: Greg Dubas, Pine Run Construction (president) and Ben Hieber, PWI, Incorporated (vice president). Walter Rimmer is the association's executive director.

"Ethanol was going to turn out just fine
in this election no matter what because we were in an enviable position of both candidates supporting ethanol generally and the RFS specifically."―Bob Dinneen, Renewable Fuels Association president and CEO at the National Association of Farm Broadcasting annual meeting.
"Biofuel advocates say senior Republican staff and members of the House Energy & Commerce Committee are signaling that legislative debate over reforming EPA's renewable fuel standard (RFS) is highly unlikely in 2013, saying there appears to be little interest among GOP leadership in moving a comprehensive energy bill next year."―Inside E.P.A. Weekly Report, November 2, 2012.
"Please be advised that E15 is not approved for sale in California, and if ARB (Air Resources Board) chooses to allow E15 as a transportation fuel, it would take several years to complete the vehicle testing and rule development necessary to introduce a new transportation fuel into California's market."―Michael Waugh, chief of the CARB transportation fuels branch.

Refrigerated LED lighting manufacturer.
Self Electronics USA, 4500 Peachtree Lake Drive, Duluth, Georgia 30096, has applied for manufacturer division membership. Justin Dover is sales manager for the firm, which was established in 1993. The company is a manufacturer of original equipment for refrigerated LED lighting and other products for interior display lighting. The equipment is sold through distributors. Sponsored for PEI membership by Jeff R. Swonger, R-JSlsAscs, Greensboro, GA.
Shoring and bridging products.
Mabey Inc., 6770 Dorsey Road, Elkridge, Maryland 21075, has applied for affiliate division membership. Jessica Bagrowski is marketing specialist for the firm, which was established in 1989. The company makes products for shoring, propping and bridging. Mabey specializes in supplying engineered solutions for temporary works. Sponsored for PEI membership by Andrew J. Adams, AdamsTank, Clearwater, FL. www.mabey.com
Signage systems provider. Walton Enterprises, Ltd., DBA Walton Signage, 3419 E. Commerce Street, San Antonio, Texas 78220, has applied for affiliate division membership. Marvin Miller is regional vice president sales for the company, which was established in 1980. The company provides solutions for turnkey signage systems, conversions, re-branding, leasing and maintenance programs throughout the world. Sponsored for PEI membership by Chris Monroe, Monroe, Arlington, TX. www.waltonsignage.com
Peru consulting services company. UMD Peru SAC, Av. Nestor Gambetta 319, Callao, Lima, Peru, has applied for service and construction division membership. Martin Diaz is the primary contact for the firm, which was established in 1986. The company provides consulting services, construction and station inspection. Sponsored for PEI membership by Christopher Tiso, ATSEnvSer, Sparta, NJ. www.umdperu.com


  • FarmChem, Floyd, IA (dis)
  • TECC Electrical Contractors, Osteen, FL (S&C)
  • Ram Services LLC, Warwick, NY (S&C)


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Petroleum Equipment Institute
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Tulsa, OK 74101-2380

The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.