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From: Zahra Massicotte <zahra@massoilheat.org>
Subject: MOC Desktop Councilor
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MOC Desktop Councilor
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Massachusetts Oilheat Council
Desktop Councilor Newsletter
January 2, 2007
In This Issue
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Here’s the latest edition of MOC’s Desktop Councilor, an email newsletter aimed at keeping you up-to-date on MOC activities and programs that impact your business. Thank you for your continued membership support.

MOC has signed on as an associate member of the Propane Gas Association of New England (PGANE) in an effort to expand MOC’s abilities to serve current and future members who sell fuel oil and propane for space heating. “Recently our Board voted to join PGANE to help MOC grow and expand services to the home heating industry,” said MOC Chairwoman Sandra Farrell. “We’re excited about the opportunities and common interests for both fuels, especially in the areas of training and government affairs,” she said.
MOC has informed state Representative Matt Patrick that the industry cannot support his proposed two- cent per gallon tax on home heating oil to help finance the replacement of older and possibly less efficient oil-fired home heating equipment. MOC cited the following concerns:

• The prices for all home heating fuels have reached historic highs the past two years because of a number of worldwide factors including petroleum demand, geopolitical events, and high crude oil prices. Oilheat dealers have had to deal with unprecedented customer complaints about prices, and MOC’s Board believes that any additional increase in the basic price for home heating oil will be burdensome to both consumers and the industry.

• The only effective way to collect an assessment on home heating oil is at the wholesale distribution level. Most wholesale suppliers of home heating oil in Massachusetts also operate in other parts of the northeast. A tax on fuel sold only in Massachusetts will pose a significant administrative burden for these companies and force a complete retooling of their computer-based invoicing and tracking.

• The Oilheat industry nationwide currently has a 20 point per gallon assessment on heating oil to fund the efforts of a congressionally-approved program called NORA – the National Oilheat Research Alliance. Since 2000, NORA has accomplished a number of very noteworthy activities to improve the efficiency of oil-fired home heating equipment which in turn has helped consumers save on their heating bills and reduce the overall consumption of heating oil.

• House Speaker Sal DiMasi has clearly indicated that he will be pushing for legislation in 2007 that targets energy consumption in Massachusetts and alters the key departments that deal with the state’s energy matters including the Division of Energy Resources and the Department of Telecommunications and Energy. MOC’s Board believes it is wise to wait and assess the full impact of the Speaker’s legislation before committing to any other legislative proposal that impacts heating oil.

• Oilheat retailers report that more and more customers are upgrading their home heating equipment every year. Retailers often help needy households manage this expense by establishing budget arrangements. In addition, these new systems meet or exceed the state’s newly established efficiency standards.

• Although the state and federal government offer assistance to needy households to help pay for fuel and new equipment (LIHEAP & HEARTWAP programs), our Board believes that congress should do more to bolster these programs. In 2007, the Oilheat industry nationwide will petition congress for further funding for these critical programs.
In a move that could help the gas utilities convert more Oilheated homes in years to come, outgoing Governor Mitt Romney has approved two ports for liquefied natural gas in the ocean off Gloucester, the last significant hurdle to construction of the facilities, which would boost New England's gas supply by 20 percent. MOC has opposed the construction of these ports and has written to state lawmakers to voice the industry’s concern. MOC also placed an editorial last year in the Gloucester Daily Times expressing the industry’s opposition.

The US Maritime Administration will make a final decision by mid-February for the Northeast Gateway and Neptune projects, but approval is expected. At offshore ports, tankers would dock virtually around the clock at underwater buoys, where they would turn super cooled liquid back into gas and pump it through a series of pipes to New England homes and businesses. "These new terminals will allow us to safely expand gas supply without undue harm to the environment or to the fishing industry that is Gloucester's lifeblood," Romney said in a statement.

The offshore terminals faced protests from the fishing industry in Gloucester, but the companies building the offshore terminals agreed to pay a combined $47 million to compensate for the use of public waters, and for potential harm to the fishing industry and to marine life. Over $12 million of the $47 million will go directly to the Gloucester fishing fleet as mitigation, but Gloucester’s elected officials are already posturing to use some of that money to help the city overall.
Newly elected Governor Deval Patrick has chosen new leadership for government positions that impact the Oilheat industry. Patrick named former Essex County DA Kevin Burke as the new Secretary of Public Safety. Former state legislator Dan Bosley has been named as Patrick’s economic policy advisor, and Ian Bowles has been chosen as the new Secretary of Energy and Environmental Affairs.
MOC has begun preparations for the upcoming New England Home Show at the Seaport World Trade Center in Boston beginning February 24 and running through March 4. MOC has purchased a much larger space this year – double the space from prior years – so that Oilheating equipment can be showcased more dramatically. “We’re very happy to be directly across from Comcast, the show’s main sponsor, because we will be able to generate a great deal of interest due to our prime location,” said MOC’s Michael Ferrante. He said that MOC will be contacting equipment vendors this week to solicit participation in the show.
The 2007 MOC Membership Directory and Annual Handbook will be going to final print this month. MOC would like to give a special thanks to Greystone Services, Inc. for their publishing and editing services and also to the following advertisers for their support:

ADD Systems, Arlex Oil Corp., Boston Steel & Mfg. Co., Braley & Wellington Insurance, Buderus Hydronic Systems, Burnham Hydronics, Carlin Combustion Technology, Inc., Citizens Bank, COCARD, Conifer Energy, Corcoran & Havlin Insurance Agency, Inc., D.B. Environmental Services, Inc., Dennis K. Burke, Inc., Donadio Environmental Associates, Inc., Federated Insurance, Global Companies, LLP, Gray, Gray & Gray, LLP, Greystone Services, Inc., Hall- Trask Equipment, Hedge Solutions, Irving Oil, Jomar Distributors, Inc, Keegan-Werlin LLP, L.E. Belcher, Lancer Insurance Co. (ODIN), Lincoln Laboratory /Bond Tite, Minuteman Trucks, Inc., NAOHSM, NE Petroleum Service & Supply, NEFI, Norforlk Ram Group, LLC, Peerless Boilers, PriMedia, R.W. Beckett Corporation, Robinson & Cole LLP, Roth Industries, Smith Cast Iron Boilers, SPLASH- Massamont Insurance Agency, Inc., Sprague Energy, Taco, The Portland Group, Therma-Flow, Inc., Tri- State Truck Center, Inc., WEHOF Forms and Weil McLain


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