05/12/2021
PENSACOLA GAS SHORTAGE UPDATE: TRANSMONTAIGNE FUEL TERMINAL APPARENTLY OPERATING; EPA ISSUES FUEL EMERGENCY WAIVER FOR FLORIDA PANHANDLE AND SEVERAL STATES
By Andrew McKay
The gasoline depot in downtown Pensacola operated by TransMontaigne is apparently open again and shipping gas locally. It had been temporarily closed due to a failure to have the right kind of gasoline on hand when the winter/summer blend switch happened on May 1. Yesterday, the EPA issued a temporary waiver for fuel type sales for the Southeast including Escambia, Santa Rosa, Okaloosa, and Walton counties, and trucks have already been pulling gas locally since Tuesday. Contrary to other reporting, the EPA says it did not "shut down" the facility. They told NewsRadio:
"The EPA has not shut down TransMontaigne’s fuel operations in Pensacola. Except for retailers and wholesale purchaser-consumers, all parties in the gasoline distribution chain throughout the United States must meet low volatility standards on May 1. The federal low volatility standards have been in place for decades and begin on May 1 each year. The TransMontaigne terminal in Pensacola, Florida contacted EPA the evening of April 30 to inform EPA that they would be shutting down their operation at midnight since they did not have gasoline meeting the federal low volatility standard. The EPA understands that the terminal is still exploring options to sell compliant gasoline. Retailers and wholesale purchaser-consumers must meet the low volatility standards on June 1.
Note: These requirements have been in place since March 22, 1989. See 40 CFR 80.27."
Also, I posted a general explanation of this whole incident yesterday that may help provide some context for why this happened:
What's the explanation for the fuel challenges we're having? Here's what I have learned:
1. When people stopped driving last year and demand for gas tumbled, gas companies laid off CDL drivers certified to carry hazmat loads, who then found other work. Now that we are back driving, there is a shortage of those drivers, and so getting the fuel here by truck is limited by there not being enough truckers. For a comparison, think rental car shortage.
2. Normally, this wouldn't matter because we have a local fuel terminal that shut itself down due to fuel type issues on April 30.
Only because of that loss of supply distribution are we now having to scramble to get trucks in from farther away or to send our drivers over to Mississippi, e.g., to pick up gas and return.
3. People are buying more than they need because they are scared by the perception that we are short of gas and the news that isn't relevant to us of the Colonial Pipeline shutdown. Think hurricane mindset. There is plenty of gas out there, even with the terminal out, to handle normal demand, but when people overstress the supply out of fear, well, guess what happens.
So the message from local leaders is on target. Settle down. Be patient. Don't buy more than you need. Everything will be fine as long as we can all just be a little less fear-driven than we are inclined to be.
