Vol. 2008   #3
January 31, 2008


What's Happening at ICPA? Click on the Calendar For All ICPA Meetings, Events, Seminars & Classes


ICPA Staff Contacts

Gene Guilford, Executive Director gene@icpa.org
Chris Herb, Associate Director chris@icpa.org
David Chu, Director of Member Services chu@icpa.org
Kate Lennon, ITEC Business Development kate@icpa.org
Kylie Faircloth, Executive Assistant kylie@icpa.org
Stella Laurie, Book Keeper books@icpa.org
Chris Jordan, ITEC B-License Instructor jordyn@icpa.org
Bill McDermott, ITEC S-License Instructor bill@icpa.org

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ICPA's website has been updated with information on biofuels [bioheat and biodiesel], and now also contains two new searchable links so that consumers may find a local ICPA member dealer who sells biodiesel or bioheat. Any ICPA member retailer may have their name added to either or both of the listing services. For more information contact Gene at gene@icpa.org or toll free at 1-866-521-ICPA.


Members needs to sign up on our website for access to the Member's Only Section of the website.

Start by going to icpa.org/regform.htm and sign-up for the site, selecting your own unique username and password. Please write it down. Hit submit after filling out the form and we'll approve it and then you're set. You will be notified by email automatically when your access has been approved.

If you ever forget your username and password, simply go here > icpa.org/lost_password.htm enter your email address and the software finds you and automatically emails you the username and password you selected. Very easy.

FMI contact gene@icpa.org






On Tuesday the 29th ICPA was invited to participate in a Connecticut State Senate Democrats event highlighting their five point plan to have Connecticut fill in the gaps where any economic stimulus from Washington either left off or didn't end up being created. ICPA was invited by State Senate President Don Williams [D-Brooklyn]. Point #4 of the State Senate Democrats plan is a proposal to add $10 million to the already appropriated $5 million for Operation Fuel.  

Operation Fuel is a 501 [c] [3] charity that has assisted the needy with paying their energy bills since 1977. Operation Fuel spends the majority of its funding helping heating oil consumers pay their bills.  Operation Fuel will pay for up to a full tank of oil this year per approved consumer.  Operation Fuel pays the going rate for fuel deliveries and does not discriminate against any fuel vendor in price or reimbursement and generally pays in less than 10 days. ICPA became a partner with Operation Fuel by asking ICPA members to include consumer donation envelopes in their statements. It shouldn't be lost on anyone that State Senate Democrats decided to give $10 million in additional funding to a charity to help with paying energy bills - and not additional funds to the low income energy assistance program run by DSS.

Part of this event, which included a statement made by David Foster from Wilcox Fuel in Westbrook, focused on our Operation Fuel partnership. ICPA also provided to the media a handout of an op-ed piece written by ICPA Executive Director Gene Guilford entitled, "The Other Connecticut."  The piece highlights the difficulty many heating oil retailers are having this season with stretched credit lines and debt and the story of one such company in Eastern Connecticut. Please read this piece here.  The Norwich Bulletin has said they will print this op-ed soon.

For more information contact Gene at gene@icpa.org  or Chris at chris@icpa.org or call ICPA toll free at 1-866-521-ICPA

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Environment Northeast http://www.env-ne.org/In_The_News.htm has been busy in the region with promoting legislation at the state level concerning climate change and "cap and trade" programs. 

We will face and have to deal with a "cap and trade" programs to reduce greenhouse gas emissions. Unfortunately this isn't just Environment Northeast, city mayors or state legislators or governors talking about this - so did John McCain in the Florida Republican primary debates as he favors this system as well. [http://blogs.usatoday.com/onpolitics/2008/01/romney-mccain-t.html] Regardless of who gets elected the next president, reducing ghg emissions and cap and trade programs will come from Washington and from states in this region and elsewhere. If you're watching this you're seeing the proponents of cap and trade talk about environmental protection through free market economics and the beauty of markets driving environmental decisions. 

What is "cap and trade?"

First, an emissions inventory is done of utility, transportation, commercial and residential contributors. remember the issue we had to deal with last June? http://icpa.org/press/press_6_11_07.htm
that came from AP looking at DOE data on residential contributions. Once the inventory of contributions is done by sector - a "cap" is set. For those of you who sell heating oil, and since heating oil has 40% more ghg emissions than natural gas, once a cap is set it effectively means no growth. Second, from the "cap," emissions reduction strategies are discussed so that we see a roll-back in ghg emissions to save the planet and stop the ice caps from melting. Third, "trading" comes into play when those who have emissions reduce their emissions below their caps and take the balance and literally sell the surplus' they have in a quasi-mercantile exchange to those who want to expand but need to buy someone else's surplus credits because they cannot exceed their cap. It is not a theoretical discussion to imagine fuel oil markets being stymied with the alternative to heating oil caps being dealt with by businesses and homebuilders simply switching fuels with less ghg alternatives.

No, this isn't fantasy land. this is our region http://www.rggi.org/about.htm NY state has already done it http://media.cleantech.com/1974/ny-to-cap-and-trade-greenhouse-gas The trouble is, heating oil industry isn't well prepared for this. Attention first goes to utilities - then transportation - then industrial and large commercial - then residential.

Heating oil needs a strategy, needs to develop communications programs to deal with government, media, schools, church groups and everyone else in the world that we have the ability to deal with this. Trouble is, none of it exists today but needs to be done. Failure to be prepared for this means heating oil's future fails as caps halt any prospect of growth and encourage fuel switching.

The propane industry did their ghg review that slammed heating oil. Oilheat states have contributed to the first phase of an independent study of ghg emissions and suffice it to say more needs to be done on the science side. It doesn't matter who thinks this issue is ridiculous - its everywhere - in schools, churches, media and government and the majority of the American people now believe it - believe that humans contribute to it - and that using fossil fuels contributes to its effects. The time to oppose it was 10 years ago - it's too late for that. Now we have to figure out how to manage our way through it and not be killed by its results. Denial is no longer an option.

  • 76% of Americans believe the effects of global warming are apparent now. —Center for American Progress, April 2007 
  • 82% believe global warming exists—an increase of five points since 2005. —Fox News/Opinion Dynamics Corp., February 2007 
  • 49% believe global warming is having a serious impact now—up 14 points since 2001. —CBS News/New York Times, April 2007 
  • 94% of Americans say they’re willing to make changes in their lives to help the environment in general; 
  • 80% say they would make changes even if it means some personal inconvenience. 
  • 67% say they would keep their home warmer in the summer or cooler in the winter. —Washington Post/Time/ABC/Stanford University, April 2007 
  • 54% feel they understand the global warming issue fairly well; 
  • 22% say they understand it very well. —Gallup, March 2007 
  • 52% want global warming to be a high priority for government leaders. —CBS News/New York Times, April 2007 

For more information contact Gene at gene@icpa.org  call ICPA toll free at 1-866-521-ICPA

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As the General Assembly prepares to convene next Wednesday February 6th, ICPA’s new Legislative Committee chair Tom Devine of Devine Brothers ( Norwalk ) has assembled a new committee consisting of the following people:

  • Jennifer Tracey-Carlo    Tracey Energy ( New Haven )
  • Rocky DeSimone Jr.      Wyman Oil ( Manchester )
  • Bruce Dietch                 Kasden Fuel ( East Hartford )
  • Dave Foster                  Wilcox Fuel (Westbrook)
  • Steve Rosentel              Leahy’s Fuel ( Danbury )
  • Steve Sack Sr.              Sack Distributors ( Hartford )

In preparation for the 2008 legislative session, the Office of Legislative Research (OLR) which is a nonpartisan group that produces reports for legislators who ask questions about issues that they may be considering introducing legislation about has published a “major issues” report identifying what they see as potential issues that will be examined during the upcoming legislative session.  Below you will find a link to the entire report and excerpts of issues related to the petroleum industry.

http://www.cga.ct.gov/2008/rpt/pdf/2008-R-0022.pdf

Heating Oil & Propane Contracts

The price of home heating oil and propane continues to increase and homeowners are more concerned about how they are charged. There may be a proposal to require new contracts between heating oil and propane gas dealers and their residential customers to be written in plain language and include all terms, conditions, and charges.

Gasoline Prices

The General Law Committee has studied gasoline price issues for many years and prices continue to climb. The price of a barrel of crude oil recently topped $100 for the first time. The legislature may consider prohibiting gasoline companies and distributors from setting their prices to dealers based on the dealers’ locations. This practice, known as “zone pricing,” is common in the industry. It may also consider other approaches, such as mandating “open supply.” These proposals seek to eliminate exclusive purchasing agreements between suppliers and retail dealers.

Energy Assistance Program Shortfalls

The federal government administers the Low Income Home Energy Assistance Program (LIHEAP), which provides states with block grants to help low-income people pay their winter heating bills. Federal LIHEAP funding has not kept pace with the steep rise in home energy prices and its FY 08 appropriation is frozen at the 2007 level, with and additional $405 million in emergency funding.  Governor Rell and other northeastern governors petitioned President Bush for some of the emergency funding and Connecticut has since received an additional $13.6 million. Despite this, Connecticut ’s heating assistance programs will be unable to maintain current service levels.  The legislature may consider reducing program benefits or appropriating state funds to cover the approximately $10.7 million shortfall.

Greenhouse Gases

Several state environmental groups will push for legislation requiring the state to reduce its greenhouse gas emissions by 10% below 1990 levels by 2020 and by at least 80% below 2001 levels by 2050. This would make mandatory some of the goals the legislature adopted in 2004. California , Hawaii , and New Jersey have enacted similar greenhouse gas emission caps, which are intended to reduce the amount of carbon dioxide and other emissions that contribute to global warming.

ICPA expects to deal with over 150 individual legislative bills in 2008 that will deal with a range of petroleum issues concerning heating oil, gasoline, technical licensing among many others.  ICPA would like to thank Ned Bowman for his four years of service as chair of ICPA’s legislative Committee.  Ned’s leadership and commitment to the petroleum industry was of benefit to all Connecticut retailers.

Members can read the results we achieved in the 2007 Session, and the Agenda we have for the 2008 Session, by going to the ICPA website, Member's Only Section, here>

http://www.icpa.org/protect/agenda.htm

For more information contact Chris Herb at chris@icpa.org or toll free at 866-521-ICPA.

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A number of heating oil retailers continue to report issues with fuel oil quality, most related to clogged filters and sludge.  Ed Guarco of State Line Oil in Granby is the chair of the ICPA Fuel Quality Task Force and ICPA has arranged with DOE's Brookhaven National Lab to have samples tested. If you run into issues with fuel quality please contact Ed at 860-653-7241 or by email at Eguarco@aol.com.

These tests and samples are done in confidence and only to try to pinpoint the likely source of the problem.  Ed's committee is likely to have a recommendation for a fuel oil spec change before the end of 2008.

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WILL THE STIMULUS PACKAGE INCLUDE ADDITIONAL LIHEAP FUNDS?

This week ICPA was asked by NEFI and PMAA to contact our Congressional delegation encouraging support for an amendment offered by Senator Bernie Sanders [Communist-VT] to the Foreign Intelligence Surveillance Act moving through the Senate. David McIntosh, legislative aid to Senator Lieberman advised a better approach was to amend the recently constructed "stimulus plan" that has passed the House, to include additional LIHEAP funding for FY08. ICPA has contacted Connecticut's Congressional delegation encouraging support for expanding the House-passed version of the stimulus package to include additional funding for low income energy assistance for this year. PMAA and NEFI are in Washington this week with the National Fuel Funds Network lobbying Congress on this issue. 

There are 84,575 recipients of low income energy assistance in the State of Connecticut, according to the Connecticut Department of Social Services. Most of these consumers have already been through their average $400 basic benefit, and their average $400 crisis benefit, and now are in their safety net benefits and this is the end of January - we have all of February, March and at least half of April to go.

NCWM DELAYS VOTE ON TEMPERATURE CORRECTION UNTIL JULY OF 2009

The National Conference on Weights and Measures (NCWM) has decided to not schedule an official vote on retail temperature compensation in 2008. The next possible official vote will be in July 2009.

Over twenty PMAA association executives and marketers, along with representatives from API, NACS, NATSO and SIGMA attended the January 28-29, 2008, NCWM meetings in Albuquerque, NM. Without question, retail temperature compensation was the most prominent topic of discussion at the meeting. Mondays open hearings on ATC lasted nearly six hours and nearly all of the testimony opposed or raised questions about the pending Handbook 130 and Handbook 44 changes related to ATC.

On Tuesday, the NCWM Laws and Regulations Committee decided that the ATC provisions were not ready for an official vote and decided to classify the ATC changes as "informational" in 2008. Essentially, the informational classification means NCWM will seek more testimony and research during 2008.

PMAA President Dan Gilligan attended the meetings and compliments NCWM leaders for making the right decision. "I think many NCWM members are beginning to understand that the press has really exaggerated and mischaracterized the facts concerning temperature and retail prices. NCWM officials are searching for the truth and more study is certainly needed," he said.
[PMAA]

EPA PONDERS NEW RULE ON GREENHOUSE GASES

U.S. EPA Administrator Stephen Johnson told lawmakers on Capitol Hill last week that the agency plans to issue a rule in the near future to address greenhouse gas emissions from vehicles and motor fuels. Testifying before the Senate Environment and Public Works Committee, Johnson would not say when the rule would be ready or what it would contain. The EPA is under a court order to determine whether such emissions pose a danger to public health and welfare. If the EPA finds a danger to exist, then control measures will be developed for both vehicles and motor fuels. The agency has already missed a self-imposed deadline to make the determination and draft the rule, prompting threats of lawsuits from environmental organizations and more than a dozen state air authorities. [PMAA]

SENATORS ASK FOR HALT TO SPR FILLS

Expressing concern over soaring fuel prices, Senator Joseph Lieberman (I-CT), Chairman of the Homeland Security and Government Affairs Committee asked the U.S. Department of Energy (DOE) last week to stop diverting crude oil from the consumer market to the nation’s strategic petroleum reserve (SPR). The DOE plans to acquire 13 million barrels of crude during the first six months of 2008 to add to the existing 700 million barrels already held in the SPR. In a letter to Energy Secretary Samuel Bodman, Lieberman with Senators, Susan Collins (R-ME), Carl Levin (D-MI) and Norm Coleman (R-MN), said continued filling of the SPR will reduce supply and increase prices on both the wholesale and consumer levels. The letter cited the Energy Policy Act of 2005 that requires DOE to "avoid incurring excessive cost or appreciably affecting the price of petroleum products to consumers" and "avoid adversely affecting current and futures prices, supplies, and inventories of oil" when procuring crude for the SPR.  [PMAA]

For more information contact Gene at gene@icpa.org  call ICPA toll free at 1-866-521-ICPA

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An Introduction to Temperature Correction - February 12, 2008 - 10.00am to 12noon - ICPA

This briefing will be conducted by the top national expert on temperature correction for petroleum products, Ross Anderson of the NY Bureau of Weights and Measures.  It is an introduction to temperature correction specifically for heating oil retailers.  You will understand how temperature correction works and why it is used to correct for expanding and contracting fuel oil volumes due to temperature; how to evaluate wholesalers who correct for temperature and those who use a shrinkage factor instead of temperature correcting; and your options in selling temperature corrected fuel oil to your customers.

Register online: http://www.icpa.org/store/products_view.php?url_product_id=381


For more information contact David Chu at chu@icpa.org or call toll free at 866-521-ICPA.

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eCashflow Systems - Bounced Check Protection Having problems with bounced checks?  Bounced checks are time-consuming to collect and it’s by no means a given that you’ll ever collect your money.  You don’t pay anything to eCashflow Systems to have them collect the full value of these checks– they make their money on the bounced check fee from the customer.  It’s all processed electronically, with no hassle or time spent by your staff on collections.  And through a special deal for ICPA members, you’ll even be able to recoup most of the initial bounced check fee charged by your bank.  And if eCashflow Systems can’t collect on your check after three attempts with your customer’s bank, you have the option of sending it to their collection agency – which will attempt to collect the money at zero commission (they don’t take a third of the amount like many collection agencies).  For more information, please contact ICPA, which is an official re-seller of this service.   You can also find out more about eCashflow systems at their website - http://www.ecashflowsystems.com/

 

For more information contact David Chu at chu@icpa.org or call toll free at 866-521-ICPA.

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Yankee Natural Gas $2.24
Connecticut Natural Gas $2.10
Southern Connecticut Natural Gas $2.18
Connecticut Light & Power $7.44
OPM/Propane Statewide Average $4.26
OPM/Heating Oil Statewide Average $3.28

JULY 1, 2007 THROUGH JANUARY 31, 2008 - At Bradley Airport

Actual Since July 1st 3144
Last Year 2867
30 Year Average 3478

For more information contact Gene at gene@icpa.org  or call ICPA toll free at 1-866-521-ICPA

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ITEC's Newsletter is found at

ITEC NEWSLETTER - JANUARY 18, 2008


10 Alcap Ridge, Cromwell, CT  06416                

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