Motor Vehicle Fuels Waivers

1. Motor Vehicle Fuels Waivers Fuels Workshop December 5-6, 2006

2. Fuel Waiver Process • New statutory waiver authority effectively codifies prior practice • Procedure and Framework for Reviewing Requests for No Action Assurance to Address a Temporary Fuel Supply Shortagewww.epa.gov/compliance/resources/policies/civil/caa/mobile/noactionpolicy.pdf • State should verify that actual shortage exists • Independent marketers often seek relief because of high prices • Calls to terminals, pipelines and major oil companies • Identify alternative fuel that is available • Caveat: A waiver may create shortage of the alternative fuel • Fuel waiver request should be in writing • Call EPA if you think you may have a supply problem, we will help you through the process

3. Fuels Waivers/Enforcement Discretion • To address fuel supply emergencies (e.g., hurricane, pipeline break) • Historically, EPA exercised enforcement discretion • Energy Act of 2005 authorizes fuels waivers • Extreme and unusual circumstance prevents distribution of adequate fuel supply (generalized supply emergency) • The result of a natural disaster, Act of God, or pipeline or refinery failure • Could not have been foreseen or prevented by prudent planning • Waiver must be in the public interest • Smallest geographic area & shortest time (maximum 20 days duration) • To address temporary shortfalls of supply (not to address fuel price)

4. EPA Contacts • During business hours: • EPA Air Enforcement Division • 202-564-2260 • OTAQ Transportation and Regional Programs Division • 734-214-4956 • Outside of normal business hours • EPA Emergency Operations Center • 202-564-3850

5. Clean Air Act Fuel Standards (That have been the Subject of Waivers) • Gasoline volatility • Summer only (June 1 through Sept 15) • Reformulated gasoline • Separate summer/winter standards • Highway diesel sulfur • State fuel standards • If included in State Implementation Plan

6. Potential Causes of Fuel Shortages • Extreme and unusual circumstances, such as hurricanes, can result in: • Refineries shut-down • Ship deliveries interrupted • Loss of electrical power to refineries / pipelines • Pipeline break

7. Process for Seeking a Fuels Waiver • State submits written request to EPA • Identify who is unable to obtain fuel • Alternative fuel sources investigated • Specific waiver being requested: fuel standard and duration • EPA ground-truthing • Consultation with DOE • Waiver issued by EPA, distributed widely by email & WEB

8. Written Requests • Written waiver requests are normally made by, or on behalf of, the Governor of the affected state(s). • EPA works closely with the affected states • Waiver requests must be sent to the address and to the fax numbers indicated on the EPA web site (see last slide)

9. 2005 Hurricane Fuels Waivers • 27 fuels waivers issued • Gasoline volatility; highway diesel sulfur; reformulated gasoline; state fuel standards • Most for state or region • Quick turnaround (1 – 2 days, if necessary) • Some waiver requests were not supported by ground-truthing

10. 2006 Fuel Waiver Requests • President directed EPA to use waiver authority • Administrator letter to 50 governors, said waivers must meet statutory criteria • Tight RFG supplies in certain markets • Primarily mid-Atlantic, resulted from switch to ethanol-based RFG • Requests from Governors of PA & MD, and VA Congressmen • Request from WI Congressmen, based on fuel price only • Widespread fuel shortages (outages) were not found; therefore, no waivers were granted

11. FAQs on the EPA Web Site • http://www.epa.gov/compliance/resources/faqs/civil/fuelwaiver.html • Includes text of the statutory waiver provision & information on when a waiver request may be appropriate, contact information,etc.