[Federal Register Volume 67, Number 179 (Monday, September 16, 2002)]
[Rules and Regulations]
[Pages 58327-58328]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23467]



[[Page 58327]]

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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 that 
the current ranges of comparability for 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 (Hearing Performance and Cost 
for Central Air Conditioners) to reflect the current (2002) 
Representative Average Unit Cost of Electricity that was published on 
April 24, 2002 (67 FR 20104), by the Department of Energy (``DOE''), 
and on June 7, 2002 (67 FR 39269) by the Commission.

EFFECTIVE DATES: The amendments to Appendices H and I to Part 305 will 
become effective December 16, 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 (``EPCA'').\1\ The Rule 
covers several categories of major household appliances including 
central air conditioners and heat pumps.
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    \1\ 42 USC 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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I. Background

    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 
``EnergyGuide'' label, fact sheets (for some appliances), 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 the other 
models (perhaps competing brands) similar to the label 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 range remain in 
effect for the next year.
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    \2\ Reports for central air conditioners and heat pumps are due 
July 1.
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II. 2002 Central Air Conditioner and Heat Pump Information

    The annual submissions of data for central air conditioners, and 
heat pumps have been made and 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.

III. Cost Figures for Central Air Conditioner and Heat Pump Fact Sheets

    The Commission is amending 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 to reflect this year's energy costs figures published by 
DOE. These routine amendments will become effective December 16, 2002.

IV. Administrative Procedure Act

    The amendments published in this notice involve routine, technical 
and minor, or conforming changes to the Rule's disclosure requirements 
so that the information on fact sheets and directories is accurate and 
up to date. Accordingly, the Commission finds for good cause that 
public comment for these technical, procedural amendments is 
impractical and unnecessary (5 USC 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 Applicance Labeling Rule. 
These technical amendments merely provide a routine change to the range 
information required 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.

VI. Paperwork Reduction Act

    In a June 13, 1988 notice (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.\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 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.
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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 applicances, Labeling, 
Reporting and recordkeeping requirements.

    Accordingly, 16 CFR part 305 is amended as follows:

[[Page 58328]]

PART 305--[AMENDED]

    1. The authority citation for Part 305 continues to read as 
follows:

    Authority: 42 U.S.C. 6294.

    2. In section 2 of Appendix H of Part 305, the text is amended by 
removing the figure ``8.29[cent]'' wherever it appears and by adding, 
in its place, the figure ``8.28[cent]''. In addition, the text in this 
section is amended by removing the figure ``12.45[cent]'' wherever it 
appears and by adding, in its place, the figure ``12.42[cent]''.

    3. The formula in section 2 of Appendix H of Part 305 is revised to 
read as follows in both places that it appears:

Appendix H to Part 305--Cooling Performance and Cost for Central Air 
Conditioners

* * * * *
[GRAPHIC] [TIFF OMITTED] TR16SE02.046

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    4. In section 2 of Appendix I of Part 305, the text is amended by 
removing the figure ``8.29[cent]'' wherever it appears and by adding, 
in its place, the figure ``8.28[cent]''. In addition, the text and 
formulas are amended by removing the figure ``12.45[cent]'' wherever it 
appears and by adding, in its place, the figure ``12.42[cent]''.

    5. In section 2 of Appendix I of Part 305, the Formula is revised 
to read as follows in both places that it appears:

Appendix I to Part 305--Heating Performance and Cost for Central Air 
Conditioners

* * * * *
[GRAPHIC] [TIFF OMITTED] TR16SE02.047

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    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-23467 Filed 9-13-02; 8:45 am]
BILLING CODE 6750-01-M