Short title

This Act may be cited as the

Future Accountability in Retail Fuel Act

or the

FAIR Fuel Act

Automatic temperature compensation equipment

(a)

In general

(1)

New motor fuel dispensers

Beginning 90 days after the issuance of final regulations under subsection (c), all motor fuel dispensers that are newly installed or upgraded at any retail fuel establishment in the United States shall be equipped with automatic temperature compensation equipment to ensure that any volume of gasoline or diesel fuel measured by such dispenser for retail sale is equal to the volume that such quantity of fuel would equal at the time of such sale if the temperature of the fuel was 60 degrees Fahrenheit. (2)

Existing motor fuel dispensers

Not later than 5 years after the issuance of final regulations under subsection (c), all motor fuel dispensers at any retail fuel establishment in the United States shall be equipped with the automatic temperature compensation equipment described in paragraph (1). (b)

Inspections

(1)

Annual inspection

Beginning on the date described in subsection (a), State inspectors conducting an initial or annual inspection of motor fuel dispensers are authorized to determine if such dispensers are equipped with the automatic temperature compensation equipment required under subsection (a). (2)

Notification

If the State inspector determines that a motor fuel dispenser does not comply with the requirement under subsection (a), the State inspector is authorized to notify the Federal Trade Commission, through an electronic notification system developed by the Commission, of such noncompliance. (3)

Follow-up inspection

Not earlier than 180 days after a motor fuel dispenser is found to be out of compliance with the requirement under subsection (a), the Federal Trade Commission shall coordinate a follow-up inspection of such motor fuel dispenser. (4)

Fine

(A)

In general

The owner or operator of any retail fuel establishment with a motor fuel dispenser subject to the requirement under subsection (a) that is determined to be out of compliance with such requirement shall be subject to a fine equal to $5,000 for each noncompliant motor fuel dispenser. (B)

Additional fine

If a motor fuel dispenser is determined to be out of compliance during a follow-up inspection, the owner or operator of the retail fuel establishment at which such motor fuel dispenser is located shall be subject to an additional fine equal to $5,000. (5)

Use of fines

Any amounts collected under paragraph (4) shall be deposited into the trust fund established under section 3. (c)

Defined term

In this Act, the term automatic temperature compensation equipment has the meaning given the term in the National Institute of Standards and Technology Handbook 44. (d)

Rulemaking

(1)

Commencement

Not later than 90 days after the date of the enactment of this Act, the Federal Trade Commission, in consultation with the National Institute of Standards and Technology, shall commence a rulemaking procedure to implement the requirement under subsection (a). (2)

Final regulations

Not later than 1 year after the date of the enactment of this Act, the Federal Trade Commission shall issue final regulations to implement the requirement under subsection (a), including specifying which volume correction factor tables shall be used for the range of gasoline and diesel fuel products that are sold to retail customers in the United States.

Automatic Temperature Compensation Equipment Grant Program

(a)

Establishment of trust fund

(1)

In general

There is established in the Treasury of the United States a trust fund to be known as the Automatic Temperature Compensation Equipment Trust Fund (referred to in this section as the Trust Fund). (2)

Transfers

The Secretary of the Treasury shall transfer to the Trust Fund out of the general fund of the Treasury an amount equal to the amount collected as fines under section 2(b)(4). (3)

Investment

The Secretary of the Treasury shall invest such portion of the Trust Fund as is not required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States. (b)

Grants authorized

(1)

In general

The Secretary of Commerce is authorized to use amounts in the Trust Fund for grants to owners and operators of retail fuel establishments to offset the costs associated with the installation of automatic temperature compensation equipment on motor fuel dispensers. (2)

Maximum amount

The Secretary may not award a grant under this subsection in excess of— (A)$1,000 per motor fuel dispenser; or (B)$10,000 per grant recipient. (3)

Ineligible companies

A major integrated oil company (as defined in section 167(h)(5) of the Internal Revenue Code of 1986) is ineligible to receive a grant under this subsection. (4)

Use of grant funds

Grant funds received under this subsection may be used to offset the costs incurred by owners and operators of retail establishments to acquire and install automatic temperature compensation equipment in accordance with the requirement under section 2(a). (5)

Authorization of appropriations

There are authorized to be appropriated such sums as may be necessary to carry out this subsection. (c)

Reimbursement of State inspection costs

The Secretary of Commerce is authorized to use amounts in the Trust Fund to reimburse States for the costs incurred by the States to— (1)inspect motor fuel dispensers for compliance with the requirement under section 2(a); and (2)notify the Secretary of Commerce of any noncompliance with such requirement.

Savings provision

(a)

In general

Nothing in this Act may be construed to preempt a State from enacting a law that imposes an equivalent standard or a more stringent standard concerning the retail sale of gasoline at certain temperatures. (b)

Defined term

In this section, the term equivalent standard means any standard that prohibits the retail sale of gasoline with energy content per gallon that is different than the energy content of 1 gallon of gasoline stored at 60 degrees Fahrenheit.