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What to Expect When Congress Returns Next Week
Support the Senate NORA Reauthorization Bill
GAO Report Criticizes EPA SPCC Enforcement & Data Collection Efforts
NEFI Members Should Consider Urea Demand for SCR Engine Roll-Out
Rumors of New "Purple Dye" For Kerosene May Be Unfounded
Silent Auction At 2008 VISIONS
Conference--Nearly $8,000 in Items Donated To Date. See the list.
New!! View Action Center Raffle Items
Industry News
News From NEFI
News from NORA
U.S. & Regional Fuel Stocks
Link to N.E. State News
Visit the NEON Archive
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Please Note: Due to the important industry event--the 2008 Visions Conference--there will be no issue of NEON next week. See you at the conference!
RECORD DRAW FOR VISIONS 2008
Boston conference offers financial and logistical solutions to fuel marketers; Bioheat®, SBA financing and keynote by Gulf Oil President among highlights; still time to register at www.visions2008.org.
Over 560 Oilheat and propane industry attendees will assemble at the Boston Logan Airport Hilton this coming Tuesday and Wednesday to scope the most pertinent advice on financing, cash flow, fuel hedging and buying, and smart customer retention and service operations.
The assembly at VISIONS 2008 arrives at the crossroads of a slowing economy, but one with the prospect of declining prices for heating fuel. The entire program is devoted to providing fuel marketers with the learning experience and tools need to bolster operations and profitability during the most volatile marketplace the industry has witnessed in decades. The Conference offers a unique "track format," by which the various learning sessions are repeated during the course of the day, enabling attendees to take advantage of virtually all content during the two-day event.
Gulf Oil LP President Joseph Petrowski will make the keynote address Tuesday at 9 AM. Mr. Petrowski has held leadership roles in the energy field throughout his career and will provide timely insight as to how global energy demand interacts with US domestic policies and fuel supply.
The morning keynote is followed by a series of educational sessions devoted to banking and financial guidance, intensive hedging and fuel buying courses. Those are followed by specialized tracks focusing on diversification, critical business planning, and strategies for successful operations (delivery, inventory control, "right-sizing" companies for today's marketplace).
The National Oilheat Research Alliance (NORA) will be presenting a new program concept that aims to establish an energy analysis/audit classification for Oilheat technicians.
On Wednesday, in addition to classes for the educational tracks, two presentations will be made that are important to the industry at large. At 11:00 AM, Anne Hunt, senior executive with the Small Business Administration (SBA), will review the various programs available from the SBA to secure financing for heating oil and propane operations.
At NOON, a special appearance by Ian Bowles, Secretary for the Office of Energy and Environmental Affairs, Commonwealth of Massachusetts, will provide critical information with respect to the recently enacted biofuel mandate in that state. The session will address the need to introduce a "bio" component to the fuels you sell and what the likely timetable will be for other states throughout the Northeast.
A full agenda for the VISIONS 2008 program can be obtained at www.visions2008.org. There is still time to register online for the conference. Walk-in registration will be available at the Conference Registration Desk, 2nd floor, Boston Logan Airport Hilton Hotel. (Monday through Wednesday AM.)
Call Tracy Goodwin, NEFI VP for Events, at 617-923-5015 for more information or email tracy@nefi.com.
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NEFI CONTACT: Jim Collura, VP for Public Policy (jimcollura@nefi.com)
Congress is currently in a "state work period" and is in recess until September 8, 2008.
WHAT TO EXPECT WHEN CONGRESS RETURNS NEXT WEEK
Congress returns next week to re-engage in the energy debate, a debate that will be even further strained from a now fully-launched Presidential and Congressional election season. In the House, Speaker Nancy Pelosi (D-CA) plans on allowing a vote on off-shore drilling, but under strict conditions that will expand renewable energy and further tax large oil companies. In the Senate, Majority Leader Harry Reid (D-NV) will once again bring up the anti-excessive speculation bill (S.3268) and according to sources, will allow the "Group of 16" bipartisan energy proposal to be offered as an amendment. Additionally, it is unlikely that any FY2009 appropriations measures will be complete this year, which means Congress will have to pass a "Continuing Resolution" (or CR) to keep government operating after the current Fiscal Year expires on September 30th. NEFI and LIHEAP coalition allies are advocating for the inclusion of $2.5 billion emergency LIHEAP funding in the CR, and it is possible that the CR could include the NORA Reauthorization Bill (see below). NEFI will alert members as necessary.
In this election year, it is important that your voice be heard. Visit our easy-to-use government web portal at www.capwiz.com/nefi to write or call your public officials on the issues that matter to you!
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SUPPORT THE SENATE NORA REAUTHORIZATION BILL
Legislation to strengthen and make permanent the National Oilheat Research Alliance (NORA) has been introduced in the U.S. Senate, and the bill is in need of co-sponsors! Senators Jack Reed (D-RI) and Olympia Snowe (R-ME) have introduced the bill in the Senate as S.3442. The bill would:
• Eliminate the sunset provision, which would otherwise require the Act to be reauthorized every five years. Eliminating the sunset provision will ensure continuity of contracts, and allow for long-term planning and initiatives.
• Expand the definition of "oilheat" to include all distillate blend stocks used for home heating.
• Modify the funding mechanism to bring NORA into conformity with the federal propane check-off program.
• Make other technical changes (e.g., to establish a mechanism for additional states to join NORA, adjust vote ratios, etc.).
It is vital that we build as much support for this legislation as possible. Please tell your Senators to get on-board with this legislation so vital to the heating oil industry and its consumers!
CLICK HERE TO WRITE YOUR SENATOR IN SUPPORT OF THE NORA LEGISLATION!
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Contact: Mark Morgan, NEFI Regulatory Counsel (mark@nefi.com)
GAO REPORT CRITICIZES EPA SPCC ENFORCEMENT & DATA COLLECTION EFFORTS
The U.S. General Accountability Office (GAO) released a new report that is highly critical of the U.S. EPA and its regional offices for incomplete and inconsistent enforcement of the federal Spill Prevention Control and Countermeasure (SPCC) regulations. The GAO report was released just one year before the newly revised SPCC regulations go into effect on July 1, 2009. The report was based on a multi-year investigation of enforcement data and information collection activities by each of the ten U.S. EPA regional offices. The GAO investigation concluded that no two EPA Regions approach implementation of SPCC regulations in the same way. The variation is largely due to region specific factors such as differing organizational structures, staffing levels, training, available data, enforcement priorities and even geographic limitations.
In recognition of these variations, the U.S. EPA gives regional authorities wide latitude and very little guidance on implementing the SPCC regulations. As a result, there is little continuity of SPCC implementation between the regions. For example, the GAO discovered that between 2004 and 2006 the 10 EPA regions conducted 3,359 inspections, or less than one percent of the estimated total of SPCC regulated facilities thought to exist by the EPA. The number of SPCC inspections completed in each region varied widely during the 3-year period ranging from 187 in Region 10 to 745 in Region 6. The GAO also reported a significant variation in the number of inspected facilities that were subject to enforcement actions by the EPA regions.
The GAO concluded that much of the variation in SPCC implementation is due to the lack of sufficient information collected by the EPA and regions on the number and type of SPCC covered facilities. The GAO recommends that the EPA develop specific guidance on SPCC implementation in an effort to promote greater coordination and continuity between the agency and the regions. The GAO also recommends that the EPA study the cost and benefits of available options to collect comprehensive data on the entire universe of SPCC regulated facilities. The data should include the number of SPCC facilities as well as their size, age, location, quality of construction and methods of operations. PTSA is concerned that the data collection effort could lead to new aboveground tank registration regulations. In a letter to the U.S. EPA, Regulatory Counsel Mark S. Morgan, Esq. expressed strong opposition to federal regulations or guidelines that call for aboveground tank registration. Morgan will continue to monitor this issue very closely and report in a future issue.
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NEFI MEMBERS SHOULD CONSIDER UREA DEMAND FOR SCR ENGINE ROLL-OUT
As reported in past issues of NEON, jobbers, marketers and retailers may want to begin consideration of options for supplying a new diesel engine liquid additive called "urea" that is required for all heavy duty diesel engines manufactured in 2010 and beyond. As was reported in a recent issue, there will also be an increasing urea demand for off-road diesel engines in the next ten years, although on a smaller scale than the heavy duty on-road market. "Urea" is required for all selective catalytic reduction (SCR) heavy duty diesel engines, the preferred technology by nearly all on-road (and increasingly, off-road) diesel engine manufacturers to meet new federal emissions standards. It will also be utilized by passenger car manufacturers that are introducing a new generation of "clean diesel" automobiles starting next year. Urea is used to scrub diesel emissions and must be dispensed into a separate 35 gallon storage tank installed on all SCR equipped trucks at regular intervals, usually during refueling. Engine manufacturers estimate that most SCR vehicles will burn between 2% and 4% urea for every gallon of diesel fuel burned. At this burn rate, heavy-duty on-road SCR engines will require urea refueling approximately every 7,000 miles.
As a result, diesel marketers may need to dispense and/or deliver various volumes of urea to meet customer demand. A group of SCR stakeholder industries, as well as Mark S. Morgan, Esq., Regulatory Counsel, is currently addressing a wide array of urea infrastructure and supply issues. Currently, producers are gearing up to offer urea in bulk quantities, 275 gallon intermediate bulk containers, 55 gallon drums and 2.5 gallon retail consumer packaging. Urea is generally thought to be compatible with petroleum storage containers including USTs, ASTs and cargo tanks though cross-contamination factors are not yet fully known. Jobbers should determine whether demand for urea will exist among their customers and select storage, packaging and delivery options as well as finding a reliable urea supplier as soon as possible. NEFI is working with the SCR stakeholder group to iron out remaining urea infrastructure and supply issues, especially for the many NEFI members that market and/or consume diesel fuel.
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RUMORS OF NEW "PURPLE DYE" FOR KEROSENE MAY BE UNFOUNDED
A fuel dealer contacted NEFI this week for confirmation on a rumor that "kerosene is soon going to be called #1 stove oil and be dyed purple." NEFI Regulatory Counsel Mark S. Morgan, Esq. said that he seriously doubts that kerosene would be dyed purple. First, the IRS requires that kerosene either be dyed red, for nontaxable, or that it be clear, for taxable use. (Clear Kerosene can also be sold tax-free from pumps that are blocked/barricaded in accordance with IRS requirements.) We have not been able to confirm this "rumor," and it is our understanding that the IRS is NOT considering a second dye color for kerosene. The IRS must approve such a change through the regulatory process, and no such process has been initiated. Morgan's contacts at the IRS say they have never heard of such a proposal and it is unlikely they would support it. The reference to "Stove Oil" may be a reference to the Canadian name for kerosene, which is imported as "Canadian Stove Oil."
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• MIT STUDY BLAMES SPECULATION FOR RISING OIL PRICES
The Massachusetts Institute of Technology's (MIT) Center for Energy and Environmental Policy Research has issued a report concluding that the recent price run-up in oil has been driven by investor speculation, not by supply and demand fundamentals. The easy-to-read report examines each of the reasons that Wall Street speculators used to justify higher prices, including higher oil demand; dollar depreciation; geopolitical disturbances and available world supplies. The full report can be read online here.
• INSPECTOR GENERAL INVESTIGATING CFTC INTERIM REPORT ON SPECULATION
In a related story, the Inspector General for the U.S. Commodity Futures Trading Commission (CFTC) has officially begun an investigation into whether or not the CFTC's "interim report" on oil speculation released in July was politically motivated. The CFTC Acting Chairman released the incomplete report in advance of the September final report, and the interim report found that speculation was not a significant factor in rising prices. The release coincided with a Senate vote on a bill to stop excessive speculation. The investigation will also look at accusations that the data was "seriously flawed" because within weeks after the release, and just after Congress left town, the CFTC "corrected" some data that showed speculation as a much larger part of the market--as much as 81 percent of NYMEX crude oil contracts.
• U.S. DRIVING FALLS FOR EIGHTH STRAIGHT MONTH
The latest Federal Highway Administration (FHWA) report on vehicle miles travelled by drivers each month reveals a record drop in driving during June. According the FHWA, vehicle miles (VMT) travelled fell a record fell 4.7% (12.7 billion miles) in June 2008 from the same period in June 2007. The June 2008 drop in VMT was the largest decline recorded since the FHWA began collecting such data in 1942. Year cumulative totals also continued to fall, with 42.1 billion fewer VMT in 2008 than at the same point in 2007, a 2.8% drop. More importantly, drivers purchased 400 million fewer gallons of gasoline in the first quarter of 2008, a drop of 1.3% from 2007 levels. Diesel fuel consumption fell by 318 million gallons or 7% over the same period.
• E20 ETHANOL DISPENSERS ARE INADEQUATE, ACCORDING TO PEI
A recent survey by the Petroleum Equipment Institute (PEI) found that less than 10% of fueling facilities in the U.S. are presently capable of storing, metering and dispensing E-20 without eventual equipment failure. Survey respondents cited the following equipment that needed to be replaced due to E-20 incompatibility: dispensers, submersible pumps, hanging hardware, release detection equipment, tanks piping and spill containment. PEI shared the survey results with the EPA. Currently, federal law restricts blends of E-10 or below to gasoline-only engines. Only flex-fuel vehicles are permitted to burn gasoline with an ethanol content above E-10. Marketers should not be concerned about the compatibility of E-10 blends with existing dispensing and storage equipment.
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NEARLY $8,000 IN ITEMS DONATED FOR SILENT AUCTION AT VISIONS 2008
As of Thursday, September 4, 2008, nearly $8,000 in items have been donated for the "Silent Auction" event at the 2008 VISIONS conference (www.visions2008.org) at the Boston Logan Airport Hotel September 8-10. NEFI is sponsoring the fundraiser, which will run throughout the three day conference, to benefit PMAA's Small Business Committee (SBC) Political Action Committee (PAC). This PAC supports candidates who share our industry's national goals. Donated items from NEFI member companies and friends were encouraged. Thank you to all of our contributors! For more information on the Silent Auction event, the PAC or to inquire about making a direct monetary donation, contact Jim Collura at (617) 923-5016 or jimcollura@nefi.com. Silent Auction winners and direct PAC contributions must be paid for using personal funds under federal law.
Additionally, raffle tickets are going to be sold at the NEFI booth to benefit the NEFI Legislative & Regulatory Action Center fund. Tickets will be sold for $5 each or 5 for $20 and a winner will be announced at the VISIONS cocktail reception on Tuesday, September 9th. Prizes are listed below, following the PAC Silent Auction contributions.
Thank you to our donors! (as of September 4, 2008)
Townsend Oil (Danvers, MA), 2 VIP Patriots Tickets (Details TBA)
American Business Forms & Envelopes, 5,000 custom printed fuel delivery tickets
NY Oil Heating Association, Box of 25 Premium Cigars
Arlex Oil (Lexington, MA), 2 Patriots Tickets (Details TBA)
Owner Services (Proctor, VT), Vermont Gift Basket
Medway Oil (Medway, MA), 2 Patriots Tickets (Details TBA)
Medway Oil (Medway, MA), SkeeterVac LPG Mosquito Remover
National Assn. of Oil Heating Service Managers, Full Tuition to Professional Service Managers Academy at Penn State Univ. (6 Classes)
Independent Oil Marketers Association, Choice of free table top space or 4 free dinner tickets at IOMA show on 10/15 at Burlington Marriot Hotel
Gulf Oil LP, 4 seats in State Street Suite for Red Sox Game vs. Cleveland on 9/25 with VIP parking
NEFI Action Center, Nintendo Wii System with Tiger Woods PGA Tour 2009
Petroleum Marketers Assocation of America, 2004 World Series Baseball autographed by Curt Shilling
Global Petroleum, Blueray Player
Munhall Oil, 2 Celtics Tickets - Great Seats
Petroleum Marketers Assocation of America, Rodney Harrison Autographed Patriots Football
Devine Bioheat (Norwalk, CT), Makita 18V 1/2 Compact Lithium Ion Cordless Driver/Drill and Case
New England Fuel Institute, 8GB Official PMAA SBC PAC Visions 2008 Edition iPod Nano
Devaney/Hughes Oil Co., 4 tickets to Boston College vs. Maryland Football on 11/29 with VIP Parking
NEFI Techinical Training Center, Certificate for CETP Propane Course Book 7
Devine Bioheat (Norwalk, CT), Box of 25 Hampton Court Macanudo Gold Label Cigars
NEFI Techinical Training Center, Certificate for HAZMAT Training Course
Devine Bioheat (Norwalk, CT), Ryobi 14 Amp Skill Saw w/case
Oil Heat Institute of Rhode Island, Gift Certificate for Loews
P.J. Murphy Transportation, Inc. (Methuen, MA), 2 tickets to NBC's Last Comic Standing LIVE Tour at Lowell Memorial Auditorium 10/30
NY Oil Heating Association, Mortons Steakhouse
COCARD (Beverly, MA), 2 tickets to Red Sox Game vs. Cleveland Indians Right Field Box 8/22
Washington [State] Oil Marketers Assocation, Breakfast in Seattle Gift Basket
Fuel Oil News, 25 foot roll of envirotube
2008 NEFI Action Center Raffle Items
(at Table, Tickets $5 ea or 5 for $20)
Oil Heat Institute of Rhode Island, 80GB Oil Heat Institute iPod with $50 iTunes Gift Card
NEFI Action Center, 80GB NEFI Action Center iPod with $25 iTunes Gift Card
Devine Bioheat, Box of 25 Macanudo Hyde Park Cigars with Macanudo Colloctors Ash Tray
• 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.
• NEFI's 2008 Fall Energy Conference to Napa Valley, September 23–28, 2008. The trip is getting close to selling out, but there are a few spots left! Act fast while space is still available. Tracy is currently working to arrange a possible refinery tour for Friday, Sept. 26. Call him at 617-923-5015 or email tracy@nefi.com with questions or view the details about the trip and see a registration form here. Thirty NEFI members and friends are already registered for this multi-day event, which includes private a tour of a local Valero refinery.
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• The September issue of Oil & Energy is now available online.
Welcome New NEFI Members:
Arco Oil Company
Mr. Corydon Rich
20450 St. Hwy 28
Delhi, NY 13753
Phone: 607-746-2100
Fax: 607-746-2747
Arco Oil is a Retail Fuel Dealer also providing Kerosene, Gasoline, and Diesel-off Road.
Spinogatti Fuels, Inc.
Mr. Steven Spinogatti
1009 Pennsylvania Ave.
Havertown, PA 19083
Phone: 610-449-0939
Fax: 610-449-9537
Email: spinfuel@comcast.net
Spinogatti Fuels is a Retail Fuel Dealer also providing Sales, Service and Installation of Oil Heaters and Burners.
Sponsor This Newsletter!
NEFI would like to thank this month's NEON Sponsor, NEFI's Legislative & Regulatory Action Center.
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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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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A NORA Board Meeting will be held on Monday, September 8, at the VISIONS 2008 Conference in Boston, Massachusetts. The meeting will begin promptly at 2 pm and conclude at 4 pm.
NORA Takes Education to the Next Level
NORA proudly announces the launch of a new NORA site entitled, "My NORA Video." This website allows technicians to view training videos online instantly. NORA's goal was to create a user friendly, content based website geared towards technicians that is easily accessible. This means that customers of the NORA Store no longer have to wait for their training DVD to arrive by mail, they can now view training DVD's online immediately. NORA training videos 1-12 are available online, as well as NORA’s customer service video. "NORA is working diligently to advance the Oilheat Industry in several core areas, education is a top priority," said John Huber, President of NORA.
The videos can be purchased at the NORA Store for a limited time only. The new website can be viewed at: http://www.mynoravideo.com
For more information 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.
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