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OBAMA MAKES ENERGY A TOP PRIORITY IN INAUGURAL ADDRESS
Barack Obama, who was sworn in on Tuesday, announced energy is a top priority for his administration. The President said, "Each day brings further evidence that the ways we use energy strengthen our adversaries and weaken our planet." Later in his address, he implied that the problem might be met, in part, by renewable energy and biofuels. "We will harness the sun and the winds and the soil to fuel our cars and run our factories," the President promised. To watch a video of President Obama's inaugural address, click here.
Within 24-hours of his inauguration, the new White House website posted details of the President's energy plan. Of interest to NEFI members, the new President promises to:
- Create 5 million new jobs in the "clean" energy sector by investing $150 billion over ten years;
- Weatherize one million homes each year;
- By 2020, displace an annual volume of petroleum use that is equal to the amount imported from the middle east and Venezuela through aggressive new efficiency and conservation practices and technologies, alternatives and domestic energy production;
- Reduce greenhouse gas emissions by 80 percent by 2050 by implementing a national cap & trade program;
- Prevent excessive speculation in the commodity futures markets;
- Permit short-term price relief by swapping oil from the Strategic Petroleum Reserve (SPR) to cut prices; and
- Position the U.S. as a world leader on climate change.
It is still unclear how the new administration will implement the above proposals with minimal harm to the American economy and its consumers, businesses and entrepreneurs. Some of his proposals will be implemented by the President through executive order, administrative action or through government departments and agencies. Some of the most controversial proposals, including a national cap & trade program, will require debate in Congress and new legislative action. Irrespective of how the President or Congress move forward with new energy policy, rest assured that we will continue to advocate for our members’ best interests, stay vocal and keep a watchful eye.
NEFI CONTACT: Jim Collura, NEFI VP for Public Policy (jimcollura@nefi.com)
CONGRESS CONFIRMS ENERGY-RELATED ADMINISTRATION OFFICIALS
This week, the Congress confirmed a number of energy-related administration posts, including Energy Secretary Steven Chu, who told members of Congress during his confirmation that as a scientist he optimistic that we can meet our energy goals through new research and technologies, including cutting edge energy alternatives as well as using conventional energy more efficiently and cleanly. Most energy and environmental stakeholders and members Congress have at least a favorable opinion of Chu and his talents. The confirmation of EPA Administrator-designate Lisa Jackson was anonymously blocked by a Republican Senator earlier this week, but the block was lifted and she was confirmed late Thursday. During her confirmation hearing last week, Jackson had promised that “science would be the backbone” of decision-making and action-taking at the EPA. She also promised to immediately review all rules related to emissions and greenhouse gas reduction and make these two areas her top priorities as administrator. She was confirmed with her colleague Nancy Helen Sutley, who will serve as the White House environmental czar.
Confirmation of non-controversial appointments relevant to America’s energy future include Transportation Secretary Ray Lahood, Agriculture Secretary Tom Vilsack, Housing Secretary Shaun Donovan and Office of Management and Budget chief Peter Orzag. Obama has not yet announced a replacement for Secretary of Commerce-designate after Bill Richardson backed out of the appointment.
Several important appointments have not yet been confirmed, however. Treasury-secretary Timothy Giethner’s nomination has been delayed due to some embarrassing personal tax-related issues, but he is expected to be confirmed next week. And while Mary Shapiro was confirmed as the new head of the Securities and Exchange Commission (SEC), her counterpart at the Commodity Futures Trading Commission, the federal watch dog for futures trading, may be delayed. CFTC Chairman-designate Gary Gensler has not yet had his nomination hearing and Senate Agriculture Chairman Harkin, who would schedule and preside over such a hearing, has “concerns” about his ability and willingness to implement and enforce tough new regulations. We will update you as things progress.
Here is a list of newly confirmed administration energy-relevant officials and related resources:
Energy Secretary Steven Chu
Watch Confirmation Hearing
Read Hearing Testimony [pdf]
Visit DOE Website
Transportation Secretary Ray Lahood
Watch Confirmation Hearing
Read Hearing Testimony [pdf]
Visit the DOT Website
EPA Administrator Lisa Perez Jackson
Watch Confirmation Hearing
Read Hearing Testimony
Visit the EPA Website
Nancy Helen Sutley, Chair of White House Council on Environmental Quality
Watch Confirmation Hearing
Read Hearing Testimony
Visit the CEQ Website
MORE DETAILS ON TAX PACKAGE TO BE INCLUDED IN STIMULUS
Last week, NEON reported on the nearly $1 trillion economic stimulus package that has been introduced and will be debated in the coming weeks (click here for last week's issue). We provided a detailed breakdown of the spending-side of the bill, but only provided an abbreviated breakdown of the tax portion because the bill text was not available. Here is a more comprehensive list of details of tax provisions of interest to members. This is the House version of the Tax package. Not listed below are any of the bills provisions related to unemployment, health & social services, Medicare and other matters.
General tax relief for individuals & businesses
- For tax years 2009 and 2010, a refundable tax credit of up to $500 for individuals making less than $75,000 and $1,000 for families making less than $150,000;
- Expansions of the earned income tax credit and child tax credit;
- For first time home buyers purchasing between January 1, 2009 and July 1, 2009, eliminates the repayment obligation of the $7,500 tax credit (under certain conditions);
- An extension through 2009 of bonus depreciation, which allows businesses to immediately write off fifty-percent of their depreciable property purchased in the coming tax year;
- An extension of the current two-year carryback of net operating loses for businesses to a five-year term (denies benefit to bailout recipients);
- An extension of the $250,000 increase for small business expensing; and
- An employer tax credit equal to 40 percent of the first $6,000 of wages for hiring a veteran or disconnected youth.
Energy-specific tax relief provisions
- A long-term extension of the renewable energy (wind, solar, geothermal, etc.) production tax credit (a previous energy bill attached to last year’s Wall Street bailout bill had only extended it for one year);
- Removes monetary caps for certain wind and solar tax credits;
- Extends home energy efficiency tax credits through 2010, increases for 2009 and 2010 the eligible percentage of the amount paid or incurred by the taxpayer from 10 to 30 percent, and eliminates the property-by-property monetary cap and replaces it with a $1,500 aggregate cap;
- For 2009 and 2010, increases the tax credit to fuel station owners who dispense alternative fuels (i.e., E85, biodiesel and natural gas) from 30 percent (cap $30,000) to 50 percent (cap $50,000) and while leaving hydrogen at 30 percent, increases the cap to $500,000;
- For 2009 and 2010, provides an enhanced 20 percent R&D tax credit for the fields of fuel cells, battery technology, renewable energy, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration.
Note: The above is a summary of the tax provisions of pending legislation. It is not to be construed as tax guidance or advice, or be used for tax planning purposes. NEFI does not provide such guidance or advice and the reader should consult with a qualified tax professional.
President Obama is hoping to get overwhelming bipartisan support for the measure, however mounting Republican opposition may make that unlikely. If the bill passes in the Senate, where the GOP still maintains enough members for a filibuster, it will likely be along slim party lines. Obama will meet with Republican leaders to discuss the package, hoping to work out some agreement that would lend the bill additional support. The complete summary and bill text of the tax portion of the stimulus is available by clicking here.
HOW 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 Rocco at NEFI at (617) 923-5022 or dave@nefi.com. Thank you for your support!
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Contact: Mark Morgan, Esq. NEFI Regulatory Counsel (mark@nefi.com)
NEFI SEEKS PROFESSIONAL ENGINEER FOR SPCC PRESENTATION AT EXPO
The New England Fuel Institute is looking for a professional engineer to help present information on Spill Prevention, Control & Countermeasure at the NEFI’s trade show, the EXPO (June 9 & 10). Ideally, we would like an engineer who is well versed in SPCC, the latest amendments and has familiarity with certifying plans. This individual will speak alongside NEFI’s regulatory counsel, Mark S. Morgan, Esq. If you are interested, please contact Dave Rocco @ 617-923-5022 or dave@nefi.com.
NEFI ALERT: OBAMA FREEZES ALL FEDERAL REGULATIONS PENDING REVIEW
As members were alerted by a regulatory alert this week, the new White House this week imposed a freeze on all new federal regulations begun under the Bush administration. The freeze may affect several important rulemakings important to fuel dealers. The purpose of the freeze is to provide an opportunity for agency directors to conduct a review of the rules to ensure they comply with Obama administration policy. Specifically, the White House issued a memo directing agency directors not to send any proposed or final rules to the Office of the Federal Register (OFR) for publication and to withdraw any that were already sent but not yet published. This effectively stops the final rulemaking step. In addition, directors were instructed to consider extending for 60 days the effective date of any rule already published but not yet effective. Rules are often published with an effective date sometime in the future, typically 60 days. If directors choose to extend the effective date of such rules then they must re-open the rule with a 30-day notice and comment period. It seems as though the directors have some discretion on whether to issue a 60-day extension.
Among the rules subject to the recent freeze--important amendments made to the EPA’s Spill Prevention, Control and Countermeasure (SPCC) regulations. NEFI contacted the EPA today to determine the effect the freeze would have on the extension of the SPCC compliance deadline from July 1, 2009 to November 20, 2009 (which was signed on January 14th but not yet published) and final rule removing sized secondary containment requirements for parked cargo tank vehicles containing product published last November but not effective until February 3, 2009. The EPA said that it is carefully reviewing the directive to determine how to proceed and that a decision on the fate of the two pending rules should be reached sometime this week. It is important to note that the SPCC deadline extension and the sized secondary containment exemption for parked cargo tank trucks are not considered controversial as they relate to fuel dealers. However, the application of both rules to oil production facilities is potentially controversial and likely to face more serious scrutiny by incoming Obama regulators. If this happens, the SPCC deadline extension and the parked truck exemption may be in jeopardy. NEFI is working closely with the EPA to insure that this does not happen. We will report back as this issue develops.
STATE LEGISLATURES FACING BUDGET GAPS COULD RESORT TO MOTOR FUEL HIKES
The National Conference of State Legislatures (NCSL) estimates that states must close a collective $97 billion budget gap over the next 18 to 24 months--a figure that could grow to as much as $350 billion in 2010 if the economy does not rebound by the end of this year. As a result, state legislatures across the nation are likely to turn to tax increases and fee hikes to help close the widening budget gaps. According to the NCSL, many states are facing double-digit budget deficits due to falling sales, use and motor fuel tax receipts. Total state retail sales were down 5.5 percent in November and 8 percent in December 2008. Declining retail sales means falling sales and use tax receipts, which in many states account for a significant portion of the revenue base. The collapse in the price of gasoline accounts for much of the decline in retail sales. Excluding gasoline sales, total retail sales were down 2 percent in November and 4 percent in December. States rely on sales and use taxes for 35.1 percent of general revenues nationwide, according to the Federation of Tax Administrators (FTA). Excise taxes account for 14.5 percent of general revenues nationwide. It is likely that given the nature of the decline and the general reluctance to increase income and property tax rates, state legislatures will rely heavily on hikes in cigarette and motor fuel taxes. Legislators are going to be casting about for different solutions to their budget gaps--from taxes and fees to leasing toll roads, rollbacks of tax breaks, and other measures. State legislatures are likely to raise fees first, though such increases are unlikely to close budget shortfalls without additional tax increases.
General News
- INTERIOR DEPT RELEASES OFF-SHORE DRILLING PLAN – The pre-Obama U.S. Department of the Interior released Friday a plan for off-shore drilling lease sales in 31 off-shore areas. As was reported in a previous issue of NEON, Congress failed to renew a 26-year ban on off-shore drilling last year, allowing the Interior to move head with such a plan. President Obama opposes renewing the ban and has indicated some support for expanded off-shore oil and gas recovery. Read more.
- NORTHEAST REGIONAL PROPANE ISSUES BEING ADDRESSED – Members will be pleased to know that national, regional and state heating fuel associations are communicating and collaborating in an effort to deal with the propane supply issues being experienced throughout the region. More on this to come.
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• NEFI EXECUTIVE COMMITTEE MEETING, 9am-12:00pm, and NEFI BOARD OF DIRECTORS MEETING, 1:30pm-3:30pm, February 19, Lake Morey Resort, Fairlee, Vermont. Phone: 617-924-1000 Directions betty@nefi.com
• 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.
• SURVEY REGARDING NEON: NEFI gladly sends you this weekly publication (NEON). As we are always striving to better serve our members, we are seeking to produce a newsletter that is more tailored to your needs and the needs of the industry. To that end, we want to know what you think.
By clicking the link below and spending less than five minutes on this eight question survey, you can make a difference in the quality of NEON. We appreciate your time. If you have any comments, questions or concerns, please do not hesitate to contact NEFI at 617-924-1000 or email jimcollura@nefi.com. Please reply by January 30.
http://www.questionpro.com/akira/TakeSurvey?id=1133234
• NEFI SPRING TRIP TO BE ANNOUNCED SOON: NEFI's spring trip destination and dates are being decided upon and we expect to have an announcement soon. Currently, we are looking at two possibilities based on the member survey results. The two highest vote-getters were the southern coast of Italy and Alaska/Canadian Rockies. NEFI is working with travel agents to put both programs together, and based on timing, availability and cost, will plan on one for this year, and the other for 2010. Departure date of either trip will most likely be June 11, 2009 or shortly thereafter, as it must follow the NEFI Expo which is scheduled for June 9 & 10. More to come!
• UPDATE FROM NEFI IN WASHINGTON, DC: NEFI Vice President for Government Affairs Jim Collura (jimcollura@nefi.com), newly located in the Washington, DC area met with PMAA staff at their offices in Northern Virginia on Thursday, January 15, 2009. Collura discussed new ways NEFI and PMAA could work together on industry goals and priorities in the new year. He also joined PMAA staff for a meeting with House Agriculture Committee staff on proposed legislation to deal with commodity market speculation (details on legislation to come). He is working on finalizing office contact information in DC. Stay tuned.
• OVER TWO-HUNDRED COMPANIES SIGNED UP FOR NEFI WEATHER SERVICE: It’s not too late for you to enroll in this valuable service. Visit our website www.nefi.com/weather for pricing information and to enroll and see samples of what you can expect to receive or call Betty Kelley at 617-923-5013 or email betty@nefi.com
• NEFI EXPO AND BUSINESS CONFERENCE PLANNING UNDERWAY: The NEFI Expo Planning Committee, co-chaired by Don Craft, Gulf Oil LP, and Craig Snyder, Wesson Energy has begun work on the Business and Technical Programs to be held during the 33rd North American Heating & Energy Expo. View a briefing of the Expo. Contact Tracy Goodwin, Expo Manager for more information at 617-923-5015 or tracy@nefi.com
 • 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.nefiexpo.com.
See the Exhibitors for EXPO '09 Go Now
• PMAA PAC SILENT AUCTION TO BE HELD AT EXPO
After a successful silent auction fundraiser at VISIONS 2008 that raised over $5,000 for the Petroleum Marketers Association of America's Small Business Political Action Committee (PAC) fund, NEFI will hold another silent auction fundraiser at next year's EXPO, to be held on June 9-10 at the Boston Hynes Convention Center. Proceeds will again benefit the PMAA Small Business PAC, which supports candidates for public office that share our industry's national goals. Past donations have included a variety of items ranging from sports memorabilia to power tools and much more! If you would like to contribute an item for the silent auction, contact Jim Collura at jimcollura@nefi.com or call (617) 923-5016. For more information on the EXPO and reserving a booth click here, or contact Tracy Goodwin at tracy@nefi.com or (617) 923-5015.
• THANKS TO NEFI SCHOOL STUDENTS MATT WATSON AND TIM CAMPBELL
They recently installed new baseboard heat in the NEFI Education Department.
NEFI school students Matt Watson (left) and
Tim Campbell (right) with NEFI Instructor Bob Messia.
• View the latest edition of Oil & Energy online.
• Welcome New NEFI Member:
Enpro Services, Inc.
Al Skaparas
12 Mulliken Way
Newburyport, MA 01950
Phone: 508-230-4821
Fax: 978-225-1233
Email: askaparas@enpro.com
Web: www.enpro.com
Enpro provides Environmental Service.
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2009 North American Heating and Energy Expo
June 9-10, 2009
Hynes Convention Center, Boston, Mass.
Sponsor This Newsletter!
NEFI would like to thank this month's NEON Sponsor, www.nefiexpo.com
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
DELTA DENTAL INSURANCE PLANS AVAILABLE!
Rhode Island, Massachusetts, Vermont & New Hampshire
Group Rated Delta Dental Insurance Plans
New England Fuel Institute is pleased to offer members and their employees comprehensive dental plans at a very competitive monthly rate. Please visit www.nefiinsurance.com to review a detailed summary of benefits/rates for each NEFI Group Rated Delta Dental Plan Offer. Please contact Donna Carcerano, Benefits Administrator at New England Fuel Institute (617) 923-5020 Direct Line, (617) 924-1000 ext. 220 or email donna@nefi.com
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
SAFETY VESTS NOW AVAILABLE:
The Federal Highway Administration has required workers within the right of way of any federal aid highway to wear high visibility safety vests since November 24, 2008. The NEFI Action Center has a bulletin available on this at www.nefiactioncenter.com. It is available in the Federal Regulations section (MEMBERS ONLY). In addition to informing its members on this regulation, we have located a vendor: W.S. Emerson of Brewer, Maine. They are NEFI members and their contact information is below:
WS Emerson Company
Phone: 207-989-3410 / 800-789-6120
Fax: 207-989-8540
Email: donw@wsemerson.com
15 Acme Rd, Brewer, ME
www.wsemerson.com
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For information on NORA please contact Traci Ross at tlross@nora-oilheat.org
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.
You may also donate online!
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U.S. & Regional Fuel Inventories
News from the Dept. of Energy
Energy Information Administration
"This Week In Petroleum" Data as of January 21, 2009
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ICPA Newsletter E-Marketer Report January 21
ICPA Technical Education Center Newsletter January 21
ICPA Technical Education Center Website
www.meoil.com
MOC Newsletter
OHC-NH Website
OHI-RI Website
View VFDA Fuel Line January 23, 2009
View VFDA Fuel Line January 16, 2009
Education & Training New Courses Announced
CETP Education in Rutland, VT and Lebanon, NH
NORA Silver Certification, January 24, FW Webb, Rutland, Vermont
NORA Silver Certification, February 18, Montpelier, Vermont
Read more at www.vermontfuel.com
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