Government to Establish Northeast Gasoline Reserve

Move comes in response to fuel shortages triggered by Superstorm Sandy in 2012.

May 07, 2014

WASHINGTON — To ensure that there is not a repeat of the fuel shortages experienced in the Northeast after Superstorm Sandy blew up the East Coast in 2012, the U.S. Government has decided to build a million-barrel gasoline reserve, Reuters reports.

The U.S. Department of Energy (DOE) announced late last week that two separate sites — one close to New York Harbor and one in New England — would hold 500,000 barrels of gasoline by the end of summer. The $200 million emergency stockpile would be in addition to the current heating oil reserve, which contains a million barrels of diesel fuel.

DOE, which will lease the tanks from commercial storage companies, will have to purchase the fuel to fill them. The reserve’s aim would be to provide short-term relief for first responders and motorists directly after major disasters. “This is part of a broader commitment to a more secure and resilient energy infrastructure,” said Energy Secretary Ernest Moniz.

Meanwhile, refiners expressed their concern at not being consulted before the announcement. “Since the decision … was made with no input from the industry, we question whether due consideration was given to how the gasoline reserve will be filled, managed and dispersed,” said Charles Drevna, president of the American Fuel and Petrochemical Manufacturers.

New York mandates that gasoline stations along major highways and evacuation routes have backup generators, for which the state provides grants. New Jersey gasoline stations also can apply for grants to install generators, which are not required by law.

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