Fuel Oil News

Fuel Oil News November 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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COHA tions and marketing background. I think that is going to be positive for all of us. FON: How will you be working the messaging? Koch: Oil heat is not illegal. We have a right to be in business and a lot of the time we get painted by a perception related to a (negative) positioning of oil in general and we want to focus on that interaction between oil heat and the consumer. When a person turns on their oil heat in the winter and they feel the nice warm comfort that they have and they have a high energy efficient furnace that is going to reduce their cost and they are warm and comfortable, that is a positive and we need to associate ourselves with that. This industry has done a very good job of developing equipment that has moved us into the 21st century in regard to efficiency. Many of the building codes in Canada and the national code for that matter have now added energy efficiency as a prerequisite of the building code. The 90 AFUE furnaces have become the standard by which all new homes in Ontario, and many of the other provinces, are going to have to meet in their building codes. We are moving forward toward 96 percent efficient furnaces and storage products that will last longer and provide more certainty against leaks and spills. We have to get out there and let people know that we are not your grandfather's oil heat. FON: How about the government affairs aspects? Koch: We are working with some of the regulators right now as well as the insurance companies and starting to work with governments to ensure that our GreenTECH Certification (for technicians) takes on more of an academia flavor. It's not that we are going to be a self-regulatory body, but that the regulatory bodies should work with us to help develop those educational pieces. That is an area that is just starting to take hold in Canada, and I am hoping in the new year to be able to roll out the new program so that everyone can see where we are going with it. We are going to be working (regionally) with governments and insurance companies and standards bodies to make sure that as they go through the update process on standards that we have a say at the table. We've done it, but we haven't done it well because we haven't (previously) had that experience in the government affairs area. FON: When you get to a more regional focus, what are some of the specific issues the industry is facing? Koch: In Ontario, there is a move toward looking at how we can provide a larger palette of services for our members. We've started to see — not a transition, but an increase among our distributor members going to multiple-fuel distribution. That is only because the market is declining, and when the whole pie shrinks, you need to get much more of that pie to maintain your business model. I think we are probably going to do two things. First, we are going to provide them stronger information on multiple fuel delivery regulations, requirements and things like that. I do not think we are going to be an advocacy group for multiple fuels, but I do think as they start transitioning toward that we need to be able to help them do that so that we don't lose them to the other fuels and their associations. The second will be to work at rebuilding the relationship with the regulatory body in Ontario — the technical safety and standards group — by working with them in key areas that they want to improve. Obviously when an inspector comes in and looks at a distribution company, or for that matter the technicians that do the work at a consumer residence or commercial facility, there can be inconsistencies among the individuals that are doing the reports. We are going to look for ways to be able to identify areas that are important so we can get consistency within the officers that are going into check and make sure that the members are aware of the issues that they are going to be looking for. On the East Coast, we're going to be working with insurance companies to collect data in order to be able to understand the issues surrounding spills and any product that could be perceived as involving the environment and that we incorporate some kind of training for our people in that area. The GreenTECH program in Ontario is now being recognized by many insurance companies, and they are mandating the people that are doing the (furnace and tank) inspections and repairs need to be GreenTECH certified. That is great recognition of the training that we have done and that insurance companies recognize that this is positively impacting some of the issues they have dealt with in the past. We want to continue that program in the Atlantic provinces. Also, propane is becoming more aggressive with their campaigns on the East Coast because oil heat represents up to 60 percent of the market. So that puts a big target on our backs. We think part of the national communications program to consumers can be spun off regionally there to really help consumers understand that they made the right decision in using oil heat. FON: What has been one of the major surprises you've had since you took over the leadership of COHA? Koch:I think one of the biggest things that has been a surprise to me has been the support and engagement of the members. I've been a president or a vice president of a lot of different trade associations over the past 15 years and I can say without doubt that this particular association has a strong engagement by the members. They all want to help move the process forward. It's really been a bright light for me to be able to engage those people and get them to get excited in their industry again. When they are excited, that comes to me and I hopefully exude that when I'm talking to other people. I also think that one of the unique things is the number of young people—at least in comparison to my age—that are really engaging in this industry and wanting to be part of it. l F O N www.fueloilnews.com | FUEL OIL NEWS | NOVEMBER 2013 25

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