[Federal Register Volume 67, Number 139 (Friday, July 19, 2002)]
[Rules and Regulations]
[Pages 47443-47446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18114]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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 standard and compact 
dishwashers. The Commission is also publishing minor and conforming 
changes to the requirements for EnergyGuide labels for dishwashers.

EFFECTIVE DATES: The amendments to Sec. 305.11, Appendix C2 to part 305 
(ranges for standard-size dishwashers), and Appendix L to part 305 will 
become effective September 17, 2002. The amendments to Appendix C1 to 
part 305 establishing new ranges of comparability for compact 
dishwashers will become effective March 22, 2003.

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 (``EPCA'').\1\ The Rule 
covers several categories of major household appliances including 
dishwashers.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    The Rule requires manufacturers of all covered appliances to 
disclose specific energy consumption or efficiency information (derived 
from the DOE test procedures) at the point of sale in the form of an 
``Energy Guide'' label and in catalogs. 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 appliance 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 on 
labels consistent with these changes, 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.
---------------------------------------------------------------------------

    \2\ Reports for dishwashers are usually due June 1. For reasons 
detailed in the Federal Register on May 17, 2002 (67 FR 35006), this 
submission date was changed to June 17 for 2002 submissions.
---------------------------------------------------------------------------

I. 2002 Dishwasher Data

A. New Ranges

    The Commission has analyzed the annual data submissions for 
dishwashers. The data submissions show significant change in the high 
or low ends of the range of comparability scale for standard and 
compact models.\3\ Accordingly, the Commission is publishing new ranges 
of comparability for standard and compact dishwashers. These new ranges 
of comparability

[[Page 47444]]

supersede the current ranges for compact-sized dishwashers (Appendix 
C1), which were published on September 28, 2001, and for standard 
dishwashers (Appendix C2), which were published on August 25, 1997. As 
of the effective date of these new ranges, manufacturers of these 
dishwashers must base the disclosures of estimated annual operating 
cost required at the bottom of EnergyGuide labels for compact-sized 
dishwashers on the 2002 Representative Average Unit Costs of Energy for 
electricity (8.28 cents per Kilo Watt-hour) and natural gas (65.6 cents 
per therm) that were published by DOE on April 24, 2002 (67 FR 20104) 
and by the Commission on June 7, 2002 (67 FR 39269).
---------------------------------------------------------------------------

    \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 in 
accordance with appendix C to 10 CFR Part 430, subpart B, of DOE's 
energy conservation standards program.
---------------------------------------------------------------------------

B. Effective Dates

    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.\4\ Because the effective date of the 
Federal Register document establishing the current ranges of 
comparability for compact-sized dishwashers was March 22, 2002, the 
effective date of today's revised ranges of comparability for compact-
sized dishwashers will be March 22, 2003. All other amendments 
announced in this document, including the changes to the range for 
standard dishwashers in Appendix C2, will become effective September 
17, 2002.
---------------------------------------------------------------------------

    \4\ 42 U.S.C. 6296(c).
---------------------------------------------------------------------------

II. Labeling Under the New DOE Test Procedure

    On December 18, 2001 (66 FR 65094), DOE published amendments to the 
test procedure that manufacturers must use to determine the energy use 
of their dishwashers. This new test became effective June 17, 2002. 
Among other things, the amended DOE test procedure reduces the number 
of annual cycles manufacturers must use in calculating their 
dishwashers' energy consumption. These changes uniformly have decreased 
the disclosed energy consumption for dishwashers. Under EPCA, all 
energy use representations (including information on the EnergyGuide 
labels) must reflect the amended test procedure beginning 180 days 
after the change in the procedure is prescribed (i.e., June 17, 
2002).\5\ In a May 17, 2002 document (67 FR 35006), however, the 
Commission announced that it does not expect manufacturers to change 
their labels this year to reflect the amended test procedure until 
after the Commission publishes new ranges of comparability based on the 
new DOE test. In other words, the Commission is exercising discretion 
to not take law enforcement action against manufacturers that have 
waited to account for the new test procedure on their labels until the 
Commission provided notice about new ranges for dishwashers. In this 
document, the Commission has now published new ranges of comparability. 
Accordingly, manufacturers now have the necessary information to label 
their products to reflect the products' energy use based on the results 
of the new test procedures and the new ranges of comparability (also 
based on data derived from the new test procedure).
---------------------------------------------------------------------------

    \5\ 42 U.S.C. 6293(c).
---------------------------------------------------------------------------

III. Minor, Conforming Changes to the EnergyGuide Label

    The new ranges published here and the new DOE test procedure also 
require a change to the explanatory information provided on EnergyGuide 
labels for dishwashers. Currently, Sec. 305.11(a)(5)(i)(H)(2) of the 
Rule requires dishwasher labels to contain language indicating that the 
information on the label is based on ``six washloads a week.'' Because 
the new DOE test procedure requires manufacturers to assume 264 cycles 
per year instead of 322 in their calculation, the explanatory language 
on the EnergyGuide label must now be changed to state that the 
information is based on ``five washloads'' a week. The Commission is 
amending the requirements in Sec. 305.11 and sample label 4 in Appendix 
L to effect these minor and conforming changes. The Commission is also 
amending cost information in sample label 4 to reflect this year's 
energy cost information as published by DOE (67 FR 20104) and the 
Commission (67 FR 39269).

IV. Administrative Procedure Act

    The amendments published in this document involve routine, 
technical and minor, or conforming changes to the labeling requirements 
in the Rule. These technical amendments merely provide a routine change 
to the range information required on EnergyGuide labels. The minor or 
conforming amendments require changes to the EnergyGuide label so that 
the information is accurate and reflects recent changes that DOE has 
made to the test procedures for these products. Accordingly, the 
Commission finds for good cause that public comment for these 
technical, procedural amendments is impractical and unnecessary (5 
U.S.C. 553(b)(A)(B) and (d)).

V. 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. 
These technical amendments merely provide a routine change to the range 
information required on EnergyGuide labels. 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.

VI. Paperwork Reduction Act

    In a June 13, 1988 document (53 FR 22106), the Commission stated 
that the Rule contains disclosure and reporting requirements that 
constitute ``information collection requirements'' as defined by 5 CFR 
1320.7(c), the regulation that implements the Paperwork Reduction 
Act.\6\ 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 reviewed the Rule and 
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.
---------------------------------------------------------------------------

    \6\ 44 U.S.C. 3501-3520.
---------------------------------------------------------------------------

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. Section 305.11(a)(5)(i)(H)(2) is revised to read as follows:


Sec. 305.11  Labeling for covered products.

    (a) * * *
    (5) * * *

[[Page 47445]]

    (i) * * *
    (H) * * *
    (2) For clothes washers and dishwashers, the statement will read as 
follows (fill in the blanks with the appropriate appliance name, the 
operating cost, the number of loads per week, the year, and the energy 
cost figures):

    [Clothes Washers, or Dishwashers] using more energy cost more to 
operate. This model's estimated yearly operating cost is: [Electric 
cost figure will be boxed] when used with an electric water heater 
[Gas cost figure will be boxed] when used with a natural gas water 
heater.
    Based on [5 washloads a week for dishwashers, or 8 washloads a 
week for clothes washers], and a [Year] U.S. Government national 
average cost of $---- per KWh for electricity and $---- per therm 
for natural gas. Your actual operating cost will vary depending on 
your local utility rates and your use of the product.
* * * * *

    3. Appendix 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. Load patterns shall conform to the operating normal for the model 
being tested.

------------------------------------------------------------------------
                                        Range of estimated annual energy
                                             consumption (k Wh/yr.)
           Capacity Compact           ----------------------------------
                                              Low              High
------------------------------------------------------------------------
Compact..............................              176               176
------------------------------------------------------------------------


Cost Information

    When the above ranges of comparability are used on Energy Guide 
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 2002 Representative Average Unit Costs for 
electricity (8.28[cent] per kilo Watt-hour) and natural gas 
(65.6[cent] per therm), and the text below the box must identify the 
costs as such.

* * * * *

    4. Appendix C2 to Part 305 is revised to read as follows:

Appendix C2 to Part 305--Standard Dishwashers

Range Information

    ``Standard'' includes portable or built-in dishwasher models 
with a capacity of eight (8) or more place settings. Place settings 
shall be in accordance with appendix C to 10 CFR part 430, subpart 
B. Load patterns shall conform to the operating normal for the model 
being tested.

------------------------------------------------------------------------
                                        Range of estimated annual energy
                                             consumption (k Wh/yr.)
               Capacity               ----------------------------------
                                              Low              High
------------------------------------------------------------------------
Standard.............................              312               573
------------------------------------------------------------------------

Cost Information

    When the above ranges of comparability are used on Energy Guide 
labels for standard-sized dishwashers, the estimated annual 
operating cost disclosure appearing in the box at the bottom of the 
labels must be derived using the 2002 Representative Average Unit 
Costs for electricity (8.28[cent] per kilo Watt-hour) and natural 
gas (65.6[cent] per therm), and the text below the box must identify 
the costs as such.


    5. Appendix L to part 305 is amended by revising Sample Label 4 to 
read as follows:

Appendix L to Part 305--Sample Labels

* * * * *
BILLING CODE 6750-01-M

[[Page 47446]]

[GRAPHIC] [TIFF OMITTED] TR19JY02.010


    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-18114 Filed 7-18-02; 8:45 am]
BILLING CODE 6750-01-C