Industry Coalition Urges Congress to Protect Northeast Home Heating Oil Reserve

NEFI reports that it led a broad coalition of state and regional associations in urging Congress to advance the Bolstering the Northeast Home Heating Oil Reserve Act (H.R. 6933) in a letter to Speaker Johnson, Majority Leader Thune, and Minority Leaders Jeffries and Schumer. Copies were sent to the chairs and ranking members of the House Energy and Commerce Committee and the Senate Energy and Natural Resources Committee. A copy was also provided to the Northeast Congressional delegation.

The Trump Administration previously called on the Northeast Home Heating Oil Reserve (NEHHOR) to be shuttered and that the proceeds to be used to reduce the federal deficit, NEFI noted in its April 7 newsletter to members. The letter, dated April 1, was signed by all federal, state, and local heating oil associations in the Northeast. Here is the text:

Dear Congressional Leaders:
The undersigned organizations write to express support for the Bolstering the Northeast Home Heating Oil Reserve Act (H.R. 6933), introduced by Representatives Chris Pappas of New Hampshire and Mike Lawler of New York. This bipartisan legislation offers a commonsense alternative to the Administration’s proposal to close the Northeast Home Heating Oil Reserve (NEHHOR). We respectfully urge you to advance this legislation and to reject any effort to eliminate the Reserve.

Our organizations represent hundreds of multigenerational family businesses that deliver liquid
heating fuels to nearly five million homes and small businesses across the Northeast. The families and communities we serve depend on a reliable supply of heating fuel each winter, and the NEHHOR was created to ensure that supply remains available even in times of disruption.

The NEHHOR was established in 2000 to protect the Northeast from the unique supply vulnerabilities it faces as a region. The Northeast accounts for more than 80 percent of the nation’s residential heating oil consumption, yet it sits far from the Gulf Coast refining centers that produce most of the nation’s distillate fuel. The region’s dependence on long-distance waterborne and pipeline deliveries, combined with limited regional refining capacity and highly seasonal demand, means that even a brief supply disruption could have severe consequences for the families and businesses our members serve.

Originally established with a capacity of two million barrels, the Reserve now holds one million barrels of ultra-low sulfur distillate (ULSD). This past winter was among the coldest the Northeast has experienced in recent memory, underscoring the continued and critical importance of reliable heating fuel supplies. At the same time, ongoing conflict in the Persian Gulf has introduced significant volatility into global energy markets, including the distillate markets. These conditions serve as a powerful reminder that supply disruptions can emerge rapidly and with little warning, and that the NEHHOR remains an essential safeguard for the region and broader U.S. energy security.

H.R. 6933 would direct the Secretary of Energy to complete a long-range strategic review of the NEHHOR within 180 days and report to Congress on the Reserve’s near- and long-term roles in national energy and economic security, whether existing legal authorities governing the Reserve are adequate, the optimal capacity, location, and composition of the Reserve, and the resources required to sustain its long-term operational effectiveness. This kind of deliberate, evidence-based approach to managing America’s strategic energy assets represents a far more responsible course of action than elimination for short-term budget savings.

We urge Congress to pass this legislation so that policymakers can fully understand the Reserve’s strategic value, its importance within the Northeast’s unique energy mix and distribution infrastructure, and how it can best serve the region in the years ahead.

We further respectfully ask that in conducting this review, the Secretary give careful consideration to whether restoring the Reserve to its original capacity of two million barrels would better serve the region’s long-term energy security needs. While residential heating oil consumption has declined in the decades since the NEHHOR was established, the transition to ultra-low sulfur distillate has significantly expanded the Reserve’s utility and potential applications, and a larger volume of fuel in the Reserve would extend the duration of relief available during a supply disruption. This, combined with the Northeast’s continued geographic vulnerability to supply disruptions, suggests that a larger Reserve may well be warranted. The bill’s directive to identify the “optimal capacity” of the Reserve provides an appropriate framework for this examination.

The undersigned organizations stand ready to work with you and your colleagues to advance this
legislation and to participate in the review process on behalf of the heating fuel delivery businesses and consumers that Congress created this Reserve to protect.

Thank you for your attention to this important matter.
Sincerely,

National Organizations:
Energy Marketers of America (EMA)
National Energy and Fuels Institute (NEFI)
Oil and Energy Service Professionals (OESP)

State and Local Organizations:
Connecticut Energy Marketers Association (CEMA)
Energy Marketers Association of New Hampshire (EMANH)
Energy Marketers Association of Rhode Island (EMARI)
Empire State Energy Association (ESEA)
Fuel Merchants Association of New Jersey (FMA NJ)
Maine Energy Marketers Association (MEMA)
Massachusetts Energy Marketers Association (MEMA)
New York State Energy Coalition (NYSEC)
Pennsylvania Petroleum Association (PPA)
Vermont Fuel Dealers Association (VFDA)
cc:
The Honorable Brett Guthrie, Chairman, House Energy and Commerce Committee
The Honorable Frank Pallone, Jr., Ranking Member, House Energy and Commerce Committee
The Honorable Mike Lee, Chairman, Senate Energy and Natural Resources Committee
The Honorable Martin Heinrich, Ranking Member, Senate Energy and Natural Resources
Committee
Northeast Congressional Delegation