Bloomberg Makes it Official: Low-Sulfur Heating Oil Required in NYC by 2012
New York Mayor Michael Bloomberg signed a bill on Monday that required lower sulfur content and at least 2 percent biodiesel content for heating oils used in the City. (image: gothamist.com)
According to New York Mayor Michael Bloomberg’s Twitter feed, he on Monday signed city intro. 194-A into law, which mandates lower sulfur content in no. 4 and no. 6 heating oils. No. 4 and no. 6 heating oils, often referred to as “residual fuels,” are made up of the low-quality end products of the oil refining process and are usually used to power ships and heavy machinery. In New York City, many condominiums, apartment complexes, and other large commercial buildings use the fuels for heating because they are relatively cheap. Unfortunately, what make the fuels cheap are the many impurities they contain, which cause inefficient combustion that results in unhealthy and unsightly black emissions.
The enactment of intro. 194-A requires that heating oils burned in New York City must contain no more than 1,500 parts per million of sulfur after October 1, 2012. It also requires all heating oil used in the city after October 1, 2012 to contain at least 2 percent biodiesel.
Mayor Bloomberg and City Council Speaker Christine Quinn jointly announced support for the measure in late July, so the signing of the law was just a formality. Now fully official, the new law means cleaner air for all new Yorkers and more energy-efficient heating systems in large buildings.
Some voices in the refining industry claim that the new mandates will bring higher heating oil prices for residential and commercial customers alike, but considering that the requirements will be phased in over a 26-month period and supplies of lower-sulfur heating oil are ample, DEP commissioner Cas Holloway called that claim “overstated.”
Quincy, MA’s Energy Smart Program Helps Homeowners Save Money
A technician performs a blower door test, part of a home energy audit. A free home energy audit is the first step for homeowners who apply for the Energy Smart Quincy program. (image: austinqualitygreen.com)
Energy Smart Quincy is a new program designed to help the town of Quincy, MA reduce energy consumption and save money, the Boston Globe reported on Thursday. The program started in July, and provides homeowners and businesses with a free energy audit, during which a technician identifies ways to reduce energy use and informs consumers about available rebates and incentives for making energy-efficiency improvements.
The program is funded by federal stimulus money through an Energy Efficiency and Conservation Block Grant worth $881,000. That money will not go directly to homeowners, though; instead, it provides for the free energy audit and assistance in taking advantage of existing rebates and incentives. National Grid offers rebates of up to $2,000 and federal tax credits can take $1,500 off the cost of efficiency improvements. Those incentives can often help homeowners make the initial investment in projects such as adding insulation or sealing air leaks, which provide energy savings for years to come.
Home energy audits for the program are carried out by Next Step Living, whose chief executive, Geoff Chapin, heartily endorsed the program to the Globe:
“It’s an incredible deal. Not many people know about it,’’ Chapin said. “We help people access the rebates, fill out the forms. We make it easy.’’
Caryn Smith, a Quincy homeowner, spoke with the Globe about her efforts to reduce her energy costs. A home energy audit revealed that her 130-year-old home needed insulation in its roof and eaves. Through rebates and tax credits, what would have been a $5,500 job became a $2,000 job. That’s not exactly chump change, but Smith anticipates that the new insulation will save her $700 a year in heating costs, helping her pay off the investment in just under three years. After that, the improvement will continue to afford Smith the rewards of a more efficient home year after year.
Even a much smaller investment, combined with incentives, can substantially reduce energy bills. Larry Chretien, the executive director of Mass Energy Consumers Alliance, says that a $500 out-of-pocket expense can pay for $2,700 in insulation and air sealing, and usually saves consumers enough money that the initial investment pays for itself in just one year.
Quincy residents can apply today at the Energy Smart Quincy website. For those of you who live elsewhere, the example of Quincy might serve as inspiration. Find out what rebates or tax credits are available to you, and get a home energy audit to find out what improvements you can make to lower your heating costs. An upfront expense today could save you money for years to come.
Mayor and City Council Speaker Announce Support for Mandate of Cleaner No. 4 Heating Oil In NYC Commercial Buildings
An early report states that New York City Mayor Michael Bloomberg (right) and City Council Speaker Christine Quinn (left) will both announce their support for a mandate to reduce the sulfur content in heating oil used in large city buildings. (image: nycrubberroomreporter.blogspot.com)
City leaders announced their support today for a measure requiring lower sulfur content in oil used to heat apartments and other commercial buildings in New York City, according to a blog by Rich Kassel of the Natural Resources Defense Council. The announcement comes just days after Governor Paterson signed into law a mandate to lower the sulfur content of no. 2 heating oil, which is used in smaller, residential buildings. No. 4 and no. 6 heating oils (known as “residual fuels” because they are essentially made up of the dregs of the refining process) are major sources of air pollution in New York City. Today’s announcement “will come” from Mayor Michael Bloomberg and City Council Speaker Christine Quinn, according to Kassel. It will refer to New York City Intro. 194, which would lower the maximum sulfur content in no. 4 and no.6 heating oils to 2,000 parts per million (ppm) and also require the heating fuels to contain at least 2 percent biodiesel beginning in October of 2012. Intro. 194 is currently under consideration by the city council.
The best available description of Intro. 194 and its benefits comes from Caswell F. Holloway, Commissioner of the NYC Department of Environmental Protection. Holloway’s prepared remarks for his testimony to the city council regarding the measure on May 28 of this year make clear his support for the low-sulfur and biodiesel mandates. Holloway’s statement notes that no. 6 and no. 4 (a mixture of no. 6 and no. 2 heating oils) are a major source of “air pollutants such as particulate matter, sulfur dioxide, and sulfur oxides,” which can cause or exacerbate respiratory problems. The testimony also references the fact that no. 4 and no. 6 oils’ dirty emissions are not just unhealthy, but unsightly:
That boilers using No. 6 and No. 4 oil pollute more than the other fuels is readily observable by the general public. These boilers are commonly the subject of 311 complaints about the emission of smoke from a building chimney that is caused by incomplete combustion.
Holloway’s testimony also addresses the concern that the low-sulfur and biodiesel requirements in Intro. 194 could lead to a shortage of low-sulfur fuel, but calls the concerns “overstated.” Holloway goes on to predict the enactment of the measure would give a boost to local biodiesel producers who manufacture the green fuel from used cooking oil (one such manufacturer is Tri-State Biodiesel in the Bronx).
New York City building owners who would be most directly affected by the measure have generally opposed it—a note on the Federation of New York Housing Cooperatives and Condominiums’ website claims, “When this new legislation goes into effect, it will be more costly for the consumers.” As is the case with the New York State low-sulfur requirement on no. 2 oil, the effect of the City requiring low-sulfur heating fuel on retail prices is unknown. Commissioner Holloway’s testimony included an estimate that tuning up or otherwise retrofitting oil boilers to run on low-sulfur heating oil will cost some building owners $10,000 or less.
However it affects heating oil prices, Intro. 194 will undoubtedly bring cleaner air to New York City, and that’s good news for all NYC residents, regardless of how they heat their homes.
Web-Based Mass. Heating Oil Supplier Clickfil Disappears Without a Trace
Clickfil’s website and email are down—has Clickfil delivered its last gallon of heating oil? (image: marketwire.com)
Clickfil.com gained notoriety in the heating oil industry when it launched last summer, promising to use technology like GPS and an online ordering system to deliver discounted heating oil to customers in Massachusetts, and offering cheap ice cream to gain the attention of heating oil users in times of warmer weather. Now, nearly a year later, Clickfil appears to have gone belly up. Their website is down, the domain name is now available from GoDaddy.com, and emails sent to Clickfil email addresses have immediately bounced back. For an online company, no website and no email is like not having a pulse.
It’s unclear what exactly has happened to Clickfil, but its demise would be surprising. As a subsidiary of Fort Reliance—the parent company of Irving Oil, one of Canada’s largest heating oil companies and the owner of Canada’s largest refinery—Clickfil had the backing of a major player in the heating oil industry. Irving Oil already operated in several US states, but Clickfil represented an attempt to make inroads into the Massachusetts market, and to establish a new way of buying heating oil that offered the low per-gallon rates of COD heating oil and some of the amenities—though not the service—of full-service heating oil companies.
However, Irving Oil has been backing out of some of its investments recently. In June HeatingOil.com reported that Irving Oil had canceled its plans to build a biodiesel refinery next to its existing refinery in New Brunswick. That announcement came just days after Irving abandoned its rights to tidal power off the New Brunswick coast. As Irving Oil reassessed its expansion into alternative energy, perhaps it questioned its attempt to reinvent heating oil delivery, as well.
Do you have any news or insight on what’s happened to Clickfil? Let us know by leaving a note in the comments section.
Mass. Heating Oil Dealer to Pay Penalty for Illegal Liens
Astrofuel of Marblehead settled the case in which it was accused of filing improper liens on customers’ homes. (image: ljpenterpriseinc.com)
A heating oil dealer in Marblehead, MA reached a settlement with the attorney general’s office after being accused of illegally filing liens on nearly 150 customers’ homes and assorted other deceptive business practices, reports the Salem News. The owners of Astrofuel LLC (which also does business as Anchor Fuel, Apollo Fuel, and Apollo Group), Anita and Peter Davekos, will pay $20,000 in civil penalties and release all improper liens.
The Salem News first broke the story in March 2009, and nearly a year later the attorney general’s office filed its complaint. Astrofuel ran afoul of the attorney general by charging customers without notifying them, not informing customers how to cancel their contracts, and operating without filing certification in a number of towns; however, it was the Davekoses’ unusual practice of filing improper liens that proved especially insidious.
Massachusetts state law allows a so-called mechanic’s lien to be filed against a property if work done to the permanent structure goes unpaid. The Davekoses claimed that liens were filed after they had not been paid for oil burner repairs, which might have entitled them to file a mechanic’s lien. But customers say such repairs never happened, and the liens were filed after customers disputed bills or tried to cancel contracts. In other cases—because Astrofuel was not properly notifying customers of charges—many customers were simply unaware of any unpaid balances and remained unaware that a lien had been filed on their home.
State Representative John Keenan is trying to change the law regarding liens to make it harder for people like the Davekoses to use liens to extort customers. Under current law, homeowners have little recourse to remove the lien other than to pay the alleged debt because dissolving the lien requires the consent of the filer—in this case, the Davekoses. Liens can severely hamper any effort to sell or refinance a home, and some homeowners may have simply found it preferable to pay the Davekoses the hundreds or even thousands of dollars they asked for.
One Salem homeowner, Jacqueline Wilkins, is not satisfied with the attorney general’s actions. She told the Salem News, “I don’t think it’s enough,” and has filed a class-action lawsuit against Astrofuel.
While the liens will be removed, customers would have rather worked with a different heating oil company and escaped the experience entirely. Customers aren’t likely to worry about whether or not a company they work with will illegally file a lien on their home, but it is advisable to do some research before buying oil from a new dealer. The Better Business Bureau (BBB) gave Anchor Fuel a rating of “F,” a sign that Anchor Fuel and its parent company Astrofuel might best be avoided.
Destin, FL to Hold Fireworks Display Despite Oil Spill and Tar Balls
Despite its recent misfortune, the city that calls itself the “world’s luckiest fishing village” is moving ahead as planned with its Independence Day celebration. (image: cityofdestin.com)
Tar balls have speckled the beaches of Destin, Florida, ugly reminders of the catastrophic oil spill that threatens the Florida coastline, but the city is determined to move forward with its Second Annual Independence Day celebration, TheDestinLog.com reported.
Destin is a city whose livelihood comes from the water, through fishing and the tourists attracted to its beaches and water activities. Faced with this environmental calamity just off its shores, the city contemplated canceling the festivities, but decided that the Fourth of July event might be even more important in the wake of the oil spill. City of Destin Recreation Manager Lance Johnson told TheDestinLog about the decision:
We really need this as a community to help forget about everything that is going on around us for a few hours.
Despite the city’s resolve, the oil spill may force some modifications to the planned schedule. The pyrotechnics company plans to navigate through water to set up the fireworks display, but an oil slick could block their way and force the fireworks to be relocated; boating through the oil slick would only extend the contamination to other areas. The tar balls that are beginning to blight Destin’s beaches won’t cause any problems, though. According to Johnson, “the tar balls are weathered and not flammable,” so they pose no risk.
Cities and towns across the United States will be commemorating the Fourth of July this weekend, and Destin residents will brave the difficulties and not let the oil spill prevent them from celebrating their nation’s independence.
Building Owners Will Pay for Bronx River Oil Spill
One way that crews are cleaning up the Bronx River spill is by using boom to keep the oil in the river from spreading. The owners of the apartment building where the spill began have agreed to pay for cleanup. (image: Al Jones for 1010wins.com)
Cleanup crews are still vacuuming up the 200 gallons of no. 4 heating oil that spilled into the Bronx River on June 2, but the potentially vexed question of who would pay for the cleanup has been largely settled, reports the local news website LoHud.com. Bronstein Properties, which owns the apartment building that leaked heating oil into the river, has agreed to pay up to $200,000 for the cleanup.
Maureen Wren, a spokeswoman for New York’s Department of Environmental Conservation (DEC), said that details had not been finalized but confirmed that Bronstein had agreed to pay for remediation. Scott Berg, an attorney for Bronstein, told LoHud.com about the agreement:
“We’re trying to do the right thing,” Berg said. “A leak did occur and we’re paying for it. We’re still investigating how exactly it happened. The bulk of the clean-up has been done.”
Bronstein could also face penalties of up to $25,000 a day, but officials at the DEC seemed reluctant to slap Bronstein with such a fine, saying that paying for cleanup was the pivotal issue.
While Bronstein has agreed to pay for the cleanup, it may not be the only company held financially responsible for the spill. As Berg stated, the cause of the leak is still under investigation, and the building’s furnace contractor could be responsible for the spill. Star Industrial Service Co. of Brooklyn did repair work on the building’s furnace the day before a jogger first noticed the spill.
Whatever the cause of the spill, it looks like taxpayers will not be on the hook to pay for the cleanup efforts, as Westchester County Executive Robert Astorino had promised.
Owner of Bernie’s Fuel Oil Testifies in Bankruptcy Court
Daniel Groben, owner of Bernie’s Fuel Oil, testified in federal bankruptcy court at the Abraham Ribicoff Federal Building on Monday. (image: bcaarchitectspc.com)
Bernie’s Fuel Oil of New London, CT declared Chapter 7 bankruptcy on April 30, and on Monday the heating oil company’s owner, Daniel J. Groben, testified in front of creditors and the US Bankruptcy Court about the assets and liabilities of Bernie’s and about his own personal finances, reported New London’s The Day.
Groben spent two hours being questioned by court trustee Anthony Novak and creditors, and will return for more testimony on July 12. So far Bernie’s Fuel Oil faces more than 385 claims totaling $693,195 but more claims could still be filed. In addition, Groben has $2 million in personal debt, and Bernie’s still faces separate lawsuits from three fuel oil suppliers (Hess Corp., Global Cos. LLC, and Clark Oil LLC), with Hess alone aiming to recover $2.1 million.
Customers who pre-paid for heating oil that Bernie’s couldn’t deliver would be among the first to receive restitution from the liquidation of Bernie’s assets, according to Novak. The Day reported that Novak directed Groben to provide the court with records of which customers were still owed oil or a refund:
“If (customers) put deposits down for oil that was not delivered or only partially delivered, then they are entitled under bankruptcy code to a priority claim,” Novak said. “If I do recover money, it’s my intention to pay the priority claims before I pay general unsecured creditors. We’re looking for more assets.”
Such customers should file a claim with the bankruptcy court and detail why they are owed money, Novak said.
Whether or not Bernie’s Fuel or Groben have the assets that would be needed to pay off creditors is questionable. Bernie’s initial bankruptcy filing said the company had just $50,000 in assets. When asked about the value of his customer list, Groben said he couldn’t estimate a price, but as Novak pointed out the value is only going to fall as time wears on.
Bernie’s Fuel Oil is not Groben’s only business. He owns BFO Enterprises LLC, which he formed to buy Bernie’s in 2003, and a real estate company called DFG Enterprises LLC. In 2006, he purchased the assets of Clark Oil LLC and Family Discount Oil LLC, and also operated under the names All Aboard and Patriot Oil.
Groben’s primary personal asset appears to be his home, which he has five mortgages on. He claims that he got into so much personal debt by borrowing money to invest back in the company, completing the picture of a man both personally and professionally overextended.
Checking and savings accounts, vehicles, and tools were among the possible assets surveyed by the court. Groben’s account at the Savings Institute in Willimantic, CT, which holds $8,000, will have to be turned over to the court. Another creditor, Washington Trust, is working to secure some of Bernie’s trucks as collateral for debt.
Even as Bernie’s Fuel Oil amassed debt, and Groben took on debt of his own to finance the company, he remained convinced that Bernie’s could continue to operate and deliver oil. When a former heating oil customer asked Groben how he could wait so long to take action, Groben replied, “We thought we’d be able to make it through and meet our obligations.”
Cleanup Under Way in Bronx River Heating Oil Spill
Hazardous material crews work to contain heating oil flowing from storm drains into the Bronx River. (image: wsj.com)
Hundreds of gallons of no. 4 heating oil spilled into the Bronx River from a White Plains, NY apartment building beginning on Wednesday, and cleanup crews are working to contain the spill and remove the oil from the river. A jogger first reported an unusual odor near the river to police on Wednesday morning, and local authorities later traced the source of the strong-smelling black oil to an apartment building on South Lexington Ave. in White Plains, the New York Post reported.
No. 4 heating oil, also known as residual fuel oil, is a dirtier and cheaper heating fuel than yellow-colored and cleaner-burning no. 2 heating oil used by residential consumers. Despite its much higher emissions, no. 4 heating oil (and similar no. 6 oil) is used by many apartment buildings and other commercial structures because of its lower cost. In an effort to improve air quality, New York City is working toward phasing out nos. 4 and 6 oils in favor of no. 2 heating oil and other cleaner heating fuels.
The oil leaked from the apartment building, across an off ramp from the Bronx River Parkway, and into storm drains that fed into the river. Authorities reported that the leak continued until about 12:30 pm on Wednesday. According to local news site lohud.com, “The northbound Main Street exit ramp off the Bronx River Parkway in White Plains is being intermittently opened and closed for traffic during the cleanup.” Maureen Wren, a spokeswoman for the New York State Department of Environmental Protection told reporters that “three to four miles of affected shoreline” would need to be scrubbed of oil. The cleanup effort could take weeks to complete. So far, several ducks and geese have been found covered in oil, and a few dead fish have washed up on the banks of the river.
The Wall Street Journal reported that the Bronx River has a history of pollution problems, and only showed signs of recovery in the last few years, as fish and waterfowl returned to the waterway. With words that echoed statements made by federal government officials in reference to the BP crude oil spill in the Gulf of Mexico, Westchester County Executive Robert Astorino assured that the responsible party (presumably the owners of the leaking apartment building) would pay for remediation: “The taxpayers are not paying for this cleanup.”
NYC Holds Hearing on Clean Heating Oil Bill
New York’s City Hall was the scene of a hearing on biodiesel and low-sulfur requirements for heating oil on Friday. (image: wikimedia.org)
To combat air pollution in New York City, the City Council is considering legislation that would clean up the city’s heating oil, which is responsible for a significant amount of the city’s emissions of particulate matter (soot). The Wall Street Journal reported that the New York City Council held a hearing on Friday to discuss the proposal to mandate the use of biodiesel in home heating oil, but the bill would also limit the sulfur content of one grade of sulfur-heavy heating oil (full text of the bill is available at the New York City Council website). The Council’s bill would create a cleaner heating fuel for New York City residents, but would allow for the continued use of residual fuels that are far dirtier than no. 2 heating oil and are responsible for the bulk of the city’s soot pollution.
Previously, city officials had announced their goal of phasing out the use of no. 4 and no. 6 fuel oils, called residual fuels because they are the dirty leftovers from the refining process after gasoline and distillates (no. 2 heating oil and diesel) are skimmed off. New York City’s clean heating oil bill does not call for a ban on those fuels, but does include the following two key provisions:
• All heating oil must contain at least 2 percent biodiesel by October 1, 2011. This provision applies to no. 2 heating oil (the most common grade of home heating oil) as well as no. 4 and no. 6 fuel oil (residual fuels used by industry or large building complexes).
• The sulfur content of no. 4 heating oil must be between 0.1 and 0.2 percent (1,000 to 2,000 parts per million) by October 1, 2012.
Blending biodiesel into heating oil will fulfill the bill’s primary aim of lessening air pollution by reducing heating oil’s sulfur content. Sulfur is responsible for the particulate pollution that is linked to asthma and a variety of other health problems. The bill’s authors also cite other benefits of creating incentives for biodiesel: support for the local biodiesel industry, increased energy independence, and lower emissions of greenhouse gases.
While the bill moves to reduce the sulfur content of no. 4 heating oil, it won’t stop large buildings from burning the heavy residual fuels that cause such a disproportionate amount of particulate pollution. Last December the Environmental Defense Fund (EDF) reported that the roughly 1 percent of buildings in New York City that burned no. 4 or no. 6 fuel oil were responsible for 87 percent of the city’s soot pollution. To solve this problem, the EDF proposed converting buildings to no. 2 heating oil, which has a much lower sulfur content.
Representatives from the EDF and another environmental group, the Natural Resources Defense Council (NRDC), testified at Friday’s hearing. While supportive of the bill, the EDF and the NRDC asked the City Council to make it stronger. Both recommended a firm cap on the sulfur content of no. 4 heating oil and the addition of standards to ensure that the biodiesel mandate would support local industries and come from biodiesel feedstocks that make the smallest environmental impact. The EDF asked the City Council to remove the commissioner of the Department of Environmental Protection’s ability to waive the biodiesel requirements if there was a shortage of commercially available biodiesel or if biodiesel became substantially more expensive than 100 percent petroleum fuel.
It’s not only environmentalists who favor a cleaner, greener heating oil. The national heating oil industry has embraced biodiesel blends and low-sulfur heating oil, and a number of states have passed or are considering clean heating oil legislation with strong industry support. The New York State Assembly has passed a bill that would lower the sulfur content of all heating oil, a bill that is still in debate in the New York State Senate (watch a video of New York Assemblyman Marc Alessi expressing his support for biodiesel mandates here).
Heating oil users in New York, like residents of other areas where heating oil is widely used, stand to gain from the cleaner air and other environmental benefits of such legislation, but a cleaner heating fuel has other benefits for home heating oil consumers. The sulfur in heating oil is detrimental to home heating systems, so heating systems that use cleaner heating fuels require less maintenance. Cleaner fuels also burn more efficiently, so more of the fuel you spend your money on is converted into heat that fills your home.
Converting to a new fuel standard could lead to slightly higher per-gallon prices, but as biodiesel and low-sulfur requirements become more widespread, the supply of clean heating fuel will catch up with demand and help mitigate any price increases.
Biodiesel Heating Oil Project Earns Rhode Island Students President’s Environmental Youth Award
Students in Westerly, RI spearheaded a program to turn waste cooking oil into home heating fuel. (image: w-i-n.ws)
For seven Rhode Island middle schoolers, “TGIF” has nothing to do with the weekend. Their “Project TGIF—Turning Grease into Fuel” aims to reduce carbon emissions and donate heating fuel to low-income families by turning waste cooking oil into biodiesel. Project TGIF has been such a success that the EPA has awarded the students the President’s Environmental Youth Award, reports the environmental news website SolveClimate.
Biodiesel blended with heating oil, often sold under the trade name Bioheat, is a cleaner-burning heating fuel than 100-percent petroleum based heating oil and is fully compatible with existing heating systems. Some state legislatures have passed laws mandating that all home heating oil contain a percentage of biodiesel, and the heating oil industry has taken the lead in making biodiesel blends the green heating fuel of the future. These Rhode Island students helped raise awareness of this green option in home heating and proved that turning a waste product into a valuable fuel is not just feasible but a win-win situation for all parties concerned.
The sixth-graders from Westerly, RI persuaded the town council to install a waste cooking oil container at the local transfer station to collect used cooking oil from residents, and convinced 64 restaurants to donate their used cooking oil. Having secured the grease, the students partnered with a delivery company and a biodiesel refinery to turn the grease into heating fuel. So far, Project TGIF has collected 36,000 gallons of waste oil, enough to produce 30,000 gallons of biodiesel. According to the EPA, that biodiesel has eliminated 600,000 pounds of carbon dioxide that would have otherwise been emitted into the atmosphere.
But the students were not content with only their environmental contribution. An article in the local newspaper about the difficulty that many families had paying for home heating oil spurred the students to action. They teamed up with local charities to donate 4,000 gallons of Bioheat to 40 families in need of heating assistance.
The students traveled to Washington, DC on Thursday to accept their award from the head of the EPA, Lisa Jackson. The Westerly group was one of ten groups, each from a different region, to win the award. The administrator of the EPA’s New England region, Curt Spalding, spoke about how “impressed” he was with these students:
We have serious environmental problems, but with the creativity and commitment displayed by these students, we can find ways to effectively work toward a cleaner and healthier world.
New Allegations Against Bankrupt Bernie’s Fuel Oil as Complaints Pile Up
Customers allege that Bernie’s signed them to pre-pay contracts shortly before going bankrupt. (image: mattwisdom.wordpress.com)
When Bernie’s Fuel Oil of New London, CT filed for Chapter 7 bankruptcy on April 30 the heating oil supplier left hundreds of customers without the oil or service contracts that they had paid for in advance. While Bernie’s largest debts were owed to its fuel suppliers, New London’s The Day reports that many residential consumers are among the 160 creditors who have filed claims in bankruptcy court and the 400 who have filed complaints with the Department of Consumer Protection.
What has left customers most angry is not just that Bernie’s did not fulfill their contracts, but their sense that Bernie’s lied and acted in bad faith even as the company’s management knew that it was on the verge of collapse. Some of the complaints allege that Bernie’s offered customers discounted service contracts and pre-buy oil plans mere weeks before the company declared bankruptcy. The Day quotes two customers who think Bernie’s made that offer knowing that they could never deliver the oil or fulfill the service contract:
“He had to know he was going out of business,” said Salvatore Cardello of Gales Ferry, who has claimed $1,850 in losses.
“It’s criminal,” said 53-year-old John Schumann of Ledyard, who claims Bernie’s owes him more than $3,400. “They took money from me knowing they would never deliver the product.”
Customers who filed claims lost an average of $1,500 and are now forced to pay out of pocket for additional oil or service they may need.
Several cheated customers were won over by Bernie’s half-price service contract, offered this year for the first time and only available to customers who paid in advance. Paired with a pre-buy rate of $1.99 a gallon, Bernie’s offer proved irresistible, even as it turned out to be too good to be true.
Connecticut’s Department of Consumer Protection and attorney general’s office are still conducting investigations of Bernie’s collapse. Bernie’s creditors are scheduled to meet at the Hartford Superior Court at 10:00 am on June 7. Claims can still be filed with the bankruptcy court and the Department of Consumer Protection. For instructions on how to file a claim, visit the Department of Consumer Protection’s website.
CT Heating Oil Dealer Bernie’s Fuel Oil Is Bankrupt, Will Not Reopen
Debts owed to customers and suppliers brought down Bernie’s Fuel Oil. (image: tjclearylaw.com)
Plagued by lawsuits, under investigation by Connecticut’s Department of Consumer Protection, and owing up to $10 million, Bernie’s Fuel Oil of New London, CT filed for Chapter 7 bankruptcy on Friday, reports New London’s The Day.
In a Chapter 7 bankruptcy, the business halts all operations, all assets and property liquidated, and all employees are liable to lose their jobs. The company, as an entity, is dissolved and will not resume business.
Bernie’s bankruptcy filing lists more than 220 creditors and shows that the company has $50,000 in assets while it faces liabilities between $1 million and $10 million. Among the creditors were three fuel suppliers that had sued Bernie’s in the past three months—Hess Corp., Global Companies LLC, and Clark Oil LLC—alleging that Bernie’s defaulted on fuel purchases.
After The Day initially reported the lawsuits against Bernie’s Fuel Oil, heating oil customers who had pre-buy contracts with Bernie’s Fuel Oil complained to Connecticut’s Department of Consumer Protection that they had not received oil they had pre-paid for. By Friday, NBC Connecticut was reporting that “dozens of people” had filed complaints with the state.
Richard Blumenthal, Connecticut’s attorney general, has experience in dealing with heating oil companies that renege on pre-buy contracts and had this to say about Bernie’s Fuel Oil on Friday:
There are a number of suppliers that are taking legal action against Bernie’s because it has failed to pay them. And that indicated, very severe financial peril could endanger consumers because it may mean that they simply cannot deliver the product that they promised.
It’s now clear that Blumenthal’s worry has become reality. After 50 years of serving southeastern Connecticut, Bernie’s Fuel Oil is closed for good.
For consumers affected by Bernie’s bankruptcy, Jerry Farrell Jr. of the Department of Consumer Protection offered some advice:
• Gather all paperwork (receipts, contracts, etc.) regarding your transactions with Bernie’s Fuel Oil.
• Send written notice to Bernie’s canceling your contract.
• If you paid with a credit card and did not receive the fuel you paid for, contact your credit card company to dispute the charge.
• File a proof of claim with the bankruptcy court. Visit www.ctb.uscourts.gov for more information.
• File a complaint with the Department of Consumer Protection.
Consumers should not get their hopes up, though. In Connecticut’s case against F&S Oil, customers will receive only partial restitution, and have so far been waiting more than two years to get it.
NYC Air Quality Still Suffers from Residual Fuels
Progress, but far from perfect. The New York metro area is a long way from a passing grade on particulate pollution. (image: stateoftheair.org)
New York City’s air quality has improved, says the American Lung Association (ALA), but when it comes to particulate matter—soot—New York still falls well short of the EPA’s standard. The culprit? Residual fuels—no. 4 and no. 6 heating oil—that are much dirtier than no. 2 heating oil but are burned by roughly 9,000 buildings in New York because of their lower per-gallon price.
Particulate pollution is linked to a variety of health and respiratory problems, including asthma, and New York City is unusual in that the soot can largely be attributed to buildings that burn heavy, residual fuels. The ALA’s State of the Air 2010 gives the New York metropolitan area a grade of “F” for particle pollution, confirming the conclusions of the Environmental Defense Fund, which in December reported that 87 percent of New York City’s particulate pollution came from the 1 percent of the city’s buildings that burn no. 4 or no. 6 oil. These heavy fuels, more commonly used in shipping or for industrial purposes, are exponentially dirtier than no. 2 heating oil, which is the fuel typically used in home heating.
Writing for the Gotham Gazette, Rich Kassel of the Natural Resources Defense Council highlighted the ALA’s report, released on Wednesday, to emphasize the continuing need for New York City to take action. City officials have already announced plans to introduce regulations this year that would phase out the use of no. 4 and no. 6 heating oil. Along similar lines, New York State’s legislature is weighing a bill that would mandate lower sulfur levels for all heating oil. The low sulfur heating oil bill, which would bring down the sulfur content of no. 2 heating oil and effectively eliminate no. 4 and no. 6 heating oil, has received the joint endorsement of the New York Oil Heating Association and the American Lung Association of New York.
Though converting to cleaner-burning no. 2 heating oil represents a significant upfront cost for owners of buildings burning residual fuel, a study has found that the city could save $5 billion in health care costs, and save 188 lives per year. And once those buildings do convert, they’ll see the same advantages that ordinary homeowners see when they switch to low sulfur heating oil: a more efficient fuel that reduces fuel use and a cleaner fuel that lowers the maintenance needed on your heating system.
Heating Oil Thieves Foiled by Guinness, an English Police Dog
Heating oil thieves in England underestimated the ability of one police dog, and were found five miles away from the scene of the crime. (actual dog in question not pictured) (image: wikipedia.org)
Spaldwick is a small village in England, with a little over 500 residents, “a service station, a school, a church, a beauty salon and a pub.” That doesn’t mean it’s free of troubles, though. Local constables recently arrested four people for the theft of domestic heating oil, and are now holding them in the police station of the nearby town of Huntingdon.
But they couldn’t have done it without the help of their trusted police dog, Guinness. A burglary was reported just before 4:00 am, and while officers searched the area—finding two of the suspected culprits in a van—Guinness picked up a scent and led his handler some five miles away to the village of Brington, where the final two suspects were caught. Town & Crier, a local newspaper, reported Guinness’ triumph on Friday.
In sum, three men and one woman were arrested and two vans, replete with oil tanks and pumps, were seized.
Perhaps Guinness heard of the heating oil theft that occurred at an animal shelter in Pennsylvania this January, which subjected already vulnerable cats and dogs to chilly temperatures, and took a special interest in this crime. Unfortunately, that shelter in Pennsylvania did not have a valiant police dog such as Guinness to find the perpetrator.
So whether you prefer the adult beverage or the defender of justice, heating oil users have another reason to say, “Guinness is good for you.”
(image: recreatingtampa.com)
PA Man Produces Biodiesel to Raise Money for Seniors
John Bailey wants to use the biodiesel he makes in his garage to help seniors. (image: Jeremy Drew via readingeagle.com)
John Bailey of Centre Township, PA started making homemade biodiesel seven years ago to heat his home. By using waste cooking oil that would have otherwise ended up in a landfill, Bailey made a fuel that only cost him 70 cents per gallon. Now, the Reading Eagle reports, he wants to start selling his biodiesel to raise money for the state’s Low-Income Home Energy Assistance Program (LIHEAP).
While Bailey’s own biodiesel, produced in a garage on his property, has saved him money, he is now dedicated to helping Centre Township’s seniors in need, as the Eagle reports:
“We have a lot of seniors who don’t have heat,” Bailey said. “It is my mission to have biofuels help seniors with their heating.”
Bailey embarked on that mission two years ago when he contacted state Rep. Tim Seip. Initially the two planned to make biodiesel and provide it directly to LIHEAP customers, but were unable to arrange for the necessary transportation. Their latest plan is for Bailey to sell his biodiesel and donate the proceeds to LIHEAP. Bailey hopes to build a new facility on county property, and in exchange would provide fuel for county vehicles.
Pennsylvania’s LIHEAP program—like LIHEAP programs in every other cold-weather state—struggled to keep up with need last winter as the recession forced more people to apply for assistance. Federal funds were needed to extend the program through the end of March, and average benefits were under $400 per household. If Seip and Bailey can get their project off the ground, Pennsylvania’s seniors and low-income residents who need some help with their heating bills will be thankful.
Three Sentenced for NJ Heating Assistance Fraud, Two More Await Sentencing
A family faces jail time, probation, and restitution for stealing from New Jersey’s heating assistance program. (image: faqs.org)
One family’s scheme to profit from a state program aimed at helping low-income families heat their homes is nearing its unpleasant conclusion. An administrator of New Jersey’s heating assistance program was indicted last August, along with five family members, and all pleaded guilty in February. A New Jersey court handed down sentences for three of the family members on Friday, reported a press release from the office of New Jersey attorney general Paula Dow, sentencing all to probation and restitution of stolen funds and one to up to a year in jail.
The three were relatives of Constance Campbell, who took advantage of her position as an administrator of the New Jersey Home Energy Assistance Program to secure $24,000 in benefits that her and her family did not qualify for.
The court sentenced Patsy Campbell, Constance Campbell’s sister, to three years probation. Their brother, Dennis Campbell, was sentenced to up to 364 days in jail as a condition of two years probation, while his wife, Hollyann Allen, was sentenced to three years probation. The three also share responsibility with Constance Campbell for paying back the money they received.
Two other sisters have pleaded guilty and were admitted to a Pre-Trial Intervention program on February 26. Constance Campbell will be sentenced on May 27, as will Thomas Harris, a heating oil dealer that accepted the Campbell family’s fraudulent assistance checks and gave them cash instead of oil. In Constance Campbell’s case, the state will recommend a sentence of five years in state prison and responsibility for full repayment of defrauded heating assistance funds. Harris faces up to four years in prison.
Flynn’s Oil Agrees to Repay All Shorted Heating Oil Customers
The owner of Flynn’s Oil, Michael Flynn (left), agreed in court on Thursday to pay back every customer who paid for but did not receive heating oil. (image: James A. Kimble via unionleader.com)
New Hampshire heating oil users who paid Flynn’s Oil Company in advance last winter for deliveries they never received got some good news on Thursday, as reported by the New Hampshire Union-Leader. In Rockingham County Superior Court, Flynn’s Oil pleaded guilty to violating the Consumer Protection Act and agreed to pay back about 450 shorted customers. While former Flynn’s customers can look forward to getting their money back, they shouldn’t get too excited just yet—the process of repayment will take several years.
The criminal conviction—which stands against the corporation, not its owner, Michael Flynn—carried a $100,000 fine, but the court suspended that fine on the condition that Flynn’s Oil pay back its customers, which prosecutors currently estimate will cost Flynn’s $534,603.08. The sum of roughly $530,000 represents a substantial revision from the $700,000 previously estimated; prosecutors did not account for the new figure.
The sale of Flynn’s Oil to Hilton Oil of Lawrence, MA will generate the necessary funds. Prosecutors said the payment for Flynn’s will be put into a pool that will repay customers over a three-year period. Hilton Oil is expected to resume operations at the Flynn’s Oil site.
By selling Flynn’s Oil, the company avoids having a court-appointed receiver take charge of all of its assets. Flynn’s had fought the appointment of a receiver, and a hearing scheduled for March 31 was postponed to allow the company one more week to find a buyer.
While Flynn’s former customers may not see their money soon, the agreement between Flynn’s and prosecutors is more favorable than some alternatives. If Flynn’s Oil could not be sold, and the company were unable to raise any money, customers would not get their money back at all. A similar case in Connecticut against F&S Oil—a case that is a year older than the Flynn’s Oil case—is still in the early stages of securing repayment and will only get customers back 30 percent of what they are owed.
Shorted CT Heating Oil Customers To Receive Claim Letters
Connecticut’s attorney general’s office just mailed 10,000 claim letters to heating oil customers still owed money. The case against F&S Oil could provide a model for cases pending in other states. (image: gaddywells.com)
Customers who prepaid F&S Oil Co., a heating oil company based in Waterbury, CT, for heating oil that they never received are one more step closer to getting their money back. Attorney General Richard Blumenthal said on Tuesday that his office has sent nearly 10,000 letters to former customers and creditors of F&S Oil, reported the Waterbury Republican-American; customers have until May 3 to file a claim for restitution. About $1 million of the $2.5 million raised by the sale of F&S Oil’s assets will go to customers who had prepaid contracts, with the amount of each claim dependent on the number of claims filed.
F&S Oil surprised customers by closing its doors on March 7, 2008. At the time of closing, F&S Oil still owed 2,500 customers roughly $3.4 million in heating oil that customers had paid for in advance.
A website, www.fsoilsettlement.com, has been established to provide information on the restitution program and to allow customers to download a claim form. Additional documents regarding F&S Oil’s court case can be found at www.fsoil.com.
It’s been more than two years, but bilked heating oil customers in Connecticut may be close to receiving partial—though probably not total—repayment of the money they entrusted to F&S Oil. Their experience could provide a model for similarly frustrated customers of Flynn’s Oil in New Hampshire, where a court may soon appoint a receiver to take charge of Flynn’s assets. Legal action has also been taken against STS Discount Oil in Pennsylvania and Able Energy in New Jersey for not delivering on prepaid heating oil contracts.
If restitution in these cases follows the pattern established by F&S Oil, customers waiting to get their money back shouldn’t hold their breath. Any restitution will likely be preceded by a lengthy legal battle, and could fall short of full repayment.
Three Days in NYC, from the 23rd Floor
(image: Nicholas Whitaker for HeatingOil.com)
At HeatingOil.com, we’re lucky to work in the middle in one of the most beautiful and interesting cities in the world. From our 23rd floor office in downtown New York, we have great views of midtown Manhattan, the Empire State Building, and the Hudson River. Our intrepid photographer and video producer Nicholas Whitaker, using cutting-edge video equipment, captured three days of bustling city activity in beautiful time-lapse fashion from our office windows, and put together the video below. Enjoy!
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This video was shot as a test of the new Canon 5dm2, using a combination of still frames combined in post to create a timelapse, and video recorded at 30 frames per second and sped up. At HeatingOil.com we are constantly working toward improving production quality, and introducing new techniques and technologies into the workflow. For questions on this or any other video, you can contact Nicholas at nwhitaker@heatingoil.com.
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