Last week, NEFI led a broad coalition of state and regional associations in urging Congress to advance the Bolstering the Northeast Home Heating Oil Reserve Act (H.R. 6933). The letter was sent to Speaker Johnson, Majority Leader Thune, and Minority Leaders Jeffries and Schumer, with copies to the chairs and ranking members of the House Energy and Commerce Committee and the Senate Energy and Natural Resources Committee. A copy was also provided to the entire Northeast Congressional delegation.

The Trump Administration previously called on the Northeast Home Heating Oil Reserve (NEHHOR) to be shuttered and that the proceeds to be used to reduce the federal deficit. The industry coalition sent their letter as Congressional Republicans announced a second reconciliation bill is in the works, with a strong preference by the administration and members of Congress to look at all possible offsets, including small ones. NEFI and its allies acted to get support on the record early, before the process got underway and the Reserve becomes a target as a potential pay-for.

The letter, signed by all federal, state, and local heating oil associations in the Northeast, noted:

“The Northeast accounts for more than 80 percent of the nation’s residential heating oil consumption, yet it sits far from the Gulf Coast refining centers that produce most of the nation’s distillate fuel. The region’s dependence on long-distance waterborne and pipeline deliveries, combined with limited regional refining capacity and highly seasonal demand, means that even a brief supply disruption could have severe consequences for the families and businesses our members serve. Originally established with a capacity of two million barrels, the Reserve now holds one million barrels of ultra-low sulfur distillate (ULSD).

“This past winter was among the coldest the Northeast has experienced in recent memory, underscoring the continued and critical importance of reliable heating fuel supplies. At the same time, ongoing conflict in the Persian Gulf has introduced significant volatility into global energy markets, including the distillate markets. These conditions serve as a powerful reminder that supply disruptions can emerge rapidly and with little warning, and that the NEHHOR remains an essential safeguard for the region and broader U.S. energy security.”

The legislation, introduced by Representatives Chris Pappas of New Hampshire and Mike Lawler of New York, would direct the Secretary of Energy to conduct a 180-day strategic review of the NEHHOR before any decision is made about its future. The review would assess the Reserve's near- and long-term role in national energy security, its optimal capacity and composition, and the resources needed to sustain its long-term effectiveness.

NEFI will closely monitor the reconciliation and appropriations processes as they unfold in the coming weeks and keep members updated. If you have any questions please contact Manager of Government Affairs Liam Dotson at liam.dotson@nefi.com.