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responsible Flight Standards Office for a FEDERAL TRADE COMMISSION The Rule does not require purpose listed in § 93.309(c), no person manufacturers to explicitly state their may operate an aircraft within 500 feet 16 CFR Part 311 engine oil is substantially equivalent to of any terrain or structure located RIN 3084–AB48 new oil, nor does it mandate other between the north and south rims of the specific qualifiers or disclosures.3 Grand Canyon. Test Procedures and Labeling II. Regulatory Review Program Standards for Recycled Oil ■ 7. In § 93.317, revise the introductory The Commission reviews its rules and text to read as follows: AGENCY: Federal Trade Commission. guides periodically to seek information ACTION: Final rule. § 93.317 Commercial Special Flight Rules about their costs and benefits, regulatory and economic impact, and general Area operation curfew. SUMMARY: The Federal Trade effectiveness in protecting consumers Commission (‘‘FTC’’ or ‘‘Commission’’) Unless otherwise authorized by the and helping industry avoid deceptive has completed its regulatory review of responsible Flight Standards Office, no claims. These reviews assist the the Test Procedures and Labeling person may conduct a commercial Commission in identifying rules and Standards for Recycled Oil (‘‘Recycled Special Flight Rules Area operation in guides warranting modification or Oil Rule’’ or ‘‘Rule’’), as part of the the Dragon and Zuni Point corridors rescission. When it last reviewed the Commission’s systematic review of all during the following flight-free periods: Rule in 2007, the Commission updated current Commission regulations and the reference to API Publication 1509, * * * * * guides. The Commission now updates Fifteenth Edition, and added an the Rule’s reference to American ■ 8. In § 93.321, revise paragraph explanation of incorporation by (b)(4)(iii) to read as follows: Petroleum Institute Publication 1509 to 4 reflect the most recent version of that reference in Section 311.4. In a December 20, 2017 proposed rule § 93.321 Transfer and termination of document. Otherwise, the Commission (82 FR 60334), the Commission initiated allocations. retains the Rule in its current form. a new review and sought comments on, * * * * * DATES: The amendments are effective among other things, the need for the (b) October 24, 2018. The incorporation by Rule, its economic impact, its benefits to reference of the publication listed in (4) consumers, and its burdens on industry this rule is approved by the Director of members, including small businesses. (iii) A certificate holder must notify in the Federal Register as of October 24, The Commission also specifically asked writing the responsible Flight Standards 2018. whether it should update the Rule’s Office within 10 calendar days of a ADDRESSES: Relevant portions of the reference to API Publication 1509 to transfer of allocations. This notification record of this proceeding, including this reflect the most recent version. In must identify the parties involved, the document, are available at https:// response to the proposed rule, the type of transfer (permanent or www.ftc.gov. Commission received seven comments.5 temporary) and the number of FOR FURTHER INFORMATION CONTACT: allocations transferred. Permanent III. Public Comment Analysis and Hampton Newsome, (202) 326–2889, Amendment transfers are not effective until the Attorney, Division of Enforcement, responsible Flight Standards Office Bureau of Consumer Protection, Federal After reviewing the comments, the reissues the operations specifications Trade Commission, Mailstop CC–9528, Commission updates the Rule’s reflecting the transfer. Temporary 600 Pennsylvania Avenue NW, reference to API Publication 1509 and transfers are effective upon notification. Washington, DC 20580. the Rule’s incorporation by reference * * * * * SUPPLEMENTARY INFORMATION: language. Otherwise the Commission retains the Rule in its current form. A § 93.323 [Reserved] I. Background The Recycled Oil Rule, mandated by must develop (and report to the FTC) applicable ■ 9. Remove and reserve § 93.323. standards for determining the substantial the Energy Policy and Conservation Act equivalence of processed used engine oil with new ■ 10. In § 93.325, revise paragraph (a) to (‘‘EPCA’’) (42 U.S.C. 6363), contains engine oil. NIST recommended API Publication read as follows: testing and labeling requirements for 1509 when the Commission originally promulgated recycled engine oil. As indicated in the the Rule in 1995. § 93.325 Quarterly reporting. statute, the Rule’s purpose is to 3 60 FR at 55418–19. As the Commission has previously explained, until NIST develops test (a) Each certificate holder must encourage oil recycling, promote procedures for end uses other than engine oil, the submit in writing, within 30 days of the recycled oil use, reduce new oil Recycled Oil Rule is limited to recycled oil used for end of each calendar quarter, the total consumption, and reduce that purpose. Moreover, because NIST’s test environmental hazards and wasteful procedures and performance standards are the same number of commercial SFRA operations as those adopted by API for engine oils, the conducted for that quarter. Quarterly practices associated with used oil Commission must limit the Rule’s scope to 1 reports must be filed with the disposal. Initially promulgated in 1995 categories of engine oil that are covered by the API responsible Flight Standards Office. (60 FR 55414 (Oct. 31, 1995)), the Rule Engine Oil Licensing and Certification System, as allows manufacturers to represent that prescribed in API Publication 1509. See 72 FR * * * * * processed used engine oil is 14410, n.1 (Mar. 28, 2007). 4 72 FR 14410, 14413 (Mar. 28, 2007). Issued under the authority provided by 49 substantially equivalent to new oil as 5 The public comments are posted at: https:// U.S.C. 106(f) and (g), 44701(a)(5), and Public long as they substantiate such claims www.ftc.gov/policy/public-comments/2018/01/ Law 100–91 in Washington, DC, on using American Petroleum Institute initiative-735. They include: Avista Oil Group September 6, 2018. (API) Publication 1509 (‘‘Engine Oil (Avista) (#00006); American Petroleum Institute 2 (API) (#00007); National Automobile Dealers Carl Burleson, Licensing and Certification System’’). Association (NADA) (#00008); Independent Acting Deputy Administrator. Lubricant Manufacturers Association (ILMA) 1 42 U.S.C. 6363(a). (#00010); NORA, An Association of Responsible [FR Doc. 2018–20176 Filed 9–21–18; 8:45 am] 2 Under EPCA (42 U.S.C. 6363(c)), the National Recyclers (NORA) (#00011); Safety-Kleen (#00005); BILLING CODE 4910–13–P Institute of Standards and Technology (‘‘NIST’’) and Curtiss (#00003).

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discussion of the comments and the industry benefits, API commented the proposed in its December 2017 amendments follow.6 Rule aids companies by allowing sellers proposed rule.12 For instance, Safety- to market re-refined base stocks without Kleen explained that this update will A. Rule Need, Benefits, Costs, and concern that consumers will view ‘‘ensure both virgin and re-refined Compliance recycled oil as a lower quality product. quality levels meet the most current As discussed below, commenters Similarly, NADA contended the Rule standard.’’ ILMA identified no indicated the Commission should retain aids sellers by encouraging growing significant costs to industry for this the Rule because it continues to serve its market acceptance of recycled oil while updated reference. No commenters purpose, benefits both consumers and affording processors marketing opposed the conforming change. industry, imposes no unwarranted costs, flexibility. According to Avista, the Rule In addition, three commenters (API, and has high compliance rates.7 has ‘‘incentivized domestic re-refiners NORA, and ILMA) recommended Several commenters indicated the to pioneer new technology.’’ NORA also amending the Rule to allow for Rule continues to serve EPCA’s indicated that recycled oil has a automatic updates to the ‘‘most recent purposes. For example, NORA ‘‘reduced carbon dioxide footprint.’’ version’’ of the API publication. In the explained that the Rule encourages used Finally, Safety-Kleen stated that a commenters’ view, such a change would oil recycling, promotes recycled oil use, standardized testing and certification preclude the need for the Commission reduces consumption of new oil, and process decreases industry costs. No to publish future Rule updates. reduces hazards and waste associated commenter identified any unwarranted Similarly, API supported automatic with used oil disposal. In addition, in costs associated with the Rule.10 Rule updates, noting Publication 1509 is NORA’s view, the Rule’s substantiation No commenters identified significant generally updated every three to five requirements for recycled oil have compliance issues with the Rule. Safety years. helped remedy a general perception that Kleen explained that the Rule provides Aside from updating the API recycled oil is inferior to new oil. NORA a standardized, objectively verifiable Publication, several commenters urged also indicated that the Rule’s provisions test that can be used to refute false the Commission to refrain from making help encourage consumer demand for claims. In addition, NORA and ILMA any other changes.13 For instance, recycled oil, which creates asserted that companies have little Safety Kleen stated that all the current environmental benefits through oil incentive to engage in deceptive provisions are ‘‘necessary and collection and reuse in place of costly conduct given the potential penalties appropriate.’’ Similarly, no commenters disposal.8 ILMA added that, without the involved. Furthermore, several identified technological changes that Rule, some states may impose their own commenters described ongoing industry necessitate Rule amendments; nor did labeling requirements, potentially efforts to monitor engine oil quality. For they note any conflicts between the Rule creating inconsistencies, which could example, ILMA explained that it runs a and other requirements. NADA advised confuse consumers nationwide. It program to randomly test engine oil that any proposed Rule changes should further explained that the Rule marketed by its members and has found comport with the statute’s goals. furnishes ‘‘an effective regulatory tool’’ high compliance rates. Similarly, Safety- Other commenters, however, to prevent the marketing of ‘‘junk’’ oil.9 Kleen noted that API conducts an After recommended additional revisions. Safety-Kleen concluded the Rule has Market Audit Program that tests First, Avista suggested the Rule allow ‘‘helped to increase acceptance of re- products ‘‘for compliance against the recycled oil marketers to label their refined oil by creating an objective original fluid certification testing,’’ and products as ‘‘equal in quality’’ to new benchmark by which all oil can be API did not identify any significant oil (i.e., oil manufactured from crude measured.’’ compliance problems.11 oil). In its view, technological improvements in the industry during In addition to serving the enumerated B. Suggested Changes and Updates purposes of the statute, commenters the last decade have rendered recycled indicated the Rule provides significant Comments: Commenters oil of equal or better quality than refined benefits to consumers and industry recommended several Rule oil, and this fact ‘‘must be reflected in members. ILMA and API stated it helps amendments, including updating the the new Rule.’’ Some commenters also recommended consumers by providing an additional reference to API Publication 1509, permitting automatic updates to the API changing the Rule’s definitions to make marketplace choice, backed by the API publication, expanding the claims them more consistent with existing performance standards. NORA asserted covered by the Rule, and changing industry usage and practice. NORA that competition encouraged by the Rule several definitions. explained that, in the oil recycling keeps prices low. It also noted the Rule Commenters agreed the Commission industry, the term ‘‘recycled oil’’ helps assure consumers that should update the Rule’s reference to generally refers not only to oil processed ‘‘substantially similar’’ claims for re- API Publication 1509 to reflect the for use as an engine oil (i.e., lubricant) refined lubricants are accurate and seventeenth edition, as the Commission but also to used oil processed for fuel.14 supported by test data. Regarding However, in the Rule, ‘‘recycled oil’’ 10 Commenter Curtiss stated that oil recycling only means re-refined oil successfully 6 The Commission has not published an should be a ‘‘top priority’’ and urged ‘‘continued tested pursuant to the API publication additional proposed rule in this proceeding because improvement of oil recycling.’’ Curtiss also the December 2017 proposed rule provided recommended, without elaboration, that ‘‘this oil be (which addresses engine oil, not fuel). interested persons an adequate opportunity to labeled as such’’ and certified. As discussed in the NORA also noted overlap in the Rule’s comment on the final amendments published here original rulemaking, the Commission has not definitions of ‘‘processed used oil,’’ (i.e., the updated reference to API Publication identified a need for any affirmative disclosure ‘‘recycled oil,’’ and ‘‘re-refined oil.’’ 1509). requirements related to used oil, as long as 7 See, e.g., API, NADA, NORA, and Safety-Kleen. marketers meet the API Publication 1509. See 60 FR Although NORA did not provide 8 Safety Kleen added that recycled oil, which is at 55418–55419. Curtiss also recommended a increasing in availability, ‘‘generates significant deposit system for oil. However, such a system falls 12 See, e.g., API, NADA, NORA, and Safety-Kleen. energy and environmental benefits’’ at a outside the scope of the Commission’s authority. 13 See ILMA and Safety-Kleen. competitive price and helps create domestic jobs. 11 Commenters did not identify any conflicts 14 In addition, ‘‘processed used oil’’ as defined in 9 ILMA also discussed its efforts to address the between the Rule and other requirements, nor did the FTC Rule refers to re-refined used oil, while in sale of ‘‘obsolete oils’’, an issue outside the Rule’s they identify any technological advances that EPA regulations (40 CFR part 279) the same term scope. would warrant changes to the Rule. refers to used oil processed into a fuel.

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specific suggestions, its comments The Commission does not amend the only entities that process used oil to implied that the Commission should Rule to include automatic updates remove impurities, but also entities that harmonize the Rule’s terms with because such an approach is blend processed used oil with new oil. common industry understanding and inconsistent with Office of Federal Although the statute’s definition may otherwise define the terms more Register (OFR) requirements. Under stretch beyond industry’s conventional precisely to avoid confusion. OFR rules, incorporation by reference is use of the term, API did not detail any Similarly, API recommended ‘‘limited to the edition of the problems, for consumers or industry amending the Rule to clearly distinguish publication that is approved’’ and members, caused by the current base stock ‘‘manufacturers’’ from ‘‘oil cannot include future amendments or language, nor did it delineate its marketers’’ (i.e., organizations revisions.16 While the Commission proposal’s benefits. Likewise, there ‘‘responsible for identifying the cannot include such a perpetual update appears to be no need to add a standard met by an engine oil’’).’’ 15 mechanism, it will consider future definition of ‘‘oil marketer’’ or to change Specifically, it urged the Commission to updates to the test procedures in the the scope of ‘‘manufacturer.’’ The Rule’s use the term ‘‘oil marketer’’ in lieu of Rule as part of its periodic reviews. In core provisions already apply broadly to ‘‘manufacturer’’ wherever the Rule the interim, stakeholders may petition ‘‘any manufacturer or other seller,’’ thus addresses entities responsible for oil the Commission if there is a pressing negating the need to expand the Rule’s 20 branding. API also suggested the need for a particular update. existing terms. Commission amend the definition of Likewise, the Commission declines to Finally, the Commission does not ‘‘manufacturer’’ to exclude entities that amend the Rule to address whether change the definition of ‘‘recycled oil’’ blend processed used oil with new oil recycled oil marketers can label their to tie the term to EPA’s used oil or additives by limiting the definition to products as ‘‘equal in quality’’ to new management regulations (instead of the entities that re-refine or otherwise oil. The record does not clearly establish substantial equivalency determination) process ‘‘used oil to remove physical or the basis and need for additional as suggested by API. This change would chemical impurities acquired through affirmative labeling provisions beyond be inconsistent with the statute, which use.’’ the statutory requirement that specifically defines the term ‘‘recycled representations of substantial oil’’ as used oil the manufacturer has API also urged the Commission to determined to be substantially change the definition for ‘‘recycled oil’’ equivalency be based on the NIST standards.17 Furthermore, the FTC Act equivalent to new oil under the so that it refers to oil ‘‘deposited, procedures set out in the Rule. collected, and managed in accordance (15 U.S.C. 45(a)) does not restrict the with’’ EPA’s used oil management scope of truthful advertising claims IV. Regulatory Flexibility Act standards (40 CFR part 279), instead of sellers may make for recycled oil. Indeed, marketers may make recycled The Regulatory Flexibility Act oil determined to be ‘‘substantially (‘‘RFA’’), 5 U.S.C. 601–612, requires an equivalent to new oil for use as engine oil claims beyond those covered by the Rule, as long as such representations are agency to provide a Final Regulatory oil’’ under Publication 1509, as Flexibility Analysis with the final rule, currently required by the Rule. API supported by competent and reliable evidence and do not otherwise violate unless the agency certifies that the rule explained that this change would 18 will not have a significant economic ‘‘clarify oil disposition once it has been the FTC Act. Further, the Commission declines to impact on a substantial number of small introduced’’ into a vehicle engine. In amend the Rule’s definitions. entities. See 5 U.S.C. 603–605. The clarifying the common industry Specifically, the proposed clarification amendment, which merely updates the understanding of various terms, API to the definition of ‘‘processed used oil’’ Rule’s reference to the API publication, noted that the term ‘‘used oil’’ identifies 21 does not appear necessary. Although does not increase the Rule’s burdens. the oil drained from a crankcase; industry members may understand the Accordingly, the Commission certifies ‘‘recycled oil’’ refers to the used oil once term as applying to oil processed for that the amendment will not have a it has entered the used oil management engine lubrication and fuel, the Rule’s significant economic impact on a stream; ‘‘re-refined oil’’ is one method principal provisions clearly involve oil substantial number of small entities. used to repurpose used oil; and recycled ‘‘for use as engine oil.’’ 19 This document serves as notice of that ‘‘processed used oil’’ is a broad term Moreover, the record provides little determination to the Small Business that covers all potential methods used to evidence that the narrow application of Administration. repurpose used oil. this term in the Rule has caused V. Paperwork Reduction Act Discussion: The Commission amends significant problems in the regulated Under the Paperwork Reduction Act the Rule to update the reference to API community or for consumers. Publication 1509, including the Additionally, the Commission (‘‘PRA’’), 44 U.S.C. 3501–3520, Federal regulatory language for incorporation by declines to alter the term agencies must obtain approval from the reference. With the exception of this ‘‘manufacturer’’ or add the term ‘‘oil minor update, the Commission retains 20 See 16 CFR 311.5 and 311.6 (emphasis added). marketer’’ as API recommended. The Under EPCA, ‘‘person’’ is defined to include ‘‘(A) the Rule in its current form. As Rule’s definition for ‘‘manufacturer’’ is any individual, (B) any corporation, company, discussed below, the Commission does consistent with the statutory language association, firm, partnership, society, trust, joint not propose making other changes for that term, which encompasses not venture, or joint stock company, and (C) the suggested by commenters, including government and any agency of the United States or any State or political subdivision thereof.’’ 42 providing for automatic updates to the 16 See 1 CFR 51.1(f). U.S.C. 6202(2). test procedures incorporated by 17 See 60 FR 55414, 55419. 21 The Rule itself permits rather than requires any reference, addressing ‘‘equal in quality’’ 18 The Rule, however, preempts any law, container of recycled oil to bear a label indicating claims for recycled oil in the Rule, or regulation, or order of any State (or political that it is substantially equivalent to new engine oil, changing the Rule’s definitions. subdivision thereof), if it has labeling requirements if such a determination has been made in with respect to the comparative characteristics of accordance with the prescribed test procedures. The recycled oil with new oil that are not identical to Rule imposes no reporting or recordkeeping 15 API recommended the Commission adopt the the labels permitted by the Rule. See 42 U.S.C. requirements, and it permits recycled oil to be ‘‘oil marketer’’ definition in the current version of 6363(e)(1); 16 CFR 311.3. labeled with information that is basic and easily API 1509. 19 See, e.g., 16 CFR 311.1(d), 311.5, and 311.6. ascertainable.

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Office of Management and Budget 2012 (Addendum 1, October 2014, Submit electronic comments in the (‘‘OMB’’) for each collection of Errata, March 2015). The Director of the following way: information they conduct or sponsor. Federal Register approves this Federal eRulemaking Portal: http:// ‘‘Collection of information’’ means incorporation by reference in www.regulations.gov. Follow the agency requests or requirements that accordance with 5 U.S.C. 552(a) and 1 instructions for submitting comments. members of the public submit reports, CFR part 51. You may obtain a copy To ensure timely processing of keep records, or provide information to from API, 1220 L Street NW, comments, the Commission is no longer a third party. 44 U.S.C. 3502(3); 5 CFR Washington, DC 20005; telephone: 202– accepting comments submitted by 1320.3(c). The amended Rule does not 682–8000; internet address: https:// electronic mail (email), except through involve the ‘‘collection of information’’ www.api.org. You may inspect a copy at www.regulations.gov. under the PRA and, therefore, OMB the FTC Library, 202–326–2395, Federal Submit written submissions as approval is not required. Trade Commission, Room H–630, 600 follows: Mail/Hand delivery/Courier (for VI. Incorporation by Reference Pennsylvania Avenue NW, Washington, DC 20580. It is also available for paper, disk, or CD–ROM submissions), Consistent with 5 U.S.C. 552(a) and 1 inspection at the National Archives and preferably in five copies, to: Division of CFR part 51, the Commission Records Administration (NARA). For the Secretariat, Consumer Product incorporates the specifications of the information on the availability of this Safety Commission, Room 820, 4330 following document published by the material at NARA, call 202–741–6030 or East West Highway, Bethesda, MD American Petroleum Institute: API 1509, go to www.archives.gov/federal-register/ 20814; telephone (301) 504–7923. ‘‘Engine Oil Licensing and Certification cfr/ibr-locations.html. Instructions: All submissions received System,’’ Seventeenth Edition, must include the agency name and September 2012 (Addendum 1, October By direction of the Commission. docket number for this notice. All 2014, Errata, March 2015). According to Donald S. Clark, comments received may be posted API, this publication ‘‘describes the API Secretary. without change, including any personal Engine Oil Licensing and Certification [FR Doc. 2018–20273 Filed 9–21–18; 8:45 am] identifiers, contact information, or other System (EOLCS), a voluntary licensing BILLING CODE 6750–01–P personal information provided, to and certification program designed to http://www.regulations.gov. Do not define, certify, and monitor engine oil submit confidential business performance deemed necessary for CONSUMER PRODUCT SAFETY information, trade secret information, or satisfactory equipment life and COMMISSION other sensitive or protected information performance by vehicle and engine [Docket No. CPSC–2015–0016] electronically. Such information should manufacturers.’’ API 1509 is reasonably be submitted in writing. available to interested parties. Members 16 CFR Part 1233 FOR FURTHER INFORMATION CONTACT: of the public can obtain copies of API Keysha Walker, Compliance Officer, Publication 1509 from API, 1220 L Revisions to Safety Standard for U.S. Consumer Product Safety Street NW, Washington, DC 20005; Portable Hook-On Chairs Commission, 4330 East-West Highway, telephone: (202) 682–8000; internet AGENCY: Consumer Product Safety Bethesda, MD 20814; telephone: 301– address: https://www.api.org. 504–6820; email: [email protected]. These standards are also available for Commission. SUPPLEMENTARY INFORMATION: inspection at the FTC Library, (202) ACTION: Direct final rule. 326–2395, Federal Trade Commission, A. Background SUMMARY: In March 2016, the U.S. Room H–630, 600 Pennsylvania Avenue Consumer Product Safety Commission 1. The Danny Keysar Child Product NW, Washington, DC 20580. (CPSC) published a consumer product Safety Notification Act List of Subjects in 16 CFR Part 311 safety standard for portable hook-on Section 104(b)(1)(B) of the CPSIA, Energy conservation, Incorporation by chairs based on the ASTM voluntary also known as the Danny Keysar Child reference, Labeling, Recycled oil, Trade standard for portable hook-on chairs. Product Safety Notification Act, requires practices. ASTM has since published a revised the Commission to promulgate For the reason set forth in the voluntary standard for portable hook-on consumer product safety standards for preamble, 16 CFR part 311 is amended chairs. We are publishing this direct durable infant or toddler products. The as follows: final rule, revising the CPSC’s law requires that these standards are to mandatory standard for portable hook- be ‘‘substantially the same as’’ PART 311—TEST PROCEDURES AND on chairs to incorporate by reference the applicable voluntary standards or more LABELING STANDARDS FOR more recent version of the applicable stringent than the voluntary standards if RECYCLED OIL ASTM standard. the Commission concludes that more DATES: The rule is effective on January stringent requirements would further ■ 1. The authority citation for part 311 15, 2019, unless we receive significant reduce the risk of injury associated with continues to read as follows: adverse comment by October 24, 2018. the product. Authority: 42 U.S.C. 6363(d). If we receive timely significant adverse The CPSIA also sets forth a process ■ 2. Revise § 311.4 to read as follows: comments, we will publish notification for updating CPSC’s durable infant or in the Federal Register, withdrawing toddler standards when the voluntary § 311.4 Testing. this direct final rule before its effective standard upon which the CPSC standard To determine the substantial date. The incorporation by reference of was based is changed. Section equivalency of processed used oil with the publication listed in this rule is 104(b)(4)(B) of the CPSIA provides that new oil for use as engine oil, approved by the Director of the Federal if an organization revises a standard that manufacturers or their designees must Register as of January 15, 2019. has been adopted, in whole or in part, use the test procedures in API 1509, ADDRESSES: You may submit comments, as a consumer product safety standard Engine Oil Licensing and Certification identified by Docket No. CPSC–2015– under this subsection, it shall notify the System, Seventeenth Edition, September 0016, by any of the following methods: Commission. In addition, the revised

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