Federal, State Fuel Waivers & Emergency Rules Issued to Address Gasoline Supply, Pricing Issues

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May 12, 2021

Tallahassee, Fla. – Late yesterday, federal and state waivers and emergency rule changes were filed allowing the sale of remaining winter blend fuel that does not currently comply with federal regulations, in an effort to mitigate gasoline supply, price, and sales disruptions related to the Colonial Pipeline shutdown and other issues.

Federal Action: On May 11, the U.S. Environmental Protection Agency notified states and the U.S. Department of Energy that it issued a waiver under the federal Clean Air Act allowing higher volatility (known as winter blend) gasoline to be transported and sold throughout the current fuel shortage situation. This was a required first step before state agencies could take action, including the Florida Department of Agriculture and Consumer Services (FDACS).

State Action: Later on May 11, FDACS filed emergency rule change 5JER21-3, bringing state regulations in line with the federal waiver to allow remaining winter blend fuel stocks to be sold, including winter blend fuel held at a Pensacola fuel terminal not for sale due to Clean Air Act non-compliance. This emergency rule change, signed and certified by Florida Agriculture Commissioner Nikki Fried and filed yesterday with the Florida Department of State, is intended alleviate some fuel supply and pricing issues particularly in Northwest Florida.

“Now that the EPA has issued its waiver of federal regulations on gasoline standards, we took immediate action to ensure that remaining winter blend gasoline can make its way to gas stations and into Floridians’ cars,” said Commissioner Nikki Fried. “As the state agency regulating gas stations in Florida, we are in close, ongoing contact with the EPA, the U.S. Department of Energy, and the petroleum industry on this matter. We thank our federal, state, and private sector partners for working to help alleviate the gasoline supply and pricing issues caused by numerous factors, from the Colonial Pipeline shutdown to a shortage of fuel truck drivers. Most importantly, consumers can prevent strain on fuel supplies by not panic-buying gas, not hoarding gas, and not forming long lines at gas stations, and fuel continues to flow around Florida.”

Documents: A folder of all related documents, including the EPA waiver letter and state rule change documents including the rule text, justification statements, and volatility standards, may be found here.

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