“Like it or not, we live in interesting times.” – Robert F. Kennedy
Facing the constant upheaval and change in the world today, “interesting times” really feels like an understatement. From the ongoing COVID-19 pandemic, to the Russian invasion of Ukraine, to the dearth of domestic energy production in the U.S. and its consequential effect on energy prices, it’s hard to gauge when the waters may calm.
Yet, despite all that is challenging our sense of normalcy, decency, patience - and, yes, our budgets - here in Maine, we continue to care, serve, and give to our communities. The Maine spirit is exemplified by our successful 2022 Fuel Your Love Campaign, which is the subject of this month’s cover story (page 18). For the second year in a row, MEMA partnered with WGME Channel 13 to spread the word about this effort which, combined with an aggressive paid and earned media strategy and as a robust social media plan, exponentially increased the reach of the campaign.
Our entire membership has every reason to feel pride in supporting such a heartwarming and worthwhile campaign. It is truly great to be a part of the industry that is delivering for Mainers.
Speaking of delivering for Mainers, I also encourage you to read “10 Questions with Dan Weber” (page 7). Dan is our new Dean of the Maine Energy Marketers Association Technical Education Center (MTEC), and Dan has long been a key component of MTEC’s success as an instructor and will bring this valuable experience to his new leadership role. Dan has already infused our program with fresh energy and is full of new ideas for our future. We are thrilled that Dan has accepted
the challenge to lead what is truly the best technical education program in Maine and New England, and are certain that he will push our school to new heights with his deep knowledge and genuine enthusiasm for the newest technologies and innovation our industry has to offer.
If that leaves you wondering just what that next innovation might be, check out what’s happening with “Maine-Made Biofuels” (page 33). Biofine Developments Northeast, soon to based in Lincoln is on the verge of bringing a 100% renewable liquid heating fuel to market, and their liquid heating fuel, “EL” (Ethyl Levulinate), recently qualified for EPA Renewable Energy Credits (RINs). MEMA strongly supports biofuels and their development, and especially supports Biofine’s work in developing a 100% carbon-neutral fuel that is made in Maine by Mainers. This fuel could become a lynchpin in Maine’s - and America’s - energy future, which is very exciting.
Truth be told, living in such “interesting times” has a certain way of keeping one moving and motivated, and its with this momentum that your MEMA/MTEC team is on the ground and in the fight every single day. I look forward to seeing you in the field!
See you on the road,
Charlie
Welcome to the team!
MEMA Welcomes Nicholas Scarfo
As many of you know, MEMA has been looking for the right candidate for the Marketing and Communications Coordinator position for a long period of time. At the end of January, MEMA welcomed Nicholas Scarfo to fill that role. Nicholas joins MEMA as a recent graduate of the University of New England, where he obtained a B.A. in Communications. While at UNE, Nicholas gained valuable experience in various fields such as marketing, journalism, and public relations. The summer before joining MEMA, Nicholas worked as an intern as a Content Curator for the mobile application SportsHosts, where he published articles and other media content relating to the National Football League and Major League Baseball.
Nicholas quickly hit the ground running as he started just before MEMA’s Annual Fuel Your Love campaign was about to begin. He has been a tremendous asset to the MEMA team in a very short period of time. If you haven’t met Nicholas, please join us in welcoming him at nscarfo@maineenergymarketers.com.
Our Team
Executive Board
Marc LaCasse Augusta Fuel Company
Matt Poole Colby & Gale
Roger Arsenault Community Energy
Carter Vaillancourt Daigle Oil Company
Michael McCormack Downeast Energy
Michael Estes Estes Oil & Propane
Max Marston Fabian Oil
Jonathan Mapes H.A. Mapes Inc.-Alt
Tim Heutz Heutz Commercial Enterprise
Rob Cort Maine Energy Inc.
Charlie Page Maritime Energy
OUR BOARD OF DIRECTORS
Mark Gagnon P. Gagnon & Sons Inc.
Mark St. Germain St. Germain
Robert Luce Valley Gas & Oil Company
Association Board
Jamie Robinson A.E. Robinson Oil Co.
David Babcock Adams & Fogg Oil Equip. Co.
Robert Shibley Bob’s Cash Fuel LLC
Peter Buotte Community Energy Co. -Alt
Deanna Sherman Dead River Company - Alt
Jeff Webb Eastern Propane & Oil, Inc.
Jim Pike Energy Kinetics
Judy Delaney Global Petroleum Corp
Tom Schwarm Gould Technologies
Steven Marcello Gulf Oil, LP
Saunya Urban H.A. Mapes Inc. - Alt
Carrie Tomforde Irving Oil - Alt
Jim Carroll J.P. Carroll Fuel Co.
Steve Ness Ness Oil Company
Robert Tracy R.H. Foster Energy, LLC
Elwin Scott Simard & Sons, Inc.
Kristyn Schweitzer Sprague Energy
Michael Tammaro V.L. Tammaro Oil Co.
Charlie Burnham
Charlie Burnham Energy Chair of the Board
Steven McGrath H.A. Mapes Inc Treasurer
Claudette Townsend Dead River Company Vice Chair
Charlie Summers President & CEO
Dan Weber MTEC Dean
Prior to the COVID-19 pandemic, MEMA and the MEMA Technical Education Center (MTEC) partnered with high schools as well as technical education centers throughout Maine to offer and give tours of its state-of-the-art training facilities.
It’s been nearly two years since prospective student groups and schools have been to visit MTEC, but we are happy to announce that our in-person tours are back.
Either as a group or individually, prospective students will have a chance to learn the history of MEMA/MTEC and how the association operates today. They will also learn how the HVAC-R industry impacts Maine’s economy and how MEMA, its members, and their employees make a difference in the communities they serve.
Dan Weber, Dean of MTEC and Lead Instructor will give details on the industry, features and tools that are used in the lab, and inform students on the benefits of enrolling at MTEC, such as hands-on learning in a tight-knit classroom community and the opportunity to put themselves in front of our members who are looking for potential employers.
Prospective students will walk through MTEC and get a first-hand look at the Oil and Propane Labs, where students work on the equipment they will encounter out in the field. They can also speak with our instructors, who are masters in the fields of HVAC-R and take pride in ensuring their students are trained thoroughly and receive a high-quality education. They may also have the opportunity to hear from some current students on their experience at MTEC and even view a class in progress. Students from Lincoln Academy and Brunswick High School have visited MTEC in the past month.
If you are interested in seeing what MTEC has to offer, please call the office, (207)729-5298, or email Nicholas Scarfo at nscarfo@maineenergymarketers.com.
Ten Questions with
DAN WEBER
MTEC Dean and Lead Instructor
Dan joined MTEC as an instructor in the Summer of 2018 and brings 20 years of experience with him. He has worked in the residential, commercial, and industrial areas of the trade, and is a natural born teacher. Dan assumed his new role as MTEC’s Dean and Lead Instructor at the beginning of 2022. We are very lucky to have Dan and his vast knowledge of the industry.
&Q A &Q
QHow/when did you get into the HVAC-R industry?
After graduating high school, I enrolled in a Tool & Die program at a community college. When that program became obsolete, I enrolled in an HVAC-R program at SUNY Delhigh through the Refrigeration Service Engineers Society, (RSES). That is how I got my start doing HVAC-R.
QWhat was your work experience like before becoming an instructor for MTEC?
I worked for several years working on residential air conditioners (ACs). When I got bored, around 1990, I joined the Local Plumbers & Pipe Fitters Union. While in the Union, I undertook various jobs throughout the industry, such as installing and servicing heating and AC systems, both commercial and industrial. After ten years, I had the opportunity to work in the semiconductor industry for a company called Kionix. I was a facility engineer for them and worked with MEMS, or Microelectronic Mechanical Systems, as well as other nanotechnology. When that was sold to Rome Electronics in 2007, work there gradually transformed into a factory environment, which I didn’t enjoy that type of work. In 2012, I moved back to Maine for family reasons. Once in Maine I began working for Maine Boiler, where I again worked with commercial and industrial heating and cooling products doing installations and service. During my time with Maine Boiler, I realized the need to be a licensed technician in the state of Maine, so I enrolled and graduated from MTEC. I forgot to mention while I was in the Union I taught a journeyman level course, Introduction to Computer Automated Building Control, so I had some prior experience teaching before MTEC. While here, I realized all the opportunities that MTEC has to offer. I was a part-time instructor for about two years at MTEC, until they built an addition to the lab and MTEC needed a full-time instructor. I saw an ad in the MEMA Randoms and reached out, now here we are.
QWhat are some of the more unique jobs you have done during your time as a technician?
Some of the more interesting jobs I’ve had was when I was in the union. The company I worked with was involved with USAID, or U.S. Agency for International Development. I was asked to go to Guatemala City in the middle of a Civil War to troubleshoot an HVAC-R system that we had sold to the government. Some of the other things, I actually put the AC in Buffalo Bill’s (from the wild west show) private train car. I’ve done everything from supermarket refrigeration to flight simulation. Occasionally, I’ll have a fishing boat show up at the dock on the island that I need to fix an ice machine on. You know, what we do is everywhere.
QWhat motivated you to become an instructor?
Several factors influenced my decision to become an instructor. I found I have a knack for being able to explain things in a way people can understand. Also, when you can teach someone a trade, and you can see the light bulb go off and they get it, it’s very rewarding. Not only in the satisfaction that you did that for them, but also in knowing that they now have a skill where they don’t have to worry about putting food on the table. It is life-changing for our students, and it is a privilege to be a part of that.
QWhy MTEC?
The great thing about MTEC is the accountability. We’re a nonprofit organization. My salary is paid by the members who hire a large majority of our students. So, it keeps everyone honest. If I don’t do my job and these students go to work for our members, they’re going to know that their training was substandard and it’s not going to take too long for me to hear about that. We aren’t teaching to generate revenue, we’re doing it to make sure students are trained and the employers are happy. We also teach our students how to value their work, their employers and the customers they serve.
Q
What is your favorite class to teach and why?
All of them. I can’t say I enjoy one more than the other. Every course we teach provides a different aspect of the industry. I will say my all-time favorite day is firing oil burners. Part of the curriculum, early on, students will disassemble an oil burner and attempt to put it back together. They ask me, “now what?” and I say we’re going to see if they fire. And almost all the students freeze when I say we’re going to fire their burners. The look on those students’ faces when their burners actually fires. It’s like the first built-in confidence builder we have in the program. Students are excited, high-fiving, videotaping, putting it on Facebook. Three days in, and these students are pumped.
QWhat are some memorable moments from your time here at MTEC?
One of my funniest moments was a student who came through here, he was a Vet. You could say he was dealing with some Post Traumatic Stress Disorder issues, and he was really responding to the program. During the course of the AC class, they were wiring the units, and the student wired it up without any conduit. He was all excited, told me to come check it out, and he wired it beautifully, except the wiring was all exposed. The student couldn’t understand how his work could be great but still have a problem, and when I told him he didn’t use any conduit he stopped and said, “Do you realize the last time I wired anything, I was blowing up buildings in Iraq?”
Q What characteristics/traits do you notice most in successful students?
When you enroll at MTEC, it’s like having your first job interview. My most successful students are the ones who show up every day and are on time and participate in the classroom and labs. I notice students who stick around after the day is done asking questions and picking my brain and others. Other
important things like who is asking questions. Every student has a question on something at any time, but the ones who will vocalize and ask questions are generally more successful. Also, who cleans up after the day is done. It may not seem like it, but clean-up is an important part of what we do. So, if I don’t have to remind a student to clean up after a day in the lab and they already understand how important it is as a part of the process, then I know that student can be counted on when they make it out into the field.
QWhat makes your commute to work everyday so unique?
I live on Great Diamond Island, and I take a ferry to work every day. Every morning on the water I get to watch the sunrise and allow myself to think about the day ahead and how it is another opportunity to succeed. As I go home, I get to watch Portland disappear behind the island and I reflect on my day and finally disconnect myself from my work. Traveling on the water allows a brief reprieve from everything going on.
QWhat is some advice you would give to anyone looking to enter the field of HVAC-R?
If you choose to enter the field, you are making a smart choice. I have been in the trade for thirty-five years and not once have I been out of work or have had to go look for money. I put myself in a prosperous position because of that. Everybody is going to think it’s great that you can do this type of work, and it really is, financially, job security, it’s great. In a lot of ways, being that guy is a curse, because you can’t get away from it. The only way I can get away from work is if I get on a plane and go someplace, and a lot of times that doesn’t even work. Having an occupation in this trade is a challenging one, but it is unlimited with how far you take it. My career path is the way it is all because of the trade.
MEMA is composed of approximately 300-member companies and over 5,000 direct and 5,000 indirect employees working in energy delivery and servicing businesses delivering heating oil, biofuels, motor fuels, propane, pellets, and kerosene, as well as offering service and installations on the equipment that operates these fuels. In addition, our members own and operate 70% of Maine’s 1,300 convenience stores and employ approximately 10,000 Maine people and sell more than 1 billion gallons of gasoline and diesel fuel each year. Our members also sell more than 90% of all the propane sold in our state every year.
Throughout the COVID-19 pandemic, Maine convenience stores have been in the front lines and stayed open while many would work from home. These retailers are already struggling to comply with existing regulations and finding employees. They depend on these sales to create regular traffic in their establishments. Our members make every effort to ensure that tobacco products do not get into the hands of our under-aged customers, and we are glad to work with you to strengthen those efforts.
The State of Maine has legislation pending that would ban the sale of flavored tobacco products; towns across Maine have considered and some have banned flavored tobacco at the municipal level. Considering a ban on flavored tobacco products may seem to make sense, but
history tells us that prohibition for legal adults would backfire and be counterproductive. A century ago, government tried to ban alcohol and now with the legalization of marijuana, we have seen first-hand that prohibition for people over 21 does not work and adults should be able to make their own decisions.
This ban penalizes Maine’s retailers. The sale of these products will go underground, over the border, or most likely simply through internet sales, all to the detriment of local businesses who already are at a disadvantage to New Hampshire because of punitive taxation differences (motor fuels taxes, cigarette taxes, liquor taxes — all higher in Maine; labor (minimum wage and income tax higher in Maine) food and beverage taxes. Flavored tobacco sales are 30-35% of cigarette sales. Massachusetts stopped this last year and most of Maine vacationers are from Massachusetts. This proposal gives them just one more reason to stock up in New Hampshire on their way to Vacationland.
Elimination of convenience stores close to the border will occur as marginal stores will not survive. There are many only marginally profitable stores in many small and rural towns. Some of these stores are the only source of gasoline and diesel fuel for miles and provide necessities as community markets. With these price differentials due to taxes, much of Southern and Western Maine will be severely impacted, not to mention the reduction in buying power of adult tobacco consumers on other necessities.
MEMA has been opposing this ban at each level. The ban of flavored tobacco products would cause great harm to these retailers who struggle daily to comply with existing regulations, find employees, and simply deal with the devastating effects of the pandemic. The men and women who own and operate these critically important businesses depend on these sales to create regular traffic in their establishments and go to painstaking efforts to ensure that tobacco products do not get into the hands of under-aged customers.
2022 COURSE SCHEDULE
HVAC PROFESSIONAL SEMESTER CLASS
Member $12,300 Non-Member $13,500
Jan 17 – May 6 (A)
Jan 17 – May 6 (B)
May 9 – May 20
Jun 1 – Oct 7
OIL HEAT TECHNICIAN TRAINING
Member $3,775 Non-Member $4,175
Jan 17 – Feb 25
Mar 28 – May 6
Jun 1 – Jul 22
Jul 25 – Sep 2
Night class TBD-fall 2022
Oct 17 – Nov 30
EPA CERTIFICATION & INTRO TO AC
Member $950 Non-Member $1,050
Mar 8 – Mar 11
Apr 19 – Apr 22
Jun 28 – Jul 1
Jul 26 – Jul 29
Sep 6 – Sep 14 (nights)
Sep 13 – Sep 16
Dec 6 - Dec 9
AC REFRIGERATION & TROUBLESHOOTING
Member $1,050 Non-Member $1,150
Mar 14 – Mar 18
Apr 25 – Apr 29
Jul 11 – Jul 15
Aug 1 – Aug 5
Sep 19 – Sep 23
Dec 12 – Dec 16
40 HOUR HEAT PUMP TRAINING
Member $1,050 Non-Member $1,150
Mar 21 – Mar 25
May 2 – May 6
Jul 18 – Jul 22
Aug 8 – Aug 12
Sep 26 – Sep 30
Dec 19 – Dec 23
OIL JOURNEYMANS PREP CLASS (1 Day Class)
Member $199 Non-Member $299
Mar 12, Jun 11, Sep 10, Dec 10
PROPANE/NG:
APPLIANCE INSTALLATION & SERVICE w/ Basics
Member $3,075 Non-Member $3,375
Jan 31 – Mar 7
Mar 14 – Apr 15
May 23 – Jun 24
Apr 11 – Jun 10 (nights)
Sep 6 – Oct 7
Oct 17 – Nov 18
Nov 14 – Dec 22
TANKSETTER & OUTSIDE PIPING w/ Basics
Member $1,400 Non-Member $1,600
Jan 17 – Jan 28
Feb 28 – Mar 11
May 9 – May 20
Jul 11 – Aug 3 (nights)
Aug 22 – Sep 2
Oct 3 – Oct 14
Oct 31 – Nov 10
DELIVERY TECHNICIAN w/ Basics
Member $1050 Non-Member $1150
May 9 – May 13
Oct 24 – Oct 28
LARGE EQUIPMENT
Member $750 Non-Member $850
May 23 – May 25
PLANT OPERATOR
Member $1,000 Non-Member $1,100
May 16 – May 20
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Please join the MEMA team in welcoming our newest members.
Our members are the backbone of our Association. The education, services, programs and events we provide are successful based on the strong support we receive from all our members.
Crum & Forster
Crum & Forster provides marketleading property and casualty, accident, and health and specialty insurance solutions. They have nearly a 200-year history of helping their customers manage risk with laser-focused expertise, integrity and discipline.
For more information on what Crum & Forster have to offer visit their website at https://www.cfins.com
DiteCh testing
For 22 years, Ditech Testing has specialized in propane cylinder and tank refurbishing and recertification.
For more information, visit Ditech Testing at http://ditechtesting.com. Dog
Dog House Energy Services has been serving Freeport, ME and surrounding areas since 2010. They offer a wide array of residential HVAC services specifically designed to fit customers’ needs, as well as 24 Hour Emergency Service.
For more information visit https://calldoghouse.com.
DRM, inc
Fuel delivery software
Drm soFtware
DRM Software has been developing software specifically for the Fuel, Oil, Propane and HVAC Industries since 1990. They provide the tools necessary to run your business; billing, scheduling, dispatch, pricing, etc.
To learn more about DRM Software, visit their website at http://drmnet.com.
hiltz ProPane systems
Specializing in full-service, turnkey LPG systems for bulk storage, commercial, or industrial applications.
To learn more about Hiltz Propane Systems and their services, visit https://www.hiltzpropanesystems.com. Maietta Ti t us BlaschkePlumbing Heating
maietta/titus/BlasChke PlumBing & heating
Since 1986, the HVAC contractors at Maietta Titus Blaschke Plumbing & Heating have been serving residential and commercial customers in and around Portland, Maine. Their technicians are fully licensed and insured, and they specialize in new construction, remodels, and maintenance, as well as oil and gas furnaces, boiler installations, and air-conditioning.
For more information, visit www.maiettaplumbingandheating.com.
nason meChaniCal systems
Nason Mechanical Systems is a full-service mechanical contractor. They provide quality design, construction, service and maintenance of heating, cooling, industrial piping and plumbing systems, for commercial and industrial clients in Central and Southern Maine.
If you would like more information, visit their website at https://nasonmechanical.com.
verville environmental serviCes
Verville Environmental Services provide hands on customer services for the proper management of hazardous and non-hazardous wastes, soil remediation services, site clean-up and industrial and residential tank removal services throughout the US.
For more information contact Darryl Verville at darryl@vervilleenviromental.com.
THE ELECTRIC SHOCK
and then reality sets in
Around this time last year, we watched Will Ferrell’s electric vehicle (EV) Super Bowl commercial and witnessed the start of “EVing” tweets in which automakers tried to outdo each other on future EV promotion. As auto makers committed to increased EV production, states began a push for electrification of residential and commercial buildings with electric heat pumps, and Congress was set to pass a multi-trillion dollar climate package with a significant investment in electrification. Oh man, it was the end of the liquid fuels industry as we know it. But it’s not that simple!
U.S. drivers want convenience and certainty in their vehicle and its operation. A 2021 Deloitte Global Automotive Consumer Study highlighted that nearly two-thirds of U.S. drivers would not choose an EV or hybrid and would rather stay with the internal combustion engine vehicle (ICEV). U.S. drivers cite EV limitations such as vehicle range, low number of chargers, vehicle cost, high costs to upgrade homes and other negative factors as reasons for resisting the EV shift. Situations such as the pile up on I-95 after a recent snowstorm hit Northern Virginia highlight concerns that make consumers wary of purchasing an EV. Imagine if the vehicles on I-95 were EVs, they likely would have lost power as batteries lose capacity more rapidly in colder climates.
Speaking of losing energy, electric heat pumps are often advertised as being 300 or 400 percent efficient. However, that’s when temperatures are at 55 degrees. When it gets cold, the efficiency falls. Additionally, solar panels will contribute very little to the electrical grid in the winter, the days are short, the
angle of the sun is low, and it may be cloudy or snowy on a winter day. So, on those days when it is really cold, electric heat pumps won’t be working efficiently, and keeping homes warm will put a real strain on the electrical grid. Texas was hammered last winter when the grid went into collapse, pipes bursting, people freezing and no water for sanitation. If this were to happen to New England, you could have a man-made disaster like we have never seen before.
Meanwhile, the media is starting to report stories about electrification’s impact on the environment. NBC Nightly News recently investigated how the growing efforts to mine nickel to help power EVs are putting rainforests across the world at risk. It’s a reminder that EVs comes with an environmental cost. The reality of EV costs is yet to be seen as states and the feds start to place fees on EVs to repair roads and bridges and offset lost revenue from fuel taxes where in the past EVs enjoyed the roads for free. The average EV costs almost $20,000 more than the average gasoline-powered car, and they’re a lot more expensive to insure. That’s fine for wealthy people but unfair to people who can barely afford to own and operate a car today.
Reality also shows EV technology is changing quickly. So how much will electrification really cost? Fast chargers/installation can cost more than $100k, and as battery technology changes so do the charging components, meaning today’s chargers may be obsolete in a few years. And where should EV chargers be located and how many will be needed? EV charging habits may be significantly different than ICE fueling routines. EMA released a study last year which showed a rapid build-out of an EV charging infrastructure, looking just at new distribution and transmission investments for EVs making up only 10 percent of the vehicles on the road, could cost as much as $150 billion. Tack on more electric heat pumps and whoa do you have additional demand to the NE grid that will likely put consumers in a precarious situation. Utilities are likely to raise rates universally so anyone with an electric bill, regardless of whether they own an EV or electric heat pump, will share that burden as a rate payer.
In other news, the Build Back Better (BBB) bill that lawmakers aimed to pass before the end of 2020 is now dead after Senator Manchin (D-WV) put the kibosh on additional spending. Small businesses concerned that Congress had the votes to increase taxes on the top individual tax brackets, capital gains, estate and the elimination of Section 199A deduction to pay for BBB, should be relieved as the Senate never had the votes in the first place. However, EMA is still taking BBB seriously as there’s still a chance something might come together on a “mini-BBB.” EMA initiated a targeted grassroots approach to oppose the EV tax credit, and at the very least, limit the credit for only families making less than $100,000 when purchasing an EV that costs less than $40,000. Additionally, EMA and MEMA have been working with Senator King (I-ME) to include liquid fuel heating appliances that operate with advanced biofuels in two House-passed BBB programs for
home electric appliances including electric heat pumps. Specifically, the House passed BBB includes $2.2 billion for a High-Efficiency Electric Home Rebate Program (HEEHRP) as well as $5.89 billion for state energy offices to provide home energy efficiency retrofit rebates for high-efficiency natural gas HVAC systems and water heaters.
The bottom line… when utility bills start to skyrocket and blackouts occur due to electrification, the public will not be happy. Clean green renewable liquid fuels are the solution to climate change, not electrification. Right now, the liquid fuels industry is making great progress in reducing our carbon footprint through the manufacturing and use of renewable diesel fuel. Expect to see more clean renewable liquid fuels hitting the marketplace, maintaining the ICEV and liquid fuel heating appliances’ future that the majority of Americans prefer to use.
THE GRANITE GROUP
LEGISLATIVE UPDATE
The Second Regular Session of the 130th Maine Legislature began on January 5, 2022. It was announced in December by presiding officers, (Senate President Troy Jackson and Speaker of the House Ryan Fecteau) were choosing to convene in person at the state house for two days in January 2022 to conduct legislative business and that further in person sessions would be determined later. Their decision was based on the rising number of COVID-19 cases at the time. Additional in person session days were held the day of the Governor’s State of the State Address in February and two other additional days in February.
The 2022 legislative session began with hundreds of bills on the agenda – some new and some carried over from the last session. Roughly 200 bills were carried over from the First Regular Session and about 150 new bills are being considered. Many focus on issues that have been at the forefront of conversation on both sides of the political aisle.
For the month of January and February, Joint Standing Committees met virtually on their regularly scheduled meeting days due to the current surge in COVID-19 cases, and a projected post-holiday surge. Both a video and audio livestream of the committee meetings have been available online. There are many that remain hopeful that Committee meetings will resume in person meetings sometime in March.
In addition to the work the Legislature has this session, Governor Janet Mills, as expected, presented a supplemental budget proposal midFebruary. The supplemental budget proposal returns half of the anticipated surplus back to Maine taxpayers and provides two years of free community college to pandemic-impacted students to strengthen Maine’s workforce. It also increases the Budget Stabilization Fund to more than $500 million, the first time in Maine history that state savings has ever surpassed a half billion dollars and provides $100 million to the Maine Department of Transportation to fix roads and bridges, increasing an unprecedented level of General Fund support.
SUPPLEMENTAL BUDGET
The Governor’s supplemental proposal aims to tackle pandemic-driven inflation and the state’s longstanding workforce shortage.
The supplemental budget comes after Maine’s nonpartisan Revenue Forecasting Committee (RFC) last year upgraded the State’s General Fund revenue forecast by 9.7 percent, or approximately $822 million, through Fiscal Year 2022-2023, which ends June 30, 2023.
In her supplemental budget, the Governor dedicated more than half of the surplus to one-time initiatives rather than ongoing spending, noting that the nonpartisan Revenue Forecasting Committee has said the longterm revenue projections are “volatile and susceptible to significant downside risk” in the years to come depending upon the course of the pandemic, Federal action, and inflation.
Governor Mills indicated that the proposal builds off a previous budget measure passed nearly unanimously by the Legislature that achieves 55 percent of the cost of education, fully restores revenue sharing with municipalities, replenishes the Land for Maine’s Future Program, and provides a total of $371 million in relief to Maine people and business – including $285 Disaster Relief Payments to more than half a million Maine people.
MEMA UNDER THE DOME
Having an unusual amount of carryover means that the Second Session of the 130th Maine Legislature, known as the “short” session, has been busier than what is typical.
MEMA is tracking dozens of bills this session. Included in this long list is, LD 1896 An Act To Allow Heating Fuel and Motor Vehicle Fuel Customers To Opt Out of Paper Delivery Tickets. MEMA approached Senator Daughtry, the Assistant Senate Majority Leader from Brunswick to put in the bill LD 1896 on behalf of MEMA members after ongoing discussions relating to the issue of whether hard copy tickets are still required by Maine law. This was voted and decided on by the Full Board of MEMA at the NNEEC in NH.
We know how important it is for MEMA members to have statutory clarity, rather than something less definite, such as an agreement between the individual company and their customers (allowing for e-tickets), then changing the statute is necessary. The public hearing for this bill was at the end of January and the work session was a week later. During the Committee meeting, members of the Innovation, Development, Economic Advancement and Business Committee (IDEA) discussed the bill and asked questions about how customers would opt in to an emailed receipt and expressed concerns over what would happen if the delivery went to the incorrect customer. Megan Diver participated in the work session answering questions lawmakers proposed. The IDEA Committee moved forward with the bill, but amended the language to clarify that the purchaser would need to indicate that they would prefer an emailed delivery ticket verses a paper delivery ticket and amended the language to indicate that the emailed delivery ticket be emailed to the purchaser within 24 hours of delivery. The Committee vote was unanimous in favor of the bill.
2022 ELECTION
Republicans and Democrats have both gotten a head start preparing and ramping up for the November 2022 election. Governor Janet Mills will likely face former Governor, Paul LePage. Former U.S. Representative Bruce Poliquin will be the Republican candidate to take on Representative Jared Golden of Maine’s 2nd District. This is all dependent on June’s primaries.
In addition to 2022 being a gubernatorial election year, all 186 legislative seats in the Maine Senate and the Maine House of Representatives are also up for grabs. Democrats will be campaigning in hopes that they retain the majority and Republicans will be giving it their best effort to regain control of both bodies. The election will be on November 8, 2022 and you can be sure advertisement from both parties will begin months prior.
The new legislature will be sworn-in on December 7 , 2022 and lawmakers will choose a new speaker of the house and a new senate president at that time. The winner of the governor’s race will be swornin January 4, 2023 and will give his or her inaugural address.
As always, MEMA will continue to work effortlessly on our members behalf at the State House and will be sure to keep members up to date on all issues of importance.
FUEL YOUR LOVE
Here in Maine, the heating fuel industry plays a crucial role in keeping households warm during these cold winter months.
73% of homeowners heat their homes using oil fuel, kerosene, and propane as primary heat sources. Although spring is right around the corner, the months of February and March still bring frigid temperatures to the state. Average temperatures hover in the low 20s during these months and are lucky to reach the 30s. Unfortunately, many homeowners in Maine struggle to keep warm as they balance heating their homes with other necessities. According to the Governor’s Energy Office, the cost to heat your home is the highest it has been since 2014, with heating oil costing $3.57, propane $3.28 and kerosene at $4.16 per gallon.
Therefore, Fuel Your Love 2022 made a substantial impact this Valentine’s Day and the rest of February.
MEMA and its members have promoted the Fuel Your Love Campaign since 2016 with the goal of giving the gift of free fuel to the people that need it most. MEMA members traveled throughout the state, filling oil tanks completely free of charge. The member companies provided the delivery service as well as the cost of fuel.
MEMA’s member companies are mostly small, family-run businesses who employ hard-working, and knowledgeable staff that take pride in ensuring their customers are satisfied and comfortable in their own homes. Without them and their willingness to partake in the event, Fuel Your Love wouldn’t be possible.
Support in 2022 was provided by the companies below:
Augusta Fuel Company (Kennebec County)
Colby & Gale (Lincoln County)
Consumers Fuel (Waldo County)
Dead River Company (York County)
Dixfield Discount Fuel (Oxford County)
Eastern Propane & Oil (York County)
Maine Energy (Penobscot County)
Maine Standard Biofuels (Cumberland County)
Murray-Heutz Oil & Propane (Androscoggin County)
RH Foster (Penobscot County)
V.L. Tammaro Oil (Washington County)
Continued partnership with WGME Channel 13
Fuel Your Love 2021 was the most successful year in the history of the promotion thanks to the help of those at WGME Channel 13. MEMA and WGME partnered one year ago to expand Fuel Your Love and increase the number of free deliveries to those that need them.
Since the pandemic continues to exacerbate problems for many families, MEMA and WGME are partnering up again for Fuel Your Love 2022.
Like the previous year, WGME is asking viewers to send nominations to MaineEnergyFacts.com and give someone the opportunity to have their home heated for free. This is a way for families to obtain free deliveries of heating oil, propane, or kerosene, especially those families that don’t qualify for the Low-Income Home Energy Assistance Program. The fuel cost will be paid for by MEMA.
A New Strategy, a Great Partner and Incredible Results
This year, MEMA brought our friends at Warm Thoughts Communica tions in to help us build on our past Fuel Your Love success. Along with serving as our go-to resource for NORA-funded consumer commu nications, Warm Thoughts has been managing MaineEnergyFacts. com since last year. They recommended a robust social media effort to complement MEMA’s PR and media strategy. Through a combination of Facebook advertising boosted posts and social content creation, Fuel Your Love is reaching exponentially more Mainers than ever before.
The results have been truly record-setting. In the first three weeks of the campaign, Fuel Your Love 2022 generated more than 1,000 nomina tions, 10x more than during the entire campaign last year!
YOUR LOVE
LIFE REQUIRES A
from an Experienced TPA You Can Count On
These days, employees need easy access to quality healthcare and a plan designed to meet their unique needs. For an increasing number of employers, that means a Self-Funded plan for flexibility and cost control plus a mobile app that places access to benefits, providers and cost transparency tools right in your member’s hands.
Diversified Group is proud to partner with members of the Maine Energy Marketers Association. To give your employees 24/7 access to benefits and greater peace of mind, contact us today.
INSURANCE CORNER
at MEMA and our Health Broker at the Allumbaugh Agency are always available to assist you with your questions and insurance needs.
Dear MEMA Health Trust Members,
Given an increased volume of merger and acquisition activity in the energy market we want to remind you of the Trust requirements regarding member company terminations. For employer members participating in the MEMA health plans, company terminations require at least 60 days advance notice and must align with the Trust open enrollment date of September 1st. Mid plan year company terminations are not allowed. The reason for these requirements relates to the provisions of the reinsurance or “stop loss” insurance the Trust purchases. The aggregate Trust claim liability is only adjusted annually which means a member company departing mid plan year would shift additional claim liability to the remaining member companies.
Dear MEMA Health Trust Members,
The options for companies that change ownership mid plan year are paying out the contract by paying their current premiums through August of the current plan year or having the acquiring company keep the affected
employees on the MEMA plan through August of the current plan year before transitioning them to the acquiring companies’ health plan (assuming the acquiring company is not participating in the MEMA health plans).
We are sending this reminder so MEMA Health Trust obligations can be considered in any future merger or acquisition discussions you may have. Please let us know if you have questions about these or any other Trust provisions.
Given an increased volume of merger and acquisition activity in the energy market we want to remind you of the Trust requirements regarding member company terminations. For employer members participating in the MEMA health plans, company terminations require at least 60 days advance notice and must align with the Trust open enrollment date of September 1st. Mid plan year company terminations are not allowed. The reason for these requirements relates to the provisions of the reinsurance or “stop loss” insurance the Trust purchases The aggregate Trust claim liability is only adjusted annually which means a member company departing mid plan year would shift additional claim liability to the remaining member companies
Thank you,
Joel Allumbaugh, the MEMA Staff, and the Health Insurance Trust Board of Trustees
If you have any questions about the Health Insurance Trust, please contact Joel Allumbaugh at (207) 623-1110.
The options for companies that change ownership mid plan year are paying out the urrent premiums through August of the current plan year or pany keep the affected employees on the MEMA plan through n year before transitioning them to the acquiring companies’ e acquiring company is not participating in the MEMA health
MEMA Congratulates Sarah Nadeau on her New Role!
After working closely with Robin Manson for two years, and most recently with Christa Fairbanks, MEMA’s former Health Insurance Trust Administrator, over the last year, Sarah assumed her new position as Office & Insurance Administrator for the MEMA Health Insurance Trust in October 2021.
nder so MEMA Health Trust obligations can be considered in any on discussions you may have. Please let us know if you have any other Trust provisions.
Sarah continues to maintain a close relationship with the MEMA & MTEC staff and is ready to assist all MEMA’s Members with their Health Insurance needs while maintaining her trademark attention to detail, sense of humor and the cheery disposition our members have come to know and appreciate.
MA Staff and the Health Insurance Trust Board of Trustees
Sarah remains in a supportive role, as well, helping to address the day-to-day operations for MTEC & MEMA. If you have had the pleasure of meeting Sarah, you already know how lucky MEMA is to have her.
s about the Health Insurance Trust, please contact Joel Allumbaugh HERE or call: (207) 623-1110
If you have any questions about MEMA’s Health Insurance Trust or Workers Comp, email Sarah at snadeau@maineenergymarketers.com.
MEMA Self Insurance Health Trust maximizes the benefit to our members as well as manage costs so we can provide competitive health plan premiums. Christa
Ӻ As a self-insured MEDICAL plan, our collective efforts in managing health care costs benefit MEMA members rather than the insurance company. Plans include lower deductible options and out-of-pocket limits.
Ӻ Professional partners ensure hospital billing accuracy, apply reasonable cost attribution and challenge exorbitant costs.
Ӻ Valuable consumer assistance with shopping health care at your fingertips.
Ӻ Benefits include fully Insured group voluntary dental, vision, and life plans with nationally recogized insurance companies.
The Workers’ Compensation Self-Insurance Trust Fund is funded by members of Maine Energy Marketers Association who have joined together to collectively insure their workers’ compensation exposures.
Ӻ The Workers’ Compensation Self-Insurance Trust Fund emphasizes safety. Strong employer-directed safety and loss control programs help prevent losses and promote premium stability.
Ӻ Self-Insuring means that participants qualify for dividends each year in which the group’s costs do not exceed the group’s premiums.
SAFETY!
Ӻ Self-Insuring means leaving the commercial insurance market, with its ever changing pricing and loss control service, and becoming part of a homogeneous group with risks and costs easier to quantify and manage.
Ӻ Self-Insuring means you take direct responsibility for your claims and safety procedures.
propane is environmentally friendly
Propane is an excellent way to reduce your emissions while meeting your energy needs. It’s a clean, nontoxic energy source that will not contaminate soil or groundwater. And renewable propane sourced from used cooking oil and other waste products is carbon-neutral.
PROPANE FOR YOUR BUSINESS
• Propane is a clean energy source that can help your business or organization lower emissions and reduce your operation’s carbon footprint.
• Propane is the affordable clean energy choice for businesses required to meet stringent state and local emissions regulations.
• By using a clean American energy like propane, you can position your business as one that cares about the local environment and the communities in which you work.
• Propane offers the lowest total cost-of-operation of any energy source, including electricity, for fleet vehicles.
• Businesses that operate equipment powered by propane will reduce fuel costs by 30 to 50 percent compared with other fuels.
• Most businesses that transition to propane-powered equipment often see a return-on-investment within 24 to 36 months because of reduced fuel costs and fewer maintenance needs — something that you won’t find with other clean energy sources.
• Propane is a proven fuel that has long provided an economical solution in several of the nation’s most important commercial markets including agriculture, transportation, home and building construction, and material handling.
PROPANE FOR YOUR HOME
• Using propane appliances in your home can help reduce your carbon footprint compared to other energy sources.
• You should feel good about your home energy decisions because propane is better for the environment than other energy sources.
• Propane appliances are more energy efficient, so you save on monthly energy costs while also doing better by the environment.
• Propane backup generators can help keep your home safe from power outages that can cause discomfort for the family.
High gas prices aren’t going unnoticed by both consumers and politicians alike, prompting “solutions” designed to help.
Fundamentally, gasoline prices are a function of supply and demand. Oil and natural gas are global commodities traded in a global market, and the current spike in prices is being felt around the world due to high demand as we come out of the pandemic. The obvious solution, then, is to increase supply, and fortunately, the U.S. is well positioned to do so –if industry is allowed.
Despite the need for more supply, the White House has not only not encouraged more domestic production, but taken steps to discourage it. For instance, President Biden has proposed a ban on production on federal lands and waters – which constitute 22 percent of U.S. crude oil production. While the current supply and demand issues can’t be attributed to this ban specifically – courts have ordered that leasing continue for the time being – over time, taking this supply offline will further exacerbate supply issues and could push prices higher.
Ironically, however, the White House has repeatedly called on OPEC to produce more oil – boosting foreign economies. Given that U.S. oil is produced under the strictest environmental standards in the world, this approach doesn’t seem to make environmental sense.
Another approach was to tap into the Department of Energy’s Strategic Petroleum Reserve (SPR). The SPR was created in 1975 in response to the Arab Oil Embargo, and is intended to provide a 90-day supply of oil in the event of an emergency. The SPR has been tapped previously during actual emergencies such as in 1991 (Gulf War) and 2005 (Hurricane Katrina). Although the White House is trying to coordinate a SPR release with other nations, the effects of a SPR release would be short term and limited. The release is likely to result in OPEC+ producers decreasing expected production to offset any impact. Further, the SPR exists for use in a true crisis – a global event or disruption that requires swift action. While today’s high gas prices are presenting many challenges, this situation is not being caused by disruption.
Thanks to the shale revolution, over the last decade the United States became a net exporter of oil and petroleum products – in other words, since 2017 we have been exporting more than we import.
The Reason Behind High Gas Prices The Reason Behind High Gas Prices
Gas prices are up 61% year-over-year, and they could rise higher. Here’s why gas prices are up – and why most of the solutions suggested by politicians to lower them won’t work.
This has led some politicians to call for a ban on oil exports to address gasoline prices. Aside from the fact that much of the U.S. crude sold overseas can’t even be refined in the U.S.
President Biden recently asked the Federal Trade Commission to investigate oil companies, alleging (without proof) that companies are engaging in illegal conduct to drive prices higher. This is not the first time that such an allegation has been made, and past FTC investigations have found no such evidence. Oil markets, like other commodities, are carefully regulated and monitored. Further, oil companies have little to gain from a sharp rise in gas prices, which may reduce consumption of their product.
Bottom Line: At the end of the day, oil is a global commodity trading in a global market. Supply is outpacing new production, and OPEC has not been responsive to calls to increase oil production. The United States is fortunate to be able to produce enough oil, natural gas, and gasoline to be self-reliant, but the current Administration has been hostile to new energy production and is taking steps to limit production and infrastructure, while at the same time asking OPEC and other nations to produce more oil.
Recently top ten cheapest states according to AAA
The top ten most expensive (including Washington D.C.) were:
PROGRAM BACKGROUND
• Alliance for Maine has conducted online advertising since 2017.
° This pre-dates MJC, distinct funding.
• Over a five-year span, the team has tested different platforms, ad formats, and messages.
• The program has been consistently geared towards awareness and educating all Mainers about the need for foundational jobs (conditioning the environment for MJC efforts).
° No targeting, other than geography; no subgroups.
° No barrier to the content, such as sign-ups.
° No transactions, such as an advocacy “ask.”
PROGRAM RESULTS – ROUGH CUMULATIVE
• Impressions – How many times someone saw an AFM Ad
° 37 million
• Reach – How many different people saw an AFM ad
° >300,000 (minimum)
• Views – How many times someone watched an AFM video
° 1.6 million (minimum)
• Clicks – How many times someone clicked on ad/went to website
° 77,000
• Engagement – How many times someone liked, commented, shared
° 1.2 million
IMPORTANCE OF SUSTAINED EFFORT
• We are able to be inclusive, rather than looking only for like-minded coalition.
• We have learned what works and aligned tactics to AFM goals.
° More importantly, we have learned which channels work best for which purpose.
The MODA Trust Board of Directors has, for the past several years, supported the efforts of the Alliance for Maine (AFM). AFM is a non-partisan, community-based effort to educate Mainers about our economic challenges and the need for a plan to repair and grow our economy. Below are the latest summary of AFM’s effort to educate Mainers about the need for foundational jobs and an improved economic environment.
• We have maximized efficiency and optimized our cost structure
° During last quarter, reduced our avg. cost to deliver 1,000 “impressions” from $4.13 to $3.23.
° We can deliver a video view for $0.03, clicks and engagements for ~$0.02.
• We have proven ourselves to the advertisers and benefit from relationships.
° We only advertise highly relevant content, which also makes us cost efficient.
KEEPING CONTENT FRESH
• Frequency is not high, but we are cautious to not fatigue the audience with the same content.
• We provide various messages, all connected to foundational jobs, such as investment, competition, political system, future workforce, skills.
• 170 videos of various formats and length
° Animations and cartoons
° White Boards “Explainers”
° Employer Features
° Strategic Maine
° Interview-Style Videos and “Shorts”
AFM uses newspapers, social media, and websites to raise awareness about the importance of foundational jobs.
Over the last several years it has reached hundreds of thousands of Mainers, its videos have been viewed over 1.6 million times, and people have liked, shared, or commented on the ads over one million times. In addition, AFM’s published videos on YouTube can be found at www.youtube.com/channel/UCDxwmfcdPguPI0FLOmOasaw/videos.
The success of this program comes from sustained effort, constantly improving our products and approach, and a commitment to non-partisan, broad-based education. The support of the Board of Directors and input from various members of the MODA Trust have been indispensable to AFM’s success so far. With your input and support, AFM will continue to expand awareness about the need for a long-term strategic plan to grow foundational jobs in Maine and create a brighter, more prosperous future for our state.
ISTATE OF THE STATE
Governor Mills Delivers State of the State Address on February 10, 2022
n her second State of the State address, Governor Janet Mills declared that “Our state is strong, and it is growing stronger every day,” as she touted the significant progress Maine has made despite the ongoing COVID-19 pandemic and as she vowed to continue progress on behalf of Maine people.
Maine has the third highest vaccination rate in the nation and the fourth lowest death rate in the nation, despite having one of the oldest populations in the nation. Despite that success, Governor Mills recognized the continued impact of the pandemic and pledged that her Administration would continue to support the people of Maine.
The Governor also noted that Maine’s Gross Domestic Product, a key measure of economic growth, grew at the second fastest rate in New England and the 14th fastest rate in the nation through the third quarter of last year; that Maine’s population grew at the second highest rate in New England and 7th highest rate in the nation; that Maine has a budget surplus of $822 million and that Maine’s Rainy Day Fund has more than doubled under her tenure to a record high of nearly $500 million.
However, the Governor also acknowledged the challenges remaining on Maine’s road to recovery, identifying the longstanding workforce shortage as the biggest problem facing Maine after the pandemic and the toll inflation is taking on the pockets of Maine people.
To help Maine people grapple with the increased costs of everyday goods, Governor Mills announced she will return half the surplus –$411 million – to the people of Maine, consistent with the calls of Senate and House Republican lawmakers.
The Governor also underscored the importance of her Maine Jobs & Recovery Plan to tackling the workforce shortage, outlining its crucial investments in the human infrastructure that experts have said Maine people need to succeed, including child care, housing, high-speed internet, health care, and world-class educational opportunities from Pre-K through college.
Governor Mills also announced several initiatives to support children’s growth and path into the workforce and to strengthen Maine’s economy, including:
• Increasing Pay for Child Care Workers and Early Childhood Educators: Governor Mills proposed investing more than $12 million to increase pay for child care workers and early childhood educators to strengthen our child care system across Maine, consistent with the goals of legislation sponsored by House Speaker Ryan Fecteau.
• Investing in K-12 Education: Governor Mills pledged to create an Education Stabilization Fund, capitalized with $30 million from the General Fund, to maintain the state’s commitment – achieved for the first time ever under her administration – to fund public schools at 55 percent.
• Fully Funding Free Meals: Governor Mills proposed to fully fund universal free meals in public schools, consistent with an initiative spearheaded by Senate President Troy Jackson.
• Experiential Learning: Governor Mills directed Education Commissioner Pender Makin to design a program of experiential learning to reconnect Maine’s children to the classroom and to get them outdoors, exposing them to new experiences and enhancing their educational opportunities.
• Achieving Internet Connection for All Who Want It By 2024: Governor Mills pledged that every person in Maine who wants to connect to high-speed internet will be able to by 2024 – just two years from now.
• Supporting Maine Hospitals and Nursing Homes: Governor Mills proposed sending another $50 million to Maine hospitals and nursing homes, $25 million each, to help them confront the continued impacts of the pandemic.
• Convening a Silver Cabinet: Governor Mills committed to convening a Silver Cabinet to mobilize State government, eliminate silos and enhance communication and coordination to ensure that every person in Maine may age safely, affordably, in a way that best serves their needs.
To read the Governor’s full State of the State Address, please visit www.maine.gov/governor/mills/newsroom.
Scan the QR code to learn more about Tuition Assistance or to view classes.
To get started visit https://mtecenter.com At MEMA Technical Education Center, our courses are concentrated, direct, hands-on, and designed to provide students with the best HVAC-R training to prepare them to confidently enter the workforce and secure employment quickly.
Journey
to A Better
Tomorrow
We celebrate our partnership with the Maine Energy Marketers Association.
Through our commitment to innovation and thought leadership, together we’ll deliver on the promise of a better tomorrow.
If survival is not enough reason to
offer clean
liquid heat, then what will it take?
No one enjoys or embraces change. It would be great if we could continue to buy and sell carbon-based fuel for the next few decades and not have to learn a new pitch to share with our customers, but the status quo is clearly not sustainable. Even the most resistant to change out there knows that—so, now what? What does this new roadmap for energy and policy, being championed by our political leaders, mean to us?
Our lives were turned upside down in 2021. The COVID-19 pandemic forced us into seclusion and redirected how we would lead our families and manage our respective businesses and careers. During this time, we learned to adapt. We figured out that many of us could be disciplined and productive working from a sliver of space in our homes. The result was momentum toward a more collaborative world order that rested on an increasingly connected global economy, one facilitated by the internet and lower-cost communication, advances in transportation, and the flows of capital, skills, knowledge, and people.
However, the momentum is now going in reverse. Our spaces have become more splintered, with a resurgence of distrust, competition for power, and the rising politics of suspicion and resentment. Globalization doesn’t go away, but becomes more fragmented and contentious, adding to the troubles along the already-troubled path to economic growth and the need to achieve net-zero yesterday.
Before COVID-19 struck, the global economy was on fire. Anticipated growth within the next five years was well on its way to $100 trillion. Unfortunately, the world economy is now tormented by lives thrown
into disarray. Small businesses everywhere are fighting for survival. Companies of all sizes are under severe pressure. Less-developed countries and developing nations have become even further impoverished, with hope evaporating for many, while even the most advanced governments are stretched to the extreme by debt and a huge loss of economic output.
The U.S. appears to be decades away from resuming normalcy, and that is assuming vaccines now in play are effective and sustainable. If not, then resuming business as usual will continue to be challenged by hesitancy and suspicion.
An alternate reality
Behaviors have been altered by this continuing COVID-19 challenge with the introduction of the Omicron variant into our world, and whether this psychological phenomenon can ever return to its previous state remains to be seen. At least for a time, there will be apprehension to return to large groups, which has already forced me to cancel not one but three XBX educational seminars sponsored by the National Biodiesel Board and its stakeholders.
This fear of gathering in close quarters is not just affecting people’s willingness to attend events, either. Carpooling and public transportation may go the way of the dinosaur, at least in the near term, while people revert to driving their own cars fueled by gasoline or coal-powered electricity subsidized with a small percent of wind or solar energy.
Work need not be concentrated in offices anymore either, as many companies have demonstrated that they can operate successfully from home offices, equipped with all the amenities of the office plus a couch for deep thinking after lunch, barking dogs or a wandering child here or there in the background. Time spent commuting can be reduced. Business meetings can be replaced, successfully or otherwise, with virtual connection. This impact will last long after lockdowns are in our rearview mirrors.
Oil’s role will be challenged by these shifts in behavior, work, and daily life. It will, however, take a few years, post-vaccine, to understand the lasting impact on business and leisure travel, education, commuting, and whether the office of the future will remain at home. If so, it will be important for people to work from home, but not live at work.
The current environment in which we all exist will continue to impact politics at home and abroad as well. The divide between nations will become more apparent and working together will become more difficult with a fractured global community.
A sign of these challenges can be seen every day with the widely publicized supply chain shortages. As we go to press, container ships anchored offshore, loaded high with products that are not on store shelves, are getting more and more backed up by the hour due to the lack of human resources needed to offload them and restore the supply chain.
Energy—particularly oil, gas, and renewables—will continue to be an integral part of the new geopolitics in life after Covid-19 and the Omicron variant, as hard as post-pandemic life might be to even think of right now. While many of my industry associates struggle with keeping ahead of those legislators who are interested in electrifying everything, I choose to continue protecting market share by revealing the benefits of low-carbon liquid fuels.
Whether the discussion centers on biodiesel, renewable diesel or products yet-to-be-determined, we still have an opportunity to protect and defend our businesses with these cleaner liquid fuels. If you wish to discuss electricity, hydrogen, wind, and solar, then you can—but those “clean” fuels are not being hauled in your shiny aluminum tank wagons that navigate your local delivery markets. What you haul is liquid, and honestly, it should be Bioheat fuel, not generic No. 2 home heating oil.
Will the pandemic crisis accelerate an energy transition or slow it?
Many argue for a Green recovery, with regional and national governments’ spending focused on climate-friendly infrastructure and greater support for renewables, electric vehicles, and air source heat pumps. For local governments, green and cleaner air become their rationale for restricting diesel trucks and gasoline vehicles.
The expeditious time frame to “Green up” remains unrealistic in many cases. The sheer scale of the energy infrastructure that supports our
supply and demand, the need for reliability, the demand for renewables and the disruptions and conflicts that would result from speed is being disregarded in many ways.
As PADD I (Petroleum Administration for Defense Districts I—a.k.a. the U.S. East Coast) is the epicenter of home heating supply and distribution, we can intelligently evaluate available assets and make progressive improvements to prepare for the ever-increasing volume of low-carbon fuel, which will be a prerequisite for our collective survival. However, to achieve our goals, we need to accelerate communications with our customers and advise them why we are now delivering Bioheat fuel.
At the same time, we need to press our local legislators with our story that no conversions to heat pumps are required to achieve the goals they are seeking. We have a product and are well in motion to incrementally increase volumes over the next decade to be defined, not just by ourselves but by others, as clean-fuel merchants.
All the confusion and unrest that we manage every day, individually and collectively, is what it is, as the saying goes. We seem to always figure out how to turn challenges into opportunities; however, this decade-plus long transition to low-carbon Bioheat fuel simply is perplexing to me. What’s it going to take to convince the fence-sitters to move their trucks into the clean-heat rack position and abandon the carbon-intensive liquid, which is the same fossil-derived energy source that is pushing politicians to accelerate their efforts to jettison homeowners into installing air source heat pumps? To go one step further, do your customers really deserve to be purchasing a fuel that is on the government’s most- wanted list? I think not.
It can’t be said enough, if you are one of those naysayers who simply refuse to adopt this industry transition to clean liquid heat, you’re hurting yourself, your family, your customers and, if it matters, the industry at large. Whatever your per-gallon profit margin selling carbon-based fuels is today, multiply it by “0” because that’s what you’ll be making on a gallon of carbon that is being regulated out of business. Give Bioheat fuel a chance and increase the odds that you will be keeping people warm for decades to come. Recently published in ICM
By
Paul Nazzaro, President, Advanced Fuel Solutions, Inc. 85 Flagship Drive, North Andover, MA 01845 (978) 258-8360.
