U.S. EPA Waives Fuel Rules in Response to BP’s Whiting Refinery Shutdown

The U.S. Environmental Protection Agency on Aug. 27 issued an emergency fuel waiver to ease fuel shortages in four states whose supply of gasoline has been affected due to BP’s Whiting refinery shutdown. The emergency waiver is in response to a fuel supply emergency by a fire-led shutdown. The waiver, which began Aug. 27 and ends Sept. 15, will ensure adequate fuel supply in Illinois, Michigan, Indiana, and Wisconsin. The waiver may be modified, terminated, or extended based on the circumstances.

The agency waived gasoline volatility standards, commonly referred to as Reid vapor pressure, for conventional and reformulated gasoline to minimize disruptions to the supply of gasoline. In the waiver area, regulated parties are permitted to produce, sell, and distribute gasoline with a Reid vapor pressure of no greater than 11.5 pounds per square inch or 12.5 if the gasoline contains 9-15 percent ethanol. During the summer ozone season, which runs from June 1 to Sep. 15, the agency regulates gasoline vapor pressure at retail stations. By reducing evaporative gasoline emissions, the regulation contributes to reducing ground-level ozone and related health issues.

As part of the response to fuel supply disruptions caused by refinery and pipeline infrastructure damage resulting from hurricanes or other natural disasters, EPA and the U.S. Energy Department issue emergency waivers of certain fuel standards to affected areas. Temporary waivers are issued to ensure adequate fuel supplies, especially for emergency vehicles. The BP refinery shutdown has created extreme and unusual circumstances affecting fuel supply, which have led to the grant of a temporary waiver to ensure that gasoline supplies are available in the affected areas.

In order to mitigate such impacts, the Clean Air Act includes strict criteria for when fuel waivers can be granted. The act also requires that waivers be limited as much as possible in terms of their geographic scope and duration until normal fuel supplies can resume in the region.