[Federal Register Volume 69, Number 84 (Friday, April 30, 2004)]
[Rules and Regulations]
[Pages 23650-23653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9847]


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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'') revises Table 1 
in section 305.9 of the Commission's Appliance Labeling Rule (``Rule'') 
to incorporate the latest figures for average unit energy costs as 
published by the Department of Energy

[[Page 23651]]

(``DOE'') in the Federal Register on January 27, 2004. Table 1 sets 
forth the representative average unit energy costs for five residential 
energy sources, which the Commission revises periodically on the basis 
of updated information provided by DOE.

DATES: The amendments published in this document are effective April 
30, 2004. The mandatory dates for using these revised DOE cost figures 
in connection with the Appliance Labeling Rule are detailed in the 
SUPPLEMENTARY INFORMATION Section, below.

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

SUPPLEMENTARY INFORMATION: On November 19, 1979, the Commission issued 
a final rule in response to a directive in section 324 of the Energy 
Policy and Conservation Act (``EPCA''), 42 U.S.C. 6201. The Rule 
requires the disclosure of energy efficiency, consumption, or cost 
information on labels and in retail sales catalogs for eight categories 
of appliances, and mandates that the energy costs, consumption, or 
efficiency ratings be based on standardized test procedures developed 
by DOE. The cost information obtained by following the test procedures 
is derived by using the representative average unit energy costs 
provided by DOE. Table 1 in section 305.9(a) of the Rule sets forth the 
representative average unit energy costs to be used for all cost-
related requirements of the Rule. As stated in section 305.9(b), the 
Table is to be revised periodically on the basis of updated information 
provided by DOE. Additional information about the Commission's 
Appliance Labeling Rule can be found at www.ftc.gov/appliances.

I. Representative Average Unit Energy Costs

    On January 27, 2004, DOE published the most recent figures for 
representative average unit energy costs (69 FR 3907). These energy 
cost figures are for manufacturers to use, in accordance with the 
guidelines that appear below, to calculate the required secondary 
annual operating cost figures at the bottom of required EnergyGuides 
for refrigerators, refrigerator-freezers, freezers, dishwashers, 
clothes washers, water heaters, and room air conditioners. The energy 
cost figures also are for manufacturers of central air conditioners and 
heat pumps to use, also in accordance with the below guidelines, to 
calculate annual operating cost for required fact sheets and in 
approved industry directories listing these products.\1\ The Commission 
is revising Table 1 to reflect these latest cost figures, as set forth 
below. The current and future obligations of manufacturers with respect 
to the use of DOE's cost figures are as follows:
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    \1\ The DOE cost figures are not necessary for making data 
submissions to the Commission. The required energy use information 
that manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, and water heaters must 
submit under section 305.8 of the Rule is no longer operating cost; 
it is now energy consumption (kilowatt-hour use per year for 
electricity, therms per year for natural gas, or gallons per year 
for propane and oil).
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A. Labeling of Refrigerators, Refrigerator-Freezers, Freezers, Clothes 
Washers, Dishwashers, Water Heaters, and Room Air Conditioners \2\

    Manufacturers must continue to use the DOE cost figures that were 
published and in effect the year the ranges of comparability last 
changed for the applicable covered product. The cost figures currently 
applicable to each product category are detailed below. Manufacturers 
must continue to use these figures until new ranges of comparability 
for an applicable product are published by the Commission in the 
future. For example, if the ranges of comparability for a given product 
last changed in the year 2001, manufacturers should continue to use the 
2001 DOE energy cost figures until the Commission announces otherwise.
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    \2\ Sections 305.11(a)(5)(i)(H)(2) and (3) of the Rule (16 CFR 
305.11(a)(5)(i)(H)(2) and (3)) require that labels for 
refrigerators, refrigerator-freezers, freezers, clothes washers, 
dishwashers, water heaters, and room air conditioners contain a 
secondary energy usage disclosure in terms of an estimated annual 
operating cost (labels for clothes washers and dishwashers will show 
two such secondary disclosures--one based on operation with water 
heated by natural gas, and one on operation with water heated by 
electricity). The labels also must disclose, below this secondary 
estimated annual operating cost, the fact that the estimated annual 
operating cost is based on the appropriate DOE energy cost figure, 
and must identify the year in which the cost figure was published.
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1. Refrigerators, Refrigerator-Freezers, and Freezers
    Manufacturers of refrigerators, refrigerator-freezers, and freezers 
must continue to derive the operating cost disclosures on labels by 
using the 2001 Average Representative Unit Costs (8.29 cents per 
kiloWatt-hour for electricity) published by DOE on March 8, 2001 (66 FR 
13917), and by the Commission on May 21, 2001 (66 FR 27856), that were 
in effect when the current 2001 ranges of comparability for these 
products were published.\3\ Manufacturers must continue to use the 
foregoing DOE cost figures until the Commission publishes new ranges of 
comparability and states that operating cost disclosures must be based 
on the DOE cost figure for electricity then in effect.
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    \3\ The current (2001) ranges for refrigerators, refrigerator-
freezers, and freezers were published on November 19, 2001 (66 FR 
57867). On November 23, 2003 (68 FR 65631), the Commission announced 
that the 2001 ranges for these products would remain in effect.
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2. Room Air Conditioners
    Manufacturers of room air conditioners must continue to derive the 
operating cost disclosures on labels by using the 1995 Average 
Representative Unit Costs for electricity (8.67 cents per kiloWatt-
hour) that were published by DOE on January 5, 1995 (60 FR 1773), and 
by the Commission on February 17, 1995 (60 FR 9296), and that were in 
effect when the current (1995) ranges of comparability for these 
products were published.\4\ Manufacturers of room air conditioners must 
continue to use the 1995 DOE cost figures until the Commission 
publishes new ranges of comparability and states that operating cost 
disclosures must be based on the DOE cost figure for electricity then 
in effect.
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    \4\ The current (1995) ranges for room air conditioners were 
published on November 13, 1995 (60 FR 56945). On June 27, 2003 (68 
FR 38175), the Commission announced that the 2004 ranges for room 
air conditioners would remain in effect.
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3. Storage-Type Water Heaters
    Manufacturers of storage-type water heaters must continue to derive 
the operating cost on labels using the 1994 DOE cost figures (8.41 
cents per kiloWatt-hour for electricity, 60.4 cents per therm for 
natural gas, $1.05 per gallon for No. 2 heating oil, and 98.3 cents per 
gallon for propane), that were in effect when the 1994 ranges of 
comparability for storage-type water heaters were published.\5\ 
Manufacturers of storage-type water heaters must continue to use the 
1994 DOE cost figures until the Commission publishes new ranges of 
comparability and states that operating cost disclosures must be based 
on the DOE cost figures for energy then in effect.
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    \5\ The 1994 DOE cost figures were published by DOE on December 
29, 1993 (58 FR 68901), and by the Commission on February 8, 1994 
(59 FR 5699). The current (1994) ranges of comparability for 
storage-type water heaters were published on September 23, 1994 (59 
FR 48796). On June 27, 2003 (68 FR 38175), the Commission announced 
that the 1994 ranges for storage-type water heaters would remain in 
effect.
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4. Heat Pump Water Heaters
    Manufacturers of heat pump water heaters must continue to derive 
the operating cost disclosures on labels by using the 2002 Average 
Representative

[[Page 23652]]

Unit Costs for electricity (8.28 cents per kiloWatt-hour) that were 
published by DOE on April 24, 2002 (67 FR 20104), and by the Commission 
on June 7, 2002 (67 FR 39269), and that were in effect when the current 
(2002) ranges of comparability for these products were published.\6\ 
Manufacturers of heat pump water heaters must continue to use the 2002 
DOE cost figures until the Commission publishes new ranges of 
comparability and states that operating cost disclosures must be based 
on the DOE cost figure for electricity then in effect.
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    \6\ The current (2002) ranges of comparability for heat pump 
water heaters were published on June 24, 2002 (67 FR 42478). On June 
27, 2003 (68 FR 38175), the Commission announced that the 1994 
ranges for heat pump water heaters would remain in effect.
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5. Gas-Fired Instantaneous Water Heaters
    Manufacturers of gas-fired instantaneous water heaters must 
continue to base the required secondary operating cost disclosures on 
labels on the 1999 Average Representative Unit Costs for natural gas 
(68.8 cents per therm) and propane (77 cents per therm) that were 
published by DOE on January 5, 1999 (64 FR 487), and by the Commission 
on February 17, 1999 (64 FR 7783), and that were in effect when the 
1999 ranges of comparability for these products were published.\7\ 
Manufacturers must continue to use the 1999 DOE cost figures until the 
Commission publishes new ranges of comparability and states that 
operating cost disclosures must be based on the DOE cost figures for 
natural gas and propane then in effect.
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    \7\ The current ranges for gas-fired instantaneous water heaters 
were published on December 20, 1999 (64 FR 71019). On June 27, 2003 
(68 FR 38175), the Commission announced that the 1999 ranges for 
gas-fired instantaneous water heaters would remain in effect.
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6. Dishwashers
    Manufacturers of compact dishwashers must continue to base the 
required secondary operating cost disclosures on labels on the 2002 
Average Representative Unit Costs for electricity (8.28 cents per 
kiloWatt-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), and that were in effect when the 2002 
ranges of comparability for these products were published. 
Manufacturers of standard dishwashers 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).\8\ Manufacturers of dishwashers must continue to use these 
cost figures until the Commission publishes new ranges of comparability 
and states that operating cost disclosures must be based on the DOE 
cost figures for electricity and natural gas then in effect.
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    \8\ The current ranges for compact dishwashers were published on 
July 19, 2002 (67 FR 47443). The current ranges for standard 
dishwashers were published on August 11, 2003 (68 FR 47449).
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7. Clothes Washers
    Manufacturers of compact clothes washers must base the disclosures 
of estimated annual operating cost required at the bottom of 
EnergyGuide labels dfor 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). Manufacturers of standard clothes washers 
must continue to derive the operating cost disclosures on labels by 
using the 2000 Average Representative Unit Costs for electricity (8.03 
cents per kiloWatt-hour) and natural gas (68.8 cents per therm) that 
were published by DOE on February 7, 2000 (65 FR 5860), and by the 
Commission on April 17, 2000 (65 FR 20352), and that were in effect 
when the current (2000) ranges of comparability for these products were 
published.\9\ Manufacturers of clothes washers must continue to use the 
2000 DOE cost figures until the Commission publishes new ranges of 
comparability and states that operating cost disclosures must be based 
on the DOE cost figures for electricity and natural gas then in effect.
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    \9\ The current (2003) ranges of comparability for compact 
clothes washers were published on November 24, 2003 (68 FR 65833). 
The current (2000) ranges of comparability for standard clothes 
washers were published on May 11, 2000 (65 FR 30351).
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B. Operating Cost Information for Central Air Conditioners and Heat 
Pumps Disclosed on Fact Sheets and in Industry Directories

    In the 2004 document announcing whether there will be new ranges of 
comparability for central air conditioners and heat pumps, the 
Commission also will announce that operating cost disclosures for these 
products on fact sheets and in industry directories must be based on 
the 2003 DOE cost figure for electricity beginning on the effective 
date of that document.

C. Operating Cost Representations for Products Covered by EPCA But Not 
by the Commission's Rule

    Manufacturers of products covered by section 323(c) of EPCA, 42 
U.S.C. 6293(c), but not by the Appliance Labeling Rule (clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters) must use 
the 2004 DOE energy costs in all operating cost representations 
beginning July 29, 2004.

II. Administrative Procedure Act

    The amendments published in this document involve routine, 
technical and minor, or conforming changes to the Rule's labeling 
requirements. These technical amendments merely provide a routine 
change to the cost information in the Rule. Accordingly, the Commission 
finds for good cause that public comment and a 30-day effective date 
for these technical, procedural amendments are impractical and 
unnecessary (5 U.S.C. 553(b)(A)(B) and (d)).

III. 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 cost 
information in 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.

IV. Paperwork Reduction Act

    In a 1988 document (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.\10\ 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.

[[Page 23653]]

3084-0068. OMB has 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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    \10\ 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.

PART 305 [AMENDED]

0
Accordingly, 16 CFR Part 305 is amended as follows:
0
1. The authority citation for Part 305 continues to read as follows:

    Authority: 42 U.S.C. 6294.


0
2. Section 305.9(a) is revised to read as follows:


Sec.  305.9  Representative average unit energy costs.

    (a) Table 1, below, contains the representative unit energy costs 
to be utilized for all requirements of this part.

        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (2004)
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                                                                                                    Dollars per
             Type of energy                 In commonly used terms      As required by DOE test     million Btu
                                                                               procedure                \1\
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Electricity.............................  8.60 [cent]/kWh 2, 3......  $0.0860/kWh...............           25.20
Natural Gas.............................  91.0 [cent]/therm \4\ or     0.00000910/Btu...........            9.10
                                           $9.35/MCF \5,\ \6\.
No. 2 heating oil.......................  $1.28/gallon \7\..........   0.00000923/Btu...........            9.23
Propane.................................  $1.23/gallon \8\..........   0.00001346/Btu...........           13.46
Kerosene................................  $1.54/gallon \9\..........   0.00001141/Btu...........          $11.41
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\1\ Btu stands for British thermal unit.
\2\ kWh stands for kiloWatt hour.
\3\ 1 kWh = 3,412 Btu.
\4\ 1 therm = 100,000 Btu. Natural gas prices include taxes.
\5\ MCF stands for 1,000 cubic feet.
\6\ For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,027 Btu.
\7\ For the purposes of this table, 1 gallon of No. 2 heating oil has an energy equivalence of 138,690 Btu.
\8\ For the purposes of this table, 1 gallon of liquid propane has an energy equivalence of 91,333 Btu.
\9\ For the purposes of this table, 1 gallon of kerosene has an energy equivalence of 135,000 Btu.

* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-9847 Filed 4-29-04; 8:45 am]
BILLING CODE 6750-01-P