Will Diesel shortages be the next unwelcome event after Sandy?

There are hundreds of diesel generators running to make-up for the power outages after Sandy.

FEMA has deployed hundreds of diesel generators in addition to the existing ones in place.

"Power generation tends to drive all the response and recovery activities," said FEMA chief Craig Fugate on Tuesday, adding that his agency had deployed hundreds of generators around the East Coast before the storm.

The EPA has issued a waiver for low sulfur diesel.

NEW YORK | Wed Oct 31, 2012 4:57pm EDT

(Reuters) - The Environmental Protection Agency on Wednesday granted New Jersey a temporary waiver on Ultra Low Sulfur Diesel (ULSD) requirements to help counter a shortfall in fuel supplies in parts of the state following Hurricane Sandy.

The waiver allows for the sale of diesel fuel that exceeds standards of 15 parts per million of sulfur under limited conditions effective immediately, according to a letter from EPA administrator Lisa Jackson to Governor Chris Christie.

The EPA letter is here.