Georgia adopts fuel waiver aimed at lowering gas prices

A gas pump is seen situated into a vehicle at a Shell gas station on August 03, 2023 in Austin, Texas. Gas stations around the country have boosted prices by an average of 26 cents a gallon over the past month as irregular temperatures have made fuel …

Georgia drivers could see some relief at the pump after the state adopted a federal emergency fuel waiver that allows more gasoline to enter the market ahead of the normal transition to winter-grade fuel.

What we know:

The U.S. Environmental Protection Agency issued the temporary waiver in consultation with the Department of Energy under authority provided by the Clean Air Act.

Beginning Sept. 1, the waiver allows E10 gasoline — fuel blended with 10% ethanol — to be sold at a higher Reid vapor pressure, or RVP. In practical terms, the move allows the transition to less restrictive winter-grade gasoline about two weeks earlier than usual.

The EPA estimates the change could increase the nation's available gasoline supply by hundreds of thousands of barrels per day. Federal officials say the additional supply should help put downward pressure on gasoline prices, although they have not estimated how much drivers could save.

Why summer and winter gasoline are different

Gasoline sold during the warmer months is subject to stricter volatility requirements because heat causes fuel to evaporate more readily.

Reid vapor pressure measures gasoline's tendency to evaporate. Higher-volatility gasoline can contribute to increased emissions of volatile organic compounds, which can help form ground-level ozone and smog.

For that reason, federal regulations generally require lower-volatility summer gasoline through Sept. 15.

Winter-grade gasoline can have a higher RVP because cooler temperatures reduce evaporation. It is also generally easier and less expensive for refiners to produce.

The emergency waiver essentially moves that seasonal transition forward to Sept. 1.

What does this mean for your car?

What you can do:

Drivers should not need to do anything differently when filling up.

E10 is already one of the most commonly sold types of gasoline in the United States and is approved for use in conventional gasoline-powered vehicles. The waiver does not increase the amount of ethanol in E10.

Instead, it temporarily changes the volatility standard that applies to the fuel.

Why the EPA issued the waiver

The Clean Air Act gives the EPA authority to temporarily waive certain fuel requirements when officials determine that extreme or unusual supply circumstances exist and a waiver is in the public interest.

The EPA said it issued the latest waiver in advance so refiners, terminals, distributors and retailers would have time to adjust their fuel distribution systems.

The agency has used emergency fuel waivers since May 1 to ease fuel restrictions in parts of the country amid supply concerns.

Georgians have spent billions more on fuel

Dig deeper:

The waiver comes as Georgia drivers continue to pay substantially more for fuel than they did before the Iran war began in late February. Regular gasoline currently averages about $3.79 a gallon statewide, according to AAA, compared with about $2.92 a year ago. Diesel is averaging nearly $5.48 a gallon, up from about $3.58 at this time last year.

The higher prices have added up quickly. Georgians have spent an estimated $1.4 billion more on gasoline since the war began, according to The Atlanta Journal-Constitution. The average Georgia household has spent nearly $350 more on fuel over the past six months than it otherwise would have. The state's increase has been somewhat smaller than the national household impact, in part because Georgia temporarily suspended its gas tax this summer.

Nationwide, Americans had spent an estimated $51 billion more on gasoline and diesel as of Aug. 28 than they would have at prewar prices, according to Brown University's Iran War Energy Cost Tracker. That works out to more than $387 in additional fuel costs for the average U.S. household. 

Higher fuel costs can extend well beyond the gas pump: Expensive diesel raises transportation and freight costs, which can eventually affect the prices consumers pay for food and other goods. In metro Atlanta, diesel is averaging about $5.47 a gallon, approaching the record prices seen in 2022.

How long will the waiver last?

Local perspective:

For Georgia and most of the country, the waiver takes effect Sept. 1 and runs through Sept. 15, when the normal federal summer gasoline control season ends.

The federal action also addresses separate state-level fuel requirements in Texas, Arizona and California that extend beyond Sept. 15. Those requirements are being waived for up to 20 days, the maximum period currently allowed.

The EPA said it will continue monitoring gasoline supplies and could issue additional waivers if conditions warrant.

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