On March 11, 2008, the Federal Trade Commission (FTC) published a notice in the Federal Register at 73 FR 12916 proposing biodiesel pump labeling requirements in accordance with Section 205 of the Energy Independence and Security Act of 2007.
The labeling proposal addresses three biodiesel blend fuel categories.
1) For biodiesel fuels meeting ASTM D975 that contain no more than five percent biomass-based diesel or biodiesel, no label is required.
2) For biodiesel fuel blends of more than five percent but not more than twenty percent biomass-based diesel and biodiesel, the proposed label contains the language required in Section 205(b)(2) of EISA and additional disclosures. Importantly, the proposed Rule allows pump labels to contain the generic term “biodiesel blend” without specifying the percentage of biodiesel or biomass-based diesel fuel. Under this approach, sellers have the flexibility to provide specific percentages in this blend category but are not required to do so.
3) For biodiesel fuels containing more than twenty percent, the statute mandates that the label state that the fuel blend “contains more than 20 percent biomass-based diesel or biodiesel.” In addition, the proposed amendments specify a label for neat biodiesel (i.e., 100 percent biodiesel).
The proposal states that the labels are to be 3 inches wide and 2.5 inches long. The proposal calls for a purple background for all biodiesel fuel labels. Additional font and formatting details are proposed as well.
Comments on the proposal are due April 7, 2008.
