Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles; Proposed Rule |
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Donald S. Clark
Federal Trade Commission
May 9, 1994
[Federal Register Volume 59, Number 88 (Monday, May 9, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Printing Office [www.gpo.gov] [FR Doc No: 94-11102] [[Page Unknown]] [Federal Register: May 9, 1994] _______________________________________________________________________ Part VII Federal Trade Commission _______________________________________________________________________ 16 CFR Part 309 Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles; Proposed Rule FEDERAL TRADE COMMISSION 16 CFR Part 309 RIN 3084-AA57 Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles AGENCY: Federal Trade Commission. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: Section 406(a) of the Energy Policy Act of 1992 directs the Federal Trade Commission (``Commission'') to establish uniform labeling requirements for alternative fuels and alternative fueled vehicles. This notice announces the substance of the Commission's proposed rule implementing that directive. The Commission invites interested persons to submit written comments addressing any issue they believe may bear upon the proposed rule. Following the period for written comments, Commission staff will conduct a Public Workshop-Conference to afford interested persons an opportunity to discuss issues raised during the comment period. The Public Workshop-Conference will be held on July 20- 21, 1994. After reviewing comments received in response to this notice, the transcript of the Public Workshop-Conference, and any other properly filed submissions, the Commission will publish a Supplemental Notice of Proposed Rulemaking in which it will propose the text of a labeling rule. DATES: Written comments must be submitted on or before June 23, 1994. Notification of interest to participate in the Public Workshop- Conference must be received on or before June 8, 1994. The Public Workshop-Conference is scheduled to be held at the Federal Trade Commission, Sixth and Pennsylvania Avenue, NW., Washington, DC, on July 20-21, 1994, from 9 a.m. until 5 p.m. ADDRESSES: Written comments and requests to participate in the Public Workshop-Conference should be sent to the Division of Enforcement, Federal Trade Commission, 601 Pennsylvania Avenue, NW., Washington, DC 20580, Attn: Jeffrey E. Feinstein, Room S-4618. The Commission requests that original submissions be filed with six copies, if feasible. Submissions should be identified as ``16 CFR Part 309--Comment'' and ``16 CFR Part 309--Request to Participate in Public Workshop- Conference'' as appropriate. If submissions are made by facsimile transmission, please call 202/326-2372 to confirm receipt. FOR FURTHER INFORMATION CONTACT: Jeffrey E. Feinstein, Attorney, Division of Enforcement, Federal Trade Commission, Washington, DC 20580, telephone 202/326-2372. SUPPLEMENTARY INFORMATION: I. Introduction Section 406(a) of the Energy Policy Act of 1992 (``EPA 92'') directs the Commission to issue a rule establishing uniform labeling requirements, to the greatest extent practicable, for alternative fuels1 and alternative fueled vehicles2 (``AFVs'').3 The Act does not specify what information should be displayed on these labels. Instead, it provides generally that the rule must require disclosure of ``appropriate'' cost and benefit information to enable the consumer to make reasonable purchasing choices and comparisons.4 In formulating the rule, the Commission must consider the problems associated with developing and publishing ``useful and timely'' information, taking into account lead time, costs, frequency of changes in costs and benefits that may occur, and other relevant factors.5 The labels themselves must be simple and, where appropriate, consolidated with other labels providing information to consumers.6 --------------------------------------------------------------------------- \1\ ``Alternative fuels'' are defined as: [M]ethanol, denatured ethanol, and other alcohols; mixtures containing 85 percent or more (or such other percentage, but not less than 70 percent, as determined by the Secretary [of Energy], by rule, to provide for requirements relating to cold start, safety, or vehicle functions) by volume of methanol, denatured ethanol, and other alcohols with gasoline or other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; fuels (other than alcohol) derived from biological materials; electricity (including electricity from solar energy); and any other fuel the Secretary determines, by rule, is substantially not petroleum and would yield substantial energy security benefits and substantial environmental benefits[.] 42 U.S.C.A. 13211(2) (West Supp. 1993). \2\ An ``alternative fueled vehicle'' is ``a dedicated vehicle or a dual fueled vehicle.'' 42 U.S.C.A. 13211(3) (West Supp. 1993). Each term is further defined in 42 U.S.C.A. 13211(6) and (8) (West Supp. 1993). \3\ Pub. L. No. 102-486, 106 Stat. 2776 (1992). Section 406(a) is codified at 42 U.S.C.A. 13232(a) (West Supp. 1993). \4\ Id. \5\ Id. \6\ Id. --------------------------------------------------------------------------- EPA 92 further directs the Department of Energy (``DOE'') to coordinate its development of an information package with the Commission's promulgation of labeling requirements.7 Specifically, section 405 of EPA 92 requires DOE to produce and make available an information package for consumers to help them choose among alternative fuels and AFVs.8 DOE's information package must provide ``relevant and objective'' information addressing seven ``motor vehicle and fuel characteristics as compared to gasoline'' (including environmental performance, energy efficiency, domestic content, cost, maintenance requirements, reliability, and safety), information about the conversion of conventional motor vehicles to AFVs, and ``such other information as the Secretary [of DOE] determines is reasonable and necessary to help promote the use of alternative fuels in motor vehicles.''9 --------------------------------------------------------------------------- \7\ 42 U.S.C.A. 13232(b) (West Supp. 1993). \8\ 42 U.S.C.A. 13231 (West Supp. 1993). \9\ Id. --------------------------------------------------------------------------- According to EPA 92, the DOE Secretary is to provide technical assistance to the Commission in developing its labeling requirements,10 and the Commission is to issue this notice of proposed rulemaking ``in consultation with'' the DOE Secretary, the Administrator of the Environmental Protection Agency, and the Secretary of Transportation.11 EPA 92 requires the Commission to issue a final labeling rule within one year of this notice of proposed rulemaking and to update its rule ``periodically to reflect the most recent available information.''12 --------------------------------------------------------------------------- \1\0 Id. \1\1 42 U.S.C.A. 13232(a) (West Supp. 1993). During its development of this notice, Commission staff discussed the proposed labeling requirements with staff from DOE, EPA, and DOT's National Highway Traffic Safety Administration. \1\2 Id. --------------------------------------------------------------------------- This is the Commission's second rulemaking concerning labeling requirements for alternative fuels. In a separate proceeding also required by EPA 92,13 the Commission recently extended the requirements of its former Octane Rule14 (renamed the ``Fuel Rating Rule'') beyond gasoline to include liquid alternative fuels.15 As a result, retailers of such fuels are now required, among other things, to post labels identifying the commonly used name of the fuel and the amount, expressed as a minimum percentage by volume, of the fuel's principal component.16 --------------------------------------------------------------------------- \1\3 15 U.S.C.A. 2821-2823 (West Supp. 1993). \1\4 Octane Posting and Certification, 16 CFR Part 306. \1\5 58 FR 41356, 41373, Aug. 3, 1993 (to be codified at 16 CFR 306.0(i)(2)). In that proceeding, the Commission had no authority to extend its requirements beyond liquid alternative fuels. 15 U.S.C.A. 2821 (West Supp. 1993). \1\6 58 FR at 41373 (to be codified at 16 CFR 306.0(j)(2)). The Fuel Rating Rule became effective October 25, 1993. Id. at 41356. --------------------------------------------------------------------------- EPA 92 requires the Commission, in formulating its rule, to obtain the views of affected industries, consumer organizations, Federal and State agencies, and all other interested parties.17 The Commission has concluded that EPA 92 authorizes use of the notice and comment rulemaking procedures of the Administrative Procedure Act (``APA'') to obtain the views of these entities.18 Pursuant to section 553(b)(3) of the APA, the Commission has elected to publish the substance, instead of the specific language, of its proposed rule.19 --------------------------------------------------------------------------- \1\7 42 U.S.C.A. 13232(a) (West Supp. 1993). \1\8 5 U.S.C. 553 (b) and (c). \1\9 5 U.S.C. 553(b)(3). --------------------------------------------------------------------------- The Commission seeks comment (written comment in response to this notice and oral testimony during the Public Workshop-Conference) on whether the proposed rule will accomplish the purposes of section 406(a). The Commission also seeks comment on whether some variation of this proposal, or other options or variations not proposed here, would be more appropriate. II. The Commission's Advance Notice of Proposed Rulemaking To assist in the development of its proposed labeling requirements and this notice, the Commission published an Advance Notice of Proposed Rulemaking (``ANPR'') in the Federal Register on December 10, 1993,20 seeking comment until January 26, 1994, on basic issues raised by this proceeding. In its ANPR, the Commission requested comment on issues relating to which fuels and vehicles should be covered by the labeling requirements (i.e., the proposed rule's scope), and what information should be required to be displayed on labels (i.e., the proposed rule's disclosures). The Commission also sought comment on how the labeling requirements should be updated, and the extent to which the labels should be consolidated with other labels providing information to consumers. --------------------------------------------------------------------------- \2\0 58 FR 64914, Dec. 10, 1993. --------------------------------------------------------------------------- In response to the ANPR, the Commission received a total of 28 comments. These comments were from vehicle manufacturers,21 fuel producers,22 governmental entities,23 and organizations representing affected interests.24 All the comments were placed on the public record pertaining to this proceeding.25 Comments addressing issues raised in the ANPR are discussed below. --------------------------------------------------------------------------- \2\1 The Flxible Corporation (Flxible), D-4; Ford Motor Company (Ford), D-10; General Motors (GM), D-12; Honda North America, Inc., American Honda Motor Co., Inc., Honda of America, Mfg., Inc., and Honda Motor Co. Ltd. (Honda), D-15; Volvo GM Heavy Truck Corporation (Volvo/GM), D-1. \2\2 Boston Edison Company (Boston Edison), D-11; Mobil Oil Corporation (Mobil), D-16; Sun Company, Inc. (Sun), D-13. \2\3 City of Chicago (Chicago), E-4; Minnesota Department of Agriculture (Minnesota), E-8; Nebraska Energy Office, Alternative Fuels Advisory Committee, Suppliers Subcommittee (Nebraska AFAC), E- 6; U.S Department of Energy (DOE), E-10; U.S. Department of Energy, Energy Information Administration, Energy Demand and Integration Division (EIA/EDID), E-1; U.S. Department of Energy, Energy Information Administration, Energy End Use and Integrated Statistics Division (EIA/EEU-ISD), E-9; U.S. Department of Energy, Energy Information Administration, Office of Integrated Analysis and Forecasting (EIA/OIAF), E-3; U.S. Department of Transportation, National Highway Traffic Safety Administration (DOT/NHTSA), E-2; U.S. Environmental Protection Agency (EPA), E-5; Wisconsin Department of Natural Resources (WDNR), E-7. \2\4 American Automobile Manufacturers Association (AAMA), D-3; American Gas Association (AGA) and Natural Gas Vehicles Coalition (NGVC), D-8; American Methanol Institute (AMI), D-7; American Petroleum Institute (API), D-17; Electric Transportation Coalition (ETC), D-14; Engine Manufacturers Association (EMA), D-18; National Corn Growers Association (NCGA), D-9; National Propane Gas Association (NPGA), D-5; Propane Consumers Coalition (PCC), D-6; Renewable Fuels Association (RFA), D-2. \2\5 Commission's Rulemaking Record No. R311002. Comments from nongovernmental sources were coded ``D''; comments from governmental agencies were coded ``E.'' --------------------------------------------------------------------------- A. Scope 1. Alternative Fuels To help determine which fuels should be addressed by the proposed rule, the Commission requested comment on which alternative fuels are presently available for consumer use.26 The comments stated that compressed and liquefied natural gas (``CNG'' and ``LNG,'' respectively),27 ethanol,28 methanol,29 liquefied petroleum gas (``LPG''),30 electricity,31 coal-derived liquid fuels,32 reformulated petroleum,33 and soy diesel34 are all alternative fuels presently available for consumer use. In response to a separate question, several comments also addressed the composition, means of production, and the costs and benefits involved in utilizing alternative fuels for transportation.35 --------------------------------------------------------------------------- \2\6 58 FR at 64915. In the Fuel Rating Rule proceeding, the Commission had identified six commercially-available liquid alternative fuels: methanol; denatured ethanol; M85 (85% methanol, 15% gasoline); E85 (85% denatured ethanol, 15% gasoline); liquefied natural gas (LNG); and liquefied petroleum gas (LPG). 58 FR 16464, 16464, Mar. 26, 1993. \2\7 AAMA, D-3, 1; AGA/NGVC, D-8, 4-5 (CNG and LNG); API, D-17, 2-3 (LNG); Boston Edison, D-11, 9 (CNG and LNG); Chicago, E-4, 1 (CNG); DOE, E-10, 2 (CNG); DOT/NHTSA, E-2, 1 (CNG); EIA/OIAF, E-3, 1; Ford, D-10, 1; Mobil, D-16, 1 (CNG); NCGA, D-9, 1 (CNG); RFA, D- 2, 2 (CNG); Sun, D-13, 1 (CNG and LNG). \2\8 AAMA, D-3, 1 (E85); API, D-17, 2-3; Boston Edison, D-11, 9; Chicago, E-4, 1; DOE, E-10, 2 (E85); EIA/OIAF, E-3, 1; Ford, D-10, 1 (E85); Minnesota, E-8, 1; Mobil, D-16, 1 (E85 through E100); NCGA, D-9, 1; RFA, D-2, 2 (E85); Sun, D-13, 1 (E85). \2\9 AAMA, D-3, 1 (M85 and M100); AMI, D-7, 1 (M85, M100G for gasoline engines, and M100D for diesel engines); API, D-17, 2-3; DOE, E-10, 2 (M85); Boston Edison, D-11, 9; EIA/OIAF, E-3, 1; Ford, D-10, 1 (M85 and M100); Minnesota, E-8, 1; Mobil, D-16, 1 (M85 through M100); NCGA, D-9, 1; RFA, D-2, 2 (M85); Sun, D-13, 1 (M85). \3\0 AAMA, D-3, 1; API, D-17, 2-3; Boston Edison, D-11, 9 (propane); DOE, E-10, 2; EIA/OIAF, E-3, 1; Ford, D-10, 1; Mobil, D- 16, 1; NCGA, D-9, 1; NPGA, D-5, 1; RFA, D-2, 2; Sun, D-13, 1. \3\1 AAMA, D-3, 1; API, D-17, 2-3; Boston Edison, D-11, 9; Chicago, E-4, 1; DOE, E-10, 2; EIA/OIAF, E-3, 1; ETC, D-14, 1; Ford, D-10, 1; Mobil, D-16, 1; NCGA, D-9, 1; Sun, D-13, 1. \3\2 API, D-17, 2-3. \3\3 Boston Edison, D-11, 9. Reformulated gasoline, however, may not constitute an alternative fuel for purposes of the statute because it is merely a reformulation of conventional gasoline. See 42 U.S.C.A. 13211(2) (West Supp. 1993) (alternative fuels are ``substantially not petroleum''). \3\4 Chicago, E-4, 1. \3\5 AAMA, D-3, Att. 2; AGA/NGVC, D-8, 4-5; Boston Edison, D-11, 7; ETC, D-14, 1-3; Mobil, D-16, 1; NPGA, D-5, 1-3; RFA, D-2, 2-3. --------------------------------------------------------------------------- The Commission also asked whether the scope of its labeling requirement should be limited to presently available alternative fuels.36 Sixteen comments addressed this issue: Seven recommended that coverage be limited to presently available alternative fuels,37 three recommended that coverage not be limited to such fuels,38 and six recommended that the Commission adopt an approach flexible enough to cover new alternative fuels as they become commercially available.39 --------------------------------------------------------------------------- \3\6 58 FR 64914, 64915, Dec. 10, 1993. \3\7 Boston Edison, D-11, 9; Chicago, E-4, 2; EIA/EEU-ISD, E-9, 2; EIA/OIAF, E-3, 1; EMA, D-18, 2; Mobil, D-16, 2; RFA, D-2, 3. \3\8 DOE, E-10, 3 (coverage should also extend to M100 and E100); NPGA, D-5, 3 (coverage should extend to presently ``recognized'' alternative fuels); PCC, D-6, 1 (coverage should extend to all alternative fuels specified in EPA 92, including any that the DOE Secretary designates). \3\9 AAMA, D-3, 1; API, D-17, 3; EIA/EDID, E-1, 1; ETC, D-14, 3; Ford, D-10, 1; NCGA, D-9, 1. --------------------------------------------------------------------------- Because not every alternative fuel is dispensed from a conventional fuel pump (e.g., electricity is dispensed from a recharging unit), the Commission requested comment regarding how such alternative fuels should be labeled.40 No comments provided specific suggestions on this point. ETC and Ford stated that only public recharging stations should be labeled.41 Six other commenters stated that all such refueling stations should be labeled to help consumers choose the correct fuel for their engines.42 Mobil stated that ``it is moot as to where the data should be labeled'' because ``labeling of information that is not technically proven is not recommended at this time.''43 NPGA suggested that no comparative information be disclosed for alternative fuels because comparative information is not needed when refueling.44 --------------------------------------------------------------------------- \4\058 FR 64914, 64915, Dec. 10, 1993. \4\1ETC, D-14, 4 (requiring private electrical outlets to be labeled would be ``impractical''; however, new, EV-only outlets and public recharging facilities should be labeled); Ford, D-10, 1 (``[o]nly public alternative fueling (or recharging) stations should be covered''). Ford stated that ``[t]he types of labels should be consistent for all types of fuel dispensers,'' but did not indicate why the labeling requirement should be limited to public stations. \4\2AAMA, D-3, 2; API, D-17, 3; Boston Edison, D-11, 9; Chicago, E-4, 2; EIA/EDID, E-1, 2; EMA, D-18, 2. \4\3Mobil, D-16, 3. \4\4NPGA, D-5, 3. --------------------------------------------------------------------------- 2. Alternative Fueled Vehicles To address the Commission's responsibility to issue labeling requirements for AFVs (to the extent practicable), the Commission sought comment on whether it should require labeling for all or only some AFVs.45 Fifteen of the twenty-one responsive comments stated that all dedicated and dual fueled vehicles should be covered.46 Three comments recommended that medium and heavy-duty, commercial vehicles be excluded from coverage because these vehicles are custom ordered by purchasers well informed about the operating costs and performance of their planned purchase.47 --------------------------------------------------------------------------- \4\558 FR at 64915. \4\6AGA/NGVC, D-8, 7; API, D-17, 4; Boston Edison, D-11, 10; Chicago, E-4, 2; DOE, E-10, 3; EIA/EDID, E-1, 2; EIA/EEU-ISD, E-9, 2; ETC, D-14, 4; Flxible, D-4, 2; Ford, D-10, 1; Honda, D-15, 5; PCC, D-6, 2; RFA, D-2, 3; Sun, D-13, 2; WDNR, E-7, 1. EIA/OIAF suggested that AFV's available for purchase by ``the public'' (i.e., individual purchasers or fleet owners) should be labeled. That comment did not explain the reason for this formulation. EIA/OIAF, E-3, 1. \4\7EMA, D-18, 1-2; GM, D-12, 1; Volvo/GM, D-1, 1. --------------------------------------------------------------------------- AAMA, Honda and Mobil, without explaining how the Commission could otherwise satisfy the statutory directive, recommended that no vehicles be subjected to a labeling requirement.48 AAMA stated that all the relevant information necessary for making comparisons among AFVs is already available on existing vehicle labels.49 Honda stated that labeling should be postponed until the market and infrastructure are more developed.50 Mobil stated that until such time as scientifically sound data can be published, made available for public comment, and accepted by the appropriate governmental agencies, labeling of fuels or vehicles with benefit and cost claims appears to be an inappropriate action.51 --------------------------------------------------------------------------- \4\8AAMA, D-3, 2; Mobil, D-16, 3. Ford and GM indicated that they supported AAMA's comments. Ford, D-10, 1; GM, D-12, 1. \4\9AAMA, D-3, 2. \5\0Honda, D-15, 7. \5\1Mobil, D-16, 3. --------------------------------------------------------------------------- The Commission also requested comment regarding whether its labeling requirements should extend to vehicles converted to use alternative fuels ``after market'' (i.e., after sale of the vehicles by original equipment manufacturers).52 Eighteen comments addressed this issue. Twelve said that coverage should extend to all aftermarket conversions because all AFVs should be subjected to the same labeling requirements.53 Five comments stated that labeling requirements would be difficult, and perhaps unnecessary, for vehicles already owned and operated.54 --------------------------------------------------------------------------- \5\258 FR 64914, 64915, Dec. 10, 1993. \5\3AAMA, D-3, 2; Boston Edison, D-11, 10; Chicago, E-4, 3; EIA/ EEU-ISD, E-9, 2; EIA/EDID, E-1, 2; Flxible, D-4, 2; Honda, D-15, 4- 5; NCGA, D-9, 2; NPGA, D-5, 4; PCC, D-6, 2; RFA, D-2, 3 (but only a portion of the information required of new vehicles should appear on the label); Sun, D-13, 2. DOT/NHTSA stated that it is considering labeling information for CNG-powered vehicles, and that this information ``would be equally applicable if the container is fitted to a new vehicle or a converted vehicle.'' DOT/NHTSA, E-2, 1. \5\4AGA/NGVC, D-8, 8; DOE, E-10, 3-4; EIA/OIAF, E-3, 1; ETC, D- 14, 4; Ford, D-10, 1. --------------------------------------------------------------------------- B. Labeling Disclosures As noted previously, the cost and benefit information required by the Commission's labeling rule must be ``appropriate,'' ``useful,'' and ``timely.''55 None of those terms, however, is defined in EPA 92. In its ANPR, the Commission thus sought comment addressing three issues concerning the information to be disclosed in its labeling requirements. --------------------------------------------------------------------------- \5\542 U.S.C.A. 13232(a) (West Supp. 1993). --------------------------------------------------------------------------- First, the Commission sought comment on whether it should target required labeling to a particular audience of consumers (e.g., individual purchasers or fleet owners).56 In response, eight comments indicated that the Commission should not target particular market segments.57 RFA stated that the information required on vehicle labels should be easily understandable by all consumers.58 AAMA, however, stated that the information should be targeted to individual consumers (presumably as opposed to fleet owners) ``so that consumers can make reasonable choices.''59 --------------------------------------------------------------------------- \5\658 FR at 64915. \5\7AGA/NGVC, D-8, 8; Boston Edison, D-11, 11; Chicago, E-4, 4; EIA/EDID, E-1, 2; ETC, D-14, 5; Mobil, D-16, 3; NPGA, D-5, 4; PCC, D-6, 2. \5\8RFA, D-2, 3. \5\9AAMA, D-3, 2. This comment did not further explain why the Commission's labeling requirements should target this audience. --------------------------------------------------------------------------- Second, the Commission sought comment on what information consumers would need to compare different alternative fuels and AFVs.60 To compare conventional fuels (i.e., gasoline and diesel) with alternative fuels, the comments stated that information regarding the following would be important: price,61 emissions,62 mileage,63 energy content,64 domestic content (i.e., the percentage of the fuel derived from domestic natural resources),65 and hazards, if any.66 The comments further stated that information about similar factors would help consumers choose among different alternative fuels.67 --------------------------------------------------------------------------- \6\058 FR 64915. \6\1AGA/NGVC, D-8, 9-10, 12; ETC, D-14, 5; Mobil, D-16, 4; NPGA, D-5, 5; PCC, D-6, 2-3. \6\2Boston Edison, D-11, 6, 12-14; Chicago, E-4, 4; ETC, D-14, 5; NPGA, D-5, 5. \6\3Chicago, E-4, 4; NPGA, D-5, 5. \6\4AGA/NGVC, D-8, 9-10, 12; ETC, D-14, 5. \6\5Boston Edison, D-11, 6, 12-14; Chicago, E-4, 4; ETC, D-14, 5. \6\6Boston Edison, D-11, 12; Chicago, E-4, 4. \6\7Fuel cost: AMI, D-7, 3; DOE, E-10, 3; ETC, D-14, 6; EIA/EEU- ISD, E-9, 1; Mobil, D-16, 4; emissions: NPGA, D-5, 5; AMI, D-7, 3; and ETC, D-14, 6; composition: AMI, D-7, 3; octane or cetane rating: AMI, D-7, 3; EMA, D-18, 2; Nebraska AFAC, E-6, 2; domestic content: NCGA, D-9, 2; health and safety: NCGA, D-9, 2; EMA, D-18, 2; Nebraska AFAC, E-6, 2; WDNR, E-7, 1; refueling access and ease: ETC, D-14, 6; usage limitations: ETC, D-14, 6; EMA, D-18, 2; usage requirements: ETC, D-14, 6. --------------------------------------------------------------------------- To compare conventional vehicles with AFVs, the comments stated that consumers will need cost information relating to the fuel, initial vehicle price, and vehicle operation and maintenance.68 In addition to cost, the comments stated that information on the following additional factors would be useful: emissions;69 fuel type;70 mileage;71 average tank, fuel or storage unit capacity;72 refueling time;73 cruising range;74 availability and access to refueling stations and facilities;75 safety;76 resale value;77 and tax consequences.78 --------------------------------------------------------------------------- \6\8AGA/NGVC, D-8, 10-11; API, D-17, 5; Chicago, E-4, 4; ETC, D- 14, 5-6; PCC, D-6, 4. \6\9AGA/NGVC, D-8, 10-11; API, D-17, 5; Chicago, E-4, 4; ETC, D- 14, 5-6; NPGA, D-5, 5; PCC, D-6, 4; RFA, D-2, 3-4. \7\0API, D-17, 5; ETC, D-14, 5-6. \7\1Chicago, E-4, 4; NPGA, D-5, 5; RFA, D-2, 3-4. \7\2RFA, D-2, 3-4. \7\3API, D-17, 5. \7\4API, D-17, 5; PCC, D-6, 4; RFA, D-2, 3-4. \7\5API, D-17, 5; NPGA, D-5, 5; PCC, D-6, 4. \7\6Chicago, E-4, 4; PCC, D-6, 4. \7\7ETC, D-14, 5-6; PCC, D-6, 4. \7\8API, D-17, 5. API did not specify what those consequences would be. --------------------------------------------------------------------------- The comments stated that comparing different AFVs would require an evaluation of the same factors.79 For those comparisons, the comments also indicated that consumers will need to know the AFV's price,80 maintenance costs,81 passenger and cargo space,82 vehicle performance,83 and fuel composition.84 Three comments also stated that consumers will need telephone numbers for additional sources of information about alternative fuels and AFVs.85 --------------------------------------------------------------------------- \7\9Fuel type: AAMA, D-3, 1-2; AMI, D-7, 4-5; DOT/NHTSA, E-2, 2; EIA/EEU-ISD, E-9, 1; Flxible, D-4, 2; Honda, D-15, 3-4; NCGA, D-9, 2; Nebraska AFAC, E-6, 1; WDNR, E-7, 1; fuel economy: AAMA, D-3, 1- 2; AMI, D-7, 4-5; DOE, E-10, 4; Honda, D-15, 3-4; NPGA, D-5, 5; Sun, D-13, 2; WDNR, E-7, 1; fuel cost: AAMA, D-3, 1-2; AMI, D-7, 4-5; DOT/NHTSA, E-2, 2; EIA/OIAF, E-3, 1; Honda, D-15, 3-4; Nebraska AFAC, E-6, 1; Sun, D-13, 2; emissions certification: AAMA, D-3, 1-2; AMI, D-7, 4-5; EIA/EDID, E-1, 2-3; EIA/EEU-ISD, E-9, 1; ETC, D-14, 6; Nebraska AFAC, E-6, 1; NPGA, D-5, 5; WDNR, E-7, 1; cruising range: DOE, E-10, 4; EIA/OIAF, E-3, 1; ETC, D-14, 6; Honda, D-15, 3- 4; Sun, D-13, 2; WDNR, E-7, 1; fuel tank capacity: EIA/EEU-ISD, E-9, 1; Sun, D-13, 2; safety: EIA/EDID, E-1, 2-3; NCGA, D-9, 2; Nebraska AFAC, E-6, 1; refueling ease and access: ETC, D-14, 6; Nebraska AFAC, E-6, 1; NPGA, D-5, 5; refueling time: DOE, E-10, 4; EIA/OIAF, E-3, 1. \8\0AAMA, D-3, 1-2; EIA/EDID, E-1, 2-3; ETC, D-14, 6. \8\1AMI, D-7, 4-5; EIA/EDID, E-1, 2-3; Nebraska AFAC, E-6, 1. \8\2EIA/EEU-ISD, E-9, 1; ETC, D-14, 6. \8\3EIA/EDID, E-1, 2-3; ETC, D-14, 6; Nebraska AFAC, E-6, 1. \8\4Nebraska AFAC, E-6, 1. The comments further indicated that consumers will need to know whether the vehicle has been converted to alternative fuel operation and, if so, the identity of the manufacturer of the conversion kit and the installer of the system. AAMA, D-3, 1-2; AMI, D-7, 4-5; NCGA, D-9, 2. One comment stated that consumers will need to know the expected battery life for electric vehicles. EIA/OIAF, E-3, 1. \8\5EIA/EEU-ISD, E-9, 1; Minnesota, E-8, 2-3; NCGA, D-9, 2. --------------------------------------------------------------------------- Third, the Commission sought comment on the information that should be disclosed (as opposed to merely what is relevant) to consumers to help them make reasonable purchasing choices and comparisons.86 The most frequently mentioned factor to be disclosed on fuel dispensers was unit pricing information comparing the cost of the fuel to a standard unit (e.g., a gallon of gasoline).87 Other factors included health and safety information,88 and fuel type (or name),89 rating (octane or cetane, as appropriate),90 emissions,91 energy content,92 principal ingredient,93 and quantity purchased.94 Boston Edison stated that the labels should identify the percentage of fuel that comes from domestic sources.95 The Minnesota Department of Agriculture said there is no need to mandate labels on the fuel dispenser itself because ``[w]hen the fuel is being sold by private marketers, they will provide the most appropriate labeling for any individual marketplace.''96 --------------------------------------------------------------------------- \8\658 FR 64914, 64915, Dec. 10, 1993. \8\7AAMA, D-3, 2; AMI, D-7, 3; Boston Edison, D-11, 12; DOE, E- 10, 3; EIA/EEU-ISD, E-9, 2; ETC, D-14, 7; Mobil, D-16, 5; PCC, D-6, 3. \8\8EMA, D-18, 3; EMA, D-18, 3; ETC, D-14, 7; Nebraska, E-6, 2; NHTSA, E-2, 2; WDNR, E-7, 2. \8\9AAMA, D-3, 2; AMI, D-7, 3; API, D-17, 4-5; EIA/EEU-ISD, E-9, 2; Nebraska, E-6, 2; NHTSA, E-2, 2; Sun, D-13, 1. \9\0AMI, D-7, 3; EMA, D-18, 3; Nebraska, E-6, 2. \9\1AMI, D-7, 3; Boston Edison, D-11, 12. \9\2AGA/NGVC, D-8, 9-10 (labels should compare ``the amount of energy in different fuels by indicating the quantity * * * of different fuels needed to equal the energy content in gasoline''); Boston Edison, D-11, 11 (the British Thermal Unit ``provides the most accurate unit of measure that can be used to evaluate the relative merits of each type of fuel''). \9\3AMI, D-7, 3. \9\4EIA/EEU-ISD, E-9, 2. \9\5Boston Edison, D-11, 12. \9\6Minnesota, E-8, 3. --------------------------------------------------------------------------- As to vehicle labeling, the comments recommended that information regarding cost,97 emissions,98 fuel economy,99 safety,100 fuel type,101 and performance (e.g., cruising range)102 be disclosed on a label on the vehicle. Other suggested disclosures included domestic content of the fuel,103 ownership type (individual or fleet),104 tank capacity,105 and fuel availability.106 Two comments recommended certain disclosures for AFVs, but did not specify where the required information should be disclosed (i.e., on a label, in a fact sheet, or elsewhere).107 API suggested that the Commission develop a brochure for consumers disclosing pertinent information.108 --------------------------------------------------------------------------- \9\7AGA/NGVC, D-8, 9-10; AMI, D-7, 5; Boston Edison, D-11, 12; EIA/EDID, E-1, 2; EIA/EEU-ISD, E-9, 2; EIA/OIAF, E-3, 1; ETC, D-14, 7; RFA, D-2, 4. \9\8AGA/NGVC, D-8, 10-11; Boston Edison, D-11, 12; EIA/EEU-ISD, E-9, 2; ETC, D-14, 7; RFA, D-2, 4; WDNR, E-7, 2. \9\9AMI, D-7, 5; DOE, E-10, 4; RFA, D-2, 4; Sun, D-13, 2; WDNR, E-7, 2. \1\00EIA/EDID, E-1, 2-3; EIA/EEU-ISD, E-9, 2; NHTSA, E-2, 2; WDNR, E-7, 2. \1\01AMI, D-7, 4; API, D-17, 6; EIA/EEU-ISD, E-9, 2; Flxible, D- 4, 2; Minnesota, E-8, 3; NHTSA, E-2, 2; WDNR, E-7, 2. \1\02Boston Edison, D-11, 12; EIA/EDID, E-1, 2; EIA/EEU-ISD, E- 9, 2; EIA/OIAF, E-3, 1; RFA, D-2, 4; WDNR, E-7, 2. \1\03Boston Edison, D-11, 12; RFA, D-2, 4. \1\04WDNR, E-7, 2. \1\05EIA/EEU-ISD, E-9, 2; RFA, D-2, 4. DOE recommended refueling time and refueling frequency. DOE, E-10, 4. \1\06EIA/EEU-ISD, E-9, 2. \1\07Chicago, E-4, 4 (alternative fuel mix ratio, economic advantages, energy efficiency, environmental performance, miles/ alternative fuel gallon); NCGA, D-9, 2 (domestic content, renewable content, Global Warming Index rating, health/safety information). \1\08API, D-17, 5. The suggested brochure would disclose ``relative fuel costs, maintenance costs, operational costs, emissions reductions, possible tax consequences, and the type of fuel needed to power an AFV.'' --------------------------------------------------------------------------- C. Updating Labeling Disclosures Because EPA 92 requires the Commission to update its labeling requirements ``periodically,'' the Commission sought comment on how frequently it should update its labeling requirements.109 Eight comments stated that the Commission should review its labeling requirements at regular intervals (i.e., either annually,110 or every two,111 three,112 or five to ten years).113 Other comments indicated that the Commission should update labels only when necessary to reflect practical developments in technology.114 Mobil stated that label updating should reflect fuel cost changes.115 --------------------------------------------------------------------------- \1\09 58 FR 64914, 64915, Dec. 10, 1993. \1\10 AGA/NGVC, D-8, 13; Boston Edison, D-11, 16; DOE, E-10, 4; EIA/OIAF, E-3, 1. \1\11 Chicago, E-4, 4-5; ETC, D-14, 8. \1\12 AMI, D-7, 5. \1\13 RFA, D-2, 5. \1\14 NCGA, D-9, 3; NPGA, D-5, 6. \1\15 Mobil, D-16, 5. --------------------------------------------------------------------------- D. Consolidation Finally, the Commission sought comment regarding section 406(a)'s direction that the Commission consolidate its labels with other labels providing information to consumers ``where appropriate.''116 Four comments suggested that the required information could be consolidated with existing fuel economy labels.117 Five other comments suggested that consolidation would be difficult or would provide no benefit to consumers.118 One comment stated that these labeling requirements should not duplicate existing labels.119 --------------------------------------------------------------------------- \1\16 42 U.S.C.A. 13232(a) (West Supp. 1993). \1\17 AGA/NGVC, D-8, 13; EPA, E-5, 5 (consolidation with EPA labels should be ``investigate[d]''); Ford, D-10, 1; NPGA, D-5, 6. \1\18 API, D-17, 7; DOE, E-10, 4; Mobil, D-16, 6; NCGA, D-9, 3; RFA, D-2, 5. \1\19 ETC, D-14, 8. --------------------------------------------------------------------------- III. Proposed Labeling Rule In developing its labeling proposal, the Commission is required to reconcile several competing concerns. As noted previously, EPA 92 directs the Commission to develop uniform labels disclosing appropriate cost and benefit information.120 However, in determining what information is appropriate, it must consider the problems associated with developing and publishing such information.121 The information to be disclosed also must be displayed on simple labels.122 Given this context, and after considering the comments, the Commission proposes separate labeling requirements for alternative fuels and AFVs, to become effective 90 days after publication of a final rule in the Federal Register. Because few consumers have extensive experience with either alternative fuels or AFVs, the Commission's proposal is designed to be of use to a general consumer audience. --------------------------------------------------------------------------- \1\20 42 U.S.C.A. 13232(a) (West Supp. 1993). \1\21Id. \1\22Id. --------------------------------------------------------------------------- A. Alternative Fuel Labeling For the fuel labeling requirement, the Commission proposes that retailers of non-liquid alternative fuels post standard labels identifying the commonly used names of those fuels on fuel dispensers and recharging stations servicing consumers. The labels would be placed conspicuously in full view of consumers and as near as reasonably practical to the fuel's unit price. The Commission also proposes requiring disclosure of the fuel's principal component and permitting disclosure of other components, expressed as minimum percentages. These proposals are analogous to provisions in the Fuel Rating Rule pertaining to liquid alternative fuels.123 The Commission requests comment on the feasibility of such disclosures and how they may best be accomplished. The Commission also seeks comment on whether a different measure of content (e.g., requiring disclosure of voltage for electricity) would be more appropriate. --------------------------------------------------------------------------- \1\23 58 FR at 41374 (to be codified at 16 CFR 306.10(b)(1) and 306.10(f)). --------------------------------------------------------------------------- CNG, electricity, and hydrogen are the only non-liquid fuels defined as ``alternative fuels'' in EPA 92.124 Although section 406(a) directs the Commission to issue labeling requirements for ``alternative fuels'' (presumably for all such fuels), the liquid alternative fuels currently are subject to similar requirements imposed by the Fuel Rating Rule. In accordance with section 406(a)'s directive to review the rule ``periodically to reflect the most recent available information,''125 the Commission will supplement the list of covered fuels as new non-liquid alternative fuels are designated as alternative fuels by DOE. --------------------------------------------------------------------------- \1\24 42 U.S.C.A. 13211(2) (West Supp. 1993). \1\25 42 U.S.C.A. 13232(a) (West Supp. 1993). --------------------------------------------------------------------------- The Commission developed this relatively simple labeling requirement for fuel dispensers after considering how it might best balance consumers' need for useful and timely cost and benefit information with the problems associated with displaying such information in a simple label format. The requirement provides consumers with the most important pieces of information needed when refueling: Fuel type and composition. Although in the absence of this requirement sellers could be expected to identify the fuel sold, they may not do so in a standardized format. The Commission believes that a standardized format assists consumers in identifying the proper fuel.126 Furthermore, it is uncertain whether they would provide information regarding the precise composition of the fuel. --------------------------------------------------------------------------- \1\26 Comments stating that fuel type (or name) should be disclosed are cited at note 89. --------------------------------------------------------------------------- In addition, comparative information at the fuel pump is unlikely to be necessary in most instances. For consumers with dedicated AFVs (i.e., vehicles capable of operating on only one fuel), the selection process between competing fuels is concluded once an AFV is acquired. Consumers driving dual or flexible fueled vehicles (i.e., vehicles capable of being powered both by a conventional and an alternative fuel) will be limited to purchasing fuels meeting their engines' requirements (one being gasoline, with which consumers are already familiar and which is already labeled with pertinent information). Thus, providing consumers with information comparing various types of alternative fuels is best done prior to the time the vehicle is acquired. There also are reasons to avoid requiring additional, less important information. One consideration is the avoidance of information overload. In contrast to vehicle purchases, consumers' fuel purchases typically occur in a quick transaction. In a Report to Congress assessing the need for a uniform national label on fuel pumps, the Commission noted that time constraints may affect how consumers read, understand, and use information.127 Indeed, ``studies show that less accurate information processing occurs under time constraints; test subjects focus on fewer pieces of information and unduly emphasize negative information.''128 Simplicity therefore is a greater consideration in labeling of fuels than in the labeling of AFVs. --------------------------------------------------------------------------- \1\27Federal Trade Commission, Study Of A Uniform National Label For Devices That Dispense Automotive Fuels to Consumers (1993) (hereinafter FTC Study), at 29. \1\28Id. at 29 n.152. --------------------------------------------------------------------------- To avoid cluttering labels further, the Commission also believes that it should not consolidate these labels with other mandatory labels or require otherwise duplicative disclosures.129 For example, a labeling proposal that the National Conference on Weights and Measures (``NCWM''), a consensus standards-writing organization for state and local regulatory agencies, is considering would require that retail CNG dispensers display the quantity of CNG in gallons-of-gasoline equivalents to help consumers compare the price of CNG to gasoline.130 --------------------------------------------------------------------------- \1\29See ETC, D-14, 7-8 (AFV labels should not duplicate existing labels). \1\30U.S. Department of Commerce, National Institute of Standards and Technology, Report of the 78th National Conference on Weights and Measures 229-33 (1993). --------------------------------------------------------------------------- The proposed labeling requirement also has the advantage of placing equal regulatory requirements on all competing fuels.131 The Fuel Rating Rule's labeling requirements cover only liquid alternative fuels. Although that Rule serves a different purpose,132 the Commission believes that harmonizing labeling requirements, when practicable, is appropriate.133 Fuel Rating Rule labels for liquid alternative fuels must identify the commonly used name of the fuel and the amount, expressed as a minimum percentage by volume, of the fuel's principal component.134 That Rule also permits disclosure of other components, also expressed as a minimum percentage.135 The Commission is proposing disclosure of the same information for non- liquid alternative fuels. The Commission further proposes that the alternative fuels labels follow the same size and format requirements of the Fuel Rating Rule.136 The Commission also seeks comment regarding how the components of those fuels can be calculated or expressed. --------------------------------------------------------------------------- \1\31RFA, D-2, 5 (labeling should extend to all alternative fuels, as that term is defined in EPA 92, sold to consumers); Sun, D-13, 1 (same). \1\32The purpose of the EPA 92 amendments to title II of the Petroleum Marketing Practices Act, 15 U.S.C. 2821-2825, was to give purchasers information they need to choose the correct type or grade of fuel for their vehicles. 58 FR at 41356. \1\33See API, D-17, 4, 8 (labels required by Fuel Rating Rule provide sufficient information); RFA, D-2, 5 (same); Sun, D-13, 1 (fuel descriptor labels should apply to all available alternative fuels). Retailers of liquid alternative fuels have additional responsibilities under the Fuel Rating Rule, e.g., posting consistent with rating certified to retailer and maintaining required records. See 58 FR at 41374 (to be codified as 16 CFR 306.10(d) and 306.11). The Commission believes that those requirements are beyond the scope of its mandate under Section 406(a). \1\3458 FR at 41373 (to be codified at 16 CFR 306.0(j)((2)). \1\35Id. \1\3658 FR at 41375 (to be codified at 16 CFR 306.12). Labels required by the Fuel Rating Rule are 3 inches wide by 2\1/2\ inches long, with process black type on an orange background. --------------------------------------------------------------------------- B. AFV Labeling For the AFV labeling requirement, the Commission proposes that original equipment manufacturers (``OEMs'') and AFV conversion companies affix, and AFV dealers maintain,137 standard labels on new AFVs sold or offered for sale to consumers.138 The labels would consist of three parts. The first part would disclose fuel tank capacity of the labeled AFV; the second part would contain a list of comparative factors relevant to AFVs in general; and the third part would direct consumers to other sources of information. --------------------------------------------------------------------------- \1\37EPA's fuel economy label is required to be affixed and maintained in a similar fashion. 46 U.S.C. 2006. \1\38The term ``consumer'' is not defined in EPA 92. The Commission proposes that ``consumer'' be defined as a person (i.e., an individual, corporation, or any other business organization) purchasing a new AFV from a dealer or AFV conversion company (i.e., not directly from the manufacturer as a special order). See GM, D- 12, 1 (medium and heavy-duty trucks should be excluded from proposed rule's scope because most are custom ordered); Volvo/GM, D-1, 1 (heavy duty trucks, because they are custom ordered, should be excluded). The Commission seeks comment on this definition. --------------------------------------------------------------------------- As noted previously, the Commission believes that comparative information would be most useful to consumers prior to the time the vehicle is purchased. In developing its proposal for AFV labeling, the Commission considered requiring disclosure of information pertaining to all the factors cited in the comments, including fuel and/or operating costs and environmental impact (i.e., emissions). Information about those factors would clearly help consumers make purchasing choices, assuming the information was accurate, understandable and comparable. For most of those factors, however, the Commission has tentatively decided that the level of detail necessary to convey balanced, accurate information to consumers cannot be contained on the ``simple'' label envisioned by Congress. For example, an accurate assessment of the life-cycle environmental impact of driving a particular vehicle requires a review of numerous factors, including emissions resulting from fuel production, distribution, handling, storage, dispensing, and combustion.139 Measuring each of those factors itself requires an analysis of numerous chemical compounds, including carbon monoxide, nitrogen oxides, hydrocarbons, chlorofluorocarbons, volatile organic carbons, radioactive particles, particulate matter, and aerosols. Similarly, evaluating the true costs associated with driving a particular AFV would require information about the vehicle's acquisition (i.e., capital costs in acquiring or converting an AFV) and operation (e.g., fuel costs, repair and maintenance costs, and any tax consequences).140 All of this information cannot be presented accurately on a simple label. --------------------------------------------------------------------------- \1\39Assessing only tail-pipe emissions could be easier, but potentially misleading because of the significance of the environmental impact involved in, for example, fuel production. \1\40See, e.g., 26 U.S.C.A. 30, 179A (West Supp. 1993) (creating tax credits for qualified electric vehicles and deductions for clean-fuel vehicles and certain refueling property). --------------------------------------------------------------------------- Other cost-benefit information (e.g., comparing reliability by measuring each alternative fuel's ability to start a cold engine) is also difficult to disclose on a simple label because no technical standards exist for measuring some factors.141 The Commission often relies on consensus standards-setting organizations, such as the American Society for Testing and Materials (``ASTM''), or governmental agencies with engineering and technical expertise to develop such standards.142 Here, the comments did not identify any such standards, and the Commission is not otherwise aware that standards exist for all the factors. Without standards upon which to base required disclosures, the information manufacturers would provide would not necessarily be comparable, and this could be confusing to consumers. --------------------------------------------------------------------------- \1\41Some comments stated that the supporting data on alternative fuels in general are ``controversial, ambiguous or misleading,'' Minnesota, E-8, 3, or ``still unproven,'' Mobil, D-16, 2-3, 5. \1\42See, e.g., 16 CFR 306.0(a), (b) (octane rating based on ASTM specifications); 16 CFR 305.5 (appliance labeling based on DOE test procedures). --------------------------------------------------------------------------- EPA 92 also requires DOE to produce a brochure that provides consumers with ``relevant and objective'' comparative information about AFVs and alternative fuels, including environmental performance, energy efficiency, domestic content, cost, maintenance requirements, reliability, and safety.143 DOE's information package also must include information regarding conversion of conventional vehicles to run on alternative fuels.144 The brochure format will allow DOE latitude to present valuable information in fuller measure. Accordingly, there is less need for the Commission to attempt to present complex information in the constrained format of an AFV label. --------------------------------------------------------------------------- \1\4342 U.S.C.A. 13231 (West Supp. 1993). DOE's information package must be completed within 18 months after EPA 92's enactment date (April 1994) and updated annually ``to reflect the most recent available information.'' Id. \1\44Id. --------------------------------------------------------------------------- As with labeling for alternative fuels, the Commission also believes that it should not consolidate these labels with other mandatory labels or require otherwise duplicative disclosures. For AFV labeling, EPA has proposed that its fuel economy labels (which display estimated miles per gallon and annual fuel cost information) be affixed on AFVs powered by CNG, ethanol, and methanol.145 For dual fueled vehicles operating on these or conventional fuels, the proposed regulations would require that fuel economy data be provided only for the conventional fuels; manufacturers would be given the option of posting such data for the alternative fuels.146 EPA also has been directed to promulgate rules that require fuel economy labeling for vehicles powered by LPG, hydrogen, electricity, and other alternative fuels.147 Rules requiring disclosure of information about emissions certification148 and safety149 are also in effect or under active consideration by other governmental bodies. Because consumers will have immediate access to this information in other required labels, the Commission believes that providing the same information on its AFV labels (in a different format) could confuse consumers, and is not thus appropriate. --------------------------------------------------------------------------- \1\4556 FR 8856, 8860, 8869-71, Mar. 1, 1991; EPA, E-5, 2-4. \1\4656 FR at 8861; EPA, E-5, 3-4. EPA expects that these regulations will be issued ``in the near future.'' EPA, E-5, 5. \1\4715 U.S.C.A. 2006 (West Supp. 1993). \1\48EPA currently requires emissions certification labels (which state that the vehicle conforms to applicable EPA regulations) for certain 1994 model year AFV's powered by methanol. See 40 CFR 86.094-35(c)(1)(ii)(A) (light duty vehicles); 40 CFR 86.094-35(c)(1)(ii)(B)(1) (light duty trucks). In California, state regulations require that AFV's powered by CNG, ethanol, methanol, and LPG, and conventional vehicles converted to run on any of these fuels, also carry such labels. Section 1965, Title 13, California Code of Regulations (CCR); California Air Resources Board Mail-Out No. 93-34. \1\49The National Highway Traffic Safety Administration (NHTSA) has proposed requiring a permanent label on CNG storage tanks disclosing the name and address of the tank manufacturer, the month and year of manufacture, and the maximum service pressure. 58 FR 5323, Jan. 21, 1993. NHTSA is also considering whether it should require labeling as to the need for periodic reinspection of the CNG container, the need to remove the container from service after its useful life, and the proper fill pressure for refueling the container. DOT/NHTSA, E-2, 1. --------------------------------------------------------------------------- As noted previously, EPA 92 directs the Commission to update its labeling requirements ``periodically to reflect the most recent available information.''150 The Commission therefore intends to monitor the industry as standards for evaluating other relevant objective factors are developed. As those standards are issued by recognized organizations and agencies, the Commission expects to update this part of the AFV labeling requirements accordingly. --------------------------------------------------------------------------- \1\5042 U.S.C.A. 13232(a) (West Supp. 1993). --------------------------------------------------------------------------- Based on the above considerations, the Commission proposes a labeling requirement containing three parts: (1) Disclosure of fuel tank capacity, (2) a list of factors consumers should consider in purchasing AFVs, and (3) a notice directing consumers to other sources of information. 1. Disclosure of Fuel Tank Capacity Section 406(a) mandates that the labels disclose cost and benefit information. One principal piece of cost-benefit information is cruising range.151 To help consumers estimate this from available data,152 the Commission proposes that fuel tank capacity be calculated and displayed for each AFV sold or offered for sale to consumers. Fuel tank capacity would be expressed in gallons for AFVs powered by liquid alternative fuels, and the Commission seeks comment on how it should be disclosed for gaseous and electric powered AFVs.153 --------------------------------------------------------------------------- \1\51See notes 74 and 102, and accompanying text. Several comments stated that related considerations (e.g., fuel tank capacity and refueling time) are important in their own right. See notes 72, 73, 79, and 105 and accompanying text. \1\52For AFVs with EPA fuel economy labels, cruising range can be estimated by multiplying fuel tank capacity by the posted miles- per-gallon rating for that vehicle. \1\53For AFVs capable of operating on both alternative and conventional fuels, the labels would disclose the capacity of the tank or battery storing the alternative fuel. For AFVs capable of operating on multiple alternative fuels, the labels would disclose the capacity of the tank or battery storing each alternative fuel. --------------------------------------------------------------------------- 2. List of Comparative Factors The second part of the proposed label would provide consumers with a standard framework for evaluating issues relevant to AFVs in general. Information contained on this part could help consumers evaluate information disclosed on other labels, in advertising, and from other sources. The Commission has tentatively determined that requiring disclosure of a list of issues relevant to AFVs in general will help consumers make choices and comparisons. The Commission also expects that this aspect of its labeling requirement will encourage AFV manufacturers, converters, and dealers to provide additional information to meet consumers' expectations and needs.154 --------------------------------------------------------------------------- \1\54See Boston Edison, D-11, 13 (``market forces will create incentives for sellers to identify and respond to consumer demands for information''). --------------------------------------------------------------------------- The AFV label would contain a form notice stating, in substance, that vehicles powered by different fuels have different costs and benefits, and that consumers should consider those differences when considering an AFV purchase. The label would then list factors consumers should consider before purchasing an AFV.155 Based on the comments received, the Commission proposes that the second part of the AFV label identify the following six factors: fuel type (i.e., the fuel or fuels that power the vehicle); operating costs; environmental impact; health and safety; on-road performance (i.e., cruising range, cold start capability and refueling time); and fuel availability. --------------------------------------------------------------------------- \1\55In an unrelated context, the Commission has previously concluded that a list of purchasing considerations could convey useful information to consumers. See Used Motor Vehicle Trade Regulation Rule, Statement of Basis and Purpose, 49 FR 45692, 45706, Nov. 19, 1984 (list of major defects that can occur in used motor vehicles provides consumers with a framework for evaluating and comparing warranty coverage and counteracts dealer misrepresentations). --------------------------------------------------------------------------- Each factor would be supplemented with a brief explanation of how it is relevant to an AFV purchase. For example, for fuel type, the label would contain a statement that AFVs are designed to be powered by a certain fuel or fuels, and that consumers should be aware of which fuel(s) powers that particular AFV. For operating costs, the label would state that the total cost of operating an AFV includes, among other things, fuel and maintenance costs, and that those costs for AFVs are different than for gasoline-fueled vehicles and can vary considerably. The label would also advise consumers that if the vehicle posts an EPA alternative fuel-economy rating (``AFER''),156 they can estimate their fuel costs per mile by dividing their fuel cost (obtained from alternative fuel retailers) by the AFER. --------------------------------------------------------------------------- \1\56As noted previously, for dual fueled vehicles, EPA's proposed regulations would give manufacturers the option of posting fuel economy data for the alternative fuel. See note 149 and accompanying text. --------------------------------------------------------------------------- For environmental impact, the labels would state that all vehicles (conventional and AFVs) affect the environment in ways both direct (e.g., how the vehicle processes the fuel) and indirect (e.g., how the fuel is produced and brought to market). Accordingly, in evaluating the environmental impact of a particular AFV, consumers should consider all environmental costs associated with driving a vehicle powered by that alternative fuel, as well as any benefits as compared to gasoline. The other factors would follow a similar format. For health and safety, the labels would notify consumers that different fuels raise different health and safety concerns. As a result, consumers should consider any health and safety issues associated with normal driving and refueling, and in the event of an accident. For on-road performance, the labels would advise consumers that vehicles powered by different fuels will differ in terms of their cruising range (i.e., how many miles the vehicle will go on a full supply of fuel), cold start capabilities (i.e., ability to start a cold engine) and refueling and/ or recharging time (i.e., how long it will take to refill the vehicle's fuel tank to full capacity). For fuel availability, the labels would advise consumers to determine whether a refueling and/or recharging infrastructure has been developed for the AFV under consideration which meets their driving needs. 3. Direction to Other Sources of Information The third part of the proposed label would direct consumers to additional sources of objective information regarding AFVs. Several comments stated that information not required to be disclosed by the Commission would be available to consumers in DOE's information package.157 However, EPA 92 does not require AFV dealers or conversion companies to provide consumers with copies of the DOE information package or to notify them of its availability. Accordingly, the third part of the proposed label would contain a statement informing consumers that further information about alternative fuels and AFVs is available from DOE.158 --------------------------------------------------------------------------- \1\57See AAMA, D-3, 2; Ford, D-10, 2; GM, D-12, 1. \1\58See ETC, D-14, 8 (labels could include cross-references to availability of DOE brochures); Minnesota, E-8, 3 (brochures with general consumer information, including phone numbers of additional information resources, could be made available at the point of purchase). --------------------------------------------------------------------------- 4. Label Size With respect to label size, the Commission has tentatively determined that a label larger than the fuel pump label is needed to accommodate the greater number of required disclosures. Accordingly, the Commission proposes requiring that AFV labels be 7\1/2\ inches wide by 11 inches high. This is the same size as the labels required by the Commission's Used Car Rule, which have adequate room to display effectively a large amount of information.159 --------------------------------------------------------------------------- \1\59Labels required by the Used Car Rule are no smaller than 11 inches high by 7\1/4\ inches wide in black type on a white background. 16 CFR 455.2(a)(2). --------------------------------------------------------------------------- IV. Invitation to Comment The Commission invites interested persons to address any questions of fact, law, or policy that they believe may bear upon the proposed rule. The Commission particularly desires comment, however, on the questions listed below. All comments should reference the aspect of the proposed rule or question being discussed. Comments opposing the proposed rule or specific provisions should, if possible, suggest a specific alternative. Proposals for alternative regulations should include reasons and data explaining why the alternative would better serve the purposes of EPA 92 and section 406(a). Before adopting a final rule, consideration will be given to any written comments timely submitted to the Commission. Comments submitted will be available for public inspection in accordance with the Freedom of Information Act160 and the Commission's Rule of Practice,161 during normal business days from 8:30 a.m. to 5 p.m., at the Public Reference Room, room 130, Federal Trade Commission, 6th and Pennsylvania Ave., NW., Washington, DC 20580. --------------------------------------------------------------------------- \1\605 U.S.C. 552. \1\6116 CFR 4.11. --------------------------------------------------------------------------- A. Proposed Labeling Rule 1. Alternative Fuel Labeling The Commission is proposing that retailers of non-liquid alternative fuels post standard labels identifying the commonly used names of those fuels on fuel dispensers and on recharging stations selling to consumers. (a) Should the Commission issue its proposal for labeling of non- liquid alternative fuels as a final rule? If yes, why; if no, why not? (b) What are the advantages of the Commission's proposal? (c) What costs or problems are associated with the Commission's proposal? How might the Commission modify its proposal to minimize any such costs or problems, while maintaining the benefits? (d) Would any disclosures specified by law (either federal, state, or local) affect the Commission's alternative-fuels labeling proposal? (e) Should the Commission require any additional or alternative disclosures, or variations on the proposed disclosures? (1) If yes: (a) Why? (b) What should be disclosed? (c) Are there any adequate, generally accepted standards upon which to base those disclosures? (d) What are those standards? (e) What costs or problems are associated with this option? (f) How might the Commission modify its proposal to minimize any such costs or problems, while maintaining the benefits? (2) If no, why not? The Fuel Rating Rule requires that the standard labels for liquid alternative fuels identify the amount of the fuel's principal component, and permits disclosure of other components, expressed as minimum percentages by volume. The Commission is proposing this requirement for non-liquid alternative fuels. (f) Should the Commission require disclosure of the principal component of the non-liquid alternative fuels, and permit disclosure of other components, expressed as minimum percentages? (1) If yes: (a) Why? (b) What are the benefits of such a requirement? (c) What are the principal components of each of the non- liquid alternative fuels? (d) Do the compositions of the non-liquid alternative fuels vary from supplier to supplier? (e) How should information about those components be calculated and displayed? (f) What costs or problems are associated with requiring such a disclosure? (g) How might the Commission minimize any such costs or problems, while maintaining the benefits? (2) If no: (a) Why not? (b) Is disclosure of a different measure of content more appropriate (e.g., requiring disclosure of voltage for electricity)? (c) What should that disclosure be, and why? (g) Should the Commission require any additional or alternative disclosures, or variations on the proposed disclosures? (1) If yes: (a) Why? (b) What should be disclosed? (c) Are there any adequate, generally accepted standards upon which to base those disclosures? (d) What are those standards? (e) What costs or problems are associated with this option? (f) How might the Commission modify its proposal to minimize any such costs or problems, while maintaining the benefits? (2) If no, why not? The Commission proposes that the labels for the non-liquid alternative fuels follow the same size and format required by the Fuel Rating Rule for liquid alternative fuels. (h) Should the Commission require the same size and format in its labeling for non-liquid alternative fuels as required by the Fuel Rating Rule for liquid alternative fuels? The Commission proposes that labeling requirements for alternative fuels become effective 90 days after publication of a final rule in the Federal Register. (i) Does the proposed effective date allow affected interests sufficient time to comply with the proposed requirements? (1) If yes, why? (2) If no: (a) Why not? (b) How much extra time would be necessary to comply with the proposed labeling requirements for alternative fuels? Why is that extra time necessary? 2. AFV Labeling The Commission proposes that OEMs and AFV conversion companies selling or offering to sell AFVs to consumers affix, and that dealers maintain, standard labels on the vehicles disclosing that particular AFV's fuel tank capacity, a list of issues relevant to AFVs in general, and a statement informing consumers that further information about alternative fuels and AFVs is available from DOE. (a) Should the Commission issue its proposal for AFV labeling as a final rule? If yes, why; if no, why not? (b) What are the advantages of the Commission's proposal? (c) What costs or problems are associated with the Commission's proposal? How might the Commission modify its proposal to minimize any such costs or problems, while maintaining the benefits? (d) Would any disclosures specified by law (either federal, state, or local) affect the Commission's AFV labeling proposal? (e) Is fuel tank capacity a useful measure for consumer comparisons? (1) If yes: (a) Why? (b) Will this information be provided by OEMs and AFV conversion companies in the absence of a regulatory requirement? (c) Will disclosure of fuel tank capacity help consumers calculate or estimate cruising range or any other important purchasing criteria? If so, which purchasing criteria? (d) Is measuring fuel tank capacity in gallons appropriate for AFVs powered by liquid fuels? (e) How should fuel tank capacity be measured for AFVs powered by gaseous fuels or electricity? (2) If no, why not? (f) Is a list of six issues relevant to AFVs in general on the AFV label sufficient to alert consumers to issues they should consider before purchasing an AFV? (1) If yes: (a) Why? (b) Should the factors include the types of statements the Commission outlined for each factor in Part III(B)(2)? (2) If no, why not? (g) Should the AFV label notify consumers of the availability of DOE's information package? Why or why not? (h) Should the Commission require any additional or alternative disclosures, or variations on the proposed disclosures? (1) If yes: (a) Why? (b) What should be disclosed? (c) Are there any adequate, generally accepted standards upon which to base those disclosures? (d) What are those standards? (e) What costs or problems are associated with this option? (f) How might the Commission modify its proposal to minimize any such costs or problems, while maintaining the benefits? (2) If no, why not? The Commission proposes that the term ``consumer'' be defined as a person (i.e., an individual, corporation, or any other business organization) purchasing a new AFV from a dealer or AFV conversion company (i.e., not directly from the manufacturer as a special order). (i) Is the Commission's proposed definition of ``consumer'' consistent with section 406(a)'s mandate and purpose? (1) If yes, why? (2) If no: (a) Why not? (b) How should the definition be modified to reflect more accurately section 406(a)'s mandate and purpose? (c) Should the Commission exclude used AFV purchases from the scope of the proposed rule? Why or why not? The Commission proposes that the labels for AFVs be of the same size and format as the labels required by the Commission's Used Car Rule. (j) Should the Commission require the same size label in its AFV labeling as required by the Commission's Used Car Rule? (k) Should the Commission specify other format issues, such as layout and type size? The Commission proposes that AFV labeling requirements become effective 90 days after publication of a final rule in the Federal Register. (l) Does the proposed effective date allow affected interests sufficient time to comply with the proposed requirements? (1) If yes, why? (2) If no: (a) Why not? (b) How much extra time would be necessary to comply with the proposed requirements? Why is that extra time necessary? B. Regulatory Flexibility Act The Regulatory Flexibility Act (``RFA'')162 requires agencies to prepare regulatory flexibility analyses when publishing proposed rules163 unless the proposed rule, if promulgated, would not have a ``significant economic impact on a substantial number of small entities.''164 Here, the economic impact of both proposed requirements appears to be de minimis; the Commission proposes no recordkeeping requirements,165 and the proposed disclosures consist of information that is basic and easily ascertainable. The Commission tentatively concludes that the proposed rule also will not affect a substantial number of small entities because information the Commission currently possesses indicates that relatively few companies currently sell alternative fuels or manufacture, convert, or sell AFVs. Of those that manufacture or sell AFVs, most are not ``small entit[ies]'' as that term is defined either in section 601 of RFA166 or applicable regulations of the Small Business Administration.167 --------------------------------------------------------------------------- \1\62 5 U.S.C. 601-612. \1\63 5 U.S.C. 603(a). \1\64 5 U.S.C. 605(b). \1\65 In 1993 the Commission certified that the Fuel Rating Rule's requirements that retailers post labels and keep required records would not have a significant impact. 58 FR 41356, 41371, Aug. 3, 1993. \1\66 5 U.S.C. 601(6). \1\67 13 CFR Part 121. --------------------------------------------------------------------------- In light of the above, the Commission certifies that the proposed rule would not, if promulgated, have a significant impact on a substantial number of small entities and, therefore, that a regulatory analysis is not necessary. The Commission requests comment on this certification, and whether the proposed rule will have a significant impact on a substantial number of small entities. After reviewing any comments received on this subject, the Commission will decide whether the preparation of a final regulatory-flexibility analysis is appropriate. C. Regulatory Review The Commission has implemented a program to review all of its current and proposed rules and guides. One purpose of the review is to minimize the economic impact of new regulatory actions. As part of that overall regulatory review, the Commission solicits comments on the following questions: 1. What changes, if any, should be made to the Proposed Rule to increase the benefits of the Rule to purchasers? a. How would these changes affect the costs the Proposed Rule would impose on firms subject to its requirements? 2. What significant burdens or costs, including costs of compliance, will the Proposed Rule impose on firms subject to its requirements? a. Will the Proposed Rule provide benefits to such firms? 3. What changes, if any, should be made to the Proposed Rule to reduce the burdens or costs that would be imposed on firms subject to its requirements? a. How would these changes affect the benefits provided by the Proposed Rule? D. Paperwork Reduction Act If promulgated, the Commission's labeling requirements would not involve the ``collection of information'' as defined by the regulations of the Office of Management and Budget (``OMB'')168 implementing the Paperwork Reduction Act (``PRA'').169 Because the Commission's proposed rule contains disclosure requirements only, there is no ``information collection'' in this proceeding to submit to OMB for clearance. However, to ensure the accuracy of its conclusion, the Commission solicits comment on any paperwork burden that the public believes the proposed requirements may impose. --------------------------------------------------------------------------- \1\685 CFR 1320.7(c). \1\6944 U.S.C. 3501-3520. --------------------------------------------------------------------------- E. Metric Usage The metric measurement system is the preferred system of weights and measures for United States trade and commerce.170 Federal law requires federal agencies to use the metric measurement system in all procurements, grants and other business-related activities (including rulemakings), except to the extent that such use is impractical or likely to cause significant inefficiencies or loss of markets to United States firms.171 The Commission has identified one section of the proposed rule with a potential for use of metric terms. Specifically, the Commission is proposing that AFV labels disclose fuel tank capacity in gallons. The Commission seeks comment on whether to require metric or dual (i.e., metric and non-metric) units for this disclosure. --------------------------------------------------------------------------- \1\7015 U.S.C. 205b. See also Exec. Order No. 12,770, 56 FR 35801, July 21, 1991 (implementing section 205b). \1\71Id. --------------------------------------------------------------------------- F. Public Participation 1. Public Workshop-Conference The Commission's staff will conduct a Public Workshop-Conference to discuss written comments received in response to this Notice of Proposed Rulemaking. The purpose of the conference is to afford Commission staff and interested parties an opportunity to discuss and explore issues raised in the rulemaking proceeding, and, in particular, to examine publicly areas of significant controversy or divergent opinions that are raised in the written comments. The conference is not intended to achieve a consensus of opinion among participants or between participants and Commission staff with respect to any issue raised in the rulemaking proceeding. Commission staff will consider the views and suggestions made during the conference, in conjunction with its consideration of the written comments, in formulating its final recommendation to the Commission concerning the proposed rule. Persons interested in participating in the Public Workshop- Conference must notify Commission staff by June 8, 1994 (the ``Public Workshop notification date'') as directed under the heading ADDRESSES, above. Commission staff will select a limited number of parties from among those who submit both requests to participate and written comments to represent significant interests affected by the proposed rule. These parties will participate in an open discussion of the issues. The selected parties may ask and answer questions based on their respective comments. In addition, the conference will be open to the general public. Members of the general public who attend the conference may have an opportunity to make a brief oral statement presenting their views on issues raised in the rulemaking proceeding. Oral statements of views by members of the general public will be limited to a few minutes in length. The time allotted for these statements will be determined on the basis of the time allotted for discussion of the issues by the selected parties, as well as by the number of persons who wish to make statements. If the number of parties who request to participate in the Public Workshop-Conference is so large that it would inhibit effective discussion among the participants, then Commission staff will select as the participants a limited number of parties to represent the interests of those who submit written comments. The selections will be made on the basis of the following criteria: 1. The party submits a written comment by the comment due date. 2. The party notifies Commission staff of its interest and authorization to represent an affected interest by the Public Workshop notification date. 3. The party's attendance would promote a balance of interests being represented at the conference. 4. The party's attendance would promote the consideration and discussion of the issues presented in the rulemaking proceeding. 5. The party has expertise in issues raised in the proposed rules. 6. The party adequately reflects the views of the affected interest(s) which it purports to represent. 7. The party has been designated by one or more interested parties (who timely file requests to participate and written comments) as a party who shares group interests with the designator(s). 8. The number of parties selected will not be so large as to inhibit effective discussion among them. If they wish, commenters may designate a specific party to represent their shared group interests in the Public Workshop-Conference. If it is necessary to limit the number of participants, those not selected to participate, but who submit both requests to participate and written comments, will be afforded an opportunity at the end of the session to present their views during a limited time period. The time allotted for these statements will be determined on the basis of the time necessary for discussion of the issues by the selected parties, as well as by the number of persons who wish to make statements. If any person cannot complete the presentation of his or her statements in the allotted time, that person will be allowed, within one week thereafter, to file a written statement covering those relevant matters that he or she did not present orally. Except for written statements submitted under these circumstances, written submissions will not be accepted after the comment due date. A neutral, third-party facilitator will be retained for the Public Workshop-Conference. The Public Workshop-Conference is currently scheduled to be held at the Federal Trade Commission, Pennsylvania Avenue at Sixth Street, NW., Washington, DC, on July 20-21, 1994. Prior to the conference, parties selected to participate in the Public Workshop-Conference will be provided with copies of written comments received in response to this Notice of Proposed Rulemaking. A transcript of the Public Workshop-Conference will be placed on the public record. 2. Supplemental Notice of Proposed Rulemaking After reviewing comments received in response to this notice, the transcript of the Public Workshop-Conference, and any other properly filed submissions, the Commission will publish a supplemental notice of proposed rulemaking in which it will propose the text of a labeling rule. The public will be given an additional opportunity to comment on that supplemental notice. 3. Motions or Petitions Any motions or petitions in connection with this proceeding must be filed with the Secretary of the Commission. Such motions or petitions will be transmitted to a Presiding Officer. The Presiding Officer will be responsible for the orderly conduct of the proceeding and shall have all powers necessary to that end, including the authority to rule on all motions or petitions. Applications for review of rulings by a Presiding Officer will not be entertained by the Commission prior to its review of the entire record in the rulemaking proceeding, unless the Presiding Officer certifies in writing to the Commission that a ruling involves a controlling question of law or policy as to which there is substantial ground for difference of opinion, and that an intermediate review of the ruling may materially advance the ultimate termination of the proceeding or that subsequent review will be an inadequate remedy. V. Communications by Outside Parties or Their Advisors Pursuant to Commission Rule of Practice 1.26(b)(5),172 communications with respect to the merits of this proceeding from any outside party to any Commissioner or Commissioner advisor during the course of this rulemaking shall be subject to the following treatment: Written communications, including written communications from members of Congress, shall be forwarded promptly to the Secretary for placement on the public record. Oral communications, not including oral communications from members of Congress, are permitted only when such oral communications are transcribed verbatim or summarized at the discretion of the Commissioner or Commissioner advisor to whom such oral communications are made and are promptly placed on the public record, together with any written communications and summaries of any oral communications relating to such oral communications. Oral communications from members of Congress shall be transcribed or summarized at the discretion of the Commissioner or Commissioner advisor to whom such oral communications are made and promptly placed on the public record, together with any written communication and summaries of any oral communications relating to such oral communications. --------------------------------------------------------------------------- \1\7216 CFR 1.26(b)(5). --------------------------------------------------------------------------- List of Subjects in 16 CFR Part 309 Alternative fuel, Alternative fueled vehicle, Labeling, Trade practices. Authority: 42 U.S.C.A. 13232(a) (West Supp. 1993). By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 94-11102 Filed 5-6-94; 8:45 am] BILLING CODE 6750-01-P