Gasoline Marketing: Consumers Have Limited Assurance That Octane Ratings Are Accurate
RCED-90-50
Published: Apr 16, 1990. Publicly Released: Apr 26, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the Federal Trade Commission's (FTC) and the Environmental Protection Agency's (EPA) implementation of gasoline octane certification and posting requirements.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should amend the Petroleum Marketing Practices Act (PMPA) to include octane certification and posting for gasoline-alcohol blends and other alternative motor fuels that may become available to reduce air pollution. | In October 1992, PMPA was amended by the Energy Policy Act of 1992. Title XV of the Energy Policy Act, Octane Display and Disclosure, requires octane postings for automotive fuels in addition to gasoline. | |
| Congress should amend PMPA to make it clear that states may employ a range of remedies broader than those available under PMPA to enforce octane posting requirements. | In October 1992, PMPA was amended by the Energy Policy Act of 1992. Title XV of the Energy Policy Act, Octane Display and Disclosure, provides states more authority to enforce automotive fuel posting requirements by permitting them to use remedies and penalties that they believe effective in ensuring the accurate posting of octane ratings. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Environmental Protection Agency | The Chairman, FTC, and the Administrator, EPA, in consultation with the appropriate congressional committees and the states, should develop and assess the options that could be employed to monitor compliance with the PMPA octane certification and posting requirements. Such options should include a total federal role, joint federal-state roles, and a total state role in implementing PMPA requirements. This analysis should include, among other things, the benefits and costs of the various options, including necessary control measures, as well as milestones for their implementation. |
On June 21, 1991, FTC and EPA testified on the options to monitor compliance of the octane and posting requirements of PMPA. Also, FTC is conducting octane mislabelling investigations; in March 1991 started a multiyear survey of gasoline distributors to monitor compliance; and is cooperating with state enforcement efforts. Accomplishment report was taken on related legislative recommendations.
|
| Federal Trade Commission | The Chairman, FTC, and the Administrator, EPA, in consultation with the appropriate congressional committees and the states, should develop and assess the options that could be employed to monitor compliance with the PMPA octane certification and posting requirements. Such options should include a total federal role, joint federal-state roles, and a total state role in implementing PMPA requirements. This analysis should include, among other things, the benefits and costs of the various options, including necessary control measures, as well as milestones for their implementation. |
On June 21, 1991, FTC and EPA testified on the options to monitor compliance of the octane and posting requirements of PMPA. Also, FTC is conducting octane mislabelling investigations; in March 1991 started a multiyear survey of gasoline distributors to monitor compliance; and is cooperating with state enforcement efforts. Accomplishment report was taken on related legislative recommendations.
|
| Environmental Protection Agency | The Chairman, FTC, and the Administrator, EPA, in consultation with the appropriate congressional committees and the states, should report the results of their evaluations and their recommendations, along with funding requirements and recommendations for any needed legislative changes, to Congress. |
In June 1991, EPA and FTC apprised the appropriate congressional committee of the results of their efforts to determine the proper federal and state roles and options for satisfying the requirements of PMPA. Accomplishment report was taken on related legislative recommendations.
|
| Federal Trade Commission | The Chairman, FTC, and the Administrator, EPA, in consultation with the appropriate congressional committees and the states, should report the results of their evaluations and their recommendations, along with funding requirements and recommendations for any needed legislative changes, to Congress. |
In June 1991, EPA and FTC apprised the appropriate congressional committee of the results of their efforts to determine the proper federal and state roles and options for satisfying the requirements of PMPA. Accomplishment report was taken on related legislative recommendations.
|
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state relationsFines (penalties)Gas pipeline operationsGasolineLabeling lawLaw enforcementMonitoringQuality controlState programsTesting