(8-22-80)

2. Please indicate the amount of FISL loans originated by your bank (from line 2, column B, of the annual "call report", OE Form 1166-2, submitted to the Office of Education) for the years indicated.

* Denotes lenders that were making no student loans prior to the advent of the STHEA secondary market program.

STATEMENT

of the

EMPIRE STATE PETROLEUM ASSOCIATION

INDEPENDENT FUEL TERMINAL OPERATORS ASSOCIATION

NEW ENGLAND FUEL INSTITUTE

PENNSYLVANIA PETROLEUM ASSOCIATION

and

NORTHEAST COALITION FOR ENERGY EQUITY

on the

"DEFICIT REDUCTION PACKAGE"

before the

COMMITTEE ON FINANCE

UNITED STATES SENATE

Washington, D.C.

December 30, 1983

The Empire State Petroleum Association ("ESPA"),

the Independent Fuel Terminal Operators Association
("IFTOA"), the New England Fuel Institute ("NEFI")

the Pennsylvania Petroleum Association ("PPA"),

**

ESPA represents over 500 independent retail home heating oil marketers and approximately 400 independent gasoline jobbers who serve every part of New York State. New York has a greater number of oil-heated homes and consumes more home heating oil than any other state.

IFTOA is an association composed of 16 companies
which operate deepwater oil terminals along the
East Coast from Maine to Florida. None is affiliated
with a major oil company. Members are primarily
marketers of residual fuel oils (Nos. 4, 5 and 6
fuels) and home heating oil (No. 2 fuel); several
companies also market significant volumes of gasoline
at wholesale and retail levels. Members handle near-
ly 50% of the non-utility residual fuel oil shipped
to the East Coast, nearly 60% of the non-utility
residual fuel oil shipped to New England, 25% of the
No. 2 heating oil shipped to the East Coast, and more
than 50% of the No. 2 heating oil shipped to New Eng-
land.

***/ NEFI is an association of 1,132 independent retail and wholesale home heating oil distributors throughout the six New England states. The independent marketers serve 2.12 million retail home heating oil consumers and distribute 86% of the approximately 2.9 billion gallons of home heating oil sold in the New England area at the retail level and 47% of the gallonage sold at wholesale. Oil is used to heat 69% of all buildings in New England, both commercial and residential.

****/ PPA is the associaton of independent fuel oil and gasoline marketers in Pennsylvania. It represents over 500 petroleum marketers. Pennsylvania is the second largest home heating oil consuming state in the country.

*****/ The Northeast Coalition is an ad hoc group representing fuel oil marketers throughout the Northeast. It seeks parity in prices for oil and gas in residential markets.

submit comments on the "Deficit Reduction Package" currently

under consideration by this Committee.

Our trade associa

tions represent marketers of refined petroleum products on

the East Coast.

Specifically, we wish to comment on the

Committee's proposal to impose a 2.5 percent tax on energy sources for three years beginning in 1985.

As the Committee knows, last January the President proposed a standby tax plan which would have imposed a $5 per barrel excise tax on domestic and imported oil under certain future conditions. In addition to this "contingency

In

tax," certain Members of Congress proposed a $5-$10 per barrel import fee on crude oil and refined petroleum products as a means of reducing the federal budget deficit. late October, this Committee itself reviewed a proposal for a $3 per barrel fee on imported oil and a $1 per barrel tax on domestic oil. We further understand that on December 13 Secretary of The Treasury Donald Regan announced that the President will include a contingency tax in the 1985 Budget. While no specific tax was mentioned, it is possible that the $5 per barrel fee on oil will be considered.

Our associations strongly oppose any import fees because such fees would be inflationary, would limit the economic recovery and would be an inequitable and inefficient method of raising federal revenue. Accordingly, we urge this Committee, for the reasons set forth below, to reject such proposals.