EPA and DOE Respond to Midwest Gasoline Shortage with Emergency Waiver Following Refinery Shutdown

EPA and DOE Respond to Midwest Gasoline Shortage with Emergency Waiver Following Refinery Shutdown

The Environmental Protection Agency (EPA) is issuing an emergency fuel waiver to address gasoline shortages in four Midwest states after a refinery shutdown in Illinois.

Exxon Mobil had to shut down its refinery in Joliet, Illinois, last month after a power outage caused by tornadoes and severe storms in the region. Although power has been restored, restarting a facility like the Exxon Mobil refinery, located about 40 miles outside Chicago, can take weeks. This refinery is capable of producing about 9 million gallons of gasoline and diesel fuel per day.

The EPA has approved the waiver for Illinois, Wisconsin, Indiana, and Michigan to help mitigate the fuel shortage.

Federal rules typically mandate the sale of low Reid Vapor Pressure (RVP) gasoline during the summer months because higher RVP gasoline evaporates more easily, contributing to ozone pollution and smog. The waiver temporarily lifts these requirements, along with reformulated gasoline rules for the four states. Reformulated gasoline is designed to burn more cleanly than conventional gasoline, reducing pollutants in the air.

This waiver will remain in effect through August 20.

Gas prices in the affected states increased significantly after the storms. According to AAA, gasoline prices are over $3.45 per gallon in all four states. In Illinois, prices are approximately $4 per gallon, which is among the highest in the country. California and Washington also have gas prices over $4 per gallon, where higher prices are more common.

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The EPA and the Department of Energy (DOE) evaluated the situation and determined that granting a short-term waiver was in the public’s best interest. Both agencies are continuing to monitor the fuel supply situation caused by the refinery shutdown and are considering additional measures to alleviate its impact.

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