EPA grants Louisiana partial fuel waiver ahead of Isaac

NEW YORK (Reuters) - The Environmental Protection Agency on Tuesday granted a partial fuel waiver to the state of Louisiana to make it easier for distributors to keep the state's supply of fuel available as it responds to Hurricane Isaac.

This waiver will give Louisiana refineries in 14 parishes the latitude to utilize slightly higher Reid Vapor Pressure (RVP) fuels starting immediately until September 6, which is when the actual RVP changes for key pipelines.

Using fuel with the same RVP will make it easier to help ease the shortages caused by evacuations ahead of Hurricane Isaac, the EPA said.

The seasonal switch from lower to higher RVP gasoline is just beginning as refiners switch their blending to make gasoline for colder weather.

The Colonial Pipeline, which carries refined products from Gulf Coast refineries including several in Louisiana to the New York Harbor, will shift its RVP specification from 9.0 RVP to 11.5 RVP by September 6.

Higher RVP gasoline is cheaper for refiners to make and butane can be blended in place of an oxygenate like ethanol.

On Monday, the Louisiana Department of Environmental Quality requested fuel waivers for 16 parishes. On Tuesday, it received a partial fuel waiver for all but two -- Calcasieu and Beauregard.

Since the majority of parishes will be using the same type of gas, it will make it easier for fuel distributors and gas stations to keep gas at the pumps.

(Reporting By Janet McGurty; Editing by Steve Orlofsky and Bob Burgdorfer)

Source: http://news.yahoo.com/epa-grants-louisiana-partial-fuel-waiver-ahead-isaac-210539390.html

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