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FTC Proposes Rules on Biodiesel Labeling

March 28, 2008

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The Federal Trade Commission has instituted a proposed rulemaking that will require retailers of certain biodiesel blends to specify those blends by labels on their fuel pumps,
as they are now required to do for, say, 85% blends of ethanol (E-85).
According to the American Trucking Association's State Laws Newsletter, the FTC was required to take this step by Congress in the Energy Independence and Security Act of 2007, which mandates the labeling in some detail.
The commission proposes three ranges of blends. Biodiesel blends no greater than 5 percent biodiesel would remain undisclosed on the pump. Labeling would be required for blends greater than 5 percent but no more than 20 percent biofuel, but the labels will not be required to specify the exact blend, only this 5-20 percent range. The labels for blends containing more than 20 percent biodiesel will require the exact proportion of biodiesel to be disclosed.
The FTC is taking public comments on its proposal through April 7.
"With even the National Biodiesel Board cautioning motor carriers about biodiesel not manufactured to spec, this FTC proposal may not be entirely adequate," says the ATA newsletter.

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