[Federal Register Volume 61, Number 180 (Monday, September 16, 1996)]
[Rules and Regulations]
[Pages 48620-48623]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23401]


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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'') amends its 
Appliance Labeling Rule by publishing new ranges of comparability to be 
used on required labels for dishwashers, instantaneous water heaters, 
and central air conditioners and heat pumps sold as single package 
units. The Commission also announces that the current ranges of 
comparability for storage-type water heaters, heat pump water heaters, 
pool heaters, room air conditioners, furnaces, boilers, and

[[Page 48621]]

split-system central air conditioners, and heat pumps will remain in 
effect until further notice. Finally, the Commission amends the 
portions of Appendices H (Cooling Performance and Cost for Central Air 
Conditioners) and I (Heating Performance and Cost for Central Air 
Conditioners) to Part 305 that contain cost calculation formulas. These 
amendments change the figures in the formulas to reflect the current 
Representative Average Unit Cost of Electricity that was published in 
January by the Department of Energy (``DOE'').

EFFECTIVE DATE: December 16, 1996.

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

SUPPLEMENTARY INFORMATION: The Appliance Labeling Rule (``Rule'') was 
issued by the Commission in 1979 \1\ in response to a directive in the 
Energy Policy and Conservation Act of 1975.\2\ The Rule covers eight 
categories of major household appliances: refrigerators and 
refrigerator-freezers, freezers, dishwashers, clothes washers, water 
heaters (this category includes storage-type water heaters, 
instantaneous water heaters, and heat pump water heaters), room air 
conditioners, furnaces (this category includes boilers), and central 
air conditioners (this category includes heat pumps). The Rule also 
covers pool heaters \3\ and contains requirements that pertain to 
fluorescent lamp ballasts,\4\ certain plumbing products,\5\ and certain 
lighting products.\6\
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    \1\ 44 FR 66466 (Nov. 19, 1979).
    \2\ 42 U.S.C. 6294. The statute also requires DOE to develop 
test procedures that measure how much energy the appliances use, and 
to determine the representative average cost a consumer pays for the 
different types of energy available.
    \3\ 59 FR 49556 (Sept. 28, 1994).
    \4\ 54 FR 28031 (July 5, 1989).
    \5\ 58 FR 54955 (Oct. 25, 1993).
    \6\ 59 FR 25176 (May 13, 1994, eff. May 15, 1995).
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    The Rule requires manufacturers of all covered appliances and pool 
heaters to disclose specific energy consumption or efficiency 
information (derived from the DOE test procedures) at the point of sale 
in the form of an ``EnergyGuide'' label and in catalogs. It also 
requires manufacturers of furnaces, central air conditioners, and heat 
pumps either to provide fact sheets showing additional cost 
information, or to be listed in an industry directory showing the cost 
information for their products. The Rule requires that manufacturers 
include, on labels and factsheets, an energy consumption or efficiency 
figure and a ``range of comparability.'' This range shows the highest 
and lowest energy consumption or efficiencies for all comparable 
appliance models so consumers can compare the energy consumption or 
efficiency of other models (perhaps competing brands) similar to the 
labeled model. The Rule requires that manufacturers also include, on 
labels for some products, a secondary energy usage disclosure in the 
form of an estimated annual operating cost based on a specified DOE 
national average cost for the fuel the appliance uses.
    Section 305.8(b) of the Rule requires manufacturers, after filing 
an initial report, to report annually (by specified dates for each 
product type) \7\ the estimated annual energy consumption or energy 
efficiency ratings for the appliances derived from tests performed 
pursuant to the DOE test procedures. Because manufacturers regularly 
add new models to their lines, improve existing models, and drop 
others, the data base from which the ranges of comparability are 
calculated is constantly changing. Under Section 305.10 of the Rule, to 
keep the required information on labels consistent with these changes, 
the Commission publishes new ranges (but not more often than annually) 
if an analysis of the new information indicates that the upper or lower 
limits of the ranges have changes by more than 15%. Otherwise, the 
Commission publishes a statement that the prior ranges remain in effect 
for the next year.
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    \7\ Reports for room air conditioners, water heaters (storage-
type, instantaneous, and heat pump-type), furnaces, boilers, and 
pool heaters are due May 1; reports for dishwashers are due June 1; 
reports for central air conditioners and heat pumps are due July 1.
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    The annual submissions of data for dishwashers, room air 
conditioners, central air conditioners and heat pumps (including single 
package units and split systems), water heaters (including storage-
type, instantaneous, and heat pump water heaters), furnaces, boilers, 
and pool heaters have been made and have been analyzed by the 
Commission.
    The ranges of comparability for room air conditioners, split system 
central air conditioners and heat pumps, storage-type water heaters, 
heat pump water heaters, furnaces, boilers and pool heaters have not 
changed by more than 15% from the current ranges for these products. 
Therefore, these ranges will remain in effect until further notice.\8\
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    \8\ The current ranges of comparability for central air 
conditioners and heat pumps were published on August 5, 1994 (59 FR 
39951). The current ranges for storage-type water heaters furnaces 
and boilers were published on September. 23, 1994 (59 FR 48796). The 
current ranges for instantaneous water heaters , heat pump water 
heaters, pool heaters, and room air conditioners (originally) were 
published on August 21, 1995 (60 FR 43367). A corrected version of 
the ranges for room air conditioners was published on November 13, 
1995 (60 FR 56945, at 56949).
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    The data submissions for dishwashers, instantaneous water heaters, 
and central air conditioners and heat pumps that are sold as single 
package units have resulted in new ranges of comparability figures for 
these products, which will supersede the current ranges.\9\
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    \9\ The current ranges for dishwashers and instantaneous water 
heaters were published on August 21, 1995 (60 FR 43367). Because the 
Commission has never received any submissions of data for oil-fired 
instantaneous water heaters, the ranges for these products show ``no 
data submitted'' for all size categories. The Commission will not, 
therefore, amend the ranges for oil-fired instantaneous water 
heaters because they have not changed. The current ranges for 
central air conditioners and heat pumps sold as single package units 
were published on August 5, 1994 (59 FR 39951).
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    The Commission also is amending the cost calculation formulas 
appearing in section 2 of Appendices H and I to Part 305. These 
sections contain heating and cooling performance cost information for 
central air conditioners and heat pumps. Manufacturers must provide the 
formulas on fact sheets and in directories so consumers can calculate 
their own costs of operation for the central air conditioners and heat 
pumps that they are considering purchasing. This amendment changes the 
figures in the formulas to reflect the current Representative Average 
Unit Cost of Electricity--8.6 cents per kilowatt-hour--that was 
published on January 19, 1996, by DOE \10\ and by the Commission on 
February 14, 1996.\11\
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    \10\ 61 FR 1366. This figure, along with national average cost 
figures for natural gas, propane, heating oil and kerosene, is 
published annually by DOE for the industry's use in calculating, 
among other figures, the cost figures required by the Commission's 
Rule.
    \11\ 61 FR 5679.
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    In consideration of the foregoing, the Commission revises Appendix 
C, Appendix D4, Appendix H, and Appendix I of Part 305 by publishing 
the following ranges of comparability for use in required disclosures 
(including labeling) for dishwashers, instantaneous water heaters, and 
central air conditioners and heat pumps sold as single package units 
manufactured on or after December 16, 1996. The Commission also amends 
the cost calculation formulas in Appendices H and I of Part 305 so they 
will include the 1996 Representative Average Unit Cost for electricity. 
In addition, as of this effective date, manufacturers must base the 
disclosures of estimated annual operating cost required at the bottom 
of

[[Page 48622]]

EnergyGuides for dishwashers and instantaneous water heaters on the 
1996 Representative Average Unit Costs of Energy for electricity (8.6 
cents per kilowatt-hour), natural gas (62.6 cents per therm), propane 
(90 cents per gallon), and/or heating oil (92 cents per gallon) that 
were published by DOE on January 19, 1996,\12\ and by the Commission on 
February 14, 1996.\13\
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    \12\ 61 FR 1366.
    \13\ 61 FR 5679.
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List of Subjects in 16 CFR Part 305

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

    Accordingly, 16 CFR Part 305 is amended as follows:

PART 305--[AMENDED]

    1. The authority citation for Part 305 continues to read as 
follows:

    Authority: 42 U.S.C. 6294.

    2. 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/
                      Capacity                               yr.)       
                                                     -------------------
                                                         Low      High  
------------------------------------------------------------------------
Compact.............................................       302       302
Standard............................................       451       699
------------------------------------------------------------------------

    3. Appendix D4 to Part 305 is revised to read as follows:

Appendix D4 to Part 305--Water Heaters--Instantaneous--Gas

Range Information

----------------------------------------------------------------------------------------------------------------
                                                                 Range of estimated annual energy consumption   
                                                                         (therms/yr. and gallons/yr.)           
                                                             ---------------------------------------------------
                          Capacity                             Natural gas therms/yr.      Propane gallons/yr.  
                                                             ---------------------------------------------------
                                                                  Low          High         Low          High   
----------------------------------------------------------------------------------------------------------------
First hour rating:                                                                                              
    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................................................          411          411          451          451
    100 to 114..............................................          230          240          230          256
    115 to 131..............................................          (*)          (*)          (*)          (*)
    Over 131................................................          237          422          238          464
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* No data submitted.                                                                                            

    4. Section 1 of appendix H to Part 305 is revised to read as 
follows:

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

    1. Range Information:

------------------------------------------------------------------------
             Single package units                    Range of SEER's    
------------------------------------------------------------------------
 Manufacturer's rated cooling capacity (Btu's/                          
                     hr.)                           Low          High   
------------------------------------------------------------------------
Central Air Conditioners (Cooling Only): All                            
 capacities...................................         9.70        16.05
Heat Pumps (Cooling Function): All capacities.         9.70        15.60
------------------------------------------------------------------------


                                                                        
              Split system units                     Range of SEER's    
------------------------------------------------------------------------
 Manufacturer's rated cooling capacity (Btu's/                          
                     hr.)                           Low          High   
Central Air Conditioners (Cooling Only): All                            
 capacities...................................        10.00        17.00
Heat Pumps (Cooling Function): All capacities.        10.00        16.40

* * * * *
    5. In section 2 of Appendix H of Part 305, the text and formulas 
are amended by removing the figure ``8.67 cents'' wherever it appears 
and by adding, in its place, the figure ``8.6 cents''. In addition, the 
text and formulas are amended by removing the figure ``13.01 cents'' 
wherever it appears and by adding, in its place, the figure 
``12.90 cents''.
    6. Section 1 of appendix I to Part 305 is revised to read as 
follows:

[[Page 48623]]

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

    1. Range Information:

------------------------------------------------------------------------
             Single package units                    Range of HSPF's    
------------------------------------------------------------------------
 Manufacturer's rated heating capacity (Btu's/                          
                     hr.)                           Low          High   
------------------------------------------------------------------------
Heat Pumps (Heating Function): All capacities.         6.60         8.20
------------------------------------------------------------------------


                                                                        
              Split system units                     Range of HSPF's    
------------------------------------------------------------------------
 Manufacturer's rated heating capacity (Btu's/                          
                     hr.)                           Low          High   
Heat Pumps (Heating Function): All capacities.         6.80        10.20
The HSPF shall be the Region IV value based on the appropriate average  
  design heat loss from the table below.                                

* * * * *
    7. In section 2 of Appendix I of Part 305, the text and formulas 
are amended by removing the figure ``8.67 cents'' wherever it appears 
and by adding, in its place, the figure ``8.6 cents''. In addition, the 
text and formulas are amended by removing the figure ``13.01 cents'' 
wherever it appears and by adding, in its place, the figure 
``12.90 cents''.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 96-23401 Filed 9-13-96; 8:45 am]
BILLING CODE 6750-01-M