DEP Asks EPA For Waiver From Low RVP Gasoline In Face Of Shortages In Pittsburgh

The Department of Environmental Protection this week asked the U.S. Environmental Protection Agency for a temporary waiver of the low RVP (reid vapor pressure) gasoline requirement in the seven county Pittsburgh region due to shortages of fuel meeting the requirement that developed over the last week.

          In a May 12 letter to EPA Administrator Lisa Jackson, DEP Secretary Michael Krancer wrote, "We have information indicating that the shortages and disruption of the RVP 7.8 gasoline supply is due to the normal seasonal turnaround from winter to summer fuel stock.  This situation was compounded by disruptions from the Buckeye/Laurel pipeline and some eastern Pennsylvania/ New Jersey refinery outages from early-to-mid-March until late April 2011.  The conditions have resulted in delays ranging from five to seven days for the delivery of summertime gasoline to various PA terminals in southwestern Pennsylvania.
            "Presently, approximately five gasoline terminals of the nine terminals contacted in the region are either at cautiously low levels of summertime gasoline or completely out of the compliant fuel.  Two Gulf Oil L.P. and two BP terminals, as well as Guttman Oil report that they are out of RVP 7,8 product or will be out by tomorrow.  Other unbranded haulers report that they have very few locations to get 7.8 RVP gasoline or have fallen very far behind due to travel distances.  In addition, pipeline deliveries from eastern Pennsylvania to the Pittsburgh region, while expected to increase, are not anticipated in sufficient volume to meet full demand until mid to late May 2011.
            "Wholesale distributors in neighboring conventional areas outside of the seven-county Pittsburgh-Beaver Valley area are currently unable to provide an adequate supply of compliant summertime gasoline.  However, supplies of conventional gasoline are available for immediate distribution into the region.
            "In light of the existing fuel supply circumstances, the requested temporary waiver is "clearly necessary to serve the public interest."  My staff believes that the action would have no negative consequences for either the health of the residents of southwestern Pennsylvania or for the attainment status of the region."
           The counties affected include: Allegheny, Armstrong, Beaver, Butler, Greene, Lawrence and Washington.
          A copy of the letter is available online.
            Update - EPA Denies Request, Congressional Delegation Urges Action
            Late Friday, staff from EPA denied the request saying suppliers they contacted said deliveries will be made.  Denying the request means pushing gasoline prices even higher in the Pittsburgh area as the shortage of complying gasoline continues.
            In response, the Western Pennsylvania’s congressional delegation announced it would continue urging the Environmental Protection Agency to suspend a requirement that gasoline distributors begin selling a “summer” blend of fuel despite shortages affecting local stations.
            The members of the delegation, Congressmen Jason Altmire (D), Mark Critz (D), Mike Doyle (D), Mike Kelly (R), and Tim Murphy (R) released the following statement:
            “Rising gas prices are already causing pain at the pump for Pennsylvania’s families. While disappointed in today’s decision by the EPA, we urge the agency to monitor on a moment-by-moment basis the supplies in Western Pennsylvania and react swiftly should the situation deteriorate. We will work together to do all that we can to ensure this issue is resolved quickly.”
            In addition, U.S. Senators Bob Casey (D) and Pat Toomey (R) support DEP's waiver request.
            NewsClips: EPA Denies State Waiver To Sell Winter Gasoline
                                Gas Supply Shortage Hits Pittsburgh Region
                                State Asks EPA To Extend Sale Of Winter Gasoline
                                EPA Waiver Could Solve Pittsburgh Gas Shortage
                                New Gas Pump In Harrisburg Lets You Choose Ethanol Level

5/16/2011

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