DOE: Sandy created 'severe energy supply interruption'

The Energy Department (DOE) will tap fuel from a home heating oil reserve to address a “severe energy supply interruption” caused by superstorm Sandy, DOE said Friday.

DOE will loan 2 million gallons of fuel from its Northeast Home Heating Reserve to first-responders in New York and New Jersey to aid recovery efforts.

The fuel will be used in emergency equipment, backup generators, buildings, water pumps, trucks and other vehicles, DOE said.

“Today’s announcement is part of the broader federal effort to respond to those impacted by Hurricane Sandy,” Energy Secretary Steven Chu said in a statement. “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.”

Power outages in New Jersey and New York have trapped fuel at shipping terminals, creating a supply shortage, The Hill reported Thursday. As a result, many gas stations have run out of fuel.

The Defense Department, which will deliver the fuel, said it would replenish the home heating reserve within 30 days.