Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles |
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Donald S. Clark
Federal Register
June 1, 2011
[Federal Register Volume 76, Number 105 (Wednesday, June 1, 2011)]
[Proposed Rules]
[Pages 31513-31517]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-13520]
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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: Advance notice of proposed rulemaking.
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SUMMARY: The Commission seeks public comment on its Labeling
Requirements for Alternative Fuels and Alternative Fueled Vehicles
(``Alternative Fuels Rule'' or ``Rule''). As part of its systematic
review of all FTC rules and guides, the Commission requests public
comment on the overall costs, benefits, necessity, and regulatory and
economic impact of the Alternative Fuels Rule. The Commission also
seeks comment on whether to merge its alternative fueled vehicle (AFV)
labels with fuel economy labels proposed by the Environmental
Protection Agency (EPA) and the National Highway Traffic Safety
Administration (NHTSA); add new definitions for AFVs contained in
recent legislation; and change labeling requirements for used AFVs.
DATES: Written comments must be received on or before July 25, 2011.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Regulatory Review for
Alternative Fuels Rule, (16 CFR part 309, Matter No. R311002, Program
Code M04)'' on your comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/altfuelsreviewanpr, by following the
instructions on the Web-based form. If you prefer to file your comment
on paper, mail or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex
N), 600 Pennsylvania Avenue, NW, Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
600 Pennsylvania Avenue, NW., Washington, DC 20580, (202) 326-2889.
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 should 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.'' \2\ In addition, the required labels
must be ``simple and, where appropriate, consolidated with other labels
providing information to the consumer.'' \3\
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\1\ Public Law 102-486, 106 Stat. 2776 (1992).
\2\ 42 U.S.C. 13232(a).
\3\ Id. The provision also states that the Commission ``shall
give consideration to the problems associated with developing and
publishing useful and timely cost and benefit information, taking
into account lead time, costs, the frequency of changes in costs and
benefits that may occur, and other relevant factors.''
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In response to EPAct 92, the Commission published the Alternative
Fuels Rule in 1995, addressing both alternative fuels and AFVs.\4\ The
Rule requires labels on fuel dispensers for non-liquid alternative
fuels, such as electricity, compressed natural gas, and hydrogen.\5\
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).\6\ Examples of the fuel labels
appear below.
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\4\ 60 FR 26926 (May 19, 1995).
\5\ The Commission's Fuel Labeling Rule, 16 CFR Part 306,
addresses labeling for liquid alternative fuels, such as ethanol and
liquefied natural gas.
\6\ The Rule requires fuel importers, producers, or 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.
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[[Page 31514]]
[GRAPHIC] [TIFF OMITTED] TP01JN11.018
The Rule also 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.\7\ An example of the label for
new AFVs appears below. Labels for used AFVs contain only the general
buying factors and DOE/NHTSA contact information.\8\
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\7\ 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.
\8\ The general factors listed on the current label are
information concerning fuel type, operating costs, fuel
availability, performance, convenience, energy security, energy
renewability, and emissions. See 16 CFR Part 309, Appendix A.
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[GRAPHIC] [TIFF OMITTED] TP01JN11.019
II. Regulatory Review
The Commission is accelerating its regularly scheduled review of
the Alternative Fuels Rule, previously set for 2014, to ensure that
FTC-required vehicle labels and EPA fuel economy labeling requirements
are consistent. Regulatory reviews seek information about the costs and
benefits of rules and guides as well as their regulatory and economic
impact. The information obtained assists in identifying rules and
guides that warrant modification or rescission. As part of this review,
the Commission seeks comment on the current Alternative Fuels Rule.
Among other things, commenters should address the economic impact of,
and the continuing need for the Rule; the Rule's benefits to
alternative fuel and AFV purchasers; and burdens the Rule places on
firms subject to its requirements. In addition, the Commission seeks
comment on three specific issues related to the Rule (Section III
below) and response to general questions about the Rule (Section IV
below).
III. Specific Issues For Comment
In conducting this regulatory review, the Commission seeks comment
on the following three specific issues: (1) Whether to consolidate its
AFV labels with EPA/NHTSA fuel economy labels; (2) how to address new
definitions for AFVs that are contained in recent legislation; and (3)
whether to change labeling requirements for used AFVs.
A. EPA and NHTSA Fuel Economy Labels
The Commission requests comment on whether it should consolidate
its AFV labels with fuel economy labels recently proposed by EPA and
NHTSA to ensure consistency between the two.\9\ The proposed new fuel
economy labels apply to both conventional and alternative fuel
vehicles, including most AFVs subject to the FTC's labeling
requirements.\10\ The content of the proposed labels differs slightly
depending on the type of AFV, as described below.
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\9\ See 75 FR 58078 (Sept. 23, 2010).
\10\ 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 including those fueled by
liquefied petroleum gas, hydrogen, coal-derived liquid fuels, or
fuels (other than alcohol) derived from biological materials. See
http://www.fueleconomy,gov (availability of vehicle types).
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For various types of electric vehicles (including those operating
solely on batteries and those operating on a combination of battery and
conventional engine power) as well as compressed natural gas powered
vehicles, EPA's proposed labels disclose the vehicle's fuel economy,
CO2 and other emissions, cruising range, and estimated annual fuel
cost.\11\ The proposed labels also reference http://www.fueleconomy.gov, which provides comprehensive consumer information
about fuel economy and alternative fuels.
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\11\ EPA has requested comment on three different formats which
vary in their presentation of information.
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For ethanol-fueled vehicles, including flexible fuel vehicles
(FFVs) that operate on a combination of gasoline and ethanol, the EPA
proposed three label
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options: (1) Disclosing the fuel economy obtained using gasoline and a
statement that alternative fuel use will yield different results;\12\
(2) disclosing fuel economy for both gasoline and alternative fuel use
(e.g., E85); and (3) disclosing fuel economy for gasoline as well as
miles per gallon equivalent information for the alternative fuel.\13\
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\12\ According to the EPA, 99% of FFV owners run their vehicles
only on gasoline and never use alternative fuel. 75 FR at 58112.
\13\ According to EPA, miles per gallon of gasoline-equivalent
information provides a way to communicate the fact that E85 provides
greater miles per unit of energy than gasoline even though E85
provides lower miles per gallon. 75 FR at 58112. Although this
information may help some consumers, the Commission is concerned it
may mislead many others by implying that E85 will provide better
fuel economy (i.e., miles per gallon) than gasoline.
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In light of these proposals, the Commission seeks comment on
whether it is appropriate to consolidate its label with EPA's by
allowing use of the EPA label in lieu of FTC's. Although there are some
differences between the labels (e.g., the EPA label for ethanol FFVs
would not disclose cruising range), all of the EPA's proposed labels
provide vehicle-specific fuel economy information. The EPA's proposed
labels also would not include the general buying tips that appear on
the FTC's label, but would refer consumers to a website to obtain more
information about fuel economy and alternative fuels. The Commission,
therefore, requests comment on whether the EPA label accomplishes the
EPAct 92's goal of providing appropriate information regarding the
costs and benefits of AFVs and reasonably enabling consumers to make
choices and comparisons. Consolidating the FTC and EPA labels would
benefit consumers and industry by eliminating potential confusion
caused by duplicative and possibly inconsistent labels,\14\ and
reducing the burden on manufacturers to create and post two labels.
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\14\ For example, proposed consolidation would eliminate current
inconsistencies between cruising range values on FTC and EPA
electric vehicle labels. To address new electric vehicles introduced
before the completion of this rulemaking, the Commission has 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 http://www.ftc.gov/opa/2011/05/afr.shtm.
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B. Definition of Alternative Fueled Vehicles
The National Defense Authorization Act for Fiscal Year 2008
extended coverage of the EPAct 92 to hydrogen fuel cell motor vehicles
(as defined in 26 U.S.C. 30B (b)(3)), advanced lean burn technology
motor vehicles (as defined in 26 U.S.C. 30B(c)(3)), and hybrid motor
vehicles (as defined in 26 U.S.C. 30B(d)(3)). Specifically, it added
these three types of vehicles to the statutory definition of
``alternative fuel vehicle.'' \15\ Therefore, the Commission is now
considering how the Rule should address these vehicles. Because the
Alternative Fuels Rule already covers hydrogen fuel cell vehicles,
additional labeling requirements for them appear unnecessary.
Similarly, lean burn and hybrid vehicles already bear the EPA fuel
economy label because they qualify as conventional vehicles under that
program. Thus, it appears unlikely that new FTC labels for those models
would provide significant benefit. Accordingly, the Commission seeks
comment on whether to issue new labels for lean burn and hybrid
vehicles or, instead, to allow the EPA label on these vehicles in lieu
of a new FTC label.
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\15\ 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''). Congressional Record 153:147 (Oct. 1, 2007) p.
S12355.
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C. Used AFV Labels
The Commission seeks comment on whether to change the Rule's
labeling requirements for used AFVs.\16\ Currently, used AFVs must bear
labels with general tips and references to telephone numbers and
websites that provide additional information. However, these labels do
not contain any vehicle-specific information, such as cruising range.
Because these used vehicle labels provide limited information and are
likely to impose increasing burdens on used car dealers as the AFV
market expands, the Commission seeks comment on whether to retain the
requirement and, if so, whether to change the label's current content.
Commenters should address whether the used vehicle labels provide
``appropriate information''; whether the benefits to consumers justify
the burdens imposed on used vehicle dealers; and whether other
resources, such as http://www.fueleconomy.gov, provide used vehicle
shoppers with adequate information. Comments should also address
whether vehicle specific information (e.g., cruising range) is
appropriate for used AFV labels. For example, will an electric
vehicle's original cruising range estimate, as determined by the
manufacturer, remain valid when the vehicle is later sold in the used
market?
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\16\ 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 1994, the Commission determined that used AFV
labeling was ``appropriate'' because ``consumers would likely have
the same need for information, and would consider the same factors,
whether they were contemplating a new or used AFV acquisition.'' 60
FR at 26941.
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IV. General Questions for Comment
In addition to the specific issues discussed in Section II, the
Commission solicits comment on the following questions related to the
Rule:
(1) Is there a continuing need for the Rule as currently
promulgated? Why or why not?
(2) What benefits has the Rule provided to consumers? What evidence
supports the asserted benefits?
(3) What modifications, if any, should the Commission make to the
Rule to increase its benefits to consumers?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses, particularly small businesses?
(4) What impact, if any, has the Rule had on the flow of
appropriate information to consumers about alternative fuels and AFVs?
(5) What significant costs has the Rule imposed on consumers? What
evidence supports the asserted costs?
(6) What modifications, if any, should be made to the Rule to
reduce the costs imposed on consumers?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses, particularly small businesses?
(7) Please provide any evidence that has become available since
2005 concerning consumer perception of AFV and non-liquid alternative
fuel labeling. Does this new information indicate that the Rule should
be modified? If so, why, and how? If not, why not?
(8) Please provide any evidence that has become available since
2005 concerning consumer interest in alternative fuel and AFV labeling.
Does this new information indicate that the Rule should be modified? If
so, why, and how? If not, why not?
(9) What benefits, if any, has the Rule provided to businesses, and
in particular to small businesses? What evidence supports the asserted
benefits?
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(10) What modifications, if any, should be made to the Rule to
increase its benefits to businesses, and particularly to small
businesses?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses?
(11) What significant costs, including costs of compliance, has the
Rule imposed on businesses, particularly small businesses? What
evidence supports the asserted costs?
(12) What modifications, if any, should be made to the Rule to
reduce the costs imposed on businesses, particularly on small
businesses?
(a) What evidence supports your proposed modifications?
(b) How would these modifications affect the costs and benefits of
the Rule for consumers?
(c) How would these modifications affect the costs and benefits of
the Rule for businesses?
(13) What evidence is available concerning the degree of industry
compliance with the Rule? Does this evidence indicate that the Rule
should be modified? If so, why, and how? If not, why not?
(14) Are any of the Rule's requirements no longer needed? If so,
explain. Please provide supporting evidence.
(15) What modifications, if any, should be made to the Rule to
account for changes in relevant technology, including development of
new alternative fuels, or economic conditions?
(a) What evidence supports the proposed modifications?
(b) How would these modifications affect the costs and benefits of
the Rule for consumers and businesses, particularly small businesses?
(16) Does the Rule overlap or conflict with other federal, state,
or local laws or regulations? If so, how?
(a) What evidence supports the asserted conflicts?
(b) With reference to the asserted conflicts, should the Rule be
modified? If so, why, and how? If not, why not?
(c) Is there evidence concerning whether the Rule has assisted in
promoting national uniformity with respect to the rating, certifying,
and posting the rating of non-liquid alternative fuels and AFV
labeling? If so, please provide that evidence.
(17) Are there foreign or international laws, regulations, or
standards with respect to the rating, certifying, and posting the
rating of non-liquid alternative fuels and AFV labeling that the
Commission should consider as it reviews the Rule? If so, what are
they?
(a) Should the Rule be modified to harmonize with these foreign or
international laws, regulations, or standards? If so, why, and how? If
not, why not?
(b) How would such harmonization affect the costs and benefits of
the Rule for consumers and businesses, particularly small businesses?
V. Instructions for Comment Submissions
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before July 25, 2011.
Write ``Regulatory Review for Alternative Fuels Rule, (16 CFR part 309,
Matter No. R311002, Program Code M04)'' 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 http://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
Website.
Because your comment will be made public, you are solely
responsible for making sure that your comment does not include any
sensitive personal information, like 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). In particular, do
not include competitively sensitive information such as costs, sales
statistics, inventories, formulas, patterns, devices, manufacturing
processes, or customer names.
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).\17\ 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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\17\ 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. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/altfuelsreviewanpr, by following the instructions on the web-based
form. If this Notice appears at http://www.regulations.gov/#!home, you
also may file a comment through that website.
If you file your comment on paper, write ``Regulatory Review for
Alternative Fuels Rule, (16 CFR part 309, Matter No. R311002, Program
Code M04)'' 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 Website at http://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 July 25, 2011. You can find more information,
including routine uses permitted by the Privacy Act, in the
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2011-13520 Filed 5-31-11; 8:45 am]
BILLING CODE 6750-01-P