Fuel Oil News

Fuel Oil News February 2013

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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dateLiNe credits were made retroactive to January 1, 2012, they can be used for qualified equipment that was installed any time after December 31, 2011. Qualified equipment includes: Water Heaters ($300 Tax Credit) • Electric heat pump water heaters with an energy factor of at least 2.0 • Natural gas, propane, or oil water heater with an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent Furnaces ($150 Tax Credit) • Natural gas, propane, or oil furnace with an AFUE of not less than 95 Boilers ($150 Tax Credit) • Natural gas, propane, or oil boiler with an AFUE of not less than 95 Air Conditioners and Heat Pumps ($300 Tax Credit) • Split system central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (16 SEER; 13 EER) • Packaged central air conditioner that achieves the highest efficiency CEE tier as of January 1, 2009 (14 SEER; 12 EER) • Split system electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.5 HSPF; 12.5 EER; 15 SEER) • Packaged electric heat pump that achieves the highest efficiency CEE tier as of January 1, 2009 (8.0 HSPF; 12.0 EER; 14 SEER) Advanced Main Air Circulating Fan ($50 Tax Credit) • A fan used in a natural gas, propane, or oil furnace with an annual electricity use of no more than 2 percent of the total energy use of the furnace reFINerSPeTITIONePaTO WaIveceLLuLOSIcbIOFueL MaNDaTe The American Fuel & Petrochemical Manufacturers petitioned the Environmental Protection Agency to waive the 2012 cellulosic biofuel mandate, citing a lack of domestic supply for commercial use. The action marks the second year in a row that it was forced to file a waiver petition for "a non-existent biofuel" that EPA has mandated under the Renewable Fuel Standard (RFS), the group, which represents refiners, said. (While the Clean Air Act requires EPA to act on the petition for waiver within 90 days, AFPM says it requested that the agency move expeditiously because the compliance period for refiners ends on February 28, 2013, and cellulosic biofuel waiver credits for 2012 must be purchased on or before that date.) The refiners group says that the EPA Moderated Transaction System (EMTS) demonstrates that there has been, and continues to be, an inadequate domestic supply of cellulosic biofuel. In 2011, it says, U.S. refiners were required to use 6 million gallons of cellulosic biofuel to meet the EPA-established mandate, yet according to EMTS, zero cellulosic biofuel was actually produced. To date in 2012, just 20,069 gallons of cellulosic biofuel has been produced, all of which was exported, the group says. This amount falls far short of the EPA-mandated 10.45 million ethanol-equivalent gallons of cellulosic biofuel. In addition, since the cellulosic that actually was produced was exported, refiners cannot use credits generated from these biofuels for complying with the federal mandate. Here is more from the group's statement, dated Dec. 31, 2012, and posted on its website: "If EPA fails to grant the waiver, refiners will be forced to pay several million dollars for a product that does not exist. This hidden tax on the refining industry disadvantages fuel consumers and is not what Congress intended when it incorporated the waiver provisions into the RFS. CaLeNdar oF eVeNts MarcH The Work Truck Show 2013 March 6-8, 2013 Indiana Convention Center Indianapolis, IN www.ntea.com aPrIL Atlantic Region Energy Expo 2013 April 30 – May 2, 2013 Atlantic City Convention Center Atlantic City, NJ www.areetradeshow.com JuNe The NEFI Energy Expo June 11 & 12 Putnam Clubhouse at Gillette Stadium Foxborough, MA Contact: nefiexpo@gstone.biz Cleaner Heat 2013 June 18 & 19 Delta Beausjour in Moncton, New Brunswick Contact: veronica.yu@coha.ca "EPA's ambitious timeline for introducing cellulosic biofuel into the fuel supply market continues to be unrealistic despite billions in incentives to renewable fuel producers," said AFPM President Charles T. Drevna. "Congress foresaw that the aggressive renewable fuel standards might be unattainable and established several waiver provisions in the Clean Air Act including for inadequate domestic supply. If zero production doesn't meet the definition of inadequate, then it is time for Congress to reexamine the entire RFS and its failure to produce their desired results." AFPM, (formerly known as NPRA, the National Petrochemical & Refiners Association) is a trade association representing manufacturers of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as petrochemicals. FUEL OIL NEWS (ISSN 0016-2396), Canada Publication Mail Agreement #1588621, is published monthly by Bev-Al Communications, Inc. 1030 W. Higgins Road, Suite 230, Park Ridge, Il 60068. Circulated free of charge to qualified individuals in the oil heating industry in the United States. Additional and/or personal copies are available on a paid subscription basis only. 1-year subscription rates: $28.00 USA. $40.00 Canada and Mexico via service postage. $90.00 other foreign countries via air-mail postage. Single copies: $8.00 U.S. via first-class postage. $12.00 other Canada/Mexico/Foreign via airmail postage. Payable in US currency. Periodicals postage paid at Park Ridge, IL and additional mailing offices. Copyright 2013 by Bev-Al Communications, Inc. Reproduction of any portion or portions of this publication is specifically prohibited without written consent. Postmaster: Send address changes to FUEL OIL NEWS, PO Box 4290, Port Jervis, NY 12771. 4 February2013| FueLOILNeWS|www.fueloilnews.com

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