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Dear PEI Member: During the general membership
meeting in Atlanta, I commented that 2014 will be a big year for members
installing equipment to store and dispense diesel exhaust fluid (DEF). What
I didn’t have a good handle on when I gave that talk was the market for DEF
equipment beyond 2014.
Over the last 30 days I have talked to dozens of people
who specialize in the DEF market. Collectively, they confirmed my optimistic
outlook for 2014 and painted a rosy picture for years to come. Here are my
takeaways from those conversations.
- The risk of other technologies replacing SCR (Selective
Catalytic Reduction) and DEF has been substantially reduced. Today, all four
of the major original equipment manufacturers of Class 8 heavy duty trucks
have adopted SCR technology. SCR and DEF are here to stay.
- Consumption of DEF in 2013 is expected to be up more than 59
percent over consumption levels in 2012 (215 million gallons vs. 135 million
gallons). DEF consumption will balloon to 718 million gallons in 2017, which
computes to an 83 percent annual increase over the next four years.
- SCR-equipped medium and heavy duty truck (Class
4-8) sales are holding steady at 30,000 per month.
- The SCR-equipped vehicle population reached 900,000 units in
September 2013.
- Retailers now offer DEF at the pump at more than 1,000 locations,
with hundreds of retail sites poised to begin selling DEF at the pump
in 2014. On the fleet/commercial side, today only 30 percent of the truck
fleets own trucks that use SCR technology. By 2017, experts expect 60
percent of the fleets will have vehicles that use SCR technology. This tells
us that although the replacement of older tractors with newer SCR-equipped tractors is proceeding at a slower pace than expected when the
program began, the window of opportunity for DEF equipment suppliers will
stay strong for years.
- Suppliers
of DEF to retail and commercial customers will make considerable investments
during the next several years in their storage and delivery infrastructure,
adding such things as trucks, trailers, bulk plants and rail cars.
- Further improvements in the fuel economy of trucks
using DEF will drive higher dosing rates, beginning with the 2015 model
year.
- Investment in bulk storage equipment
will continue as end-user customers move from bottles, drums and totes to larger storage
and dispensing systems. One expert believes that 50 percent of all DEF will
be stored in and dispensed from bulk storage vessels in 2014.
- The varied and
fragmented off-road vehicle needs of mining companies, construction
companies and farmers will come into play next year and boost the market for
DEF even more.
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DEF Outlook
Regulatory Notes:
MD, MO, OK
PEI Young Executives
PEI Board Election Procedure to Change
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REGULATORY BRIEFS
Maryland. The Maryland Department of the Environment plans to propose a
regulation which will exempt new gasoline dispensing facilities (GDFs) from
installing Stage II vapor recovery equipment; remove Stage II requirements
from existing facilities by January 1, 2017; establish a decommissioning
policy for the removal of Stage II equipment; require enhanced testing and
requirements for GDFs without Stage II; and establish a 10-year plan to
invest part of the savings from the elimination of Stage II into an electric
vehicle charging infrastructure. A
preliminary draft regulation and a
slide presentation for Stage II vapor recovery given by the
Department November 12 are available. The Department has asked shareholders
to reserve Wednesday, January 8, 2014, at 1:00 p.m. for a follow-up meeting.
Missouri. The Missouri Department of Natural Resources will propose a
rule to require all new UST systems to have secondary containment. New
systems will be defined as new USTs, replacement USTs, new piping, or any
piping project that replaces 50 percent or more of the piping associated
with an individual tank. The rule also will require containment sumps at all
tank tops (submersible turbine pump or suction piping connection areas),
under all dispensers and at all piping transitions. The requirement for
containment sumps is already in effect. These new regulations would not
apply to existing UST systems unless the tanks are replaced and/or until 50
percent of the piping for any individual UST system is replaced. There will
be no requirements for existing, compliant UST systems to be replaced with
double-walled equipment. The effective date for this
new regulation is expected to be July 1, 2017.
Oklahoma. The Oklahoma Corporation Commission (OCC) voted 3-0 to open a
rulemaking docket for conducting CNG pump inspections. Technical conferences
for industry and public input are scheduled for 10 a.m. on January 8 and
January 16 at the OCC’s office in Oklahoma City. A hearing before the
three-person commission is scheduled for February 6. About 100 CNG
stations are operating across Oklahoma, but no statewide rules for
inspecting those operations are in place.
YOUNG EXECUTIVES EARLY BIRD REGISTRATION ENDS
DECEMBER 13
The early registration fee for the 2014 Young Executives (YE) Winter
Conference at the Caribe Hilton in San Juan, Puerto Rico, February 6-8,
2014, ends Friday, December 13. This continues to be one of the best
educational and networking events for emerging leaders in our industry.
Chip Madera will be the general session speaker for the
2014 YE Winter Conference. Madera’s clients include The Mayo Clinic, Disney, Verizon, Gatorade and 3M.
Click here to learn more and to register for the
2014 YE Winter Conference. Contact Chris Bouldin at
cbouldin@pei.org for more information.
PEI BOARD ELECTIONS TO BE ELECTRONIC IN 2014
The PEI Constitution and Bylaws was changed at PEI’s general membership
meeting in Atlanta to allow the association to conduct board elections
electronically, instead of by mail. The PEI Board of Directors proposed the
amendment based on the belief that electronic balloting will save time, cost
less money, make the process more efficient and increase participation. The
current PEI Constitution and Bylaws is available on PEI’s website.
The 2014 election schedule is
here.
GLOBAL LIGHT AND OPW JOIN
PEI PRIORITY CLUB
Global Light Company, Cambridge, Massachusetts, and OPW, A Dover Fluid Management Company, Cincinnati, Ohio, have joined
the PEI Priority Club. The two companies join fellow members:
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- Petroleum Parts Inc.
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PMP Corporation
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RDM Industrial Electronics
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STICO Mutual Insurance Company
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Universal Valve Company, Inc.
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Veeder-Root
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Wayne: A GE Energy Business
-
ZCL/Xerxes Corporation
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Limited to 20 companies, PEI Priority Club members
commit additional resources to the organization to support ongoing programs
and events. Benefits of Priority Club membership can be viewed
here. For more information about PEI’s Priority Club, contact Carletta Denison at
cdenison@pei.org.
VEGEAIS JOINS FREEDOM ELECTRONICS
Freedom Electronics, Inc., Kennesaw, Georgia, has hired Mike Vegeais as
its western region sales manager. Responsible for business development in
the western United States and Canada, Vegeais will continue to reside
near Houston, Texas. He has more than 30 years experience in the industry.
MEMBERSHIP APPLICATIONS
Qatar distributor. Al Hamad Trading, 30, Mohd. Almana Bldg., Next to
Doha Bank, Ayn Khalid, Salwa Road, Doha, Qatar 22577, has applied for
distributor division membership. Rizwan Ahmed is senior sales and project
manager for the firm, which was established in 1954. The company supplies
and installs retail petroleum equipment and represents AileOilEqp. BravoInc,
Franklin, OPW-FC, Pneumrcatr, SHMInd and Wayne. Sponsored for PEI membership
by David Crouse, OPW-FC, Hamilton, OH.
www.alhamadtrading.com
Canada CNG consultant. CNG Consulting, 43865 Stone Ridge Place,
Chilliwack, British Columbia V2R 5V2, has applied for affiliate division
membership. Norm Estey is managing consultant for the firm, which was
established in 2012. The company is a CNG consulting firm working with
petroleum service companies to establish programs to construct and service
CNG stations. Sponsored for PEI membership by P. D. McLaren, McLarenLtd,
Burnaby, British Columbia.
California engineering firm. GHD Inc., 2235 Mercury Way, Suite 150,
Santa Rosa, California 95407, has applied for affiliate division membership.
Ernest Osborn is senior mechanical engineer for the firm, which was
established in 1928. The company has worldwide expertise in civil,
structural, electrical, mechanical and environmental services. Sponsored for
PEI membership by Andrew Knapp, Franklin, Madison, WI.
www.ghd.com
Florida installation and service company. Aegis Petroleum Inc., 9780
NW 115th Way, Medley, Florida 33178, has applied for service and
construction division membership. Vicente Calvo is tech manager for the
firm, which was established in 2012. The company installs and services all
types of retail petroleum equipment. Sponsored for PEI membership by Mike
Futral, Tronitec, Marietta, GA.
www.aegispetroleum.com
Mexico architectural and engineering firm. GBI, S.A. de C.V., Fuente
De Trevi No. 23 2o Piso, Col. Lomas De Tecamachalco, Mexico, D.F., Mexico
53959, has applied for service and construction division membership.
Mauricio Boué Iturriaga is the primary contact for the company, which was
established in 1997. The company designs and builds gas stations and
convenience stores. Sponsored for PEI membership by Andrew Knapp, Franklin,
Madison, WS.
www.gbi.com.mx
Texas service company. Unicare Building Maintenance, Inc., 11148
Morrison Lane, Dallas, Texas 75229, has applied for service and construction
division membership. Bob Howell is vice president, marketing for the firm,
which was established in 2005. The company repairs damaged dispenser islands
without breaking concrete. Sponsored for PEI membership by Christopher M.
Lawson, McConSer, Irving, TX.
www.unicaremaintenance.com
ADMITTED TO PEI
- Inssyde, Tegucigalpa, Honduras (S&C)
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