Fuel Oil News

Fuel Oil News December 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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W hen proposed legislation could help or hurt fuel oil marketers, the industry needs to make itself heard. How does it do that? Chris Herb, for one, calls his "go-to people." The president of the Connecticut Energy Marketers Association, based in Cromwell, said, "They're extremely engaged. They want to be involved and they are actively looking to [participate], whether it's promoting or protecting the industry." The go-to people are game to testify on proposed bills and to engage legislators. Then there is what Herb calls "the rise-to-the-occasion" group. "Something strikes them as so unjust, or there is something that is so desperately needed, that they rise to the occasion and become leaders on an issue," Herb said. And what qualifications does a fuel oil marketer need to make a difference in the halls of government and, in turn, the industry? "There are no requisite skills if you are passionate," Herb said. "A passionate, informed petroleum marketer will go a very long way in seeing issues to the end," resulting in outcomes that are in the industry's best interests, Herb said. Some members who advocate may be very skilled at writing testimony or very com- fortable speaking in public, Herb noted, but having such skills is not a requirement: "If you are passionate you will find a way to effectively communicate where you stand." Kate Childs, vice president of Tuxis-Ohr's Fuel in Meriden, who chairs CEMA's legislative committee, said of fuel marketers advo- cating, "Anybody could do it, because everybody is knowledgeable about the product we're selling." Childs said she understood that some members might be wary about dealing with legislators. "But," she said, lawmakers "are not as educated about the product as we are. That knowledge lends confidence when it's time to step forward and speak publicly. You're not uncomfortable when you know the topic. There's no rea- son to be." A proposed bill to create a "guarantee fund" spurred Childs, along with Julie and Kevin Roman of Roman Oil in Meriden, to act (as outlined in the CEMA awards coverage in the November issue of FON). "That's a good example," Herb said. "Julie and Kevin Roman had no experience whatsoever in engaging in legislative issues, but it struck them as unfair, unjust—and they decided to get engaged." The bill for a guarantee fund was proposed after Ace Oil in Meriden went out of business, taking customer pre-buy deposits with them. As a result, Herb said, "about a million-and-a-half dollars' worth of pre-paid contacts were never honored. Those cus- tomers never received fuel even though they paid for it in full." Under the proposed legislation, each oil marketer in the state would have been required to pay more than $4,000 into the guar- antee fund, regardless of whether or not they offered pre-buys. Then, if a heating oil dealer closed and was unable to provide the fuel oil that was promised, money from the fund would be used to make those customers whole. The Romans and Childs played a major role in lobbying for alternative legislation. The marketers were honored as Marketers of the Year by the Connecticut association, which noted that they "stood up and took the bull by the horns," and were instrumental in persuading legislators to support a different bill that did not call for creation of a guarantee fund. Herb said he expects legislators will be hearing complaints about the Ace Oil closing from Ace customers—and voters—in the new legislative session. He said he would not be surprised if the proposal for a guarantee fund resurfaced. "We have a lot of concerns about that," Herb said. If the issue does come up again, the Romans and Childs might find themselves called up for another tour of duty. Herb said the association functions in part as an "advance scout." "We're out there trying to sniff out issues prior to them 24 December 2014 | FUeL OIL NeWS | www.fueloilnews.com BUSINESS OPERATIONS Speaking Up for the Industry What does it take to talk to politicos? By Stephen Bennett "Our basic job is to be informed and then communicate whatever the issue might be to the membership in general. Then we work with the membership to try to come up with consensus on how those issues should be dealt with." — Chris Herb Chris Herb

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