Daily Rules, Proposed Rules, and Notices of the Federal Government
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The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. All timely and responsive public comments will be considered by the Commission and will be available to the public on the FTC Web site, to the extent practicable, at
On September 22, 2006, the FTC sought comment on the information collection requirements associated with the Alternative Fuel Rule (“Rule”), 16 CFR part 309 (Control Number: 3084-0094). See 71 FR 55474. No comments were received. Pursuant to the OMB regulations, 5 CFR Part 1320, that implement the PRA, 44 U.S.C. 3501-3520, the FTC is providing this second
The Rule, which implements the Energy Policy Act of 1992, Pub. L. 102-486, requires disclosure of specific information on labels posted on fuel dispensers for non-liquid alternative fuels and on labels on Alternative Fueled Vehicles (AFVs). To ensure the accuracy of these disclosures, the Rule also requires that sellers maintain records substantiating product-specific disclosures they include on these labels.
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 to decide how to market them. “Burden” for PRA purposes is defined to exclude effort that would be expended regardless of any regulatory requirement. 5 CFR 1320.2(b)(2). Moreover, as originally anticipated when the Rule was promulgated in 1995, many of the information collection requirements and the originally-estimated hours were associated with one-time start up tasks of implementing standard systems and processes.
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.
Sub-total: 1,080 hours (550 + 190 + 340).
Sub-total: 22,709 hours (29 + 12.5 + 22,667).
Thus, the total burden for these industries combined is approximately 24,000 hours (1,080 + 22,709), rounded.
Estimated labor costs: $698,000, rounded.
Labor costs are derived by applying appropriate hourly cost figures to the burden hours described above. According to Bureau of Labor Statistics data for 2005 (most recent available whole-year information), the average compensation for producers and distributors in the fuel industry is $19.34 per hour and $9.13 per hour for service station employees; the average compensation for workers in the vehicle industry is $29.90 per hour.
The maximum labor cost for the entire industry is approximately $678,999.10 per year for recordkeeping and producing and posting labels (22,709 total hours × $29.90/hour).
Thus, the estimated total labor cost for both industries for all paperwork requirements is $698,000 ($19,274.02 + $678,999.10) per year, rounded.
Estimated annual non-labor cost burden: $259,000 rounded.
Staff believes that there are no current start-up costs associated with the Rule, inasmuch as the Rule has been effective since 1995. Industry members, therefore, 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 and AFV labels to comply with the Rule. The estimated annual fuel labeling cost, based on estimates of 540 fuel dispensers (assumptions: an estimated 20% of 1,350 total fuel retailers need to replace labels in any given year given an approximate five-year life for labels—i.e., 270 retailers—multiplied by an average of two dispensers per retailer) at thirty-eight cents for each label (per industry sources), is $205.00 ($0.38 × 540).
Here, too, staff believes that there are no current start-up costs associated with the Rule, for the same reasons as stated immediately above regarding the non-liquid alternative fuel industry. However, based on the labeling of an estimated 680,000 new and used AFVs each year at thirty-eight cents for each label (per industry sources), the annual
Thus, the estimated total annual non-labor cost burden associated with the Rule is $259,000 ($205 + $258,400), rounded.