Fuel Monitoring Systems

FloNET®

Fuel Monitoring System forNMEA 2000 & CANbus Networks

The FloNET Series Fuel Monitoring System provides true “plug-and-play” connectivity with NMEA 2000 and CANbus devices including our DataLog softwareand Fuel-Tron Instrument. DataLog records, displays and transmits fuel flow and vessel data. Our instantaneous fuel flowdata allows the captain to pinpoint the most fuel efficient enginespeed under any load or operating condition. Fuel savings of20% or more are common, which helps to reduce one of the highest operating expenses for commercial marine operations.

FloNET® Interface Module

FloNET®

An equally important benefit is the considerable reduction in installation time and expense by connecting directly to a NMEA 2000 or CANbus trunk (network) line. The trunk line supplies 12V power and ground requirements. DeviceNet cabling and connectors provide “plug-and-play” connectivity.

DataLog Software

Features displayed include:• Gallons/Liters per hour• Gallons/Liters consumed• Nautical miles per gallon/

Liters per nautical mile

The FloNET Series Interface System allows other marine electronicsmanufacturers to capitalize on FloScan’s 40 years of experience and expertise in marine fuel monitoring. This collaboration benefits theend user who may have a preference for a particular manufacturer’sline of NMEA 2000 devices.

2” Fuel-Tron InstrumentFits 2 1/8” (54mm) Panel Opening

Garmin, Lowrance, and Simrad are a few of the manufacturers offering product compatibility.Models are available for diesel engines rated from 25-6000 hp.

Aluminum FlowMeters

FloScan turbine flow transducers measure flows of hydrocarbon fuels such as Number-1 Diesel, Number-2 Diesel, and other light transmitting non-corrosive liquids of similar viscosity.

NOTE: Model 235/236/238 sensors have temperature probes which measure supply and returnFlow temperatures. This allows FloScan instrumentation to compensate for thermal expansionIn the return flow.

A FloScan transducer will supply repeatable signals on these listed fuels across its stated flow Range. The transducer bearing system is rated for continuous operation at the upper end ofIts flow range.

The transducer produces a current pulse signal from an opto-electronic pickup with a preamplifier.

Description

Stainless Steel FlowMeters

On engines with fuel return lines, a transducer must be installed in both the fuel supply and fuel return lines. The correct sensor pair is determined by the fuel delivery rate from the engines lift or fuel transfer pump atMaximum engine RPM and the full load consumption rate. On most applications the operating range of the Supply transducer is higher than the operating range of the return transducer. Occasionally, especially onGenerators, the same flow range transducer is used on both the supply and return lines.

FloScan transducer assemblies are made from several major part groupings: the Flow Homogenizer Assembly, the Pulsation Damper assembly, the combination Flow Homogenizer/Pulsation DamperAssembly and the proportional Bypass Block/Transducer assembly.

Flowmeter Installation Notes

PRIMARY FILTER

FORWARD FLOW SENSOR

OFF-ENGINEBOOST

OR PRIMING PUMP(if used)

PRESSUREREGULATOR

(if used)

TANK

RETURN FLOW SENSOR RETURN FUEL COOLER(if used)

ENGINE

Liquid enters the Flow Homogenizer canister on the Forward Sensor Assembly.Or the Flow Homogenizer/Pulsation Damper canister on the Return Sensor Assembly. After exiting the canister, liquid then enters the Proportional Bypass Block where it splits. Part of the liquid flow is forced down through the turbine flow transducer. Liquid enters the transducer’s flow chamber tangentially following a helical flow path. Rotational velocity of the liquid in the transducer is directly proportional to flow rate. A neutrally buoyant rotor spins with the liquid between V-jewel bearings. Rotor movement is sensed when notches in the rotor interrupt an infrared light beam between an LED and phototransistor.

After passing through the transducer, liquid is forced up into the Bypass Block where it joins the rest of the liquid flow. On the forward Sensor Assembly, liquid passes through the Pulsation Damper before exiting the assembly. On the Return Sensor Assembly, fuel exits the Bypass Block and returns to tank.

Fuel Flow Schematic

Geo-Fencing

DataLog comes pre-loaded with files to allow logging of fuel used in any of the regions subject to taxes from the Inland Waterways Revenue Act. DataLog will record a vessel entering, exiting, or moving between individual tax zones.Minute-by-minute spreadsheet reports can easily calculate the amount of fuel burned in a specific taxable region. The TaxLog feature will also allow users to set up their own geographic zones.

TaxLog Feature

• Simplifies fuel tax reporting by recording fuel consumption in all 27 Inland River Taxable Zones• Basic rectangle-area recording requires NE and SW latitude and longitude coordinates for establishing zones• KML-file option available for uploading any shape areas for specified zones

TaxLog Feature for DataLog Software

Geo-FencingFuel Taxed Waterways

Sources: Public Law 95-502, October 21, 1978. Public Law 99-662, November 17, 1986.

1. Alabama-Coosa Rivers: From junction with the Tombigbee River at river mile (hereinafter referred to as RM) 0 to junction with Coosa River at RM 314. 2. Allegheny River: From confluence with the Monongahela River to form the Ohio River at RM 0 to the head of the existing project at East Brady, Pennsylvania, RM 72. 3. Apalachicola-Chattahoochee and Flint Rivers (ACF): Apalachicola River from mouth at Apalachicola Bay (intersection with the Gulf Intracoastal Waterway) RM 0 to junction with Chattahoochee and Flint Rivers at RM 107.8. Chattahoochee River from junction with Apalachicola and Flint Rivers at RM 0 to Columbus, Georgia at RM 155 and Flint River, from junction with Apalachicola and Chattahoochee Rivers at RM 0 to Bainbridge, Georgia, at RM 28. 4. Arkansas River (McClellan-Kerr Arkansas River Navigation System): From junction with Mississippi River at RM 0 to Port of Catoosa, Oklahoma, at RM 448.2. 5. Atchafalaya River: From RM 0 at its intersection with the Gulf Intracoastal Waterway at Morgan City, Louisiana, upstream to junction with Red River at RM 116.8. 6. Atlantic Intracoastal Waterway: Two inland waterway routes approximately paralleling the Atlantic coast between Norfolk, Virginia, and Miami, Florida, for 1,192 miles via both the Albermarle and Chesapeake Canal and Great Dismal Swamp Canal routes. 7. Black Warrior-Tombigbee-Mobile Rivers: Black Warrior River System from RM 2.9, Mobile River (at Chickasaw Creek) to confluence with Tombigbee River at RM 45. Tombigbee River (to Demopolis at RM 215.4) to port of Birmingham, RM's 374-411 and upstream to head of navigation on Mulberry Fork (RM 429.6), Locust Fork (RM 407.8), and Sipsey Fork (RM 430.4). 8. Columbia River (Columbia-Snake Rivers Inland Waterways): From the Dalles at RM 191.5 to Pasco, Washington (McNary Pool), at RM 330, Snake River from RM 0 at the mouth to RM 231.5 at Johnson Bar Landing, Idaho. 9. Cumberland River: Junction with Ohio River at RM 0 to head of navigation, upstream to Carthage, Tennessee, at RM 313.5. 10. Green and Barren Rivers: Green River from junction with the Ohio River at RM 0 to head of navigation at RM 149.1.

Geo-FencingFuel Taxed Waterways

Sources: Public Law 95-502, October 21, 1978. Public Law 99-662, November 17, 1986.

11. Gulf Intracoastal Waterway: From St. Mark's River, Florida, to Brownsville, Texas, 1,134.5 miles. 12. Illinois Waterway (Calumet-Sag Channel): From the junction of the Illinois River with the Mississippi River RM 0 to Chicago Harbor at Lake Michigan, approximately RM 350. 13. Kanawha River: From junction with Ohio River at RM 0 to RM 90.6 at Deepwater, West Virginia. 14. Kaskaskia River: From junction with Mississippi River at RM 0 to RM 36.2 at Fayetteville, Illinois. 15. Kentucky River: From junction with Ohio River at RM 0 to confluence of Middle and North Forks at RM 258.6. 16. Lower Mississippi River: From Baton Rouge, Louisiana, RM 233.9 to Cairo, Illinois, RM 953.8. 17. Upper Mississippi River: From Cairo, Illinois, RM 953.8 to Minneapolis, Minnesota, RM 1,811.4. 18. Missouri River: From junction with Mississippi River at RM 0 to Sioux City, Iowa, at RM 734.8. 19. Monongahela River: From junction with Allegheny River to form the Ohio River at RM 0 to junction of the Tygart and West Fork Rivers, Fairmont, West Virginia, at RM 128.7. 20. Ohio River: From junction with the Mississippi River at RM 0 to junction of the Allegheny and Monongahela Rivers at Pittsburgh, Pennsylvania, at RM 981. 21. Ouachita-Black Rivers: From the mouth of the Black River at its junction with the Red River at RM 0 to RM 351 at Camden, Arkansas. 22. Pearl River: From junction of West Pearl River with the Rigolets at RM 0 to Bogalusa, Louisiana, RM 58. 23. Red River: From RM 0 to the mouth of Cypress Bayou at RM 236. 24. Tennessee River: From junction with Ohio River at RM 0 to confluence with Holstein and French Rivers at RM 652. 25. White River: From RM 9.8 to RM 255 at Newport, Arkansas. 26. Willamette River: From RM 21 upstream of Portland, Oregon, to Harrisburg, Oregon, at RM 194. 27. Tennessee-Tombigbee Waterway: From its confluence with the Tennessee River to the Warrior River at Demopolis, Tennessee.

The Ultimate Tracking System for At-Sea Vessel Fuel Consumption

The data recorded on the PC is transferred to acustom-programmed FloScan flash drive as a CSVspreadsheet file. The flash drive syncs with the latest“unrecorded” data each time the drive is inserted.the daily log files can also be emailed automaticallyfrom the vessel’s PC using our DataNET program.

NMEA 2000 Mini Backbone

NMEA 2000 Micro Backbone

Flowmeter Installations

Series 7500 Series 8500 Series 9500

Multifunction Gallons per hour Gallons consumed Engine Hours RPM

Fuel Log Gallons per hour Gallons cumulative Reset Gallons Reset Hours

GPS Interface system Gallons per hour Miles per gallon Gallons consumed Engine hours RPM

Multifunction Series

Commercial fleets worldwide are installing FloScan to obtain a complete record of vessel fuel consumption for billing purposes and to improve fuel economy up to 20%. Here in the U.S., inland tug and barge operations are now using FloScan’s new GeoFencing feature to document fuel consumption totals on a district-by-district basis for fuel taxation purposes. Our latest software development, DataLog, combined with our FloNET Fuel Monitoring System provides these features at a fraction of the cost of the competition.

With more than 750,000 installations worldwide over the past 40 years, FloScan Fuel Monitoring Systems set the industry standard while also being the safest and most cost effective solution on the market today.

Engineered for diesel engines – developed specifically for diesel engine flow monitoring

No fuel bypass line required – internal bypass design makes it immune to fuel blockage

Low pressure drop – meets all engine manufacturer fuel restriction specifications

Multipoint calibration – systems are calibrated at 6 flow points for superior accuracy

Repeatability – 0.5% guaranteed Range - fits most diesel engines up to 6000 HP Cost – priced up to 50% less than the competition

Flowmeter Features

750,000+ Installations Worldwide

Over the Past 40 Years

Current IRS Audit MethodInformation Document Request (IDR)The IDR should be concise and list the records needed to ensure that the taxpayer’s return has been correctly filed. The IDR should be limited to requests for documents only. Questions about the taxpayer’s business operations should generally not be included on the IDR. Note that not all of the items listed should be requested in every case. Issue follow-up IDRs as needed throughout the audit. Also note that regulations require that specific records are required to be maintained by operators of vessels used in commercial waterway transportation.

• Ship log (Boat log) This required record (by the U.S. Coast Guard) should be available for each vessel operated. A daily record of boat activities such as; movement, fueling, river position, time of travel, lock activity, repairs, cargo loading and unloading. This is a primary audit tool that should be requested on each audit.• Manufacturers “specs” record. This record, which is published by the diesel engine manufacturer, details

the manufacturer’s professional position detailing the “gallons per hour” that the diesel engine could burn during normal operations. This record will most likely be used  by the taxpayer to calculate its non-taxable fuel usage. This “specs” record should be used to test or evaluate the “reasonableness” of the taxpayer’s calculations regarding non-taxable fuel use.

• Lock pass through record. These records can be obtained from the lock master (U.S. Corps of Engineers) at the specific locks that the vessels pass through. These records can help substantiate the taxpayer boat/ship logs.

• Waterway user boat operation report for federal excise taxSome larger towing companies may prepare a detailed fuel operating report that is usually indexed by vessel number. This report will detail vessel operating hours, non-taxable fuel use (on-board generators), taxable (propulsion on the inland waterway) use, and other detailed fuel use information. Percentages of taxable and non-taxable fuel use, calculated by the taxpayer will appear on these records. Agents must review these percentages for “reasonableness”. These records often will become very important in determining federal excise tax.

Current IRS Audit MethodExamination of RecordsReview types of records that are relevant to the taxpayers operations. Refer to Section I. C. “Information Document Request” for the types of records that might be requested during the examination. Keep in mind that types of accounting systems vary among taxpayers. In some instances taxpayers may use sophisticated computer accounting program that allow for the production of very detailed reports. Others may maintain financial accounting records manually.

Examine vessel logsEach entity that operates vessels on taxable waterways are required to maintain records sufficient to establish to the satisfaction of the Commissioner the amount of fuel used for taxable purposes. Those records may include, when relevant to establish liability:

• Quantity of fuel and date of acquisition of all liquid fuels acquired for both taxable and nontaxable purposes, whether delivered to storage tanks or tanks on a vessel;

• Date and quantity of fuel pumped into tanks on each vessel;• Identification number or name of each vessel using fuel; and• Departure time, departure point, route traveled, destination, and arrival time for each vessel.

Because of the above requirement, it is imperative that the examiner thoroughly review vessel logs. The number of log books reviewed will depend upon the number of vessels operated by the entity under exam and the volume of entries entered into each log. Therefore, sampling procedures may be warranted when reviewing log books. It may be necessary to ask the taxpayer for an explanation of entries recorded in the logs.

A review of vessel logs should focus on vessel locations of operation and the time of operation on taxable waterways. This focus must be conducted with the understanding that the vessel’s log is the primary record source for determining tax liability.

Synopsis

With over 1000 vessels operating within the U.S. inland waterways system, the current IRS audit method using manual techniques for determining "reasonableness“ as the benchmark for reporting fuel consumption totals has the potential for misinterpretation.

With FloScan, reasonableness is replaced with accurate fuel consumption records that can be traced to minute-by-minute GPS recording of vessels operating within the 27 taxable river zones and the precise amount of fuel consumed by the main propulsion engines.