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The
legislation would create a two-tier rebate program. “Silver
Star” would offer up to $1,500 for each of a series of
home efficiency retrofits or system upgrades, including
home heating system upgrades, up to a total of $3,000 or
50 percent of total cost. “Gold Star” would offer up
to $3,000 for comprehensive retrofits tailored to
achieve at least 20 percent of savings, and another
$1,000 for every 5 percent of additional efficiency
gains to a maximum of $8,000.
The
oilheat industry letter specifically expressed support
for the $1,500 Silver Star rebate for heating oil
equipment - especially the minimum efficiency standard
for oilheat furnaces and boilers, which is 86 AFUE. The
bill requires that oilheating equipment also be
installed with an electrically commutated blower motor
(for furnaces), or temperature reset or thermal purge
controls (for boilers). The letter claims this equipment
is an improvement over existing federal tax credits
which require 90 AFUE for oilheat equipment. The
industry has argued that an 86 AFUE system with
electronic controls as would be required under Home Star
would result in an equivalent efficiency.
They
also expressed support for the $250 Silver Star rebate
for the installation of automatic water temperature
controllers on existing boilers (but not in conjunction
with a new boiler). “Many home heating contractors can
easily install these affordable and cost saving
measures,’ the letter stated of this rebate. The
industry advocated heavily for the oilheat equipment
eligibility language for Home Star to be set at 86 AFUE
and for the inclusion of a rebate for automatic water
temperature controllers. However, while the letter
expresses strong support for the Home Star concept, it
also recommends further modifications to protect small
home energy contractors, including heating oil dealers,
from financial burdens associated with being responsible
for processing the rebate and “cash fl owing” the
value of the rebate until reimbursement.
The
Senate Home Star bill would require contractors to
deduct the value of the rebate at “point-of-sale”
and then apply for the rebate themselves. The
Housepassed version would require that the consumer
apply for the federal rebate directly. Nonetheless, the
industry expressed a “sincere desire” to work with
the Senate to remedy these concerns and advance the
legislation into law.
The
following groups signed the letter: Delaware Valley Fuel
Dealers Association (www. dvfda.org); Empire State
Petroleum Association (www. espa.net); Fuel Merchants
Association of New Jersey (www.fmanj.org); Independent
Connecticut Petroleum Association (www.icpa.org); Maine
Energy Marketers Association (www.maineenergymarketers.
com); Massachusetts Oilheat Council (www.massoilheat.
org); Mid-Atlantic Petroleum Distributors’ Association
(www.mapda.com); National Association of Oil Heating
Service Managers (www. naohsm.org); New England Fuel
Institute (www.nefi .com); New York Oil Heating
Association (www.nyoha.org); Oil Heat Council of New
Hampshire (www.nhoilheat.com); Oil Heat Institute of
Long Island (www. ohili.org); Oil Heat Institute of
Rhode Island (www.oilheatinri. com); Oilheat Association
of Southern New Jersey (www.southjerseyoilheat.com);
Oilheat Manufacturers Association (www.oma-oilheat.org);
Pacifi c Northwest Oil Heat Council (www.pnwoilheat.
com); Pennsylvania Petroleum Marketers & Convenience
Stores Assn. (www.ppmcsa. org); Petroleum Marketers
Association of America (www. pmaa.org); Vermont Fuel
Dealers Association (www. vermontfuel.com); Virginia
Petroleum, Convenience and Grocery Association (www.
vpcga.com); and Washington Oil Marketers Association (www.waoil.org)
For
more information, contact NEFI Legislative &
Regulatory Action Center, 5505 Connecticut Ave NW #300,
Washington, DC 20015-2601 or visit www.nefi actioncenter.
com (202) 584-0160. |
