Alabama lifts some regulations on gasoline

In light of spiking gasoline prices, state leaders have moved to "temporarily suspend enforcement of certain regulations in order to alleviate disruption to supplies."

From Attorney General Troy King's office:

(MONTGOMERY)—Attorney General Troy King today, after consulting with Governor Bob Riley, took actions to ease restrictions that could hamper the supply of gasoline and diesel fuels throughout Alabama in the wake of Hurricane Katrina, temporarily suspending enforcement of certain regulations in order to alleviate disruption to supplies. Attorney General King said these measures will help ensure fuel for emergency personnel, as well as maintaining availability of gasoline and diesel for the general public. Attorney General King today also requested that the U.S. Environmental Protection Agency take similar action.

Attorney General King has notified the Alabama Petroleum Council that he will exercise his discretion not to enforce two regulatory provisions for a period of one week, after which he will reevaluate whether the suspension needs to be temporarily extended. "My goal is to keep the supply of fuel flowing to those who need it," said Attorney General King. "We are asking the petroleum suppliers to work with us to provide fuel to this State, and we do not want to tie their hands as we all work together to meet this crisis. By temporarily lifting enforcement of these two regulations, we will have the flexibility to safely get fuel where it is needed and prevent disastrous shortages."

The first is a federal regulation involving diesel fuels, which ordinarily are separated into two categories---one of which is not taxed for certain government and other groups, and another which is generally available to the public and is taxed. To distinguish between the two fuels, one contains a harmless red dye that does not alter the chemical makeup but is simply a tool for identification for tax purposes. Attorney General King has acted to allow suppliers to mix and switch the taxed and untaxed diesel fuel as needed. "This decision will authorize first responders, law enforcement, cleanup and utility crews to use any available diesel supplies to accomplish their missions during the hurricane emergency," Attorney General King stated in a letter today to Executive Director Dean Peeler of the Alabama Petroleum Council.

The second regulation involves seasonal summertime restrictions that are particular to Shelby and Jefferson counties, which must meet a tighter standard of evaporation rates and sulfur content, and thus ordinarily must be supplied separately from the rest of the state. During this temporary period of time, Shelby and Jefferson counties may use the same gasoline as the rest of the Alabama.

The degree of damage caused by Hurricane Katrina to the petroleum infrastructure is unknown at this time, but supplies have been severely disrupted by evacuation of personnel and halting of operations prior to the storm's strike and in its aftermath. Two major fuel supply lines, Colonial Pipeline and Plantation Pipeline, bring fuel from Gulf Coast refineries and run through Alabama and up toward the Eastern seaboard. Refineries throughout Louisiana, Mississippi and Alabama are major suppliers to Alabama that may be significantly compromised.

"We commend Attorney General King for taking timely action that will help life-saving efforts with an unhindered fuel supply," said Alabama Petroleum Executive Director Peeler. "With the ability to switch between fuels, we can better assure the necessary supplies to first responders and those who are laboring to protect lives and property. Attorney General King's regulatory waivers provide flexibility for our fuel supply system as we cope with heightened demands of widespread power outages and overall emergency relief."

Attorney General King notified the Alabama Department of Environmental Management and the Internal Revenue Service of his action to temporarily waive enforcement of these two regulations. Attorney General King's suspension of enforcement is from August 30 to September 7, at which time he will decide whether an additional waiver is needed.