The past few weeks have had a significant impact on the U.S. transportation market. Hurricane Harvey was the first major hurricane to hit the U.S. mainland since 2005, and its impact will last far longer than initial landfall due to heavy rainfall flooding parts of Texas and parts of Louisiana.

Now, as Hurricane Irma continues its catastrophic path towards landfall this weekend in Florida, NOAA’s National Hurricane Center has upgraded Hurricane Jose to a Category 4 storm, and Hurricane Katia has strengthened to a Category 2 storm in the Gulf of Mexico.

As the convenience and fuel retailing industry and infrastructure prepares for these storms, NACS has developed resources and collected information to assist during preparation, relief and recovery efforts.

Donate Through the Red Cross

NACS is working with its partners at the American Red Cross to help collect donations for areas impacted by the hurricanes. On June 26, NACS announced an agreement with the Red Cross to advance the existing programs convenience stores provide, and further develop community efforts that provide immediate access to monetary donations as well as food, fuel and beverages for Red Cross volunteers.

NACS members interested in helping the Red Cross can also contact Carolyn Schnare, NACS director of industry initiatives, for more information.

Hurricane Irma

Florida is a bit unique in that its entire transportation fueling market relies on supply from tanker and barge, as well as truck. There are no refineries in the state, and no external pipelines providing fuel directly into the state. (EIA: “East Coast and Gulf Coast Transportation Fuels Markets”)

This week Florida Gov. Rick Scott has been hosting calls with the federal government and industry stakeholders to bring fuel into the state from ports to terminals and to retailers:

“We are aggressively working around the clock to bring more fuel to Florida gas stations,” said the governor. “I have held calls with the federal government, fuel retailers and oil companies to find ways to address this issue. During these calls, I made it clear to retailers and oil companies that I must know exactly what they need so we can work to get fuel to Floridians fast. We have asked fuel companies to identify ships that are in route to our ports so we can arrange military escorts to get them here faster. To further expedite fuel delivery, I have directed state police to escort fuel trucks to gas stations along evacuation routes. For gas stations in evacuation zones: We need you to stay open as long as possible so people can get out. We will arrange police escorts for your employees so they can get out safely. We need your gas stations to stay open as long as possible.”

Waivers

Local, state and federal officials are effectively communicating, leading to quicker response time in issuing important waivers on fuels and hours of service in states affected by these storms:

• A Jones Act Waiver has been issued by the Department of Homeland Security.
• The U.S. Environmental Protection Agency (EPA) has issued emergency waivers of certain fuel standards and hours of operation in affected areas for both Hurricanes Harvey and Irma.
• On Sept. 6 and Sept. 7, the Federal Motor Carrier Safety Administration (FMCSA) issued two emergency declarations suspending certain operating requirements, including the hours of service limitations, for drivers providing “direct assistance” to areas affected by Hurricane Irma. FMCSA also published two notices (Sept. 6 and Sept. 7) that it will not be enforcing certain fee provisions, namely fees for temporary operating authority applications issued during an emergency, against motor carriers who are working to provide direct assistance to affected areas.

Affected states and jurisdictions include: Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, the Commonwealth of Puerto Rico, the territory of the U.S. Virgin Islands, the District of Columbia, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

The Sept. 6 declaration and notice are effective as of Sept. 6 and will remain in effect until October 5, or for the duration of the emergency, whichever is less. The Sept. 7 declaration and notice were also effective immediately and will remain in effect until October 6, or for the duration of the emergency.

Entities looking to make use of these waivers are encouraged to review the waivers directly.

• The Internal Revenue Service, in response to shortages of undyed diesel fuel caused by Hurricane Harvey, will not impose a penalty when dyed diesel fuel is sold for use or used on the highway.
• The USDA’s Food & Nutrition Service has issued waivers for Supplemental Nutrition Assistance Program recipients in Texas.
• On Sept. 6, South Carolina Gov. Henry McMaster issued an executive order declaring a state of emergency due to Hurricane Irma. The governor also issued an hours of service executive order suspending regulations “that restrict certain registration, permitting, length, width, weight, load, and hours of service requirements.”
• On Sept. 6, North Carolina Gov. Roy Cooper issued two executive orders, one declaring a state of emergency, and a second order hours of service waiver for various motor vehicle regulations in response to Hurricane Irma.
• On Sept. 7, Georgia Gov. Nathan Deal expanded the state of emergency to include a total of 30 counties.
• On Sept. 8, Virginia Gov. Terry McAuliffe declared a state of emergency in anticipation of Irma.

Online Resources

NACS continues to add online resources that address business and fueling concerns for industry stakeholders directly affected by the hurricanes, and the impact on the fuel distribution system and supply chain.

Here are the top resources developed by NACS:

• Gasoline Distribution Network Map
• How Disasters Affect Fuel Prices: Higher gas prices often lead the public to assume a retailer is price gouging.
• How Refineries and Pipelines Resume Operations: Following a disaster, resuming operations is complex.
• Pipelines Importance to Supply
• What UST Owners Can Do After a Flood: Guidelines to help operators safely bring systems back into service.
• When Mother Nature Strikes: Information on how to prepare and recover from natural disasters.
• Fuel Market’s Reaction to Harvey Follows Historic Norms: Market data following Harvey shows the retail increase at pumps is not keeping pace with the increase in wholesale prices.

For additional NACS resources, go to:

• Hurricane Irma
• Hurricane Harvey
• NACS Fuels Resource Center

Industry Impact

• Florida: 9,930 c-stores, 6,639 sell gas; population: 20.6 million
• Georgia: 6,791 c-stores, 5,331 sell gas; population: 10.3 million
• Louisiana: 3,297 c-stores, 2,397 sell gas; population: 4.6 million
• North Carolina: 6,306 c-stores, 3,956 sell gas; population: 10.2 million
• South Carolina: 3,541 c-stores, 2,204 sell gas; population: 5.0 million
• Tennessee: 4,327 c-stores, 2,961 sell gas; population: 6.7 million
• Texas: 15,671 c-stores; 10,522 sell gas; population: 27.8 million

These storms are affecting fuel supply and costs across the country, and NACS is proactively communicating the industry’s voice to the media and consumers. Stay tuned to NACS Daily for updates.