FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
With less than 1 month until the change in red diesel legislation facilities managers face several challenges.
The economical replacement of existing reserves with alternative fuel options is coupled with the pressure to perform the switch while maintaining 24/7 customer service.
Beyond April, your approach to red diesel replenishment now could shape your client’s infrastructure’s resilience, reliability, and performance for the long term as well as positioning them as a leading organisation in the race to Net-Zero.
Kris Maxwell, National Account Manager, FM, Adler and Allan (a registered dealer in controlled oils) discusses what you need to do to ensure your operation is compliant from April 2022 and beyond.
Stock usage
According to the latest guidance you must not purchase red diesel or put any more into non-exempt vehicles, machines or appliances after the rules change on 1st April 2022.
Given that organisations aren’t permitted to stockpile red diesel you need to calculate your stock usage and manage down your supplies and rundown period.
Fuel uplift
When you have run down your stock you may need to uplift any remaining fuel and flush the lines to allow for cleaning and inspection of the tank. HMRC updated its guidance that stock purchased before 10th June 2021 could still be used beyond April 1st, 2022, if the asset is required for back-up power generation. You should confirm with HMRC on whether your stock can continue to be used after April 2022.
Fuel sampling and polishing
If your remaining fuel is heavily contaminated, we can arrange to uplift this and dispose of it in a safe and legal manner. If you are continuing to use existing fuel stocks, we can sample and polish this for you to ensure it is effective when you come to rely on it.
Tank inspection and clean
It is important not to contaminate new high value fuel by putting it into a contaminated tank so a tank inspection and clean would be beneficial.
An expert will clean your tanks and look out for any signs of damage or interference to your tank or pipework, ensuring repairs are carried out immediately.
Ensuring compliance after April 1st
The change in red diesel legislation is part of a much bigger picture as it is one of the first deadlines in the decarbonisation plan by the Government to ensure the UK achieves Net-Zero by 2050.
As a facilities manager your responsibility doesn’t stop come April.
Ongoing tank maintenance
Whatever fuel you are using for your back-up power generation you should consider a regular programme of fuel sampling and polishing to ensure it is effective when you come to rely on it.
Regular tank inspections will also check the integrity of your tank. If issues are found, repairs and remediation such as tank re-lining might be advisable to extend the life of your asset.
Additional security
Due to the higher value nature of the assets following the switch, there could be a higher risk of theft and attempted theft.
Remote monitoring systems as well as security measures such as CCTV will help you manage the security of your new higher value assets.
Theft can also inadvertently cause a spill of product which can incur potential remediation, regulatory, legal, and reputational costs as well as potential downtime to your operation.
A recommended course of action would be to secure a spill response contract to ensure a spill can quickly and effectively be remediated.
Responsibility and sustainability
The change to red diesel legislation is a first step on the journey towards decarbonisation and ultimately the 2050 Net-Zero goal.
Responsible and sustainable companies are taking action to ensure they play their part in the collective goal by changing their entire fleet to EV.
Companies beginning their journey to Net-Zero with energy and fleet audits to understand the impact of changing from white diesel to a “cleaner” alternative.
Through improved data capture and operating practices combined with investment in new and emerging technologies, a business can significantly reduce its energy consumption and carbon emissions.
Ensure compliance for April 2022 and beyond
The clock is ticking to ensure you are compliant. There is still time if you act now to ensure your sites are ready for the switch.
We are your first-choice environmental partner to ensure compliance and the integrity of your client’s assets from April and beyond.
You can find out more about the changes to red diesel legislation by contacting HMRC directly on: reddieselentitlement@hmrc.gov.uk / oils.policymail@hmrc.gov.uk
