[Federal Register Volume 68, Number 124 (Friday, June 27, 2003)]
[Rules and Regulations]
[Pages 38175-38176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16301]


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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 required by the Appliance Labeling Rule 
(Rule) for room air conditioners, storage-type water heaters, gas-fired 
instantaneous water heaters, heat pump water heaters, furnaces, 
boilers, and pool heaters will remain in effect until further notice.

EFFECTIVE DATE: September 25, 2003.

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

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), and 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 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 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 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

[[Page 38176]]

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 section 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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Analysis of 2003 Data 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 ranges of 
comparability for these products 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 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 on the 1999 Representative Average 
Unit Costs of Energy for natural gas (68.8 cents per therm) and propane 
(77 cents per gallon) that were published by DOE on January 5, 1999 (64 
FR 487) and by the Commission on February 17, 1999 (64 FR 7783).
    Manufacturers of heat pump water heaters must continue to use the 
ranges that were published on June 24, 2002 (67 FR 42478). 
Manufacturers of heat pump water heaters must continue to 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 kilo Watt-hour) 
that were published by DOE on April 24, 2002 (67 FR 20104), and by the 
Commission on June 7, 2002 (67 FR 39269). 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 56949). 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.

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.


0
The authority citation for Part 305 continues to read as follows:

    Authority: 42 U.S.C. 6294.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-16301 Filed 6-26-03; 8:45 am]
BILLING CODE 6750-01-M