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Congress in Recess But the
Energy Debate Continues
Outlook for Federal LIHEAP
Funding
Outlook For Anti-Excessive
Speculation Bills
Republicans Continue To Push
Off-Shore Drilling
You Can Help -- Meet With Your
Members of Congress This
Recess!
PMAA Corrects Sen. Sessions
After False Heating Oil Comments
Rep. Lynch Introduces Bill to
Tackle Credit Cards Fees at the
Pump
U.S. DOT Offers Free Hazmat
Seminar In Braintree, Mass.
Aug 12-13
TSA Readies New Scan
Technology for Reading Driver
TWIC ID Cards
IRS Proposes Rule Clarifying
Alcohol And Biodiesel Tax Credits
NPR Story Covers Heating Oil
Issues
Mass. Oilheat Council Golf
Tournament is August 18th
-- Register Today!
Under-Radar Futures Trading
Reclassification Reveals
Big Player
Industry News
News From NEFI
News from NORA
U.S. & Regional Fuel Stocks
Link to N.E. State News
Visit the NEON Archive
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Please Support Silent Auction At 2008 Visions Conference--Items Needed
NEFI will be sponsoring a "Silent Auction" fundraiser at the 2008 VISIONS Conference (www.visions2008.org) to benefit PMAA's Small Business Committee (SBC) Political Action Committee (PAC). This PAC supports candidates who share our industry's national goals. The Silent Auction will run throughout the VISIONS Conference. PLEASE SUPPORT THE EFFORT BY DONATING AN ITEM TODAY! Contact Jim Collura at (617) 923-5016 or jimcollura@nefi.com to inquire about donating an item or making a direct contribution to the PAC.
A list of donated items to date will be listed in next week's issue. Thank you in advance for your support! Find out more about the Auction here.
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NEFI CONTACT: Jim Collura, VP for Public Policy (jimcollura@nefi.com)
Congress in Recess But the Energy Debate Continues
Congress retired for their annual August recess last Friday without passing any immediate-term solutions for sky-high energy costs. Congressional leaders in both chambers were unable to advance either the anti-excessive speculation bill or emergency LIHEAP funding due in large part to disagreements over whether or not to consider other energy measures being advocated by the Republican minority--primarily, a lifting of the ban on off-shore drilling. THE FAILURE TO COMPROMISE ON A SOLUTION IS A FAILURE FOR BOTH PARTIES.
Outlook for Federal LIHEAP Funding
Emergency LIHEAP funding is now a very urgent and pressing issue. LIHEAP FUNDING MUST BE DOUBLED in order to insure adequate resources for the coming winter. A strong bi-partisan bill, the Warm in Winter, Cool in Summer Act (S.3186) introduced by Senator Sanders (I-VT) with 52 cosponsors failed a vote late last month; not because it lacked votes, but because Republicans blocked the measure in protest over off-shore drilling. President Bush this week also promised to veto this legislation should it come across his desk. The only hope for this legislation is to either (1) gain a veto-proof number of supporters or (2) be attached as an amendment to must-pass legislation. You can help build support for additional LIHEAP funding by taking action now!
Outlook For Anti-Excessive Speculation Bills
The House and Senate spent the last three weeks heavily debating bipartisan measures that would go a long way to making the futures markets more transparent, accountable and subject to anti-manipulation regulations. They would also add funding and personnel to the federal agency in charge of monitoring the markets. Passage ultimately failed, however, due to Republican protest over not being allowed to bring an off-shore drilling vote to the floor - killing the anti-speculation bill in the Senate and stalling it in the House of Representatives. Unless Senate leaders can compromise on a solution, it is unlikely the bill will be considered again in September. Additionally, LOBBYING AGAINST THE BILLS BY WALL STREET INTERESTS IS OVERWHELMING MEMBERS OF CONGRESS according to sources. NEFI is currently working with PMAA and coalition allies on a broad strategy to promote grassroots lobbying through promotion of the www.stopoilspeculators.com site. Bill stuffers, pump toppers and POS brochures are on the way! You can help by obtaining this material through your state association and also by keeping the pressure up on your members of Congress (take action now!)
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Republicans Continue To Push Off-Shore Drilling
Republican protest over off-shore drilling continued last Friday and into this week as GOP House members continued to give speeches on the need for off-shore and Alaskan oil drilling - even though the lights and microphones were turned off. They chastised Democratic leaders for not holding a vote on off shore drilling (Democratic leaders continued to blame Republicans for blocking anti-speculation, emergency LIHEAP funding and renewable energy tax break legislation). President Bush and Republican Presidential candidate John McCain are both pushing heavily for off-shore drilling as an immediate solution to oil prices, while Democratic Presidential Candidate Barak Obama has pushed futures market reform, aggressive conservation and a release from the Strategic Petroleum Reserve.
You Can Help -- Meet With Your Members of Congress This Recess!
With members of Congress in their home states and districts over the next four weeks, you should take the time to meet with them. THEY NEED TO HEAR YOUR STORY. Even if the member has been supportive of our issues, it is important that EVERY MEMBER be visited this recess and pressed to act, despite fierce opposition to our cause.
To arrange a meeting, follow these simple steps:
(1) Visit www.capwiz.com/nefi and enter your zip code under "Find Your Officials" on the right side. If you live in a split district, it may bring you to a screen asking for the last four digits of your zip code or street address.
(2) In the next screen, under "President and Congress," click on each name for Senators and your Representative to get their member info page.
(3) In the member info page, click the tab "contact" and call the main state or district phone number listed on that page.
(4) When you call, tell them you would like to set up a meeting and ask for the scheduler. Tell the scheduler who you are and that you have insight on the energy crises and how it is impacting your customers, and practical, immediate-term solutions.
(5) ON THE PHONE AND IN OFFICE WITH THE MEMBER, BE HONEST AND FRANK -- DON'T HOLD BACK. Your voice is the most effective we have in the industry!
PMAA Corrects Sen. Sessions After False Heating Oil Comments
Last week, PMAA sent a letter to Senator Jeff Sessions (R-AL) regarding his comments made on the Senate floor last Saturday, July 26, in which the senator expressed his concerns over the Low Income Home Energy Assistance Program (LIHEAP). Senator Sessions complained that LIHEAP only benefits Northeast states and that heating oil is "dirty." In response, PMAA sent a letter to clarify the inaccuracies of Senator Session's floor statement. In the letter, PMAA highlighted that the state of Alabama would receive a substantial amount of LIHEAP funding, more than four Northeastern states. The letter also highlighted the National Oilheat Research Alliance (NORA) accomplishments which has developed ways to increase furnace, water heater and boiler energy efficiency. Finally, the letter addressed BioHeat(r) and its growing presence in the heating oil industry which stated, "Bioheat is a cleaner, more sustainable heating fuel that will help fight our dependence on foreign oil. If every oilheat household in America used a five percent blend BioHeat, 400 million gallons of oil would be conserved each year." It is unclear if S. 3186, the "Warm in Winter and Cool in Summer Act," would be brought to the floor again after the Senate returns to work in September.
Rep. Lynch Introduces Bill to Tackle Credit Cards Fees at the Pump
Last week, Congressman Stephen Lynch (D-MA) introduced, "The Gas Pump Fair Payment Act of 2008" (H.R.6620) which will aid retail gas station owners and consumers. The bill amends the Truth in Lending Act to limit the amount of the interchange-fee charged on the sale of motor vehicle fuel for six months from the date of enactment. The amended language will cap the fees paid from the current 2.5 percent or more to one percent. Specifically, this will lower the roughly ten cents per gallon fee to around four cents per gallon. In a related story, Sens Cardin (D-MD), Snowe (R-ME) and Harkin (D-IA) have asked the Senate Small Business Committee and the General Accountability Office (GAO) to do a study of credit card interchange fees and their impact on retailers.
Contact: Mark Morgan, NEFI Regulatory Counsel (mark@nefi.com)
U.S. DOT Offers Free Hazmat Seminar In Braintree, Mass., Aug 12-13
The U.S. Department of Transportation's Office of Hazardous Materials Safety will sponsor a Multimodal Hazardous Materials Transportation Training Seminar at the Sheraton Braintree Hotel on August 12-13, 2008. This outreach seminar provides an opportunity to educate the industry on the use of the hazardous materials regulations and is a forum to discuss the latest developments and issues regarding hazardous materials transportation. It is anticipated that over 400 shippers, carriers, enforcement personnel, and other individuals involved with the transportation of hazardous materials will attend. The seminar will also include hazmat specialists from the Federal Aviation Administration, Federal Motor Carrier Safety Administration, Federal Railroad Administration, PHMSA, United States Coast Guard, FBI, and Massachusetts State law enforcement. Issue breakout descriptions are available online here. Registration is FREE by clicking here or calling (202) 366-4900.
TSA Readies New Scan Technology for Reading Driver TWIC ID Cards
The Transportation Security Administration (TSA) has released details on the process requiring that smart card readers must pass through to be approved for reading biometric information imbedded in the estimated 1.2 million Transportation Worker Identification Credential (TWIC) cards issued to select commercial motor vehicle drivers. Drivers hauling petroleum products need TWIC cards for unescorted access to secure areas of U.S port facilities and vessels and other private facilities, such as rail yards that are implementing the program on their own. The biometric information obtained by the optical scan system will determine whether drivers (including petroleum transporters) are allowed access into ports. In addition, the scan system will likely be adopted by private facilities and state CDL licensing agencies in the near future.
The TSA has been criticized for moving ahead with TWIC credentialing without having an optical scan system already in place. Critics say that the TWIC ID should have been designed to meet the optical scanning equipment rather than having the equipment designed to the ID specifications. The hand held readers first will face simple evaluation testing to ensure they can read the TWIC cards in different situations. The readers that make the cut will be added to a list that several ports participating in TSA's pilot program will then test to see how they fit into infrastructure and business models. Meanwhile, the government will perform testing to see how they perform in various environments. Readers that pass the final reader assessment can be added onto the final completed list. Despite difficulties with the technology, the TSA said the scanners will be ready by April 15, 2009, the date by which all drivers entering ports designated by the TSA must have a TWIC ID card.
IRS Proposes Rule Clarifying Alcohol And Biodiesel Tax Credits
The Internal Revenue Service issued a proposed rule this week that clarifies the federal alcohol and biodiesel tax credit program implemented by the American Jobs Creation Act of 2004. The alcohol and biodiesel credit program replaced the old IRS reduced rate excise tax schedule for certain gasohol concentrations. The proposed rule is important to petroleum marketers because it consolidates and makes permanent the various agency interpretations and notices pertaining to the federal alcohol and biodiesel tax credit. Specifically, the rule adopts as regulations IRS Notices 2005-4, 2005-62, 2005-80, 2006-92, 2007-37 and 2007-97. The proposed rule affects producers of alcohol, biodiesel, and renewable diesel; alternative fuel mixtures relating to those products; sellers and users of alternative fuel; and people liable for the tax on removals, entries, or sales of gasoline or diesel fuel. Fortunately there is little in the new provisions that would have a negative impact on petroleum marketer/blenders. However, there are some ambiguous provisions that require further study and consultation with IRS rulemakers before the proposed rule's full impact is known. PTSA is in the process of evaluating the full impact or the proposed rule on petroleum marketer/blenders and will submit comments accordingly. The comment period closes 9/29/08. The proposed rule is published in the July 29th edition of the Federal Register.
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NPR Story Covers Heating Oil Issues -- Good Reason to Attend Visions 2008!
A recent National Public Radio (NPR) news story on the challenges facing small business heating oil dealers calls them the "middle men" between global oil traders and the consumer. The story has the industry buzzing. Steven Kuno of Kuno Oil Company (Canton, NY) and his staff were interviewed for the piece, which was fair and covered all the challenges facing oil dealers these days. In fact, it did a great job covering the issues that will be addressed at the 2008 VISIONS CONFERENCE! (www.visions2008.org) To hear the radio piece, click here and then click "Listen Now" (audio required)
Mass. Oilheat Council Golf Tournament is August 18th -- Register Today!
The Massachusetts Oilheat Council is holding their 17th annual Golf Classic at the Pinehills Golf Club in Plymouth, Massachusetts August 18th. The tournament will be held on Pinehills' beautiful Jones course with a shotgun start at 9 a.m. and dinner at 2:30 p.m. Each year, MOC's golf event draws a big crowd. MOC expects a great turn out again this year, and fully intends on providing all golfers and sponsors with another premier event. Sponsorship opportunities are still available. If you wish to golf with MOC or simply come for dinner, you can access the registration by clicking here, by calling MOC directly at 781.237.0730 or emailing afrazee@massoilheat.org. See you on the green!
Under-Radar Futures Trading Reclassification Reveals Big Player
Reuters has reported that the Commodity Futures Trading Commission (CFTC) this week reclassified certain commercial (physical hedger) positions in the market as non-commercial (or non-physical). This reclassification means that oil speculators now control nearly 48% of the open interest in NYMEX crude oil futures and options. This revision in data tracking, which was made unceremoniously and with little media attention, increases the number of futures contracts and options held by noncommercial investors (people who don't actually handle oil) by almost 25%. Prior to this, it was thought that noncommercial speculators owned only about 38% and the rest was attributed to legitimate commercial hedgers. This reclassification by the CFTC drastically alters the energy debate. According to Phil Flynn of Alaron Trading in Chicago: "That's huge when you look at the numbers. It changes the whole way you look at the recent moves in this market." The shocking part is that even though multiple positions were changed, only one actual trader was reclassified! This means that one individual trader could have held up to 460 million barrels! Though there was little fanfare surrounding this development, it does raise concerns over market liquidity and the role of non-hedgers in the marketplace. Read the full Reuters (8/5/08) story here.
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Learn How to Grow and Diversify Your Fuel Business in Challenging Times
 • The 2008 Visions Conference will be held at the Hilton Boston Logan Airport Hotel in Boston, MA on September 8-10, 2008. For registration, sponsorship or tabletop exhibitor reservations, go to www.visions2008.org. View event details here. Call Tracy Goodwin, NEFI VP for Events,at 617-923-5015 for more information or email tracy@nefi.com.
Click here to register now.
Click here to view the conference agenda.
• The 2009 North American Heating and Energy Expo is scheduled for June 9-10, 2009 at the Hynes Convention Center. Booth sales are underway and the most prominent spaces are going fast. Associate members and past exhibitors have priority, so make sure to reserve your booth space now! For information and to reserve online go to www.nefi.com/expo.
• NEFI's 2008 Fall Energy Conference to Napa Valley, September 23–28, 2008. The trip is getting close to selling out, but there are a few spots left! Act fast while space is still available. Tracy is currently working to arrange a possible refinery tour for Friday, Sept. 26. Call him at 617-923-5015 or email tracy@nefi.com with questions or view the details about the trip and see a registration form here. Thirty NEFI members and friends are already registered for this multi-day event, which includes private a tour of a local Valero refinery.
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Welcome New NEFI Members:
Allied Fuel, Inc.
Mr. Rob Napolitano
PO Box 951
Littleton, MA 01460
P: 978-486-8338
F: 978-742-4929
E: alliedfuel@verizon.net
W: www.alliedfuel.com
Allied Fuel is a Retail Fuel Dealer also providing Diesel-over the road Heating Oil
Blue Cow Software
Mr. Mark Nardone
7 Kimball Lane Ste. C4
Lynnfield, MA 01940
P: 888-499-2583
F: 781-623-0087
E: info@bluecowsoftware.com
W: www.bluecowsoftware.com
Blue Cow provides Computer Software.
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Sponsor This Newsletter!
NEFI would like to thank this month's NEON Sponsor, Irving.
For maximum exposure, your company logo and link should be on the front page of this newsletter next month. View sponsorship info and enrollment form. Call Tracy at 617-923-5015 or email tracy@nefi.com for more information.
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NEFI Member Benefit Spotlight
The NEFI Legislative And Regulatory Action Center
One of the many benefits provided to NEFI members is access to the Legislative and Regulatory Action Center, paid for by generous contributions by members like you. The Action Center works to defend the interests of the industry in Washington, DC and here in New England. It also provides comprehensive compliance assistance, news and updates on federal regulations that affect you! The industry is facing greater challenges and opportunities as ever before, and the Action Center is looking out for your interest!
• A skilled government relations staff that coordinates communication efforts with the U.S. Congress, federal agencies and numerous national organizations and coalitions!
• Experienced Regulatory Counsel in Washington, D.C. provides updates and expert guidance on impending or proposed federal regulations!
• Easy to understand compliance kits, bulletins and news alerts that help you come into compliance with new and existing rules and regulations, saving you time and money!!!
• Legislative Action Alerts and our new online Legislative Advocacy Center to keep you informed of urgent and up to the minute developments in Congress and puts the power of action in your hands!
For a complete list of benefits or to make a contribution today contact David at 617-923-5022 or dave@nefi.com. To continue our efforts, we depend on the generosity of our members. You can make the difference. We appreciate and thank you for all your help and support.
Join or renew membership with NEFI today! Click here, or contact Joanne Sharkey, NEFI Membership Coordinator at (617) 924-1000 or joanne@nefi.com.
View NEFI Membership Information
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NORA Adds Kids' Page to www.OilheatAmerica.com
National Oilheat Research Alliance is excited to announce the new interactive website, geared towards encouraging learning about Oilheat and Energy Conservation. The website's target audience is children ages five to twelve, parents and teachers. The new kids’ page is bright, fun, and easy to navigate. At the same time it carries some very important messages for young kids, highlighting the importance of taking care of the earth as well as exciting games to keep kids interested in learning. The site also has a section for parents and teachers. This section gives teachers resources for lesson plans and it gives parents tips on how to make sure their child is safe when using the internet. The website is up and running and can be viewed under the "general information" tab at www.OilheatAmerica.com
See the latest NORA news at www.nora-oilheat.org.
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Thank You NEFI Action Center Contributors:
Thank you to 2008 LRAC contributors to date.
Please support LRAC Center efforts by downloading and acting upon this pledge form or by contacting NEFI at (617) 924-1000.
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