Automotive Fuel Ratings, Certification and Posting

FEDERAL TRADE COMMISSION

Automotive Fuel Ratings, Certification and Posting

AGENCY: Federal Trade Commission.

ACTION: Grant of partial exemption from the Commission's Fuel Rating

Rule.

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SUMMARY: The Commission has granted the petition of Gilbarco, Inc.

(``Gilbarco''), a manufacturer of gasoline dispensers, on behalf of

several major oil companies, requesting permission to post octane

ratings by use of octane labels that differ from certain of the

specifications contained in the Commission's Automotive Fuel Ratings,

Certification and Posting Rule (``the Rule''). Pursuant to Rule 1.26 of

the Commission's Rules of Practice, the Commission grants, for good

cause, the requested relief without a notice and comment period because

the Commission finds that such a procedure is unnecessary to protect

the public interest in this case. The Commission previously has granted

similar requests without notice and comment procedures.\1\

\1\ See Octane Rule exemptions granted to Gilbarco, 53 FR 29277

(1988); to Exxon Corporation, 54 FR 14072 (1989); and to Dresser

Industries, Inc., 56 FR 26821 (1991).

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EFFECTIVE DATE: November 16, 1995.

FOR FURTHER INFORMATION CONTACT: Thomas D. Massie, Attorney, Division

of Enforcement, Federal Trade Commission, Washington, DC 20580, (202)

326-2982.

SUPPLEMENTARY INFORMATION: On March 30, 1979, the Commission published

the Octane Posting and Certification Rule in the Federal Register. 44

FR 19160 (1979). The Rule established procedures for determining,

certifying and posting, by means of a label on the fuel dispenser, the

octane rating of automotive gasoline intended for sale to consumers.

Pursuant to section 15.01 of the Energy Policy Act of 1992, 106 Stat.

2776, the Rule has been amended to include requirements for disclosing

the automotive fuel rating of liquid alternative fuels, 58 FR 41372

(1993). The amended Rule became effective October 25, 1993.

Section 306.10 of the Rule provides that retailers must post at

least one octane rating label on each face of each gasoline dispenser.

Retailers who sell two or more kinds of gasoline with different octane

ratings from a single dispenser must post separate octane rating labels

for each kind of gasoline one each face of the dispenser. Labels must

be placed conspicuously on the dispenser so as to be in full view of

consumers and as near as reasonably practical to the price per gallon

of gasoline.

Section 306.12 of the Rule detail specifications for the labels.

Labels must be 3 inches wide by 2\1/2\ inches long, and Helvetica type

must be used for all text except the octane rating number, which must

be in Franklin Gothic type. Type size for the text and numbers is

specified, and the type and border must be process black on a process

yellow background. The line ``MINIMUM OCTANE RATING'' must be in 12

point Helvetica bold, all capitals, with letter space set at 12\1/2\

points. The line ``(R+M)/2 METHOD'' must be in 10 point Helvetica bold,

all capitals, with letter space set at 10\1/2\ points. The octane

number must be in 96 point Franklin Gothic Condensed, with \1/8\ inch

spacing between the numbers. Section 306.12(d) of the Rule further

states that no marks or information other than that called for by the

Rule may appear on the label.

On August 3, 1988, the Commission granted Gilbarco a partial

exemption to the Rule with respect to the same multi-blend gasoline

dispensers that are the subject of this partial exemption. 53 FR 29277

(1988). There the Commission allowed Gilbarco to use an octane label

that was 3 inches wide and 2.3 inches long that would be inserted

inside plastic gasoline selection switches. The Commission also allowed

Gilbarco to place the world ``PRESS'', in 16 point Helvetica type,

beneath the octane number on the label.

Gilbarco's experience with the plastic gasoline selection switches

has shown that the plastics which is prone to cracking or hazing over

after prolonged exposure to gasoline vapors, reducing the clarity of

the octane label. Gilbarco

[[Page 57585]]

hypothesizes that consumers are using the metal nozzle tip of the

dispenser hose to depress the selection switch and the repeated impact

of the metal nozzle tip damages the protective coating on the switch.

As a solution to this problem, Gilbarco has developed a metal

replacement switch. The metal replacement switch has the same external

dimensions as the plastic switch and avoids the need for special sheet

metal replacement panels, new graphics, and changes to the internal

mechanisms of the dispensers.

Although the external dimensions of the metal and plastic switches

are the same, the design of the metal will require a slightly smaller

octane label than that authorized for the plastic switch. The new label

will sit in a depression or well on the face of the switch. Gilbarco

proposes using an octane label that is 2.74 inches wide by 1.80 inches

long, as opposed to the 3.00 inches wide by 2.30 inches long that is

currently authorized. The type size of the octane number will be

slightly smaller than the Rule requires.

The Commission has reviewed mock-ups of the metal replacement and

the plastic switches and the proposed octane label and has decided that

the proposed labeling scheme is adequate to meet the Rule's posting

objective in that it provides clear and conspicuous disclosure of all

information required by the Rule. In addition the partial exemption

allows Gilbarco to implement the most economical repair for its

selectors switch problem without adversely affecting the public

interest. Therefore, the Commission is granting Gilbarco permission to

use its proposed labeling system on its multi-blend dispensers,

provided that Gilbarco also complies with the Rule's octane label

specifications in all other respects.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-28340 Filed 11-15-95; 8:45 am]

BILLING CODE 6750-01-M