[Federal Register Volume 69, Number 134 (Wednesday, July 14, 2004)]
[Rules and Regulations]
[Pages 42107-42112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15924]


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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 new ranges 
of comparability for storage-type water heaters, gas-fired 
instantaneous water heaters, and heat pump water heaters. The 
Commission also announces that the current ranges of comparability 
required by the Appliance Labeling Rule (Rule) for room air 
conditioners, furnaces, boilers, and pool heaters will remain in effect 
until further notice.

DATES: Effective Date: October 12, 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.\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 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

[[Page 42108]]

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 
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\ Annual 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 2004 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 water heaters have changed significantly this year. 
Accordingly, the Commission is amending the ranges in Appendices D1 
through D5 of the Rule which cover storage-type water heaters (natural 
gas, propane, electric, and oil), gas-fired instantaneous water 
heaters, and heat pump water heaters. Water heater manufacturers should 
now base the disclosures of estimated annual operating costs required 
at the bottom of the EnergyGuides for these products on the 2004 
Representative Average Unit Costs of Energy for electricity (8.60 cents 
per kiloWatt-hour), natural gas (91.0 cents per therm), propane ($1.23 
per gallon), and/or heating oil ($1.28 per gallon) that were published 
by the Commission on April 30, 2004 (69 FR 23650).
    The ranges of comparability for room air conditioners, furnaces, 
boilers, and pool heaters 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. 
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 kiloWatt-hour) that was published 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
For the reasons set forth in the preamble, FTC is amending 16 CFR part 
305 as follows:

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'')

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

    Authority: 42 U.S.C. 6294.

0
2. Appendices D1 through D5 to Part 305 are revised to read as follows:

                                   Appendix D1 to Part 305--Water Heaters--Gas
                                               [Range information]
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                    Capacity                       Range of estimated annual energy consumption  (therms/yr. and
-------------------------------------------------                          gallons/yr.)
                                                 ---------------------------------------------------------------
                                                      Natural gas therms/yr.            Propane gallons/yr.
                First hour rating                ---------------------------------------------------------------
                                                        Low            High             Low            High
----------------------------------------------------------------------------------------------------------------
Less than 21....................................             (*)             (*)             (*)             (*)
21 to 24........................................             (*)             (*)             (*)             (*)
25 to 29........................................             (*)             (*)             (*)             (*)
30 to 34........................................             (*)             (*)             (*)             (*)
35 to 40........................................             (*)             (*)             (*)             (*)
41 to 47........................................             (*)             (*)             (*)             (*)
48 to 55........................................             234             254             256             278
56 to 64........................................             246             254             269             278
65 to 74........................................             234             258             256             283
75 to 86........................................             230             272             256             288
87 to 99........................................             242             272             265             288
100 to 114......................................             230             283             252             298
115 to 131......................................             242             312             265             309
Over 131........................................             254             312             278            342
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* No data submitted.


[[Page 42109]]


            Appendix D2 to Part 305--Water Heaters--Electric
                           [Range information]
------------------------------------------------------------------------
                Capacity                     Range of estimated annual
-----------------------------------------  energy consumption  (KWh/yr.)
                                         -------------------------------
            First hour rating                   Low            High
------------------------------------------------------------------------
Less than 21............................             (*)             (*)
21 to 24................................             (*)             (*)
25 to 29................................            4721            4721
30 to 34................................            4721            4773
35 to 40................................            4671            4934
41 to 47................................            4671            4990
48 to 55................................            4622            4879
56 to 64................................            4622            4879
65 to 74................................            4671            4934
75 to 86................................            4622            5106
87 to 99................................            4773            5166
100 to 114..............................            4825            5421
115 to 131..............................            5106            5355
Over 131................................             (*)            (*)
------------------------------------------------------------------------
* No data submitted.


               Appendix D3 to Part 305--Water Heaters--Oil
                           [Range information]
------------------------------------------------------------------------
                Capacity                     Range of estimated annual
-----------------------------------------  energy consumption  (gallons/
                                                       yr.)
            First hour rating            -------------------------------
                                                Low             High
------------------------------------------------------------------------
Less than 65............................             (*)             (*)
65 to 74................................             (*)             (*)
75 to 86................................             (*)             (*)
87 to 99................................             (*)             (*)
100 to 114..............................             174             200
115 to 131..............................             159             200
Over 131................................             164            212
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* No data submitted.


                            Appendix D4 to Part 305--Water Heaters--Instantaneous-Gas
                                               [Range information]
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                    Capacity                       Range of estimated annual energy consumption  (therms/yr. and
-------------------------------------------------                          gallons/ yr.)
                                                 ---------------------------------------------------------------
                                                      Natural Gas therms/yr.            Propane gallons/yr.
                First hour rating                ---------------------------------------------------------------
                                                        Low            High             Low            High
----------------------------------------------------------------------------------------------------------------
Under 1.00......................................             235             235             256             256
1.00 to 2.00....................................             230             230             252             252
2.01 to 3.00....................................             185             220             196             239
Over 3.00.......................................             177             238             187            260
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* No data submitted.


            Appendix D5 to Part 305--Water Heaters--Heat Pump
                           [Range information]
------------------------------------------------------------------------
                Capacity                     Range of estimated annual
-----------------------------------------  energy consumption  (KWh/Yr.)
                                         -------------------------------
            First hour rating                   Low            High
------------------------------------------------------------------------
Less than 21............................             (*)             (*)
21 to 24................................             (*)             (*)
25 to 29................................             (*)             (*)
30 to 34................................             (*)             (*)
35 to 40................................             (*)             (*)
41 to 47................................             (*)             (*)

[[Page 42110]]

 
48 to 55................................             (*)             (*)
56 to 64................................            1830            1830
65 to 74................................             (*)             (*)
75 to 86................................             (*)             (*)
87 to 99................................             (*)             (*)
100 to 114..............................             (*)             (*)
115 to 131..............................             (*)             (*)
Over 131................................             (*)            (*)
------------------------------------------------------------------------
* No data submitted.

Cost Information

    When the above ranges of comparability in Appendices D1 through 
D5 are used on EnergyGuide labels for water heaters, the estimated 
annual operating cost disclosure appearing in the box at the bottom 
of the labels must be derived using the 2004 Representative Average 
Unit Costs for electricity (8.60[cent] per kiloWatt-hour), natural 
gas (91.0[cent] per therm), propane ($1.23 per gallon, and heating 
oil ($1.28 per gallon) and the text below the box must identify the 
costs as such.


0
3. Appendix L is amended by revising Prototype Label 3 and Sample Label 
5 of part 305 to read as follows:
* * * * *
BILLING CODE 6750-01-P
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.

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[FR Doc. 04-15924 Filed 7-13-04; 8:45 am]
BILLING CODE 6750-01-C