[Federal Register Volume 66, Number 98 (Monday, May 21, 2001)]
[Rules and Regulations]
[Pages 27856-27859]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12676]


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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'') revises Table 1 
in Sec. 305.9 of the Commission's Appliance Labeling Rule (``Rule'') to 
incorporate the latest figures for average unit energy costs as 
published by the Department of Energy (``DOE'') in the Federal Register 
on March 8, 2001. Table 1 sets forth the representative average unit 
energy costs for five residential energy sources, which the Commission 
revises periodically on the basis of undated information provided by 
DOE. The Commission is also making two minor technical corrections to 
the Rule.

DATES: The amendments published in this document are effective May 21, 
2001. 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: Hampton Newsome, Attorney, 202-326-
2889, Division of Enforcement, Bureau of Consumer Protection, Federal 
Trade Commission, Washington, DC 20580; E-mail:[email protected].

SUPPLEMENTARY INFORMATION: On November 19, 1979, the 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 section 305.9(a) of the Rule sets forth the 
representative average unit energy costs to be used for all cost-
related requirements of the Rule. As stated in section 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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I. Representative Average Unit Energy Costs

    On March 8, 2001, DOE published the most recent figures for 
representative average unit energy costs (66 FR 13917). These energy 
cost figures are for manufacturers to use, in accordance with the 
guidelines that appear below, to calculate the required secondary 
annual operating cost figures at the bottom of required EnergyGuides 
for refrigerators, refrigerator-freezers, freezers, dishwashers, 
clothes washers, water heaters, and room air conditioners. The energy 
cost figures also are for manufacturers of central air conditions and 
heat pumps to use, also in accordance with the below guidelines, to 
calculate annual operating cost for required fact sheets and in 
approved industry directories listing these products.
    The DOE cost figures are not necessary for making data submissions 
to the Commission. The required energy use information that 
manufacturers of refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, and water heaters must submit under 
section 305.8 of the Rule is no longer operating cost; it is now energy 
consumption (kilo Watt-hour use per year for electricity, therms per 
year for natural gas, or gallons per year for propane and oil).
    Accordingly, Table 1 is revised to reflect these latest cost 
figures, as set forth below. The current and future obligations of 
manufacturers with respect to the use of DOE's cost figures are as 
follows:

A. For Labeling of Refrigerators, Refrigerator-Freezers, Freezers, 
Clothes Washers, Dishwashers, Water Heaters, and Room Air Conditioners 
\2\
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    \2\ 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, 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 on 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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    Manufacturers of refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, water heaters, and room air conditioners 
must use the National Average Representative Unit Costs published today 
on labels for their products only after the Commission publishes new 
ranges of comparability for those products that are based on today's 
cost figures. In the meantime, they must continue to use past DOE cost 
figures as follows:
1. Refrigerators, Refrigerator-Freezers, and Freezers
    Manufacturers of refrigerators, refrigerator-freezers, and freezers 
covered by Appendices A1, A2, A3, A4,

[[Page 27857]]

A5, A6, B1, B2, and B3 of 16 CFR part 305 must continue to derive the 
operating cost disclosures on labels by using the 1998 National Average 
Representative Unit Costs (8.42 cents per kiloWatt-hour for 
electricity) published by DOE on December 8, 1997 (62 FR 64574), and by 
the Commission on December 29, 1997 (62 FR 67560), and that were in 
effect when the current (1998) ranges of comparability for these 
products were published.\3\ Manufacturers of refrigerator-freezers 
covered by Appendix A7 of 16 CFR Part 305 must continue to derive the 
operating cost disclosures on labels by using the 2000 National Average 
Representative Unit Costs (8.03 cents per kiloWatt-hour for 
electricity) that were published by DOE on February 7, 2000 (65 FR 
5860), and by the Commission on April 17, 2000 (65 FR 20352), and that 
were in effect when the current (2000) ranges of comparability for 
these products were published.\4\ Manufacturers must continue to use 
the foregoing DOE cost figures until the Commission publishes new 
ranges of comparability. 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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    \3\ The current (1998) ranges for refrigerators, refrigerator-
freezers, and freezers covered by Appendices, A1, A2, A3, A4, A5, 
A6, A8, B1, B2, and B3 were published on December 2, 1998 (63 FR 
66428). On December 20, 1999 (64 FR 71019) and October 23, 2000 (65 
FR 63201), the Commission announced that the 1998 ranges for these 
products would continue to remain in effect.
    \4\ The current (2000) ranges for refrigerator-freezers covered 
by Appendix A7 were published on October 23, 2000 (65 FR 63201).
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2. Room Air Conditioners
    Manufacturers of room air conditioners must continue to derive the 
operating cost disclosures on labels by using the 1995 National Average 
Representative Unit Costs for electricity (8.67 cents per kiloWatt-
hour) that were published by DOE on January 5, 1995 (60 FR 1773), and 
by the Commission on February 17, 1995 (60 FR 9296), and that were in 
effect when the current (1995) ranges of comparability for these 
products were published.\5\ Manufacturers of 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 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 current (1995) ranges for room air conditioners were 
published on November 13, 1995 (60 FR 56945). On September 16, 1996 
(61 FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR 
45941), December 20, 1999 (64 FR 71019), and September 1, 2000 (65 
FR 53163), the Commission announced that the 1995 ranges for room 
air conditioners would continue to remain in effect.
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3. Storage-Type Water Heaters
    Manufacturers of storage-type water heaters must continue to use 
the 1994 DOE cost figures (8.41 cents per kiloWatt-hour for 
electricity, 60.4 cents per therm for natural gas, $1.05 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.\6\ 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. In the 
notice announcing the new ranges, the Commission also will announce 
that operating cost disclosures must be based on the DOE cost figures 
for relevant energy types in effect at that time.
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    \6\ 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), September 16, 1996 (61 
FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR 
45941), December 20, 1999 (64 FR 71019), and September 1, 2000 (65 
FR 53163), the Commission announced that the 1994 ranges for 
storage-type waters heaters would continue to remain in effect.
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4. Heat Pump Water Heaters
    Manufacturers of heat pump water heaters must continue to derive 
the operating cost disclosures on labels by using the 2000 National 
Average Representative Unit Costs for electricity (8.03 cents per 
kiloWatt-hour) that were published by DOE on February 7, 2000 (65 FR 
5860), and by the Commission on April 17, 2000 (65 FR 20352), and that 
were in effect when the current (2000) ranges of comparability for 
these products were published.\7\ Manufacturers of heat pump water 
heaters must continue to use the 2000 DOE cost figures to calculate the 
operating cost disclosure on labels until the Commission publishes new 
ranges of comparability for heat pump 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 for electricity in effect at that 
time.
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    \7\ The current (2000) ranges of comparability for heat pump 
water heaters were published on September 1, 2000 (65 FR 53163).
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5. Gas-Fired Instantaneous Water Heaters
    Manufacturers of gas-fired instantaneous water heaters must 
continue to base the required secondary operating cost disclosures on 
labels on the 1999 National Average Representative Unit Cost for 
natural gas (68.8 cents per therm) and propane (77 cents per therm) 
that were published by DOE on January 5, 1999 (64 FR 487), and by the 
Commission on February 17, 1999 (64 FR 7783), and that were in effect 
when the 1999 ranges of comparability for these products were 
published.\8\ Manufacturers must continue to use the 1999 DOE cost 
figures to calculate the operating cost disclosure on labels until the 
Commission publishes new ranges of comparability for gas-fired 
instantaneous water heaters. In the notice announcing the new ranges, 
the Commission also will announce that operating cost disclosures must 
be based on the DOE cost figures for the relevant energy types in 
effect at that time.
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    \8\ The current ranges for gas-fired instantaneous water heaters 
were published on December 20, 1999 (64 FR 71019). On September 1, 
2000 (65 FR 53165), the Commission announced that the 1999 ranges 
for gas-fired instantaneous water heaters would continue to remain 
in effect.
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6. Standard-Size Dishwashers
    Manufacturers of standard-size 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) 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), and that were in effect 
when the 1997 ranges of comparability for these products were 
published.\9\ Manufacturers of standard-size dishwashers must continue 
to use the 1997 DOE cost figures to calculate

[[Page 27858]]

the operating cost disclosures on labels until the Commission publishes 
new ranges of comparability for standard-size dishwashers 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 the relevant 
energy types in effect at that time.
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    \9\ The current ranges for standard-size dishwashers were 
published on August 25, 1997 (62 FR 44890). On August 28, 1998 (63 
FR 45941), December 20, 1999 (64 FR 71019), and September 1, 2000 
(65 FR 53165), the Commission announced that the 1997 ranges for 
standard-size dishwashers would continue to remain in effect.
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7. Compact-Size Dishwashers and Clothes Washers
    Manufacturers of compact-size dishwashers and clothes washers must 
continue to derive the operating cost disclosures on labels by using 
the 2000 National Average Representative Unit Costs 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 20352), and that were in effect 
when the current (2000) ranges of comparability for these products were 
published.\10\ Manufacturers of compact dishwashers and clothes washers 
must continue to use the 2000 DOE cost figures to calculate the 
operating cost disclosures on labels until the Commission publishes new 
ranges of comparability for compact-size dishwashers and clothes 
washers 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 for 
the relevant energy types in effect at that time.
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    \10\ The current (2000) ranges of comparability for clothes 
washers were published on May 11, 2000 (65 FR 30351). on April 16, 
2001 (66 FR 19389), the Commission announced that the 2000 ranges 
for clothes washers would continue to remain in effect. The current 
(2000) ranges of comparability for compact-size dishwashers were 
published on September 1, 2000 (65 FR 53165).
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B. For Operating Cost Information Relating to Central Air Conditioners 
and Heat Pumps Disclosed on Fact Sheets and in Industry Directories

    In the 2001 notice announcing whether there will be new ranges of 
comparability for central air conditioners and heat pumps, the 
Commission also will announce that operating cost disclosures for these 
products on fact sheets and in industry directories must be based on 
the 2001 DOE cost figure for electricity beginning on the effective 
date of that notice.

C. For Operating Cost Representation 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 2001 DOE energy costs in all operating cost representations 
beginning August 20, 2001.

II. Minor, Technical Corrections to the Rule

    The Commission is amending two sections of the Rule that contain 
obsolete references to DOE's appliance testing requirements found in 10 
CFR Part 430 (``DOE's Rule''). The current Commission Rule identifies 
10 CFR 430.22 as the citation for DOE's test procedures covering a 
variety of appliances (see 16 CFR 305.5(a)). The correct reference is 
to section 430.23 of DOE's Rule. Similarly, the current Commission Rule 
identifies 10 CFR 430.23 as the citation for DOE's sampling procedures 
(see 16 CFR 305.6(a)). The correct reference is to section 430.24 of 
DOE's Rule.

III. 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 305.5(a) is revised to read as follows:


Sec. 305.5  Determinations of estimated annual energy consumption, 
estimated annual operating cost, and energy efficiency rating, and of 
water use rate.

    (a) Procedures for determining the estimated annual energy 
consumption, the estimated annual operating costs, the energy 
efficiency ratings and the efficacy factors of covered products are 
those found in 10 CFR part 430, subpart B, in the following sections:

(1) Refrigerators and refrigerator-freezers Sec. 430.23(a).
(2) Freezers--Sec. 430.23(b).
(3) Dishwashers--Sec. 430.23(c).
(4) Water heaters--Sec. 430.23(e).
(5) Room air conditioners--Sec. 430.23(f).
(6) Clothes washers--Sec. 430.23(j).
(7) Central air conditioners and heat pumps--Sec. 430.23(m).
(8) Furnaces--Sec. 430.23(n).
(9) Pool Heaters--Sec. 430.23(p)
(10) Fluorescent lamp ballasts--Sec. 430.23(q).

* * * * *

    3. Section 305.6(a) is revised to read as follows:


Sec. 305.6  Sampling.

    (a) For any covered product (except general service flouroscent 
lamps, medium base compact florescent lamps, and general service 
incandescent lamps, including incandescent reflector lamps), any 
representation with respect to or based upon a measure or measures of 
energy consumption incorporated into Sec. 305.5 shall be based upon the 
sampling procedures set forth in Sec. 430.24 of 10 CFR part 430, 
subpart B.
* * * * *
    4. Section 305.9(a) is revised to read as follows:


Sec. 305.9   Representative average unit energy costs.

    (a) Table 1, to this paragraph contains the representative unit 
energy costs to be utilized for all requirements of this part.

[[Page 27859]]



        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (2001)
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                                                                        As required by DOE test     Dollars per
             Type of energy                 In commonly used terms             procedure            million Btu
--------------------------------------------------------------------------------------------------------\1\-----
Electricity.............................  8.29 cents/kWh \2\ \3\....  $0.0829/kWh...............          $24.30
Natural Gas.............................  83.7 cents/therm \4\ or     0.00000837/Btu............            8.37
                                           $8.63/MCF \5\ \6\.
No. 2 heating oil.......................  $1.23/gallon \7\..........  0.00000886/Btu............            8.86
Propane.................................  $1.03/gallon \8\..........  0.00001128/Btu............           11.28
Kerosene................................  $1.27/gallon \9\..........  0.00000941/Btu............           9.41
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\1\ Btu stands for British thermal unit.
\2\ kWh stands for kiloWatt hour.
\3\ 1 kWh = 3,412 Btu.
\4\ therm = 100,000 Btu. Natural gas prices include taxes.
\5\ MCF stands for 1,000 cubic feet.
\6\ For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,031 Btu.
\7\ For the purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.
\8\ For the purposes of this table, 1 gallon of liquid propane has an energy equivalence of 91,333 Btu.
\9\ For the purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.

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    By direction of the Commission.
Donald S. Clark,
Secretary,
[FR Doc. 01-12676 Filed 5-18-01; 8:45 am]
BILLING CODE 6750-01-M