28 • OIL
&
ENERGY
NEFI FOCUSES ON
NORA, FUEL MANDATES,
FINANCIAL
REFORM
I. NEFI ADVOCACY EFFORTS
EFFICIENCY & CONSERVATION
National Oilheat Research Alliance
(NORA)
– The federal law authorizing
NORA expired and was suspended on Feb.
6, 2010. Legislation to renew NORA previ-
ously stalled due to opposition from Senate
Energy Chairman Jeff Bingaman (D-NM)
and his staff. Bingaman has retired and his
staff moved-on. Current Chairman Wyden
(D-OR) has no objections to NORA.
In the past, NORA has also been subject
to general criticism of check-off programs
from Tea Party conservatives. In an effort
to head off such opposition in the current
Congress and to increase chances of passage
in the Republican-led House, the industry
has focused on securing support from a
majority of House Republicans, including
several Tea Party members. Given these
facts, the chances of reauthorizing NORA
have greatly increased, assuming that a
viable legislative vehicle can be found.
Legislation to renew NORA through
2019 has been introduced as the “Oilheat
Efficiency, Renewable Fuel Research & Jobs
Training Act” in both House and Senate.
It would require several changes including
an increase in investments into research &
development (esp. into renewable fuels);
that at least 15 percent of funds directly
assist consumers in improving or upgrading
home heating systems; prohibit passing-
through the checkoff as a tax; and other
generally positive reforms. The industry
continues to pursue any and all co-sponsors
in the Senate and in the House in such a
manner as to preserve an appropriate bal-
ance between Democrats and Republicans.
Home Efficiency (Sec. 25C) Tax
Credits –
The existing Section 25C tax
credit has been extended through 2013 as
part of the “tax extenders” package included
in the “fiscal cliff” deal in January. It offers
up to $500 for specified improvements to
home efficiency with a $150 cap on heating
systems. NEFI is fighting to eliminate this
cap, lower the eligibility requirement for
Oilheat systems (currently 95+ AFUE) and
increase the total credit amount.
The future of the credit is unclear.
Efficiency groups want to replace it
with a whole-home efficiency tax credit.
Legislation was introduced in the House
last month by Reps. Welch (D-VT) and
McKinley (R-WV), which would offer tax
rebates of up to $5,000 for a 20 percent
proven increase in home efficiency and an
additional $1,000 for every additional 5
percent gain (up to $8,000 or 50 percent of
the total retrofit costs). NEFI has concerns
regarding this approach. For example,
homeowners would have to cash-flow the
total cost of retrofits and would be denied
if it did not meet the exact gains require-
ments. This could be costly, especially for
lower income families. NEFI will soon send
a communique to Congressional leaders
regarding its priorities on efficiency tax
credits.
Ultra-low Sulfur Heating Oil –
NEFI
supports state efforts to reduce the sulfur
content of heating oil in order to create
meaningful cost savings for homeowners
and small businesses, reduce overall energy
consumption, improve air quality and
environmental impacts and make heating
oil more competitive.
Consistent with the industry-approved
“Baltimore Resolution” of September 15,
2009 and the NEFI public policy agenda,
NEFI supports the enactment of a national
law to phase-in ultra-low sulfur heating
oil. This would help smooth the transition
by replacing the confusing patchwork of
compliance deadlines that currently exists.
Legislation to create one national home
heating oil sulfur standard has been drafted
in the House by Congresswoman Rosa
DeLauro with input from CEMA and NEFI.
It will be introduced once a lead sponsor is
secured in the Senate.
ULSHO MANDATES IN THE NORTHEAST:
State Low-sulfur
(500ppm)
Low-sulfur
(50ppm)
Ultra-low Sulfur
(15ppm)
CT* July 1, 2014 --
N/A
July 1, 2018
ME
N/A
January 1, 2016 January 1, 2018
MA
July 1, 2014
N/A
July 1, 2018
NJ July 1, 2014
N/A
July 1, 2016
NY
N/A
N/A
July 1, 2012
PA July 1, 2016
N/A
N/A
VT
July 1, 2014
N/A
July 1, 2018
Note: No requirements currently exist in New
Hampshire, Virginia, North Carolina, Maryland,
Rhode Island, Delaware or the District of Columbia.
At a recent membership meeting,
New England Fuel Institute (NEFI)
provided an updated listing of its
governmental affairs priorities for
2013 and the year ahead. Here is an
abbreviated version of the report.
