32 • OIL
&
ENERGY
CHANGES NEEDED
In order to address these issues,
Congress should not renew the Section 25C
tax credit without first:
1. Eliminating the $150 cap on home
heating appliances and consider raising
the maximum benefit under Section
25C to at least $1,000, and
2. Extending the benefit to home heating
oil businesses and consumers by
amending the qualifying language
to include more readily available,
high-efficiency oilheat appliances.
The National Oilheat Research Alli-
ance (NORA) has led the development of
highly efficient boilers of up to 93 AFUE.
However, they are not yet widely available
in the marketplace and in some cases may
be difficult to install. In the meantime,
Congress should allow oilheat consumers
to claim the tax credit for the installation
of modestly efficient home heating systems
installed in such a manner as to achieve
efficiency gains that are nearly equivalent to
current requirements. By doing so, Congress
will expand the pool of installation-ready
oilheat appliances, reduce consumption of
home heating oil, improve overall home
energy efficiency and reduce constituents’
home heating bills.
Two things should be considered. First,
the Department of Energy’s (DOE) current
efficiency test procedures do not contem-
plate the latest in control technologies that
may result in even higher efficiency gains.
Second, NORA and Brookhaven National
Lab tests have shown that very high
efficiency gains can be achieved through
alternate venting strategies that recapture
the heat in the vent system. And finally,
an oil-fired boiler that delivers heat through
a typical radiator system in use in many
Northeast homes will top out at 93 AFUE
under current DOE test procedures.
Government Affairs
As the industry moves towards a
cleaner-burning, lower-sulfur and biofuel-
blended heating oil, a new generation of
ultra-efficient heating technologies will
soon become available to consumers. Until
that time, we urge necessary modifications
to expand the credit to home heating
oil consumers and to achieve the goal of
efficiency gains through installation-ready
home heating appliances. As per NORA
and Brookhaven findings, an oilheat appli-
ance that meets a minimum efficiency of
86 AFUE should be eligible for the credit
if installed in such a manner as to achieve
an efficiency performance equivalent to at
least 90 AFUE.
Therefore, we recommend the fol-
lowing modification to the exiting statute:
A qualified oil furnace or boiler means an
oil furnace or a hot water or steam oil boiler
which achieves an annual fuel utilization
efficiency (AFUE) rating of not less than
95, or not less than 86 and (a) for an oil
hot water or steam boiler, is installed with
temperature reset or thermal purge controls
and an indirect water heater; or (b) for an
oil furnace, is installed with an electronically
commutated blower motor.
