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 This edition of NEON is sponsored by R.W. Beckett Corp. Watch for information on the new Beckett Training Center coming this summer to New England. www.BeckettCorp.com/nep/ Your company can sponsor weekly NEON editions. Learn how. |
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Industry to Testify on Speculation Before House Oversight Committee BREAKTHROUGH: Federal Regulator To Limit Positions In London Oil Contracts VICTORY: Congress Passes Law to Close "Enron Loophole" IRS Instructs Fuel Compliance Officers to Enforce EPA Sulfur Standards IRS Under Pressure to Make Mid-Year Mileage Rate Change UPDATE: The Battle Against Speculation News From NEFI Link to N.E. State News |
Heating Oil Dealers to be Focus of U.S. Senate Hearing
Industry to Testify on Speculation Before House Oversight Committee BREAKTHROUGH: Federal Regulator To Limit Positions In London Oil Contracts VICTORY: Congress Passes Law to Close "Enron Loophole" This piece of legislation was originally a part of the Food, Conservation and Energy Act of 2008, which was vetoed by the President because it was deemed too expensive. Congress overrode this veto earlier this week by overwhelming majorities in both the House and Senate, enacting the bill into law. Please note that this is not a "magic fix" and prices will not drop automatically. The Commodity Futures Trading Commission (CFTC) must now engage in a rulemaking that could take as much as a year or more. CALL THE CFTC TODAY AND TELL THEM TO EXPEDITE THE RULEMAKING PROCESS -- call (202) 418-5000 or email the Chairman at wlukken@cftc.gov. As you know, the fight continues as other loopholes, including the "Swaps Loophole" and the "Foreign Markets Loophole" still allow for unregulated and opaque energy trading. The CFTC is still severely under funded and understaffed. With your support, we will continue to bring transparency and fairness back to the commodities market and strengthen the policing of these markets. More than 10 pieces of legislation have been introduced in the Congress to deal with these issues and more are on the way. NEFI is reviewing this legislation and will report to members in a future issue of NEON. IRS Instructs Fuel Compliance Officers to Enforce EPA Sulfur Standards
The new IRS guidance means that there is now an extra set of eyes checking for sulfur standards at bulk plants and retail sites. For this reason, it is important for compliance with both EPA and IRS regulations that dispenser labels indicate the sulfur content of the fuel in the tank. NEFI'S LEGISLATIVE & REGULATORY ACTION CENTER OFFERS AN ARRAY OF SERVICES TO ASSIST WITH COMPLIANCE: Compliance Kits: NEFI has compliance kits available to guide fuel dealers and bulk plants with their obligations under the regulations. ORDER HERE (free for members) EPA-mandated Sulfur Content Decals: Required under federal law. NEFI offers all the sulfur content decals required for on- and off-highway diesel fuel, kerosene and heating oil. ORDER HERE Delivery Ticket Stamps: Contains wording required on all delivery tickets and shipping papers, required under law. (See this document for more info.) ORDER HERE Discounted Fuel Testing: (NEFI Members Only) Offered through Bently Tribology Services of Peabody, MA. Contact (978) 535-9990 or email dan.walsh@bentlytribology.com) On-call compliance assistance: For members-only, our Washington DC based Regulatory Counsel Mark S. Morgan, Esq. (mark@nefi.com) is ready and willing to assist NEFI members with federal compliance issues. If you have any questions regarding the above products or services, contact (617) 923-5022 or email dave@nefi.com. IRS Under Pressure to Make Mid-Year Mileage Rate Change The Battle Against Speculation • Conservative commentator Bill O'Reilly takes on speculation. WATCH VIDEO • Liberal commentator Keith Olbermann on the McCain advisors that created and still lobby FOR futures trading loopholes. WATCH VIDEO • A great article in conservative magazine "National Review" says "futures trading and speculation is unquestionably putting upside pressure on oil prices" and recommends policy changes. READ MORE • Senator Joe Lieberman (D-CT) will hold a hearing in the Senate Homeland Security Committee to hear input on legislative solutions to stop excessive speculation. The hearing will be held on June 24, 2008 at 10:30am. The webcast will be available online. READ MORE • The Atlanta-based but London regulated InterContinental Exchange (ICE) has started a new website to counter some of the bad PR it has received, called www.oilfuturesmarketfacts.com. • According to MSNBC, Wall Street has stepped up lobbying efforts to counter calls by NEFI and others for greater regulation of the futures markets. READ MORE General News • Both President George Bush and Presidential Candidate John McCain this week called for a lifting of federal bans on oil drilling in off-shore areas. READ MORE • Residents of Union County South Dakota approved what could be the first new refinery in the U.S. in 30 years, capable of processing 400,000 barrels per day of heavy crude oil from Canada. READ MORE • Dow Chemical announced that it is increasing prices of vital U.S. products, such as pharmaceuticals, paints, solvents, fertilizers and more, blaming rising oil prices. READ MORE Heating Fuels • On Wednesday, Mad Money's Jim Cramer (website) predicts that Natural Gas futures will eventually surge to $16 mmbtu or even higher, to as much as $23. This week, July Natural Gas futures hit a post-Katrina high of $13 mmbtu. • The Hartford Courant examines the consequences in running heating oil in diesel engine vehicles. READ MORE • Boston Channel warns heating oil customers to budget now. READ MORE Motor Fuels • Issues with old gasoline pumps are surfacing, as reported in a recent NYT article. READ MORE • Exxon is getting out of the retail gasoline business, selling off its remaining 820 stations. READ MORE • Gas drive-offs more and more common, stations requiring prepay in growing numbers. READ MORE • "We are here to help low income heating oil and propane consumers" was the message that NEFI Executive Shane Sweet, NEFI VP for Public Policy Jim Collura and Mass. Oilheat Council staffer Alisha Frazee brought to the first annual National Energy & Utility Affordability Conference in Denver, Colorado this week. It is an annual conference focusing on Low Income energy needs. NEFI is a member of the host organization, the National Fuel Funds Network (NFFN). Sweet and Collura spoke at a special seminar on deliverable fuels (heating oil & propane) and the challenges the industry faces his coming winter. "Make no mistake, these are difficult times," Sweet said, "but this industry stands side-by-side with low income advocates in support of energy assistance programs and the great work of low income advocates." July 23: NEFI's Executive Committee Meeting (9am-12pm) and Open Board of Directors Meeting (1:30pm-3:30pm), Sheraton Providence Airport Hotel, Warwick, RI. Phone 617-924-1000 Learn How to Grow and Diversify Your Fuel Business in Challenging Times Welcome New NEFI Member Patriot Heating Service -TOP- OIL&ENERGY MAGAZINE is produced monthly and circulated to over 9,500 diversified fuel company owners, managers, petroleum and propane distributors, and related HVAC service companies from Maine to North Carolina and other regions where Oilheat and propane for heating have an important market share. The efforts of the National Oilheat Research Alliance (NORA), the National Biodiesel Board (NBB), and the Oilheat Manufacturers led by R.W. Beckett met with success yesterday in Vancouver Canada, as the ASTM approved a 5 percent blend of biodiesel in heating oil. This effort has been underway for several years, as NORA and NBB identified state and national regulations that could have prevented the use of biodiesel in heating oil applications. John Huber of NORA stated that "Bioheat® provides a critical opportunity for the Oilheat industry to re-position itself as the green renewable fuel of the future, and that knocking down regulatory barriers was essential." In that effort, NORA and NBB conducted a multi-layered fact finding process that required a thorough analysis of the fuel, how it would work in equipment, and that it would provide Oilheat customers with a fuel that would heat their homes throughout the winter. Paul Nazzaro of NBB stated "We are very excited about the development, and based on the research conducted over the years, and its thoroughness, we know that Bioheat will be as good as Oilheat in every area, but also provides the Oilheat industry a great path to the future." In addition to the efforts of NBB and NORA, Vic Turk of R.W. Beckett championed the process, as Chairman of ASTM’s Burner Fuels Subcommittee. Moving through the process he was assisted by Steve Howell of NBH. In addition to Beckett, the other leading burner manufacturers Carlin, and Riello invested a great deal of time in testing their burners with this new fuel.
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Upcoming Course at NEFI Training Center HazMat Training MA Oilburner Code 527 CMR 4.00 Training Email school@nefi.com to register. NEFI EDUCATION CALENDAR
CLICK HERE FOR THE LATEST SCHEDULES FOR OIL, AC, GAS HEAT FOR OIL TECHS and more Click here to receive NEFI class announcements via e-mail.
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The interim guidance explains that the failure to post the required sulfur notice is a violation of the EPA labeling requirements, not IRS regulations. FCOs do not enforce the EPA labeling requirements. While there is no field test for measuring the sulfur content of diesel fuel, FCOs will collect samples to be tested at off-site laboratories. The interim guidance goes on to say that "since there is no visual indication of the sulfur content of the fuel, it is imperative FCOs consider every sample obtained for sulfur testing as a potential violation and obtain certain information about the fuel." In addition to the samples, the FCO will be looking at bills of lading, invoices and delivery tickets for supporting information. The FCO is also instructed to take pictures of the pump and label and note any additives placed in the fuel. If test results reveal a violation of the EPA sulfur standard, an IRS notice of violation will be sent imposing a penalty.
