MOC joined hundreds of lobbyists, elected officials,
energy company executives and low income
advocates at a legislative hearing on April 2 for House
Speaker Sal DiMasi’s sweeping energy bill H-3965/H-
4254 -- The Green Communities Act of 2007. The
legislature’s Joint Committee on
Telecommunications, Utilities & Energy took
testimony from a slew of interested parties including
MOC. MOC supports many of the provisions in the
300-plus page bill including:
- Consolidating the Department of
Telecommunications & Energy and the Division of
Energy Resources and creating the Executive Office of
Energy Affairs.
- Promoting programs and initiatives to encourage
and establish energy conservation and energy
efficiency in Massachusetts.
- Developing programs and initiatives that
implement the use of renewable fuels for home,
commercial and municipal heating, and
transportation.
- Establishing tighter controls over predatory utility
marketing practices and utility “affiliate” marketing and
advertising practices, and the “preferences” given to
affiliates relating to utility products and services.
- Protecting consumers from “unjust utility practices
and monitoring the quality of service provided by utility
companies.”
- Ensuring that “electric and gas service is provided
to consumers in a safe and reliable manner at the
lowest cost.”
- Developing energy data and information
management capabilities to assist in energy planning
and decision making.
- Establishing a Massachusetts Energy Efficiency
Trust Fund to assist homeowners with loans, grants
or rebates to help pay for energy efficiency
improvements.
However, MOC testified in opposition to a number of
provisions related to collecting price, inventory and
product data from “wholesalers and resellers of
petroleum products.” MOC testified that “In today’s
volatile worldwide energy markets, wholesalers and
resellers have had to develop “just in time” inventory
methods and other business models in order insulate
their companies from financial hardship, while always
being mindful of their responsibility to supply the
marketplace and customers with fuel. The petroleum
industry’s reputation in this regard is stellar here in
Massachusetts. In addition, the industry has
demonstrated that it can and will provide inventory
information to state energy officials when the situation
warrants such action. New laws and penalties in this
area are unnecessary and could pose significant
hardship on these firms.”
The legislation also contains a number of clean
energy and renewable provisions. MOC voiced the
industry’s support for bioheat saying that, “The Oilheat
industry has already embarked on a number of
innovative and aggressive efforts to help bring these
products to market. However, more work needs to be
done before biofuels can have a significant impact on
homes, businesses, government and municipalities.
This work includes petroleum infrastructure
improvements, the blending of home heating fuel and
biofuel, widespread acceptance of biofuel standards
(specifically ASTM D 6751), and extensive industry and
consumer education on the proper blend of biofuel
with home heating oil.”
MOC also urged the legislature to use DiMasi’s bill to
aid in reforming and improving the state’s Low
Income Home Energy Assistance Program (LIHEAP).
MOC testified that. “Amidst enormous business
challenges the past two years, the Oilheat industry
has continued to exhibit broad support for the LIHEAP
program. However, the industry unanimously believes
it is time for the state’s LIHEAP program to augment
and change the leveraging programs for heating oil.”
MOC offered amendments to the legislation to
increase Margin-Over-Rack Pricing (MOR), allow
retailers to offer fixed or cap priced programs to their
LIHEAP customers as a leveraging tool, and/or offer
discount off retail as another option.
MOC will keep the industry informed as debate on the
bill continues on Beacon Hill.
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