Energy Department to Loan Emergency Fuel to Department of Defense as Part of Hurricane Sandy Response

Press Release

As part of the government-wide response and recovery effort for Hurricane Sandy, President Obama declared that Hurricane Sandy has created a severe energy supply interruption and directed the Energy Department to loan the Department of Defense ultra-low sulfur diesel from the Northeast Home Heating Oil Reserve. The Defense Logistics Agency (DLA) will begin drawing down stocks from the heating oil reserve terminal in Groton, Connecticut as early as tomorrow. The fuel, which will be distributed to state, local and federal responders in the New York/New Jersey area, will be used to provide additional supplies to ensure continued response and recovery efforts. This includes fuel for emergency equipment and buildings, including electrical generators, water pumps, GSA buildings, trucks and other vehicles.

"Today's announcement is part of the broader federal effort to respond to those impacted by Hurricane Sandy," said Secretary Chu. "This loan from the Northeast Home Heating Oil Reserve will help ensure state, local and federal responders in the impacted area have access to the diesel fuel they need to continue response and recovery efforts."

DLA estimates that it will initially draw down two million gallons of fuel from the reserve, but the Energy Department stands ready to make available additional fuel as needed. The Defense Department expects to replenish the fuel to the reserve within 30 days.

The Northeast Home Heating Oil Reserve was created in July 2000 as a component of the Strategic Petroleum Reserve to respond to emergencies and supply disruptions in the home heating oil market. The reserve holds 42 million gallons of ultra-low sulfur diesel, located at terminals in Groton, Conn. and Revere, Mass. This is the first time fuel has been released from the reserve.

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