Labeling Fuels-1
Labeling Alternative Fuels
INTRODUCTION
The Federal Trade Commission (FTC) prepared this guide to help you comply with two FTC Rules that require businesses to provide certain information to help potential purchasers of vehicle fuels compare products.
This guide explains the provisions of the Fuel Rating Rule (the Automotive Fuel Ratings, Certification and Posting Rule) and the new Alternative Fuels and Vehicles Rule (the Labeling Requirements for Alternative Fuels and Alternative Fueled Vehicles Rule). It includes answers to commonly asked questions about the Rules. Also, the Fuel Rating Rule and Subparts A (definitions) and B of the Alternative Fuels and Vehicles Rule are attached.
The Alternative Fuels and Vehicles Rule has separate requirements for the labeling of alternative fueled vehicles (Subpart C). For information about the requirements for these vehicles, see the FTC's Business Guide called Labeling Alternative Fueled Vehicles.
REQUIREMENTS
The Fuel Rating Rule replaces the FTC's Octane Rule by extending fuel rating determination, certification, posting, and record-keeping requirements to all liquid automotive fuels except diesel fuel. In short, it means that sellers of liquid automotive fuels, including alternative liquid automotive fuels, must determine, certify, post on fuel pumps, and keep records of the automotive fuel rating appropriate for each fuel. The revision of the Rule does not change the seller's obligations when selling gasoline.
The requirements for non-liquid alternative fuels under the Alternative Fuels and Vehicles Rule are the same as those for alternative liquid fuels under the Fuel Rating Rule.
WHO MUST COMPLY
Importers, producers, refiners, distributors, and retailers of vehicle fuels, and manufacturers of electric vehicle fuel dispensing systems must comply with the Rules.
VEHICLE FUELS COVERED BY THE RULES
1. Gasoline, including gasohol, reformulated, and oxygenated gasoline.
2. Liquid alternative automotive fuels, including:
3. Methanol, denatured ethanol, and other alcohols
4. Mixtures containing 85 percent or more by volume of methanol, denatured ethanol, and/or other alcohols (or such other percentage, but not less than 70 percent, as determined by the Secretary of the U.S. Department of Energy to provide for requirements relating to cold start, safety,
or vehicle functions), with gasoline or other fuels
5. Liquefied natural gas
6. Liquefied petroleum gas
7. Coal-derived liquid fuels
8. Non-liquid alternative vehicle fuels, including compressed natural gas, hydrogen, and electricity.
These Rules do not cover diesel fuel.
THE FUEL RATING
The automotive fuel rating for gasoline is the octane rating. For an alternative fuel other than electricity, the fuel rating is the commonly-used name of the fuel and a disclosure of the amount of the principal component of the fuel, expressed as a minimum percentage. Other components, expressed as minimum percentages, may be listed on the dispenser label.
For electric vehicle fuel dispensing systems, the fuel rating consists of a common fuel identifier (such as 'electricity,' or 'electric charging station'), the system's kilowatt capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.
COMPLYING WITH THE RULES
The Rules are organized into sections based on categories of industry, such as producer and refiner, distributor, or retailer, and categories of fuel, such as non-liquid alternative vehicle fuels (other than electricity) and electricity. The following summary is arranged the same way.
Importers, Producers and Refiners of Vehicle Fuels (other than electricity), and Manufacturers of Electric Vehicle Fuel Dispensing Systems
Importers and producers and refiners of vehicle fuel must determine the rating of the vehicle fuel before transferring it. Manufacturers of electric vehicle fuel dispensing systems must determine the fuel rating of the electric charge delivered by the electric vehicle fuel dispensing system before transferring it.
Rating Determination
To determine the automotive fuel rating of gasoline (the octane rating), add the research octane number and the motor octane number and divide by two. The American Society for Testing and Materials (ASTM) explains this in 'Standard Specifications for Automotive Spark-Ignition Engine Fuel' (ASTM D4814).
To determine ratings for alternative liquid automotive fuels and for non-liquid alternative vehicle fuels (other than electricity), you must have a reasonable basis, consisting of competent and reliable evidence, for the minimum percentage of the principal component of the fuel that you must disclose, and for the minimum percentages of other components that you choose to disclose.
Rating Determination for Compressed Natural Gas
The minimum percentage of the principal component of compressed natural gas must be determined according to test methods described in 'Standard Test Method for Analysis of Natural Gas by Gas Chromatography' (ASTM Dl945-91).
Rating Determination for Hydrogen Gas
The minimum percentage of the principal component of hydrogen must be determined according to test methods described in 'Standard Practice for Analysis of Reformed Gas by Gas Chromatography' (ASTM D1946-90).
To determine the fuel rating of the electric vehicle fuel dispensing system, you must have a reasonable basis, consisting of competent and reliable evidence, for the following output information you must disclose: kilowatt (kW) capacity, voltage, whether the voltage is alternating current or direct current, amperage, and whether the system is conductive or inductive.
Rating Certification
In each transfer of vehicle fuel _ other than electricity _ to a non-consumer, you must certify the rating of the fuel consistent with your determination. You may include a delivery ticket with each transfer of fuel or a letter of certification or other written statement.
A delivery ticket may be an invoice, bill of lading, bill of sale, terminal ticket, delivery ticket, or other written proof of transfer. It must include:
1. your name
2. the name of the person to whom the fuel is transferred
3. the date of the transfer
4. the fuel rating
5. A certification letter must include:
6. the date
7. your name
8. the other person's name
9. the rating of any fuel you will transfer to that person from the date of the letter onward
A letter of certification is good until you transfer fuel with a lower rating or percentage of the principal component. At that point, you must certify the rating of the new vehicle fuel with a new delivery ticket or a new letter.
In each transfer of an electric vehicle fuel dispensing system to a non-consumer, you must certify the fuel rating of the electric vehicle fuel dispensing system consistent with your determination. You must include a delivery ticket or other paper with each transfer of an electric vehicle fuel dispensing system, or place a permanent legible marking or a permanent label with specific information on the electric vehicle fuel dispensing system.
A delivery ticket, which may be an invoice, bill of lading, bill of sale, delivery ticket, or other written proof of transfer, must contain five key pieces of information:
1. your name
2. the name of the person to whom the electric vehicle fuel dispensing system is transferred
3. the date of the transfer
4. the model number, serial number, or other identifier of the electric vehicle fuel dispensing system
5. the fuel rating
Or you may certify by placing a permanent mark or label on the electric vehicle fuel dispensing system that includes three items of information:
1. the manufacturer's name
2. the model number, serial number, or other identifier of the electric vehicle fuel dispensing system
3. the fuel rating
The mark or label must be placed where it can be seen after the system is installed -- for example, near the manufacturer's identification mark. This mark or label is in addition to, not in place of, the label the retailer must post on the electric vehicle fuel dispensing system.
Transferring to a Common Carrier
When vehicle fuel or an electric vehicle fuel dispensing system is transferred to a common carrier, the rating of the fuel or system must be certified to the common carrier. You may do this on the delivery ticket or other paper, in a letter of certification, or as a permanent mark or label attached to the electric vehicle fuel dispensing system by the manufacturer.
Recordkeeping
Records of how you determined fuel ratings must be kept for one year. These records must be available for inspection by FTC staff or people authorized by the FTC.
Distributors of Fuels and Electric Vehicle Fuel Dispensing Systems Rating Certification
Distributors of vehicle fuel (other than electricity) must certify the rating of the fuel with each transfer by letter of certification, delivery
ticket, or other paper to anyone who is not a consumer. Distributors of electric vehicle fuel dispensing systems also must certify the fuel rating of the system with each transfer to anyone who is not a consumer _ by delivery ticket, other paper, or by a permanent marking or a permanent label attached to the system by the manufacturer.
If you blend fuels, you must have a reasonable basis, consisting of competent and reliable evidence, for the rating you certify. If you do not blend fuels, you must certify consistent with the fuel rating as it was certified to you.
Transferring To or Receiving From a Common Carrier
When you transfer vehicle fuel or an electric vehicle fuel dispensing system to a common carrier, you must certify the rating of the fuel or system to the common carrier by letter, delivery ticket or other paper, or by a permanent mark or label attached to the electric vehicle fuel dispensing system by the manufacturer.
When you receive vehicle fuel or an electric vehicle fuel dispensing system from a common carrier, you must get certification of the rating of the fuel or system by letter, delivery ticket or other paper, or by a permanent marking or label attached to the electric vehicle fuel dispensing system by the manufacturer.
Recordkeeping
You must keep delivery tickets, letters of certification, or other papers on which you base your fuel rating certifications for one year. You also must keep records of any fuel rating determinations you make for one year. These records must be available for inspection by FTC staff or people authorized by the FTC. If you rely on a permanent marking or permanent label attached to the electric vehicle fuel dispensing system by the manufacturer for your certification, the permanent marking or label may not be removed or damaged.
Retailers
Posting Fuel Ratings
If you sell vehicle fuel to consumers, you must post the rating of each fuel. If you sell electricity to consumers through an electric vehicle fuel dispensing system, you must post the rating of the electric vehicle fuel dispensing system you use. You must place at least one label on the face of each dispenser. If you sell two or more kinds of fuels with different ratings from a single fuel dispenser, you must put separate labels for each kind of fuel on the face of the dispenser.
The label or labels must be placed conspicuously on the fuel dispenser, clearly visible to consumers, and as close as possible to the price per unit of the fuel. The labels must be maintained and replaced as needed to make sure they are easy to see and read. If the labels become unreadable, you must post a temporary label that looks as much like the required label as possible. Get and post the required label as soon as possible.
If you blend fuels, you must have a reasonable basis, consisting of competent and reliable evidence, for the rating you post for the blend. If you do not blend fuels, you must post the rating certified to you.
Receiving from a Common Carrier
When you receive vehicle fuel or an electric vehicle fuel dispensing system from a common carrier, you also must receive certification of the rating of the fuel or system by letter, delivery ticket or other paper, or by a permanent marking or label attached to the electric vehicle fuel dispensing system by the manufacturer.
Recordkeeping
You must keep delivery tickets, letters of certification, or any other paper on which you base your posting of fuel ratings for one year. You also must keep records of any fuel rating determinations you make for one year. If you rely on a permanent marking or permanent label attached to the electric vehicle fuel dispensing system by the manufacturer for your posting, you may not remove or damage the permanent marking or label. The required records, other than the permanent marking or label on the electric vehicle fuel dispensing system, may be kept at the retail station or at a near-by location. However, all these records, including the permanent marking or label on each electric vehicle fuel dispensing system, must be available for inspection by FTC staff or people authorized by the FTC.
THE LABELS
Section 306.12 of the Fuel Rating Rule and Section 309.17 of the Alternative Fuels and Vehicles Rule specify the size, type style, and dimensions of vehicle fuel and electric vehicle fuel dispensing system labels. Labels must be 3 inches wide by 2-l/2 inches long. Gasoline octane labels must be printed in black ink on a yellow background. Alternative fuel labels must be printed in black ink on an orange background.
All labels must be able to withstand extreme weather conditions for at least one year, and must be resistant to vehicle fuel, oil, grease, solvents, detergents, and water.
To change the format of the label to accommodate a longer fuel description or additional fuel components, file a petition for an exemption with the FTC. Include the size and contents of the label you want to use, and your reasons for wanting to use it.
QUESTIONS AND ANSWERS
The following questions and answers may help facilitate compliance with the Rules.
Q. According to the Fuel Rating Rule, automotive fuel means a liquid fuel distributed for use in any motor vehicle. For purposes of the Rule, what is a 'motor vehicle'?
A. As defined by the Petroleum Marketing Practices Act, and for purposes of the Fuel Rating Rule only, 'motor vehicle' means any self-propelled four-wheeled vehicle of less than 6,000 pounds gross vehicle weight, designed primarily for use on public streets, roads, and hichways.
Q. Some of the new alternative fuels covered by the FTC's Rules often are not sold for automotive or vehicle use. Are such sales covered by the Rules?
A. No. The Rules cover fuels sold or transferred for use as automotive or vehicle fuels only.
Q. Does the FTC require a minimum or maximum rating level for fuels?
A. No. The FTC's Rules require the certification and posting of a minimum fuel rating _ disclosures to help consumers make the best fuel selections for their vehicles. Compliance with all other applicable regulations is required.
Q. Can fuel rating certification be accomplished with documents that identify fuels by code numbers or names, not the rating?
A. No. Descriptive names or code numbers are inadequate. Documents, including delivery tickets that accompany transfers of fuel, certification letters, or, in the case of electric vehicle fuel dispensing systems, permanent marks or labels on the dispensing systems, must include the rating of the fuel to comply with the Rules' fuel rating certification requirements.
Q. I sell fuel to customers who use it for their own fleets _ not for resale to the general public. Must I certify the rating of the fuel to these customers?
A. No. The Rules require certification of the fuel rating to anyone who is not a consumer of the fuel. Under the definitions in the Rules, customers who buy fuel for their own fleets are consumers of the fuel.
Q. Must common carriers comply with the Rules' certification requirements?
A. No. Common carriers do not fall within the scope of the Rules. However, the Rules require covered industry members to give certification documents to common carriers in the chain of distribution, and receive certification documents from them. Accordingly, the FTC believes that common carriers will pass on the certifications they receive voluntarily as they play their part in the chain of distribution.
Q. In the case of alternative vehicle fuel other than electricity, must I separately certify the minimum percentage of the principal component of the fuel and each of the minimum percentages of other components of the fuel that I choose to disclose?
A. Yes. For example, in the case of CNG vehicle fuel, it would be insufficient to certify as a single percentage the minimum percentage of methane, ethane, and propane in the fuel; the minimum percentage of each component of the fuel must be certified _ and posted _ separately.
Q. Who should I contact if I suspect non-compliance with the FTC's Fuel Rating Rule or Alternative Fuels and Vehicles Rule, or fraudulent activity regarding the sale of automotive or vehicle fuel?
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), or your state or local weights and measures office.
For more information, contact the Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, or an FTC Regional Office.
