Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles, 36423-36428 [2012-14828]
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Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Proposed Rules
30. ECCN 5A002.a controls
‘‘components’’ ‘‘specially designed’’ for
‘‘systems, equipment, application
specific ‘electronic assemblies’, modules
and integrated circuits for ‘information
security’ ’’ if they were also ‘‘specially
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a.2.f.
33. ECCN 6A004.a.1 controls
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* * * capable of dynamically
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34. ECCN 6A005.e.2. controls
‘‘components’’ (optical mirrors,
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35. ECCN 6A203.a controls
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37. ECCN 6A998.b controls
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manufactured from material specified
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‘‘ ‘marine gas turbine engines’ with an
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‘‘incorporat[e] any of the ‘technologies’
controlled by 9E003.a, 9E003.h or
9E003.i’’ and ‘‘whose design or
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in Country Group D:1 or unknown to
the manufacturer.’’
Comments should be submitted to BIS
as described in the ADDRESSES section of
this notice by September 17, 2012.
Dated: June 6, 2012.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2012–14473 Filed 6–15–12; 11:15 am]
BILLING CODE 3510–33–P
FEDERAL TRADE COMMISSION
16 CFR Part 309
Labeling Requirements for Alternative
Fuels and Alternative Fueled Vehicles
Federal Trade Commission
(FTC or Commission).
ACTION: Notice of proposed rulemaking;
request for public comments.
AGENCY:
The Commission seeks public
comment on two amendments to its
‘‘Labeling Requirements for Alternative
Fuels and Alternative Fueled Vehicles’’
(‘‘Alternative Fuels Rule’’ or ‘‘Rule’’).
Specifically, the proposed amendments
consolidate the FTC’s alternative fueled
vehicle (AFV) labels with new fuel
economy labels required by the
Environmental Protection Agency (EPA)
and the National Highway Traffic Safety
Administration (NHTSA) and eliminate
FTC requirements for used AFV labels.
DATES: Written comments must be
received on or before August 17, 2012.
ADDRESSES: Interested parties are
invited to submit written comments
electronically or in paper form by
following the instructions in section V
of the SUPPLEMENTARY INFORMATION
SUMMARY:
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section below. Comments in electronic
form should be submitted using the
following weblink https://
ftcpublic.commentworks.com/ftc/
atlfuelslabelingnprm (and following the
instructions on the web-based form).
Comments filed in paper form should be
mailed or delivered to the following
address: Federal Trade Commission,
Office of the Secretary, Room H–113
(Annex N), 600 Pennsylvania Avenue
NW., Washington, DC 20580, in the
manner detailed in the SUPPLEMENTARY
INFORMATION section below.
FOR FURTHER INFORMATION CONTACT:
Hampton Newsome, (202) 326–2889,
Attorney, Division of Enforcement,
Bureau of Consumer Protection, Federal
Trade Commission, 600 Pennsylvania
Avenue NW., Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Energy Policy Act of 1992
(‘‘EPAct 92’’ or ‘‘Act’’) 1 established
federal programs that encourage the
development of alternative fuels and
alternative fueled vehicles (AFVs).
Section 406(a) of the Act directed the
Commission to establish uniform
labeling requirements for alternative
fuels and AFVs. Under the Act, such
labels must provide ‘‘appropriate
information with respect to costs and
benefits [of alternative fuels and AFVs],
so as to reasonably enable the consumer
to make choices and comparisons.’’ In
addition, the required labels must be
‘‘simple and, where appropriate,
consolidated with other labels providing
information to the consumer.’’ 2
In response to EPAct 92, the
Commission published the Alternative
Fuels Rule in 1995.3 The Rule requires
labels on new and used AFVs that run
on liquid and non-liquid fuels, such as
ethanol and other alcohols including
E85 ethanol-gasoline mixtures, natural
gas, liquefied petroleum gas, hydrogen,
coal-derived liquid fuels, fuels derived
from biological materials (e.g., 100%
biodiesel), and electricity. The labels for
new AFVs disclose the vehicle’s
estimated cruising range (i.e., the travel
distance on a single charge or tank of
fuel), general factors consumers should
consider before buying an AFV, and toll
free telephone numbers and Web sites
for additional information from the
Department of Energy (DOE) and
NHTSA.4 Labels for used AFVs contain
1 Public
Law 102–486, 106 Stat. 2776 (1992).
U.S.C. 13232(a).
3 60 FR 26926 (May 19, 1995).
4 The Rule requires manufacturers to have a
reasonable basis for the vehicle cruising range, and,
for certain AFVs, specifies the test method for
calculating that range. 16 CFR 309.22.
2 42
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only the general buying factors and
DOE/NHTSA contact information.5
The Rule also requires labels on fuel
dispensers for non-liquid alternative
fuels, such as electricity, compressed
natural gas, and hydrogen.6 The labels
for electricity provide the dispensing
system’s kilowatt capacity, voltage, and
other related information. The labels for
other non-liquid fuels disclose the fuel’s
commonly used name and principal
component (expressed as a percentage).7
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II. Regulatory Review
In a June 1, 2011, Advance Notice of
Proposed Rulemaking (ANPR),8 the
Commission initiated its regulatory
review of the Rule to ensure that FTCrequired vehicle labels and EPA fuel
economy labeling requirements are
consistent.9 In doing so, the
Commission sought comment about the
Rule’s costs, benefits, and regulatory
impact. In addition, the Commission
raised three specific issues for comment:
(1) The consolidation of the FTC label
with EPA’s fuel economy label; (2) the
inclusion of new definitions for AFVs
contained in recent legislation; and (3)
the retention of labeling requirements
for used AFVs.
The Commission received nine
comments.10 Seven urged the
Commission to consolidate its AFV
labeling requirements with EPA’s fuel
economy labels (including those for
newly defined AFVs).11 No comments
5 The general factors listed on the current label
include fuel type, operating costs, fuel availability,
performance, convenience, energy security, energy
renewability, and emissions. See 16 CFR part 309,
Appendix A.
6 The Commission’s Fuel Labeling Rule, 16 CFR
Part 306, addresses labeling for liquid alternative
fuels, such as ethanol and liquefied natural gas.
7 The Rule requires fuel importers, producers, and
distributors to have a reasonable basis for the
information disclosed on the label, maintain
records, and provide certifications when
transferring fuel. 16 CFR 309.11–14.
8 76 FR 31513.
9 At the same time, the Commission also
announced postponement of amendments to its
‘‘Guide Concerning Fuel Economy Advertising for
New Automobiles’’ (‘‘Fuel Economy Guide’’) (16
CFR Part 259) pending completion of EPA’s fuel
economy labeling requirements and the
Commission’s review of the Alternative Fuels Rule.
76 FR 31467 (June 1, 2011). Once the Commission
completes the Alternative Fuels Rule review, it will
decide how to proceed with amendments to the
Fuel Economy Guide.
10 The comments are available at https://
www.ftc.gov/os/comments/alternativefuelsanpr/
index.shtm. The comments include the Alliance of
Automobile Manufacturers (Alliance) (# 00008),
Association of Global Automakers (Global
Automakers) (# 00006), Clean Energy Fuels (#
00010), Denney (# 00003), Edison Electric Institute
(EEI) (# 00005), General Motors Company (GM) (#
00012), Gibbs (# 00004), Growth Energy (# 00007),
and National Automobile Dealers Association
(NADA) (# 00011).
11 See the Alliance, Global Automakers, Denney,
EEI, GM, Growth Energy, and NADA.
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opposed consolidation. In addition,
three comments supported elimination
of FTC labels for used AFVs while one
supported their continuation.12 Two
comments also recommended that the
Commission retain existing FTC
requirements for labeling non-liquid
alternative fuels.13
In response, the Commission proposes
to consolidate FTC labels with EPA fuel
economy labels for all AFVs, including
those identified in recent legislation,
and eliminate FTC labeling
requirements for used AFVs. However,
the Commission does not propose
changes to existing alternative fuel
rating requirements. For each of these
issues, the following sections provide
background on alternative fuel
requirements, discuss the comments
received, and explain the proposed
amendments.
A. EPA and NHTSA Fuel Economy
Labels
Background: The Commission
requested comment on whether it
should consolidate its AFV labels with
fuel economy labels recently issued by
EPA to provide a uniform label for
consumers.14 The new EPA labels apply
to both conventional vehicles and AFVs,
including AFVs subject to the FTC’s
labeling requirements.15 The EPA label
differs depending on the type of AFV.
For electric and compressed natural gas
vehicles, the labels disclose information
about fuel economy, greenhouse gases
(and other emissions), cruising (driving)
range, and estimated annual fuel cost.
For ethanol-fueled vehicles, including
flexible fuel vehicles (FFVs) (i.e., dual
fueled vehicles) that operate on a
combination of gasoline and ethanol,
the labels disclose the fuel economy,
fuel cost, and emissions based on
gasoline operation and allow, but do not
require, a driving range for gasoline or
alternative fuel operation. All the EPA
labels reference www.fueleconomy.gov,
which provides comprehensive
consumer information about fuel
economy and alternative fuels. Given
this content, the ANPR requested
comment on whether the EPA label
12 The Alliance, NADA, and GM (supported
elimination); and EEI (supported continuation).
13 NADA and EEI.
14 See 76 FR 39478 (July 6, 2011).
15 See EPA sample label at https://www.epa.gov/
otaq/carlabel/fealllabels.pdf. Although EPA
regulations (40 CFR Part 600) require labeling for
all vehicles covered under the Alternative Fuels
Rule, EPA did not propose a specific label for
several vehicle types not generally available to
individual consumers such as those fueled by
liquefied petroleum gas, coal-derived liquid fuels,
or fuels (other than alcohol) derived from biological
materials. See 76 FR 39478. However, EPA has
authority to require labels for such vehicles.
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accomplishes the EPAct 92’s goal of
providing ‘‘appropriate information
with respect to costs and benefits [of
alternative fuels and AFVs], so as to
reasonably enable the consumer to make
choices and comparisons.’’ 16
The ANPR also sought comment on
whether to allow the use of the EPA
label, in lieu of the FTC label, on three
categories of vehicles (hydrogen fuel
cell, advanced lean burn, and hybrid
motor vehicles) that were added to the
definition of ‘‘alternative fuel vehicle’’
by the National Defense Authorization
Act for Fiscal Year 2008.17 The
Commission noted that, because these
vehicles are already covered under
existing labeling programs, additional
labeling requirements appear
unnecessary.18
Comments: Seven comments
supported consolidating the FTC and
new fuel economy labels explaining that
a single label would reduce consumer
confusion and industry burden.19 No
comments opposed such a change.20
These comments noted that the EPA
fuel economy labels offer as much or
more information than the FTC labels
with one exception. Finally, they noted
that EPA labels cover the three vehicle
types added by recent legislation.
Commenters explained that the FTC
labeling requirements duplicate the new
fuel economy labels mandated by the
EPA and NHTSA, create potential
confusion, and provide little, if any,
benefit for consumers.21 For instance,
the Alliance of Automobile
Manufacturers (Alliance) argued such
duplication creates potential consumer
confusion by presenting the same or
similar information on differently
formatted labels and imposes costs on
manufacturers with no significant
consumer benefit. General Motors (GM)
also explained that the overlapping
16 42
U.S.C. 13232(a).
U.S.C. 13211(3)(B). According to the
legislative history, the purpose of these
amendments is to ‘‘allow additional types of
vehicles to be used to meet minimum’’
requirements for vehicle and fuel use by Federal
agencies (i.e., ‘‘Federal fleet requirements’’). 153
CONG. REC. 147 (2007).
18 76 FR at 31516.
19 See, e.g., the Alliance, EEI, Denney, GM,
Global Automakers, Growth Energy, and NADA.
20 Clean Energy Fuels offered suggestions for new
label content, including ‘‘fuel displacement’’ of
foreign oil, a full life cycle assessment of
greenhouse gas emissions and both fossil-based and
biological-based natural gas values for natural gas
vehicles. However, the comment did not specify
how such information should be derived or whether
consumers would understand such information.
Given the Commission’s proposal to eliminate the
FTC label, such suggestions are best directed to EPA
for consideration in future development of their
fuel economy label.
21 See, e.g., the Alliance, EEI, Denney, GM,
Global Automakers, Growth Energy, and NADA.
17 42
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labels have led to inconsistencies
between the driving range numbers on
FTC and EPA labels.22 The Alliance and
the Association of Global Automakers
(Global Automakers) noted that, over
the past several years, industry members
have urged state and federal agencies to
develop a single national vehicle
label.23 No commenters disagreed with
these views.
Five comments suggested that
elimination of the FTC labels would not
harm consumers because the EPA fuel
economy labels provide more vehiclespecific information than the FTC
label.24 Specifically, Global Automakers
explained the EPA labeling program
provides comprehensive fuel economy
information by requiring labels that
disclose the most important vehicle
information and offers a Web site,
www.fueleconomy.gov, with more
detailed information, including data on
older vehicles.25 According to the
Alliance, the new EPA fuel economy
label, like the current FTC label,
requires driving range information for
most AFVs, including electric vehicles
(EVs), plug-in hybrid electric vehicles
(PHEVs), hydrogen fuel cell vehicles
(FCVs), and compressed natural gas
(CNG-fueled) vehicles. At the same
time, the EPA label provides additional
information not found on the FTC label
including fuel costs, smog ratings, and
greenhouse gas information.26 Two
comments, GM and the Alliance, noted
that, unlike the FTC label for FFVs, the
EPA rules do not require driving range
information but instead provide
manufacturers the option to include the
range for gasoline and alternative fuel
(e.g., E85) operation. The Alliance
recommended that the FTC provide the
same flexibility. No comments
22 See GM. For example, consolidation would
eliminate current inconsistencies between cruising
range values on FTC and EPA electric vehicle
labels. To address electric vehicles introduced
pending completion of this rulemaking, the
Commission issued a policy stating that it will not
enforce current FTC labeling requirements for any
electric vehicle bearing an EPA-mandated fuel
economy label and will encourage vehicle
manufacturers to use the EPA label in lieu of the
FTC label. See FTC enforcement policy on driving
range numbers for electric vehicles at https://
www.ftc.gov/opa/2011/05/afr.shtm.
23 Working toward that goal, EPA has coordinated
with California to incorporate the state’s labeling
information into the national fuel economy label.
See the Alliance and Global Automakers. Global
Automakers urged the Commission to work with
EPA and NHTSA to resolve any deficiencies the
Commission finds with the fuel economy label.
24 Global Automakers, the Alliance, Growth
Energy, NADA, and GM.
25 According to the Alliance, many consumers
conduct Internet research to make basic vehicle
purchasing decisions before ever visiting a
dealership. See also, Global Automakers, Denney,
and NADA.
26 See Growth Energy and NADA.
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identified harm to consumers from
consolidation.
Finally, three comments
recommended that the FTC allow
manufacturers to use the EPA fuel
economy label for vehicle categories
added to the definition of AFV by recent
legislation (i.e., lean burn, hybrid, and
fuel cell vehicles). No comments
opposed this approach. Edison Electric
Institute (EEI) argued that the federal
requirements should be the same for all
types of vehicles to minimize industry
costs and ensure consumers can make
‘‘apples to apples’’ vehicle comparisons.
The Alliance agreed, noting that EPA
labeling rules already cover these
vehicles. GM also explained that FTC
labels for these vehicles would not
provide any significant additional
consumer benefit and could increase the
opportunity for errors.
Discussion: Consistent with the
comments, the Commission proposes to
require manufacturers to use EPA’s fuel
economy label for alternative fuel
vehicles, including the vehicle
categories added by recent legislation,
in lieu of existing FTC requirements.27
The Commission agrees with
commenters that consolidating the FTC
and EPA labels will benefit consumers
and industry by eliminating potential
confusion caused by overlapping or
inconsistent labels, and by reducing the
burden on manufacturers to create and
post two labels.28 Generally, the EPA
labels are likely to be more helpful to
consumers in making choices and
comparisons because they contain more
vehicle-specific information than the
current FTC labels. The fuel economy
labels also link consumers to
www.fueleconomy.gov, which provides
comprehensive comparative information
for conventional vehicles and AFVs.29
27 The proposed amendments add the statutory
definitions for lean burn, hybrid, and fuel cell
vehicles to the Rule.
28 In addition to concerns about electric vehicle
labels discussed above, the EPA and FTC labels
disclose driving range for E85 dual-fueled vehicles
in different ways. The FTC label requires a lower
range number based on city fuel economy and an
upper range number based on highway fuel
economy (e.g., 246–378 on one tank). Conversely,
the EPA label presents a single number (e.g., 300
miles on one tank) based on the vehicle’s combined
city-highway fuel economy. 40 CFR 600.311–
12(j)(1). Although the resulting numbers are similar
and based on the same test procedures, the
differences in presentation have the potential to
confuse consumers.
29 The proposed amendments are consistent with
the EPAct 92, which gives the Commission
discretion to consolidate its requirements ‘‘with
other labels providing information to the
consumer.’’ 42 U.S.C. 13232(a). In addition, the
Energy and Policy Conservation Act, 42 U.S.C.
32908(e)(2), authorizes the FTC to enforce the EPA
automobile label requirements issued pursuant to
49 U.S.C. 32908(b).
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Unlike the FTC labels, the EPA labels
for FFVs allow, but do not require,
driving range disclosures. In support of
making driving range disclosures
optional, EPA has indicated that nearly
all FFV owners (99%) use only regular
gasoline, limiting the practical value of
driving range disclosures.30 EPA’s
conventional gasoline label does not
disclose driving range. Also, the
inclusion of driving range on the FFV
label alters the location of the ‘‘gallons
per 100 miles’’ disclosure.31 Other
factors, however, may support a
mandatory driving range disclosure for
these vehicles. First, the difference
between driving range performance for
alternative fuel and conventional
gasoline operation can be significant.32
Second, the use of alternative fuels may
increase in the future. Therefore, to
ensure the label provides vehicle buyers
with comparative driving range
performance for both alternative fuel
and conventional gasoline, the
Commission proposes to require use of
the EPA FFV label that contains the
vehicle’s alternative fuel and gasoline
driving range. This proposal would
effectively eliminate use of the EPA FFV
label that does not disclose driving
range.
The Commission seeks comment on
all aspects of this proposal. In
particular, comments should indicate
whether driving range information on
FFV labels is necessary given the few
consumers that appear to use alternative
fuel in such vehicles. Comments should
also address whether the elimination of
FFV label that does not disclose driving
range would have any negative impacts
on consumers’ efforts to compare
vehicles. The Commission also seeks
comment on whether there are any
types of AFVs on the market that are not
covered by the EPA label, and, if so,
whether the Commission should retain
its current labeling requirements for
such vehicles.
B. Labels for Used AFVs
Background: In the ANPR, the
Commission sought comment on
whether to change the Rule’s labeling
requirements for used AFVs.33 Under
30 76
FR at 39485.
EPA sample labels at https://www.epa.gov/
otaq/carlabel/fealllabels.pdf.
32 For example, EPA’s sample fuel economy label
FFV’s displays a 390 mile driving range for gasoline
and a 270 mile range for E85 operation. See 76 FR
at 39584 (Figure 5).
33 16 CFR 309.21. The Act contains no specific
requirement for used AFV labels nor does it
specifically exclude used vehicles from its
coverage. See 42 U.S.C. 13211 and 13232(a). In
promulgating the original Rule in 1995, the
Commission determined that used AFV labeling
31 See
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the current Rule, used AFV dealers must
post labels with general tips and
references to government telephone
numbers and Web sites that provide
additional information.34 However,
these labels do not contain vehiclespecific information, such as cruising
range. Because these labels provide
limited information and are likely to
impose increasing burdens on used car
dealers as the AFV market expands, the
Commission asked whether it should
retain the requirement and, if so,
whether to change the label’s content.
Comments: Three comments urged
the Commission to eliminate the FTC
labeling requirement for used vehicles,
while two suggested alternative
approaches to the existing label. The
Alliance, the National Automobile
Dealers Association (NADA), and GM
recommended elimination because the
used vehicle label does not provide
consumers with significant benefit and
places unnecessary burden on used
automobile dealers. NADA also argued
that the rule, which does not apply to
private used vehicle sellers, poses unfair
burdens on dealers who account for
only about half of all used vehicle
transactions. In lieu of the current label
which only provides general tips, these
three comments suggested that
consumers use www.fueleconomy.gov to
locate specific vehicle information.
Although NADA recommended
elimination of the used label altogether,
it also suggested alternatively that the
Commission insert an AFV disclosure
into the FTC’s current used vehicle
Buyers Guide (16 CFR Part 455). NADA
suggested that the FTC used vehicle
Buyers Guide could state: ‘‘For more
information on the fuel economy and
fuel type for this vehicle, consult
www.fueleconomy.gov.’’ 35 In addition,
EEI, the only comment that supported
keeping the used vehicle label, urged
the Commission to simplify the
requirements by only requiring a link to
the www.fueleconomy.gov Web site on
the existing label.
Discussion: The Commission proposes
to eliminate the requirement for a
separate AFV label for used vehicles.
Unlike in 1995, when the Commission
was ‘‘appropriate’’ because Aconsumers would
likely have the same need for information, and
would consider the same factors, whether they were
contemplating a new or used ‘‘FV acquisition.’’ 60
FR at 26941.
34 The Commission’s Used Car Rule (16 CFR Part
455) also requires used car dealers to affix on the
vehicle the FTC’s Buyers Guide, which contains
warranty information about the vehicle. See 16 CFR
part 455.
35 Use of the FTC’s used vehicle Buyers Guide
would be consistent with Congress’ directive to
‘‘consolidate’’ the AFV information with other
labels where appropriate. 42 U.S.C. 13232(a).
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originally issued its Alternative Fuels
Rule, consumers can now access
detailed used AFV information online at
www.fueleconomy.gov, including
vehicle-specific fuel economy, energy
consumption, and environmental
impact data. Given the extensive
information at www.fueleconomy.gov,
the benefits of a separate used vehicle
label that contains only generic tips for
consumers seem small compared to the
costs of posting such labels.
Accordingly, the used label does not
appear necessary to ‘‘reasonably enable
the consumer to make choices and
comparisons’’ as contemplated by the
statute.36 The Commission seeks
comment on this proposal, including
whether the Commission should
consider including a link to
www.fueleconomy.gov on the FTC’s
used vehicle Buyers Guide.
C. Alternative Fuel Labeling
The Commission proposes no change
to non-liquid alternative fuel
requirements because two comments
indicated that existing alternative fuel
labeling helps consumers and no
comment proposed changes.37 EEI, for
example, urged the Commission to
retain existing requirements because
fuel dispenser labels help ensure
consumers choose fuels that match the
needs of their vehicle’s energy system.38
III. Paperwork Reduction Act
The current Rule contains
recordkeeping, disclosure, testing, and
reporting requirements that constitute
‘‘information collection requirements’’
as defined by 5 CFR 1320.3(c) under the
OMB regulations that implement the
Paperwork Reduction Act (PRA).39 OMB
has approved the Rule’s existing
information collection requirements
through April 30, 2013 (OMB Control
No. 3084–0094). The proposed
amendments would reduce the burdens
associated with the Rule by eliminating
FTC labeling requirements for vehicles
36 42
U.S.C. 13232(a).
37 NADA and EEI. No comments opposed existing
requirements. NADA suggested that the
Commission consider transferring the alternative
fuel provisions from 16 CFR Part 309 to Part 306
(i.e., the Fuel Rating Rule) to create a single rule
governing motor vehicle fuel ratings and simplify
compliance for the regulated community. Given
that the Commission recently completed a review
of Part 306, the Commission is not implementing
NADA’s suggestion at this time. In addition, aside
from NADA’s comment, the Commission has no
evidence that the location of Part 309 has caused
significant confusion for industry members. In the
future, the Commission may consider consolidating
the fuel information from Part 309 into Part 306.
38 Another comment (Gibbs) listed various
benefits provided by alternative fuels but did not
specifically address the FTC’s labeling
requirements.
39 44 U.S.C. 3501–3521.
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subject to EPA’s fuel economy labeling
requirements.
In past PRA analyses, FTC staff has
estimated the Rule applies to 1,121,153
alternative fuel vehicles, which mostly
include flex-fuel vehicles. The staff
estimated a two-minute average time to
comply with the posting requirements
for each of the approximately 1,121,153
new and used AFVs manufactured each
year, for a total of 37,371 hours.40 The
staff also estimated that the Rule’s
vehicle labeling requirements apply to
an estimated 1,121,153 new and used
AFVs each year at 38 cents (per industry
sources) for each label, the annual AFV
labeling cost is estimated to be $426,038
($0.38 × 1,121,153). The Commission
believes that the proposed rule would
eliminate the Rule’s burden for all these
vehicles. Accordingly, FTC staff is
submitting a related clearance request to
OMB to adjust these previously
submitted burden totals.
The Commission invites comments
on: (1) Whether the proposed
modifications to the current labeling
requirements are necessary and/or will
be practically useful; (2) the accuracy of
the associated burden estimates; (3) how
to improve the quality, utility, and
clarity of the labels; and (4) how to
minimize further the burden of the
collections of information.
Your responses to the points above
additionally should be sent to OMB. If
sent by U.S. mail, they should be
addressed to Office of Information and
Regulatory Affairs, Office of
Management and Budget, Attention:
Desk Officer for the Federal Trade
Commission, New Executive Office
Building, Docket Library, Room 10102,
725 17th Street NW., Washington, DC
20503. Comments sent to OMB by U.S.
postal mail, however, are subject to
delays due to heightened security
precautions. Thus, comments should
instead be sent by facsimile to (202)
395–5167.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601–612, requires that the
Commission provide an Initial
Regulatory Flexibility Analysis (IRFA)
with a Proposed Rule and a Final
Regulatory Flexibility Analysis (FRFA),
with the final Rule, if any, unless the
Commission certifies that the Rule will
not have a significant economic impact
on a substantial number of small
entities.41
The Commission does not anticipate
that the Proposed Rule will have a
40 75 FR 366, 367 (Jan. 5, 2010); 75 FR 12750,
12751 (Mar. 17, 2010).
41 5 U.S.C. 603–605.
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Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Proposed Rules
significant economic impact on a
substantial number of small entities.
The Commission recognizes that some
affected entities may qualify as small
businesses under the relevant
thresholds. Because the Proposed Rule
would reduce burdens, however, the
Commission does not expect that the
economic impact of the Rule will be
significant.
Accordingly, this document serves as
notice to the Small Business
Administration of the FTC’s
certification of no effect. To ensure the
accuracy of this certification, however,
the Commission requests comment on
whether the Proposed Rule will have a
significant impact on a substantial
number of small entities, including
specific information on the number of
entities that would be covered by the
Proposed Rule, the number of these
companies that are ‘‘small entities,’’ and
the average annual burden for each
entity. Although the Commission
certifies under the RFA that the Rule
proposed in this Notice would not, if
promulgated, have a significant impact
on a substantial number of small
entities, the Commission has
determined, nonetheless, that it is
appropriate to publish an IRFA in order
to inquire into the impact of the
Proposed Rule on small entities.
Therefore, the Commission has prepared
the following analysis:
A. Description of the Reasons That
Action by the Agency Is Being
Considered
To provide clear disclosures to
consumers and reduce labeling burden,
the Commission proposes to direct
manufacturers to use EPA fuel economy
labels in lieu of the existing FTC label.
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B. Statement of the Objectives of, and
Legal Basis for, the Proposed Rule
Section 406(a) of EPAct 92 directed
the Commission to establish uniform
labeling requirements, to the greatest
extent practicable, for alternative fuels
and AFVs.42
C. Small Entities to Which the Proposed
Rule Will Apply
Under the Small Business Size
Standards issued by the Small Business
Administration, automobile
manufacturers qualify as small
businesses if they have fewer than 1,000
employees. The Commission estimates
that approximately six vehicle
42 42 U.S.C. 13232(a). EPAct 92 did not specify
what information should be displayed on these
labels. Instead, it provided generally that the
Commission’s rule must require disclosure of
‘‘appropriate,’’ ‘‘useful,’’ and ‘‘timely’’ cost and
benefit information on ‘‘simple’’ labels.
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manufacturers or commercial importers
subject to the Proposed Rule qualify as
small businesses. The Commission
seeks comment and information with
regard to the estimated number and
nature of small business entities for
which the Proposed Rule would have a
significant economic impact.
D. Projected Reporting, Recordkeeping,
and Other Compliance Requirements
The Proposed Rule does not impose
any additional reporting, recordkeeping,
or compliance requirements. Rather, the
Proposed Rule would eliminate FTC
labeling requirements for certain
vehicles. The classes of small entities
affected by the Rule include fuel
distributors, vehicle manufacturers, and
fuel retailers.
E. Duplicative, Overlapping, or
Conflicting Federal Rules
The Commission has not identified
any other federal statutes, rules, or
policies that would duplicate, overlap,
or conflict with the Proposed Rule.
Indeed, the Proposed Rule would
harmonize labeling requirements for
new AFVs by consolidating the FTC’s
AFV labels with fuel economy labels
required by EPA and NHTSA. The
Commission invites comment and
information on this issue.
F. Significant Alternatives to the
Proposed Rule
The Commission seeks comment and
information on the need, if any, for
alternative compliance methods that
would reduce the economic impact of
the Rule on such small entities. If the
comments filed in response to this
Notice identify small entities that would
be affected by the Rule, as well as
alternative methods of compliance that
would reduce the economic impact of
the Rule on such entities, the
Commission will consider the feasibility
of such alternatives and determine
whether they should be incorporated
into the final rule.
V. Request for Comment
The Commission invites affected
industries, consumer organizations,
federal and state agencies, and other
interested persons to submit written
comments on any issue of fact, law, or
policy that may bear upon the proposals
under consideration. Please include
explanations for any answers provided,
as well as supporting evidence where
appropriate. After examining the
comments, the Commission will
determine whether to issue specific
amendments.
You can file a comment online or on
paper. For the Commission to consider
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Fmt 4702
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36427
your comment, we must receive it on or
before August 17, 2012. Write
‘‘Alternative Fuels Labeling (16 CFR
Part 309) (Matter No. R311002)’’ on your
comment. Your comment—including
your name and your state—will be
placed on the public record of this
proceeding, including, to the extent
practicable, on the public Commission
Web site, at https://www.ftc.gov/os/
publiccomments.shtm. As a matter of
discretion, the Commission tries to
remove individuals’ home contact
information from comments before
placing them on the Commission Web
site.
Because your comment will be made
public, you are solely responsible for
making sure that your comment does
not include any sensitive personal
information, such as anyone’s Social
Security number, date of birth, driver’s
license number or other state
identification number or foreign country
equivalent, passport number, financial
account number, or credit or debit card
number. You are also solely responsible
for making sure that your comment does
not include any sensitive health
information, like medical records or
other individually identifiable health
information. In addition, do not include
any ‘‘[t]rade secret or any commercial or
financial information which is obtained
from any person and which is privileged
or confidential * * *,’’ as provided in
Section 6(f) of the FTC Act, 15 U.S.C.
46(f), and FTC Rule 4.10(a)(2), 16 CFR
4.10(a)(2). If you want the Commission
to give your comment confidential
treatment, you must file it in paper
form, with a request for confidential
treatment, and you have to follow the
procedure explained in FTC Rule 4.9(c),
16 CFR 4.9(c).43 Your comment will be
kept confidential only if the FTC
General Counsel, in his or her sole
discretion, grants your request in
accordance with the law and the public
interest.
Postal mail addressed to the
Commission is subject to delay due to
heightened security screening. As a
result, we encourage you to submit your
comments online, or to send them to the
Commission by courier or overnight
service. To make sure that the
Commission considers your online
comment, you must file it at https://
ftcpublic.commentworks.com/ftc/
altfuelslabelingnprm by following the
instructions on the web-based form. If
this Notice appears at https://
43 In particular, the written request for
confidential treatment that accompanies the
comment must include the factual and legal basis
for the request, and must identify the specific
portions of the comment to be withheld from the
public record. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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Federal Register / Vol. 77, No. 118 / Tuesday, June 19, 2012 / Proposed Rules
www.regulations.gov/#!home, you also
may file a comment through that Web
site.
If you file your comment on paper,
write ‘‘Proposed Amendments to the
Alternative Fuels Rule, (16 CFR part
309) (Matter No. R311002)’’ on your
comment and on the envelope, and mail
or deliver it to the following address:
Federal Trade Commission, Office of the
Secretary, Room H–113 (Annex N), 600
Pennsylvania Avenue NW., Washington,
DC 20580. If possible, submit your
paper comment to the Commission by
courier or overnight service.
Visit the Commission Web site at
https://www.ftc.gov to read this Notice
and the news release describing it. The
FTC Act and other laws that the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives on or
before August 17, 2012. You can find
more information, including routine
uses permitted by the Privacy Act, in
the Commission’s privacy policy, at
https://www.ftc.gov/ftc/privacy.htm.
VI. Proposed Rule
List of Subjects in 16 CFR Part 309
Alternative fuel, Alternative fueled
vehicle, Energy conservation, Labeling,
Reporting and recordkeeping, Trade
practices.
The Commission proposes to amend
16 CFR part 309 as follows:
Secretary would achieve a significant
reduction in petroleum consumption.
*
*
*
*
*
3. In § 309.1, remove paragraphs (dd),
(ee), and (ff) and redesignate (gg) as (dd).
4. Revise § 309.20 to read as follows:
309.20 Labeling requirements for new
covered vehicles.
(a) Before offering a new covered
vehicle for acquisition to consumers,
manufacturers shall affix or cause to be
affixed, and new vehicle dealers shall
maintain or cause to be maintained, fuel
economy labels as required by under 40
CFR part 600. For dual fueled vehicles,
such labels must include driving range
information for alternative fuel and
gasoline operation and be otherwise
consistent with provisions in 40 CFR
part 600.
(b) If an aftermarket conversion
system is installed on a vehicle by a
person other than the manufacturer
prior to such vehicle’s being acquired by
a consumer, the manufacturer shall
provide that person with the vehicle’s
fuel economy label prepared pursuant to
40 CFR part 600 and ensure that new
fuel economy vehicle labels are affixed
to such vehicles as required by
paragraph (a) of this section.
5. Remove §§ 309.21 and 309.22.
6. Redesignate § 309.23 as 309.21.
7. In Appendix A to part 309, remove
figures 4, 5, 5.1, and 6.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2012–14828 Filed 6–18–12; 8:45 am]
PART 309—LABELING
REQUIREMENTS FOR ALTERNATIVE
FUELS AND ALTERNATIVE FUELED
VEHICLES
BILLING CODE 6750–01–P
1. The authority citation for part 309
continues to read as follows:
22 CFR Part 120
Authority: 42 U.S.C. 13232(a).
Definitions.
erowe on DSK2VPTVN1PROD with PROPOSALS-1
*
*
*
*
*
(f) * * *
(3) Any vehicle that is—
(i) A new qualified fuel cell motor
vehicle (as defined in 26 U.S.C.
30B(b)(3));
(ii) A new advanced lean burn
technology motor vehicle (as defined in
26 U.S.C. 30B(c)(3));
(iii) A new qualified hybrid motor
vehicle (as defined in 26 U.S.C.
30B(d)(3)); or
(iv) Any other type of vehicle that the
Administrator of the Environmental
Protection Agency demonstrates to the
VerDate Mar<15>2010
14:50 Jun 18, 2012
Jkt 226001
RIN 1400–AD22
[Public Notice 7921]
2. In § 309.1 add new paragraph (f)(3)
to read as follows:
§ 309.1
DEPARTMENT OF STATE
Amendment to the International Traffic
in Arms Regulations: Definition for
‘‘Specially Designed’’
Department of State.
Proposed rule.
AGENCY:
ACTION:
As part of the President’s
Export Control Reform (ECR) Initiative,
the Directorate of Defense Trade
Controls (DDTC) seeks public comment
on the proposed definition of ‘‘specially
designed’’ to be adopted in the
International Traffic in Arms
Regulations (ITAR). This proposed rule
is published concurrently with the
Department of Commerce’s proposed
revision to the definition of ‘‘specially
designed’’ in the Export Administration
SUMMARY:
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Fmt 4702
Sfmt 4702
Regulations (EAR). The revisions
contained in this rule are part of the
Department of State’s retrospective plan
under E.O. 13563 completed on August
17, 2011. The Department of State’s full
plan can be accessed at https://
www.state.gov/documents/organization/
181028.pdf.
DATES: The Department of State will
accept comments on this proposed rule
until August 3, 2012.
ADDRESSES: Interested parties may
submit comments within 45 days of the
date of publication by one of the
following methods:
• Email:
DDTCResponseTeam@state.gov with the
subject line, ‘‘Specially Designed
Definition.’’
• Internet: At www.regulations.gov,
search for this notice by using this
notice’s RIN (1400–AD22).
Comments received after that date
will be considered if feasible, but
consideration cannot be assured. Those
submitting comments should not
include any personally identifying
information they do not desire to be
made public or information for which a
claim of confidentiality is asserted
because those comments and/or
transmittal emails will be made
available for public inspection and
copying after the close of the comment
period via the Directorate of Defense
Trade Controls Web site at
www.pmddtc.state.gov. Parties who
wish to comment anonymously may do
so by submitting their comments via
www.regulations.gov, leaving the fields
that would identify the commenter
blank and including no identifying
information in the comment itself.
Comments submitted via
www.regulations.gov are immediately
available for public inspection.
FOR FURTHER INFORMATION CONTACT: Ms.
Candace M. J. Goforth, Director, Office
of Defense Trade Controls Policy, U.S.
Department of State, telephone (202)
663–2792, or email
DDTCResponseTeam@state.gov. ATTN:
Specially Designed Definition.
SUPPLEMENTARY INFORMATION: The
Directorate of Defense Trade Controls
(DDTC), U.S. Department of State,
administers the International Traffic in
Arms Regulations (ITAR) (22 CFR parts
120–130). The items subject to the
jurisdiction of the ITAR, i.e., ‘‘defense
articles,’’ are identified on the ITAR’s
U.S. Munitions List (USML) (22 CFR
121.1). With few exceptions, items not
subject to the export control jurisdiction
of the ITAR are subject to the
jurisdiction of the Export
Administration Regulations (‘‘EAR,’’ 15
CFR parts 730–774, which includes the
E:\FR\FM\19JNP1.SGM
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Agencies
[Federal Register Volume 77, Number 118 (Tuesday, June 19, 2012)]
[Proposed Rules]
[Pages 36423-36428]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14828]
=======================================================================
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FEDERAL TRADE COMMISSION
16 CFR Part 309
Labeling Requirements for Alternative Fuels and Alternative
Fueled Vehicles
AGENCY: Federal Trade Commission (FTC or Commission).
ACTION: Notice of proposed rulemaking; request for public comments.
-----------------------------------------------------------------------
SUMMARY: The Commission seeks public comment on two amendments to its
``Labeling Requirements for Alternative Fuels and Alternative Fueled
Vehicles'' (``Alternative Fuels Rule'' or ``Rule''). Specifically, the
proposed amendments consolidate the FTC's alternative fueled vehicle
(AFV) labels with new fuel economy labels required by the Environmental
Protection Agency (EPA) and the National Highway Traffic Safety
Administration (NHTSA) and eliminate FTC requirements for used AFV
labels.
DATES: Written comments must be received on or before August 17, 2012.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form by following the instructions in
section V of the SUPPLEMENTARY INFORMATION section below. Comments in
electronic form should be submitted using the following weblink https://ftcpublic.commentworks.com/ftc/atlfuelslabelingnprm (and following the
instructions on the web-based form). Comments filed in paper form
should be mailed or delivered to the following address: Federal Trade
Commission, Office of the Secretary, Room H-113 (Annex N), 600
Pennsylvania Avenue NW., Washington, DC 20580, in the manner detailed
in the SUPPLEMENTARY INFORMATION section below.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889,
Attorney, Division of Enforcement, Bureau of Consumer Protection,
Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC
20580.
SUPPLEMENTARY INFORMATION:
I. Background
The Energy Policy Act of 1992 (``EPAct 92'' or ``Act'') \1\
established federal programs that encourage the development of
alternative fuels and alternative fueled vehicles (AFVs). Section
406(a) of the Act directed the Commission to establish uniform labeling
requirements for alternative fuels and AFVs. Under the Act, such labels
must provide ``appropriate information with respect to costs and
benefits [of alternative fuels and AFVs], so as to reasonably enable
the consumer to make choices and comparisons.'' In addition, the
required labels must be ``simple and, where appropriate, consolidated
with other labels providing information to the consumer.'' \2\
---------------------------------------------------------------------------
\1\ Public Law 102-486, 106 Stat. 2776 (1992).
\2\ 42 U.S.C. 13232(a).
---------------------------------------------------------------------------
In response to EPAct 92, the Commission published the Alternative
Fuels Rule in 1995.\3\ The Rule requires labels on new and used AFVs
that run on liquid and non-liquid fuels, such as ethanol and other
alcohols including E85 ethanol-gasoline mixtures, natural gas,
liquefied petroleum gas, hydrogen, coal-derived liquid fuels, fuels
derived from biological materials (e.g., 100% biodiesel), and
electricity. The labels for new AFVs disclose the vehicle's estimated
cruising range (i.e., the travel distance on a single charge or tank of
fuel), general factors consumers should consider before buying an AFV,
and toll free telephone numbers and Web sites for additional
information from the Department of Energy (DOE) and NHTSA.\4\ Labels
for used AFVs contain
[[Page 36424]]
only the general buying factors and DOE/NHTSA contact information.\5\
---------------------------------------------------------------------------
\3\ 60 FR 26926 (May 19, 1995).
\4\ The Rule requires manufacturers to have a reasonable basis
for the vehicle cruising range, and, for certain AFVs, specifies the
test method for calculating that range. 16 CFR 309.22.
\5\ The general factors listed on the current label include fuel
type, operating costs, fuel availability, performance, convenience,
energy security, energy renewability, and emissions. See 16 CFR part
309, Appendix A.
---------------------------------------------------------------------------
The Rule also requires labels on fuel dispensers for non-liquid
alternative fuels, such as electricity, compressed natural gas, and
hydrogen.\6\ The labels for electricity provide the dispensing system's
kilowatt capacity, voltage, and other related information. The labels
for other non-liquid fuels disclose the fuel's commonly used name and
principal component (expressed as a percentage).\7\
---------------------------------------------------------------------------
\6\ The Commission's Fuel Labeling Rule, 16 CFR Part 306,
addresses labeling for liquid alternative fuels, such as ethanol and
liquefied natural gas.
\7\ The Rule requires fuel importers, producers, and
distributors to have a reasonable basis for the information
disclosed on the label, maintain records, and provide certifications
when transferring fuel. 16 CFR 309.11-14.
---------------------------------------------------------------------------
II. Regulatory Review
In a June 1, 2011, Advance Notice of Proposed Rulemaking (ANPR),\8\
the Commission initiated its regulatory review of the Rule to ensure
that FTC-required vehicle labels and EPA fuel economy labeling
requirements are consistent.\9\ In doing so, the Commission sought
comment about the Rule's costs, benefits, and regulatory impact. In
addition, the Commission raised three specific issues for comment: (1)
The consolidation of the FTC label with EPA's fuel economy label; (2)
the inclusion of new definitions for AFVs contained in recent
legislation; and (3) the retention of labeling requirements for used
AFVs.
---------------------------------------------------------------------------
\8\ 76 FR 31513.
\9\ At the same time, the Commission also announced postponement
of amendments to its ``Guide Concerning Fuel Economy Advertising for
New Automobiles'' (``Fuel Economy Guide'') (16 CFR Part 259) pending
completion of EPA's fuel economy labeling requirements and the
Commission's review of the Alternative Fuels Rule. 76 FR 31467 (June
1, 2011). Once the Commission completes the Alternative Fuels Rule
review, it will decide how to proceed with amendments to the Fuel
Economy Guide.
---------------------------------------------------------------------------
The Commission received nine comments.\10\ Seven urged the
Commission to consolidate its AFV labeling requirements with EPA's fuel
economy labels (including those for newly defined AFVs).\11\ No
comments opposed consolidation. In addition, three comments supported
elimination of FTC labels for used AFVs while one supported their
continuation.\12\ Two comments also recommended that the Commission
retain existing FTC requirements for labeling non-liquid alternative
fuels.\13\
---------------------------------------------------------------------------
\10\ The comments are available at https://www.ftc.gov/os/comments/alternativefuelsanpr/index.shtm. The comments include the
Alliance of Automobile Manufacturers (Alliance) ( 00008),
Association of Global Automakers (Global Automakers) (
00006), Clean Energy Fuels ( 00010), Denney (
00003), Edison Electric Institute (EEI) ( 00005), General
Motors Company (GM) ( 00012), Gibbs ( 00004),
Growth Energy ( 00007), and National Automobile Dealers
Association (NADA) ( 00011).
\11\ See the Alliance, Global Automakers, Denney, EEI, GM,
Growth Energy, and NADA.
\12\ The Alliance, NADA, and GM (supported elimination); and EEI
(supported continuation).
\13\ NADA and EEI.
---------------------------------------------------------------------------
In response, the Commission proposes to consolidate FTC labels with
EPA fuel economy labels for all AFVs, including those identified in
recent legislation, and eliminate FTC labeling requirements for used
AFVs. However, the Commission does not propose changes to existing
alternative fuel rating requirements. For each of these issues, the
following sections provide background on alternative fuel requirements,
discuss the comments received, and explain the proposed amendments.
A. EPA and NHTSA Fuel Economy Labels
Background: The Commission requested comment on whether it should
consolidate its AFV labels with fuel economy labels recently issued by
EPA to provide a uniform label for consumers.\14\ The new EPA labels
apply to both conventional vehicles and AFVs, including AFVs subject to
the FTC's labeling requirements.\15\ The EPA label differs depending on
the type of AFV. For electric and compressed natural gas vehicles, the
labels disclose information about fuel economy, greenhouse gases (and
other emissions), cruising (driving) range, and estimated annual fuel
cost. For ethanol-fueled vehicles, including flexible fuel vehicles
(FFVs) (i.e., dual fueled vehicles) that operate on a combination of
gasoline and ethanol, the labels disclose the fuel economy, fuel cost,
and emissions based on gasoline operation and allow, but do not
require, a driving range for gasoline or alternative fuel operation.
All the EPA labels reference www.fueleconomy.gov, which provides
comprehensive consumer information about fuel economy and alternative
fuels. Given this content, the ANPR requested comment on whether the
EPA label accomplishes the EPAct 92's goal of providing ``appropriate
information with respect to costs and benefits [of alternative fuels
and AFVs], so as to reasonably enable the consumer to make choices and
comparisons.'' \16\
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\14\ See 76 FR 39478 (July 6, 2011).
\15\ See EPA sample label at https://www.epa.gov/otaq/carlabel/fealllabels.pdf. Although EPA regulations (40 CFR Part 600) require
labeling for all vehicles covered under the Alternative Fuels Rule,
EPA did not propose a specific label for several vehicle types not
generally available to individual consumers such as those fueled by
liquefied petroleum gas, coal-derived liquid fuels, or fuels (other
than alcohol) derived from biological materials. See 76 FR 39478.
However, EPA has authority to require labels for such vehicles.
\16\ 42 U.S.C. 13232(a).
---------------------------------------------------------------------------
The ANPR also sought comment on whether to allow the use of the EPA
label, in lieu of the FTC label, on three categories of vehicles
(hydrogen fuel cell, advanced lean burn, and hybrid motor vehicles)
that were added to the definition of ``alternative fuel vehicle'' by
the National Defense Authorization Act for Fiscal Year 2008.\17\ The
Commission noted that, because these vehicles are already covered under
existing labeling programs, additional labeling requirements appear
unnecessary.\18\
---------------------------------------------------------------------------
\17\ 42 U.S.C. 13211(3)(B). According to the legislative
history, the purpose of these amendments is to ``allow additional
types of vehicles to be used to meet minimum'' requirements for
vehicle and fuel use by Federal agencies (i.e., ``Federal fleet
requirements''). 153 CONG. REC. 147 (2007).
\18\ 76 FR at 31516.
---------------------------------------------------------------------------
Comments: Seven comments supported consolidating the FTC and new
fuel economy labels explaining that a single label would reduce
consumer confusion and industry burden.\19\ No comments opposed such a
change.\20\ These comments noted that the EPA fuel economy labels offer
as much or more information than the FTC labels with one exception.
Finally, they noted that EPA labels cover the three vehicle types added
by recent legislation.
---------------------------------------------------------------------------
\19\ See, e.g., the Alliance, EEI, Denney, GM, Global
Automakers, Growth Energy, and NADA.
\20\ Clean Energy Fuels offered suggestions for new label
content, including ``fuel displacement'' of foreign oil, a full life
cycle assessment of greenhouse gas emissions and both fossil-based
and biological-based natural gas values for natural gas vehicles.
However, the comment did not specify how such information should be
derived or whether consumers would understand such information.
Given the Commission's proposal to eliminate the FTC label, such
suggestions are best directed to EPA for consideration in future
development of their fuel economy label.
---------------------------------------------------------------------------
Commenters explained that the FTC labeling requirements duplicate
the new fuel economy labels mandated by the EPA and NHTSA, create
potential confusion, and provide little, if any, benefit for
consumers.\21\ For instance, the Alliance of Automobile Manufacturers
(Alliance) argued such duplication creates potential consumer confusion
by presenting the same or similar information on differently formatted
labels and imposes costs on manufacturers with no significant consumer
benefit. General Motors (GM) also explained that the overlapping
[[Page 36425]]
labels have led to inconsistencies between the driving range numbers on
FTC and EPA labels.\22\ The Alliance and the Association of Global
Automakers (Global Automakers) noted that, over the past several years,
industry members have urged state and federal agencies to develop a
single national vehicle label.\23\ No commenters disagreed with these
views.
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\21\ See, e.g., the Alliance, EEI, Denney, GM, Global
Automakers, Growth Energy, and NADA.
\22\ See GM. For example, consolidation would eliminate current
inconsistencies between cruising range values on FTC and EPA
electric vehicle labels. To address electric vehicles introduced
pending completion of this rulemaking, the Commission issued a
policy stating that it will not enforce current FTC labeling
requirements for any electric vehicle bearing an EPA-mandated fuel
economy label and will encourage vehicle manufacturers to use the
EPA label in lieu of the FTC label. See FTC enforcement policy on
driving range numbers for electric vehicles at https://www.ftc.gov/opa/2011/05/afr.shtm.
\23\ Working toward that goal, EPA has coordinated with
California to incorporate the state's labeling information into the
national fuel economy label. See the Alliance and Global Automakers.
Global Automakers urged the Commission to work with EPA and NHTSA to
resolve any deficiencies the Commission finds with the fuel economy
label.
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Five comments suggested that elimination of the FTC labels would
not harm consumers because the EPA fuel economy labels provide more
vehicle-specific information than the FTC label.\24\ Specifically,
Global Automakers explained the EPA labeling program provides
comprehensive fuel economy information by requiring labels that
disclose the most important vehicle information and offers a Web site,
www.fueleconomy.gov, with more detailed information, including data on
older vehicles.\25\ According to the Alliance, the new EPA fuel economy
label, like the current FTC label, requires driving range information
for most AFVs, including electric vehicles (EVs), plug-in hybrid
electric vehicles (PHEVs), hydrogen fuel cell vehicles (FCVs), and
compressed natural gas (CNG-fueled) vehicles. At the same time, the EPA
label provides additional information not found on the FTC label
including fuel costs, smog ratings, and greenhouse gas information.\26\
Two comments, GM and the Alliance, noted that, unlike the FTC label for
FFVs, the EPA rules do not require driving range information but
instead provide manufacturers the option to include the range for
gasoline and alternative fuel (e.g., E85) operation. The Alliance
recommended that the FTC provide the same flexibility. No comments
identified harm to consumers from consolidation.
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\24\ Global Automakers, the Alliance, Growth Energy, NADA, and
GM.
\25\ According to the Alliance, many consumers conduct Internet
research to make basic vehicle purchasing decisions before ever
visiting a dealership. See also, Global Automakers, Denney, and
NADA.
\26\ See Growth Energy and NADA.
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Finally, three comments recommended that the FTC allow
manufacturers to use the EPA fuel economy label for vehicle categories
added to the definition of AFV by recent legislation (i.e., lean burn,
hybrid, and fuel cell vehicles). No comments opposed this approach.
Edison Electric Institute (EEI) argued that the federal requirements
should be the same for all types of vehicles to minimize industry costs
and ensure consumers can make ``apples to apples'' vehicle comparisons.
The Alliance agreed, noting that EPA labeling rules already cover these
vehicles. GM also explained that FTC labels for these vehicles would
not provide any significant additional consumer benefit and could
increase the opportunity for errors.
Discussion: Consistent with the comments, the Commission proposes
to require manufacturers to use EPA's fuel economy label for
alternative fuel vehicles, including the vehicle categories added by
recent legislation, in lieu of existing FTC requirements.\27\ The
Commission agrees with commenters that consolidating the FTC and EPA
labels will benefit consumers and industry by eliminating potential
confusion caused by overlapping or inconsistent labels, and by reducing
the burden on manufacturers to create and post two labels.\28\
Generally, the EPA labels are likely to be more helpful to consumers in
making choices and comparisons because they contain more vehicle-
specific information than the current FTC labels. The fuel economy
labels also link consumers to www.fueleconomy.gov, which provides
comprehensive comparative information for conventional vehicles and
AFVs.\29\
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\27\ The proposed amendments add the statutory definitions for
lean burn, hybrid, and fuel cell vehicles to the Rule.
\28\ In addition to concerns about electric vehicle labels
discussed above, the EPA and FTC labels disclose driving range for
E85 dual-fueled vehicles in different ways. The FTC label requires a
lower range number based on city fuel economy and an upper range
number based on highway fuel economy (e.g., 246-378 on one tank).
Conversely, the EPA label presents a single number (e.g., 300 miles
on one tank) based on the vehicle's combined city-highway fuel
economy. 40 CFR 600.311-12(j)(1). Although the resulting numbers are
similar and based on the same test procedures, the differences in
presentation have the potential to confuse consumers.
\29\ The proposed amendments are consistent with the EPAct 92,
which gives the Commission discretion to consolidate its
requirements ``with other labels providing information to the
consumer.'' 42 U.S.C. 13232(a). In addition, the Energy and Policy
Conservation Act, 42 U.S.C. 32908(e)(2), authorizes the FTC to
enforce the EPA automobile label requirements issued pursuant to 49
U.S.C. 32908(b).
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Unlike the FTC labels, the EPA labels for FFVs allow, but do not
require, driving range disclosures. In support of making driving range
disclosures optional, EPA has indicated that nearly all FFV owners
(99%) use only regular gasoline, limiting the practical value of
driving range disclosures.\30\ EPA's conventional gasoline label does
not disclose driving range. Also, the inclusion of driving range on the
FFV label alters the location of the ``gallons per 100 miles''
disclosure.\31\ Other factors, however, may support a mandatory driving
range disclosure for these vehicles. First, the difference between
driving range performance for alternative fuel and conventional
gasoline operation can be significant.\32\ Second, the use of
alternative fuels may increase in the future. Therefore, to ensure the
label provides vehicle buyers with comparative driving range
performance for both alternative fuel and conventional gasoline, the
Commission proposes to require use of the EPA FFV label that contains
the vehicle's alternative fuel and gasoline driving range. This
proposal would effectively eliminate use of the EPA FFV label that does
not disclose driving range.
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\30\ 76 FR at 39485.
\31\ See EPA sample labels at https://www.epa.gov/otaq/carlabel/fealllabels.pdf.
\32\ For example, EPA's sample fuel economy label FFV's displays
a 390 mile driving range for gasoline and a 270 mile range for E85
operation. See 76 FR at 39584 (Figure 5).
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The Commission seeks comment on all aspects of this proposal. In
particular, comments should indicate whether driving range information
on FFV labels is necessary given the few consumers that appear to use
alternative fuel in such vehicles. Comments should also address whether
the elimination of FFV label that does not disclose driving range would
have any negative impacts on consumers' efforts to compare vehicles.
The Commission also seeks comment on whether there are any types of
AFVs on the market that are not covered by the EPA label, and, if so,
whether the Commission should retain its current labeling requirements
for such vehicles.
B. Labels for Used AFVs
Background: In the ANPR, the Commission sought comment on whether
to change the Rule's labeling requirements for used AFVs.\33\ Under
[[Page 36426]]
the current Rule, used AFV dealers must post labels with general tips
and references to government telephone numbers and Web sites that
provide additional information.\34\ However, these labels do not
contain vehicle-specific information, such as cruising range. Because
these labels provide limited information and are likely to impose
increasing burdens on used car dealers as the AFV market expands, the
Commission asked whether it should retain the requirement and, if so,
whether to change the label's content.
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\33\ 16 CFR 309.21. The Act contains no specific requirement for
used AFV labels nor does it specifically exclude used vehicles from
its coverage. See 42 U.S.C. 13211 and 13232(a). In promulgating the
original Rule in 1995, the Commission determined that used AFV
labeling was ``appropriate'' because Aconsumers would likely have
the same need for information, and would consider the same factors,
whether they were contemplating a new or used ``FV acquisition.'' 60
FR at 26941.
\34\ The Commission's Used Car Rule (16 CFR Part 455) also
requires used car dealers to affix on the vehicle the FTC's Buyers
Guide, which contains warranty information about the vehicle. See 16
CFR part 455.
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Comments: Three comments urged the Commission to eliminate the FTC
labeling requirement for used vehicles, while two suggested alternative
approaches to the existing label. The Alliance, the National Automobile
Dealers Association (NADA), and GM recommended elimination because the
used vehicle label does not provide consumers with significant benefit
and places unnecessary burden on used automobile dealers. NADA also
argued that the rule, which does not apply to private used vehicle
sellers, poses unfair burdens on dealers who account for only about
half of all used vehicle transactions. In lieu of the current label
which only provides general tips, these three comments suggested that
consumers use www.fueleconomy.gov to locate specific vehicle
information.
Although NADA recommended elimination of the used label altogether,
it also suggested alternatively that the Commission insert an AFV
disclosure into the FTC's current used vehicle Buyers Guide (16 CFR
Part 455). NADA suggested that the FTC used vehicle Buyers Guide could
state: ``For more information on the fuel economy and fuel type for
this vehicle, consult www.fueleconomy.gov.'' \35\ In addition, EEI, the
only comment that supported keeping the used vehicle label, urged the
Commission to simplify the requirements by only requiring a link to the
www.fueleconomy.gov Web site on the existing label.
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\35\ Use of the FTC's used vehicle Buyers Guide would be
consistent with Congress' directive to ``consolidate'' the AFV
information with other labels where appropriate. 42 U.S.C. 13232(a).
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Discussion: The Commission proposes to eliminate the requirement
for a separate AFV label for used vehicles. Unlike in 1995, when the
Commission originally issued its Alternative Fuels Rule, consumers can
now access detailed used AFV information online at www.fueleconomy.gov,
including vehicle-specific fuel economy, energy consumption, and
environmental impact data. Given the extensive information at
www.fueleconomy.gov, the benefits of a separate used vehicle label that
contains only generic tips for consumers seem small compared to the
costs of posting such labels. Accordingly, the used label does not
appear necessary to ``reasonably enable the consumer to make choices
and comparisons'' as contemplated by the statute.\36\ The Commission
seeks comment on this proposal, including whether the Commission should
consider including a link to www.fueleconomy.gov on the FTC's used
vehicle Buyers Guide.
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\36\ 42 U.S.C. 13232(a).
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C. Alternative Fuel Labeling
The Commission proposes no change to non-liquid alternative fuel
requirements because two comments indicated that existing alternative
fuel labeling helps consumers and no comment proposed changes.\37\ EEI,
for example, urged the Commission to retain existing requirements
because fuel dispenser labels help ensure consumers choose fuels that
match the needs of their vehicle's energy system.\38\
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\37\ NADA and EEI. No comments opposed existing requirements.
NADA suggested that the Commission consider transferring the
alternative fuel provisions from 16 CFR Part 309 to Part 306 (i.e.,
the Fuel Rating Rule) to create a single rule governing motor
vehicle fuel ratings and simplify compliance for the regulated
community. Given that the Commission recently completed a review of
Part 306, the Commission is not implementing NADA's suggestion at
this time. In addition, aside from NADA's comment, the Commission
has no evidence that the location of Part 309 has caused significant
confusion for industry members. In the future, the Commission may
consider consolidating the fuel information from Part 309 into Part
306.
\38\ Another comment (Gibbs) listed various benefits provided by
alternative fuels but did not specifically address the FTC's
labeling requirements.
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III. Paperwork Reduction Act
The current Rule contains recordkeeping, disclosure, testing, and
reporting requirements that constitute ``information collection
requirements'' as defined by 5 CFR 1320.3(c) under the OMB regulations
that implement the Paperwork Reduction Act (PRA).\39\ OMB has approved
the Rule's existing information collection requirements through April
30, 2013 (OMB Control No. 3084-0094). The proposed amendments would
reduce the burdens associated with the Rule by eliminating FTC labeling
requirements for vehicles subject to EPA's fuel economy labeling
requirements.
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\39\ 44 U.S.C. 3501-3521.
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In past PRA analyses, FTC staff has estimated the Rule applies to
1,121,153 alternative fuel vehicles, which mostly include flex-fuel
vehicles. The staff estimated a two-minute average time to comply with
the posting requirements for each of the approximately 1,121,153 new
and used AFVs manufactured each year, for a total of 37,371 hours.\40\
The staff also estimated that the Rule's vehicle labeling requirements
apply to an estimated 1,121,153 new and used AFVs each year at 38 cents
(per industry sources) for each label, the annual AFV labeling cost is
estimated to be $426,038 ($0.38 x 1,121,153). The Commission believes
that the proposed rule would eliminate the Rule's burden for all these
vehicles. Accordingly, FTC staff is submitting a related clearance
request to OMB to adjust these previously submitted burden totals.
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\40\ 75 FR 366, 367 (Jan. 5, 2010); 75 FR 12750, 12751 (Mar. 17,
2010).
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The Commission invites comments on: (1) Whether the proposed
modifications to the current labeling requirements are necessary and/or
will be practically useful; (2) the accuracy of the associated burden
estimates; (3) how to improve the quality, utility, and clarity of the
labels; and (4) how to minimize further the burden of the collections
of information.
Your responses to the points above additionally should be sent to
OMB. If sent by U.S. mail, they should be addressed to Office of
Information and Regulatory Affairs, Office of Management and Budget,
Attention: Desk Officer for the Federal Trade Commission, New Executive
Office Building, Docket Library, Room 10102, 725 17th Street NW.,
Washington, DC 20503. Comments sent to OMB by U.S. postal mail,
however, are subject to delays due to heightened security precautions.
Thus, comments should instead be sent by facsimile to (202) 395-5167.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires
that the Commission provide an Initial Regulatory Flexibility Analysis
(IRFA) with a Proposed Rule and a Final Regulatory Flexibility Analysis
(FRFA), with the final Rule, if any, unless the Commission certifies
that the Rule will not have a significant economic impact on a
substantial number of small entities.\41\
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\41\ 5 U.S.C. 603-605.
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The Commission does not anticipate that the Proposed Rule will have
a
[[Page 36427]]
significant economic impact on a substantial number of small entities.
The Commission recognizes that some affected entities may qualify as
small businesses under the relevant thresholds. Because the Proposed
Rule would reduce burdens, however, the Commission does not expect that
the economic impact of the Rule will be significant.
Accordingly, this document serves as notice to the Small Business
Administration of the FTC's certification of no effect. To ensure the
accuracy of this certification, however, the Commission requests
comment on whether the Proposed Rule will have a significant impact on
a substantial number of small entities, including specific information
on the number of entities that would be covered by the Proposed Rule,
the number of these companies that are ``small entities,'' and the
average annual burden for each entity. Although the Commission
certifies under the RFA that the Rule proposed in this Notice would
not, if promulgated, have a significant impact on a substantial number
of small entities, the Commission has determined, nonetheless, that it
is appropriate to publish an IRFA in order to inquire into the impact
of the Proposed Rule on small entities. Therefore, the Commission has
prepared the following analysis:
A. Description of the Reasons That Action by the Agency Is Being
Considered
To provide clear disclosures to consumers and reduce labeling
burden, the Commission proposes to direct manufacturers to use EPA fuel
economy labels in lieu of the existing FTC label.
B. Statement of the Objectives of, and Legal Basis for, the Proposed
Rule
Section 406(a) of EPAct 92 directed the Commission to establish
uniform labeling requirements, to the greatest extent practicable, for
alternative fuels and AFVs.\42\
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\42\ 42 U.S.C. 13232(a). EPAct 92 did not specify what
information should be displayed on these labels. Instead, it
provided generally that the Commission's rule must require
disclosure of ``appropriate,'' ``useful,'' and ``timely'' cost and
benefit information on ``simple'' labels.
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C. Small Entities to Which the Proposed Rule Will Apply
Under the Small Business Size Standards issued by the Small
Business Administration, automobile manufacturers qualify as small
businesses if they have fewer than 1,000 employees. The Commission
estimates that approximately six vehicle manufacturers or commercial
importers subject to the Proposed Rule qualify as small businesses. The
Commission seeks comment and information with regard to the estimated
number and nature of small business entities for which the Proposed
Rule would have a significant economic impact.
D. Projected Reporting, Recordkeeping, and Other Compliance
Requirements
The Proposed Rule does not impose any additional reporting,
recordkeeping, or compliance requirements. Rather, the Proposed Rule
would eliminate FTC labeling requirements for certain vehicles. The
classes of small entities affected by the Rule include fuel
distributors, vehicle manufacturers, and fuel retailers.
E. Duplicative, Overlapping, or Conflicting Federal Rules
The Commission has not identified any other federal statutes,
rules, or policies that would duplicate, overlap, or conflict with the
Proposed Rule. Indeed, the Proposed Rule would harmonize labeling
requirements for new AFVs by consolidating the FTC's AFV labels with
fuel economy labels required by EPA and NHTSA. The Commission invites
comment and information on this issue.
F. Significant Alternatives to the Proposed Rule
The Commission seeks comment and information on the need, if any,
for alternative compliance methods that would reduce the economic
impact of the Rule on such small entities. If the comments filed in
response to this Notice identify small entities that would be affected
by the Rule, as well as alternative methods of compliance that would
reduce the economic impact of the Rule on such entities, the Commission
will consider the feasibility of such alternatives and determine
whether they should be incorporated into the final rule.
V. Request for Comment
The Commission invites affected industries, consumer organizations,
federal and state agencies, and other interested persons to submit
written comments on any issue of fact, law, or policy that may bear
upon the proposals under consideration. Please include explanations for
any answers provided, as well as supporting evidence where appropriate.
After examining the comments, the Commission will determine whether to
issue specific amendments.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before August 17, 2012.
Write ``Alternative Fuels Labeling (16 CFR Part 309) (Matter No.
R311002)'' on your comment. Your comment--including your name and your
state--will be placed on the public record of this proceeding,
including, to the extent practicable, on the public Commission Web
site, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of
discretion, the Commission tries to remove individuals' home contact
information from comments before placing them on the Commission Web
site.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, such as anyone's Social Security
number, date of birth, driver's license number or other state
identification number or foreign country equivalent, passport number,
financial account number, or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, like medical records or other
individually identifiable health information. In addition, do not
include any ``[t]rade secret or any commercial or financial information
which is obtained from any person and which is privileged or
confidential * * *,'' as provided in Section 6(f) of the FTC Act, 15
U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). If you want
the Commission to give your comment confidential treatment, you must
file it in paper form, with a request for confidential treatment, and
you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR
4.9(c).\43\ Your comment will be kept confidential only if the FTC
General Counsel, in his or her sole discretion, grants your request in
accordance with the law and the public interest.
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\43\ In particular, the written request for confidential
treatment that accompanies the comment must include the factual and
legal basis for the request, and must identify the specific portions
of the comment to be withheld from the public record. See FTC Rule
4.9(c), 16 CFR 4.9(c).
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Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online, or to send them to the Commission by courier or
overnight service. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/altfuelslabelingnprm by following the instructions on the web-based
form. If this Notice appears at https://
[[Page 36428]]
www.regulations.gov/!home, you also may file a comment through
that Web site.
If you file your comment on paper, write ``Proposed Amendments to
the Alternative Fuels Rule, (16 CFR part 309) (Matter No. R311002)'' on
your comment and on the envelope, and mail or deliver it to the
following address: Federal Trade Commission, Office of the Secretary,
Room H-113 (Annex N), 600 Pennsylvania Avenue NW., Washington, DC
20580. If possible, submit your paper comment to the Commission by
courier or overnight service.
Visit the Commission Web site at https://www.ftc.gov to read this
Notice and the news release describing it. The FTC Act and other laws
that the Commission administers permit the collection of public
comments to consider and use in this proceeding as appropriate. The
Commission will consider all timely and responsive public comments that
it receives on or before August 17, 2012. You can find more
information, including routine uses permitted by the Privacy Act, in
the Commission's privacy policy, at https://www.ftc.gov/ftc/privacy.htm.
VI. Proposed Rule
List of Subjects in 16 CFR Part 309
Alternative fuel, Alternative fueled vehicle, Energy conservation,
Labeling, Reporting and recordkeeping, Trade practices.
The Commission proposes to amend 16 CFR part 309 as follows:
PART 309--LABELING REQUIREMENTS FOR ALTERNATIVE FUELS AND
ALTERNATIVE FUELED VEHICLES
1. The authority citation for part 309 continues to read as
follows:
Authority: 42 U.S.C. 13232(a).
2. In Sec. 309.1 add new paragraph (f)(3) to read as follows:
Sec. 309.1 Definitions.
* * * * *
(f) * * *
(3) Any vehicle that is--
(i) A new qualified fuel cell motor vehicle (as defined in 26
U.S.C. 30B(b)(3));
(ii) A new advanced lean burn technology motor vehicle (as defined
in 26 U.S.C. 30B(c)(3));
(iii) A new qualified hybrid motor vehicle (as defined in 26 U.S.C.
30B(d)(3)); or
(iv) Any other type of vehicle that the Administrator of the
Environmental Protection Agency demonstrates to the Secretary would
achieve a significant reduction in petroleum consumption.
* * * * *
3. In Sec. 309.1, remove paragraphs (dd), (ee), and (ff) and
redesignate (gg) as (dd).
4. Revise Sec. 309.20 to read as follows:
309.20 Labeling requirements for new covered vehicles.
(a) Before offering a new covered vehicle for acquisition to
consumers, manufacturers shall affix or cause to be affixed, and new
vehicle dealers shall maintain or cause to be maintained, fuel economy
labels as required by under 40 CFR part 600. For dual fueled vehicles,
such labels must include driving range information for alternative fuel
and gasoline operation and be otherwise consistent with provisions in
40 CFR part 600.
(b) If an aftermarket conversion system is installed on a vehicle
by a person other than the manufacturer prior to such vehicle's being
acquired by a consumer, the manufacturer shall provide that person with
the vehicle's fuel economy label prepared pursuant to 40 CFR part 600
and ensure that new fuel economy vehicle labels are affixed to such
vehicles as required by paragraph (a) of this section.
5. Remove Sec. Sec. 309.21 and 309.22.
6. Redesignate Sec. 309.23 as 309.21.
7. In Appendix A to part 309, remove figures 4, 5, 5.1, and 6.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2012-14828 Filed 6-18-12; 8:45 am]
BILLING CODE 6750-01-P