Reuters: Regulatory News: UPDATE 1-US eases summer gasoline rules in some states after storm

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UPDATE 1-US eases summer gasoline rules in some states after storm Sep 5th 2012, 16:02 Wed Sep 5, 2012 12:02pm EDT WASHINGTON, Sept 5 (Reuters) - The U.S. government, looking to ease tight regional supplies of gasoline after Hurricane Isaac hit the Gulf Coast last week, has waived some federal anti-smog rules requiring use of summer blends of fuel. The Environmental Protection Agency said the storm caused an "extreme and unusual fuel supply circumstance" that justifies easing fuel requirements in eight states through the end of "high ozone" season on Sept. 15. Special blends of gasoline are normally required in the summer, when the air is more susceptible to smog. Under the waivers, refineries in those states will be allowed to use a blend of gasoline that normally would be prohibited in the summer. The affected states include: Louisiana, Mississippi, Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. Hurricane Isaac shut down much of the Gulf coast refining belt last week. Phillips 66 has said its 247,000 barrel per day refinery in Alliance, Louisiana could operate at reduced rates for a few weeks after flooding caused by Isaac. On Wednesday the plant lost power supply, which will slow its restart, the company said. Other refineries in the region had restarted or resumed normal output after shutting ahead of the storm.

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