USDOT issues energy emergency in Northeast US due to propane shortage

Dec 15 (Reuters) - The U.S. Department of Transportation has declared a regional emergency for Delaware, New Jersey, New York and Pennsylvania due to cold weather and a power outage at a Pennsylvania gas refinery that disrupted the flow of propane.

The declaration, made on Friday, allows carriers hauling propane, natural gas, and heating oil to bypass maximum driving time rules while providing direct assistance to the emergency.

Propane is a critical heating fuel in the U.S., especially during winter months, powering furnaces, water heaters, and stoves in homes and businesses. Supply strains during cold snaps and winter storms can drain inventories, making timely deliveries essential to maintain energy security.

According to the National Propane Gas Association, the emergency stems from a November incident at Marcus Hook Terminal, operated by Energy Transfer. The operator declared force majeure at the terminal and instituted allocation, providing for 70% of contracted loads.

Energy Transfer did not immediately respond to a request for comment.

The release from the USDOT's Federal Motor Carrier Safety Administration said the emergency declaration will remain in effect until the end of the emergency, or until 11:59 p.m. ET on December 25.

It also said the department may take action to modify the declaration, including modification of the transportations and commodities, and extend or terminate it if conditions warranted.

FMCSA said the exemption from the declaration applied only to shipments supporting emergency relief and did not waive other safety requirements, including drug and alcohol testing, commercial driver licensing and hazardous materials regulations.