[Federal Register Volume 69, Number 174 (Thursday, September 9, 2004)]
[Rules and Regulations]
[Pages 54558-54561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20404]


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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 standard and compact 
dishwashers. The Commission also announces that the current ranges of 
comparability for central air conditioners and heat pumps will remain 
in effect until further notice. The Commission amends the portions of 
Appendices H (Cooling Performance and Cost for Central Air 
Conditioners) and I (Heating Performance and Cost for Central Air 
Conditioners) to reflect the current (2004) Representative Average Unit 
Cost of Electricity. Finally, the Commission is making a minor 
correction to the water heater range tables published on July 14, 2004 
(69 FR 42107).

DATES: Effective Date: The amendments announced in this document will 
become effective December 8, 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,

[[Page 54559]]

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 
and central air conditioners.
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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. 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 dishwashers are due June 1. Reports for central 
air conditioners and heat pumps are due July 1.
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I. 2004 Dishwasher Ranges

    The Commission has analyzed the annual data submissions for 
dishwashers. The data submissions show a significant change in the 
ranges of comparability for standard and compact models.\3\ 
Accordingly, the Commission is publishing new ranges of comparability 
for standard and compact dishwashers in Appendices C1 and C2 of the 
Rule. The new ranges of comparability for dishwashers supersede the 
current ranges, which were published on August 11, 2003 (68 FR 47449) 
(standard dishwashers) and July 19, 2002 (67 FR 47443) (compact 
dishwashers).
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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.
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    Dishwasher manufacturers must base the disclosures of estimated 
annual operating cost required at the bottom of EnergyGuide labels for 
dishwashers on the 2004 Representative Average Unit Costs of Energy for 
electricity (8.60 cents per kiloWatt-hour) and natural gas (91.0 cents 
per therm) that were published by DOE on January 27, 2004 (69 FR 3907) 
and by the Commission on April 30, 2004 (69 FR 23651). The new ranges 
for standard and compact models will become effective December 8, 2004. 
Manufacturers may begin using the new ranges before that date.

II. 2004 Central Air Conditioner and Heat Pump Information

    The annual submissions of data for central air conditioners and 
heat pumps have been made to the Commission. The ranges of 
comparability for central air conditioners and heat pumps have not 
changed by more than 15% from the current ranges for these products. 
Therefore, the current ranges for these products, which were published 
on September 16, 1996 (61 FR 48620), will remain in effect until 
further notice.

III. Cost Figures for Central Air Conditioner and Heat Pump Fact Sheets

    The Commission is amending the cost calculation formulas in 
Appendices H and I to Part 305 that manufacturers of central air 
conditioners and heat pumps must include on fact sheets and in 
directories to reflect this year's energy costs figures published by 
DOE. These routine amendments will become effective December 8, 2004.

IV. Minor Correction to Appendix D4 Table

    The Commission is also publishing a minor correction to Appendix D4 
(Water Heaters--Instantaneous--Range Information). As part of recent 
amendments to the water heater ranges (69 FR 42107 (July 14, 2004)), 
``first hour rating'' was inadvertently inserted into Appendix D4 as 
the applicable capacity descriptor for instantaneous water heaters. The 
correct descriptor is ``Capacity (maximum flow rate); gallons per 
minute (gpm).''

V. 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 and fact 
sheets. 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)).

VI. 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.

VII. Paperwork Reduction Act

    In a June 13, 1988 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.\4\ The 
Commission noted that the Rule had been reviewed and approved in 1984 
by the Office of Management and Budget

[[Page 54560]]

(``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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    \4\ 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.


0
2. Appendix C1 to Part 305 is revised to read as follows:

Appendix C1 to Part 305--Compact Dishwashers

Range Information

    ``Compact'' includes countertop dishwasher models with a 
capacity of fewer than eight (8) place settings. Place settings 
shall be in accordance with appendix C to 10 CFR part 430, subpart 
B. Load patterns shall conform to the operating normal for the model 
being tested.

------------------------------------------------------------------------
                                             Range of estimated annual
                                           energy consumption (kWh/yr.)
                Capacity                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
Compact.................................             176             247
------------------------------------------------------------------------

Cost Information

    When the above ranges of comparability are used on EnergyGuide 
labels for compact-sized dishwashers, 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) and natural gas 
(91.0[cent] per therm), and the text below the box must identify the 
costs as such.


0
3. Appendix C2 to Part 305 is revised to read as follows:

Appendix C2 to Part 305--Standard Dishwashers

Range Information

    ``Standard'' includes portable or built-in dishwasher models 
with a capacity of eight (8) or more place settings. Place settings 
shall be in accordance with appendix C to 10 CFR part 430, subpart 
B. Load patterns shall conform to the operating normal for the model 
being tested.

------------------------------------------------------------------------
                                             Range of estimated annual
                                           energy consumption (kWh/yr.)
                Capacity                 -------------------------------
                                                Low            High
------------------------------------------------------------------------
Standard................................             194             531
------------------------------------------------------------------------

Cost Information

    When the above ranges of comparability are used on EnergyGuide 
labels for standard-sized dishwashers, 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) and natural gas 
(91.0[cent] per therm), and the text below the box must identify the 
costs as such.


0
4. The table in Appendix D4 to Part 305 is revised to read as follows:
* * * * *

Appendix D4 to Part 305--Water Heaters-Instantaneous-Gas

Range Information

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                                                   Range of estimated annual energy consumption  (therms/yr. and
                                                                           gallons/ yr.)
Capacity (maximum flow rate); gallons per minute ---------------------------------------------------------------
                      (gpm)                           Natural gas therms/yr.            Propane gallons/yr.
                                                 ---------------------------------------------------------------
                                                        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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0
5. In section 2 of Appendix H of Part 305, the text is amended by 
removing the figure ``8.41[cent]'' wherever it appears and by adding, 
in its place, the figure ``8.60[cent]''. In addition, the text in this 
section is amended by removing the figure ``12.62[cent]'' wherever it 
appears and by adding, in its place, the figure ``12.90[cent]''. And 
the formula is revised to read as follows in both places that it 
appears:

Appendix H to Part 305--Cooling Performance and Cost for Central Air 
Conditioners

* * * * *
[GRAPHIC] [TIFF OMITTED] TR09SE04.007

* * * * *

0
6. In section 2 of Appendix I of Part 305, the text is amended by 
removing the figure ``8.41[cent]'' wherever it appears and by adding, 
in its place, the figure ``8.60[cent]''. In addition, the text and 
formulas are amended by removing the figure ``12.62[cent]'' wherever it 
appears and by adding, in its place, the figure ``12.90[cent]''. And 
the formula is revised to read as follows in both places that it 
appears:

Appendix I to Part 305--Heating Performance and Cost for Central Air 
Conditioners

* * * * *
[GRAPHIC] [TIFF OMITTED] TR09SE04.008


[[Page 54561]]


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0
7. Appendix L is amended by revising Sample Label 4 of Part 305 to read 
as follows:
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BILLING CODE 6750-01-P
[GRAPHIC] [TIFF OMITTED] TR09SE04.000

* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-20404 Filed 9-8-04; 8:45 am]
BILLING CODE 6750-50-C