Product Coverage : Border Questions : Refunds : Exclusionary List : Payments : Miscellaneous

 

PRODUCT COVERAGE

Question: Is kerosene covered by the NORA assessment?
Answer: Kerosene is not covered if it is undyed when sold.  If it is dyed and sold, then it is subject to the fee.  In Idaho, Indiana, Nevada, and Washington kerosene is covered when it is sold for heating purposes.

Question: How about diesel?
Answer: Diesel is covered if it is dyed red.

Question: What products are covered?
Answer:

  •  (Dyed) High sulfur diesel and heating oil(#1, #2 and #4)  The collection on #4 became effective January 1, 2015.
  •  (Dyed) Low sulfur and Ultra low sulfur heating oil (both #1 and #2). This includes any products used to make a blended heating oil whether for low sulfur (.2%) or for low cloud or pour (by adding kerosene).
  •  BioHeat® Fuel blended into heating oil is also subject to the fee.
  • If an ultra low sulfur fuel can be used as both heating oil and diesel it is subject to the fee.
  • Refunds will be provided if the fuel is used in an exempt or non-heating use.  

If product is destined for a state not included in NORA should the fee be charged?
No, NORA is a destination state system.

For the retail states, should wholesalers collect on sales they make to resellers or retailers?
No, the last seller is responsible for payment in the retail collection states.

Question: How about BioHeat® Fuel?
Answer: BioHeat® Fuel is also subject to the fee. BioHeat® is the Blend of pure biodiesel with conventional high or low sulfur home heating oil. The heating oil used in the production of the Blended Fuel must meet ASTM D396, and the biodiesel used in the production of the Blended Fuel must meet ASTM D 6751. If you would like to use the trademark BioHeat® please contact NORA to receive the sublicense Agreement.
 
To Learn more about Biodiesel visit the National Board of Biodiesel.
The fee is assessed on the home heating oil gallons in the blend.

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BORDER QUESTIONS

Question:  What states participate in NORA?
The listed states participate in NORA.  The first set of states use a wholesale collection system to collect the fee.

Connecticut
Delaware
Kentucky
Maine
Maryland
Massachusetts
Michigan
New Hampshire
New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Vermont
V
irginia
Wisconsin
Washington D.C
These states also participate, but they do so with a retail collection system.
Idaho
Indiana
Nevada
Washington State

Question: I import some fuel from Canada in a truck, should I pay the fee directly? Should I be on the exclusionary list?
Answer: If you are importing only by truck, you should not be on the exclusionary list, however, your should pay NORA on any imports that you make that are not assessed by your supplier. You should use form 782 C.

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REFUNDS

Question: What are refunds for?
Answer: Refunds are available to resellers who purchase a product on which the NORA assessment has been imposed, and when the product is not sold for heating oil uses. You can collect on the following dates: March 1st to February 6th and from September 1st to current.

Question: What are some examples of uses which are not heating oil?
Answer: Non heating oil uses include fuel for industrial purposes, use on a farm to grow plants or heat a greenhouse or barn, use in a boat, use in a bus, construction equipment, trains, or any use where the heat is not being generated for heating water for either heating or domestic hot water use, or heating space for human habitation.

Question: When will refunds be issued?
Answer: Refunds are to be issued on a monthly basis, with the first refunds issued July 25th. NORA would like to issue refunds sooner, however, no funds are available for refunds prior to that date.

Question: Do I have to keep records to justify a refund?
Answer: Yes, NORA may need to verify refunds, and will need records to verify. However, we believe that your own corporate records will be sufficient. An audit standards meeting is planned for this summer to address this issue in detail.

Question: Are there penalties for sending in false refund claims?
Answer: Sending in a false refund claim is mail fraud, and is thus a federal crime.

Question: Where do I send my refund application?
Answer: Form 782A : NORA,, c/o Halt, Buzas and Powell, 1199 N. Fairfax Street, 10th Floor, Alexandria, VA  22314.

Question: I sell heating oil to a state government that uses it to heat a library, can I get a refund?
Answer: No, the NORA assessment is built into the price of heating oil, and there are no special refunds. Additionally, NORA will conduct research on commercial heating systems that will directly benefit governments that use Oilheat for their heating purposes.

Question: I am a marketer and sell nearly 95 percent of the product I sell to mines and farmers, and only 5 percent is sold for heating oil. Should I be on the exclusionary list?
Answer: You should not be on the exclusionary list. However, NORA will try to develop rules that limit the amount of refunds that you must file for. Additionally, NORA will consider expediting refunds for marketers who need speedier refunds.

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EXCLUSIONARY LIST

Question: What is the exclusionary list?
Answer: The list that NORA utilizes for collection is composed of prime wholesalers. These people transport product between markets either by pipeline or barge and therefore are prime wholesalers. Additionally, NORA has added wholesalers to the list that are major suppliers to the tug and barge industry, if they sell no heating oil. Click here to view list

Question: How do I get on the list?
Answer: If you qualify to be on the list, send an e-mail to info@nora-oilheat.org describing your operation, make sure to include your address.

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PAYMENTS

Question: Where do I send payments?

By Mail: National Oilheat Research Alliance, P.O. Box 826136, Philadelphia, PA 19182-6136

By Courier: PNC Bank, Route 38 and East Gate Drive, Moorestown, NJ 08057

By Wire:  International and Domestic Wire Instructions
ABA routing #-026009593 (If domestic wire use ABA only) Swift- BOFAUS3N (if international use Swift code)
Bank of America N.A., 100 West 33rd Street, NY, NY 100001
For further credit to: This is a very important step DO NOT OMIT
Intermediary bank
Acct # - 6550113516
Acct name – Merrill Lynch
For final Beneficiary:
Client’s acct number # - 71307J82
Clients name - National OilHeat Research Alliance

By ACH

Question: What is NORA's taxpayer identification number
Answer: 54-2024246

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MISCELLANEOUS

Question: Will NORA audit refunds and payments?
Answer: NORA will be watching all forms that arrive and comparing it to different information sources. If a problem is perceived, NORA will audit. NORA has the right to impose penalties for improper payments, and knowingly sending in false information is fraud, and may be a criminal act.

Question: The NORA system is designed to have fee free exchanges between wholesalers on the exclusionary list and then have the fee applied on sales to wholesalers or resellers who are not on the list.  If appropriate and if they sell the fuel for non-heating uses they may apply for refunds on Form 782A.  However, if they resell the fuel to a party on the exclusionary list, what should happen?
Answer:  In this case, the fee has been assessed on the product and is now below the rack.  The party below the rack, Reseller A, has purchased fuel from Wholesaler B.  On this sale, Wholesaler B assesse the fee and invoices it to Reseller A.  Reseller A then takes the product and delivers it to a customer of Wholesaler C, who is on the exclusionary list.  In this scenario, Wholesaler C should track incoming sales with the fee and use the adjustment line to make any corrections.  If this results in a required refund, this should be clearly indicated on the form.

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