Emergency Fuel Waiver for Midwest States After Storms

The Environmental Protection Agency (EPA) has announced an emergency fuel waiver to address gasoline shortages in Illinois, Wisconsin, Indiana, and Michigan following the shutdown of Exxon Mobil's Joliet refinery in Illinois. The refinery, which produces approximately 9 million gallons of gasoline and diesel daily, was forced to close last month due to a power outage caused by severe storms and tornadoes. Although power has been restored, restarting such a facility can take several weeks. The EPA's waiver temporarily suspends federal regulations requiring the sale of low Reid Vapor Pressure (RVP) gasoline during the summer months, which is designed to reduce ozone pollution and smog. Additionally, the waiver includes exemptions for reformulated gasoline, which is blended to burn more cleanly. This emergency measure will remain in effect until August 20, as gas prices in the affected states have surged, with Illinois prices nearing $4 per gallon, among the highest in the nation. The agency, in collaboration with the Department of Energy, assessed the situation and concluded that a short-term waiver was necessary for public interest. Gas prices in the four states have exceeded $3.45 per gallon, with California and Washington also experiencing prices over $4, reflecting a broader trend of rising fuel costs. The EPA and DOE are closely monitoring the fuel supply situation and are considering further actions to mitigate the impact of the refinery's closure.