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Frequent Questions about Fuels Waivers
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What is a fuels waiver?
Who can issue a fuels waiver?
When can a fuels waiver be issued?
What fuels requirements may be affected by a fuels waiver, and how does a waiver help a fuel shortage?
Can a state grant a waiver of a state implementation plan (SIP) fuels program without EPA involvement?
Who can request a fuels waiver?
How should EPA be contacted
to discuss a possible fuel supply issue?
When should EPA be contacted
to discuss a possible fuel supply issue?
What is the procedure for formally requesting a fuels waiver?
Where should written fuels waiver requests be submitted?
What are the legal criteria
and conditions for fuels waivers?
What is a fuels waiver?
In the event of a fuel supply emergency, EPA, with the concurrence of the Department of Energy, may temporarily waive a fuel or fuel additive requirement if doing so will alleviate the fuel supply emergency. Clean Air Act Section 211(c)(4)(C), which authorizes fuels waivers, specifies the criteria for granting a fuels waiver, and the conditions that must be included in a fuels waiver.
Who can issue a fuels waiver?
EPA, with the concurrence of the Department of Energy, is authorized to issue a fuels waiver under Clean Air Act Section 211(c)(4)(C).
When can a fuels waiver be issued?
A fuels waiver can be issued only when the criteria specified in the Clean Air Act have been met. In general, these criteria allow a fuels waiver only to address a temporary emergency fuel supply shortage that exists throughout a state or region that was caused by an unusual situation such as an Act of God, and that could not have been avoided by prudent planning. "Spot" or localized shortages generally are not fuel supply disruptions for which a waiver may be issued. A fuel supply disruption that meets the criteria for a waiver must be one that results in a generalized supply emergency. For example, in 2005 EPA issued fuels waivers in those areas of the country that experienced fuel shortages as a result of the extensive damage Hurricanes Katrina and Rita caused to refineries and pipelines.
Fuels waivers cannot be issued to address concerns regarding the price of fuel.
What fuels requirements may be affected by a fuels waiver, and how does a waiver help a fuel shortage?
EPA has promulgated various requirements for motor vehicle fuel under the Clean Air Act, which apply to both gasoline and diesel fuel. However, most of these requirements apply only during part of the year or to only certain geographic areas. If the fuels waiver criteria have been met, EPA may grant a waiver to allow use of a fuel that normally is not allowed in a particular time period or geographic area.
For example, the volatility of gasoline is controlled each year during the high ozone season of June 1st through September 15th. In addition, the gasoline used in certain urban areas is subject to volatility standards that are more stringent than in surrounding rural areas. A fuels waiver may allow use of higher volatility gasoline from rural areas to address a fuels supply shortage in an urban area. Similarly, a waiver of the summer volatility requirements could allow winter grade gasoline to be used during the summer high ozone season. However, gasoline volatility standards are necessary to control the emissions of volatile organic compounds (VOC), which contributes to ozone pollution. Fuels waivers that allow use of gasoline with higher volatility may result in increased VOC emissions.
For this reason, the Clean Air Act provides strict criteria for when fuels waivers may be granted, and requires that waivers be limited as much as possible in terms of their geographic scope and duration.
Can a state grant a waiver of a state implementation plan (SIP) fuels program without EPA involvement?
No. State fuels programs that are part of a SIP are federally enforceable, and the requirements cannot be waived unless waivers are issued by both EPA and the state.
Who can request a fuels waiver?
EPA works closely with officials of the state affected by a potential fuel supply emergency. Except in unusual or emergency circumstances, a formal request for a fuels waiver is made by or on behalf of the Governor of an affected state after consultation with EPA.
How should EPA be contacted to discuss a possible fuel supply issue?
During normal business hours (Monday through Friday, 8 am to 5 pm) the first point of contact for obtaining information about a fuels waiver request is the EPA Air Enforcement Division, at 202-564-2260, or the Transportation and Regional Programs Division, at 734-214-4956. Outside of normal business hours, the point of contact is the EPA Emergency Operations Center, at 202-564-3850, which is able to communicate with the EPA officials who provide assistance regarding fuels waiver requests.
When should EPA be contacted to discuss a possible fuel supply issue?
EPA should be contacted as soon as it appears that there may be a fuel supply shortage. Early notification will allow EPA to provide guidance to an affected State regarding a possible fuel waiver request, and to begin, in coordination with the Department of Energy, an assessment of the possible fuel supply shortage.
What is the procedure for formally requesting a fuels waiver?
A formal written request for a fuels waiver should be made by or on behalf of the Governor of an affected state or territory, and be directed to the EPA Administrator. The request should describe how the fuels waiver criteria specified in Clean Air Act have been met. In particular, the waiver request should address the following:
- The nature of the Act of God or other event that caused the shortage;
- An explanation of why the shortage was not foreseeable and could not have been prevented by prudent planning on the part of the suppliers of the fuel;
- The type of fuel for which a shortage exists;
- The geographic area that is affected;
- The effect of the shortage on fuel supplies, such as the number of gasoline stations that are, or are expected to be, out of fuel;
- The expected duration of the shortage; and
- The specific nature of the waiver being requested, including the duration, the geographic area, and the alternative fuel that would be allowed.
Where should written fuels waiver requests be submitted?
Written fuels waiver requests should be addressed to:
Administrator
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
The request should be sent to:
Assistant Administrator for Enforcement and Compliance
Assurance
Mail Code 2201A, Room AR 3204
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, N.W.
Washington, DC 20460
A copy of the waiver request also should be sent by facsimile to the following telephone numbers: (202) 501-3842, (202) 564-0069, and 303-312-6341.
What are the legal criteria and conditions for fuels waivers?
The criteria and conditions for fuels waivers are specified in Clean Air Act Section 211(c)(4)(C), which provides as follows:
(ii) The Administrator may temporarily waive a control or prohibition respecting the use of a fuel or fuel additive ... if, after consultation with, and concurrence by, the Secretary of Energy, the Administrator determines that--
(I) extreme and unusual fuel or fuel additive supply circumstances exist in a State or region of the Nation which prevent the distribution of an adequate supply of the fuel or fuel additive to consumers;
(II) such extreme and unusual fuel and fuel additive supply circumstances are the result of a natural disaster, an Act of God, a pipeline or refinery equipment failure, or another event that could not reasonably have been foreseen or prevented and not the lack of prudent planning on the part of the suppliers of the fuel or fuel additive to such State or region; and
(III) it is in the public interest to grant the waiver (for example, when a waiver is necessary to meet projected temporary shortfalls in the supply of the fuel or fuel additive in a State or region of the Nation which cannot otherwise be compensated for).
(iii) If the Administrator makes the determinations required under clause (ii), such a temporary extreme and unusual fuel and fuel additive supply circumstances waiver shall be permitted only if--
(I) the waiver applies to the smallest geographic area necessary to address the extreme and unusual fuel and fuel additive supply circumstances;
(II) the waiver is effective for a period of 20 calendar days or, if the Administrator determines that a shorter waiver period is adequate, for the shortest practicable time period necessary to permit the correction of the extreme and unusual fuel and fuel additive supply circumstances and to mitigate impact on air quality;
(III) the waiver permits a transitional period, the exact duration of which shall be determined by the Administrator (but which shall be for the shortest practicable period), after the termination of the temporary waiver to permit wholesalers and retailers to blend down their wholesale and retail inventory;
(IV) the waiver applies to all persons in the motor fuel distribution system; and
(V) the Administrator has given public notice to all parties in the motor fuel distribution system, and local and State regulators, in the State or region to be covered by the waiver.