US DHS issues guidance on DEF industry essential status

More than 20 US states have imposed lockdown measures that include closing all businesses except those deemed essential, but whether this includes diesel exhaust fluid (DEF) is not yet known.

The Department of Homeland Security (DHS) lists examples of essential services as guidance for state governors, but this only infers DEF should be included as it supports the transportation industry. This has raised some concern over whether this will impact the DEF supply chain.

The American Petroleum Institute (API) and others are advocating for the DEF business to be classed as an essential service, as DEF is required to run all diesel trucks sold in the past 10 years. These trucks represent over 70pc of the active US Class 8 fleet that is hauling essential goods around the country.

Based on DHS guidance, we expect DEF production and distribution in the US to continue as before during any state shutdowns. But some companies will struggle to operate with the epidemic itself, if enough staff members need to self-isolate.

It is important to note that this guidance is not a federal rule or standard. Some states may adopt it, but it remains a recommendation that is entirely advisory in nature. Until a federal rule is made, the decision as to how DEF supply will continue rests in the hands of producers and distributors. Some may have to prove that DEF is necessary for the emissions-compliant running of the US truck fleet, otherwise its supply chain may be, as with so much else now, uncertain.

By Will Talbot