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Massachusetts Oilheat Council Newsletter
March 4, 2010
In This Issue
- MOC to Host Customer Retention & Profitability Seminars
- New Privacy Laws Impact All MOC Members
- Degree Days
- Rep. Neal Asks Committee to Reconsider Efficiency Tax Credits
- Oilheat Summit Rescheduled for March 18-19
- Congressman Markey Pushes for Increased LIHEAP Funding
- Senator Kerry Involved in Climate Change
- Newsworthy
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Dear Valued Member, 

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 to Host Customer Retention & Profitability Seminars

 

Angus/RenRe Logo

 

Come and learn from a dynamic team of retail heating oil business experts from Angus Energy, RenRe Energy Advisors, and Gray, Gray & Gray Certified Public Accountants. There are two dates and locations to choose from for these seminars that will focus on customer retention and profitability; and controlling, reporting and accounting your cash flow. You can register for our March 16th event to be held at the offices of Gray, Gray & Gray in Westwood, or our March 18th event at the Springfield Marriott. For complete details and a registration, open the link below.

 
 
New Privacy Laws Impact All MOC Members
 

On March 1, 2010, new state regulations designed to protect the personal information of the citizens of Massachusetts took hold and the rules impact any business that handles personal information from customers. The regulations - 201 CMR 17:00 - are focused on having businesses implement security measures designed to prevent intentional wrongdoing and inept internal data handling protocols. The regulations impact any business that "receives, stores, maintains, processes or otherwise is permitted access to personal information through its provision of goods or services." Under the rules, "personal information" includes a Massachusetts resident's name combined with a complete social security number, driver's license or other state-issued number, a financial account number or a complete credit card or bank account number. The law is not just limited to Massachusetts-based businesses. Any out of state company that handles the personal information of a Massachusetts resident must also comply with the new rule.

 

Below are three helpful links to documents prepared by the state's Office of Consumer Affairs and Business Regulation regarding 201 CMR 17:00. MOC will be holding a webinar workshop on this new regulation in the near future, but members are strongly encouraged to seek consultation on implementing the requirements of the regulation.

 

 

 
 

Degree Days

 

The Degree Day number has changed for one, final time. The new number is toll free, 10in This will be the number you will need to dial to access the recorded daily numbers. You may also access the degree days on our website at www.massoilheat.org. We sincerely apologize for any inconvenience this may have caused.

Rep. Neal Asks Committee to Reconsider Efficiency Tax Credits

 

As previously reported, MOC has been deeply engaged with the office of Congressman Richie Neal, representative for Massachusetts's 2nd district, attempting to alter language in the current stimulus bill that allows homeowners installing certain heating equipment to claim a tax credit. As currently written, equipment installed must meet a 90+ AFUE rating in order to qualify, a number not attainable by most oil-fired boilers and furnaces. Wishing to let more Oilheat consumers in on the tax credit, the Oilheat industry embarked on a long mission to show Congress thatthe latest heating oil equipment is indeed efficient and should be eligible for the existing tax credit.

Click here to read the full letter authored my MOC and sent to Congressman Neal. 

 

After much diligence, the desired end result was achieved. Last week, Rep. Richie Neal (D-MA), a high-ranking member of the House Ways & Means Committee, asked House Ways & Means Committee Chairman Rangel (D-NY) to explore a modification to the federal home efficiency tax credit for Oilheat systems, which currently requires at least an efficiency rating of 90 AFUE.  "When a new [AFUE 86 rated] oil-fired boiler or furnace is installed in conjunction with additional technologies, such as an indirect water heater and smart controls," he said, the resulting system "exceeds the efficiency of products with a 90+ AFUE listing."  The Congressman concluded, "exploring ways to improve participating in the credit program [for Oilheat consumers] would help advance the green technology agenda and associated job growth." 

 

This week Chairman of the House Ways & Means Committee, Charles Rangel, took a leave of absence on the heels of an impending ethics committee investigation. In his absence, it is said that Representative Sander Levin of Michigan will take the gavel. MOC will work with NEFI and PMAA to be sure that the letter Neal sent to Rangel gets into the hands of the interim Chairman. More on this as it develops.

 

Most recently, however, it seems the message we pushed in the House has made its way to the Senate in the form of favorable language within Senator Bingaman, Warner and Sander's Home Star Act of 2010. The bill would establish a six billion dollar program that would offer tiered rebates to homeowners based on a tiered approach. homeowners could receive as much as $1,500 per retrofit but not to exceed $3,000 or 50 percent of the total project cost (whichever is less). Eligible measures include insulation, duct sealing, water heaters and HVAC units, windows, and doors. Homeowners seeking to make major efficiency improvements would be eligible for up to $3,000 under the Gold Star rebate program to retrofit their whole home to achieve a 20 percent energy savings in the home.

 

The program also makes available direct rebates at the point of sale for certain items. Hardware stores and large national home improvement chains can provide the rebates to the customer and then seek reimbursement from the federal government.

 

But most importantly, oil furnaces with an 86 AFUE rating or greater that use an electrically commutate blower motor and an oil boiler with an 86 AFUE rating or greater that has temperature reset or thermal purge controls are eligible for the federal rebates under the Silver Star and Gold Star programs.  This is truly a victory for the industry and will no doubt help us as we move forward with our attempts to modify the existing $1,500 tax credit.

 

Oilheat Summit Rescheduled for March 18-19

Capitol Hill DC

On March 18th, MOC's Michael Ferrante and Alisha Frazee will join industry executives, dealers and staff in Washington, DC for a policy summit. The summit, which was originally planned for mid-February but had to be rescheduled due to extreme weather in DC, is aimed at developing a strategic plan for the implementation of resolution that came out of last September's summit in Baltimore which, as previously reported,  ended in the overwhelming approval of a nationwide industry transition to ASTM-qualified biofuel products blended with ultra-low sulfur diesel petroleum distillate product, as well as the incorporation of zero-emissions solar equipment for residential water heating applications. This extraordinary vision is directly in line with the state, regional and national governmental policies currently being drafted and considered, and on March 19th, the industry will carry this message to members of Congress. "This first-ever Oilheat March on Washington is a very important step for the industry. It acknowledges that we are an industry that exists independent of gasoline and one that necessitates it's own "day on the Hill" to convey the issues specific to Oilheat," said MOC's Alisha Frazee. "It also sends a message to Washington that we (the industry) are ready and willing to make drastic changes in order to clean up our environment and help the nation move towards complete energy independence." MOC plans to meet with Congressman Richie Neal, Bill Delahunt, Nikki Tsongas, Senator Kerry and Massachusetts' newest Senator, Scott Brown. 
 

Congressman Markey Pushes for Increased LIHEAP Funding

 
On February 1, President Obama released his blueprint for the 2011 spending budget; it included only $3.3 billion for LIHEAP, a disappointing reduction from previous years when the program was fully funded at $5.1 billion.

 

As many of our members know, the LIHEAP program works like this: the federal government allocates a certain lump sum for the LIHEAP program, a small portion of which is held in an emergency contingency fund. Then, the bulk of that money is distributed out to the states on formula. States have the opportunity to secure further funds if they engage in "leveraging" programs such as Margin Over Rack (MOR). Once the states have the money, they distribute it out to community action agencies who then decide which of their applicants qualify. Qualification ceilings are also determined by the federal government; however a state is not obligated to offer the max.

 

With the economy still in flux and LIHEAP applications on the rise, Congressman Markey partnered with Rep. Oberstar, Rep. Castle and Rep. McCarthy to circulate a "Dear Colleague" letter to the House Appropriations Committee, urging that the program be fully funded at $5.1 billion in the FY 2011 budget.

 

Additionally, Congressman Markey has proposed a bill that would move the $5.1 billion cap up to $7.6, while permanently increasing the qualification standards to 75% of the state median income.

 

Senator Kerry Involved in Climate Change

 

Draft legislation penned by Senator Kerry (D-MA), Lindsay Graham (R-SC) and Joe Lieberman (I-CT) has been making news recently as it purports to "tri-partisan" and "more palatable to the majority" by replacing the cap and trade ideas contained in earlier climate change bills for a more sector-by-sector approach, namely the power generation, transportation and manufacturing ends. Preliminary reports hint that such a bill may contain a carbon emissions reduction goal of 17 percent from 2005 levels by 2020, a "cap & dividend" approach, emissions caps, investment in alternative energy, and the expanded use of nuclear power and off-shore drilling. The actual specifics of this legislation cannot be clear until an official draft is released. We will keep you updated as things progress.

Newsworthy

 
Welcome to the Desktop Councilor's "Newsworthy" section, a column devoted to news from our state, our country and our world concerning MOC and various Council related issues. The following links are the most recent in articles, TV news, etc.:
 
 
A "not quite" accurate story regarding the oil line upgrade and insurance law, MGL Ch. 453.
 
Astro/Apollo Oil is slapped with a lawsuit by Attorney General Coakley.
 
Congressman Markey pushes for increased LIHEAP funding, 2011 and beyond.
 
M.G.L. Chapter 453 gets more press.
 
Lawsuit filed to prevent "cumbersome" regs from taking effect.
 
More talk on a shifting New England political climate as Delahunt pontificates on running for reelection in one of the state's most conservative districts.
 
Despite a hit to their gasoline business in MA, Irving remains optimistic about expansion.
 
Congressman from MA optimistic that meaningful change forthcoming.
 
LIHEAP Contingency funds released during these tough economic times.
Alisha Headshot
Alisha Frazee
Association Specialist
Massachusetts Oilheat Council
118 Cedar St.
Wellesley Hills, MA  02481
Phone: 781.237.0730, MA Only 800.722.0623
Fax: 781.237.2442
 
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Massachusetts Oilheat Council | 118 Cedar Street | Wellesley | MA | 02481