[Federal Register Volume 74, Number 39 (Monday, March 2, 2009)]
[Proposed Rules]
[Pages 9054-9056]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4282]


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FEDERAL TRADE COMMISSION

16 CFR Part 306


Automotive Fuel Ratings, Certification and Posting

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Request for public comments.

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SUMMARY: As part of the Commission's systematic review of all current 
FTC rules and guides, the Commission requests public comment on the 
overall costs, benefits, necessity, and regulatory and economic impact 
of the FTC's rule for ``Automotive Fuel Ratings, Certification and 
Posting'' (``Fuel Rating Rule'' or ``Rule'').

DATES: Written comments must be received by May 15, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Fuel Rating 
Rule Review, Matter No. R811005'' to facilitate the organization of 
comments. Please note that your comment--including your name and your 
state--will be placed on the public record of this proceeding, 
including on the publicly accessible FTC website, at (http://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as an individual'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. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should 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 Commission Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing

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material for which confidential treatment is requested must be filed in 
paper form, must be clearly labeled ``Confidential,'' and must comply 
with FTC Rule 4.9(c).\1\
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    \1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://secure.commentworks.com/ftc-fuelratingrulereview) (and following the 
instructions on the web-based form). To ensure that the Commission 
considers an electronic comment, you must file it on the web-based form 
at the weblink (https://secure.commentworks.com/ftc-fuelratingrulereview). If this Notice appears at (http://www.regulations.gov/search/index.jsp), you may also file an electronic 
comment through that website. The Commission will consider all comments 
that regulations.gov forwards to it. You may also visit the FTC website 
at http://www.ftc.gov to read the Notice and the news release 
describing it.
    A comment filed in paper form should include the ``Fuel Rating Rule 
Review, Matter No. R811005'' reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission/Office of the Secretary, Room H-135 (Annex M), 
600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions.
    The Federal Trade Commission Act (``FTC Act'') and other laws 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, 
whether filed in paper or electronic form. Comments received will be 
available to the public on the FTC website, to the extent practicable, 
at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of 
discretion, the Commission makes every effort to remove home contact 
information for individuals from the public comments it receives before 
placing those comments on the FTC website. More information, including 
routine uses permitted by the Privacy Act, may be found in the FTC's 
privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Matthew Wilshire, (202) 326-2976, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

I. Background

    The Fuel Rating Rule establishes standard procedures for 
determining, certifying, and posting, by means of a label on the fuel 
dispenser, the automotive fuel rating of liquid automotive fuels, 
including liquid alternative fuels. The Commission first promulgated 
the Rule (then titled the ``Octane Certification and Posting Rule'') in 
1979 in accordance with the Petroleum Marketing Practices Act 
(``PMPA'') (15 U.S.C. 2821 et seq.). (44 FR 19160 (Mar. 30, 1979)). The 
Rule originally only applied to gasoline. In 1993, in response to 
amendments to the PMPA, the Commission expanded the scope of the Rule 
to cover liquid alternative fuels, including, but not limited to, 
methanol, denatured ethanol, liquefied natural gas, and coal-derived 
liquid fuels. (58 FR 41356 (Aug. 3, 1993)). In 2008, the Commission 
again amended the Rule to incorporate the specific labeling 
requirements for biodiesel, biomass-based diesel, and blends thereof 
(collectively, ``biodiesel fuels'') required by Section 205 of the 
Energy Independence and Security Act of 2007 (42 U.S.C. 17021). (73 FR 
40154 (July 11, 2008)).
    The Fuel Rating Rule designates methods for rating, certifying, and 
posting the rating of automotive fuels at the point of sale. The Rule 
requires that refiners, importers, and producers of any liquid 
automotive fuel determine that fuel's ``automotive fuel rating'' before 
transferring it to a distributor or retailer. For gasoline, the fuel 
rating is the octane rating. For alternative fuels other than biodiesel 
fuels, the rating is the minimum percentage of the principal component 
of the fuel. For biodiesel fuels, it is the percentage of biodiesel or 
biomass-based diesel in the fuel. In addition, any covered entity, 
including a distributor, that transfers a fuel must provide a 
certification of the fuel's rating to the transferee either by 
including it in papers accompanying the transfer or by letter. Finally, 
the Rule requires retailers to post the fuel rating by adhering a label 
to the retail fuel pump. The Rule sets forth precise specifications 
regarding the content, size, color, and font of the labels.

II. Regulatory Review Program

    The Commission reviews all current Commission rules and guides 
periodically. These reviews seek information about the costs and 
benefits of the Commission's rules and guides as well as their 
regulatory and economic impact. The information obtained assists the 
Commission in identifying rules and guides that warrant modification or 
rescission. Therefore, the Commission solicits comments on, among other 
things, the economic impact of, and the continuing need for, the Fuel 
Rating Rule; the benefits of the Rule to purchasers of automotive 
fuels; and the burdens the Rule places on firms subject to its 
requirements.

III. Request for Comment

    The Commission solicits comments on the following specific 
questions related to the Fuel Rating 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 has the Rule had on the flow of truthful 
information to consumers and on the flow of deceptive information to 
consumers?
    (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 
1993

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concerning consumer perception of fuel rating labels. 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 
1993 concerning consumer interest in particular fuel rating issues. 
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?
    (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, and 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 potentially unfair or deceptive practices concerning the 
rating, certifying, and posting of the rating of automotive fuels, if 
any, are not covered by the Rule?
    (a) What evidence demonstrates the existence of such practices?
    (b) With reference to such practices, should the Rule be modified? 
If so, why, and how? If not, why not?
    (16) What modifications, if any, should be made to the Rule to 
account for changes in relevant technology, including development of 
new liquid 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?
    (17) 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 consistency with respect to the rating, certifying, 
and posting the rating of automotive fuels? If so, please provide that 
evidence.
    (18) Are there foreign or international laws, regulations, or 
standards with respect to the rating, certifying, and posting the 
rating of automotive fuels that the Commission should consider as it 
reviews the Rule? If so, what are they?
    (a) Should the Rule be modified in order 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?

List of Subjects in 16 CFR Part 306

    Fuel ratings, Trade practices.

    Authority: 15 U.S.C. 2801 et seq; 42 U.S.C. 17021
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. E9-4282 Filed 2-27-09: 8:45 am]
BILLING CODE 6750-01-S