[Federal Register Volume 70, Number 17 (Thursday, January 27, 2005)]
[Rules and Regulations]
[Pages 3874-3878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1498]


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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 and standard-
sized clothes washers. The Commission is also making several technical 
corrections to language in the Rule related to clothes washers and 
dishwashers.

EFFECTIVE DATE: The amendments announced in this document will become 
effective on April 27, 2005.

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 
clothes washers.
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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 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. 2004 Clothes Washer Ranges

    The Commission has analyzed the 2004 annual data submissions for 
clothes washers. The data submissions show a significant change in the 
range of comparability scale for both compact and standard-size clothes 
washers. Accordingly, the Commission is publishing new ranges of 
comparability for clothes washers in Appendix F1 and Appendix F2 of the 
Rule.\3\
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    \3\ In 2003, the Commission published amendments to the clothes 
washer label to require advisory language related to the new test 
procedure on labels for all models produced beginning on January 1, 
2004 (see 68 FR 36458 (June 18, 2003)). The data submitted to FTC 
this year reflects the results of the new test procedure (10 CFR 
Part 430, Subpt. B, App. J1).
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    In addition to using these new ranges, manufacturers of clothes 
washers must now base the disclosures of estimated annual operating 
cost required at the bottom of EnergyGuide labels for clothes washers 
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 23650). The new ranges will become 
effective April 27, 2005. Manufacturers may begin using the new ranges 
before that date.
    The Commission is also making a minor correction to the capacity 
designations in Appendices F1 and F2.

[[Page 3875]]

The Rule currently indicates that a standard model has a tub capacity 
of 1.6 cu. ft. or 13 gallons of water or more. Although the 1.6 cu. ft. 
figure accurately reflects DOE requirements (see 10 CFR part 430, 
subpart B, App. J1), the reference to 13 gallons reflects an incorrect 
conversion of cubic feet to gallons. In addition, this reference to 
gallons is irrelevant for labeling purposes (see 16 CFR 305.7(g)) and 
may cause confusion for manufacturers.
    Accordingly, the Commission is amending Appendices F1 and F2 to 
eliminate the reference to gallons. The Commission is also updating the 
language in section 305.7(g) to reflect the new DOE test procedure at 
10 CFR part 430 subpart B, App. J1 and to eliminate the irrelevant 
reference to gallons.

III. Minor Correction to Sample Dishwasher Label

    The Commission is also amending Sample Label 4 in Appendix L to 
remove language that was inadvertently included in amendments issued on 
September 9, 2004. A portion of the explanatory language on the sample 
label incorrectly read: ``Based on four wash loads a week using the 
normal cycle and a 2004 U.S. Government national average cost of 
8.60[cent] per kWh for electricity and 91.0[cent] per therm for natural 
gas.'' The correct statement as required by section 305.11(a)(5)(H)(2) 
of the Rule is: ``Based on four wash loads a week and a 2004 U.S. 
Government national average cost of 8.60[cent] per kWh for electricity 
and 91.0[cent] per therm for natural gas.''

IV. Administrative Procedure Act

    The amendments published in this notice involve routine, technical 
or minor corrective 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)).

V. 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 under 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.

VI. 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 (``OMB'') and assigned OMB 
Control No. 3084-0068. OMB has extended its approval for its 
recordkeeping and reporting requirements until December 31, 2007. 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. In Sec.  305.7, paragraph (g) is revised to read as follows:


Sec.  305.7  Determinations of capacity.

* * * * *
    (g) Clothes washers. The capacity shall be the tub capacity as 
determined according to appendix J1 to 10 CFR part 430, subpart B, in 
the terms ``standard'' or ``compact'' as defined in appendix J1.
* * * * *

0
3. Appendix F1 to part 305 is revised 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 more.

------------------------------------------------------------------------
                                                    Range of estimated
                                                       annual energy
                    Capacity                       consumption (kWh/yr.)
                                                 -----------------------
                                                      Low        High
------------------------------------------------------------------------
Standard........................................        113         680
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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 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. Appendix F2 to part 305 is revised to read as follows:

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.

------------------------------------------------------------------------
                                                    Range of estimated
                                                       annual energy
                    Capacity                       consumption (kWh/yr.)
                                                 -----------------------
                                                      Low        High
------------------------------------------------------------------------
Compact.........................................        125         223
------------------------------------------------------------------------

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 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
5. Appendix L to part 305 is amended by revising Prototype Label 2, 
Sample Label 3, and Sample Label 4 to read as follows:

Appendix L to Part 305--Sample Labels

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BILLING CODE 6750-01-C
* * * * *

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05-1498 Filed 1-26-05; 8:45 am]
BILLING CODE 6750-01-P