[Federal Register Volume 68, Number 226 (Monday, November 24, 2003)]
[Rules and Regulations]
[Pages 65833-65835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29102]


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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'') amends its 
Appliance Labeling Rule (``Rule'') by publishing new ranges of 
comparability to be used on required labels for compact clothes 
washers. The Commission also announces that the current ranges of 
comparability for standard-sized clothes washers will remain in effect 
until further notice.

EFFECTIVE DATE: The amendments announced in this document will become 
effective February 23, 2004.

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 (``EPCA''),\1\ The Rule 
covers several categories of major household appliances including 
dishwashers.
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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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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 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.
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    \2\ Reports for clothes washers are due October 1.
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II. 2003 Clothes Washer Ranges

    The Commission has analyzed the 2003 annual data submissions for

[[Page 65834]]

clothes washers. The data submissions show a significant change in the 
range of comparability scale for compact clothes washers.\3\ 
Accordingly, the Commission is publishing new ranges of comparability 
for compact clothes washers in appendix F of the rule. To effect this 
amendment, the Commission has divided appendix F into two parts, 
appendix F1 for standard clothes washers and appendix F2 for compact 
clothes washers. Because the range of comparability for standard 
clothes washers has not changed significantly, the Commission is not 
amending the range in the rule for those products.\4\
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    \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.
    \4\ In a February 21, 2003 notice (68 FR 8448), the Commission 
discussed the possibility of publishing clothes washer ranges this 
year based on data derived from a new DOE test procedure that will 
become effective on January 1, 2004 (10 CFR part 430, subpart B, 
appendix J1). On October 1, 2003, the Commission received data for 
some models that had been tested under the new procedure as well as 
data submissions reflecting results based on the current (existing) 
test procedure for all models (10 CFR part 430, subpart B, appendix 
J). The submitted data indicates that the number of models tested 
under the new procedure as of October 1 was relatively small 
compared to the total number of models reported. In addition, the 
submitted information did not contain any data for compact models 
tested under the new procedure. Given this limited data and the 
possibility that many more models have yet to be tested under the 
new procedure, it is not appropriate to amend the ranges based on 
this limited new test data at this time. Accordingly, this notice 
reflects the review of data for models tested under the current 
(existing) DOE test procedure.
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    Manufacturers of compact clothes washers must base the disclosures 
of estimated annual operating cost required at the bottom of 
EnergyGuide labels for standard-sized dishwashers on the 2003 
Representative Average Unit Costs of Energy for electricity (8.41 cents 
per kilowatt-hour) and natural gas (81.6 cents per therm) that were 
published by DOE on April 9, 2003 (68 FR 17361) and by the Commission 
on May 5, 2003 (68 FR 23584).The new range for compact models will 
become effective February 23, 2004. Manufacturers may begin using the 
new range before that date.\5\
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    \5\ The Commission notes that recent amendments to the clothes 
washer label require advisory language related to the new test 
procedure on labels for all models produced beginning January 1, 
2004 (see 68 FR 36458 (June 18, 2003)).
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III. Administrative Procedure Act

    The amendments published in this notice 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 and cost information required on EnergyGuide labels. 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)).

IV. 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.

V. Paperwork Reduction Act

    In a June 13, 1998 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.\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.
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    \6\ 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.

0
Accordingly, 16 CFR part 305 is amended as follows:

PART 305--[AMENDED]

0
1. The authority citation for part 305 continues to read as follows:

    Authority: 42 U.S.C. 6294.

Appendix F--[Removed]

0
2. Appendix F to part 305 is removed.

0
3. Appendices F1 and F2 to part 305 are added to read as follows:

Appendix F1 to Part 305--Standard Clothes Washers

Range Information

    ``Standard'' includes all household clothes washers with a tub 
capacity of 1.6 cu. ft or 13 gallons of water or more.

------------------------------------------------------------------------
                                                            Range of
                                                        estimated annual
                                                             energy
                       Capacity                            consumption
                                                            (kWh/yr.)
                                                       -----------------
                                                          Low      High
------------------------------------------------------------------------
Standard..............................................      177     1298
------------------------------------------------------------------------

Cost Information

    When the above range of comparability is used on EnergyGuide 
labels for standard clothes washers, the estimated annual operating 
cost disclosure appearing in the box at the bottom of the labels 
must be derived using the 2000 Representative Average Unit Costs for 
electricity (8.03[cent] per kiloWatt-hour) and natural gas 
(68.8.6[cent] per therm), and the text below the box must identify 
the costs as such.

Appendix F2 to Part 305--Compact Clothes Washers

Range Information

    ``Compact'' includes all household clothes washers with a tub 
capacity of less than 1.6 cu. ft. or 13 gallons of water.

------------------------------------------------------------------------
                                                            Range of
                                                        estimated annual
                                                             energy
                       Capacity                            consumption
                                                            (kWh/yr.)
                                                       -----------------
                                                          Low      High
------------------------------------------------------------------------
Compact...............................................      350      653
------------------------------------------------------------------------

Cost Information

    When the above range of comparability is used on EnergyGuide 
labels for compact clothes washers, the estimated annual operating 
cost disclosure appearing in the box at the bottom of the labels 
must be derived using the 2003 Representative Average Unit Costs for 
electricity (8.41[cent] per kiloWatt-hour) and natural gas 
(81.6[cent] per therm), and the text below the box must identify the 
costs as such.


[[Page 65835]]


    By Direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 03-29102 Filed 11-21-03; 8:45 am]
BILLING CODE 6750-01-M