NEON: NEFI Energy Online News

PARKED TRUCKS AND SPCC COMPLIANCE: ANATOMY OF A NEFI VICTORY
As members are aware, NEFI won a major victory last week when the EPA published a final rulemaking that removes parked cargo tank trucks containing product from SPCC sized secondary containment requirements. Due to NEFI's efforts, heating oil dealers were spared thousands of dollars in compliance costs. How did this happen? It started with you. A heating oil dealer called NEFI President & CEO Shane Sweet last year to request help with an enforcement problem. The EPA had levied a heavy fine on him for not providing sized secondary containment for his cargo tank vehicles containing product that were parked overnight at his facility. Though this requirement has always been on the books and discussed by NEFI's Government Affairs Committee, it was rarely, if ever, enforced. NEFI immediately understood that this dealer's problem, however isolated, could lead to widespread enforcement action across all of EPA Region I (New England) and other regions of the country. NEFI made the goal of changing the parked truck requirement a top priority for 2007 and 2008.

The challenge was to win change without unleashing widespread enforcement actions throughout New England. NEFI Legal Counsel advised against a lawsuit as unwise, unwinnable and likely to bring enforcement of the parked truck requirement down on all marketers throughout New England and elsewhere. Instead, the NEFI Government Affairs Committee (GAC), lead first by Chris Keyser (Owner Services, Rutland, VT) and later by Tom Devine (Devine BioHeat, Norwalk, CT), developed a well thought out strategy to change the SPCC requirement without risking enhanced enforcement against all dealers. A two-pronged effort was launched. The first step was to find an interim solution for the dealer who was facing enforcement. NEFI talked with enforcement officials at Region I on numerous occasions trying to come to a mutual agreement. Scattering trucks to different locations or emptying them at the end of the day would allow the dealer to forgo installing expensive secondary containment equipment while NEFI sought a permanent "fix."

Step two was to take the issue to Washington. NEFI Regulatory Counsel Mark S. Morgan, Esq., met with EPA officials, made the case that sized secondary containment was unnecessary for parked trucks and asked that a rule change be made. Morgan used a pending proposed rule as the vehicle to make its case for exempting trucks from sized secondary containment. NEFI argued in its comments to the EPA that parked trucks should only be required to comply with general secondary containment requirements rather than the more onerous sized secondary containment. Instead of expensive structures designed to contain a catastrophic release of product from the largest compartment in the cargo tank, dealers would only be required to plan for the most likely release, in most cases a leaky valve requiring nothing more than absorbent material or a drip pan. The EPA agreed with NEFI and made the necessary changes in the final rule.

In the end, the strategy developed by the NEFI Government Affairs Committee (GAC) paid off. A victory was achieved within a year and one half and EPA Region I held off on widespread enforcement against all dealers in New England. As a result, heating oil dealers nationwide were spared the cost of adding expensive sized secondary containment equipment for parked cargo tank vehicles--and it was all possible because of one call from a heating oil dealer with a problem. For this victory, thanks are due to all GAC members and NEFI staff, but credit is especially due to Regulatory Counsel Mark S. Morgan, Esq., for his outstanding work and countless hours of effort. Mark can be reached at mark@nefi.com.

REMINDER!!! Get briefed on the current and newly amended SPCC Requirements by reading the latest compliance documents published by NEFI and signing-up for the January 14th (2pm EST) SPCC compliance webinar at www.nefiactioncenter.com!

NEFI CONTACT: Jim Collura, NEFI VP for Public Policy (jimcollura@nefi.com)

The 110th Congress is in session to debate and consider a measure to provide financial assistance to the U.S. automotive industry. The newly-elected 111th Congress will take office on January 3rd.

PRESIDENT-ELECT OBAMA CHOOSES TOP ENERGY AND ENVIRONMENT POSTS
As this issue of NEON went to press, President-elect Obama was set to announce his picks for top energy and environment posts, according to major news media. They cite Democratic sources as revealing his picks to be as follows:

Energy Secretary – Steven Chu, 1997 Nobel Prize winner for physics and head of the Lawrence Berkley National Laboratory and a member of the Copenhagen Climate Change Council. Biography

New White House "Czar" for energy & environment – Carol M. Browner, former Clinton EPA Administrator and former Legislative Director for then-Senator Al Gore. Biography

EPA Administrator – Lisa P. Jackson, former head of the New Jersey Department of Environmental Protection (DEP). Biography

Chair of White House Council of Environmental Quality – Nancy Sutley, Deputy Mayor of Los Angeles for Energy and Environmental Policy. Biography

Another important choice that has not yet been announced is Secretary of the Interior. The decisions signal that the Obama Administration plans on taking an aggressive stance on combating "climate change" and support for newly emerging energy sources and technologies. The formal announcement should come by week's end. Of course, NEFI will communicate with the new administration and Obama's top energy officials on issues that are important to the industry and its consumers, especially concerning new policy, legislative and regulatory proposals that affect them.

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2009 LIHEAP ACTION DAY OFFERS INDUSTRY FACE TIME WITH NEW CONGRESS
The National Fuel Funds Network (NFFN), an alliance of low income energy assistance advocates (NEFI is a member) will hold its seventh annual Washington Action Day supporting the federal Low Income Home Energy Assistance Program (LIHEAP) on Capitol Hill this February 11, 2009. Several industry groups participated in last year’s advocacy day, which helped to secure the $5.1 billion funding victory. Participation is more important than ever because additional funding may be pursued for the program and it is expected to be reauthorized next year, giving lawmakers an opportunity to modify how the program operates. New changes to the program could be considered that affect NEFI members and their consumers. The event is also important because it will be the first opportunity to establish face-to-face meetings with new members of Congress and new staff members. If you are interested in participating in this year’s LIHEAP Action Day, contact your state association or Jim Collura of NEFI at (617) 923-5016 or jimcollura@nefi.com. Information is also available online here. NEFI is coordinating involvement with this event with participating industry groups, including your state association.

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THIS HOLIDAY, YOU CAN HELP CONTRIBUTE TO THE 'INDUSTRY’S CAUSE'
Wondering how you can contribute to the great work done by the New England Fuel Institute, its Legislative & Regulatory Action Center, Government Affairs Committee and various coalitions, partnerships and alliances? With the new Congress, new President and possibly the most ambitious legislative and regulatory agenda in history on the horizon, your help is needed now more than ever! Please consider a contribution--even a small contribution of $100 or $300--to the NEFI Action Center Fund. Simply visit www.nefiactioncenter.com and click "Make a Donation" (NO log-in or password required) which is in bold red font in the menu on the left side of the screen. When the "Contribution/Pledge Form" page opens, simply fill out the desired donation amount, billing information and contact information fields and click "submit contribution." Donors can either choose to be billed for their donation or may use a credit card (we accept Visa, MasterCard and American Express). Remember that our pledge forms list suggested donations only. A full list of 2008 contributors can also be found at the bottom of the main page at the NEFI Action Center site. If you have any questions concerning the donation process, contact Dave Huffman at NEFI at (617) 923-5022 or dave@nefi.com. Thank you for your support!

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Contact: Mark Morgan, NEFI Regulatory Counsel (mark@nefi.com)

REDUCED FEDERAL ETHANOL TAX CREDIT GOES INTO EFFECT JANUARY 1, 2009
As reported last week, the federal tax credit for ethanol blends is reduced from 51 cents for every gallon of ethanol mixed with gasoline to 45 cents beginning January 1, 2009. The following conversion table shows the current credit and the new credit based on blend percentage:

Congress passed the reduced rate in the 2008 farm bill. Under the bill, the 51 cpg tax credit rate is reinstated anytime the IRS makes a determination that ethanol production for the previous calendar year falls below 7.5 billion gallons. The IRS recently announced that ethanol production for 2008 is estimated to be 11.1 billion gallons. As a result, the federal ethanol tax credit rate is reduced to 45 cents per gallon beginning 01/01/09. Claims for the ethanol tax credit are filed on IRS Form 720 Quarterly Federal Excise Tax Return. The ethanol credit must first be taken against existing federal motor fuel excise tax liability for the quarter in which the claim is made. If the amount of the ethanol credit in a claim exceeds a person's tax liability for any quarter, an income tax credit or refund is available to the blender. An income tax credit may be filed on IRS Form 720 Quarterly Federal Excise Tax Return or IRS Form 4136 Credit for Excise Tax Paid on Fuels. An income tax refund may be filed on IRS Form 8849 Claim for Refund of Excise Taxes. The IRS is in the process of updating Forms 720, 4136 and 8849 to reflect the new 2009 rate. See the language in the farm bill that reduced the credit rate.

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REMINDER: NEW BIODIESEL DISPENSER LABELS REQUIRED BY DEC. 12th
The Federal Trade Commission (FTC) issued a final rulemaking in June implementing a Congressional mandate that requires biodiesel dispensers to have content labels (see reprint of PTSA Compliance Bulletin 06/23/08 below). Under the FTC rule, labels must be placed on all biodiesel and biomass-based diesel dispensers no later than December 16, 2008. The FTC does not require a label for blends up to 5% biodiesel. However, specific dispenser labels are required for blends with a concentration range over 5%. The label, or labels, must be placed conspicuously on the dispenser face in full view of consumers and as near to the price per unit as reasonably practicable. The rule also requires that delivery tickets, bills of lading, shipping papers or any other document accompanying the transfer of biodiesel to non-consumers include a certification of the biodiesel content or biomass-based diesel content of the blend. Certification is made by indicating the biodiesel volume percentage of the diesel fuel on the transfer document. Example: "B-5" or "B-20" or "Contains 20% biodiesel," etc. Most distributors are already complying with this requirement. NEFI Regulatory Counsel Mark S. Morgan, Esq., has drafted a members-only compliance bulletin that is available under "Federal Regulations" at www.nefiactioncenter.com (log-in required). Biodiesel labels are available for sale at http://www.biodieselpumplabels.com. If you have any questions concerning obtaining a copy of the kit or ordering decals, contact Dave Huffman of NEFI at (617) 923-5022 or dave@nefi.com.

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General News

PMAA DAY ON THE HILL -- The Petroleum Marketers Association of America will be holding its annual Day on the Hill and Washington Conference on May 13-15, 2009 in Washington, DC. Contact your state association about participation or click here for more information.
COMMODITY TRADE GROUPS OPPOSE NEW OVERSIGHT -- An alliance representing commodity futures trade groups announced opposition to legislation that would extend oversight to currently unregulated swaps and derivatives. Read More
ABOUT THOSE OIL MARKETS -- NEFI coalition ally Consumer Watchdog posts great piece on the oil markets and the need for new oversight. Read More
DOE SLASHES DEMAND FORECAST -- The Energy Information Administration expects global consumption to decline by 50,000 barrels per day this year and 450,000 in 2009. Read More

Heating Fuels

CREATIVE WAYS TO HEAT HOMES ALSO DANGEROUS -- A Fresno, California news outlet reports on dangerous alternatives people are taking to heat their homes, including using portable heaters, ovens and charcoal grills. Read More
CONSUMERS TOLD HEATING WITH GAS HAS DANGERS -- According to CBS-3 of Springfield, Massachusetts. Read More
MAINERS AIR LNG CONCERNS -- Politicians and the public met last week to talk to federal regulators about the impact an LNG terminal would have on Calais, Maine. Read More

Motor Fuel

INDUSTRY ALLIANCE AGREES WITH CA STUDY ON CONSUMER IMPACT OF ATC -- An alliance of retail motor fuel companies have agreed with a new study by the California Energy Commission (CEC) that Automatic Temperature Compensation would have a negative impact on the consumer. Joining the statement were the California Independent Oil Marketers Association (CIOMA), Petroleum Marketers Association of America (PMAA), Society of Independent Gasoline Marketers of America (SIGMA), National Association of Convenience stores (NACS), National Association of Truck Stop Operators (NATSO), and National Association of Convenience Stores (NACS). Read the press release here.

Biofuels

BIODIESEL AND ETHANOL USE INCREASES IN MAINE -- NEFI-members Sprague Energy and Irving Oil are interviewed in this Kennebec Journal article.
LIFECYCLE ANALYSIS OF ETHANOL RELEASED -- By the American Coalition for Ethanol on December 1, 2008. A copy is available here.

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• NEFI SEEKS INFORMATION TECHNOLOGY (IT) SPECIALIST
We are currently seeking an individual with experience in maintaining servers, vendor IT infrastructure, Microsoft Exchange, and Linux based web applications. In addition to possessing the requisite knowledge, the right candidate will make the New England Fuel Institute’s information systems their priority. As such, the ideal candidate should live locally (Watertown/Waltham MA) or be available on very short notice (same day). Again, the ability to respond to the computing needs of NEFI in a timely manner is crucial. For more information, contact Shane Sweet, President & CEO at shane@nefi.com or 617-923-5011.

Other News

• NEFI Government Affairs Committee Chairman Tom Devine (Devine Bioheat, Norwalk, CT) moderated a committee conference call at 3pm EST on Thursday, December 11, 2008. Industry groups from around the region and PMAA participated in the call, which is held every month to coordinate, collaborate and communicate on industry-related public policy issues, including new legislation, regulations and regional industry issues.

• The Internal Revenue Service issued guidance this week on changes to the federal biodiesel tax credit resulting from a revision to the requirements of American Society for Testing and Materials (ASTM) D6751 Biodiesel Standard. In response, the Legislative & Regulatory Action Center has posted a compliance bullet explaining the tax credit. It is available to members-only by clicking here.

• Weather Subscription Service: Available from NEFI starting January 1, 2009
For only $50.00 per year for the first Member Company contact. Sign up today by visiting www.nefi.com and clicking on the "Pay NEFI Online" tab, or contacting Betty Kelley, Administrative Manager, betty@nefi.com or Direct Dial # 617-923-5013 FREE 30 day Trial: try it for 30 days at no charge

Over 100 Member companies have already signed up. Why miss out on having up-to-date Weather Information at your fingertips!

• The 2009 North American Heating and Energy Expo is scheduled for June 9-10, 2009 at the Hynes Convention Center, Boston. Sixty-five percent of booth spaces are sold 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.

See the Early-Bird Exhibitors for EXPO '09 Go Now