[Federal Register Volume 68, Number 35 (Friday, February 21, 2003)]
[Rules and Regulations]
[Pages 8448-8449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4079]


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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'') is amending the 
Appliance Labeling Rule (``Rule'') to require clothes washer 
manufacturers to submit their annual energy data for clothes washers on 
October 1 rather than March 1 as currently required. This change will 
make FTC's reporting date consistent with that of the Canadian energy 
labeling program.

EFFECTIVE DATE: February 21, 2003.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of 
Enforcement, Federal Trade Commission, Washington, DC 20580 (202-326-
2889); [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission issued the Appliance Labeling Rule 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, among 
other things, eight categories of major household appliances: 
refrigerators and refrigerator-freezers, freezers, dishwashers, clothes 
washers, water heaters, room air conditioners, furnaces, and central 
air conditioners.
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    \1\ 42 U.S.C. 6294. The statute also requires the Department of 
Energy 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 to 
disclose specific energy consumption or efficiency information (derived 
from the Department of Energy (``DOE'') test procedures) at the point 
of sale in the form of an ``EnergyGuide'' label and in catalogs. The 
Rule requires manufacturers to include, on labels, 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 similar to the labeled model.
    The Rule requires manufacturers, after filing an initial report, to 
report annually the estimated annual energy consumption or energy 
efficiency ratings for the appliances derived from tests performed 
pursuant to the DOE test procedures. 16 CFR 305.8(b). 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.

II. Changes to Reporting Date for Clothes Washers

    In a February 7, 2003 letter to Commission staff, the Association 
of Home Appliance Manufacturers (AHAM) requested that the Commission 
amend the reporting date for clothes washer data from March 1 to 
October 1 of each year. This change will ensure that FTC's submission 
deadline is consistent with the Canadian reporting period for clothes 
washers. The Canadian program, administered by Natural Resources 
Canada, provides manufacturers with a three month period to submit 
data, which usually begins sometime in September of each year. This 
amendment will allow manufacturers to compile and submit their annual 
reports to both agencies in the same time period.
    For this year, the change in reporting date will also allow 
manufacturers to provide the FTC with new energy information based on 
the most recent DOE test procedure for these products. A new DOE test 
procedure for clothes washers (see 10 CFR Part 430, Subpt. B, App. J1) 
and a new energy standard for clothes washers will become effective on 
January 1, 2004.\2\ For any particular model, the application of the 
new test procedure is likely to produce energy consumption figures 
different from those yielded by the existing DOE test. The current 
ranges of comparability for clothes washers are based on data for 
models that have been tested under the current DOE test. AHAM has 
indicated that it plans to submit data in October 2003 for clothes 
washers that comply with the 2004 standard and have been tested under 
the new procedure. This will allow the Commission to review this data 
and, if appropriate, publish new ranges that reflect new 2004 compliant 
models tested under the new procedure. Clothes washer labels printed in 
early 2004 would then provide energy consumption figures and ranges of 
comparability that reflect the new procedure. By publishing the new 
ranges as early as possible, the Commission hopes to reduce any 
confusion that may result from the transition from the old test 
procedure to the new one.
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    \2\ See 62 FR 45484 (August 27, 1997) and 66 FR 3314 (January 
12, 2001).
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    In its February 7, 2003 letter, AHAM also requested that the 
Commission allow its members to use the new test results for 
EnergyGuide labels printed before January 1, 2004. AHAM also proposed 
clarifying changes to the clothes washer label. The Commission will 
address these additional issues separately.

III. Non-Substantive Change to Dishwasher Reporting Date

    The Commission is also amending the language in the Rule in 
Sec. Sec.  305.8(b) and 305.10(a) to eliminate obsolete language 
related to the publication of ranges and the submission of data for 
dishwashers in 2002 (see 67 FR 35008 (May 17, 2002)).

IV. Administrative Procedure Act

    The amendments published in this notice involve minor, procedural 
changes to the submission date for data already required by the Rule. 
These technical amendments merely alter the dates on which compliance 
is required and do not affect the requirements of the Rule nor do the 
amendments alter the frequency with which regulated entities must 
comply with these requirements. Accordingly, the Commission finds for 
good cause that public comment and a 30-day effective date for these 
technical, procedural amendments are unnecessary (5 U.S.C. 553(b)(A)(B) 
and (d)).

[[Page 8449]]

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. 
The amendments merely alter the dates on which compliance is required 
and do not affect the requirements of the rule nor do the amendments 
alter the frequency with which regulated entities must comply with 
these requirements. 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 1988 notice (53 FR 22113), 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 again 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 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. In Sec.  305.8, paragraph (b) is revised to read as follows:


Sec.  305.8  Submission of data

* * * * *
    (b)(1) All data required by Sec.  305.8(a) except serial numbers 
shall be submitted to the Commission annually, on or before the 
following dates:

------------------------------------------------------------------------
             Product category              Deadline for data  submission
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Refrigerators............................  Aug. 1
Refrigerator-freezers....................  Aug. 1
Freezers.................................  Aug. 1
Central air conditioners.................  July 1
Heat pumps...............................  July 1
Dishwashers..............................  June 1
Water heaters............................  May 1
Room air conditioners....................  May 1
Furnaces.................................  May 1
Pool heaters.............................  May 1
Clothes washers..........................  Oct. 1
Fluorescent lamp ballasts................  Mar. 1
Showerheads..............................  Mar. 1
Faucets..................................  Mar. 1
Water closets............................  Mar. 1
Urinals..................................  Mar. 1
Fluorescent lamps........................  Mar. 1 [Stayed]
Medium Base Compact Fluorescent Lamps....  Mar. 1 [Stayed]
Incandescent Lamps, incl. Reflector Lamps  Mar. 1 [Stayed]
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    (2) All revisions to such data (both additions to and deletions 
from the preceding data) shall be submitted to the Commission as part 
of the next annual report period.

    3. In Sec.  305.10, paragraph (a) is revised to read as follows:


Sec.  305.10  Ranges of estimated annual energy consumption and energy 
efficiency ratings.

    (a) The range of estimated annual energy consumption or energy 
efficiency ratings for each covered product (except fluorescent lamp 
ballasts, showerheads, faucets, water closets or urinals) shall be 
taken from the appropriate appendix to this rule in effect at the time 
the labels are affixed to the product. The Commission shall publish 
revised ranges annually in the Federal Register, if appropriate, or a 
statement that the specific prior ranges are still applicable for the 
new year. Ranges will be changed if the estimated annual energy 
consumption or energy efficiency ratings of the products within the 
range change in a way that would alter the upper or lower estimated 
annual energy consumption or energy efficiency rating limits of the 
range by 15% or more from that previously published. When a range is 
revised, all information disseminated after 90 days following the 
publication of the revision shall conform to the revised range. 
Products that have been labeled prior to the effective date of a 
modification under this section need not be relabeled.
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-4079 Filed 2-20-03; 8:45 am]
BILLING CODE 6750-01-P