§2807 — Title 15 Commerce and Trade | U.S. Code

Summary

Franchisors cannot stop gas station owners from adding or selling certain renewable fuels in franchise agreements made or renewed on or after December 19, 2007. Renewable fuel means either fuel that is at least 85% ethanol or a diesel mix that has at least 20% biodiesel or renewable diesel (ignoring any kerosene). Franchise-related document means the franchise contract and any franchisor rule or agreement about selling fuel. Under these agreements, franchisors may not bar a franchisee from installing a renewable fuel pump or tank (but a franchisor can limit tanks on marketing sites it leases), converting existing pumps or tanks if the equipment is warranted or certified as suitable, advertising or selling renewable fuel anywhere on the station, buying renewable fuel from other suppliers if the franchisor does not offer it, listing availability or prices on signs or pumps, or accepting credit cards for renewable fuel. Franchisors may still require reasonable insurance and indemnity. If a contract forces a station to sell three grades of gasoline, the station may swap exactly one grade for a renewable fuel.

Title 15, §2807

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section:

(1)The term “renewable fuel” means any fuel—

(A)at least 85 percent of the volume of which consists of ethanol; or

(B)any mixture of biodiesel and diesel or renewable diesel (as defined in regulations adopted pursuant to section 7545(o) of title 42 (40 CFR, part 80)), determined without regard to any use of kerosene and containing at least 20 percent biodiesel or renewable diesel.

(2)The term “franchise-related document” means—

(A)a franchise under this chapter; and

(B)any other contract or directive of a franchisor relating to terms or conditions of the sale of fuel by a franchisee.

(b)(1)No franchise-related document entered into or renewed on or after December 19, 2007, shall contain any provision allowing a franchisor to restrict the franchisee or any affiliate of the franchisee from—

(A)installing on the marketing premises of the franchisee a renewable fuel pump or tank, except that the franchisee’s franchisor may restrict the installation of a tank on leased marketing premises of such franchisor;

(B)converting an existing tank or pump on the marketing premises of the franchisee for renewable fuel use, so long as such tank or pump and the piping connecting them are either warranted by the manufacturer or certified by a recognized standards setting organization to be suitable for use with such renewable fuel;

(C)advertising (including through the use of signage) the sale of any renewable fuel;

(D)selling renewable fuel in any specified area on the marketing premises of the franchisee (including any area in which a name or logo of a franchisor or any other entity appears);

(E)purchasing renewable fuel from sources other than the franchisor if the franchisor does not offer its own renewable fuel for sale by the franchisee;

(F)listing renewable fuel availability or prices, including on service station signs, fuel dispensers, or light poles; or

(G)allowing for payment of renewable fuel with a credit card,

(2)Nothing in this section shall be construed to preclude a franchisor from requiring the franchisee to obtain reasonable indemnification and insurance policies.

(c)No franchise-related document that requires that 3 grades of gasoline be sold by the applicable franchisee shall prevent the franchisee from selling a renewable fuel in lieu of 1, and only 1, grade of gasoline.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110–140, set out as a note under section 1824 of Title 2, The Congress.

§2807 Prohibition on Restriction of Installation of Renewable Fuel Pumps

Summary

Title 15, §2807

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata