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.

HOUSE PASSES DRILLING MEASURE; VOTE SET ON SPECULATION

"there was an enormous amount of speculation pent up in energy markets and it wasn't just the supply-demand equation. Oil will rise again, and we need solutions to energy supplies, but $140 in July was ridiculous.”

- JP Morgan researcher Michael Cembalest this week, clearly “out of step” with his company's own pro-speculation line

Congress' return from recess this month has been very frantic. Having planned to retire to campaign in home districts and states on September 26th, they are left with only a few weeks to respond to the growing sense of economic crisis among the electorate. Members are using this opportunity to bring attention to what now most opinion polls classify as the top two issues on voters' minds--the floundering economy and the cost of energy.

This week, the U.S. House of Representatives passed the Comprehensive American Energy Security and Consumer Protection Act (H.R.6899) to expand offshore oil and gas drilling, by a vote of 236-189 (votes by state). Many Republicans called it a "sham" because it was sent to the floor last minute and without their input. Many Republicans also oppose certain measures because they say it imposes new taxes on the majors. President Bush has promised to veto the bill and the Senate is unlikely to consider it.

Also, the bill does not include any measures to address excessive speculation. Energy futures have seen a massive sell-off in recent weeks, despite supply disruptions due to Hurricane Ike. You will recall Michael Masters of Masters Capital Management, the futures market "whistleblower" that raised eyebrows through compelling Senate testimony this past spring. Masters recently released a report (below) claiming that the sell off can be tied to major Wall Street interests pulling out due to the threat of new legislation and greater regulation.

Congress is poised to make good on this threat, as the House of Representatives was poised for a vote on the "Commodity Markets Transparency and Accountability Act of 2008" (H.R. 6604) as this issue went to press. The measure failed a vote in July. Boots on the ground on Capitol Hill in Washington are seing an unprecedented – UNPRECEDENTED – effort by Wall Street to lobby against the bill. They have even set up a new lobby in Washington to do it, called the "Smart Energy Policy Coalition" (www.smartenergyusa.org).

We have to make good on the threat and get the "investulators" out of our market and close the trading loopholes!

SUPPORT THE ANTI-EXCESSIVE SPECULATION BILL!
Click here to contact your members of Congress!

-TOP-

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

FEDS CAN'T TELL IF SPECULATION PLAYS A ROLE--
MASTERS REPORT GIVES ANSWERS
The Commodity Futures Trading Commission revealed their extremely anticipated report on the role that speculation is playing in the markets this month and found that-- they don’t know? (read the story on Reuters here) The conclusion is a complete "about face" for the CFTC, which until now had been claiming that speculation is NOT a factor in rising energy prices. The conclusion only strengthens the argument for new legislation, as many opponents were waiting for the report before deciding on whether to support or oppose legislation. From the report, page 2 (available here):

"This preliminary survey is not able to accurately answer and quantify the amount of speculative trading occurring in the futures markets. The current data received by the CFTC classifies positions by entity (commercial versus noncommercial) and not by trading activity (speculation versus hedging). These trader classifications have grown less precise over time, as both groups may be engaging in hedging and speculative activity."

Through his blog and in testimony before Congress this week, futures market "whistleblower" Michael Masters released another powerful and convincing report about the role of excessive speculation by Wall Street firms (see story in New York Times here). The first part of Masters' report (with the second being called, "Act 2") reveals that financial institutions held $220 billion in commodities, a 1,700 percent increase from 2003! This first report, dated July 31, 2008, details how speculators have driven up food and energy prices. The second "Act," released on September 10 in a press conference with anti-speculation members of Congress, is just as revealing. According to the report, in mid-July, just as Congress was taking up the anti-excessive speculation legislation, Wall Street investors started exiting the markets, beginning the major sell-off that now has crude oil back under $100bbl (as this article went to press). Masters claims that Congressional attention and the potential for tougher oversight and regulation has discouraged Wall Street participation in the futures markets, and argues that, if legislation fails, Wall Street will be emboldened to enter the market and drive prices back to new highs. You can read the full reports at Michael Masters' anti-speculation blog, http://accidentalhuntbrothers.com.

In a related story,

PRESIDENT RELEASES REMAINING FEDERAL LIHEAP CONTINGENCY FUNDS
On Wednesday, President George W. Bush released all $121 million in remaining contingency funds for the federal Low Income Home Energy Assistance Program (LIHEAP) to states, tribes and territories. This brings the total FY08 federal LIHEAP funding level to $2.59 billion. Contingency funding is provided to the President by Congress for release at his discretion. Northeast and Mid-Atlantic State Allocations are as follows:

Read the complete U.S. Department of Health & Human Services press release as well as a complete list of all state, tribe and territory allocations online here. Congress is currently working on a Continuing Resolution (or "CR") to keep government funded beyond September 31, when the new Fiscal Year begins. Nearly all appropriation bills remain unfinished due to partisan disagreements and veto threats. The CR will likely fund LIHEAP at last year's level of $1.98 billion in formula funding and possibly $500 million in contingency funding. The Northeast Midwest Coalition in the Congress, with support from NEFI, is trying to double that amount to $5 billion in the CR. If they fail, it is likely that Congress will take up an emergency LIHEAP supplemental under the new administration in February, especially if prices remain high and/or if there is a moderate to severe winter.

-TOP-

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

EPA RELEASES NEW EMISSION STANDARDS FOR SMALL GASOLINE ENGINES
The EPA has issued a long awaited final rule designed to significantly reduce emissions from small marine and gasoline-powered engines. The final rule will cut nitrogen oxide and hydrocarbon emissions from engines used in lawn mowers, chain saws, and other small equipment by 35 percent. The final rule will also reduce both hydrocarbon and nitrogen oxide emissions from marine engines by 70% with an additional 20% reduction in carbon monoxide emissions. The reductions take effect in 2011 for lawn and garden equipment engines of 25 horsepower or less and in 2010 for gasoline-powered personal watercraft and inboard and outboard engines. To meet the new exhaust emissions standards, EPA will require manufacturers to use catalytic converters for the first time in many types of small watercraft, lawn, and garden equipment. The standards also will require a 45 percent reduction in evaporative emissions from lawn and garden equipment. Congress directed EPA to propose emissions standards for small engines by December 2004. The law included a prohibition on California and other states from enacting their own standards.

-TOP-

GAS STATIONS: ADA DOES NOT REQUIRE CALL ASSIST BUTTONS ON DISPENSERS
The Americans with Disabilities Act (ADA) does not require installation of call assist buttons on dispensers for use by disabled persons. The issue is important because a marketer recently received a letter purported to be from a "law firm" stating that their disabled client was unable to pump gas at a certain location because the dispenser lacks a "handicap assist button." The letter went on to demand that the marketer send a check in the amount of $50 directly to the client within 12 days or face further legal action. The letter is incorrect. While the ADA requires marketers (in most but not all cases) to provide equal access to their customers with disabilities, it does not require call buttons on dispensers. The ADA guidelines regarding equal access to service stations and c-store dispensers are as follows:

• A service station or c-store operator must provide refueling assistance upon the request of an individual with a disability. However, the operator is not required to provide such service at any time that it is operating on a remote control basis with a single employee.

• A service station or c-store operator must notify customers (e.g., using signs on or near dispensers) that individuals with disabilities can obtain refueling assistance by honking their horn or otherwise signaling an employee). The ADA requires no specific wording for the notification. Service stations and c-stores operating on a remote control basis or with only one employee are not required to post a notification.

• A service station or c-store operator must provide the refueling assistance without any charge beyond the self-serve price, if the customer wants only fuel. The attendant may provide assistance at a self-service pump or at a full-service pump. In either case, the customer must be charged the self-service price.

Compliance investigations by disability advocate groups, news reporters and state officials often find that employees are generally unaware of these ADA requirements even where notifications or non-mandatory call assist buttons are used. Retailers should review their operations to determine if the ADA guidelines apply. Enforcement on this issue has not been vigorous but a violation can bring up to $50,000 for a first offense and may include additional court ordered monetary damages and other legal remedies.

-TOP-

• IS OPEC CRUMBLING? Disagreements within OPEC as to whether or not to cut production has lead Saudi Arabia to walk out on the cartel (read more here) and Indonesia has officially withdrawn (read more here)

• MORE OIL IN BRAZIL was found in the Santos Basin adding 4 billion to country's reserves, which have been steadily increasing thanks to massive oil finds. Read More

• IG: CFTC DID NOT MISLEAD. A new report issued by the CFTC's Inspector General dismissed criticism that the agency used intentionally flawed or manipulated data in the release of its July 22 "interim report" on the role of speculation.

• PMAA FIGHTS GOUGING CLAIMS. In a letter to President Bush, PMAA is "extremely disappointed" that the White House would support the notion that price gouging is an issue following serious disruptions due to Hurricanes Gustav and Ike. "It may appear to the average consumer that the retailer is gouging when in fact the only choice is to dramatically raise prices or turn off the pumps," he said.

• CONGRESS BAILS OUT HIGHWAY FUND to the tune of $8 billion to keep it from going insolvent. The next Congress will need to deal with the fund, which is losing revenue due to unchanged motor fuel excise taxes and increased fuel efficiency.

• OHIRI GETS NEW OFFICE On Monday, September 22, 2008, the Oil Heat Institute will be moving and will also have new telephone and fax numbers. The e-mail address will remain the same as will Julie Gill's cell phone. Please change your records as needed. The new address is 873 Warwick Avenue, Warwick RI 02888-3645. Phone (401) 865-6055, Fax (401) 865-6056.

• PMAA ANNOUNCES NEW OFFICERS The Petroleum Marketers Association of America (PMAA) has announced the slate of new officers to be nominated at the Fall Board of Directors meeting in Chicago on October 4, 2008.

Chairman: Matt Bjornson (North Dakota)
Vice Chair: Gerry Ramm (Washington State)
Treasurer: Sean Cota (Vermont)
South East Region Association Exec: Arleen Alexander (Alabama)
South Central Region Chairman: Todd St. Romain (Louisiana)
Western Region Chairman: Jason Powell (Oregon)
North Central Region Association Executive: Dawn Carlson (Iowa)
North East Region Association Executive: Eric Degesero (New Jersey)

-TOP-

2008 OILHEAT VISIONS CONFERENCE SETS
ATTENDANCE RECORDS
The innovative strategy of learning and repeated classroom sessions at the 2008 Oilheat Visions Conference held at Boston’s Logan Airport Hilton last month proved to be a resounding success. The setup kept class sizes smaller while also allowing attendees to participate in virtually every session. At times, the record-setting attendance by industry members, with wholesalers, retailers, equipment manufacturers and others, reached more than 600 people. The conference was hosted by the New England Fuel Institute (NEFI), along with the National Oilheat Research Alliance (NORA) and the Petroleum Marketers Association of America (PMAA), in addition to participation from state associations. The conference, kicked off by a keynote address from Gulf Oil president Joseph Petrowski, was capped off with a session on biofuel mandates led by Ian Bowles, secretary of the Executive Office of Energy and Environmental Affairs in Massachusetts.

Co-chairman Craig Synder, of Wesson Energy Inc. in Waterbury, Conn., said he felt a "perfect moment" at the end of the conference.

"Success is bound to occur when all are focused and willing to work together to accomplish something special, something unique and different," he said. "We did have our 'imperfect moments,' but we stayed vigilant in our quest to give our industry a great conference."

Fellow Co-chairman Don Craft, of Gulf Oil in Newton, Mass., was also quick to laud the team that planned the conference, which focused on programs that would provide learning experiences that attendees could apply immediately to their businesses, from banking and hedging to customer service, instead of simply presentations.

"Together, we overcame the challenges, politics, personalities, etc., and designed and pulled off one of the most, if not the most, successful educational conference in NEFI's long, cherished history," Craft said. Others who worked on the conference felt similarly.

"So much thought was given to delivering a truly valuable experience to the attendees, and it came across in the number of attendees and feedback we received," said Richard Goldberg of Warm Thoughts Communications, one of the track leaders for the conference.

Another track leader, Steven Abbate of Griffith Energy Services, also recognized that the team's ability to work well together directly led to the conference’s success, for the committee and those attending.

"Working with the team on the NEFI Visions conference has been one of the greatest experiences of my professional career," he said. "I have never worked with such a great, professional, knowledgeable, fun team. I think we can all be very proud of our accomplishments. I would expect that this conference will be the buzz of the industry for many months, if not years to come."

Track leaders Jim Townsend of Townsend Fuel and Richard Larkin of Hedge Solutions expressed similar sentiment, with Larkin stating the conference was so satisfying that he would be willing to do the work again, which began in October 2007, "in a minute."

According to NEFI vice president and director of events Tracy Goodwin, the conference also saw record event sponsorships and exhibitors, and the silent auction fundraiser for the PMAA Political Action Committee (PAC) raised $5,300--well over the $5,000 goal for the year (see more below).

"The overall success of Visions is truly the result of the collaborative efforts of many," Goodwin said. "Tremendous thanks to all event sponsors, exhibitors, attendees, planning committee members, track chairs, presenters, participating associations and their staffs. The common goal for Visions 2008 was to provide real value—business strategies and tools for marketers to 'survive and thrive,' and the industry responded."

2008 VISIONS PMAA PAC SILENT AUCTION WINNERS (THANK YOU!!!)
Listed by winning bid amount for item/service. If you have not yet claimed your item/service or provided payment, please contact Jim Collura at 617-923-5016 or jimcollura@nefi.com. Items/services that are not claimed by Friday, September 26th will be forfeited and will go to next highest bidder.

Marina Grossi (MA) $850 2 Tickets to VIP Pavilion Patriots Game on 11/13 (donated by Jim Townsend, Townsend Oil, Danvers, MA)

Chris Glidden (NH) $750 4 Tickets to State Street Pavilion Red Sox vs. Indians on 9/25 (donated by Walter Brickowski of Gulf Oil LP)

Nick Scata (CT) $525 2 Tickets to Patriots vs. Broncos on 10/20 (donated by Dave Eagle, Arlex Oil, Lexington, MA)

Jean Scagnoli (MA) $350 Nintendo Wii System w/ Tiger Woods 2009 (donated by Jim Collura of NEFI)

Ken Campbell (CT) $330 Celtics Tickets (donated by Bob Manzelli of Munhall Oil, Watertown, MA)

Steven Ohl $300 Full Tuition to Professional Service Managers School at PSU (donated by Judy Garber of NAOHSM)

Steve Turner (AR) $250 Curt Shilling Autographed 2004 World Series Baseball (donated by Dan Gilligan of PMAA)

Joanne Sharkey (MA) $235 Magnavox Blueray Player (donated by Margie Wong of Global, Waltham, MA)

Peter Cullen (MA) $200 Rodney Harrison Autographed Football (donated by Dan Gilligan of PMAA)

Mike Trask (RI) $195 2 Tickets to Red Sox vs. Indians on 9/22 (donated by Larry Richmond, CoCard, Beverly, MA)

Marianne Kennedy (VT) $170 Box of Macanudo Gold Label Cigars (donated by Tom Devine & Sam Gault, Norwalk CT Abatement Committee)

Mike Trask (RI) $145 8GB iPod Nano (donated by Shane Sweet of NEFI)

Marianne Kennedy (VT) $125 Makita Cordless Power Drill (donated by Tom Devine & Sam Gault, Norwalk CT Abatement Committee)

Andy Frongillo (MA) $120 4 Tickets to Boston College vs. Maryland on 11/29 (donated by Dick Horan of Devaney/Hughes Oil Co.)

Dan Gentile (CT) $120 Box of Premium Dominican Cigars (donated by John Maniscalco, NY Oil Heating Assoc.)

Rick Card (NH) $100 5,000 Custom Delivery Tickets (donated by John Leary, American Business Forms & Envelopes)

Jean Scagnoli (MA) $100 Gift Card to Morton’s Steakhouse (donated by John Maniscalco, NY Oil Heating Assoc.)

Deb Norris (MA) $80 Gift Certificate to Lowes (donated by Julie Gill, Oil Heat Institute of Rhode Island)

David Haynes (NY) $80 Maine Lobster Dinner for Two (donated by Jenny Caron of FISC Solutions)

Michelle Henderson (NY) $57 RYOBI 14amp Skill Saw (donated by Tom Devine & Sam Gault, Norwalk CT Abatement Committee)

Ed Burke (MA) $50 Table Top Space or Dinner Tickets to IOMA Show on 10/15 (donated by Peter Romano of IOMA)

Al Davis (NH) $50 Gift Basket (donated by Chris Keyser, Owner Services, Proctor VT)

Chris Riccio (MA) $45 2 Tickets to NBC Last Comic Standing Live (donated by Paul Murphy, PJ Murphy Transportation, Methuen, MA)

Al Davis (NH) $25 Gift Basket (donated by Lea Wilson, Washington State Oil Marketers Assoc.)

Ed Burke (MA) $25 Certificate for HAZMAT Training (donated by Mike Markarian of NEFI)

Marianne Kennedy (VT) $20 Propane CTEP Book 7 Course (donated by Mike Markarian of NEFI)

Peter Aziz (CT) $15 25' Roll of Envirotube (donated by Dave Campbell of Fuel Oil News)

TOTAL: $5,312 (Goal was $5,000!)

HOW TO MAKE A DIRECT CONTRIBUTION TO THE PAC
If you would like to make a direct contribution (up to $5,000) to the PMAA SBC PAC by personal credit card, call PMAA at (703) 351-8000 or email spitcher@pmaa.org. To contribute by personal check, make it out to "PMAA SBC" and send to ATTN: PMAA SBC PAC, 1901 Fort Myer Drive, Arlington, VA 22209. Be sure to tell them NEFI sent you!

NOTE: Personal funds only, no corporate funds will be accepted under law. PMAA will return any checks or other methods of payment whose origins appear to be in conflict with this requirement. Contributions to the PAC are not deductible for federal tax purposes and are used for political purposes. PMAA regularly reports the activities of the PAC (as required by law) to the Federal Election Commission (FEC) and information about that activity is made available to the public. All contributions are voluntary and you may refuse to contribute without reprisal. An individual is free to give up to the annual limit of $5,000 per PAC and neither PMAA nor NEFI will not favor or disadvantage anyone by treason of the amount of their contribution or their decision not to contribute (11 CFR 114.5(a)(2)(ii)). This fundraiser does not financially benefit nor in any way involve the National Oilheat Research Alliance (NORA) or its staff.

• The 2009 North American Heating and Energy Expo is scheduled for June 9-10, 2009 at the Hynes Convention Center, Boston. 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.

-TOP-

• The September issue of Oil & Energy is available online.