McCaskill is continuing to work to address the issue with the FAIR (Future Accountability in Retail) Fuel Act of 2009 legislation requiring the installation [image-nocss] of ATC equipment in all retail gas station dispensers to adjust the price of gasoline as it expands due to warmer temperatures.
Supporters say it is costing Americans an estimated $2.57 billion annually. The retail fueling industry strongly opposes any such legislation.
In a statement provided to CSP Daily News, the National Association of Truck Stop Operators (NATSO), a longtime opponent of "hot fuel" legislation, said, "We're disappointed that Senator McCaskill reintroduced this legislation. Just last week the National Conference on Weights & Measures, after more than two years of debate over proposals to require or allow [ATC] for retail fuel dispensers, voted to withdraw ATC from its agenda. The NCWM cited consensus against ATC as well as economic cost factors, lack of consumer benefit and absence of uniformity in the marketplace as reasons for its decision."
It added, "Since Senator McCaskill first introduced this legislation, a number of studies on ATC have been completed, all of which reached the same conclusion: ATC offers little or no benefit to consumers, only costs."
The National Association of Convenience Stores (NACS), the Petroleum Marketers Association of America (PMAA) and the Society of Independent Gasoline Marketers of America (SIGMA) are among the national groups that have also come out in opposition to such "hot fuel" legislation.
McCaskill said that she was inspired by a 2006 series in The Kansas City Star examining the issue, which prompted her to make a campaign promise to pursue a solution in Congress once elected. McCaskill originally introduced the legislation in 2007.
In addition to requiring all stations to install the new ATC technology within six years, the FAIR Fuel Act would offer assistance for retailers to comply and impose penalties for those who fail to ensure consumers are receiving the gasOLINE for which they have paid.
A similar policy was implemented in Canada 15 years ago because retailers were losing money due to the cold temperature of the fuel they were selling, according to the senator. Earlier this year, U.S. retailer Costco Warehouse LLC agreed to install temperature compensating equipment as a result of a legal settlement.
Groups such as Owner-Operator Independent Drivers Association, Consumer Watchdog and U.S. Public Interest Research Groups (USPIRG) have endorsed the FAIR Fuel Act, McCaskill said.
FAIR Fuel Act:
Requires installation of automatic temperature sensing equipment in all retail gasoline pumps within 6 years of the enactment of the legislation. Gives authority to the Federal Trade Commission (FTC), in conjunction with the National Institute of Standards & Technology (NIST), to implement the requirement with a final rule to be promulgated no later than one year after the enactment of the legislation. Establishes a grant fund for retailers who own or operate five or fewer retail fuel establishments and want assistance to pay for the new equipment. A retailer can receive $1,000 per pump, but no more than $10,000 per retailer. Does not preempt individual states from regulating the sale of "hot fuel" so long as the state standard is equivalent to the federal regulation. Includes certain exemptions for rural retail gasoline establishments. The NCWM said that some consumer advocate groups have claimed that retailers are making unearned profits by selling "hot fuel" to unwary motorists. As fuel gets warm it expands and thus contains less energy per gallon. Likewise, as fuel cools it becomes denser, increasing the energy content; however, nationwide studies demonstrate that the average temperature of fuel at the nozzle is very close to the standard of 60 degrees Fahrenheit. Further studies demonstrate that the costs for equipment upgrades that would be passed on to consumers would greatly outweigh any savings to consumers, even in the far southern states where fuel temperatures may average above 60 degrees.
The NCWM has developed model standards for voluntary adoption by the states since 1905. The debate over ATC for motor fuel began in the 1970s, it said. It was brought back to NCWM in 2004. Some states say they would allow ATC at retail, while other states have made the practice illegal. There are no states where it is mandatory. Regulators comprising the voting body of the NCWM acknowledge that any amendments to the model national standards would not change this.
Click herefor previous CSP Daily News coverage of the "hot fuel" issue.
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