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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www.fueloilnews.com | FUEL OIL NEWS | march 2014 15 self-assessment would help level the playing field with the large competing utilities, improve the ability of the industry to compete and thus provide additional value to consumers. The check-off mechanism is seen as an efficient and fair col- lection mechanism — a small, uniform assessment that allows wholesalers and retailers to work cooperatively without violating anti-trust laws. It provides an efficient use of resources since the mechanism allows management of the program to be small and limited and utilize existing industry resources to focus the program's efforts on critical activities, such as research and development, consumer education and technician training. Finally, being industry self-funded there is zero government spending on the program. However, that aspect has not escaped some criticism. The Washington Times ran an article on Feb. 2, 2014, aggres- sively titled: "Congress Seeks to Jack up Fees on Home Heating Oil in Midst of Frigid Winter." The article focus was on NORA reauthorization specifically, and it noted that the program costs would possibly, if not likely, be passed along to consumers even though that is specifically prohibited by law. However, the article also noted the "hit" a consumer might take for such an illegal action during an entire heating season would be an average of $1.80 — a figure that hardly measures up to the tone of the headline. This is especially true in light of the savings oil heat customers have enjoyed as a result of the program. "Since NORA was first passed, I believe we have cut consumer heating bills nearly in half," said Gilligan. "There have been signifi- cant gains in efficiency, better fuel and fuel management, so it has really benefited the consumer significantly. It's almost laughable for anybody to claim this is a big burden for the consumer. It's a plus for the consumer." Why Was/Is NORa ImpORtaNt? The benefits NORA has provided are hard to dispute, and it is the resumption of those efforts that have so many in the industry excited by this development. On the consumer education front, NORA promoted oil heat as a contemporary fuel that is as safe, clean and (with the latest appliances) as efficient a heating solution as any other on the market today. NORA's professional education activities were centered on the organization's certification program and provided continuing education, training and certification for industry service profes- sionals. NORA also funded research, typically through Brookhaven National Laboratory, that addressed a range of performance capabilities from the burner to the tank. In fact, NORA's initiatives have helped to reduce heating oil consumption by 30% over the last decade, according to the organization, which amounts to nearly $600 in annual savings per customer. "I think when you look back at what NORA did for the industry, it helped educate consumers on the benefits of oil heat," said Michael Trunzo, presi- dent and CEO of the New England Fuel Institute. "And, I think a bigger ben- efit was the education and training for technicians and employees to help drive a consistent workforce. Even more important was the development and coordi- nation with Brookhaven National Laboratory in the development of more energy-efficient appliances, and then the instituting of biodiesel blending into (low- sulfur) fuel. Without NORA a lot of that R&D was really going to stop, because there are no federal dollars going into this space." Trunzo noted that reauthorization opens the door for more advancements, with research on B20 (20% bio blend) being a priority. That mixture with ultra-low sulfur oil would burn cleaner than natural gas, be more efficient and make the industry more competitive when facing current challenges the LegIsLatIve BattLe The legislative battle was long and tough, but it amounted to what would be termed in the military a "low intensity conflict." "The effort has been really good," said Huber. "Within our community of oil heat dealers and petroleum marketers throughout the country, we've been calling on people collectively and they have been rising to the cause. We have not been doing this in a blanket, grassroots manner or something approaching trench warfare — it's all been very strategic and very oriented towards a specific member of Congress at a specific time. From an industry perspective our guys have picked it up. State association execs and their dealers in specific communities have done exactly what we've needed them to do." For all the groundwork, it still came down to getting the reau- thorization into the farm bill, and keeping it there. "That was a tough fight all the way to the end," Gilligan said. "In those types of circumstances [a major bill moving through By KIETH REID Fuels Michael Trunzo