Alternative Fuels Rule-SS-2025 - FINAL

Supporting Statement
Labeling Requirements for Alternative Fuels
and Alternative Fueled Vehicles
16 C.F.R. Part 309
(OMB No. 3084-0094)
The Federal Trade Commission (“FTC” or “Commission”) requests approval for a threeyear extension of an existing clearance relating to the information collection requirements under
the Alternative Fuels Rule (officially the “Labeling Requirements for Alternative Fuels and
Alternative Fueled Vehicles”), 16 C.F.R. Part 309. There is no change in the disclosure or
recordkeeping requirements. Annual burden and labor cost estimates for this period are expected
to decrease.
(1)

Necessity for Collecting the Information

The Energy Policy Act of 1992 (“EPAct 92” or “Act”) 1 established federal programs that
encourage the development of alternative fuels and alternative fueled vehicles (“AFVs”).
Section 406(a) of the Act directed the Commission to establish uniform labeling requirements for
alternative fuels and AFVs. Under the Act, such labels must provide “appropriate information
with respect to costs and benefits [of alternative fuels and AFVs], so as to reasonably enable the
consumer to make choices and comparisons.” In addition, the required labels must be “simple
and, where appropriate, consolidated with other labels providing information to the consumer.” 2
0F

1F

Pursuant to the Act, the Commission promulgated “Labeling Requirements for
Alternative Fuels and Alternative Fueled Vehicles,” 16 C.F.R. Part 309 (hereinafter “Rule”). The
Rule requires disclosure of specific information on labels posted on fuel dispensers for nonliquid alternative fuels and on labels on AFVs. 3 To ensure the accuracy of the labeling
disclosures, the Rule also requires that sellers maintain records substantiating product-specific
disclosures they include on these labels. In addition, the Rule requires that distributors of nonliquid alternative vehicle fuel provide certifications of the fuel rating in each transfer to anyone
who is not a consumer. In 2013, the Commission amended the Rule to consolidate the FTC’s
alternative fueled vehicle (“AFV”) labels with new fuel economy labels required by the
Environmental Protection Agency (“EPA”) and the National Highway Traffic Safety
Administration (“NHTSA”) and eliminate FTC requirements for used AFV labels. 4
2F

3F

(2)

Use of the Information

The primary purpose of the Rule is to help consumers use the proper fuel for their
vehicles and to encourage them to comparison shop for alternative fuel vehicles.

1

Pub. L. 102-486, 106 Stat. 2776 (1992).

2

42 U.S.C. § 13232(a).

3

60 Fed. Reg. 26,926 (May 19, 1995).

4

78 Fed. Reg. 23,832 (April 23, 2013).

(3)

Consideration of Using Improved Technology to Reduce Burden

The certification and recordkeeping requirements for sellers of non-liquid alternative
fuels are patterned after the requirements in the Commission’s Fuel Rating Rule (formerly
known as the “Octane Rule”), 16 C.F.R. Part 306, for sellers of gasoline and liquid alternative
fuels. Sellers can accomplish certification under the Fuel Rating Rule in either of two ways: on a
delivery ticket with each transfer of gasoline, or by a letter of certification or other written
statement. Fuel rating certification and recordkeeping requirements for non-liquid alternative
fuels are applied in the same way. Certification for electric vehicle fuel dispensing systems can
be done by placing a permanent mark or label on the electric vehicle fuel dispensing system.
Although nothing in the Rule requires that these certifications contain any signature (see
§ 309.11), to the extent such a certification may typically involve a signature, the Rule leaves
certifying parties free to use whatever technology they deem appropriate to identify and
authenticate such signatures, consistent with the Government Paperwork Elimination Act, 44
U.S.C. § 3504 note (“GPEA”). Likewise, the Rule complies with GPEA by permitting certain
disclosures to be made (see §§ 309.10, 309.20, and 309.21) and necessary records to be kept (see
§§ 309.12, 309.14, 309.16, and 309.23) without regard to format, so that a regulated entity, if it
chooses, may conduct these activities electronically.
The Rule also requires retailers to label alternative vehicle fuel dispensers (i.e., fuel
pumps). While retailers will typically use physical labels, nothing in the Rule prohibits retailers
from using digital screens on the pumps to display the labels, as long as they otherwise satisfy
the typeface, color, size, and durability requirements of the Rule.
(4)

Efforts to Identify Duplication

In a previous proceeding, the Commission staff identified EPA fuel labeling requirements
that duplicate existing requirements. In response, the Commission consolidated its requirements
in 2013 with those of EPA. 5
4F

(5)

Efforts to Minimize Burden on Small Organizations

The Rule has been designed to impose the minimum possible burden on members of the
affected industries. Under the Rule, the fuel ratings of non-liquid alternative fuels must be
determined by refiners, importers and producers, and records produced by them during the rating
determination process must be retained by them. The certification of a fuel rating by a refiner to
a distributor, or by a distributor to a retailer, may be made on any document that is used as
written proof of transfer. Refiners, distributors, and retailers already retain these fuel transfer
documents in the ordinary course of business.

5

Id.

2

To further minimize certification and recordkeeping burden, the Rule permits a fuel
rating certification to be provided by means of a one-time letter of certification, or a permanent
mark or label on an electric vehicle fuel dispensing system, and therefore obviates the need for
individual certifications on each delivery ticket. This one-time letter or permanent mark can
remain effective for a number of years, and its retention would constitute compliance with the
recordkeeping requirements in the Rule.
(6)

Consequences of Conducting the Collection Less Frequently

The Rule covers labeling requirements that must be provided at the point of sale.
Collecting information less frequently would defeat the express purpose of the Act for such
labels to provide “appropriate information with respect to costs and benefits [of alternative fuels
and AFVs], so as to reasonably enable the consumer to make choices and comparisons.” 42
U.S.C. § 13232(a).
(7)

Circumstances Requiring Collection Inconsistent With Guidelines

The Rule’s information collection requirements are consistent with all applicable
guidelines contained in 5 C.F.R. § 1320.5(d)(2).
(8)

Consultation Outside the Agency

The FTC sought public comment on its request to OMB for a three-year extension of the
current PRA clearance for this information collection, as required by 5 C.F.R. § 1320.8(d). See
90 Fed. Reg. 8,296 (Jan. 28, 2025). The Commission received one germane comment from
Imaging Inc., Cardiac, which encouraged the Commission to assess whether the information
collection requirements are still efficient and not overly burdensome, particularly for small
businesses. The Commission’s analysis and findings in this Supporting Statement address this
concern. For example, Section 3 of this Supporting Statement explains how covered entities are
free to use whatever technology they deem appropriate to meet the Rule’s requirements, and
Section 5 explains how the Rule has been designed to impose the minimum possible burden on
members of the affected industries. The FTC is providing a second opportunity for public
comment while seeking OMB approval to extend this PRA clearance.
(9)

Payments and Gifts to Respondents
Not applicable.

(10) & (11)

Assurances of Confidentiality/Matters of a Sensitive Nature

The information required for disclosure is of a routine business nature. Industry collects
and disseminates it among its membership and is disclosed publicly in the form of dispenser
labels. No personal or sensitive information is involved nor is any commercially confidential
information included.
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(12)

Estimated Annual Hours Burden and Associated Labor Cost
Annual Hours Burden: 2,900 hours.

FTC staff estimates that approximately 9,092 industry participants 6 are subject to the
Rule’s information collection requirements. The burden estimates for covered entities are
detailed below. 7
5F

6F

Labeling: Staff estimates that approximately 1,776 covered retailers must revise covered
labels annually. 8 Staff estimates that affected retailers require approximately one hour each per
year for labeling their fuel dispensers for a total of 1,776 hours (1,776 respondents × 1 hour per
year).
7F

Recordkeeping: FTC staff estimates that approximately 9,092 industry participants are
subject to the Rule’s recordkeeping requirements. Staff estimates that covered entities require
approximately one-tenth of an hour each per year to comply with these requirements. This yields
a burden of approximately 910 hours per year (9,092 respondents × 0.1 hours).
Certification: Staff estimates that the Rule’s fuel rating certification requirements will
affect approximately 214 industry members (including producers, importers, and refiners of
CNG and hydrogen, and distributors and manufacturers of electric vehicle fuel dispensing
systems). Staff anticipates that covered industry participants will spend approximately one hour
per year to comply with this requirement for a total of 214 hours (214 respondents × 1 hour per
year).
214).

Accordingly, the estimated annual burden under the Rule is 2,900 hours (1,776 + 910 +

6

These industry participants include producers, importers, refiners, distributors, and retailers of nonliquid vehicle fuel such as compressed natural gas (CNG) and hydrogen; and manufacturers, distributors,
and retail operators of electric vehicle fuel dispensing systems.
7

It is common practice for alternative fuel industry members to determine and monitor fuel ratings in the
normal course of their business activities. This is because industry members must know and determine
the fuel ratings of their products in order to monitor quality and decide how to market them. “Burden” for
PRA purposes is defined to exclude effort that would be expended regardless of any regulatory
requirement. 5 C.F.R. § 1320.2(b)(2). Other factors also limit the burden associated with the Rule.
Certification may be a one-time event or require only infrequent revision. Disclosures on electric vehicle
fuel dispensing systems may be useable for several years. Nonetheless, there is still some burden
associated with posting labels. There also will be some minimal burden associated with new or revised
certification of fuel ratings and recordkeeping.
8

Staff estimates that approximately 8,878 retailers are subject to the Rule’s labeling requirements. Staff
estimates that approximately 20% of covered retailers (1,776) will need to replace their labels annually
because many labels remain effective for several years.

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Labor Costs: $106,752.
FTC staff derive labor costs by applying appropriate hourly wage figures to the burden
hours described above. According to Bureau of Labor Statistics data, 9 the average compensation
for fuel system operators is $43.74 per hour; and $17.21 per hour for automotive service
attendants. These are factored into the FTC’s estimates and assumptions below.
8F

Labeling: Staff assumes that labeling is performed by fuel system operators. Applying
relevant labor cost figures to the estimated burden hours for labeling yields an estimated annual
labor cost of $77,682 (1,776 hours × $43.74).
Recordkeeping: Staff estimates that approximately 1/6 of the total recordkeeping hours
are performed by fuel system operators (1/6 of 910 hours = approximately 152 hours; 152 hours
× $43.74 = $6,648) and that automotive service attendants account for the remaining 5∕6 of
recordkeeping hours (5/6 of 910 hours = approximately 759 hours; 759 hours × $17.21 =
$13,062). Accordingly, staff estimates that the total labor cost for recordkeeping for affected
industry is approximately $19,710 ($6,648 + $13,062).
Certification: Staff assumes that certification is performed by fuel system operators.
Estimated associated labor costs would be $9,360 (214 hours × $43.74).
Accordingly, the estimated annual labor cost under the Rule is $106,752 ($77,682 +
$19,710 + $9,360).
(13)

Estimated Annual Capital or Other Non-labor Costs
Non-Labor Costs: $1,350.

Staff believes there are no current start-up costs associated with the Rule, which has been
in effect since 1995. Industry members have in place the capital equipment and means necessary
to determine automotive fuel ratings and comply with the Rule. Industry members, however,
incur the cost of procuring fuel dispenser labels to comply with the Rule.
Assuming each label lasts five years, staff estimates 1/5 of the 8,878 total fuel retailers i.e., 1,776 retailers - replace labels in any given year. Staff estimates that each retailer operates
an average of two dispensers and that new labels cost thirty-eight cents each (per industry
sources). Based on these assumptions, the estimated annual fuel labeling cost is $1,350 (1,776 ×
2 × $0.38).
9

The wage estimates in this Notice are based on mean hourly wages found in Table 1, National
employment and wage data from the Occupational Employment Statistics survey by occupation, May
2024, at https://www.bls.gov/news.release/ocwage.t01.htm. The wage rate for fuel system operators is
based on data for “Petroleum pump system operators, refinery operators, and gaugers.” The wage rate for
automotive attendants is based on data for “Automotive and watercraft service attendants.”

5

(14)

Estimated Cost to Federal Government

Staff estimates that a representative year’s cost of administering the Rule’s requirements
during the 3-year clearance period sought will be approximately $30,000. This represents 15%
of an attorney work year.
(15)

Program Changes/Adjustments

There are no program changes. The estimates for burden hours, labor costs and nonlabor
costs are adjusted downward from the prior and current clearance because staff now estimates
fewer covered entities.
(16)

Plans for Tabulation and Publication
Not applicable. There are no plans to publish any information for statistical use.

(17)

Failure to Display the OMB Expiration Date
Not applicable.

(18)

Exceptions to Certification

Not applicable. The FTC certifies that this collection of information is consistent with
the requirements of 5 C.F.R. § 1320.9, and the related provisions of 5 C.F.R. § 1320.8(b)(3), and
is not seeking an exception to these certification requirements.

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