U.S. Legislative Updates

Senators John Hoeven (R-ND), Roy Blunt (R-MO), Amy Klobuchar (D-MN) and Mike Crapo (R-Idaho) have introduced the Domestic Fuels Act of 2012. The legislation includes a provision that would prevent a retailer from being held responsible for damages that could occur as a result of misfueling by consumers, so long as the retailer has complied with the U.S. EPA’s misfueling regulations. The proposed legislation would protect retailers against potential liability should consumers use E15 in small engines, vehicles produced earlier than model year 2001, or in any other non-approved engine and would also prevent retailers from being held liable if the consumer’s use of a fuel voids the vehicle/small engine warranty.

The bill, which was also introduced in the House by John Shimkus (R-IL), would also allow the EPA to streamline its approval process to allow underground storage tanks and fuel dispensers to be used for a range of gasoline, diesel, ethanol and various ethanol blends.

The EPA approved E15 for use in model-year 2001 vehicles and beyond, but since there are plenty of vehicles on the road built before 2001, many are concerned that new fuels could find their way into unapproved vehicles, perhaps bringing about lawsuits against retailers and others in the event of a misfueling accident.

While the EPA has taken steps to ensure that this will not happen, such as approving new labels for blended fuels, automakers and retailers are still not entirely confident without liability protection, arguing that these measures still cannot ensure that misfueling won’t happen.

President Obama has signed the 90-day extension of federal transportation funding that was passed by Congress, averting an interruption that would have begun on Saturday, March 31.  The President had encouraged lawmakers to send him a two-year, $109 billion version of the transportation bill that had been passed by the Senate. But the Republican-led House refused to hold a vote on the Senate measure, opting instead for an extension of current law through June 30.

The extension (H.R. 4281), which is now complete with Obama's signature, is the ninth continuance of the last multiyear transportation bill, which was approved by Congress in 2005.That measure — the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) —expired in 2009, and was signed by former President George W. Bush.