The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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edge recent technological advances in heating oil efficiency. New high efficient oilheat equipment combined with the near elimination of sulfur content and BioHeat and plentiful sup- ply makes heating oil cleaner, cheaper, more efficient, safer with a lower carbon footprint than natural gas. Unlike electric and natural gas utilities, oilheat infrastructure was developed without taxpayer or ratepayer money and none is needed to maintain it. Incentivizing oilheat customers to make costly conversions to natural gas is not economically rational, violates current fuel neutral policy and unlikely to result in lower heat- ing costs or emissions. Additionally, Congress should be treating both oil and natu- ral gas pipelines equally but recent legislation favors natural gas over oil. The House passed the "North American Energy Security and Infrastructure Act" (H.R. 8) which concerns PMAA because it is not fuel neutral since it would expedite interstate natural gas pipeline approvals at the Federal Energy Regulatory Commission and does nothing to expedite oil pipelines. Rather than deregu- late the natural gas pipeline permitting process, Congress should require that regulators and gas companies increase system effi- ciency by requiring that the thousands of miles of existing natural gas pipelines that are aging or obsolete be repaired or replaced. PMAA continues to urge the Senate not to include the language in future comprehensive energy policy legislation. Additional Issues: Continue the fight over the Department of Labor's proposed manager overtime rule changes, which would force businesses to pay exempt employees a minimum of $50,440 in 2016 with automatic threshold increases every year thereafter. The proposal more than doubles the current minimum sal- ary needed to comply as exempt from overtime requirements. PMAA will be supporting legal and Congressional efforts to delay and/or kill the rule when it's finalized - likely finalized by summer 2016. Also, PMAA will continue to monitor the ULSD corrosion issue. EPA is conducting a field study to determine the cause of ULSD corrosion in USTs. The EPA study is expected to be completed by the end of 2015 and/or early 2016 at which time the agency will consider whether new regulations to prevent ULSD corrosion are needed. PMAA plans to meet with EPA once the report is finalized. PMAA will also continue to fight a 10 micron diesel fuel filter mandate at NCWM as well as continue to support the higher elevation states in their fight to maintain 85 octane motor fuel at ASTM and NCWM. Massachusetts Energy Marketers Association Michael Ferrante, president of the Massachusetts Energy Marketers Association offered the following perspective on 2016: As MEMA enters 2016, there are a number of very important challenges facing the industry, in tandem with some very valuable opportunities to maximize on the industry's behalf. From a regulatory and legislative perspective, MEMA continues to focus primarily on two key state issues: derail- ing state legislation that could impose a 30-40-cent per gallon "carbon" tax on home heating oil and diesel fuel; and playing a key role in stopping a major regional natural gas pipeline expansion effort that must pass through Massachusetts to ultimately be successful. On the carbon tax, MEMA has spent considerable time working with key legislative leaders to educate them on the advancements the industry has made over the past 5 years with Bioheat fuel blends that have significantly reduced the carbon intensity of the fuel. In addition, MEMA has educated lawmakers on the economic impact a carbon tax would have not only for consumers but also on retail heating oil dealers who are vital to the energy needs of the state and the overall economy. On the well-publicized natural gas pipeline matter, MEMA held successful meetings in 2015 with the Massachusetts Attorney General and her staff as well as key government officials to explain the industry's opposition to the project that has a projected cost of $8 billion. MEMA cited concerns that Massachusetts electric rate payers would shoulder over 50% of the $8 billion price tag, and that additional natural gas capacity is not needed since the heating oil industry along with a key supplier of liquefied natural gas have long-demonstrated their continuing roles in helping to produce electric power. MEMA was pleased when the Attorney General released a comprehensive report in November of 2015 supporting MEMA's position and finding that the region does not need additional pipeline capacity at this time. The natural gas utilities and the big pipeline companies continue to press for federal approval of the projects and MEMA will continue to be a voice of opposition in 2016. On a federal level, MEMA will continue to work with its Washington-based government affairs team from the New England Fuel Institute and the Petroleum Marketers Association of America on all energy, environmental, transportation and small business matters that come before Congress and federal regulatory bodies. Moving into 2016, MEMA is most pleased to be able to con- tinue the development and implementation of programs funded through the National Oilheat Research Alliance. MEMA will continue to use its NORA funds to advance consumer aware- ness of oil heat, BIOHEAT fuel and energy efficiency through television, radio, print, internet and social media channels; and in partnership with the National Biodiesel Board. MEMA will also continue to offer comprehensive industry training programs to all company owners, customer service personnel and heating equipment technicians. 12 FEBRUARY 2016 | FUEL OIL NEWS | www.fueloilnews.com STATE BY STATE NEWS