Why Measured Fuel Data, Not ECM Estimates, Should Be the Standard in Generator Permitting

Andrew Holmberg, Chief Engineer and Director of Innovation at ESI Total Fuel Management, explains why the industry should treat direct fuel monitoring not as a compliance burden, but as a baseline best practice.
Aug. 22, 2025
4 min read

As the data center industry grows in scale and environmental scrutiny, the permitting of backup/emergency generators is undergoing a transformation. In a growing number of jurisdictions, permitting authorities are allowing operators to report actual fuel throughput—rather than run-time hours—as the basis for generator compliance.

At present, roughly 10 or so U.S. states and jurisdictions have adopted some form of consumption-based permitting for stationary engines. These include states like Virginia, California, and Maryland, where high data center density and air quality concerns have led to more granular monitoring requirements. In these jurisdictions, permitting based on gallons burned—instead of hours run—is a more accurate and emissions-reflective approach, especially for low-load or emergency-only generators.

But while throughput-based permitting is not yet, universal, the underlying principle it supports—direct measurement of generator fuel use—is relevant across all regulatory frameworks. It offers operational benefits, compliance transparency, and lifecycle accountability regardless of location.

ECMs Were Never Designed for Regulator Monitoring

Many operators today rely on the engine’s internal Engine Control Module (ECM) to report fuel consumption.  While the ECM can provide useful data points, its readings are not direct measurements—they are internally calculated based on manufacturer-defined inputs like engine load, injection timing, ambient temperature, and assumed fuel characteristics.

The ECM calculates consumption based on assumptions embedded in the engine’s design logic. It does not account for variations in:

  • Fuel quality or blend (e.g., biodiesel or renewable diesel),
  • Sensor drift over time,
  • Transient loads or low operating hours, or
  • Environmental conditions that affect burn efficiently.

Critically, ECMs are not calibrated to NIST-traceable standards, not inspectable by regulators, and not designed for emissions reporting under permitting conditions. They are an operational tool—not a compliance-grade measurement device.

ECMs Estimate

Recognizing the limitations of ECM accuracy, some engine manufacturers instruct operators and consultant to apply a margin of error to fuel consumption estimates when using ECM data for permitting. This adjustment is meant to “cover the bases” and compensate for discrepancies between estimated and actual fuel usage in real-world conditions.

While conservative on its face, this practice underscores a deeper issue: if the data in inherently uncertain enough to require a correction factor, it should not be treated as a substitute for direct measurement. In large installations with dozens of generators, a 5% variance in estimated fuel throughput can significantly impact reported emissions totals—and complicate enforcement and compliance confidence for regulators.

The Importance of Measured Data, Even Outside Throughput States

Even in states that do not currently permit based on fuel throughput, accurate measurement of generator fuel use supports several key objectives:

1. Better Run-Time Estimates for Hour-Based Permits

Operators permitted on an hour-based limit often test at low load, which consumes less fuel that rated capacity. Measuring actual gallons burned helps correlate those run hours to real emissions impact—offering better forecasting, reporting, and operational insight.

2. Support for Voluntary Emissions Reporting

Corporate sustainability teams increasingly report Scope 1 emissions from stationary combustion. Gallons burned—not estimated engine hours—form the basis of this reporting. Measured data ensures ESG accuracy and audit readiness.

3. Future Regulatory Flexibility

Adopting metering technology today positions operators for seamless compliance tomorrow—especially if their jurisdiction transitions to fuel-throughput-based permitting, or if a federal framework emerges.

Emergency Generators: Low Runtime, High Impact

Emergency-only generators, despite limited run hours, play a central role in many data center environmental profiles. These units:

  • Are often located in air quality nonattainment zones,
  • Run at varying load levels that distort hourly estimates,
  • May be used simultaneously across large campuses during outages or testing.

Even with <100 hours/year operation, these engines can burn thousands of gallons annually—and their cumulative emissions matter. For these reasons, the case for direct measurement is strongest where impact is least visible.

Moving Toward a Smarter, Measurable Standard

Regardless of whether a state currently permits based on fuel throughput, the rationale for measured, auditable, and verifiable fuel data remains constant. ECM-based approximations, while convenient, do not provide the transparency or traceability required in today’s environmental landscape.

As more jurisdictions adopt throughput-based air permitting—and as sustainability, air quality, and data integrity rise in importance—it is in the industry’s interest to treat direct fuel monitoring not as a compliance burden, but as a baseline best practice.

About the Author

Andrew Holmberg

Andrew Holmberg is Chief Engineer and Director of Innovation at ESI Total Fuel Management, where he leads engineering, product development, and technical strategy for mission-critical fuel systems. This article was developed in collaboration with Brittani Clarke Clayman, Director, Marketing and Communications, ESI Total Fuel Management.

ESI Total Fuel Management serves the global data center community with expertise and leadership, providing innovative fuel solutions that increase generator uptime and ensure environmental compliance in response to fuel-related threats. 

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