MEMA MAG Summer 2022 by Maine Energy Marketers Association

MEMA MAG PROPANE SUMMIT

4.0

+ Energy Marketers of America Members Take On Capitol Hill + Governor Mills Supplemental Budget

+ Do Oil Companies Make Money on High Gas Prices?

LEADING PROPANE SOLUTIONS

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Visit CHSpropaneinsights.com, contact Eric Brandt at eric.brandt@chsinc.com or call 866-839-7145 to start planning your supply needs today.

MEMA’s Chairman, Charlie Burnham in front of the U.S. Congressional Delegation.

It’s summer in Maine! With warmer days upon us it’s easy to daydream about going to the beach, fishing, golfing, or a relaxing cookout in the backyard – especially after the past couple of years. However, in today’s world, it’s not quite as simple as it used to be to pack up and head to camp. At home and across the Country we are faced with the economic reality of the pandemic shutdowns, less and less domestic energy production amidst higher demand, and volatility in the commodities market stemming from Russia’s invasion of Ukraine - all of which have combined to produce $6.00 a gallon heating oil, record high prices at the pump, a sharply declining stock market, and skyrocketing inflation. Kind of makes you want to get to camp and stay there!

Despite all the challenges we face, your MEMA/MTEC team continues to make sure that you have energetic and proactive representation in Augusta and Washington, DC. In fact, as you peruse this edition of MEMA Mag make sure to check out Megan’s Legislative Update where she outlines the closing days of the 130th Maine Legislature and what new laws will affect you and your business. Also, it’s very important that you take a minute to read the very next page after this one which outlines how critical it is to support our EnergyPac with a financial contribution, today. The monies in EnergyPac allow us to support candidates for Governor, Congress, and the Maine Legislature who support free enterprise and the heating fuels industry. Please be as generous as you can, it will make a difference!

I also want to let you know that MEMA Chairman of the Board, Charlie Burnham, and I had a very successful trip to Washington recently. While there we attended the 2022 Energy Marketers of America conference and “Day on the Hill” which included issue briefings, region, and state executive meetings as well as the opportunity to meet and interact with EMA members from all over

the country. Most importantly, we had face to face meetings with Senator Susan Collins, Senator Angus King. We also met with Representative Chellie Pingree and Representative Jared Golden’s staff members. These meetings were very positive with both senators supportive of MEMA and its members, and both recognizing that fossil fuels will continue to play a critical role in the Maine and the U.S. for years to come. We also talked with them about the importance of credit card swipe fee reform and urged their support of legislation that will give small business energy marketers at least two choices to route transactions which, ultimately, will reduce costs for consumers. Finally, we updated the delegation on what’s new at MTEC and invited all to visit and see first-hand how we train and equip Maine’s next generation of HVAC-R technicians. These meetings were key to maintaining strong relationships and reinforcing that MEMA is their go to resource on issues affecting our industry today and in Maine’s energy future.

Finally, the interesting times in which we find ourselves serve to highlight one certainty; the heating fuels industry, and the men and women who comprise it, play an indispensable role in our economy and our lives. The efficiency and reliability of our products, which has been borne out time and again, call for the United States to adopt a broad-based approach - that includes all forms of energy - to America’s evolving energy needs. Something to keep in mind as you enjoy our beautiful Maine summer.

Looking forward to seeing soon,

CONGRATULATIONS ON 60 YEARS OF MEMBERSHIP WITH MEMA

MEET OUR TEAM

CHARLIE SUMMERS PRESIDENT

MEGAN DIVER VICE PRESIDENT

DAN WEBBER MTEC DEAN

HANNAH ESTES BUSINESS MANAGER

COLLEEN EGE ADMIN ASSISTANT

SARAH NADEAU INSURANCE & OFFICE ADMINISTRATOR

JON GREEN MTEC INSTRUCTOR

NICHOLAS SCARFO MARKETING & COMMUNICATIONS COORDINATOR

BOARD OF DIRECTORS

EXECUTIVE BOARD

MARC LECASSE | 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 COURT | MAINE ENERGY INC.

MARK GAGNON | P. GAGNON & SONS INC.

MARK ST. GERMAIN | ST. GERMAIN

ROBERT LUCE | VALLEY GAS & OIL COMPANY

ASSOCIATION BOARD

JAMIE ROBINSON | A.E. ROBNSON OIL CO.

DAVID BABCOCK | ADAMS & FOGG OI EQUIP, CO.

ROBERT SHIBLEY | BOB’S CASH FUEL LLC

PETER BUOTTE | COMMUNITY ENERTY CO. - ALT.

DEANNA SHERMAN | DEAD RIVER COMPANY-ALT.

JEFF WEBB | EASTERN PROPANE & OIL, INC.

JIM PIKE | ENERGY KINETICS

JUDY DELANEY | GLOBAL PETROLEUM CORP.

CHARLIE BURNHAM

CHAIR OF THE BOARD

CHARLIE BURNHAM ENERGY

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 TRACEY | R.H. FOSTER ENERGY. LLC

ELWIN SCOTT| SIMARD & SONS, INC.

KRISTYN SCHEWEITZER | SPRAGUE ENERGY

MICHAEL TAMMARO | V.L. TAMMARO OIL

ENERGY PAC FOR MAINE

Whether it be Maine legislators or members of Congress, government intrusion into every aspect of our personal, business, and work lives is no longer a worry – it’s a fact. This, coupled with out-of-control tax and spending policies along with unprecedented efforts to eliminate the liquid fuels industry – i.e., your business – means that we can no longer remain on the sidelines or simply “sit this one out” - that luxury no longer exists. Our industry can deliver the cleanest, most cost-effective and energy-secure solution for Maine’s future, but electrification proponents want to put us all out of business today. To stop them, we will need every tool in our toolkit: advocacy, communications, education, and more. Help us bridge the gap by making a generous contribution now.

Have you contributed to MEMA’s Energy PAC for Maine?

In 2021 we raised nearly $16,000, this year is a big ELECTION year. Our Goal is to raise $50,000.

It is a scary thought, but the future of your company is in the hands of those elected to represent us – let’s make sure we support and elect legislators who support us and our industry.

We ask you for a contribution to MEMA’s ENERGY PAC for Maine. This can be a person contribution or business contribution (at one of the donor levels listed below) by credit card and/or check:

Silver: $500

Gold: $1,000

Platinum: $2,500

Petroleum $5,000

Other: $_______

If writing a check please make it payable to:

ENERGY PAC for Maine

25 Greenwood Road Brunswick, ME 04011

If contributing by credit card, please call MEMA at 207-729-5298.

With all that you have on your plate we understand that we are asking a great deal. With your active support over the next year, we will turn the tide and chart a bright future for not just ourselves but, most importantly, our Maine and America.

MEMA thanks the following for their contributions in 2022 GOLD SPONSORS

Augusta Fuel Company

SILVER SPONSORS

Valley Gas & Oil CO.

MEMA thanks the following for their contributions in 2021 PLATINUM SPONSORS:

H.A. MAPES

CHARLIE BURNHAM ENERGY SERVICE, INC.

BOB'S CASH FUEL, LLC

GOLD SPONSORS

J.P. CARROLL FUEL CO.

S-K QUALITY FUELS

DAIGLE OIL CO.

SIMARD & SONS, INC.

TIDEWATER OIL COMPANY

A.E. ROBINSON

DEAD RIVER COMPANY

SILVER SPONSORS

GARRETT PILLSBURY PLUMBING & HEATING

OTHER

WALDO COUNTY OIL

R.L. GREENLAW & SON

LIFE REQUIRES A GREAT HEALTHCARE PLAN

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.

Association. The education, services, and events we provide are successful based on strong support we receive from both associate members and members.

Members

Commercial and Retail customers in many applications: fuel, agriculture, chemicals, manufacturing, construction, mining, oil and gas, and many more. For more information and its products, visit https://greatplainsindustries.com or contact Daniel Maher dmaher@gplains.com.

- Great Plains Industries (GPI) was founded in 1972 and is respected globally quality fuel transfer pumps, fuel meters, flowmeters and industrial instrumentation fluid transfer pump and liquid flowmeter markets around the world.

- Great Plains Industries (GPI) was founded in 1972 and is respected globally for its quality fuel transfer pumps, fuel meters, flowmeters and industrial instrumentation for transfer pump and liquid flowmeter markets around the world.

NEW MEMBER SPOTLIGHT

The Company is home to the GPI®, FLOMEC® and GPRO® brands that serve Industrial, ercial and Retail customers in many applications: fuel, agriculture, chemicals, manufacturing, construction, mining, oil and gas, and many more. For more information and its products, visit https://greatplainsindustries.com or contact Daniel Maher dmaher@gplains.com.

MEMA 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 support we receive from both associate members and members.

Company is home to the GPI®, brands that serve Industrial, ercial and Retail customers in many applications: fuel, agriculture, chemicals, manufacturing, construction, mining, oil and gas, and many more. For more information on GPI products, visit https://greatplainsindustries.com or contact Daniel Maher dmaher@gplains.com.

Please join MEMA 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 both associate members and members.

enzie Fuels- MacKenzie Fuels has been proudly serving the NH Seacoast, Manchester Area, Northeastern MA & Southern Maine since 1995. They are a family owned and service, installation and delivery company that is 100% committed to fulfill ALL your and cooling needs in a professional and timely manner. Their expert technicians are fully equipped to make your experience with MacKenzie a “top notch” experience. about Mackenzie Fuels at https://www.mackenziefuels.com or contact Dave Marcotte davem@mackenzieheatcool.com .

GPI, Inc.- Great Plains Industries (GPI) was founded in 1972 and is respected globally for its high-quality fuel transfer pumps, fuel meters, flowmeters and industrial instrumentation for fluid transfer pump and liquid flowmeter markets around the world.

Great Plains Industries (GPI) was founded in 1972 and is respected globally quality fuel transfer pumps, fuel meters, flowmeters and industrial instrumentation for transfer pump and liquid flowmeter markets around the world.

Company is home to the GPI®, FLOMEC® and GPRO® brands that serve Industrial, ercial and Retail customers in many applications: fuel, agriculture, chemicals, manufacturing, construction, mining, oil and gas, and many more. For more information on GPI products, visit https://greatplainsindustries.com or contact Daniel Maher dmaher@gplains.com

MacKenzie Fuels- MacKenzie Fuels has been proudly serving the NH Seacoast, Manchester Area, Northeastern MA & Southern Maine since 1995. They are a family owned and service, installation and delivery company that is 100% committed to fulfill ALL your and cooling needs in a professional and timely manner. Their expert technicians are fully equipped to make your experience with MacKenzie a “top notch” experience. Learn about Mackenzie Fuels at https://www.mackenziefuels.com or contact Dave Marcotte davem@mackenzieheatcool.com

enzie Fuels- MacKenzie Fuels has been proudly serving the NH Seacoast, Manchester Northeastern MA & Southern Maine since 1995. They are a family owned and operated installation and delivery company that is 100% committed to fulfill ALL your heating ooling needs in a professional and timely manner. Their expert technicians are trained and equipped to make your experience with MacKenzie a “top notch” experience. Learn more Mackenzie Fuels at https://www.mackenziefuels.com or contact Dave Marcotte at davem@mackenzieheatcool.com .

The Company is home to the GPI®, FLOMEC® and GPRO® brands that serve Industrial, Commercial and Retail customers in many applications: fuel, agriculture, chemicals, manufacturing, construction, mining, oil and gas, and many more. For more information on GPI and its products, visit https://greatplainsindustries.com or contact Daniel Maher dmaher@gplains.com.

MacKenzie Fuels- MacKenzie Fuels has been proudly serving the NH Seacoast, Manchester Area, Northeastern MA & Southern Maine since 1995. They are a family owned and operated service, installation and delivery company that is 100% committed to fulfill ALL your heating and cooling needs in a professional and timely manner. Their expert technicians are trained and fully equipped to make your experience with MacKenzie a “top notch” experience. Learn more about Mackenzie Fuels at https://www.mackenziefuels.com or contact Dave Marcotte at davem@mackenzieheatcool.com.

W.S. Emerson Co.- Family owned and operated since 1921, W.S. Emerson offers spectrum of branded apparel an d promotional products. An experienced production works in-house to find and create the perfect items to represent client companies. Emerson specializes in corporate merchandize, custom online orders, retail apparel, apparel, workwear, special events and sports teams. For more information, visit https://www.wsemerson.com or contact Laurie Baughman at lauriebaughman@wsemerson.com

W.S. Emerson Co.- Family owned and operated since 1921, W.S. Emerson offers a full spectrum of branded apparel an d promotional products. An experienced production works in-house to find and create the perfect items to represent client companies. W.S. Emerson specializes in corporate merchandize, custom online orders, retail apparel, apparel, workwear, special events and sports teams. For more information, visit https://www.wsemerson.com or contact Laurie Baughman at lauriebaughman@wsemerson.com .

Emerson Co.- Family owned and operated since 1921, W.S. Emerson offers a full spectrum of branded apparel an d promotional products. An experienced production team -house to find and create the perfect items to represent client companies. W.S. specializes in corporate merchandize, custom online orders, retail apparel, safety workwear, special events and sports teams. For more information, visit https://www.wsemerson.com or contact Laurie Baughman at lauriebaughman@wsemerson.com

W.S. Emerson Co.- Family owned and operated since 1921, W.S. Emerson offers a full spectrum of branded apparel and promotional products. An experienced production team works in-house to find and create the perfect items to represent client companies. W.S. Emerson specializes in corporate merchandize, custom online orders, retail apparel, safety apparel, workwear, special events and sports teams. For more information, visit https://www.wsemerson.com or contact Laurie Baughman at lauriebaughman@wsemerson.com.

CONGRATULATIONS

Watercress Financial Group- Watercress Financials’ leadership team has worked together for over 30 years providing home improvement financing options that benefit the contractor partners and homeowners they serve. Learn more about how Watercress Financial Group can benefit you by visiting https:// watercressgroup.com or contact Greg Burns at mailto:GBurns@ watercressgroup.com.

Emerson Co. of branded apparel an house to find and create the perfect items to represent client companies. W.S. specializes in corporate merchandize, custom online orders, retail apparel, safety workwear https://www.wsemerson.com lauriebaughman@wsemerson.com

ENERGY MARKETERS OF AMERICA MEMBERS TAKE ON CAPITOL HILL

In May, EMA led a successful in-person DC Conference and “Day on the Hill,” securing support on key issues including efforts to alleviate the truck driver shortage through a letter from Rep. Congressman Troy Balderson (R-OH). Additional issues marketers highlighted included the proposed FDA menthol ban and excessive credit card swipe fees. On the heating fuels front, EMA continued to remind lawmakers how important the National Oilheat Research Alliance (NORA) is to small business heating fuel marketers and the need for a long-term reauthorization of the biodiesel blender’s tax credit. EMA’s fly-in was featured in Politico Influence, a well-read newsletter in Washington, which reported: “The Energy Marketers of America (formerly known as the Petroleum Marketers Association of America), which represents energy marketers of motor and heating fuel products, is holding its first in-person fly-in since 2019. More than 200 energy marketers representing 47 state associations are set to meet with lawmakers and staff to address truck driver shortages and fuel prices. Rep. Drew Ferguson (R-Ga.) addressed the group during its opening session”.

Meanwhile, the House passed H.R. 7688, the Consumer Fuel Price Gouging Prevention Act along mostly a party line vote of 217207 which aim to go after both motor and heating fuel industries. Four Democrats opposed the bill. EMA sent a letter to Capitol Hill opposing the bill, arguing that the bill failed to take into consideration the impact on fuel markets of the Russia-Ukraine, truck driver shortage, lack of refining capacity, and excessive credit card swipe fees. The good news is that this is a messaging bill that has no chance of becoming law as it will fail in the Senate.

On the legal front, EMA recently asked the federal appeals court in Washington, D.C. to review the Environmental Protection Agency’s (EPA) December 2021 final rule that increases the stringency of greenhouse gas emissions for model year 2023-2026 cars and light-duty vehicles by significant percentages. The Biden EPA is ostensibly using EPA’s tailpipe emissions standards to phase out internal-combustion engine vehicles in exchange for electric vehicles. EPA estimates that its rule for the four model years will reduce fuel demand by 361 billion gallons.

A key issue in the challenges is the “major questions doctrine,” which holds that courts should not defer to agencies on questions of “vast economic or political significance” unless Congress has provided explicit authority to the agencies. In other words,

unelected bureaucrats shouldn’t be dictating new obligations that impact the American public of vast economic and political significance upon the private sector and states unless Congress authorizes such action. The Supreme Court recently used this doctrine to block the Biden administration’s emergency rule requiring employees of large companies either to be vaccinated or masked and tested weekly. EMA also filed a petition with a federal Court of Appeals in Washington, D.C. to review EPA’s restoration of California’s waiver of preemption under the Clean Air Act (CAA), which establishes federal regulation of motor vehicle emission standards. The waiver for California’s Advanced Clean Car program allows the State to set more stringent standards than the federal government, including California’s greenhouse gas emission standards and zero emission vehicle mandate. The waiver, granted in 2013, was withdrawn by the Trump Administration, only to be restored by the Biden Administration in March of this year. The case will test whether California can continue to pursue its authority under the Clean Air Act to establish more stringent programs that will mandate electric vehicle use in the State and hasten the elimination of liquid fuels.

whether California can continue to pursue its authority under the more stringent programs that will mandate electric vehicle use in elimination of liquid fuels.

The bottom line is that a vehicle’s total emissions should account production and resourcing, lifetime usage, and end -of-life disposal remains small as most consumers still opt for gasol ine powered vehicles

The bottom line is that a vehicle’s total emissions should account for its entire life cycle: production and resourcing, lifetime usage, and end-of-life disposal after use. The EV market remains small as most consumers still opt for gasoline powered vehicles when given

MEMA’s Chairman, Charlie Burnham in front of the U.S. Capitol before meetings with Maine’s Congressional Delegation.

HAZMAT TRAINING

MEMA Technical Education Center is now offering Hazmat Training as required by 49 CFR 172 Subpart H of PHMSA (Pipeline and Hazardous Materials Safety Administration) regulations

Who is required to have this training? Any person: What training is required?

Who directly affects hazardous materials transportation safety. Who operates a commercial motor vehicle used to transport hazardous materials. A person who manufactures, fabricates or inspects packages used to transport hazardous materials.

Training requirements are specified in 49 CFR 172.704:

General Awareness/

Familiarization Training

Function Specific Training

Safety Training

Security Awareness Training

Who is responsible for this training?

A hazmat employer who employs at least one hazmat employee

When is training required?

Within 90 days of hire, or a change in job function. At least once every 3 years

Testing and Recordkeeping required – 49 CFR 172.704(d)

Each hazmat employee must be tested by appropriate means on the subjects covered. Hazmat employers must create a record of training and issue a certificate to each employee

This course is structured specifically for the job functions of MEMA members who transport hazardous materials in commerce. This training session will also include training on OSHA Standard 1910 1200 That is the Hazard Communication Standard that requires all employers to provide information to their employees about the hazardous chemicals to which they could be exposed.

Training time is 2.5-3.5hrs. | Class fee is $125/Members, $225/Non-Members. Quantity discounts to be determined. | Onsite training available on request. Please call (207-729-5298) or email Hannah (hestes@maineenergmarketers.com) to schedule a class.

“The class was great. It was a great benefit to this small company. Thank you for putting this on.”

-Laura, Hall and Smith Energy

MAINE LEGISLATURE HAS CONCLUDED 130TH

It was another year that was unlike your “typical” legislative session. Instead of meeting twice a week when session began the full Legislature only met a handful of times until April due to COVID-19 precautions. Legislative Committee’s met via zoom only until late March when the Legislature began offering a “hybrid” option for zoom or in person participation.

Both chambers of the Maine Legislature met on April 25th for the final regular meeting of the 130th Legislature. Lawmakers were supposed to adjourn on Wednesday, April 20th, statutory adjournment day, but voted to extend session one extra day to address $12 million in funding of items on the special appropriations table as part of the supplemental budget deal.

All four party caucuses – House and Senate Democrats and House and Senate Republicans –had $3 million to spend and met privately to set priorities for the Appropriations and Financial Affairs Committee to consider. Each of the Legislature’s joint standing committees also submitted their funding priorities for consideration to the Appropriations and Financial Affairs Committee.

More than 200 bills were approved by the Legislature costing a combined $1.6 billion to implement and all were competing for a slice of the $12 million left unallocated in the supplemental budget.

As with the overall two-year budget, the chairs and lead members of the appropriations committee did most of their negotiating in private, then held a public session to vote on specific elements once an agreement was reached.

The bills that were awaiting funding include those that were carried over from last year’s session, with costs ranging from tens of thousands of dollars to tens of millions. The bills represented a wide range in health care, education, social services, housing assistance and workforce development. All bond proposals were rejected, including MEMA’s bill, LD 1637, An Act To Authorize a General Fund Bond Issue To Provide Funds for Maine To Meet the State’s Carbon Reduction Goals by Supporting the Use of Biofuels.

Some of the bills approved by the appropriations committee needed to be amended to match any decisions to grant partial funding –something that required additional votes in each chamber before the bills were sent to the Governor.

Following work done by the Committee on Appropriations and Financial Affairs, the Senate moved several bills to receive funding off of the special appropriations table and voted for final passage on the final day of session.

Though the supplemental budget contained only $12 million in unallocated funding, the legislature voted to approve over $40 million in funding on Monday. The funds needed to spend in excess of the agreed upon $12 million were taken from other existing state government funds, including those related to liquor, marijuana, Medicare, and the Office of the Attorney General.

In total, the Senate removed around 90 bills from the special appropriations table. It removed and finally enacted 30 pieces of legislation. The Senate removed approximately 60 additional bills

from the special appropriations table for amendment, many of which contained appropriations providing roughly $27 million in funding from sources other than the General Fund.

All bills taken off the special appropriations table during the final day of the session were finally passed by the Senate and were sent to Governor Janet Mills for signature or veto.

The 130th Maine State Legislature left the Statehouse on Monday night having completed most of their work. Legislators returned on May 9th for the last day “veto day” to consider any vetoes Governor Janet Mills may have issued.

During the 130th Legislature, which occurred from 2021 to 2022, 969 bills have become law and 27 bills have been vetoed. Approximately 97 percent of bills that reached Governor Mills’ desk during the 130th Legislature became law.

The Legislature met Monday, May 9, 2022 to consider the five bills vetoed by the Governor. In total, throughout Governor Mills’ time in office, 1,826 bills have become law and 38 bills have been vetoed. Approximately 98 percent of bills to reach Governor Mills’ desk have become law.

Governor Mills addressed the House and Senate separately as lawmakers finished up their work and complimented the bipartisan accomplishments that included the decision to return about 60 percent of a projected $1.2 billion revenue surplus to eligible taxpayers in the form of $850 checks.

In addition to allocating the revenue surplus, Mills noted the work lawmakers have done on so-called forever chemicals, out-of-state waste, student debt relief, expanding the state’s Good Samaritan law, universal free meals in public schools, two years of free community college tuition, and increased funding for hospitals and nursing homes, among others.

The bills vetoed by Mills dealt with requirements for new electricity transmission lines, governance of the University of Maine System, employer retaliation against workers who use earned paid leave, bail conditions and probation, and tax incentives for the forest products industry.

All of the bills lost some support following the governor’s veto.

It takes a two-thirds vote of both the House and Senate to override a veto. Thus far, no veto by the Governor has been overridden by the Legislature.

The two biggest successes MEMA had this session:

LD 1896 An Act To Allow Heating Fuel and Motor Vehicle Fuel Customers To Opt Out of Paper Delivery Tickets is now Maine Public

Law, Ch. 579. This law amends current law, allowing a vendor using a bulk sale delivery system equipped with the capability of issuing an electronic receipt, ticket or other recorded representation for a bulk sale may give a purchaser the option to receive any information required under this section through electronic means, such as a cellular telephone, a computer or e-mail, in lieu of or in addition to a paper delivery ticket.

LD 1550 An Act To End the Sale of Flavored Tobacco Products is now dead. This bill would have prohibited the sale of all flavored tobacco products. Doing this would penalize Maine’s retailers. The sale of these products would 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 taxers — 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. MEMA was also successful in killing legislation that would have increased the cigarette tax.

While the 2022 legislative session was technically a “short” session, the list of wins we secured for the industry doesn’t stop at the two I have mentioned above. The wins we accomplished wouldn’t have been possible without you– our members and supporters –you should feel proud of your role in MEMA’s accomplishments these past two years.

MEMA MEMBERS, THANK YOU!

GOVERNOR MILLS SUPPLEMENTAL BUDGET

On April 20, 2022 Governor Janet Mills signed the Supplemental budget into law, only one day after winning the overwhelming support of the Legislature.

The budget delivers $850 direct relief payments to Maine people to help with the high costs of inflation– one of the strongest relief proposals in the country. It provides tax relief to working Maine families and two years of free community college to pandemicimpacted students, among other important initiatives.

With Governor Mills’ signature, the emergency legislation took effect immediately. At the direction of the Governor, the Department of Administrative and Financial Services (DAFS) will issue the payments as quickly as possible to an estimated 858,000 Maine people – with a target date of June 1, 2022 to begin delivery. The payments will be delivered via mail, which is the most reliable method of distribution, to ensure that the money is delivered without significant error.

Highlights of the supplemental budget include:

Inflation Relief: Gives back more than half of the State’s surplus –$729.3 million – in the form of one-time $850 checks directly to an estimated 858,000 Maine people. Recipients must file a Maine individual income tax return as a full-time resident by October 31, 2022 and not be claimed as a dependent on another’s tax return. Eligible Maine people must have a Federal adjusted gross income (FAGI) of less than: $100,000 if filing single or if married and filing separately; $150,000 if filing as head of household; or $200,000 for couples filing jointly.

Tax Break for Maine Retirees: Exempts additional Maine retirement pension from income tax, improving the deductions for residents from $10,000 to $25,000 in tax year 2022, to $30,000 in tax year 2023 and to $35,000 in tax years 2024 and beyond. This will provide $36.8 million in income tax relief for Maine retirees in 2022, with an average tax cut of $560 in just the first year. Retirement pension income from any source will be tax exempt in Maine up to $35,0000 per individual by tax year 2025, providing an annual average tax cut of approximately $795. Military pensions and annual social security income remain fully exempt in Maine.

Fund dollars to ensure stable housing by increasing the maximum benefit of Maine’s Property Tax Fairness Credit. An estimated 100,000 low- and middle-income property owners and renters who pay more than 4 percent of their household budgets on property taxes or rent will be eligible for a refundable tax credit valued at up to $1,000 each year, with an even more generous $1,500 in maximum relief extended to seniors.

Increased Tax Relief for Low- and Middle-Income Working Maine Families: Provides $27.6 million in ongoing General Fund dollars so families can afford necessities and fight poverty by increasing the value of Maine’s Earned Income Tax Credit (EITC), which provides a refundable tax credit to working Maine people and families. This increase is estimated to help 100,000 Maine people, primarily working families with incomes of less than $57,414, by increasing the maximum benefit by an average of $400 per family, bringing the total EITC benefit per family to an average of $764 per year.

Two Years of Free Community College: Dedicates $20 million in one-time General Fund dollars to provide up to two years of free community college for all students from the high school graduating classes of 2020, 2021, 2022 and 2023 who enroll in a Maine community college full-time.

Overhauls Student Loan Debt Repayment Program: Provides an annual $2,500 or up to $25,000 lifetime refundable tax credit benefit for student loan debt relief. The supplemental overhauls the Education Opportunity Tax Credit and transforms it into a powerful, nation-leading tool to retire student debt for graduates and help employers to draw people from all walks of life to work and live in the State of Maine.

Prevents Tuition Hikes Across University of Maine System: Provides nearly $8 million in one-time General Fund dollars to help the University of Maine System keep tuition flat for in-state students and provides ongoing funds for the System to invest in updating and renovating its campus buildings.

Increases Pay for Child Care Workers and Early Childhood Educators: Provides more than $12 million in ongoing General Fund dollars to increase pay for child care workers and early childhood educators to strengthen our child care system across Maine.

Fully Funds Free School Meals: Provides nearly $27 million in ongoing General Fund dollars, to be combined with the $10 million previously set aside by the Governor and Legislature, to fully fund universal free meals in public schools.

Expand Children’s Health Insurance: Provides $3.2 million in General Fund dollars, which will leverage more than $9 million in Federal funding, to expand the Children’s Health Insurance Program, otherwise known as CHIP, to provide comprehensive coverage to an additional 40,000 Maine kids.

Increases MaineCare Rates: Provides $30 million in ongoing support from the General Fund to fully implement updated rates for direct support worker wages, add and accelerate new costof-living adjustments for rates, and raise rates to be sufficient to pay direct support professionals at 125 percent of minimum wage. This is in addition to the more than $500 million investment

already being made through the currently enacted biennial budget for MaineCare and provider payments.

Supports Maine Hospitals and Nursing Homes: Sends $25 million in one-time funding to Maine hospitals, including $6.8 million from the General Fund, as well as $25 million in one-time funding to long-term care facilities, including $7.5 million from the General Fund, to help these Maine health care organizations deal with onetime pandemic related costs.

Tackles PFAS: Dedicates an initial $60 million in one-time General Fund dollars to capitalize a Trust Fund to Address PFAS Contamination. With the goal of securing additional Federal and other sources of funding in the long-term, as well as approximately $9.3 million for PFAS mitigation and related efforts in Maine during 2022 and 2023, including for in-state lab capacity, wildlife testing, and additional farmers assistance.

The budget also maintains the Budget Stabilization Fund, otherwise known as the Rainy-Day Fund, at $493 million.

It constrains net appropriations to just $172 million of the $1.2 billion surplus, dedicating more than 75 percent of the surplus to one-time initiatives. The proposal results in a $8.67 billion General Fund budget. The currently enacted General Fund budget is $8.5 billion.

Watercress Financial Can Help You Grow Your Business

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2022 ELECTIONS

In November, Maine voters will go to the polls and elect who they choose as the governor, their member of Congress, as well as their State Representative and State Senator.

The Maine legislative races are important to who has control of Maine’s legislative body. Control of that legislative body also carries with it control of the offices of attorney general, secretary of state, treasurer and state auditor.

In the past 47 years, the Maine House has been in Republican hands for only two of those years. While the degree of control has fluctuated, the Democrats have possessed Maine’s lower house for the other 45

years. The story in the Senate is still tilted in favor of the Democrats, but Republicans have possessed the upper chamber for a total of 17 years.

Recently, things have been a bit more competitive. Since 2011, Republicans and Democrats have been far more even in the House, with elections regularly putting the margin between the two parties at 10 seats or less. In the Senate, each party controlled the body for six years.

This means you can expect a lot of attention, and a lot of money, to pour into these races. It also means that this year, you should spend a little more time paying attention to these local elections and choose candidates who support our industry and our businesses.

With inflation, the cost of liquid heating fuels, gasoline and other good rising it is no surprise that the economy has replaced the pandemic as the top concern for Maine people.

According to a recent public poll conducted by Digital Research Inc’s. Critical Insights of Portland, 41 percent of the 622 Maine voters surveyed in March and April cited the economy or a specific economic concern, such as affordable housing, gas prices, inflation or cost of living. Results also show that they don’t expect it to get better any time soon either. With the Maine economy being the top concern among voters in Maine and what’s at stake for the Maine Legislature the 2022 elections will be interesting to see play out.

CONGRATULATIONS ON 10 YEARS OF MEMBERSHIP WITH MEMA

2022 REMAINING COURSE SCHEDULE, JULY - DEC

OIL HEAT

TECHNICIAN TRAINING

Member $3,775 Non-Member $4,175

Jul 25 – Sep 2

Aug 15 - Nov 10 (nights)

Oct 17 – Nov 30

OIL JOURNEYMANS PREP (1 DAY) CLASS

Member $199 Non-Member $299

Sep 10, Dec 10

EPA CERTIFICATION & INTRO TO AC

Member $950 Non-Member $1,050

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

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

Jul 18 – Jul 22

Aug 8 – Aug 12

Sep 26 – Sep 30

Dec 19 – Dec 23

PROPANE/NG:

APPLIANCE INSTALLATION & SERVICE w/ Basics

Member $3,075 Non-Member $3,375

Sep 6 – Oct 7 Oct 17 – Nov 18

Nov 14 – Dec 22

TANKSETTER & OUTSIDE PIPING w/ Basics

Member $1,400 Non-Member $1,600

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

Oct 24 – Oct 28

OPERATOR QUALIFICATION

Member $550 Non-Member $650

Aug 8 – Aug 9

OQ REFRESHER

Member 350 Non-Member 450 Aug 10

Maine Energy Marketers Association Technical Education Center

MEMA Technical Education Center brings the HVAC trades to high schools across Maine. The increasing need in a growing ﬁeld for well-trained technicians in heating, ventilation, air conditioning, and refrigeration (also known as HVAC-R) is plentiful across the state of Maine. According to Stepwise Data Research conducted in 2018, there are 5,000 jobs as a direct result of the heating fuel industry and 4,500 indirect jobs. There are almost 10,000 jobs in the state of Maine alone and more jobs being created every day. It is for this reason that the industry was inspired to create MEMA Technical Education Center (MTEC).

EXPANDED TRAINING FACILITY In the summer and fall of 2018, MTEC

PROFILE

www.mtec4me.com

25 Greenwood Road, Brunswick, ME 04011

PHONE: 207.729.5298

DEAN/LEAD INSTRUCTOR: Dan Weber HEADQUARTERS: Brunswick, ME

WE WELCOME FIELD TRIPS technical institutes across the state to reach out to schedule

JOB PLACEMENT Since their expansion in late 2018, MTEC has

OUTREACH

BRING THE NEW BRAND TO LIFE IN YOUR BUSINESS

In the November-December 2021 issue of IPGA News’ we featured propane’s new brand and logo—PROPANE Energy for Everyone. The cover story provided an overview of why the Propane Education and Research Council (PERC) felt a new brand was needed, the research behind the new brand, and tools available to help marketers implement the brand.

In this and the next three issues of IPGA News we will focus on specific and simple steps you can take to bring the new PROPANE Energy for Everyone brand to life in your business. We know you’ve got a business to run and time is precious. We also know how important it is to the future of the propane industry to be able to tell propane’s positive environmental story to your customers. We’ll zero in on one step per issue, so let’s get started…

STEP #1. GET YOUR EMPLOYEES COMFORTABLE WITH THE PROPANE ENERGY FOR EVERYONE MESSAGE.

As the conversations surrounding climate change and electrification grow louder, who will your customers be listening to as they make their home-heating decisions? Why not let it be you and your employees? After all, your company is their trusted propane provider. But before employees can communicate that propane is environmentally friendly, they need to be knowledgeable and comfortable with the information.

SIMPLE ACTIONS YOU CAN TAKE:

Go to propane.com/energyforeveryone. Click the “Download Marketing One-Pager” to download PERC’s How to Talk About Propane and the Environment (see it on the opposite page). This document provides key points to emphasize when talking to customers, whether it’s a homeowner or business professional.

Introduce the information on How to Talk About Propane and the Environment to your employees during staff or safety meetings. You may even consider creating a “How to Grow Our Business” meeting. And don’t expect employees to pick up all of the information in one sitting. Insert the environmental conversation over a series of meetings. You can even bring it up during coffee breaks!

Go to propane.com/energyforeveryone and click on the “Download Industry Brand Reference Card.” Print copies for your drivers and customer service representatives to place in their truck or near the phone. The card’s brief talking points can help them drive home the message that propane is versatile, reliable, affordable and environmentally friendly.

The training module called Propane and Environment Training is an excellent tool for you and your employees. Go to propane.com, click on Learning Center at the top of the home page and log in. Look for the Featured Courses and click Propane and Environment. If you haven’t used the Learning Center before there’s a video to help you get started.

Remember, customers are becoming increasingly interested in the impact their energy choices make on the environment. Once your employees have the basic information they need, they can be powerful spokespersons for why propane is a smart energy choice.

Need assistance with getting started? Contact PERC’s Director of Industry Engagement Paula Wilson at paula.wilson@propane.com.

NEXT ISSUE,

LOGO VISIBLE.

PROPANE SUMMIT 4.0

Cinco de Mayo was a great day for the HVAC industry as around 200 people attended the Propane Summit in Auburn. The day started off with a welcome from MEMA President/CEO Charlie Summers and a surprise visit from the Mayor of Auburn, Jason Levesque. Following the welcome were education sessions on propane safety, legislation, and a codes review from Dale Hersey of the Maine Fuel Board.

Once the opening sessions concluded, the summit was broken up into two breakout rooms where attendees gained some valuable information from some of the most experienced professionals that make up various aspect of the industry. The education sessions covered a wide array of topics including but not limited to driver specific training for pre and post trip inspections, regulator instillation and service tips, and dealing with first responders at a propane incident.

Along with the education sessions, there were thirteen wonderful vendors in attendance that exhibited some great products and services that are and will continue to move the industry forward. The vendor area was a popular spot throughout the event for attendees to catch-up with familiar faces and reestablish past connections, as well as making new ones.

VENDORS

Sweeney Rogers Geraghty Inc.

TerraVest Industries

The Granite Group

PRESENTERS

Brent Cammett

Caillin Miller

Leslie Anderson Dale Hersey

Steve Whitcomb

Byron Breda

Dave Newman

Cody Reeves

Tom Protasewich

The Propane Summit was a huge success thanks in large part to the sponsors, vendors, presenters, and attendees who brought great energy to the event that lasted throughout the day. MEMA would like to thank you all for your efforts to make this year’s Propane Summit a huge success.

Here are some quotes from presenters, vendors, and attendees that highlight the success of the Propane Summit:

“Like everything else that the Maine Energy Marketers Association does, the Propane Summit was top notch. It attracted market participants from all over the state of Maine and beyond which led to a remarkable exchange of ideas. The presentations were informative with speakers that were open to questions and a true desire to teach. Service and technicians are at the top of the list of drivers in our business, so this collection of vendors and fuel dealer technicians and service representatives was timely. There is no doubt that for all that attended and interacted and engaged with others, we left in a better place than we were when we entered.”

-Paul Capriotti, Marketing Director, Blackline Marketing, LLC

“It was refreshing to see so many companies come out and support this year’s Propane Summitt. There was an excitement at the vendor tables and breakout sessions that I have not seen in several years. The TGG booth was busy throughout the day with many quality questions and conversations about propane products and the general direction of the industry.”

-Matthew Wotton, Fuel Products Market Manager, The Granite Group

“The point of view from the Fuel Inspectors was the attendance was excellent, standing room only for all the presentations and the audience was engaged and questions were thoughtful. After the past 12-24 months this was very well received and needed. From a presenter’s point of view, the attendance was a good cross section of the industry. I was able to do some good networking and was able to put a face to a name allowing me to connect on a more

personal level which in my position as an inspector helps me to understand the needs and concerns of the propane industry.”

-Dale Hersey, Senior Inspector, Maine Fuel Board

“I found the Propane Summit to be upbeat, enthusiastic, informative, and collaborative. It was an excellent opportunity to connect and reconnect with business associates, industry associates, and regulatory associates. I especially enjoyed the presentation by Dale Hersey from the Maine Fuel Board. The event was very worthwhile, and I would definitely recommend attending it.”

-David Marcotte, Wholesale Manager, Mackenzie Fuels

DO OIL COMPANIES MAKE MONEY ON HIGH GAS PRICES?

Yes, they make money—but let’s look at how much profit is from gas.

Yes, it’s true that major oil companies had high net income last year, in some cases the highest in eight years. But it’s because of oil prices, not gas prices.

Here is the net income in 2021 for the five major oil companies that drill for oil, refine it and sell refined products like gasoline and other fuels:

COMPANY 2021 NET INCOME: (CRUDE

Exxon Mobil Corp.

Shell Oil Co./Motiva Enterprises LLC

Chevron Corp.

BP North America

ConocoPhillips/Phillips 66

OIL AVERAGED $71)

$23 billion

$19 billion

$16 billion

$13 billion

$8 billion TOTAL

$79 billion

(Information is from published earnings reports, rounded to the nearest billion).

How much of these profits are from gas sales? Let’s look at the numbers, using only U.S. demand. The United States is the largest consumer of energy, responsible for one-fifth of world demand.

U.S. drivers consume approximately 9 million barrels of gasoline a day. Multiply that by 365 days in a year and by 42 gallons of crude oil in a barrel at an approximate retail net profit (before taxes) of 10 cents per gallon, that adds up to $14 billion in estimated annual profits from selling gasoline in the country—for all 145,000 retailers selling fuel in the U.S.

However, only about 39% of the country’s 145,000 fueling outlets carry branded fuel of one of the five major oil companies. In these contractual arrangements, the station promises to buy a certain amount of fuel in exchange for the right to use the brand’s name. These stores are not owned by the oil company. In fact, only about 0.1% of the fueling outlets in the country are owned by a major oil company.

(The branded station count is to the nearest 1,000 stores; the company-owned count is from NielsenIQ as of December 2021.)

So, when you see announcements about profits or earnings reports of oil companies, don’t confuse them with your local/ neighborhood convenience store that’s competing for your business every day to fuel your vehicle. Net margins at c-stores and gas stations are only 1 to 3% before taxes. Fuel retailers know that their customers are price sensitive.

If oil companies don’t make much money in “downstream” operations, where do oil companies make their money? It’s in their name: from oil, whether that means “upstream” operations of drilling for it or “middle stream” operations of refining it. It is important to recognize that oil producers don’t determine the price of oil—it is an international commodity that is traded on the open market, which means that traders set the price based upon their expectations for demand and supply in the future.

Breakeven costs to “produce” oil vary wildly, depending on how easily it flows to the surface via wells. It readily flows from Saudi Arabian fields, but the costs are higher for offshore drilling and on many U.S. oil fields. A survey of oil producers by the Dallas Fed found that oil prices needed to be above $56 a barrel to profitably drill new wells, with breakeven costs lower for existing wells. When prices are elevated, it is tempting to evaluate profitability at that moment in time—but to fully understand profitability in the fuels sector (from oil companies to convenience retailers selling fuel) requires looking at a longer period. For example, in

2021, oil prices averaged $71 a barrel, meaning oil producers could expect a profit of at least $15 a barrel, whether that oil was refined into gasoline, jet fuel or home heating oil, among other options. But in 2020, oil prices averaged $42 a barrel for the year, meaning it was difficult to break even producing oil. Most oil companies experienced

credit card fees which can be 10 cents or more per gallon, retailers have net profits of around 10 cents a gallon.

Selling gasoline as a convenience store certainly can be a good business model. After all, there is a reason that 145,000 outlets—

to A Better Journey Tomorrow

Through our commitment to

and thought

together we’ll deliver on the promise of a better tomorrow.

FACTORS THAT AFFECT GAS PRICES

Gasoline prices are one of the most recognizable price points in American commerce.

Nearly 40 million Americans fill up their vehicles every day, and gasoline purchases account for approximately 5% of consumer household spending per year.

Consumers recognize when gas prices change—and some are willing to drive 10 minutes out of their way to save a few cents per gallon. Historically, two in three consumers shop for fuel based on price, whether gas was as low as $1.62 per gallon at the start of 2009, or as high as $3.28 per gallon at the start of 2022.

WHAT’S IN A GALLON OF FUEL?

The main components of retail gasoline prices are the cost of crude oil, taxes, refining costs, and distribution and marketing costs.

The price of crude oil has the largest impact on gas prices. There are 42 gallons of oil per barrel. Retail gasoline prices move an estimated 2.4 cents per gallon for every $1 change in the price per barrel. Although this is not an exact calculation, it demonstrates how gas prices change when crude oil prices change.

Federal, state and local government taxes contribute to the retail price of gasoline. The federal excise tax is 18.4 cents per gallon for gasoline, and 24.4 cents per gallon for diesel.

In 2021, the cost of crude oil was 53% of the price of a gallon of gasoline, and the cost of refining the oil was another 16%. The remaining cost was taxes (16%) and distribution and marketing.

OWNERSHIP AND SUPPLY ARRANGEMENTS

Less than 0.2% of all convenience stores that sell gas are owned by a major oil company, and about 4% are owned by a refining company. Regardless of their fuel brand, most convenience stores (95%) are owned by independent companies, whether one-store operators or regional chains. Each company has a different business strategy, which can dictate the type of fuel they buy.

Four broad factors can impact retail fuel prices:

• Fuel type: Stores that sell fuel under the brand name of a refiner typically pay a premium for that fuel, which covers marketing support and signage, as well as the proprietary fuel’s additive package. These stores may not experience as much wholesale price volatility during supply disruptions.

• Delivery method: Retailers who purchase fuels via “dealer tank wagon” have fuel delivered directly to the station by the refiner. These retailers may pay a higher price than those that receive fuel at “the rack” or terminal. In addition, retailers may contract with a jobber to deliver fuel to their stations or operate their own trucks, and the choice will influence overall costs.

• Length of contract: Retailers may have long-term contracts with a specific refiner. The length of the contract, which can be 10 or more years, and associated terms of that contract can affect the price retailers pay for fuel.

• Volume: Retailers may receive a better deal based on the amount of fuel they purchase, whether based on volume per store or total number of stores.

Within a specific company, the stores may not have the same arrangements. Companies often sell multiple brands of fuels, especially if they have acquired sites with existing supply contracts.

SALES STRATEGIES IMPACT GAS PRICES

Retailers often consider whether to sell gas at a low profit per unit and make up for it on volume, or sell gas at a higher profit per unit and expect less volume. Location can also be a factor. For example, stores located in areas where real estate costs are high may pass along a cost of business when setting their retail fuel prices. Some stores may factor in seasonality, particularly if they are in a location where customer traffic dramatically changes during the summer and winter months. Other stores may be in a competitive market where consumers have ample choices of where to shop.

Other considerations may come into play:

• Wholesale gas price changes: Competing retailers may have different wholesale prices based on the terms of their fuel purchase (as noted above) and when they purchased their fuel, especially during times of extreme price volatility. Gasoline is a commodity, and its wholesale price can have wild swings. It’s not unusual to see wholesale price swings of 10 cents or more during the day.

Depending on sales volumes and storage capacity, some retailers can receive three deliveries a day, or one delivery every three days. Retailers may not be able to adjust their prices when wholesale prices increase because a competitor may not be experiencing an increase in their cost of goods sold. Conversely, a retailer may adjust gas prices when the competition adjusts prices, either following or in advance of a fuel shipment.

• Contracts: How retailers buy fuel impacts their pricing strategy. Retailers sign long-term contracts that may dictate the amount and frequency of their fuel shipments. When supplies are tight,

retailers with long-term contracts may have lower wholesale costs than retailers who compete for a limited supply on the open market. When supplies are constrained, those with long-term contracts may face allocations (a maximum amount of fuel that they may obtain) on the amount of fuel they receive. Those without these contracts may be unable to purchase fuel for a period of time or be forced to pay a significant premium.

• Brand: Where the retailer buys fuel also affects pricing strategies. Branded retailers often pay a premium for fuel in exchange for marketing support, imaging and other benefits. Branded retailers typically have the least choice in how they obtain fuel, or at what price, but that is offset by the benefits a brand provides.

Each factor adds complexity to a retailer’s pricing strategy and can create unusual market dynamics. There are times when a retailer with the highest posted gas price in an area could be making the least profit per gallon based on when, how and where the fuel was purchased.

No matter the pricing strategy, retailers tend to reduce their markup to remain competitive with nearby stores when their wholesale gas prices increase. This can lead to a several-day lag from the time wholesale prices rise until retail prices rise. Likewise, when wholesale gas prices decrease, retailers may be able to extend their markup and recover lost profits, with retail gas prices dropping slower than wholesale prices.

ANNUAL MAINE PHCC EXPO

On March 25th, MEMA staff members Colleen and Nick, along with instructors Dan Weber and Jon Green, accompanied MTEC students to the 126th annual Maine PHCC Expo. Staff and current MTEC students attended a Codes Review presented by the Maine Fuel Board, followed by some valuable and informational education sessions.

Staff and students spent the rest of their time at the Expo interacting with attendees, vendors, and advertising the benefits of attending MTEC. The MTEC table was a popular spot among attendees looking for more information about training, and familiar faces who have taken classes at MTEC stopped by to say hello as well. As the day concluded, MTEC students from the Appliance Installation & Service class received their transcripts signifying their graduation from the course. Look out for MTEC at next year’s PHCC Expo and come say hello!

THE GRANITE GROUP

Cathodic Protection

TECH CORNER

CATHODIC PROTECTION

To safely install underground propane tanks and buried metallic piping they need to be provided with a method of protection from corrosion. This is commonly referred to as cathodic protection. In this article I will cover what this means, why it is necessary, what the methods of protection are, and what maintenance and follow up is required.

RTo safely install underground propane tanks and buried metallic piping they need to be provided with a method of protection from corrosion. This is commonly referred to as cathodic protection. In this article I will cover what this means, why it is necessary, what the methods of protection are, and what maintenance and follow up is required.

Cathodic protection is a technique used to control the corrosion of a metal surface by making it the cathode of an electrochemical cell . A simple method of protection co nnects the metal to be protected to a more easily corroded "sacrificial metal" to act as the anode, according to Wikipedia.

Cathodic protection is a technique used to control the corrosion of a metal surface by making it the cathode of an electrochemical cell. A simple method of protection connects the metal to be protected to a more easily corroded “sacrificial metal” to act as the anode, according to Wikipedia.

Underground propane tanks can be protected by using the proper number of anode bags and the proper anode materials for the soil type. Buried metallic gas lines can be protected using dielectric fittings at the entrance to the building, at the tank and at the outdoor connected load.

A cathode can be defined as any metal that is being protected by an anode by reducing its ability to oxidize. An anode is a “sacrif icial metal” that is connected to the Cathode. The anode will break down in place of the cathode and provide protection for a period of time. The propane tank is the Cathode, and the anode bag is the Anode. The anode bag will need to be tested and replaced as it breaks down and its protection abilities decrease over time. This will vary dependent upon the environment it is situated in.

A cathode can be defined as any metal that is being protected by an anode by reducing its ability to oxidize An anode is a “sacrifitical metal” that is connected to the Cathode. The anode will break down in place of the cathode and provide protection for a period of time. The propane tank is the Cathode, and the anode bag is the Anode. The anode bag will need to be tested and replaced as it breaks down and its protection abilities decrease over time. This will vary dependent upon the environment it is situated in.

Anode bags should be installed in the soil surrounding the underground propane tank. Preferably near the center of the tank. The bag needs to be attached by the included wire to the provided connection at the top of the underground tank. Older tanks would require a connection lug to be welded on site, but newer tanks provide this connection from the factory.

The best installation practice is to remove the anode from its box and packaging and to soak it in water. An anode bag will be most effective when it is wet. As a rule of thumb one anode is installed with a 500-gallon tank or smaller and two bags are installed with a 1,000-gallon tank. If the surrounding soil is abnormal, it is a good idea to consult a professional for proper sizing and placement.

Once the tank is back filled documentation and testing should be performed. Testing can be done using a voltmeter and a copper sulfate electrode. Voltage readings in the surrounding soil will indicate if the anode is working properly. An acceptable reading is above -0.85 volts.

For larger commercial cathodic protection applications an impressed current method can be used.

NFPA 58 requires cathodic protection for underground propane tanks installed after 2011, and it is good practice to provide protection for buried metallic gas lines as well. Following protection guidelines will help prevent premature failures of propane gas systems. Without proper cathodic protection pitting will occur over time which will lead to the potential of gas leaking into the surrounding soil and basements or accessible openings nearby.

Once the underground tank and anode bags are installed, they need to be tested to ensure effectiveness. Testing requirements for cathodic protection of underground propane tanks are clearly laid out in NFPA 58 section 6.6.6.1. Testing needs to take place upon installation unless conditions will not allow, otherwise within 180 days of installation. Effectiveness needs to be verified 12 to 18 months after installation. Follow-up testing needs to happen in 36-month intervals and documentation of the last 2 tests must be made available. If a system fails to meet testing standards, the installation needs to be repaired to meet standards as soon as possible and not to exceed 180 days.

Buried metallic gas piping should also be electrically isolated. Isolating the piping at the outlet of the tank will prevent the buried anodes from trying to protect metals in the system beyond the tank. Isolating the buried gas line from metals and electrical currents within the house is good practice as well. This can all be done using dielectric unions and fittings. These are available in a variety of fittings, valves, unions, pigtails, and regulators.

Protecting propane systems with proper cathodic protection is important to practice and understand. It is important to take the time to learn and understand what is required. Training and informational resurces on best practices to keep your customers and communities safe are readily available through PERC and NPGA.

Buried metallic gas piping should also be electrically isolated. Isolating at the outlet of the tank will prevent the buried anodes from trying metals in the system beyond the tank. Isolating the buried gas and electrical currents within the house is good practice as well. done using dielectric unions and fittings. These are available in fittings, valves, unions, pigtails, and regulators.

Protecting propane systems with proper cathodic protection is practice and understand. It is important to take the time to learn what is required. Training and informational resources on best

THE EASIEST & HARDEST COMMERCIAL VEHICLES TO DECARBONIZE

Global leaders have set decarbonizing energy consumption as a top priority for public policy and financial investment criteria. The road-transportation sector, being a major energy consumer and therein greenhouse gas (GHG) emissions source, is a focus.

To date, the primary approach for decreasing emissions has been through regulations on vehicle and fuel suppliers to improve vehicle energy efficiency and fuel carbon intensity, respectively. These regulations have mostly been developed for light-duty vehicle markets and technologies. However, the success of these policies in the light- duty vehicle market is prompting replication for the medium- and heavy-duty vehicle (MHDV) market.

While some have embraced this approach, the MHDV market policies, targets, and expectations cannot be the same as those for light-duty vehicles because the MHDV market is vastly more complex. Vehicle types and sizes are diverse, customization is frequent, and operating conditions present myriad and nuanced challenges for various decarbonization solutions. Legislators, regulators, and corporations need to understand this complexity as they set targets for policy and design incentive mechanisms for market suppliers.

To inform the broad community of stakeholders (vehicle suppliers, fuel providers, owners and operators, corporations, policymakers, and regulators) on the nuances of MHDV decarbonization, the Fuels Institute collaborated with Guidehouse Insights to highlight the complexity of the market. To do so, Guidehouse Insights identified the top five and bottom five applications for MHDV decarbonization as a function of technology readiness and quantified each market’s impact on the overall U.S. MHDV market and contribution to U.S. MHDV GHG emissions.

The results of the analysis indicate that the top five MHDV applications affect nearly 50% of the market and are responsible for 42% of emissions. Meanwhile the bottom five affect 20% of the market but are responsible for 45% of emissions. While applications within the top and bottom five have attributes conducive to or challenging for decarbonization, each has nuance. This variance makes scaling of any one decarbonization solution a challenge, reinforcing the need for policies to be open to, and enabling of, a variety of solutions.

STATE OF MAINE SPORTSMAN SHOW

It was a great start to the month of April for MEMA/MTEC. A few MEMA staff members spent the first three days of the month in Augusta at the State of Maine Sportsman Show. MTEC was among the many exhibitors from around the state putting their products in front of the hundreds in attendance throughout the weekend.

People of all ages stopped by the MTEC table to learn about our MTEC programs, talk about the state of the industry, and help themselves to some MTEC swag and candy. Through various conversations, the staff met some amazing people in and outside of our industry that support MTEC and what it sets out to accomplish.

Attending events like the State of Maine Sportsman Show are a great way to meet and interact with MEMA/MTEC staff and get information about MTEC programs and the HVAC industry as a whole.

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