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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Marketing The State of Oilheat Marketing The Connecticut Energy Marketers Association has created a NORA-like program at the state level. Will other state associations do the same? B y S t ep h en B enne t t T he Connecticut Oilheat Alliance was established last year by the Connecticut Energy Marketers Association (CEMA). The voluntary program in the Nutmeg State is designed to make up for the failure of Congress to re-authorize the National Oilheat Research Alliance (NORA), which was funded by a mandatory check-off program (see sidebar for details). Leaders of at least two other state associations view the move positively. ���It���s a good idea,��� said Matt Cota, executive director of the Vermont Fuel Dealers Association (VFDA). ���We haven���t undertaken [such] an initiative, but we certainly recognize that the loss of NORA has had an impact on the oil heat industry in Vermont as well.��� Michael Ferrante, president of the Massachusetts Oilheat Council (MOC), said, ���I feel very confident that the association will submit a request to our attorney general for her opinion on creating such a state-level fund that would mirror a NORA model. That is something that our board of directors is going to pursue.��� Ferrante said he expected the MOC would make the request in late March or early April. Though Connecticut was successful in winning approval for its program, Ferrante added, ���there���s no guarantee that other state attorneys general would allow this to move forward.��� A state-level program in Massachusetts, modeled after the Connecticut program, would be voluntary, Ferrante said. ���It would not be a blanket assessment on every gallon of heating oil sold by every retailer.��� Even if a program were approved in Massachusetts, it would require strong support to succeed, Ferrante noted. John Huber, president of NORA, did not return calls asking for comment on the state-level program in Connecticut and the outlook for re-authorization of the national program. The association executives said they remained committed to winning re-authorization for NORA. Cota of the Vermont group said, ���We have not given up hope that we can get NORA reauthorized, and we are working very hard on that.��� 18 March 2013 | FUEL OIL NEWS | www.fueloilnews.com Cota pointed out that Rep. Peter Welch (D-Vt.) is on the Energy & Commerce Committee in the U.S. House of Representatives. ���We are hopeful that the congressman from Vermont and Senator [Jeanne] Shaheen from New Hampshire can help convince their brethren to pass NORA and we can get it back. It would be good for the oil heat industry and it would be good for our customers.��� Ferrante of the MOC said the overriding strength of a checkoff program such as NORA is that ���Congress approves it, the industry votes on it,��� and it is mandatory. ���When we voted on NORA initially there was overwhelming support for the program,��� Ferrante recalled. ���The beauty of it is that it captures everyone ��� every retailer, every gallon of fuel purchased in every participating state. I would call it the Holy Grail of the industry. We have to get it back.��� Though optimistic that NORA will be re-authorized, Ferrante said the challenge is ���formidable.��� He cited the biggest challenge as ���non-activity��� in Washington. Still, the team of people involved in the NORA program and who are trying to get it reauthorized are very dedicated and very hopeful,��� Ferrante said. ���It���s the retailers who are really going to be able to help us win reauthorization,��� Ferrante said. ���We hope that when a retailer tells his or her tale to their local congressperson that���s going to be the thing that moves him.��� Gene Guilford, president of CEMA, explained in a recent Q&A via email that the state-level program in Connecticut is like NORA, but different in certain crucial respects: Fuel Oil News: Why did CEMA create the Connecticut Oilheat Alliance? Guilford: Given the extraordinary pressure being brought to bear by the natural gas industry in our market, and efforts by government to seemingly help natural gas, and the constant presence of national energy companies in the paid media advocating natural gas ��� we believed we needed to create the