CPSC Backs Away from Regulating Pre-Filled Fuel Additive Containers
After more than three years of sustained advocacy by ILMA and its partner organizations, the Consumer Product Safety Commission (CPSC) has effectively conceded that it lacks authority to regulate fuel additives under the Portable Fuel Container Safety Act (PFCSA). Because the agency has declined to continue litigating the issue, a federal district court decision holding that CPSC exceeded its statutory authority by applying flame mitigation requirements to fuel additive containers now stands as the controlling interpretation of the law.
The CPSC’s Acting Chairman Peter Feldman stated, “The government has elected not to appeal the court’s ruling. The commission’s prior position on fuel additives exceeded the agency’s authority under the statute, was unsupported by incident data, and imposed significant and unnecessary costs on products. Such an approach threatened both the availability of lawful products and the viability of the businesses that manufacture them.”
This outcome represents a significant regulatory victory for ILMA members in the automotive sector. It also underscores the value of ILMA’s sustained advocacy, strategic coalition-building and close engagement with member companies. By combining regulatory expertise, coordinated industry action, and constructive engagement with policymakers, ILMA successfully protected its members from an unlawful and impractical regulatory expansion.
“ILMA remains committed to leveraging its network, legal expertise, and government affairs capabilities to ensure that regulations affecting lubricants and related products are grounded in legal authority, technical feasibility and sound public policy,” stated ILMA CEO Holly Alfano.
Regulatory and Litigation Background
In January 2023, the CPSC finalized a rule requiring all portable fuel containers to be equipped with flame mitigation devices (FMDs). The agency interpreted the rule broadly to include pre-filled fuel additive containers, despite longstanding industry understanding that fuel additives are distinct from fuels normally regulated under the PFCSA.
Although the rule was originally scheduled to take effect in July 2023, the CPSC repeatedly delayed enforcement for pre-filled fuel additive containers. These delays were largely in response to petitions submitted by ILMA and coalition partners detailing the absence of commercially viable flame mitigation technologies, incompatibility with existing packaging formats, and serious supply-chain constraints. The most recent enforcement extension moved the compliance deadline to January 12, 2026.
Separately, a fuel additive manufacturer, Auto-Mark, Inc. (Sea Foam), filed a lawsuit challenging the application of the flame mitigation rule to fuel additive containers. Sea Foam argued that the PFCSA authorizes CPSC to regulate portable containers intended for fuels, not fuel additives, and that the agency unlawfully expanded the statute by interpreting “fuel” to include additives.
In September, a federal judge ruled in favor of Sea Foam. Following the decision, the key remaining question was whether the federal government would pursue an appeal.
ILMA Advocacy
ILMA played a central role in opposing regulatory overreach and advancing a durable solution to protect members in the automotive and specialty chemicals sectors.
Among other efforts, ILMA:
- Submitted and supported formal petitions requesting enforcement delays.
- Publicly supported a petition filed by coalition partner Household & Commercial Products Association (HCPA) seeking the formal exclusion of fuel additive containers from the regulation.
- Engaged directly with CPSC staff and leadership to underscore that fuel additives fall outside the PFCSA’s statutory scope.
ILMA also elevated the issue to political leadership in the Trump administration, joining forces with the Petroleum Packaging Council to submit detailed comments demonstrating that the regulation imposed unjustified costs, constrained packaging supply chains and threatened product availability. ILMA’s government affairs team coordinated outreach with affected stakeholders and worked closely with member companies to engage key members of Congress.
In parallel, the Association maintained communication with Sea Foam throughout its litigation process and explored pathways to support efforts to secure a favorable judicial resolution.
Favorable Outcome
Following the district court’s ruling, ILMA and its coalition partners submitted a formal letter to the CPSC urging the agency not to pursue an appeal. Shortly thereafter, the Department of Justice declined to appeal the decision, effectively allowing the ruling to stand.
As a result, the district court’s holding—that CPSC lacks authority under the PFCSA to regulate fuel additives—has become the law of the land. This outcome removes fuel additive containers from the scope of the flame mitigation device requirement and provides long-term regulatory certainty for manufacturers, distributors and retailers.