[Congressional Record Volume 155, Number 110 (Tuesday, July 21, 2009)]
[Senate]
[Pages S7782-S7783]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. McCASKILL:
  S. 1476. A bill to require all new and upgraded fuel pumps to be 
equipped with automatic temperature compensation equipment, and for 
other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mrs. McCASKILL.
  Mr. President, today I am here to talk about a simple bill that would 
correct a serious injustice.
  Each year U.S. consumers spend $2.57 billion more than they should 
for gasoline and diesel fuel. This is because they are buying hot fuel. 
The physics behind hot fuel are fairly simple. Retailers currently 
measure our gasoline as it if is stored at 60 degrees Fahrenheit. 
However, if the temperature increases, as it often does during the 
summer or in warm climates, the gasoline expands so that consumers are 
getting less energy per gallon of fuel. Yet, when consumers buy hot 
fuel, they are paying the same amount even though they are getting less 
energy.
  This problem can be easily solved by installing temperature 
compensating equipment that will regulate the distribution of fuel 
based on its temperature at the time of purchase. A similar policy was 
implemented in Canada 15 years ago because retailers were losing money 
due to the cold temperature of the fuel they were selling; and earlier 
this year, the U.S. retailer Costco Warehouse, LLC agreed to install 
this temperature compensating equipment as a result of a legal 
settlement.
  Today, I am introducing legislation that would require all retailers 
of gasoline to install temperature compensating equipment on their 
retail fuel pumps. The Future Accountability in Retail Fuel Act of 
2009, or the FAIR Fuel Act, is not intended to be onerous. It would 
simply require that within 6 years after enactment of this legislation 
all retail gasoline pumps would include automatic temperature 
compensating equipment. Prior to that 6 year timeline, if a retailer 
replaces their pumps, they must replace it with a pump that will be 
able to compensate for temperature fluctuations. Rural retail gasoline 
owners are exempt from this replacement requirement and the bill 
provides grant assistance for small retail owners to retrofit or 
purchase pumps with temperature compensating equipment.
  American families deserve to be treated fairly. They deserve to get 
what they pay for. With the current economic crisis and the high prices 
of gasoline, every penny we can save the consumer will go along way to 
helping them survive these tough times. This legislation will help to 
achieve this goal. It will finally give consumers the fairness they 
deserve.
  I am pleased that this bill has been endorsed by the Owner-Operator 
Independent Drivers Association, OOIDA, USPIRG and Consumer Watchdog. I 
look forward to working with the members of the Commerce Committee and 
the full Senate in getting this legislation passed. I think we owe it 
to the American consumers.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1476

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Future Accountability in 
     Retail Fuel Act'' or the ``FAIR Fuel Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Automatic temperature compensation equipment.--The term 
     ``automatic temperature compensation equipment'' has the 
     meaning given the term in the National Institute of Standards 
     and Technology Handbook 44.
       (2) Equivalent standard.--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.
       (3) Rural area.--The term ``rural area'' means any area 
     other than--
       (A) a city, town, or unincorporated area that has a 
     population of greater than 50,000 inhabitants; or
       (B) the urbanized area that is contiguous and adjacent to 
     such a city, town, or unincorporated area.
       (4) Small-volume station.--The term ``small-volume 
     station'' means any retail fuel establishment that dispenses 
     fewer than 360,000 gallons of gasoline and diesel fuel per 
     year.

     SEC. 3. AUTOMATIC TEMPERATURE COMPENSATION EQUIPMENT.

       (a) In General.--
       (1) New motor fuel dispensers.--Beginning 180 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

[[Page S7783]]

     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.--
       (A) In general.--Except as provided in subparagraph (B), 
     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) Small-volume stations.--Small-volume stations located 
     in rural areas shall not be subject to the requirement under 
     subparagraph (A).
       (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 4.
       (c) 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.

     SEC. 4. 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 3(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) Eligible recipients.--An owner or operator of not more 
     than 5 retail fuel establishments is eligible 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 3(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 3(a); and
       (2) notify the Secretary of Commerce of any noncompliance 
     with such requirement.

     SEC. 5. SAVINGS PROVISION.

       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.
                                 ______