NEON_ NEFI Energy Online News

NEON: NEFI Energy Online News
12/5/11 12:30 PM
www.nefi.com
This edition of NEON is
sponsored by NEFI's Legislative &
Regulatory Action Center.
A Service of New England Fuel Institute
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October 10, 2008
Volume 3 • Issue 37
Diesel Exhaust Fluid (a.k.a. Urea)
Distribution Ramps Up for 2010
Mandate
Do I Need Decals on My E-10 Fuel
Pumps?
Citizens Energy Program Will Launch
Soon and Will Include New Hampshire
NEFI CONTACT: Jim Collura, VP for Public Policy ([email protected])
Congress is in recess until after the November 4th
election, at which time they may hold a special session to
address the economic crisis. If not, they will remain
adjourned until January 3rd.
$10K Donation Puts James Devaney
Fuel with Sprague and Global at Top
of Action Center Donor List
API Reports Mid-Year Combined
State/Federal Motor Fuel Excise Tax
Burden
BUSH SIGNS "WALL STREET BAILOUT" AND ENERGY TAX
EXTENDERS INTO LAW
2008 VISIONS Conference Survey
Results
As was previously reported in a NEFI Action Center Alert, the President signed into law
last week the Emergency Economic Stabilization Act. The bill did not provide immediate
relief to the markets. Any administration action under the bill is at least four to five
weeks away, which may not be soon enough. Congressional leaders are now pondering
whether or not to meet after the November 4th election in order to address additional
"bailout" requests and possibly another economic stimulus package. Since the bailout
passed, the Dow has dropped below 9,000. Recession fears and investment bank woes
have also taken their toll on energy futures. NYMEX oil futures are now trading below $90
bbl, heating oil below $2.50 pg, and gasoline around $2.00 pg.
Industry News
News From NEFI
News from NORA
U.S. & Regional Fuel Stocks
Link to N.E. State News
The $810+ billion dollar rescue package can be best broken down into two parts. The first, a $700 billion "bailout" that allows
the Treasury, with oversight from Congress, to buy up bad mortgages and other assets that have frozen the credit markets.
Visit the NEON Archive
Of interest to NEFI members, it also increases deposit and share insurance coverage from $100,000 to $250,000 through
December 31, 2009.
Upcoming Courses
at NEFI
Training Center
Second, the Act contains a sweeping "tax extenders package" that includes a number of energy-related measures of interest
to NEFI members, including:
HazMat Seminar/Certification
November 19, 6-9 pm
Watertown, MA
Course Info
Propane CETP Classes
Nashua, NH
Book 7
Course Info
Email
[email protected] to register.
JOIN NEON MAILING LIST
• Closes the "splash and dash" loophole in federal tax policy that allows diesel fuel from foreign countries to be eligible for
the US biodiesel tax credit. The loophole allowed foreign tankers with finished diesel fuel to temporarily enter American ports
and splash blend with biodiesel in order to qualify for the federal biodiesel tax credit. Once blended, both the fuel and the tax
credit would be shipped to foreign countries. The language of the bill disallows any splash and dash blending occurring on or
after May 15, 2008.
• Extends the $1 per gallon biodiesel blender's tax credit set to expire on December 31, 2008 to December 31, 2009
(one year extension). Increases and extends for one year the 50-cent per gallon biodiesel blender’s credit available for
product containing animal fats (yellow grease) to $1.00 per gallon, the same rate as biodiesel made from 100% plant oils
(effective for biodiesel blended after December 31, 2008).
• Clarifies that biodiesel containing a petroleum feedstock prior to downstream blending with diesel fuel does not qualify for
the federal biodiesel tax credit. Biodiesel blends containing a petroleum feedstock (prior to downstream blending with diesel
fuel) will no longer be eligible for the federal credit beginning October 3, 2008.
• Revised the definition of "renewable diesel fuel" to eliminate the "thermal depolymerization process" requirement and to
include jet fuels produced from biomass.
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include jet fuels produced from biomass.
NEFI EDUCATION
CALENDAR
• Also extends for one-year renewable energy production tax credits for wind, solar, geothermal, and other renewable
energy sources. Solar also gets an eight year extension on the 30 percent tax credit for residential and commercial
installations, and are no longer confined to $2,000 cap.
• Extends the federal alternative fueling infrastructure tax credit for one year. The credit, 30% of cost or $30,000
maximum, whichever is less, was set to expire on December 31, 2009 but will now be available through December 31, 2010.
• Creates a new $2,500-7,500 tax credit for plug-in electric hybrid vehicles.
The law also increases the federal Oil Spill Liability Trust Fund excise tax paid by the major oil refiners from 5 cents per
barrel to 8 cents per barrel from 2009-2016. In 2017, the tax will rise to 9 cents per barrel. The majors pass-on the cost of
the tax, which is often included as a separate line item on product transfer documents, provided by terminal operators. The
legislation also includes a tax incentive for oil refineries to encourage more refining of gasoline and diesel fuel. IRS forms and
instructions reflecting the changes in the bill will be available in the near future.
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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.
Contact: Mark Morgan, NEFI Regulatory Counsel ([email protected])
DIESEL EXHAUST FLUID – A.K.A. UREA - DISTRIBUTION RAMPS UP FOR 2010
MANDATE
Thank you to these sponsors
that supported your industry
and the successful 2008
VISIONS Conference.
Visions 2008 Sponsors:
DIAMOND "PLUS" SPONSOR:
Diesel industry stakeholders are not tackling the distribution challenges for Diesel Exhaust Fluid (DEF)--formerly known as the
fuel additive "urea." The additive will be required in all heavy-duty truck engines, off-road diesel vehicles and equipment, and
a new breed of diesel passenger cars that use Selective Catalytic Reduction (SCR) technology to meet 2010 diesel fuel
emission standards. Many fuel dealers and diesel fuel end-users are, as NEFI has recommended, examining short- and longterm market demand for this new additive and what infrastructure, handling, storage, employee and customer education,
product safety and other considerations will be required.
This week, the nation's largest retail operator of travel centers announced plans to be the first to supply the substance at its
dispensers. Pilot Travel Centers, with more than 325 truck stop/travel centers in 40 states, said its initial rollout plans call for
DEF to be available in bulk at more than 100 of its sites by mid- to late-2009. Virtually all heavy-duty diesel engines currently
in production will utilize selective catalytic reduction (SCR) technology requiring the use of DEF, an emission scrubbing
product that will reduce tailpipe diesel emissions to near zero. SCR trucks equipped with a 30 gallon DEF supply tank will
require a refill approximately every 7,000 miles or a tank top-off every two to three days. Initial tests results show that DEF
use in SCR trucks will also increase fuel efficiency by about 3-5%. In addition to bulk supply at dispensers, DEF is also
available in two and five gallon consumer packages. DEF is monitored for quality and certified by the American Petroleum
Institute. DEF supply is expected to be plentiful as since U.S. urea producers such as Yara, Terra, Agrium, PotashCorp, and CF
Industries already manufacture the product for agricultural fertilizer use. The manufacturers currently operate production
facilities with capacity far in excess of DEF requirements for all vehicle types in all future scenarios.
NEFI is following this issue very closely and will be attending multi-industry workgroups planning the introduction of DEF into
the market. Members should stay tuned for more information from NEFI on this important issue.
Federated Insurance
www.federatedinsurance.com
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DO I NEED DECALS ON MY E-10 FUEL PUMPS?
DIAMOND SPONSOR:
The New England Fuel Institute's Legislative and Regulatory Action Center has gotten several questions this past week
concerning state-specific E-10 labeling requirements. While there is no federal requirement for labeling of E-10 pumps, most
states do have mandates requiring pump labels that may differ from state-to-state. Therefore, you should consult your state
association to find out the particular rules before you order or make your own decals. See a list of the New England state
associations. Please be aware that the federal government does require decals on E-85 blends, and that these decals are
available through NEFI by visiting www.nefiactioncenter.com or contacting Dave Huffman at [email protected] or 617-9235022.
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CoCard
www.cocardprocessing.com
DIAMOND SPONSOR:
National Biodiesel Board
www.biodiesel.org
• CITIZENS ENERGY PROGRAM WILL LAUNCH SOON AND WILL INCLUDE NEW HAMPSHIRE
Citizens Energy has indeed confirmed that they will have an oilheat program again this year, and have expended the program
to New Hampshire. According to sources, they expected to circulate a proposal for a new dealer contract to NEFI, state
associations and industry leaders within the next week or two. We will review the details of the agreement and the program
for the 2008-2009 heating season and inform members as soon as we are able. Stay tuned.
• MULTI-AGENCY GROUP RELEASES OUTLINE OF NATIONAL BIOFUELS ACTION PLAN
A working group lead by the US Department of Agriculture, Department of Energy and the Environmental Protection Agency is
set to release a long awaited plan to reduce the environmental impact of grain- based biofuel agricultural practices, as part of
the National Biofuels Action Plan (see the new NBAP Fact Sheet). The plan, which was prepared by an interagency Biomass
Research and Development Board, details research that is needed to support sustainable biofuel production. The EPA is
concerned that grain-based biofuel cropping systems cause environmental harm. Nevertheless, the agency feels that grainbased biofuels will likely remain in the nation's energy portfolio for the foreseeable future and that new agricultural practices
to soften environmental impact are needed. A separate EPA Biofuel Strategy--an internal management and research
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PLATINUM SPONSORS:
Advanced Fuel Solutions
www.fuelsolution.com
12/5/11 12:30 PM
to soften environmental impact are needed. A separate EPA Biofuel Strategy--an internal management and research
document--is under review by two external advisory committees. More information at the USDA website and the DOE
website.
• EPA MISSES GREENHOUSE GAS EMISSION REPORTING RULE DEADLINE
The EPA missed a congressional deadline for proposing a rule that would require sources of greenhouse gases to report their
emissions. EPA was required by the omnibus appropriations bill approved by Congress in December 2007 to propose the rule
by Sept. 26, 2008. The rule would represent the first broad-based mandatory greenhouse gas reporting requirements by the
federal government. The appropriations bill directed EPA to develop a rule requiring economy wide reporting of emissions,
inferring that the agency should cast a very wide net when identifying sources that must report. The bill also said EPA should
establish a threshold for emissions. Sources exceeding the threshold would be required to report. The EPA said the rule is still
in the development phase. More information as it becomes available.
• API REPORTS MID-YEAR COMBINED STATE/FEDERAL MOTOR FUEL EXCISE TAX BURDEN
Beckett
www.beckettcorp.com
Braley & Wellington Insurance
www.braleywellingtongroup.com
Citgo
www.citgo.com
Citizens Bank
www.citizensbank.com
ExxonMobil
www.exxonmobil.com
Fuel Management Services
www.fuelmanagementservices.com
Global Companies LLC
www.globalp.com
-TOPGray, Gray & Gray
www.gggcpas.com
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Gulf Oil
www.gulfoil.com
12/5/11 12:30 PM
• $10K DONATION PUTS JAMES DEVANEY FUEL WITH SPRAGUE AND GLOBAL AT TOP OF ACTION CENTER DONOR
LIST
After a tour of his Newton, Mass., office this week, James Devaney handed NEFI President & CEO Shane Sweet and Vice
President Jim Collura a $10,000 donation towards the NEFI Action Center. "It is important to recognize and support NEFI for
its hard work on behalf the industry, and James Devaney Fuel stands ready to do just that," Devaney said. The donation now
places retail fuel marketer James Devaney (website), at the top of the NEFI Action Center donor list with suppliers Global
Companies, LLC and Sprague Energy Corporation. For a complete list of 2008 donors to-date and to access the online
contribution form visit www.nefiactioncenter.com or contact Dave Huffman at (617) 923-2055 or [email protected].
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Hess Corp.
www.hess.com
• 2008 VISIONS CONFERENCE SURVEY RESULTS
To ensure that attendees' feedback is of the utmost importance when planning future events, NEFI VP and Dir. of Events
Tracy Goodwin compiled an online survey, which was sent to all contacts that have provided NEFI with an email address.
The results of the survey are in, and so far, the majority of survey respondents felt that Visions 2008 was a resounding
success.
Eighty-four percent of respondents attended Visions, citing the relevant and critical subject matter as the top reason why.
Speaker roster and networking opportunities were tied for the second best reason. Surprisingly, cost and location were not
big deciding factors!
Interstate Biofuels
www.interstatebiofuels.com
Eighty-one percent arrived by car; only 16 percent flew in (an interesting result considering the event took place at the Logan
Airport Hilton). It does, however, support the attendance figures that show New England companies make up the largest
percentage of attendees. Fifty-two percent rated the Logan Hilton as an "excellent" venue, with 28% saying it was "good."
The few venue-related complaints were about parking as there was an unexpected 9/11 memorial dedication service which
took up a great deal of the Hilton’s parking lot.
When asked where the next Visions conference should be held, the majority picked Providence, RI--which is the location of
the past three Visions events. Portland, ME and Hartford, CT were a close second and third, with Albany, NYC, Princeton, and
Baltimore on the other end of the scale.
Irving Oil Corp.
www.irvingoil.com
New York Mercantile Exchange
www.nymex.com
Ninety-five percent thought that the presenters and topics were very important to their businesses, presented effectively, and
given the appropriate amount of time. The very few negative comments dealt with the layout of the presentation rooms and
vendor area, citing that a printed layout would have helped with attendee confusion between sessions. "This was not
unexpected," said Goodwin. "The fact is that this was the first time we have tried this format of multiple tracks with multiple
repeats, and as we perfect this process we will be able to improve our pre-registration methods. By doing so, we’ll have a
much clearer picture of who is going to be where and when."
Overall, 94 percent of respondents claimed that the Visions Conference met or exceeded their expectations. The remaining six
percent again cited the full parking lots and a few folks mentioned the fact that we ran out of box lunches on Tuesday.
"Actually, I quickly added another hundred at the last minute as I saw the crowds! These are good problems to have,"
Goodwin responded.
The survey is still available online and you may still respond if you haven't done so already. We would love to see more
responses. Go to http://www.questionpro.com/akira/TakeSurvey?id=1046997 to complete the survey, which takes
approximately 5 minutes. Thank you for your valuable feedback. Any questions, contact Tracy at 617-923-5015 or email
[email protected].
-TOP• 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.
Robinson & Cole LLP
www.rc.com
• View the latest edition of Oil & Energy online.
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Sprague
www.spragueenergy.com
Sponsor This Newsletter!
NEFI would like to thank this month's NEON Sponsor,
NEFI's Legislative & Regulatory Action Center.
GOLD SPONSORS:
Angus Energy
www.angusenergy.com
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 [email protected] for more information.
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Fuel Advantage / Avalux
www.fueladvantage.com
HOP Energy, LLC
www.hopheat.com
New York State Energy Research
NEFI Member Benefit Spotlight
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NEON: NEFI Energy Online News
New York State Energy Research
and Development Authority
www.nyserda.org
Sid Harvey Industries, Inc.
www.sidharvey.com
Valero Energy Corp.
www.valero.com
Weil-McLain
www.weil-mclain.com
12/5/11 12:30 PM
NEFI Member Benefit Spotlight
LEGISLATIVE & REGULATORY ACTION CENTER WEBPAGE: WWW.NEFIACTIONCENTER.COM
The Legislative and Regulatory Action Center recently revised their website, www.nefiactioncenter.com. NEFI members and
friends of the industry will find this site be helpful and informative. All NEFI members are invited to join the Federal
Regulations section. This is a benefit provided only to NEFI members. Simply choose a name and password. It includes
compliance kits and regulatory bulletins. For the first time, all of NEFI's regulatory and compliance documents are centrally
located on the internet and at your fingertips!
Join or renew membership with NEFI today! Click here, or contact Joanne Sharkey, NEFI Membership Coordinator at (617)
924-1000 or [email protected].
View NEFI Membership Information
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SILVER SPONSORS:
Dennis K. Burke
www.burkeoil.com
Total Energy Solutions
www.totalenergyllc.com
On Tuesday this week the Energy Information Administration (EIA) Winter Fuels Outlook meeting was held in Washington,
D.C. Speakers at the annual Winter Fuels Outlook Conference sponsored by the U.S. Department of Energy and the EIA,
addressed the following questions:
BRONZE SPONSORS:
Griffith Energy
www.griffithoil.com
Hedge Solutions
www.hedgesolutions.com
NAOHSM
www.naohsm.org
Petro
www.petro.com
Splash Insurance
www.splash-program.com
Wohler USA
www.wohlerusa.com
• How concerned should consumers be about supplies of heating fuels and prices for the upcoming heating season?
• What are the world and domestic scenarios that could influence energy markets?
• What is the demand and supply picture for natural gas?
• How will the National Infrastructure Protection Plan be implemented and applied to critical energy facilities and distribution
systems?
• How important is energy reliability as an emerging trend for energy policy?
• What issues do policy makers face given the latest results of the National Petroleum Council Study?
Here is the coverage from the Short Term Energy and Winter Fuels Outlook.
We are somewhat disappointed with some of the things said in the media coverage regarding Oilheat. However, we believe
that some of the normal negativity that Oilheat usually receives was salvaged due to the media outreach that we conducted
prior to the conference.
In general, the articles below talk about how the cost to heat a home is going to increase this winter, no matter what fuel
source you use. Additionally, the articles do not focus particularly on heating oil. However, they focus on all heating fuels.
One particular article is damaging to the industry because of the chart attached to the article entitled, "rising cost to heat the
home." This chart is damaging because it portrays heating oil as being the most expensive fuel; what they fail to mention is
that the statistics are pulled from the northeast. This impacts the price of heating oil since it is predominantly a northeast fuel
whereas natural gas is not. This year it seems that the articles focus more on natural gas, however this does mention the oil
consumption and lack of inventory.
NASDAQ website article
State News
News From Your
State Association
http://blog.cleveland.com/business/2008/10/latest_prediction_is_familiar.html
http://realtytimes.com/rtpages/20061013_conservefuel.htm
http://www.boston.com/news/local/massachusetts/articles/2008/10/07/energy_department_warns_of_higher_heating_costs/
http://www.washingtonview.com/archives/short-term-energy-and-winter-fuels-outlook/
http://www.oilintel.com/newshome.cfm?action=showstory&news_id=7098
http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-8/122345478071640.xml&coll=2
http://www.nashuatelegraph.com/apps/pbcs.dll/article?AID=/20081008/NEWS03/810084691
To Reach NEFI Staff and All
Departments Click Here
http://findarticles.com/p/articles/mi_m2744/is_/ai_n15856447
Bay News 9 article
http://www.washingtontimes.com/news/2008/oct/08/home-heating-cost-to-rise-this-winter/
http://www.signonsandiego.com/uniontrib/20081008/news_1n8winter.html
http://www.ohio.com/news/break_news/30560784.html
http://www.timesleader.com/business/Bills_to_give_homeowners_chills_10-08-2008.html
http://www.bloomberg.com/apps/news?pid=20601207&sid=ayp_9fSPxZeA
For information on NORA please contact Traci Ross at [email protected]
See the latest NORA news at www.nora-oilheat.org.
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Exhibitor Package, Click Here
Thank You NEFI Action Center Contributors:
PLEASE NOTE:
Reporting to members on legislative
and regulatory developments or
providing pertinent compliance
information does not constitute
NEFI’s support for that particular
issue, unless otherwise stated.
NEFI only takes positions on public
policy issues after consulting its
Officers, chairs and receiving
consensus from the members of
relevant committees. NEFI’s
Government Affairs Committee
assembles on a monthly basis to
review positions and strategy on
timely public policy issues.
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) 9241000.
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U.S. & Regional Fuel Inventories
News from the Dept. of Energy
Energy Information Administration
"This Week In Petroleum" Data as of October 8, 2008
Feedback from members is
always welcome and appreciated!
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ICPA Newsletter E-Marketer Report October 3
ICPA Technical Education Center Newsletter October 1
www.meoil.com
MOC Newsletter
OHC-NH New Website
OHI-RI Website
View VFDA Fuel Line October 3, 2008
Education & Training
Read more at www.vermontfuel.com
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