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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.
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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.
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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.
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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.
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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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email:
zahra@massoilheat.org
phone:
781-237-0730
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