Fuel Oil News

Fuel Oil News May 2014

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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22 MAY 2014 | FUEL OIL NEWS | www.fueloilnews.com pivot from burner tips to fuel injectors. The great thing about that is that as you build that summer demand you create incentives for that infrastructure to grow and become more resilient. As a result, we would like to extend the alternative fuel tax credits, and we have a lot of other good ideas. FON: What is an exciting off-season opportunity for propane marketers? Roldan: One market that's fasci- nating, and it could be 1 billion gallons, is commercial mowing. We are the only industry out there that has "clean-air" commercial mowers from several manu- facturers. You cannot get a natural gas mower — the technology does not exist today. But we have technology that is in the field that landscapers love because they get to save money compared to gasoline, and it cuts greenhouse gas emissions by about half. Those land- scape companies that have occasional problems with employees pilfering fuel — that is not an issue with propane so it's just a fantastic story. Value propositions can range from poor to great, but there are not a lot of proposi- tions out there that are simply no-brainers. FON: What is the delivery mecha- nism for getting the fuel to landscape customer? Roldan: The fuel would be facilitated in several ways, either through on-site storage or through a cylinder delivery arrangement. Most customers would have a cylinder cage on their property and the marketer would turn those over at a predetermined cycle. That is great for golf courses in particular. You can compare it to the way business is done with forklifts. If you are a big operation you probably have on-site filling capability and bulk storage, but not you would likely be using replacement cylinders. FON: Let's talk a bit about your certi- fication and training programs. Roldan: We began our certification program about 20 years ago for our indus- try employees. We have an outstanding curriculum. About 15 years ago we cre- ated a check off program the Propane Education and Research Council, and that is our research arm funded by an assessment on every gallon of propane sold that is odorized. So we have ceded the programs related to curriculum to PERC for safety; research and develop- ment; and consumer education. But, we maintain the certification part of it which is a hand-in-glove relationship with our sister organization, and we feel it's an outstanding program. l F O N FUELS

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