by Robert Arbasetti, COO of Prime Lube, Inc.

In an earlier article, I addressed the now minimal, but soon-to-be major, impact of newly enacted U.S. Environmental Protection Agency ultra-low emissions standards mandating the use of selective catalytic reduction (SCR) with Diesel Exhaust Fluid (DEF) technology. The EPA mandate requires all diesel-powered passenger and commercial vehicles beginning with the 2010 model year to meet new, lower nitrous oxide emission standards.

This represents the beginning stages of the trucking industry's “greening.” The new regulation, in addition to presenting the trucking industry with a golden opportunity to at long last bury its long-standing, high-pollutant reputation, also presents challenges not only with respect to eventual capital expenditures for new trucks, but also as it relates to on-site DEF storage options and how the product is distributed.

DEF systems added $8,000 to $10,000 to the cost of 2010 model year trucks, a dollar figure that's certain to grow in the coming model years. While owners can delay these costs by purchasing non-regulated 2009 and older trucks, DEF-equipped trucks will, over roughly three years, partially offset these costs as they burn fuel as much as 5 percent more efficiently than older models.

This is only part of the equation.

Carriers must also address both how to store and distribute DEF, a primarily water-based additive. Specifically, DEF is comprised of 67.5 percent water and 32.5 percent natural gas-derived urea that together form ammonia, which transforms nitrous oxide into water vapor and Nitrogen. Because water is DEF's primary elemental ingredient, it is prohibitively expensive—despite the fact that it's per gallon cost is comparable to diesel fuel itself—to have DEF delivered over-the-road.

Combine this with the fact that SCR technology requires only one gallon of DEF for every 50 gallons of diesel fuel, it's clear that carriers are better-served to directly procure DEF from local or regional manufacturers rather than trucking it in or enlisting drivers to search for a literal handful of truck stops currently selling the fluid alongside diesel fuel.

Also, the 50-to-1 diesel-to-DEF ratio does not require excessive DEF storage, either now with the vast majority of the nation's OTR trucks comprised of pre-2010 models, or even when these vehicles reach the scrap yard in decades to come. There's another issue: apart from low volume requirements, DEF is a highly volatile compound with an extremely finite shelf life that largely depends on storage temperatures.

DEF's shelf life is longer at colder temperatures. At 50 degrees Fahrenheit, DEF will last three years. At 80 degrees, shelf life is dramatically cut to a mere 12 months, rendering DEF storage in Nevada, Arizona and other hotter climates a challenging and expensive proposition. Conversely, DEF, because of its high water content, freezes at temperatures below 15 degrees Fahrenheit, presenting an opposite challenge in the Dakotas, Minnesota and Alaska, among other cold weather states.

The market for DEF is, no pun intended, highly fluid. Storage requirements for manufacturers and carriers, as pre-2010 trucks roll into the sunset, will only become greater. The fluid requires special equipment not only for storage—in the form of stainless steel, titanium, polypropylene or rubberized tanks—but also for pumping and handling. Unlike diesel and gasoline, it is unsuitable for underground storage, but yet must be shielded from direct sunlight in above ground tanks encased in heated or otherwise temperature-controlled “blankets.”

For the next six to 12 months, carriers are probably best served procuring DEF in currently standard 2.5 gallon bottles, the contents of which to be poured into separate DEF tanks on newer trucks at the garage, or at a growing number of truck stops selling the product.

The phasing in of the EPA's DEF requirement gives carriers ample time to gear up for capital expenditures for new trucks, as well as for DEF purchases and storage costs. It's time to start planning; the time to execute on those plans will follow very shortly.