Labeling AFV-1

Labeling Alternative Fueled Vehicles

INTRODUCTION

The Federal Trade Commission (FTC) prepared this booklet to help you comply with a new FTC rule that requires labeling on alternative fueled vehicles. The Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles Rule was issued in keeping with a directive in the Energy Policy Act of 1992. The Rule requires you to provide information to potential purchasers of alternative fueled vehicles to help them compare vehicles.

The Rule has separate requirements for the labeling of alternative fuels and alternative fueled vehicles. This booklet deals only with the requirements for alternative fueled vehicles (Subpart C of the Rule). A companion booklet -- Labeling Fuels -- provides information about the labeling requirements for fuels, including liquid and non-liquid alternative fuels.

REQUIREMENTS

The Rule requires standardized labels on certain alternative fueled vehicles (AFVs) offered to consumers for sale or lease. For new AFVs, the Rule requires that manufacturers prepare and post labels consisting of three parts. Part one must disclose objective information about the estimated cruising range and environmental impact of the particular AFV. Parts two and three must disclose information about AFVs in general. For used AFVs, the Rule requires that dealers post a label with general information about AFVs -- not specific information about a particular vehicle.

The Rule states that manufacturers must place the labels conspicuously on any visible surface. Vehicle dealers must make sure that the labels stay on the vehicle until it is sold or leased.

WHO MUST COMPLY

Manufacturers and dealers of new AFVs, dealers of used AFVs, and certain conversion companies must comply with Subpart C of the Rule.

DEFINITIONS

Vehicles

The Rule applies to 'covered vehicles.' It defines a 'covered vehicle' as either a dedicated or dual-fueled passenger car capable of seating a maximum of 12 passengers or a dedicated or dual-fueled motor vehicle (other than a passenger car) with a gross vehicle weight of less than 8,500 pounds, a vehicle curb weight of less than 6,000 pounds, and a basic vehicle rating frontal area of less than 45 square feet, designed primarily to transport property or designed primarily to transport people, with a capacity of more than 12 passengers.

A 'dedicated vehicle' operates only on alternative fuel. A 'dual-fueled vehicle' can run on alternative fuel and conventional fuel.

Manufacturers and Conversion Companies

The Rule applies to manufacturers. The Rule defines a manufacturer as someone who obtains a 'certificate of conformity' -- a document that states that the vehicle complies with the standards and requirements of 40 CFR Parts 86 and 88, the Environmental Protection Agency (EPA) emission certification standard. According to the Rule, someone who converts conventional vehicles to alternative fueled vehicles and obtains a certificate of conformity stating that the AFV meets appropriate EPA emission standards also is considered a manufacturer. If someone other than a manufacturer converts the vehicle to an AFV before the vehicle is sold or leased to a consumer, it is the manufacturer's responsibility to provide the installer with the vehicle's estimated cruising range and emission certification standard and to make sure that a new vehicle label is placed on the vehicle.

Transactions

The Rule requires labels for vehicles that are 'acquired' by 'consumers.' The Rule offers a broad definition of 'consumer': an individual, corporation, partnership, association, State, municipality, political subdivision of a State, and any agency, department, or instrumentality of the United States.

According to the Rule, the term 'acquisition,' means obtaining the title to a covered vehicle or signing a long-term lease (that is, a lease for a period of at least 120 days).

New and Used Covered Vehicles and Dealers

The Rule treats new and used covered vehicles and dealers differently. A 'new covered vehicle' has not been acquired by a consumer. A 'new vehicle dealer' is engaged in the sale or leasing of new covered vehicles.

A 'used covered vehicle' includes vehicles that have previously been owned by a consumer, but not vehicles that have been sold for scrap. A 'used vehicle dealer' sells or leases used covered vehicles and has sold or leased at least five used covered vehicles in the past 12 months.

REQUIRED LABELING DISCLOSURES FOR NEW COVERED VEHICLES

Specific Data Disclosures

Estimated Cruising Range: The Rule defines 'estimated cruising range' as the number of miles a new covered vehicle will travel on a supply of fuel. The lower number in the range indicates how far the vehicle can go in city conditions; the higher number indicates how far it can travel on highways. How to estimate the cruising range depends on whether the vehicle is dedicated, electric, or dual-fueled.

For dedicated vehicles that comply with EPA's fuel economy labeling provisions (40 CFR Part 600), calculate the estimated cruising range like this: Multiply the vehicle's estimated city fuel-economy by its fuel tank capacity, then round to the next lower number to determine the lower range value. Multiply the vehicle's estimated highway fuel-economy by its fuel tank capacity, then round to the next higher number to determine the upper range.

For dedicated vehicles not required to comply with EPA's fuel economy labeling provisions, calculate the estimated cruising range in any reasonable way. You must have competent and reliable evidence to substantiate the minimum and maximum number of miles you claim the vehicle will travel between refuelings or recharges.

For electric vehicles, the estimated cruising range is only one number. It is the actual vehicle range determined according to test methods in 'Electric Vehicle Energy Consumption and Range Test Procedure,' the Society of Automotive Engineers' Surface Vehicle Recommended Practice SAE J1634-1993-05-20.

For dual-fueled vehicles that comply with EPA's fuel economy labeling provisions, you must estimate the cruising range for the vehicle operating solely on alternative fuel and solely on conventional fuel. For a vehicle running on alternative fuel only, determine the lower range value by multiplying the vehicle's estimated city fuel-economy by its alternative fuel tank capacity, then rounding to the next lower number. Determine the upper range value by multiplying its estimated highway fuel-economy by its alternative-fuel tank capacity, then rounding to the next higher number.

For a dual-fueled vehicle operating only on conventional fuel, determine the lower range value by multiplying the vehicle's estimated city fuel-economy by its conventional-fuel tank capacity, then rounding to the next lower number. Determine the upper range value by multiplying its estimated highway fuel-economy by its conventional-fuel tank capacity, then rounding to the next higher number.

For dual-fueled vehicles that are not required to comply with EPA's fuel economy labeling provisions, use any reasonable way to determine the estimated cruising range values. Competent and reliable evidence must support the minimum and maximum number of miles the vehicle will travel between refuelings or recharges when operated only on alternative fuel _ and the minimum and maximum number of miles the vehicle will travel between refuelings or recharges when operated only on conventional fuel.

Environmental Impact: The labels must tell consumers whether the vehicle has met an EPA emission certification standard and, if so, what standard. If a vehicle has been certified, that fact must be noted with a mark in a box on the label; a caret must be inserted above the standard the vehicle has been certified to meet. If a vehicle has not been certified as meeting an EPA emissions standard, that must be noted in a box on the label as well.

Descriptive Disclosures

The second part of the label recommends that consumers consider several factors before buying an AFV:

1. information relating to fuel type
2. operating costs
3. performance/convenience
4. fuel availability
5. energy security/renewability.

The labels must explain the importance of each factor in a decision to purchase an AFV.

The third part of the AFV label lists toll-free telephone numbers for consumers who want to call the federal government for more information about AFVs.

REQUIRED LABELING DISCLOSURES FOR USED COVERED VEHICLES

For the most part, the used covered vehicle label is similar to the second and third parts of the new covered vehicle label. But there are two important differences: The label for used covered vehicles does not include information about the manufacturer's estimated cruising range. General information about the cruising range is in the 'performance/convenience' part of the label. (See the heading, 'Before selecting an Alternative Fueled Vehicle (AFV) make sure you consider....') In addition, the label includes 'environmental impact' as a factor to consider in the purchase, with an explanation of its importance.

LABEL SIZE AND FORMAT

The Rule requires manufacturers to prepare and post a label on a visible surface of each new covered vehicle before offering it to consumers. The Rule also requires dealers to make sure the labels stay on the vehicles _ new and used _ until they are sold or leased.

Sections 309.20 and 309.21 of the Rule specify the size, type size, color (sky blue), and dimensions of the labels -- and the information that must be included on the label. (You may not add information to the label that is not called for in the Rule.) The Rule also specifies the format of the label for three categories of AFVs: new covered vehicles designed to operate on alternative fuel, new covered vehicles that can operate on alternative fuel and conventional fuel, and used covered vehicles. Your label should look like one of these.

[Illustrations not available at this time]

Recordkeeping

For three years after the end of each model year, you are required to keep copies of all data, reports, records, and procedures you have used to meet the requirements of the Rule. These records must be available for inspection by FTC staff or people authorized by the FTC.

The labels should look like this:

[Illustrations not available at this time]

QUESTIONS AND ANSWERS

Q: Must I comply with the Rule if I convert a vehicle to an AFV before it is sold or leased to a consumer?
A: Yes. Conversions to AFVs before AFVs are sold or leased to consumers are within the scope of AFV labeling requirements.

Q: Must I comply with the Rule if I convert a vehicle to an AFV after the vehicle has been sold or leased to a consumer?
A: No. The AFV labeling requirements do not apply to aftermarket conversions.

Q: Does the Rule cover only sales of vehicles?
A: No. The Rule covers long-term leasing arrangements (120 days or more) as well as sales.

Q: How is the cruising range calculated for 'hybrid' electric vehicles, that is, vehicles powered by more than electricity?
A: For hybrid electric AFVs, cruising range values are calculated using the 'reasonable basis' test.

Q: How must AFV labels be displayed?
A: The labels can be displayed on two sheets placed next to each other or in a two-sided format. It's up to the manufacturer.

Q: When were the AFV labeling requirements effective?
A: The AFV labeling requirements became on effective November 20, 1995.

Q. Who should I contact if I suspect non-compliance with the FTC's Alternative Fuels and Alternative Fueled Vehicles Rule?
A. Information about possible illegal activity helps law enforcement officials target companies that merit scrutiny. If you know about such illegal activity, please contact the Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580
(202.326.2996).