WASHINGTON - Yesterday the U.S. House Committee on Energy and Commerce Subcommittee on Environment and the Economy held a hearing on NACS-supported legislation that would provide fuel retailers with the opportunity to sell new fuels in a responsible and legal manner.

H.R. 4345, the Domestic Fuels Protection Act, was introduced in the House on March 30; a similar Senate version, S. 2264, the Domestic Fuels Act, was introduced on March 29. The "fuel neutral" bills would ensure that equipment that meets the Environmental Protection Agency??s (EPA) equipment compatibility guidelines satisfy all applicable compatibility requirements, protect retailers from misfueling liability and prevent retroactive liability if a fuel sold today is later declared defective.

"[T]he legislation we are discussing today is not about these or any one fuel option at all. H.R. 4345 would apply to any new fuel or fuel additive approved and registered by the EPA," said Subcommittee Chairman John Shimkus. "H.R. 4345 is needed because EPA approved up to 15% ethanol blends only in vehicles whose model year is 2001 or newer. The practical result of EPA??s action has been that a morass of pending legal liability and uncertainty have frightened the market and complicated the supply chains ability to provide a means of delivery for new fuels."

John Eichberger, NACS vice president of government relations, explained to subcommittee members that convenience and fuel retailers want to be able to bring new fuels to market, but that certain challenges remain.

"As we look into the future of the motor fuels market, we know new fuels will be developed. The Renewable Fuels Standard makes this an absolute certainty," he said, adding that as these fuels become available and consumer demand increases, retailers need to be ready to act. H.R. 4345 addresses current roadblocks by addressing "some of the legal issues that are preventing retailers from even considering whether to sell new fuels like E15."

Specifically, H.R. 4345 would:

• Help retailers overcome the challenges of selling new fuels if the goals of the Renewable Fuels Standard (RFS) are to be realized.
• Provide a way for existing retail equipment that is technically compatible with new fuels to be legally recognized as such, thereby eliminating some of the costs associated with unnecessary equipment replacement.
• Protect retailers from retroactive liability should today??s laws governing fuel sales change in the future.
• Remove key legal impediments that make it difficult and impractical, or even impossible, to bring new fuels to market.

Eichberger also noted that retailers take very seriously their role in protecting the environment and led the effort in support of legislation in 2005 that enhanced enforcement of underground storage tank regulations. "Our commitment to ensuring the integrity of our tank systems has not changed," he said, stressing that convenience store operators are a part of their communities and put a high emphasis on ensuring that their tank systems are effective and safe.

He added that NACS members support H.R. 4345 because it provides a clear set of rules that they must comply with that also includes legal protections.

"First, if EPA approves a fuel for only a subset of engines, this bill requires EPA to issue rules to prevent misfueling. The bill does not dictate what rules will be established," Eichberger said, adding that once the EPA issues its final rules on labeling new fuels at the pump, retailers will comply.

"And when they do comply, they want to know that if someone else circumvents the EPA misfueling regulations the retailer will not be held responsible for that person??s actions ?" they should not be held accountable for actions which are beyond their control and H.R. 4345 provides them that protection."

Second, once a new fuel is approved and regulations for selling that fuel are established, or if the regulations change and a new fuel is removed from the market, retailers will adapt and comply. However, Eichberger added that NACS members "do not believe it is reasonable to hold them responsible for complying with rules" that don??t exist yet.

"Basically, our members say, 'Tell us what we have to do and we will do it. But don??t turn around and punish us for someone else??s behavior or hold us responsible if you later change the rules on us,??" he said.

Also speaking at the hearing:

• Charles T. Drevna, president?of the American Fuels and Petrochemical Manufacturers
• Bob Dinneen, president and CEO?of the Renewable Fuels Association
• K. Allen Brooks, senior assistant attorney general and chief of the Environmental Protection Bureau?for the State of New Hampshire
• Shannon Baker-Branstetter, policy counsel for the?Consumers Union, the public policy and advocacy arm of Consumer Reports

Tell your senators and representatives to support H.R. 4345 and S. 2264. For more information about the legislation and for talking points, contact NACS Vice President of Government Relations John Eichberger.