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 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?
- (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 D6751. If you would like to use the trademark Bioheat® please contact NORA at email@example.com to receive the sublicense agreement.
To Learn more about biodiesel visit the National Biodiesel Board
The NORA fee is assessed on the home heating oil gallons in the blend.
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.
These states also participate, but they do so with a retail collection system.
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 782C.
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: For form 782A, mail to: NORA, 600 Cameron St., 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 % of the product I sell to mines and farmers, and only 5 % 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.
Question: What Form?
Use form 782A. If you download this form, it will do calculations and then will remember information, and you can submit it by pressing send button. It will be sent from your email, so you will also have a record.
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 firstname.lastname@example.org describing your operation, make sure to include your address.
Question: Where do I send payments?
- By Mail: National Oilheat Research Alliance, 600 Cameron St, Alexandria, VA 22314
- By Courier: National Oilheat Research Alliance, 600 Cameron St, Alexandria, VA 22314
- By Wire: International and Domestic Wire Instructions
Contact NORA at email@example.com
- By ACH: Please contact firstname.lastname@example.org to obtain account numbers for ACH transfers.
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.