[Federal Register Volume 67, Number 121 (Monday, June 24, 2002)]
[Rules and Regulations]
[Pages 42478-42479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15842]


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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) announces new rages 
for heat pump water heaters. It also announces that the current ranges 
of comparability required by the Appliance Labeling Rule (Rule) for 
room air conditioners, storage-type water heaters, gas-fired 
instantaneous water heaters, furnaces, boilers, and pool heaters will 
remain in effect until further notice.

EFFECTIVE DATE: September 23, 2002.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of 
Enforcement, Federal Trade Commission, Washington, DC 20580 (202-326-
2889); [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 several 
categories of major household appliances and other consumer products 
including 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), ad central air conditioners (this category includes heat 
pumps).
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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 appliance 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, 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 manufacturers to 
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 consumers can compare the energy consumption or 
efficiency of other models (perhaps competing brands) similar to the 
labeled model. The Rule also requires manufacturers to 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 appliances uses.
    Section 305.8(b) of the Rule requires manufacturers, after filing 
an initial report, to report certain information annually to the 
Commission by specified dates for each product type.\2\ These reports, 
which are to assist the Commission in preparing the ranges of 
comparability, contain 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. To keep the required information 
consistent with these changes, under Sec. 305.10 of the Rule, the 
Commission will publish new ranges 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 will publish a 
statement that the prior ranges remain in effect for the next year.
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    \2\ Reports for room air conditioners, heat pump water heaters, 
storage-type water heaters, gas-fired instantaneous water heaters, 
furnaces, boilers, and pool heaters are due May 1.
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1. Current Submissions

    Manufacturers have submitted data for room air conditioners, water 
heaters (including storage-type, gas-fired instantaneous, and heat pump 
water heaters), furnaces, boilers, and pool heaters. The Commission did 
not receive any data for heat pump water heaters this year. 
Accordingly, the Commission is amending the ranges of comparability for 
these products to eliminate the high and low endpoints. As long as the 
amended ranges published here are in effect, manufacturers that 
introduce new heat pump water heater models in the future should look 
to the requirements in Sec. 305.10(b) of the Rule for guidance in 
preparing their labels. 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 2002 Representative 
Average Unit Costs of Energy for electricity (8.28 cents per kiloWatt-
hour) that were published by DOE on April 24, 2002 (67 FR 20104), and 
by the Commission on June 7, 2002 (67 FR 39269).
    The ranges of comparability for room air conditioners, storage-type 
water heaters, gas-fired instantaneous water heaters, furnaces, 
boilers, and pool heaters have not changed significantly enough to 
warrant a change to the current ranges. Therefore, the current ranges 
for these products will remain in effect until further notice.
    This means that manufacturers of storage-type water heaters, 
furnaces, and

[[Page 42479]]

boilers must continue to use the ranges that were published on 
September 23, 1994 (59 FR 48796). These manufacturers 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 kilo Watt-
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 gas-fired instantaneous water heaters must 
continue to use the ranges of comparability that were published on 
December 20, 1999 (64 FR 71019). They must continue to base the 
disclosures of estimated annual operating cost required at the bottom 
of EnergyGuides for these products in the 1999 Representatives Average 
Unit Costs of Energy for natural gas (68.8 cents per therm) and propane 
(77 cents per gallon) that were published by DOE by January 5, 1999 (64 
FR 487) and by the Commission on February 17, 1999 (64 FR 7783).
    Manufacturers of pool heaters must continue to use the ranges that 
were published on August 21, 1995 (60 FR 43367). Manufacturers of room 
air conditioners must continue to use the corrected ranges for room air 
conditioners that were published on November 13, 1995 (60 FR 56945, at 
46949). Manufacturers of room air conditioners must continue to base 
the disclosures of estimated annual operating cost required at the 
bottom of EnergyGuides 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 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).
    For up-to-date tables showing current range and cost information 
for all covered appliances, see the Commission's Appliance Labeling 
Rule web page at http://www.ftc.gov/appliances.

II. Administrative Procedure Act

    The amendments published in this notice involve routine, technical 
and minor, or conforming changes to the Rule's labeling requirements. 
These technical amendments involve a change to the ranges for heat pump 
water heaters covered by the Rule. Accordingly, the Commission finds 
for good cause that public comment and a 30-day effective date for 
these technical, procedural amendments are impractical and unnecessary 
(5 U.S.C. 553(b)(A)(B) and (d)).

III. Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
Regulatory Flexibility Act analysis (5 USC 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. These 
technical amendments involve a routine change to the ranges for heat 
pump water heaters covered by the 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.

IV. Paperwork Reduction Act

    In the 1988 NPR, the Commission stated that the Rule contains 
disclosure and reporting requirements that constitute ``information 
collection requirements'' ad defined by 5 CFR 1320.7(c), the regulation 
that implements the Paperwork Reduction Act (``PRA'').\3\ The 
Commission noted that the Rule had been reviewed and approved in 1984 
by the Office of Management and Budget (``OMB'') and assigned OMB 
Control No. 3084-0068. OMB has extended its approval for its 
recordkeeping and reporting requirements until September 30, 2004. The 
amendments now being adopted do not change the substance or frequency 
of the recordkeeping, disclosure, or reporting requirements and, 
therefore, do not require further OMB clearance.
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    \3\ 44 U.S.C. 3501-3520.
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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
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                   Capacity                        Range of estimated
-----------------------------------------------       annual energy
                                                 consumption  (KWh/Yr.)
               First hour rating               -------------------------
                                                    Low          High
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Less than 21..................................          (*)          (*)
21 to 24......................................          (*)          (*)
25 to 29......................................          (*)          (*)
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....................................          (*)          (*)
115 to 131....................................          (*)          (*)
Over 131......................................          (*)         (*)
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* No data submitted.


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-15842 Filed 6-21-02; 8:45 am]
BILLING CODE 6750-01-M