[Federal Register Volume 64, Number 31 (Wednesday, February 17, 1999)]
[Rules and Regulations]
[Pages 7783-7785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3801]


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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 revision.

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SUMMARY: The Federal Trade Commission (``Commission'') revises Table 1 
in Sec. 305.9 of the Commission's Appliance Labeling Rule (``the 
Rule''), to incorporate the latest figures for average unit energy 
costs as published by the Department of Energy (``DOE'') in the Federal 
Register on January 5, 1999. Table I sets forth the representative 
average unit energy costs for five residential energy sources, which 
the Commission revises periodically on the basis of updated information 
provided by DOE.

DATES: The revisions to Sec. 305.9(a) are effective February 17, 1999. 
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.\1\ 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 Rules 
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 to be revised periodically on the basis of updated 
information provided by DOE.
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    \1\ 44 FR 66466. Since its promulgation, the rule has been 
amended five 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), certain lamp products (59 FR 25176, May 13, 1994), 
and pool heaters and certain residential water heater types (59 FR 
49556, Sept. 28, 1994). Obligations under the rule concerning 
fluorescent lamp ballasts, lighting products, plumbing products and 
pool heaters are not affected by the cost figures in this notice.
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    On January 5, 1999, DOE published the most recent figures for 
representative average unit energy costs.\2\ Accordingly, Table 1 is 
revised to reflect these latest cost figures as set forth below.
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    \2\ 64 FR 487.
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    How and when industry members must use (or not use) revised Table 1 
to calculate cost disclosures for labeling and catalog sales is 
explained in detail in the paragraphs below. In sum:
     Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, water heaters, and room air 
conditioners are not permitted to use the DOE cost figures published 
today to calculate the secondary operating cost figures on labels for 
their products until the Commission publishes new ranges of 
comparability for those products.
     Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, and water heaters have no need 
for the DOE cost figures for making data submissions under Sec. 305.8. 
The energy use information they must submit and use as primary energy 
use descriptors on labels for these products is now in terms of energy 
consumption, not operating cost.
     Manufacturers of products covered by the Rule must use the 
1999 DOE cost figures published today to calculate operating cost 
representations in catalogs, point of sale literature and other point 
of sale representations, and advertisements that are drafted and 
printed after May 18, 1999.
     Beginning May 18, 1999, manufacturers of clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters must begin 
using the 1999 representative average unit costs for energy in all 
operating cost representations.

For Labeling of Products Covered by the Commission's Rule \3\

    Manufacturers of covered products are not permitted to use the 
National Average Representative Unit Costs published today on labels 
for their products until the Commission publishes new ranges of 
comparability for those products.
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    \3\ Sections 305.11(a)(5)(i)(H)(2) and (3) of the Rule (16 CFR 
305.11(a)(5)(i)(H)(2) and (3)) 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 operation with water heated by 
electricity). The labels also must disclose, below this secondary 
estimated annual operating cost, the fact that the estimated annual 
operating cost is based on the appropriate DOE energy cost figure, 
and must identify the year in which the cost figure was published.
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    Manufactuers of storage-type water heaters must continue to use the 
1994 DOE cost figures (8.41 cents per kilo Watt-hour for electricity, 
60.4 cents per therm for natural gas, $1.054 per gallon for No. 2 
heating oil, and 98.3 cents per gallon for propane) in determining the 
operating cost disclosures on the labels on their products. This is 
because the 1994 DOE cost figures were in effect when the 1994 ranges 
of comparability for storage-type water heaters were published, and 
those 1994 ranges are still in effect for those products.\4\ 
Manufacturers of storage-type water heaters must continue to use the 
1994 cost figures to calculate the estimated annual operating cost 
figures on their labels until the Commission publishes new ranges of 
comparability for storage-type water heaters.
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    \4\ The 1994 DOE cost figures were published by DOE on December 
29, 1993 (58 FR 68901), and by the Commission on February 8, 1994 
(59 FR 5699). The current (1994) ranges of comparability for 
storage-type water heaters were published on September 23, 1994 (59 
FR 48796). On August 21, 1995 (60 FR 43367), on September 16, 1996 
(61 FR 48620), on August 25, 1997 (62 FR 44890), and again on August 
28, 1998 (63 FR 45941), the Commission announced that the 1994 
ranges for storage-type water heaters will continue to remain in 
effect.
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    Manufacturers of heat pump water heaters and room air conditioners 
must continue to derive the operating cost disclosures on labels by 
using the 1995 National Average Representative Unit

[[Page 7784]]

Costs (8.67 cents per kilo Watt-hour for electricity, 63 cents per 
therm for natural gas, $1.008 per gallon for No. 2 heating oil, and 
98.5 cents per gallon for propane) that were in effect when the current 
(1995) ranges of comparability for these products were published.\5\ 
Manufacturers of heat pump water heaters and room air conditioners must 
continue to use the 1995 DOE cost figures to calculate the operating 
cost disclosure disclosed on labels until the Commission publishes new 
ranges of comparability for heat pump water heaters or room air 
conditioners based on future annual submissions of data. In the notice 
announcing the new ranges, the Commission also will announce that 
operating cost disclosures must be based on the DOE cost figure for 
electricity in effect at that time.
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    \5\ The 1995 DOE cost figures were published by DOE on January 
5, 1995 (60 FR 1773), and by the Commission on February 17, 1995 (60 
FR 9296). The current (1995) ranges of comparability for heat pump 
water heaters were published on August 21, 1995 (60 FR 43367). The 
current (1995) ranges for room air conditioners were published on 
November 13, 1995 (60 FR 56945). On September 16, 1996 (61 FR 
48620), again on August 25, 1997 (62 FR 44890), and again on August 
28, 1998 (63 FR 45941), the Commission announced that the 1995 
ranges for heat pump water heaters and room air conditioners would 
continue to remain in effect.
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    Manufacturers of dishwashers must continue to base the required 
secondary operating cost disclosures on labels on the 1997 National 
Average Representative Unit Costs for electricity (8.31 cents per 
kiloWatt-hour), natural gas (61.2 cents per therm), propane (98 cents 
per gallon), and/or heating oil (99 cents per gallon) that were 
published by DOE on November 18, 1996,\6\ and by the Commission on 
February 5, 1997,\7\ and that were in effect when the 1997 ranges of 
comparability for these products were published.\8\
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    \6\ 61 FR 58679.
    \7\ 62 FR 5316.
    \8\ The current ranges for dishwashers were published on August 
25, 1997 (62 FR 44890). On August 28, 1998 (63 FR 45941), the 
Commission announced that the 1997 ranges for dishwashers will 
continue to remain in effect.
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    Manufacturers of refrigerators, refrigerator-freezers, freezers, 
clothes washers, and instantaneous water heaters must continue to 
derive the operating cost disclosures on labels by using the 1998 
National Average Representative Unit Costs (8.42 cents per kilo Watt-
hour for electricity, 61.9 cents per therm for natural gas, 95 cents 
per gallon for No. 2 heating oil, and 95 cents per gallon for propane) 
that were in effect when the current (1998) ranges of comparability for 
these products were published.\9\ Manufacturers of refrigerators, 
refrigerator-freezers, freezers, clothes washers, and instantaneous 
water heaters must continue to use the 1998 DOE cost figures to 
calculate the operating cost disclosure disclosed on labels until the 
Commission publishes new ranges of comparability for refrigerators, 
refrigerator-freezers, freezers, clothes washers, and instantaneous 
water heaters based on future annual submissions of data. In the notice 
announcing the new ranges, the Commission also will announce that 
operating cost disclosures must be based on the DOE cost figures in 
effect at that time.
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    \9\ The 1998 DOE cost figures were published by DOE on December 
8, 1997 (62 FR 64574), and by the Commission on December 29, 1997 
(62 FR 67560). The current (1998) ranges for clothes washers were 
published on April 20, 1998 (63 FR 19397). The current (1998) ranges 
for instantaneous water heaters were published on August 28, 1998 
(63 FR 45941). The current (1998) ranges for refrigerators, 
refrigerator-freezers, and freezers were published on December 2, 
1998 (63 FR 66428).
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For 1999 Submissions of Data Under Sec. 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 Sec. 305.8 of the 
Rule. Pursuant to amendments to the Rule published on July 1, 1994 \10\ 
(with extended compliance dates published on December 8, 1994 \11\), 
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 (kilo Watt-hour use per year for electricity, therms per 
year for natural gas, or gallons per year for propane and oil). Thus, 
the 1999 (and all subsequent) data submissions under 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, not cost. The energy efficiency 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.
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    \10\ 59 FR 34014.
    \11\ 59 FR 63688.
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    For convenience, the annual dates for data submission are repeated 
here:

Clothes washers: March 1
Water heaters: May 1
Furnaces: May 1
Room air conditioners: May 1
Pool Heaters: May 1
Dishwashers: June 1
Central air conditioners: July 1
Heat pumps: July 1
Refrigerators: August 1
Refrigerator-freezers: August 1
Freezers: August 1

For Energy Cost Representations Respecting Covered Products in 
Catalogs

    Energy cost representations in catalogs that are drafted and 
printed while the 1999 cost figures are in effect must be derived using 
the 1999 energy costs beginning May 18, 1999.

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, 42 
U.S.C. 6293(c), but not by the Appliance Labeling Rule (clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters) must use 
the 1999 DOE energy costs in all operating cost representations 
beginning May 18, 1999.

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
Regulatory Flexibility Act analysis (5 U.S.C. 603-604) are not 
applicable to this proceeding because the amendments do not impose any 
new obligations on entities regulated by the Appliance Labeling Rule. 
Thus, the amendments will not have a ``significant economic impact on a 
substantial number of small entities'' (5 U.S.C. 605). The Commission 
has concluded, therefore, that a regulatory flexibility analysis is not 
necessary, and certifies, under Section 605 of the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), that the amendments announced today 
will not have a significant economic impact on a substantial number of 
small entities.

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:

    Authority: 42 U.S.C. 6294.

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

[[Page 7785]]

Sec. 305.9  Representative average unit energy cost.

    (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
                                                     [1999]
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                                                                        As required by DOE test     Dollars per
             Type of energy                 In commonly used terms             procedure            million Btu
--------------------------------------------------------------------------------------------------------\1\-----
Electricity.............................  8.22 cents/kWh \2\ \3\....  $0.0822/kWh...............          $24.09
Natural Gas.............................  68.8 cents/therm \4\ or     $0.00000688/Btu...........            6.88
                                           $7.07/MCF \5\ \6\.
No. 2 heating oil.......................  $.89/gallon \7\...........  $0.00000642/Btu...........            6.42
Propane.................................  $.77 gallon \8\...........  $0.00000843/Btu...........            8.43
Kerosene................................  $1.04/gallon \9\..........  $0.00000770/Btu...........            7.70
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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 purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,027 Btu.
\7\ For purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.
\8\ For purposes of this table, 1 gallon of liquid propane has an energy equivalence of 91,333 Btu.
\9\ For purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.

* * * * *
Donald S. Clark,
Secretary.
[FR Doc. 99-3801 Filed 2-16-99; 8:45 am]
BILLING CODE 6750-01-M