Fuel Oil News

Fuel Oil News December 2012

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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DAteLiNe cOALITIONOFmILITAry bIOFUeLSUPPOrTerSThANkS SeNATOrSFOrNATIONAL DeFeNSeAUThOrIZATIONAcT AmeNDmeNT The U.S. Senate backed Department of Defense (DoD) plans to use advanced biofuels as part of its strategy to achieve important national security objectives. A broad coalition of organizations representing farmers who grow energy crops, the advanced biofuels industry which converts these feedstocks into drop-in fuels, the customers who procure the fuels, and national security organizations today thanked Sens. Kay Hagan (D-N.C.), Tim Johnson (DS.D.), Mark Udall (D-Colo.), Patty Murray (D-Wash.), Susan Collins (R-M.E.) and other cosponsors for their important amendment to the National Defense Authorization Act for Fiscal Year 2013. The Defense Production Act (DPA) Advanced Drop-In Biofuels Production Project is focused on creating a publicprivate partnership that will provide incentives for private-sector investment in cost competitive, advanced biofuels production capability. DPA���s long-term track record of success dates back to the 1950s. Its legislative authority has been used to support the development of critical U.S. defense industries including steel, aluminum, titanium, beryllium, semi-conductors, radiation-hardened electronics, and even the Navy���s nuclear program. Adopting advanced ���drop-in��� biofuels will help the DoD and the nation achieve broader national security objectives. Overreliance on oil puts U.S. troops at risk of supply disruptions during military or humanitarian missions. Moreover, the oil market is unpredictable and the price per barrel of oil often fluctuates dramatically, which can have a significant impact on military budgets. It is increasingly important to find domestically produced alternatives to improve the country���s energy security, meet global energy demands, and provide jobs, while strengthening our military and domestic industry. The DoD���s partnership with private indus- FeAtureD NeWs National Defense Authorization Act Amendment Gray, Gray & Gray Bioheat�� fuel survey ICPA member update OESP celebrates 60th anniversary ASHRAE to hold ���Breaking News��� standards update Taco receives vendor of year award CHS opens Maine propane terminal NATE certification opportunities at AHR Expo try is a critical step towards achieving these goals. Already, private companies have made substantial investments in research and development to develop these advanced biofuels. The amendment offered by the senators will allow DoD to enter into contracts to build and refurbish facilities to refine biofuels. The amendment was passed by the Senate 54-41 on a bipartisan vote. grAy,grAy&grAyreLeASeS reSULTSOFbIOheAT��FUeL SUrvey Gray, Gray & Gray, LLP (Westwood, Mass.) Certified Public Accountants, Westwood, MA, has released the results of a survey the firm conducted on the use and acceptance of Bioheat�� fuel in the home energy industry. Responses to the survey were obtained from home heating oil dealers from the Northeast and MidAtlantic regions of the U.S. ���Bioheat�� fuel is still a relatively new product in the home heating oil business, and our survey was designed to get a sense of how dealers are adapting to this option,��� said Joe Ciccarello, CPA, managing partner at Gray, Gray & Gray. ���We discovered that acceptance of Bioheat�� fuel by dealers is slowly building, but customer awareness and demand is still low.��� Survey results included the following: ��� 45% of dealers believe Bioheat�� fuel is a logical ���next step��� to help the heating oil industry reposition itself ��� Yet only 23% of dealers currently sell Bioheat�� fuel ��� Of these, almost half deliver Bioheat�� fuel without informing customers of the change in formulation ��� Only 16% of dealers report that customers have requested Bioheat�� fuel ��� 80% of dealers feel their customers are unaware of the heating oil industry���s transition to Bioheat�� fuel Nearly half (49%) of the respondents reported being aware of problems with Bioheat�� fuel. The most prevalent issue is a freeze point that is higher than unblended heating oil, resulting in gelling and clogging issues (61%). Complete survey results are available on Gray, Gray & Gray���s website at: www. gggcpas.com, or by calling (781) 407-0300. IcPAmemberUPDATe The final of five public hearings on Connecticut���s draft comprehensive energy strategy (CES) was held in Torrington on Nov. 26. As has been the case in the four previous hearings (Bridgeport, New Haven, Hartford, Storrs), Independent Connecticut Petroleum Association members comprised about 1/2 of the total audience and at least half of the speakers addressing concerns with the plan. There was no one who stood up and said that the energy plan as written was a good idea. Out of a total five public hearings and around 80 individual speakers, fewer than five speakers supported the plan. ICPA has found allies in some expected as well as unexpected places through this process and will make good use of those alliances as the process continues. As Gene Guilford, Jr., ICPA president noted, ���ICPA speakers last night were nothing short of magnificent. You were all focused, delivered key and critical messages about the flaws with the plan, and contributed greatly to why the DEEP has work to do to revise much in the strategy they have put before the state. Everyone may agree that developing an energy strat- www.fueloilnews.com | FUeLOILNeWS| December2012 3

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