[Federal Register Volume 60, Number 33 (Friday, February 17, 1995)]
[Rules and Regulations]
[Pages 9295-9296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4010]



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FEDERAL TRADE COMMISSION

16 CFR Part 305


Appliance Labeling Rule

AGENCY: Federal Trade Commission.

ACTION: Final rule revision.

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SUMMARY: The Federal Trade Commission's Appliance Labeling Rule 
requires that Table 1, in Sec. 305.9, which sets forth the 
representative average unit energy costs for five residential energy 
sources, be revised periodically on the basis of updated information 
provided by the Department of Energy (``DOE'').
    This document revises the table to incorporate the latest figures 
for average unit energy costs as published by DOE in the Federal 
Register on January 5, 1995.\1\

    \1\60 FR 1773.
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DATES: The revisions to Sec. 305.9(a) and Table 1 are effective 
February 17, 1995. The mandatory dates for using these revised DOE cost 
figures in connection with the Appliance Labeling Rule are detailed in 
the Supplementary Information Section, below.

FOR FURTHER INFORMATION CONTACT:
James Mills, Attorney, 202-326-3035, Division of Enforcement, Federal 
Trade Commission, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: On November 19, 1979, the Federal Trade 
Commission issued a final rule in response to a directive in section 
324 of the Energy Policy and Conservation Act (``EPCA''), 42 U.S.C. 
6201.\2\ The rule requires the disclosure of energy efficiency, 
consumption, or cost information on labels and in retail sales catalogs 
for eight categories of appliances, and mandates that the energy costs, 
consumption, or efficiency ratings be based on standardized test 
procedures developed by DOE. The cost information obtained by following 
the test procedures is derived by using the representative average unit 
energy costs provided by DOE. Table 1 in Sec. 305.9(a) of the rule sets 
forth the representative average unit energy costs to be used for all 
cost-related requirements of the rule. As stated in Sec. 305.9(b), the 
Table is intended to be revised periodically on the basis of updated 
information provided by DOE.

    \2\44 FR 66466. Since its promulgation, the rule has been 
amended four times to include new product categories--central air 
conditioners (52 FR 46888, Dec. 10, 1987), fluorescent lamp ballasts 
(54 FR 1182, Jan. 12, 1989), certain plumbing products (58 FR 54955, 
Oct. 25, 1993), and certain lamp products (59 FR 25176, May 13, 
1994). Obligations under the rule concerning fluorescent lamp 
ballasts, lighting products, and plumbing products are not affected 
by the cost figures in this notice.
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    On January 5, 1995, DOE published the most recent figures for 
representative average unit energy costs. Accordingly, Table 1 is 
revised to reflect these latest cost figures as set forth below.
    The dates when use of the figures in revised Table 1 becomes 
mandatory in calculating cost disclosures for use in labeling and 
catalog sales of products covered by the Commission's rule and/or EPCA 
are as follows:

For 1995 Submissions of Data Under Section 305.8 of the 
Commission's Rule

    Manufacturers no longer need to use the DOE cost figures in 
complying with the data submission requirements of section 305.8 of the 
rule. Pursuant to recent amendments to the rule, which were published 
on July 1, 1994\3\ (with extended compliance dates published on 
December 8, 1994),\4\ the estimated annual operating cost is no longer 
the primary energy usage descriptor for refrigerators, refrigerator-
freezers, freezers, clothes washers, dishwashers, and water heaters. 
Under the amendments, the energy usage and the ranges of comparability 
for those product categories must be expressed in terms of estimated 
annual energy consumption (kilowatt-hour use per year for electricity, 
therms per year for natural gas, or gallons per year for propane and 
oil). Thus, the 1995 (and all subsequent) data submissions under 
section 305.8 for these product categories (which are to enable the 
Commission to publish ranges of comparability) must be made in terms of 
estimated annual energy consumption, for the determination of which the 
DOE cost figures are unnecessary. The 1995 (and all subsequent) 
submissions also must be made in terms of the new product sub-
categories created by the above-mentioned amendments. The energy 
efficiency energy usage descriptors for the other products covered by 
the rule (room air conditioners, furnaces, boilers, central air 
conditioners, heat pumps, and pool heaters) are unaffected by the 
amendments mentioned above. The annual data submission requirements for 
those products, which are not based on the DOE cost figures, will 
continue to be in terms of energy efficiency (although submissions for 
room air conditioners, furnaces, and boilers must be made in terms of 
the new product sub-categories created by the amendments). For 
convenience, the annual dates for data submissions are repeated here:

    \3\59 FR 34014.
    \4\59 FR 63688.

Fluorescent lamp ballasts...................................  Mar. 1.   
Clothes washers.............................................  Mar. 1.   
Water heaters...............................................  May 1.    
Furnances...................................................  May 1.    
Room air conditioners.......................................  May 1.    
Pool Heaters................................................  May 1.    
Dishwashers.................................................  June 1.   
Central air conditioners....................................  July 1.   
Heat pumps..................................................  July 1.   
Refrigerators...............................................  Aug. 1.   
Refrigerator-freezers.......................................  Aug. 1.   
Freezers....................................................  Aug. 1.   
                                                                        

For Labeling and Catalog Sales of Products Covered by the Commission's 
Rule

    The July 1, 1994, amendments will require that labels for 
refrigerators, refrigerator-freezers, freezers, clothes washers, 
dishwashers, water heaters, and room air conditioners contain a 
secondary energy usage disclosure in terms of an estimated annual 
operating cost (labels for clothes washers and dishwashers will show 
two such secondary disclosures--one based on operation with water 
heated by natural gas, and one on operation with water heated by 
electricity). These secondary [[Page 9296]] estimated annual operating 
cost disclosures must be based on the 1995 DOE cost figures published 
in this notice. The labels must also disclose, under the secondary 
estimated annual operating cost disclosure, the fact that the estimated 
annual operating cost is based on the appropriate 1995 DOE energy cost 
figure. Manufacturers of the above-mentioned products must make these 
disclosures on the labels required by the amendments and in catalogs 
beginning ninety days after the Commission publishes new energy 
consumption ranges of comparability based on the 1995 submissions 
required by Sec. 305.8. They must continue to use the 1995 DOE cost 
figures in the manner just described until the Commission publishes new 
ranges of comparability based on future annual submissions of estimated 
annual energy consumption data. At that time, these manufacturers must 
use the then-current DOE energy cost figures when they prepare new 
labels in response to the new energy consumption ranges of 
comparability. When such new ranges are published, the effective date 
for labeling new products will be ninety days after publication of the 
ranges in the Federal Register. As in the past, products that have been 
properly labeled prior to the effective date of any range modification 
need not be relabeled.

For Energy Cost Representations Respecting Products Covered by EPCA but 
Not by the Commission's Rule

    Manufacturers of products covered by section 323(c) of EPCA, but 
not by the Appliance Labeling Rule (clothes dryers, television sets, 
kitchen ranges and ovens, and space heaters) must use the 1995 
representative average unit costs for energy in all operating cost 
representations beginning May 18, 1995.

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.

PART 305--[AMENDED]

    Accordingly, 16 CFR Part 305 is amended as follows:
    1. The authority citation for part 305 continues to read as 
follows:

    Authority: 42 U.S.C. 6294.

    2. Section 305.9(a) is revised to read as follows:


Sec. 305.9  Representative average unit energy costs.

    (a) Table 1, below, contains the representative unit energy costs 
to be utilized for all requirements of this part.

        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (1995)        
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                                                                                                     Dollars per
             Type of energy                     In common terms           As required by DOE test      million  
                                                                                 procedure              Btu\1\  
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Electricity............................  8.67 cents/kWh23............  $0.0867/kWh.................       $25.41
Natural Gas............................  63.0 cents/therm4 or $6.49/   0.00000630/Btu..............         6.30
                                          MCF56.                                                                
No. 2 heating oil......................  1.008/gallon7...............  0.00000727/Btu..............         7.27
Propane................................  0.985/gallon8...............  0.00001079/Btu..............        10.79
Kerosene...............................  1.094/gallon9...............  0.00000810/Btu..............         8.10
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\1\Btu stands for British thermal unit.                                                                         
\2\kWh stands for kilowatt hour.                                                                                
\3\1 kWh=3,412 Btu.                                                                                             
\4\1 therm=100,000 Btu. Natural gas prices include taxes.                                                       
\5\MCF stands for 1,000 cubic feet.                                                                             
\6\For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,030 Btu.          
\7\For the purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.      
\8\For the purposes of this table, 1 gallon of liquid propane has an energy equivalance of 91,333 Btu.          
\9\For the purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.               

 * * * * *
Donald S. Clark,
Secretary.
[FR Doc. 95-4010 Filed 2-16-95; 8:45 am]
BILLING CODE 6750-01-M