[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Rules and Regulations]
[Pages 32484-32487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11026]


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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 that 
the current ranges of comparability required by the Appliance Labeling 
Rule (``Rule'') for water heaters, room air conditioners, furnaces, 
boilers, and pool heaters will remain in effect until further notice. 
In addition, the Commission is revising Table 1 in Sec.  305.9 of the 
Rule to incorporate the latest figures for average unit energy costs 
published by the Department of Energy (``DOE'') this year and to update 
cost figures in Appendices H and I of the Rule. The Commission is also 
making technical amendments to Sec.  305.9 and Appendix E of the Rule 
to clarify the applicability of the cost figures in Table 1 to products 
covered by the Rule.

[[Page 32485]]


DATES: The amendments published in this notice are effective September 
1, 2005.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, 202-326-
2889, Division of Enforcement, Bureau of Consumer Protection, Federal 
Trade Commission, Washington, DC 20580.

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 manufacturers of all covered appliances (e.g., water heaters 
and room air conditioners) to disclose specific energy consumption or 
efficiency information derived from standard DOE test procedures at the 
point of sale in the form of an ``EnergyGuide'' label and in catalogs. 
It also requires manufacturers of furnaces and central air conditioners 
either to provide fact sheets showing additional cost information, or 
to provide that information in an industry directory. Manufacturers 
must include, on labels and fact sheets, a ``range of comparability'' 
which shows the highest and lowest energy consumption or efficiencies 
for all comparable appliance models. The Rule further requires that 
labels for some products display the estimated annual operating cost of 
the product 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 notification, to report certain information annually to the 
Commission by specified dates for each product type.\1\ Each year the 
Commission reviews the submitted data and publishes new ranges of 
comparability if an analysis of the new information indicates that the 
upper or lower limits of the ranges have changed by more than 15%. 
Additional information about the Commission's Appliance Labeling Rule 
can be found at www.ftc.gov/appliances.
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    \1\ 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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I. Review of 2005 Data Submissions (Room Air Conditioners, Water 
Heaters, Furnaces, and Pool Heaters)

    Manufacturers have submitted data for water heaters (including 
storage-type, gas-fired instantaneous, and heat pump water heaters), 
room air conditioners, furnaces (including boilers), and pool heaters. 
The ranges of comparability for these products have not changed 
significantly. Therefore, the current ranges for these products will 
remain in effect until further notice.
    Water heater manufacturers should continue to 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[cent] per kiloWatt-hour), natural 
gas (91.0[cent] per therm), propane ($1.23 per gallon), and/or heating 
oil ($1.28 per gallon) (see 69 FR 42107 (July 14, 2004)).
    Manufacturers of room air conditioners must continue to use the 
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[cent] per kiloWatt-hour) that was published by the Commission on 
February 17, 1995 (60 FR 9295). The Commission is amending Appendix E 
(range information for room air conditioners) to clarify that this cost 
figure is applicable to room air conditioner labels.

II. Amendments to Table 1 and Section 305.9(a)

A. Table 1

    Table 1 in Sec.  305.9(a) of the Rule sets forth the representative 
average unit energy costs for the current year. As stated in Sec.  
305.9(b), the Table is to be revised periodically on the basis of 
updated information provided by DOE. On March 11, 2005, DOE published 
the most recent figures for representative average unit energy costs 
(70 FR 12210). The Commission is revising Table 1 in Sec.  305.9 to 
reflect these latest cost figures.

B. Section 305.9(a)

    In addition to revising the cost information in Table 1, the 
Commission is amending Sec.  305.9(a) to clarify the applicability of 
that information to the Rule's requirements. Section 305.9(a) states 
that the representative unit energy costs in Table 1 should ``be 
utilized for all requirements of this part.'' The Commission is 
changing this language because the cost data in Table 1 do not 
necessarily apply to all the Rule's requirements. Although the cost 
data apply to fact sheets and directories for furnaces and central air 
conditioners under Sec.  305.11(b) and (c), manufacturers should not 
necessarily use the Table for calculating operating costs on 
EnergyGuide labels. Instead, as the Commission has routinely stated in 
the past when annually updating the cost figures,\2\ manufacturers 
preparing EnergyGuide labels should use the cost figure that was 
applicable when the most recent ranges of comparability were published. 
For example, if the Commission published ranges of comparability for a 
given product in 2001, manufacturers should continue to use the 2001 
DOE energy cost figures until the Commission announces otherwise. 
Paragraphs accompanying the range tables in the Rule's appendices 
contain the applicable operating costs that should be used on 
EnergyGuide labels for refrigerators, refrigerator-freezers, freezers, 
dishwashers, clothes washers, water heaters, and room air conditioners. 
The Commission is changing the language in Sec.  305.9(a) to clarify 
that, for purposes of Appliance Labeling Rule compliance, the costs in 
Table 1 apply to disclosures on fact sheets and in directories for 
furnaces and central air conditioners as required by Sec.  305.11(b) 
and (c). This amendment should eliminate any confusion caused by the 
current language.
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    \2\ e.g., 68 FR 23584 (May 5, 2003), 67 FR 39269 (June 7, 2002), 
64 FR 7783 (Feb. 17, 1999), 62 FR 5316 (Feb. 5, 1997), 60 FR 9295 
(Feb. 17, 1995), and 57 FR 6071 (Feb. 20, 1992).
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III. Operating Cost Information for Central Air Conditioners Disclosed 
on Fact Sheets and in Industry Directories

    The Commission is amending the cost calculation formulas in 
Appendices H and I that manufacturers of central air conditioners must 
include on fact sheets and in directories to reflect this year's energy 
costs figures published by DOE.\3\
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    \3\ Manufacturers of furnaces and central air conditioners may 
elect to disseminate information regarding the efficiencies and 
costs of operation of their products by means of a directory or 
similar publication instead of on fact sheets as long as they meet 
certain conditions specified in the Rule at Sec.  305.11(c).
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IV. 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 (e.g., clothes 
dryers, television sets, kitchen ranges and ovens, and space heaters) 
should use the 2005 DOE energy cost figures for their operating cost 
representations until the DOE publishes new figures in 2006.

[[Page 32486]]

V. Labeling of Refrigerators, Refrigerator-Freezers, Freezers, Clothes 
Washers, Dishwashers, Water Heaters, and Room Air Conditioners

    Manufacturers of these products 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.\4\ The 
cost figures currently applicable to these products are provided in the 
appendices to the Rule. Manufacturers must continue to use these 
figures until new ranges of comparability and cost information for an 
applicable product are published by the Commission. In addition, the 
text below the operating cost disclosure on the EnergyGuide label 
should identify the applicable energy cost figure used.
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    \4\ 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 based 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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VI. Administrative Procedure Act

    The amendments published in this notice 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 and clarify the requirements in the Rule, 
without changing or imposing any new legal obligations on parties 
subject to 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)).

VII. Regulatory Flexibility Act

    Regulatory Flexibility Act analysis provisions (5 U.S.C. 603-604) 
are not applicable to this proceeding to the extent that the amendments 
do not impose any new obligations on entities regulated by the 
Appliance Labeling Rule and are exempt from the Administrative 
Procedure Act's notice-and-comment requirements, as explained above. In 
any event, these technical amendments merely provide a routine change 
to the cost information in the Rule and clarify existing requirements. 
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, in any event, 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, to the extent, if any, that the 
Act applies.

VIII. Paperwork Reduction Act

    In a 1988 notice (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.\5\ 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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    \5\ 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:

    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 operating cost disclosures for furnaces and central 
air conditioners on fact sheets or in directories as required by Sec.  
305.11(b)&(c) of this part.

        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (2005)
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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.............................  9.06[cent]/kWh \2\ \3\....  $0.0906/kWh...............          $26.55
Natural gas.............................  $1.092/therm \4\ or $11.23  $0.00001092/Btu...........           10.92
                                           MCF \5\ \6\.
No. 2 heating oil.......................  $1.76/gallon \7\..........  $0.00001268/Btu...........           12.68
Propane.................................  $1.55/gallon \8\..........  $0.00001694/Btu...........           16.94
Kerosene................................  $2.20/gallon \9\..........  $0.00001632/Btu...........          16.32
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\1\ Btu stands for British thermal unit.
\2\ Wh 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 1,028 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.

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0
3. Appendix E to part 305 is revised to read as follows:

[[Page 32487]]



              Appendix E to Part 305--Room Air Conditioners
                           [Range information]
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                                                       Range of energy
                                                      efficiency ratios
 Manufacturer's rated cooling capacity in Btu's/yr         (EERs)
                                                   ---------------------
                                                       Low        High
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Without Reverse Cycle and with Louvered Sides:
    Less than 6,000 Btu...........................        8.0       10.0
    6,000 to 7,999 Btu............................        8.5       10.3
    8,000 to 13,999 Btu...........................        9.0       12.0
    14,000 to 19,999 Btu..........................        8.8       10.7
    20,000 and more Btu...........................        8.2       10.0
Without Reverse Cycle and without Louvered Sides:
    Less than 6,000 Btu...........................        (*)        (*)
    6,000 to 7,999 Btu............................        8.5        9.6
    8,000 to 13,999 Btu...........................        8.5        9.2
    14,000 to 19,999 Btu..........................        (*)        (*)
    20,000 and more Btu...........................        (*)        (*)
With Reverse Cycle and with Louvered Sides........        8.5       11.5
With Reverse Cycle, without Louvered Sides........        8.0       9.0
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* No data submitted for units meeting Federal Minimum Efficiency
  Standards effective January 1, 1990.


Cost Information for Appendix E

    When the ranges of comparability in Appendix E are used on 
EnergyGuide labels for room air conditioners, the estimated annual 
operating cost disclosure appearing in the box at the bottom of the 
labels must be derived using the 1995 Representative Average Unit 
Costs for electricity (8.67[cent] per kiloWatt-hour) and the text 
below the box must identify the costs as such.

Appendix H to part 305 [Amended]

0
4. In section 2 of Appendix H of Part 305, the text is amended by 
removing the figure ``8.60[cent]'' wherever it appears and by adding, 
in its place, the figure ``9.06[cent]''. In addition, the text in this 
section is amended by removing the figure ``12.9[cent]'' wherever it 
appears and by adding, in its place, the figure ``13.6[cent]''.

0
5. The formula in section 2 of Appendix H of part 305 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

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[GRAPHIC] [TIFF OMITTED] TR03JN05.009

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Appendix I to Part 305 [Amended]

0
6. In section 2 of Appendix I of part 305, the text is amended by 
removing the figure ``8.60[cent]'' wherever it appears and by adding, 
in its place, the figure ``9.06[cent]''. In addition, the text and 
formulas are amended by removing the figure ``12.90[cent]'' wherever it 
appears and by adding, in its place, the figure ``13.6[cent]''.

0
7. In section 2 of Appendix I of part 305, 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

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[GRAPHIC] [TIFF OMITTED] TR03JN05.010

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    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 05-11026 Filed 6-2-05; 8:45 am]
BILLING CODE 6750-01-P