UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON D C 20460 THE ADMINISTRATOR May 1 2021 The Honorable Larry Hogan Governor of Maryland 100 State Circle Annapolis Maryland 21401 The Honorable Tom Wolf Governor of Pennsylvania Room 225 Main Capitol Building Harrisburg Pennsylvania 17120 The Honorable Ralph Northam Governor of the Commonwealth of Virginia State Capitol Third Floor Richmond Virginia 23219 The Honorable Muriel Bowser Mayor of the District of Columbia 1350 Pennsylvania Avenue NW Suite 316 Washington D C 20004 Re May 2021 Fuel Waiver Concerning the Colonial Pipeline Shutdown Dear Governors and Mayor Bowser By this letter the U S Environmental Protection Agency is issuing a waiver under the Clean Air Act CAA to address the fuel supply emergency caused by a cyberattack on Colonial Pipeline’s computer networks that led to the Pipeline’s shutdown This pipeline shutdown and related impacts on petroleum pipeline operations affect the petroleum distribution system in your affected States and the District of Columbia Regulations promulgated under the CAA require gasoline to meet certain lower volatility gasoline Reid Vapor Pressure RVP requirements in certain reformulated gasoline RFG areas the “RFG Covered Areas”1 Regulations also require the use of low volatility gasoline during the summer months in order to limit the formation of ozone pollution These regulations are found at 40 C F R § 1090 215 See also https www epa gov gasoline-standards reformulated gasoline The volatility gasoline regulations that apply to fuel manufacturers distributors resellers terminal owners and operators and carriers began on May 1 2021 1 The RFG Covered Areas included in this waiver are those counties in the Commonwealth of Pennsylvania Commonwealth of Virginia District of Columbia and State of Maryland and identified at https www epa gov gasoline-standards reformulated-gasoline See 40 C F R § 1090 285 No counties in the State of Delaware are covered by this waiver The EPA and U S Department of Energy DOE have been actively monitoring the supply of fuel The unusual pipeline shutdown has affected gasoline supplies The EPA has concluded with DOE’s concurrence that it is necessary to take action to minimize or prevent disruption of an adequate supply of gasoline to consumers I have determined that an “extreme and unusual fuel supply circumstance” exists that will prevent the distribution of an adequate supply of compliant gasoline to consumers CAA § 211 c 4 C ii I 42 U S C § 7454 c 4 C ii I This extreme and unusual fuel circumstance is the result of a cyberattack on Colonial Pipeline’s computer systems an event that could not reasonably have been foreseen and is not attributable to a lack of prudent planning on the part of suppliers of the fuel to these areas CAA § 211 c 4 C ii II 42 U S C § 7545 c 4 C ii II Furthermore I have determined that it is in the public interest to grant this waiver and that this waiver applies to the smallest geographic area necessary to address the fuel supply circumstances CAA § 211 c 4 C ii III and iii I 42 U S C § 7545 c 4 C ii III and iii I Therefore to minimize or prevent disruptions of the supply of gasoline I am issuing this waiver of the following requirements of the federal RFG requirements in RFG Covered Areas2 that apply to terminal owners terminal operators distributors and carriers I am issuing this waiver of the requirements in 40 C F R §§ 1090 215 a 3 and 1090 220 c that summer RBOB3 and summer RFG as defined in 40 C F R § 1090 80 meet the specified RFG RVP gasoline requirements in the RFG Covered Areas for terminal owners terminal operators distributors and carriers Under this waiver summer CBOB4 and summer conventional gasoline CG as defined in 40 C F R § 1090 80 meeting the 9 0 psi RVP standard specified at 40 C F R § 1090 215 a 1 with the application of the ethanol 1 0 psi waiver pursuant to 40 C F R § 1090 215 b may be used in the RFG Covered Areas This waiver is effective immediately and will continue through May 1 2021 After May 1 2021 fuel manufacturers may not produce or import gasoline that does not meet the RFG standards for distribution in the RFG Covered Areas However any summer CBOB and summer CG permitted for use in the RFG Covered Areas described in this waiver that is in the distribution system on May 1 2021 may be distributed and sold until the supply is depleted The EPA recognizes that this is an evolving situation that is causing rapid changes to market dynamics Should conditions warrant this waiver may be modified terminated or extended as appropriate If you have questions you may call me or your staff may call Evan Belser Deputy Director Air Enforcement Division at 202 768-4494 2 The regulations at 40 C F R § 1090 220 e impose restrictions on blending butane or pentane into previously certified RFG or RBOB and that prohibition continues to apply and is not waived This section provides that “ c ertified butane and certified pentane must not be blended with summer RFG or summer RBOB under § 1090 1320 ” 3 The regulations at 40 C F R § 1090 80 define RBOB as “a BOB produced or imported for use in an RFG covered area” and gasoline before oxygenate blending BOB as “gasoline for which a gasoline manufacturer has accounted for oxygenate added downstream under § 1090 710 ” 4 The regulations at 40 C F R § 1090 80 define CBOB as “a BOB produced or imported for use outside of an RFG covered area ” Sincerely yours Digitally signed by MICHAEL MICHAEL REGAN Date 2021 05 11 REGAN 07 50 17 -04'00' Michael S Regan cc The Honorable Jennifer Granholm Secretary of Energy