NEON: NEFI Energy Online News

VICTORY! FEDERAL LIHEAP FUNDING DOUBLED
Thanks to your calls to Congress and a coordinated national effort, members of Congress are poised to double funding for the federal Low Income Home Energy Assistance Program (LIHEAP) to the maximum amount authorized, $5.1 billion! This amount is double the current year funding level.

This constitutes a major victory for NEFI and its national LIHEAP coalition allies, which have been working together to call for full federal LIHEAP funding for years. The $5.1 billion includes $4.5 billion in formula funding which will be allocated directly to states, and $600 million in contingency funding that is to be released under discretion of the President. If you would like a breakdown of the formula funding allocation by state, contact Jim Collura at NEFI, jimcollura@nefi.com.

Congress also doubled funding for the federal Weatherization Assistance Program (WAP) to $477 million. That is up from the $227.2 million the program received in FY2008. President Bush had initially proposed elimination of the program in his FY2009 budget, but Congress balked at the idea.

The funding was included in the FY2009 "stop-gap" appropriation measure, known as a "Continuing Resolution." The Continuing Resolution will keep the government operational from October 1, 2008, the start of the Fiscal Year, until March when the new President and the new Congress can finish work on FY2009 appropriations. The President is expected to sign the stop-gap funding bill.

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

CONGRESS ALLOWS BAN ON OFF-SHORE DRILLING
TO EXPIRE
In another major development that will please NEFI members, Democratic leaders in Congress agreed NOT to renew the ban on off-shore drilling! The federal moratorium on off-shore drilling was set to expire at the end of the year. Democratic leaders decided not to renew the ban in order to win Republican support for important funding measures (like those described in our lead story) that they would have otherwise opposed.

Still, a "showdown" is set for next Congress. Democratic leaders have promised to renew the moratorium on off-shore drilling when they return in January. However Senate Republicans will be able to block any attempt to do so, provided they can maintain a 40-seat minority in the Senate this election. According to recent polling data, it appears that Republicans may lose seven seats, which would leave them with 42--enough to maintain a filibuster threat.

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SENATE PASSED BILL CONTAINS BIODIESEL TAX CREDITS; ENDS "SPLASH AND DASH"
Also this week the Senate approved the "Tax Extenders and Alternative Minimum Tax Relief Act" (H.R. 6049) which includes a number of important provisions aimed at extending energy tax credits. PMAA's analysis reports an important renewal of the $1 per gallon biodiesel producer tax credit and a 10 cent per gallon for small biodiesel producers through 2009. Just as important to many NEFI Biodiesel and BioHeat^® marketers, the bill would close the "splash and dash" loophole.

The bill also extends the $1 per gallon tax credit for diesel fuel produced from biomass, and includes as eligible diesel fuel created by co-processing biomass with other feedstock. It gives a one year reprieve for taxpayers paying the Alternative Minimum Tax (AMT). Some motor fuels retailers will benefit from a provision extending the credit for installing non-hydrogen refueling equipment for one year, which will allow retailers to claim a tax credit for 30 percent of the costs for installation. The bill includes a total $17 billion in renewable energy tax breaks. The bill is expected to be amended in the House of Representatives before it goes to a final vote, and the President may or may not sign, depending on the changes that are made.

The biodiesel tax credits and closing the "splash and dash" loophole remain a top priority for NEFI. Thank you to all members and allies that continue to put pressure on their members of Congress to pass these important measures!

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ACTION ALERT: TELL CONGRESS TO ADD SPECULATION BILL TO WALL STREET BAILOUT!
We need your help!!! Congress is taking up consideration of the massive "$700 billion Wall Street bailout package" that leaders are working to pass within a week. Allies on Capitol Hill are trying to get the anti-speculation bill (S.3268) included in this major bill. You can take action by visiting the Legislative Action Center alert online here TAKE ACTION NOW!

S.3268 would impose critical position limits (how many contracts a trader can hold) on non-commercial (or "non-physical") market traders, or those traders that have no direct connection to the physical product. It would close the "Foreign Markets" loophole. It would also increase transparency on over-the-counter (or OTC) markets, require studies into the role of pension funds, strengthen the CFTC through new staff resources, and help return some of the decision making on regulations to "physical" players.

There is no reason it should not be included. The message is simple: deregulation helped cause the collapse of the housing and banking industries, and deregulation helped drive energy prices to all-time highs. You cannot fix one without the other, or we risk Wall Street investors turning to the commodity trading markets as a "shelter" from the financial meltdown. That will only mean higher prices and a rough winter for American homeowners and commuters.

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

REMINDER: EPA STAGE I COMPLIANCE DEADLINE FOR GAS STATIONS
The compliance deadline has passed for federal Stage I vapor control equipment for gasoline stations that commenced operations after November 9, 2006 and have a gasoline throughput of 100,000 or more gallons per month. Gasoline dispensing facilities include retail gasoline stations, card locks and private commercial gasoline fueling facilities. PMAA has released a compliance bulletin that can be accessed online here.

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• Feds Subpoena Oil Traders The Commodity Futures Trading Commission has subpoenaed dozens of traders, according to Bloomberg, for suspicious activities that may have helped lead to last week's big oil price jump. It's about time, CFTC. Read More

• House OKs AMT Fix The House of Representatives approved a bill this week to fix the alternative minimum tax (AMT), and the White House has indicated it will sign the measure. Read More

• Travel Groups Fight Speculation The Air Transport Association (ATA) and the National Business Travel Association (NBTA), which represent the airline and air travel industries, respectively, are supporting anti-excessive speculation legislation and have publicly shown their solidarity with the fuel industry. Read More

• Truckers Protest in DC Truckers drove rigs to Capitol Hill in a honking rally in protest of high prices at the pump. There was a lower than expected turnout due to fuel costs.
Read More

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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.