[Federal Register Volume 65, Number 171 (Friday, September 1, 2000)]
[Rules and Regulations]
[Pages 53163-53165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22530]


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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 (``Rule'') by publishing new ranges of comparability to 
be used on required labels for heat pump water heaters, and announces 
that the current ranges of comparability required by the Rule for room 
air conditioners, storage-type water heaters,

[[Page 53164]]

gas-fired instantaneous water heaters, furnaces, boilers, and pool 
heaters will remain in effect until further notice.

EFFECTIVE DATE: 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.\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 the Department of 
Energy (``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 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, 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 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.
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    \2\ Reports for room air conditioners, water heaters (storage-
type, gas-fired instantaneous, and heat pump-type) furnaces, 
boilers, and pool heaters are due May 1.
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    The annual submissions of data for room air conditioners, water 
heaters (including storage-type, gas-fired instantaneous, and heat pump 
water heaters), furnaces, boilers, and pool heaters have been made and 
have been analyzed by the Commission.
    The data submissions for heat pump water heaters show significant 
changes in both the high and low ends of the ranges of comparability 
for these products. Therefore, the Commission is publishing new ranges 
for use in required disclosures (including labeling) for heat pump 
water heaters beginning November 30, 2000. In addition, beginning 
November 30, 2000, manufacturers of heat pump water heaters must base 
the disclosures of estimated annual operating cost required at the 
bottom of EnergyGuides for these products on the 2000 Representative 
Average Unit Cost of Energy for electricity (8.03 cents per kiloWatt-
hour) that was published by DOE on February 7, 2000 (65 FR 5860), and 
by the Commission on April 17, 2000 (65 FR 20352).
    The ranges of comparability for room air conditioners, storage-type 
water heaters, instantaneous water heaters, furnaces, boilers, 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\
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    \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 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 gas-fired instantaneous water heaters were published on 
December 20, 1999 (64 FR 71019).
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    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 EnergyGuides for these 
products on the 1994 Representative Average Unit Costs of Energy for 
electricity (8.41 cents per kiloWatt-hour), natural gas (60.4 cents per 
therm), propane (98 cents per gallon), and/or 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 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 
pool heaters and room air conditioners must continue to base the 
disclosures of estimated annual operating required at the bottom of 
EnergyGuides for these products on the 1995 Representative Average Unit 
Costs of Energy for electricity (8.67 cents per kiloWatt-hour), natural 
gas (63 cents per therm), propane (98.5 cents per gallon), and/or 
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 gas-fired instantaneous water heaters must 
continue to use the ranges of comparability that were published on 
December 20, 1999. They must continue to base the disclosures of 
estimated annual operating cost required at the bottom of EnergyGuides 
for these products on the 1999 Representative Average Unit Cost for 
natural gas (68.8 cents per therm) and propane (77 cents per gallon) 
that were published by DOE on January 5, 1999 (64 FR 487) and by the 
Commission on February 17, 1999 (64 FR 7783).
    For up-to-date tables showing current range and cost information 
for all covered appliances, see the

[[Page 53165]]

Commission's Appliance Labeling Rule web page at www.ftc.gov/appliances.

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 D5 to Part 305 is revised to read as follows:
    Appendix D5 to Part 305--Water Heaters-Heat Pump

                            Range Information
------------------------------------------------------------------------
                                                   Range of estimated
                                                      annual energy
          Capacity: First hour rating             consumption (KWh/Yr.)
                                               -------------------------
                                                    Low          High
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Less than 21..................................          (*)          (*)
21 to 24......................................          (*)          (*)
25 to 29......................................          (*)          (*)
30 to 34......................................          (*)          (*)
35 to 40......................................          (*)          (*)
41 to 47......................................         1996         1996
48 to 55......................................          (*)          (*)
56 to 64......................................         2311         2311
65 to 74......................................          (*)          (*)
75 to 86......................................          (*)          (*)
87 to 99......................................          (*)          (*)
100 to 114....................................          (*)          (*)
115 to 131....................................          (*)          (*)
Over 131......................................          (*)         (*)
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* No data submitted.


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-22530 Filed 8-31-00; 8:45 am]
BILLING CODE 6750-01-M