rels. The administration also transitioned
the reserve from high sulfur heating oil to
ultra-low sulfur diesel fuel. As a result, upon
release this fuelmaynowbe used in a variety of
applications including on- and off-road diesel
fuel applications (as was seen when 120,000
barrels were released following Hurricane
Sandy) or as an interruptible fuel supply
for power generators. This undermines the
original intent of the reserve to serve heating
oil customers during supply emergencies. In
light of this, NEFI is pressing for Congress
to review the existing statute and policies
regarding the Oilheat reserve.
Current Oilheat Reserve Storage Locations and Amounts:
Operator
Location Total Barrels Product
Hess Corp.
Groton, CT 500,000 bbls ULSD
Global
Companies LLC Revere, MA 500,000 bbls ULSD
Low Income Home Energy Assistance
Program (LIHEAP) –
NEFI supports a
robust federal LIHEAP program that wel-
comes the participation of home heating oil
dealers. Congress has provided states with
a total of $3.47 billion for LIHEAP in the
current fiscal year (2013). This amount is
well below the $5.1 billion authorized by
Congress and the $4.7 billion requested
by LIHEAP advocates. Advocates are again
pushing for $4.7 billion for FY14, citing
high electricity and heating oil costs, but
President Obama has proposed cutting
LIHEAP by $450 million. NEFI has urged
full funding but is also seeking administra-
tive reforms to prevent the HHS and state
governments from placing the burdens of
data collection on heating fuel providers.
NEFI also wants heating oil dealers
exempted from state leveraging programs
(such as margin-over-rack) if the dealer
voluntarily offers discounted fuel or system
maintenance plans, customized budgeting
options or pricing plans that save customers
money on their heating bills without jeop-
ardizing the businesses’ competitiveness.
II. REGULATORY
COMPLIANCE ISSUES
CFTC Legal Identification Number
–
On May 23, 2013, NEFI issued a regula-
tory alert to inform members of a require-
ment by the Commodity Futures Trading
Commission (CFTC) that all swaps market
participants,
including
non-financial
counterparties such as commercial hedgers,
obtain a legal entity identifier – known as
the CFTC Interim Compliant Identifier or
“CICI” – and pay a $200 fee.
The requirement was not part of the
Dodd-Frank Act, but rather the result of an
international agreement by regulators and
large financial institutions regarding the
best means of increasing transparency in the
unregulated swaps market and monitoring
systemic risk (aggregated market risk) that
could threaten the integrity of the global
financial system. The CFTC was merely the
first regulator to implement this requirement
and other nations will soon follow. The dead-
line for non-financial swaps counterparties
(i.e., hedgers) was April 10, 2013. However,
an “in good faith” enforcement deadline has
been extended through Oct. 31, 2013. See
the NEFI Regulatory Alert or contact your
hedging services provider for more details
on your compliance requirements.
New Driver Hours of Service Rule –
The U.S. DOT’s Federal Motor Carrier Safety
Administration (FMCSA) issued a final rule
that amends CDL/HAZMAT driver hours of
service (HOS) regulations. NEFI filed written
comments with the FMCSA on the proposed
changes. The FMCSA adopted many of
NEFI’s positions laid out in those comments.
The 11-hour maximum daily driving period
was not reduced to 10 as proposed; the
14-hour driving window and the 100-mile
air radius exemption from written driver
log books were also preserved. However,
restrictions and limitations on the use of the
34-hour restart provision, the mechanism
used by drivers to restart their work week
significantly reduces scheduling flexibility
and pares down from 82 to 70 the maximum
number of hours a driver can work in the
week subsequent to the week that the restart
provision was used. Also, drivers must now
be given a 30-minute break within the first 8
hours of driving. Both provisions have been
subject to numerous lawsuits. The new HOS
rules go into effect July 1, 2013.
Comments Submitted by NEFI on Federal
Regulatory Proposals Filed Since Last
Board Meeting on February 28, 2013:
1. Docket ID No. EPA-HQ-OAR-2012-0621-
NEFI submits written comments supporting
biodiesel content disclosure on all PTD.
2. Draft Supplemental Environmental
Impact Statement for the Keystone
XL project – NEFI submits written
comments to the U.S. State Department
in support of Keystone XL pipeline. A
NEFI alert sent via CapWiz generated
242 comments from fuel dealers in
support of NEFI’s position.
3. Department of Energy – Comments in
support of increased natural gas exports
through a streamlined permit process.
NEFI Regulatory Compliance
Alerts Sent to Members in 2013.
1. New Driver Hours of Service
Requirements
2. HAZMAT Fee Reduction Notice
3. DOT Inspection Blitz Notice
4. Credit Card Swipe Fee Class Action
Settlement Notice
5. EPCRA Tier II Filing Notice
6. OSHA Illness and Injury Posting Notice
7. Biodiesel Blender Credit Retroactive Claims
8. Family and Medical Leave Act
Compliance Notice
9. HAZMAT Violation Civil Penalty
Increase Notice
10. CFTC Legal Identification Number
Requirement
August 2013 • 33
