MEMA MAG Summer 2021

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2021 COMMITTEES & TRUSTS

Advertising Committee

This committee is responsible for advising and assisting MEMA staff with advertising and communication campaigns and management of federally provided NORA advertising funding.

Convenience Retailing & Transportation

This Committee is responsible for setting association policy on motor fuel and convenience store issues.

Governance Committee

Responsible for creating a model organization within the boundaries of its founding and operating documents (By-laws and policies) for the purposes outlined in these documents and for the full potential of board members.

Health Trust

This trust is responsible for the planning and management of the Self-Insured MEMA group health, life, dental & vision insurance programs.

Convention Committee

This committee assists the MEMA and EMANH staff in the planning and execution of the Annual Northern New England Energy Conference.

Membership Committee

This committee is responsible for establishing policies that will grow the organization by attracting new members and retaining existing members through clear focus on ensuring and delivering superior value to members.

Education Committee

This committee is responsible for establishing policies, providing advice, and aiding staff that guides planning and oversight of technical training and management level seminars for MTEC and the association.

Heating Fuels Committee

This Committee is responsible for setting association policy on heating fuels issues including: Propane, Heating Oil, and Liquid Biofuels.

Workers’ Comp Trusts

This trust is responsible for the planning and management of the Self-Insured Workers Compensation Trust.

Golf Committee

This committee is responsible for the planning, fundraising, and execution of the Association’s annual golf events.

Every member of MEMA is eligible to sit on one or more of the Association’s Committees. All of MEMA’s operations are based on the “one company, one vote” principle. Each & every member company counts as each has one single vote. The largest member has one vote – the smallest member has one vote. We believe every company’s opinion is important and is weighed equally. Whether your opinion is brought to the table and voiced, however, is up to YOU!

Equipment Rebates 4.0: Supporting Dealers and Keeping our Customers

Few programs have impacted individual MEMA members as much as the NORA-funded heating equipment rebate program. Originally developed by MEMA leadership in partnership with Warm Thoughts Communications, Maine’s equipment rebate program aimed to accomplish three things:

1. Keep more customers heating with oil

2. Increase the energy efficiency of oil-heated homes in the state

3. Support individual dealers by increasing their likelihood of closing install work, keeping their employees busy and maintaining their profitability

After an 18-month hiatus, MEMA is very excited to open the Maine Heating Equipment Rebate Program for the 4th year. And most encouraging is that dealers have picked up right where they left off. More than 30 Maine heating oil companies have secured more than 150 rebates for their customers since the program reopened. This puts MEMA’s total rebate engagement above the 1,000 mark with nearly 50 companies

taking advantage since the program’s inception in 2017.

A New Twist in the Process

Submitting for rebates is as easy as it’s always been, but the process has changed slightly. Dealers who are looking to secure rebates for their customer can apply at www.maineenergymarketers.com/rebate-program. From there, it’s just a simple 4-step process to submit for your rebate.

Funding is Limited, So Take Advantage While You Can

Rebate funding will only be available until funds run out, so we encourage you to take advantage of available funding now. While a $200 or $300 rebate may only represent 5-10% of a tank or system installation cost, it could be the difference between closing a deal and losing a sale to an HVAC contractor or another competitor. Don’t wait to utilize rebate funding, or it may be too late!

To learn more about how MEMA’s 2021 Equipment Rebate Program works, reach out to Hannah Estes at hestes@maineenergymarketers.com.

Our Team

Executive Board

Michael McCormack ~ Downeast Energy

Claudette Townsend ~ Dead River Company

Marc LaCasse ~ Augusta Fuel Company

Charlie Burnham ~ Charlie Burnham Energy

Matt Poole ~ Colby & Gale

Roger Arsenault ~ Community Energy

Michael Estes ~ Estes Oil & Propane

Max Marston ~ Fabian Oil

Jonathan Mapes ~ H.A. Mapes Inc.

Rob Cort ~ Maine Energy Inc.

Charlie Page ~ Maritime Energy

Mark Gagnon ~ P. Gagnon & Sons Inc.

OUR BOARD OF DIRECTORS

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.

Robert Shibley ~ Bob’s Cash Fuel LLC

Peter Buotte ~ Community Energy Company

Carter Vaillancourt ~ Daigle Oil Company

Deanna Sherman ~ Dead River

Greg Krise ~ Eastern Propane & Oil, Inc.

Jim Pike ~ Energy Kinetics

Judy Delaney ~ Global Petroleum Corp

Tom Schwarm ~ Gould Technologies

William Beck ~ Gulf Oil, LP

Saunya Urban ~ H.A. Mapes Inc. - Alt

Tim Heutz ~ Heutz Commercial Enterprise

Carrie Tomforde ~ Irving Oil

Steve Flewelling ~ Irving Oil - Alt

Jim Carroll ~ J.P. Carroll Fuel Co.

Steve Ness ~ Ness Oil Company

Robert Tracy ~ R.H. Foster Energy, LLC

Jeff Murdy ~ Renewable Energy Group

Elwin Scott ~ Simard & Sons, Inc.

Marc Dorsey ~ Sprague Energy

Michael Tammaro ~ V.L. Tammaro Oil Co.

Charlie Burnham Charlie Burnham Energy Vice Chair
Mike McCormack Downeast Energy Chairman of the Board
Claudette Townsend Dead River Company Treasurer
Hannah Estes Business Manager Sarah Nadeau Administrative Assistant Christa Fairbanks Insurance Administrator
Charlie Summers President & CEO
Bryan Champagne MTEC Senior Instructor
Dan Weber MTEC Instructor
Megan Diver Vice President
Don Hobbs MTEC Instructor

Dear MEMA Members,

With the heating season behind us and the warmth of summer here, I sincerely hope that you take a moment to enjoy all that Maine has to offer this time of year and to reflect on where we’ve been and how we have fared over the past 18 months. From the beginning of the COVID-19 pandemic to today, MEMA members have toughed it out ensuring – as you always have – that Mainers have the essential products and service necessary to stay safe and warm. Of course this dedication to your neighbors and communities is nothing new, it is the cornerstone of who we are and why the men and women who make up the Maine Energy Marketers Association are, in fact, the backbone of our state.

As the restrictions associated with the pandemic have been eased, I have begun traveling around the state to meet with members directly to hear their ideas and concerns. From Fort Kent to Scarborough and beyond it has been great to meet, listen, and learn.

These trips have afforded me the opportunity to offer updates on what the team at MEMA/MTEC is working on. Efforts like those of Christa Fairbanks, our MEMA Health Insurance and Workers’ Comp Trusts Administrator, who is tirelessly working to update and improve these important benefit options for MEMA members; or, those of Hannah Estes, Sarah Nadeau, Bryan Champagne, Dan Weber, and Don Hobbs –each of whom were critical to the success of our association and school over the past 18 months. And, of course, the hard work of our Vice President, Megan Diver, whose full-time focus on our industry’s interests in Augusta is so critically important. From her testimony before key leg islative committees to her weekly Legislative Updates, MEMA members are better represented and informed than ever.

I’ve also recently met with State Legislators and members of our Congressional Delegation to underscore the importance of not creating a single point of failure by enacting policies that put all of our energy eggs in one basket. I’ve let them know that energy security means that Mainers must continue to have a broad array of options when deciding what type of energy is best for them when it comes to heating their homes.

Finally, I have heard it said that, “challenges don’t build character, they reveal it.” Through your hard work and perseverance during this particularly difficult time, our industry is stronger and better positioned to address the challenges ahead and move confidently into the future. Your entire MEMA/MTEC team is so very proud to represent you and work on your behalf.

Looking forward to seeing you in the field!

P.S. – If you haven’t already, please, please don’t forget to register soon for the Northern New England Energy Conference, taking place at the Beautiful Omni Mount Washington Resort August 30th- September 1st. FMI go to: https://nneenergyconference.com. Also, save Oct 7 on your calendars for the MEMA/MTEC Golf Tournament at the amazing

What’s Happening with The 130th Maine Legislature

After being away since March 2020, legislators returned to the Capitol on Wednesday, June 2, 2021 to finish the work of the First Regular Session of the 130th Maine Legislature. The State House reopened to the public Monday, May 24, 2021 for first time. The Legislative Council, the administrative body for the Legislative Branch of State government that consists of the ten elected members of legislative leadership: the President of the Senate, the Speaker of the House, the Republican and Democratic Floor Leaders for both the Senate and House of Representatives and their Assistant Floor Leaders voted to reopen the State House to the public on the condition that all visitors wear masks. A requirement that caused some disruption between members of the Legislature on their first day back.

During the week of June 7, 2021 for the first time this session, the Maine Legislature met every day of the week with only two weeks remaining to handle hundreds of bills, including a supplemental budget and allocation of nearly $1 billion dollars from the Federal Recovery Act. Governor Mills submitted her proposal on how she would like to spend the Federal Funds at the end of the week prior to the 7th. There were hundreds of bills remaining that needed attention and action during the Legislature’s first full week at the Capitol.

Legislators have met in person only a handful of times and all of those legislative sessions were held at the Augusta Civic Center, as a temporary State House because it allowed the space necessary for lawmakers to practice social distancing meant to prevent the spread of COVID-19.

The Legislature, which has been conducting its committee work remotely via video conferencing, still had bills to process at the beginning of June before statutory adjournment on June 16, 2021. All bills were to be voted out of committee by May 21, 2021, however there wasn’t one committee who made this deadline.

The building had been closed to the public since March 2020 to comply with physical distancing and other safety restrictions imposed because of the COVID-19 pandemic. This legislative session was unlike any others. Conversations that traditionally occur in the halls of the Capitol, relationship building and interactions that we are accustomed to all lead to good, balanced public policy, but this session have been nonexistent. This complicated the legislative process during the past six months, removing the daily conversations, the in-person testimony, sufficient public notice or public hearings and work sessions, all of which are critical to the process. So needless to say, MEMA’s Vice President, Megan Diver was there nearly every day and excited to be back to normalcy as we work to secure favorable public policy outcomes. It is an honor for us to work on behalf of our members to mitigate increases to the cost of doing business as well as mitigate the regulations that may be burdensome to conducting business.

Just the Facts, MEMA

Reinvigorating MEMA’s Maine Energy Facts Campaign for the Fight Ahead

More than 70% of Maine’s homeowners continue to prefer to heat their homes with ultra-low sulfur heating oil or propane. But you wouldn’t know it if you listened to legislators and regulators. The “Electrify Everything” movement is the tidal wave about to crash on the shores of Maine and the rest of the Northeast. It will take a herculean effort across several fronts – legislative, regulatory, dealer education, EL research and development, customer communications – to stop “Electrify Everything” and protect our industry.

In the realm of customer communications and outreach, MEMA is upgrading its tools in preparation for the fight ahead. The Maine Energy Facts campaign was originally launched in 2015 to provide Mainers with common-sense information and resources to help them make the best energy decisions for their home. In 2021, MEMA has partnered with the experts at Warm Thoughts Communications to reinvigorate Maine Energy Facts and educate homeowners about the both the pitfalls of electrification and the advances in our fuel.

“The ‘Electrify Everything’ movement will require an all-hands-on-deck approach,” says Charlie Summers, MEMA president. “We already had a solid foundation with the Maine Energy Facts website. But we needed to get the website and consumer outreach efforts in tip-top shape so that when we have the opportunity to influence our customers, we’re doing so with the most impactful information possible. The revitalized website will do just that.”

The upgraded website will focus on critical content like:

• The truth about electric heat pumps in Maine

• Ethyl levulinate (EL) and the pathway to a locally sourced low-carbon solution

• The role that heating oil and propane are playing in Maine’s economy

• Tips, tools and resources to help homeowners make the best decisions for their home heating

The new Maine Energy Facts will provide a powerful springboard for future customer outreach campaigns. Updates are taking place as we speak and we anticipate that the upgraded site, which can be found at www.MaineEnergyFacts.com, will be live or very close to going live by the time the MEMA Magazine is published.

If you have questions or would like to share your input for featured content on Maine Energy Facts, please reach out to MEMA President Charlie Summers at csummers@maineenergymarketers.com or Warm Thoughts Communications Director of Operations Rich Carrione at rcarrione@warmthoughts.com.

Bipartisan Legislation to Extend Biodiesel Tax Credit Introduced

Representative Cindy Axne (IA-03) and Representative Mike Kelly (PA-16) introduced bipartisan legislation in the U.S. House of Representatives to extend the biodiesel tax credit for three years. Companion legislation has been introduced in the U.S. Senate by Senator Chuck Grassley (R-IA) and Maria Cantwell (D-WA).

The tax credit, which is set to expire at the end of 2022 after being revived in December 2019, supports a homegrown clean energy sector that employs thousands of Americans while lowering emissions.

MEMA is appreciative of Maine’s Congressional delegation for their support for renewable fuel use and development in Maine, including ethyl levulinate. This federal tax incentive promotes commercial adoption of these fuels and helps reduce greenhouse gas emissions throughout the heating oil sector. MEMA has reached out to Maine’s Congressional delegation to indicate the cruciality of extending the biodiesel tax credit to further encourage economic growth, enhance energy security, encourages innovation that is better for our environment and provides certainty to the growing biofuels industry.

The biodiesel industry

has grown rapidly with the help of the biodiesel tax credit in the past. From 2013 to 2016, when the tax credit was in place for the entire three-year period, U.S. production grew by 400 million gallons. And in 2020, despite COVID-19, production still grew more than 150 million gallons with the help of the newly revived credit.

From 2015 to 2018, it is estimated that use of biodiesel and other renewable diesels helped reduce U.S. carbon emissions by 9.3 million tons. Biodiesel production also provides secondary market uses for used cooking oils and recycled animal fats, which would otherwise be added to landfills.

The U.S. biodiesel and renewable diesel industry supports 65,000 U.S. jobs and more than $17 billion in economic activity each year. Every 100 million gallons of production supports 3,200 jobs and $780 million in economic opportunity. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans.

Convenience Stores Essential and Resilient through 2020

Convenience retailers proved to be both essential and resilient during the 2020 COVID-19 pandemic. The pandemic affected operational and financial aspects of the convenience and fuel retailing industry.

While the daily tasks, safety mandates and protocols were being strictly followed, the industry inside sales increased 1.5% in 2020 as customers frequented their local convenience stores to fulfill daily shopping needs. While total transactions declined with less people, the amount those who visited the stores purchased increased. The average basket size was $7.34 in 2020 vs. $6.20 in 2019.

The in-store increase also came despite a 1.6% decline in the number of convenience stores at the start of 2021. Deep declines in transactions counts, particularly in April 2020, were mitigated with an upswing throughout the remainder of the year, particularly the fourth quarter when transaction counts approached those of previous years.

Food-service

The category of food-service took a hit in 2020 due to pandemic restrictions and protocol adjustments. The food-service category includes prepared food, hot dispensed beverages, cold dispensed beverages and frozen dispensed beverages.

Prepared food sales declined in 2020, and as expected, the pandemic had an impact on self-serve beverages. Hot and dispensed sales decreased, reflecting the decreased foot traffic during the stay-at-home orders and work-from-home schedules. Commissary, is the only food-service catego-

ry that generated sale growth during the second quarter of 2020. Commissary is largely prepackaged foods, which conveyed a sense of safety and confidence among c-store shoppers concerned about COVID-19 during the early days of the pandemic.

In-Store Merchandise

The pandemic highlighted how gaps in the global supply chain added a sense of urgency to keep up with high-demand products in non-traditional c-store categories. Customers relied on convenience stores for daily essentials like grocery items, paper products and cleaning supplies

Other in-store growth came from alcohol and tobacco product sales, which saw an increase in April 2020 that continued throughout the year. Beer sales increased because of on-premise restrictions at bars and restaurants, limited personal travel and demand for larger pack sizes. More consumers relied on convenience stores for flavored-malt beverages (FMBs), notably hard seltzers. FMBs are now the second-largest beer subcategory behind premium beer, which continues to drive nearly one-third of category sales.

Tobacco product sales increased as consumers felt the need to “stock-up.”

Fuel

Convenience stores sell approximately 80% of the fuel purchased in the United States and saw steep demand declines in 2020. Demand destruction was so severe that fuel consumption contracted 45% in the second quarter until slowly rising during the summer.

Total industry fuel sales in 2020 declined 26.1%. This decline was from both a 16.2% decrease in fuel prices (from $2.59 in 2019 to $2.17 in 2020) and a decrease in volumes.

Prior to the pandemic, there were already signals that fuel demand would decline in 2020. Even with a lower price per gallon at the pump in 2019, consumers were making fewer stops to refuel, which translated to less trips per week to a convenience store.

Combining fuel sales with in-store total sales declined because of lower fuel sales, overall industry sales are still more than double of what they were at the beginning of the century in year 2000.

Credit card swipe fees remain one of the highest operating costs for convenience store retailers. Consumer preferences for more touch-free transactions and the coin circulation challenge in 2020 led to record debit and credit card usage at convenience stores.

We are

A Lone Voice No More: Project Carbon Freedom

With the stroke of a pen, President Joe Biden eliminated more than 10,000 American energy jobs on day one of his presidency by killing construction of the Keystone XL Pipeline through executive order. Now, he faces pressure to shut down the Dakota Access Pipeline to move domestic crude from North Dakota to Illinois. And next, they are coming for you. By “they” I mean decision makers at all levels of government, from the highest federal officials to local paper pushers and everything in between. And by “you,” I mean fuel oil dealers who refuse to embrace Bioheat® fuel. If you don’t believe me, or if you are unwilling to transition your heating oil business to Bioheat® fuel, then you might as well hang it up now, move to China and, like “Climate Czar” John Kerry says, get a job making solar panels. Or maybe manufacturing air-sourced heat pumps.

But you are needed, not only by your customers who rely on you for that comforting warmth only liquid heating fuels can provide. While customers are the end of the supply chain for your fuel, this is only the

beginning of the story. Your employees depend on your business—on the jobs you provide—to feed their families. You are needed by local communities where your and your employees’ paychecks are spent. By incorporating Bioheat® fuel, you help feed American farmers who help feed the world and whose soybean oil provides more than half of the material inputs for sustainable biodiesel. In doing so, you support livestock producers whose steaks, pork chops and chicken wings you love so much—they depend on cheap soybean meal in order to keep costs down and food prices in check. The feedstock, biodiesel and Bioheat® fuel is transported by drivers from factories to local terminals. You are needed by the manufacturers in whose equipment your fuel is used, who have spent time and money testing and approving Bioheat® fuel and Bioheat Plus® for use in their burners, pumps and more.

Closing up shop is not an option. We all need you. And as constituents to your federal, state and local leaders, we all need you to speak up and tell them why you—providers of renewable liquid heating fuels like Bio-

heat®—deserve a seat at the energy table of the future, where to many of us it appears there are fewer and fewer chairs than ever before.

There was a time not so long ago when people wisely favored an “all-ofthe-above” strategy to tackle our energy and environmental issues. The “silver bullet” was a fool’s dream best kept to werewolf tales in penny dreadfuls of a bygone era. A “shotgun approach” was the preferred method, as each of the many balls of shot represented a technology, a pathway meant not solve the problem on its own, but to contribute one of many solutions that, together, take down the target.

Objectives

Some suggest biofuels advocates should partner with the electrification movement and work toward a common goal of reducing carbon emissions. Perhaps this is the right approach. But it is not in our nature to let a singularly focused political class legislate us out of existence without considering our voluntary efforts and ability to meet every single one of their objectives. Meeting these objectives are their justifications for pushing electrification. Climate change—Every one of our state trade associations voluntarily committed us, fuel oil dealers, to achieving net-zero carbon emissions by 2050 via the Providence Resolution. By 2023, B20 blends of Bioheat Plus® will achieve 15 percent carbon emission reductions. By 2030, B50 blends of Bioheat Super Plus® will cut carbon emissions by 40 percent. And by 2050, pure B100 Bioheat Super Plus®, in addition to other measures we take, will get us to the goal line of net-zero carbon.

Cost and impact on low-income populations—Studies show the cost of home conversions to air-sourced heat pumps can range from $20,000 to $60,000, depending on the extent of work such as whether this includes water heaters and removal of existing oilheat systems. While middleand upper-class homeowners may be able to absorb this hefty investment, what about low-income homeowners and renters? Will landlords be willing to write these big checks for their tenants? In addition to installation costs, what about monthly electricity bills? The wholesale cost of electricity is typically highest in winter. And consider this. If middle- and upper-class homeowners make the switch to heat pumps, this will put greater demand on the electric grid and force prices up for everyone, including low-income communities. So, while the well-to-do and rich enjoy the benefits of “cleaner air,” the poor, who can’t afford to convert, are paying for it in higher electricity bills. This only exacerbates systemic inequity. The cost of Bioheat® fuel, however, is comparable to low-priced petroleum fuel and any slight cost increases are spread out over time among all income users equally. And the use of Bioheat® fuel by the rich doesn’t mean low-income populations have to pay for it, as with electrification.

Environmental justice—History has unfortunately demonstrated that communities of color and low-income populations have both been situated in areas of lower air and water quality, including shipping docks, fuel terminals, and electric transmission stations and substations. Increased build out of the electrical grid will only increase the number of transmission stations. Does anyone believe these will be in high-income communities? History tells us otherwise. Furthermore, the transition to biofuels in marine engines and fuel terminals, including Bioheat® fuel storage for home heating, will vastly improve the air and water quality of these communities, reducing disease and death rates and improving the quality of life. Better warmth—Air-sourced heat pumps may perform as needed in mild winter climates, but it gets cold in the Northeast during the winter, and it is very likely that backup systems will be needed. So, one might ask, what’s the point? I have to invest all this money, perpetuate systemic inequity and environmental injustice only to use the reliable Bioheat® fuel system I was using all along when it’s cold? When else would I use my heat, in the middle of summer? This all, then, appears to be an exercise in futility.

Bioheat® fuel is truly renewable, electricity is not—The ambition of the electrification movement is that the grid will be renewable at some

nebulous point in the future. That is the only climate-change argument that makes this push even worth considering. Otherwise, we are simply shifting carbon emissions from tailpipes and chimneys to power plant smokestacks. According to the U.S. Energy Information Administration, only 17 percent of U.S. electricity in 2019 was derived from renewables. Globally, coal-fired power plants alone provided nearly 40 percent of all electricity in 2018. Not only will renewable power need to continue to make up a larger share of the existing power demand, but it will also have to satisfy more traditional increases in demand that organically occur over time as both populations and standards of living increase. Introduce these massive influxes of electricity demand from projected policies favoring electric vehicles and we enter problematic territory. The EIA projects that world energy consumption will grow by nearly 50 percent between 2018-’50. Growth in end-use consumption results in electricity generation increasing 79 percent between 2018-’50. Essentially, what is 17 percent renewable energy generation in the U.S. in 2019 would be like 9.5 percent in 2050.

Advocacy

We know it’s unrealistic to transition an entire economy to electrification in a matter of a few decades. But they’re targeting the low-hanging fruit. And by low-hanging, I mean easy and weak—the path of least resistance. If we don’t stand up and make ourselves heard, that will be us.

While upstream petroleum companies have powerful lobbyists in the halls of Congress and state legislatures across the country, who’s arguing on your behalf? By the looks of future-focused regulatory policy, no one. Sure, we have a multitude of trade associations doing great work and representing us as best they can, but we need to tackle this “existential threat,” to use the parlance of these climate-change times, with a unified voice. While we may not be able or want to do much to slow the transition to electrification in light-duty vehicles, we can—and we must—do something about electrification of home heating.

Enter Project Carbon Freedom. This is a new effort to provide you with the education, advocacy and support you need to help get our voices heard by decision makers who hold your future in their hands. We frame up the situation, we offer a solution, and we detail the strategy to get this done.

We know you are busy running day-to-day operations and keeping your customers happy and warm, so Project Carbon Freedom makes it easy for you to effectively advocate our well-reasoned positions to your legislators. These include the low-cost benefits our industry will continue to provide to fight climate change, improve air and water quality, create, and retain jobs, support our local communities and so much more.

Project Carbon Freedom also provides letter templates for you to tailor the message quickly and easily to your needs—whether you are a fuel dealer, equipment manufacturer or employee—and submit them to policymakers and regulators to ensure we, and the many benefits we offer, are not left out in the cold. Visit projectcarbonfreedom.com for more information.

Not long ago, I wrote about being a lone voice in this fight, but with your help—and with Project Carbon Freedom’s assistance offered to you—I will be a lone voice no more.

LEADING PROPANE SOLUTIONS

At CHS, our priority is supplying your propane needs today and tomorrow. With extensive assets and terminals throughout the supply chain, we have the network to meet your demands. Plus, our industry-leading online supply tools and risk management programs are more valuable than ever. That’s how we build long-term relationships to meet your propane needs.

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

BIOHEAT SERVICE PRODUCTS

As Bioheat is becoming more common in the heating fuel market, oil equipment and service part providers are adjusting to accommodate this industry change. Whether you think Biofuel is good or bad, it is growing in popularity and market share. Market forces outside of most of our control are driving this change and we, as oil heat technicians, need to be prepared to handle it. Knowing what products are available and what to look for is more important than ever. Ask the questions and find the right products for the application.

Biofuel is available in a variety of blends. Blends ranging from 2% to 5% are referred to as Bioheat. Blends ranging from 5% to 20% are referred to as Bioheat Plus. Blends beyond 20% are referred to as Bioheat Super Plus. The B# represents the percentage blend of Biofuel in a blend with the Ultra-Low-Sulfur Heating Oil (ULSHO). For example, a B10 blend would contain 10% Biofuel and 90% ULSHO. BTU properties will decline slightly as a biofuel is added to the blend. 1 gallon of B20 blend carries about 126,700 btu’s.

Many heating oil equipment manufacturers are reacting to this change and producing products that are compatible with Biofuels. Fortunately, equipment manufactured to operate safely with Biofuels will also operate safely with traditional heating oil products.

Oil burner manufacturers and now producing burners that are approved for residential use with up to a B20 blend. New oil-fired boilers and furnaces will be coming through distribution with these new OEM burners. No worries if you are not installing this equipment into a Biofuel application, they will still work as expected with a traditional heating oil product. If you are installing new equipment into an application where Biofuel may be used, make sure to verify that the equipment you are ordering will come through with a Biofuel approved burner. Older stock may have been produced before the changes went into effect.

Oil burner Biofuel retrofit kits are also available to switch. The need for this kit will become clear when a customer begins using a Biofuel product and leaks develop on gaskets and seals within the system.

Oil filter manufacturers are now offering cartridges and service kits with Biofuel gaskets ad O-rings. These gaskets and O-rings, along with many Biofuel products, are produced in green. Biofuel Gaskets and O-rings can be used for traditional heating oil applications as well.

Fuel pumps are available out of the box for Biofuel. You may need to specify the need for a Biofuel pump when ordering. Retrofit kits are also available to field convert existing fuel pumps.

When using a Biofuel product, NORA is recommending a minimum of a 10-micron spin-on filter and often double filtration. Biofuel will suspend contaminants in older oil tanks and run them through the system. When making the switch, Biofuel customers should plan on regular filter checks to clear out existing contaminants. Keeping these contaminants from reaching the burner will help to protect against failures and nuisance service calls.

Biofuel is turning up in many residential applications. Many fuel delivery companies are offering Bioheat products. It does appear Bioheat is here to stay. Be aware of what is in the tank and take the proper precautions to use the proper Biofuel products. A few questions and a little research on the front end can save a lot of headaches on the back end. Keeping fuel customers happy and informed keeps them using fuel products.

NOW STOCKING

We are now proudly stocking RegO® regulators at all our locations across Maine.

Get the industry’s best regulators, 100% “Made in America,” at The Granite Group branch near you! AUBURN, ME

ME

INSURANCE CORNER

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 at MEMA and our Health Broker at the Allumbaugh Agency are always available to assist you with your questions and insurance needs.

In business there are three types of change to be aware of: these are Developmental Change; Transitional Change and Transformational Change. Transitional Change happens when you recognize the need to implement a completely new course of action.

It has been a year of global change and there have been many changes at Maine Energy Marketers Association. Some changes include removal of paper, encouragement to pay online, streamlining fund exchanges, compliance with privacy and security (email exchange) and new partners.

As challenging as change can be the result has been progress, efficiency, improved advocacy and cost containment.

Let us review some recent history to remind ourselves of our continued successes.

Since we transitioned from fully insured to a self-insured health (medical/pharmacy) plan 1/1/17, rates are 6% higher than they were at the start (over a period of more than 4 ½ years).

Four renewals with a result of two rate decreases, one no rate change and one rate increase. During this time employer members have paid in total (considering decrease years and the premium holiday), an average monthly premium slightly lower than the monthly rates as of 1/1/17.

The only benefit changes over that time frame have been enhancements (such as combining in and out-of-network to a single out of pocket limit), which is difficult to accomplish without increasing rates.

As a point of comparison, small group health plan rates in Maine have increased over 10% year over year on average with increases in deductibles and other benefit reductions every year.

Thank you for that look back…

We provide richer benefits than available anywhere else in the market with rates that have been incredibly stable.

The benefits package (medical, pharmacy, dental, vision, life) offered in the health insurance trust provides cost conscious valuable programs managed efficiently with strong partners with a committed membership base for the long haul. The result is an employee retention and recruitment resource as well as continued membership growth.

Remember this quote from the last MAG issue, by Dr. Seuss; ‘Sometimes you will never know the value of a moment until it becomes a memory.” Today is that moment. These are tough times, and the moment has come to trust change, challenge the norm and support your employees in new and relevant ways.

As we near a final renewal decision and open enrollment I look forward to delivering our refreshed process. Please feel free to reach me at, cfairbanks@maineenergymarketers.com, if interested in a discussion regarding our valuable programs and becoming part of our successful long-term commitment.

well,

MEMA members enjoy a multitude of benefit options at the lowest prices and the Allumbaugh Agency is your exclusive source for MEMA employee insurance plans. If your employee benefits are not through MEMA, you are spending too much.

Christa Fairbanks

NEWMEMBER PROFILE

Maine Energy Systems Looks to Change the Conversation About Biomass Fuels

As the chilly Northeast warms to alternative energy sources, a cutting-edge firm in Bethel is working to pair consumer demands with renewable solutions.

Maine Energy Systems builds and distributes fully automated and EPA-certified wood pellet boilers and furnaces for residential, commercial and industrial use throughout North America. Acquired from OkoFEN, a leader in pellet boiler design, Maine Energy Systems’ helps homes and businesses from Maine to Alaska transition to the use of renewable wood pellets. “This fuel transition not only lowers costs for users, it also retains and creates jobs in the region while significantly reducing the region’s carbon footprint,” the company notes.

The idea for Maine Energy Systems stemmed from informal seminars organized by ski mogul Les Otten in 2007 to focus on improving energy production and usage in the region. The consensus of the group was a strategy to convert central home heating systems in the Northeast from oil to wood pellet fuel. Additionally, because the pellets come from local forests, the new industry employs local workers and retains the economic benefits within the region.

A year after Otten’s strategy sessions, during a period of extraordinarily high oil prices, then-Gov. John E. Baldacci formed the Governor’s Wood to Energy Task Force to study biomass, particularly wood pellets, as a potential fuel source in Maine. The group reported that the state’s under-used forests were ideal to produce millions more tons of biomass products than it had been, definitively opening the door to making wood pellets a primary heat source for many Maine residents.

One of the leaders of the policy shift, Dr. William “Bill” Strauss, who authored studies focusing on the negative economic impacts of relying on

foreign oil, then partnered with Otten and Dr. Harry “Dutch” Dresser to form Maine Energy Systems to implement the new approach to heating.

In a state where 70 percent of homes are heated by gas or oil, wood pellets can offer significant environmental benefits.

For example, the wood pellets used in residential heating are often manufactured from sawdust and shavings or even from whole wood harvested solely to produce pellets. Additionally, boilers or furnaces that run on sustainably harvested wood pellets provide a low-net-CO2 solution, providing an environmentally friendly heating option.

To encourage environmental stewardship, the company notes, both the state and federal governments offer incentives to use biomass heating systems. Many states offer rebates to help offset the cost installing a wood pellet boiler or furnace, and the Biomass Thermal Utilization Act of 2020 allows for a 26 percent federal tax credit on the purchase and installation of the systems. Also, according to Maine Energy Systems, some New England states offer the ability to offset each ton of pellets purchased by earning and selling renewable energy credits.

In addition to reducing a home’s carbon footprint by up to 86 percent, Maine Energy Systems offers its customers the ease and reliability of delivery directly to the source – much as with an oil truck pulling up to the side of a home. “The customer never has to see or touch the pellets from the point of delivery to combustion,” the company notes.

Maine Energy Systems also has been active in supporting the transition to renewable heating by working with regulatory bodies, academics and political groups to further the study and implementation of the industry. Dr. Dresser, for example, has been key in helping to achieve parity in heating regulations between wood pellet heating appliances and conventional systems. The company also sponsored a project headed by a student at Worcester Polytechnic Institute to design an automated ash removal system.

As an industry leader, education at all levels has been a hallmark of Maine Energy Systems’ brand. Whether it’s working with the Maine Department of Environmental Protection and other entities on updating regulations, informing the public, or training dealers how to install and service wood pellet systems, Maine Energy continues to take charge in changing how America heats its homes and businesses. “We expect to play a big part in the northeast’s transition to renewable heating,” they noted.

Spotlight on Maine Energy Systems’ Hannah Campbell:

Air Force veteran, community volunteer, ski coach, sales and marketing powerhouse, and logistics expert.

The team behind Maine Energy Systems includes some of the region’s foremost policy experts on energy consumption and economics. So, it makes sense that the voice of the company not only has a long history of public service, but also takes a deep and thoughtful approach to her work.

Our chat with Hannah Campbell: What’s your background?

I grew up in northern New Hampshire, close to the Canadian border, where most of my family still resides. I was fortunate enough to grow up in this area when our forestry and logging industries were very strong. Since then, we’ve seen a massive decline in the industry and the economic fallout from paper mills closing, a lack of demand for paper products, and a decrease in use of low-grade wood.

We understand you’re a graduate of the US Air Force Academy?

I graduated from US Air Force Academy (2012) and ultimately decided to return to the area after serving overseas for several years. While northern New Hampshire is remote and I could likely make a more lucrative career elsewhere, I thought it was important to give back to the place that gave me my roots and a leg up on life. Two lessons that this place and its people have taught me are to work hard and be honest - the rest falls into place.

What did you do in the Air Force?

I was able to use these lessons to have a career after US Air Force Academy as a Logistics Readiness Officer in the Air Force. A lot of what I did involved coordinating, planning for everything, and managing people to most effectively achieve the mission. Failure to plan as we all know is not an excuse for a poor outcome.

What lessons from your service do you continue to use today?

Ironically, my Air Force experience has lent itself well to my current activities - being a member of the Development Team seeking to reopen The Balsams Resort in northern New Hampshire, working for Maine Energy Systems as a marketing and communications representative, logistics consulting for FutureMetrics (a well-respected consultancy in the biomass field), and in my free time donating my skills as President of our local region’s Chamber of Commerce and a director for our regional Coos Economic Development Corporation.

How did you end up in this field, and with Maine Energy Systems?

When I returned to northern New Hampshire, I learned of the efforts to redevelop The Balsams (once a major area employer much like logging and paper mills). I was fortunate enough to be able to join the team and learn the ins and outs of development and through this came to know Les Otten, Owner & Developer of The Balsams and also Founder & Owner of Maine Energy Systems. I’ve been working for Les on both fronts for several years now. We work to further efforts to economically develop northern New Hampshire and also push for substantive changes to support decarbonization and use of wood as a carbon-neutral fuel source.

What are your professional/ industry priorities? e.g., energy security, environmental stewardship?

My professional priorities are to improve the economic landscape of where I reside and give back to the area here. In conjunction with that, I would like to see us start to rely on a more broad-based, environmentally friendly way to heat and energize our homes - ideally improving the local and regional economy by using fuel that’s right here in our backyard. We’ve been heating with wood for ages, just not with high efficiency and extremely low particulate emissions. What makes Maine Energy Systems stand out to me is that it’s high-end technology, it’s the same as using fossil fuels to the consumer, and it puts dollars and jobs back here.

Ethyl Levulinate Biofuel – Your Questions Answered

In the Spring Issue of Maine Energy Marketers Association magazine, Mike Estes from Estes Oil & Propane mentioned the bio-fuel ethyl levulinate as a new biofuel solution for Maine’s heating oil providers. We reached out to Mike Cassata, Chief Development Officer for Biofine Developments Northeast, to learn more.

What is ethyl levulinate?

Ethyl levulinate (EL) is a bio-based renewable liquid fuel alternative with the potential to significantly reduce greenhouse gases at a comparable price per gallon to traditional home heating fuels. The technology to produce EL was developed by Dr. Steven Fitzpatrick, CEO of Biofine Developments Northeast (BDNE). Dr. Fitzpatrick was awarded the Presidential Green Chemistry Award by the EPA for the development of the process.

How is ethyl levulinate made?

Unlike other biofuel products, EL made via the patented Biofine process can be produced from a variety of different feedstocks. These include forest residues such as wood chips, sawmill waste, waste paper and recycled cardboard, and cellulosic crops such as bagasse and corn straw.

What is impact of ethyl levulinate on the environment?

To measure the environmental impact of EL made via the Biofine process for use as a heating oil, Biofine partnered with EarthShift Global, a Maine based firm that specializes in life cycle assessment, to conduct a screening level life cycle assessment (LCA) sponsored by the National Oil-heat Research Alliance (NORA). The LCA was designed to analyze the “well-to-burner-tip” potential of Biofine’s process using either forest residues or waste paper as the primary feedstock input and comparing these results to fossil-derived heating oil (ultra-low sulfur diesel) and biodiesel, derived from oil seeds. Homes in the Northeast commonly use a non-condensing boiler for heat. In such a system, the results of the Earthshift Global LCA estimated the net benefit to greenhouse emissions (GHG) from use of biomass-based EL varies from -8.3 kg CO2e/mmBTU heat to -20.9 kg CO2e/mmBTU, depending on the feedstock used and size of EL production plant. These negative values indicate that the use and production of EL actually reduces GHG’s in the atmosphere. This is due to the fact that more carbon dioxide is absorbed by the feedstock than emitted by the fuel and its production process. Annualized CO2 savings for a typical household could be as high as 4.5 metric tons per year compared with biodiesel and almost 12 metric tons per year compared with ultra-low sulfur diesel.

What are the advantages of ethyl levulinate?

GHG Emissions – As shown below, ethyl levulinate significantly outperforms ultra-low sulfur diesel and biodiesel in GHG emissions.

Ability to Meet State Environmental Goals – Maine’s state policy calls for a 40% reduction in GHG by 2030 and 80% by 2050. Over the next ten years BDNE is planning to roll out multiple plants in Maine with an eye to producing over 500 million gallons of EL annually. This type of investment into Maine will create over 4,000 high paying jobs. Annually, a renewable fuel industry of this size will generate revenues of over $3 billion per year and result in a saving of over 5 million metric tons of carbon dioxide – almost two thirds of Maine’s carbon reduction goal.

Support from Maine Based and National Agencies - EL’s beneficial technical qualities as a heating fuel, including its soot-free combustion and cold temperature handling properties (freezing point -80 deg.C.), have led The National Oilheat Research Alliance (NORA), National Energy and Fuels Institute (NEFI), Maine Energy Marketer’s Association (MEMA) and other trade associations to support and embrace EL as an advanced biofuel.

Cost - Barriers to the shift away from fossil-based fuels include the price of the energy alternatives as well as the expense and effort to change heating technologies and supply chains. Because EL can be used in existing oil-based heating systems and delivered via the distribution channels, EL does not require significant change in existing heating oil systems.

What are the next steps for BDNE and EL? - With the environmental benefits of Biofine’s EL product and process confirmed, the Company is rapidly moving to the next stage in its development, the scaling from demonstration to larger scale commercial production. EL has been successfully tested in residential boilers at blends of up to 10% in fuel oil and neat (100%) in a range of commercial boilers. In October 2020, Biofine and Sprague signed a purchase agreement for the marketing and distribution of Biofine’s EL. Sprague is one of the largest independent suppliers of energy products and related services in the Northeast.

FOR MORE INFORMATION

Contact Mike Cassata, Chief Development Officer, Biofine Developments Northeast, Inc. at (617) 620 –8664 or mcassata@biofinetechnology.com.

Maine Adopts U.S. CDC’s New COVID-19 Guidance

The Maine Energy Marketers Association (MEMA) remains committed to the competitiveness of the heating fuel industry and the health and safety of its constituent businesses and their employees and customers. Throughout the COVID-19 pandemic, we have remained in frequent contact with federal and state officials and related industry partners to ensure our members and supporters have the resources needed to conduct business, as they have been deemed essential from the beginning of the pandemic.

Following a review by the Maine Department of Health and Human Services and the Maine Center for Disease Control and Prevention, Governor Janet Mills announced on May 14, 2021 that the State of Maine will adopt the U.S. Centers for Disease Control and Prevention’s (U.S. CDC) new guidance which allows fully vaccinated Americans not to wear face coverings indoors, effective May 24, 2021.

Maine has also lifted the physical distancing requirement at indoor public settings where people are eating or drinking in places such as indoor restaurants, bars, dining areas in camps or in congregate living facilities, and break rooms.

Consistent with the U.S. CDC’s guidelines, it is recommended that people in Maine who are not fully vaccinated wear face coverings in indoor public settings. The U.S. CDC requires people to wear masks on all planes, buses, trains, and other forms of public transportation.

The May 24th date aligns with Maine’s previously-established timeline to remove restrictions and allows those who have not yet been vaccinated to receive at least their first shot prior to the change. This includes youth ages 12 to 15 who just became eligible for a vaccine this week.

The Mills Administration updated the Moving Maine Forward Plan to lift all capacity limits and physical distancing requirements in all outdoor public settings. The Administration also lifted capacity limits for indoor public venues and physical distancing requirements, except in settings where people would be removing their face coverings.

The U.S. CDC issued its new guidelines at the same time the Mills Administration released its update to the Moving Maine Forward Plan. Overnight, the Department of Health and Human Services and the Maine Center for Disease Control and Prevention reviewed the new Federal guidelines and recommended their adoption to the Governor, who agreed.

Additionally, in light of the increased role the U.S. CDC has assumed in issuing guidance, the State of Maine has begun retiring its COVID-19 Prevention Checklists and transitioning to U.S. CDC guidelines as appropriate. The Maine Department of Education’s requirements and recommendations for schools, along with other Federal requirements, remain in effect at this time. Additional Federal guidance from the U.S. CDC for schools and other venues is expected.

Businesses and other organizations may, consistent with legal obligations, adopt policies for their employees or clients that either require vaccination or require proof of vaccination in order to avoid wearing a mask.

More than 70 percent of Maine people age 18 and older have received at least one shot of a COVID-19 vaccine, according to the U.S. Centers for Disease Control and Prevention (U.S. CDC) tracker.

Additionally, despite having the oldest median age population in the country, Maine, adjusted for population, ranks fourth lowest among states in both the total number of COVID-19 cases and number of

deaths from COVID-19, according to the U.S. CDC.

Fully vaccinated people can:

• Resume activities without wearing masks or physically distancing, except where required by federal, state, local, tribal, or territorial laws, rules and regulations, including local business and workplace guidance

• Resume domestic travel and refrain from testing before or after travel or self-quarantine after travel

• Refrain from testing before leaving the United States for international travel (unless required by the destination) and refrain from self-quarantine after arriving back in the United States

• Refrain from testing following a known exposure, if asymptomatic, with some exceptions for specific settings

• Refrain from quarantine following a known exposure if asymptomatic

• Refrain from routine screening testing if feasible

For now, fully vaccinated people should continue to:

• Get tested if experiencing COVID-19 symptoms

• Follow CDC and health department travel requirements and recommendations

Recommended Continued Practices for Everyone:

• Frequently wash hands with soap and water for at least 20 seconds.

• If soap and running water are unavailable, use hand sanitizer containing at least 60% alcohol.

• Avoid touching your eyes, nose, and mouth.

• Store face masks and other PPE properly to protect them from damage, contamination or deformation.

• Avoid contact with individuals who are showing symptoms of COVID-19, including fever, coughing, shortness of breath, chills, and new loss of taste or smell.

• Cover coughs and sneezes with a tissue and dispose of it immediately, then wash your hands.

Recommended Continued Practices for Company-Customer Interactions

• Follow established glove and mask protocols, including proper cleaning or disposal.

• Employees should wash or sanitize their hands before arrival at a job site and immediately upon departure.

• Reassure customers by notifying them of the continued precautions you are taking to keep their families safe and healthy.

• If an employee develops COVID-19 symptoms, immediately notify all customers who the employee was in contact with while symptomatic and during the 48-hour period prior to symptom onset.

Recommended Continued Practices for Employer-Employee Interactions

• Review with your employees all service policies and procedures your company has put into place.

• Instruct technicians to follow all Occupational Safety and Health Administration (OSHA) guidelines for in-home services, available here.

• Regularly clean and disinfect surfaces that are touched frequently. These include desks, keyboards, office and mobile phones, doorknobs, faucet handles, vehicle door handles, steering wheels, etc.

• Employees should be instructed to immediately notify their employer of a potential exposure to COVID-19. Incidents of “potential exposure” include being within 6 feet of an infected person for a cumulative total of 15 minutes or more over a 24-hour period starting from 2 days before illness onset (or, for asymptomatic patients, 2 days prior to test specimen collection).

• Employees should be sent home immediately if symptoms develop.

• Employees who are symptomatic and isolated may return to work after meeting conditions described by the CDC, as outlined here.

Choosing Safer Activities

Attend a small, outdoor gathering with fully vaccinated and unvaccinated people, particularly in areas of substantial to high transmission

Dine at an outdoor restaurant with friends from multiple households

Attend a crowded, outdoor event, like a live performance, parade, or sports event

HONORING THOSE WHO SERVE

Staff Sgt Joe Frazier

AOS Morgan Ross

MEMA is proud to recognize Staff Sargent (SSGT) Joseph Frazier, Maine Army National Guard and Aviation Operation Specialist (AOS) Morgan Ross, Unites States Navy SSGT Frazier’s parents are David and Ruth Frazier and AOS Ross’ parents are Jon and Leslie Ross Both David Frazier and Leslie Ross are employed by Daigle Oil Company in Houlton.

IF YOU HAVE FAMILY OR EMPLOYEES WHO ARE SERVING OR HAVE SERVED, PLEASE SEND THEIR NAMES AND PICTURES TO CSUMMERS@MAINEENERGYMARKETERS.COM TO BE HIGHLIGHTED IN UPCOMING EDITIONS OF THE MEMA MAG.

2021 REMAINING COURSE SCHEDULE

HVAC PROFESSIONAL SEMESTER CLASS

Member $12,300 Non-Member $13,500

Jul 6 – Oct 22

Jul 19 – Nov 12

OIL HEAT TECHNICIAN TRAINING

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

Jul 6 – Aug 13

Sep 13 – Oct 22

Nov 15 – Dec 23

EPA CERTIFICATION & INTRO TO AC

Member $950 Non-Member $1,050

Oct 5 – Oct 8

Oct 26 – Oct 29

AC REFRIGERATION & TROUBLESHOOTING

Member $1,050 Non-Member $1,150

Oct 11 – Oct 15 Nov 1 – Nov 5

40 HOUR HEAT PUMP TRAINING

Member $1,050 Non-Member $1,150

Oct 18 – Oct 22 Nov 8 – Nov 12

OIL JOURNEYMANS PREP CLASS (1 Day Class)

Member $199 Non-Member $299

Sep 11, Dec 11

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.

Scan the QR code to learn more about Tuition Assistance or to view classes.

PROPANE/NG:

BASIC PRINCIPLES & PRACTICES

Member $550 Non-Member $650

Jul 19 – Jul 20

Aug 16 – Aug 17

Nov 8 – Nov 9

APPLIANCE INSTALLATION & SERVICE

Member $2,775 Non-Member $3,075

Jul 21 – Aug 24

Aug 18 – Sep 22

Nov 10 – Dec 14

TANKSETTER & OUTSIDE PIPING

Member $1,150 Non-Member $1,250

Aug 23 – Sep 13 (night)

Aug 31 – Sep 9

Sep 23 – Oct 1 Dec 15 – Dec 23

DELIVERY TECHNICIAN

Member $895 Non-Member $995

Jun 29 – Jul 2

LARGE EQUIPMENT

Member $600 Non-Member $700

Jul 8 – Jul 9

PLANT OPERATOR

Member $1,000 Non-Member $1,100

Jul 12 – Jul 16

Customizable

Akzo

Equipped

The Power to Help Protect Your Employees

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