[Federal Register Volume 65, Number 171 (Friday, September 1, 2000)]
[Rules and Regulations]
[Pages 53165-53167]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22529]


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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 (``the Commission'') amends its 
Appliance Labeling Rule (``the Rule'') by publishing new ranges of 
comparability to be used on required labels for compact dishwashers. 
The Commission also announces that the current ranges of comparability 
for standard-sized dishwashers, 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 last amendments change the figures in the formulas to 
reflect the current (2000) Representative Average Unit Cost of 
Electricity that was published on February 7, 2000 (65 FR 5860), by the 
Department of Energy (``DOE''), and on April 17, 2000 (65 FR 20352) by 
the Commission.

EFFECTIVE DATE: The amendments to Appendix C1 to part 305 establishing 
new ranges of comparability for compact dishwashers will become 
effective March 22, 2001. The amendments to Appendices H and I to Part 
305 will become effective November 30, 2000.

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

SUPPLEMENTARY INFORMATION: The 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 (``EPCA'').\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, gas-
fired 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)).
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    \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.
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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 test procedures promulgated by DOE) at the 
point of sale in the form of an ``EnergyGuide'' label and in catalogs. 
It also requires manufacturers of furnaces, boilers 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'' scale. This scale 
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 the 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

[[Page 53166]]

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.
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    \2\ 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, central air 
conditioners, and heat pumps have been made and have been analyzed by 
the Commission.
    The ranges of comparability for central air conditioners and heat 
pumps have not changed by more than 15% from the current ranges for 
these products. Therefore, the current ranges for these products, which 
were published on September 16, 1996 (61 FR 48620), will remain in 
effect until further notice.
    The data submissions for dishwashers show no change in the high or 
low ends of the range of comparability scale for standard models, no 
change in the low end of the range scale for compact models, but a 
significant change in the high end of the compact scale (reflecting the 
fact that currently only one model of compact dishwasher is being 
offered).\3\ Rather than require new ranges for the vast majority of 
dishwashers (the standard category) when only the high end of the 
compact range has changed significantly, the Commission has decided to 
publish new ranges of comparability only for compact dishwashers. These 
new ranges of comparability supersede the current ranges for compact-
sized dishwashers, which were published on December 20, 1999.\4\ As of 
the effective date of these new ranges, manufacturers of compact-sized 
dishwashers must base the disclosure of estimated annual operating cost 
required at the bottom of EnergyGuides for compact-sized dishwashers on 
the 2000 Representative Average Unit Costs of Energy for electricity 
(8.03 cents per kilo Watt-hour) and natural gas (68.8 cents per therm) 
that were published by DOE on February 7, 2000 (65 FR 5860), and by the 
Commission on April 17, 2000 (65 FR 20354).
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    \3\ The Commission's classification of ``Standard'' and 
``Compact'' dishwashers is based on internal load capacity. Appendix 
C of the Commission's Rule defines ``Compact'' as including 
countertop dishwasher models with a capacity of fewer than eight (8) 
place settings and ``Standard'' as including portable or built-in 
dishwasher models with a capacity of eight (8) or more place 
settings. The Rule requires that place settings be determined be in 
accordance with appendix C to 10 CFR Part 430, subpart B, of DOE's 
energy conservation standards program.
    \4\ The current ranges for compact-sized dishwashers (Appendix 
C1) were published at 64 FR 71019, along with a republication of the 
current (1997) ranges for standard-sized dishwashers (Appendix C2), 
which were originally published on August 25, 1997, at 62 FR 44890.
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    The effective date of the Federal Register Notice that established 
the current ranges of comparability for compact-sized dishwashers was 
March 22, 2000. Because section 326(c) of EPCA states that the 
Commission cannot require that labels be changed more often than 
annually to reflect changes in the ranges of comparability,\5\ the 
effective date of today's revised ranges of comparability for compact-
sized dishwashers will therefore be March 22, 2001.
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    \5\ 42 U.S.C. 6296(c).
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    The ranges of comparability for standard-sized dishwashers will 
remain in effect until further notice. This means that manufacturers of 
standard-sized dishwashers must continue to use the ranges of 
comparability that were published on August 25, 1997 (62 FR 44890), and 
must continue to base the disclosures of estimated annual operating 
cost required at the bottom of EnergyGuides for these products on the 
1997 Representative Average Unit Costs of Energy for electricity (8.31 
cents per kiloWatt-hour) and natural gas (61.2 cents per therm) that 
were published by DOE on November 18, 1996 (61 FR 58679), and by the 
Commission on February 5, 1997 (62 FR 5316).
    In consideration of the foregoing, the Commission revises appendix 
C1 of part 305 by publishing the following ranges of comparability for 
use in required disclosures (including labeling) for compact-size 
dishwashers beginning March 22, 2001, and amends the cost calculation 
formulas in appendices H and I to part 305 that manufacturers of 
central air conditioners and heat pumps must include on fact sheets and 
in directories, effective November 30, 2000.

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.

    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 C1 to Part 305 is revised to read as follows:

Appendix C1 to Part 305--Compact Dishwashers

Range Information

    ``Compact'' includes countertop dishwasher models with a 
capacity of fewer than eight (8) place settings. Place settings 
shall be in accordance with appendix C to 10 CFR Part 430, subpart 
B. Loan patterns shall conform to the operating normal for the model 
being tested.

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                                               Range of estimated annual
                                               energy consumption  (kWh/
                  Capacity                               yr.)
                                             ---------------------------
                                                   Low          High
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Compact.....................................           277           277
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Cost Information

    When the above ranges of comparability are used on EnergyGuide 
labels for compact-sized dishwashers, the estimated annual operating 
cost disclosure appearing in the box at the bottom of the labels 
must be derived using the 2000 Representative Average Unit Costs for 
electricity (8.03 cents per kiloWatt-hour) and natural gas 
(68.8 cents per therm), and the text below the box must identify the 
costs as such.

    3. In section 2 of Appendix H of Part 305, the text and formulas 
are amended by removing the figure ``8.22 cents'' wherever it appears 
and by adding, in its place, the figure ``8.03 cents''. In addition, 
the text and formulas are amended by removing the figure ``12.4 cents'' 
wherever it appears and by adding, in its place, the figure 
``12.05 cents''.
    4. In section 2 of Appendix I of Part 305, the text and formulas 
are amended by removing the figure ``8.22 cents'' wherever it appears 
and by adding, in its place, the figure ``8.03 cents''. In addition, 
the text and formulas are amended by removing the figure 
``12.34 cents'' wherever it appears and by adding, in its place, the 
figure ``12.05 cents''.


[[Page 53167]]


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-22529 Filed 8-31-00; 8:45 am]
BILLING CODE 6750-01-M