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NEON: NEFI Energy Online News 12/5/11 12:20 PM Having trouble viewing this email? Click here to view in html. www.nefi.com Your company can sponsor weekly NEON editions. Learn how. A Service of New England Fuel Institute Please Note: green text items in this newsletter are clickable links for more information on a subject. February 6, 2009 Volume 4 • Issue 5 COTA TELLS CONGRESS ENERGY MARKETS HELD HOSTAGE TO "GREED AND Senate Tries to Break Stalemate on Economic Stimulus FEAR" Last year’s record energy prices were the Industry Groups To Descend on Capitol Hill result of "large and excessively-leveraged In Support of LIHEAP speculators, index traders and hedge funds," rather than supply and demand, NEFI- NEFI Now Offers Required Decals For member and immediate-past Chairman of the Handicap Assistance At Fuel Stations Board Sean Cota (Cota & Cota, Bellows Falls, Vt.) told a Congressional panel on Tuesday, Feb. Issue of NEFI Magazine Covers Latest and "American consumers, small businesses Truck Regulations & Incentives and the broader economy were forced onto a roller coaster ride of greed and fear." NEFI Retirement Webinar February 11 Impact of Speculation on Fuel Dealers NORA Energy Conservation Seminar: Cota, testifying on behalf of both the Petroleum Marketers Association (PMAA) and April 7 in VT, April 16 in Mass. the New England Fuel Institute (NEFI) explained how motor fuel marketers and Regulatory Alert: SPCC Rule Freeze Affects heating fuel dealers are pressured, not profited, by high prices. He mentioned how SPCC Regulatory Relief fuel dealers’ credit lines are strained by high prices, and they are forced to severely cut margin, sometimes into the red, in order to remain competitive. He Donate a Generator to Help Sick Children also noted that investment banks’ 2008 predictions of $200 per barrel oil by winter led many customers to demand fixed price contracts and many dealers offered NEFI Executive Committee and Board of them. “When [the investment-only speculators or ‘investulators’] exited the Directors Meeting Date Set market in the fall,” Cota said, “heating fuel dealers and their customers who had Register Online “locked-in” were committed to a fuel at a much higher cost than it was currently NEFI Seeks Professional Engineer for Panel worth.” Presentation at Expo Many Loopholes Remain http://www.nefi.com/NEON/NEON_issues/NEON_February_6_2009.html Page 1 of 13 NEON: NEFI Energy Online News 12/5/11 12:20 PM Many Loopholes Remain NEFI School Help Wanted: Basic Oilheat Cota speaks at an important time, as Technician Instructor, Contract Educators Wall Street now has a severely diminished image on Capitol Hill and Welcome New NEFI Members lawmakers are looking to act. Although last year’s nearly $150 per Thank You LRAC Contributors barrel crude oil prices have deflated, there is nothing to stop investment Expo '09 Exhibitors speculation and unregulated trading from helping to drive it there again. Industry News Many of the loopholes and gaps in oversight that helped get it here are News From NEFI still in place. The passage of the “Close the Enron Loophole Act” last year was a major victory in an atmosphere of staunch Wall Street opposition, but it only re- News from NORA regulates certain electronic trading platforms exempted under the “Enron Loophole.” The bill does not address several other major loopholes. These include U.S. & Regional Fuel Stocks the “Foreign Markets Loophole,” which allows US traders to evade federal oversight by trading US-destined products on overseas platforms, and the “Swaps Link to N.E. State News Loophole” which grants investment banks and other financial players an exemption from limits on the size of the positions they can take. Also not addressed are the Visit the NEON Archive remaining provisions of the “Enron Loophole” that afford blanket regulatory exemptions to over-the-counter (or “off-exchange”) swaps and trades, where a majority of trading now occurs. Upcoming Courses New Legislation Being Drafted at NEFI The hearing was held to receive comments on the committee’s draft legislation Training Center that would close these remaining loopholes. Cota spoke in favor of the draft bill, and made suggestions on ways it could be improved. Cota was accompanied and 2009 NEFI Education Calendar supported by now DC-based Jim Collura, NEFI Vice President for Government Affairs ([email protected]), as well as PMAA staffers Sherri Cabrera, Director of New! Advanced Common Sense Troubleshooting Legislative Affairs, and Rob Underwood, Manager of Congressional Relations. The April 14-15, 7am-3:30pm two-day hearing also heard from witnesses opposed to much of the bill, including Course Info the futures industry and International Swaps & Derivatives Association (ISDA). Their main argument against the bill is that additional regulation of these markets New! Oilheat Wiring for Electricians and trades would stifle “free market,” inhibit innovation of off-exchange financial March 2 & 3, 12:30-3:30pm products, and drive business overseas. Course Info New! NORA Energy Conservation Seminar: When new legislation hits, we will need to mobilize grassroots support in order to April 16, NEFI Technical Training Center, succeed. Stay tuned to latest issues of NEON and NEFI action alerts for updates. Watertown, MA. Phone: 617-924-1000 Course Info Watch a video of the hearing New! Credit & Collections Seminar Read Cota’s testimony online April 17, Friday, 9am-3pm Course Info See full hearing details New! Management Seminar: -TOP- How Fuel Dealers Can Survive and Thrive in These Difficult Times March 27, Friday, 9am-3pm Course Info New! George Lanthier Courses: Riello Troubleshooters Workshop HVAC System Design Residential Steam School Advanced Electrical Troubleshooting Wiring Hydronic Systems Tune-up Done Right/Troubleshooting HW Advanced Fuel Systems Applied Service Management NEFI CONTACT: Jim Collura, NEFI VP for Public Policy ([email protected]) North American Oilburner Workshop Advanced Common Sense Troubleshooting The newly elected 111th Congress has begun and is in session. President Barack Obama was sworn in on January 20th, 2009. Hazmat Evening Course February 25, Wednesday, 6-9pm SENATE TRIES TO BREAK STALEMATE ON ECONOMIC Course Info EPA Section 608 Training/Certification STIMULUS Course Info As was reported in our last issue, the U.S. Senate has taken up consideration of Refrigerant Training R-410A the now over $900 billion economic stimulus package after the House of Course Info Representatives passed their version last week. The large price tag has drawn opposition from many Senate Republicans, who feel that many programs funded http://www.nefi.com/NEON/NEON_issues/NEON_February_6_2009.html Page 2 of 13 NEON: NEFI Energy Online News 12/5/11 12:20 PM opposition from many Senate Republicans, who feel that many programs funded Mass. Oil Burner Code 527 CMR 4.00 by the bill go to boost government programs rather than to stimulate the economy Course Info and create new jobs, and argue instead for more and bigger tax breaks for Basic Oilburner Course businesses and working families. Democratic leaders have argued that while tax February 23 - March 20 cuts are important, the spending measures will put people to work and provide 4 weeks, Mon.-Fri., 7am-3:30pm assistance to those that are unemployed or under-employed. The debate lasted all Course Info week and as this issue went to press, Amendments were still being considered on Air Conditioning Evening Course the Senate floor. Senate Majority Leader Reid (D-NV) is now working with a Announced Starting February 3! bipartisan group of Senators to draft a compromise and allow the bill to proceed. Course Info The compromise may cut as much as $50-100 billion from the bill. Sources have estimated that the bill in its current form is three votes shy of the 60 votes needed Gas Heat for Oilheat Technicians to pass. We are following this issue closely and will keep members updated. Evening Course Announced Starting February 10! Course Info INDUSTRY GROUPS TO DESCEND ON CAPITOL HILL IN SUPPORT OF LIHEAP Email [email protected] to register. On Tuesday, February 11th, association representatives and fuel dealers will join energy assistance advocates from around the country in an annual “March on Washington” in support of the federal Low Income Home Energy Assistance JOIN NEON MAILING LIST Program (LIHEAP). Last year, Congress provided $5.1 billion for the program, the most in the program’s 26-year history. Advocates will request at least as much this year, if not more, due to the many Americans struggling due to the global recession. Participating industry groups this year include the New England Fuel NEFI EDUCATION Institute, Massachusetts Oilheat Council, Oilheat Council of New Hampshire, CALENDAR Oilheat Institute of Rhode Island and the Fuel Merchants Association of New Jersey. The event is organized each year by the National Fuel Funds Network (www.nationalfuelfunds.org). More on this in the next issue. HOW YOU CAN HELP CONTRIBUTE TO THE 'INDUSTRY'S CAUSE' Wondering how you can contribute to the great work done by the New England Fuel Institute, its Legislative & Regulatory Action Center, Government Affairs Committee and various coalitions, partnerships, and alliances? With the new Congress, new President and possibly the most ambitious legislative and regulatory agenda in history on the horizon, your help is needed now more than CLICK HERE FOR THE LATEST ever! Please consider a contribution -- even a small contribution of $100 or $300 - SCHEDULES FOR OIL, AC, GAS HEAT - to the NEFI Action Center Fund. Simply visit www.nefiactioncenter.com and click FOR OIL TECHS and more "Make a Donation" (NO log-in or password required) which is in bold red font in the menu on the left side of the screen. When the "Contribution/Pledge Form" Click here to receive NEFI class page opens, simply fill out the desired donation amount, billing information and announcements via e-mail.