EMA Seeks Application of DOT Flash Point Placarding Exception to E15

Regulatory Alert

EMA Seeks Application of DOT Flash Point Placarding Exception to E15

EMA Regulatory Counsel Contacts: Jeff Leiter and Jorge Roman

Tuesday, April 29, 2025 – EMA submitted comments yesterday to DOT’s Pipeline and Hazardous Materials Safety Agency (PHMSA), supporting the agency’s proposed flash point placarding exception, which would allow fuel transporters to placard cargo tank vehicles based on the lowest flash point for split loads and alternating straight loads of gasoline, diesel, heating oil, and E10 blends. Given recent market and regulatory trends supporting the sale of E15 blends, EMA urged PHMSA to extend the exception to gasoline blends containing up to 15% ethanol in split loads.

Under the federal Hazardous Materials Regulations (HMR), fuel transporters are required to affix placards displaying hazardous material identification numbers and related product characteristics on all cargo tank vehicles. These diamond-shaped placards must be displayed on both sides and the rear of each cargo tank. A special provision in the HMR (49 CFR 172.336) previously allowed the placard cargo to be based on the lowest flash point of the products being transported. This exception enabled energy marketers hauling diesel, heating oil, and gasoline in separate loads to use permanent gasoline (1203) placards, rather than changing placards with each different load. However, in 2015, PHMSA revised its interpretation of this provision, limiting the lowest flash point placarding option only to split loads—where at least one compartment contains gasoline.

EMA successfully worked with Congress to address this issue, resulting in a directive for PHMSA to initiate rulemaking to clarify the flash point exception. In response, PHMSA proposed applying the exception to both split and alternating straight loads. The proposal currently covers gasoline, diesel, heating oil, and E10, and applies to transportation occurring during the previous or current business day. EMA expressed support for this interpretation, viewing it as both legally required and sound public policy.

However, PHMSA’s proposal does not include E15 blends in the flash point placarding exception. EMA explained in its comments the need for PHMSA to align its regulatory approach with evolving fuel policies and market realities involving E15 blends. EMA urged the agency to extend the lowest flash point placarding exception to include compartmented cargo tanks transporting split loads containing gasoline-alcohol blends with up to 15% ethanol.
“EMA is optimistic that our longstanding advocacy efforts on this issue will provide necessary relief for fuel transportation,” said EMA President Rob Underwood. “Hopefully, PHMSA will expeditiously finalize the rulemaking, making the applicability of the flash point exception as broad as safely possible.”

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