National Oilheat Research Alliance

SEE PAGE 2, PART III, LINE 1

RESEARCH, DEVELOPMENT, AND DEMONSTRATION: IN 2021, THE ALLIANCE GRANTED OR EXPENDED $2,466,539 FOR THE RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM, INCLUDING $1,747,285 IN NATIONAL SPENDING OF PAST YEAR'S ASSESSMENT REVENUE. IN 2021, THE ALLIANCE VOTED TO REALLOCATE UP TO $1.0 MILLION IN NATIONAL SPENDING NOT YET INCURRED FOR RESEARCH, DEVELOPMENT, AND DEMONSTRATION TO THOSE STATES THAT HAVE UTILIZED THEIR BUDGETED GRANTS FOR RESEARCH, DEVELOPMENT, AND DEMONSTRATION FOR ADDITIONAL RESEARCH, DEVELOPMENT, AND DEMONSTRATION SPENDING. ANY AMOUNT OF THE $1.0 MILLION NOT SPENT IN 2021, WILL BE REALLOCATED IN 2022 IN ADDITION TO UP TO ANOTHER $1.0 MILLION FOR GRANTS TO STATES THAT HAVE USED THEIR RESEARCH, DEVELOPMENT, AND DEMONSTRATION BUDGETS...SEE CONTINUATION ON SCHEDULE O......CONTINUED FROM PART III... AMOUNTS OF THESE ADDITIONAL GRANTS NOT SPENT AT THE END OF 2022 WILL BE FORFEITED. IN 2021, THE ALLIANCE GRANTED $307,545 IN SUCH FUNDS TO STATES THAT IS INCLUDED IN THE AMOUNTS GRANTED OR EXPENDED ABOVE. THE ALLIANCE ALSO BUDGETED $1,270,000 IN ADDITIONAL NATIONAL SPENDING FROM 2021 ASSESSMENTS REVENUE TO BE SPENT SUBSEQUENT TO YEAR-END FOR THE RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM, MAKING THE TOTAL FOR 2021, 31 PERCENT OF NET ASSESSMENTS REVENUE AFTER DEDUCTING THE AMOUNT ADDED TO NET ASSETS UNAVAILABLE FOR OBLIGATION UNTIL OCTOBER 1, 2028. ADDITIONALLY, UNALLOCATED STATE REBATES OF 2021 ASSESSMENTS REVENUE WILL BE USED FOR THE RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.THE PUBLIC LAWS 113-79 AND 115-334 REQUIRE THE ALLIANCE TO ENSURE NOT LESS THAN 30 PERCENT OF THE ASSESSMENTS COLLECTED FOR EACH CALENDAR YEAR AFTER THE AMOUNTS REQUIRED TO BE ESCROWED AND NOT OBLIGATED UNTIL OCTOBER 1, 2028, UNDER PUBLIC LAW 115-334 ARE USED BY QUALIFIED STATE ASSOCIATIONS OR THE ALLIANCE TO CONDUCT RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACTIVITIES RELATING TO OILHEAT FUEL, INCLUDING THE DEVELOPMENT OF ENERGY-EFFICIENT HEATING SYSTEMS TO BE PLACED INTO THE MARKETPLACE. THIS ALSO INCLUDES THE ALLIANCE, IN CONJUNCTION WITH AN INSTITUTION OR ORGANIZATION ENGAGED IN BIOFUELS RESEARCH, TO DEVELOP CONSUMER EDUCATION MATERIALS DESCRIBING THE BENEFITS OF USING BIOFUELS AS OR IN OILHEAT FUEL BASED ON THE TECHNICAL INFORMATION DEVELOPED.

HEATING OIL EFFICIENCY AND UPGRADE: IN 2021, THE ALLIANCE GRANTED OR EXPENDED $1,055,724 FOR THE HEATING OIL EFFICIENCY AND UPGRADE PROGRAM, INCLUDING $55,679 IN GRANTS AND SPENDING OF PAST YEAR'S ASSESSMENTS REVENUE. THE ALLIANCE ALSO BUDGETED $60,000 IN ADDITIONAL NATIONAL SPENDING FROM 2021 ASSESSMENTS REVENUE TO BE SPENT SUBSEQUENT TO YEAR-END FOR HEATING OIL EFFICIENCY AND UPGRADE PROGRAM, MAKING THE TOTAL FOR 2021, 17 PERCENT OF NET ASSESSMENTS REVENUE AFTER DEDUCTING THE AMOUNT ADDED TO NET ASSETS UNAVAILABLE FOR OBLIGATION UNTIL OCTOBER 1, 2028. ADDITIONALLY, UNALLOCATED STATE REBATES OF 2021 ASSESSMENTS REVENUE WILL BE USED FOR THE HEATING OIL EFFICIENCY AND UPGRADE PROGRAM....SEE CONTINUATION ON SCHEDULE O......CONTINUED FROM PART III... THE PUBLIC LAWS 113-79 AND 115-334 REQUIRE THE ALLIANCE TO ENSURE NOT LESS THAN 15 PERCENT OF THE ASSESSMENTS COLLECTED FOR EACH CALENDAR YEAR AFTER THE AMOUNTS REQUIRED TO BE ESCROWED AND NOT OBLIGATED UNTIL OCTOBER 1, 2028, UNDER PUBLIC LAW 115-334 ARE USED BY QUALIFIED STATE ASSOCIATIONS OR THE ALLIANCE TO CARRY OUT PROGRAMS TO ASSIST CONSUMERS (I) TO MAKE COST-EFFECTIVE UPGRADES TO MORE FUEL EFFICIENT HEATING OIL SYSTEMS OR OTHERWISE MAKE COST-EFFECTIVE MODIFICATIONS TO AN EXISTING HEATING SYSTEM TO IMPROVE THE EFFICIENCY OF THE SYSTEM, (II) TO IMPROVE ENERGY EFFICIENCY OR REDUCE ENERGY CONSUMPTION THROUGH COST-EFFECTIVE ENERGY EFFICIENCY PROGRAMS FOR CONSUMERS, OR (III) TO IMPROVE THE SAFE OPERATION OF A HEATING SYSTEM.

CONSUMER EDUCATION, SAFETY, AND TRAINING: IN 2021, THE ALLIANCE GRANTED OR EXPENDED $1,670,758 FOR THE CONSUMER EDUCATION, SAFETY, AND TRAINING PROGRAM, INCLUDING $47,836 IN GRANTS AND SPENDING OF PAST YEAR'S ASSESSMENT REVENUE. THE ALLIANCE ALSO BUDGETED $310,000 IN ADDITIONAL NATIONAL SPENDING FROM 2021 ASSESSMENTS REVENUE FOR THE CONSUMER EDUCATION, SAFETY, AND TRAINING PROGRAM, OF WHICH $100,438 REMAINED UNSPENT AS OF DECEMBER, 31, 2021, MAKING THE TOTAL FOR 2021 27 PERCENT OF NET ASEESSMENTS REVENUE AFTER DEDUCTING THE AMOUNT ADDED TO NET ASSETS UNAVAILABLE FOR OBLIGATION UNTIL OCTOBER 1, 2028THE PUBLIC LAWS 113-79 AND 115-334 REQUIRE THE ALLIANCE TO ENSURE NOT MORE THAN 30 PERCENT ...SEE CONTINUATION ON SCHEDULE O......CONTINUED FROM PART III... OF THE ASSESSMENTS COLLECTED FOR EACH CALENDAR YEAR AFTER THE AMOUNTS REQUIRED TO BE ESCROWED AND NOT OBLIGATED UNTIL OCTOBER 1, 2028, UNDER PUBLIC LAW 115-334 ARE USED (I) TO CONDUCT CONSUMER EDUCATION ACTIVITIES RELATING TO OILHEAT FUEL, INCLUDING PROVIDING INFORMATION TO CONSUMERS ON ENERGY CONSERVATION STRATEGIES, SAFETY, NEW TECHNOLOGIES THAT REDUCE CONSUMPTION OR IMPROVE SAFETY AND COMFORT, THE USE OF BIOFUEL BLENDS, AND FEDERAL, STATE, AND LOCAL PROGRAMS DESIGNED TO ASSIST OILHEAT FUEL CONSUMERS, (II) TO CONDUCT WORKER SAFETY AND TRAINING ACTIVITIES RELATING TO OILHEAT FUEL, INCLUDING ENERGY EFFICIENCY TRAINING, (III) TO CARRY OUT OTHER ACTIVITIES RECOMMENDED BY THE SECRETARY OF ENERGY, OR (IV) TO ESTABLISH A DATA COLLECTION PROCESS TO TRACK EQUIPMENT, SERVICE, AND RELATED SAFETY ISSUES TO DEVELOP MEASURES TO IMPROVE SAFETY.

IN ADDITION TO THE SPECIFIC PROGRAM COMMITMENTS DISCUSSED PREVIOUSLY, THE ALLIANCE COMMITTED $1,255,095, WHICH IS 20 PERCENT OF NET 2021 ASSESSMENT REVENUE AFTER DEDUCTING THE AMOUNT ADDED TO NET ASSETS UNAVAILABLE FOR OBLIGATION UNTIL OCTOBER 1, 2028, FOR STATE REBATES THAT HAVE NOT YET BEEN ALLOCATED TO A PROGRAM SPECIFIED IN PUBLIC LAW 115-334. THE ALLIANCE PLANS TO ALLOCATE THESE STATE REBATES TO THE RESEARCH, DEVELOPMENT, AND DEMONSTRATION AND/OR HEATING OIL EFFICIENCY AND UPGRADE PROGRAMS. THESE FUNDS WILL BE ALLOCATED BETWEEN PROGRAMS IN ACCORDANCE WITH THE REQUIREMENTS OF PUBLIC LAWS 113-79 AND 115-334 AS DISCUSSED PREVIOUSLY.