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Massachusetts Oilheat Council Newsletter
January 29, 2010
In This Issue
- State Responds to MOC Queries on 2010 Biofuel Mandate
- MOC to Testify Next Week in Support of Oil Burner Code Changes
- MOC Will Seek Extension for Oil Line Upgrade Law
- President Releases LIHEAP Contingency Funds
- Oilheat Summit and Day on the Hill, February 11-12
- Congressman Neal Working with MOC on AFUE Language
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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.
 

State Responds to MOC Queries on 2010 Biofuel Mandate

 

Starting this July in Massachusetts, the first-in-the nation biofuel mandate for both heating oil and diesel fuel will begin and MOC has been staying on top of all the elements regarding the implementation of the law. Compliance for the biofuel mandate will be at the wholesale supplier level and last year MOC established a wholesale task force to review the biofuel law, join MOC at key meetings with state energy officials and review and comment on pending regulations. The task force members include CITGO, Global, Gulf, Irving, LE Belcher, Noonan Terminals, Sprague, Total Energy Solutions and the National Biodiesel Board.

 

MOC has been pressing the state for the latest information on when the draft regulations will be released for comment, and for details on how Massachusetts officials will track and seek compliance on the flow of biofuel across state borders at the wholesale level. MOC President Michael Ferrante reached out last week to Phil Giudice, Commissioner, Massachusetts Department of Energy Resources. Phil's response is as follows:

 

"Thanks for you email and your continued diligence and preparedness to engage in the Biofuels Mandate. DOER, with the EEA and DEP, continue to work on the design and logistics of starting the program on time. Staff has had numerous meeting with a range of state agencies that may offer appropriate data and regulatory oversight of the petroleum industry to facilitate the program compliance and tracking needs. We have also been in discussions with the EPA and California on the largest progress (and delays) on protocols for GHG accounting for biofuels. Additionally, DOER had prepared and will shortly post an RFR for a consultant to assist DOER staff over the coming months to prepare the final design elements of fuel tracking and compliance. Once this consultant is on board, we will be reaching out again to targeted stakeholders to seek additional information.

 

The writing and public review of the draft regulations will likely not take place until March or April after we have fully considered the details necessary. This will still allow for regulations to be in force for July 1st, to begin an Early Action Year. We are cognizant of the uncertainty out work has created and the narrowing timeframe, which is one reason why we have chosen to implement the Early Action Year for the first year. Thanks again for your leadership."

 

MOC will continue to stay on top of this vitally important transition to a biofuel blend for the industry.

MOC to Testify Next Week in Support of Oil Burner Code Changes
 

MOC's Michael Ferrante will provide brief testimony next week at a public hearing before the Board of Fire Prevention Regulations (BFPR) in support of code revisions to 527 CMR 4.00 - Oil Burners. The revisions, crafted by the 527 CMR 4.00 Subcommittee back in the fall of 2009, are primarily focused on bringing the regulation in line with the new oil line upgrade/homeowner insurance law that MOC helped write and get enacted in early 2009. The code revisions include a new form for the line upgrades - Form 1A. Michael said, "We fully expect the BFPR to approve these changes and we do not expect any opposition. Following the public hearing the revisions will go to the state attorney general for approval and publication." (See related update on the oil line upgrade law below.)

 

MOC Will Seek Extension for Oil Line Upgrade Law

 

Although MOC and state regulatory officials have moved as quickly as possible to write and enact oil burner code revisions to allow for implementation of the new oil line upgrade/homeowner insurance law, MOC has embarked on a legislative effort to secure an extension of the deadline for the industry and homeowners to comply with the oil line upgrades. The current deadline is July 1, 2010. "For a number of very important reasons, MOC is working with the state legislature on securing an extension," said MOC's Michael Ferrante. More details on MOC's efforts are forthcoming.

 

Additionally, MOC has been working with state officials from the Department of Environmental Protection (DEP) on a consume awareness campaign aimed at informing the general public of this new law and its impending compliance deadline. MOC assisted in drafting a consumer fact sheet, Homeowner Oil Heating System Upgrade and Insurance Law, that is currently available for viewing through the DEP's website .

 

President Releases LIHEAP Contingency Funds

 

In response to a strong urging from several low-income advocacy sectors and consumers alike, President Obama last week released the remaining monies allowed for in the FY 2009 budget for the Low Income Home Energy Assistance Program (LIHEAP). Last year, the budget included $5.1 billion for the program, $4.5 million of which was given to the states under the regular program and $590 million which was set aside in an emergency reserve fund. In light of the current economic distress and a colder than normal winter in certain areas of the country, President Obama decided last week to release $490 million of the contingency funds to the states under formula, retaining $100 million for possible future use. Massachusetts received a little over $6 million in additional funds due to this measure.

 
Oilheat Summit and Day on the Hill, February 11-12
 
On February 11th, MOC's Michael Ferrante and Alisha Frazee will join industry executives, dealers and staff in Washington, DC for a policy summit 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 February 12th, 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 Neal Working with MOC on AFUE Language

 

As previously reported, MOC has been working with NEFI, PMAA and other members of the recently formed "Oilheat Alliance" to change the stimulus bill language pertaining to consumer efficiency tax credits to better favor heating oil consumers. A while back, MOC's Alisha Frazee drafted a letter to MA Congressman and senior member of the House Committee on Ways and Means, Richie Neal, asking him to write a letter to Ways and Means Chairman Rangel on amending the current stimulus language. (Click here for more details.) Just last week, MOC received an email from Neal's office confirming the Congressman's commitment to sending a letter. MOC will meet with staff from that office during the aforementioned Oilheat mach on Washington, February 12th.

 
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