Document vV6JRbYv73nxj3e6K433g9rz8
To:
Dravis, Samanthafdravis.samantha@epa.gov]; Ferguson, Lincolnfferguson.lincoln@epa.gov];
Trey Glennfotglenn@gmail.com]; glenn.trey@epa.govfglenn.trey@epa.gov]; Bowman,
LizfBowman.Liz@epa.gov]
From: Jackson, Ryan
Sent: Wed 8/30/2017 5:24:03 PM
Subject: final includes MS
Multi-State Fuel Waiver.8.30.17.pdf
Ryan Jackson Chief of Staff U.S. Environmental Protection Agency
i Ex. 6 - Personal Privacy i
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E. Scott Pruitt
Administrator
August 30, 2017
The Honorable Kay Ivey Governor of Alabama State Capitol 600 Dexter Avenue Montgomery, Alabama 36130
The Honorable Nathan Deal Governor of Georgia 206 Washington Street 111 State Capitol Atlanta,'Georgia 30334
The Honorable Matt Bevin Governor of Kentucky 700 Capitol Avenue, Suite 100 Frankfort, Kentucky 40601
The Honorable Larry Hogan Governor of Maryland 100 State Circle Annapolis, Maryland 21401
The Honorable Phil Bryant Governor of Mississippi P.O. Box 139 Jackson, Mississippi 39205
The Honorable Roy Cooper Governor of North Carolina Office of the Governor 20301 Mail Service Center Raleigh, North Carolina 27699
The Honorable Henry McMaster Gov'mor < 3? Sc nth Carolha 1205 Pendleton Street Columbia, South Carolina 29201
The Honorable Bill Haslam Governor of Tennessee Tennessee State Capitol Nashville, Tennessee 37243
The Honorable Terry McAuliffe Governor of the Commonwealth of Virginia State Capitol Third Floor Richmond, Virginia 23219
The Honorable Greg Abbott
Governor of Texas
Office ofthe Governor
P.O. Box 12428
.
Austin, Texas 78711-2428
The Honorable John Bel Edwards Governor of Louisiana Office of the Governor P.O. Box 94004 Baton Rouge, Louisiana 70804
1200 Pennsylvania Ave. NW Mail Code 1101A Washington, DC 20460 (2021 564-4700 Fax: (202) 501-1450
Q 'l-'t papr Is printed with vegetable-oil-based inks and is 100-percent postconsumer recycled material, chlorine-free-processed and recyclable.
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The Honorable Rick Scott Governor of Florida PL 05 The Capitol 400 South Monroe Street Tallahassee, Florida 32399-0001
The Honorable Muriel Bowser Mayor of the District of Columbia
Pennsylvania Avenue NW Suite 316 Washington, D.C. 20004
Re: August 30, 2017 Fuel Waiver Concerning Conventional and Reformulated Gasoline in Alabama, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Texas, Louisiana, Florida and the District of Columbia
Dear Governors and Mayor Bowser:
I have received requests for waivers under the Clean Air Act (CAA) by some of you or on
your behalf to address fuel supply emergencies caused by Hurricane Harvey. In response to these
requests, the U.S. Environmental Protection Agency has determined, and the U.S. Department of
Energy concurs, that it is necessary to take action to minimize or prevent the disruption of an
adequate supply of gasoline in Alabama, Georgia, Kentucky, Maryland, Mississippi, North
Carolina, South Carolina, Tennessee, Virginia, Texas, Louisiana, Florida and the District of
Columbia ("designated states and D C.").
.
As you know, regulations promulgated under the CAA require the use of low volatility
gasoline during the summer months in order to limit the formation of ozone pollution. The
regulations requiring the use of low volatility conventional gasoline (CG) during the summer
season are found at 40 C.F.R. 80.27 and in certain State Implementation Plans (SIPs). See
40 C.F.R. f 80.27
and
https: Avwwepa.gov'gasoline-slandards/gasoljne-reid-vapor-
prcssureAable, I he regulations requiring the use of low volatility reformulated gasoline (RFG) are
found at 40 C.F.R. 80.78. The RFG regulations at 40 C.F.R. 80.78(aX7) also prohibit any
person from combining any reformulated blendstock for oxygenate blending (RBOB) with any
other gasoline, blendstock, or -oxygenate, except for the oxygenate ofthe type and amount specified
by the refiner that produced the RB< )B. RB< )B o combined with its specified oxygenate to produce
RFG.
The shut-down of nearly a dozen refineries and extreme weather prohibiting fuel barge movement in the Gulf-area, with several other refineries operating at reduced capacity, has continued to limit the production and availability of fuel to areas both within and outside of the Gulf area. In addition, the Colonial Pipeline, which has been disrupted due to storm damage, is operating at a reduced capacity. The designated states and D.C. receive a significant percentage of their gasoline supplies from the Gulf-area refineries and through the Colonial Pipeline. Consequently, the refinery shut-downs, production curtailments, limited shipments of fuel by barge m tlx (iulf area and pi pci ne limitations caused by Hurricane Harvey are creating a shortage of compliant fuel for the designated states -and D.C. These supply shortages can be reduced by waiving the requirements to sell low volatility summer CG and by waiving provisions at 40 C.F.R. 80.78(a)(7) that prohibit any person from combining any RFG blendstock for
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oxygenate blending with any other gasoline, blendstock, or oxygenate, unless certain conditions
are met.
.
I have determined that an "extreme and unusual fuel ( ] supply circumstance" exists that
will prevent the. distribution of an adequate supply of gasoline to consumers. CAA
L c *: 4 M( m i Z H L A y C. 7545(c)(4)(C)(ii)(IK extreme and unusual fuel circumstance
is the result of a hurricane, an event that could not reasonably have been foreseen or prevented,
and is not attributable to a lack of prudent planning on the part of suppliers of the fuel to these
areas. '................................................... <1 j 4 C.
T have
determined that it is in the public interest to grant this waiver and that this waiver applies to the
smallest geographic area necessary to address the fuel supply circumstances. CAA
211 (c)(4)(C)(ii)(III) and (iuMI), 42 U.S.C. 7545(c)(4)(C)(ii)(III) and (iii)(I).
The EPA, in consultation with DOE, has evaluated the impact of disruption of the fuel
production and distribution system on fuel supply in the designated states and D.C. Based on this
evaluation, the EPA has determined, and DOE concurs, that it is necessary to take the following
action to minimize or prevent further disruption of an adequate supply of gasoline to consumers in
these areas.
'
Federal RVP Standards
I am issuing this waiver of the federal Reid vapor pressure (RVP) requirements at 40 C.F.Rv 80.27 in the designated states to minimize or prevent problems with the supply of gasoline to these areas. Under this temporary waiver, regulated parties may produce, sell or distribute winter gasoline with an RVP of 11.5 pounds per square inch (psi) in CG areas within the designated states. This waiver is effective immediately and will continue through September 15, 2017. Since the wanei odi nr m effect until the end of the high ozone season, this waiver does not address downstream standards under the federal RVP requirements at 40 C.F.R. 80.27 that apply after September 15,2017.
Texas SIP Covered Areas
There are two provisions in the Texas federally enforceable SIP that require the use of lowvolatility gasoline. The first provision requires gasoline to be sold in 95 counties in eastern Texas (Eastern Texas SIP RVP Counties)1 to have a maximum RVP of 7.8 psi during the summer "high ozone" season, which started on June 1 and ends on October 1,2017. These federal requirements
1 The following 95 eastern Texas counties have a 7.8 psi RVP requirement through October 1, 2017: Anderson, Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bell, Bexar, Bosque, Bowie, Brazos, Burleson, Caldwell, Calhoun, Camp, Cass, Cherokee, Colorado, Comal, Cooke, Coryell, De Witt, Delta, Ellis, Falls, Fannin, Fayette, Franklin, Freestone, Goliad, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Harrison, Hays, Henderson, Hill, Hood, Hopkins, Houston, Hunt, Jackson, Jasper, Johnson, Karnes, Kaufman, Lamar, Lavaca, Lee, Leon, Limestone, Live Oak, Madison, Marion, Matagorda, McLennan, Milam, Morris, Nacogdoches, Navarro, Newton, Nueces, Panola, Parker, Polk, Rains, Red -River, Refugio, Robertson, Rockwall, Rusk, Sabine, San Jacinto, San Patricio, San Augustine, Shelby, Smith, Somervell, Titus, Travis, Trinity, Tyler, Upshur, Van Zandt, Victoria, Walker, Washington, Wharton, Williamson, Wilson, Wise, and Wood.
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are codified as part of the federally-approved Texas SIP. 66 Fed. Reg. 20,927 (April 26, 2001). I am issuing this waiver of the 7.8 RVP SIP requirements that apply to Eastern Texas SIP RVP Counties to minimize or prevent problems with the supply of gasoline to these areas. This waiver is effective immediately and will continue through September 15, 2017.
Gasoline that does not meet the 7.8 psi RVP requirements that apply in the Eastern Texas SIP RVP Counties may not be introduced into the fuel distribution system for distribution to these counties by refiners or importers after September 15, 2017, Any gasoline meeting the conditions of this waiver that is already in the feel distribution system on September 15, 2017, may be distributed and sold in the Eastern Texas SIP RVP Counties until the supply is depleted.
The second provision of the federally enforceable Texas SIP requires the use of 7.0 psi RVP gasoline in El Paso, Texas. I am issuing this waiver of the federal enforceable SIP requirements that apply in El Paso to prevent problems with the supply of gasoline to this area. Under this temporary waiver, regulated parties may produce, sell or distribute winter gasoline with an RVP of 11.5 psi in El Paso, Texas. This waiver is effective immediately and will continue through September 16, 2017. Since the federally enforceable SIP requirement to sell 7.0 psi RVP gasoline ends on September 16, 2017, this waiver does hot address downstream standards that apply after the end of the waiver period.
Reformulated: Gasoline
I am issuing this waiver of the federal RFG requirements in the designated states and D C. Under this waiver, the EPA will allow regulated parties to produce, sell or distribute conventional winter gasoline with an RVP of 11.5 psi in any RFG covered area within the designated states and D.C. Additionally, I am waiving the provisions at 40 I R ) 80.78(fe7) that prohibit any person from combining any RFG blendstock for oxygenate blending with any other gasoline. blendstock, or oxygenate, unless certain conditions are met This waiver covers the prohibitions at 40 C.F.R. 80.78(a)(7), and applies to all designated states and DC.
This waiver is effective immediately and will continue through September 15, 2017. Gasoline that does not meet the RFG requirements may not be introduced into terminal storage tanks from which gasoline is dispensed into trucks for distribution to retail outlets in RFG Covered Areas in the designated states and D.C. after September 15, 2017. Any gasoline meeting the conditions of this waiver that is stored in terminal storage tanks for distribution to retail outlets and wholesale purchaser-consumers in these areas after September 15, 2017, may be distributed and sold in RFG Covered Areas in the designated states and D.C. until the supply is depleted. Likewise, retailers and wholesale purchaser-consumers in these areas may continue selling or dispensing gasoline that meets the conditions of this waiver after September 15, 2017, until their supplies are depleted.
This waiver only applies to the applicable federal requirements cited above for -the designated states and D.C. Other state or local requirements or restrictions related to this matter may need to be addressed by the appropriate authorities. Should conditions warrant, this waiver
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may be modified, terminated or extended, as appropriate. If you have questions you may call me, or your staff may call Phillip Brooks at (202) 564-0652.
E. Scott Pruitt
cc: The Honorable Rick Peny, Secretary of Energy Richard Hyde, P.E., Executive Director, Texas Commission on Environments'Qua] "ity Dr. Chuck Carr Brown, Secretary, Louisiana Departner it of Enviramc mtal Qiality Richard E. Dunn, Director, Georgia Environmental Protection Division Jeffery F. Koerner, Director, Florida Division of Air Resource Management Molly Joseph Ward, Virginia Secretary of Natural Resources
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