Both bills would take effect only if the governor declares an energy emergency.
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A police officer directs traffic as a line of motorists stretches down Frenchtown Road Nov. 1 as customers wait to enter a gas station in Milford Borough, N.J.
Two measures aimed at preventing another fuel crisis like the one that followed Superstorm Sandy unanimously cleared a New Jersey state Senate panel today.
But some industry officials were dubious of both measures.
One bill would waive a license requirement for fuel distributors who deliver from out-of-state and the other would allow stations to cut the price of premium fuel if they run out of lower-octane gas. Both bills would take effect only if the governor declares an energy emergency.
Some gas industry officials said the first would allow for faster fuel deliveries in an emergency but could disrupt already strictly regulated standards. They maintain the second may be a nice idea, but wouldn’t do anything to help in a crisis similar to the one that followed Superstorm Sandy.
Sandy badly damaged ports that accept fuel tankers and flooded underground equipment that sends fuel through pipelines. Without power, fuel terminals couldn’t pump gasoline onto tanker trucks and gas stations couldn’t get deliveries, creating miles-long lines at stations that did have fuel.
Some experts wanted clarification on how the license bill would be implemented in such a highly-regimented industry, where every move from truck weight to overtime is strictly regulated, according to James Benton, the executive director of the New Jersey Petroleum Council.
Benton said after the hearing they must make sure the bill is not “creating auxiliary issues in a very settled, very tested delivery system.”
A co-sponsor of both bills, Sen. Robert Gordon, D-Bergen, said the measure is an effort to not penalize stations — which must follow strict regulations over listing prices — if they want to cut prices to benefit citizens while not running afoul of the rules. The state Division of Consumer Affairs, however, has said no stations have been penalized for selling cheaper gas during Superstorm Sandy.
Some industry officials expressed concerns over how long such crisis pricing would be in effect, according to New Jersey Gasoline Automotive Association Executive Director Sal Risalvato.
Risalvato also said the bill would have no effect on preventing another crisis because pricing was not the issue post-Sandy.
“This was a delivery problem, pure and simple,” Risalvato said.
Gordon said he would consider imposing a time limit to the fuel pricing bill.
The bills next go before the full Senate.