Imprudent Decarbonization Policies Threaten Clean Energy Progress

Clean energy policies across the Northeast and beyond are calling to phase out carbon-intensive fuels, including home heating fuel, through policy-driven electrification. Well-intentioned proponents of these policies believe that through the mass conversion of U.S. homes to electric heat pumps, they can decarbonize the heating sector by shifting the power grid to 100-percent renewable energy over the coming decades.

This strategy is not only infeasible, but also socially, economically, and environmentally irresponsible for the myriad reasons outlined in this section. Additionally, these plans fail to recognize the decades-long effort of the liquid heating fuel industry, in partnership with the agricultural sector, to provide homeowners with a domestically produced, renewable heating fuel that’s increasingly clean, safe, and energy efficient, and which represents the most prudent, affordable, and expedient path to complete decarbonization of the residential heating sector.

“Converting to an all-electric system for whole-home heating could cost the average consumer as much as $25,000, and wouldn’t even necessarily guarantee quality comfort. Additionally, upgrading the grid to support mass deployment of heat pumps and electric vehicles would cost billions. On the other hand, biofuels may, in the not-too-distant future, be able to make our customers 100-percent renewable for just a couple hundred bucks in seal and pump replacements.”

Jaime Py

Former President, Maine Energy Marketers Association

Imprudent Decarbonization Policies Threaten Clean Energy Progress

Clean energy policies across the Northeast and beyond are calling to phase out carbon-intensive fuels, including home heating fuel, through policy-driven electrification. Well-intentioned proponents of these policies believe that through the mass conversion of U.S. homes to electric heat pumps, they can decarbonize the heating sector by shifting the power grid to 100-percent renewable energy over the coming decades.

This strategy is not only infeasible, but also socially, economically, and environmentally irresponsible for the myriad reasons outlined in this section. Additionally, these plans fail to recognize the decades-long effort of the liquid heating fuel industry, in partnership with the agricultural sector, to provide homeowners with a domestically produced, renewable heating fuel that’s increasingly clean, safe, and energy efficient, and which represents the most prudent, affordable, and expedient path to complete decarbonization of the residential heating sector.

“Converting to an all-electric system for whole-home heating could cost the average consumer as much as $25,000, and wouldn’t even necessarily guarantee quality comfort. Additionally, upgrading the grid to support mass deployment of heat pumps and electric vehicles would cost billions. On the other hand, biofuels may, in the not-too-distant future, be able to make our customers 100-percent renewable for just a couple hundred bucks in seal and pump replacements.”

Jaime Py

Former President, Maine Energy Marketers Association

“What do electrification advocates suspect will happen during a widespread cold snap once heating demand is shouldered by the electric grid alone? Peak electricity demand would increase, dangerous outages could potentially occur, and depending on any other co-occurring winter weather events, responders could be stretched perilously thin.”

Paul Nazzaro

President, The Nazzaro Group

Infeasibility of Renewable Electrification

Electrification proponents will be hard pressed to point to a study indicating a viable path to net-zero emissions in the Northeast that involves the widespread electrification of home heating. A plan that substantially increases electricity demand in winter months, and then intends to meet that demand with 100 percent renewable electricity at a time when renewable generation is seasonally hamstrung, has been deemed problematic not only by leading energy experts (Source), but also by the operator of New England’s wholesale electricity market (Source: page 4-5). Even given today’s energy landscape, with renewable fuels generating only 9 percent of New England’s electricity (Source: page 3) and more than 85 percent of homes not heating with electricity at all (Source: page 2-3), ISO-New England has stated that “Fuel-security – the possibility that power plants won’t have or be able to get the fuel they need to run, particularly in winter – is the foremost challenge to a reliable power grid in New England” (Source: page 4).

As former US Secretary of Energy and founder of the MIT Energy Initiative, Ernest J. Moniz, asserted in a recent Boston Globe Op-ed: “[New England’s decarbonization] success would come earlier if the oil and gas industry uses its capabilities and workforce to advance net-zero solutions while avoiding stranded workers, stranded communities, and stranded assets.”

With renewable liquid heating fuel, that’s exactly what America’s farmers and fuelers have been working to achieve.

Infeasibility of Renewable Electrification

Electrification proponents will be hard pressed to point to a study indicating a viable path to net-zero emissions in the Northeast that involves the widespread electrification of home heating. A plan that substantially increases electricity demand in winter months, and then intends to meet that demand with 100 percent renewable electricity at a time when renewable generation is seasonally hamstrung, has been deemed problematic not only by leading energy experts (Source), but also by the operator of New England’s wholesale electricity market (Source: page 4-5). Even given today’s energy landscape, with renewable fuels generating only 9 percent of New England’s electricity (Source: page 3) and more than 85 percent of homes not heating with electricity at all (Source: page 2-3), ISO-New England has stated that “Fuel-security – the possibility that power plants won’t have or be able to get the fuel they need to run, particularly in winter – is the foremost challenge to a reliable power grid in New England” (Source: page 4).

As former US Secretary of Energy and founder of the MIT Energy Initiative, Ernest J. Moniz, asserted in a recent Boston Globe Op-ed: “[New England’s decarbonization] success would come earlier if the oil and gas industry uses its capabilities and workforce to advance net-zero solutions while avoiding stranded workers, stranded communities, and stranded assets.”

With renewable liquid heating fuel, that’s exactly what America’s farmers and fuelers have been working to achieve.

“What do electrification advocates suspect will happen during a widespread cold snap once heating demand is shouldered by the electric grid alone? Peak electricity demand would increase, dangerous outages could potentially occur, and depending on any other co-occurring winter weather events, responders could be stretched perilously thin.”

Paul Nazzaro

President, The Nazzaro Group

Cost to Consumer

For many homeowners, the cost of converting to an electric heat pump system is simply not affordable. According to the Massachusetts Clean Energy Council, despite significant incentives, there were only 622 whole-house heat pump conversions from 2014 through 2019 statewide. Of those, the average cost of installation was $20,428 per average 1,502-square-foot home – and, notably, due to the inability of heat pumps to provide substantial warmth on the coldest winter days (heat pumps begin to lose efficiency at 47 degrees F), 92 percent of converting homeowners kept their existing heating system as a supplemental heat source (Source). Compounding the matter, the exponential increase in the price of electricity due to increased winter peaking would make it impossible for consumers to retrieve the cost of conversion by way of increased efficiency, no matter how generous state or federal incentives may be (Source).

“Winter prices for wholesale power will continue to rise with added thermal loads coming from the conversion to cold climate air source heat pumps and electric vehicles. Everybody will pay the higher prices.”

Joseph Uglietto

President, Diversified Energy Specialists

Cost to Consumer

For many homeowners, the cost of converting to an electric heat pump system is simply not affordable. According to the Massachusetts Clean Energy Council, despite significant incentives, there were only 622 whole-house heat pump conversions from 2014 through 2019 statewide. Of those, the average cost of installation was $20,428 per average 1,502-square-foot home – and, notably, due to the inability of heat pumps to provide substantial warmth on the coldest winter days (heat pumps begin to lose efficiency at 47 degrees F), 92 percent of converting homeowners kept their existing heating system as a supplemental heat source (Source). Compounding the matter, the exponential increase in the price of electricity due to increased winter peaking would make it impossible for consumers to retrieve the cost of conversion by way of increased efficiency, no matter how generous state or federal incentives may be (Source).

“Winter prices for wholesale power will continue to rise with added thermal loads coming from the conversion to cold climate air source heat pumps and electric vehicles. Everybody will pay the higher prices.”

Joseph Uglietto

President, Diversified Energy Specialists

“The costs brought on by the electricity sector transformation and widespread technological change in end-use sectors will be more difficult to bear for low-income households, who already spend a higher-than average proportion of income on energy and transportation.”

Energy and Environmental Economics, Inc. & The Energy Futures Initiative, Inc.

Community and Economic Impact

Policy-driven electrification will disproportionately impact middle-class and low-income residents. With the per-household cost of electrification typically much higher in older homes that require retrofitting (relative to costs for newly constructed households), given the concentration of lower income consumers in older homes, the cost of policy-driven electrification will fall more heavily on lower income residents. Additionally, those who are unable to afford electrification will be left to pay for legacy infrastructure systems (e.g., natural gas distribution or heating oil delivery), the costs of which must be recovered from ever fewer customers, thereby driving up the price of delivered energy even beyond the added cost of carbon taxation. Such perilous market conditions would inevitably force thousands of liquid heating fuel retailers 97 percent of which are multigenerational family-owned businesses (Source) who employ an average of 52 people from their local communities (Source) to close their doors, placing the heating needs of their decades-long customers in the hands of a large utility company. By contrast, policy that supports renewable liquid heating fuel would come at little or no cost to consumers, help keep utility rates in check for all, and keep tens of thousands of workers employed through, and in fact stewards of, the clean energy transition.

Community and Economic Impact

Policy-driven electrification will disproportionately impact middle-class and low-income residents. With the per-household cost of electrification typically much higher in older homes that require retrofitting (relative to costs for newly constructed households), given the concentration of lower income consumers in older homes, the cost of policy-driven electrification will fall more heavily on lower income residents. Additionally, those who are unable to afford electrification will be left to pay for legacy infrastructure systems (e.g., natural gas distribution or heating oil delivery), the costs of which must be recovered from ever fewer customers, thereby driving up the price of delivered energy even beyond the added cost of carbon taxation. Such perilous market conditions would inevitably force thousands of liquid heating fuel retailers 97 percent of which are multigenerational family-owned businesses (Source) who employ an average of 52 people from their local communities (Source) to close their doors, placing the heating needs of their decades-long customers in the hands of a large utility company. By contrast, policy that supports renewable liquid heating fuel would come at little or no cost to consumers, help keep utility rates in check for all, and keep tens of thousands of workers employed through, and in fact stewards of, the clean energy transition.

“The costs brought on by the electricity sector transformation and widespread technological change in end-use sectors will be more difficult to bear for low-income households, who already spend a higher-than average proportion of income on energy and transportation.”

Energy and Environmental Economics, Inc. & The Energy Futures Initiative, Inc.

The average length of time a customer has been with the same heating fuel provider is 11 years.

There’s an old saying in New England that if you need help in a snow storm there are three numbers you can call: the police, the fire department, and your local heating fuel dealer. That’s why it’s not uncommon for retailers in the Northeast to have dozens of 40 and 50+ year customers. Nor is it uncommon for customers to provide their fuel dealers with the keys to their homes. These family-owned businesses have earned the trust of their customers by keeping them warm and safe during the coldest, snowiest winters on record (not to mention affordable budget and service plans, price protection, and 24/7 emergency service). When the next major winter storm hits, like clockwork, the roads will grow quiet but for the occasional passing of a snow plow or fuel delivery truck – two timeless fixtures of winter in New England.

Why Homeowners Love Their Fuel Dealers

“Horan Oil has been the gold standard for servicing and supplying our home heating needs for most of the past 28 years. From Jim Horan on down, this is a service oriented organization. It’s rare to find these days. Thanks to the entire Horan family for years of reliable and friendly service.”
– Stephen M, Google Review for Horan Oil (Stoughton, MA)
“We have been a customer of Alvin Hollis for over 40 years. They are fantastic! Always here when you need them and their customer service is hands down the best!”
– Connie L, Google Review for Alvin Hollis (S. Weymouth, MA)

“I’ve been a customer for 15 years and have never had an issue with any of the services provided. Staff both in the office or in the field have been courteous , professional, and timely (especially on those rare occasions when equipment has failed in the middle of the night with temperatures below freezing).”

– Paul N, Google Review for Windsor Fuel (Mineola, NY)

“Great company with fast service and great prices – and I love knowing I’m supporting a local, family-run business.”

– Danielle J, Facebook Review for Avery Energy (Crown Point, NY)

“I was just discussing with a neighbor how much I love my heating oil company, then it occurred to me… I should YELP this! They have been a dream to deal with! They respond promptly, are professional and are always pleasant to deal with on the phone. And this winter when I called them in a panic with my gauge near empty… they talked me off the ledge and showed up the next morning.”

– Denise G, Yelp Review for DuPuis Energy (Pawtucket, RI)

“Klebe is the best. The customer service is very pleasant, and (as a customer) you can tell you are appreciated. I have never been disappointed in them or their deliveries, even under the worst weather conditions. As a senior citizen, I completely trust this company and have been a customer for many years.”

– Linda B, Google Review for Klebe Fuel Company (Winchester, CT)

“Marcell Oil Company is a family run business and I couldn’t be happier with them. I recently called them to order fuel for one of their customers and they were so accommodating to my situation and so very nice. Every time we call, Ashlee, Olivia, or Sandy usually answer the phone and they are genuinely nice people. They actually care and that’s what means the most to me as a customer. Thanks so much Marcell family.”

– Judy F, Facebook Review for Marcell Oil Company (Pittsford, VT)

“We had a baby last year and Estes was incredibly kind and helpful when we missed a bill during that time. They also came immediately when we had an issue during that same period with our new baby. Grateful for their kindness and willingness to make things work for every family to feel safe and secure!”

– Alyssa W, Facebook Review for Estes Oil (York, ME)

“Williams Energy is an honest and reliable family owned business that has provided us with excellent oil delivery on time through the coldest of New England winters. Want great people to take care of you and your family? Use Williams Energy.”

– Loren S, Facebook Review for Willams Energy (Braintree, MA)

The average length of time a customer has been with the same heating fuel provider is 11 years.

There’s an old saying in New England that if you need help in a snow storm there are three numbers you can call: the police, the fire department, and your local heating fuel dealer. That’s why it’s not uncommon for retailers in the Northeast to have dozens of 40 and 50+ year customers. Nor is it uncommon for customers to provide their fuel dealers with the keys to their homes. These family-owned businesses have earned the trust of their customers by keeping them warm and safe during the coldest, snowiest winters on record (not to mention affordable budget and service plans, price protection, and 24/7 emergency service). When the next major winter storm hits, like clockwork, the roads will grow quiet but for the occasional passing of a snow plow or fuel delivery truck – two timeless fixtures of winter in New England.

Why Homeowners Love Their Fuel Dealers

“Horan Oil has been the gold standard for servicing and supplying our home heating needs for most of the past 28 years. From Jim Horan on down, this is a service oriented organization. It’s rare to find these days. Thanks to the entire Horan family for years of reliable and friendly service.”
– Stephen M, Google Review for Horan Oil (Stoughton, MA)
“We have been a customer of Alvin Hollis for over 40 years. They are fantastic! Always here when you need them and their customer service is hands down the best!”
– Connie L, Google Review for Alvin Hollis (S. Weymouth, MA)

“I’ve been a customer for 15 years and have never had an issue with any of the services provided. Staff both in the office or in the field have been courteous , professional, and timely (especially on those rare occasions when equipment has failed in the middle of the night with temperatures below freezing).”

– Paul N, Google Review for Windsor Fuel (Mineola, NY)

“Great company with fast service and great prices – and I love knowing I’m supporting a local, family-run business.”

– Danielle J, Facebook Review for Avery Energy (Crown Point, NY)

“I was just discussing with a neighbor how much I love my heating oil company, then it occurred to me… I should YELP this! They have been a dream to deal with! They respond promptly, are professional and are always pleasant to deal with on the phone. And this winter when I called them in a panic with my gauge near empty… they talked me off the ledge and showed up the next morning.”

– Denise G, Yelp Review for DuPuis Energy (Pawtucket, RI)

“Klebe is the best. The customer service is very pleasant, and (as a customer) you can tell you are appreciated. I have never been disappointed in them or their deliveries, even under the worst weather conditions. As a senior citizen, I completely trust this company and have been a customer for many years.”

– Linda B, Google Review for Klebe Fuel Company (Winchester, CT)

“Marcell Oil Company is a family run business and I couldn’t be happier with them. I recently called them to order fuel for one of their customers and they were so accommodating to my situation and so very nice. Every time we call, Ashlee, Olivia, or Sandy usually answer the phone and they are genuinely nice people. They actually care and that’s what means the most to me as a customer. Thanks so much Marcell family.”

– Judy F, Facebook Review for Marcell Oil Company (Pittsford, VT)

“We had a baby last year and Estes was incredibly kind and helpful when we missed a bill during that time. They also came immediately when we had an issue during that same period with our new baby. Grateful for their kindness and willingness to make things work for every family to feel safe and secure!”

– Alyssa W, Facebook Review for Estes Oil (York, ME)

“Williams Energy is an honest and reliable family owned business that has provided us with excellent oil delivery on time through the coldest of New England winters. Want great people to take care of you and your family? Use Williams Energy.”

– Loren S, Facebook Review for Willams Energy (Braintree, MA)

We have been able to depend on W.H. Riley for all of our heating needs. They are responsive to our calls for help and always have sent courteous and professional people to address our needs. We feel confident that they will always be there whenever we need them.

– Joanne B, Online Review for W.H. Riley (North Attleboro, MA)

Solution

There’s a responsible path to renewable heat.

Strategy

Education, legislation & continued innovation.

Action

Together, we can forge a better future for all.

We are Project Carbon Freedom.

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