Fuel Industry 101 in Florida Hurricane Irma in Review Christy Haven - PowerPoint PPT Presentation

NOAA 2017 Fuel Industry 101 in Florida Hurricane Irma in Review Christy Haven March 26, 2018

Assessment Process Interviews • Florida Department of Revenue • Florida Department of Transportation • Florida Division of Emergency Management • Florida Highway Patrol • Florida Petroleum Council • Florida Petroleum Marketers Association • Florida Rock and Tank • Florida Trucking Association • CSX Transportation • U.S. Department of Homeland Security

Situation  Largest Evacuation in U.S. History  Hurricane Irma Unpredictable Path  Supply Anxiety K. Clark, Miami Herald  Hurricane Harvey  Major Ports Closed  High Demand for Truck Drivers and Fuel Trucks Michelle Eve Sandberg/AFP/Getty Images  Severe Congestion and Gas Shortages in Wildwood, Lake City, and Panhandle

How the System Works Fuel Distribution System Above the rack bulk deliveries to terminals REFINERIES (e.g. exchange deliveries, third party terminals, end users with terminals) (Fuel products are unfinished gasoline, diesel, jet, kerosene, home heating oil, ethanol) PIPELINE MARINE TERMINALS Fuel ETHANOL PLANTS Products RAIL Florida Petroleum Council. 2017. Hurricanes Harvey and Irma. A presentation to FDOT on TRUCK TERMINAL LOADING RACK Branded, contracted and spot market sales. Gasoline, ethanol, and additives blended ADDITIVES to finish gasoline. WHOLESALE/DISTRIBUTOR THIRD-PARTY DELIVERED REFINER DIRECT DELIVERED (58% single store owners: about 50% branded by refineries) (Retail) Hurricane Response andPreparedness Jobber Jobber Hypermarket, Jobber Jobber Franchised Small Company Franchised Franchised Franchises Franchises Operated Independent Independent Large Independent Owned Independent Independent Major Brand Major Brand Independent Outlets Operated Dealer Outlets, Dealer Outlets, Outlets Dealer Outlets Dealer Outlets to Dealer to Dealer Brands Leased From Outlets& Leased From Dealer Owns Outlets. Jobber Jobber (less than 5%) Refiner Site Dealer Owns Owns Site Site

How the System Works Florida Fuel Supply Chain

How the System Works . Truck Drivers  Special Training Required – Hazardous Materials and Terminal Operations twitter.com/PortCanaveral  Access Requirements  Trucks Generally Owned by Commercial Carriers Gas Stations – Contract vs. Spot Pricing  Contract • Between Supplier and Dealer Oil Price Information Service (OPIS) 2017 • Given Higher Priority when Supplies Constrained  “Spot Market” • Surplus Sold at a Discount • Last to be Served when Supplies Constrained

What Worked Well  Communications and Coordination • Daily Calls with Governor • Between States  Regulation Waivers • Fuels • Motor Carrier • FERC Tariffs twitter.com/FLGovScott/ • Jones Act • Tolls  Florida Highway Patrol Escorts • Fuel Trucks • Station Employees

Considerations Coordination  Coordinate with Fuel industry to develop planning guide.  Engage with trucking companies to develop emergency staffing plan. Assessment  Explore sites for more fuel storage.  Evaluate feasibility of adding more racks at port terminals.  Assess the feasibility of accessing fuel storage of other public and private entities during an emergency.  Evaluate option to use fuel trains as temporary storage and dispensing facilities.

Considerations Response  Create a public information plan to effectively communicate fuel availability.  Coordinate with southeastern states on pre-agreed upon regional waivers for emergencies.  Identify critical gas stations along evacuation routes.  Coordinate with local emergency management officials to develop a plan for orderly fuel service during emergencies.