Automotive Fuel Ratings Certification and Posting, 19684-19692 [2011-8097]
Download as PDF
<![CDATA[
19684
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
provide the specific data elements
required for the Transparency Act
reporting of subawards and executive
compensation [75 FR 43165].
Unfunded Mandates Reform Act of
1995
Pursuant to Title II of the Unfunded
Mandates Reform Act of 1995, Public
Law 104–4, NRCS assessed the affects of
this rulemaking action on State, local,
and Tribal governments, and the public.
This action does not compel the
expenditure of $100 million or more in
any one year (adjusted by inflation) by
any State, local, or Tribal governments,
or anyone in the private sector;
therefore, a statement under section 202
of the Unfunded Mandates Reform Act
of 1995 is not required.
List of Subjects in 7 CFR Parts 622, 624,
625, 1465 and 1470
Administrative practice and
procedures, Cooperative agreements,
Farmers, Federal aid programs,
Reporting and recordkeeping
requirements.
Accordingly, 7 CFR parts 622, 624,
625, 1465, and 1470 are amended as
follows:
■ 1. The authority citation for part 622
continues to read as follows:
Authority: 16 U.S.C. 6571–6578.
6. Section 625.4 is amended by
revising paragraph (b) to read as follows:
■
§ 625.4
Authority: Pub. L. 83–566, 68 Stat. 666 as
amended (16 U.S.C. 1001, et seq.); Pub. L.
78–534, 58 Stat. 889, 33 U.S.C. 701b–1.
2. Section 622.30 is amended by
adding a new paragraph (d) to read as
follows:
■
§ 622.30
General.
*
*
*
*
*
(d) Sponsors who receive financial
assistance awarded after October 1,
2010, must comply with applicable
registration and reporting requirements
of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L.
109–282, as amended), and 2 CFR parts
25 and 170.
*
*
*
*
*
■ 3. The authority citation for part 624
continues to read as follows:
Authority: Sec. 216, Pub. L. 81–516, 33
U.S.C. 701b–1; Sec. 403, Pub. L. 95–334, as
amended, 16 U.S.C. 2203; 5 U.S.C. 301.
Program requirements.
*
*
*
*
*
(b) Landowner eligibility. To be
eligible to enroll an easement in the
HFRP, an individual or entity must:
(1) Be the landowner of eligible land
for which enrollment is sought;
(2) Agree to provide such information
to NRCS, as the agency deems necessary
or desirable, to assist in its
determination of eligibility for program
benefits and for other program
implementation purposes; and
(3) Comply with applicable
registration and reporting requirements
of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L.
109–282, as amended), and 2 CFR parts
25 and 170.
*
*
*
*
*
■ 7. The authority citation for part 1465
continues to read as follows:
(11) Develop and agree to comply
with an APO and O&M agreement, as
described in § 1465.3; and
(12) Comply with applicable
registration and reporting requirements
of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L.
109–282, as amended), and 2 CFR parts
25 and 170.
*
*
*
*
*
■ 9. The authority citation for part 1470
continues to read as follows:
Authority: 16 U.S.C. 3838d–3838g.
10. Section 1470.6 is amended by
revising paragraphs (a)(4) and (a)(5) and
adding a new paragraph (a)(6) to read as
follows:
■
§ 1470.6
Eligibility requirements.
(a) * * *
(4) Supply information, as required by
NRCS, to determine eligibility for the
program, including but not limited to,
information related to eligibility
requirements and ranking factors,
conservation activity and production
system records, information to verify the
applicant’s status as a historically
underserved producer, if applicable,
and payment eligibility as established
by 7 CFR part 1400;
(5) Provide a list of all members of the
legal entity and embedded entities along
with members’ tax identification
numbers and percentage interest in the
entity. Where applicable, American
Indians, Alaska Natives, and Pacific
Islanders may use another unique
identification number for each
individual eligible for payment; and
(6) Comply with applicable
registration and reporting requirements
of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L.
109–282, as amended), and 2 CFR parts
25 and 170.
*
*
*
*
*
Signed this 31st day of March 2011, in
Washington, DC.
Dave White,
Vice President, Commodity Credit
Corporation and Chief, Natural Resources
Conservation Service.
[FR Doc. 2011–8368 Filed 4–7–11; 8:45 am]
Authority: 7 U.S.C. 1524(b).
BILLING CODE 3410–16–P
4. Section 624.6 is amended by
revising paragraph (a)(2) to read as
follows:
8. Section 1465.5 is amended by
revising paragraphs (c)(10) and (c)(11)
and adding a new paragraph (c)(12) to
read as follows:
FEDERAL TRADE COMMISSION
§ 624.6
§ 1465.5
16 CFR Part 306
■
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
Contributions that may be applied
towards the sponsor’s applicable costshare of construction costs include:
(A) Cash;
(B) In-kind services such as labor,
equipment, design, surveys, contract
administration and construction
inspection, and other services as
determined by the State Conservationist;
or
(C) A combination of cash and in-kind
services;
(ii) Obtain any necessary real property
rights, water rights, and regulatory
permits;
(iii) Agree to provide for any required
operation and maintenance of the
completed emergency measures; and
(iv) Comply with applicable
registration and reporting requirements
of the Federal Funding Accountability
and Transparency Act of 2006 (Pub. L.
109–282, as amended), and 2 CFR parts
25 and 170.
*
*
*
*
*
■ 5. The authority citation for part 625
continues to read as follows:
Program administration.
(a) * * *
(2) Sponsors must:
(i) Contribute their share of the project
costs, as determined by NRCS, by
providing funds or certain services
necessary to undertake the activity.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
■
Program requirements.
*
*
*
*
*
(c) * * *
(10) Be in compliance with the terms
of all other USDA-administered
conservation program agreements to
which the participant is a party;
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Automotive Fuel Ratings Certification
and Posting
Federal Trade Commission.
Final rule.
AGENCY:
ACTION:
E:\FR\FM\08APR1.SGM
08APR1
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
The Commission issues final
amendments to its Rule for Automotive
Fuel Ratings, Certification and Posting
(‘‘Fuel Rating Rule’’ or ‘‘Rule’’) by
allowing an alternative octane rating
method and making other miscellaneous
revisions. The Commission declines to
issue final ethanol labeling amendments
at this time.
DATES: The amendments published in
this document will become effective
May 31, 2011. The incorporation by
reference of certain publications listed
in the rule is approved by the Director
of the Federal Register as of May 31,
2011.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Matthew Wilshire, (202) 326–2976,
Attorney, Division of Enforcement,
Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania
Avenue, NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION
I. Introduction
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
In 2009, the Commission solicited
comments on its Fuel Rating Rule as
part of a systematic review of its rules
and guides.1 In response to those
comments, the Commission published a
Notice of Proposed Rulemaking
(‘‘NPRM’’) 2 on March 16, 2010,
proposing: (1) An alternative octane
rating method; (2) new rating,
certification, and labeling provisions for
blends of gasoline with more than 10
percent ethanol (‘‘ethanol fuels’’); 3 and
(3) miscellaneous minor amendments.
In addition, the Commission declined to
revise the Rule’s provisions regarding
fuels containing biodiesel and biomassbased diesel (collectively, ‘‘biodiesel
fuels’’).4
1 Federal Trade Commission: Automotive Fuel
Ratings, Certification and Posting: Request for
Public Comments, 74 FR 9054 (Mar. 2, 2009)
(‘‘RPC’’).
2 Federal Trade Commission: Automotive Fuel
Ratings, Certification and Posting: Notice of
Proposed Rulemaking, 75 FR 12470 (Mar. 16, 2010)
(‘‘NPRM’’).
3 The Rule already provides requirements for
ethanol fuels with at least 70 percent concentration,
E85. That fuel generally contains 85 percent ethanol
mixed with 15 percent gasoline. 16 CFR
306.0(i)(2)(ii).
4 Biodiesel fuels include pure biodiesel and
biomass-based diesel, as well as blends of those
fuels with conventional diesel. Biodiesel is a diesel
fuel produced by transforming animal fat or
vegetable oil into automotive fuel. Biodiesel serves
as a diesel substitute and is usually blended with
diesel for sale at retail pumps. Biomass-based diesel
is a larger category of diesel fuel substitutes
produced from nonpetroleum renewable resources
and that meet the registration requirements for fuels
and fuel additives established by the Environmental
Protection Agency. Biodiesel is a subset of biomassbased diesel. For further background on biodiesel
fuels, see the Commission’s announcement of
amendments expanding the Rule to cover those
fuels. Federal Trade Commission: Automotive Fuel
VerDate Mar<15>2010
16:34 Apr 07, 2011
Jkt 223001
19685
Commenters supported the proposed
octane rating method, suggested
allowing an additional octane rating
method, objected to several aspects of
the proposed ethanol labeling
requirements, argued for revision of the
Rule’s biodiesel fuel provisions, and
recommended further miscellaneous
changes. Below, the Commission
responds to those comments and
announces final amendments that allow
an alternative octane rating method.
The final amendments do not address
ethanol fuel labeling. Instead, the
Commission will address this issue at a
later date. As discussed below,
commenters criticized the proposed
labels, supporting different or additional
disclosures to prevent misfueling.
Moreover, after the comment period
closed, the Environmental Protection
Agency (‘‘EPA’’) issued a waiver
pursuant to the Clean Air Act that
allows use of ethanol-gasoline blends of
up to 15 percent ethanol concentration
(‘‘E15’’) in certain conventional vehicles,
subject to EPA approval. In light of the
comments and EPA’s waiver decision,
the Commission finds that more time is
necessary to address this issue. The
Commission, however, will not delay
final rulemaking regarding the proposed
alternate octane rating method and
biodiesel fuels because announcing final
decisions regarding both is in the public
interest.
This document first provides
background on the Fuel Rating Rule,
then discusses the comments submitted.
Finally, it responds to those comments
and describes the final amendments in
detail.
percent concentration (‘‘Mid-Level
Ethanol blends’’).7 In 2008, the
Commission again amended the Rule to
incorporate specific labeling
requirements for biodiesel fuels above
5 percent concentration, as required by
Section 205 of the Energy Independence
and Security Act of 2007 (‘‘EISA’’), 42
U.S.C. 17021.8
The Fuel Rating Rule designates
methods for rating and certifying fuels,
as well as posting the ratings at the
point of sale. The Rule also requires
refiners, importers, and producers of
any liquid automotive fuel to determine
that fuel’s ‘‘automotive fuel rating’’
before transferring it to a distributor or
retailer. For gasoline, covered entities
must determine the octane rating by
deriving research octane and motor
octane numbers using ‘‘ASTM
International’’ (‘‘ASTM’’) 9 standards
D2699 and D2700, respectively, and
then averaging the results. For
alternative fuels, except biodiesel fuels,
the rating is the minimum percentage of
the principal component of the fuel and
a brief description of the fuel.10 In
addition, any covered entity, including
a distributor, that transfers a fuel must
certify the fuel’s rating to the transferee
either by including it in papers
accompanying the transfer or by letter.
Finally, the Rule requires retailers to
post the fuel rating by adhering a label
to the retail fuel pump and provides
precise specifications regarding the
content, size, color, and font of the
label.
II. Background
The Commission received 12
comments in response to its March 2,
2009 Federal Register Notice.11 The
comments generally supported the Rule
but proposed several amendments,
focusing on three key issues. First,
commenters requested that the
Commission allow gasoline octane
rating using a method specified in
ASTM D2885, ‘‘Standard Test Method
for Determination of Octane Number of
Spark-Ignition Engine Fuels by On-Line
Direct Comparison Technique’’ (the ‘‘On-
A. The Fuel Rating Rule
The Commission first promulgated
the Fuel Rating Rule, 16 CFR part 306
(then titled the ‘‘Octane Certification
and Posting Rule’’), in 1979 in
accordance with the Petroleum
Marketing Practices Act (‘‘PMPA’’), 15
U.S.C. 2801 et seq.5 The Rule originally
applied only to gasoline. In 1993,
pursuant to amendments to PMPA, the
Commission expanded the Rule to cover
liquid alternative fuels.6 Currently, the
Rule defines ‘‘alternative liquid
automotive fuels,’’ as including, but not
limited to, certain listed fuels. That list
does not include ethanol fuels below 70
Ratings, Certification and Posting: Final Rule on
Biodiesel Labeling, 73 FR 40154 (Jul. 11, 2008)
(‘‘Biodiesel Fuel Rulemaking’’).
5 Federal Trade Commission: Automotive Fuel
Ratings, Certification and Posting: Final Rule, 44 FR
19160 (Mar. 30, 1979).
6 Federal Trade Commission: Automotive Fuel
Ratings, Certification and Posting: Final Rule, 58 FR
41356 (Aug. 3, 1993).
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
B. Procedural History
7 16
CFR 306.0(i)(2).
Fuel Rulemaking, 73 FR 40154.
9 ASTM International, formerly known as the
American Society for Testing and Materials,
develops international voluntary consensus
standards for various products, including
automotive fuel. See https://www.astm.org.
10 The Rule requires rating biodiesel fuels by the
percentage of biodiesel or biomass-based diesel in
the fuel.
11 The comments in response to the March 2,
2009 Federal Register Notice are located at:
https://www.ftc.gov/os/comments/fuelratingreview/
index.shtm.
8 Biodiesel
E:\FR\FM\08APR1.SGM
08APR1
19686
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
Line Method’’).12 Second, several
commenters supported new labeling
requirements for Mid-Level Ethanol
blends to prevent consumers from using
those blends in their conventional cars,
which would put their warranties at risk
and could harm various vehicle
components.13 Finally, commenters
urged the Commission to change its
biodiesel fuel provisions in two ways:
(1) By requiring producers to rate
biodiesel blends at or below 5 percent
concentration; and (2) by exempting
biomass-based diesel from the Rule.14
On March 16, 2010, the Commission
published an NPRM responding to the
commenters’ suggestions and proposing
four substantive Rule amendments.
First, to allow Mid-Level Ethanol blend
labeling above 10 percent and below 50
percent concentration, the proposed
amendments would have required rating
ethanol fuels by the amount of ethanol
in the blend, rather than by the
principal component of the fuel.
Second, the proposed amendments
would have required retailers to post
labels disclosing a Mid-Level Ethanol
blend’s ethanol content by displaying a
broad range of ‘‘10 to 70 percent
ethanol,’’ a narrower range, or a specific
percentage. Third, the proposed
amendments would have required all
ethanol fuel labels, including those for
E85,15 to contain the additional
disclosures ‘‘may harm some vehicles’’
and ‘‘check owner’s manual.’’ In the
NPRM, the Commission explained that
‘‘[t]his additional information should
assist consumers in identifying the
proper fuel for their vehicles.’’ 16 Fourth,
the proposed amendments would have
allowed the On-Line Method. After
reviewing ASTM D2885, the
Commission agreed that the method
yielded the same results as the method
the Rule currently allows.17 Finally, the
Commission proposed minor
miscellaneous amendments, which
included updating certain ASTM
standard references, modifying the Rule
language for clarification, and
addressing some typographical errors.18
The Commission did not propose
revising the Rule’s biodiesel fuel
provisions. The Commission explained
that rating blends at or below 5 percent
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
12 NPRM,
75 FR at 12472.
at 12471–72.
14 Id. at 12472–73. Commenters also proposed
several minor miscellaneous changes to the Rule.
15 The Rule currently provides specific
requirements for E85, a mix of gasoline and ethanol.
Although that fuel generally contains 85 percent
ethanol, retailers may reduce the ethanol
component to as little as 70 percent to allow proper
starting and performance in colder climates.
16 NPRM, 75 FR at 12474.
17 Id. at 12474–75.
18 Id. at 12475.
13 Id.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
would unnecessarily burden producers.
Furthermore, the Commission noted,
retailers that blended biodiesel could
either test the resulting blend, or blend
in a manner that would ensure that the
fuel fell within one of the Rule’s three
biodiesel labeling categories, and,
therefore, did not need rating
information to comply with the Rule.19
With respect to biomass-based diesel,
the Commission explained that, under
EISA, it had no discretion to exempt any
biomass-based diesel from the Rule’s
labeling requirements.20
III. Comments in Response to the
NPRM
The Commission received 62
comments in response to the NPRM.21
As in the prior comment period,
commenters focused on octane rating
methods, ethanol labeling, and biodiesel
fuel rating. They also proposed several
minor miscellaneous changes to the
Rule.
A. Octane Rating
The American Petroleum Institute
(‘‘API’’), ConocoPhillips, Marathon
Petroleum Company, LLC (‘‘Marathon’’),
and the National Petrochemical &
Refiners Association (‘‘NPRA’’)
addressed the Commission’s proposal to
allow octane rating through the On-Line
Method. All supported the proposal,
though API and Marathon noted that the
ASTM standards referenced in the
proposed amendments are now
outdated.22 To prevent this problem in
the future, Marathon and NPRA
suggested adopting ASTM D2885
without reference to a year.23
Tesoro, a manufacturer and marketer
of petroleum products, suggested
expanding the Rule’s provisions to
allow octane rating through infrared
analyzers (‘‘Infrared Method’’), which
Tesoro asserted ‘‘provide more reliable
results.’’ 24 Tesoro argued that the
Infrared Method provides more precise
and accurate results, an ability to
sample gasoline more efficiently, and
reduced costs to industry.25
Specifically, Tesoro reported:
A recent interlaboratory study was
conducted to demonstrate the accuracy and
precision of infrared analyzers for octane.
Based on the results of that study involving
six laboratories, near infrared analyzers
showed significantly better precision over
ASTM D2699 and D2700 octane [methods].26
Tesoro further reported that, due in part
to greater reliability, ‘‘[o]ver 25 states
use infrared analyzers for screening fuel
samples [to test octane levels] in the
field as well as in the laboratory.’’ 27
Tesoro also specifically addressed the
enforcement issues surrounding the
Infrared Method:
We also believe that in case of a
discrepancy between the posted octane rating
and the octane of the sample, ASTM D2699
and ASTM D2700 should continue to be used
as the referee method. This approach, which
is consistent with the enforcement approach
used by State regulatory agencies, should not
impose any additional enforcement burden
on the Commission—since ASTM D2699 and
ASTM D2700 would continue to be the
referee method.28
As a mechanism for allowing the
Infrared Method through an enforceable
Rule provision, Tesoro recommended
amending the Rule to allow the method
only insofar as the method conforms to
ASTM D6122, ‘‘Standard Practice for
Validation of the Performance of
Multivariate Infrared
Spectrophotometers,’’ and is specifically
correlated with the ASTM D2699 and
D2700 methods.29 In addition, Tesoro
submitted specific language to effect its
proposed change.30
Several State regulators supported
Tesoro’s proposal. For example, the
Washington State Department of
Agriculture reported that it ‘‘has used
portable infrared octane analyzers
successfully in the field to test octane
levels on gasoline motor fuels for over
10 years’’ and that it has ‘‘found portable
infrared analyzers to be an accurate and
low cost tool in determining octane
level compliance.’’ 31 Additionally, the
25 Id.
19 Id.
The three labeling categories are: (1) From
above 5 to no more than 20 percent; (2) above 20
percent to less than 100 percent; and (3) 100
percent. 16 CFR 12(a)(4)–(9).
20 NPRM, 75 FR at 12475.
21 The comments are located at: https://
www.ftc.gov/os/comments/fuelratingnprm.
22 ConocoPhillips comment at 1; API comment at
7; Marathon comment at 2; NPRA comment at 2.
23 Marathon comment at 2; NPRA comment at 2.
The Tennessee Department of Agriculture generally
supported adopting ASTM standards without
reference to a year of publication. Tennessee
Department of Agriculture comment at 3.
24 Tesoro comment at 1. Tesoro also submitted
additional documents to Commission staff during
the comment period, which are included in the
record.
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
at 1–2.
at 2.
27 Id. at 4.
28 Id. at 6.
29 Id. at 7.
30 Id. at 8. Petroleum industry members and
representatives ConocoPhillips, Flint Hills
Resources LP, Marathon, Suncor Energy USA,
NPRA, and Valero Energy Corporation (‘‘Valero’’)
also supported the Infrared Method. ConocoPhillips
comment at 2; Flint Hills Resources comment;
Marathon comment at 2; Suncor Energy USA
comment; NPRA comment at 3; Valero comment at
1.
31 Washington State Department of Agriculture
comment; see also Massachusetts Division of
Standards comment (supporting the Infrared
Method); Nevada Department of Agriculture
comment (same); North Carolina Department of
26 Id.
E:\FR\FM\08APR1.SGM
08APR1
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
National Conference on Weights and
Measures (‘‘NCWM’’) provided a survey
showing that 17 of 24 regulatory
agencies surveyed use the Infrared
Method to determine if fuel dispensed
at a pump has the same octane rating as
posted on the label.32
Significantly, the Center for Auto
Safety (‘‘CAS’’), a consumer group, also
supported Tesoro’s position. CAS
explained that allowing the method
would ease enforcement and, therefore,
benefit consumers:
Many States now use infrared analyzers to
determine octane because they are cheaper,
more accurate and permit greater number[s]
of dispensing pump inspections per day than
using octane engines. * * * Approving
infrared analyzers calibrated to measure
octane would allow greater levels of
enforcement and increased quality control by
refiners at lower cost.33
B. Biodiesel Fuels
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
Six commenters addressed the Rule’s
biodiesel fuel provisions. Generally,
these commenters disagreed with the
Commission’s decision not to propose
amendments to those provisions and
urged reconsideration. The commenters
supported rating biodiesel blends
containing 5 percent or less biodiesel,
exempting ‘‘renewable diesel’’ that
qualifies as biomass-based diesel, and
allowing a less precise content
disclosure for biodiesel blends above 20
percent concentration.
The Petroleum Marketers Association
of America (‘‘PMAA’’) explained why it
believed rating blends less than 5
percent concentration is necessary:
Currently, distributors and retailers are
receiving biodiesel blends from suppliers in
which they have no idea of the actual
biodiesel content. Therefore, it is impossible
for these downstream parties to accurately
notify consumers [of] the biodiesel content of
the fuel they are offering for sale other than
providing a possible blend range. * * * 97%
of all retail gasoline stations are owned by
petroleum marketers who are classified as
small businesses under the U.S. Small
Business Administration’s size standards.
Refiners, producers and distributors above
the terminal rack are large businesses. * * *
It would be entirely appropriate to shift this
compliance burden to the large businesses
who are not only more able to bear the
burden but also in a better position to track
and notify the amount of biodiesel they are
adding to product upstream of the terminal
rack.34
Fuel producer ConocoPhillips similarly
favored such rating, asserting that it
Agriculture and Consumer Services comment
(same).
32 NCWM comment at 3–4.
33 CAS comment at 2.
34 PMAA comment at 2.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
would alert all fuel recipients of the
biodiesel content.35
Although the comments that
addressed the issue favored expanding
the Rule’s biodiesel requirements, they
favored abolishing the Rule’s
requirements to rate, certify, and post
renewable diesel, a type of biomassbased diesel.36 The commenters
asserted that disclosing the presence of
renewable diesel is unnecessary
because, as Marathon stated, it ‘‘can not
be distinguished from’’ petroleum diesel
and ‘‘[t]here is no ASTM method to
identify the volume of renewable diesel
in a [blend].’’ 37 In addition, NPRA
asserted that because pipelines do not
segregate biomass-based diesel blends
from conventional diesel, rating
requirements ‘‘would be disruptive to
the distribution industry.’’ 38 Therefore,
the commenters concluded, retailers
cannot rate a biomass-based diesel
blend, and rating is unnecessary.
In addition, API asserted that it is
unclear whether the relevant statute
defines renewable diesel as biomassbased diesel. Specifically, it argued that
whether a particular batch of renewable
diesel met EISA’s definition of biomassbased diesel depended on how a
manufacturer processed it. Thus,
according to API, the Rule would
require different labeling for two
different batches of the exact same fuel,
an outcome API described as
‘‘absurd.’’ 39
Finally, API suggested loosening the
Rule’s requirements for over 20 percent
concentration biodiesel blends.
Specifically, it favored amending the
Rule, which currently requires
disclosure of the precise volume
percentage, to allow disclosure of a
percentage range similar to that
proposed in the NPRM for Mid-Level
Ethanol blends.40 API argued that a
range disclosure would ‘‘effectively
alert[ ] the consumer to the presence of
biodiesel’’ in the fuel.41
35 ConocoPhillips comment at 2. In addition, API
favored requiring entities to rate biodiesel blends at
5 percent or less concentration, but suggested rating
the fuel as simply containing biodiesel rather than
an exact percentage rating. API comment at 7.
36 Renewable diesel is a diesel fuel derived from
organic material. The fuel’s properties satisfy ASTM
D975, the standard for conventional diesel fuel. See
NPRM, 75 FR at 40155.
37 Marathon comment at 3; see also Valero
comment at 1; API comment at 9.
38 NPRA comment at 2.
39 API comment at 9–10.
40 Id. at 8.
41 Id. In addition to the issues discussed in this
section, Marathon opined that labeling
requirements should not apply to biodiesel blends
at or below 5 percent concentration. Marathon
comment at 3. The Rule currently exempts such
blends from labeling, and, as discussed below, the
final amendments do not alter that exemption.
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
19687
C. Ethanol Fuel Labeling
A majority of the commenters
submitted views and evidence regarding
the proposed ethanol fuel labeling
disclosures. Generally, the commenters
objected to the proposed labels’
disclosures. Several commenters,
including an association of ethanol
producers, argued that the labels
unfairly conveyed a negative message
about the fuel’s quality, with two of
those commenters asserting that the
proposed disclosures were beyond the
Commission’s authority under PMPA. In
contrast, other commenters argued that
the risks from ethanol misfueling
necessitated a stronger and more precise
disclosure regarding the amount of
ethanol in the fuel and the suitability of
such fuel for various vehicles or
engines.
As discussed below, the Commission
is not announcing ethanol labeling
amendments at this time. Therefore, this
document will not analyze the ethanol
labeling comments in depth.
D. Miscellaneous Issues
Several comments raised
miscellaneous issues. First, as discussed
above, Tesoro and other commenters
noted out-of-date ASTM references in
the Rule. Second, API argued that the
Rule should not require a Helvetica
Black font but rather allow any legible
block type font because Microsoft Word
does not offer Helvetica Black.42 Third,
API also noted its opposition to any
provision that would impose liability
for misfueling.43 Finally, the Alliance of
Automobile Manufacturers suggested
revising the biodiesel fuel definitions to
make clear that the Rule covers blends
of biodiesel and biomass-based diesel
and suggested a series of edits (e.g.,
changing ‘‘a percentage’’ to ‘‘the
percentage’’ in a Rule definition) to
ensure consistency.
IV. Final Rule Amendments
After considering the record, the
Commission now issues final Rule
amendments. Specifically, the
Commission will issue amendments
allowing octane rating through the OnLine Method and adopting several
minor, miscellaneous amendments. In
addition, the Commission retains the
Rule’s biodiesel fuel provisions in their
current form.
At this time, the Commission declines
to issue ethanol fuel amendments
because further consideration of the
comments and EPA’s recent waiver
decision is necessary. The Commission
also declines to issue amendments
42 API
43 Id.
E:\FR\FM\08APR1.SGM
comment at 6.
at 7.
08APR1
19688
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
allowing the Infrared Method or
addressing ethanol octane rating
because the record is not complete
regarding those issues.44
A. On-Line Method for Octane Rating
The NPRM proposed allowing octane
rating through the On-Line Method as
specified in ASTM D2885. The Rule
currently requires use of octane rating
methods specified in ASTM D2699 and
D2700. PMPA, however, authorizes the
Commission to consider other methods.
The On-Line Method detailed in ASTM
D2885 produces the exact same octane
rating as the D2699 and D2700
methods.45 Moreover, four commenters
supported the proposed change, and
none objected. Accordingly, the final
amendments adopt the NPRM’s
amendment allowing octane rating
through the On-Line Method.
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
B. Miscellaneous Amendments
Commenters raised several
miscellaneous issues. First, some
commenters noted that the current Rule
and the proposed amendments contain
outdated ASTM references.
Accordingly, the final amendments
update all ASTM references, including
those proposed in the NPRM. The
Commission does not, however, amend
the Rule to adopt these standards
without reference to a publication year,
as suggested by some commenters.
Doing so would incorporate those
standards as they change over time. If a
referenced ASTM standard changed in
an unanticipated way, it could change
the Rule’s meaning without public
notice and comment, or consideration
by the Commission. Second, one
commenter opposed any provision
imposing liability for misfueling.
Nothing in the Rule or the final
amendments imposes such liability.
Third, API noted that Helvetica Black
font is not universally available. The
final amendments, therefore, allow
Helvetica Black or equivalent type.
Finally, AAM suggested several
technical amendments, including
revisions to the biodiesel fuel
definitions to make clear that the Rule
covers blends of biodiesel and biomassbased diesel. Although the Commission
does not intend to exclude such blends,
44 As explained below, however, the Commission
will consider publishing a separate notice of
proposed rulemaking addressing the Infrared
Method and ethanol octane rating.
45 See ASTM D2885, Standard Test Method for
Determination of Octane Number of Spark-Ignition
Engine Fuels by On-Line Direct Comparison
Technique, available for inspection at the FTC’s
public reference room. Notably, D2885 provides
that the On-Line Method will produce ‘‘octane
numbers’’ as that term is defined in D2699 and
D2700. See id. at § 5.3.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
the definitions of those fuels are
prescribed by EISA and, therefore, the
Commission declines to alter them.46
The amendments incorporate AAM’s
other technical suggestions, except
those regarding the proposed ethanol
amendments.
In addition to the commenters’
suggested changes, the Commission
amends the Rule’s labeling
specifications to address an
inconsistency. Section 306.12(b)(2)
requires all uppercase type for labels for
all alternative fuels. Sections
306.12(a)(4) through (9), however,
require some lowercase type on
biodiesel fuel labels. The Commission,
therefore, amends § 306.12(b)(2) to make
clear that its all-caps requirement does
not apply to labeling requirements for
biodiesel fuels.47
C. Biodiesel
Several commenters urged the
Commission to make three changes to
the Rule’s biodiesel fuel provisions.
First, they reiterated an earlier request
to require rating and certification of
biodiesel blends at or below 5 percent
concentration. Second, they asked the
Commission to reconsider excluding
biomass-based diesel (or at least a
certain type of biomass-based diesel)
from the Rule. Finally, API supported
allowing a biodiesel content disclosure
using a broad range.48 As explained
below, the Commission declines to
make any of these changes.
1. Rating and Certifying Biodiesel
Blends of 5 Percent or Less
Concentration
In the NPRM, the Commission
declined to propose amendments
subjecting biodiesel blends at or below
5 percent concentration to the Rule’s
rating and certification requirements.
The Commission explained that doing
so would unnecessarily burden
producers and distributors by requiring
them to rate fuel that does not require
a label under EISA 49 and that retailers
blending biodiesel did not need such
rating and certifications to comply with
the Rule. The comments did not
46 42 U.S.C. 17021(c)(4) (defining biodiesel and
biomass-based diesel blends as blended with
‘‘petroleum-based diesel fuel’’).
47 The Commission also amends §§ 306.0(b), (i),
(j), and (l); 306.5; and 306.12(b) to correct
typographical errors, and § 306.0(i) for clarification
by eliminating the subsection number (3) and
replacing that with ‘‘provided, however.’’
48 API’s comment is unclear regarding how broad
a range the Commission should permit. Currently,
the Rule requires disclosure of an exact percentage.
49 See 42 U.S.C. 17021(b)(1) (biomass-based
diesels and biodiesel blends of no more than 5
percent concentration ‘‘shall not require any
additional labels’’).
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
challenge these conclusions. However,
they did note that the Rule currently
places the rating burden on blending
retailers, which are generally small
businesses, and argued that the
Commission should shift the burden to
producers and refiners that presumably
could absorb the burden more easily.
Although the Rule may burden small
businesses, adopting the proposed
change would increase the overall rating
burden on industry. Currently, the Rule
does not require rating or labeling of
blends at or below 5 percent
concentration. Under the commenters’
proposed change, however, all
manufacturers would have to rate these
blends regardless of whether retailers
would eventually use them to create a
fuel subject to the Rule. The
commenters have not provided evidence
showing that the burden on retailers
who blend a fraction of this fuel would
be greater than the burden they propose
putting on manufacturers to rate all of
it. Therefore, the Commission declines
to require such rating.
2. Exempting Biomass-Based or
Renewable Diesel From the Rule
In the NPRM, the Commission
explained that it cannot exempt
biomass-based diesel blends or provide
for different labels because Section 205
of EISA specifically requires labels for
all biomass-based diesel blends above 5
percent concentration.50 Thus, the
Commission has no discretion to
exempt biomass-based diesel from
labeling requirements, regardless of the
properties of the fuel or its purported
suitability for all diesel engines.
In response, API argued that,
depending on how they are processed,
certain renewable diesel blends would
meet the statutory definition of
‘‘biomass-based diesel’’ and other
renewable diesel blends with the exact
same properties would not. API
characterized this result as ‘‘absurd.’’
However, API’s interpretation of the law
appears to rest on a misreading of EISA.
Specifically, API relies on a definition
of ‘‘biomass-based diesel’’ from Section
201 of EISA, but a different section of
EISA defines ‘‘biomass-based diesel’’ for
labeling purposes. Specifically, 42
U.S.C. 17021, which is titled ‘‘Biomass50 Section 205 provides that ‘‘[e]ach retail diesel
fuel pump shall be labeled in a manner that informs
consumers of the percent of biomass-based diesel or
biodiesel that is contained in the biomass-based
diesel blend or biodiesel blend that is offered for
sale,’’ and that all blends over 5 percent ‘‘shall be
labeled’’ either ‘‘contains biomass-based diesel or
biodiesel in quantities between 5 percent and 20
percent’’ or ‘‘contains more than 20 percent
biomass-based diesel or biodiesel.’’ 42 U.S.C.
17021(b); see also Biodiesel Fuel Rulemaking, 75 FR
at 12475.
E:\FR\FM\08APR1.SGM
08APR1
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
based Diesel and Biodiesel Labeling,’’
defines biomass-based diesel as any
‘‘diesel fuel substitute produced from
nonpetroleum renewable resources that
meets the registration requirements for
fuels and fuel additives established by
the Environmental Protection Agency,’’
without limitation, including
limitations regarding co-processing.51
Thus, all renewable diesel blends
discussed in the record are ‘‘biomassbased diesel blends’’ under EISA, and
there is no inconsistency in treatment.
Therefore, the Commission declines to
make the requested change.
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
3. Allowing a Range Disclosure for
Biodiesel Blends Above 20 Percent
Concentration
The Commission also declines to
adopt API’s suggestion to rescind the
Rule’s requirement to disclose the
precise percentage of biodiesel for fuels
over 20 percent concentration. As the
Commission explained when it first
announced the Rule’s biodiesel
provisions, the performance of biodiesel
blends containing more than 20 percent
biodiesel is uncertain and can vary
significantly.52 The Commission further
noted that this requirement provides
information of interest to consumers
who favor a fuel blend with a high
percentage of non-petroleum
components.53 Therefore, the
Commission retains the specific
percentage designation requirement for
biodiesel blends of more than 20
percent.
D. Ethanol
In the NPRM, the Commission
proposed new rating and certification
requirements for Mid-Level Ethanol
blends and new labeling requirements
for all ethanol fuels. Specifically, the
proposed amendments would have
required rating and certifying Mid-Level
Ethanol blends by their ethanol content
and labeling all ethanol fuels with the
statements:
• MAY HARM SOME VEHICLES
• CHECK OWNER’S MANUAL
The proposed amendments also would
have required Mid-Level Ethanol blend
labels to contain a content disclosure
that the fuel contained between 10 to 70
percent ethanol (i.e., ‘‘10%–70%
ETHANOL’’), a narrower range, or the
precise amount of ethanol in the blend.
As noted above, commenters
generally criticized the proposed
disclosures as unfairly denigrating
ethanol or as insufficiently specific to
51 42
U.S.C. 17021(c)(2) (incorporating the
definition in 42 U.S.C. 13220(f)).
52 Biodiesel Fuel Rulemaking, 73 FR at 40158.
53 Id.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
prevent misfueling. In addition, after the
FTC’s Fuel Rating Rule comment period
closed, EPA issued a Clean Air Act
waiver allowing E15, which the
proposed amendments defined as a
Mid-Level Ethanol blend, in certain
conventional vehicles.54 Specifically, in
November 2010, EPA granted a waiver
allowing E15 to be used in light-duty 55
conventional vehicles, model years 2007
and later.56 EPA extended the waiver in
January 2011 to include light-duty
conventional vehicles, model years 2001
and later.57
However, EPA placed two significant
conditions on its waiver. First, the fuel
must meet certain fuel quality
standards.58 Second, as part of EPA’s
efforts to limit E15 use to only certain
conventional vehicles, the waiver
requires E15 manufacturers to submit a
plan for preventing misfueling. Their
plan must include ‘‘[r]easonable
measures for ensuring that any retail
fuel pump dispensers that are
dispensing [E15] are clearly labeled for
ensuring that consumers do not
misfuel.’’ 59 In a separate Federal
Register document, EPA proposed the
following E15 label disclosure:
CAUTION !
This fuel contains 15% ethanol maximum
Use only in:
2007 and newer gasoline cars
2007 and newer light-duty trucks
Flex-fuel vehicles
This fuel might damage other vehicles.
Federal law prohibits its use in other
vehicles and engines.60
In light of the comments and EPA’s
waiver decision, the Commission finds
that more time is necessary to address
ethanol labeling.
E. The Infrared Method and E15 Octane
Rating, Certification, and Posting
Although the NPRM did not propose
octane rating methods other than the
54 See Environmental Protection Agency: Partial
Grant and Partial Denial of Clean Air Act Waiver
Application Submitted by Growth Energy to
Increase the Allowable Ethanol Content of Gasoline
to 15 Percent; Decision of the Administrator, 75 FR
68094 (Nov. 4, 2010) (‘‘Waiver Decision’’).
55 ‘‘Light-duty’’ vehicles include passenger cars,
light-duty trucks, and medium-duty passenger
vehicles. See id. at 68095.
56 Id.
57 Environmental Protection Agency, Partial Grant
of Clean Air Act Waiver Application Submitted by
Growth Energy to Increase the Allowable Ethanol
Content of Gasoline to 15 Percent; Decision of the
Administrator, 76 FR 4662 (Jan. 26, 2011).
58 Waiver Decision, 75 FR at 68149–50.
59 Id. at 68150.
60 Environmental Protection Agency, Regulation
to Mitigate the Misfueling of Vehicles and Engines
with Gasoline Containing Greater than Ten Volume
Percent Ethanol and Modifications to the
Reformulated and Conventional Gasoline Programs,
75 FR 68044, 68051 (Nov. 4, 2010).
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
19689
On-Line Method, many commenters,
including State regulators and the
consumer group CAS, supported
allowing the Infrared Method because it
is more accurate than currently
prescribed methods, less expensive,
subject to an ASTM standard, and
enables easy enforcement. In addition,
commenters urged the Commission to
require octane labels for E15 to assist
owners of conventional cars that require
higher-octane fuel (e.g., 93 octane).
However, at this time the Commission
declines to amend the Rule to allow the
Infrared Method or address E15 octane
labeling because the record is
incomplete. Specifically, all parties that
may have relevant information and
views on such amendments have not
had the opportunity to comment.
Accordingly, the Commission will
consider proposing these changes in a
separate notice of proposed rulemaking,
which will afford opportunity to
comment to all interested parties.61
V. Paperwork Reduction Act
The Fuel Rating Rule’s octane rating
and certification requirements
constitute a ‘‘collection of information’’
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3521) (‘‘PRA’’).
Specifically, under the final
amendments, refiners, importers, and
producers of gasoline must determine
the fuel’s octane rating, and then certify
that rating to any transferee.
Furthermore, they must retain, for one
year, records of any delivery tickets,
letters of certification, or tests upon
which they based the automotive fuel
ratings that they certify.62 The covered
parties also must make these records
available for inspection by staff of the
Commission and EPA or by persons
authorized by those agencies.
In its NPRM, the Commission
estimated that the proposed
amendments would impose additional
recordkeeping and disclosure burdens.
However, the Commission based those
estimates on the proposed amendments
related to rating, certifying, and labeling
ethanol fuels. The Commission believes
that the final amendments do not
impose any additional burdens or costs
as they provide an alternate octane
rating method (i.e., the On-Line
Method), but do not require it. The final
amendments would still allow entities
to rate octane as they did under the
unamended Rule. Therefore, the
Commission concludes that there are no
61 A second document is necessary because the
Commission cannot propose further amendments in
a final rule announcement.
62 See the Fuel Rating Rule’s recordkeeping
requirements, 16 CFR 306.7; 306.9; and 306.11.
E:\FR\FM\08APR1.SGM
08APR1
19690
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
incremental hours or cost burden
related to these amendments.
Accordingly, the Commission believes
that the final octane amendments will
not impose any additional
recordkeeping or disclosure burden. If
the Commission issues final
amendments regarding ethanol rating,
certification, and labeling, it will reexamine the NPRM’s burden estimates
of those amendments.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5
U.S.C. 601–612, requires an agency to
provide a Final Regulatory Flexibility
Analysis with the final rule unless the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.63
In the NPRM, the Commission certified
that the proposed amendments would
have no effect.
The FTC reaffirms its belief that the
final amendments will not have a
significant economic impact on a
substantial number of small entities. As
discussed in Section V, above, the
amendments allowing alternative octane
measurements do not impose any new
costs on covered entities because those
amendments provide those entities with
the option of using the octane rating
method currently required by the Rule.
Although the NPRM provided an initial
analysis of the amendments’ impact on
small entities, that analysis examined
only the ethanol amendments, which
provided new requirements.
This document serves as notice to the
Small Business Administration of the
agency’s certification of no effect. If the
Commission issues final amendments
regarding ethanol rating, certification,
and labeling, it will assess the economic
impact of the amendments on small
entities.
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
List of Subjects in 16 CFR Part 306
Fuel ratings, Incorporation by
reference, Trade practices.
For the reasons discussed in the
preamble, the Federal Trade
Commission amends title 16, Chapter I,
Subchapter C, of the Code of Federal
Regulations, part 306, as follows:
PART 306—AUTOMOTIVE FUEL
RATINGS, CERTIFICATION AND
POSTING
1. Revise the authority citation for part
306 to read as follows:
■
Authority: 15 U.S.C. 2801 et seq.; 42 U.S.C.
17021.
■
■
2. Amend § 306.0 by:
a. Revising paragraph (b);
63 See
5 U.S.C. 603–605.
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
b. Adding a note to paragraph (i); and
c. Revising paragraphs (j) and (l).
The revisions and addition read as
follows:
■
■
§ 306.0
Definitions.
*
*
*
*
*
(b) Research octane number and
motor octane number. (1) These terms
have the meanings given such terms in
the specifications of ASTM
International (‘‘ASTM’’) entitled
‘‘Standard Specification for Automotive
Spark-Ignition Engine Fuel (published
November 2010)’’ designated D4814–10b
and, with respect to any grade or type
of gasoline, are determined in
accordance with test methods set forth
in either:
(i) ASTM D2699–09, ’’Standard Test
Method for Research Octane Number of
Spark-Ignition Engine Fuel (published
November 2009)’’ and ASTM D2700–09,
‘‘Standard Test Method for Motor
Octane Number of Spark-Ignition
Engine Fuel (published November
2009)’’; or
(ii) ASTM D2885–10, ‘‘Standard Test
Method for Determination of Octane
Number of Spark-Ignition Engine Fuels
by On-Line Direct Comparison
Technique (published March 2010).’’
(2) The incorporations by reference of
ASTM D4814–10b, ASTM D2699–09,
ASTM D2700–09, and ASTM D2885–10
in paragraph (b)(1) of this Section, and
in § 306.5(a), were approved by the
Director of the Federal Register in
accordance with 5 U.S.C. 552(a) and 1
CFR part 51. Copies of ASTM D4814–
10b, ASTM D2699–09, ASTM D2700–
09, and ASTM D2885–10, may be
obtained from ASTM International, 100
Barr Harbor Drive, West Conshohocken,
PA 19428, or may be inspected at the
Federal Trade Commission, Public
Reference Room, Room 130, 600
Pennsylvania Avenue, NW.,
Washington, DC, or at the National
Archives and Records Administration
(‘‘NARA’’). For information on the
availability of this material at NARA,
call 202–741–6030, or go to: https://
www.archives.gov/federal-register/cfr/
ibr-locations.html.
*
*
*
*
*
(i) * * *
Note to paragraph (i): Provided, however,
that biodiesel blends and biomass-based
diesel blends that contain less than or equal
to 5 percent biodiesel by volume and less
than or equal to 5 percent biomass-based
diesel by volume, and that meet ASTM
standard D975–09b ‘‘Standard Specification
for Diesel Fuel Oils (published August
2009),’’ are not automotive fuels covered by
the requirements of this Part. The
incorporation of ASTM D975–09b by
reference was approved by the Director of the
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Federal Register in accordance with 5 U.S.C.
552(a) and 1 CFR part 51. Copies of ASTM
D975–09b may be obtained from ASTM
International, 100 Barr Harbor Drive, West
Conshohocken, PA 19428, or may be
inspected at the Federal Trade Commission,
Public Reference Room, Room 130, 600
Pennsylvania Avenue, NW., Washington, DC,
or at NARA. For information on the
availability of this material at NARA, call
202–741–6030, or go to: https://
www.archives.gov/federal-register/cfr/ibrlocations.html.
(j) Automotive fuel rating means—
(1) For gasoline, the octane rating.
(2) For an alternative liquid
automotive fuel other than biodiesel,
biomass-based diesel, biodiesel blends,
or biomass-based diesel blends, the
commonly used name of the fuel with
a disclosure of the amount, expressed as
the minimum percentage by volume, of
the principal component of the fuel. A
disclosure of other components,
expressed as the minimum percentage
by volume, may be included, if desired.
(3) For biomass-based diesel,
biodiesel, biomass-based diesel blends
with more than 5 percent biomass-based
diesel, and biodiesel blends with more
than 5 percent biodiesel, a disclosure of
the biomass-based diesel or biodiesel
component, expressed as the percentage
by volume.
*
*
*
*
*
(l) Biodiesel means the monoalkyl
esters of long chain fatty acids derived
from plant or animal matter that meet:
The registration requirements for fuels
and fuel additives under 40 CFR part 79;
and the requirements of ASTM standard
D6751–10 ‘‘Standard Specification for
Biodiesel Fuel Blend Stock (B100) for
Middle Distillate Fuels (published
October 2010).’’ The incorporation of
ASTM D6751–10 by reference was
approved by the Director of the Federal
Register in accordance with 5 U.S.C.
552(a) and 1 CFR part 51. Copies of
ASTM D6751B10 may be obtained from
ASTM International, 100 Barr Harbor
Drive, West Conshohocken, PA 19428,
or may be inspected at the Federal
Trade Commission, Public Reference
Room, Room 130, 600 Pennsylvania
Avenue, NW., Washington, DC, or at
NARA. For information on the
availability of this material at NARA,
call 202–741–6030, or go to: https://
www.archives.gov/federal_register/cfr/
ibr_locations.html.
*
*
*
*
*
■ 3. Revise § 306.5(a) to read as follows:
§ 306.5
Automotive fuel rating.
*
*
*
*
*
(a) To determine the automotive fuel
rating of gasoline, add the research
octane number and the motor octane
E:\FR\FM\08APR1.SGM
08APR1
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
number and divide by two, as explained
by ASTM D4814–10b, ‘‘Standard
Specifications for Automotive SparkIgnition Engine Fuel,’’ (incorporated by
reference, see § 306.0(b)(2)). To
determine the research octane and
motor octane numbers you may either:
(1) Use ASTM standard test method
ASTM D2699–09, ‘‘Standard Test
Method for Research Octane Number of
Spark-Ignition Engine Fuel’’
(incorporated by reference, see
§ 306.0(b)(2)), to determine the research
octane number, and ASTM standard test
method ASTM D2700–09, ‘‘Standard
Test Method for Motor Octane Number
of Spark-Ignition Engine Fuel’’
(incorporated by reference, see
§ 306.0(b)(2)), to determine the motor
octane number; or
(2) Use the test method set forth in
ASTM D2885–10, ‘‘Standard Test
Method for Determination of Octane
Number of Spark-Ignition Engine Fuels
by On-Line Direct Comparison
Technique’’ (incorporated by reference,
see § 306.0(b)(2)).
*
*
*
*
*
■ 4. Revise § 306.6(b) to read as follows:
§ 306.6
Certification.
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
*
*
*
*
*
(b) Give the person a letter or other
written statement. This letter must
include the date, your name, the other
person’s name, and the automotive fuel
rating of any automotive fuel you will
transfer to that person from the date of
the letter onwards. Octane rating
numbers may be rounded to a whole or
half number equal to or less than the
number determined by you. This letter
of certification will be good until you
transfer automotive fuel with a lower
automotive fuel rating, except that a
letter certifying the fuel rating of
biomass-based diesel, biodiesel, a
biomass-based diesel blend, or a
biodiesel blend will be good only until
you transfer those fuels with a different
automotive fuel rating, whether the
rating is higher or lower. When this
happens, you must certify the
automotive fuel rating of the new
automotive fuel either with a delivery
ticket or by sending a new letter of
certification.
*
*
*
*
*
■ 5. Amend § 306.12 by revising
paragraphs (a)(1) through (a)(5) and (b)
to read as follows:
§ 306.12
Labels.
*
*
*
*
*
(a) Layout—(1) For gasoline labels.
The label is 3 inches (7.62 cm) wide ×
21⁄2 inches (6.35 cm) long. The
illustrations appearing at the end of this
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
rule are prototype labels that
demonstrate the proper layout.
‘‘Helvetica Black’’ or equivalent type is
used throughout except for the octane
rating number on octane labels, which
is in Franklin gothic type. All type is
centered. Spacing of the label is 1⁄4 inch
(.64 cm) between the top border and the
first line of text, 1⁄8 inch (.32 cm)
between the first and second line of text,
1⁄4 inch (.64 cm) between the octane
rating and the line of text above it. All
text and numerals are centered within
the interior borders.
(2) For alternative liquid automotive
fuel labels (one principal component),
other than biodiesel, biomass-based
diesel, biodiesel blends, or biomassbased diesel blends. The label is 3
inches (7.62 cm) wide × 21⁄2 inches (6.35
cm) long. ‘‘Helvetica Black’’ or
equivalent type is used throughout. All
type is centered. The band at the top of
the label contains the name of the fuel.
This band should measure 1 inch (2.54
cm) deep. Spacing of the fuel name is
1⁄4 inch (.64 cm) from the top of the label
and 3⁄16 inch (.48 cm) from the bottom
of the black band, centered horizontally
within the black band. The first line of
type beneath the black band is 1⁄8 inch
(.32 cm) from the bottom of the black
band. All type below the black band is
centered horizontally, with 1⁄8 inch (.32
cm) between each line. The bottom line
of type is 3⁄16 inch (.48 cm) from the
bottom of the label. All type should fall
no closer than 3⁄16 inch (.48 cm) from
the side edges of the label. If you wish
to change the dimensions of this one
principal component label to
accommodate a fuel descriptor that is
longer than shown in the sample labels,
you must petition the Federal Trade
Commission. You can do this by writing
to the Secretary of the Federal Trade
Commission, Washington, DC 20580.
You must state the size and contents of
the label that you wish to use, and the
reasons that you want to use it.
(3) For alternative liquid automotive
fuel labels (two components). The label
is 3 inches (7.62 cm) wide × 21⁄2 inches
(6.35 cm) long. ‘‘Helvetica Black’’ or
equivalent type is used throughout. All
type is centered. The band at the top of
the label contains the name of the fuel.
This band should measure 1 inch (2.54
cm) deep. Spacing of the fuel name is
1⁄4 inch (.64 cm) from the top of the label
and 3⁄16 inch (.48 cm) from the bottom
of the black band, centered horizontally
within the black band. The first line of
type beneath the black band is 3⁄16 inch
(.48 cm) from the bottom of the black
band. All type below the black band is
centered horizontally, with 1⁄8 inch (.32
cm) between each line. The bottom line
of type is 1⁄4 inch (.64 cm) from the
PO 00000
Frm 00009
Fmt 4700
Sfmt 4700
19691
bottom of the label. All type should fall
no closer than 3⁄16 inch (.48 cm) from
the side edges of the label. If you wish
to change the dimensions of this two
component label to accommodate
additional fuel components, you must
petition the Federal Trade Commission.
You can do this by writing to the
Secretary of the Federal Trade
Commission, Washington, DC 20580.
You must state the size and contents of
the label that you wish to use, and the
reasons that you want to use it.
(4) For biodiesel blends containing
more than 5 percent and no greater than
20 percent biodiesel by volume. (i) The
label is 3 inches (7.62 cm) wide × 21⁄2
inches (6.35 cm) long. ‘‘Helvetica Black’’
or equivalent type is used throughout.
All type is centered. The band at the top
of the label contains either:
(A) The capital letter ‘‘B’’ followed
immediately by the numerical value
representing the volume percentage of
biodiesel in the fuel (e.g., ‘‘B20’’) and
then by the term ‘‘Biodiesel Blend’’; or
(B) The term ‘‘Biodiesel Blend.’’
(ii) The band should measure 1 inch
(2.54 cm) deep. Spacing of the text in
the band is 1⁄4 inch (.64 cm) from the top
of the label and 3⁄16 inch (.48 cm) from
the bottom of the black band, centered
horizontally within the black band.
Directly underneath the black band, the
label shall read ‘‘contains biomass-based
diesel or biodiesel in quantities between
5 percent and 20 percent.’’ The script
underneath the black band must be
centered horizontally, with 1⁄8 inch (.32
cm) between each line. The bottom line
of type is 1⁄4 inch (.64 cm) from the
bottom of the label. All type should fall
no closer than 3⁄16 inch (.48 cm) from
the side edges of the label.
(5) For biomass-based diesel blends
containing more than 5 percent and no
greater than 20 percent biomass-based
diesel by volume. (i) The label is 3
inches (7.62 cm) wide × 21⁄2 inches (6.35
cm) long. ‘‘Helvetica Black’’ or
equivalent type is used throughout. All
type is centered. The band at the top of
the label contains either:
(A) The numerical value representing
the volume percentage of biomass-based
diesel in the fuel followed immediately
by the percentage symbol (e.g., ‘‘20%’’)
and then by the term ‘‘Biomass-Based
Diesel Blend’’; or
(B) The term ‘‘Biomass-Based Diesel
Blend.’’
(ii) The band should measure 1 inch
(2.54 cm) deep. Spacing of the text in
the band is 1⁄4 inch (.64 cm) from the top
of the label and 3/16 inch (.48 cm) from
the bottom of the black band, centered
horizontally within the black band.
Directly underneath the black band, the
label shall read ‘‘contains biomass-based
E:\FR\FM\08APR1.SGM
08APR1
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
19692
Federal Register / Vol. 76, No. 68 / Friday, April 8, 2011 / Rules and Regulations
diesel or biodiesel in quantities between
5 percent and 20 percent.’’ The script
underneath the black band must be
centered horizontally, with 1⁄8 inch (.32
cm) between each line. The bottom line
of type is 1⁄4 inch (.64 cm) from the
bottom of the label. All type should fall
no closer than 3/16 inch (.48 cm) from
the side edges of the label.
*
*
*
*
*
(b) Type size and setting—(1) For
gasoline labels. The Helvetica series or
equivalent type is used for all numbers
and letters with the exception of the
octane rating number. Helvetica is
available in a variety of phototype
setting systems, by linotype, and in a
variety of computer desk-top and
phototype setting systems. Its name may
vary, but the type must conform in style
and thickness to the sample provided
here. The line ‘‘Minimum Octane
Rating’’ is set in 12 point Helvetica Bold,
all capitals, with letterspace set at 121⁄2
points. The line ‘‘(R+M)/2 METHOD’’ is
set in 10 point Helvetica Bold, all
capitals, with letterspace set at 101⁄2
points. The octane number is set in 96
point Franklin gothic condensed with 1⁄8
inch (.32 cm) space between the
numbers.
(2) For alternative liquid automotive
fuel labels (one principal component).
Except as provided above, labels should
conform to the following specifications.
All type should be set in upper case (all
caps) ‘‘Helvetica Black’’ or equivalent
type throughout. Helvetica Black is
available in a variety of computer desktop and phototype setting systems. Its
name may vary, but the type must
conform in style and thickness to the
sample provided here. The spacing
between letters and words should be set
as ‘‘normal.’’ The type for the fuel name
is 50 point (1⁄2 inch (1.27 cm) cap
height) ‘‘Helvetica Black,’’ knocked out
of a 1 inch (2.54 cm) deep band. The
type for the words ‘‘MINIMUM’’ and the
principal component is 24 point (1⁄4
inch (.64 cm) cap height). The type for
percentage is 36 point (3⁄8 inch (.96 cm)
cap height).
(3) For alternative liquid automotive
fuel labels (two components). All type
should be set in upper case (all caps)
‘‘Helvetica Black’’ or equivalent type
throughout. Helvetica Black is available
in a variety of computer desk-top and
phototype setting systems. Its name may
vary, but the type must conform in style
and thickness to the sample provided
here. The spacing between letters and
words should be set as ‘‘normal.’’ The
type for the fuel name is 50 point (1⁄2
inch (1.27 cm) cap height) ‘‘Helvetica
Black,’’ knocked out of a 1 inch (2.54
VerDate Mar<15>2010
14:58 Apr 07, 2011
Jkt 223001
cm) deep band. All other type is 24
point (1⁄4 inch (.64 cm) cap height).
*
*
*
*
*
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011–8097 Filed 4–7–11; 8:45 am]
BILLING CODE 6750–01–P
SOCIAL SECURITY ADMINISTRATION
20 CFR Parts 404 and 416
[Docket No. SSA–2006–0114]
RIN 0960–AD78
Revised Medical Criteria for Evaluating
Endocrine Disorders
Social Security Administration.
Final Rules.
AGENCY:
ACTION:
We are revising the criteria in
the Listing of Impairments (the listings)
that we use to evaluate claims under
titles II and XVI of the Social Security
Act (Act) involving endocrine disorders
in adults and children. The revisions
reflect our adjudicative experience,
advances in medical knowledge,
information from medical experts, and
comments we received from the public
in response to an advance notice of
proposed rulemaking (ANPRM), a notice
of proposed rulemaking (NPRM), and at
an outreach policy conference.
DATES: These rules are effective June 7,
2011.
FOR FURTHER INFORMATION CONTACT: Judy
Hicks, Social Insurance Specialist,
Office of Medical Listings Improvement,
Social Security Administration, 6401
Security Boulevard, Baltimore,
Maryland 21235–6401, (410) 965–1020.
For information on eligibility or filing
for benefits, call our national toll-free
number, 1–800–772–1213, or TTY 1–
800–325–0778, or visit our Internet Web
site, Social Security Online, at https://
www.socialsecurity.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
Background
We are making final the rules for
evaluating endocrine disorders that we
proposed in an NPRM we published in
the Federal Register on December 14,
2009 (74 FR 66069). The preamble to the
NPRM discussed the changes from the
current rules and our reasons for
proposing those changes. To the extent
that we are adopting the proposed rules
as published, we are not repeating that
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
information here. Interested readers may
refer to the preamble to the NPRM.1
What are the listings and how do we
use them?
Listings describe medical conditions
that are so severe that we presume any
person who has a medical condition(s)
that satisfies the criteria of a listing is
unable to perform any gainful activity
and, therefore, is disabled. The inability
to work must also have lasted or be
expected to last for at least 12
continuous months or be expected to
result in death; we call this provision
‘‘the duration requirement.’’ 2 Thus, the
listings are special rules that provide us
with a mechanism to identify claims
that should clearly be allowed. We use
listings only to allow claims. We do not
deny any claim solely because a
person’s medical condition(s) does not
satisfy a listing.
Why are we revising the listings for
endocrine disorders?
We are revising the listings for
endocrine disorders because medical
science has made significant advances
in detecting endocrine disorders at
earlier stages and newer treatments have
resulted in better management of these
conditions since we last published final
rules making comprehensive revisions
to the endocrine listings in 1985.
Consequently, most endocrine disorders
do not reach listing-level severity
because they do not become sufficiently
severe or do not remain at a sufficient
level of severity long enough to meet
our 12-month duration requirement.
Therefore, we have determined that,
with the exception of children under
age 6 who have diabetes mellitus (DM)
and require daily insulin, we should no
longer have listings in sections 9.00 and
109.00 based on endocrine disorders
alone.
When will we use these final rules?
We will use these final rules
beginning on their effective date. We
will continue to use the current listings
until the date these final rules become
effective. We will apply the final rules
to new applications filed on or after the
effective date of the final rules and to
claims that are pending on and after the
effective date.3
1 The NPRM is available at https://
www.regulations.gov/search/Regs/
home.html#documentDetail?R=0900006480a6a145.
2 Sections 216(i), 223(d), and 1614(a)(3) of the
Act. See also §§ 404.1509, 404.1520, 416.909, and
416.920 of our regulations.
3 This means that we will use these final rules on
and after their effective date in any case in which
we make a determination or decision. We expect
that Federal courts will review our final decisions
using the rules that were in effect at the time we
E:\FR\FM\08APR1.SGM
08APR1
]]>Agencies
[Federal Register Volume 76, Number 68 (Friday, April 8, 2011)]
[Rules and Regulations]
[Pages 19684-19692]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-8097]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
16 CFR Part 306
Automotive Fuel Ratings Certification and Posting
AGENCY: Federal Trade Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
[[Page 19685]]
SUMMARY: The Commission issues final amendments to its Rule for
Automotive Fuel Ratings, Certification and Posting (``Fuel Rating
Rule'' or ``Rule'') by allowing an alternative octane rating method and
making other miscellaneous revisions. The Commission declines to issue
final ethanol labeling amendments at this time.
DATES: The amendments published in this document will become effective
May 31, 2011. The incorporation by reference of certain publications
listed in the rule is approved by the Director of the Federal Register
as of May 31, 2011.
FOR FURTHER INFORMATION CONTACT: Matthew Wilshire, (202) 326-2976,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue, NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION
I. Introduction
In 2009, the Commission solicited comments on its Fuel Rating Rule
as part of a systematic review of its rules and guides.\1\ In response
to those comments, the Commission published a Notice of Proposed
Rulemaking (``NPRM'') \2\ on March 16, 2010, proposing: (1) An
alternative octane rating method; (2) new rating, certification, and
labeling provisions for blends of gasoline with more than 10 percent
ethanol (``ethanol fuels''); \3\ and (3) miscellaneous minor
amendments. In addition, the Commission declined to revise the Rule's
provisions regarding fuels containing biodiesel and biomass-based
diesel (collectively, ``biodiesel fuels'').\4\
---------------------------------------------------------------------------
\1\ Federal Trade Commission: Automotive Fuel Ratings,
Certification and Posting: Request for Public Comments, 74 FR 9054
(Mar. 2, 2009) (``RPC'').
\2\ Federal Trade Commission: Automotive Fuel Ratings,
Certification and Posting: Notice of Proposed Rulemaking, 75 FR
12470 (Mar. 16, 2010) (``NPRM'').
\3\ The Rule already provides requirements for ethanol fuels
with at least 70 percent concentration, E85. That fuel generally
contains 85 percent ethanol mixed with 15 percent gasoline. 16 CFR
306.0(i)(2)(ii).
\4\ Biodiesel fuels include pure biodiesel and biomass-based
diesel, as well as blends of those fuels with conventional diesel.
Biodiesel is a diesel fuel produced by transforming animal fat or
vegetable oil into automotive fuel. Biodiesel serves as a diesel
substitute and is usually blended with diesel for sale at retail
pumps. Biomass-based diesel is a larger category of diesel fuel
substitutes produced from nonpetroleum renewable resources and that
meet the registration requirements for fuels and fuel additives
established by the Environmental Protection Agency. Biodiesel is a
subset of biomass-based diesel. For further background on biodiesel
fuels, see the Commission's announcement of amendments expanding the
Rule to cover those fuels. Federal Trade Commission: Automotive Fuel
Ratings, Certification and Posting: Final Rule on Biodiesel
Labeling, 73 FR 40154 (Jul. 11, 2008) (``Biodiesel Fuel
Rulemaking'').
---------------------------------------------------------------------------
Commenters supported the proposed octane rating method, suggested
allowing an additional octane rating method, objected to several
aspects of the proposed ethanol labeling requirements, argued for
revision of the Rule's biodiesel fuel provisions, and recommended
further miscellaneous changes. Below, the Commission responds to those
comments and announces final amendments that allow an alternative
octane rating method.
The final amendments do not address ethanol fuel labeling. Instead,
the Commission will address this issue at a later date. As discussed
below, commenters criticized the proposed labels, supporting different
or additional disclosures to prevent misfueling. Moreover, after the
comment period closed, the Environmental Protection Agency (``EPA'')
issued a waiver pursuant to the Clean Air Act that allows use of
ethanol-gasoline blends of up to 15 percent ethanol concentration
(``E15'') in certain conventional vehicles, subject to EPA approval. In
light of the comments and EPA's waiver decision, the Commission finds
that more time is necessary to address this issue. The Commission,
however, will not delay final rulemaking regarding the proposed
alternate octane rating method and biodiesel fuels because announcing
final decisions regarding both is in the public interest.
This document first provides background on the Fuel Rating Rule,
then discusses the comments submitted. Finally, it responds to those
comments and describes the final amendments in detail.
II. Background
A. The Fuel Rating Rule
The Commission first promulgated the Fuel Rating Rule, 16 CFR part
306 (then titled the ``Octane Certification and Posting Rule''), in
1979 in accordance with the Petroleum Marketing Practices Act
(``PMPA''), 15 U.S.C. 2801 et seq.\5\ The Rule originally applied only
to gasoline. In 1993, pursuant to amendments to PMPA, the Commission
expanded the Rule to cover liquid alternative fuels.\6\ Currently, the
Rule defines ``alternative liquid automotive fuels,'' as including, but
not limited to, certain listed fuels. That list does not include
ethanol fuels below 70 percent concentration (``Mid-Level Ethanol
blends'').\7\ In 2008, the Commission again amended the Rule to
incorporate specific labeling requirements for biodiesel fuels above 5
percent concentration, as required by Section 205 of the Energy
Independence and Security Act of 2007 (``EISA''), 42 U.S.C. 17021.\8\
---------------------------------------------------------------------------
\5\ Federal Trade Commission: Automotive Fuel Ratings,
Certification and Posting: Final Rule, 44 FR 19160 (Mar. 30, 1979).
\6\ Federal Trade Commission: Automotive Fuel Ratings,
Certification and Posting: Final Rule, 58 FR 41356 (Aug. 3, 1993).
\7\ 16 CFR 306.0(i)(2).
\8\ Biodiesel Fuel Rulemaking, 73 FR 40154.
---------------------------------------------------------------------------
The Fuel Rating Rule designates methods for rating and certifying
fuels, as well as posting the ratings at the point of sale. The Rule
also requires refiners, importers, and producers of any liquid
automotive fuel to determine that fuel's ``automotive fuel rating''
before transferring it to a distributor or retailer. For gasoline,
covered entities must determine the octane rating by deriving research
octane and motor octane numbers using ``ASTM International'' (``ASTM'')
\9\ standards D2699 and D2700, respectively, and then averaging the
results. For alternative fuels, except biodiesel fuels, the rating is
the minimum percentage of the principal component of the fuel and a
brief description of the fuel.\10\ In addition, any covered entity,
including a distributor, that transfers a fuel must certify the fuel's
rating to the transferee either by including it in papers accompanying
the transfer or by letter. Finally, the Rule requires retailers to post
the fuel rating by adhering a label to the retail fuel pump and
provides precise specifications regarding the content, size, color, and
font of the label.
---------------------------------------------------------------------------
\9\ ASTM International, formerly known as the American Society
for Testing and Materials, develops international voluntary
consensus standards for various products, including automotive fuel.
See https://www.astm.org.
\10\ The Rule requires rating biodiesel fuels by the percentage
of biodiesel or biomass-based diesel in the fuel.
---------------------------------------------------------------------------
B. Procedural History
The Commission received 12 comments in response to its March 2,
2009 Federal Register Notice.\11\ The comments generally supported the
Rule but proposed several amendments, focusing on three key issues.
First, commenters requested that the Commission allow gasoline octane
rating using a method specified in ASTM D2885, ``Standard Test Method
for Determination of Octane Number of Spark-Ignition Engine Fuels by
On-Line Direct Comparison Technique'' (the ``On-
[[Page 19686]]
Line Method'').\12\ Second, several commenters supported new labeling
requirements for Mid-Level Ethanol blends to prevent consumers from
using those blends in their conventional cars, which would put their
warranties at risk and could harm various vehicle components.\13\
Finally, commenters urged the Commission to change its biodiesel fuel
provisions in two ways: (1) By requiring producers to rate biodiesel
blends at or below 5 percent concentration; and (2) by exempting
biomass-based diesel from the Rule.\14\
---------------------------------------------------------------------------
\11\ The comments in response to the March 2, 2009 Federal
Register Notice are located at: https://www.ftc.gov/os/comments/fuelratingreview/index.shtm.
\12\ NPRM, 75 FR at 12472.
\13\ Id. at 12471-72.
\14\ Id. at 12472-73. Commenters also proposed several minor
miscellaneous changes to the Rule.
---------------------------------------------------------------------------
On March 16, 2010, the Commission published an NPRM responding to
the commenters' suggestions and proposing four substantive Rule
amendments. First, to allow Mid-Level Ethanol blend labeling above 10
percent and below 50 percent concentration, the proposed amendments
would have required rating ethanol fuels by the amount of ethanol in
the blend, rather than by the principal component of the fuel. Second,
the proposed amendments would have required retailers to post labels
disclosing a Mid-Level Ethanol blend's ethanol content by displaying a
broad range of ``10 to 70 percent ethanol,'' a narrower range, or a
specific percentage. Third, the proposed amendments would have required
all ethanol fuel labels, including those for E85,\15\ to contain the
additional disclosures ``may harm some vehicles'' and ``check owner's
manual.'' In the NPRM, the Commission explained that ``[t]his
additional information should assist consumers in identifying the
proper fuel for their vehicles.'' \16\ Fourth, the proposed amendments
would have allowed the On-Line Method. After reviewing ASTM D2885, the
Commission agreed that the method yielded the same results as the
method the Rule currently allows.\17\ Finally, the Commission proposed
minor miscellaneous amendments, which included updating certain ASTM
standard references, modifying the Rule language for clarification, and
addressing some typographical errors.\18\
---------------------------------------------------------------------------
\15\ The Rule currently provides specific requirements for E85,
a mix of gasoline and ethanol. Although that fuel generally contains
85 percent ethanol, retailers may reduce the ethanol component to as
little as 70 percent to allow proper starting and performance in
colder climates.
\16\ NPRM, 75 FR at 12474.
\17\ Id. at 12474-75.
\18\ Id. at 12475.
---------------------------------------------------------------------------
The Commission did not propose revising the Rule's biodiesel fuel
provisions. The Commission explained that rating blends at or below 5
percent would unnecessarily burden producers. Furthermore, the
Commission noted, retailers that blended biodiesel could either test
the resulting blend, or blend in a manner that would ensure that the
fuel fell within one of the Rule's three biodiesel labeling categories,
and, therefore, did not need rating information to comply with the
Rule.\19\ With respect to biomass-based diesel, the Commission
explained that, under EISA, it had no discretion to exempt any biomass-
based diesel from the Rule's labeling requirements.\20\
---------------------------------------------------------------------------
\19\ Id. The three labeling categories are: (1) From above 5 to
no more than 20 percent; (2) above 20 percent to less than 100
percent; and (3) 100 percent. 16 CFR 12(a)(4)-(9).
\20\ NPRM, 75 FR at 12475.
---------------------------------------------------------------------------
III. Comments in Response to the NPRM
The Commission received 62 comments in response to the NPRM.\21\ As
in the prior comment period, commenters focused on octane rating
methods, ethanol labeling, and biodiesel fuel rating. They also
proposed several minor miscellaneous changes to the Rule.
---------------------------------------------------------------------------
\21\ The comments are located at: https://www.ftc.gov/os/comments/fuelratingnprm.
---------------------------------------------------------------------------
A. Octane Rating
The American Petroleum Institute (``API''), ConocoPhillips,
Marathon Petroleum Company, LLC (``Marathon''), and the National
Petrochemical & Refiners Association (``NPRA'') addressed the
Commission's proposal to allow octane rating through the On-Line
Method. All supported the proposal, though API and Marathon noted that
the ASTM standards referenced in the proposed amendments are now
outdated.\22\ To prevent this problem in the future, Marathon and NPRA
suggested adopting ASTM D2885 without reference to a year.\23\
---------------------------------------------------------------------------
\22\ ConocoPhillips comment at 1; API comment at 7; Marathon
comment at 2; NPRA comment at 2.
\23\ Marathon comment at 2; NPRA comment at 2. The Tennessee
Department of Agriculture generally supported adopting ASTM
standards without reference to a year of publication. Tennessee
Department of Agriculture comment at 3.
---------------------------------------------------------------------------
Tesoro, a manufacturer and marketer of petroleum products,
suggested expanding the Rule's provisions to allow octane rating
through infrared analyzers (``Infrared Method''), which Tesoro asserted
``provide more reliable results.'' \24\ Tesoro argued that the Infrared
Method provides more precise and accurate results, an ability to sample
gasoline more efficiently, and reduced costs to industry.\25\
Specifically, Tesoro reported:
---------------------------------------------------------------------------
\24\ Tesoro comment at 1. Tesoro also submitted additional
documents to Commission staff during the comment period, which are
included in the record.
\25\ Id. at 1-2.
A recent interlaboratory study was conducted to demonstrate the
accuracy and precision of infrared analyzers for octane. Based on
the results of that study involving six laboratories, near infrared
analyzers showed significantly better precision over ASTM D2699 and
D2700 octane [methods].\26\
---------------------------------------------------------------------------
\26\ Id. at 2.
Tesoro further reported that, due in part to greater reliability,
``[o]ver 25 states use infrared analyzers for screening fuel samples
[to test octane levels] in the field as well as in the laboratory.''
\27\
---------------------------------------------------------------------------
\27\ Id. at 4.
Tesoro also specifically addressed the enforcement issues
---------------------------------------------------------------------------
surrounding the Infrared Method:
We also believe that in case of a discrepancy between the posted
octane rating and the octane of the sample, ASTM D2699 and ASTM
D2700 should continue to be used as the referee method. This
approach, which is consistent with the enforcement approach used by
State regulatory agencies, should not impose any additional
enforcement burden on the Commission--since ASTM D2699 and ASTM
D2700 would continue to be the referee method.\28\
---------------------------------------------------------------------------
\28\ Id. at 6.
As a mechanism for allowing the Infrared Method through an enforceable
Rule provision, Tesoro recommended amending the Rule to allow the
method only insofar as the method conforms to ASTM D6122, ``Standard
Practice for Validation of the Performance of Multivariate Infrared
Spectrophotometers,'' and is specifically correlated with the ASTM
D2699 and D2700 methods.\29\ In addition, Tesoro submitted specific
language to effect its proposed change.\30\
---------------------------------------------------------------------------
\29\ Id. at 7.
\30\ Id. at 8. Petroleum industry members and representatives
ConocoPhillips, Flint Hills Resources LP, Marathon, Suncor Energy
USA, NPRA, and Valero Energy Corporation (``Valero'') also supported
the Infrared Method. ConocoPhillips comment at 2; Flint Hills
Resources comment; Marathon comment at 2; Suncor Energy USA comment;
NPRA comment at 3; Valero comment at 1.
---------------------------------------------------------------------------
Several State regulators supported Tesoro's proposal. For example,
the Washington State Department of Agriculture reported that it ``has
used portable infrared octane analyzers successfully in the field to
test octane levels on gasoline motor fuels for over 10 years'' and that
it has ``found portable infrared analyzers to be an accurate and low
cost tool in determining octane level compliance.'' \31\ Additionally,
the
[[Page 19687]]
National Conference on Weights and Measures (``NCWM'') provided a
survey showing that 17 of 24 regulatory agencies surveyed use the
Infrared Method to determine if fuel dispensed at a pump has the same
octane rating as posted on the label.\32\
---------------------------------------------------------------------------
\31\ Washington State Department of Agriculture comment; see
also Massachusetts Division of Standards comment (supporting the
Infrared Method); Nevada Department of Agriculture comment (same);
North Carolina Department of Agriculture and Consumer Services
comment (same).
\32\ NCWM comment at 3-4.
---------------------------------------------------------------------------
Significantly, the Center for Auto Safety (``CAS''), a consumer
group, also supported Tesoro's position. CAS explained that allowing
the method would ease enforcement and, therefore, benefit consumers:
Many States now use infrared analyzers to determine octane
because they are cheaper, more accurate and permit greater number[s]
of dispensing pump inspections per day than using octane engines. *
* * Approving infrared analyzers calibrated to measure octane would
allow greater levels of enforcement and increased quality control by
refiners at lower cost.\33\
---------------------------------------------------------------------------
\33\ CAS comment at 2.
---------------------------------------------------------------------------
B. Biodiesel Fuels
Six commenters addressed the Rule's biodiesel fuel provisions.
Generally, these commenters disagreed with the Commission's decision
not to propose amendments to those provisions and urged
reconsideration. The commenters supported rating biodiesel blends
containing 5 percent or less biodiesel, exempting ``renewable diesel''
that qualifies as biomass-based diesel, and allowing a less precise
content disclosure for biodiesel blends above 20 percent concentration.
The Petroleum Marketers Association of America (``PMAA'') explained
why it believed rating blends less than 5 percent concentration is
necessary:
Currently, distributors and retailers are receiving biodiesel
blends from suppliers in which they have no idea of the actual
biodiesel content. Therefore, it is impossible for these downstream
parties to accurately notify consumers [of] the biodiesel content of
the fuel they are offering for sale other than providing a possible
blend range. * * * 97% of all retail gasoline stations are owned by
petroleum marketers who are classified as small businesses under the
U.S. Small Business Administration's size standards. Refiners,
producers and distributors above the terminal rack are large
businesses. * * * It would be entirely appropriate to shift this
compliance burden to the large businesses who are not only more able
to bear the burden but also in a better position to track and notify
the amount of biodiesel they are adding to product upstream of the
terminal rack.\34\
---------------------------------------------------------------------------
\34\ PMAA comment at 2.
Fuel producer ConocoPhillips similarly favored such rating, asserting
---------------------------------------------------------------------------
that it would alert all fuel recipients of the biodiesel content.\35\
\35\ ConocoPhillips comment at 2. In addition, API favored
requiring entities to rate biodiesel blends at 5 percent or less
concentration, but suggested rating the fuel as simply containing
biodiesel rather than an exact percentage rating. API comment at 7.
---------------------------------------------------------------------------
Although the comments that addressed the issue favored expanding
the Rule's biodiesel requirements, they favored abolishing the Rule's
requirements to rate, certify, and post renewable diesel, a type of
biomass-based diesel.\36\ The commenters asserted that disclosing the
presence of renewable diesel is unnecessary because, as Marathon
stated, it ``can not be distinguished from'' petroleum diesel and
``[t]here is no ASTM method to identify the volume of renewable diesel
in a [blend].'' \37\ In addition, NPRA asserted that because pipelines
do not segregate biomass-based diesel blends from conventional diesel,
rating requirements ``would be disruptive to the distribution
industry.'' \38\ Therefore, the commenters concluded, retailers cannot
rate a biomass-based diesel blend, and rating is unnecessary.
---------------------------------------------------------------------------
\36\ Renewable diesel is a diesel fuel derived from organic
material. The fuel's properties satisfy ASTM D975, the standard for
conventional diesel fuel. See NPRM, 75 FR at 40155.
\37\ Marathon comment at 3; see also Valero comment at 1; API
comment at 9.
\38\ NPRA comment at 2.
---------------------------------------------------------------------------
In addition, API asserted that it is unclear whether the relevant
statute defines renewable diesel as biomass-based diesel. Specifically,
it argued that whether a particular batch of renewable diesel met
EISA's definition of biomass-based diesel depended on how a
manufacturer processed it. Thus, according to API, the Rule would
require different labeling for two different batches of the exact same
fuel, an outcome API described as ``absurd.'' \39\
---------------------------------------------------------------------------
\39\ API comment at 9-10.
---------------------------------------------------------------------------
Finally, API suggested loosening the Rule's requirements for over
20 percent concentration biodiesel blends. Specifically, it favored
amending the Rule, which currently requires disclosure of the precise
volume percentage, to allow disclosure of a percentage range similar to
that proposed in the NPRM for Mid-Level Ethanol blends.\40\ API argued
that a range disclosure would ``effectively alert[ ] the consumer to
the presence of biodiesel'' in the fuel.\41\
---------------------------------------------------------------------------
\40\ Id. at 8.
\41\ Id. In addition to the issues discussed in this section,
Marathon opined that labeling requirements should not apply to
biodiesel blends at or below 5 percent concentration. Marathon
comment at 3. The Rule currently exempts such blends from labeling,
and, as discussed below, the final amendments do not alter that
exemption.
---------------------------------------------------------------------------
C. Ethanol Fuel Labeling
A majority of the commenters submitted views and evidence regarding
the proposed ethanol fuel labeling disclosures. Generally, the
commenters objected to the proposed labels' disclosures. Several
commenters, including an association of ethanol producers, argued that
the labels unfairly conveyed a negative message about the fuel's
quality, with two of those commenters asserting that the proposed
disclosures were beyond the Commission's authority under PMPA. In
contrast, other commenters argued that the risks from ethanol
misfueling necessitated a stronger and more precise disclosure
regarding the amount of ethanol in the fuel and the suitability of such
fuel for various vehicles or engines.
As discussed below, the Commission is not announcing ethanol
labeling amendments at this time. Therefore, this document will not
analyze the ethanol labeling comments in depth.
D. Miscellaneous Issues
Several comments raised miscellaneous issues. First, as discussed
above, Tesoro and other commenters noted out-of-date ASTM references in
the Rule. Second, API argued that the Rule should not require a
Helvetica Black font but rather allow any legible block type font
because Microsoft Word does not offer Helvetica Black.\42\ Third, API
also noted its opposition to any provision that would impose liability
for misfueling.\43\ Finally, the Alliance of Automobile Manufacturers
suggested revising the biodiesel fuel definitions to make clear that
the Rule covers blends of biodiesel and biomass-based diesel and
suggested a series of edits (e.g., changing ``a percentage'' to ``the
percentage'' in a Rule definition) to ensure consistency.
---------------------------------------------------------------------------
\42\ API comment at 6.
\43\ Id. at 7.
---------------------------------------------------------------------------
IV. Final Rule Amendments
After considering the record, the Commission now issues final Rule
amendments. Specifically, the Commission will issue amendments allowing
octane rating through the On-Line Method and adopting several minor,
miscellaneous amendments. In addition, the Commission retains the
Rule's biodiesel fuel provisions in their current form.
At this time, the Commission declines to issue ethanol fuel
amendments because further consideration of the comments and EPA's
recent waiver decision is necessary. The Commission also declines to
issue amendments
[[Page 19688]]
allowing the Infrared Method or addressing ethanol octane rating
because the record is not complete regarding those issues.\44\
---------------------------------------------------------------------------
\44\ As explained below, however, the Commission will consider
publishing a separate notice of proposed rulemaking addressing the
Infrared Method and ethanol octane rating.
---------------------------------------------------------------------------
A. On-Line Method for Octane Rating
The NPRM proposed allowing octane rating through the On-Line Method
as specified in ASTM D2885. The Rule currently requires use of octane
rating methods specified in ASTM D2699 and D2700. PMPA, however,
authorizes the Commission to consider other methods. The On-Line Method
detailed in ASTM D2885 produces the exact same octane rating as the
D2699 and D2700 methods.\45\ Moreover, four commenters supported the
proposed change, and none objected. Accordingly, the final amendments
adopt the NPRM's amendment allowing octane rating through the On-Line
Method.
---------------------------------------------------------------------------
\45\ See ASTM D2885, Standard Test Method for Determination of
Octane Number of Spark-Ignition Engine Fuels by On-Line Direct
Comparison Technique, available for inspection at the FTC's public
reference room. Notably, D2885 provides that the On-Line Method will
produce ``octane numbers'' as that term is defined in D2699 and
D2700. See id. at Sec. 5.3.
---------------------------------------------------------------------------
B. Miscellaneous Amendments
Commenters raised several miscellaneous issues. First, some
commenters noted that the current Rule and the proposed amendments
contain outdated ASTM references. Accordingly, the final amendments
update all ASTM references, including those proposed in the NPRM. The
Commission does not, however, amend the Rule to adopt these standards
without reference to a publication year, as suggested by some
commenters. Doing so would incorporate those standards as they change
over time. If a referenced ASTM standard changed in an unanticipated
way, it could change the Rule's meaning without public notice and
comment, or consideration by the Commission. Second, one commenter
opposed any provision imposing liability for misfueling. Nothing in the
Rule or the final amendments imposes such liability. Third, API noted
that Helvetica Black font is not universally available. The final
amendments, therefore, allow Helvetica Black or equivalent type.
Finally, AAM suggested several technical amendments, including
revisions to the biodiesel fuel definitions to make clear that the Rule
covers blends of biodiesel and biomass-based diesel. Although the
Commission does not intend to exclude such blends, the definitions of
those fuels are prescribed by EISA and, therefore, the Commission
declines to alter them.\46\ The amendments incorporate AAM's other
technical suggestions, except those regarding the proposed ethanol
amendments.
---------------------------------------------------------------------------
\46\ 42 U.S.C. 17021(c)(4) (defining biodiesel and biomass-based
diesel blends as blended with ``petroleum-based diesel fuel'').
---------------------------------------------------------------------------
In addition to the commenters' suggested changes, the Commission
amends the Rule's labeling specifications to address an inconsistency.
Section 306.12(b)(2) requires all uppercase type for labels for all
alternative fuels. Sections 306.12(a)(4) through (9), however, require
some lowercase type on biodiesel fuel labels. The Commission,
therefore, amends Sec. 306.12(b)(2) to make clear that its all-caps
requirement does not apply to labeling requirements for biodiesel
fuels.\47\
---------------------------------------------------------------------------
\47\ The Commission also amends Sec. Sec. 306.0(b), (i), (j),
and (l); 306.5; and 306.12(b) to correct typographical errors, and
Sec. 306.0(i) for clarification by eliminating the subsection
number (3) and replacing that with ``provided, however.''
---------------------------------------------------------------------------
C. Biodiesel
Several commenters urged the Commission to make three changes to
the Rule's biodiesel fuel provisions. First, they reiterated an earlier
request to require rating and certification of biodiesel blends at or
below 5 percent concentration. Second, they asked the Commission to
reconsider excluding biomass-based diesel (or at least a certain type
of biomass-based diesel) from the Rule. Finally, API supported allowing
a biodiesel content disclosure using a broad range.\48\ As explained
below, the Commission declines to make any of these changes.
---------------------------------------------------------------------------
\48\ API's comment is unclear regarding how broad a range the
Commission should permit. Currently, the Rule requires disclosure of
an exact percentage.
---------------------------------------------------------------------------
1. Rating and Certifying Biodiesel Blends of 5 Percent or Less
Concentration
In the NPRM, the Commission declined to propose amendments
subjecting biodiesel blends at or below 5 percent concentration to the
Rule's rating and certification requirements. The Commission explained
that doing so would unnecessarily burden producers and distributors by
requiring them to rate fuel that does not require a label under EISA
\49\ and that retailers blending biodiesel did not need such rating and
certifications to comply with the Rule. The comments did not challenge
these conclusions. However, they did note that the Rule currently
places the rating burden on blending retailers, which are generally
small businesses, and argued that the Commission should shift the
burden to producers and refiners that presumably could absorb the
burden more easily.
---------------------------------------------------------------------------
\49\ See 42 U.S.C. 17021(b)(1) (biomass-based diesels and
biodiesel blends of no more than 5 percent concentration ``shall not
require any additional labels'').
---------------------------------------------------------------------------
Although the Rule may burden small businesses, adopting the
proposed change would increase the overall rating burden on industry.
Currently, the Rule does not require rating or labeling of blends at or
below 5 percent concentration. Under the commenters' proposed change,
however, all manufacturers would have to rate these blends regardless
of whether retailers would eventually use them to create a fuel subject
to the Rule. The commenters have not provided evidence showing that the
burden on retailers who blend a fraction of this fuel would be greater
than the burden they propose putting on manufacturers to rate all of
it. Therefore, the Commission declines to require such rating.
2. Exempting Biomass-Based or Renewable Diesel From the Rule
In the NPRM, the Commission explained that it cannot exempt
biomass-based diesel blends or provide for different labels because
Section 205 of EISA specifically requires labels for all biomass-based
diesel blends above 5 percent concentration.\50\ Thus, the Commission
has no discretion to exempt biomass-based diesel from labeling
requirements, regardless of the properties of the fuel or its purported
suitability for all diesel engines.
---------------------------------------------------------------------------
\50\ Section 205 provides that ``[e]ach retail diesel fuel pump
shall be labeled in a manner that informs consumers of the percent
of biomass-based diesel or biodiesel that is contained in the
biomass-based diesel blend or biodiesel blend that is offered for
sale,'' and that all blends over 5 percent ``shall be labeled''
either ``contains biomass-based diesel or biodiesel in quantities
between 5 percent and 20 percent'' or ``contains more than 20
percent biomass-based diesel or biodiesel.'' 42 U.S.C. 17021(b); see
also Biodiesel Fuel Rulemaking, 75 FR at 12475.
---------------------------------------------------------------------------
In response, API argued that, depending on how they are processed,
certain renewable diesel blends would meet the statutory definition of
``biomass-based diesel'' and other renewable diesel blends with the
exact same properties would not. API characterized this result as
``absurd.'' However, API's interpretation of the law appears to rest on
a misreading of EISA. Specifically, API relies on a definition of
``biomass-based diesel'' from Section 201 of EISA, but a different
section of EISA defines ``biomass-based diesel'' for labeling purposes.
Specifically, 42 U.S.C. 17021, which is titled ``Biomass-
[[Page 19689]]
based Diesel and Biodiesel Labeling,'' defines biomass-based diesel as
any ``diesel fuel substitute produced from nonpetroleum renewable
resources that meets the registration requirements for fuels and fuel
additives established by the Environmental Protection Agency,'' without
limitation, including limitations regarding co-processing.\51\ Thus,
all renewable diesel blends discussed in the record are ``biomass-based
diesel blends'' under EISA, and there is no inconsistency in treatment.
Therefore, the Commission declines to make the requested change.
---------------------------------------------------------------------------
\51\ 42 U.S.C. 17021(c)(2) (incorporating the definition in 42
U.S.C. 13220(f)).
---------------------------------------------------------------------------
3. Allowing a Range Disclosure for Biodiesel Blends Above 20 Percent
Concentration
The Commission also declines to adopt API's suggestion to rescind
the Rule's requirement to disclose the precise percentage of biodiesel
for fuels over 20 percent concentration. As the Commission explained
when it first announced the Rule's biodiesel provisions, the
performance of biodiesel blends containing more than 20 percent
biodiesel is uncertain and can vary significantly.\52\ The Commission
further noted that this requirement provides information of interest to
consumers who favor a fuel blend with a high percentage of non-
petroleum components.\53\ Therefore, the Commission retains the
specific percentage designation requirement for biodiesel blends of
more than 20 percent.
---------------------------------------------------------------------------
\52\ Biodiesel Fuel Rulemaking, 73 FR at 40158.
\53\ Id.
---------------------------------------------------------------------------
D. Ethanol
In the NPRM, the Commission proposed new rating and certification
requirements for Mid-Level Ethanol blends and new labeling requirements
for all ethanol fuels. Specifically, the proposed amendments would have
required rating and certifying Mid-Level Ethanol blends by their
ethanol content and labeling all ethanol fuels with the statements:
MAY HARM SOME VEHICLES
CHECK OWNER'S MANUAL
The proposed amendments also would have required Mid-Level Ethanol
blend labels to contain a content disclosure that the fuel contained
between 10 to 70 percent ethanol (i.e., ``10%-70% ETHANOL''), a
narrower range, or the precise amount of ethanol in the blend.
As noted above, commenters generally criticized the proposed
disclosures as unfairly denigrating ethanol or as insufficiently
specific to prevent misfueling. In addition, after the FTC's Fuel
Rating Rule comment period closed, EPA issued a Clean Air Act waiver
allowing E15, which the proposed amendments defined as a Mid-Level
Ethanol blend, in certain conventional vehicles.\54\ Specifically, in
November 2010, EPA granted a waiver allowing E15 to be used in light-
duty \55\ conventional vehicles, model years 2007 and later.\56\ EPA
extended the waiver in January 2011 to include light-duty conventional
vehicles, model years 2001 and later.\57\
---------------------------------------------------------------------------
\54\ See Environmental Protection Agency: Partial Grant and
Partial Denial of Clean Air Act Waiver Application Submitted by
Growth Energy to Increase the Allowable Ethanol Content of Gasoline
to 15 Percent; Decision of the Administrator, 75 FR 68094 (Nov. 4,
2010) (``Waiver Decision'').
\55\ ``Light-duty'' vehicles include passenger cars, light-duty
trucks, and medium-duty passenger vehicles. See id. at 68095.
\56\ Id.
\57\ Environmental Protection Agency, Partial Grant of Clean Air
Act Waiver Application Submitted by Growth Energy to Increase the
Allowable Ethanol Content of Gasoline to 15 Percent; Decision of the
Administrator, 76 FR 4662 (Jan. 26, 2011).
---------------------------------------------------------------------------
However, EPA placed two significant conditions on its waiver.
First, the fuel must meet certain fuel quality standards.\58\ Second,
as part of EPA's efforts to limit E15 use to only certain conventional
vehicles, the waiver requires E15 manufacturers to submit a plan for
preventing misfueling. Their plan must include ``[r]easonable measures
for ensuring that any retail fuel pump dispensers that are dispensing
[E15] are clearly labeled for ensuring that consumers do not misfuel.''
\59\ In a separate Federal Register document, EPA proposed the
following E15 label disclosure:
---------------------------------------------------------------------------
\58\ Waiver Decision, 75 FR at 68149-50.
\59\ Id. at 68150.
CAUTION !
This fuel contains 15% ethanol maximum
Use only in:
2007 and newer gasoline cars
2007 and newer light-duty trucks
Flex-fuel vehicles
This fuel might damage other vehicles.
Federal law prohibits its use in other vehicles and engines.60
In light of the comments and EPA's waiver decision, the Commission
finds that more time is necessary to address ethanol labeling.
---------------------------------------------------------------------------
\60\ Environmental Protection Agency, Regulation to Mitigate the
Misfueling of Vehicles and Engines with Gasoline Containing Greater
than Ten Volume Percent Ethanol and Modifications to the
Reformulated and Conventional Gasoline Programs, 75 FR 68044, 68051
(Nov. 4, 2010).
---------------------------------------------------------------------------
E. The Infrared Method and E15 Octane Rating, Certification, and
Posting
Although the NPRM did not propose octane rating methods other than
the On-Line Method, many commenters, including State regulators and the
consumer group CAS, supported allowing the Infrared Method because it
is more accurate than currently prescribed methods, less expensive,
subject to an ASTM standard, and enables easy enforcement. In addition,
commenters urged the Commission to require octane labels for E15 to
assist owners of conventional cars that require higher-octane fuel
(e.g., 93 octane). However, at this time the Commission declines to
amend the Rule to allow the Infrared Method or address E15 octane
labeling because the record is incomplete. Specifically, all parties
that may have relevant information and views on such amendments have
not had the opportunity to comment. Accordingly, the Commission will
consider proposing these changes in a separate notice of proposed
rulemaking, which will afford opportunity to comment to all interested
parties.\61\
---------------------------------------------------------------------------
\61\ A second document is necessary because the Commission
cannot propose further amendments in a final rule announcement.
---------------------------------------------------------------------------
V. Paperwork Reduction Act
The Fuel Rating Rule's octane rating and certification requirements
constitute a ``collection of information'' under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3521) (``PRA''). Specifically,
under the final amendments, refiners, importers, and producers of
gasoline must determine the fuel's octane rating, and then certify that
rating to any transferee. Furthermore, they must retain, for one year,
records of any delivery tickets, letters of certification, or tests
upon which they based the automotive fuel ratings that they
certify.\62\ The covered parties also must make these records available
for inspection by staff of the Commission and EPA or by persons
authorized by those agencies.
---------------------------------------------------------------------------
\62\ See the Fuel Rating Rule's recordkeeping requirements, 16
CFR 306.7; 306.9; and 306.11.
---------------------------------------------------------------------------
In its NPRM, the Commission estimated that the proposed amendments
would impose additional recordkeeping and disclosure burdens. However,
the Commission based those estimates on the proposed amendments related
to rating, certifying, and labeling ethanol fuels. The Commission
believes that the final amendments do not impose any additional burdens
or costs as they provide an alternate octane rating method (i.e., the
On-Line Method), but do not require it. The final amendments would
still allow entities to rate octane as they did under the unamended
Rule. Therefore, the Commission concludes that there are no
[[Page 19690]]
incremental hours or cost burden related to these amendments.
Accordingly, the Commission believes that the final octane
amendments will not impose any additional recordkeeping or disclosure
burden. If the Commission issues final amendments regarding ethanol
rating, certification, and labeling, it will re-examine the NPRM's
burden estimates of those amendments.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601-612, requires an
agency to provide a Final Regulatory Flexibility Analysis with the
final rule unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small
entities.\63\ In the NPRM, the Commission certified that the proposed
amendments would have no effect.
---------------------------------------------------------------------------
\63\ See 5 U.S.C. 603-605.
---------------------------------------------------------------------------
The FTC reaffirms its belief that the final amendments will not
have a significant economic impact on a substantial number of small
entities. As discussed in Section V, above, the amendments allowing
alternative octane measurements do not impose any new costs on covered
entities because those amendments provide those entities with the
option of using the octane rating method currently required by the
Rule. Although the NPRM provided an initial analysis of the amendments'
impact on small entities, that analysis examined only the ethanol
amendments, which provided new requirements.
This document serves as notice to the Small Business Administration
of the agency's certification of no effect. If the Commission issues
final amendments regarding ethanol rating, certification, and labeling,
it will assess the economic impact of the amendments on small entities.
List of Subjects in 16 CFR Part 306
Fuel ratings, Incorporation by reference, Trade practices.
For the reasons discussed in the preamble, the Federal Trade
Commission amends title 16, Chapter I, Subchapter C, of the Code of
Federal Regulations, part 306, as follows:
PART 306--AUTOMOTIVE FUEL RATINGS, CERTIFICATION AND POSTING
0
1. Revise the authority citation for part 306 to read as follows:
Authority: 15 U.S.C. 2801 et seq.; 42 U.S.C. 17021.
0
2. Amend Sec. 306.0 by:
0
a. Revising paragraph (b);
0
b. Adding a note to paragraph (i); and
0
c. Revising paragraphs (j) and (l).
The revisions and addition read as follows:
Sec. 306.0 Definitions.
* * * * *
(b) Research octane number and motor octane number. (1) These terms
have the meanings given such terms in the specifications of ASTM
International (``ASTM'') entitled ``Standard Specification for
Automotive Spark-Ignition Engine Fuel (published November 2010)''
designated D4814-10b and, with respect to any grade or type of
gasoline, are determined in accordance with test methods set forth in
either:
(i) ASTM D2699-09, ''Standard Test Method for Research Octane
Number of Spark-Ignition Engine Fuel (published November 2009)'' and
ASTM D2700-09, ``Standard Test Method for Motor Octane Number of Spark-
Ignition Engine Fuel (published November 2009)''; or
(ii) ASTM D2885-10, ``Standard Test Method for Determination of
Octane Number of Spark-Ignition Engine Fuels by On-Line Direct
Comparison Technique (published March 2010).''
(2) The incorporations by reference of ASTM D4814-10b, ASTM D2699-
09, ASTM D2700-09, and ASTM D2885-10 in paragraph (b)(1) of this
Section, and in Sec. 306.5(a), were approved by the Director of the
Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.
Copies of ASTM D4814-10b, ASTM D2699-09, ASTM D2700-09, and ASTM D2885-
10, may be obtained from ASTM International, 100 Barr Harbor Drive,
West Conshohocken, PA 19428, or may be inspected at the Federal Trade
Commission, Public Reference Room, Room 130, 600 Pennsylvania Avenue,
NW., Washington, DC, or at the National Archives and Records
Administration (``NARA''). For information on the availability of this
material at NARA, call 202-741-6030, or go to: https://www.archives.gov/federal_register/cfr/ibr_locations.html">https://www.archives.gov/federal_register/cfr/ibr_locations.html.
* * * * *
(i) * * *
Note to paragraph (i): Provided, however, that biodiesel blends
and biomass-based diesel blends that contain less than or equal to 5
percent biodiesel by volume and less than or equal to 5 percent
biomass-based diesel by volume, and that meet ASTM standard D975-09b
``Standard Specification for Diesel Fuel Oils (published August
2009),'' are not automotive fuels covered by the requirements of
this Part. The incorporation of ASTM D975-09b by reference was
approved by the Director of the Federal Register in accordance with
5 U.S.C. 552(a) and 1 CFR part 51. Copies of ASTM D975-09b may be
obtained from ASTM International, 100 Barr Harbor Drive, West
Conshohocken, PA 19428, or may be inspected at the Federal Trade
Commission, Public Reference Room, Room 130, 600 Pennsylvania
Avenue, NW., Washington, DC, or at NARA. For information on the
availability of this material at NARA, call 202-741-6030, or go to:
https://www.archives.gov/federal_register/cfr/ibr_locations.html">https://www.archives.gov/federal_register/cfr/ibr_locations.html.
(j) Automotive fuel rating means-- (1) For gasoline, the octane
rating.
(2) For an alternative liquid automotive fuel other than biodiesel,
biomass-based diesel, biodiesel blends, or biomass-based diesel blends,
the commonly used name of the fuel with a disclosure of the amount,
expressed as the minimum percentage by volume, of the principal
component of the fuel. A disclosure of other components, expressed as
the minimum percentage by volume, may be included, if desired.
(3) For biomass-based diesel, biodiesel, biomass-based diesel
blends with more than 5 percent biomass-based diesel, and biodiesel
blends with more than 5 percent biodiesel, a disclosure of the biomass-
based diesel or biodiesel component, expressed as the percentage by
volume.
* * * * *
(l) Biodiesel means the monoalkyl esters of long chain fatty acids
derived from plant or animal matter that meet: The registration
requirements for fuels and fuel additives under 40 CFR part 79; and the
requirements of ASTM standard D6751-10 ``Standard Specification for
Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels
(published October 2010).'' The incorporation of ASTM D6751-10 by
reference was approved by the Director of the Federal Register in
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of ASTM
D6751B10 may be obtained from ASTM International, 100 Barr Harbor
Drive, West Conshohocken, PA 19428, or may be inspected at the Federal
Trade Commission, Public Reference Room, Room 130, 600 Pennsylvania
Avenue, NW., Washington, DC, or at NARA. For information on the
availability of this material at NARA, call 202-741-6030, or go to:
https://www.archives.gov/federal_register/cfr/ibr_locations.html.
* * * * *
0
3. Revise Sec. 306.5(a) to read as follows:
Sec. 306.5 Automotive fuel rating.
* * * * *
(a) To determine the automotive fuel rating of gasoline, add the
research octane number and the motor octane
[[Page 19691]]
number and divide by two, as explained by ASTM D4814-10b, ``Standard
Specifications for Automotive Spark-Ignition Engine Fuel,''
(incorporated by reference, see Sec. 306.0(b)(2)). To determine the
research octane and motor octane numbers you may either:
(1) Use ASTM standard test method ASTM D2699-09, ``Standard Test
Method for Research Octane Number of Spark-Ignition Engine Fuel''
(incorporated by reference, see Sec. 306.0(b)(2)), to determine the
research octane number, and ASTM standard test method ASTM D2700-09,
``Standard Test Method for Motor Octane Number of Spark-Ignition Engine
Fuel'' (incorporated by reference, see Sec. 306.0(b)(2)), to determine
the motor octane number; or
(2) Use the test method set forth in ASTM D2885-10, ``Standard Test
Method for Determination of Octane Number of Spark-Ignition Engine
Fuels by On-Line Direct Comparison Technique'' (incorporated by
reference, see Sec. 306.0(b)(2)).
* * * * *
0
4. Revise Sec. 306.6(b) to read as follows:
Sec. 306.6 Certification.
* * * * *
(b) Give the person a letter or other written statement. This
letter must include the date, your name, the other person's name, and
the automotive fuel rating of any automotive fuel you will transfer to
that person from the date of the letter onwards. Octane rating numbers
may be rounded to a whole or half number equal to or less than the
number determined by you. This letter of certification will be good
until you transfer automotive fuel with a lower automotive fuel rating,
except that a letter certifying the fuel rating of biomass-based
diesel, biodiesel, a biomass-based diesel blend, or a biodiesel blend
will be good only until you transfer those fuels with a different
automotive fuel rating, whether the rating is higher or lower. When
this happens, you must certify the automotive fuel rating of the new
automotive fuel either with a delivery ticket or by sending a new
letter of certification.
* * * * *
0
5. Amend Sec. 306.12 by revising paragraphs (a)(1) through (a)(5) and
(b) to read as follows:
Sec. 306.12 Labels.
* * * * *
(a) Layout--(1) For gasoline labels. The label is 3 inches (7.62
cm) wide x 2\1/2\ inches (6.35 cm) long. The illustrations appearing at
the end of this rule are prototype labels that demonstrate the proper
layout. ``Helvetica Black'' or equivalent type is used throughout
except for the octane rating number on octane labels, which is in
Franklin gothic type. All type is centered. Spacing of the label is \1/
4\ inch (.64 cm) between the top border and the first line of text, \1/
8\ inch (.32 cm) between the first and second line of text, \1/4\ inch
(.64 cm) between the octane rating and the line of text above it. All
text and numerals are centered within the interior borders.
(2) For alternative liquid automotive fuel labels (one principal
component), other than biodiesel, biomass-based diesel, biodiesel
blends, or biomass-based diesel blends. The label is 3 inches (7.62 cm)
wide x 2\1/2\ inches (6.35 cm) long. ``Helvetica Black'' or equivalent
type is used throughout. All type is centered. The band at the top of
the label contains the name of the fuel. This band should measure 1
inch (2.54 cm) deep. Spacing of the fuel name is \1/4\ inch (.64 cm)
from the top of the label and \3/16\ inch (.48 cm) from the bottom of
the black band, centered horizontally within the black band. The first
line of type beneath the black band is \1/8\ inch (.32 cm) from the
bottom of the black band. All type below the black band is centered
horizontally, with \1/8\ inch (.32 cm) between each line. The bottom
line of type is \3/16\ inch (.48 cm) from the bottom of the label. All
type should fall no closer than \3/16\ inch (.48 cm) from the side
edges of the label. If you wish to change the dimensions of this one
principal component label to accommodate a fuel descriptor that is
longer than shown in the sample labels, you must petition the Federal
Trade Commission. You can do this by writing to the Secretary of the
Federal Trade Commission, Washington, DC 20580. You must state the size
and contents of the label that you wish to use, and the reasons that
you want to use it.
(3) For alternative liquid automotive fuel labels (two components).
The label is 3 inches (7.62 cm) wide x 2\1/2\ inches (6.35 cm) long.
``Helvetica Black'' or equivalent type is used throughout. All type is
centered. The band at the top of the label contains the name of the
fuel. This band should measure 1 inch (2.54 cm) deep. Spacing of the
fuel name is \1/4\ inch (.64 cm) from the top of the label and \3/16\
inch (.48 cm) from the bottom of the black band, centered horizontally
within the black band. The first line of type beneath the black band is
\3/16\ inch (.48 cm) from the bottom of the black band. All type below
the black band is centered horizontally, with \1/8\ inch (.32 cm)
between each line. The bottom line of type is \1/4\ inch (.64 cm) from
the bottom of the label. All type should fall no closer than \3/16\
inch (.48 cm) from the side edges of the label. If you wish to change
the dimensions of this two component label to accommodate additional
fuel components, you must petition the Federal Trade Commission. You
can do this by writing to the Secretary of the Federal Trade
Commission, Washington, DC 20580. You must state the size and contents
of the label that you wish to use, and the reasons that you want to use
it.
(4) For biodiesel blends containing more than 5 percent and no
greater than 20 percent biodiesel by volume. (i) The label is 3 inches
(7.62 cm) wide x 2\1/2\ inches (6.35 cm) long. ``Helvetica Black'' or
equivalent type is used throughout. All type is centered. The band at
the top of the label contains either:
(A) The capital letter ``B'' followed immediately by the numerical
value representing the volume percentage of biodiesel in the fuel
(e.g., ``B20'') and then by the term ``Biodiesel Blend''; or
(B) The term ``Biodiesel Blend.''
(ii) The band should measure 1 inch (2.54 cm) deep. Spacing of the
text in the band is \1/4\ inch (.64 cm) from the top of the label and
\3/16\ inch (.48 cm) from the bottom of the black band, centered
horizontally within the black band. Directly underneath the black band,
the label shall read ``contains biomass-based diesel or biodiesel in
quantities between 5 percent and 20 percent.'' The script underneath
the black band must be centered horizontally, with \1/8\ inch (.32 cm)
between each line. The bottom line of type is \1/4\ inch (.64 cm) from
the bottom of the label. All type should fall no closer than \3/16\
inch (.48 cm) from the side edges of the label.
(5) For biomass-based diesel blends containing more than 5 percent
and no greater than 20 percent biomass-based diesel by volume. (i) The
label is 3 inches (7.62 cm) wide x 2\1/2\ inches (6.35 cm) long.
``Helvetica Black'' or equivalent type is used throughout. All type is
centered. The band at the top of the label contains either:
(A) The numerical value representing the volume percentage of
biomass-based diesel in the fuel followed immediately by the percentage
symbol (e.g., ``20%'') and then by the term ``Biomass-Based Diesel
Blend''; or
(B) The term ``Biomass-Based Diesel Blend.''
(ii) The band should measure 1 inch (2.54 cm) deep. Spacing of the
text in the band is \1/4\ inch (.64 cm) from the top of the label and
3/16 inch (.48 cm) from the bottom of the black band, centered
horizontally within the black band. Directly underneath the black band,
the label shall read ``contains biomass-based
[[Page 19692]]
diesel or biodiesel in quantities between 5 percent and 20 percent.''
The script underneath the black band must be centered horizontally,
with \1/8\ inch (.32 cm) between each line. The bottom line of type is
\1/4\ inch (.64 cm) from the bottom of the label. All type should fall
no closer than 3/16 inch (.48 cm) from the side edges of the label.
* * * * *
(b) Type size and setting--(1) For gasoline labels. The Helvetica
series or equivalent type is used for all numbers and letters with the
exception of the octane rating number. Helvetica is available in a
variety of phototype setting systems, by linotype, and in a variety of
computer desk-top and phototype setting systems. Its name may vary, but
the type must conform in style and thickness to the sample provided
here. The line ``Minimum Octane Rating'' is set in 12 point Helvetica
Bold, all capitals, with letterspace set at 12\1/2\ points. The line
``(R+M)/2 METHOD'' is set in 10 point Helvetica Bold, all capitals,
with letterspace set at 10\1/2\ points. The octane number is set in 96
point Franklin gothic condensed with \1/8\ inch (.32 cm) space between
the numbers.
(2) For alternative liquid automotive fuel labels (one principal
component). Except as provided above, labels should conform to the
following specifications. All type should be set in upper case (all
caps) ``Helvetica Black'' or equivalent type throughout. Helvetica
Black is available in a variety of computer desk-top and phototype
setting systems. Its name may vary, but the type must conform in style
and thickness to the sample provided here. The spacing between letters
and words should be set as ``normal.'' The type for the fuel name is 50
point (\1/2\ inch (1.27 cm) cap height) ``Helvetica Black,'' knocked
out of a 1 inch (2.54 cm) deep band. The type for the words ``MINIMUM''
and the principal component is 24 point (\1/4\ inch (.64 cm) cap
height). The type for percentage is 36 point (\3/8\ inch (.96 cm) cap
height).
(3) For alternative liquid automotive fuel labels (two components).
All type should be set in upper case (all caps) ``Helvetica Black'' or
equivalent type throughout. Helvetica Black is available in a variety
of computer desk-top and phototype setting systems. Its name may vary,
but the type must conform in style and thickness to the sample provided
here. The spacing between letters and words should be set as
``normal.'' The type for the fuel name is 50 point (\1/2\ inch (1.27
cm) cap height) ``Helvetica Black,'' knocked out of a 1 inch (2.54 cm)
deep band. All other type is 24 point (\1/4\ inch (.64 cm) cap height).
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-8097 Filed 4-7-11; 8:45 am]
BILLING CODE 6750-01-P
