Fuel Oil News

Fuel Oil News February 2015

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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ASTM VoTe openS Door for BioDieSel innoVATion in HeATing oil ASTM International, an organization which sets industry consensus standards for fuels and lubricants, has voted to approve performance specifications for blends of 6 to 20% biodiesel with tradi- tional heating oil. The move is a significant leap forward in the industry effort to boost the per- centage of cleaner burning biodiesel that homeowners and building managers use in oilheat equipment common to the Northeast and Mid-Atlantic. The updated ASTM D396 Standard Specification for Fuel Oils, containing the new grade for blends of 6 to 20% biodiesel, will be finalized and published by ASTM for public use after the usual ASTM review and editing process. It is expected by February 2015. The mixture of biodiesel and heating oil is marketed as Bioheat® fuel, a regis- tered trademark. "The fuel oil industry is reinventing itself as a 21st century fuel by moving to higher blends of low carbon biodiesel and near-zero sulfur levels across the board," said John Huber, president of the National Oilheat Research Alliance. The Bioheat renaissance gives oil- heat dealers, mostly small, family-owned businesses, the ability to provide their customers with a desirable new product, according to Huber. "Bioheat gives consumers the choice to use a clean, domestically produced fuel without having to invest in an expensive natural gas system," said Paul Nazzaro, who leads the National Biodiesel Board's Bioheat outreach program. "Setting these performance specs for increased biodie- sel levels is hugely significant, because it opens the door for innovation in the heating oil industry and will allow more consumers to enjoy the full benefits of this fuel in their homes and businesses." Nazzaro added that environmentally speaking, a 20% blend of biodiesel puts Bioheat on par with natural gas, the big- gest competitor to oilheat, while higher biodiesel levels up to 100% biodiesel could reduce the carbon footprint of Bioheat up to 80% compared to traditional fuel oil. The passage of 5% biodiesel into the No. 1 and No. 2 grades of ASTM D396 occurred in 2008. During the last six years, the Bioheat Technical Steering Committee, comprised of industry tech- nical experts and led by NORA and NBB, developed a tremendous amount of data that formed the basis for the ballot. The vote to pass the ballot came last week at the semi-annual meeting of the ASTM Committee D02 on Petroleum Products. "The technical data with this ballot for the new B6-B20 grade verified what we have known for years—B20 made with high quality biodiesel works well," said Seth Obetz, president of Pennsylvania- based Bioheat distributor Worley and Obetz. "We have been marketing high quality B20 for 14 years and our custom- ers see fewer problems with B20 than with conventional heating oil." Wholesale fuel provider Amerigreen reported at the ASTM meeting that it has more than 100,000 B20 customers. The company said that number is growing because Bioheat customers see less main- tenance than with conventional fuel oil. The NBB and NORA have invested millions of dollars in Bioheat research, outreach and education through fund- ing provided by oilheat dealers, biodie- sel producers and the soybean checkoff program. Made from a diverse mix of sus- tainable resources, biodiesel is an Advanced Biofuel as designated by the Environmental Protection Agency. pMAA AnAlySiS of 2015 SpenDing Bill In mid-December, President Obama signed into law a $1.1 trillion spending package which will fund the govern- ment through Sept. 30, 2015. The omni- bus spending bill provides $8.14 billion for the EPA. The Commodity Futures Trading Commission received a funding boost of $35 million bringing its budget to $250 million and the Department of Energy received $10.2 billion. The Leaking Underground Storage Tank Trust Fund received approximately $92 million, the Northeast Home Heating Oil Reserve received $7.6 million and the Low Income Home Energy Assistance Program, $3.39 billion. Several policy riders were added to the 2015 Omnibus package including an amendment by Senator Susan Collins (R-ME) to suspend for one year the hours-of-service restart changes that became effective last year. The pro- www.fueloilnews.com | fUel oil neWS | feBrUAry 2015 3 DATELINE • ASTM Vote Opens Door for Biodiesel Innovation in Heating Oil • PMAA Analysis of 2015 Spending Bill • NORA Initial Project Opportunity Notice Deemed a Success STATES - pg 10 • CEMA: Law Alert • NPGA: Existing Conn. Rules Remain in Effect into 2015 • NPGA: N.H. Alternative Fuel Dealers Tax • PPA: Pennsylvania Oil Franchise Tax to Increase in 2015: 9.8 Cents for Gasoline, 13.2 Cents for Diesel • $800k Settlement against Tennessee Gas Pipeline FUELS/EIA - pg 12 • New Hire at PGANE • EIA Short-Term Energy Outlook, Jan. 13, 2014 Highlights • EIA: Lower Crude Oil Prices Further Reduce Expected Spending on Heating Oil This Winter BUSINESS OpErATIONS - pg 21 • Statement from NEFI Chair Sharon Peterson • PMAA: New Law Suspends Enforcement of CDL Driver 34-Hour Restart until Sept. 30, 2015 • Onspot Goes Global • U.S. Small Business Owners Have Positive Economic Outlook for 2015 • Sourcebook Updates HVAC/HyDrONICS - pg 30 • Delaware Valley Chapter Gives Back During the Holiday Season • PEI Publishes Generator and Oil Burner Fueling Document • OESP is Seeking Candidates for 2015 Awards Featured News DateliNe BREAkING NEWS

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