[Federal Register Volume 63, Number 167 (Friday, August 28, 1998)]
[Rules and Regulations]
[Pages 45941-45943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23150]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``Commission'') amends its 
Appliance Labeling Rule by publishing new ranges of comparability to be 
used on required labels for instantaneous water heaters. The Commission 
also announces that the current ranges of comparability for room air 
conditioners, storage-type water heaters, heat pump water heaters, pool 
heaters, furnaces, boilers, and dishwashers will remain in effect until 
further notice.

EFFECTIVE DATE: November 27, 1998.

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

SUPPLEMENTARY INFORMATION: The Appliance Labeling Rule (``Rule'') was 
issued by the Commission in 1979 (44 FR 66466 (Nov. 19, 1979)) in 
response to a directive in the Energy Policy and Conservation Act of 
1975.\1\ 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 (59 FR 49556 (Sept. 28, 
1994)), and contains requirements that pertain to fluorescent lamp 
ballasts (54 FR 28031 (July 5, 1989)), certain plumbing products (58 FR 
54955 (Oct. 25, 1993)), and certain lighting products (59 FR 25176 (May 
13, 1994)).
---------------------------------------------------------------------------

    \1\ 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.
---------------------------------------------------------------------------

    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 fact sheets, 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

[[Page 45942]]

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) \2\ 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 changed by more than 15%. Otherwise, the 
Commission publishes a statement that the prior ranges remain in effect 
for the next year.
---------------------------------------------------------------------------

    \2\ 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.
---------------------------------------------------------------------------

    The annual submissions of data for room air conditioners, water 
heaters (including storage-type, instantaneous, and heat pump water 
heaters), furnaces, boilers, pool heaters, and dishwashers have been 
made and have been analyzed by the Commission.
    The ranges of comparability for room air conditioners, storage-type 
water heaters, heat pump water heaters, furnaces, boilers, dishwashers, 
and pool heaters have not changed by more than 15% from the current 
ranges for these products. Therefore, the current ranges for these 
products will remain in effect until further notice.\3\ This means that 
manufacturers of storage-type water heaters, furnaces, and boilers must 
continue to use the ranges that were published on September 23, 1994, 
and that manufacturers of storage-type water heaters must continue to 
base the disclosures of estimated annual operating cost required at the 
bottom of Energy Guides for these products on the 1994 Representative 
Average Unit Costs of Energy for electricity (8.41 cents per kilo Watt-
hour), natural gas (60.4 cents per therm), propane (98 cents per 
gallon), and/or No. 2 heating oil ($1.05 per gallon) that were 
published by DOE on December 29, 1993 (58 FR 68901), and by the 
Commission on February 8, 1994 (59 FR 5699). Manufacturers of heat pump 
water heaters and pool heaters must continue to use the ranges that 
were published on August 21, 1995. Manufacturers of room air 
conditioners must continue to use the corrected ranges for room air 
conditioners that were published on November 13, 1995. Manufacturers of 
heat pump water heaters, pool heaters, and room air conditioners must 
continue to base the disclosures of estimated annual operating cost 
required at the bottom of Energy Guides for these products on the 1995 
Representative average Unit Costs of Energy for electricity (8.67 cents 
per kilo Watt-hour), natural gas (63 cents per therm), propane (98.5 
cents per gallon), and/or No. 2 heating oil ($1.008 per gallon) that 
were published by DOE on January 5, 1995 (60 FR 1773), and by the 
Commission on February 17, 1995 (60 FR 9295). Manufacturers of 
dishwashers must continue to use the ranges that were published on 
August 25, 1997, and must continue to base the disclosures of estimated 
annual operating cost required at the bottom of Energy Guides for these 
product on the 1997 Representative Average Unit Costs of Energy for 
electricity (8.31 cents per kilo Watt-hour), natural gas (61.2 cents 
per therm), propane (98 cents per gallon), and/or No. 2 heating oil (99 
cents per gallon) that were published by DOE on November 18, 1996 (61 
FR 58679), and the Commission on February 5, 1997 (62 FR 5316).
---------------------------------------------------------------------------

    \3\ The current ranges for storage-type water heaters, furnaces, 
and boilers were published on September 23, 1994 (59 FR 48796). The 
current ranges for 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). The current ranges for dishwashers were published on August 
25, 1997 (62 FR 44890).
---------------------------------------------------------------------------

    The data submission for instantaneous water heaters has resulted in 
new ranges of comparability figures for these products, which will 
supersede the current ranges.\4\
---------------------------------------------------------------------------

    \4\ The current ranges for instantaneous water heaters were 
published on September 16, 1996 (61 FR 48620). 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.
---------------------------------------------------------------------------

    In consideration of the foregoing, the Commission revises Appendix 
D4 of Part 305 by publishing the following ranges of comparability for 
use in required disclosures (including labeling) for instantaneous 
water heaters manufactured on or after November 27, 1998. In addition, 
as of this effective date, manufacturers of instantaneous water heaters 
must base the disclosures of estimated annual operating cost required 
at the bottom of Energy Guides for instantaneous water heaters on the 
1998 Representative average Unit Costs of Energy for electricity (8.42 
cents per kilo Watt-hour), natural gas (61.9 cents per therm), propane 
(95 cents per gallon), and/or No. 2 heating oil (95 cents per gallon) 
that were published by DOE on December 8, 1997 (62 FR 64574), and by 
the Commission on December 29, 1997 (62 FR 67560).

List of Subjects in 16 CFR part 305

    Advertising, Energy conservation, Household appliances, 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 D4 to Part 305 is revised to read as follows:

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

    Range Information:

----------------------------------------------------------------------------------------------------------------
                        Capacity                           Range of estimated annual energy consumption (therms/
---------------------------------------------------------                  yr. and gallons/yr.)                 
                                                         -------------------------------------------------------
                                                            Natural gas therms/yr.        Propane gallons/yr.   
                    First hour rating                    -------------------------------------------------------
                                                               Low          High           Low          High    
----------------------------------------------------------------------------------------------------------------
Less than 21............................................          (*)           (*)           (*)           (*) 
21 to 24................................................          (*)           (*)           (*)           (*) 
25 to 29................................................          (*)           (*)           (*)           (*) 

[[Page 45943]]

                                                                                                                
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..............................................          230           234           252           256 
115 to 131..............................................          (*)           (*)           (*)           (*) 
Over 131................................................          161           238           184           260 
----------------------------------------------------------------------------------------------------------------
*No data submitted.                                                                                             

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-23150 Filed 8-27-98; 8:45 am]
BILLING CODE 6750-01-M