MichiganPetroleumShortageResponsePlan

MichiganPublicServiceCommission

DepartmentofLicensingandRegulatoryAffairs

August2013

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TableofContents

Introduction........................................................................................................................................................................1 

MichiganPetroleumSystemOverview...................................................................................................................2 

SupplyManagementMeasures...................................................................................................................................5 

StateSet‐AsideProgram.......................................................................................................................................7 

ReleaseofStateSet‐Aside.................................................................................................................................11 

PriorityEnd‐UserPlan.......................................................................................................................................13 

MinimumPurchase&Odd/EvenPurchasePlan....................................................................................16 

EnvironmentalFuelWaivers...........................................................................................................................19 

EmergencyRelieffromFMCSASafetyRegulations...............................................................................22 

DemandRestraintMeasures....................................................................................................................................25 

PublicInformationPrograms.........................................................................................................................26 

ExpandRidesharingPrograms.......................................................................................................................29 

SpeedLimitEnforcement.................................................................................................................................32 

StateDepartments’TravelBudgetReductions.......................................................................................34 

Appendix...........................................................................................................................................................................36 

A.Act191of1982,asamended.....................................................................................................................37 

B.EO–EstablishmentofStateSet‐Aside..................................................................................................42 

C.StateSet‐AsideEmergencyRules............................................................................................................45 

D.ApplicationforStateSet‐Aside................................................................................................................50 

E.AuthorizationforReleaseofStateSet‐Aside......................................................................................53 

F.EO–ImplementationofPriorityEnd‐UserPlan...............................................................................54 

G.PriorityEnd‐UserAppealsProcedure...................................................................................................56 

H.CertificateofPriorityEnd‐Use.................................................................................................................58 

I.EO–ImplementationofMinimumPurchasePlan............................................................................59 

J.EO–ImplementationofOdd/EvenPurchasePlan...........................................................................63 

K.CleanAirActSection211(c)(4)(C).........................................................................................................65 

L.2005EnergyEmergencyExecutiveOrders........................................................................................68        ExecutiveOrderNo.2005‐16 ........................................................................................... 68        ExecutiveOrderNo.2005‐17 ........................................................................................... 70        ExecutiveOrderNo.2005‐18 ........................................................................................... 72 

M.EmergencyRelieffromFMCSASafetyRegulations........................................................................73 

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Introduction

InresponsetothepriceandsupplyvolatilitycausedbytheArabOilEmbargoof1973,theIranian revolution in 1979, and the deregulation of U.S. oil prices in 1981, the EnergyAdministration(whichwaslatermergedwiththeMichiganPublicServiceCommission),inconjunction with the Michigan Department of Transportation (MDOT) developed aMichiganGasolineShortageResponsePlan. Theplan,published in1980andupdated in1981,presentedaseriesofoptionsthatcouldbeconsideredifMichiganwasfacedwithaserious gasoline shortage. These options contain measures designed both to managelimitedsuppliesandtoreduceoveralldemand.The Michigan Public Service Commission (MPSC) along with representatives from theMichigan Departments of Transportation, Agriculture, State Police, and Technology,Management&Budgethasbeenworkingtoupdatethisplan.Theresultoftheseeffortsisthe Petroleum Shortage Response Plan, a comprehensive set of demand and supplymanagementmeasureswhichcouldbeusedintheeventofafueldisruption/shortageoradeclaredenergyemergency.Theplanhasalsobeenexpandedtoincludediesel,propane,andheatingoil,andupdatedtobetteradapttomoderndrivinghabitsandconditions.Themajorchangestotheresponsemeasurescontainedintheoriginalplansinvolvetheeliminationofmeasureswhichweredeterminedtobeineffectiveand/orobsoleteduetosocietal,legalortechnologicalchanges.Othermeasureswere consolidated to eliminate redundancy and to reflect the growthofprogramswhichwere relativelynewat thedraftingof theoriginal plan (i.e., Carpooling,Vanpooling,andFlex‐TimeSchedulingPrograms).Sevenmeasureswereremovedentirely,including:

PreferredParkingforStateEmployeeCarpools, ReductionofSpeedLimit, ExtendedPurchasePlan, StaggeredDaysofOperation, SwitchingTrafficSignalstoFlashingYellow, TouristGasolineAvailabilityProgram,and UseSchoolBusesforPublicTransportation.

Theresultingplancontainsaconciserepresentationofshortageresponsemeasureswhichhavebeeneditedandreviewedbyrepresentativesoffivestatedepartments.Intheeventof a serious fuel shortage/supply disruption or a declared energy emergency, thesemeasureswillrepresentalistofreasonableandeffectiveresponseoptionstomitigatetheeffectsonthepublicandtohelpstabilizethesituation.ThesemeasurescanalsobefoundintheMichiganEnergyAssurancePlanasAppendixH.

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MichiganPetroleumSystemOverview

Michiganreliesonpetroleumproducts(gasoline,diesel,propane)tomeetnearlyone‐thirdof its energyneeds. Both gasoline anddiesel fuels are usedpredominately onhighways,withonlysmallamountsusedforotherpurposes.Thesinglelargestuseofgasolineisforcommutingtoandfromwork.Itisestimatedthat83percentofdriverscommutealoneandlessthan10percentdecidetocarpool.AlthoughgasolinedemandhasbeenonthedeclineinMichiganforalmosttenyears,residentsdroveanaverageof267millionmilesperdayin2010with a per capitamotor fuel use of 544 gallons per year. This per capita usage isslightly less thanthatofneighboringstates likeOhio, IndianaandWisconsin,butgreaterthan Illinois. Diesel fuel is also an extremely important transportation fuel with 991milliongallonsconsumedin2011,primarilybyhighwaytrucktravel.Inadditiontotransportation,fuelavailabilityforspaceheatingiscriticalduetotheState’softensevereandprolongedwinters.Inareaswherenaturalgaspipelinesareunavailable,heating oil or propane is the predominate fuel. Heating oilmaintains a relatively smallportion of the market share at less than one percent, while propane has a significantmarket share with about 9 percent of residential households using it as their primaryheatingaccordingtotheU.S.CensusBureau.Thisisthehighestresidentialpropaneusageofanystateinthecountry.As resultof this significantpetroleumdemand, it is important that theStatemaintainanadequateandreliablesupplyofcrudeoilandpetroleumproducts. Michigan’spetroleumsupplyissomewhatdiversifiedwithlargeamountsofcrudeoilimportedfromCanadaandthe Gulf Coast supplemented by someminor in‐state production. Crude oil and refinedpetroleum products (i.e., gasoline, diesel, kerosene, etc.) are primarily transported bypipelinesdue to the increasedsafetyandcosteffectiveness.Once thecrudeoilhasbeenrefined, several petroleum product pipelines are used to transport the product toMichigan’s Lower Peninsulamarkets. TheWolverine and BP Amoco pipelines run fromChicagoarearefineriestotheDetroitarea.Inaddition,theBuckeyesystemrunsnorthintoMichigan from refineries in Toledo and other parts of Ohio. These pipelines serve highpopulationregionsinSoutheasternandCentralLowerMichigan(Seemaponpage4).

Michigan’sonlyrefineryislocatedinDetroit,ownedandoperatedbyMarathonPetroleumCompanyLP. Therefinerywasrecentlyupgraded to increasecapacityand toallow it to

Name Company City State Capacity(bbls/day)Marathon MarathonPetroleumCoLLC Detroit Michigan 120,000BP‐Huskey BP‐HuskeyRefiningLLC Oregon Ohio 160,000Sunoco SunocoInc. Toledo Ohio 140,000BPWhiting BP‐ProductsNorthAmerica Whiting Indiana 413,000ExxonJoliet ExxonMobilCorp. Joliet Illinois 250,000

CitgoLemont CitgoPetroleumCorp. Lemont Illinois 167,000

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process heavier and less expensive crude oil imported from Canada via the EnbridgePipelinesystem.Ithasthecapacitytoprocess120,000barrelsofcrudeoilperdaywhichisequivalent to roughly 18 percent of the State’s daily petroleum consumption. Thus, themajority of the refined petroleum products used inMichigan are produced at refinerieselsewhere,suchasOhio,IndianaandIllinois.Of the crude oil refined by the Marathon Refinery,approximately 50 percent of the output is gasoline, 28percentdiesel,andasmallpercentageispropane.A42‐U.S.gallonbarrelofcrudeoilprovidesabout45gallonsof petroleum products including: gasoline, diesel, jetfuel,propaneandotherproducts.After shipment through pipelines to local bulk storageterminals, gasoline and other petroleum products aretypically held in bulk containers that service manycompanies.Productsarethenloadedintotankertrucksdestinedforwholesaleorretailoutlets. Thetankertrucks,whichcantypicallyholdupto10,000 gallons, usually have several compartments enabling them to transport differentgrades of gasoline or petroleum products. In 2013, there were 4,722 gasoline fuelingstationsintheStateofMichigan.Incontrasttoliquidpetroleumfuels,propanemaybesourcedfromnaturalgasprocessingaswell as fromrefineryoperations. Thepropane is then transportedpredominately viarailorpipelineandstoredinundergroundcavernsorlargeabove‐groundtankfarms.Itisthen transported by truck to end users. These tank trucks, called “bobtails,” deliver

propane to large storagetanks that are outsidehomes. The averageresidential propane tankholds about 500 gallons ofliquid fuel, and is refilledmultipletimesayear.In terms of an energyemergency, knowledge ofthepetroleuminfrastructureand distribution systemswithin the state is key todeveloping the most

effectiveresponse.Inrecentyears,thetrendhasbeentowarda“just‐in‐time”approachtomotor fuel inventories, so relyingon availableback‐up supplies is usuallynot anoption.Severe damage to pipelines or refineries could lead to shortageswithin days and couldtrigger one ormore of the voluntary ormandatorymeasures described in the followingplan.

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Itisextremelyimportantthatlocalgovernmentshavethecapacitytodealwithashortagebyassuringthatcriticalservicesaremaintained.AfuelshortagewouldhavetobesufficientlysevereandwidespreadtowarranttheGovernor’sdeclarationofanenergyemergencyandinitiationofstateplans.Further,theseplansaddressonlysupplyavailabilityanddonotdealwithprice.Inafreemarket,therapidincreaseinpriceduetoashortagecouldleaveinadequatefundstopurchasetherequiredamountoffuelwithinalocalgovernment’sbudget.

SupplyManagementMeasuresSupply management measures are programs designed to respond to petroleumdistributionproblemsbymanagingavailablesuppliesortheirdistributiontothepublicinatimeofshortage.Theefficacyofsupply‐sidemeasuresislimitedandthereforeshouldonlybeemployedinresponsetotheparticularproblemstheyaredesignedtopreventorsolve.If a rapid rise in price during a shortage caused a major drop in demand, supplymanagementmeasureswould be unnecessary and should not be used. However, if in asevere shortage, essentialpublic services suchaspolice and firehad their supply cutoffbecauseoftheir inabilitytocompetefor limitedsupplies,someoftheseprogramsshouldbeconsidered.Theprincipalfocusoftheseeffortsistominimizetheimpactsofashortageonessentialservices.

Set‐AsideProgramsTheStateSet‐AsideandReleaseofStateSet‐AsidemeasuresoutlinedinthisplanarebasedonprogramsthatexistedundertheFederalAllocationProgrambetween1974and1981.Theseprogramshave twomainapplications.The first is tomeethardshipneedsofbulkpurchasers1. If suppliesbecome limited, theprogramwouldmost likelybeusedtomeettheneedsofthisgroupfirst.Thesecondusewouldbeasthereleaseofaspecifiedquantityof petroleum product from the set‐aside to a part of the state experiencing a severeshortage. In this case, the additional supply could be directed to distributors (e.g., retailfuelingstations)andmadeavailabletothegeneralpublic.If the Release of State Set‐Aside was not successful at reducing lines at retail fuelingstations, the Minimum or Odd/Even Purchase Plan(s) could also be considered. TheMinimum Purchase Plan reduces tank topping (i.e., motorists not letting their gasolinetanksgetbelowhalf)andwouldbeneededparticularlyinurbanandsuburbanareas.TheOdd/Evenplanseekstodealwith linesonce theyhaveoccurredbyreducingbyone‐halfthenumberofvehicleseligibletopurchasegasolineonanysingleday.EssentialandPriorityNeeds

1Bulkpurchasersareindividualswithlargerfuelneeds(i.e.,50to100thousandgallons),suchassmallfarmers,buscompanies,deliveryservices,andmanufacturers,thatownpetroleumtanksandrelyontruckdeliveriestofillthemup.

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Thepriorityend‐userplanspecificallyprovidesfortwotypesofusers.Thefirst ispolice,fire protection, and emergency medical services. Under the priority end‐user measure,theseuserswouldbeeligiblefor100percentoftheircurrentrequirements. Theseuserswouldalsobe eligible for set‐asidewhile theywereawaiting certificationofpriorityusefromtheirsupplier.Thesecondgroupofessentialserviceproviderseligibleforassistanceis:

A. Agriculturalproducersanddistributorsofperishablefood,B. Energysuppliers,C. Publicmasstransportationincludingschoolbuses,D. Sanitationservices,E. Snowremoval,F. Telecommunicationscompanies,G. Utilitycrews,andH. Wastewaterandwatertreatment.

Thisgroupwouldbeexpectedtoincreasetheefficiencyoffueluseandmanageoperationson limited supplies available throughordinary channels. If for some reason the shortagewentbeyondtheirabilitytomanageit,thestatecouldprovideassistance.

WaiversIn addition to Set‐Aside Programs, further actions can and have been initiated incoordinationwith the federalgovernment. Thesemeasuresare involvedwitheasing thefederalregulatorymandateswhichwouldinhibitpetroleumproductdistributionduringashortage.First,isatemporarywaiverofdriversafetyregulationsunderrulespromulgatedby the Federal Motor Carrier Safety Administration (FMCSA), and second, areenvironmental fuel waivers issued by the Environmental Protection Agency (EPA) formotorgasolineordistillate(diesel)fuel.Grantingwaiversrequiresastrongdemonstrationofneedand/oradeclarationofenergyemergency. Whiletheycanbeenactedatnocost,they do require collaboration between state departments and ultimately can only begrantedbythefederalgovernmentunlessthereisadeclaredenergyemergency.BothdriversafetyandairqualitywaiverswereusedduringtheAugust2003blackoutandinresponsetothepetroleumsupplydisruptioncausedbyHurricaneKatrinainthefallof2005. Inaddition,useofdyeddiesel fuelwasalsowaived inthe fallof2005. InbothoftheseeventstheGovernordeclaredanEnergyEmergencyunderPublicAct191andthenissuedexecutiveorderstoinitiatetheactions.

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StateSet‐AsideProgram

Description

The Governor would establish a State Set‐Aside Program by Executive Order upondeclaration of an emergency and authorize the Michigan Public Service Commission(MPSC)tooperatetheprogram.Thismeasurewouldrequirethateachmajoroilcompanyoperating in the state set‐aside up to three percent of the total anticipated supply ofgasolineanddieselfuel,propaneandheatingoil,ifneeded,eachmonth.TheMPSCwouldbeauthorized todirect thesaleof this reserve tobulkpurchaserswhodemonstrate thattheyneededtheproducttoperformessentialpublicservices.

IntentofMeasure

The State Set‐Aside Program is designed to provide additional supplies ofmotor fuel tobulk users experiencing an emergency or severe hardship caused by a shortage. Theprogramprovidesamechanismformaintainingessentialservicesbyprovidingmotorfuelsuppliestomeettheemergencyneedsofthefollowingusers:

A. Agriculturalproducersanddistributorsofperishablefood,B. Emergencymedicalservices,C. Energysuppliers,D. Firefightingunits,E. Lawenforcement,F. Publicmasstransportation,includingschoolbuses,G. Sanitationservices,H. Snowremoval,I. Communicationscompanies,J. Utilitycrews,andK. Wastewaterandwatertreatment.

ConditionsUnderWhichTheMeasureMayBeUsed

The Set‐Aside Program could be used after theGovernor declared an energy emergencyunder Public Act 191 of 1982. The decision to implement the Set‐Aside Program willdepend, in large part, on whether the market will provide bulk users with sufficientgasolinesuppliestomaintainessentialservices.Duringapetroleumshortage,theMPSC’sEnergy Emergency Center (EEC) will monitor gasoline supplies and demand throughcontactwithmajoroilcompanyrepresentativesandotherappropriatesources. TheSet‐AsideProgramwouldbeimplementedwhentwoconditionsexisted.First,refinerswouldbe unable to supply their accounts with adequate gasoline supplies, limiting them to apercentageof theirhistoricalpurchasesor contractualvolumes. Second,essentialpublicservices would either be interrupted or threatened due to inadequate supplies and theproblemwouldbeexpectedtolastforseveralmonths.Thus,theSet‐Asidecouldprovidea

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temporarysolutionuntil theshortageabatedandsupplies foressentialservicesreturnedtonormal.

LegalAuthority

Section4ofPublicAct191of1982,authorizestheGovernortobothrestricttheconditionsunderwhich energy resourcesmay he sold to consumers and direct an energy resourcesupplier toprovideanenergy resource toanypersonor facilitywhichprovides servicesessentialtothehealth,safety,andwelfareofMichiganresidents.The Governor, after declaration of an energy emergency, will issue an Executive Orderdirectingeachmajoroil companyoperating in thestate toestablishaSet‐AsideProgramandappointan individualwithin the company toactasprincipal contact for the state inadministrationoftheprogram.TheMPSCwillpromulgateemergencyadministrativerulesandproceduresgoverningtheeligibilityofapplicants.ThisorderandadministrativeruleswillalsoprovidethelegalbasisfortheReleaseofSet‐AsideProgram.LegalConstraints–Statecross‐brandinglawslimittheflexibilityofemergencyreleasesofmotorfuel.LawsuitscouldbefiledbydistributorsclaimingamarketadvantagehasbeenprovidedtocompetitorsbyincreasingtheirsupplythroughtheSet‐Aside.

Implementation

Start‐UpProcedures–

1. TheGovernorwillissueanExecutiveOrderestablishingtheSet‐AsideProgram,anddirect the MPSC, Michigan Department of Licensing and Regulatory Affairs, toadministertheprogram.

2. The Governor will immediately notify representatives of all major oil companiesoperatingintheStatethattheSet‐AsideProgramwillbeput intooperation. Eachcompanywillbeaskedtoappointacompanyrepresentativetoactforandonbehalfofthecompanyforadministrationoftheprogram.Withinfivedays,eachcompanywillthenprovidetheMPSCwiththenameandtelephonenumberoftheappointedrepresentative. Apackageof information including theExecutiveOrder,acopyoftheapplication,andadministrativeruleswillbeprovidedtoeachmajoroilcompanyandpetroleumjobber.

3. The State Set‐Aside volume shall be based on the total anticipated supply to bemadeavailabletotheState’sdistributionsystemforconsumptionwithinthestate.The Prime Supplier’s Monthly Report EIA‐782 will serve as the source of thisinformationwhich, ifunavailable,shallbedirectlycollectedonacomparablestatereport.

4. TheMPSCcallcenterandtollfreenumberwillbeusedtohandlecallsrelatedtotheemergency and forwarded to the Energy Data and Security section. OnlinesubmissionsusingfillableformsontheMPSCwebsitecouldalsobeused.Leadtime–approximatelythreedays.

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5. Apress releasewillbeprepared for theGovernornotifying thepublic that aSet‐AsideProgramwillbeputintooperation.ThereleasewillcontaintheMPSCtollfreenumberandindicatewherethepublicmayreceivemoredetailedinformationandset‐asideapplications.

Operations–EligibleapplicantswillcontacttheMPSCtoreceiveanapplication(unlessthesituationisextremelycritical,inwhichcaseatelephonereleasemaybemadeandafollowupapplicationwouldbereturnedby theapplicant to theMPSCwithinoneweek). Uponreceiptof theapplication foremergencyassistance, theMPSCwill investigate,verify,andevaluate each for eligibility. To facilitate relief for these users, jobbers and distributorsmaysubmitanapplication if theyspecificallydetailandobtainsigneddocumentsstatingthe emergency needs of each end‐user. Applicants must certify that all informationcontainedontheapplicationistrueandaccurate.Spotcheckswillbeconductedtoassurereleasesaremadeonlyforlegitimateneedsandarenotstockpiledorresold.AnyapplicantwhohasknowinglyprovidedfalseinformationwillbesubjecttopenaltiesprovidedforinPublicAct191of1982.Primesupplierswillbenotifiedinwritingandbytelephoneoremailofthoseapplicantstowhichareleaseoffuelshouldbemade.Applicantswillbenotifiedofapprovalordenialoftheirapplication.Applicantswhohavebeendeniedwillbeadvisedoftheirrighttoappealto the Chairman of theMPSC. The case and the appealwill be reviewed and a decisionrenderedbytheChairmanwithin20days.Evaluation – A follow up survey of randomly chosen set‐aside applicants could beconducted to assess program responsiveness. The survey should request information onthenumberofcallsnecessarytoreachtheMPSC,thenumberofdaystheapplicantwaitedbefore the case was resolved, the number of days the applicant was without fuel, etc.Recordsofcallsreceivedandapplicationsprocessedwillalsobemaintained.

CostofImplementationandOperations

Start‐upandoperationalcostswouldincludeanyadditionalequipmentorstaffneededforaperiodofapproximately90days.Existingstaffwouldbeutilizedfirst,butadditionalcaseresolution officers, allocation officers and clerical positions may be necessary. Travelexpenseswouldalsobeprovidedforenforcementofon‐sitecheckstoresolveapplicants’issues.

Advantages

1. Quicklymovesmotorfueltoend‐userstomeetemergencyorhardshiprequirements.

2. Thisisaprogramthathasbeenusedinpastenergyemergenciesandproveneffective;theoperationisunderstoodbyoilcompanies.

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Disadvantages

1. Potentialforabusebyapplicantsseekingemergencyorhardshiprequirementswheretheseconditionsdonotexist.

2. Difficultyinverificationofinformationprovidedforevaluation.3. Doesnotaddressthecapabilityofanessentialusertocoverthecostofthefueltobe

purchasedundertheset‐asideauthorization.

SupportDocuments

A. EnergyEmergencyAct–PA191 B. EO–EstablishmentofStateSet‐AsideC. StateSetAsideEmergencyRulesD. ApplicationforStateSetAside

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ReleaseofStateSet‐AsideDescriptionA State Set‐Aside Program requires suppliers to reserve up to three percent of the totalpetroleum supply available to the Michigan market. The state may direct major oilcompanies to distribute additional petroleum supplies from this set‐aside reserve inresponsetoshortages.Underthismeasure,theChairmanoftheMPSCwouldreleaseallora portion of the State Set‐Aside to retail fueling stations in a specific area of the statesufferingasupplyimbalance.An“area”wouldbedefinedasacounty,agroupofcounties,municipalities,orStandardMetropolitanStatisticalArea(SMSA).ThisprogramwouldonlybeusedinconjunctionwiththeStateSet‐AsideProgram.IntentofMeasureThepurposeofthisactionwouldbetoincreasetheavailablesupplytoretailfuelstations,propane distributers, etc., in a market or geographic area where disproportionateshortageswerebeingexperienced.ConditionsUnderWhichtheMeasureMaybeUsedTherearetwobasicconditionsunderwhichthemeasuremightbeused.Thefirstwouldbewhenshiftsinthedemandforgasolineoccurredduringashortage,whichdidnotfollowoilcompanies’ distribution of supplies. This could happen in a shortage when gasolinesuppliers institute their own internal allocation program which limits supplies to apercentageofhistoricalorcontractualpurchases.Thesecondconditionwouldoccurwhena group of major suppliers to an area of the state experienced a greater short‐fall ofgasoline thansupplierswhoprovidedgasoline tootherpartsof thestate. Theresultsofeither of these events would be the reduction in stations’ hours of operation and theprospectsoflengthylinesofcarsatretailstations.LegalAuthorityThis action could be initiated by the MPSC Chairman under authority contained in theExecutiveOrderestablishingaStateSet‐Asideandadministrativerulesgoverning itsuseduringadeclaredStateofEnergyEmergency(PublicAct191of1982).LegalConstraints–Itwouldbedifficulttoensurethatthedistributionfromeachsupplierwashandledinanequitablemanner. Eachcompanyinvolvedwillhaveadifferentmeansofallocatingsuppliesinashortageintheabsenceofafederalallocationprogram.ImplementationStart‐Up Procedures – The MPSC Chairman, upon assessment of the state’s supplysituation, may designate a county, a group of counties, a municipality, or a SMSA as a“shortage”areabasedonanyorallofthefollowinggeneralguidelines.

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1. Increaseindemandintheareaduetorecenteconomicdevelopmentandchangesindrivingpatternswhicharenotmatchedbytheallocationsofgasolinetothearea.

2. Widespreadoccurrenceoflinesatretaillocationsalongwithasignificantreductioninretailgasolinestations’operationhours.

3. Determinationthatsuppliesfortheareaaresubstantiallybelowthestateaverage,basedonmarketingdataofthemajoroilcompaniesandjobber/distributors.

Operations–Upondesignationofashortagearea,theMPSCwillordersomeorallof theprimesuppliers(majoroilcompanies)withpurchasersintheaffectedareatoreleasepartorallof theirset‐asidevolumesthroughtheirnormaldistributionsystemto increasetheallocation of all the retail gasoline stationswhich they supply locatedwithin such areas.The order will be in writing and effective immediately upon presentation to the primesupplier’sdesignatedstaterepresentative.Suchordersshallrepresentacallontheprimesupplier’sset‐asidevolumesforthemonthofissuanceirrespectiveofthefactthatdeliverycannotbemadeuntilthefollowingmonth.ArecommendationoftheprimesupplierstobeeffectedandtheamountoffuelinvolvedwouldbedevelopedbytheMPSCinconsultationwith the affected companies. These supplies would be in addition to any supplies theaffectedareawouldnormallybeentitledto.Evaluation – Each company covered by this order would be required to submit a briefnarrativedetailingthetimeandeffortinvolvedtodistributetheadditionalfuel.ThiswouldbeduetotheMPSCwithintendaysfollowingaset‐asideorderissuedforthispurpose.CostofImplementationandOperationsThisactionwouldbeimplementedwithresourcesbudgetedundertheset‐asideprogram.Minimum lead time required is oneweek. Thiswould include preparation of the order,assurance of compliance among the prime suppliers, and responding to any questionswhichthisactionmayraise.Advantages

1. Thisactioncouldquicklymovesuppliesintoanareaexperiencingashortage.2. Itisaccomplishednotbytakingsuppliesawayfromotherareasofthestate,but

ratherallocatingsupplieswhichhavebeenwithheldfromthemarket.3. Additionalsuppliesoffuelwouldbemadeavailabledirectlytothegeneralpublic.

Disadvantages

1. Thisactionmaylimittheabilityofthestatetorespondtoanycriticalemergencieswhichmayoccurelsewhereinthestateafteramassreleasewasmade.

2. InadequatevolumesoffuelintheSet‐Asidemaylimittheeffectivenessofthisaction.

SupportDocuments

E. AuthorizationforReleaseofStateSet‐Aside

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PriorityEnd‐UserPlanDescription

The Priority End‐User Plan requires suppliers to provide priority end‐users (police, firefightingandemergencymedicalservices,etc.)with100percentoftheircurrentmotorfuelrequirementsuponcertificationtotheirsuppliersofthequantityneededtomaintaintheiroperation.

IntentofMeasure

ThePriorityEnd‐UserProgramisdesignedtoguaranteethatnecessarysuppliesofmotorfuelareavailableforusersessentialtoensurethehealth,safety,andwelfareofthegeneralpublic.Thepriorityend‐userplanspecificallyprovidesfortwotypesofusers.Thefirst ispolice, fire protection, and emergency medical services. Under the priority end‐usermeasure, these users would be eligible for 100 percent of their current requirements.Theseuserswouldalsobeeligible for set‐asidewhile theywereawaiting certificationofpriorityusefromtheirsupplier.Thesecondgroupofessentialserviceproviderseligibleforassistanceis:

A. Agriculturalproducersanddistributorsofperishablefood,B. Energysuppliers,C. Publicmasstransportationincludingschoolbuses,D. Sanitationservices,E. Snowremoval,F. Telecommunicationscompanies,G. Utilitycrews,andH. Wastewaterandwatertreatment.

Thisgroupwouldbeexpectedtoincreasetheefficiencyoffueluseandmanageoperationson limited supplies available throughordinary channels. If for some reason the shortagewentbeyondtheirabilitytomanageit,thestatecouldprovideassistance.

ConditionsUnderWhichTheMeasureMayBeUsed

ThePriorityEnd‐UserPlancouldbeusedaftertheGovernordeclaredanenergyemergencyunderPublicAct191of1982.Thedecisiontoimplementtheplanwilldependonwhetherpriority end‐users are receiving sufficient amounts of fuel to maintain essential publicservices. The plan would be implemented when two conditions existed. First, refinerswouldbe unable to supply their customerswith adequate fuel supplies, andwould limitthem to a percentage of their historical purchases or contractual volumes. Second, theoperation of essential public services would either be interrupted or threatened due toinadequatefuelsupplies.

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LegalAuthority

Section4ofPublicAct191of1982,authorizestheGovernortobothrestricttheconditionsunderwhich energy resourcesmay be sold to consumers and direct an energy resourcesupplier toprovideanenergy resource toanypersonor facilitywhichprovides servicesessentialtothehealth,safetyandwelfareofMichiganresidents.TheGovernorwillissueanExecutiveOrderwhichwillestablishapriorityend‐userplan.TheMichiganPublicServiceCommission(MPSC)willprovideforresolutionofdisputesarisingfromthisorder.

Legal Constraints—by requiring that suppliers provide current requirements, priorityusers may request volumes in excess of contractual arrangements which could bechallenged.

Implementation

Start‐UpProcedures—

1. TheGovernorwillissueanExecutiveOrderestablishingaPriorityEnd‐UserProgram.

2. TheGovernorwillnotifytherepresentativesofallmajoroilcompaniesoperatinginMichiganofthePriorityEnd‐UserProgram.Eachcompanywillbeaskedtodesignateacompanyrepresentativeanddevelopproceduresforprocessingcertificationapplications.AninformationpackagecontainingtheExecutiveOrder,acertificationapplication,andallregulationspertainingtotheprogramwillbesenttoeachmajoroilcompanyoperatinginMichiganandlocalgovernments.

3. TheMPSCwillprepareapressreleasefortheGovernornotifyingthepublicthataPriorityEnd‐UserProgramwillbeputintooperation.

4. AunitwouldbeestablishedwithintheMPSCtohandleinquiries,complaints,andresolveanydisputes.

Operations—

1. Priorityend‐userswillcertifytheircurrentrequirementstotheirsupplierswhich,ifajobber,canrecertifytotheirsupplier.

2. Thiscertificationcanbeinletterformoronformsprovidedbythestate3. Thecertificationshallinclude:

a. Thename,businessaddress,phonenumber,andcontact‐personforuser.b. Theessentialusesforwhichthefuelwillbeemployedby:policeagencies,

firefightingunits,andemergencymedicalservices.c. Thename,address,phonenumber,andcontact‐individualoftheir

supplier(s).d. Theon‐sitestoragecapacity(onlybulkpurchasersareeligibleforthe

program).

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e. Thelast12‐months’purchasesfromthesuppliertowhomthecertificationisbeingmade.

f. Theanticipatedmonthlyrequirementsforthenext12months.g. Ifvolumesarerequestedinexcessofprioryear’spurchases,awritten

justificationforincreasemustbeincluded.h. Aswornstatementtestifyingtothetruthandaccuracyoftheabove

information.4. Supplierswillhave30days,uponsubmissionofthecertification,tobeginto

supplypriorityuserswiththerequiredamountsofgasoline.5. Certificationbypriorityend‐userstojobbersanddistributorsshallbeforwarded

totheirprimesupplierwhowillprovidetheadditionalsuppliesofgasolinetothatdistributortomeettheneedsoftheirpriorityaccounts.

6. AnydisputeshouldbedirectedtotheMPSCforresolution.Thiscanincludebothappealsfromapriorityuserorasupplierchallengingacertification.

7. Pendingcertification,priorityusersasdefinedinthisplan,shallbeeligibleforadditionalsuppliesfromtheStateSet‐Aside.

Evaluation – Following discontinuance of this program, major oil companies will berequiredtosubmitareportoftheMPSCdetailingtheiroperationsundertheprogram.

CostofImplementationandOperations

The only cost associatedwith thismeasurewould be that of staffing cost to respond toproblemsandquestions.

Advantages

1. Thepriorityend‐userplanwouldensuretheavailabilityofadequatesuppliesofgasolinetomaintainessentialemergencyservices.

2. Theplancouldbequicklyimplemented.

Disadvantages

1. Disputesmayarisebetweensuppliersandpriorityuserswhichwoulddelaythedeliveryofgasoline.

2. Priorityuserscouldabusetheplanbydivertingsomeofthegasolinefornon‐priorityuse.

SupportDocuments

F. EO–ImplementationofPriorityEnd‐UserPlanG. PriorityEnd‐UserPlanAppealsProcedureH. CertificateofPriorityEnd‐Use

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If each of the drivers of Michigan’s 5.1 million registered automobiles increased the average volume of gasoline in their vehicle’s tank by four gallons (as owners do when they top off their tanks), an additional 20.4 million gallons (17.4 percent of the state’s average monthly usage) would be required.

MinimumPurchase&Odd/EvenPurchasePlanDescriptionThisplanconsistsoftwoparts:(1)aminimumpurchaseplanwhichcouldbeusedalone,and(2)anodd/evenplanwhichmustbeusedinconjunctionwiththeminimumpurchaserequirements. Thisminimumpurchase plan requiresmotorists to purchase aminimumamountofgasoline/dieselor forfeit to theretailer thedifferencebetween theirpurchaseandtheminimum. IntheOdd/EvenPlan,motoristswithoddnumbervehiclelicenseplatescould only purchase gasoline on a daywhen the day’s datewas odd.Drivers of vehicleswithevennumberedplatescouldonlypurchasegasolineonevennumbereddays.Certainemergencyandessentialusersalongwithnon‐Michiganresidentswouldbeexempt.

IntentofMeasuresTheintentofthisplanistominimizetanktoppinginanefforttopreventoreliminatelinesofvehicleswaitingtopurchase motor fuel and to increase fuel supply. Apenaltywouldbeimposedonanydriverwhopurchasesless than the required amount. During a period ofenergy emergency, tank topping removes valuable fueloffthemarketandencourageshoardingbehavior.Whendrivers are provided an incentive to refill their tanksonlywhennecessary,motorfuelwillbemoreequitablydistributed, allowing all citizens the opportunity torefuel.TheOdd/EvenPlanattemptstodealwithlinesoncetheyhaveoccurredbyreducingbyone‐halfthenumberofvehicleseligibletopurchasegasolineonanysingleday.2

ConditionUnderWhichThisMeasureMightBeUsedThis measure would be used when significant lines of vehicles either develop at retailfuelingstationsorwhenconditionsexistwhichwouldmakethemlikely.Pre‐conditionsforthe development of lines would include a shortage of motor fuel supplies resulting insignificant declines of the average hours of operation by retail gasoline station owners.Linesaremostlikelyinurbanandsuburbanareasaspeoplestayclosertohome.Therefore,this plan would probably be implemented first in urban areas. It is unlikely that thismeasurewouldbeneededorusedintheState’sruralareas.

2 ResearchandInnovativeTechnologyAdministrationBureauofTransportationStatisticshttp://gis.rita.dot.gov/StateFacts/StateFacts.aspx?StateName=Michigan

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LegalAuthorityTheGovernorwouldauthorizethismeasurebyissuinganExecutiveOrderunderauthoritycontainedinPublicAct191of1982.Section4(a)(iii),statesthattheGovernormayplace“restrictionsontheconditionsunderwhichenergyresourcesmaybesoldtoconsumers.”LegalConstraints–Enforcementandprosecutioncouldprovedifficultinabsenceofpublicacceptanceoftheprogram.

ImplementationStart‐UpProcedures–

1. TheGovernorwouldsigntheExecutiveOrderimplementingtheprogramwhichwouldbefilledwiththeSecretaryofStateandtheDepartmentofStatePolice.

2. Apressreleasewouldbeissuedindicatingwhenandwheretheprogramwouldbeputintoeffectandindicatinghowtheprogramwouldwork.

3. CopiesoftheExecutiveOrderwouldbeprintedandmailedordisseminatedelectronicallytoallpetroleumstations/oilcompanies,andcountyandlocalgovernmentsinthedesignatedarea.

4. TheMPSCcallcenterwouldbeusedtohandleinquiries,complaints,andresolveanydisputes.Possibleviolationswouldbereferredtothecountyorlocalpolice.TheMPSCwebsiteandothersocialmediamethodscouldbeutilizedtohandlepublicinquiriesandcomplaints.AllpublicannouncementswouldbemanagedbytheJIC.

Operations – Response and follow‐up by the MPSC to questions or complaints on theprogram.Evaluation–Theplan’seffectivenesswouldbemonitoredintwoways:(1)servicestationswould be randomly polled to determine if problems were occurring as a result of theprogram; and (2) records would be maintained on problems reported to the MPSC,including complaints by consumers and retailers. Following the discontinuation of thisprogram,anevaluationreportsummarizingtheabovemeasureswillbeprepared.

CostsofImplementationandOperationsImplementation state‐widewould include staff time required to distribute copies of theExecutive Order, through e‐mail and postalmail. TheMPSCmaintains a customer call‐center,solittlebeyondstaffeducationandtrainingwillneedtooccurtohandleincominginquiriesandcomplaints. StateandLocal lawenforcementmayberequested toprovidesupporttoparticipatingfuelingstationsifcustomersbecomeunrulyordisruptive.

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Advantages

1. Quickimplementation,relativelylowcosts.2. Theprogramisgenerallyunderstoodbythepublic.3. Minimumpurchasecanbeeffectiveinreducingtanktoppingandavoidinglinesand

canbeimplementedanywhereinthestate.

Disadvantages

1. Retailoperationsmayhavedifficultyprogrammingelectronicfueldispensersforaminimumpurchase.

2. Programeffectivenessreliesonpublicandretailgasolinestationoperators’cooperation.

3. Retailoperationsmayhavedifficultyinidentifyingacommercialorexemptedvehicle.

4. Doesnotprovideaneffectivemeansofcontrolformiscellaneousfuelpurchases.

SupportDocuments

I. EO–ImplementationofMinimumPurchasePlanJ. EO–ImplementationofOdd/EvenPurchasePlan

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In 2005, Hurricane Katrina destroyed a number of oil and natural gas facilities in the Gulf of Mexico causing price and supply ramifications for Michigan. Governor Granholm declared a State of Energy Emergency followed by two Executive Orders that waived Hours of Service requirements for drivers of transportation fuels and also waived the federal rules on the environmental specifications for summer grade gasoline.

 

Energy Emergency – EO 2005‐16 

FMCSA Waiver – EO 2005‐17 

Vapor Pressure Waiver – EO 2005‐18 

EnvironmentalFuelWaiversDescriptionIntheeventofafuelsupplyemergency,theEnvironmentalProtectionAgency(EPA),withtheconcurrenceoftheDepartmentofEnergy(DOE),maytemporarilywaiveafuelorfueladditiverequirementifdoingsowillalleviatethefuelsupplyemergency.Fuelwaiversmayapplytobothgasolineanddiesel fuel. Atypicaluseofawaivermayinvolveshiftingfueluse between geographic areas. For example, a fuelwaivermay allow the use of highervolatilitygasolinefromruralareasofthestatetoaddressafuelsupplyshortageinurbanareas such as Detroit3. Similarly, awaiver of the summer volatility requirements couldallow winter grade gasoline to be used during a summer high ozone season if refiningcapacityhasbeensignificantlydegraded.

IntentofMeasureDisruptions can be caused by a number of situations including refinery or pipelineinfrastructuredamageastheresultofnaturaldisastersorequipmentfailure.Temporary fuelwaivers are intended tohelp ensurethat an adequate supply of fuel is available,particularly for emergencyvehicleneeds. If the fuelwaiver criteria have been met, the EPA may waivetime and type fuel restrictions for a designated areaand period of time. This provides petroleumsuppliers with added supply flexibility during ashortage.

ConditionsUnderwhichthisMeasureMaybeUsedFuel or fuel additive requirements may betemporarily waived if doing so will alleviate a fuelsupply emergency or shortage. “Spot” or localizedshortages generally are not fuel supply disruptionsforwhichawaivermaybeissuednorareeventsthatcould have been reasonably foreseen or prevented and are a result of a lack of prudentplanningonthepartofthesuppliersofthefuelorfueladditive. Afuelsupplydisruptionthat meets the criteria for a waiver must be one that results in a generalized supplyemergencyforwhichaccesstoalternativefueltypesinthemarketplacewillproviderelief.

3 ReformulatedgasolinecontainsalowerReidVaporPressure(RVP)tocontroltheemissionsofvolatileorganiccompounds(VOC). Itisonlyrequiredduringthehighozoneseason(in Detroit this period is from June 1st through September 15th) and appliestogasolinerefineries,importers,distributors,resellers,carriers,retailers,andwholesalepurchaser‐consumers

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LegalAuthorityA fuelwaiver canbe issuedonlywhen the criteria specified in theCleanAirAct Section211(c)(4)(C)havebeenmet.Ingeneral,thesecriteriaallowafuelwaivertoaddressonlyatemporary emergency fuel supply shortage existing throughout a state or region. Thisshortage must be caused by an unusual situation and be unavoidable through prudentplanning.

ImplementationIffuelwaiversareunderconsiderationinMichigan,itisimportanttoensurecoordinationbetweenallnecessarystateagencies.TheMPSCwouldworkwiththeMichiganDepartmentof Environmental Quality (DEQ) and the Michigan Department of Agriculture and RuralDevelopment (MDARD) to request a fuel waiver from the US Environmental ProtectionAgency(EPA).TheEPAworkscloselywithstateofficialsespeciallyduringemergencies.Inemergencycircumstances,aformalrequestforafuelwaiverismadetotheEPAby,oronbehalf of, the Governor after consultation with the DEQ and MDARD.. During normalbusiness hours (Monday through Friday, 8 am to 5 pm Eastern Time) the first point ofcontactforobtaininginformationaboutafuelwaiverrequestistheEPAAirEnforcementDivision, at (202) 564‐2260, or the Transportation and Regional Programs Division, at(734) 214‐4956. Outside of normal business hours, the point of contact is the EPAEmergencyOperationsCenter,at(202)564‐3850,whichisabletocommunicatewiththeEPAofficialswhoprovideassistanceregardingfuelwaiverrequests.SourceDocument:FrequentlyaskedquestionsonFuelWaivers4

CostofImplementationandOperationThereisnocostassociatedwiththismeasure.

FuelSavingsThismeasurewouldnotgeneratefuelsavings.

Advantages

1. Inapplicablesituations,awaiverwouldbeaneffective,lowcostmethodtoalleviatesupplyshortagesduringsummermonths.

2. Additionalgasolinesuppliesmayhelpmitigatepriceincreasesfromthesupplyshortage.

3. Doesnotrequiresacrificeonthepartofthepublic.

4 Fuel Waiver FAQs:http://www2.epa.gov/enforcement/fuel‐waivers

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Disadvantages

1. Gasolinevolatilitystandardsarenecessarytocontroltheemissionsofvolatileorganiccompounds(VOC),whichcontributestoozonepollution.FuelswaiversthatallowuseofgasolinewithhighervolatilitymayresultinincreasedVOCemissions.

2. Couldpossiblybeusedasanexcusebyrefinerstosavemoneybyavoidingthepurchaseofmoreexpensivereformulatedgasoline.

3. ItseffectivenessislimitedtospecificcircumstanceswhereaneasingofEPArulescanbebeneficial.Itdoesnotaddressoverallsupplyshortageswhereallfuels(regardlessofblend)areinshortsupply.

SupportDocuments

K. CleanAirActSection211(c)(4)(C)L. 2005EnergyEmergencyExecutiveOrders

EnergyEmergency–EO2005‐16 FMCSAWaiver–EO2005‐17 VaporPressureWaiver–EO2005‐18

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EmergencyRelieffromFMCSASafetyRegulations(HoursofServiceWaivers)

DescriptionDriver hours of service limits are put in place by the Federal Motor Carrier SafetyAdministration (FMCSA) and are designed to protect truck drivers from overwork andfatigue. In periods of extreme weather where the delivery of petroleum products (i.e.,propane, heating oil) is hampered due to impassable roads5 or where there is anuncharacteristic increase in demand, motor carrier drivers often need to exceed theselimitationsinordertodeliversufficientfueltoprotectthewell‐beingofresidentsandlimitthe effects of an energy emergency. Petroleum supply interruptions may also requiredrivers to travelgreaterdistances toacquire fuelwhichcanresult inexcessivedelaysatfuel terminals (because lines are long). In either of these examples, waivers of theunderlying safety regulations establishing these driver hour limitations may beappropriatetoallowdriversmoretimetodeliverandpickupfuel.

IntentofMeasureRelief fromFMCSAsafety regulations is intended toalleviate thepressureofdriverhourlimitswhen these restrictions are hampering the delivery of fuels during an emergency.Hoursof servicewaiversallowmarketers todelivercriticalheating fuel supplies to theircustomersduring timesof severeweatherwhenbad roads cause significationsdelays intraveltime.Theprimarymotivationforthemeasureissafetyandnottomitigatetheeffectsofhighfuelprices.

ConditionsUnderwhichthisMeasureMaybeUsedHoursofservicewaiversareonlyconsideredunderconditionsinwhichproblemscoverawidegeographicarea,affectanumberofstates,andarecausedbyfactorsthatexceedthereasonableboundsoftheindustry’sabilitytorespond.Itshouldbenotedthatinadditiontowaivinghoursofservice,theFederalMotorCarrierSafetyRegulations(FMCRs)(390.23)waives compliance with most safety regulations when an emergency is declared.Accordingto49CFR390.5anemergencymeansanystorm(e.g.,thunderstorm,snowstorm,ice storm) earthquake, explosion, blackout, or other occurrence (natural or man‐made)that interrupts the delivery of essential services and supplies (such as food and fuel) orotherwiseimmediatelythreatenshumanlifeorpublicwelfare.Undersuchcircumstances,theFMCSAFieldAdministratormaydeclareanemergencyifthereisaregionalcrisiswhichjustifiessuchregulatoryrelief.Intermsofhoursofservicewaivers,thisexemptioncannotexceedeitherthedurationofthemotorcarrier’sordriver’sdirectassistanceinprovidingemergencyrelieftotheaffectedarea,30daysfromthedateoftheinitialdeclarationofthe

5 Inruralareaswherecustomersarewithoutaccesstonaturalgas,residentialspaceheatingfuelssuchaspropaneandheatingoil(#2fueloil)mustbedeliveredbytruck.

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emergency,ortheexemptionfromtheregulationsbytheFMCSAFieldAdministrator.Thelesserofthesethreeconditionsdeterminethelengthofthewaiver.Hours of servicewaivers can also be granted if an emergency has been declared by thePresidentoftheUnitedStates,theGovernor,orbytheirauthorizedrepresentativeshavingauthority to declare emergencies. In this instance, permission from the FMCSA FieldAdministratorwouldnotbeneeded. Foramoreextensive listofcriteriaandproceduresforwhenhoursofservicewaiversmaybeappropriate,seetheAppendix“ProceduresforStatestoRequestRegionalDriverHoursWaiversfortheFMCSAintheEventofaPotentialSeriousShortageofDeliverableFuels.”

LegalAuthorityLimitsonthenumberofhoursatruckdrivercanoperateavehiclefallunderrequirementsof the FMCSA (49 CFR §390‐ 399). Any Motor Carrier providing direct relief to theemergency is relieved from all of 49 CFR Parts 390 to 399 (not just hours‐of service).Regulationsarealsorelievedinanystatethatthe“supportingcommercialmotorvehicle”isoperating, regardless of whether the State in which they are operating has declared anemergency. Details on Hours of Service limits and specific rules (“390.23 Relief fromregulations”whichincludesParts390to399)canbefoundontheFMCSAwebsite.SeetheAppendix“EmergencyRelieffromtheFederalMotorCarrierSafetyRegulations(FMCSR)49CFR390.23”forasynopsisofapplicableregulations.

ImplementationIf a governor has declared an emergency in all or any part of the state, driver hours ofserviceareautomaticallywaivedfordriversmakingdeliveriestoprovideemergencyrelieftotheaffectedarea. Inadeclaredenergyemergency,suchasaseverepropaneshortage,propaneor fueloildeliverydriversareexempted. Thispermits themtodriveadditionalhours for delivery or to reach distant supply terminals and return expeditiously. In anaturaldisaster, suchasahurricaneordeclaredemergency,driverscanworkadditionalhoursneededtoresupplyfuelandothergoods.Driverspassingthroughmultiplestatesdonotrequirethatwaiversbeineffectinthosestatesiftheyareprovidingsuppliestoanareawhereanemergencyhasbeendeclared.

CostofImplementationandOperationTherearenoadditionalcoststofacilitateanhoursofservicewaiverfromtheFMCSA.

FuelSavingsThismeasureisnotintendedtoreducefuelusage.

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Advantages

1. Thisisaneffectiveandstraightforwardwaytohelpmeetconsumerdemandwhenthereisanimpedimenttopetroleumshippinganddelivery,providedtheshortageisbasedondistributionbottlenecksandnotatruesupplyshortage.

Disadvantages

1. Themeasurecouldbeusedunnecessarilyiftheproperduediligenceisnotperformed.

2. Possiblepushbackfromlaborgroupsifthenatureoftheemergencydoesnotwarrantawaiver.

SupportDocuments

M. EmergencyRelieffromtheFMCSASafetyRegulationsN. NASEOGuidanceonFMCSARegulation

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DemandRestraintMeasuresDemandrestraintmeasuresfocusprimarilyonencouragingandempoweringthepublictoconserve during a supply shortage. Measures require only voluntary participation withvarying levels of commitment/effort. Many conservationmeasures (i.e., ride share, flex‐time) are already in place and require only a quick ramp up in the event of an energyemergency.The Public Information Program will be a major component in all demand restraintmeasuresandwilllikelybeusedinallstagesofanenergydisruption.Insituationswherean energy emergency has not been declared, an effortwill bemade to highlight currentresourcesandtoinfluencethepublic’sbehaviorandconservationhabits.Lastly,thelistofdemandrestraintmeasurespresentedismeanttoofferarangeofoptionsthat can be drawn upon when necessary. In selecting the appropriate response, fuelsavingsmustbe consideredagainstpotential costsand theeaseof implementation. Thefuel savings resulting from each of the demand restraint measures will ultimately bedependentuponanumberofexternalfactors:• Willthepublicperceivetheseriousnessofashortage?• Willthepublicbelievetheycanplayaroleinresolving(mitigating)theshortage?Answerstothesequestionsmaybeinfluencedbyboththemedia’sresponsetoapetroleumshortage, and any actions or declarations of the state or federal government. Stategovernment’s role would be to assist the public in coping with shortages and todisseminate accurate and timely information which will help mitigate the effects of theshortage.

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PublicInformationProgramsDescriptionThe public information programs will be used to: (1) inform citizens about the energyshortagesituation;(2)announceemergencymeasuresbeingimplementedinMichigan;and(3) explainways to reduce energy consumption. Individualmeasureswill be promotedthrough the use of press releases, press conferences, television, radio, internet,newspapers,andsocialmedia.PotentialProgramstoReduceDemandFuelSavingsEducationalTips:Whetherthroughprint,radio, televisionor internetmedia,practical tips should beprovided to thepublic tohelp reduce their fuel usageduring anenergyemergency. Thepublicinformationcampaigncouldincludethefollowingtypesofinformation:

• Walk,cycle,rideshareandusepublictransitwhenpossible,• Observepostedspeedlimitsandmaintainpropertirepressure,• Planyourroutestominimizedistanceandavoidcongestedareas,and• Otherfuelsavingtipsasappropriate

Bicycle Program – In order to decrease the pressures on gasoline or diesel supplies,commuters could be encouraged to use bicycles as alternativemeans of travel. For thisprogram to be successful, local governments and employersmay need to providemorebicycle racks or secured parking areas for employees, and provide (or secure access to)facilities such as showers and changing areas for commuters. Long term bike lanes areincreasingly incorporated into new roadways to accommodate cyclists for daily travel.ContactinformationandbikingmapsarelocatedontheMICommutewebsite.

PromotionofFlex‐TimeScheduling–Theencouragementofflex‐timeschedulingwillallowemployeesacrossthestatetovarytheirworkschedules.Employerswillbeencouragedtoofferoneoftherecommendedoptionstotheiremployeestofacilitateridesharingandtheuseofmasstransit.

Tele/E‐Commute Program – Encourage businesses to facilitate telecommuting and workfromhomearrangementsforallorpartoftheworkweek. Greaterflexibilityintheworkweekshouldprovidemeansforworkerstoreducetheirrequiredtravel.

The Gas Prices website from the Michigan Attorney General enables Michiganders to report evidence suggesting unlawful conduct in gasoline pricing. The Attorney General investigates and prosecutes individuals and companies that unlawfully fix the price of gasoline in Michigan.

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The JIC works within the Incident Command System (ICS) and reports to the Incident Commander/Unified Command. It is typically staffed by state agency Public Information Officers (PIOs) to represent their respective agency’s involvement, provide support to the overall JIC mission, and lend individual expertise and talents to the operation.

IntentofMeasureTheintentofthismeasureistobothinformcitizensontheenergyshortageandfacilitatecitizen participation in voluntary programs that will maintain mobility and minimizeinconveniencescausedbylimitedfuelsupplies.Thismeasurewillbeimplementedduringinitialstagesofafuelshortageandwouldcontinueuntiltheresolutionoftheshortageorenergyemergency.

ConditionsUnderwhichthisMeasureMaybeUsed

This effort would be among the first programs to be employed. Establishing effectivecommunicationswiththepublicisessentialifactionstakeninresponsetoashortagearetoachieve positive results. Public Information Programs are a key element of each of themeasurescontainedintheMichiganPetroleumShortageResponsePlan.

If thesituationshouldworsen intoanemergencyordisaster involving multiples agencies and/orjurisdictions,aJointInformationCenter(JIC)maybeactivated. The JIC serves as the central point ofcontact for all news media regarding the state’sresponse efforts and is designed to effectivelycoordinate public information efforts andcommunication resources with all involved stateagencies, the Governor’s office, and otherorganizationsrespondingtotheincident.

LegalAuthorityNolegalauthorityisrequiredtoinitiatethisaction.

ImplementationDuringamoresevereshortage,theGovernorwillissueapressreleaseinformingcitizensoftheenergyshortage.Aspokespersonwillbeappointedtorepresentthestate’spositiononthe severity of the shortage and to inform thepublic ofmeasures being implemented toalleviatethesituation.Thespokespersonwillholdpressconferencesonaregularbasis,asdictated by the severity of the fuel shortage. Additional program promotion will beemployedwiththeimplementationofeachmeasure.If mandatory supplymanagementmeasures are implemented, the advertising campaignwill be increased to keep the public aware of changes that are occurring. TheMichiganPublic Service Commission (MPSC) will help coordinate this campaign. The amount ofadvertisingwilldependonpublicresponseandtheseverityoftheshortage.

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CostofImplementationandOperationCostwiththismeasurewouldincludethelaborcostsofanyadditionalstaffandadvertisingexpensessuchas:billboards,radioandtelevisiontime,newspaperads,etc.

FuelSavingsThepublicinformationprogramfacilitatespublicparticipationinfuelconservationaswellas emergency programs. Fuel savings resulting from a Public Information Programhavenot been estimated. Savings have been attributed, however, to each of the specificmeasurestobepromotedusingthePublicInformationProgram.

Advantages

1. The Public Information Program will be used to get citizens to participate inemergencyprograms.

2. Thepublic’s accepting of the need for theseprogramswill be dependent on theirunderstanding of the problem and their belief that individual actionswillmake adifferenceintheoverallsolutiontotheproblem.

3. TheProgramwillenabletheStatetoproperly“frame”therelevant issuessoas toincreasepublicunderstandingofthesituation,andtosolicitthecooperationofthepublic and major constituent organizations (e.g., fuel dealers association, ride‐sharingorganizations)intheproposedsolutions.

Disadvantages

1. Therearenodisadvantagesidentifiedtoimplementingthisprogram.

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ExpandRidesharingProgramsDescriptionCurrent ridesharing programs provide carpool/vanpool matching by local ridesharingoffices to area residents andemployerson request. Carpool lots are alsomaintainedonmajor commuter routes to provide safe and convenient parking facilities for Michigan'scarpoolers.Theseprogramswillbeexpandedduringafuelshortage.

IntentofMeasureTheintentofthismeasureistoincreaseexistingridesharingresourcestomeetincreaseddemandduringaperiodofenergyemergency.Increasedridesharingfortheworktripwillincrease vehicle occupancy, reduce vehicle miles of travel (VMT), decrease fuelconsumption,andlessenpeakhourcongestion.Parkinglotsinurbanareaswillalsobelesscrowded.TheamountofthereductioninVMTdependsuponthesizeoftheurbanareaandaveragedistancetraveledtoandfromwork.

ConditionsUnderWhichThisMeasureMayBeUsedThis measure would be used if demand for ridesharing resources exceeded currentprogram capabilities.While ridesharing programs are regularlymonitored to keep pacewithdemand,anenergyemergencycouldcauseasuddenspike inprogramparticipationwhich could overwhelm state resources. Depending on the duration of the emergency,appropriate measures should be taken to ensure ridesharing programs are capable ofmeetingdemand.ThismeasurewouldnotrequireadeclarationofenergyemergencyandwouldbeimplementedinternallyasneededbytheMDOT.

LegalAuthorityThis is a voluntary public program and would not require a declaration of energyemergency. TheGovernorcouldadviseMDOTtoincreasethescopeoftheseprogramsinresponsetotheshortage.

ImplementationOperations– The advertising campaign for ridesharingmeasureswill be coordinated bytheMDOTOfficeofCommunicationsPIOanddisseminatedthroughcustomaryinformationchannels.Dependingonthedurationoftheshortage,abillboardadvertisingcampaignmaybe initiated to place information about reducing energy consumption and alternativetransportationalongmajorcommuterhighwaysandlocalroadways–theareasmostlikelytohave single‐occupant vehicles. Encouragementwould alsobe given to settingup ride

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boardsinhightrafficareas(postoffices,schools,churches)orestablishinginternetbasedexchangesorforumstofacilitatecarpoolsforweeklyerrandsandroutinetrips.Start‐Up Procedures – Initial steps would involve leveraging current resources to theirmaximumlevel.PromotionofthisprogramisincludedinthePublicInformationProgram.CurrentResources–AllcurrentMDOTcarpoolservicesarecurrentlyavailableonlineattheMichiganRidesharewebpageandaresummarizedbelow:

a) RideshareOfficeMapandContacts‐LocalRideshareOffices(LRO)helpcommutersfindvacanciesinexistingvanpools,ormatchpeoplewhoareinterestedinforminganewcarpoolorvanpoolgroup.

b) GuaranteedRideHomeProgram‐TheGuaranteedRideHomeProgram(GRH)offersreimbursementfortaxifareorcarrentalshouldanemergencyorunexpectedovertimecauseyoutomissyourcarpoolorvanpoolride.

c) CarpoolLotMap‐IncludesasearchablemapoflotlocationsthroughoutMichigan.d) MichiVanCommuterVanpools‐MichiVan,sponsoredbyMDOTandoperatedby

VPSIInc.,suppliesfullyinsuredpassengervanstocommutergroups.e) FindaMichiVanRoute‐Thiswebsitefeaturesalistofcurrentvanpoolroutes.

Ramp‐Up – If demandwas anticipated to be in excess of current program capabilities, ashort‐termplanwouldneedtobeimplemented.AnappropriateplantoincreaseprogramcapacitywouldbehandledbyMDOT.Evaluation–EachLROmaintainsinformationonthenumberofrequestsreceivedandwillcompare the difference in volumes before and after the Public Information Program isinstituted.ThisinformationwillbereportedmonthlytoMDOT.

CostofImplementationandOperationsIf theworkload becomes too burdensome for current staff, the LROs can hire additionalpeople, as needed, on a temporary basis. Their duties will consist of data entry andprovidingcarpoolmatchliststopotentialcarpoolers.Thiswillhelpfreemoreexperiencedstaffmembers to continue efforts to expand employer‐based ridesharing programs. Thecost of the temporary program expansion will be based on salaries and any additionalfundsneededtoincreaseridesharinginfrastructure.

FuelSavingsRidesharing is a proven technique for reducing fuel savings by removing the number ofvehiclesontheroad.Italsomakesuseofvehicleseatsthatwouldotherwisebeunoccupiedand avoids empty backhauls associated with forms of public transit such as buses. Tocalculatefuelsavingstheformulabelowcanbeused.

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TotalFuelSavings=

(Dailyarea‐wideVMT) x(Percentagereductioninarea‐wideVMT) x(Consumptionrateingallons/mile) x(DailyFuelSavings(gallons)) x(#ofWorkingDays)

Inaddition,MDOTprovidesanonline“CosttoCommuteCalculator”whichcanbeusedtoestimateaperson’sfuelandcostsavingsonamonthlyandyearlybasis.

Advantages

1. Traffic flow improvements and fuel savings benefits are gained from increasedcarpooling.

2. Carpoolersenjoyreducedcommutingcostsandrelaxedtravel.3. Area‐widecarpoolprogramscanbeexpandedeasilywithminimumcost.

Disadvantages

1. Individualmobilitymaybelimitedbecausemostcarpoolshavesetrulesthatdonotallow members to run errands on the way to or from work, and because eachmembercannotdictatetheirownarrivalanddeparturetimefromwork.

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SpeedLimitEnforcementDescriptionThe Governor directs the Michigan State Police and all other law enforcement agencieswithinthestatetoissueticketstodriverswhoexceedpostedspeedlimitsatthediscretionoftheofficerundertheexistingcircumstances. Ifthisactionwastakenduringadeclaredstateofenergyemergency,thepointscheduleforviolationofthespeedlimitasprovidedforinPublicAct25of1980couldbemodifiedbasedontheseverityoftheemergency.IntentofMeasureThismeasure is a consistent and ongoingmeasure to enforce State laws and to protectpublic safety, but also intended to increase fuel efficiency by enforcing compliancewithposted speed limits. By raising awareness regarding the potential repercussions ofspeeding, not only through enforcement penalties and increased insurance costs, butdecreasedefficiencyingasolineconsumption,correctiveconsumerbehaviorisexpected.ConditionsUnderWhichtheMeasureMayBeUsedThismeasureis inforceonanongoingbasis. ThePublicInformationProgramandothervoluntary measures would be used in support of this policy in a declared EnergyEmergency.LegalAuthorityThis action could be taken by the Governor under the authority granted to the ChiefExecutiveundertheMichiganConstitution.ThepointscouldbeassessedbytheGovernorundertheauthorityofPublicAct191of1982.ImplementationTrafficsafetyisatoppriorityfortheStateofMichigan.Lawenforcementofficersenforcespeedlimitsonlimitedaccessfreewaysandsecondaryroadwaysaspartofoveralltrafficenforcementandenforcethelegislatedpostedspeedlimitsonallpublicroadways.Lawenforcementofficersissuetrafficcitationsforviolationsofthemotorvehiclecodewiththe intent to change driver behavior and reduce property damage and injury crashes.When motorists are stopped for a violation, officers consider the totality of thecircumstances and make a determination as to whether a citation or a warning iswarranted.Adeclaredfuelshortagewouldbeanadditionalfactorconsideredbytheofficerwhenconductingspeedenforcement.In the case of severe shortages, enforcement resources would be adjusted accordingly,whichmayincludeadditionalpersonnelorequipment(e.g.,speedmeasurementdevices).

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Theintentistoinfluencedriverbehaviorthroughacombinationofpublicinformationandconsistentenforcement. Implementationofthismeasurewouldnotincludeamandateoflowerspeedlimits.Start‐UpProcedures–TheGovernorwill issueapressreleasetoinformthepublicoftheState ofEnergyEmergency and the importanceof observingposted speed limits tobothsafety and fuel economy and indicatewhether an increase in pointswill result from theemergencydeclaration.Operations – The Director of the Michigan State Police will communicate to lawenforcementpersonnelthedeclarationoftheStateofEnergyEmergencyandanyresultingincreasesinpointtotalsforviolations.Evaluation–ExistingstatesurveysofaveragehighwayspeedscompiledbyMDOTwillbeexaminedtoevaluatetheimpactofpubliceducationandenhancedenforcement.CostofImplementationandOperationAsanongoingeffort,thismeasureisaccomplishedwithexistingstaffandresourcesandisintended to maintain current enforcement levels. In the event it was determined thatincreased State Police patrols were necessary, estimates of those expenses would bedeterminedatthattime. Asubstantial increaseincourtcasesisnotanticipated,butmayrequireincreasesinbudgetstocoverovertimeexpensesifitoccurs.FuelSavingsTheobjectiveofthismeasureistominimizethenumberofmotoristsdrivinginexcessof70mph.Gasmileagedecreasesasthevehiclesurpasses55mph,theoptimalspeedfortheaveragecar. Asthespeedapproaches70mphgasmileageisreducedby17percentanddrops by 28 percent at 80 mph. Actual fuel savings depend on the extent of publiccompliance.Advantages

1. Thismeasureisongoinganddoesnotrequiresignificantoperationalchanges.2. Thismeasurecontinuallyimproveshighwaysafety.

Disadvantages

1. Higherlevelsofcompliancemaynotoccurwithoutdirectlyincreasingthenumberofpoliceonthehighways.

2. Publicsupportforincreasedenforcementforfuelsavingsmaynotbe“robust”andmayultimatelyresultindecreasedsupportforlawenforcementingeneral–ifthepublicperceptionisthattheagenciesarespendingincreasedamountsoftimewriting“energycitations.”

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StateDepartments’TravelBudgetReductionsDescriptionTheGovernorwoulddirectstatedepartmentdirectorstoreduceexpendituresforvehicletravel.Theaggregateamountofthereductionwouldbeproportionaltotheseverityoftheenergy emergency. Each department’s reduction would be based on that department’sneedtotravelinordertoprovideessentialstateservices.

IntentofMeasureThepurposeof thisaction is two‐fold. First, itwill reducedemand for fuelpurchased inbulk by the state. Second, it will demonstrate the need for emergency motor fuelconservation. Stategovernmentmustbeabletoshowitsabilitytoreducefueluseatthesametimethegeneralpublicisbeingaskedtoconserve.

ConditionsUnderWhichTheMeasureMayBeUsedThismeasurewouldtypicallybeusedattheonsetofashortage.Becausethemeasuredoesnot require a declaration of energy emergency, it can be used earlier than mandatoryprogramsandwouldcomplementothervoluntaryprograms.Rapidly rising gasoline prices in a shortage may make this measure unnecessary.Departmentaltravelbudgetsinitiallybasedonlowergasolinecostmaybeunabletocovertheexpenseofnormaloperations,forcingcurtailmentoftravel.

LegalAuthorityThisactioncouldbetakenbytheGovernorbytheauthoritygrantedtotheChiefExecutiveundertheMichiganConstitution.Legal Constraints – In a severe shortage, the reduction in usage ordered could be verylarge.Atsomepointthereductionsorderedmayimposeupontheabilityofadepartmentto provide statutory or constitutionally mandated responsibility. Exemptions for someactivities would have to be provided for, or the statue, rule, or order temporarilysuspendedbytheGovernorunderPublicAct191of1982.

ImplementationStart‐UpProcedures–TheDepartmentofTechnology,ManagementandBudget (DTMB),will develop travel reductions for each statedepartment andagency. TheGovernorwillthen ask eachdepartment to respond to the requested reduction. Department directors

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will review their travel needs in light of the suggested reduction and recommend to theGovernorbyprogramandappropriationunitwherereductionscanbeaccomplished.Uponagreementbetween theGovernor and thedepartmentdirectors, theGovernorwillannounce by Executive Order the amounts of the reductions. Travel funds will berestrictedbywithholdingmoneyfromeachdepartment’stravelbudget.Operations–Departmentswillindividuallyinitiateactionstokeepexpendituresfortravelwithinnewlyestablishedtravelallotments.TravelexpenditureswillbemonitoredagainsttherevisedtravelbudgetsbytheDepartmentofTechnology,ManagementandBudget.Evaluation – A sample of travel vouchers submitted from each department prior to andfollowing implementation of the travel reduction measure will be reviewed to assesschangesintravelactivityandtransportationmodes. Inaddition,travelexpenditureswillbe monitored and compared to both pre‐emergency levels and revised travel budgettargets.

CostofImplementationandOperationsThis action could be taken quickly and at low cost. Establishing proposed departmentreductionsintravelbudgetscouldbecompletedwithintwoweeks.Athirdweekwouldberequired tonegotiate the reductionwitheachdepartment toarriveat thecutback tobeorderedbytheGovernor.TheDepartmentofTechnology,ManagementandBudgetwouldthenhavethreeweekstoreduceallottedtravelfundstothetargetedlevelandestablishareporting procedure to monitor the program’s effectiveness. This measure would beaccomplishedwithexistingstaffandresources.

Advantages

1. Thismeasurewillprovideanexample for thecommercialand industrial sector tofollowsimilarbudgetreductionsintravel.

2. Themeasurewillreducestatemotorfuelconsumption.3. Additional state funds may be available for other purposes as a result of the

reductionintravelbudgets.

Disadvantages

1. The measure could prevent the state from providing all existing services to thepublic.

2. Themeasurewillrestrictstateemployeesfromparticipatinginactivitiesawayfromtheimmediateworkstation.

3. Additional expenses may occur by reducing travel (i.e., the cost of over‐nightaccommodationsratherthanreturningtoregularworkstations).

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Appendix

A.Act191of1982,asamended.....................................................................................................................37 

B.EO–EstablishmentofStateSet‐Aside..................................................................................................42 

C.StateSet‐AsideEmergencyRules............................................................................................................45 

D.ApplicationforStateSet‐Aside.................................................................................................................50 

E.AuthorizationforReleaseofStateSet‐Aside......................................................................................53 

F.EO–ImplementationofPriorityEnd‐UserPlan...............................................................................54 

G.PriorityEnd‐UserAppealsProcedure...................................................................................................56 

H.CertificateofPriorityEnd‐Use.................................................................................................................58 

I.EO–ImplementationofMinimumPurchasePlan.............................................................................59 

J.EO–ImplementationofOdd/EvenPurchasePlan.............................................................................63 

K.CleanAirActSection211(c)(4)(C).........................................................................................................65 

L.2005EnergyEmergencyExecutiveOrders..........................................................................................68      ExecutiveOrderNo.2005‐16 ........................................................................................................... 68     ExecutiveOrderNo.2005‐17.....................................................................................................................................70      ExecutiveOrderNo.2005‐18 ........................................................................................................... 72 

M.EmergencyRelieffromFMCSASafetyRegulations........................................................................73 

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A.Act191of1982,asamended

DeclarationofStateofEnergy Emergency

ANACT toprovide for thedeclarationof a stateof energyemergency; toprovide forprocedurestobefollowedafteradeclarationofastateofenergyemergency;tocreatean energy advisory committee and prescribe its powers and duties; to prescribe thepowersanddutiesofthegovernor;toprescribepenalties;andtorepealcertainactsandpartsofacts.

History:1982,Act191,Imd.Eff.June23,1982

ThePeopleoftheStateofMichiganenact:10.81Definitions.[M.S.A.3.1001(11)]

Sec.1.Asusedinthisact:(a)“Energyadvisorycommittee”meansthecommitteecreatedundersection2.

(b)“Energyemergency”meansaconditionofdangertothehealth,safety,orwelfareofthecitizensofthisstateduetoanimpendingorpresentenergyshortage.

(c)“Energyresource”meanselectricity,naturalgas,syntheticgas,apetroleumproductincludingaliquefiedpetroleumgas,coal,woodfuel,geothermalsource,hydropower,nuclearmaterial,orothersourceproducingpowerorheat.

(d)“Energyresourcesupplier”meansapersonwhofurnishesanenergyresourceforthepublicatthewholesaleorretaillevel.

(e)“Energyshortage”meanslackofadequateavailableenergyresourcesinthestate,oranypartofthestate,asdeterminedbytheenergyadvisorycommitteeorthegovernor.

(f)“Person”meansanindividual,partnership,corporation,organization,orassociationofanykind.

History:1982,Act191,Imd.Eff.June23,1982;‐‐Am.1990,Act229,Imd.Eff.Oct.8,1990.

Compiler'sNote:FortransferoffunctionsrelatingtoenergypolicyfromtheEnergyAdministration,DepartmentofCommerce,tothePublicServiceCommission,DepartmentofCommerce,seeE.R.O.No.1986‐4,compiledat§460.901oftheMichiganCompiledLaws.

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10.82Energyadvisorycommittee;creation;membership;chairperson;notifyinggovernorofimpendingenergyemergency;determination.[M.S.A.3.1001(12)]

Sec.2.(1)Anenergyadvisorycommitteeiscreated.Thecommitteeshallconsistofthedirectorofcommerce,thedirectorofthedepartmentofagriculture,thechairpersonoftheMichigan public service commission, the director of public health, the director oftransportation, and thedirectorof thedepartmentof statepolice.Thegovernor shalldesignate1ofthe6membersoftheenergyadvisorycommitteeaschairpersonofthecommittee.

(2)Theenergyadvisory committee shallnotify thegovernorofan impendingenergyemergency. The energy advisory committee shall determine whether an energyemergency is imminent on the basis of information available to the energy advisorycommittee fromtheMichiganpublicservicecommission,otherstateagencies, federalagencies,andothersourcesofinformationincludingcomputerinformationsystems.

History:1982,Act191, Imd.Eff. June23,1982 ;‐‐Am.1990,Act229, Imd.Eff.Oct.8,1990.

Compiler'sNote:FortransferofpowersoftheDirectoroftheEnergyAdministrationassociated with the Director's designation as a member of the Energy AdvisoryCommittee to the chairperson of Public Service Commission, see E.R.O. No. 1986‐4,compiledat§460.901oftheMichiganCompiledLaws.

10.83Stateofenergyemergency;declaration,continuation,extension,andtermination.[M.S.A.3.1001(13)]

Sec. 3. (1) The governormay declare, by executive order or proclamation, a state ofenergyemergencyuponnotificationofanimpendingenergyemergencybytheenergyadvisory committee under section 2(2), or upon the governor's own initiative if thegovernorfindsthatanenergyemergencyexistsorisimminent.

(2) Except as provided in subsections (3) and (4), the state of an energy emergencydeclaredbythegovernorpursuanttosubsection(1)shallcontinueuntilthegovernorfindsthattheenergyemergencynolongerexists,oruntilthestateofenergyemergencyhasbeenineffectfor90days,whicheverperiodisshorter.

(3)Afterastateofenergyemergencyhasbeenineffectfor90days,thelegislaturemayapproveanextensionofthestateofenergyemergencyforaspecificnumberofdaysbyaconcurrentresolutionadoptedbyarecordrollcallvotebyamajorityofthememberselectedtoandservingineachhouseofthelegislature.Ifthelegislaturedoesnotacttoextendthestateofenergyemergencypursuant to thissubsection, thestateofenergyemergencyisterminated.

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(4) The legislaturemay terminate a state of energy emergency at any time after thegovernordeclaresastateofenergyemergency,byaconcurrentresolutionadoptedbyarecordrollcallvotebyamajorityofthememberselectedtoandservingineachhouseofthelegislature.

History:1982,Act191,Imd.Eff.June23,1982.

10.84Powersofgovernorduringenergyemergency.[M.S.A.3.1001(14)]

Sec.4.Duringanenergyemergency,thegovernormaydoallofthefollowing:(a)Orderspecific restrictionson theuseandsaleof energy resources.Restrictions imposedbythegovernorunderthissubdivisionmayinclude:

(i)Restrictionsontheinteriortemperatureofpublic,commercial,industrial,andschoolbuildings.

(ii)Restrictionsonthehoursanddaysduringwhichpublic,commercial,industrial,andschoolbuildingsmaybeopen.

(iii)Restrictionsontheconditionsunderwhichenergyresourcesmaybesoldtoconsumers.

(iv)Restrictionsonlightinglevelsinpublic,commercial,industrial,andschoolbuildings.

(v)Restrictionsontheuseofdisplayanddecorativelighting.

(vi)Restrictionsontheuseofprivatelyownedvehiclesorareductioninspeedlimits.

(vii)Restrictionsontheuseofpublictransportationincludingdirectionstocloseapublictransportationfacility.

(viii)Restrictionsontheuseofpupiltransportationprogramsoperatedbypublicschools.

(b)Directanenergyresourcesuppliertoprovideanenergyresourcetoahealthfacility;school; public utility; public transit authority; fire or police station or vehicle;newspaper or television or radio station for the purpose of relaying emergencyinstructions or other emergency message; food producer, processor, retailer, orwholesaler;andtoanyotherpersonorfacilitywhichprovidesessentialservicesforthehealth,safety,andwelfareoftheresidentsofthisstate.

(c) By executive order, suspend a statute or an order or rule of a state agency or aspecificprovisionofastatute,rule,ororder,ifstrictcompliancewiththestatute,rule,or order or a specific provision of the statute, rule, or orderwill prevent, hinder, or

40

delay necessary action in copingwith the energy emergency. The governormay notsuspendacriminalprocessorprocedureorastatuteorrulegoverningtheoperationofthe legislature.At the timeof the suspension of a statute, rule, or order or a specificprovisionofastatute,rule,ororder, thegovernorshallstate theextentof theenergyshortage and shall specify the provisions of a statute, rule, or order which aresuspended,thelengthoftimeforwhichtheprovisionsaresuspended,andthedegreetowhich the provisions are suspended. A suspended statute, rule, or order shall bedirectlyrelatedtoanenergyemergency.

History:1982,Act191,Imd.Eff.June23,1982.

10.85Executiveorder,proclamation,ordirectiveissuedbygovernor;rescissionoramendment;duration;continuationforextendedperiod;dissemination;notificationoflegislature.[M.S.A.3.1001(15)]

Sec.5.(1)Thegovernormayissueanexecutiveorder,proclamation,ordirectivehavingtheforceandeffectoflawtoimplementthisact.Thegovernormayrescindoramendanexecutiveorder,proclamation,ordirective.

(2) An executive order, proclamation, or directive issued under this act shall beeffectiveforthedurationofastateofenergyemergencyasprovidedinsection3(2).Ifthe legislature approves an extension of a state of energy emergency pursuant tosection3(3),anexecutiveorder,proclamation,ordirectiveshallcontinueineffect fortheextendedperiodunlessbyaconcurrentresolutionadoptedbyarecordrollcallvoteby amajority of themembers elected to and serving in eachhouseof the legislaturedisapproves the executive order, proclamation, or directive, or unless the executiveorder,proclamation,ordirective is rescindedby thegovernorpursuant tosubsection(1).

(3) An executive order, proclamation, or directive issued under this act shall bedisseminatedpromptlybymeanscalculatedtobringitscontentstotheattentionofthegeneral public and shall be filed promptly with the secretary of state and thedepartmentofstatepolice.

(4) The governor shall notify the legislature promptly of an executive order,proclamation,ordirectiveissuedunderthisact.

10.86Violationofact,order,proclamation,ordirectiveasmisdemeanor;penalty;separateoffense;actionbyattorneygeneralorprosecutingattorney.[M.S.A.3.1001(16)]

Sec. 6. (1) A person who knowingly violates this act or an order, proclamation, ordirectiveissuedbythegovernorunderthisact,isguiltyofamisdemeanorpunishablebyafineofnotmorethan$500.00.Eachdayaviolationcontinuesisaseparateoffense.

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(2)Theattorneygeneraloraprosecutingattorneyofacountymaybringanactioninacourt of competent jurisdiction to prevent a violation of this act or of an executiveorder,proclamation,ordirective issuedpursuanttothisact,ortocompelapersontoperform a duty imposed on the person under this act or an executive order,proclamation,ordirectiveissuedunderthisact.History:1982,Act191,Imd.Eff.June23,1982.

10.87 Powers of governor not limited, modified, or abridged by act. [M.S.A.3.1001(17)]Sec. 7. This act shall not limit, modify, or abridge the authority of the governor toproclaimastateofdisasterpursuanttotheemergencypreparednessact,ActNo.390ofthe Public Acts of 1976, being sections 30.401 to 30.420 of the Michigan CompiledLaws,ortoexerciseanyotherpowersvestedinthegovernorbythestateconstitutionof1963,statestatutes,orthecommonlawofthestate.10.88Repealed.1983,Act152,Imd.Eff.July18,1983.[M.S.A.3.1001(18)]

Compiler'sNote:Therepealedsectionpertainedtotheapplicabilityofsections1to7afterJune1,1983.

10.89Repealof§§10.41to10.48.[M.S.A.3.1001(19)]

Sec.9.ActNo.38ofthePublicActsof1979,asamended,beingsections10.41to10.48oftheCompiledLawsof1970,isrepealed.

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B.EO–EstablishmentofStateSet‐AsideforPetroleumProducts

ExecutiveOrderNo._____of20______

AuthorityandScopeBasedontheauthorityvestedinmebySection4ofActNo.191ofthePublicActsif1982,andupondeclarationofastateofenergyemergencyintheExecutiveProclamation<year>‐_______of_______underthisact,I,<Governor’sname>,Governor,herebydirecteachprimesupplierofpetroleumproductstotheStateofMichigantosetasidethreepercent(3%)ofitsprojectedsalesofmotorgasoline,distillatefuelsincludingkerosene,No.1fueloil,No.2fueloil,dieselfuel(allgrades)andpropaneeachmonth,tobedirectedforsaletowholesalepurchasersoressentialend‐usersidentifiedbytheStateofMichiganasexperiencinghardshipduetoinsufficientsuppliesofpetroleumproductsanduponapprovalofacertificationofhardshipbytheState.Thisorderbecomeseffective12:01a.m.,(month,day,year).IherebydesignatethePublicServiceCommission,MichiganDepartmentofLicensingandRegulatoryAffairsasthestateofficeresponsiblefortheadministrationoftheStateSet‐Asideassetforthbelow.Inthiscapacity,thePublicServiceCommissionshallhavethefollowingdutiesandresponsibilities:

1. Promulgateadministrativeruleswhichwillspecifytheproceduresandcriteriaforobtainingrelieffromtheset‐aside.

2. ProvideamechanismwhichwillallowforappealsofanydecisionsmadebythePublicServiceCommission.

3. ProvideameanstoassurethatfuelreleasedfromtheStateSet‐Asideisusedforhardshippurposesonly.

4. Utilizetheset‐asidetoprovideforthehealth,safety,andwelfareofthecitizensofMichigan.

StateSet‐AsideProgram

1. Volumes

A. Aprimesuppliershallinformthestateoffice,atleastoneweekbeforethefirstdayofeachmonth,oftheestimatedvolumeofpetroleumproductssubjecttoStateSet‐AsidetobedeliveredintoMichiganforconsumptionwithinthestate.

B. Theset‐asidevolumeavailabletothestateofficeforaparticularmonthshallbetheamountscalculatedbymultiplying.03byeachprimesupplier’stotalprojectedsalestobeavailableinthesubsequentmonthforconsumptionwithintheStateofMichigan.

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C. TheStateSet‐Asideforaparticularmonthmaynotbeaccumulatedordeferred,butshallbemadeavailablefromstocksofprimesupplierswhetherdirectlyorthroughtheirwholesalepurchaser‐resellers.

D. Volumesremaininginaprimesupplier’sset‐asideattheendofthemonthwhichhavenotbeenusedshallrevertbacktothesuppliertobecomepartofthesubsequentmonth’ssupplyandshallberetainedandmadeavailabletoaccountsandcustomersintheStateofMichiganinanequitablemanner.

2. CompanyRepresentative–Eachprimesuppliershalldesignateacompany

representativetoactforandonbehalfoftheprimesupplierwithrespecttotheStateSet‐AsideProgram.Eachprimesuppliershallnotifythestateoffice,inwritingandwithintenworkdaysofthedateofthisorder,ofsuchdesignation.

3. AuthorizingDocument–Thestateofficeshallissueadocumentauthorizingthe

assignmentoftheamountofpetroleumproductstobereleasedfromtheset‐asideuponfullorpartialapprovalofanapplicant’srequest.Acopyofthisdocumentshallalsobeprovidedbythestateofficetothedesignatedcompanyrepresentativeoftheprimesupplierfromwhichtheassignmentistobemade.Anauthorizingdocumentissuedbythestateofficeiseffectiveuponissuanceandrepresentsacallontheprimesupplier’sset‐asidevolumesforthemonthofissuance,evenincaseswheredeliveryoftheproductsubjecttotheauthorizingdocumentcannotbemadeuntilthefollowingmonth.

4. AreaReleaseofStateSet‐Aside

A. Atanytimeduringthemonth,thestateofficemayorderthereleaseofpartorallofaprimesupplier’sset‐asidevolumethroughtheprimesupplier’snormaldistributionsysteminthestate.

B. Thestateofficemaydesignatecertaingeographicalareaswithinthestateassufferingfromanintrastatesupplyimbalance.Atanytimeduringthemonth,thestateofficemayordersomeoralloftheprimesupplierswithpurchaserswithinsuchgeographicalareastoreleasepartoralloftheirset‐asidevolumethroughtheirnormaldistributionsystems.Thiswillincreasetheallocationtoallthesupplier’spurchaserslocatedwithinsuchareas.

C. Ordersissuedpursuanttothisdeclarationshallbeinwritingandeffectiveimmediatelyuponpresentationtotheprimesupplier’sdesignatedcompanyrepresentative.

5. PrevailingPrice–Anyassignmentsmadefromtheset‐asideunderthisordershall

bemadeavailabletothewholesalepurchaser‐consumerorend‐useratpricesprevailingforthesameclassofpurchasersandproductsinthelocalityofthewholesalepurchaser‐consumers,end‐user,orwholesalepurchaser‐reselleratthetimeofthesale.

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ViolationofThisOrderAnypersonwhoknowinglyviolatesthisdirectiveisguiltyofamisdemeanorpunishablebyafineofnotmorethan$500.Eachdayaviolationcontinuesisaseparateoffense.TheAttorneyGeneral,oraProsecutingAttorneyofacounty,maybringanactioninacourtofcompetentjurisdictiontopreventaviolationofthisorderortocompelapersontoperformadutyimposedonthepersonunderthisExecutiveOrder.DurationofOrderThisordershallremainineffectfor_____daysfromitseffectivedateunlessamended,superseded,orrescindedbyfurtherExecutiveOrder.Itshallexpire90daysaftertheproclamationofastateofenergyemergencyunlessextendedbyconcurrentresolutionofthelegislatureasprovidedforinSection3(3,4),ActNo.191ofthePublicActsof1982,asamended.Dated:________________________Lansing,Michigan ______________________________ GovernorFiledwiththeSecretaryofStateandwiththeDepartmentofStatePoliceon________________________________.

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C.StateSet‐AsideEmergencyRulesforPetroleumProducts

DepartmentofLicensingandRegulatoryAffairs,

MichiganPublicServiceCommission TheserulestakeeffectuponfilingwiththeSecretaryofStateandtheDepartmentofStatePolice.(ByauthorityconferredonthechairmanofthePublicServiceCommission,DepartmentofLicensingandRegulatoryAffairs,bytheGovernorupontheproclamationofanenergyemergencyandbyExecutiveOrder<year>‐____on(month,day,year)underSections3and5ofActNo.191ofthePublicActsof1982,andSection48ofActNo.413ofthePublicActsof1982,asamended,‐‐beingSections10.81to10.89and24.248oftheMichiganCompiledLawsof1971.)

FINDINGOFEMERGENCY

ByexecutiveproclamationtheGovernorhasdeclaredthatastateofenergyemergencyexists.UnderpowersgrantedtotheGovernorduringadeclaredstateofenergyemergency,ExecutiveOrder<year>‐______wasissuedestablishingastateset‐asideforpetroleumproducts.Inthisorder,theGovernordesignatedthePublicServiceCommission,DepartmentofLicensingandRegulatoryAffairs,astheagencyresponsiblefortheadministrationofthisprogramandthepromulgationofemergencyruleswhichwillspecifytheproceduresandcriteriaforobtainingreliefunderthestateset‐asideprogram. DelayinestablishingrulesofproceduretoeffectivelycarryoutthedutiesdelegatedtothePublicServiceCommission,DepartmentofLicensingandRegulatoryAffairs,regardingtheadministrationofthestateset‐asidemightwellconstituteathreattothecitizensofthestateduetothelackofpetroleumproducts.Toavoidthisthreat,andtoassurethatessentialpublicneedsaremetinMichigan,theDepartmentofLicensingandRegulatoryAffairsfindsthefollowingrulesareneededforthepreservationofpublichealth,safety,andwelfare,andthatanemergencyexistswithinthemeaningofSection48ofActNo.413ofthePublicActsof1982,asamended,beingS24.248oftheMichiganCompiledLaws.Definitions Rule1. (1)Asusedintheserules:

(a) “Currentrequirements”meansthesupplyofanallocatedproductneededbyanend‐userorwholesalepurchasertomeetitspresentsupplyrequirementfor1month.

(b) “Department”meanstheDepartmentofLicensingandRegulatoryAffairs(c) “Director”meanstheDirectoroftheDepartmentofLicensingandRegulatory

Affairs,orthedesigneethereof,otherthantheDirectorasdefinedintheserules.(d) “Distillatefueloil”meansageneralclassificationofoneofthepetroleumfractions

producedinconventionaldistillationoperations.Itisusedprimarilyforspace

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heating,on–andoff‐highwaydieselenginefuel(includingrailroadenginefuelandfuelforagriculturalmachinery),andelectricpowergeneration.IncludedareproductsknownasNumber1,andNumber2fueloils;andNumber1,andNumber2,dieselfuelsascoveredbyASTMspecificationsD396andD975.Itdoesnotincludekerosenetypejetfuel.

(e) “End‐User”meansanypersonwhoisanultimateconsumerofapetroleumproductotherthanawholesalepurchaser‐consumer.

(f) “Motorgasoline”meansanyofthevariousgradesofmotorgasoline(premium,regular,orunleaded,includinggasoline/alcoholmixturessuchasgasohol),suitablefortheoperationofaninternalcombustionengineanddefinedunderASTMspecificationD439‐88.

(g) “Officer”meansthefuelallocationofficerauthorizedtosignordersandtoauthorizedocumentsfortheset‐asideassignments.

(h) “Order”meansawrittenororaldirectivefollowedbywrittenconfirmationissuedbytheofficerwithrespecttostateset‐asideassignments.Italsomeansawrittendeterminationbythedirectorrelativetoanappealfromanorderoftheofficer.

(i) “Person”meansanindividual,corporation,firm,governmentalunit,organization,oranyotherestablishmentwhatsoever.

(j) “PrimeSupplier”meansthesupplierorproducerwhomakesthefirstsaleofpetroleumproductsintothestatedistributionsystemforconsumptionwithinthestate.

(k) “Propane”meansanormallygaseousparaffiniccompound(C3H8),whichincludesallproductscoveredbynaturalgaspolicyactspecificationsforcommercialandHD‐5propaneandASTMspecificationD1835.EXCLUDES:feedstockpropanes,whicharepropanesnotclassifiedasconsumergradepropanes,includingthepropaneportionofanynaturalgasliquidmixes,thatisbutane‐propanemix.

(l) “Purchaser”meansawholesalepurchaseroranend‐user,orboth.(m) “Retail”meansanyretailgasolinestation,jobberordistributorwhichsells

motorgasoline,propaneand/ordistillatefueloildirectlytoanend‐user.(n) “Service”meanspersonalserviceorservicebyregisteredorcertifiedUnitedState

mail,postageprepaid.Serviceuponaperson’sdulyauthorizedrepresentativeshallconstituteserviceupontheperson.Servicebymailiscompleteuponmailing.

(o) “Set‐asideassignment”meansanorderdirectingaprimesuppliertomakeaproductfromitsstateset‐asideavailabletoadesignatedperson.

(p) “Stateset‐aside”means,withrespecttoaparticularprimesupplier,thatamountofmotorgasoline,propaneordistillatefueloilwhichismadeavailablefromthetotalsupplyofaprimesupplier,forutilizationbytheDepartmenttoresolveemergenciesandhardshipsduetofuelshortages.Thestateset‐asideamountforaparticularmonthiscalculatedbymultiplyingthestateset‐asidepercentagelevelbytheprimesupplier’sprojectedsales(PartII(b)13,14,15ofEIA‐782C)forthenextmonthwhichwillbesoldintoMichigan’sdistributionsystemforconsumptionwithinthestate.Thisestimatedportionshallbetakendirectlyfromthemonthlyreportofpetroleumproductssoldintostatesforconsumption,UnitedStatesDepartmentofEnergy,EnergyInformationAdministrationFormEA‐782C,filedbysaidsupplier.

(q) “Supplier”meansafirmorsubsidiaryofafirm,otherthantheUnitedStatesdepartmentofDefense,whichpresentlyorduringthelast12months,supplies,sells,

47

transfers,orotherwisefurnishes,suchasbyconsignment,motorgasoline,propaneanddistillatefueloiltowholesalepurchasersorend‐users,including,butnotlimitedto,arefiner,importer,reseller,jobber,orretailer.

(r) “Totalsupply”meansthesumofprojectedsalesofmotorgasolineaprimesupplieranticipatestomakeinthestateofMichigan,asreflectedbylines13,14,and15,partII(b)oftheEIA‐782Cformfiledforthatmonth,andforpropaneanddistillatefueloilincludingkeroseneforthevolumesindicatedasprojectedsalesforeachasshownonlines16,17,18,19and26.

(s) “Wholesalepurchaser”meansawholesalepurchaser‐resellerorawholesalepurchaser‐consumer.

(t) “Wholesalepurchaser‐consumer”meansanultimateconsumerwhich,aspartofitsnormaloperation,purchasesorobtainspetroleumproductsfromasupplierandreceivesdeliveryofthatproductintoastoragetanksubstantiallyunderthecontrolofthatfirmatafixedlocation.

(u) “Wholesalepurchaser‐reseller”meansapersonwhopurchases,receivesthroughtransfer,orotherwiseobtains,suchasbyconsignment,motorgasoline,propaneanddistillatefueloilandwhoresellsorotherwisetransfersittootherpurchaserswithoutsubstantiallychangingitsform;excludingretailers.

StateSet‐Aside:Assignments;Eligibility;Criteria;Amounts;Application;Decision;

Issuance;Order.Rule2.(1)Thefollowingpersonsmayapplyforanassignmentunderthestateset‐asideprogram:

(a) Awholesalepurchaser‐consumer,oranend‐userwhoseeksanassignmenttomeettheneedsforanyofthefollowingusesduetoahardshiporemergency,orotherusersinextenuatingcircumstanceswhereadirectthreattothepublic’shealth,safety,orwelfaremayexist.Examplesare:(i) Residential,institutional,andcommercialspaceheating.(ii) Agriculturalproducersanddistributorsofperishablefoods.(iii) Emergencymedicalservices.(iv) Energysuppliers.(v) Firefightingunits.(vi) Police.(vii) Publicmasstransportation.(viii) Sanitationservices.(ix) Snowremoval.(x) Telephonecompanies.

(b) Awholesalepurchaser‐resellerwhoseeksanassignmenttoenablethataretailer,uponestablishmentofatouristgasolineavailabilityplanbytheDirectorundersubrule(6)(a),maybeeligibleforanassignment.Thiswillnotexceed20‐percentofthemonthlyvolumeofthelocationforwhichapplicationismade,aslongastheretailerisoperatingwithin½mileofamajortouristroutespecifiedbytheDirectorundersubrule(6)(b).

(2) Anofficermayorderanassignmentofanallocatedproductfromthestateset‐asideincircumstancesinvolvinghardshiporemergencytothosepersonsspecifiedinsubrule(1)(a).Suchcircumstancesincludeeitherofthefollowing:

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(a) Thepersonspecifiedinsubrule(1)(a)isundergoingcurtailmentofmotorgasoline,propaneanddistillatefueloilforreasonsbeyondhisorhercontrolwhicharenotaresultoftheinabilitytopay.

(b) Theissuanceofanassignmentorderisnecessarytoavoid,alleviate,orminimizeasituationaffectingthehealth,safety,orwelfareofapersonspecifiedinsubrule(1)(a).

(3) Anapplicationforassignmentunderthestateset‐asideshallbemadebycompletingtheappropriateformandfilingitwiththeofficer.TheappropriateformwillbemadeavailablebythePublicServiceCommission.Eachapplicantshallcertifybywayofaswornstatementtestifyingtothetruthanaccuracyoftheinformationcontainedintheapplication.Theofficermayacceptanoralapplicationunderconditionswhichmakeitextremelyimpracticaltorequirewrittenapplicationinordertoavoidanemergencysituation.Personsallowedtomakeanoralrequestforstateset‐asideshallneverthelessfileacompletedformwiththeofficerwithin5workdaysfollowingacceptanceoftheoralrequest.Awholesalepurchaser‐resellerwhosuppliespetroleumproductstoawholesaleconsumer,orpurchaser‐resellerwhosuppliespetroleumproductstoawholesaleconsumer,orend‐useroutlet,shallattachanaddendumtotheirapplicationidentifyingeachpersononwhosebehalfthewholesalepurchaser‐resellerisrequestingaset‐asideassignment,thelocationofeachwholesaleconsumerandend‐user,thenumberofgallonsrequestedforeach,andprovideverifyingsignatures.

(4) Withinfifteen(15)workdaysafterreceivingtheapplicationforstateset‐aside,theofficershallissueanassignmentorder,orshalldenytherequest;inthecaseofadenial,theofficershallservetheapplicantwithacopyofthedenial.Theofficermayconsideranyinformationdeemedrelevantinmakingthedetermination;theofficemaypostponeadecisionandconveneaconference.Shouldanyapplicantrefusetocooperateduringaninvestigation,theofficermaydismisstheapplicationonthosegroundsalone.

(5) Excludingexceptionalcases,stateset‐asideassignmentsshallbeissuedtotheprimesupplierfromwhomtheapplicantisnormallysupplied.Iftheset‐asideofaprimesupplierisexhausted,theofficermayissueassignmentstoalternateprimersuppliers,ormaysplitassignmentsbetweenprimesuppliers.Inthecaseofaretailgasolinestationdoingbusinessunderabrandnameassociatedwithaprimesupplier,assignmentswillbemadetotheoutletonlyfromtheset‐asideofthatprimesupplier.

(6) Uponapprovalofastateset‐asideassignment,theofficershallissueawrittenorderauthorizingtheassignmentandserveitontheprimesupplier,oradesignatedlocaldistributoroftheprimesupplier,fromwhoseset‐asidetheassignedproductistobedrawn.Serviceofanorderuponaprimesupplier,oritslocaldistributor,bytheofficerisdeemedtobeasubmissiononbehalfoftheapplicant.Anorderissuedbytheofficerunderthissectioniseffectiveuponissuance,unlessstayed,modified,suspended,orrescinded,andrepresentsacallontheprimesupplier’sset‐asidevolumeforthemonthofissuance,evenifdeliveryoftheproductcannotbemadeuntilthefollowingmonth.

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StateSet‐Aside:Appeals;Petition;StayOrder;Response;DecisionRule3.(1)Apersonaggrievedbyanorderoftheofficerpertainingtostateset‐asidemayfileawrittenpetitionofappealtotheDirectornotlaterthanten(10)workdaysafterbeingservedwithanorderofassignmentordenialorder.Thepetitionshallinclude:

(a) Thenameandaddressofthepetitioner.(b) Aconcisestatementoffactssurroundingthecase,includingthereasonforthe

appealandreliefsought.(c) Thenamesandaddressesofpersonsknowntopetitionerwhomaybeaffected

adverselybytheoutcomeoftheappeal.Thepetitionershallattachaswornstatementtothepetitionwhichstatesthattheinformationprovidedinthepetitionistruetothebestofthepetitioner’sknowledge.

(2) Awrittenrequestforastayoftheassignmentorderpendingoutcomeofappealmaybepresentedalongwiththepetition.Thestayordershallbegrantedonlyuponafindingthatthereisjustcausetobelieveoneofthefollowing:

(a) Intheabsenceofastayorder,petitionerwillsufferirreparableharm.(b) Theobjectivesofthestateset‐asideprogramwillbefrustrated,andtheorderofthe

officershouldbereversed.(3) TheDirectorshall,within3workdaysafterthefilingofapetition,serveacopyofthepetitiononknownpersonswhomightbeaffectedadverselybytheoutcomeoftheappeal.Personsservedwithapetitionmay,notlaterthan5workdaysfromserviceofthepetition,fileawrittenreply,supportedbyaswornstatementtotheeffectthattheinformationinthereplyistruetothebestoftherespondent’sknowledge.Acopyoftheresponseshallbemadeavailabletothepetitioner.(4) Within20workdaysafterthepetitionofappealisfiled,thedirectorshallrenderadecisioninthecaseandserveituponallpersonswhoparticipatedintheappellateproceeding,andanyotherpersonwhoisaggrievedbythedecisionandorder.Apersonisnotdeemedtohaveexhaustedhisorheradministrativeremediesunlessthatpersonhasappealedunderthisruleandadecisionhasbeenrendered.

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D.ApplicationforStateSet‐Aside

1.ApplicantIdentificationInformation:

()Name BusinessPhone(IncludeAreaCode)

()Street/Box/RFD HomePhone(Optional)

CityandZipCode IndividualtoContact

County Forwhichmonthareyouseekingassistance?

2.LocationforDeliveryofProductifDifferentFromAbove:

Street/Box/RFD,City,StateandZipCode

3.Applicant’sClassification: 4.ProductRequested:

□WholesalePurchaser‐Distributor(Jobber)

□WholesalePurchaser‐Retailer(GasStation)□End‐User

(Submitone applicationforeachproductrequested)

□ Gasoline

□#1FuelOil□#2FuelOil□Diesel□Propane

10.Supplier(s).Nametheprimesupplier(majoroilcompany)whichisyourultimatesupplier:(Ifsuppliedbyajobberordistributor,indicatetheirnameandthenameoftheirsupplier.)

□Myexistingsupplier(s),namedbelow,isunabletosupplythequantityrequested.□Idonothaveasupplier.Thetwosuppliers,namedbelow,havebeencontactedandcouldnotsupplytheproductrequested.

Name Name

Street/Box/RFD Street/Box/RFD

FOR STATE USE ONLY: Received:

Code____________________________ Reviewed By_____________________ Approval Date____________________

Notify: App. □ Supplier □ Denial Date__________ Notify □

Michigan Public Service Commission P.O. Box 30221, Lansing, MI 48909

(517) 241-6180

STATE SET-ASIDE APPLICATION CERTIFICATION OF PETROLEUM PRODUCT HARDSHIP

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CityandZipCode CityandZipCode

ContactOfficial()

ContactOfficial()

Phone(includingareacode)

CheckOne□ExistingSupplier□PotentialSupplier

Phone(includingareacode)

CheckOne□ExistingSupplier□PotentialSupplier

11.Indicatetotalamountofproductreceivedeachmonthfromyoursupplier(s)forthebaseyear(month,year)through(month,year).

BasePeriodSupplyVolumebyMonth(Gallons)(Indicatetheyearnexttothemonth)January May SeptemberFebruary June OctoberMarch July NovemberApril August DecemberBasePeriodSupplyVolumeTotal

Doesthisbaseperiodsupplyvolumeagreewithyoursupplier?Check□ Yes □ No

12.Thefollowingquestionisformotorfuelrequestsonly:(a)Indicateyourpurchases(gallons)inOctober(year)__________,November(year)________,December(year)_________

January(year)________andFebruary(year)________________FiveMonthAverage________________________

(b)Didyouoverdrawonyourallocationlastmonth?□Yes□NoByhowmuch?________________GallonsExplainreasonwhyyouwereoverdrawn._______________________________________________________________________________________________________________________________________________________________________(c)HaveyousoughtassistancefromtheU.S.DepartmentofEnergy(DOE)forresolutionofyourallocationproblems?

□Yes□NoDateofApplication_______________DOECaseNumber______________________ApprovedPendingDenied

BasePeriod/Assignment□□□Exception/Appeal□□□13.Describethetypeofcustomersyouarerequestingproductfor,thenatureoftheirbusinessandamountofproductrequestedforeach.Attachmentadditionalsheetsasnecessary.BusinessName&PhoneNumberTypeofBusiness&AmountRequestedBasePeriodObligation(gallons)______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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14.Describeincompletedetailthereasonsforyourhardship.Bespecific.Explainallcircumstancesandsituationsrelatedtohardshiprequest‐‐thisinformationwillbeinvestigatedandwillactastheprincipalbasisforevaluationoftherequest.Indicateforeachofthecustomersasdescribedabovethenatureofthesupplyproblems.Attachadditionalsheetsasnecessary.15.Certification(Pleaseremembertosign)Icertifythatalloftheaboveinformationistrueandaccurateandthatanyquantitygrantedwillbeusedforpurposedhereindescribedandwillnotbedivertedtootheruses.IfurthercertifythatIhaveanenergyconservationprogramineffect._____________________________________________________________________________________________Name(andTitle)SignatureDateTitle18U.S.C.Section1001makesitacrimeforanypersonknowinglyandwillinglytomaketoanyDepartmentorAgencyoftheUnitedStatesanyfalse,fictitious,orfraudulentstatementsorrepresentationsastoanymatterwithinthejurisdiction.IfdifferentthanabovePreparedby:_________________________________________________________________________________________NameandTitleDate

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E.AuthorizationforReleaseofStateSet‐Aside

DepartmentofLicensingandRegulatoryAffairs,MichiganPublicServiceCommission

To:_________________________

_________________________

_________________________

_________________________

InaccordancewiththeprovisionscontainedintheGovernor’sExecutiveOrder_____of20__,as provided for under Public Act 191 of 1982, as amended, you are directed to release___________ gallons of ________(insert fuel) to the counties of (specify counties)_____________________________________________________________________________. This product is to bedrawn from the “State Set‐Aside” as provided by Executive Order and should be madeavailabletothoseretailservicestationswhichyousupplyinthedesignatedarea(s) inanequitable manner through your normal distribution system. This order is effectiveimmediately. Any person aggrieved by this ordermay file an appealwith theMichiganPublicServiceCommission. Chairman MichiganPublicServiceCommission MichiganDepartmentofLicensingandRegulatoryAffairs P.O.Box30221 Lansing,MI48909

(517)241‐6180________________________________ ____________________________________Date PetroleumAllocationOfficer

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F.EO–ImplementationofPriorityEnd‐UserPlan

ExecutiveOrderNo.____of20__

AuthorityandScopeBasedontheauthorityvestedinmebySection4ofActNo.191ofthePublicActsof1982,as amended, and upon declaration of a state of energy emergency in the ExecutiveProclamation 20__‐ _____ of ________ under this act, I,________________ , Governor, herebyimplementaPriorityEnd‐UserPlan,assetforthbelow,tobecomeeffectiveinthecountiesof_________(listspecificcountiesorindicate“StateofMichigan”)on12:01a.m.,(month,day,year).PriorityEnd‐UsersPetroleum suppliers shall supply 100 percent of the current requirements of fuelrequirements to police agencies, firefighting units, and emergency medical series uponcertification.Thiscertification,tobesubmittedfromapriorityend‐usertotheirsupplier,shallcontain:

1. Themostrecent12months’purchasesingallons.2. Anticipatedrequirementsforeachofthenext12months.3. Written justificationexplainingtheneedforanyvolumes inexcessofhistoricalor

contractualpurchases.4. A sworn statement that the information contained in the certification is true and

accurate and that the petroleum product to be provided will only be used forpriority use as indicated (police agencies, firefighting, and/or emergencymedicalservices).

Supplierswill have thirty (30)workdays tobegin supplying a priority accountwith thecurrentrequirementsuponsubmissionofthecertificateofneed.I hereby designate the Michigan Public Service Commission Michigan, Department ofLicensingandRegulatoryAffairs, as the stateoffice responsible for theadministrationofthisprogram.Assuch,theCommissionshallprovideforamechanismwhichwillallowfortheresolutionofanydisputearisingoutoftheimpositionofthePriorityEnd‐UserPlan.ViolationofthisOrderAnypersonwhoknowinglyviolatesthisdirectiveisguiltyofamisdemeanorpunishablebya fineofnotmore than$500. Eachdaya violation continues is a separateoffense. The

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AttorneyGeneraloraProsecutingAttorneyofacountymaybringanaction inacourtofcompetentjurisdictiontopreventaviolationofthisorderortocompelapersontoperformadutyimposedonthepersonunderthisExecutiveOrder.DurationofOrderThis order shall remain in effect for _____ days from its effective date unless amended,superseded, or rescinded by further Executive Order. It shall expire 90 days after theproclamationofastateofenergyemergencyunlessextendedbyconcurrentresolutionofthelegislatureasprovidedforinActNo.191ofthePublicActsof1982.Dated:_______________________Lansing,Michigan ______________________________ GovernorFilewiththeSecretaryofStateandwiththeDepartmentofStatePoliceon____________________________.

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G.PriorityEnd‐UserAppealsProcedure

DepartmentofLicensingandRegulatoryAffairs,MichiganPublicServiceCommission

TheserulestakeeffectuponfilingwiththeSecretaryofStateandtheDepartmentofStatePolice.(By authority conferred on the chairman of the Michigan Public Service Commission,DepartmentofLicensingandRegulatoryAffairs,bytheGovernorupontheproclamationofan energy emergency and by Executive Order 20__ ‐ ___ on (month, day, year) underSections3and5ofActNo.38ofthePublicActsof1982,asamended,andSection48ofActNo. 306 of the Public Acts of 1969, as amended, being S10.43, 10.45, and 24.248 of theMichiganCompliedLaws.)

FINDINGOFEMERGENCY ByexecutiveproclamationtheGovernorhasdeclaredthatastateofenergyemergencyexists. Under powers granted to the Governor during a declared state of energyemergency,ExecutiveOrder20__‐______wasissuedestablishingapriorityend‐userplan.In this order, the Governor designated the Michigan Public Service Commission,Department of Licensing and Regulatory Affairs, as the agency responsible for theadministrationofthisprogram.Further,itrequiredamechanismtoresolveanydisputesarisingoutoftheuseofthisplan. Thefollowingrulesareintendedtooutlineanappealsprocedurewhichwillprovidethismechanism. DelayinestablishingrulesofproceduretoeffectivelycarryoutthedutiesdelegatedtotheMichiganPublicServiceCommission,DepartmentofLicensingandRegulatoryAffairs,regardingtheadministrationofthepriorityend‐userplanmightwellconstituteathreattothecitizensofthestateduetothelackofpetroleumproducts.Toavoidthisthreatandtoassure that essential public needs aremet inMichigan, the department of Licensing andRegulatory Affairs finds the following rules are needed for the preservation of publichealth,safety,andwelfareandthatanemergencyexistswithinthemeaningofSection48of Act No. 306 of the Public Acts of 1969, as amended, being S24.248 of the MichiganCompiledLaws.Definitions Rule1.Asusedintheserules:

A. “Current requirements” means the supply of fuel needed by an end‐user orwholesalepurchasertomeetitspresentpriorityend‐useneeds.

B. “Department”meansthedepartmentofLicensingandRegulatoryAffairs.

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C. “Chairman” means the chairman of the Michigan Public Service Commission,DepartmentofLicensingandRegulatoryAffairs,orthedesigneethereof.

D. “Motorfuel”meansanyofthevariousgradesofmotorgasoline(premium,regular,or unleaded, including gasoline/alcoholmixtures such as ethanol), anddiesel fuelsuitablefortheoperationofaninternalcombustionengine.

E. “Person”meansanindividual,corporation,firm,governmentalunit,organization,oranyotherestablishmentwhatsoever.

F. “Supplier”meansafirmorapartofsubsidiaryofafirm,otherthanthedepartmentofdefense,whichispresentlyorduringthelast12months,supplies,sells,transfers,orotherwisefurnishes,suchasbyconsignment,motorfueltowholesalepurchasersor end‐users, including, but not limited to, a refiner, importer, reseller, jobber, orretailer.

Appeals;petition;stayorder;response;decision. Rule2.(1)Apersonaggrievedbyacertificationofpriorityend‐usemayfileawrittenpetitionofappealtothechairman.Thepetitionshallinclude:

A. Nameandaddressofthepetitioner.

B. A concise statement of facts surrounding the case, including the reason for theappealandreliefsought.

C. Names and addresses of persons known to petitioner who may be affectedadversely by the outcome of the appeal. The petitioner shall attach a swornstatementtothepetitionwhichstatesthattheinformationprovidedinthepetitionistruetothebestofthepetitioner’sknowledge.

(2) Thechairmanshall,within3workdaysafterthefilingofapetition,serveacopyofthepetitiontoknownpersonswhomightbeadverselyaffectedby theoutcomeof the appeal. Persons servedwith apetitionmay,notlater than5workdays fromserviceof thepetition, fileawrittenreply,supportedbyaswornstatementtotheeffectthattheinformationinthereply is true to the best of the respondent’s knowledge. A copy of theresponseshallbemadeavailabletothepetitioner.

(3) Within 20work days after the petition of appeal is filed, the chairmanshallrenderadecisionontheappealandserve ituponallpersonswhoparticipated in the appellate proceeding and any other person who isaggrieved by the decision and order. A person is deemed to haveexhausted is or her administrative remedies once a decision has beenrenderedontheappeal.

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H.CertificateofPriorityEnd‐Use

DEPARTMENTOFLICENSINGANDREGULATORYAFFAIRSMICHIGANPUBLICSERVICECOMMISSION

P.O.Box_____,City,State_____

CERTIFICATEOFPRIORITYEND‐USEPleasePrintorType–ApplicationMustBeLegibleandSigned.ReturnToTheAboveAddress.

PARTI:IDENTIFICATION1. DateofRequestMo Da Yr

1. EINNumber

PARTII:SUPPLIER/SUPPLYDATA8.SupplyVolumesforRequestedProduct(InGallons)

2. NameofCompany/ApplicantSubmittingThisRequest(Lastnamefirstifindividual)

MonthCurrent

Requirements

ActualPurchasesfortheLast

TwelveMonths

Year Purchases Year Volume

3. MailingAddressofCompany/Applicant(Street,City,State,ZipCode,County)

(1)Jan (2)Feb (3)Mar

4. NameandPhone(Includingareacode)ofContactPerson (4)Apr (5)May

5. NameofDeliveryLocation(Ifdifferentfrom3) (6)Jun (7)Jul (8)Aug

6. AddressofDeliveryLocation(Ifdifferentfrom4)(Street,City,State,ZipCode,County)

(9) Sep (10)Oct (11)Nov (12)Dec (13)Total

9. Applicant’sClassification(a)PoliceAgency(b)FireFightingUnits(c)EmergencyMedicalServices(d)Other:Explain______________________________________________________

PARTIII:SUPPLIER/SUPPLYDATAStorageCapacity:

10. SupplierInformation(Entertheinformationrequestedbelowforeachcurrentsupplierformotorgasoline.Listonthefirstlinetheprincipalimmediatesupplier.Ifmorethanthree,useanadditionalsheet.)

NameandMailing(Street)Address(a)

City,State andZipCode

(b)BrandName

(c)

%ofVolume(d)

NameandPhoneNumber(Includingareacode)ofContactPerson

(e)

11. JustificationofVolumesRequested(Describeindetailthereasonsjustifyingtherequestedvolumesasnormalandreasonableforintendeduse,andprovidereasonswhytheproductisneeded.Useadditionalsheetsasneeded.)

PARTIV.CERTIFICATION(ToBeCompletedByAllApplicants)

Iherebycertifythatallinformationsubmittedaspartofthisapplicationistrue,accurateandcompletetothebestofmyknowledge,thatanyquantityrequestedforpriorityusewillbeusedonlyforthatrequesteduse,andthatanamendedapplicationforadownwardbaseperiodadjustmentwillbefilediftheneedforthevolumeassignedpursuanttothisapplicationdeclines.NameofApplicantorCompany

OfficialTitleofApplicantorCompany

OfficialSignature DateSigned(monthDayyear])

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I.EO–ImplementationofMinimumPurchasePlan

ExecutiveOrderNo.__of20____

AuthorityandScopeBasedontheauthorityvestedinmebyActNo.191ofthePublicActsof1982,asamended,andupondeclarationofastateofenergyemergencyintheExecutiveProclamation__‐___of____underthisact,I,__________,Governor,herebyimplementaMinimumMotorFuelPurchasePlanassetforthbelowtobecomeeffectiveinthe(countiesof____,listspecificcountiesorindicate“StateofMichigan”),on12:01a.m.,(month,day,year).MinimumPurchaseRequirements1. Nopersonshallpurchase________(inserttypeoffuel)fromaretailerinany

transactionforuseinanautomobileorothermotorvehicleunless:6 A. Thepriceforthequantitypurchasedandplacedintothefueltankofthat

vehicleequalsorexceeds$__(awholedollaramounttobedeterminedatthetimeofimplementation;alternatively,ifthepriceisincreasingrapidlyagallonamountcouldbespecified).

B. Inthecaseofanyvehiclewithanenginehavinglessthansixcylinders,orarotaryengine,theminimumpurchaserequiredshallbe$__(awholedollaramounttobedeterminedatthetimeofimplementation).

2. Intheeventthatapurchaseof_______(inserttypeoffuel)requireslessfuelthanthe

minimumpurchasepriceamount,theminimumpurchasepricemustbepaidandtheexcessmoneyforfeitedtotheretailer.Retailersmay,attheirdiscretion,allowpurchaserswhowouldotherwiseforfeit______(inserttypeoffuel)purchasefundstosubstituteotheritemsforsaleattheretailestablishment,tomakeupthedifferencebetweentheminimumfuelpurchaseamountandtheamountoffuelactuallypurchased.

3. Retailersmayexercisetheoptiontocollecttheminimumpurchaseamountpriorto

dispensingof_______(inserttypeoffuel)intoamotorvehicleorcontainer.Thismaybefacilitatedwithpre‐payandpay‐at‐pumpoptionsavailableonmanyfuelpumps.

4. Eachretailer,within14daysafterthedateofissuanceofthisOrder,shall:

6Gasolineisdefinedforthepurposeofthisorderasanyofthevariousgradesofmotorgasoline(premium,regular,orunleadedincludinggasoline/alcoholmixtures‐gasohol),suitablefortheoperationofaninternalcombustionengine.DefinedunderASTMSpecificationD4814.Dieselisdefinedasthevariousformsofdieselfuel(no.1and2)usedinhigh‐speeddieselenginesthataregenerallyoperatedunderuniformspeedandloadconditions,suchasthoseinrailroadlocomotives,trucks,andautomobilesasdefinedinASTMSpecificationD975.

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A. Prominentlydisplayafullandcompletecopyoftheseregulationsinanaccessiblelocation,alongwiththeirdaysandhoursofoperation.B. Postconspicuouslythefollowingmessageoneachgasolinefuelpump:“Legal

MinimumPurchaseRequirementof$__isinEffect.”

5. Thisorderdoesnotmodify,alter,oramendexistingrulesconcerningtransportation,storing,andfillingofgasolinecontainersineffect,includingtheMichiganFlammableLiquidRegulationasfollows:

Rule105FillingContainers

a) NoportablecontainerorcontainersholdinginexcessofatotalofsixgallonsofClassIorIIflammableliquidsshallbefilledfortransportationfromaservicestationinapassengervehicle.

6. NoretailershallengageinanyformofdiscriminationamongpurchasersexceptasprovidedforinthisplanorbyExecutiveOrderoftheGovernor.Forthepurposeofthisorder“discrimination”meansextendingsalesorpreferentialtreatmentwhichhastheeffectsoffrustratingtheobjectionofthisplan.Further,anypracticewhichconstitutesameanstoobtainapricehigherthanthepriceatwhichtheproductissoldtothegeneralpublicinordertoprovidepreferentialtreatmentisprohibited.7. Thisordershallpre‐emptanyprogramforminimumpurchaseofsalebyanylocalgovernment.8. MoneycollectedexceedingthecostofactualfueldispensedshallbedepositedtotheState’sEmergencyFuelFund.Exemption1. Thisminimumpurchaserequirementappliesonlytoautomobileormotorvehicleswithatwelvegalloncapacityfueltankorgreater.ThisminimumpurchasepriceissubjecttochangeasrequiredwhilethisruleisineffectduetoincreasedgasolineamountsbytheGovernor.2. Theminimumpurchaserequirementsapplybetweenthehoursof6:00a.m.and10:00p.m.,daily.3. Retailersmustexemptthefollowingtypesofmotorvehiclesfromtheseregulations:

A. Police,fire,ambulance,orotheremergencyvehicles.B. Buses,taxis,vanpools,orothercommercialpassengercarriers.C. U.S.PostalServicevehicles.D. Motorcyclesormopeds,andsimilartwowheelvehicles.E. Local,county,andstategovernmentvehicleswhichprovideessentialservicesforthehealth,safety,andwell‐beingofcitizens.F. Vehiclesoperatinginanunusualemergencysituationinthejudgmentoftheretailers.

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ViolationofThisOrderAretailerorconsumerwhoknowinglyviolatesthisdirectiveisguiltyofamisdemeanorandpunishablebyafineofnotmorethan$500.Eachoccurrenceofaviolationisaseparateoffense.TheAttorneyGeneraloraProsecutingAttorneyofacountymaybringanactioninacourtofcompetentjurisdictiontopreventaviolationofthisorderortocompelapersontoperformadutyimposedonthepersonunderthisExecutiveOrder.DurationofOrderThisordershallremainineffectfor___day(s)fromitseffectivedateunlessamended,superseded,orrescindedbyfurtherExecutiveOrder.Itshallexpire90daysaftertheproclamationofastateofenergyemergencyunlessextendedbyconcurrentresolutionofthelegislatureasprovidedforinActNo.191ofthePublicActsof1982.Dated:_____________________

Lansing,Michigan

__________________________________

Governor

FiledwiththeSecretaryofStateandwiththeDepartmentofStatePoliceon

__________________________.

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J.EO–ImplementationofOdd/EvenPurchasePlan

ExecutiveOrderNo.____of20__

AuthorityandScope

BasedontheauthorityvestedinmebyActNo.191ofthePublicActsof1982,asamended,andupondeclarationofastateofenergyemergencyintheExecutiveProclamation__of____underthisact,I,__________,Governor,herebyimplementanOdd/EvenGasolinePurchasePlanassetforthbelowtobeeffectiveinthe(countiesof______,listspecificcountiesorindicated“StateOfMichigan”),on12:01a.m.,(Month,Day,Year).

Odd/EvenGasolinePurchaseRequirements

Attheretaillevel,gasoline(and/or)dieselfuel1shallbedispensedintovehicleswithalicenseplateendinginanoddnumber(1,3,5,7and9)onlyonoddnumberdaysofthemonth(first,third,fifth,seventh,andninth).Personalizedlicenseplatesandanyotherlicenseplateswithoutnumbersshallbedefinedasodd.Examplesofodddaylicenseplatesare:BBB1333,KBC475,and“BERTHA”.

1. Attheretaillevel,gasoline(and/or)dieselfuelshallbedispensedintovehicleswithalicenseplateendinginzerooranevennumber(0,2,4,6and8)onlyonevennumberdaysofthemonth(second,fourth,sixth,eighth,andtenth(zero)).Examplesofevendaylicenseplatesare:BBB020,RMP768,andKBC776.

2. Ifavehiclelicenseplatecontainsbothlettersandnumbersandthelastdigitisaletter,thelastoronlynumberdigitwilldeterminewhethersaleofgasolineiseligibleonanoddorevenday.Examplesoflicenseplatescontaininglettersaslastdigitsare:123FT(Oddday),764NT(EvenDay),and468GN(EvenDay).

3. Foranycalendarmonthinwhichthereare31days,andinFebruaryofaleapyear,salesshallbemadeonthelastdayofthemonthwithoutregardtothedigitsofthelicenseplates.

Exemptions

Retailersmustexemptthefollowingtypesofmotorvehiclesfromtheseregulations:

1. Police,fire,ambulance,orotheremergencyvehicles.2. Buses,taxis,vanpools,orothercommercialpassengercarriers.3. U.S.PostalServicevehicles.4. Motorcyclesormopeds,andsimilartwowheelvehicles.

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5. Vehiclesbearingout‐of‐statelicenseplatesregistered.6. Vehiclesregisteredoroperatedbyapersonwithacurrentvaliddriver’slicense

fromoutsidetheareaundertheminimumpurchaseorder.7. Local,county,stateandfederalgovernmentvehicleswhichprovideessential

servicesforthehealth,safety,andwellbeingofcitizens.8. Vehiclesoperatinginanunusualemergencysituationinthejudgmentofthe

retailers.9. Vehicleswithlicenseplateswithhandicapdesignation.

ViolationofThisOrder

Aretailerorconsumerwhoknowinglyviolatesthisdirectiveisguiltyofamisdemeanorandpunishablebyafineofnotmorethan$500.Eachoccurrenceofaviolationisaseparateoffense.TheAttorneyGeneraloraProsecutingAttorneyofacountymaybringanactioninacourtofcompetentjurisdictiontopreventaviolationofthisorderortocompelapersontoperformadutyimposedonthepersonunderthisExecutiveOrder.

DurationofOrder

Thisordershallremainineffectfor___daysfromitseffectivedateunlessamended,superseded,orrescindedbyfurtherExecutiveOrder.Itshallexpire90daysaftertheproclamationofstateofenergyemergencyunlessextendedbyconcurrentresolutionofthelegislatureasprovidedforinActNo.191ofthePublicActsof1982,asamended.

Dated:_____________________

Lansing,Michigan

__________________________________

Governor

FiledwiththeSecretaryofStateandwiththeDepartmentofStatePoliceon

__________________________.

1 Gasoline is defined for the purpose of this order as any of the various grades of motor gasoline (premium, regular, or unleaded including gasoline/alcohol mixtures –gasohol), suitable for the operation of an internal combustion engine (defined under ASTM Standard D 439-70). Diesel is defined as the various forms of diesel fuel (no. 1 and 2) used in high-speed diesel engines that are generally operated under uniform speed and load conditions, such as those in railroad locomotives, trucks, and automobiles as defined in ASTM Specification D 975

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K.CleanAirActSection211(c)(4)(C)

Source:http://www.law.cornell.edu/uscode/text/42/7545

(C) (i) A State may prescribe and enforce, for purposes of motor vehicle emission control, a control or prohibition respecting the use of a fuel or fuel additive in a motor vehicle or motor vehicle engine if an applicable implementation plan for such State under section 7410 of this title so provides. The Administrator may approve such provision in an implementation plan, or promulgate an implementation plan containing such a provision, only if he finds that the State control or prohibition is necessary to achieve the national primary or secondary ambient air quality standard which the plan implements. The Administrator may find that a State control or prohibition is necessary to achieve that standard if no other measures that would bring about timely attainment exist, or if other measures exist and are technically possible to implement, but are unreasonable or impracticable. The Administrator may make a finding of necessity under this subparagraph even if the plan for the area does not contain an approved demonstration of timely attainment. (ii) The Administrator may temporarily waive a control or prohibition respecting the use of a fuel or fuel additive required or regulated by the Administrator pursuant to subsection (c), (h), (i), (k), or (m) of this section or prescribed in an applicable implementation plan under section 7410 of this title approved by the Administrator under clause (i) of this subparagraph if, after consultation with, and concurrence by, the Secretary of Energy, the Administrator determines that—

(I) extreme and unusual fuel or fuel additive supply circumstances exist in a State or region of the Nation which prevent the distribution of an adequate supply of the fuel or fuel additive to consumers; (II) such extreme and unusual fuel and fuel additive supply circumstances are the result of a natural disaster, an Act of God, a pipeline or refinery equipment failure, or another event that could not reasonably have been foreseen or prevented and not the lack of prudent planning on the part of the suppliers of the fuel or fuel additive to such State or region; and (III) it is in the public interest to grant the waiver (for example, when a waiver is necessary to meet projected temporary shortfalls in the supply of the fuel or fuel additive in a State or region of the Nation which cannot otherwise be compensated for).

(iii) If the Administrator makes the determinations required under clause (ii), such a temporary extreme and unusual fuel and fuel additive supply circumstances waiver shall be permitted only if—

(I) the waiver applies to the smallest geographic area necessary to address the extreme and unusual fuel and fuel additive supply circumstances;

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(II) the waiver is effective for a period of 20 calendar days or, if the Administrator determines that a shorter waiver period is adequate, for the shortest practicable time period necessary to permit the correction of the extreme and unusual fuel and fuel additive supply circumstances and to mitigate impact on air quality; (III) the waiver permits a transitional period, the exact duration of which shall be determined by the Administrator (but which shall be for the shortest practicable period), after the termination of the temporary waiver to permit wholesalers and retailers to blend down their wholesale and retail inventory; (IV) the waiver applies to all persons in the motor fuel distribution system; and (V) the Administrator has given public notice to all parties in the motor fuel distribution system, and local and State regulators, in the State or region to be covered by the waiver.

The term “motor fuel distribution system” as used in this clause shall be defined by the Administrator through rulemaking.

(iv) Within 180 days of August 8, 2005, the Administrator shall promulgate regulations to implement clauses (ii) and (iii). (v) [3] Nothing in this subparagraph shall—

(I) limit or otherwise affect the application of any other waiver authority of the Administrator pursuant to this section or pursuant to a regulation promulgated pursuant to this section; and (II) subject any State or person to an enforcement action, penalties, or liability solely arising from actions taken pursuant to the issuance of a waiver under this subparagraph.

(v) (I) [3] The Administrator shall have no authority, when considering a State implementation plan or a State implementation plan revision, to approve under this paragraph any fuel included in such plan or revision if the effect of such approval increases the total number of fuels approved under this paragraph as of September 1, 2004, in all State implementation plans. (II) The Administrator, in consultation with the Secretary of Energy, shall determine the total number of fuels approved under this paragraph as of September 1, 2004, in all State implementation plans and shall publish a list of such fuels, including the States and Petroleum Administration for Defense District in which they are used, in the Federal Register for public review and comment no later than 90 days after August 8, 2005. (III) The Administrator shall remove a fuel from the list published under subclause (II) if a fuel ceases to be included in a State implementation plan or if a fuel in a State implementation plan is identical to a Federal fuel formulation implemented by the Administrator, but the Administrator shall not reduce the total number of fuels authorized under the list published under subclause (II).

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(IV) Subclause (I) shall not limit the Administrator’s authority to approve a control or prohibition respecting any new fuel under this paragraph in a State implementation plan or revision to a State implementation plan if such new fuel—

(aa) completely replaces a fuel on the list published under subclause (II); or (bb) does not increase the total number of fuels on the list published under subclause (II) as of September 1, 2004.

In the event that the total number of fuels on the list published under subclause (II) at the time of the Administrator’s consideration of a control or prohibition respecting a new fuel is lower than the total number of fuels on such list as of September 1, 2004, the Administrator may approve a control or prohibition respecting a new fuel under this subclause if the Administrator, after consultation with the Secretary of Energy, publishes in the Federal Register after notice and comment a finding that, in the Administrator’s judgment, such control or prohibition respecting a new fuel will not cause fuel supply or distribution interruptions or have a significant adverse impact on fuel producibility in the affected area or contiguous areas.

(V) The Administrator shall have no authority under this paragraph, when considering any particular State’s implementation plan or a revision to that State’s implementation plan, to approve any fuel unless that fuel was, as of the date of such consideration, approved in at least one State implementation plan in the applicable Petroleum Administration for Defense District. However, the Administrator may approve as part of a State implementation plan or State implementation plan revision a fuel with a summertime Reid Vapor Pressure of 7.0 psi. In no event shall such approval by the Administrator cause an increase in the total number of fuels on the list published under subclause (II). (VI) Nothing in this clause shall be construed to have any effect regarding any available authority of States to require the use of any fuel additive registered in accordance with subsection (b) of this section, including any fuel additive registered in accordance with subsection (b) of this section after August 8, 2005.

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L.2005EnergyEmergencyExecutiveOrders

ExecutiveOrderNo.2005‐16

STATEOFENERGYEMERGENCY

WHEREAS,Section1ofArticleVoftheMichiganConstitutionof1963veststheexecutivepoweroftheStateofMichiganintheGovernor;

WHEREAS,Section3of1982PA191,MCL10.83,authorizestheGovernortodeclareaStateofEnergyEmergencyuponnotificationofanimpendingenergyemergencybytheEnergyAdvisoryCommittee,orupontheGovernor’sowninitiative,iftheGovernorfindsthatanenergyemergencyexistsorisimminent;

WHEREAS,thedestructioncausedbyHurricaneKatrinainLouisiana,Mississippi,andAlabama,hasdegradedsignificantlythesupplyofcrudeoilfromtheGulfCoasttoMidwestoilrefineries,includinginMichigan;

WHEREAS,theeffectsofHurricaneKatrinahavealsoimpactedseriouslythesupplyandpriceofgasoline,dieselfuel,andotherpetroleumproductsintheMidwestandMichigan;

WHEREAS,theEnergyAdvisoryCommitteereportsthatthecurrentsituationhasaffectedthetransportationofpetroleumproductsinMichiganandtheabilitytosupplygasolinethatmeetsfederalairqualityrequirements;

WHEREAS,theEnergyAdvisoryCommitteetodaynotifiedtheGovernorthatbasedoninformationavailabletotheCommitteefromtheMichiganPublicServiceCommission,otherstateagencies,andothersourcesofinformationanenergyemergencyisimminentinthisstateduetotheeffectsofHurricaneKatrina;

WHEREAS,theEnergyAdvisoryCommitteealsohasrecommendedthattheGovernordeclareaStateofEnergyEmergencysothatappropriateactionmaybetaken;

WHEREAS,itisinthebestinterestsoftheStateofMichiganthatappropriatemeasuresbetakeninresponsetoanimminentenergyemergencytoensurethatpetroleumsupplieswillremainsufficientandtoassurethehealth,safety,andwelfareofMichiganresidentsandvisitors;

NOW,THEREFORE,I,JENNIFERM.GRANHOLM,GovernoroftheStateofMichigan,byvirtueofthepowerandauthorityvestedintheGovernorbytheMichiganConstitutionof1963and1982PA191,MCL10.81to10.87,orderthefollowing:

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1.AStateofEnergyEmergencyisdeclaredintheStateofMichigan.PursuanttoSection3of1982PA191,MCL10.83,theStateofEnergyEmergencyiseffectiveuntiltheearlierofeitherofthefollowing:

a.AfindingbytheGovernorthattheenergyemergencynolongerexists.

b.Tuesday,November29,2005.

ThisOrderiseffectiveuponfiling.

GivenundermyhandandtheGreatSealoftheStateofMichiganthis31stdayofAugustintheyearofourLord,twothousandandfive.

____________________________________JENNIFERM.GRANHOLMGOVERNOR

BYTHEGOVERNOR:____________________________________SECRETARYOFSTATE

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ExecutiveOrderNo.2005‐17

STATEOFENERGYEMERGENCYWAIVEROFREGULATIONSRELATINGTOMOTORCARRIERSANDDRIVERSTRANSPORTINGGASOLINE,DIESELFUEL,ANDJETFUEL

WHEREAS,Section1ofArticleVoftheMichiganConstitutionof1963veststheexecutivepoweroftheStateofMichiganintheGovernor;

WHEREAS,underSection4of1982PA191,MCL10.84,duringadeclaredStateofEnergyEmergencytheGovernormaybyexecutiveordersuspendastatute,order,ruleofastateagency,orspecificprovisionofastatute,rule,ororderifstrictcompliancewiththestatute,order,rule,oraspecificprovisionofthestatute,rule,ororderwillprevent,hinder,ordelaynecessaryactionincopingwiththeenergyemergency;

WHEREAS,basedontheeffectsofHurricaneKatrina,ExecutiveOrder2005‐16declaredaStateofEnergyEmergencyinthisstatebeginningonAugust31,2005;

WHEREAS,theUnitedStatesDepartmentofTransportationFederalMotorCarrierSafetyAdministrationhasdeclaredthataregionaltransportationemergencyexistsintheMidwestRegion(Illinois,Indiana,Iowa,Kansas,Michigan,Minnesota,Missouri,Nebraska,OhioandWisconsin)inthehighwaytransportationofcertainpetroleumproducts;

WHEREAS,asaresultofthedeclaredregionaltransportationemergency,theFederalMotorCarrierSafetyAdministration,actingpursuantto49CFR390.23,hasexemptedmotorcarriersanddriverstransportinggasoline,dieselfuel,andjetfuelfrom49CFRParts390‐399toaddresstransportationneedsarisingfromtheimpactofHurricaneKatrina.Theexemptioniseffectivefrom1:00p.m.EDT,August31,2005until1:00p.m.EDT,September14,2005;

WHEREAS,inaddition,appropriatemeasuresmustbetakenatthestatelevelinresponsetotheenergyemergencytoensurethatpetroleumsupplieswillremainsufficientandtoassurethehealth,safety,andwelfareofMichiganresidentsandvisitors;

NOW,THEREFORE,I,JENNIFERM.GRANHOLM,GovernoroftheStateofMichigan,byvirtueofthepowerandauthorityvestedintheGovernorbytheMichiganConstitutionof1963and1982PA191,MCL10.81to10.87,orderthefollowing:

1.Motorcarriersanddriverstransportinggasoline,dieselfuel,andjetfuelinMichigantoaddresstransportationneedsarisingfromtheimpactofHurricaneKatrinaareexemptfromcompliancewithanyapplicablestatestatute,order,orrulesubstantiallysimilarto49CFRParts390‐399.Anysuchprovisionofastatestatute,order,orruleissuspended.TheexemptionandsuspensionexemptioniseffectivefromthetimeoftheissuanceofthisOrderuntil1:00p.m.EDT,September14,2005.

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2.Thisorderappliesonlytogasoline,dieselfuel,andjetfuel.NootherpetroleumproductsarecoveredbytheexemptionandsuspensionunderthisOrder.

3.NothinginthisOrdershallbeconstruedasanexemptionfromapplicablecontrolledsubstancesandalcoholuseandtestingrequirements(49CFRPart382andanysimilarstatestatute,order,orrule),thecommercialdriver’slicenserequirements(49CFRPart383andanysimilarstatestatute,order,orrule),thefinancialresponsibilityrequirements(49CFRPart387andanysimilarstatestatute,order,orrule),applicablesizeandweightrequirements,oranyportionoffederalregulationsnotspecificallyidentified.

4.Motorcarriersordriverscurrentlysubjecttoanout‐of‐serviceorderarenoteligiblefortheexemptionandsuspensionuntiltheout‐of‐serviceorderexpiresortheconditionsforrescissionhavebeensatisfied.

5.TheFederalMotorCarrierSafetyAdministrationhasrequiredthatdriversformotorcarriersoperatingundertheDeclarationofEmergencyissuedunderfederalregulationsmusthaveacopyofthefederalDeclarationofEmergencyintheirpossession.AcopyofthatDeclarationofEmergencyisattachedtothisOrder.

6.TheMotorCarrierDivisionoftheDepartmentofStatePoliceshallcoordinatestatecompliancewiththisOrder.

ThisOrderiseffectiveuntiltheearliestofanyofthefollowing:

a.AfindingbytheGovernorthattheStateofEnergyEmergencydeclaredunderExecutiveOrder2005‐16nolongerexists.

b.RescissionofthisOrder.

c.1:00p.m.EDT,Wednesday,September14,2005.

ThisOrderiseffectiveuponfiling.

GivenundermyhandandtheGreatSealoftheStateofMichiganthis31stdayofAugustintheyearofourLord,twothousandandfive.

____________________________________JENNIFERM.GRANHOLMGOVERNOR

BYTHEGOVERNOR:____________________________________SECRETARYOFSTATE

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ExecutiveOrderNo.2005‐18

STATEOFENERGYEMERGENCYTEMPORARYSUSPENSIONOFRULESFORGASOLINEVAPORPRESSUREWHEREAS,Section1ofArticleVoftheMichiganConstitutionof1963veststheexecutivepoweroftheStateofMichiganintheGovernor;WHEREAS,underSection4of1982PA191,MCL10.84,duringadeclaredStateofEnergyEmergencytheGovernormaybyexecutiveordersuspendastatute,anorder,aruleofastateagency,oraspecificprovisionofthestatute,rule,ororderifstrictcompliancewiththestatute,order,rule,oraspecificprovisionofthestatute,rule,ororderwillprevent,hinder,ordelaynecessaryactionincopingwiththeenergyemergency;WHEREAS,basedontheeffectsofHurricaneKatrina,ExecutiveOrder2005‐16declaredaStateofEnergyEmergencyinthisstatebeginningonAugust31,2005;WHEREAS,appropriatemeasuresmustbetakeninresponsetotheenergyemergencytoensurethatgasolinesupplieswillremainsufficientandtoassurethehealth,safety,andwelfareofMichiganresidentsandvisitors;NOW,THEREFORE,I,JENNIFERM.GRANHOLM,GovernoroftheStateofMichigan,pursuanttopowersvestedintheGovernorbytheMichiganConstitutionof1963andMichiganlaw,orderthefollowing:1.RegulationNo.561,entitled,“DispensingFacilityReidVaporPressure,”promulgatedbytheLaboratoryDivisionoftheDepartmentofAgriculture,1997AACS,R285.561.1to285.561.10,issuspendedforthedurationoftheStateofEnergyEmergencydeclaredinExecutiveOrder2005‐16.TheDepartmentofAgricultureisresponsibleforcoordinatingstatecompliancewiththisOrder.ThisOrderiseffectiveuponfiling.GivenundermyhandandtheGreatSealoftheStateofMichiganthis31stdayofAugustintheyearofourLord,twothousandandfive.____________________________________JENNIFERM.GRANHOLMGOVERNORBYTHEGOVERNOR:____________________________________SECRETARYOFSTATE

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M.EmergencyRelieffromFMCSASafetyRegulations

49CFR390.23Federalregulations(49CFRPart390.23)allowfortemporaryrelieffromthesafetyregulationstoanymotorcarrierordriveroperatingacommercialmotorvehicle(CMV)toprovidedirectemergencyassistanceduringanemergency.Specifically,reliefisprovidedfrom49CFRParts390through399oftheFMCSR.Belowisabriefsynopsisofthesafetyregulationsforwhichtheemergencyexemptionsapply.49CFRPart390–GeneralApplicability

Defineswhichdriversandvehiclesarecoveredby49CFRParts390‐399 Establishesrequirementsformaintaininganaccidentregister EstablishesregistrationrequirementstoobtainaUSDOTnumber Definesmarking(identification)requirementsforCMVs Definesrecordkeepinglocations

49CFRPart391–QualificationofDrivers

EstablishesqualificationstandardsfordriverstooperateaCMVincluding:o Ageanddrivers’licenseo Employmentapplicationprocesso Employmentbackgroundcheckso Annualreviewofdrivingrecordo Roadtestso Medicalqualifications

Establishesrequirementsformaintainingacompletedriverqualificationfile49CFRPart392–DrivingofCommercialMotorVehicles

RequiresdriversofCMVstocomplywithallStateandLocaltrafficlaws EstablishesprohibitionfromoperatingaCMVwhileill,fatigued,orwhileusingor

recentlyusedalcoholordrugs Establishesstandardsforslowingandstoppingatrailroadgradecrossings EstablishesstandardsforusingemergencysignalsandflareswhenaCMVstopsor

becomesinoperableattheroadside EstablishesgeneralprecautionsfortheoperationofCMVs

49CFRPart393–PartsandAccessoriesNecessaryforSafeOperationofaCMV

EstablishesCMVequipmentstandards,including:o Lights,reflectorsandelectricalequipmento Brakesandbrakingsystemso Window/windshieldglazingandconstructiono Fuelsystemso Couplingdeviceso Tiresandwheels

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o Frameandsuspensionsystemso Mirrors,windshieldwipers,horns,exhaustsystemsando OthermiscellaneousCMVpartsandaccessories

Establishesstandardsfortheproperloadingandsecurementoffreight49CFRPart394–Reserved49CFRPart395–HoursofServiceofDrivers

EstablishesmaximumdrivinglimitsfordriversofCMVs Establishesrecord‐keepingrequirementsfordrivers’hours‐ofservice Establishesstandardsforhours‐ofserviceautomaticonboardrecorders

49CFRPart396–Inspection,RepairandMaintenance

Establishesfortheproperinspection,repairandmaintenanceofCMVs EstablishesprohibitionsforoperatingaCMVinanunsafemechanicalcondition Establishesrecord‐keepingrequirementsforinspection,repairandmaintenance

activities Establishesqualificationstandardsforpersonsperforminginspection,repairand

maintenanceduties49CFRPart397–TransportationofHazardousMaterials–DrivingandParkingRules

EstablishesrequirementsforthesafeparkingandmonitoringofCMVswhentransportinghazardousmaterials

EstablishesprohibitionsregardingsmokinginoraroundaCMVwhentransportinghazardousmaterials

EstablishesrequirementsforsaferoutingofaCMVwhentransportinghazardousmaterials

49CFRPart398–TransportationofMigrantWorkers

Establishesstandardsforthesafetransportationofmigrantworkers Standardsarea“streamlined”versionof49CFRParts391‐396definedabove

49CFRPart399–EmployeeSafetyandHealthStandards

EstablishesstandardsforsafeentryandegressfromaCMV Establishestestingandmaintenancestandardsforthesteps,handholds,andordeck

platesusedforsafeentryandegressfromaCMVWhile49CFRPart390.23allowsfortemporaryrelieffromthesafetyregulations,theregulationdoesnotallowFMCSAtosuspendrequirementsforaCommercialDriversLicense(49CFRPart383),controlledsubstancesandalcoholtesting(49CFRPart382)ormotorcarrierfinancialresponsibility/insurance(49CFRPart387).

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N.NASEOGuidanceonFMCSARegulations

GuidanceforStatesonRelieffromFederalMotorCarrierSafetyRegulationsinanEnergyEmergency.Disclaimer:Thisguidanceisintendedonlytoprovideasummaryandexplanationofhowandwhenregulatoryreliefisgranted.Theregulationsgovernthespecificrequirementsforregulatoryreliefandshouldbefirstreviewed,andtheFMCSAconsultedasneeded,ifthereareanyquestionsonhowandwhentheyapply.ThisguidancewaspreparedbytheNationalAssociationofStateEnergyOfficialswithinputfromtheFederalMotorCarrierSafetyAdministration.

THEFOLLOWINGORGANIZATIONPREPAREDTHISREPORT:NationalAssociationofStateEnergyOfficials

2107WilsonBoulevard,Suite850,Arlington,Virginia22201‐3091Telephone:703.299.8800;Fax:703.299.6208

Website:http://www.naseo.org/energyassuranceIntroductionAspartoftheirEnergyAssurancePlans,statesshouldaddresshowrelieffromFederalMotorCarrierSafetyRegulations(FMCSR)canaidintheresponsetoanenergyemergency.CertainFMCSR1allowtemporaryemergencyrelieffromthesafetyregulationsofanymotorcarrierordriveroperatingacommercialmotorvehicle(CMV)toprovidedirectemergencyassistanceduringanemergencydeclaredbyaGovernororotherauthorizedofficial.Emergencyassistancesupplementsstateandlocaleffortsandcapabilitiestosavelivesorpropertyortoprotectpublichealthandsafetyasaresultofanemergency.Thisguidanceexplainshowthisreliefisimplementedunderadeclaredemergency,whatpartsoftherulesarewaived,andhowitisplacedineffect.Tofurtherassiststatesintakingthisactionadraftexecutiveorderisincluded.Thisorderwillneedtobetailoredtothecircumstancesandthestatutoryauthorityofeachstate.AlsofollowingtheexecutiveorderareabrieflistofsuggestedimplementationactionswhichagainshouldbeadaptedasneededtothepoliciesandpracticesofeachState.ItisNASEO’srecommendationthatthiscontingencybeincludedinStateEnergyAssuranceplansasappropriate.EmergencyrelieffromtheFMCSRistriggeredunderadeclaredemergencyfollowinganeventthatresultsinreducedfuelsuppliesorrequiredtransportationcapacitytoresupplytheaffectedarea.Eventscouldbecausedbytheunanticipatedshutdownofalargerefineryorofmultiplerefineries;adisruptiontoamajorpetroleumpipeline;alarge‐scalepowerblackout;orothersimilarevents.Reliefmayalsobenecessitatedafteranaturaldisaster,whichdamagesorreducesthecapacityofenergyinfrastructurethatisneededtomeetstateandregionalenergydemands.Evenifenergyinfrastructureisnotdamaged,anincreaseinfuelsuppliesmaybeneededtosupportanoverallrecoveryeffort.Emergencyrelieffromthesafetyregulationshasbeencommonlyreferredtobythestatesasawaiverofdriverhours‐of‐service.However,formotorcarriersandCMVdrivers

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qualifyingfortheexemption,adeclarationofemergencyinvokes100percentexemptionfromallofthesafetyregulationscontainedunderregulations49CFRParts390—399(seebelow).ThisistrueregardlessofwhethertheemergencydeclarationspecificallystatesthefullextentoftheFederalexemption.

Part390—GeneralApplicability Part391—QualificationofDrivers Part392—DrivingofCommercialMotorVehicles Part393—PartsandAccessoriesNecessaryforSafeOperationofaCMV Part395—Hours‐of‐ServiceofDrivers Part396—Inspection,RepairandMaintenance Part397—TransportationofHazardousMaterials–DrivingandParkingRules Part398—TransportationofMigrantWorkers Part399—EmployeeSafetyandHealthStandards

Asummaryoftheprovisionsofeachofthesepartsisprovidedbelow.Whenanemergencyisdeclared,truckandbusactivitiesinvolvingtransportationandotherreliefservicesfortheimmediaterestorationofessentialservices(e.g.,electricity,medicalcare,sewer,water,telecommunications)oressentialsupplies(e.g.,food,fuel)areexemptfrommostoftheFMCSR.2Theemergencyreliefdoesnotincludetransportationrelatedtolong‐termrehabilitationofdamagedphysicalinfrastructureorroutinecommercialdeliveriesaftertheinitialthreattolifeandpropertyhavepassed.MotorcarriersarenotrequiredtoobtainapprovalfromtheFMCSApriortoparticipatingintheemergencyreliefeffort. Theregulatoryreliefisautomaticallygrantedwithoutfurtheractionbyany motorcarrierswhoaresupplyingtheareacoveredbytheemergencydeclaration.WhatisanEmergency?Under49CFR§390.5,thedefinitionofanemergencymeansanyhurricane,tornado,storm(e.g.,thunderstorm,snowstorm,icestorm,blizzard,sandstorm),highwater,wind‐drivenwater,tidalwave,tsunami,earthquake,volcaniceruption,mudslide,drought,forestfire,explosion,blackoutorotheroccurrence,naturalorman‐made,whichinterruptsthedeliveryofessentialservices(e.g.,electricity,medicalcare,sewer,water,telecommunications,andtelecommunicationtransmissions)oressentialsupplies(e.g.,food,fuel)orotherwiseimmediatelythreatenshumanlifeorpublicwelfare,providedsuchhurricane,tornado,orothereventresultsinadeclarationofanemergencybythePresidentoftheUnitedStates,theGovernorofaState,ortheirauthorizedrepresentativeshavingauthoritytodeclareemergencies;bytheFederalMotorCarrierSafetyAdministration(FMCSA)FieldAdministratorforthegeographicalareainwhichtheoccurrencehappens;orbyotherFederal,Stateorlocalgovernmentofficialshavingauthoritytodeclareemergencies.DoGovernorsneedtotakeanactionbeyondissuingtheemergencyordisasterdeclaration?

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Onceanemergencyisdeclaredtheregulatoryreliefisautomaticallyineffectevenifthestatedoesnotexplicitlyrequestthatthisreliefbegranted.Howeverastatemaydeclareanemergencyordisasterandtakeactionsunderthedeclarationstatingthatitprovidesthisregulatoryreliefandspecifyingthecommoditiescovered,suchasfuel,equipment,orsuppliesneededtorepairdamagedenergyinfrastructure.Itisthestate’sresponsibilitytodesignateiftheemergencyisdeclaredinalloronlypartofthestate.Governorsarebestsuitedtodeterminetheneedforadeclarationofemergencyintheirstateandhavetheauthoritytoissuesuchadeclaration.Therulemakinghistorygoesbackto1992inresponsetoHurricaneHugo.Atthistime,thefirstFederalregulatoryreliefstandardwasintroduced.In1995,itwasamendedinwakeoftheresponsetoHurricaneAndrewbyallowingstateandlocalauthoritiestobeincluded.Aremotorcarriersexemptfromthesafetyregulationsthroughouttheirrouteeventhoughtheymaybedrivingthroughoneormorestatesinordertoproviderelieftoanotherstate?AdeclarationofemergencybytheGovernor(orotherauthorizedofficial)providesthetemporaryexemptiontoanymotorcarrierprovidingrelieftoastate(oraffectedareaofastate)regardlessofwherethemotorcarrier’sstartingpoint.Thismeanstrucksdriverspassingthroughoneormorestatestoservicetheneedsofanotherstatewhereanemergencyordisasterhasbeendeclaredarecoveredbytheregulatoryreliefiftheyarehaulingsuppliesneededintherecoveryeffort.Intheeventofafuelshortagethiswouldincludeanyrefinedpetroleumproducts,andanybiofuelsincludingbiodieselandethanol.Theonlyrequirementisthatthemotorcarrierbeprovidingdirectemergencyassistancetotheareainwhichanemergencyhasbeendeclared.VehicleregistrationandfueltaxcomplianceareadministeredbythestatesthroughtheInternationalRegistrationPlan(IRP)andInternationalFuelTaxAgreement(IFTA)respectively.Motorcarriersshouldworkwiththestatesalongtheirroutetodeterminewhethertrippermitsoremergencyreliefareavailableforregistrationandfueltax.Trucksizeandweightreliefisastate‐by‐statematter,wheretheFederalHighwayAdministration(FHWA)istheleadFederalagency.Somestateshavesizeandweightorproceduralreliefsinplacefortheemergency.Motorcarriersdesiringoversize/overweightpermitsshouldworkwiththestatesalongtheirroute.FHWAhasmoresizeandweightinformationavailableathttp://www.fhwa.dot.gov.Aremotorcarriersrequiredtohavedocumentationon‐boardtheirvehiclesidentifyingthedriversandvehiclesusedintheemergencyreliefeffort?No.FMCSAdoesnotrequiremotorcarrierstohavepaperworkdocumentingtheirinvolvementintheemergencyreliefeffortwhilethedeclarationisineffect.However,FMCSArecommendsthatmotorcarriershavedocumentstoshowtoenforcementofficialsintheeventthevehicleisstoppedpriortoreachingthesceneoftheemergency.Thedocumentsmayalsobeneededtoenterintotheemergencyarea.

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Driversshouldhaveamanifestwiththemthatclearlyshowsadestinationfordeliveryofessentialserviceorcommodityinthestatedeclaringtheemergency.Whentheemergencydeclarationendsornolongerprovidesdirectsupport,driversmustresumetheircompliancewithallsafetyregulations.Statescanfacilitatetheimplementationofemergencyreliefbynotifyingtheirmotorcarrierenforcementagencyandthetruckingindustrythatemergencyrelieffromthesafetyregulationsisineffectandforhowlong.Statesshouldmaketheemergencydeclarationandanyrelevantexecutiveorderavailableonastatewebsiteandprovidealinktothedocumentsandrecommend,butnotrequire,thatmotorcarriersservingtheemergencyareashouldhaveacopyofthedeclarationwiththemtohelpfacilitatetheirabilitytoassistintherecoveryeffort.TheFMCSAwebsitelistsknownemergencydeclarationsinthe“NewsandAlerts”boxatthetopofitshomepageathttp://www.fmcsa.dot.gov.Howlongdoestheemergencyrelieflast?Theemergencyreliefremainsineffectforthedurationoftheemergency(asdefinedin49CFR390.5)or30days,whicheverisless.OnlyFMCSAFieldAdministratorsmayextendthe30‐daylimitforanexemptionfromtheFMCSRifadditionalemergencyreliefeffortsarenecessaryonaregionalorlocalbasis.Uponterminationofsupportfortheemergency,adrivermaynotdriveuntilheorshehasmettherequirementsof49CFR395.3(a)and395.5(a)andthedriverhashadatleast34consecutivehoursoffdutywhenthedriverhasbeenondutymorethan60hoursintheprevious7daysormorethan70hoursintheprevious8days.Whatspecificsafetyregulationsarewaived?Followingisasummaryofthesafetyregulationsthatarewaivedorexemptedinadeclaredemergency.49CFRPart390—GeneralApplicability

Defineswhichdriversandvehiclesarecoveredby49CFRParts390—399 Establishesrequirementsformaintaininganaccidentregister EstablishesregistrationrequirementstoobtainaUSDOTnumber Definesmarking(identification)requirementsforCMVs Definesrecordkeepinglocations

49CFRPart391—QualificationofDrivers

EstablishesqualificationstandardsfordriverstooperateaCMVincluding:o Ageanddriver’slicenseo Employmentapplicationprocesso Employmentbackgroundcheckso Annualreviewofdrivingrecordo Roadtestso Medicalqualifications

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Establishesrequirementsformaintainingacompletedriverqualificationfile49CFRPart392—DrivingofCommercialMotorVehicles

RequiresdriversofCMVstocomplywithallStateandLocaltrafficlaws EstablishesprohibitionfromoperatingaCMVwhileill,fatigued,orwhileusingor

recentlyusedalcoholordrugs Establishesstandardsforslowingandstoppingatrailroadgradecrossings EstablishesstandardsforusingemergencysignalsandflareswhenaCMVstopsor

becomesinoperableattheroadside EstablishesgeneralprecautionsfortheoperationofCMVs

49CFRPart393—PartsandAccessoriesNecessaryforSafeOperationofaCMV

EstablishesCMVequipmentstandards,including:o Lights,reflectorsandelectricalequipmento Brakesandbrakingsystemso Window/windshieldglazingandconstructiono Fuelsystemso Couplingdeviceso Tiresandwheelso Frameandsuspensionsystemso Mirrors,windshieldwipers,horns,exhaustsystemsando OthermiscellaneousCMVpartsandaccessories

Establishesstandardsfortheproperloadingandsecurementoffreight49CFRPart394—Reserved49CFRPart395—HoursofServiceofDrivers

EstablishesmaximumdrivinglimitsfordriversofCMVs Establishesrecord‐keepingrequirementsfordrivers’hours‐ofservice Establishesstandardsforhours‐ofserviceautomaticonboardrecorders

49CFRPart396—Inspection,RepairandMaintenance

Establishesfortheproperinspection,repairandmaintenanceofCMVs EstablishesprohibitionsforoperatingaCMVinanunsafemechanicalcondition Establishesrecord‐keepingrequirementsforinspection,repairandmaintenance

activities Establishesqualificationstandardsforpersonsperforminginspection,repairand

maintenanceduties49CFRPart397—TransportationofHazardousMaterials—DrivingandParkingRules

EstablishesrequirementsforthesafeparkingandmonitoringofCMVswhentransportinghazardousmaterials

EstablishesprohibitionsregardingsmokinginoraroundaCMVwhentransportinghazardousmaterials

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EstablishesrequirementsforsaferoutingofaCMVwhentransportinghazardousmaterials

49CFRPart398—TransportationofMigrantWorkers

Establishesstandardsforthesafetransportationofmigrantworkers Standardsarea“streamlined”versionof49CFRParts391—396definedabove

49CFRPart399—EmployeeSafetyandHealthStandards

EstablishesstandardsforsafeentryandegressfromaCMV Establishestestingandmaintenancestandardsforthesteps,handholds,andordeck

platesusedforsafeentryandegressfromaCMVWhile49CFRPart390.23allowsfortemporaryrelieffromthesafetyregulations,theregulationdoesnotallowFMCSAtosuspendrequirementsforaCommercialDriver’sLicense(49CFRPart383),controlledsubstancesandalcoholtesting(49CFRPart382)ormotorcarrierfinancialresponsibility/insurance(49CFRPart387).WhereismoreInformationavailable?Formoreinformation,contactthenearestFMCSAfieldoffice.Contactinformationisavailableonline:http://www.fmcsa.dot.gov/about/contact/offices/displayfieldroster.aspx.StateImplementationofRelieffromFederalMotorCarrierSafetyRegulationsThefollowingissamplelanguagethatcanbeadaptedforusedinastateemergency,disaster,orenergyemergencydeclarationwherethestatewishestobeexplicitthatFederalMotorCarrierSafetyRegulations(FMCSR)arewaived(includingDriverHoursofService)alongwithothersafetyprovisionstofacilitatetherecoveryeffort.Thisisonlyasampleandshouldbeadaptedasneededtoconformtothestatutoryandregulatoryrequirementsofeachstate.Thisactionshouldbeconsiderediffuelsupplieshavebeenseriouslyimpactedbyanemergencythathasbroadlyimpactedthepetroleumindustrycapabilitytosupplytheaffectedareaorthattherecoveryeffortrequiresadditionalfuelsuppliestospeedtherecoveryeffort.

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ExecutiveOrderNo.[InsertE.O.NumberandYear]Stateof[Energy]Emergency[Disaster]

WaiverofSelectRegulationsCoveringMotorCarriersandDriversTransporting[insertfuelstobecoveredbytheordere.g.gasoline,dieselfuel,propane,

#2homeheatingoil,etc.]WHEREAS,[Insertcitationtolegalauthorities’thatgivetheGovernortheauthoritytotaketheactionscontainedintheorder]WHEREAS,[Insertabriefdescriptionoftheevent(s)thathaverequiredthisaction];andWHEREAS,[Insertabriefdescriptionoftheconsequencesandimpactsoftheevent(s)];andWHEREAS,itisinthebestinterestsoftheStateof[InsertName]toprovideforthesafetransportationofpetroleumproductswithinthisState,andtoassurethatpetroleumproductsupplieswillremainsufficienttoprotectthehealth,safety,andeconomicwell‐beingoftheState’sresidentsandvisitors;andWHEREAS,thisdeclarationofemergency[disaster]isrecognizedbytheFederalMotorCarrierSafetyAdministration(FMCSA)tocause,andtoplaceintoimmediateeffectrelieffromFederalMotorCarrierSafetyRegulations(FMCSR)containedin49CFRParts390‐399;and[Ifapplicable,insertanycorrespondingorequivalentreferenceinStateLaw.]WHEREAS,allofthesafetyregulationscontainedin49CFRParts390‐399arewaived,includingDriverHoursofService,howevermotorcarriersareencouragedtocomplywiththesafetyregulationswhichdonototherwiserestrictorimpedetheirabilitytoassistintherecoveryeffortintheareaforwhichanemergencyhasbeendeclared.NOW,THEREFORE,I,[InsertName],GovernoroftheStateof[InsertName],byvirtueofthepowerandauthorityvestedintheGovernorby[InsertLegalreferencetoauthorities],orderthefollowing:1. AStateof[Energy]Emergency[Disaster]isdeclaredintheStateof[InsertName]for

[InsertthenamesofthecountiesinwhichthisdeclarationappliesorspecifythatitisaStatewidedeclaration]

2. RelieffromFederalMotorCarrierSafetyRegulationscontainedin49CFRParts390‐399;and[Ifapplicable,insertanycorrespondingorequivalentreferenceinStateLawasmaybeneeded].

3. Thisorderappliesonlyto[Insertfuelstobecoveredbythisordere.g.gasoline,dieselfuel,#2homeheatingoil,propane,biofuels,etc.]NootherpetroleumproductsorotherfuelsarecoveredbytheexemptionandsuspensionunderthisOrder.

4. Therelieffromtheseregulationsshallremainineffectforthedurationoftheemergencyorthirty(30)dayswhicheverisless.OnlytheFMCSAFieldAdministratorcanextendthethirty(30)daylimitforanextensionofrelieffromthefederalsafetyregulations.

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5. NothinginthisOrdershallbeconstruedasanexemptionfromapplicablecontrolledsubstancesandalcoholuseandtestingrequirements(49CFRPart382and[insertapplicableStatestatute,order,and/orrule]),thecommercialdriver'slicenserequirements(49CFRPart383and[insertapplicableStatestatute,order,and/orrule]),thefinancialresponsibilityrequirements(49CFRPart387and[insertapplicableanysimilarStatestatute,order,and/orrule]),applicablesizeandweightrequirements,oranyportionoffederalandStateregulationsnotspecificallyidentified.

6. Motorcarriersordriverscurrentlysubjecttoanout‐of‐serviceorderarenoteligiblefortheexemptionandsuspensionuntiltheout‐of‐serviceorderexpiresortheconditionsforrescissionhavebeensatisfied.

Dated: [InsertCity,State][Governor'snameandthedate]Filewiththe[InsertStateAgencynameasmayberequired,ifnoteliminatethispart],on .Suggestedcommunicationsandimplementationprocedures:StatescanfacilitatetheimplementationofthewaivertotheFederalMotorCarrierSafetyRegulationsbytakingthefollowingsteps:1. PostacopyoftheGovernor’s(orotherauthorizedofficial’s)emergencydeclarationon

apubliclyavailablewebsiteandprovidealinktotheemergencydeclarationaspartofnotificationsmadetostate,local,andfederalagenciesandthemotorcarrierindustry.

2. Notifythemotorcarriersafetyenforcementagencyofstategovernmentthatanemergencyhasbeendeclared,inwhatpartofthestateitbeendeclared,andthatasaresultofthisdeclarationthesafetyregulationsaretemporarilywaived.

3. ProvidenotificationofemergencydeclarationtotheFMCSAstateofficeandregionaladministrator.

4. Notifymotorcarrierindustryassociationsormotorcarriersservicingthestatedirectlythroughanyautomatedsystemtoquicklycommunicatewiththeindustry.Thiscommunicationshouldencourage,butnotrequire,driverstransportingfuelstotheareasinwhichanemergencyhasbeendeclaredtohavewiththemacopyoftheemergencydeclarationandacopyofthewebsitelinkfromthedeclarationcanbeprinted.

5. ProvidenotificationtoStateEnergyEmergencyAssuranceCoordinatorsinthosestateswithintheregionthatmayhavemotorcarrierspassingthroughthemtoprovidereliefintheaffectedstate.Itisalsoadvisabletocoordinatewithneighboringstatesinadvanceofthisdeclaration,ifpossible.

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FactorswhichStatesShouldConsiderinAssessingtheNeedtoMakeaRequestforRegionalDriverHoursWaivers:Weather1.Issnoworicesufficientlyseverethatfullrecoveryofhighwaysandprimaryroadswilltakemorethantwodays?(Thestatedepartmentoftransportationandorcountyroadcommissionsmaybeabletoprovidethisinformation.)

2.Issnoworicesufficientlyseverethatfullrecoveryofsecondaryandruralroadswilltaketwotofourdays?(Checkwiththecountyroadcommissionorcountyemergencymanagementcoordinators.)

3.Iscoldsufficientlyseverethatfuelusebysignificantnumbersofhouseholdswilloutstriptheabilityoflocalretailers(operatingundernormalhoursofservicelimitations)toreplenishcritically‐lowhomefueltanks?

4.Iscoldsufficientlyseverethatfueltransporters(operatedbyjobbersorretailersundernormalhoursofservicelimitations)areunabletoreplenishthesuppliesofretailoutletsinthefaceofincreasedconsumerdemand?

5.HavetheHeatingDegreeDayssubstantiallyexceedednormalforaprolongedperiod?6.Whichcountieshavebeendeclaredunderastateofemergencyofanysort?Weatherpointstoemphasize:A.Regionalemergenciesshouldnotberequestedsolelybecauseofsevereweather;the

severeweathermustbeshowntohaveasignificantandprolongedeffectonthesupplysystemthatthreatenshumanlifeorpublicwelfare.

B.Thesimplefactthatoneortworetailersareintroubleshouldnotalonebegroundsforrequestingaregionalemergency.Retailersthatmismanagesuppliesorthatmakenoextraordinaryeffortstoobtainextrasuppliesorcontractwithadditionaldriversofjobbersshouldnotbeseenasgroundsforgrantingawaiver.

C.Thesimplefactthatsome"will‐call"customersareonthevergeofrunningoutoffuelbecauseoftheirownmismanagementoftheirsupply(e.g.callingonedaybeforetheyarelikelytorunout)shouldnotbegroundsforaregionalemergency.Theinabilityofretailerstosupply"keepfull"customersisabetterbarometerofinabilitytomeetdemand.

SupplyShortageandInfrastructureDamage1.Areterminallinesorproductshortagestheresultofproductallocationsbyasinglesupplierwithintheregion?

2.Whatisthestateandregionalinventorypicturehowdoesitcomparetolastyear,therecentaverageforthemonthorthehighandlowsforthemonth?

3.Hasapipeline,refinery,orterminalbeendamaged?4.Isadamagedpipelinerefinery,orterminaldispensedreducedquantitiesofproduct;hasdistributionactuallystopped?

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5.Howlongisadamagedpipeline,refinery,orterminalexpectedtobeatreducedcapacityorshutdown?

6.Whatisthegeographicrangeofproductdistributionfromthepipeline,refinery,orterminal?7.Areterminalswithintheregionoutofagivenproductandifsoforhowlong?8.Areterminaloutageslimitedtooneortwoterminalswithintheregion?9.Arealternativesuppliersavailablewithintheregion?10.Cantransportersreachalternativesupplierswithinnormalhoursofservicelimitations?11.Arethereothersmitigatingfactorsthatwilllessenthethreattothepublic(e.g.,mild

weather,alternativeproductavailability).SupplyShortageandInfrastructureDamagepointstoemphasize:

A.Aregionalemergencyshouldnotbedeclaredsolelybecauseofoutagesorlinesatoneorafewterminals,unlessobtainingfuelfromalternativesuppliersisimpossiblewithinnormalhoursofservicelimitations.

B.Aregionalemergencyshouldnotbedeclaredifconsumerdemandforagivenproductislowatthetimeofthesupplyshortage(e.g.,warmweatherduringapropaneshortage),unlesstheshortagebecomessufficientlylongthatretailersareunabletoreplenishtheirownsupplies.

C.Aregionalemergencyshouldnotbedeclaredifalternativeproductsarereadilyavailable(e.g.,lowsulfuron‐highwaydieselfuelinplaceofhighsulfurno.2homeheatingoil).

D.Weatherfactorscanexacerbatesupplyproblemsorinfrastructuredamage;thecombinedeffectsofdifferentfactorsthatbythemselveswouldnotresultinemergenciesshouldbeconsidered.

Transportation1.Havejobbersand/orretailerspressedallqualifieddriversintoservice?2.Haveorwillallqualifieddriversexhausttheirhoursofavailabilityundernormalhoursofservicelimitations?

3.Haveallavailabletrucksbeenplacedintoservice?4.Havethirdpartycarriersbeencontactedandfoundtobenotavailable?5.Aretherelinesatfuelterminals?6.Aretherelinesatfuelterminalsduringallhours,includingnighttime?7.Aretruckslinedupatfuelterminalwithwaitslongerthanfourhourstoloadsupplies,ifso,duringwhathoursofthedayand/ornighthavelinesbeenobserved?

8.Arelinesatterminalsisolatedtooneortwospecificterminalswithintheregion?

9.WhatotheractionshavetheindustrytaketoavoidtheneedtograntDriverhourwaivers?

Transportationpointstoemphasize:

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A.Thefactthatfueltruckdriversrequirespecialtrainingandcertificationisalimitationontheabilitytoemployextradriversduringemergencies.However,retailersandjobbersshouldmakeeffortstohireallavailabledriversandtoplaceintoserviceallavailabletrucksduringemergenciesorshortages.

B.Longwaitsatterminalsduringthedaydonotdemonstrateashortageofproductoraneedfordriverhour'swaiversifthoselinesdisappearatnight.

C.Linesatoneterminalandtheabsenceoflinesatanothermaysignifypriceshoppingratherthenproductshortagesortransportationdisruptions.Waiversshouldnotbegrantedwhereterminallinesaretheresultofeconomicdecisions.

RegionalEffect1.Whichstateshavebeendirectlyaffectedbysevereweather(cold,ice,orsnow)?2.Howmanystatesareservedbyterminalsthatareoutofproductoratwhichtherearelonglines?

3.Howmanystatesareservedbypipelinesthatareoutofserviceorthathaverestrictedsupplies?

4.Howdoaffectedstatesobtainfuelsupplies;istraveloutsidethestatevitaltoobtainingproduct?

5.Hassevereweatheraffectedastatethatsignificantnumbersoftransportersfromanotherstateneedtotravelintoobtainsupplies?

RegionalEffectpointstoemphasize:A.Uniformityinhoursofservicerequirementsamongaffectedstatesisdesirable.Ifseveral

statesaresimilarlyaffected,theyshouldreceive(orbedenied)thesamerelief.B.Considerationshouldbegiventothefactthatstateswithcold‐relatedemergencies

(heighteneddemand)maydrawsuppliesfromastatethatislessaffectedbythesameproblem;driversservinganemergencyinonestatewillstillneedtocrossstatelinestoobtainproduct.

C.Considerationshouldbegiventowheredriverswillneedtogotoobtainalternativesuppliesintheeventofsevereshortageorextremedemand.Theprecedinginformationisintendedtoserveasageneralguideline.Itisnotexpectedthatinformationansweringallofthesequestionswillbeavailable.However,totheextentthatstatescanprovideagooddetailedassessmentoftheproblemthepotentialfortheappropriategrantingofwaiversismorelikely.