[Federal Register Volume 81, Number 232 (Friday, December 2, 2016)]
[Rules and Regulations]
[Pages 86914-86915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29006]


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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: Grant of partial exemption from the Commission's automotive 
fuel ratings, certification, and posting rule.

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SUMMARY: The Commission grants the petition of gasoline dispenser 
manufacturer Gilbarco, Inc. (``Gilbarco'') requesting permission for 
ethanol flex fuel retailers to post ethanol flex fuel rating labels 
that differ from size and shape specifications in the Commission's Rule 
for Automotive Fuel Ratings, Certification and Posting (``Rule''). The 
Commission grants the partial exemption without a notice and comment 
period because ``for good cause'' the Commission finds that notice and 
comment is unnecessary in this case. The Commission previously granted 
similar requests from Gilbarco and other dispenser manufacturers 
without notice and comment procedures.

DATES: This partial exemption is effective December 2, 2016.

FOR FURTHER INFORMATION CONTACT: R. Michael Waller, (202) 326-2902, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: 

I. The Fuel Rating Rule

    The Rule provides procedures for determining, certifying, and 
posting, through fuel dispenser labels, a rating for automotive fuels 
intended for consumer sale. As originally published, the Rule required 
only an octane rating for automotive gasoline.\1\ Pursuant to section 
1501 of the Energy Policy Act of 1992, 106 Stat. 2776, the Commission 
then amended the Rule in 1993 to require a rating disclosure for liquid 
alternative fuels, including gasoline-ethanol blends above 10 percent 
ethanol (``Ethanol Flex Fuels'').\2\ On January 14, 2016, the 
Commission established a new Ethanol Flex Fuel rating and label, 
effective July 14, 2016.\3\
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    \1\ See Octane Posting and Certification Rule, 44 FR 19160 (Mar. 
30, 1979).
    \2\ 58 FR 41356, 41372 (Aug. 3, 1993).
    \3\ 81 FR 2054 (Jan. 14, 2016).
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    Section 306.10 of the Rule requires that retailers post on 
automotive fuel dispensers a fuel rating label for each kind of 
automotive fuel sold from the dispenser. Retailers must post labels 
conspicuously on the dispenser in consumers' full view and as near as 
reasonably practical to the fuel price.
    Section 306.12 of the Rule details label color scheme, shape, size, 
textual content, and font type and point size. Ethanol Flex Fuel labels 
must be orange, rectangular, and 3 inches (7.62 cm) wide x 2 \1/2\ 
inches (6.35 cm) long. In addition, the percentage of ethanol content 
must be printed in orange font within a 1 inch (2.54 cm) deep black 
band across the top of the label. Below the band, the label must state 
``Use Only in Flex Fuel Vehicles/May Harm Other Engines.''

II. Gilbarco's Prior Petitions

    In 1988 and 1995, the Commission granted Gilbarco partial 
exemptions to allow retailers to post octane labels smaller than 
required by the Rule. As here, Gilbarco requested the exemption to 
allow retailers to display the labels on the buttons consumers press to 
select a particular automotive fuel on multi-blend fuel dispensers 
(``button labels'').\4\ In those instances, the Commission exempted 
button labels that measured 3 inches (7.62 cm) wide x 2.3 inches (5.84 
cm) long and 2.74 inches (6.96 cm) wide x 1.80 inches (4.57 cm) long. 
Furthermore, the font point size differed from Rule's requirements, and 
the exempted labels added the word ``Press.''
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    \4\ See 60 FR 57584 (Nov. 16, 1995); 53 FR 29277 (Aug. 3, 1988).
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III. Gilbarco's Current Petition

    Gibarco now requests an exemption for smaller label dimensions for 
Ethanol Flex Fuel button labels and to include the word ``Press'' in 
the label's black band. In addition, Gilbarco requests permission to 
post dome-shaped button labels in lieu of rectangular labels for 
certain dispenser designs. The proposed rectangular labels are 2.38 
inches (6.05

[[Page 86915]]

cm) wide x 2.27 inches (5.77 cm) long, and the dome-shaped labels have 
an outside dimension of 2.378 inches (6.04 cm) wide x 2.717 (6.90 cm) 
inches long. In addition, the black band across the top of the dome-
shaped label is 0.277 inches (0.70 cm) wider than specified in the 
Rule. The labels' background and text insertions otherwise comply with 
the Rule's color scheme, content, and font type and point size 
requirements.

IV. Discussion

    The Commission reviewed mock-ups of the proposed rectangular and 
dome-shaped labels and concludes that the proposed labels adequately 
meet the Rule's labeling requirements by providing clear and 
conspicuous disclosure of all the required information and maintaining 
the Rule's color scheme and font type and point size requirements. 
Moreover, the Commission's experience with similar exemptions does not 
indicate that button labels confuse consumers or otherwise impede 
comprehension of the fuel rating. To the contrary, these labels may 
increase the likelihood that consumers see the fuel rating because they 
must choose and press the button before fueling.
    Furthermore, pursuant to Rule 1.26, the Commission for good cause 
finds that notice and comment is unnecessary in this case because the 
exemption involves a technical and minor deviation from the Rule's 
labeling requirements and does not impose any new legal obligations on 
parties subject to the Rule.\5\ Moreover, the Commission has previously 
granted similar exemptions from the Rule's labeling requirements, and 
this exemption is consistent with those prior determinations.\6\
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    \5\ See 16 CFR 1.26. For these reasons, the Commission also 
finds good cause for making this exemption effective immediately.
    \6\ See, e.g., Rule exemptions granted to Gilbarco, 60 FR 57584 
(Nov. 16, 1995), 53 FR 29277 (Aug. 3, 1988); Dresser Industries, 
Inc., 56 FR 26821 (June 11, 1991); and Exxon Corporation, 54 FR 
14072 (Apr. 7, 1989).
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V. Conclusion

    Therefore, the Commission grants Gilbarco and retailers permission 
to use the proposed rectangular and dome-shaped button labels on 
Ethanol Flex Fuel dispenser buttons, provided that Gilbarco and 
retailers comply with the Rule's specifications in all other respects.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2016-29006 Filed 12-1-16; 8:45 am]
 BILLING CODE 6750-01-P