Commercial and Government Fleets Comply with New EPA Regulations
18 June 1998
FEATURE/"Creative" Financing Program Helps Commercial and Government Fleets Comply with New EPA Regulations
PURCHASE, N.Y.--(BUSINESS WIRE FEATURES)--June 8, 1998--As the EPA's December 22, 1998 federal deadline draws near, many commercial and government fleets are still pondering what to do with their underground storage tank systems (USTs) and how to pay for the new tanks, special equipment, insurance, environmental testing, and clean-ups.In the Northeast, a growing number of UST owners and operators are solving this dilemma by taking advantage of a new financing program offered by RAD Energy Corporation of Purchase, New York. The program provides free consultation and complete financing for the replacement, upgrading, or closing of UST systems and comprehensive fleet fuel management for both on-site and off-site fueling programs.
By December 22, 1998, all UST systems must meet new EPA regulations for leak detection and spill, overfill, and corrosion protection. All UST sites must be tested for environmental contamination and corrective measures taken if contamination is found. UST system owners and operators must also demonstrate their "Financial Responsibility", or ability to pay, for damage costs that could occur if their UST system leaked. Federal regulators have stated they will not extend the December 22 deadline and that all UST system owners and operators in noncompliance at that time can be cited and fined for those violations.
"Our program helps UST owners and operators determine the best solution for their business or organization. We show them their options and estimated costs, and we're able to do this very quickly. If they decide to keep their on-site fueling system, we help them choose the tanks and equipment they want and provide financing through a 3- to 10-year bulk fuel contract or a lease plan, depending on the size of the system," said Steven Levy, Vice President of RAD Energy. "If they decide to close their UST system, we can help them meet the EPA's closure regulations and provide them with an off-site fuel management program through a nationwide network of fueling locations."
One of the largest independent commercial motor fuel marketers in the nation, RAD Energy supplies diesel fuel, gasoline, kerosene, alternative fuels (natural gas, methanol, ethanol, biodiesel), heating, marine, and aviation fuels throughout the Northeastern United States. The family owned and operated company is also a regional marketer/processor for the Fuelman/Gascard system, a national fuel management network serving more than 70,000 commercial and government fleets with more than 16,000 locations in 48 states.
For many commercial and government fleets, on-site fueling is still the most convenient way to purchase and manage fuel. RAD's programs allow fleets to keep their on-site fueling systems, giving them a convenient alternative to conventional financing and a better way to manage their fuel usage.
New York's largest taxi fleet, Team Systems Corporation, is a recent example. To help them comply with the EPA's new UST standards, RAD Energy was asked to evaluate the company's on-site fueling system and their overall fueling requirements. The final solution was a complete system upgrade with expanded storage capacity, an automated fuel monitoring system, and financial assistance through a long-term fuel supply agreement. With the new system, RAD dials in and monitors fuel inventory levels at the Team Systems site. With RAD's assistance, Team Systems was able to reduce their overall fueling costs and the financial burden of their UST system upgrade.
"We have over 250 vehicles on the road, running two 12-hour shifts, so fuel management is a very important part of our business. RAD's financial assistance with our mandatory upgrade was very helpful to our bottom line. And their inventory control system has been very beneficial to our day-to-day operations. We used to do stick measurements four times a day and phone-in deliveries. Now we don't have to do any of that, and we're saving money. RAD has been a real asset to our company from both a short-term and a long-term standpoint," said Ted Strauel, Vice President of Team Systems Corporation.
Closing a UST system, and switching to an off-site fuel management program, is often the best solution for many large centralized fleets.
The City of New Rochelle, New York, for example, recently removed its underground storage tanks after routine testing turned up leaks in two of its tanks. When the leaks were detected, the site was shut down and RAD Energy was called in to help. RAD responded immediately, providing the City with an off-site fueling program through its Fuelman/Gascard fuel management system. The Fuelman/Gascard system gives the City comprehensive reports and controls for their fuel and vehicle activity, it allows them to purchase tax-exempt fuel at competitive prices, and enables them to manage and bill fuel usage for individual departments. RAD provides this service at no additional cost to the City.
"We contacted RAD through the New York State contract for fleet fuel, which allows us to purchase fuel at very competitive prices. They were here the next morning. RAD approached the problem in a very professional and efficient manner, getting us on-line with the Fuelman/Gascard system within 24 hours with no break in our fueling operations, and their fueling site is only a half mile from the City yard," said Mark Zulli, Risk/Purchasing Manager, City of New Rochelle.
"We now receive fuel management reports which help us track everything, and we're able to bill back fuel costs for different departments. We're currently looking at an above-ground system through RAD's lease purchase program, or simply keeping our new Fuelman/Gascard program and getting out of the fueling business, altogether," Zulli added.
The unique flexibility of the Fuelman/Gascard system allows it to work with nearly any fueling system, fuel type, or pricing structure. It's the only fuel management system that can work with an on-site or off-site fueling system or a combination of both. It can be used with both conventional and alternative fuels, and is widely used by many government fleets to document actual alternative fuel usage. And, it works with several pricing platforms, including retail, wholesale (rack), or firm fixed pricing.
"Our company has continued to grow by helping our customers solve unique problems and by responding to individual customer needs as those needs arise. Our new fuel system financing program and fuel management programs are natural extensions of that commitment to customer service," said Donald Draizin, President of RAD Energy.
RAD Energy serves over a thousand commercial and government fleets, ranging from small fleets with 10 vehicles or less to very large fleets with thousands of vehicles in service. Some of RAD's government accounts include the State of New York, the City of New York, the New York Transit Authority, the Long Island Railroad, and the U.S. Postal Service. Some of it commercial accounts include Airborne Express, DHL Worldwide Express, Frito-Lay, Stroehmann, Entenmann's, Cablevision, and Interstate Brands.
For more information about RAD Energy, call 1-888-ALL-FUEL (255-3835). For more information about the Fuelman/Gascard network, call 1-800-877-9019 (ext. 4303) or visit their web site at: www.fuelman.gascard.com.
EDITOR'S NOTE: Location photography for the Team Systems Corporation
and the City of New Rochelle fueling systems or
RAD Energy Corporation are available upon request.
Contact Steven Levy at 914/701-2811.
