NEON: NEFI Energy Online News

HELP WANTED

The New England Fuel Institute (NEFI) seeks Development Specialist to promote the association's line of products and services. This is a full time position requiring a motivated self-starter capable of working independently and in collaboration with the association's Departments. The qualified candidate will report directly to the CEO to develop, promote, and market membership, Legislative & Regulatory services, Oil & Energy Magazine and NEFI Energy Online News (NEON) advertising/promotional services, nefi.com sponsorships, conventions & trade shows, and other products and services to fuel marketers, related companies, and fuel trade associations. Comfort and competence with a remote and mobile workforce tech environment is required. Also required is occasional travel within the region with the responsibility of coordinating our presence at industry events and trade shows. Salary and commission, generous benefits. Letters of interest with resume and salary requirements to Shane Sweet, CEO, NEFI, shane@nefi.com or mail to: NEFI, PO Box 9137, Watertown, MA 02471-9137.

FUTURE OF ECONOMY UNCERTAIN AS CONGRESS TAKES UP BAILOUT PACKAGE
The credit market is broken, investment capital is homeless and many are worried about their jobs, their retirement savings, and their future. As we mentioned to NEFI members in a recent Legislative Alert, on Monday, the U.S. House of Representatives failed to pass the $700 billion Wall Street bailout package by a vote of 205-228 (House Vote #674). This sent the markets on their most volatile ride in recent memory, with the Dow down 777 points the day of the vote. Congress will try again before this weekend to pass a revised bill and send to the President before adjourning for the National Election.

As this issue of NEON went to press, the U.S. Senate approved a revised bailout package. The new bailout legislation includes a tax-break package, new money for the FDIC to insure bank deposits, and other measures. A vote is expected Friday in the House, and President Bush was making phone calls this week to Representatives with a personal appeal to pass the measure. The U.S. Chamber of Congress is also pushing hard in lobbying efforts in support of the bill. Details, including a summary sheet, are available at the Senate Banking Committee Website.

As we had informed members, neither the original nor the revised bailout packages contains the anti-speculation legislation. We had hoped to see it included, but Congressional leaders were wary about including anything that could add to controversy or make it more difficult for some members to vote for the bill. We expect Congress to take up the anti-speculation bill if they meet for a "Lame Duck" session immediately following the November 4th election, or when the new Congress takes office early next year.

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ACTION ALERT: SENATE VERSION OF BAILOUT CONTAINS BIODIESEL TAX CREDIT
The credit, which is vital to the competitiveness of Biodiesel and BioHeat^®, has been included in the Senate version of the Wall Street bailout package.
Tell your members of Congress to support the renewal of the tax credit!

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

PRESIDENT SIGNS BILL TO DOUBLE LIHEAP; LIFT DRILLING BAN; BAIL OUT DETROIT
Sealing the deal on a major victory for NEFI, its members and its coalition allies, on Wednesday the President signed into law a $634 billion "stop-gap" funding measure that will keep the government operational through March 6, 2008, by which time Congress will need to pass a more final funding measure. The bill contains a number of major victories for the industry, all of which were top NEFI priorities:

• Doubles federal Low Income Home Energy Assistance Program (LIHEAP) to the full amount authorized, $5.1 billion. $4.5 billion of that is formula funding to be released directly to states (view state-by-state allocations). The bill requires an additional $600 million be released by the President as within 30 days, under the HHS contingency funding formula, which usually benefits heating oil states.

• Allows states to increase LIHEAP eligibility to 150 percent or federal poverty level or 75 percent of state median income

• Doubles federal Weatherization Assistance Program funding to $477 million.

• Adds $13.1 million in funding for the Commodity Futures Trading Commission (CFTC), the principle U.S. regulator of commodities trading.

• Allows for offshore drilling by allowing the federal moratorium to expire, as of October 1, 2008. Democratic leaders have promised to propose new restrictions next year, but may have trouble doing so if Republicans maintain at least 40 seats in the Senate (likely) needed to block this legislation. Most members of Congress acknowledge that the ban will not likely be renewed.

Also of interest to NEFI motor fuel members, the bill includes a $25 billion loan program for the auto industry "bailout." It will set aside $7 billion in taxpayer money to guarantee $25 billion in low-interest loans for the American auto industry to invest in more fuel-efficient vehicles.

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

NEFI SHIPS COMPLIANCE BULLETIN ON DOT ETHANOL SHIPPING PAPER REQUIREMENTS
The U.S. Department of Transportation's Pipeline and Hazardous Material Safety Administration (PHMSA) has changed their rules concerning gasoline blended with ethanol. Ethanol blends greater than 10% will be required to have new entries. Further, the term "gasohol" will only be used in reference to blends no greater than 10% ethanol. The reason for this is to inform emergency responders in the event of an accident. Blends over 10% ethanol can mix with water; alcohol resistant foam can be required to prevent blanket breakdown, vapor breakthrough and re-ignition. NEFI has issued a Compliance Bulletin on this, which provides exact language and a more thorough explanation of this rulemaking. It is available to NEFI members at no charge. Contact Dave Huffman at dave@nefi.com or 617-523-5022. The Department of Transportation has also produced a useful guidance document.

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ETHANOL PUMP DECALS NOW AVAILABLE THROUGH NEFI
The NEFI Legislative and Regulatory Action Center is now offering two different Ethanol decals for pumps and dispensers. The first decal is required by the Federal Trade Commission and reads: "E85-Minimum 70% Ethanol." This label is required on fuel blends over 70% ethanol. The other decal is not required but highly recommended in order to avoid liability for potentially costly misfueling because of inappropriate fuel use. To view and order these decals, visit www.nefiactioncenter.com and click "Online Store" or contact Dave Huffman at dave@nefi.com or 617-523-5022

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DOE PUSHES ENERGY SAVERS WEBSITE IN ADVANCE
OF WINTER
In a communication to all home energy-related industry groups and advocates this week, the Department of Energy’s Office of Energy Efficiency and Renewable Energy formally announced launching its informational "Energy Savers" campaign, themed "Stay Warm, Save Money." According to the DOE communication, "Energy Savers offers proactive ways to implement simple, cost-effective, energy saving solutions for both homes and businesses." The government is asking home energy-related advocates, trade groups, companies and professionals to post a link to www.energysavers.gov to the site on their web pages, and inform their members, customers and clients.

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HEATING FUEL DEALERS: ARE YOU READY FOR
THIS WINTER???
NEFI member and good friend of the industry Taylor Hudson of Hedge Solutions (taylor@hedgesolutions.com) recently emailed his clients a helpful checklist of steps that every heating fuel dealer should take in advance of the coming winter. We felt this information was very important and, with Taylor's permission, we are reprinting a slightly abridged version of his email below. Please note that the views expressed are those of the author (Taylor Hudson) and not necessarily those of NEFI.

1) Get your credit lines in order.
A leading banker suggested to a group of oil retailers last week it may not be a bad idea to go ahead and pull the line of credit from your bank now and pay interest on it, rather than wait around until mid-winter--hoping it is there. That is a scary comment when it comes from a banker. The issue allows you to have a conversation with your bank and ask whether or not they will be reducing lines of credit. As their asset base is eroded (perhaps Fannie/Freddie preferred stock) banks will need to reduce loans to meet leverage requirements. I heard news stories about lines being cut on the way home from work, on Marketplace, then again on the local news at 11. Better to know now than in January. I think there may be some movement afoot to get these requirements relaxed by the Feds, but this is only hope at this point. Time to start asking the bank if this could happen to your line.

2) Revisit credit terms, again.
The good news about your business is that you do not sell a luxury good. People in general, recession or not, want to keep their homes warm. The bad news is that the supplier will draft your account tomorrow while the homeowner feels little obligation if there's only a delivery ticket shoved in the front door. The way to beat the cash flow crunch will be to improve the speed with which you are paid. This means you need to start thinking more like a COD oil company and less like a bank. Credit cards are one way to tackle this problem. Fees can be reduced through vendors like COCARD.

3) Cover your basis.
This winter we believe it is highly probable that your local racks will be priced much higher versus the NYMEX than before. In other words, there is an increased chance of a basis blowout. The key months to watch will be Jan - Apr if you are able to pull from deepwater terminals, but inland terminals could start to show some serious strength even in December. If you have access to a Platts + deal, take it. Most suppliers offer "basis contracts" or "locked-in-diffs" or "un-priced guaranteed diffs." I want you to ask each one of your suppliers if they offer such a thing and what their offers are. We will target roughly 50% of our rack needs to be covered by these contracts. If they offer basis contracts, the second question to ask is whether they will quote the basis price versus the "nearby" NYMEX month DURING the month of pickup. If so, we'll likely take that offer. If not, we can work around it. I can help you answer this question too and am happy to speak to your wholesale rep on your behalf. Just go ahead and see if basis offers are available, then let's discuss them.

4) Plan on some conservation.
I went to buy a part at a "stove shop" this weekend and the place was packed. When I asked the guy at the counter how long things had been this crazy he told me "all summer." I think everyone needs to have a serious discussion on what happens if 10-15% of the "normal" gallons don't show up this year; especially in the mid-Atlantic.

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MUST READ DOCUMENT SETS RECORD STRAIGHT ON HEATING OIL & NATURAL GAS
In advance of new government winter price outlook data due out later this month, a new document produced by the Energy Communications Council (ECC) sets the Federal Government straight on heating oil vs. natural gas. The document slams the federal Energy Information Administration (or EIA), the Department of Energy’s statistical watchdog, for unreliable data and incorrectly presenting the differences between heating oil and natural gas. It provides historical and statistical information and facts that just simply cannot be ignored. This document is an essential read for any heating oil dealer and makes a great handout for the media and the public. VIEW THE DOCUMENT or contact jimcollura@nefi.com (617-924-1000) to request a copy.

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Henry M. Powers, Jr., 76
It is with sincere regret that we report the obituary of a dear friend of the industry, Henry M. Powers, Jr., former president of Sprague Energy and a long standing supporter of New England Fuel Institute.

Visiting hours will be held at his home on Thursday, October 16, 2008 from 3-6 p.m. The address is 100 Shepard's Cove Road, Kittery, Maine.

He was a significant player in the oil industry for over 25 years and he will be truly missed by all.

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2008 FALL ENERGY CONFERENCE IN NAPA VALLEY A HIT WITH ATTENDEES!
Thirty NEFI members attended the 2008 Fall Energy Conference in Napa Valley, California from September 23-28, 2008. Whether visiting the Hess Winery or the Valero Refinery, the attendees gave the trip an overall "thumbs up!"

NEFI members enjoyed wine tasting, hot air ballooning, informal networking with industry peers and the refinery tour, which included a walk-through of the control room and an informative discussion and Q & A on the refining process. Special thanks to Valero for providing the tour and luncheon!

Attending the conference from NEFI were Shane Sweet, President and CEO; Tracy Goodwin, VP and Director of Events; and Christine Vieira-Trant, Controller. "This is the first fall trip for NEFI in four years, and the success is great news for the future of NEFI's Energy Conferences," Tracy said. "Stay tuned for a member preference survey regarding potential spring and fall destinations."

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NEFI LAUNCHES NEW ACTION CENTER WEBSITE WWW.NEFIACTIONCENTER.COM VIEW HERE!!
The New England Fuel Institute has formally launched a new online website for the NEFI Action Center that puts legislative and regulatory resources at member's fingertips. The site is constantly being improved and updated. If you have suggestions for improving the site, email dave@nefi.com or call 617-923-5022. Among the many new features of the site:

• Home Page News Items on breaking legislative, regulatory and industry developments that affect you

• Legislative Action Center puts you directly in-touch with your government reps--send them letters quickly and easily!

• Federal Regulations (members only) page will post new and archived regulatory alerts, bulletins, kits and other resources

• Our National Agenda (coming soon) will list priority industry issues and related information for 2009!

• Electronic Donations can be made using our new online form (the NEFI Action Center is funded by your generous contributions--thank you)

• Online Store offering online order form for pump decals, delivery ticket stamps and other member resources for purchase

• NEFI Action Center "About Us" page lists NEFI Action Center staff and NEFI Leadership Bios and contact info

• Useful Links to government and industry websites, organizations and online resources

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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

NEFI would like to thank COCARD for their generous donation of three Red Sox tickets. On Friday, September 26, the Legislative and Regulatory Action Center held an "email auction." The three tickets were sold for $600. The proceeds will benefit the Action Center. This could not have been possible without COCARD. Also, congratulations to the winner: AWANE of Peterborough, NH!

DRUG/ALCOHOL TESTING & EMPLOYEE ASSISTANCE PROGRAM OFFER

The New England Fuel Institute, in partnership with the Newport Alliance, has created a drug and alcohol testing consortium that meets federal requirements.

• Company Policy/Certificate of Compliance

• Reporting and Recordkeeping

• Collection Site and Testing Laboratories

• Medical Review Officer (MRO) Services

• Notification of Selection for Random Testing

• Required Testing: Pre-employment drug tests and random, post accident, reasonable cause, return-to-duty and follow-up drug and alcohol testing in accordance with federal regulations at no additional cost

• Supervisor/Employee Training Program

In addition to the Drug/Alcohol Testing Program offered there is an optional Employee Assistance Program (EAP) to provide your staff with a 24-hour, 7 days a week counseling and referral service to help employees deal with personal issues before they become work performance issues. Counselors are available to deal with substance abuse, marital and family issues, personal crises, etc. The Substance Abuse Professional (SAP) is REQUIRED when any employee tests positive for drugs and/or alcohol. An SAP is a licensed physician or a licensed/certified psychologist, social worker, employee assistance professional, or addiction counselor with knowledge of and clinical experience in the diagnosis and treatment of alcohol and controlled substance related disorders. An evaluation by an SAP is included with the Employee Assistance Program. If chosen as an option, the EAP will be available to your employees, their dependents, and to your management and supervisory staff to assist in job performance concerns.

The NEFI-Newport Alliance Consortium is the only NEFI-endorsed Drug /Alcohol Testing and Employee Assistance Program. To compare your current costs or obtain further information on the program please contact Donna Carcerano, NEFI Benefits Administrator at (617) 923-5020 direct line, (617) 924-1000 ext. 220 or 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

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NORA Partners with the American Society of
Home Inspectors
The National Oilheat Research Alliance is proud to announce a partnership with The American Society of Home Inspectors (ASHI), the largest and most respected national professional organization of home inspectors in the nation. ASHI is an organization of independent, professional home inspectors. ASHI Associates work their way to ASHI Certified Inspector status as they meet rigorous requirements, including passing a comprehensive, written technical exam and performing a minimum of 250 professional, fee-paid home inspections conducted in accordance with the ASHI Standards of Practice and Code of Ethics. Through this partnership, NORA customers gain access to the largest and most trusted network of home inspectors--an important step in the buying and selling process that can ultimately help consumers make a more informed purchasing decision. Partnering with ASHI confirms NORA's commitment to bringing consumers and professionals together, in a unique way that really enables both groups to take action and make better buying decisions. "We are extremely happy to partner with such a respected organization," stated John Huber, President of NORA.

For information on NORA please contact Traci Ross at tlross@nora-oilheat.org