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Biofuel Legislation Update |
 The Governor's biofuel mandate legislation, HB4821, continues to move on Beacon Hill. Following a referral to the House Committee on Ways and Means, the bill is now before the House Committee on Steering, Policy & Scheduling, and it appears it could be put on the House calendar for debate very soon. Recently, MOC teamed with Bill Riordan and Paul Nazzaro of the National Biodiesel Board and Steve Falck of the Renewable Energy Group to craft relevant and directed amendments to the latest draft of the legislation. Specifically, the amendments argue that petroleum distillate substitute fuel should be included with cellulosic biofuel and waste feedstock in their eligibility for the state tax exemption. Additionally, we have suggested that all feed stocks be placed on a level playing field and held to the same quality standards. The amendments will be hand-delivered on Beacon Hill this week to key members of the legislature. |
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ASTM D 396 Redefined |
The efforts of the National Oilheat Research Alliance (NORA), the National Biodiesel Board (NBB), and the Oilheat Manufacturers led by R.W. Beckett met with success yesterday in Vancouver Canada, as the American Society for Testing and Materials ASTM approved a measure that officially amends ASTM D 396 to include up to a 5% blend of bidiesel.
This effort has been underway for several years since state and national regulations unfavorable to the use of biodiesel in heating oil applications were identified. To help ease biodiesel's integration into distillate heating fuel, NORA and NBB conducted an intense investigation into the fuel, its specific properties and the appropriateness of its use within home heating applications. Vic Turk of R.W. Beckett, Chairman of ASTM's Burner Fuels Subcommittee, along with major burner manufacturers Carlin and Riello also invested a great deal of time in testing their burners for use with biodiesel. The end results, after years of testing, were favorable. NBB's Paul Nazzaro states, "We are very excited about the development, and based on the thorough research conducted over the years, we know that Bioheat will be as good as Oilheat in every area, while providing the Oilheat industry a great path to a successful future."
For more information about Biodiesel, including manufacturers' warranty positions for its use, please visit www.biodiesel.org. |
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Another Look at Renewable Diesel |
Fuel Could Play a Role in Meeting Future Demand for Biofuel Blends
Three weeks ago, MOC published an article in its Desktop Councilor electronic newsletter entitled, "What's So Renewable About Renewable Diesel, Anyway?" The article raised some concerns from the renewable diesel sector. After meeting and speaking to several concerned parties, MOC believes there is ample proof that refinery-produced renewable diesel is a very high quality fuel, and that one day the fuel could become a valuable biofuel feedstock for heating oil. Here's why.
The biodiesel families of products - the fatty acid methyl esters - are chemically different from petroleum diesel. Renewable diesel, however, is indistinguishable from petroleum diesel. Renewable diesel is refined by feeding biomass derived oils to a hydro treating process used to process diesel fuel. The end result is a very high quality product with molecules that are indistinguishable from petroleum diesel molecules. Although the primary market for renewable diesel has been transportation, with further testing on home heating equipment, renewable diesel could blend with home heating oil and not cause equipment malfunctions or breakdowns.
In 2002, the American Society for Testing and Materials issued D6751 which established quality standards for neat B100 biodiesel. Although renewable diesel does not meet ASTM D6751, it does meet D975 and D396, the ASTM International standards for diesel fuel and for heating oil. Thus renewable diesel is fungible with other diesel products and could be blended with heating oil once home heating system compatibility is determined.
Finally, renewable diesel fuel experts demonstrated that contrary to published documents, on a gallon-to-gallon basis, renewable diesel is refined using 100% renewable biomass, not the 3% that has been widely circulated as a benchmark number, and that the biomass product is completely free of all solids before it makes its way to the hydro treater. |
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LIHEAP Addressed in Denver |
 MOC's Alisha Frazee attended the National Energy and Utility Affordability Conference this past Monday through Wednesday in Denver, Colorado. The conference attracted over 700 participants representing 45 U.S. states, the UK and Canada. Much needed attention was brought to Oilheat industry struggles surrounding LIHEAP leveraging programs like margin over rack, discount off retail, price protection plans and service contracts, and the affect of reduced retailer participation on low income consumers. NEFI's Shane Sweet and Jim Collura spoke on this very subject at a session entitled "A Discussion About Deliverable Fuels in Challenging Times". They were joined by Peggie Neville from NYS Energy Research and Development Authority, and Richard Roldan of the National Propane Gas Association. In addition to attending multiple workshops dedicated to advocacy, meeting future energy demands and legislative initiatives, Ms. Frazee had the opportunity to meet with several federal LIHEAP officials, hear Colorado Senator, and former U.S. Senator Gary Hart speak on climate change policy, and discuss with IRS representatives the surprisingly unrealized tax relief and services available to low income individuals. Overall, the conference was a valuable informational and networking experience. |
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REGULATORY ALERT: Antitrust "Do's" & "Don'ts" for Home Heating Oil Dealers |
| Provided by Robison & Cole, LLP
Today's home heating market is extremely challenging. Oil hovers close to $140 per barrel, retail prices are at an all time high and there is increased need for working capital and hedging products. All the while, regulators are continuing to closely monitor the home heating oil industry. Massachusetts Oilheat dealers are committed to conducting business activities legally and honestly. No dealer wants to be investigated for possible antitrust or trade practice violations. Even isolated consumer complaints can result in time consuming investigations that divert human and financial resources. This article discusses general principles of appropriate business conduct and some specific "dos" and "don'ts" for MOH dealers to help them avoid costly investigations. This article does not cover consumer contracts and consumer trade practices. These topics will be covered in a future article. To read the full text of this article, click here. |
| MOC President and Chairwoman continued... |
| The invitation to testify came after the staff of MOC and NEFI met with aides for Senator Kerry's in his Boston office on June 12th to speak about the important and challenging issues currently facing the Oilheat industry. That meeting was prompted by written testimony, a joint MOC-NEFI effort, submitted for consideration by Senator Kerry in a Massachusetts field hearing held May 28th on "The Rising Costs of Energy: Challenges and Opportunities for Small Businesses".
The invitation to provide testimony in the nation's capitol comes at an opportune time as the Oilheat industry faces historically high crude and wholesale heating oil prices, strained and all-out exhausted lines of credit, and overwhelming customer receivables. MOC and other industry leaders have been pressing Congressional leaders for months to take action on a number of matters to help Oilheat dealers and consumers. "Senator Kerry and his staff clearly recognize that small businesses are amongst the hardest hit during this time of record high energy prices," Ferrante said. "Our testimony will place concentrated focus on the struggles of the small retail heating oil dealer, and provide an excellent opportunity for MOC to demonstrate the real need for regulatory relief, financial support and action on other important issues such as NORA reauthorization."
The following is a list of who will be testifying:
David F. Johnson - Deputy Assistant Secretary of Energy for Petroleum Reserves
Michael Ferrante - President, Massachusetts Oilheat Council
Michael Stoddard - Deputy Director and Attorney, Environmental Northeast, Portland, Maine
Jennifer Brooks - Manager, Community Relations, Penquis, Bangor, Maine
Sandra Farrell - Owner, Northboro Oil Co., Northboro, Mass.
To watch a live webcast of the hearing, please visit http://sbc.senate.gov/. A link to the live feed will be available on the left hand side of the site's home page. |
| Golf with MOC Again at Pinehills |
 It's not too early to be thinking about playing in, and even sponsoring MOC's annual golf outing at the Pinehills in Plymouth. This year's event will take place on August 18th. Complete registration and sponsorship details will be mailed soon, or call MOC for further information. | |
MOC President Michael Ferrante and Board of Directors Chairwoman Sandra Farrell will testify tomorrow, June 25, at 10:00 a.m. in Washington, DC, before the Senate Subcommittee on Small Business and Entrepreneurship on "Examining Solutions to Cope with the Rise in Home Heating Oil Prices." 
