[Federal Register Volume 59, Number 126 (Friday, July 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15792]


[[Page Unknown]]

[Federal Register: July 1, 1994]


      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
      
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Part II





Federal Trade Commission





_______________________________________________________________________



16 CFR Part 305




Rule Concerning Disclosures Regarding Energy Consumption and Water Use 
of Certain Home Appliances and Other Products Required Under the Energy 
Policy Act; Final Rule
FEDERAL TRADE COMMISSION

16 CFR Part 305

 
Rule Concerning Disclosures Regarding Energy Consumption and 
Water Use of Certain Home Appliances and Other Products Required Under 
the Energy Policy and Conservation Act (``Appliance Labeling Rule'')

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``Commission'') announces 
amendments to 16 CFR Part 305, hereinafter referred to as ``the 
Appliance Labeling Rule'' or ``the Rule''. The Commission initiated 
this rulemaking to address issues raised by Commission staff and 
interested parties during the course of rule enforcement since 1980. 
Some amendments are to the format of the required EnergyGuide labels. 
Other amendments will require product-specific labels on furnaces; give 
furnace manufacturers the option of disclosing additional energy usage 
information on fact sheets or in an industry directory; modify the sub-
categories used in connection with the ranges of comparability for 
certain products; require the disclosure of different energy usage 
descriptors for some product categories; change the specifications for 
label adhesion strength; and modify the Rule in certain other minor 
respects.

EFFECTIVE DATE: December 28, 1994.

FOR FURTHER INFORMATION CONTACT: James Mills, Attorney, 202-326-3035, 
Enforcement Division, FTC, Washington, D.C. 20580.

SUPPLEMENTARY INFORMATION:

I. Introduction

    On March 5, 1993, the Commission published a Notice of Proposed 
Rulemaking (``the 1993 NPR'') proposing changes to the Rule.\1\ Some of 
the Commission's proposals in the 1993 NPR were based on comments 
submitted in response to an earlier Notice of Proposed Rulemaking 
published on June 13, 1988 (``the 1988 NPR''), proposing changes to the 
Rule.\2\ The Commission initiated this rulemaking in 1988 because 
various interested persons had asked the Commission to consider 
modifications to the Rule since it became effective on May 19, 1980.\3\ 
The 1988 NPR invited comment on a number of suggestions interested 
persons had proposed, including the effect of the National Appliance 
Energy Conservation Act (``NAECA 87'')\4\ appliance efficiency 
standards, and a proposal to exempt from coverage certain unvented 
space heaters.
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    \1\58 FR 12818. The Commission's Rule is codified at 16 CFR Part 
305.
    \2\53 FR 22106.
    \3\The Commission also had received comments during the review 
of the Rule under the Regulatory Flexibility Act regarding ways to 
modify the Rule. The Commission announced the completion of the 
review of the Rule under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) in the Federal Register on June 13, 1988, at 53 FR 
22022.
    \4\The National Appliance Energy Conservation Act (``NAECA 
87''), Pub. L. 100-12, 101 Stat. 103 (1987).
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    The 1993 NPR addressed certain issues and proposed amendments that 
had not been raised in the 1988 NPR, such as changes in the form and 
substance of the EnergyGuide labels, proposals to update the Rule in 
light of changes in related Department of Energy (``DOE'') regulations, 
and changes in the energy efficiency descriptor nomenclature. The 
Commission also allowed comment on the other proposed amendments that 
had been subject to prior comment. The Commission requested in the 1993 
NPR that any such additional comments be in the nature of rebuttal 
comments identifying analytical flaws or misunderstandings, rather than 
repetitions of earlier comments. Finally, in accordance with a 
statutory directive, the Commission invited comment on whether metric 
terms should be included in certain Rule provisions.
    Parts III and IV, below, discuss the issues on which comments were 
sought, the comments the Commission received, and the responsive 
amendments the Commission has adopted. Part V discusses new issues 
raised by the most recent round of comments; Part VI addresses the 
comments on the use of metric terms in connection with certain of the 
Rule's requirements; and Parts VII and VIII discuss the requirements of 
the Regulatory Flexibility Act and the Paperwork Reduction Act, 
respectively. The amended Rule sections appear in ``Text of 
Amendments.''

II. Background

    The Energy Policy and Conservation Act of 1975 (``EPCA''),\5\ as 
amended, requires the Commission to prescribe labeling rules for the 
disclosure of estimated annual energy cost or alternative energy 
consumption information for the following products: (1) Refrigerators, 
refrigerator-freezers, and freezers; (2) room air conditioners; (3) 
central air conditioners and heat pumps; (4) water heaters; (5) 
furnaces; (6) dishwashers; (7) clothes washers; (8) clothes dryers; (9) 
direct heating equipment; (10) kitchen ranges and ovens; (11) pool 
heaters; (12) television sets; (13) fluorescent lamp ballasts; (14) 
specified lamp products; (15) showerheads, except safety shower 
showerheads; (16) faucets; (17) water closets; (18) urinals; and (19) 
any other type of product that the Department of Energy (``DOE'') 
classifies as a covered product. 42 U.S.C. 6292(a); 6294(a)(1), (2)(A-
E). For products in categories (1) through (12) and (19), the 
Commission is not required to prescribe labeling rules until DOE has 
prescribed test procedures to measure the energy use of a particular 
covered product. 42 U.S.C. 6294(b)(3). Moreover, the Commission may 
exempt from the Rule products in categories:
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    \5\Pub. L. 94-163, 89 Stat. 871 (1975), as amended by the 
National Energy Conservation Policy Act, Pub. L. 95-619, 92 Stat. 
3258, (1978), the National Appliance Energy Conservation Act, Pub. 
L. 100-12, 101 Stat 103 (1987), the National Appliance Energy 
Conservation Amendments of 1988, Pub. L. 100-357, 102 Stat. 671 
(1988), and the Energy Policy Act of 1992, Pub. L. 102-486, 106 
Stat. 2776 (1992), 42 U.S.C. 6291 et seq. The Commission is 
currently considering whether to include pool heaters as covered 
products under the Rule. 58 FR 7852 (Feb. 9, 1993). The products in 
categories (14)-(18) were recently added to the list of covered 
products in EPCA by the Energy Policy Act of 1992. 42 U.S.C.A. 
6292(a)(14)-(18) (West Supp. 1993). The Commission amended the Rule 
to address products in categories (15)-(18) on October 25, 1993 (58 
FR 54955) and products in category (14) on May 13, 1994 (58 FR 
25176).
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    (a) 1, 2, 4, 6 and 8 through 12 if it determines that labeling is 
not technologically or economically feasible, 42 U.S.C. 6294(a)(1); 
and,
    (b) 3, 5 and 7 if labeling is not technologically or economically 
feasible or not likely to assist consumers in making purchasing 
decisions, 42 U.S.C. 6294(a)(2)(A).\6\
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    \6\There is an additional exemption provision for lamps that is 
not pertinent to this analysis. See 42 U.S.C.A. 6294(a)(2)(C)(ii) 
(West Supp. 1993).
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    With regard to products in categories (1) through (12) and (19), 
EPCA states that the Commission must require the labels to disclose the 
estimated annual operating cost of such products, as determined by DOE 
test procedures, unless DOE determines that disclosure of estimated 
annual operating costs is not technologically feasible, or the 
Commission determines that such disclosure is not likely to assist 
consumers in making purchasing decisions or is not economically 
feasible. If DOE or the Commission makes these determinations, then the 
Commission must require disclosure of a different useful measure of 
energy consumption, as determined in accordance with DOE test 
procedures. 42 U.S.C. 6294(c).
    On November 19, 1979 the Commission issued a final Rule covering 
seven appliance categories then covered by DOE test procedures: 
refrigerators and refrigerator freezers, freezers, dishwashers, water 
heaters, clothes washers, room air conditioners, and furnaces.\7\ The 
Rule subsequently was amended to cover central air conditioners and air 
conditioning heat pumps, fluorescent lamp ballasts, plumbing products, 
and lamps.\8\ For most product categories, the Rule requires that 
annual operating costs in dollars and related information be disclosed 
on labels, called EnergyGuides, and in retail sales catalogs. For three 
categories (room air conditioners, furnaces, and central air 
conditioners (including heat pumps)), in which usage cycles depend on 
disparate climate conditions across the U.S. and an ``average'' energy 
cost would be irrelevant to many consumers (and therefore not likely to 
assist in making purchasing decisions), the required disclosure is the 
energy efficiency rating (``EER'').\9\ For room and central air 
conditioners, the EERs must be disclosed on labels; for furnaces, the 
EERs must be disclosed on fact sheets.\10\ Corresponding cost 
information must be disclosed on the label for room air conditioners, 
on fact sheets for furnaces, and on fact sheets or in an industry 
directory for central air conditioners.\11\ In addition, certain point-
of-sale promotional materials must disclose the availability of energy 
cost or energy efficiency rating information.
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    \7\16 CFR Part 305. The Statement of Basis and Purpose (``SBP'') 
for the Rule describes why the Commission exempted the other 
categories. 44 FR at 66467-69.
    \8\52 FR 46888 (Dec. 10, 1987) (air conditioners and heat 
pumps); 54 FR 28031 (July 5, 1989) (lamp ballasts; pursuant to the 
National Appliance Energy Conservation Amendments of 1988, the Rule 
requires these products to bear a capital letter ``E'' to show that 
they meet the statute's minimum energy efficiency standards, rather 
than the information the Rule requires for other product 
categories); 58 FR 54955 (Oct. 25, 1993) (showerheads, faucets, 
water closets and urinals; water usage, rather than energy usage, 
must be disclosed for these products); 58 FR 25176 (May 13, 1994) 
(general service incandescent lamps including incandescent reflector 
lamps, compact fluorescent lamps, and general service fluorescent 
lamps).
    \9\When promulgating the test procedures, DOE, as required by 
EPCA, developed two measures of energy consumption for each 
appliance category; (1) estimated dollar cost of operation, and (2) 
the energy factor, a measure of the useful output of an appliance's 
services divided by the energy input. For climate control equipment, 
under the Rule, the energy factor currently must be referred to as 
the ``EER'' (energy efficiency rating). As discussed in Part 
IV.B.3., below, however, the Commission is amending the Rule so that 
the acronyms used in the DOE tests and by the industry (``SEER,'' 
AFUE,'' ``HSPF,'' etc.) instead must be used in advertising as well 
as on fact sheets and labels.
    \10\As discussed in Part IV.A.2., below, however, the Commission 
is amending the Rule to require labels for furnaces to disclose 
product-specific information and a range of energy usage for all 
furnaces using the same fuel as the labeled model.
    \11\As discussed in Part IV.A.2., below, the Commission is 
amending the Rule to permit manufacturers of furnaces, like 
manufacturers of central air conditioners, to disclose the 
additional information in an industry directory.
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III. Issues Discussed in the 1993 NPR

    The 1993 NPR solicited comments on two sets of issues. The first 
set included proposals on which the Commission had sought comment in 
the 1988 NPR and about which the Commission had reached tentative 
conclusions. The 1993 NPR summarized the comments received in response 
to the 1988 NPR and explained the Commission's tentative conclusions. 
For these proposals, listed below, the 1993 NPR solicited only limited 
rebuttal comments:
    (1) The effect of the implementation of NAECA 87 on the Rule;
    (2) Proposed amendments to the requirements for furnaces;
    (3) Proposed amendments to the requirements for central air 
conditioners;
    (4) Proposed amendments to change the sub-categories on which 
ranges of comparability are based for room air conditioners;
    (5) Proposed amendments to change the sub-categories on which 
ranges of comparability are based for certain other products;
    (6) Proposed amendments to change the energy usage descriptor for 
several products from dollars to an alternate descriptor;
    (7) Proposed changes to the label adhesion strength requirements;
    (8) An industry suggestion to label only display models in retail 
outlets;
    (9) A proposal to extend the ``directory option'' to manufacturers 
of water heaters; and,
    (10) A proposal to label certain unvented heaters.
    The 1993 NPR also solicited comments on a second group of 
proposals, listed below, that had not been previously discussed in the 
1988 NPR:
    (1) An industry proposal to exempt central air conditioners from 
labeling requirements;
    (2) Minor revisions to update and improve the Rule;
    (3) Using, in lieu of the term ``EER,'' the industry terms 
``AFUE,'' ``SEER,'' and ``HSPF'' as the required descriptors of the 
energy usage of climate control products; and,
    (4) Changing the format of the required EnergyGuide labels.
    The 1993 NPR also solicited comment on whether the Commission 
should require metric measurements. Finally, to obtain information 
relating to the Regulatory Flexibility Act and Paperwork Reduction Act, 
the 1993 NPR asked about the effect of the proposed amendments on small 
businesses and the burden of the Rule's reporting and recordkeeping 
provisions.
    In accordance with 42 U.S.C. 6306(a), the 1993 NPR afforded 
interested persons the opportunity to present their views in writing 
and orally at a public hearing. The Presiding Officer did not receive 
any requests for an oral presentation, so no hearing was held. During 
the comment period, which extended from March 5 through May 20, 1993, 
the Commission received 34 comments.\12\ These comments were from five 
appliance manufacturers, three appliance industry trade associations, 
nineteen public utilities, two utilities trade associations, two state 
energy offices, one federal agency, one city and one consumer 
group.\13\
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    \12\The comments are found on the Public Record at the Federal 
Trade Commission in Washington, DC under Rulemaking Record Number 
R611004 (Appliance Labeling Rule). They are grouped under Category D 
(Comprehensive Review--Industry Comments) and Category DD 
(Comprehensive Review--Comments from Other Sources). Other material 
submitted to the Public Record in this proceeding can be found under 
Category A (Public Notices and Petitions) and Category B 
(Miscellaneous Staff Materials Assembled Prior to the Initiation of 
the Rulemaking Proceeding).
    \13\The commenters were: Amana, D-1 and D-2 [references will be 
to D-1, which is the later version]; Whirlpool Corporation 
(``Whirlpool''), D-3; Maytag, D-4; The Association of Home Appliance 
Manufacturers (``AHAM''), D-5; The Air-Conditioning and 
Refrigeration Institute (``ARI''), D-6; New Harmony Systems 
Corporation (``New Harmony''), D-7; Speed Queen, D-8; The Gas 
Appliance Manufacturers Association (``GAMA''), D-9; Public Service 
Company of North Carolina, Inc. (``PSCNC''), DD-1; Brooklyn Union 
Gas (``Brooklyn Gas''), DD-2; The Peoples Gas Light and Coke Company 
(``Peoples Gas''), DD-3; Mississippi Valley Gas Company 
(``Mississippi Gas''), DD-4; Pennsylvania Gas and Water Company 
(``PG&W''), DD-5; Atlanta Gas Light Company (``Atlanta Gas''), DD-6; 
Piedmont Natural Gas Company (``Piedmont Gas''), DD-7; The American 
Council for an Energy Efficient Economy (``ACEEE''), DD-8; The 
Washington State Energy Office (``WSEO''), DD-9; Elizabethtown Gas 
Company (``Elizabethtown Gas''), DD-10; Covington Gas Company 
(``Covington Gas''), DD-11; The U. S. Environmental Protection 
Agency (``USEPA''), DD-12; Gibson County Utility District (``Gibson 
County Utility''), DD-13; Mountain Fuel Supply Company (``Mountain 
Fuel''), DD-14; Texas Gas Transmission Corporation (``Texas Gas''), 
DD-15; City of Palmdale (``Palmdale''), DD-16; Oklahoma Natural Gas 
Company (``Oklahoma Gas''), DD-17; Memphis Light, Gas and Water 
Division (``Memphis Electric and Gas''), DD-18; Louisville Gas and 
Electric Company (``LG&E''), DD-19; Laclede Gas Company (``Laclede 
Gas''), DD-20; The Electric & Gas Industries Association (``EGIA''), 
DD-21; The American Gas Association (``AGA''), DD-22; The California 
Energy Commission (``CEC''), DD-23; ENTEX, a Division of ARKLA, Inc. 
(``ENTEX''), DD-24; Consolidated Natural Gas Company (``CNG''), DD-
25; UGI Utilities, Inc. (``UGI'') DD-26.
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IV. Discussion of Comments and Disposition of Issues

A. 1988 NPR Issues on Which Limited Comment Was Solicited

1. The Effect of the Implementation of NAECA 87 on the Rule
    NAECA 87 established minimum efficiency standards for many 
appliances covered by the Rule, which became effective at staggered 
intervals between January 1, 1988, and January 1, 1993.\14\ DOE has 
adopted rules implementing the standards requirements (hereinafter 
``DOE's Minimum Efficiency Standards Rule'').\15\ The 1988 NPR asked 
whether these standards would narrow the energy usage ranges of 
comparable products to the point that labeling would no longer be 
useful and whether, for this reason, the Rule should be modified.\16\ 
In the 1993 NPR, the Commission tentatively concluded that the 1988 NPR 
record did not support eliminating any product categories because of 
the new NAECA 87 product standards.\17\
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    \14\See 42 U.S.C. 6295. After the effective date of a standard, 
the manufacture of non-complying products is prohibited. See 42 
U.S.C. 6302(a)(5).
    \15\10 CFR Part 430, Subpart C.
    \16\Manufacturers annually submit to the Commission energy usage 
data for their various appliance models. The Commission analyzes 
these data and publishes ``ranges'' consisting of the highest and 
lowest energy use figures for certain appliance categories. The 
manufacturers disclose the industry-wide ranges on their EnergyGuide 
labels by means of a bar scale, with a mark indicating where their 
appliances fall on the bar. For example, the 1992 range for standard 
size dishwashers was from $46.00 to $82.00 (when using electrically 
heated water) and from $25.00 to $46.00 (when heating water with 
gas). Some manufacturers suggested that, once efficiency standards 
are implemented, the range for a given product could be so limited 
(for example, from $39 to $41) that providing range information 
would not be useful.
    \17\See 58 FR 12819-20 (March 5, 1993).
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    Two comments addressed the Commission's tentative 1993 NPR 
conclusion. CEC agreed with the Commission that the record does not 
support eliminating any product categories.\18\ AHAM recommended that 
the Commission continue the Rule, but monitor the effect of the new 
energy standards on the products being offered for sale.\19\ 
Accordingly, the Commission concludes that the current comments do not 
support any modification of its earlier tentative decision not to 
eliminate any specific product category from coverage because of the 
NAECA 87 minimum efficiency standards.
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    \18\CEC, DD-23, 3.
    \19\AHAM, D-5, 3.
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2. Furnace Labeling Requirements
    a. Current furnace labeling requirements. Currently, furnaces 
(which are defined to include boilers) must bear a label containing 
only general energy-saving tips and referring the consumer to a fact 
sheet that retailers must make available to consumers. 305.3(g); 
305.11(a)(5)(ii) and Figure 3; 305.11(b)(1)(ii).\20\ The fact sheets 
show the combinations of components available and the overall 
efficiency of any set of component combinations.\21\ In addition, the 
fact sheets provide costs grids for estimating what the ``system'' 
would cost the consumer to operate, depending on geographic location 
and utility rate structures. 305.11(b)(3)(viii).
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    \20\The Commission's reasons for the current label and fact 
sheet disclosure requirements for furnaces are discussed in the SBP 
at 44 FR 66470-71.
    \21\For example, whether the furnace would be available with a 
vent damper, standby pilot, automatic ignition, etc.
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    b. The Directory option and product-specific label amendments. The 
1988 NPR proposed to require that the furnace labels disclose (a) the 
specific product's energy factor, identified as the EER, (b) a 
``generic'' range of EER's for all furnaces that use the same fuel as 
the labeled unit, and, (c) stronger language directing consumers to 
either fact sheets or a directory for detailed cost information.
    The 1993 NPR analyzed the comments and proposed amending the Rule 
to require each furnace to bear a label that discloses product-specific 
information showing the unit's annual fuel utilization efficiency 
(``AFUE'') and a generic range based on the sub-categories in DOE's 
Minimum Efficiency Standards Rule. The Commission also proposed 
permitting manufacturers that are members of an industry trade 
association with a certification program and a directory to make the 
required efficiency and cost disclosures through the directory instead 
of preparing fact sheets, provided that the directory met the Rule's 
criteria.\22\
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    \22\See the discussion in the 1993 NPR at 58 FR 12820-23. In 
addition to these product-specific label and directory option 
modifications to the Rule, the Commission proposed the following 
specific requirements to accommodate several potential difficulties 
with product-specific labels that some comments raised (see the 
discussion at 58 FR 12822-23):
    (1) When the working units of boilers (or furnaces) are shipped 
separately from the outer jackets, the units would have to be 
labeled with hang-tag labels that also have adhesive backing, so the 
installer could affix the label to the outside of the jacket after 
the unit is installed;
    (2) When boilers are shipped with more than one input nozzle, 
they would have to be labeled to show the AFUE of the unit when it 
is set up with the highest firing rate; and,
    (3) Boilers that may be set up as either steam or hot water 
units would have to be labeled with the hot water AFUE.
    The Commission did not receive comment on these 1993 NPR 
proposals, and has incorporated them into the Rule. See section 
305.11(a)(5)(ii)(J)-(L) of the amended Rule in ``Text of 
Amendments,'' below.
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    Five comments responded to the 1993 NPR's request for comments on 
the above proposals. Amana stated that most central furnace dealers 
also sell central air conditioning products, so allowing furnace 
manufacturers the option of being listed in an industry directory in 
lieu of providing facts sheets would standardize the labeling protocol 
for these very similar product classes.\23\ Amana stated, however, that 
product-specific furnace labels are of minimal value to consumers for 
the reasons previously given by GAMA.\24\ GAMA again opposed a product-
specific furnace label requirement, but supported the directory option. 
It noted that the proposed distribution requirements for directories 
are reasonable.\25\
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    \23\Amana, D-1, 1.
    \24\Amana, D-1, 2. GAMA's reasons for opposing product-specific 
furnace labels are detailed in the 1993 NPR at 58 FR 12821. See also 
GAMA's comment (D-9) at page 1.
    \25\GAMA, D-9, 1-2.
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    CEC stated that product-specific information on individual products 
is helpful both to CEC's own standards program and the State's utility 
incentive programs.\26\ A building code inspector also commented that 
his job is made easier and quicker when there are product-specific 
labels on appliances. Otherwise, it is time-consuming for inspectors to 
track down the information needed to approve a new or replacement 
installation of equipment.\27\
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    \26\CEC, DD-23, 4. CEC stated that it is often difficult to 
identify the precise model from the model numbers contained in 
reported information alone, and that it is very useful to have the 
energy usage on the label attached to the model itself.
    \27\City of Palmdale, DD-16, 1.
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    Laclede Gas suggested that if product-specific labels are required, 
they should show detailed cost information as well as the AFUE.\28\
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    \28\Laclede Gas, DD-20, 5.
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    Based on these comments, the Commission has determined to adopt its 
proposed amendments. GAMA's reasons for opposing furnace labeling 
continue to be unpersuasive to the Commission.\29\ Similarly, the 
Commission continues to believe that requiring cost information on 
furnace labels (as suggested by Laclede Gas) is not advisable, for the 
reasons discussed in the Rule's Statement of Basis and Purpose.\30\ 
Therefore, the Commission is amending the requirements for furnaces as 
proposed in the 1993 NPR. See sections 305.11(a)(5) and .11(c) of the 
amended Rule in ``Text of Amendments,'' below.
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    \29\See the discussion at 58 FR 12821-22.
    \30\See 44 FR 66466 at 66470-71. The differences in regional 
climate and consumer use patterns make it impractical to disclose 
estimated annual operating cost as the primary energy usage 
disclosure for these products.
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    c. New sub-categories for furnaces.
    The 1988 NPR proposed that the ranges of comparability for furnaces 
be reduced from the 70 currently required ranges to a single 
``generic'' range for each fuel type (gas, oil, and electric).\31\ The 
1993 NPR proposed instead to adopt as the Rule's ranges of 
comparability for furnaces the nine sub-categories for furnaces listed 
in NAECA 87 and used in DOE's Minimum Efficiency Standards Rule, which 
include a sub-category for both forced-air furnaces and boilers of each 
fuel type and separate sub-categories for small gas furnaces, mobile 
home furnaces, and gas steam boilers.\32\
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    \31\The 70 currently required ranges consist of fourteen ranges, 
according to capacity rating (in Btu's of input per hour), for each 
of the three fuel types, with furnaces and boilers fueled by natural 
gas and oil broken out separately. A ``generic range'' would 
encompass all sizes within a fuel type (i.e., one range, rather than 
fourteen ranges based on capacity groupings, for electric furnaces). 
See 53 FR 22109.
    \32\58 FR 12823; 12839-46 (Proposed Appendices G1-G9 to the 
Rule). The Commission's reasons for proposing the NAECA 87 sub-
categories for furnaces were as follows:
    Using the DOE sub-categories would result in consistency between 
the ranges required by the Rule and DOE's minimum efficiency 
standards for these sub-categories and thus help manufacturers. 
These sub-categories also would help consumers in their shopping 
efforts. For example, for non-gas-steam boilers, the lowest 
efficiency permitted by the standards is 80% (75% for gas-steam 
boilers). The low end of a single range for all gas-fueled boilers 
(as proposed in the [1988] NPR) would be 75%. Using that figure as 
an end point on the range would inaccurately suggest to a shopper 
looking for a gas/hot water boiler that a model with an efficiency 
of 75% would be available, when the least efficient model of that 
sub-category permitted by the standards would be 80% efficient. 
Under the system proposed today, with separate ranges for each sub-
category, the ranges for boilers (except gas-steam) would show the 
bottom end of the efficiency range to be at the pertinent minimum 
efficiency standard of 80%.
    Id. at 12823.
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    Three comments addressed this issue. Amana commented that the NAECA 
87 categories would improve consumers' ability to compare products.\33\ 
GAMA and CEC also supported the proposal, but recommended against 
establishing a separate category for ``Small Furnaces.''\34\ GAMA 
stated that all warm-air furnaces (other than mobile home furnaces) 
have to meet the same standard and that the NAECA standards, as GAMA 
believes they will be amended, will not make a distinction between 
``furnaces'' and ``small furnaces.''\35\ CEC showed, on the basis of 
energy usage figures relating to furnaces marketed in California and 
received by CEC in connection with its own minimum efficiency standards 
program, that the ranges of comparability of Gas Furnaces and Small Gas 
Furnaces are identical at the low end (the minimum efficiency standard) 
and virtually the same at the high end. CEC also suggested minor 
nomenclature revisions for purposes of clarification.\36\
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    \33\Amana, D-1, 1.
    \34\GAMA, D-9, 2; CEC, DD-23, 4-5.
    \35\GAMA, D-9, 2. The DOE minimum efficiency standards for both 
of these sub-categories are the same (78% AFUE). See 10 CFR 
430.32(e) (1992).
    \36\For example, renaming the categories other than ``Mobile 
Home Furnaces'' to indicate that they do not include mobile home 
furnaces, and changing ``Boilers-Gas (except gas/steam)'' to 
``Boilers-Gas (except steam)'' for consistency. CEC, DD-23, 5. The 
Commission believes that following this suggestion could result in 
confusion because of the resultant difference in nomenclature 
between DOE's furnace sub-categories and the Commission's. 
Therefore, the Commission is not adopting CEC's suggestion.
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    Based on these comments, the Commission is amending Appendix G to 
the Rule (pertaining to furnaces) in general accordance with the 1993 
NPR proposal. The Commission is persuaded by the GAMA and CEC comments, 
however, that adoption of the proposed sub-category ``Appendix G2 to 
Part 305--Small Furnaces--Gas (Under 45,000 Btu's/hr. Input)'' would 
not provide consumers with significantly different efficiency 
information from what the Furnaces--Gas sub-category (Appendix G1) will 
provide. See the amendments to Appendix G in ``Text of Amendments,'' 
below.
3. Central Air Conditioner and Heat Pump Amendments to Require Range 
Information on Fact Sheets or in Directories (as Well as on Labels)
    Currently, for central air conditioners and heat pumps, the Rule 
requires that range information appear only on the label.37 In the 
1988 NPR, the Commission sought comment on a proposal to amend the Rule 
to require that the EER and range information appear in fact sheets or 
directories as well as on the labels. This proposal was expected to 
assist consumers who might not see the labeled units because they are 
shopping for these products through directories or fact sheets.38
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    \3\7305.11(a)(5)(iii)(D) and (E).
    \3\853 FR 22109, note 17.
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    In the 1993 NPR, noting that no comment was received on this issue 
in response to the 1988 NPR, the Commission tentatively concluded that 
adoption of this requirement would be in the public interest. The 
Commission also noted that ARI's current practice was (as it still is) 
to include the ranges in its Directory.39 Amana supported this 
proposal without giving any specific reasons.40
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    \3\9See 58 FR 12823-24.
    \4\0Amana, D-1, 2.
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    The Commission has determined to amend the Rule as proposed to 
require that the EER and range information appear on fact sheets or in 
directories as well as on labels, for the reasons expressed in the 1988 
NPR. This amendment parallels the requirements being announced today 
for furnaces. See sections 305.11(b)(3)(vi) and .11(c)(3)(vi) of the 
amended Rule in ``Text of Amendments,'' below.
4. Proposed Amendments to Modify Room Air Conditioner Range Sub-
categories
    Currently, Appendix E to the Rule contains 37 ranges for room air 
conditioners. The energy efficiency range information the Commission 
published prior to 1988 indicated that the range of efficiencies of 
room air conditioners was virtually the same for each of the capacity 
groupings. Accordingly, reducing the number of ranges from 37 to one 
was expected to decrease the industry's labeling burden without 
affecting the information provided to consumers, and the 1988 NPR 
proposed amending this provision to establish a single generic 
range.41
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    \4\1See 53 FR 22109.
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    The comments in response to the 1988 NPR on this proposal, however, 
persuaded the Commission that, because products in the different sub-
categories have different features and applications and were required 
to meet (as of January 1, 1990) different minimum efficiency standards, 
consumer confusion could result if there were only a single product 
category range. Further, because NAECA 87 and the DOE's Minimum 
Efficiency Standards Rule set five different minimum EER's among the 
ten different capacity groupings, different capacity grouping also 
seemed justified.42 Therefore, the 1993 NPR proposed amending the 
Rule to include the sub-categories and capacity groupings for room air 
conditioners appearing in DOE's Minimum Efficiency Standards Rule 
(which were derived from NAECA 87).
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    \4\2See 42 U.S.C. 6295(c) and 54 FR 6062, at 6077 (Feb. 7, 
1989).
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    Four comments addressed this issue. Whirlpool unequivocally 
supported adoption of the proposed NAECA 87/DOE sub-categories.43 
AHAM stated that, although there was no consensus among its membership 
as to how to group the products, all agree the existing 37 sub-
categories are too many.44 Amana agreed with reducing and 
reorganizing the subcategories, but suggested its own groupings, which 
are somewhat more detailed than those proposed in the 1993 NPR.45 
CEC stated that it is not necessary for the Commission to use divisions 
for ranges of comparability that DOE uses for setting standards.46 
CEC, therefore, suggested instead two sub-categories: ``Non-heat-
pumps'' (broken down into three capacity groupings) and ``Heat Pumps'' 
(in one all-inclusive capacity grouping.)47
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    \4\3Whirlpool, D-3, 4.
    \4\4AHAM, D-5, 3-4.
    \4\5Amana, D-1, 2, Attachment. Beyond stating that the proposal 
does not ``accurately group similar products,'' however, Amana did 
not explain why its suggested groupings would be preferable to those 
proposed in the NPR.
    \4\6CEC, DD-23, 6.
    \4\7Id. at 8. The comment contained sample ranges of 
comparability charts based on CEC's recommended sub-categories. CEC 
derived the sample range charts using energy usage data on room air 
conditioners sold in California that had been submitted to CEC in 
connection with CEC's minimum efficiency standards program. CEC also 
provided figures showing the number of each model type in each 
grouping that was marketed in the State of California.
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    CEC's more inclusive sub-categories may frustrate consumers looking 
for the most efficient product with particular features because they 
group together room air conditioners with many different 
features,48 On the other hand, Amana did not explain sufficiently 
why its numerous sub-categories are preferable. The Commission finds 
that the sub-categories proposed in the 1993 NPR are sufficiently 
detailed to help consumers select the most efficient product with the 
features they want. Accordingly, Appendix E of the amended Rule in 
``Text of Amendments,'' below, reflects the groupings proposed in the 
1993 NPR.
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    \4\8For example, louvered room air conditioners cannot be used 
for through-the-wall installation, so consumers looking for a built-
in product would find efficiency information for the louvered 
products superfluous.
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5. Other Products--Proposals to Change Sub-categories
    a. Refrigerators, Refrigerator-freezers and Freezers. Under the 
current Rule, there is one range category for refrigerators, one for 
refrigerator-freezers, and one for freezers.49 In response to the 
1988 NPR, four comments recommended that the Commission adopt new range 
categories that parallel the sub-categories established by NAECA 87 and 
prescribed in DOE's Minimum Efficiency Standards Rule.50
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    \4\9See Appendices A-1, A-2 and B.
    \5\0See the discussion in the 1993 NPR at 58 FR 12824-25. NAECA 
87 divides refrigerators and refrigerator-freezers into seven sub-
categories, based on the configuration of the doors to the two 
compartments and whether the defrost systems are manual or 
automatic. It divides freezers into three sub-categories: two for 
upright (depending on type of defrost system) and one for chest and 
all other types of freezers. DOE has adopted these sub-categories in 
its Minimum Efficiency Standards Rule. See 10 CFR 430.32(a).
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission proposed adopting the NAECA 87 
refrigerator, refrigerator-freezer and freezer sub-categories. The 
Commission stated that the NAECA 87 sub-categories would enable a 
consumer who has decided on a product with certain features and a 
specific door configuration to see a cost range on the label that 
includes only models with the same features as the labeled unit. The 
1993 NPR also proposed adding a sub-category for ``All-Refrigerators 
with Automatic Defrost'' (meaning a single-door refrigerator, with 
automatic defrost, that has a small compartment for ice trays but no 
compartment for frozen food storage), noting that a separate range 
would be useful to those consumers who are looking only for such a 
product.51 In addition, the Commission proposed changing the span 
of the capacity groupings within the sub-categories from two cubic feet 
to four cubic feet.52 This would result in fewer (and larger) 
groupings within each of the 11 sub-categories, with more models within 
each group for consumers to compare.
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    \5\1The DOE test procedure for refrigerators and refrigerator-
freezers defines ``all-refrigerator'' as ``an electric refrigerator 
which does not include a compartment for the freezing and long time 
storage of food at temperatures below 32 degrees F (0.0 degrees C). 
It may include a compartment of 0.50 cubic capacity (14.2 liters) or 
less for the freezing and storage of ice.'' 10 CFR Part 430, Subpart 
B, Appendix A-1, 1.4 (1992).
    \5\2For example, instead of grouping products in increments of 
two cubic feet, such as: 5.5 to 7.4, 7.5 to 9.4, etc., the amended 
appendices would group them in four-cubic-foot increments, such as: 
5.5 to 9.4, 9.5 to 13.4, etc.
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    Four comments addressed these proposals. Amana, Whirlpool and AHAM 
supported adoption of the NAECA 87 sub-categories.53 Amana also 
supported changing from two- to four-cubic-foot increments,54 but 
Whirlpool and AHAM opposed this change. Whirlpool contended that such 
increments would depict larger units in a given category as being less 
efficient, which would be inaccurate, since ``a higher kWh/year does 
not mean the unit is less efficient.''55 AHAM said four-cubic-foot 
increments would make it harder for consumers to compare the energy 
efficiency of similarly sized products.56
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    \5\3Amana, D-1, 1; Whirlpool, D-3, 4; AHAM, D-5, 4-5.
    \5\4Amana, D-1, 1.
    \5\5Whirlpool, D-3, 4.
    \5\6AHAM, D-5, 4-5.
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    CEC disagreed with the 1993 NPR's proposed sub-categories, 
critiquing some assumptions and definitions upon which they were 
based.57 In addition, CEC opposed the Commission's proposal to 
adopt a sub-category for ``All-refrigerators with Automatic Defrost,'' 
noting that the term ``All-refrigerator'' is not used in DOE's Minimum 
Efficiency Standards Rule, and is defined only in the DOE test 
procedure for refrigerators, refrigerator-freezers and freezers.58
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    \5\7CEC, DD-23, 9-19.
    \5\8Id. at 11. A footnote in the table setting out the minimum 
efficiency standards for refrigerators, refrigerator-freezers and 
freezers in DOE's Minimum Efficiency Standards Rule refers to ``all 
refrigerators with automatic defrost,'' without a hyphen between 
``all'' and ``refrigerators.'' CEC contends that this simply means 
``all refrigerators,'' which could just as easily be written 
``refrigerators.''
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    CEC proposed sub-categories very similar to those currently 
provided in the Rule. The CEC proposal is based on an analysis of 
different possible sub-category combinations using the actual number of 
these products in the State of California.59 The recommended sub-
categories were: Refrigerators; Refrigerator-freezers; and Freezers 
(with a further breakout into Upright and Chest). Capacity groupings 
were in four-cubic-foot increments, as proposed in the 1993 NPR. 
However, CEC's proposal still differs from the current requirements in 
its breakout of Freezers into Upright and Chest.
---------------------------------------------------------------------------

    \5\9Id. at 12-19.
---------------------------------------------------------------------------

    The Commission is not persuaded by CEC's comments that the NAECA 87 
sub-categories are inappropriate. The NAECA 87 sub-categories are based 
on features and door configurations; they will benefit consumers 
because these features are of major significance to them when 
shopping.60 Therefore, the amended Rule adopts the NAECA 87 sub-
categories for refrigerators, refrigerator-freezers and freezers. See 
Appendices A1-A8 and B1-B3 in ``Text of Amendments,'' below.
---------------------------------------------------------------------------

    \6\0See the discussion in the NPR at 58 FR 12825.
---------------------------------------------------------------------------

    After analyzing the distribution of models among the capacity 
groupings, however, the Commission has determined to retain the two-
cubic foot increments currently required in the ranges of comparability 
for these products. There are enough models available in the more 
popular size groupings so that two-cubic-foot increments will provide 
consumers with meaningful selections among these products within the 
new sub-categories. Moreover, the Commission agrees with AHAM that 
consumers could find it more difficult to use the ranges of 
comparability to compare similar models if the capacity groupings were 
broken into four-cubic-foot increments. The number of different models 
in some of the four-foot groupings would be so large as to inhibit the 
consumer selection process. For example, consider a consumer looking 
for a 19-cubic-foot refrigerator-freezer with automatic defrost and 
top-mounted freezer and without through-the-door ice service. If the 
appropriate subcategory were divided into two-cubic-foot increments 
(18.5 cu. ft. to 20.4 cu. ft.), the consumer would be comparing the 
labeled model with 180 other models. The use of four-cubic-foot 
increments would result in the addition of another 215 models, most of 
which would be sufficiently larger than the desired 19-cubic-foot model 
(they would be from 20.5 to 22.4 cu. ft.) that the information would be 
superfluous and likely confusing. Accordingly, the Commission finds 
that two-cubic-foot increments would be more likely to assist consumer 
selection efforts than four-cubic-foot increments.
    In response to CEC's comments on the proposed ``All-Refrigerator 
with Automatic Defrost'' sub-category, the Commission has changed the 
designation of Appendix A1 from the previously proposed ``All-
Refrigerators with Automatic Defrost'' to ``Refrigerators with 
Automatic Defrost,'' and is including a definition of ``all-
refrigerator'' within the definition of ``electric 
refrigerator.''61 See Appendix A1 and section 305.3(a)(1) of the 
amended Rule in ``Text of Amendments,'' below.
---------------------------------------------------------------------------

    \6\1CEC also stated that refrigerator-freezers with internal 
freezers are not mentioned in DOE's or the Commission's regulations 
but should be covered by the Rule. DD-24 at 12. In fact, these 
products are already covered by the definition of refrigerator-
freezer in section 305.3(a)(2) of the Rule. Finally, CEC expressed 
dissatisfaction with the fact that refrigerators combined with other 
appliances (usually stoves) are not covered by the Rule. Such 
coverage is not possible, however, because there is at this time no 
DOE test to measure their energy use.
---------------------------------------------------------------------------

    b. Clothes washers and dishwashers. The 1988 NPR solicited comment 
on whether the Commission should adopt different sub-categories for 
other products. The current Rule prescribes for dishwashers and clothes 
washers two sub-categories each (``Standard'' and ``Compact'').62 
In response to the 1988 NPR, one comment suggested revising the current 
two sub-categories for dishwashers based on the internal water-heating 
feature for some dishwashers and the two sub-categories for clothes 
washers based on tub capacity, door configuration, and other 
features.63 In the 1993 NPR, the Commission proposed to retain the 
existing sub-categories for dishwashers and clothes washers, noting 
that NAECA 87 did not create new sub-categories for these two 
products.64 At that time, the standards for the products in DOE's 
Minimum Efficiency Standards Rule involved only the mandatory inclusion 
of an energy-saving feature consisting of an option to dry without heat 
for dishwashers and an unheated wash option for clothes washers.65 
The Commission noted, however, that if future revisions to the DOE 
standards appeared to warrant a change in the categories for these 
products, the Commission would consider the issue at that time.
---------------------------------------------------------------------------

    \6\2See Appendix C (Dishwashers) and Appendix F (Clothes 
washers).
    \6\3See 58 FR 12825 (March 5, 1993).
    \6\4Id.
    \6\5See 54 FR 6062, 6077 (Feb. 7, 1989). Both standards were 
prescribed earlier in NAECA 87, however, and became effective on 
January 1, 1988.
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    Five comments addressed this issue. All five supported retaining 
the current sub-categories for dishwashers.66 Four comments, 
however, suggested changing the sub-categories for clothes washers by 
adding two further subdivisions--horizontal axis and vertical 
axis.67 In support, AHAM stated that the technologies of the two 
proposed subdivisions are different and that consumers interested in 
the horizontal axis market niche should be able to compare products 
within that subdivision.68
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    \6\6Whirlpool, D-3, 4; AHAM, D-5, 5; New Harmony, D-D-7, 1-3 and 
Attachment; Speed Queen, D-8, 2; CEC, DD-23, 20 (CEC also supported 
the proposal not to change the sub-categories for clothes washers).
    \6\7Whirlpool, D-3, 4; AHAM, D-5, 5; New Harmony, D-D-7, 1-3 and 
Attachment; Speed Queen, D-8, 2. New Harmony suggested modifying the 
definition for ``energy factor'' to include the subdivisions, and 
Speed Queen suggested that front loaders (usually horizontal axis) 
should not be included in the same sub-categories with top loaders 
(usually vertical axis.)
    \6\8AHAM, D-5, 5.
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    Horizontal axis clothes washers (which are generally front-loading) 
are significantly more energy-efficient than vertical axis washers 
(generally top-loading). Because the typical door configurations for 
these products are different, consumers may shop for only one 
configuration, and information respecting the energy usage of products 
having the other configuration may not be useful. For example, 
consumers wanting to stack a clothes dryer on top of their washer to 
conserve space would only be interested in a front loading washer.
    The Commission finds, therefore, that separate ranges of 
comparability for these products would benefit consumers. Accordingly, 
the Commission is retaining the current sub-categories for dishwashers 
but amending the sub-categories for clothes washers to reflect a 
further subdivision into top-loading and front-loading models. See 
Appendix F--Clothes Washers, in ``Text of Amendments,'' below.
6. Energy Cost Descriptor--Proposals to Change From Estimated Annual 
Operating Cost to an Alternative Descriptor for Some Products
    For five appliance categories (refrigerators and refrigerator-
freezers, freezers, dishwashers, clothes washers and water heaters), 
the Rule requires that labels reflect the estimated annual dollar cost 
of operation for the product and the applicable range of comparable 
products. This cost information is calculated by using the National 
Average Representative Unit Costs (``NARUCs'') for energy that DOE 
develops and publishes annually in the Federal Register.\69\ The 
Commission publishes revised ranges of comparability annually in the 
Federal Register if the upper or lower limits change by 15% or more 
from the previously published ranges. If the ranges do not change, the 
Commission publishes a notice that the prior range is still applicable 
for the next year.
---------------------------------------------------------------------------

    \69\See 42 U.S.C. 6293(b)(4). These energy cost figures are 
incorporated into Sec. 305.9 of the Commission's Rule.
---------------------------------------------------------------------------

    The 1988 NPR solicited comment on using alternate energy 
descriptors that would remain constant, rather than dollar descriptors. 
It proposed that the labels disclose energy usage in kilowatt-hours for 
electrically fueled products, therms for natural gas products, and 
gallons for oil-fueled water heaters. In the alternative, the 1988 NPR 
proposed using an energy factor similar to the EER for furnaces, room 
air conditioners, and central air conditioners.\70\ The comments 
submitted in response to the 1988 proposal generally favored the 
elimination of dollar energy usage descriptors in favor of an energy 
consumption descriptor on labels for refrigerators, refrigerator-
freezers and freezers, clothes washers, and dishwashers. In contrast, 
the comments generally favored either retention of dollar cost or use 
of an energy factor on labels for water heaters.\71\
---------------------------------------------------------------------------

    \70\See 53 FR 22109-10.
    \71\See 58 FR 12826-28.
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission noted that most appliance models 
change about every three years, whereas the DOE energy costs change 
annually because of fuel cost changes. If energy cost changes affect 
the upper or lower limits of the ranges of comparability by 15% or 
more, new labels are required. As a result, a floor model on display 
for a lengthy time may show an operating cost that is different from 
the cost shown on an identical, newer unit delivered to a consumer's 
home because the Commission has required new labels, not because of any 
change in the product's efficiency. For the same reason, two identical 
floor models, manufactured in different years, may display different 
operating costs. Also, models with different features can have labels 
based on different DOE cost figures, making it unlikely that average 
consumers can accurately compare their energy usage. As a result, many 
consumers who are familiar with energy cost information may question 
the accuracy of cost information on labels.\72\
---------------------------------------------------------------------------

    \72\See 58 FR 12827 at note 85.
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    Pursuant to EPCA, labels may disclose an alternate energy use 
figure, determined in accordance with DOE tests, if the Commission 
determines that estimated annual operating cost is not likely to assist 
consumers in making purchasing decisions or is not economically 
feasible.\73\ For the reasons set forth in the 1993 NPR, the Commission 
concludes that use of a dollar figure as the primary descriptor of 
energy usage is not likely to assist consumers in making purchasing 
decisions regarding refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, and water heaters. Providing such label 
information may adversely affect the value of the labeling program.\74\ 
Below, the Commission discusses the specific alternative disclosures to 
be made for each product category.
---------------------------------------------------------------------------

    \73\42 U.S.C. 6294(c)(1)(A)(ii).
    \74\See 58 FR 12827.
---------------------------------------------------------------------------

    a. Refrigerators, refrigerator-freezers and freezers. In the 1993 
NPR, the Commission proposed using kilowatt-hours per year (``kWh/
year'') as the primary energy usage descriptor instead of a dollar cost 
on labels for refrigerators, refrigerator-freezers and freezers.\75\ 
The Commission stated that, although a kWh/year energy usage descriptor 
is more technical, its use would minimize label changes. The Commission 
said that those consumers who want to use a dollar cost figure can use 
the cost grid on the label that was proposed to supplement the kWh/year 
energy usage descriptor.
---------------------------------------------------------------------------

    \75\Id.
---------------------------------------------------------------------------

    The eight comments that addressed the proposal strongly supported 
it.\76\ Several noted that this type of disclosure is advantageous 
because it is the same disclosure that Canada requires on its EnerGuide 
labels for appliances.\77\ Two suggested that labels include 
definitions of kWh/year.\78\ Therefore, the Commission has determined 
to require the disclosure of kWh/year as the energy usage descriptor 
for refrigerators, refrigerator-freezers and freezers. The Commission 
also is requiring that a definition for kWh/year be used on the labels.
---------------------------------------------------------------------------

    \76\Amana, D-1, 2-3; Whirlpool, D-3, 2; Maytag, D-4, 1-2; AHAM, 
D-5, 6-10; ACEEE, DD-8, 1; WSEO, DD-9, 2; EGIA, DD-21, 1-2; CEC, DD-
23, 20.
    \77\Amana, D-1, 3; Maytag, D-4, 3-4; AHAM, D-5, 8-9.
    \78\ACEEE, DD-8, 1: ``A kilowatt-hour is a measure of 
electricity use;'' ACEEE also suggested making clear that the lower 
the kWh/year, the better the efficiency of the product; WSEO, DD-9, 
2: ``Energy efficient freezers use fewer Kilowatt-hours per year and 
cost less to run. A Kilowatt-hour is a measure of electricity.''
---------------------------------------------------------------------------

    Because the kWh/year figures can easily be multiplied by an 
appropriate cost per year for electricity to provide an estimated 
annual operating cost for the labeled product and the ranges of 
comparability, the Commission has determined to no longer require that 
the labels for refrigerators, refrigerator-freezers and freezers 
contain a cost grid. However, the primary kWh/year disclosure will be 
supplemented by a single disclosure of estimated annual operating cost 
in the form of a statement at the bottom of the label. This statement 
will show the operating cost for the labeled product derived using the 
DOE annual average cost for electricity. The statement will identify 
the specific costs per unit for electricity and the year DOE published 
it.\79\ Because the cost figure in the statement will be supplemental 
information, rather than the primary basis for product comparisons, the 
cost figure only need be revised whenever a general revision of labels 
is occasioned by a change of more than 15% in the kWh/year ranges of 
comparability.\80\ This approach will enable consumers to compare 
generally the energy usage of products expressed as an operating cost. 
This figure supplements the main energy usage descriptor by giving 
consumers some sense at a glance of how energy usage differences are 
translated into dollars and cents. This should be helpful for those 
consumers who do not know their local utility rates. See 
Sec. 305.11(a)(5)(i)(E) and the Sample Label for refrigerator-freezers 
in the Amended Rule in ``Text of Amendments,'' below.
---------------------------------------------------------------------------

    \79\See discussion of the operating cost statement in connection 
with the elimination of cost grids in Part IV.B.4.b., below.
    \80\The operating cost statement will not include a range of 
operating costs.
---------------------------------------------------------------------------

    b. Clothes washers and dishwashers. The Rule currently requires 
labels for clothes washers and dishwashers to contain two energy 
descriptors--one to show the cost of operation for each water-heating 
method (electricity or gas).\81\ The 1988 NPR proposed replacing the 
two dollar operating cost disclosures with disclosures of kWh/year and 
therms per year.\82\ Specifically, the Commission proposed that one 
disclosure would show kWh per cycle (to run the machine and heat the 
water) when an electric water heater is used. The other would show kWh 
per cycle (to run the machine) and therms of gas per cycle (to heat the 
water) when the product is used with a gas water heater. This approach 
would require two sets of ranges, as well--one under each disclosure.
---------------------------------------------------------------------------

    \81\See Sample Labels for clothes washers and dishwashers in 
Appendix K of the Rule. Although the motors that power clothes 
washers and dishwashers run on electricity, the source of the energy 
used to heat the water they use could be either natural gas or 
electricity. When these products use water heated with natural gas, 
heating the water accounts for fifty percent of the energy consumed 
during testing. When they use electrically heated water, eighty 
percent of the energy used by the product is consumed in heating the 
water.
    \82\See 53 FR 22110 at note 22.
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission reiterated that use of a dollar 
cost disclosure for these products is unlikely to assist consumers in 
making purchase decisions, and that simplified labels that used 
alternative energy usage descriptors would be better. The Commission 
further stated that disclosing the energy used per cycle, as proposed 
in the 1988 NPR, would require two disclosures that would clutter the 
label and possibly confuse consumers.\83\
---------------------------------------------------------------------------

    \83\See 58 FR 12827.
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission therefore proposed using an energy 
factor as the alternative descriptor because it would result in a label 
with only one energy usage descriptor and range disclosure, as on 
labels for all other products. As discussed in note nine, above, an 
energy factor is a numerical measure of the useful output of an 
appliance's services divided by the energy input. The DOE test 
procedures assume, for purposes of calculating the energy factor, that 
the water used by the appliances is electrically heated. Accordingly, 
the procedures yield a single energy factor for a dishwasher or clothes 
washer disclosure, instead of two. The Commission also proposed 
retaining the two cost grids that are on the labels: one showing 
various annual costs of operation with electrically heated water 
(calculated using various costs for electricity), and one for gas-
heated water (using various costs for gas). The Commission suggested 
that this labeling approach would permit easier comparisons among 
similar models and that the two cost grids would enable consumers to 
calculate annual operating costs and compare models on the basis of how 
their water is heated.
    Eighteen comments addressed this proposal.\84\ Four supported the 
proposal.\85\ ACEEE preferred energy factor to EER,\86\ and WSEO 
supported use of an energy factor because ``it is consistent with past 
practice, industry terminology and the DOE test procedures.''\87\ CEC 
noted that ``there is no easily understood way of describing the 
efficiency of a dishwasher, clothes washer, or water heater. Thus, the 
best we can hope for is to have an energy factor which the consumer 
recognizes as a measure of efficiency and that the consumer recognizes 
that a high [energy] factor means high efficiency.''\88\
---------------------------------------------------------------------------

    \84\Comments from the appliance industry, the state agencies, 
and the consumer group were specifically related either to both 
dishwashers and clothes washers, or clothes washers only (New 
Harmony, D-7, 1-3, and Speed Queen, D-8, 1). Comments from gas 
utilities generally encompassed dishwashers, clothes washers, and 
water heaters, with a clear emphasis on water heaters. Some 
utilities rejected use of an energy factor without mentioning any 
specific product category (see, Brooklyn Gas, DD-2, 1; Mississippi 
Gas, DD-4, 1-2, 4; PG&W, DD-5, 1; Memphis Electric and Gas, DD-18, 
1-2).
    \85\ACEEE, DD-8, 1; WSEO, DD-9, 1-2; CEC, DD-23, 20; New Harmony 
did not specifically endorse the use of an energy factor, but did 
suggest a specific definition for the term, thus implying acceptance 
of it. D-7, 1-3.
    \86\ACEEE, DD-8, 1. The comment was in response to a question in 
the 1993 NPR (see Question 1. a., at 58 FR 12830).
    \87\WSEO, DD-9, 2.
    \88\CEC, DD-23, 23.
---------------------------------------------------------------------------

    Fourteen comments opposed the proposal.\89\ These comments 
contended that an energy factor is too complicated and confusing and 
will mean nothing to consumers.\90\ Five suggested changing to an 
energy consumption disclosure, such as kilowatts per cycle or per 
year.\91\ Nine recommended retaining the estimated annual operating 
cost.\92\
---------------------------------------------------------------------------

    \89\Whirlpool, D-3, 2; Maytag, D-4, 1-2; AHAM, D-5, 6-7, 9-10; 
Speed Queen, D-8, 1; PSCNC, DD-1, 2; Brooklyn Gas, DD-2, 1; Peoples 
Gas, DD-3, 1; Mississippi Gas, DD-4, 1-2, 4; PG&W, DD-5, 1; Memphis 
Electric and Gas, DD-18, 1-2; LG&E, DD-19, 3-4; EGIA, DD-21, 2; AGA, 
DD-22, 2-4; ENTEX, DD-24, 2-3.
    \90\See, for example, Whirlpool, D-3, 3 (energy factors have 
meaning to engineers, but not to consumers); Maytag, D-4, 1-2 
(energy factors would be very difficult and even overwhelming to 
consumers and retail salespeople). Mississippi Gas suggested that 
the use of an energy factor could discriminate against minority and 
low income households and attached the results of a consumer survey 
in support of its contention. DD-4, 1-2.
    \91\Whirlpool, D-3, 2; Maytag, D-4, 1-2; AHAM, D-5, 6-7, 9-10; 
Speed Queen, D-8, 1; EGIA, DD-21, 2.
    \92\PSCNC, DD-1, 2; Brooklyn Gas, DD-2, 1; Peoples Gas, DD-3, 1; 
Mississippi Gas, DD-4, 1-2, 4; PG&W, DD-5, 1; Memphis Electric and 
Gas, DD-18, 1-2; LG&E, DD-19, 3-4; AGA, DD-22, 2-4; ENTEX, DD-24, 2-
3.
---------------------------------------------------------------------------

    Two of the comments favoring estimated annual operating cost 
included consumer survey results in support of their position. ENTEX 
attached consumer survey results indicating that 80% of 200 consumers 
surveyed preferred the current label when asked to compare the 1993 NPR 
Sample 4 dishwasher label with the current (estimated annual operating 
cost) dishwasher label.\93\ Mississippi Gas's results of a similar 
consumer survey indicated that 48.5% of 200 mall intercept 
consumers\94\ preferred an estimated annual operating cost disclosure, 
as did nine out of ten consumers interviewed on videotape.\95\
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    \93\DD-24, 4, Attachment, 16.
    \94\DD-4, 3, Attachment, 17-18.
    \95\DD-4, Attachment, 30.
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    Some of the comments supporting a cost disclosure contended that an 
energy factor disclosure actually would mislead consumers.\96\ Several 
referred to the 1979 Statement of Basis and Purpose, in which the 
Commission concluded that, for appliances other than climate control 
equipment, any alternative to the estimated annual operating cost 
disclosure predicated on the DOE tests (including the most often cited 
alternative--the energy factor) would not be likely to assist consumers 
in making purchasing decisions.\97\
---------------------------------------------------------------------------

    \96\This argument pertains only to water heaters, however, as 
discussed in Part IV. A. 6. c., below.
    \97\The reference is to 44 FR 66478 (Nov. 19, 1979). See 
Brooklyn Gas, DD-2, 1; LG&E, DD-19, 2; AGA, DD-22, 2-3.
---------------------------------------------------------------------------

    The five comments favoring an energy consumption disclosure 
recommended the use of kilowatt-hours--four suggesting kilowatt-hour 
use per cycle (kWh/cycle)\98\ and one suggesting kWh/cycle or kilowatt-
hour use per year (kWh/year).\99\ Whirlpool, Maytag, and AHAM commented 
that consumers are familiar with kilowatt-hours because they see them 
every month on their electric bills.\100\ Whirlpool contended that, 
with a disclosure of kWh/cycle, dual disclosures and cost grids would 
not be necessary, since consumers would have all they need to make a 
comparative purchasing decision. Whirlpool suggested that those few 
consumers who would want to know the estimated annual operating cost of 
their appliance with a gas water heater could probably obtain the 
information from the manufacturer.\101\ AHAM recommended disclosing 
kWh/cycle as the main disclosure and disclosing additionally the 
percentage reduction in operating cost if a gas water heater is 
used.\102\ AHAM and Speed Queen pointed out that a kilowatt-hour 
disclosure would be consistent with the requirements of the Canadian 
Energuide labels for these products, with Speed Queen specifically 
mentioning kWh/year, rather than kWh/cycle.\103\
---------------------------------------------------------------------------

    \98\Whirlpool, D-3, 2; Maytag, D-4, 1-2; AHAM, D-5, 6-7, 9-10; 
EGIA, DD-21, 2.
    \99\Speed Queen, D-8, 1.
    \100\Whirlpool, D-3, 3; Maytag, D-4, 2; AHAM, 10.
    \101\Whirlpool, D-3, 3.
    \102\AHAM, D-5, 6-7, 9-10.
    \103\AHAM, D-5, 8-9; Speed Queen, D-8, 1.
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    In the 1993 NPR, the Commission explained its reasons for proposing 
not to require the disclosure of estimated annual operating cost as the 
primary energy usage disclosure on labels. Those reasons are summarized 
in Part IV.A.6., immediately above.\104\ The comments favoring the 
continued use of estimated annual operating cost on labels for these 
products have not provided any new information that would support a 
change in the Commission's tentative conclusion about this issue. The 
Commission rejects, therefore, the suggestions that operating cost be 
retained as the primary descriptor on dishwasher and clothes washer 
labels, and reiterates its conclusion that estimated annual operating 
cost as the primary energy usage disclosure is not likely to assist 
consumers in making purchasing decisions with respect to these 
products.
---------------------------------------------------------------------------

    \104\See 58 FR 12826-27.
---------------------------------------------------------------------------

    The comments supporting the Commission's proposed use of energy 
factor did not elaborate on why they believed this descriptor would be 
appropriate.105 In contrast, the comments opposing the use of 
energy factor were unanimous in the specific criticism that the term 
would mean nothing to consumers and would confuse them.106 For 
example, Maytag stated that it was difficult to explain energy factor 
sufficiently to Maytag employees, even when the person explaining the 
term thoroughly understood the concept. Maytag also contended that 
consumers seeing energy factors would be confused by the association of 
higher numbers with higher efficiency. For operating cost descriptors 
for clothes washers and dishwashers, ``smaller is better.''107 The 
Commission is therefore persuaded by the comments that the energy 
factor proposed in the 1993 NPR is not the most appropriate alternative 
to operating cost as an energy usage descriptor for these two product 
categories.
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    \1\05ACEEE supported its use without elaboration. ACEEE,DD-8, 1. 
WSEO favored energy factor because its use would be consistent with 
the DOE test and with ``industry terminology and past practice,'' 
(presumably a reference to its use in the GAMA Directory for water 
heaters, because the current labels for clothes washers and 
dishwashers require the disclosure of estimated annual operating 
cost, not an energy factor.) WSEO, DD-9, 2. CEC acknowledged that 
communication of energy usage for these two product categories is 
difficult to accomplish, and that an energy factor is the best one 
could hope for. CEC, DD-23, 23.
    \1\06See note 89, above.
    \1\07Maytag, D-4, 1.
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    The Commission concludes that an energy consumption descriptor in 
terms of kilowatt-hours of electricity consumed per year (kWh/year) 
would be the best alternative disclosure of energy usage for clothes 
washers and dishwashers. As several comments pointed out, consumers are 
familiar with kilowatt-hours from their utility bills, so kilowatt-hour 
use will be more familiar than an energy factor.108 The required 
disclosure will be in terms of electricity consumed using an electric 
water heater alone, without showing energy consumption for use of the 
product with both an electric and gas water heater. By comparing the 
kWh/year of one product to another, consumers will be able to see how 
the products use energy relative to one another.109 This fulfills 
the EnergyGuide program's purpose of providing consumers with 
comparative energy usage information for making purchasing decisions.
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    \1\08Whirlpool, D-3, 3; Maytag, D-4, 2; AHAM, 10.
    \1\09The range of comparability scale will, as before, provide 
information as to how the labeled product compares in energy usage 
to all other similarly sized products.
---------------------------------------------------------------------------

    The Commission agrees with Whirlpool that use of a kilowatt-hour 
usage descriptor eliminates the need for a cost grid because those 
consumers who so wish may multiply the kWh figure by a cost per kWh for 
electricity and convert the descriptor into a cost-per-year 
figure.110 However, as with labels for refrigerators, 
refrigerator-freezers and freezers, water heaters, and room air 
conditioners, the primary kWh/year disclosure will be supplemented by 
an estimated annual operating cost disclosure in the form of a 
statement at the bottom of the label. For clothes washers and 
dishwashers, this statement will show two operating costs for the 
labeled product--one calculated on the basis of its use with an 
electric water heater, and one with a gas water heater--both derived 
using the DOE annual average cost for electricity and gas. (As in the 
case of the current labels, the cost for operation with an oil-fired 
water heater is not included because these products account for less 
than one percent of all residential water heater sales.) The statement 
will identify the specific costs per unit for the two fuels and the 
year DOE published them.111 This supplemental disclosure will 
enable consumers to obtain a sense of the magnitude of the monetary 
difference in operating costs between different models, without 
requiring that they make their own mathematical calculation.
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    \1\10Whirlpool, D-3, 3. See the discussion of elimination of 
cost grids on all labels in Part IV.B.4.b., below.
    \1\11See discussion of the operating cost statement in 
connection with the elimination of cost grids in Part IV.B.4.b., 
below.
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    The Commission is amending the Rule to require a disclosure of kWh/
year on labels for these products, rather than adopting a kWh/cycle 
descriptor, as several comments suggested.112 A kWh/year 
disclosure, because it provides a larger spread of figures than would a 
kWh/cycle, discloses differences in energy usage that will be easier 
for consumers to perceive. Obviously, much more electricity is consumed 
during a year than during one cycle of operation. Thus, kWh/year will 
show larger figures and greater intervals between the figures for 
different models and, therefore, will illustrate more clearly the 
magnitude of the efficiency difference. Moreover, a kWh/year disclosure 
will be consistent with the amended disclosure requirements for the 
other non-climate-control products and with the Canadian EnerGuide 
program's required disclosures for these two products (as well as the 
other products covered by the Canadian program.) Accordingly, the final 
amended Rule requires that labels for dishwashers and clothes washers 
disclose the products' energy usage in terms of kilowatt-hours used per 
year. See section 305.11(a)(5)(i)(E) through (J), Appendices C and F, 
and Sample Labels for dishwashers and clothes washers in ``Text of 
Amendments,'' below.
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    \1\12See Whirlpool, D-3, 2; Maytag, D-4, 1-2; AHAM, D-5, 6-7, 9-
10; EGIA, DD-21, 2.
---------------------------------------------------------------------------

    c. Water heaters. As discussed in the 1993 NPR, the comments 
responding to the proposal to change from a cost disclosure to energy 
factor or kWh, therms (of gas), or gallons (of oil) per year for water 
heaters were divided between keeping the estimated annual operating 
cost and switching to the energy factor.113 Citing its reasoning 
in the 1988 NPR, the Commission tentatively concluded in the 1993 NPR 
that, as a primary disclosure of energy cost, a dollar disclosure is 
not likely to assist consumers in making purchasing decisions.114
Because the energy factor is already in use within the industry and is 
easily converted to estimated annual operating cost, the Commission 
proposed to require it for water heaters, even though it could make 
accurate cross-fuel comparisons difficult.115
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    \1\13See discussion at 58 FR 12827-28.
    \1\14See 53 FR 22109-10. See also 42 U.S.C. 6294(c)(1)(A)(ii).
    \1\15The Commission noted that consumers who wished to, could 
use the cost grids at the bottom of the labels to make cross-fuel 
comparisons.
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    Of the 23 comments on this proposal,116 only three favored 
replacing estimated annual operating cost with an energy factor for 
water heaters.117 ACEEE and WSEO favored the use of energy factor 
with little elaboration.118 As with dishwashers and clothes 
washers, CEC supported the energy factor as the best way to communicate 
the efficiency of water heaters.119 CEC noted that federal 
standards and enforcement actions and incentive payments from utilities 
are all based on efficiency values, rather than dollar values, which 
can cause confusion by changing annually for the same basic 
design.120
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    \1\16PSCNC, DD-1, 2; Brooklyn Gas, DD-2, 1; Peoples Gas, DD-3, 
1; Mississippi Gas, DD-4, 1-2, 4; PG&W, DD-5, 1; Atlanta Gas, DD-6, 
1; Piedmont Gas, DD-7, 1-2; ACEEE, DD-8, 1; WSEO, DD-9, 1-2; 
Elizabethtown Gas, DD-10, 1-2; Covington Gas, DD-11, 1; Gibson 
County Utility, D-13, 1; Mountain Fuel, DD-14, 1-2; Texas Gas, DD-
15, 3-4; Oklahoma Gas, DD-17, 1-2; Memphis Electric and Gas, DD-18, 
1-2; LG&E, DD-19, 3-4; Laclede Gas, DD-20, 1-5; AGA, DD-22, 2-4; 
CEC, DD-23, 20, 23; ENTEX, DD-24, 2-3; Consolidated Natural Gas, DD-
25, 1-4; UGI, DD-26, 1-2.
    \1\17ACEEE, DD-8, 1, WSEO, DD-9, 1-2, and CEC, DD-23, 20.
    \1\18ACEEE, DD-8, 1, WSEO, DD-9, 2.
    \1\19CEC, DD-23, 23.
    \1\20Id. at 20.
---------------------------------------------------------------------------

    Almost all 20 comments opposing the replacement of estimated annual 
operating cost with the energy factor disclosure stated that energy 
factors would be much more confusing to consumers, who understand and 
are used to dollar cost disclosures. Many argued that an energy factor 
disclosure could mislead consumers because the range of energy factors 
is from approximately .55 to .65 for gas water heaters and from .86 to 
.95 for electric water heaters. They suggested that this could lead 
consumers to conclude erroneously that electric water heaters would be 
less costly to run.121 Some stated that requiring energy factors 
would make it difficult for consumers to compare water heaters using 
different fuels.122
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    \1\21See, e.g., Peoples Gas, DD-3, 1; Piedmont Gas, DD-7. 1-2; 
Elizabethtown Gas, DD-10, 1-2; Mountain Fuel, DD-14, 1-2; Texas Gas, 
DD-15, 3-4; Oklahoma Gas, DD-17, 1-2; LG&E, DD-19, 3-4; Laclede Gas, 
DD-20, 1-5; ENTEX, DD-24, 2-3. The current ranges of estimated 
annual operating costs for all sizes of water heaters are from $122 
to $216 for gas water heaters and from $377 to $464 for electric 
water heaters. 56 FR 46534 (Sept. 13, 1991).
    \1\22See, e.g., Brooklyn Gas, DD-2, 1; PG&W, DD-5, 1; 
Consolidated Gas, DD-25, 3.
---------------------------------------------------------------------------

    Several comments also stated that energy factors do not take into 
consideration the total system efficiency of the energy source fueling 
the water heater.123 The implication is that electricity is 
considerably more expensive and energy-intensive to produce than 
natural gas. For example, Laclede Gas contended that from extraction to 
point of end use, 91% of the energy content of natural gas is delivered 
to customers, whereas for electricity, 27% of the energy content is 
delivered.124
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    \1\23See, e.g., Peoples Gas, DD-3; Mississippi Gas, DD-4, 4; 
Laclede Gas, DD-20, 3.
    \1\24Laclede Gas, DD-20, 3.
---------------------------------------------------------------------------

    Eight comments contended that consumers are frequently in a 
position to judge energy cost before making their selection because 
they have increasing opportunities to see water heaters before purchase 
in building supply stores, retail outlets and in new homes.125
They concluded that such consumers, therefore, should be provided with 
estimated annual operating cost on labels. Several comments quoted with 
approval the Commission's conclusion in the 1979 Statement of Basis and 
Purpose that any alternative to the estimated annual operating cost 
disclosure predicated on the DOE tests (including the most often cited 
alternative--the energy factor) would not be likely to assist consumers 
in making purchasing decisions.126
---------------------------------------------------------------------------

    \1\25Peoples Gas, DD-3, 1; Elizabethtown Gas, DD-10, 1-2; 
Covington Gas, DD-11, 1; Gibson County Utility, D-13, 1; Texas Gas, 
DD-15, 4; AGA, DD-22, 3; Consolidated Gas, DD-25, 1-2; UGI, DD-26, 
2.
    \1\26See note 97, above.
---------------------------------------------------------------------------

    As with dishwashers and clothes washers, the Commission explained 
in the 1993 NPR why it proposed changing from requiring an estimated 
annual operating cost disclosure as the primary energy usage descriptor 
on labels for water heaters.127 Those reasons are summarized in 
Part IV.A.6., above.128 As with clothes washers and dishwashers, 
the comments favoring the continued use of estimated annual operating 
cost on labels for water heaters have not provided any new information 
that would support a change in the Commission's tentative decision on 
this issue. The Commission rejects, therefore, the suggestions that 
operating cost be retained as the primary disclosure of energy usage on 
water heater labels, and reiterates its conclusion that estimated 
annual operating cost as a primary energy usage descriptor is not 
likely to assist consumers in making purchasing decisions with respect 
to these products.
---------------------------------------------------------------------------

    \1\27See 58 FR 12828.
    \1\28See 58 FR 12826-27.
---------------------------------------------------------------------------

    As in the case of clothes washers and dishwashers, the comments 
supporting the Commission's proposed use of energy factor for water 
heaters did not elaborate on why they believed this descriptor would be 
appropriate. ACEEE supported its use without further comment.129 
WSEO favored energy factor because its use would be consistent with the 
DOE test and with ``industry terminology and past practice,'' which is 
presumably a reference to its use in the GAMA Directory for water 
heaters.130 CEC acknowledged that communication of energy usage 
for water heaters is difficult to accomplish, and that an energy factor 
is the best that could be hoped for.131 The Commission is 
persuaded by the comments that the energy factor is not the best energy 
usage descriptor for water heaters.
---------------------------------------------------------------------------

    \1\29ACEEE, DD-8, 1.
    \1\30WSEO, DD-9, 2.
    \1\31CEC, DD-23, 23.
---------------------------------------------------------------------------

    The Commission has determined to amend the Rule instead to require 
that labels for water heaters disclose the products' energy usage in 
terms of kilowatt-hours used per year (for electric water heaters), 
therms of natural gas used per year (for natural gas-fueled water 
heaters), and gallons used per year (for propane-gas-fueled and oil-
fueled water heaters), as proposed in the 1988 NPR.132 As in the 
case of dishwashers and clothes washers, this disclosure has the 
advantage of obviating the need for cost grids on the labels by 
providing consumers with the option of determining cost by multiplying 
the labeled value by the appropriate cost per unit of the applicable 
fuel, which will also be disclosed (see below). This calculation will 
facilitate consumers' ability to make cross-fuel comparisons, if they 
wish to do so. Moreover, it provides a disclosure in terms that will be 
familiar to consumers because they see kWh, therms or gallons on their 
fuel bills. Finally, it maintains consistency among all the labels for 
non-climate-control products covered by the Rule.
---------------------------------------------------------------------------

    \1\32See 53 FR 22110, note 22.
---------------------------------------------------------------------------

    This primary disclosure will be supplemented by an estimated annual 
operating cost disclosure in the form of a statement at the bottom of 
the label. This statement will show the operating cost for the labeled 
product derived using the DOE annual average cost for electricity, gas, 
or oil, as appropriate. The statement will identify the specific cost 
per unit for the applicable fuel and the year DOE published it.\133\ 
This statement will provide a basis for making cross-fuel comparisons. 
The additional advantages of retaining operating cost as supplemental 
information have been discussed in Part IV.A.6.a. and b., above.\134\ 
See Amended Rule sections 305.11(a)(5)(i)(E) through (J), Appendices D1 
through D3, and the Sample Labels for water heaters in ``Text of 
Amendments,'' below.
---------------------------------------------------------------------------

    \133\See discussion of the operating cost statement in 
connection with the elimination of cost grids in Part IV.B.4.b., 
below.
    \134\See also the discussion of the elimination of cost grids in 
Part IV.B.4.b., below.
---------------------------------------------------------------------------

7. Proposed Changes In Label Adhesion Strength Requirement
    Section 305.11(a)(4)(i) of the Rule specifies the paper stock and 
minimum peel adhesion capacity of labels for covered products. In 
addition to requiring that adhesive labels be applied ``so they can be 
easily removed without use of tools or liquids, other than water,'' 
this section requires that the label adhesive must have ``a minimum 
peel adhesion capacity of 24 ounces per inch width.'' Prior to the 1988 
NPR, the Commission received requests to amend this provision to make 
the labels easier for consumers to remove. The 1988 NPR sought comment 
on whether to lower the minimum peel adhesion capacity and on whether a 
performance standard should be adopted instead.\135\
---------------------------------------------------------------------------

    \135\See 53 FR 22111.
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission discussed the comments responding 
to the 1988 NPR, which favored an amendment that would make it easier 
to remove labels. The Commission concluded that the current standard 
can result in labels sticking to products with excessive tenacity and 
proposed a specific performance standard. To provide the industry with 
guidance as to an acceptable minimum adhesion capacity sufficient to 
meet the performance standard, the Commission also proposed changing 
the minimum peel adhesion capacity in the Rule from 24 to 12 ounces and 
changing it from a requirement to a suggestion.\136\
---------------------------------------------------------------------------

    \136\See 58 FR 12825-26 and 12835 (proposed section 
305.11(a)((4)(i)).
---------------------------------------------------------------------------

    Four comments addressed this issue. One supported the proposal, 
saying that excessive label tenacity has been an annoying problem.\137\ 
Three others supported the proposal, but emphasized that the Rule 
should not require any specific adhesion capacity.\138\
---------------------------------------------------------------------------

    \137\Amana, D-1, 2.
    \138\Whirlpool, D-3, 5; AHAM, D-5, 6; ARI, D-6, 2.
---------------------------------------------------------------------------

    The Commission concludes that the record supports revising the Rule 
to state a performance standard for label adhesion capacity without 
requiring any specific adhesion capacity number. The Rule will state, 
for guidance only, an adhesion capacity number (12 ounces) that the 
Commission deems adequate to comply with the performance standard. See 
section 305.11(a)(4)(i) of the Amended Rule in ``Text of Amendments,'' 
below.
8. Suggestion To Label Only Display Models In Retail Outlets
    The 1988 NPR also requested comment on a manufacturer's suggestion 
that the Rule permit manufacturers to label only display models in 
retail outlets to reduce labeling cost while still providing 
information to the public. Because the Commission interprets EPCA as 
requiring a label on all models of covered products,\139\ the 1988 NPR 
sought comment on whether the Commission should submit a special report 
to Congress recommending a change in EPCA to allow the Commission to 
amend the Rule in this regard.\140\
---------------------------------------------------------------------------

    \139\Section 324(c)(1) (42 U.S.C. 6294(c)(1)) states that ``* * 
* a rule prescribed under this section shall require that each 
covered product in the type or class of covered products to which 
the rule applies bear a label which discloses * * *.'' (emphasis 
added).
    \140\This procedure is permitted under Section 6(f) of the FTC 
Act (15 U.S.C. 46(f)).
---------------------------------------------------------------------------

    The six comments responding to the discussion of this issue in the 
1988 NPR opposed the proposal to label only display models. In the 1993 
NPR, therefore, the Commission stated that it intended to take no 
action on it.\141\ The one comment on the proposal to label only 
display models supported the Commission's 1993 NPR tentative decision 
to take no action on the proposal.\142\ The Commission, therefore, will 
not submit a special report to Congress recommending such a change.
---------------------------------------------------------------------------

    \141\See 58 FR 12826.
    \142\CEC, DD-23, 20.
---------------------------------------------------------------------------

9. Directory Option for Water Heaters
    The 1988 NPR solicited comment on a proposal from GAMA to repeal 
the current product-specific labeling requirements for water heaters 
and, instead, to allow manufacturers to provide required energy usage 
information in an industry directory and to label their products with 
labels that provide no energy usage information or limited information. 
Of the six comments addressing this proposal, only one favored it and 
the Commission decided to leave the current water heater labeling 
requirements unchanged. The Commission noted that GAMA's Directory can 
be a useful voluntary supplement to the labels for those consumers and 
industry members who choose to use it.\143\
---------------------------------------------------------------------------

    \143\See 58 FR 12826.
---------------------------------------------------------------------------

    Four comments addressed this issue.\144\ No new evidence or 
arguments were raised. GAMA reiterated its previous position that 
furnaces and water heaters typically are purchased from contractor-
installers and are not seen on display by consumers before their 
purchase and installation and, therefore, should not be subject to 
mandatory labeling requirements.\145\ Atlanta Gas supported, without 
specific reasons, the Commission's position to continue requiring 
product-specific labels for water heaters instead of requiring only 
that they be listed in a directory.\146\ A comment from a building code 
inspector stated that labels on products reduce building code 
inspection delays and make inspections easier.\147\ CEC reported that 
the major manufacturers use so many manufacturers' names, trade names, 
and model numbers that it is often very difficult to determine with any 
degree of certainty what data in a directory, either GAMA's or CEC's, 
pertain to any specific unit.\148\
---------------------------------------------------------------------------

    \144\GAMA, D-9, 1; Atlanta Gas, DD-6, 2; Palmdale, DD-16, 1; 
CEC, DD-23, 20.
    \145\GAMA, D-9, 1.
    \146\Atlanta Gas, DD-6, 2.
    \147\Palmdale, DD-16, 1.
    \148\CEC, DD-23, 20.
---------------------------------------------------------------------------

    Eight other comments bear on this issue; all of these were received 
from members of the natural gas industry who opposed requiring energy 
factors on labels for water heaters, clothes washers, and dishwashers. 
They commented that appliances, including water heaters, increasingly 
are on display in stores, building supply outlets, and new homes. They 
concluded that consumers can therefore make purchasing decisions that 
consider the information on labels attached to the products.\149\
---------------------------------------------------------------------------

    \149\Peoples Gas, DD-3, 1; Elizabethtown Gas, DD-10, 1-2; 
Covington Gas, DD-11, 1; Gibson County Utility, D-13, 1; Texas Gas, 
DD-15, 4; AGA, DD-22, 3; Consolidated Gas, DD-25, 1-2: ``Market 
trends suggest that labels do indeed assist a large number of 
consumers in purchases of appliances such as water heaters. The fact 
that most water heaters are purchased either as emergency 
replacement of leaking water heaters or in connection with the 
purchase of a new home does not necessarily lead one to conclude 
that consumers do not take the time to look at the labels on 
appliances that they are planning to purchase. In the case of new 
homes, it is similarly difficult to conclude that the consumer/
homebuyer never actually takes the time to at least casually inspect 
the water heater and thus see the water heater label.''; UGI, DD-26, 
2.
---------------------------------------------------------------------------

    Accordingly, the Commission is retaining the product-specific 
labeling requirements for water heaters.
10. Proposal to Label Certain Unvented Heaters
    The Commission in 1979 exempted electric unvented heaters, or 
``space heaters,'' from the Rule.\150\ In 1984, DOE published a final 
test procedure for ``unvented heaters'' that use natural gas, propane 
and kerosene.\151\ Consequently, in the 1988 NPR, the Commission sought 
comment on whether to label these other unvented heaters.\152\
---------------------------------------------------------------------------

    \150\The Commission found that, because all these products 
operate with virtually the same efficiency, the cost that would be 
incurred by industry in implementing label disclosures could not be 
economically justified. The Commission determined that the cost of 
testing and labeling would be substantial and would increase the 
products' cost by about 3%. The evidence also did not indicate that 
labeling would enable consumers to make more informed purchasing 
decisions because these products are all essentially 100% efficient 
in producing heat and operate with little variation in energy costs. 
44 FR 66466, at 66468 (Nov. 19, 1979).
    \151\49 FR 12148 (March 28, 1984).
    \152\See 53 FR 22111.
---------------------------------------------------------------------------

    In the 1993 NPR, after analyzing the comments on the issue, the 
Commission tentatively concluded that unvented heaters fueled by 
natural gas, propane and kerosene should be exempted from the Rule 
because all models are 100% efficient. They are not vented to the 
outside and, therefore, all the heat produced remains in the area being 
heated. In addition, compared to the other products covered by the 
Rule, they consume minor amounts of energy. The Commission found there 
is no significant difference in operating cost among similarly sized 
models and, therefore, that labels disclosing costs would not help 
consumers make purchasing decisions.\153\ The Commission tentatively 
concluded that requiring the labeling of these products would not be 
economically feasible unless the cost of labeling were offset by some 
significant benefit to consumers.
---------------------------------------------------------------------------

    \153\The Commission assumed that consumers understand that 
models that provide more heat cost more to operate. See 58 FR 12828.
---------------------------------------------------------------------------

    Two comments addressed this issue. GAMA favored exempting these 
products.\154\ CEC opposed an exemption, stating that the fact that 
there is no real difference in efficiency among these unvented space 
heaters is in itself an important piece of information that should be 
communicated to consumers.\155\
---------------------------------------------------------------------------

    \154\GAMA, D-9, 2.
    \155\CEC, DD-23, 21.
---------------------------------------------------------------------------

    The Commission has the discretion to exempt unvented heaters from 
labeling if labeling would not be technologically or economically 
feasible.\156\ The Commission finds that the cost of labeling would 
exceed whatever benefit that consumers may obtain from learning that 
all competing models of a product are about equal in efficiency. The 
Commission concludes, therefore, that a labeling requirement is not 
economically feasible, and exempts these products from the Rule.
---------------------------------------------------------------------------

    \156\42 U.S.C. 6294(a)(1) and 6294(b)(5).
---------------------------------------------------------------------------

B. Issues Not Raised in the 1988 NPR

1. Industry Proposal To Exempt Central Air Conditioners From Labeling 
Requirements
    In responding to the 1988 NPR, one manufacturer requested that the 
Commission repeal the recently adopted requirement for product-specific 
labels on central air conditioners. In discussing this comment in the 
1993 NPR, the Commission stated that its reasoning for requiring 
product-specific labels for central air conditioners is described in 
the Statement of Basis and Purpose published with the central air 
conditioner amendments,\157\ and that the comment did not contain any 
new information to justify reconsidering the Rule's requirements in 
this regard.\158\
---------------------------------------------------------------------------

    \157\52 FR 46888, 46891-2 (Dec. 10, 1987).
    \158\See the discussion of Carrier's comment at 58 FR 12828.
---------------------------------------------------------------------------

    Three comments addressed this issue. ARI favored repealing the 
labeling requirement, contending that consumers do not use labels in 
their purchasing decisions and that all that is needed is a directory 
listing and a generic label referring consumers to it.\159\ CEC opposed 
repealing the labeling requirement because the label information is 
useful to consumers, to utilities with incentive rebate programs for 
installation of efficient equipment, and to enforcement officials.\160\ 
Palmdale also described how labels on heating and cooling equipment are 
useful to building code inspectors.\161\
---------------------------------------------------------------------------

    \159\ARI, D-6, 1.
    \160\CEC, DD-23, 21.
    \161\Palmdale, DD-16, 1.
---------------------------------------------------------------------------

    The ARI comment does not provide any new information to justify 
repealing the central air conditioner labeling requirements. In 
contrast, the CEC and Palmdale comments strongly suggest that the 
information on central air conditioner labels is used by the public. 
The Commission therefore concludes that the record supports retaining 
the labeling requirement for central air conditioners.
2. Minor Revisions to the Rule
    a. Descriptions of covered products. In the 1993 NPR, the 
Commission stated that new definitions for certain products appear in 
NAECA 87, and that the DOE test procedure product definitions, from 
which the definitions in the Rule are derived, have been amended over 
the years. As a result, some of the definitions of covered products in 
section 305.3 of the Rule are no longer up-to-date.\162\ In addition, 
DOE has approved test procedures for new product categories and has 
adopted minimum efficiency standards pursuant to NAECA 87.\163\ Because 
the Commission's Rule and DOE's test procedures and standards work in 
tandem to regulate the products enumerated in EPCA, the Commission 
proposed to revise the Rule's definitions to establish as much 
consistency as possible with DOE's test procedures and standards to 
avoid confusion.
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    \162\See 58 FR 12828-29.
    \163\For example, DOE developed a test procedure for a new 
product category added by NAECA 87 (pool heaters) and test 
procedures for two new types of water heaters (instantaneous water 
heaters and heat pump water heaters.) Those products are being 
addressed in a separate proceeding.
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    Two comments generally supported these proposed amendments to the 
Rule.\164\ No comments opposed them. The Commission, therefore, has 
amended the definitions in accordance with the proposals in the 1993 
NPR. The amended sections of the Rule describing covered products are 
contained in ``Text of Amendments,'' below, at sections 305.3 (a), (b), 
and (e) through (i).
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    \164\ARI, D-6, 2; CEC, DD-23, 3, 21.
---------------------------------------------------------------------------

    b. Determinations of energy usage. Section 305.5 of the Rule refers 
to the DOE test procedures that manufacturers must follow in 
determining the energy usage figures to be used in complying with the 
required disclosures. In the 1993 NPR, the Commission proposed amending 
section 305.5 to reflect that the primary disclosure of energy usage on 
labels for products that had disclosed estimated annual operating cost 
would be in terms of either kilowatt-hour use per year or energy 
factor, instead of estimated annual operating cost.\165\ Only CEC 
commented on this, and it supported it.\166\
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    \165\See 58 FR 12829.
    \166\CEC, DD-23, 3, 21.
---------------------------------------------------------------------------

    The Commission is amending section 305.5 of the Rule. The section 
will now refer to kilowatt-hours per year, therms per year, or gallons 
per year because the Commission has decided to require the disclosure 
of energy consumption descriptors rather than energy factors. See 
section 305.5 in ``Text of Amendments,'' below.
    c. Determinations of capacity. Section 305.7 of the Rule 
establishes the methodology for determining the capacity, or size, of 
covered products. This is accomplished by a general definition of 
capacity for each product followed by a reference to the specific 
section of the DOE test that contains the procedure for determining the 
capacity of the product. Because the DOE tests have been modified since 
these references were published in the Rule, many references are now 
incorrect. The Commission proposed, in the 1993 NPR, correcting the 
references in section 305.7.
    Two comments supported these proposed amendments and none opposed 
them.167 Accordingly, the Commission has amended the references as 
proposed in the 1993 NPR. See section 305.7 in ``Text of Amendments,'' 
below.
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    \1\67ARI, D-6, 2; CEC, DD-23, 3, 21.
---------------------------------------------------------------------------

    d. Past effective dates. Since the Rule was first published in 
1979, section 305.18 has itemized the effective dates for the Rule's 
various requirements for all the covered product categories. The 
effective dates for the Rule's particular reporting requirements also 
have appeared separately in Sec. 305.8(a). Because of various 
amendments to the Rule over the years, Sec. 305.18 and, to a lesser 
extent, Sec. 305.8(a) now list many different effective dates.
    In the 1993 NPR, the Commission proposed deleting Sec. 305.18 
entirely and eliminating the effective dates provisions in 
Sec. 305.8(a). The Commission tentatively found that their continued 
inclusion in the codified version of the Rule is of questionable value, 
that inclusion of all these effective dates in the Code of Federal 
Regulations version of the Rule is optional, and that deleting them 
will have no substantive effect on the Rule. The actual effective 
dates, if of historical interest, can be found in the relevant Federal 
Register notices. Finally, deletion of this information will simplify 
the Rule and reduce printing costs. The only comment on this issue 
supported the proposal.168 Accordingly, for the reasons previously 
set forth, the Commission is amending the Rule by deleting Sec. 305.18 
entirely and by eliminating the effective dates in Sec. 305.8(a). See 
Secs. 305.8(a), 305.18 and 305.19 (which will be renumbered 305.18) in 
``Text of Amendments,'' below.
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    \1\68CEC, DD-23, 25.
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3. Energy Efficiency Descriptors
    Currently, the Rule requires the use of the term ``Energy 
Efficiency Rating (EER)'' to describe the energy usage of room air 
conditioners, central air conditioners (including heat pumps), and 
furnaces.169 The Commission adopted this single term so consumers 
could learn to recognize and associate it with energy efficiency 
measurement. The industry, however, describes the same rating with 
several terms based on the product category: e.g., ``Energy Efficiency 
Ratio (EER)'' for room air conditioners, ``Annual Fuel Utilization 
Efficiency (AFUE)'' for furnaces, ``Seasonal Energy Efficiency Ratio 
(SEER)'' for central air conditioners and the cooling side of heat 
pumps, and ``Heating Seasonal Performance Factor (HSPF)'' for the 
heating side of heat pumps. These terms also are found in the DOE test 
procedures.
---------------------------------------------------------------------------

    \1\69Section 305.2(i).
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    During the 1988 NPR comment period, several comments proposed 
changing the Rule's use of the single term, ``EER,'' to the terms the 
industry uses for each product category. The comments noted that, 
although the term ``EER'' is used on labels, fact sheets and in 
catalogs, the industry still uses the other terms extensively and most 
consumers understand them.
    In the 1993 NPR, the Commission proposed amending section 305.2(i) 
of the Rule to permit disclosure of the descriptors that are commonly 
used by the industry and referenced in the DOE tests. Eight comments 
addressed the proposal. Five supported it.170 CEC also urged that 
the Commission not just allow use of the industry terms, but require 
their use.171 Two comments said average consumers would not 
understand the industry terms.172
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    \1\70Amana, D-1, 3; ARI, D-6, 2; WSEO, DD-9, 1; Palmdale, DD-16, 
1. In supporting the proposal, GAMA opined that the industry 
descriptors could always have been used and that the Rule only needs 
to be modified to reflect this fact more clearly. GAMA, D-9, 2.
    \1\71CEC, DD-23, 21-22.
    \1\72PSCNC, DD-1, 2; Mississippi Gas, DD-4, 2.
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    The Commission is not persuaded that average consumers will be 
unable to understand the industry terms. In light of the general 
support for this proposal, the Commission has decided to adopt these 
instead of the term ``EER.'' Further, the Commission has decided to 
follow CEC's suggestion and to mandate the use of these terms in 
required disclosures. This will make the Rule consistent with DOE's 
Minimum Efficiency Standards Rule and industry practice. See section 
305.2(i) in ``Text of Amendments,'' below.
4. New EnergyGuide Label Format
    As discussed in Part IV.A.6., above, the 1993 NPR sought comment on 
possible alternatives to dollar energy usage figures on labels, such as 
energy factor or kilowatt-hour, therm, or gallon usage. In preparing 
proposed sample labels displaying the new descriptors for public 
comment, the Commission's staff determined that additional changes to 
the labels were necessary. Specifically, the Commission needed to add 
explanatory language for such terms as ``energy factor'' and 
``kilowatt-hours per year,'' and needed to adjust the labels' design to 
accommodate the disclosures proposed for clothes washers and 
dishwashers. Finally, consumer research conducted by DOE in 1984 and 
1985 had suggested that the current label format could benefit from 
simplification.173
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    \1\73See DOE materials at B-1 through B-3.
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    The Commission, therefore, prepared simplified labels that were 
intended to be more ``user-friendly.'' In consultation with DOE's 
Office of Codes and Standards, the Commission prepared three different 
prototype dishwasher labels--a vertical graph, a bar graph, and one 
that used the current horizontal graph configuration. The 1993 NPR also 
included a fourth label that showed the bar graph against a grid 
background, with the high end bar occupying the full height of the 
graph and with the low end bar coming up only to the first line in the 
grid.
    The Commission conducted consumer research involving 120 shopping 
mall consumers on the proposed alternative labels. The study showed 
consumers preferred the bar graph format over the other two (as well as 
over the current, dual-disclosure label). The Commission placed the 
results of the study on the rulemaking record to aid the public in 
commenting on the proposed labels.174
---------------------------------------------------------------------------

    \1\74See B-4.
---------------------------------------------------------------------------

    In an effort to understand better how consumers perceive, 
understand and use information on energy efficiency, the 1993 NPR 
asked: how would ``energy factor'' and ``kilowatt-hour use per year'' 
be perceived and understood by consumers; what fuel cost figures and 
what fuel cost figure intervals would be appropriate in the cost grids 
on labels for certain appliances; how easy is it for consumers to use 
the cost grids to compare the relative costs of alternative products; 
and, would the costs to industry of newly designed labels be justified 
by the improvement in communication. The Commission also asked whether 
the Rule's dimension requirements for labels should be changed and for 
other suggestions for improving label design.
    The Commission has divided the discussion of the format of 
EnergyGuide labels into two issues: format of the primary disclosure, 
and cost grids.
    a. Format of the primary disclosure. Eleven comments addressed the 
format change issue. Five comments indicated a preference for one or 
another of the proposed sample formats, thereby implicitly supporting 
change from the current format.175 Six advocated keeping the 
format of required labels the same or essentially the same.176
---------------------------------------------------------------------------

    \1\75Amana, D-1, 3; Speed Queen, D-8, 2; ACEEE, DD-8, 1; WSEO, 
DD-9, 1-2; USEPA, DD-12, 1.
    \1\76Whirlpool, D-3, 5; AHAM, D-5, 10-11; ARI, D-6, 2; GAMA, D-
9, 2; Mississippi Gas, DD-4, 4; Texas Gas, DD-15, 5-6.
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    All of the comments that expressed a preference for any of the 
proposed sample labels favored Sample 4 (the bar graph with 
grids).177 Speed Queen preferred the overall format of Sample 4, 
but suggested that the lower half of Sample 3 was preferable because it 
emphasized the definition of ``energy factor.''178 ACEEE and WSEO 
preferred Sample 4 and suggested minor improvements.179 WSEO also 
commented that the proposed changes to the labels are necessary to 
improve their usefulness, and that the costs of the improvements will 
probably be low compared to the benefits.180 USEPA preferred 
Sample 4 because of the cross grids behind the bar graph and found it 
the easiest to read and understand.181
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    \1\77Amana, D-1, 3 (``no objection to the Sample 4''); Speed 
Queen, D-8, 2; ACEEE, DD-8, 1; WSEO, DD-9, 1-2; USEPA, DD-12, 1.
    \1\78Speed Queen, D-8, 2 (the comment noted that the definition 
would not be necessary if kWh/cycle were used instead of energy 
factor).
    \1\79ACEEE appeared to recommend omitting the definition of 
``energy factor'' from the bar graph box. DD-8, 2. WSEO suggested 
rearrangement of some of the wording on the label and use of 
``kilowatt-hour,'' rather than ``kilowatt.'' DD-9, 2-3.
    \1\80WSEO DD-9, 3.
    \1\81USEPA, DD-12, 1.
---------------------------------------------------------------------------

    Whirlpool commented that the present horizontal format has been in 
use for the past 13 years with no adverse consumer feedback that would 
indicate misunderstanding or confusion about the ranges of 
comparability. It further noted that maintaining consistency with the 
present format would reduce costs to manufacturers and, ultimately, to 
consumers. It also would reduce confusion and the need for reeducation 
among retail salespeople and consumers.182 Whirlpool, Maytag and 
AHAM asked that the EnergyGuide format be consistent with the Canadian 
EnerGuide label format.183
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    \1\82Whirlpool, D-3, 5.
    \1\83Whirlpool, D-3, 5; Maytag, D-4, 4-5; AHAM, D-5, 11-12. The 
Canadian label, which was provided in Attachments to both Maytag's 
and AHAM's comments, is based on a horizontal scale similar to the 
current EnergyGuide label.
---------------------------------------------------------------------------

    AHAM opposed any format changes except to the extent necessary to 
accommodate new energy usage descriptors because consumers have become 
accustomed to reading the existing EnergyGuide labels.184 AHAM 
suggested, however, as did Whirlpool, that the format be changed 
slightly to allow for flexibility in size so labels could range between 
5.25 and 5.50 inches in width, which would include the presently 
required 5\5/16\'' width specification. According to Whirlpool, this 
would provide some latitude to allow for minor variations in printing 
operations.185
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    \1\84AHAM, D-5, 11.
    \1\85AHAM, D-5, 10-11; Whirlpool, D-3, 5.
---------------------------------------------------------------------------

    Speed Queen asked that labels not become larger, because the 
present size specifications optimize the number of labels that can be 
printed from a sheet of paper stock.186 Amana, Maytag, and AHAM 
requested that the final label format be printable with manufacturers' 
existing printing systems.187 ARI and GAMA commented that, if 
labels are to be required, they should remain the same because none of 
the proposed new formats would provide any significant, cost-
justifiable benefits.188
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    \1\86Speed Queen, D-8, 2.
    \1\87Amana, D-1, 3; Maytag, D-4, 3; AHAM, D-5, 12. None of these 
comments, however, provided any specific information on how to 
assure this.
    \1\88ARI, D-6, 2; GAMA, D-9, 2.
---------------------------------------------------------------------------

    The Commission has determined not to make major changes in the 
format of the primary energy usage disclosure on EnergyGuides except 
those that are necessary because the Commission is amending the Rule to 
require the use of new energy usage descriptors. The Commission also is 
eliminating cost grids from labels for refrigerators, refrigerator-
freezers, freezers, water heaters, clothes washers, dishwashers, and 
room air conditioners. See the discussions in Parts IV.A.6. b. and c., 
above and IV.B.4.b., below. Consumers are familiar with the current 
horizontal bar format, which has been in use for twelve years. The 
Commission also has concluded that the record is inconclusive about the 
need for and advantages of a different format for presentation of the 
primary energy usage disclosure.189 Finally, retaining the 
existing horizontal format of the primary disclosure has the advantage 
of continued consistency with Canada's EnerGuide labels.190
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    \1\89See comments of PSCNC, who questioned making decisions on 
the basis of such a small consumer survey (DD-1, 1-2) and 
Mississippi Gas, whose own consumer study suggests that the 
Commission should conduct further study in its development of an 
effective energy label (DD-4, 4).
    \1\90See comments on this subject from Amana, D-1, 3; Whirlpool, 
D-3, 5; Maytag, D-4, 3-4; AHAM, D-5, 2, 8-9; ARI, D-6, 3; Speed 
Queen, D-8, 2; GAMA, D-9, 3. With their comments, AHAM and Maytag 
provided copies of a marketing research study conducted by the 
Canadian Government's Ministry of Energy, Mines and Resources 
(``EMR'') summarizing and discussing focus group interviews used to 
test consumer comprehension of alternative energy label formats. EMR 
conducted the study in connection with revisions to Canada's 
``EnerGuide'' labels for appliances. Consumers were exposed to 
alternative formats of labels disclosing three measures of energy 
usage--energy efficiency, operating cost, or energy consumption.
    The study indicated that a simple and clear disclosure of energy 
consumption, in the form of kilowatt-hours per year, was the easiest 
for consumers to understand. Labels disclosing estimated annual 
operating cost or energy efficiency seemed to be more confusing. The 
study also showed consumer preference for energy usage disclosure on 
a scale measuring from ``low'' on the left to ``high'' on the right.
    The revised label format that will be issued for final comment 
by EMR discloses energy usage in the form of estimated annual energy 
consumption (in kWh/yr.) over a horizontal bar showing the energy 
usage range, with color shading increases in intensity from left to 
right as energy consumption increases. The energy consumption of the 
labeled appliance is indicated with a pointer located at the 
appropriate position on the scale.
---------------------------------------------------------------------------

    Within the context of the existing horizontal bar format, however, 
the Commission is making certain changes to make the labels simpler and 
more ``user-friendly.'' The Commission proposed many of these changes 
as part of the Sample Labels in the 1993 NPR.191
---------------------------------------------------------------------------

    \1\91See proposed Sample Labels 1-4 at 58 FR 12847-50.
---------------------------------------------------------------------------

    Specifically, to simplify the appearance of the labels overall, the 
Commission has removed all text from the labels above the 
``EnergyGuide'' logo and moved the phrase ``Based on standard U.S. 
Government tests'' from its present location under the horizontal bar 
so it appears as the only text immediately below the EnergyGuide logo. 
The Commission has increased the size of the type of this phrase so 
consumers can clearly see that the energy usage information is based on 
government standards.192 The Commission also has changed the 
arrangement of the text on the labels somewhat to maximize the use of 
the free space resulting from the elimination of the cost grids and the 
references to cost calculation that accompanied them (discussed in Part 
IV.B.4.b., below.)
---------------------------------------------------------------------------

    \1\92One of the findings in the DOE-sponsored assessment of 
DOE's Appliance Labeling Rule consumer education program was that 
labels must display more clearly the government's role in the tests 
for the labeling program to have more credibility. B-3, 35.
---------------------------------------------------------------------------

    In addition, to emphasize to consumers that the information on the 
labels is for use in comparative shopping (rather than to provide exact 
energy usage of the appliance in the home), the Commission has added 
the headline ``Compare the [Energy Use or Energy Efficiency ] of this 
[Product] with Others Before You Buy.''
    The Commission recognizes that, at least at first, the energy 
consumption descriptors on the amended labels may not be as familiar to 
consumers as the estimated annual dollar operating cost figures on the 
current labels have been, and that the product-specific efficiency 
descriptors may also seem unfamiliar. For each energy consumption 
descriptor (kWh/year, therms per year, and gallons per year) and energy 
efficiency descriptor (EER, SEER, AFUE, and HSPF), therefore, the 
Commission will require that the labels include a simple definition.
    Finally, the Commission also is amending slightly the size 
requirements for the labels in section 305.11(a)(1) of the Rule to 
permit some flexibility in the label's width, as requested by AHAM and 
Whirlpool. This accommodates the needs of the industry and will have a 
de minimis effect on label size consistency.
    The above-described modifications are reflected in the amended 
Sample Labels in ``Text of Amendments,'' below.
    b. Cost grids. Labels for refrigerators, refrigerator-freezers and 
freezers, dishwashers, clothes washers, water heaters, and room air 
conditioners currently contain cost grids to enable consumers to 
estimate the annual operating cost of the product based on their own 
utility rates. In the 1993 NPR, the Commission proposed that the 
amended labels contain similar, although simpler, cost grids. One 
element of these cost grids would be a range of costs for the fuel used 
by the product (electricity, natural gas, etc.). The Commission asked 
what cost figures and what intervals between the cost figures would be 
appropriate. The Commission asked in particular how easy it is for 
consumers to use the cost grid to compare the relative costs of 
alternative products. Although the Commission did not propose 
eliminating cost grids from the labels, the Commission asked for 
suggestions for improving the design of the proposed labels.
    Ten comments addressed these questions. Four supported the 
continued use of cost grids, some suggesting minor 
modifications.193 The other six ranged from questioning the need 
for cost grids to recommending that they be eliminated from all 
labels.194
---------------------------------------------------------------------------

    \1\93ACEEE, DD-8, 1-2; WSEO, DD-9, 2; Texas Gas, DD-15, 4; CEC, 
DD-23, 24.
    \1\94Amana, D-1, 3; Whirlpool, D-3, 4; Maytag, D-4, 3; AHAM, D-
5, 11; Laclede Gas, DD-20, 1-5; EGIA, DD-21, 2.
---------------------------------------------------------------------------

    ACEEE commented that the cost grids, as shown on Sample Labels 1-4, 
are well-designed and useful to the consumer. The comment, however, 
suggested standardizing the ranges of costs for electricity and gas on 
labels for all products, so every label would show the same fuel cost 
numbers (and intervals between them) on the grids.195 WSEO said 
the grids are helpful and simple and agreed with the cost figures and 
the intervals between them.196 Texas Gas commented that the cost 
grids are most useful for making cross-fuel comparisons and that the 
grids on water heater labels should be expanded to show annual energy 
costs for operation of the water heater on electricity, gas, and oil, 
regardless of what fuel the labeled product actually uses.197 CEC 
stated that the 1993 NPR cost grids are adequate.198
---------------------------------------------------------------------------

    \1\95ACEEE, DD-8, 1-2.
    \1\96WSEO, DD-9, 2. WSEO noted, however, that the cost grids are 
not the most important part of the label.
    \1\97Texas Gas, DD-15, 4.
    \1\98CEC, DD-23, 24.
---------------------------------------------------------------------------

    Amana commented that cost grids are inappropriate for climate 
control products because of the complexity of calculating heating and 
cooling loads. Amana was concerned that large increments in energy cost 
values on cost grids, caused by label space constraints, could confuse 
consumers who have trouble calculating the costs. Amana stated that 
Canada's energy label for refrigerators has for years disclosed kWh/
year with no cost grids.199
---------------------------------------------------------------------------

    \1\99Amana, D-1, 3. Canada's soon-to-be-revised Energuide labels 
are not likely to require cost grids on labels for any covered 
product categories. See Attachments to comments from Maytag and 
AHAM.
---------------------------------------------------------------------------

    Whirlpool stated that the grids only approximate annual operating 
cost, while kWh/cycle or kWh/year, in conjunction with local rates, 
would provide precise cost figures. It recommended replacing the grids 
with instructions on how to consult with a local utility company and to 
calculate the annual operating cost based on kWh/cycle or kWh/
year.200 Maytag also recommended eliminating cost grids from all 
labels, contending that they complicate the message of the label and 
make it less likely to be used by consumers. Also, according to Maytag, 
the grids are redundant because it is obvious that the more kilowatt-
hours of energy consumed, the more costly the operation of the product 
will be.201
---------------------------------------------------------------------------

    \2\00Whirlpool, D-3, 4.
    \2\01Maytag, D-4, 2.
---------------------------------------------------------------------------

    AHAM, while supporting the existing EnergyGuide format in general, 
encouraged the Commission to eliminate cost grids from the labels. AHAM 
cited a DOE study referenced in the 1993 NPR indicating that consumers 
rarely use cost grids and often consider them to contain extraneous 
information.202 AHAM also contended that eliminating the grids 
would further harmonize the Commission's EnergyGuide labels with 
Canada's EnerGuides.203
---------------------------------------------------------------------------

    \2\02See the 1993 NPR at 58 FR 12829 and B-2, 38-39. The same 
discussion in the DOE study also includes the opinions of some 
consumers who favored the cost grids.
    \2\03AHAM, D-5, 11.
---------------------------------------------------------------------------

    EGIA commented that the cost grids are confusing to customers and, 
therefore, confusing to salespeople.204 Laclede Gas, in opposing 
the use of energy factors on water heater labels, noted that the 
inclusion of simplified cost grids would not be sufficient to overcome 
the distorted information provided by the energy factor 
disclosure.205
---------------------------------------------------------------------------

    \2\04EGIA, DD-21, 2.
    \2\05Laclede Gas, DD-20, 4. The comment was in opposition to the 
proposal to require energy factors on water heater labels, 
supplemented by a cost grid to enable consumers to estimate the 
annual operating cost of the products based on local utility rates.
---------------------------------------------------------------------------

    The Commission's authority to require cost grids is derived from 
section 324(c)(5) of EPCA.206 This section permits, but does not 
direct, the Commission to require additional information on labels 
relating to energy consumption if the Commission determines that such 
information would assist consumers in making purchasing decisions and 
would not be unduly burdensome to manufacturers. Therefore, the 
Commission has the authority to eliminate cost grids from labels if it 
no longer believes that they will assist consumers in making purchasing 
decisions.
---------------------------------------------------------------------------

    \2\0642 U.S.C. 6294(c)(5).
---------------------------------------------------------------------------

    Some industry members contended that consumers often find that the 
cost grids are confusing and detract from the basic message of the 
labels.207 As explained earlier, other amendments the Commission 
is adopting will provide consumers with energy consumption information 
that can be readily converted to provide the labeled product's 
operating cost. Specifically, the Commission's adoption of estimated 
annual energy consumption disclosures for refrigerators, refrigerator-
freezers, freezers, water heaters, clothes washers, and dishwashers 
makes cost grids on labels for those products unnecessary because the 
information they provide will now be available by multiplying the 
energy consumption figure by an appropriate cost per kWh, therm or 
gallon.208 Accordingly, the Commission has determined to eliminate 
cost grids from labels for these products.
---------------------------------------------------------------------------

    \2\07See Maytag, D-4, 2; AHAM, D-5, 11; EGIA, DD-21/ 2.
    \2\08See Parts IV.A.6.a., b., and c., above.
---------------------------------------------------------------------------

    The Commission believes, however, that consumers may want and 
benefit from a simplified direct disclosure of estimated annual 
operating cost. Therefore, the Commission will now require, on labels 
for refrigerators, refrigerator-freezers, freezers, clothes washers, 
dishwashers, and water heaters, a statement that shows the operating 
costs for the labeled product derived using the DOE annual average cost 
for electricity, natural gas, propane, or heating oil, as appropriate. 
This will provide consumers with an estimate, for purposes of 
comparison, of the product's energy usage expressed as an operating 
cost. The statement will identify the specific costs per unit for the 
appropriate fuel and the year DOE published it. Because the statement 
will not include operating cost ranges of comparability, however, the 
Commission will require updating of these cost figures only in 
connection with label changes occasioned by the publication of 
revisions to the energy consumption ranges that must appear with the 
primary energy consumption disclosure. The statement will read as 
follows:
    [Products] using more energy cost more to operate. This model's 
estimated yearly operating cost is:
    [Cost figure will be boxed] Based on a [Year] U.S. Government 
national average cost of $______ per [kWh, therm, or gallon] for 
[electricity, natural gas, propane, or oil]. Your actual operating cost 
will vary depending on your local utility rates and your use of the 
product.209
---------------------------------------------------------------------------

    \2\09For clothes washers and dishwashers, the statement will 
read: [Product]s using more energy cost more to operate. This 
model's estimated yearly operating cost is:
    [Electric cost figure will be boxed] when used with an electric 
water heater
    [Gas cost figure will be boxed] when used with a natural gas 
water heater
    Based on a [Year] U.S. Government national average cost of 
$______ per kWh for electricity, and $______ per therm for natural 
gas. Your actual operating cost will vary depending on your local 
utility rates and your use of the product.
---------------------------------------------------------------------------

    The primary energy usage disclosure on the current labels for room 
air conditioners is an energy efficiency figure identified as an 
``energy efficiency ratio (EER)'' in the industry.210 The labels 
also must disclose a cost grid based on different costs per kWh for 
electricity and different hours of use per year of the product. Like 
the cost grids on current labels for the products just discussed, these 
cost grids are complicated and occupy a significant amount of label 
space. Although they are not being amended to disclose an energy 
consumption descriptor like the amended labels for these other 
products, the Commission believes that, as with the other labels, room 
air conditioner labels would benefit by replacement of the cost grids 
with the operating cost statement, and is amending the Rule to that 
effect. The space on all these labels that was previously occupied by 
the cost grids and text references to cost will be available for the 
remaining text of the labels, which will be presented in a cleaner, 
more readable format.211
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    \2\10See the discussion of the Commission's adoption of industry 
terms for required energy efficiency descriptors in Part IV.B.3., 
above.
    \2\11See the discussion of the text of the labels in Part 
IV.B.4.a., above.
---------------------------------------------------------------------------

    To implement the elimination of cost grids from labels, the 
Commission is amending the Sample Labels for refrigerators, 
refrigerator-freezers, freezers, clothes washers, dishwashers, water 
heaters, and room air conditioners. The Commission also is amending the 
Appendices that pertain to these categories to delete the cost grid 
materials there contained (see Appendices A1-F in ``Text of 
Amendments,'' below) as well as the section of the Rule that requires 
cost grids to be on labels for these products (see section 
305.11(a)(5)(i)(H) in ``Text of Amendments,'' below.)

V. Miscellaneous Issues

    Several comments submitted in response to the 1993 NPR raised 
issues that the Commission has not identified for comment, or were 
related only indirectly to the proposals in the NPR. These issues are 
discussed below.
A. Effective Date
    AHAM and ARI requested, without elaboration, that the Commission 
allow six months until the amendments become effective.212 Section 
324 of EPCA provides that a labeling rule must take effect not later 
than three months after the date it is prescribed, except that the 
effective date can be extended to six months if the Commission 
determines that such extension is necessary to allow adequate time for 
compliance.213 Because of the nature and extent of the amendments 
being announced today, and in view of the request by the two trade 
associations, the Commission finds that the six-month period is 
necessary to allow those who are subject to the Rule to come into 
compliance with the amendments. The effective date of these amendments, 
therefore, will be six months from the date of their publication in the 
Federal Register.
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    \2\12AHAM, D-5, 14; ARI, D-6, 5.
    \2\1342 U.S.C. 6294(b)(4).
---------------------------------------------------------------------------

B. Central Air Conditioner Labeling
    ARI requested that the Commission amend the Rule to require 
manufacturers of split-system central air conditioners and the 
evaporator coils (sometimes sold separately) that are a part of them to 
base their representations of energy usage on the DOE test 
procedures.214 ARI also suggested that certain disclosures on 
central air conditioner labels be amended.215 The Commission 
believes that soliciting public comment on the proposal in the Federal 
Register may be required before imposing such an amendment.216 The 
Commission will take these suggestions under advisement for future 
amendments.
---------------------------------------------------------------------------

    \2\14ARI, D-6, 3-4. Split system central air conditioners 
consist of a condensing unit, which is usually installed outside, 
and an evaporator coil, which is installed in the duct work inside 
the house. These two parts can be purchased from the same 
manufacturer or from two different manufacturers.
    \2\15ARI asked that the text on central air conditioner labels 
be changed to eliminate, from the following statement, the assertion 
that ratings may vary ``slightly'': ``This energy rating is based on 
U.S. Government standard tests of this condenser model combined with 
the most common coil. The rating will vary slightly with different 
coils and in different geographic regions.'' ARI also asked that the 
statement suggest that consumers contact dealers for the actual 
efficiency rating of the purchased combination.
    \2\1642 U.S.C. 6306(a)(1).
---------------------------------------------------------------------------

C. Cost Grids and Furnace Labeling
    ACEEE made several suggestions pertaining to figures and 
disclosures for use on cost grids.217 Because the Commission is 
eliminating cost grids from labels on refrigerators, refrigerator-
freezers, freezers, clothes washers, dishwashers, water heaters, and 
room air conditioners, these suggestions are no longer relevant. ACEEE 
also provided an alternative Heat Loss Table for use with the 
Appendices pertaining to furnaces.218 The Commission cannot modify 
the Heat Loss Tables, however, because they are provided by DOE as a 
part of the test procedure for furnaces.219
---------------------------------------------------------------------------

    \2\17ACEEE, DD-8, 1-3. For example, ACEEE suggested a map 
showing regional zones for room air conditioners similar to the map 
used for central air conditioners.
    \2\18Id., at 3.
    \2\1942 U.S.C. 324(c)(1).
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D. Water Use Disclosures
    USEPA suggested that the Rule be expanded to include a disclosure 
of the water-use efficiency of appliances that use water.220 
Because EPCA does not give the Commission the authority to require such 
disclosures, the Commission cannot expand the Rule as USEPA requests. 
In a related matter, however, the Commission recently has amended the 
Rule to require disclosure of the water use of certain plumbing 
products, in accordance with a directive in the Energy Policy Act of 
1992.221 
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    \2\20USEPA, DD-12, 1-2.
    \2\21See 58 FR 54955 (Oct. 25, 1993).
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E. Data Submissions, Ranges of Comparability, and Testing
    CEC suggested specific revisions to three sections of the Rule. 
First, CEC suggested that section 305.8 be amended so required 
submissions of data could be made to the Commission ``or its designated 
representative.''222 Second, CEC requested adding language to 
section 305.9 that would give the Commission the authority to change 
the ranges of comparability in circumstances other than when the range 
limits change by more than 15%.223 Third, CEC proposed several 
changes to section 305.16, which relates to required testing by 
designated laboratories for enforcement purposes. CEC stated that the 
section should clarify whether ``no more than two'' samples must be 
tested and should provide for verification testing without the notice 
and reverification procedures currently in the section, and that the 
Commission should not pay for the tests when they are required.224
---------------------------------------------------------------------------

    \2\22CEC, DD-23, 27-28.
    \2\23Id., 28.
    \2\24Id., 28-30. j
---------------------------------------------------------------------------

    The Commission appreciates CEC's suggestions. However, before 
adopting any such amendments, the Commission would need to solicit 
public comment on them. The Commission will take these suggestions 
under advisement for possible future amendment proceedings.

VI. Metric Usage

    Section 205b of the Metric Conversion Act, as amended by the 
Omnibus Trade and Competitiveness Act, states that the metric 
measurement system is the preferred system of weights and measures in 
the United States.225 It also requires federal agencies to use the 
metric system in all procurements, grants and other business-related 
activities (which include rulemakings), except to the extent that such 
use is impractical or is likely to cause significant inefficiencies or 
loss of markets to United States firms. Because of its general support 
of the policy stated in the Omnibus Trade and Competitiveness Act, the 
Commission solicited comment, in the 1993 NPR, on three areas of the 
Rule (described below) with a potential for the use of metric terms--
either in place of or in addition to inch-pound measurements.
---------------------------------------------------------------------------

    \2\2515 U.S.C. 205b.
---------------------------------------------------------------------------

    First, the Commission asked whether section 305.11(a) of the Rule 
should specify the dimensions of the required EnergyGuides in metric or 
dual terms, or remain unchanged. Second, the Commission solicited 
comment on whether the Rule should require that the capacity 
descriptors for covered products be expressed in metric or dual 
terms.226 Manufacturers must annually submit to the Commission 
energy efficiency data on their products, based on DOE tests, that are 
categorized on the basis of these capacity descriptors. These data then 
form the basis for the ranges of comparability on the EnergyGuides. See 
section 305.8 of the Rule. The Commission asked whether to leave the 
present requirements unchanged, or to require the reports to the 
Commission and/or the disclosures on the EnergyGuides to be in metric 
or in dual terms. Third, the cost grids currently required on 
EnergyGuides for clothes washers, dishwashers, and water heaters show, 
as one factor of the grid, a fuel cost expressed in terms of kilowatt-
hours for electricity, therms for natural gas, and gallons for heating 
oil. None of these is a completely metric term. See Appendices C, D, 
and F. The Commission solicited comment on whether to require metric or 
dual disclosures, or to leave the present requirements unchanged.
---------------------------------------------------------------------------

    \2\26Currently, section 305.7 of the Rule requires that the 
capacity descriptors for some products be in inch-pound measurement: 
cubic feet for refrigerators, refrigerator-freezers and freezers, 
Btu's for climate control products, and first hour rating in gallons 
for water heaters.
---------------------------------------------------------------------------

    Ten comments addressed the issue of metric usage.227 Only CEC 
supported adopting metric or dual measurements in any of the Rule's 
requirements. The others recommended leaving the Rule unchanged.
---------------------------------------------------------------------------

    \2\27Amana, D-1, 4; Whirlpool, D-3, 6; AHAM, D-5, 12-13; ARI, D-
6, 2-3; Speed Queen, D-8, 1; GAMA, D-9, 2-3; ACEEE, DD-8, 2; Texas 
Gas, DD-15, 5-6; Laclede Gas, DD-20, 6; CEC, DD-23, 25-26.
---------------------------------------------------------------------------

    CEC recommended that the dimension specifications for the labels 
and the capacity descriptors on labels be specified in dual terms. CEC 
stated that the Rule should continue to allow that submissions be made 
in inch-pound units because Commission staff could make the conversion 
to metric units more easily after preparing ranges of comparability. On 
cost grids, CEC recommended keeping kWh without inch-pound equivalents, 
and requiring that therms and gallons be disclosed with their metric 
equivalents.228
---------------------------------------------------------------------------

    \2\28CEC, DD-23, 25-26.
---------------------------------------------------------------------------

    Amana, Speed Queen and Texas Gas opposed amending the label 
dimension specifications.229 Amana contended that there is no 
benefit to metric dimensioning, and Speed Queen stated that metric or 
dual dimensions would most likely conflict with printing industry 
standards for type font sizing and spacing.230
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    \2\29Amana, D-1, 4; Speed Queen, D-8, 1; Texas Gas, DD-15,5-6.
    \2\30Amana, D-1, 4; Speed Queen, D-8, 1.
---------------------------------------------------------------------------

    Most of the comments that opposed requiring label disclosures in 
metric or dual units stated that the labels with metric or dual 
disclosures would be cluttered and complicated,231 would confuse 
consumers,232 and would be less ``consumer-friendly,'' contrary to 
the Commission's goals in revising label format.233 GAMA contended 
that consumers would not understand metric terms and that the DOE tests 
do not use them. GAMA further stated that a dual disclosure requirement 
would make the already full GAMA Directory confusing and 
unwieldy.234 ACEEE stated that dual or metric disclosures would 
educate consumers as to metric measurements but confuse them as to 
energy usage and complicate the labels.235
---------------------------------------------------------------------------

    \2\31ARI, D-6, 2; ACEEE, DD-8, 2; Texas Gas, DD-15, 5-6; Laclede 
Gas, DD-20, 6.
    \2\32ARI, D-6, 2; Speed Queen, D-8, 1; ACEEE, DD-8, 2; Laclede 
Gas, DD-20, 6.
    \2\33Whirlpool, D-3, 6; Speed Queen, D-8, 1; ACEEE, DD-8, 2.
    \2\34GAMA, D-9, 2-3.
    \2\35ACEEE, DD-8, 2.
---------------------------------------------------------------------------

    Four comments contended that requirements to submit or disclose 
capacities in metric or dual terms would be place a burden on the 
industry, although none quantified the burden.236 AHAM and Texas 
Gas declared that a change to metric or dual disclosures would be 
burdensome, and Amana predicted that the use of dual terms would add 
time to the preparation of data submissions.237 ARI stated that 
requiring submissions in metric terms would defeat the purpose of 
permitting industry efficiency descriptors (such as ``AFUE'' and 
``SEER''), and that showing information on labels in metric terms would 
be a burden on industry that would not benefit consumers.238
---------------------------------------------------------------------------

    \2\36Amana, D-1, 4; AHAM, D-5, 13; ARI, D-6, 2-3; Texas Gas, DD-
15, 5.
    \2\37AHAM, D-5, 13; Texas Gas, DD-15, 5; Amana, D-1, 4.
    \2\38ARI, D-6, 2-3. See discussion of industry efficiency 
descriptors at Part IV.B.3., above.
---------------------------------------------------------------------------

    The Commission has determined that requiring manufacturers to 
disclose label information in metric terms could cause significant 
inefficiencies by confusing consumers. As ACEEE stated, such a 
requirement may raise consumers' awareness of metric terms, but at the 
expense of the basic purpose of the labeling program--effective 
communication of energy usage of labeled products. The Commission also 
has concluded that dual disclosures would unacceptably complicate 
labels. Because the Rule will not require metric or dual disclosures on 
labels, the Commission is not requiring submissions in those terms.
    To support the policy articulated in the Metric Conversion Act, the 
Commission is amending section 305.11(a)(1) of the Rule to have it 
express the dimensions of the labels in inch-pound and metric units. 
The Commission is leaving unchanged the font, type-point-size and pica 
specifications in the sample labels that show them, however, because 
they are for use only by the printing industry in setting up and 
producing the labels and because there are no direct metric equivalents 
for them.239
---------------------------------------------------------------------------

    \2\39The Commission could require that the dimensions of the 
printed areas of the labels and the type size specifications be 
expressed in millimeters.
---------------------------------------------------------------------------

VII. Regulatory Flexibility Act

    In the 1988 NPR, the Commission concluded, on a preliminary basis, 
that an initial regulatory flexibility analysis was not necessary for 
the proposed amendments to the Rule because the amendments, if 
promulgated, would not have a significant economic impact on a 
substantial number of small entities.240 The Commission stated 
that its conclusion was based on information presently available and 
requested comment on the subject. No comments were received on this 
issue.
---------------------------------------------------------------------------

    \2\40See Regulatory Flexibility Act, 5 U.S.C. 603-605; see also 
53 FR 22113.
---------------------------------------------------------------------------

    In the 1993 NPR, the Commission again sought comment on this issue. 
No comments were received. Accordingly, the Commission has no reason to 
believe that the amendments it is adopting will have a significant 
economic impact on a substantial number of small entities.
    First, the amendments relating to energy usage disclosures for 
furnaces will not have a significant impact because the two proposed 
changes are likely to offset each other in terms of cost and burden. To 
the extent that manufacturers will have to prepare the product-specific 
labels, instead of the labels presently required, they will incur 
somewhat greater administrative and printing expenses. This will be 
offset, to some extent, because they will be able to disclose required 
information in an industry directory instead of preparing fact sheets. 
Overall, the Commission expects that most firms, regardless of size, 
will experience a reduction of expense primarily because of lower 
printing costs.
    Second, the amendments relating to the creation of new range sub-
categories for furnaces, room air conditioners, clothes washers, 
refrigerators, refrigerator-freezers, and freezers will not have a 
significant economic impact. The amendments will impose few, if any, 
additional costs. In addition, these products would now be categorized 
in accordance with the subdivisions in DOE's minimum efficiency 
standards program, making it administratively easier for the affected 
organizations, which will no longer be required to comply with two sets 
of similar, but inconsistent, regulations.
    Finally, the amendments relating to the use of a different label 
format and different energy usage descriptors on labels will not have a 
significant economic impact. Although there will be a small initial 
cost in changing current labels, the cost is likely to be offset in 
future years because fewer annual label changes are likely to be 
required with the use of the new descriptors which, unlike current 
dollar descriptors, will not be subject to annual changes.
    Because it appears, on the basis of evidence presently available, 
that these changes will not be likely to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act and its implementing regulation, the 
Commission concludes that a final regulatory flexibility analysis is 
unnecessary. In light of the above, the Commission certifies, under the 
provisions of Section 5 of the Regulatory Flexibility Act, that the 
amendments it is adopting today will not have a significant economic 
impact on a substantial number of small entities.241
---------------------------------------------------------------------------

    \2\415 U.S.C. 605(b).
---------------------------------------------------------------------------

VIII. Paperwork Reduction Act

    In the 1988 NPR, the Commission stated that the Rule contains 
disclosure and reporting requirements that constitute ``information 
collection requirements'' as defined by 5 C.F.R. 1320.7(c), the 
regulation that implements the Paperwork Reduction Act 
(``PRA'').242 The Commission noted that the Rule had been reviewed 
and approved in 1984 by the Office of Management and Budget (``OMB'') 
and assigned OMB Control No. 3084-0068. Since the 1988 NPR was 
published, the Supreme Court has determined that agency regulations 
requiring disclosures to third parties are not subject to the 
PRA.243 OMB has again reviewed the Rule and extended its approval 
for its recordkeeping and reporting requirements until February 28, 
1996. The amendments now being adopted do not alter the recordkeeping 
or reporting requirements and, therefore, do not require further OMB 
clearance.
---------------------------------------------------------------------------

    \2\4244 U.S.C. 3501-3520.
    \2\43Dole v. United Steelworkers of America, 494 U.S. 26 (1990).
---------------------------------------------------------------------------

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, 
Incorporation by reference, Labeling, Reporting and recordkeeping 
requirements, Water conservation.

    For the reasons set forth in the preamble, 16 CFR is amended as 
follows:

Text of Amendments

PART 305--RULE CONCERNING DISCLOSURES REGARDING ENERGY CONSUMPTION 
AND WATER USE OF CERTAIN HOME APPLIANCES AND OTHER PRODUCTS 
REQUIRED UNDER THE ENERGY POLICY AND CONSERVATION ACT (``APPLIANCE 
LABELING RULE'')

    1. Part 305 is amended by revising the heading to read as set forth 
above.
    2. The authority citation for part 305 continues to read as 
follows:

    Authority: 42 U.S.C. 6294.

    3. Sections 305.2 (h) through (j) are revised to read as follows:


Sec. 305.2  Definitions.

* * * * *
    (h) Estimated annual energy consumption and estimated annual 
operating cost. (1) Estimated annual energy consumption means the 
energy or (for products described in sections 305.3(k)-(n)) water that 
is likely to be consumed annually in representative use of a consumer 
product, as determined in accordance with tests prescribed under 
section 323 of the Act (42 U.S.C. 6293).
    (i) Kilowatt-hour use per year, or kWh/yr., means estimated annual 
energy consumption expressed in kilowatt-hours of electricity.
    (ii) Therm use per year, or therms/yr., means estimated annual 
energy consumption expressed in therms of natural gas.
    (iii) Gallon use per year, or gallons/yr., means estimated annual 
energy consumption expressed in gallons of propane or No. 2 heating 
oil.
    (2) Estimated annual operating cost means the aggregate retail cost 
of the energy that is likely to be consumed annually in representative 
use of a consumer product, as determined in accordance with tests 
prescribed under section 323 of the Act (42 U.S.C. 6293).
    (i) Energy efficiency rating means the following product-specific 
energy usage descriptors: ``annual fuel utilization efficiency (AFUE)'' 
for furnaces; ``energy efficiency ratio (EER)'' for room air 
conditioners; ``seasonal energy efficiency ratio (SEER)'' for the 
cooling function of central air conditioners and heat pumps; and, 
``heating seasonal performance factor (HSPF)'' for the heating function 
of heat pumps, as all four descriptors are determined in accordance 
with tests prescribed under section 323 of the Act (42 U.S.C. 6293). 
These product-specific energy usage descriptors shall be used in 
satisfying all the requirements of this part.
    (j) Range of estimated annual energy consumption means the range of 
estimated annual energy consumption per year of all models within a 
designated range of comparability.
* * * * *
    4. Sections 305.3 (a) and (b) are revised to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

    (a) Refrigerators and refrigerator-freezers. (1) Electric 
refrigerator means a cabinet designed for the refrigerated storage of 
food at temperatures above 32  deg.F., and having a source of 
refrigeration requiring single phase, alternating current electric 
energy input only. An electric refrigerator may include a compartment 
for the freezing and storage of food at temperatures below 32  deg.F., 
but does not provide a separate low temperature compartment designed 
for the freezing and storage of food at temperatures below 8  deg.F. An 
``all-refrigerator'' is an electric refrigerator which does not include 
a compartment for the freezing and long time storage of food at 
temperatures below 32  deg.F (0.0  deg.C). An ``all-refrigerator'' may 
include a compartment of 0.50 cubic capacity (14.2 liters) or less for 
the freezing and storage of ice.
    (2) Electric refrigerator-freezer means a cabinet which consists of 
two or more compartments with at least one of the compartments designed 
for the refrigerated storage of food at temperatures above 32  deg.F. 
and with at least one of the compartments designed for the freezing and 
storage of food at temperatures below 8  deg.F. which may be adjusted 
by the user to a temperature of 0  deg.F. or below. The source of 
refrigeration requires single phase, alternating current electric 
energy input only.
    (b) Freezer means a cabinet designed as a unit for the freezing and 
storage of food at temperatures of 0  deg.F. or below, and having a 
source of refrigeration requiring single phase, alternating current 
electric energy input only.
* * * * *
    5. Section 305.3 is amended by adding paragraph (c)(1) and 
reserving paragraph (c)(2) to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (c) * * *
    (1) Water Heating Dishwasher means a dishwasher which is designed 
for heating cold inlet water (nominal 50  deg.F.) or a dishwasher for 
which the manufacturer recommends operation with a nominal inlet water 
temperature of 120  deg.F. and may operate at either of these inlet 
water temperatures by providing internal water heating to above 120 
deg.F. in at least one wash phase of the normal cycle.
    6. Section 305.3(e) is revised to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (e) Room air conditioner means a consumer product, other than a 
packaged terminal air conditioner, which is powered by a single phase 
electric current and which is an encased assembly designed as a unit 
for mounting in a window or through the wall for the purpose of 
providing delivery of conditioned air to an enclosed space. It includes 
a prime source of refrigeration and may include a means for ventilating 
and heating.
* * * * *
    7. Section 305.3(f) introductory text is revised to read as 
follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (f) Clothes washer means a consumer product designed to clean 
clothes, utilizing a water solution of soap and/or detergent and 
mechanical agitation or other movement, and must be one of the 
following classes: automatic clothes washers, semi-automatic clothes 
washers, and other clothes washers.
* * * * *
    8. Section 305.3(g) is revised to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (g) Furnaces. (1) Furnace means a product which utilizes only 
single-phase electric current, or single-phase electric current or DC 
current in conjunction with natural gas, propane, or home heating oil, 
and which--
    (i) Is designed to be the principal heating sources for the living 
space of a residence;
    (ii) Is not contained within the same cabinet with a central air 
conditioner whose rated cooling capacity is above 65,000 Btu per hour;
    (iii) Is an electric central furnace, electric boiler, forced-air 
central furnace, gravity central furnace, or low pressure steam or hot 
water boiler; and
    (iv) Has a heat input rate of less than 300,000 Btu per hour for 
electric boilers and low pressure steam or hot water boilers and less 
than 225,000 Btu per hour for forced-air central furnaces, gravity 
central furnaces, and electric central furnaces.
    (2) Electric central furnace means a furnace designed to supply 
heat through a system of ducts with air as the heating medium, in which 
heat is generated by one or more electric resistance heating elements 
and the heated air is circulated by means of a fan or blower.
    (3) Forced air central furnace means a gas or oil burning furnace 
designed to supply heat through a system of ducts with air as the 
heating medium. The heat generated by combustion of gas or oil is 
transferred to the air within a casing by conduction through heat 
exchange surfaces and is circulated through the duct system by means of 
a fan or blower.
    (4) Gravity central furnace means a gas fueled furnace which 
depends primarily on natural convection for circulation of heated air 
and which is designed to be used in conjunction with a system of ducts.
    (5) Electric boiler means an electrically powered furnace designed 
to supply low pressure steam or hot water for space heating 
application. A low pressure steam boiler operates at or below 15 pounds 
per square inch gauge (psig) steam pressure; a hot water boiler 
operates at or below 160 psig water pressure and 250  deg.F. water 
temperature.
    (6) Low pressure steam or hot water boiler means an electric, gas 
or oil burning furnace designed to supply low pressure steam or hot 
water for space heating application. A low pressure steam boiler 
operates at or below 15 pounds psig steam pressure; a hot water boiler 
operates at or below 160 psig water pressure and 250  deg.F. water 
temperature.
    (7) Outdoor furnace or boiler is a furnace or boiler normally 
intended for installation out-of-doors or in an unheated space (such as 
an attic or a crawl space).
    (8) Weatherized warm air furnace or boiler means a furnace or 
boiler designed for installation outdoors, approved for resistance to 
wind, rain, and snow, and supplied with its own venting system.
* * * * *
    9. Section 305.3(h) introductory text and paragraph (h)(3) are 
revised, and paragraphs (h) (4) and (5) are added, to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (h) Central air conditioner means a product, other than a packaged 
terminal air conditioner, which is powered by single phase electric 
current, air cooled, rated below 65,000 Btu per hour, not contained 
within the same cabinet as a furnace, the rated capacity of which is 
above 225,000 Btu per hour, and is a heat pump or a cooling only unit.
* * * * *
    (3) Evaporator coil means a component of a central air conditioner 
which is designed to absorb heat from an enclosed space and transfer 
the heat to a refrigerant.
    (4) Single package unit means any central air conditioner in which 
all the major assemblies are enclosed in one cabinet.
    (5) Split system means any central air conditioner in which one or 
more of the major assemblies are separate from the others.
* * * * *
    10. Section 305.3(i) is revised to read as follows:


Sec. 305.3  Description of covered products to which this part applies.

* * * * *
    (i) Heat pump means a product, other than a packaged terminal heat 
pump, which consists of one or more assemblies, powered by single phase 
electric current, rated below 65,000 Btu per hour, utilizing an indoor 
conditioning coil, compressor, and refrigerant-to-outdoor air heat 
exchanger to provide air heating, and may also provide air cooling, 
dehumidifying, humidifying, circulating, and air cleaning.
* * * * *
    11. The section heading and the introductory text of paragraph (a) 
of Sec. 305.5 are revised to read as follows:


Sec. 305.5  Determinations of estimated annual energy consumption, 
estimated annual operating cost, and energy efficiency rating, and of 
water use rate.

    (a) Procedures for determining the estimated annual energy 
consumption, the estimated annual operating costs, the energy 
efficiency ratings and the efficacy factors of covered products are 
those found in 10 CFR Part 430, Subpart B, in the following sections:
* * * * *
    12. Section 305.7 is revised to read as follows:


Sec. 305.7  Determinations of capacity.

    The capacity of covered products shall be determined as follows:
    (a) Refrigerators and refrigerator-freezers. The capacity shall be 
the total refrigerated volume (VT) in cubic feet, rounded to the 
nearest one-tenth of a cubic foot, as determined according to Appendix 
A1 to 10 CFR Part 430, Subpart B.
    (b) Freezers. The capacity shall be the total refrigerated volume 
(VT) in cubic feet, rounded to the nearest one-tenth of a cubic foot, 
as determined according to Appendix B1 to 10 CFR Part 430, Subpart B.
    (c) Dishwashers. The capacity shall be the place-setting capacity, 
determined according to Appendix C to 10 CFR Part 430, Subpart B.
    (d) Water heaters. The capacity shall be the first hour rating, as 
determined according to Appendix E to 10 CFR Part 430, Subpart B.
    (e) Room air conditioners. The capacity shall be the cooling 
capacity in Btu's per hour, as determined according to Appendix F to 10 
CFR Part 430, Subpart B, but rounded to the nearest value ending in 
hundreds that will satisfy the relationship that the value of EER used 
in representations equals the rounded value of capacity divided by the 
value of input power in watts. If a value ending in hundreds will not 
satisfy this relationship, the capacity may be rounded to the nearest 
value ending in 50 that will.
    (f) Clothes washers. The capacity shall be the tub capacity, 
rounded to the nearest gallon, as determined according to Appendix J to 
10 CFR Part 430, Subpart B, in the terms ``standard'' or ``compact'' as 
defined in Appendix J.
    (g) Furnaces. The capacity shall be the heating capacity in Btu's 
per hour, rounded to the nearest 1,000 Btu's per hour, as determined 
according to Appendix N to 10 CFR Part 430, Subpart B.
    (h) Central air conditioners, cooling. The capacity shall be the 
cooling capacity in Btu's per hour, as determined according to Appendix 
M to 10 CFR Part 430, Subpart B, rounded to the nearest 100 Btu's per 
hour for capacities less than 20,000 Btu's per hour; to the nearest 200 
Btu's per hour for capacities between 20,000 and 37,999 Btu's per hour; 
and to the nearest 500 Btu's per hour for capacities between 38,000 and 
64,999 Btu's per hour.
    (i) Central air conditioners, heating. The capacity shall be the 
heating capacity in Btu's per hour, as determined according to Appendix 
M to 10 CFR Part 430, Subpart B, rounded to the nearest 100 Btu's per 
hour for capacities less than 20,000 Btu's per hour; to the nearest 200 
Btu's per hour for capacities between 20,000 and 37,999 Btu's per hour; 
and to the nearest 500 Btu's per hour for capacities between 38,000 and 
64,999 Btu's per hour.
    (j) Fluorescent lamp ballasts. The capacity shall be the ballast 
input voltage, as determined according to Appendix Q to 10 CFR Part 
430, Subpart B.
    13. Section 305.8(a)(1) is revised to read as follows:


Sec. 305.8  Submission of data.

    (a)(1) Each manufacturer of a covered product (except manufacturers 
of fluorescent lamp ballasts, showerheads, faucets, water closets or 
urinals) shall submit annually to the Commission a report listing the 
estimated annual energy consumption (for refrigerators, refrigerator-
freezers, freezers, clothes washers, dishwashers and water heaters) or 
the energy efficiency rating (for room air conditioners, central air 
conditioners, heat pumps and furnaces) for each basic model in current 
production, determined according to Sec. 305.5 and statistically 
verified according to Sec. 305.6. The report must also list, for each 
basic model in current production: the model numbers for each basic 
model; the total energy consumption, determined in accordance with 
Sec. 305.5, used to calculate the estimated annual energy consumption 
or energy efficiency rating; the number of tests performed; and, its 
capacity, determined in accordance with Sec. 305.7. For those models 
that use more than one energy source or more than one cycle, each 
separate amount of energy consumption or energy cost, measured in 
accordance with Sec. 305.5, shall be listed in the report. Appendix J 
illustrates a suggested reporting format. Starting serial numbers or 
other numbers identifying the date of manufacture of covered products 
shall be submitted whenever a new basic model is introduced on the 
market.
* * * * *


Sec. 305.9  [Amended]

    14. Section 305.9(b) is amended by removing the second sentence.
    15. Section 305.10 is revised to read as follows:


Sec. 305.10  Ranges of estimated annual energy consumption and energy 
efficiency ratings.

    (a) The range of estimated annual energy consumption or energy 
efficiency ratings for each covered product (except fluorescent lamp 
ballasts, showerheads, faucets, water closets or urinals) shall be 
taken from the appropriate appendix to this rule in effect at the time 
the labels are affixed to the product. The Commission shall publish 
revised ranges annually in the Federal Register, if appropriate, or a 
statement that the specific prior ranges are still applicable for the 
new year. Ranges will be changed if the estimated annual energy 
consumption or energy efficiency ratings of the products within the 
range change in a way that would alter the upper or lower estimated 
annual energy consumption or energy efficiency rating limits of the 
range by 15% or more from that previously published. When a range is 
revised, all information disseminated after 90 days following the 
publication of the revision shall conform to the revised range. 
Products that have been labeled prior to the effective date of a 
modification under this section need not be relabeled.
    (b) When the estimated annual energy consumption or energy 
efficiency rating of a given model of a covered product falls outside 
the limits of the current range for that product, which could result 
from the introduction of a new or changed model, the manufacturer shall
    (1) Omit placement of such product on the scale, and
     (2) Add one of the two sentences below, as appropriate, in the 
space just below the scale, as follows:

    The estimated annual energy consumption of this model was not 
available at the time the range was published.
    The energy efficiency rating of this model was not available at 
the time the range was published.

    16. In Sec. 305.11, paragraphs (a)(1), (2), (3) and (4)(i) are 
revised to read as follows:


Sec. 305.11  Labeling for covered products.

    (a) Labels for covered products other than fluorescent lamp 
ballasts, showerheads, faucets, water closets and urinals--(1) Layout. 
All energy labels for each category of covered product shall use one 
size, similar colors and typefaces with consistent positioning of 
headline, copy and charts to maintain uniformity for immediate consumer 
recognition and readability. Trim size dimensions for all labels shall 
be as follows: width must be between 5\1/4\ inches and 5\1/2\ inches 
(13.34 cm. and 13.97 cm.); length must be 7\3/8\ inches (18.73 cm.). 
Copy is to be set between 27 picas and 29 picas and copy page should be 
centered (right to left and top to bottom). Depth is variable but 
should follow closely the prototype labels appearing at the end of this 
part illustrating the basis layout. All positioning, spacing, type 
sizes and line widths should be similar to and consistent with the 
prototype labels.
    (2) Type style and setting. The Helvetica Condensed series typeface 
or equivalent shall be used exclusively on the label. Specific sizes 
and faces to be used are indicated on the prototype labels. No 
hyphenation should be used in setting headline or copy text. 
Positioning and spacing should follow the prototypes closely. 
Generally, text must be set flush left with two points leading except 
where otherwise indicated. Helvetica Condensed Regular shall be used 
for all copy except the large number indicating the estimated annual 
energy consumption or energy efficiency rating, which shall be in 
Helvetica Condensed Black, and all other numerals and letters used in 
immediate connection with the Energy Efficiency Scale, which shall be 
in Helvetica Condensed Bold. See the prototype labels for specific 
directions.
    (3) Colors. The basic colors of all labels shall be process yellow 
or equivalent and process black. The label shall be printed full bleed 
process yellow. All type and graphics shall be print process black.
    (4) Paper stock--(i) Adhesive labels. All adhesive labels should be 
applied so they can be easily removed without the use of tools or 
liquids, other than water, but should be applied with an adhesive with 
an adhesion capacity sufficient to prevent their dislodgment during 
normal handling throughout the chain of distribution to the retailer or 
consumer. The paper stock for pressure-sensitive or other adhesive 
labels shall have a basic weight of not less than 58 pounds per 500 
sheets (25'' x 38'') or equivalent, exclusive of the release liner and 
adhesive. A minimum peel adhesion capacity for the adhesive of 12 
ounces per square inch is suggested, but not required if the adhesive 
can otherwise meet the above standard. The pressure-sensitive adhesive 
shall be applied in no fewer than two strips not less than 0.5 inches 
(1.27 cm.) wide. The strips shall be within 0.25 inches (.64 cm.) of 
the opposite edges of the label. For a ``flap-tag'' label, the 
pressure-sensitive adhesive shall be applied in one strip not less that 
0.5 inches (1.27 cm.) wide. The strip shall be within 0.25 inches (.64 
cm.) of the top edge of the label.
* * * * *


Sec. 305.11  [Amended]

    17. Section 305.11(a)(5)(i)(A) is amended by removing the second 
sentence.
    18. In Sec. 305.11, paragraphs (a)(5)(i)(E) through (H) and (J) are 
revised to read as follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *
    (i) * * *
    (E) Estimated annual energy consumption for refrigerators, 
refrigerator-freezers, freezers, clothes washers, dishwashers and water 
heaters and energy efficiency ratings for room air conditioners are as 
determined in accordance with Sec. 305.5.
    (F) Ranges of comparability and of estimated annual energy 
consumption and energy efficiency ratings, as applicable, are found in 
the appropriate appendices accompanying this part.
    (G) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest estimated annual energy 
consumption or energy efficiency ratings forming the scale.
    (H) Labels must contain a statement disclosing the product's 
estimated annual operating cost derived using the DOE National Average 
Representative Unit Cost for the appropriate fuel that was current when 
the label was printed. The statement must disclose the specific cost 
per unit for the fuel and the year DOE published it.
    (1) For refrigerators, refrigerator-freezers, freezers, and water 
heaters, the statement will read as follows (fill in the blanks with 
the appropriate appliance name, the operating cost, the year, and the 
energy cost figures):

    [Refrigerators, or Freezers, or Water Heaters] using more energy 
cost more to operate.
    This model's estimated yearly operating cost is: [Cost figure 
will be boxed] Based on a [Year] U.S. Government national average 
cost of $____________ per [kWh, therm, or gallon] for [electricity, 
natural gas, propane, or oil]. Your actual operating cost will vary 
depending on your local utility rates and your use of the product.

    (2) For clothes washers and dishwashers, the statement will read as 
follows (fill in the blanks with the appropriate appliance name, the 
operating cost, the number of loads per week, the year, and the energy 
cost figures):

    [Clothes Washers, or Dishwashers] using more energy cost more to 
operate.
    This model's estimated yearly operating cost is: [Electric cost 
figure will be boxed] when used with an electric water heater [Gas 
cost figure will be boxed] when used with a natural gas water 
heater.
    Based on [6 washloads a week for dishwashers, or 8 washloads a 
week for clothes washers], a [Year] U.S. Government national average 
cost of $____________ per kWh for electricity, and $____________ per 
therm for natural gas. Your actual operating cost will vary 
depending on your local utility rates and your use of the product.

    (3) For room air conditioners, the statement will read as follows 
(fill in the blanks with the appropriate operating cost, the year, and 
the energy cost figures):

    More efficient air conditioners cost less to operate.
    This model's estimated yearly operating cost is: [Cost figure 
will be boxed] Based on a [Year] U.S. Government national average 
cost of $____________ per kWh for electricity. Your actual operating 
cost will vary depending on your local utility rates and your use of 
the product.
* * * * *
    (J) A statement that the estimated annual energy consumption and 
energy efficiency ratings, as applicable, are based on U.S. Government 
standard tests is required on all labels, as indicated in the prototype 
labels.
* * * * *
    19. In Sec. 305.11, paragraphs (a)(5)(ii) (C) through (E) are 
revised and paragraphs (a)(5)(ii) (F) through (L) are added to read as 
follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *
    (ii) * * *
    (C) The annual fuel utilization efficiency for furnaces is 
determined in accordance with Sec. 305.5.
    (D) Each furnace label shall contain a generic range consisting of 
the lowest and highest annual fuel utilization efficiencies for all 
furnaces that utilize the same energy source.
    (E) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest annual fuel utilization 
efficiency ratings forming the scale.
    (F) The following statement shall appear on the label beneath the 
range(s) in bold print:

    Federal law requires the seller or installer of this appliance 
to make available a fact sheet or directory giving further 
information regarding the efficiency and operating cost of this 
equipment. Ask for this information.

    (G) A statement that the annual fuel utilization efficiency ratings 
are based on U.S. Government standard tests is required on all labels.
    (H) The following statement shall appear at the bottom of the 
label:

    IMPORTANT: REMOVAL OF THIS LABEL BEFORE CONSUMER PURCHASE IS A 
VIOLATION OF FEDERAL LAW (42 U.S.C. 6302).

    (I) No marks or information other than specified in this part shall 
appear on or directly adjoining this label except for a part or 
publication number identification, as desired by the manufacturer. The 
identification number shall be in the lower right-hand corner of the 
label, and characters shall be in 6 point type or smaller.
    (J) Manufacturers of boilers that are shipped without jackets must 
label their products with hang-tags that also have adhesive backing on 
them that complies with the specifications contained in 
Sec. 305.11(a)(4).
    (K) Manufacturers of boilers shipped with more than one input 
nozzle to be installed in the field must label such boilers with the 
AFUE of the system when it is set up with the nozzle that results in 
the lowest annual fuel utilization efficiency rating.
    (L) Manufacturers that ship out boilers that may be set up as 
either steam or hot water units must label the boilers with the AFUE 
rating derived by conducting the required test on the boiler as a hot 
water unit.
* * * * *
    20. The first two sentences of Sec. 305.11(a)(5)(iii)(C) 
introductory text are revised to read as follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *
    (iii) * * *
    (C) The seasonal energy efficiency ratio for the cooling function 
of central air conditioners is determined in accordance with 
Sec. 305.5. For the heating function, the heating seasonal performance 
factor shall be calculated for heating Region IV for the standardized 
design heating requirement nearest the capacity measured in the High 
Temperature Test in accordance with Sec. 305.5. * * *
* * * * *
    21. Section 305.11(a)(5)(iii)(D) is revised to read as follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *
    (iii) * * *
    (D)(1) Each cooling only central air conditioner label shall 
contain a generic range consisting of the lowest and highest seasonal 
energy efficiency ratios for all cooling only central air conditioners.
    (2) Each heat pump label, except as noted in paragraph 
(a)(5)(iii)(D)(3) of this section, shall contain two generic ranges. 
The first range shall consist of the lowest and highest seasonal energy 
efficiency ratios for the cooling side of all heat pumps. The second 
range shall consist of the lowest and highest heating seasonal 
performance factors for the heating side of all heat pumps.
    (3) Each heating only heat pump label shall contain a generic range 
consisting of the lowest and highest heating seasonal performance 
factors for all heating only heat pumps.
* * * * *
    22. Sections 305.11(a)(5)(iii)(G) (1) through (3) are revised to 
read as follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *
    (iii) * * *
    (G) * * *
    (1) For labels disclosing the seasonal energy efficiency ratio for 
cooling, the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
may vary slightly with different coils.

    (2) For labels disclosing both the seasonal energy efficiency ratio 
for cooling and the heating seasonal performance factor for heating, 
the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.

    (3) For labels disclosing the heating seasonal performance factor 
for heating, the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.

Central air conditioner labels disclosing the efficiency ratings for 
specific condenser/coil combinations do not have to contain any of the 
above three statements. They must contain only the general disclosure 
that the energy costs and efficiency ratings are based on U.S. 
Government tests.
* * * * *
    23. Section 305.11(b)(3)(vi) is revised to read as follows:


Sec. 305.11  Labeling for covered products.

* * * * *
    (b) * * *
    (3) * * *
    (vi) Ranges of comparability and of energy efficiency ratings are 
found in section 1 of the appropriate appendices accompanying this 
part.
* * * * *
    24. Sections 305.11(b)(3)(x) (A) through (C) are revised to read as 
follows:


Sec. 305.11  Labeling for covered products.

* * * * *
    (b) * * *
    (3) * * *
    (x) * * *
    (A) For fact sheets disclosing the seasonal energy efficiency ratio 
for cooling, the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
may vary slightly with different coils.

    (B) For fact sheets disclosing both the seasonal energy efficiency 
ratio for cooling and the heating seasonal performance factor for 
heating, the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.

    (C) For fact sheets disclosing the heating seasonal performance 
factor for heating, the statement should read:

    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.
* * * * *
    25. In Sec. 305.11, paragraphs (c) introductory text and (c)(1) are 
revised, and paragraph (c)(3)(vi) is added to read as follows:


Sec. 305.11  Labeling for covered products.

* * * * *
    (c) Manufacturers of furnaces and central air conditioners may 
elect to disseminate information regarding the efficiencies and costs 
of operation of their products by means of a directory or similar 
publication, rather than on fact sheets, provided the publication meets 
the following criteria:
    (1) Distribution.
    (i) It must be distributed to substantially all retailers and 
assemblers of central air conditioners and furnaces selling or 
assembling models listed in the directory.
    (ii) It must be made available at cost to all other interested 
parties.
* * * * *
    (3) Contents. * * *
    (vi) Ranges of comparability and of energy efficiency ratings are 
found in Section 1 of the appropriate appendices accompanying this 
part.
* * * * *
    26. Section 305.13 is revised to read as follows:


Sec. 305.13  Promotional material displayed or distributed at point of 
sale.

    (a)(1) Any manufacturer, distributor, retailer or private labeler 
who prepares printed material for display or distribution at point of 
sale concerning a covered product (except fluorescent lamp ballasts, 
showerheads, faucets, water closets or urinals) shall clearly and 
conspicuously include in such printed material the following required 
disclosure:

    Before purchasing this appliance, read important information 
about its estimated annual energy consumption or energy efficiency 
rating that is available from your retailer.

    (2) Any manufacturer, distributor, retailer or private labeler who 
prepares printed material for display or distribution at point of sale 
concerning a covered product that is a fluorescent lamp ballast to 
which standards are applicable under section 325 of the Act, shall 
disclose conspicuously in such printed material, in each description of 
such fluorescent lamp ballast, an encircled capital letter ``E''.
    (3) Any manufacturer, distributor, retailer or private labeler who 
prepares printed material for display or distribution at point of sale 
concerning a covered product that is a showerhead, faucet, water 
closet, or urinal shall clearly and conspicuously include in such 
printed material the product's water use, expressed in gallons and 
liters per minute (gpm/Lpm) or per cycle (gpc/Lpc) or gallons and 
liters per flush (gpf/Lpf), as specified in Sec. 305.11(e).
    (b) This section shall not apply to:
    (1) Written warranties.
    (2) Use and care manuals, installation instructions, or other 
printed material containing primarily post-purchase information for the 
purchaser.
    (3) Printed material containing only the identification of a 
covered product, pricing information and/or non-energy related 
representations concerning that product.
    (4) Any printed material distributed prior to the effective date 
listed in Sec. 305.4(e).
    27. Section 305.14 is revised to read as follows:


Sec. 305.14  Catalogs.

    (a) Any manufacturer, distributor, retailer, or private labeler who 
advertises in a catalog a covered product (except fluorescent lamp 
ballasts, showerheads, faucets, water closets or urinals) shall include 
in such catalog, on each page that lists the covered product, the 
following information required to be disclosed on the label:
    (1) The capacity of the model.
    (2) The estimated annual energy consumption for refrigerators, 
refrigerator-freezers, freezers, clothes washers, dishwashers and water 
heaters.
    (3) The energy efficiency rating for room air conditioners, central 
air conditioners, and furnaces.
    (4) The range of estimated annual energy consumption or energy 
efficiency ratings, which shall be those that are current at the 
closing date for printing or the printing deadline of the catalog.
    (b) Any manufacturer, distributor, retailer, or private labeler who 
advertises fluorescent lamp ballasts that are ``covered products,'' as 
defined in Sec. 305.2(o), and to which standards are applicable under 
section 325 of the Act, in a catalog, from which they may be purchased 
by cash, charge account or credit terms, shall disclose conspicuously 
in such catalog, in each description of such fluorescent lamp ballasts, 
a capital letter ``E'' printed within a circle.
    (c) Any manufacturer, distributor, retailer, or private labeler who 
advertises a covered product that is a showerhead, faucet, water closet 
or urinal in a catalog, from which it may be purchased, shall include 
in such catalog, on each page that lists the covered product, the 
product's water use, expressed in gallons and liters per minute (gpm/
Lpm) or per cycle (gpc/Lpc) or gallons and liters per flush (gpf/Lpf) 
as specified in Sec. 305.11(e).
    28. Section 305.16 is revised to read as follows:


Sec. 305.16  Required testing by designated laboratory.

    Upon notification by the Commission or its designated 
representative, a manufacturer of a covered product shall supply, at 
the manufacturer's expense, no more than two of each model of each 
product to a laboratory, which will be identified by the Commission or 
its designated representative in the notice, for the purpose of 
ascertaining whether the estimated annual energy consumption, the 
estimated annual operating cost, or the energy efficiency rating 
disclosed on the label or fact sheet or in an industry directory, or, 
as required in a catalog, or the representation made by the label that 
the product is in compliance with applicable standards in section 325 
of the Act, 42 U.S.C. 6295, is accurate. Such a procedure will only be 
followed after the Commission or its staff has examined the underlying 
test data provided by the manufacturer as required by Sec. 305.15(b) 
and after the manufacturer has been afforded the opportunity to 
reverify test results from which the estimated annual energy 
consumption, the estimated annual operating cost, or the energy 
efficiency rating for each basic model was derived. A representative 
designated by the Commission shall be permitted to observe any 
reverification procedures required by this part, and to inspect the 
results of such reverification. The Commission will pay the charges for 
testing by designated laboratories.


Sec. 305.18  [Removed]

    29. Section 305.18 is removed.


Sec. 305.19  [Redesignated as Sec. 305.18]

    30. Section 305.19 is redesignated as Sec. 305.18.
    31. Appendices A1 and A2 to part 305 are revised; Appendices A3 
through A8 are added; Appendix B is removed; and Appendices B1 through 
B3 are added, to read as follows:

      Appendix A1 to Part 305--Refrigerators With Automatic Defrost     
                           [Range Information]                          
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 2.5.....................                                      
2.5 to 4.4........................                                      
4.5 to 6.4........................                                      
6.5 to 8.4........................                                      
8.5 to 10.4.......................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A2 to Part 305--Refrigerators and Refrigerator-Freezers With 
                             Manual Defrost                             
                           [Range Information]                          
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 2.5.....................                                      
2.5 to 4.4........................                                      
4.5 to 6.4........................                                      
6.5 to 8.4........................                                      
8.5 to 10.4.......................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A3 to Part 305--Refrigerator-Freezers With Partial Automatic 
                                 Defrost                                
                           [Range Information]                          
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A4 to Part 305--Refrigerator-Freezers With Automatic Defrost 
      With Top-Mounted Freezer Without Through-the-Door Ice Service     
                           [Range Information]                          
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A5 to Part 305--Refrigerator-Freezers With Automatic Defrost 
     With Side-Mounted Freezer Without Through-the-Door Ice Service     
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
 refrigerated volume in cubic feet -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A6 to Part 305--Refrigerator-Freezers With Automatic Defrost 
    With Bottom-Mounted Freezer Without Through-the-Door Ice Service    
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
 refrigerated volume in cubic feet -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
 10.5 to 12.4.....................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A7 to Part 305--Refrigerator-Freezers With Automatic Defrost 
       With Top-Mounted Freezer With Through-the-Door Ice Service       
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


  Appendix A8 to Part 305--Refrigerator-Freezers With Automatic Defrost 
       With Side-Mounted Freezer With Through-the-Door Ice Service      
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
refrigerated volume in cubic feet  -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 10.5....................                                      
10.5 to 12.4......................                                      
12.5 to 14.4......................                                      
14.5 to 16.4......................                                      
16.5 to 18.4......................                                      
18.5 to 20.4......................                                      
20.5 to 22.4......................                                      
22.5 to 24.4......................                                      
24.5 to 26.4......................                                      
26.5 to 28.4......................                                      
28.5 and over.....................                                      
------------------------------------------------------------------------


      Appendix B1 to Part 305--Upright Freezers With Manual Defrost     
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
 refrigerated volume in cubic feet -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 5.5.....................                                      
5.5 to 7.4........................                                      
7.5 to 9.4........................                                      
9.5 to 11.4.......................                                      
11.5 to 13.4......................                                      
13.5 to 15.4......................                                      
15.5 to 17.4......................                                      
17.5 to 19.4......................                                      
19.5 to 21.4......................                                      
21.5 to 23.4......................                                      
23.5 to 25.4......................                                      
25.5 to 27.4......................                                      
27.5 to 29.4......................                                      
29.5 and over ....................                                      
------------------------------------------------------------------------


    Appendix B2 to Part 305--Upright Freezers With Automatic Defrost    
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total             consumption (kWh/yr.)        
 refrigerated volume in cubic feet -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 5.5.....................                                      
5.5 to 7.4........................                                      
7.5 to 9.4........................                                      
9.5 to 11.4.......................                                      
11.5 to 13.4......................                                      
13.5 to 15.4......................                                      
15.5 to 17.4......................                                      
17.5 to 19.4......................                                      
19.5 to 21.4......................                                      
21.5 to 23.4......................                                      
23.5 to 25.4......................                                      
25.5 to 27.4......................                                      
27.5 to 29.4......................                                      
29.5 and over.....................                                      
------------------------------------------------------------------------


     Appendix B3 to Part 305--Chest Freezers and All Other Freezers     
                          [Range Information]                           
------------------------------------------------------------------------
                                      Range of estimated annual energy  
    Manufacturer's rated total              consumption (kWh/yr.)       
 refrigerated volume in cubic feet -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Less than 5.5.....................                                      
5.5 to 7.4........................                                      
7.5 to 9.4........................                                      
9.5 to 11.4.......................                                      
11.5 to 13.4......................                                      
13.5 to 15.4......................                                      
15.5 to 17.4......................                                      
17.5 to 19.4......................                                      
19.5 to 21.4......................                                      
21.5 to 23.4......................                                      
23.5 to 25.4......................                                      
25.5 to 27.4......................                                      
27.5 to 29.4......................                                      
29.5 and over.....................                                      
------------------------------------------------------------------------

    32. Appendix C to part 305 is revised to read as follows:

Appendix C to Part 305--Dishwashers

Range Information

     ``Compact'' includes countertop dishwasher models with a capacity 
of fewer than eight (8) place settings.
     ``Standard'' includes portable or built-in dishwasher models with 
a capacity of eight (8) or more place settings.
    Place settings shall be in accordance with Appendix C to 10 CFR 
Part 430, Subpart B. Load patterns shall conform to the operating 
normal for the model being tested. 

                                                                        
------------------------------------------------------------------------
                                      Range of estimated annual energy  
                                           consumption (kWh/yr.)        
             Capacity              -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Compact...........................                                      
Standard..........................                                      
------------------------------------------------------------------------

    33. Appendices D1-D3 to Part 305 are revised to read as follows: 

               Appendix D1 to Part 305--Water Heater--Gas               
                          [Range Information]                           
------------------------------------------------------------------------
              Capacity                 Range of estimated annual energy 
-------------------------------------     consumption (therms/yr. and   
                                                 gallons/yr.)           
------------------------------------------------------------------------
                                         Natural gas    Propane gallons/
                                         therms/yr.            yr.      
          First hour rating          -----------------------------------
                                        Low      High     Low      High 
------------------------------------------------------------------------
Less than 21........................                                    
21 to 24............................                                    
25 to 29............................                                    
30 to 34............................                                    
35 to 40............................                                    
41 to 47............................                                    
48 to 55............................                                    
56 to 64............................                                    
65 to 74............................                                    
75 to 86............................                                    
87 to 99............................                                    
100 to 114..........................                                    
115 to 131..........................                                    
Over 131............................                                    
------------------------------------------------------------------------


             Appendix D2 to Part 305--Water Heater--Electric            
                           [Range Information]                          
------------------------------------------------------------------------
             Capacity                 Range of estimated annual energy  
-----------------------------------        consumption (kWh/yr.)        
                                   -------------------------------------
        First hour rating                  Low               High       
------------------------------------------------------------------------
Less than 21......................                                      
21 to 24..........................                                      
25 to 29..........................                                      
30 to 34..........................                                      
35 to 40..........................                                      
41 to 47..........................                                      
48 to 55..........................                                      
56 to 64..........................                                      
65 to 74..........................                                      
75 to 86..........................                                      
87 to 99..........................                                      
100 to 114........................                                      
115 to 131........................                                      
Over 131..........................                                      
------------------------------------------------------------------------


               Appendix D3 to Part 305--Water Heater--Oil               
                           [Range Information]                          
------------------------------------------------------------------------
             Capacity                 Range of estimated annual energy  
-----------------------------------      consumption (gallons/yr.)      
                                   -------------------------------------
        First hour rating                  Low               High       
------------------------------------------------------------------------
Less than 65......................                                      
65 to 74..........................                                      
75 to 86..........................                                      
87 to 99..........................                                      
100 to 114........................                                      
115 to 131........................                                      
Over 131..........................                                      
------------------------------------------------------------------------

    34. Appendix E to Part 305 is revised to read as follows: 

              Appendix E to Part 305--Room Air Conditioners             
                           [Range Information]                          
------------------------------------------------------------------------
                                      Range of energy efficiency ratios 
   Manufacturer's rated cooling                    (EERs)               
      capacity in Btu's/hr.        -------------------------------------
                                           Low               High       
------------------------------------------------------------------------
Without Reverse Cycle and with                                          
 Louvered Sides:                                                        
  Less than 6,000 Btu.............                                      
  6,000 to 7,999 Btu..............                                      
  8,000 to 13,999 Btu.............                                      
  14,000 to 19,999 Btu............                                      
  20,000 and more Btu.............                                      
Without Reverse Cycle and without                                       
 Louvered Sides:                                                        
  Less than 6,000 Btu.............                                      
  6,000 to 7,999 Btu..............                                      
  8,000 to 13,999 Btu.............                                      
  14,000 to 19,999 Btu............                                      
  20,000 and more Btu.............                                      
With Reverse Cycle and with                                             
 Louvered Sides...................                                      
With Reverse Cycle, without                                             
 Louvered Sides...................                                      
------------------------------------------------------------------------

    35. Appendix F to part 305 is revised to read as follows:

Appendix F to Part 305--Clothes Washers

Range Information

     ``Compact'' includes all household clothes washers with a tub 
capacity of less than 1.6 cu. ft. or 13 gallons of water.
     ``Standard'' includes all household clothes washers with a tub 
capacity of 1.6 cu. ft. or 13 gallons of water or more. 

                                                                        
------------------------------------------------------------------------
                                      Range of estimated annual energy  
                                           consumption (kWh/yr.)        
             Capacity              -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
Compact:                                                                
  Top Loading.....................                                      
  Front Loading...................                                      
Standard:                                                               
  Top Loading.....................                                      
  Front Loading...................                                      
------------------------------------------------------------------------

    36. Appendices G1 through G5 of Part 305 are revised, and 
Appendices G6 through G8 are added to read as follows: 

                   Appendix to Part 305--Furnaces--Gas                  
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating            efficiencies (AFUE's)        
      capacities (Btu's/hr.)       -------------------------------------
                                           Low               High       
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid:

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
Manufacturers rated heat output of    of model to be   to be used on the
  model to be labeled (Btu's per      labeled (1,000   grid (1,000 Btu's
               hour)                 Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                                150, 160
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

               Appendix G2 to Part 305--Furnaces--Electric              
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Ranges of annual fuel utilization 
   Manufacturer's rated heating             efficiencies (AFUE's)       
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000   grid (1,000 Btu's
               hour)                 Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                                150, 160
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

                 Appendix G3 to Part 305--Furnaces--Oil                 
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating            efficiencies (AFUE's)        
      capacities (Btu's/hr.)       -------------------------------------
                                           Low               High       
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                            below)      
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                           [Heat Loss Table]                            
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000   grid (1,000 Btu's
               hour)                 Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                                150, 160
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

              Appendix G4 to Part 305--Mobile Home Furnaces             
                         1. [Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating            efficiencies (AFUE's)        
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4........................................                   
6........................................                   
8........................................                   
10.......................................                   
12.......................................                   
14.......................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10, 20, 30,      
  40, 50, 60.                       
b. Cost per gallon (oil)--76, 79,               
  82, 85, 88, 91,       
  94, 97, $1.00.                                
c. Cost per gallon (propane)--35, 40,           
  45, 50, 55, 60.       

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000   grid (1,000 Btu's
              hour)                  Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                               150, 160 
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

          Appendix G5 to Part 305--Boilers--Gas (Except Steam)          
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating             efficiencies (AFUE's)       
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid:

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000   grid (1,000 Btu's
               hour)                 Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                                150, 160
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

              Appendix G6 to Part 305--Boilers--Gas (Steam)             
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating             efficiencies (AFUE's)       
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, cents, 97 cents, $1.00.                    
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000   grid (1,000 Btu's
               hour)                 Btu's per hour)       per hour)    
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                                150, 160
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

                  Appendix G7 to Part 305--Boilers--Oil                 
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating             efficiencies (AFUE's)       
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------

      

------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000      grid (1,000)  
               hour)                 Btu's per hour)    Btu's per hour) 
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                               150, 160 
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.

               Appendix G8 to Part 305--Boilers--Electric               
                         [1. Range Information]                         
------------------------------------------------------------------------
                                      Range of annual fuel utilization  
   Manufacturer's rated heating             efficiencies (AFUE's)       
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High      
------------------------------------------------------------------------
All Capacities....................                                      
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                        Btu heat loss of
              Cost per kilowatt hour\1\                 home (see chart 
                                                             below)     
------------------------------------------------------------------------
4 cents..............................................                   
6 cents..............................................                   
8 cents..............................................                   
10 cents.............................................                   
12 cents.............................................                   
14 cents.............................................                   
------------------------------------------------------------------------
\1\For charts on natural gas, oil and propane gas, substitute the       
  following cost figures:                                               
a. Cost per therm--10 cents, 20 cents, 30 cents, 40 cents, 50 cents, 60 
  cents.                                                                
b. Cost per gallon (oil)--76 cents, 79 cents, 82 cents, 85 cents, 88    
  cents, 91 cents, 94 cents, 97 cents, $1.00.                           
c. Cost per gallon (propane)--35 cents, 40 cents, 45 cents, 50 cents, 55
  cents, 60 cents.                                                      

    The following table shows the heat loss values (in thousand Btu's/
hr.) to be used in the cost grid: 

                                                                        
                            [Heat Loss Table]                           
------------------------------------------------------------------------
                                     Design heat loss   Heat loss values
 Manufacturers' rated heat output     of model to be   to be used on the
 of model to be labeled (Btu's per    labeled (1,000      grid (1,000)  
               hour)                 Btu's per hour)    Btu's per hour) 
------------------------------------------------------------------------
5,000 to 10,000...................                  5                  5
11,000 to 16,000..................                 10              5, 10
17,000 to 25,000..................                 15             10, 15
26,000 to 42,000..................                 20         15, 20, 25
43,000 to 59,000..................                 30     25, 30, 35, 40
60,000 to 76,000..................                 40     35, 40, 45, 50
77,000 to 93,000..................                 50     40, 45, 50, 60
94,000 to 110,000.................                 60     50, 60, 70, 80
111,000 to 127,000................                 70     60, 70, 80, 90
128,000 to 144,000................                 80    70, 80, 90, 100
145,000 to 161,000................                 90  80, 90, 100, 110,
                                                                     120
162,000 to 178,000................                100      90, 100, 110,
                                                                120, 130
179,000 to 195,000................                110     100, 110, 120,
                                                                130, 140
196,000 and over..................                130     120, 130, 140,
                                                               150, 160 
------------------------------------------------------------------------

    Beside each cost in the cost grid, and below the appropriate heat 
loss value taken from the heat loss table, place the cost estimate for 
the model being labeled using the table costs in place of the national 
average cost and using the heat loss values in place of the design heat 
loss used in the table with the national average cost.
    37. Page 1 of the Sample Fact Sheet in Appendix H to Part 305 is 
revised as follows:

Appendix H to Part 305--Cooling Performance and Cost for Central Air 
Conditioners

* * * * *
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    38. Page 1 of the Sample Fact Sheet in Appendix I to Part 305 (down 
to ``NATIONAL AVERAGE ANNUAL HEATING COST TABLE ($ PER YEAR)'') is 
revised as follows:

Appendix I to Part 305--Heating Performance and Cost for Central Air 
Conditioners

* * * * *
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    39. Section 8. of Appendix J to Part 305 is revised to read as 
follows:

Appendix J Part 305--Suggested Data Reporting Format

    8. Estimated Annual Energy Consumption or Energy Efficiency Rating
----------------------------------------------------------------------
* * * * *
    40. Appendix K to Part 305 is revised as follows:

Appendix K to Part 305--Sample Labels

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    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 94-15792 Filed 6-30-94; 8:45 am]
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