[Federal Register Volume 72, Number 167 (Wednesday, August 29, 2007)]
[Rules and Regulations]
[Pages 49948-49997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4193]



[[Page 49947]]

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Part III





Federal Trade Commission





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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''); Final Rule

  Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / 
Rules and Regulations  

[[Page 49948]]


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FEDERAL TRADE COMMISSION

16 CFR Part 305

[RIN 3084-AB03]


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 (``FTC'' or ``Commission'').

ACTION: Final rule.

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SUMMARY: Section 137 of the Energy Policy Act of 2005 (Pub. L. 109-58) 
requires the Commission to conduct a rulemaking to examine the 
effectiveness of current energy efficiency labeling requirements for 
consumer products covered by the Energy Policy and Conservation Act. 
The Commission has completed the required rulemaking and is publishing 
final amendments to the Appliance Labeling Rule (16 CFR Part 305).

DATES: The amendments published in this notice will become effective 
February 29, 2008.

ADDRESSES: Requests for copies of this document should be sent to: 
Public Reference Branch, Room 130, Federal Trade Commission, 600 
Pennsylvania Avenue, NW, Washington, DC 20580. The complete record of 
this proceeding is also available at that address. Relevant portions of 
the proceeding, including this document, are available at http://www.ftc.gov.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome, (202) 326-2889, 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, Room NJ-2122, 600 Pennsylvania Avenue, N.W., 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION:
Table Of Contents
I. Introduction
II. Energy Policy and Conservation Act Labeling Requirements
III. FTC's Appliance Labeling Rule
IV. Procedural History
V. Section-by-Section Description of Final Amendments
VI. Effectiveness and Benefits of the Current Label
VII. Discussion of Comments and Final Amendments
 A. New Label Designs
 B. ENERGY STAR Logo Placement
 C. Requirements for Heating and Cooling Equipment
 D. Refrigerator Categories
 E. Revisions to Ranges of Comparability and Energy Price 
Information
 F. MEF Descriptor for Clothes Washers
 G. Placement of the EnergyGuide Label on Covered Products
 H. Catalog Requirements
 I. Fuel Cycle Energy Consumption
 J. Clothes Washer Labels
 L. Television Labeling
 M. Miscellaneous Amendments and Issues
VIII. Paperwork Reduction Act
IX.Regulatory Flexibility Act
X. Final Rule Language

I. Introduction

    Section 137 of the Energy Policy Act of 2005 (EPACT 2005) (Pub. L. 
109-58) amends the Energy Policy and Conservation Act of 1975 (EPCA)\1\ 
to require the Commission to initiate a rulemaking to consider ``the 
effectiveness of the consumer products labeling program in assisting 
consumers in making purchasing decisions and improving energy 
efficiency.'' As part of this effort, the Act directs the Commission to 
consider ``changes to the labeling rules (including categorical 
labeling) that would improve the effectiveness of consumer product 
labels.'' The Act directs the Commission to complete the rulemaking 
within two years. Following that law's enactment on August 8, 2005, the 
Commission published an Advance Notice of Proposed Rulemaking (ANPR), 
held a workshop, conducted consumer research, and published a Notice of 
Proposed Rulemaking (NPRM).\2\ Based on comments received and the FTC's 
own consumer research, the Commission is now publishing final 
amendments to the Appliance Labeling Rule (16 CFR Part 305). The 
amendments implement a new design for EnergyGuide labels and make 
several other changes to update and improve the Rule.
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    \1\42 U.S.C. 6291 et seq.
    \2\ANPR (66 FR 66307 (Nov. 2, 2005)); Workshop Notice (71 FR 
18023 (April 10, 2006)); Research Notice (71 FR 36088 (June 23, 
2006)); and NPRM (72 FR 6836 (Feb. 13, 2007)).
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II. Energy Policy and Conservation Act Labeling Requirements

    Section 324 of EPCA requires the FTC to prescribe labeling rules 
for: (1) the disclosure of estimated annual energy cost or alternative 
energy consumption information for a variety of products covered by the 
statute, including home appliances (e.g., refrigerators, dishwashers, 
air conditioners, and furnaces), and lighting products, and (2) the 
disclosure of water use information for certain plumbing products.\3\ 
Labels for appliances covered under EPCA must disclose the estimated 
annual operating cost of such products, as determined by the Department 
of Energy (DOE) test procedures (42 U.S.C. 6294(c)).\4\ The Commission, 
however, may require a different measure of energy consumption if DOE 
determines that a cost disclosure is not technologically feasible, or 
if the Commission determines a cost disclosure is not likely to assist 
consumers in making purchasing decisions or is not economically 
feasible (42 U.S.C. 6294(c)(1)). Section 324(c) also requires that the 
label for appliances contain information about the range of estimated 
annual operating costs (or energy consumption) for covered products. 
The Commission may require the disclosure of energy information found 
on the label in any printed material displayed or distributed at the 
point of sale (42 U.S.C. 6294(c)(4)). In addition, the Commission may 
direct manufacturers to provide additional energy-related disclosures 
on the label (or information shipped with the product) including 
instructions for the maintenance, use, or repair of the covered product 
(42 U.S.C. 6294(c)(5)).
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    \3\42 U.S.C. 6294. For most products, the Commission must 
prescribe labeling rules unless it determines that labeling is not 
technologically or economically feasible (42 U.S.C. 6294(a)(1)). The 
statute requires labels for central air conditioners, heat pumps, 
furnaces, and clothes washers unless the Commission finds that 
labeling is not technologically or economically feasible or is not 
likely to assist consumers in making purchasing decisions (42 U.S.C. 
6294(a)(2)(A)). Pursuant to Sec.  6294(a)(1), the Commission 
previously determined not to require labeling for television sets, 
kitchen ranges, ovens, clothes dryers, humidifiers, dehumidifiers, 
and certain home heating equipment other than furnaces. See 44 FR 
66466, 66468-66469 (Nov. 19, 1979).
    \4\Section 323 of EPCA (42 U.S.C. 6293) directs DOE to develop 
test procedures for major household appliances. Manufacturers must 
follow these test procedures to determine their products' compliance 
with DOE's energy conservation standards (required by 42 U.S.C. 
6295) and to derive the energy consumption or efficiency values to 
disclose on required labels.
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III. FTC's Appliance Labeling Rule

    The Commission's Appliance Labeling Rule implements the 
requirements of EPCA by directing manufacturers to disclose energy 
information about major household appliances. This information enables 
consumers to compare the energy use or efficiency of competing 
models.\5\ When initially published in 1979,\6\ the Rule applied to 
eight appliance categories: refrigerators, refrigerator-freezers, 
freezers, dishwashers, water heaters, clothes washers, room air 
conditioners, and furnaces. Subsequently, the Commission expanded the 
Rule's coverage to include central air conditioners, heat pumps, 
fluorescent lamp ballasts, plumbing products,

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lighting products, and certain types of water heaters.\7\
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    \5\More information about the Rule can be found at: http://www.ftc.gov/appliances.
    \6\44 FR 66466 (Nov. 19, 1979).
    \7\See 52 FR 46888 (Dec. 10, 1987) (central air conditioners and 
heat pumps); 54 FR 28031 (July 5, 1989) (fluorescent lamp ballasts); 
58 FR 54955 (Oct. 25, 1993) (certain plumbing products); 59 FR 25176 
(May 13, 1994) (lighting products); and 59 FR 49556 (Sept. 28, 1994) 
(pool heaters).
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    Under the Rule, manufacturers must disclose specific energy 
information about their appliances at the point of sale in the form of 
a yellow EnergyGuide label affixed to each unit. The information on the 
label also must appear in catalogs from which covered products can be 
ordered. Manufacturers of furnaces, central air conditioners, and heat 
pumps also must provide energy information in either fact sheets or an 
industry directory.
    Required labels for appliances contain three key pieces of 
information. First, the labels disclose the energy consumption or 
energy efficiency rating of the appliance, as determined from standard 
DOE tests. Second, some labels include a ``range of comparability'' 
(published by the Commission) that shows the highest and lowest energy 
consumption or efficiencies for all similar models. Third, labels for 
most appliances must provide the product's estimated annual operating 
cost. Manufacturers calculate these costs using national average energy 
cost (i.e., representative average energy cost) figures published by 
DOE.
    The Rule contains specific requirements for the content and format 
of the EnergyGuide labels. Manufacturers must use a yellow label with 
the EnergyGuide headline and must provide information in the format and 
type prescribed. Additionally, manufacturers cannot place any 
information on the label other than that specifically allowed by the 
Rule. In 2000, the Commission issued an exemption allowing 
manufacturers to include the ``ENERGY STAR'' logo on the EnergyGuide 
label for covered appliances (65 FR 17554 (Apr. 3, 2000)).\8\
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    \8\ENERGY STAR, which is administered by the Environmental 
Protection Agency (EPA) and DOE, is a voluntary U.S. Government 
labeling program to identify and promote energy-efficient products. 
See http://www.energystar.gov.
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    The Commission's Rule also requires certain reporting requirements 
that direct manufacturers of most covered products to file reports with 
the FTC both annually and when they begin manufacturing new models. 
These reports must contain the estimated annual energy consumption or 
energy efficiency ratings for the appliances derived from tests 
conducted pursuant to the DOE procedures (16 CFR Sec.  305.8(b)). 
Energy information submitted pursuant to these requirements is 
available on the Commission's website at http://www.ftc.gov/appliances.
    Finally, the Rule has different labeling requirements for non-
appliance consumer products (16 CFR Sec.  305.11(d), (e), & (f)). 
Manufacturers of showerheads, faucets, toilets, and urinals must 
disclose water usage information on their products, packaging, and 
labeling. Manufacturers of certain incandescent bulbs, spot and flood 
bulbs, and screw-base compact fluorescent bulbs must disclose light 
output in lumens, energy used in watts, voltage, average life, and 
number of bulbs on their packaging. They also must explain how 
purchasers can select the most energy efficient bulb for their needs.

IV. Procedural History

    The Commission initiated this proceeding on November 2, 2005 with 
the publication of an ANPR that sought comments on the effectiveness of 
the FTC's energy labeling regulations. (70 FR 66307). The ANPR also 
announced that the Commission would conduct its periodic regulatory 
review as part of this rulemaking. In response, the Commission received 
28 comments.\9\ Following the receipt of ANPR comments, the Commission 
announced plans to conduct consumer research on various label designs 
to examine the effectiveness of the current label and to obtain 
information about alternatives (March 15, 2006 (71 FR 13398)). Based on 
the comments received in response to the ANPR, the Commission then 
conducted a Public Workshop (``Workshop'') on May 3, 2006 to discuss a 
variety of issues associated with the labeling program, including: (1) 
EnergyGuide label design, (2) refrigerator comparability ranges, (3) 
labels for heating and cooling equipment, and (4) television labeling. 
After conducting the Workshop, the Commission received ten additional 
written comments.\10\
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    \9\Comments on the ANPR are available at: http://www.ftc.gov/os/comments/energylabeling/index.htm.
    \10\The Commission announced the Workshop in an April 10, 2006 
Federal Register notice (71 FR 18023). Written comments related to 
the Workshop are available at: http://www.ftc.gov/os/comments/energylabeling-workshop/index.htm. A copy of the Workshop transcript 
is available at: http://www.ftc.gov/os/comments/energylabeling-workshop/060503wrkshoptrnscript.pdf.
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    Using information adduced at the workshop, the Commission published 
an additional notice containing details about its planned consumer 
research project, including drafts of the appliance labels that the 
Commission planned to use in the project. (June 23, 2006 (71 FR 
36088)). The Commission received eight comments in response to that 
notice.\11\ Armed with all this information, the FTC staff conducted 
consumer research on various label designs in October 2006.
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    \11\Comments submitted in response to the June notice are 
available at: http://www.ftc.gov/os/comments/appliancelabelingresearch/index.htm.
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    Based on all the comments, the Workshop, and the FTC's consumer 
research, the Commission published a NPRM.\12\ The NPRM contained a 
variety of proposed amendments, including a new EnergyGuide label 
design and significant changes to the disclosure requirements for 
heating and cooling equipment. The NPRM also contained detailed 
information about the design and the results of the FTC's consumer 
research.\13\ The Commission received 17 comments in response to the 
NPRM.\14\ Based on our review of these comments and all other 
information submitted during the course of this rulemaking, the 
Commission is now issuing final amendments to the Rule.
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    \12\72 FR 6836 (Feb. 13, 2007).
    \13\This information can be found at: http://www.ftc.gov/opa/2007/01/fyi0714.htm.
    \14\Comments submitted in response to the NPRM are available at: 
http://www.ftc.gov/os/comments/appliancelabel-energyguidereview/index.shtm.
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V. Section-by-Section Description of Final Amendments

    The following are brief descriptions of the final amendments set 
out in this Notice.
    Section 305.2 Definitions: To make section 305.2 more user-
friendly, the Final Rule places the definitions in alphabetical order. 
In addition, the definition of catalog has been amended to clarify that 
the term covers both paper and Internet-based catalogs.
    Section 305.3 Description of covered products: The Final Rule 
amends the description of refrigerators and refrigerator freezers to 
make it consistent with DOE regulations.
    Section 305.4 Prohibited acts: The Final Rule contains 
nonsubstantive, conforming changes to several citations in this 
section.
    Section 305.5 Determinations of estimated annual energy 
consumption, estimated annual operating cost, energy efficiency rating, 
and water use rate: The Final Rule clarifies that this section does not 
apply to covered appliances for which DOE has not issued test 
procedures.
    Section 305.7 Determinations of capacity: Under the Final Rule, 
manufacturers must determine refrigerator and refrigerator-freezer

[[Page 49950]]

capacity using DOE standards.\15\ Manufacturers must report this 
information to the FTC pursuant to section 305.8 of the Rule.
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    \15\The Rule will continue to require only the disclosure of 
total refrigerated volume for the EnergyGuide label.
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    Section 305.8 Submission of data: The Final Rule clarifies that 
required reports for appliances include the brand name of the reported 
model, if it is different from the name of the manufacturer.
    Section 305.9 Representative average unit energy cost: The Final 
Rule removes and reserves this section. The information previously 
provided by section 305.9 is now published in Appendix K of the Final 
Rule.
    Section 305.10 Ranges of comparability on the required labels: The 
Final Rule changes this section to direct the Commission to amend range 
of comparability and representative average energy cost information 
every five years.
    Redesignation of sections 305.13, 305.14, 305.15, 305.16, 305.17, 
305.18 and 305.19: The Final Rule divides section 305.11 into several 
smaller, less cluttered sections. To make room for these new sections, 
the Final Rule redesignates these sections as 305.19, 305.20, 305.21, 
305.22, 305.23, 305.24 and 305.25, respectively.
    Requirements for lighting and plumbing products (newly designated 
sections 305.15 and 305.16): Under the Final Rule, the labeling and 
marking requirements for lighting and plumbing products previously in 
section 305.11 have been moved to redesignated sections 305.15 
(lighting) and 305.16 (plumbing). The Final Rule contains no 
substantive change to existing requirements for these products.
    Section 305.11 Labeling for refrigerators, refrigerator-freezers, 
freezers, dishwashers, clothes washers, water heaters, room air 
conditioners, and pool heaters: The Final Rule amends this section to 
require operating cost as the primary disclosure on the EnergyGuide 
label for all these products except pool heaters. The Final Rule also 
requires new language to clarify the scope of the comparison ranges on 
the labels. Additionally, the Final Rule modifies and clarifies 
requirements related to the label placement on covered products.
    Sections 305.12 (newly designated) Labeling for Central Air 
Conditioners, Heat Pumps, and Furnaces\16\ : The Final Rule requires 
manufacturers to label heating and cooling equipment with energy 
efficiency information using a new label design.
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    \16\We note that the Final Rule eliminates existing section 
305.12 (``Additional information relating to energy consumption''). 
This provision was unnecessary because it contained no substantive 
requirements and was simply a placeholder for future disclosure 
requirements.
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    Section 305.14 (newly designated) Energy information disclosures 
for heating and cooling equipment: The Final Rule streamlines 
requirements related to the disclosure and distribution of energy 
information for central air conditioners and furnaces.\17\
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    \17\The Final Rule also removes an incorrect reference to 
``energy cost'' in section 305.14(a)(8) of the Proposed Rule.
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    Sec.  305.19 (newly designated) Promotional material displayed or 
distributed at point of sale: The Final Rule contains a conforming 
change related to operating costs in the required disclosures in 
paragraph (a)(1) of section 305.19.
    Section 305.20 (newly designated) Paper catalogs and websites: The 
Final Rule requires the disclosure of annual estimated operating costs 
for certain products in paper and Internet-based catalogs. Under the 
Final Rule, catalog sellers are no longer required to provide range of 
comparability information. The Final Rule also contains conforming 
changes to cross-references in this section.
    Section 305.24 (newly designated) Exemptions: The Final Rule 
incorporates the exemption permitting the inclusion of ENERGY STAR 
logos on EnergyGuide labels into section 305.11. Section 305.24 is, 
therefore, reserved.
    Appendices: The Final Rule amends the Appendices to include range 
of comparability information in the form of estimated yearly operating 
costs for refrigerators, refrigerator-freezers, freezers, clothes 
washers, dishwashers, room air conditioners, and water heaters. The 
amendments also eliminate fact sheet information in the Appendices for 
heating and cooling equipment. In addition, we have eliminated the 
sample reporting format in Appendix K. The Final Rule redesignates the 
remaining appendices accordingly. Finally, the amendments add a new 
Appendix K that contains national average energy cost information for 
use on EnergyGuide labels.\18\
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    \18\The Final Rule also removes an incorrect cross-reference to 
section 305.14 in the cost table at Appendix K.
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VI. Effectiveness and Benefits of the Current Label

    In our ANPR, the Commission asked a series of questions related to 
the effectiveness of the current EnergyGuide label. As discussed in 
more detail in the NPRM (72 FR 6840-6841 (Feb. 13, 2007)), most 
comments indicated that the current label provides consumer benefits. 
At the same time, many commenters thought that there was room for 
improvement in the label's design. A few commenters urged the 
Commission to consider changes to increase the label's effectiveness, 
such as improving its readability. Others identified specific concerns 
such as the ``directionality'' of the label's comparison graphic and 
the division of some products into multiple categories.
    Several comments on the ANPR suggested the Commission consider 
changes to the label in light of the policy goals of the EnergyGuide 
program. The nature of those policy goals, however, was a point of 
disagreement among commenters. According to some industry members, the 
FTC's labeling program should provide useful information about the 
energy usage of home appliance products. (See, e.g., Association of 
Home Appliance Manufacturers (AHAM) (522148-00007)). They 
questioned, however, the role the label should play in promoting energy 
savings and in creating incentives for market transformation. Whirlpool 
(522148-00005), for example, pointed to DOE's efficiency 
standards program and the ENERGY STAR program as the appropriate 
entities for energy efficiency promotion. It urged the FTC to focus 
instead on providing ``meaningful, helpful information to consumers to 
assist them in the purchase decision'' through ``clear, fair, and 
unbiased'' disclosures.
    Other commenters believed that the label's effectiveness should be 
judged in part by its effectiveness in encouraging consumers to 
purchase high-efficiency products and manufacturers to bring more high 
efficiency products to the marketplace. (See, e.g., American Council 
for an Energy-Efficient Economy (ACEEE) 519870-00021 and Payne 
519870-00024). As ACEEE (519870-00021) observed, 
amendments to EPCA set forth in the Energy Policy Act of 2005 direct 
the FTC to initiate a rulemaking to consider the effectiveness of the 
appliance labeling program ``in assisting consumers in making 
purchasing decisions and improving energy efficiency.''
    In our NPRM (72 FR 6841 (Feb. 13, 2007)), the Commission responded 
to these various comments by noting the following Commission statement 
when we first promulgated the Rule (44 FR 66466 (Nov. 19, 1979)): ``The 
primary purpose of the Commission's Rule is to encourage consumers to 
comparison-shop for energy-efficient household appliances. By mandating 
a uniform disclosure scheme for energy

[[Page 49951]]

consumption information, the Rule will permit consumers to compare the 
energy efficiency of competing appliances and to weigh this attribute 
against other product features in making their purchasing decisions. If 
the labeling program works as expected, the availability of this new 
information should enhance consumer demand for appliances that save 
energy. In turn, competition should be generated among manufacturers to 
meet this demand by producing more energy-efficient appliances.'' In 
the NPRM, the Commission stated that we continue to believe this 1979 
statement accurately describes the role of the FTC's energy labeling 
program. The Commission further explained that the label serves two 
important purposes. First, the detailed operating cost and energy 
consumption information on the label allows consumers to compare the 
total cost of competing models. Second, the label aids consumers who 
are seeking to buy high-efficiency products that reduce energy use and 
thus help the environment. (72 FR 6841). No comments have altered our 
views on this issue.
    In addition to providing this general guidance, the Commission, in 
our NPRM, also discussed some of the results of the FTC's 2006 consumer 
research related to the label's effectiveness. In brief, the research 
indicated that consumers find the label much more useful than has been 
suggested by past research. More than 85% of recent appliance 
purchasers who visited a retail showroom recalled seeing a label with 
energy characteristics. Of those respondents, 58% correctly recalled 
that the label was yellow with black letters. Fifty-nine percent of 
respondents who recalled seeing a label scored the usefulness of the 
label at a seven or higher on a scale of zero to ten.
    In the NPRM, the Commission also proposed several changes to 
improve the effectiveness of the label. Section VII. of this Notice 
contains a discussion of comments received in response to these 
proposals and the final amendments to the Rule.

VII. Discussion of Comments and Final Amendments

A. New Label Design

    Background: In our NPRM, the Commission proposed a new design for 
the EnergyGuide label, prominently featuring yearly operating cost. The 
proposed label's comparison range disclosed energy cost information in 
dollars per year. The draft label also provided consumers with 
information about the product's energy use (e.g., kWh/year) as a 
secondary disclosure.
    Energy-related labels generally fall into one of two categories: 
``continuous'' bar graph and ``categorical'' designs. Labels using a 
continuous design, such as the current EnergyGuide label, graphically 
display information without discrete ranks or categories. Labels under 
a categorical approach employ discrete categories, using a step ranking 
system such as stars or letters to indicate relative energy use.
    The Commission's 2006 consumer research, therefore, tested four 
label designs: the existing continuous label, a modified version of the 
existing label, a categorical (star-based) label, and a continuous 
label that used yearly operating cost as the main descriptor. The 
results yielded several general conclusions. First, all four designs 
performed well in the objective tasks of identifying and ranking 
operating costs (in dollars) and energy use (in kilowatt-hours), 
suggesting that any of the designs should help consumers compare 
operating costs and energy use. The categorical label, however, was 
somewhat more effective for some objective tasks, particularly when 
compared to the modified version of the current energy use label. 
Second, the categorical label, which was the only label to include the 
term ``energy efficient,'' was generally more effective at aiding 
respondents in ranking products by energy efficiency than the labels 
more prominently featuring operating costs or energy use. Third, 
respondents viewing the categorical design were much more likely to 
identify models as ENERGY STAR-qualified when none of those viewed 
contained ENERGY STAR logos. Fourth, the results suggest that 
respondents viewing the categorical labels were somewhat more likely to 
misidentify quality differences between models. Fifth, the research 
indicated that the categorical label had a substantially greater impact 
on respondents' reported willingness to pay for differences in energy 
performance between models. Finally, the study suggested that the 
respondents under all label conditions have a preference for the 
communication of energy characteristics in the form of operating costs 
over either electricity usage or a five-star categorical scale.\19\
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    \19\See 72 FR 6841-6851 for a detailed discussion of the 
consumer research results and conclusions.
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    After considering ANPR and Workshop comments, as well as the 
results of both previous consumer research (see 72 FR 6838-6839) and 
the FTC's own study, the Commission proposed changing the label design 
to require operating costs as the primary disclosure. Section 324(a) of 
EPCA directs the Commission to require annual operating costs on the 
label, unless the Commission determines that such disclosures are not 
likely to assist consumers in making purchasing decisions. (42 U.S.C. 
Sec.  6294(c)). The FTC's consumer research clearly indicates that cost 
information is likely to assist consumers in making purchasing 
decisions. While each of the designs considered has strengths and 
weaknesses, on balance, the Commission believed that the adoption of a 
design that presents cost as the primary disclosure would best serve 
consumers. In addition, the research indicated that respondents clearly 
identified operating costs as the preferred method for communicating 
energy performance in the marketplace. The NPRM, therefore, proposed 
requiring the operating cost design for refrigerators, refrigerator-
freezers, freezers, clothes washers, dishwashers, room air 
conditioners, pool heaters,\20\ and water heaters.
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    \20\When the Commission first issued pool heater label 
requirements in 1994, the DOE test procedure did not contain a final 
procedure for measuring annual operating costs for these products. 
(See 10 CFR Part 430, Appendix P; and 59 FR 49556,49558 (Sept. 28, 
1994)). DOE amended the procedure to allow manufacturers to 
calculate annual energy use and operating cost for pool heaters. (62 
FR 26140 (May 12, 1997)). Accordingly, in the NPRM, the Commission 
proposed to require the disclosure of estimated annual operating 
costs on pool heaters.
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    The Commission also explained why it was not proposing a 
categorical label. Although the research identified some benefits 
associated with the categorical label, the results strongly suggested 
that the five-star categorical label design would confuse a significant 
number of consumers with regard to the well-established ENERGY STAR 
program and tended to convey inaccurate product quality messages more 
often than other tested designs. The Commission explained that, in its 
view, the EnergyGuide label should complement, not detract from, the 
ENERGY STAR program. (72 FR 6844-6845).
    In our NPRM, we also requested comment on the conclusions derived 
from the consumer research, including the operating cost label proposal 
and the Commission's concerns with the categorical label. Additionally, 
we sought comment on questions related to the proposed operating cost 
label. In particular, we asked whether frequent changes to average 
energy cost figures could lead to inconsistent labels for models 
displayed in the showroom. In addition, we asked whether the regional 
variability of energy costs is a

[[Page 49952]]

significant issue for implementing the energy cost label. The NPRM also 
sought comments on a variation of the operating cost label that would 
display energy costs over a five-year period as the primary disclosure.
    Comments: Several commenters supported the FTC's proposal to 
require annual operating cost as the primary disclosure on the 
label.\21\ For example, Consumers Union (527896-00012) stated 
that it ``strongly supported'' the proposed label. Whirlpool 
(527896-00004) explained that ``estimated annual operating 
cost is the factor that consumers are most interested in when comparing 
models.'' In its view, it is unrealistic to expect consumers ``to 
understand some other `alphabet soup' (kWh, AFUE, MEF, EF, etc.) and to 
know if a higher value or a lower value is better.'' AHAM 
(527896-00006) added that an ``average national energy cost 
estimate will permit consumers to easily compare products by using one 
specific measurement.''
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    \21\See Consumers Union (527896-00012), AHAM 
(527896-00006), Whirlpool (527896-00004), EEI 
(527896-00005), and EPA (527896-00018) (``EPA is 
supportive of FTC's decision to develop a modified version of the 
current Energy Guide label . . .'').
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    Some commenters, however, argued that the use of operating cost as 
the primary disclosure would not be helpful for many consumers.\22\ 
ACEEE (527896-00015) explained that energy costs vary widely 
across the country and that many ``consumers may find the range of 
operating costs displayed on the label to be unrealistic and 
unreasonable based on their experience and discount the label 
altogether.'' ACEEE (527896-00015) also indicated that the 
results of FTC's research did not provide information on the ability of 
consumers ``to relate the reported cost values to the specific 
circumstances of their own appliance purchase or how relevant and 
believable they would find the information when shopping for 
appliances.'' According to ACEEE (527896-00015), research on 
vehicle labeling has demonstrated that consumers' stated preferences 
for label information do not often correspond to information that 
exhibits the highest levels of comprehension in practice. ACEEE 
(527896-00015) recommended that the FTC retain the current 
label format which provides energy consumption as the primary 
disclosure. CEE (527896-00016) echoed ACEEE's concerns, adding 
that wide fluctuations in energy prices across the country could lead 
to consumer confusion and create the potential for 
``misrepresentations'' on the label.
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    \22\See ACEEE (527896-00015), CEE (527896-
00016), and Brand Source (527896-00003).
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    Other commenters did not believe that regional variability in 
energy prices created a decisive obstacle to the proposed label. 
According to Whirlpool (527896-00004), shoppers are primarily 
concerned about ``the relative, not the absolute, operating cost.'' In 
its view, consumers understand that the energy costs on the EnergyGuide 
label are ``estimates and national averages'' and ``that their own 
experience will vary.'' AHAM (527896-00006) indicated that 
employing national average energy cost information allows consumers to 
compare products according to energy usage despite the fact that actual 
costs for individual consumers may vary across the country. Similarly, 
Consumers Union (527896-00012) argued that ``the value of the 
EnergyGuide to consumers stems from the fact that it is for comparative 
purposes'' and ``not necessarily to reflect the product's actual cost 
to the consumer.'' At the same time, Consumers Union (527896-
00012) suggested that the label should provide a better explanation 
that the displayed cost may not reflect a consumer's actual cost.
    Several commenters supported the Commission's decision to 
discontinue its consideration of a categorical design in light of the 
FTC's consumer research. EPA (527896-00018) concurred with the 
FTC's conclusion regarding the significant concerns the categorical 
design raises for the ENERGY STAR program, including the confusion such 
a design could cause consumers in identifying ENERGY STAR products. EPA 
(527896-00018) also agreed with the FTC's concerns about the 
tendency of the categorical label to convey inaccurate product quality 
messages. Whirlpool (527896-00004) echoed EPA comments, 
indicating that the FTC's study clearly demonstrated that the 
categorical label frequently conveys messages to the consumer about 
product quality and that the ``opportunity for confusion with the 
ENERGY STAR program is significant.'' CEE (527896-00016) 
expressed appreciation for the FTC's efforts to research and analyze 
the interaction between the ENERGY STAR and EnergyGuide labels.
    Other comments raised concerns with the Commission's decision not 
to pursue a categorical label. ACEEE (527896-00015) concluded 
that the FTC's research confirmed earlier work indicating that 
``categorical labels rate well in terms of consumer comprehension, 
appeal, and motivating ability.'' In its view, ``the categorical label 
outperformed other label designs.'' At the same time, ACEEE 
(527896-00015) acknowledged that more effort is necessary to 
develop and implement a categorical labeling program. It suggested that 
the FTC ``work together [with stakeholders] to develop a categorical 
EnergyGuide label that coordinates well with the ENERGY STAR label.'' 
Christopher Payne (527896-00014) argued that the analysis in 
the NPRM understated the performance of the categorical label on key 
questions related to consumer understanding. He noted that small 
increments of consumer comprehension improvement can have significant 
effects on total energy use. In his view, ``even a 1% difference in 
comprehension among consumers can have substantial energy and cost 
savings nationwide.'' He estimated that, for refrigerators alone, such 
a difference in comprehension could lead to a cumulative impact of 
$100,000 annually in energy use. Payne urged the Commission to continue 
consideration of the categorical label.
    Though comments varied on the adoption of annual operating cost as 
the primary disclosure, almost all commenters opposed disclosing 
operating costs over a multi-year period. Brand Source 
(527896-00003), an appliance buying group, warned that any 
type of life expectancy figure on the label will be unrealistic and 
undesirable for manufacturers and retailers. Whirlpool 
(527896-00004) indicated that the ``use of a five or 10 year 
time frame may imply a product lifetime or even a warranty commitment-
items which are not within the scope of this label (in addition to 
being inaccurate in this case).''\23\ AHAM (527896-00006) 
suggested that a change to a five-year operating cost may confuse 
consumers, making them think that costs have risen abruptly. 
Christopher Payne (527896-00014) concluded that more research 
would be necessary to adopt a multi-year label. ACEEE (527896-
00015) commented that a multi-year label would require ``yet another 
set of assumptions, thereby introducing additional opportunities for 
consumer confusion and skepticism about the label.'' It also indicated 
that a multi-year label would require more explanatory language, and 
noted that ``[r]esearch conducted by ACEEE and many others show that 
consumers are less likely to read and/or believe labels with extensive 
text, too many technical details, or multiple levels of assumptions.'' 
CEE (527896-00016) raised similar concerns and also urged the 
Commission not to use a five-year

[[Page 49953]]

operating cost and a single year energy use figure on the same 
label.\24\
---------------------------------------------------------------------------

    \23\See also EEI (527896-00005).
    \24\Consumers Union (527896-00012) did not object to a 
multi-year label but noted that most appliances have an average life 
of about ten years.
---------------------------------------------------------------------------

    Finally, we note that several commenters\25\ expressed support for 
the Commission's efforts to change the general appearance of the label 
by clearly grouping information and changing the font size of some of 
the disclosures. AHAM (527896-00006), for example, indicated 
that the ``changes to the EnergyGuide label make it easier for 
consumers to identify the information most important to them and 
provide a better presentation of relevant information in an easier to 
read format.'' One commenter (Deumling (527896-00002)), 
however, asked why the statement ``Compare the Energy Use of this 
[product] with Others Before You Buy?'' had been eliminated from the 
proposed label.
---------------------------------------------------------------------------

    \25\ACEEE (527896-00015), EEI (527896-00005), 
and AHAM (527896-00006).
---------------------------------------------------------------------------

    Discussion: In response to commenters' concerns, the final version 
of the label contains a number of wording and format changes, but 
retains operating cost as the primary descriptor for most labeled 
products. The research suggests that the operating cost disclosure 
provides a clear, understandable tool to allow consumers to compare the 
energy performance of different models. The operating cost design not 
only performed well on objective tasks in the research but research 
participants identified the design as the most useful method for 
communicating energy information. The disclosure also provides a clear 
context from which consumers can compare the energy efficiency of 
various appliances, and allows them to assess trade-offs between energy 
efficiency and other expenditures. An operating cost range also 
provides an energy efficiency descriptor that is consistent across 
appliance types appearing together in showrooms (e.g., refrigerators, 
dishwashers, clothes washers, and room air conditioners), and addresses 
the ``directionality'' problem identified by comments (i.e., more 
efficient models are always lower on the range across appliance 
types).\26\
---------------------------------------------------------------------------

    \26\As explained in Section VII.C. of this Notice, the Rule will 
continue to require the disclosure of efficiency ratings on labels 
for heating and cooling equipment.
---------------------------------------------------------------------------

    For all of these reasons, the Commission continues to believe that 
consumers are best served with operating cost as the primary descriptor 
on the EnergyGuide label. We recognize commenter concerns about the 
variability of energy costs, but we agree with Consumers Union 
(527896-00012) and other commenters that ``the value of the 
EnergyGuide to consumers stems from the fact that it is for comparative 
purposes.'' The EnergyGuide label's ability to predict an individual's 
actual energy use is limited. Regardless of its design, the label only 
can provide consumers with a general idea of the energy they will 
consume. Any model-specific energy use disclosure, whether in dollars, 
kilowatt-hours, or a star rating, is merely an estimate based on 
assumptions regarding use conditions and patterns.\27\ The lack of 
uniformity in energy prices across the country is another factor added 
to this set of existing variables. On balance, we believe that the 
benefits of having a prominent, simple operating cost to allow 
consumers to compare the relative energy use of various product models 
outweigh concerns raised by the variability in regional energy prices.
---------------------------------------------------------------------------

    \27\Manufacturers must derive the energy information provided on 
the label from standard DOE test procedures which mandate specific 
test conditions (e.g., air temperature, water temperature) and usage 
assumptions (e.g., number of washloads per week) that will not 
necessarily apply to all consumers.
---------------------------------------------------------------------------

    Although we have decided to use operating cost as the primary 
disclosure, we agree with commenters that the label provide a more 
prominent explanation that consumers' actual operating costs will vary. 
Accordingly, in the final version of the label, we increased the size 
and prominence of the statement informing consumers that their own 
operating cost will depend on their utility rates and product use. This 
change should help consumers understand that the operating cost figure 
on the label is simply an estimate based on national averages.\28\
---------------------------------------------------------------------------

    \28\Based on recommendations by ACEEE, we have sought to 
minimize the amount of text on the label (see, e.g., Thorne, 
Jennifer and Egan, Christine, ``An Evaluation of the Federal Trade 
Commission's EnergyGuide Label: Final Report and Recommendations,'' 
ACEEE, August 2002). As proposed in the NPRM, we have eliminated 
phrases such as ``Compare the Energy Use of this . . .'' because 
such language is either redundant or unnecessary to the label's 
effectiveness.
---------------------------------------------------------------------------

    Given our decision to adopt operating cost as the label's primary 
disclosure, the Commission does not plan to pursue the categorical 
label further at this time. Our consumer research suggests that there 
are significant benefits to the categorical label design, and we 
recognize, as Christopher Payne (527896-00014) explained, that 
even small differences in comprehension may affect consumer buying 
behavior. The magnitude of such effects, however, is extremely 
difficult to quantify because rates of label comprehension do not 
necessarily translate directly into buying behavior. Most important, 
however, the FTC's study identified substantial problems with the 
categorical design, particularly as it may impact consumer 
comprehension of the ENERGY STAR program. As explained in the NPRM, 
this problematic interaction with the ENERGY STAR program and the 
quality-related results for the categorical design convinced us not to 
adopt the categorical label at this time.\29\
---------------------------------------------------------------------------

    \29\Other concerns also exist with the categorical label. For 
example, the FTC's study did not test conditions in which 
categorical labels had the same number of stars but different energy 
use and operating cost figures. We expect such a scenario would be 
quite common under a categorical labeling scheme. The inclusion of 
such a scenario in any future research may provide additional 
information about the performance of a categorical design on the 
types of objective tasks involved in the study. In addition, the 
FTC's study did not address the feasibility (i.e., the technical and 
administrative considerations) of implementing a categorical label, 
including the alignment of FTC energy rating categories with ENERGY 
STAR criteria, a concern raised by commenters earlier in the 
proceeding (see, e.g., EPA (519870-00007)).
---------------------------------------------------------------------------

    Although we have adopted operating cost as the primary descriptor, 
the Commission does not plan to pursue a multi-year cost disclosure on 
the label. We agree with the commenters that such a design raises a 
host of unresolved questions. The final label, therefore, mandates a 
one year cost figure.
    The Final Rule requires an operating cost label for most appliances 
including refrigerators, refrigerator-freezers, freezers, clothes 
washers, dishwashers, room air conditioners, and water heaters. The 
appendices to the Final Rule contain updated range information based on 
the most recent annual reports submitted by manufacturers to the 
Commission.\30\ In drafting the new labels, manufacturers must use the 
range information and the 2007 national average energy cost information 
at Appendix K.
---------------------------------------------------------------------------

    \30\The range data in the appendices excludes models identified 
as ``discontinued'' in manufacturer reports. In addition, given the 
staggered annual reporting dates set out in the Rule section 305.8, 
the new range data for clothes washers and refrigerators is based on 
the annual reports submitted in 2006 and new model reports submitted 
since that time.
---------------------------------------------------------------------------

    We note that the NPRM also proposed to require an operating cost 
disclosure for pool heaters (see 72 FR 6846, n. 54). The current DOE 
test procedure (10 CFR Part 430, Appendix P) contains a method for 
calculating annual energy consumption for pool heaters. This method, 
however, does not take into account a model's energy performance (i.e., 
thermal efficiency), but instead provides annual energy consumption 
information based on a model's capacity. As a result, the annual energy

[[Page 49954]]

consumption derived from the test procedure does not reflect relative 
energy efficiency differences among models. Without information about 
the relative energy performance of similar capacity models, it is 
unclear whether such disclosures would be helpful to consumers. 
Accordingly, the pool heater label will continue to disclose the 
thermal efficiency of each model as required under the current rule.

B. ENERGY STAR Logo Placement

    Background: In the NPRM, the Commission proposed directing 
manufacturers to place the ENERGY STAR logo in the lower right-hand 
corner of the label for qualified products, instead of above the range 
of comparability bar as currently required. Under the proposal, the 
logo would be up to one inch by one inch in size.
    Comments: Comments were generally supportive of a change to the 
ENERGY STAR logo placement. For example, EEI (527896-00005) 
indicated that placement of the logo in the bottom corner of the label 
will ``help customers who are looking for more energy efficient 
appliances.'' Some commenters, however, suggested changes in the 
placement and prominence of the ENERGY STAR logo. AHAM 
(527896-00006), for instance, asked the Commission to consider 
allowing placement of the logo in the top third of the label. EPA 
supported any changes that would ``improve the prominence and 
visibility of the ENERGY STAR logo without undermining the general 
purpose of the EnergyGuide label.''
    A few commenters believed the Commission should allow a larger 
ENERGY STAR logo than the one inch by one inch size proposed in the 
NPRM. Whirlpool (527896-00004) supported the placement of the 
logo in the lower right corner, but commented that the proposed size 
would be ``fairly small'' and suggested that the FTC allow a larger 
logo (e.g., 1.25 to 1.5-inches square). AHAM (527896-00006) 
also suggested an increase in the logo's allowable size. EPA 
(527896-00018) indicated that the proposed logo size of ``one 
inch by one inch is the minimum effective size for use of the ENERGY 
STAR logo for qualifying products on the EnergyGuide label.''
    Discussion: Under the final amendments, manufacturers using the 
ENERGY STAR logo on their labels must place it in the lower right-hand 
corner. The Commission has decided to retain this proposed placement 
requirement because it will ensure that the ENERGY STAR logo is 
presented consistently across all labels in a location away from other 
energy performance measures. The Final Rule also requires a uniform one 
inch size for the logo on all applicable labels. This will provide the 
ENERGY STAR logo with a consistent size and location across all 
EnergyGuide labels. We do not believe that the label can reasonably 
accommodate a larger logo and still clearly provide all the information 
necessary to serve its purpose. We note that although the Proposed Rule 
indicated the logo could be ``up to'' one inch in size, the logo 
appearing on Sample Label 2 of the NPRM was approximately 1/2 inch in 
size (on an actual size label).

C. Requirements for Heating and Cooling Equipment

    Background: The current labeling requirements for furnaces, 
boilers, central air conditioners, and heat pumps provide little value 
to consumers prior to purchase because these products generally do not 
appear in showrooms. At the same time, the record indicated that the 
information on the label provides benefits to consumers and energy 
auditors in the use of existing, installed units and in the purchase of 
replacement products. The labels may also provide information allowing 
consumers to confirm that the model they ordered is the model that has 
been installed by the contractor. The Commission, therefore, proposed 
requiring manufacturers to mark their units permanently with certain 
energy information in lieu of labeling. The Commission expected that 
marking requirements would be a more durable and less expensive means 
of making information available to consumers. Under the proposal, the 
Rule would have continued to require EnergyGuide labeling for water 
heaters because these products appear in showrooms.
    In addition to the marking proposal, the Commission sought to 
streamline and improve the Rule's fact sheet and directory provisions 
(i.e., pre-purchase disclosure requirements) by removing complicated 
equations and charts from fact sheets, eliminating operating cost 
calculation information, and providing manufacturers and contractors 
with new options, such as online sources, for providing energy 
information. The Proposed Rule would have required manufacturers to 
provide the following pre-purchase disclosures in fact sheets, 
directories, or another medium: (1) the name of manufacturer or private 
labeler; (2) the trade (brand) name; (3) model number(s); (4) capacity 
determined in accordance with section 305.7; (5) energy efficiency 
rating as determined in accordance with section 305.5; (6) a statement 
that the energy efficiency ratings are based on U.S. Government 
standard tests; and (7) in the case of, information about efficiency 
ratings of split system central air conditioners for specific 
condenser/coil combinations or, alternatively, for the ``most common'' 
condenser-evaporator coil combinations, as currently required by the 
Rule. The Commission also asked whether the Rule should require 
manufacturers to provide an estimated national average operating cost 
for their models.
    Comments: The comments addressed both the permanent marking and 
pre-purchase information requirements proposed in the NPRM.
    Marking
    The comments contained mixed views on the proposed permanent 
marking requirements. Several supported the proposal.\31\ For example, 
EEI (527896-00005) indicated that paper labels can be lost or 
discarded and that permanent marking will ``allow consumers and 
entities offering incentive programs to be sure that they are `getting 
what they paid for.''' First Company (527896-00008), a 
manufacturer of air handling systems and evaporator coils, supported 
the marking proposal, but suggested the Rule clarify that marking 
should be placed on the condenser (or outdoor heating pump) as 
currently required for EnergyGuide labeling. Burnham (527896-
00001), a boiler manufacturer, agreed with the proposal, but requested 
that the Commission provide manufacturers with at least six months to 
implement the change.
---------------------------------------------------------------------------

    \31\See Consumers Union (527896-00012), EEI 
(527896-00005), and First Company (527896-00008).
---------------------------------------------------------------------------

    GAMA (527896-00007) did not oppose marking for boilers, 
but raised concerns with such a requirement for furnaces. It explained 
that current multi-position furnaces allow installers to select 
particular airflow configurations that affect the product's actual 
Annual Fuel Utilization Efficiency (AFUE). Because manufacturers cannot 
determine the configuration of the equipment installed in the field, 
GAMA (527896-00011) contended that a single rating on the 
product would be ``problematic.'' As GAMA has explained in the past, 
the disclosure of more than one rating for multi-positions provides 
more precise information to consumers about the expected efficiency of 
the product under different airflow configurations.\32\ As GAMA 
(527896-00011) noted in its

[[Page 49955]]

comments, the FTC staff has interpreted the Appliance Labeling Rule to 
permit the disclosure of multiple ratings for multi-position furnaces 
on the current EnergyGuide label.\33\ GAMA (527896-00011) 
implied that space constraints on the nameplate may make it difficult 
to provide such multiple ratings. GAMA (527896-00011) also 
raised concerns about the efficacy of placing the efficiency 
information on the furnace nameplate because the nameplates generally 
appear on the product's interior.
---------------------------------------------------------------------------

    \32\See FTC Staff Opinion Letter from James G. Mills, FTC, to 
Joseph M. Mattingly, GAMA, April 13, 1999.
    \33\Id.
---------------------------------------------------------------------------

    ARI (527896-00010), which concluded that a marking 
requirement would not be more effective than the current label, also 
raised a series of concerns.\34\ First, it stated that, because energy 
ratings only reflect the performance of the most common condenser/coil 
combination, the rated information on a permanent mark may be different 
from the actual system purchased by the consumer. Moreover, ARI 
(527896-00010) asserts this information is best provided 
through fact sheets or industry directories. Second, ARI 
(527896-00010) indicated that a permanent mark is not 
necessary to allow consumers to confirm that the model ordered is the 
one that has been installed. ARI (527896-00010) argued that 
this ``can easily be verified today by checking the model number on the 
product nameplate against the manufacturer's fact sheet or the 
information in the ARI directory of certified products.'' Third, ARI 
(527896-00010) argued that the Commission should not consider 
the needs of energy auditors because, in its view, the intent of EPCA 
is to aid consumers in their purchasing decisions, not energy auditors 
in conducting audits. Moreover, ARI (527896-00010) believes 
the needs of auditors are best met by industry fact sheets and 
directories. Fourth, ARI (527896-00010) stated that a 
permanent marking requirement would be more expensive to implement than 
the current EnergyGuide label. It noted that California's marking 
requirements do not apply to residential heating and cooling products. 
Therefore, manufacturers are not currently marking these products, 
contrary to the discussion in the NPRM.\35\ Finally, ARI 
(527896-00010) indicated that it would support maintaining the 
current EnergyGuide label ``if FTC strongly believes that a label of 
some sort is necessary.''
---------------------------------------------------------------------------

    \34\See GAMA (527896-00011), Fujitsu (527896-
00007), and CEE (527896-00016).
    \35\See also Fujitsu (527896-00007) and GAMA 
(527896-00007).
---------------------------------------------------------------------------

    No commenter opposed the proposal to retain EnergyGuide labels for 
water heaters. GAMA (527896-00011) supported the Commission's 
decision to maintain separate range categories for storage and tankless 
water heaters.
    Pre-Purchase Information Disclosures
    The comments presented a variety of opinions regarding the 
Commission's proposal to simplify the requirements for the disclosure 
of efficiency information. Several commenters generally supported the 
Commission's proposal to simplify the fact sheet requirements and 
provide more flexibility to manufacturers.\36\ For example, First 
Company (527896-00008) explained that it supports ``giving 
manufacturers the flexibility to provide energy information to 
distributors and retailers through fact sheets, directories or product 
brochures and to make the information available electronically via 
websites or e-mails.''
---------------------------------------------------------------------------

    \36\Fujitsu (527896-00007), GAMA (527896-
00011), Rheem (527896-00013), EEI (527896-00005), 
and First Company (527896-00008).
---------------------------------------------------------------------------

    While no commenters opposed the Commission's proposal in its 
entirety, some urged the Commission to require the disclosure of 
additional information. For example, ACEEE (527896-00015) 
suggested capacity should be added to the labeling or marking 
requirements and that, for furnaces and boilers, capacity should be 
based on ``output,'' not ``input'' as required by current regulations.
    ACEEE (527896-00015) also raised concerns about 
disclosures for split system central air conditioners. Such systems 
contain two components: a condenser (usually installed outdoors) and a 
coil (installed indoors). Different combinations of condensers and 
coils usually yield different efficiency ratings. Manufacturers under 
the FTC's current Rule must label only the condenser. In addition, the 
Rule requires that the rating for a particular condenser be either: 1) 
the system efficiency rating using the most common coil sold with that 
condenser; or 2) the system efficiency ratings of each separate coil/
condenser combination sold by the manufacturer. To help consumers and 
installers with matching condensers and coils at the time of purchase, 
ACEEE (527896-00015) urged the Commission to require a table 
of information designating the capacity or other performance parameters 
required so that the system will provide the certified performance 
promised by the condenser label. Similarly, Consumers Union 
(527896-00012) urged the Commission to require comparative 
energy information online noting that most consumers do not go to 
showrooms to compare these products. CEE (527896-00016) also 
recommended that the FTC require equipment manufacturers to disclose 
the energy efficiency range of ratings of a given condenser when 
combined with various matching coils (and furnaces, if applicable). It 
also urged the Commission to require a statement about the importance 
of matched systems in achieving energy efficiency. In addition, CEE 
(527896-00016) urged the Commission to work with ARI and GAMA 
to ensure that efficiency information (e.g., the Seasonal Energy 
Efficiency Ratio (the ``SEER'' rating)) is available online.
    Some comments addressed whether operating cost information 
disclosures should be required for central air conditioners and 
furnaces. In particular, Rheem (527896-00013) supported the 
FTC's proposal to eliminate required cost disclosures and noted that 
``the determination of operating costs is complicated by regional 
climate and energy costs.'' First Company (527896-00008) also 
indicated that operating cost information for these particular products 
is ``of little value to consumers because these costs are highly 
dependent on a number of variables . . . .'' ARI (527896-
00010) agreed that average cost information for heating and cooling 
equipment would be of limited use to consumers on labels. ARI 
(527896-00010), however, plans to provide average operating 
cost information as part of its online directory. Neither ARI nor other 
entities provided any detailed comments on whether the FTC should 
require some sort of national average cost information (and what 
methodology should be used for such calculations).
    Several commenters addressed how sellers should provide the 
required information. Some supported the Commission's proposal to 
provide sellers with more flexibility in the dissemination of this 
information, including electronic distribution.\37\ Fujitsu 
(527896-00007) supported allowing the provision of information 
over the Internet. CEE (527896-00016), however, raised 
concerns with the proposal. It suggested that the FTC require 
contractors to present energy information at the time of sale to 
consumers because not all consumers have access to the Internet.
---------------------------------------------------------------------------

    \37\See GAMA (527896-00011), Fujitsu (527896-
00007), and Burnham (527896-00001).
---------------------------------------------------------------------------

    Discussion: The comments addressed the two primary issues raised in 
the NPRM: the proposed marking

[[Page 49956]]

requirements and the proposed pre-purchase information requirements. 
With regard to the marking requirements, the Final Rule continues to 
require manufacturers of central air conditioners and furnaces to place 
EnergyGuide labels on their products. The Rule also will continue to 
require EnergyGuide labeling for water heaters. With regard to pre-
purchase energy information, the Final Rule contains the simplified 
point of sale information requirements contained in the Proposed Rule. 
The Final Rule does not require the dissemination of operating costs 
information for these products because it is unlikely that such 
information can presented in a manner that provides benefit to 
consumers.
    Marking
    The Commission has considered the comments submitted on the 
proposed marking requirement and has determined to retain the existing 
labeling requirements for these products. Under EPCA, the Commission 
may require additional energy information on the product, such as the 
proposed marking requirements, if such information would ``assist 
consumers in making purchasing decisions or in using the product and 
such requirements would not be unduly burdensome to manufacturers.'' 
(42 U.S.C. 6294(c)(5)). As discussed above, the comments raised 
significant concerns about the feasibility and cost of the proposed 
marking requirements. At the same time, some industry members indicated 
the continued labeling would not pose such problems.
    As discussed in the NPRM, the record demonstrates that the 
information on labels provides a benefit to consumers in both their use 
of existing equipment and their purchasing decisions for replacement 
products. The Commission also suggested that the label may help 
consumers confirm that the model they have purchased is the one that 
has been installed. The record developed since the NPRM does not alter 
these findings. We, therefore, continue to believe that some form of 
disclosure is necessary to help consumers with purchasing decisions and 
with their use of the product. We recognize that permanent marking may 
achieve these benefits. However, given the comments we cannot rule out 
the possibility that such marking would be unduly burdensome. The Final 
Rule, therefore, continues to require EnergyGuide labels for this 
products. We note that nothing in the Rule prohibits manufacturers from 
providing energy information on their product nameplates or elsewhere 
on the product.
    Under the Final Rule, the EnergyGuide labels will continue to 
provide efficiency ratings and efficiency range information as the only 
energy-related disclosures. However, we have changed the appearance and 
content of the label to make it consistent with the new label format 
for other products. In addition, we have amended the format and 
placement requirements to require that the label be affixed to the 
product in the form of an adhesive label. Such labels will increase the 
likelihood that the label will remain on the product after purchase, 
and be available to aid consumers in their equipment purchasing 
decisions and use of the product.
    Pre-Purchase Information Disclosures
    The Final Rule eliminates the detailed, prescriptive requirements 
currently applicable to fact sheets for these products and replaces 
them with a requirement to provide consumers with basic energy 
performance information.\38\ The new, simplified requirements should 
make it easier for manufacturers and installers to ensure consumers 
have the energy information they need while reducing the burden on 
manufacturers. The Commission also has considered four additional 
issues raised by the commenters: comparability range information, 
ratings for split system central air conditioner combinations, cost 
disclosures, and Internet availability. Each of these issues is 
discussed in turn as follows.
---------------------------------------------------------------------------

    \38\As explained earlier, several commenters supported this 
overall change. No commenter challenged our assertion that the 
equations and charts on the current fact sheets are not particularly 
helpful to the average consumer.
---------------------------------------------------------------------------

    Contrary to the proposal in our NPRM, the Rule will continue to 
require ranges of comparability for heating and cooling equipment in 
fact sheets, directories, and online databases covered under section 
305.14 of the Final Rule. Our NPRM suggested that such information may 
have a reduced value in directories and online databases where data for 
comparative models is readily available. However, both CEE 
(527896-00016) and Consumers Union (527896-00012), 
two commenters with significant expertise on these issues, argued that 
such information is important for consumers before purchase. Consumers 
Union (527896-00012) noted that most consumers do not visit 
showrooms where they can compare different models of these products. 
Because many consumers may not have access to the EnergyGuide label 
prior to purchase, this range information should be useful to them in 
their buying decisions.
    The current Rule (Sec.  305.11(a)(5)(iii)) requires that 
manufacturers disclose the actual ratings of the various combinations 
sold by the manufacturer or disclose the rating for the most common 
combination.\39\ Several commenters suggested that the Commission 
require manufacturers to provide efficiency ratings for all condenser/
coil combinations of split system central air conditioners. Such a 
proposal raises two concerns. First, a requirement to disclose the 
ratings for all possible combinations may not be practical for labeling 
or fact sheet-type disclosures where space is limited. Second, such 
matching information for split system units is already available 
through the ARI directory.\40\ Accordingly, the Commission is not 
amending the disclosure rules to require disclosure of ratings for all 
condenser/coil combinations for split systems. The Final Rule clarifies 
that manufacturers may provide either the ratings for specific 
condenser/coil combinations or the rating for the most common 
combination. We note that nothing in the Final Rule prohibits the 
manufacturers from providing the ratings for multiple combinations, if 
such disclosures are feasible for them.
---------------------------------------------------------------------------

    \39\The current Rule does not require the publication of such 
information in fact sheets or directories.
    \40\Under DOE regulations (10 CFR Sec.  430.24(m)), split system 
manufacturers must certify the various condenser/coil combinations 
through testing and/or the use of an alternative rating method. 
Accordingly, the ratings for various condenser/coil combinations 
sold by the manufacturers are available to the public through the 
ARI directory (see http://www.aridirectory.org).
---------------------------------------------------------------------------

    As proposed in the NPRM, the Final Rule does not require the 
disclosure of cost information for these products in labels or in fact 
sheets. As the comments suggested, operating costs for this type of 
equipment are highly dependent on regional weather conditions. This 
would add a layer of variability to the operating costs estimates 
beyond individual use and utility rates already applicable to most of 
the other labeled products like refrigerators.\41\ In addition, 
consumers generally purchase heating and cooling equipment through a 
knowledgeable professional (such as a contractor) and do not select the 
models themselves in showrooms or online. As a result, consumers may 
have less need for operating cost information to help them compare 
products. Accordingly, the Final Rule does not require disclosure of 
operating cost information. At the same time, we recognize that 
operating cost may be beneficial to some consumers. The Final Rule does 
not

[[Page 49957]]

prohibit the dissemination of cost information for such products. 
Manufacturers and associations that choose to provide operating cost 
information should continue to follow section 323(c) of EPCA (42 U.S.C. 
Sec.  6293(c)), which requires that any representation regarding the 
energy use of a covered product must ``fairly disclose'' the results of 
the DOE test procedure.
---------------------------------------------------------------------------

    \41\No comments supported a required disclosure of national 
average cost information.
---------------------------------------------------------------------------

    Finally, the Final Rule allows heating and cooling equipment 
retailers to use a variety of means, such as fact sheets, directories, 
and Internet-based data, to provide customers with access to required 
energy information prior to purchase. We recognize that some purchasers 
of residential heating and cooling equipment may not have immediate 
access to the Internet. Under the amended Rule, sellers who negotiate 
contracts in customers' homes and who rely on Internet-based data to 
fulfill the disclosure obligations in section 305.14 must provide 
customers with instructions to access such information and let them 
read the information before they agree to purchase the product. The 
Final Rule provides sellers with flexibility in complying with the 
requirements to meet the needs of individual customers, including those 
who do not have Internet access. For example, some retailers may choose 
to have paper versions of the required information available to provide 
to customers who do not have immediate Internet access. Others may 
decide to bring an electronic version of the Internet-based information 
(e.g., a downloaded directory or fact sheet) themselves using a laptop 
computer or other device. In limited cases where the retailer does not 
bring printed material (or a laptop computer) to the customer's home, 
customers should have ample time to access the information online at a 
local library or other public access site due to the nature of heating 
and cooling equipment sales, which often involve more than one visit to 
the customer's home.\42\ As Internet penetration increases in U.S. 
households, we believe that this matter will become less and less of an 
issue.\43\
---------------------------------------------------------------------------

    \42\See, e.g., Workshop Transcript, 164.
    \43\One commenter suggested that the FTC require the disclosure 
of product capacity on the product itself. Though the current rule 
does not require the disclosure of capacities on labels, it does 
require the disclosure of such information on fact sheets and in 
directories. In addition, manufacturers must report capacity 
information to the FTC under existing reporting requirements. Under 
section 305.14 of the Final Rule, manufacturers must continue to 
provide capacity as part of the pre-purchase energy disclosures made 
to consumers. The disclosed capacity under the Rule must be that 
yielded by the DOE test procedure (see 10 CFR section 305.7).
---------------------------------------------------------------------------

D. Refrigerator Categories

    Background: During this proceeding, the Commission explored whether 
the range categories for refrigerators (used to determine the range of 
comparability on the EnergyGuide label) should be combined to include 
models with different door configurations and features. The current 
labeling requirements designate separate comparability ranges for 
various refrigerator sub-categories (or styles) such as side-by-side 
door configurations, models with top-mounted freezers, or those with 
through-the-door ice service. This allows consumers easily to compare 
the energy use of similarly configured refrigerators and at a glance to 
determine a product's energy use in comparison to the entire market for 
similar models. The current system, however, does not allow for such 
comparisons across categories. Consumers, however, can employ the 
energy use and operating cost information on the current labels to 
compare the product's energy performance to other refrigerators in the 
showroom regardless of configuration.
    This problem is complicated by the fact that some refrigerator 
configurations are generally less efficient than others. For example, 
top-mounted freezer models generally use less electricity than 
comparably sized side-by-side models. As a result, the range 
information on a particular side-by-side refrigerator label may compare 
favorably to other side-by-sides, but fail to show that the model uses 
significantly more energy than an average refrigerator with a top-
mounted freezer. As part of its Workshop, the FTC, therefore, sought 
comments on whether the refrigerator labels should present 
comparability information for all refrigerators regardless of 
configurations (see 72 FR 6853-6854). The comments varied. Some 
suggested that the combination of the range information would make it 
easier for consumers to compare across categories. Others indicated 
that most consumers do not shop across configurations and, therefore, 
combining ranges would not be desirable.
    In our NPRM, the Commission explained that it was not proposing to 
alter current range categories for refrigerators because doing so runs 
counter to the system used by the DOE and the ENERGY STAR programs. For 
example, ENERGY STAR-qualified side-by-side door models are highly 
efficient compared to other side-by-side models but not necessarily 
compared to all other refrigerator-freezers. Therefore, if the 
comparison range on the EnergyGuide label included all configurations, 
some ENERGY STAR designated models would appear as less efficient on 
the range than some non-ENERGY STAR models. This could cause consumer 
confusion in the showroom and may cause confusion about the ENERGY STAR 
designation. Accordingly, the Commission indicated that a change in the 
current range system would not provide significant benefits for 
consumers.
    Although our NPRM did not propose changes to the refrigerator 
categories, the Commission recognized the need to clarify label 
information related to product categories. Accordingly, the Commission 
proposed amending the Rule to require the following explanatory 
statement on refrigerator labels: ``Size, door attributes, and ice 
features affect energy use--so other refrigerators may have lower or 
higher operating costs.'' In addition, the NPRM contained a proposal to 
require more explicit language on the refrigerator-freezer label to 
clarify that the range only applies to the specific subcategories of 
products. For instance, the range for a side-by-side through-the-door 
ice label would have stated: ``Range for models of similar capacity 
with automatic defrost, side-mounted freezer, and through-the-door 
ice.'' The Commission sought comments on these proposals. The NPRM also 
asked whether the Commission should amend the categories to include 
refrigerator-freezers with bottom-mounted freezers and through-the-door 
ice service (a configuration that has recently appeared on the market).
    Comments: Some commenters supported the Commission's decision to 
maintain the existing range categories for refrigerators. AHAM 
(527896-00006) stated that consumers rank configuration as a 
top priority when choosing a refrigerator and, therefore, would not 
benefit from combined range information on the label. Whirlpool 
(527896-00004) similarly explained that consumers identify 
their model size needs and consider which configuration they want 
before they begin the shopping process. In AHAM's (527896-
00006) view, the prominent disclosure of operating costs on the label 
will permit consumers to compare models across all categories using a 
uniform measurement.
    Other commenters, however, urged the Commission to reconsider its 
decision. ACEEE (527896-00015) noted that the FTC's label 
research underscores consumers' lack of

[[Page 49958]]

knowledge on this issue, and thus, the need to eliminate separate 
categories. By eliminating subcategories, ACEEE (527896-00015) 
contends the FTC could improve the effectiveness of the label and 
better meet the original intent of the labeling program. Consumers 
Union (527896-00012) suggested that the Commission include 
ranges for all refrigerator categories on all refrigerator labels to 
allow consumers to understand the variability in energy use among 
configurations. CEE (527896-00016) also urged the Commission 
to reconsider and argued that ``while the inclusion of some text on the 
refrigerator label to explain the different operating cost and energy 
use ranges for the different types of refrigerators might help 
consumers' understanding of the label, it still does not allow 
consumers to compare efficiency across different types of 
refrigerators.''
    Several commenters raised concerns with the new statements proposed 
for the EnergyGuide label related to refrigerator categories. Whirlpool 
(527896-00004) indicated that, while it may be appropriate to 
inform consumers that product features affect energy costs, it is 
unnecessary to insert a statement identifying the model's configuration 
category (e.g., ``Range for models of similar capacity with automatic 
defrost, side-mounted freezer, and through-the-door ice''). AHAM 
(527896-00006) argued that neither of these disclosures is 
desirable. It urged the Commission to rely on the prominence of the 
operating cost disclosure as the most effective way to allow consumers 
to compare energy performance across different designs. Regarding the 
statement identifying the model's category, AHAM (527896-
00006) concluded that the ``the need to address certain variables [such 
as the range category] is outweighed by the benefit of having a simple 
universal measurement.'' AHAM (527896-00006) asserted that 
both proposed statements on the label are potentially confusing to 
consumers, redundant, and would create unwanted clutter. On the other 
hand, Consumers Union (527896-00012) suggested the statement 
is not adequate because it may fail to alert consumers to the fact that 
the range of refrigerator comparisons is ``very narrowly defined.''
    In response to questions about labeling refrigerator-freezers with 
a bottom-mounted freezer and through the door ice, Consumers Union 
(527896-00012) stated that the introduction of these models is 
increasing and should accelerate in the future. It, therefore, urged 
the Commission to create a separate category. In contrast, AHAM 
(527896-00006) and Whirlpool (527896-00004) argued 
that these models represent a small portion of total refrigerator sales 
and the number of models currently available do not warrant the 
creation of a new category.
    Discussion: The Commission has decided to maintain the current 
refrigerator categories.
    As comments from ACEEE (527896-00006) and Consumers Union 
(527896-00012) indicate, combined range information for all 
refrigerators may provide a benefit by alerting consumers to the fact 
that the energy use of refrigerators can vary by configuration.\44\ As 
discussed in detail in the NPRM though, we continue to believe that the 
combination of refrigerator classes would negatively impact the ENERGY 
STAR program which uses the current refrigerator categories in setting 
its qualification criteria. Because the ENERGY STAR logo appears on the 
EnergyGuide label itself, we believe it is very important to align the 
FTC refrigerator categories with those used by the ENERGY STAR program. 
Without such alignment, some ENERGY STAR models may fall on the high 
end of the operating cost range, creating possible confusion and 
potentially reducing consumer confidence in both the ENERGY STAR 
program and the EnergyGuide label. This factor alone is dispositive in 
our decision.
---------------------------------------------------------------------------

    \44\We note that the current magnitude of the benefit from 
combined range information is uncertain. At some model sizes, there 
are simply no (or very few) models of certain configurations 
available on the market. For example, there are few side-by-side 
door models (for automatic defrost refrigerator-freezers) available 
at sizes under twenty cubic feet. This means, for example, that 
combining the ranges would provide little benefit to a consumer 
shopping for an 18 cubic foot refrigerator-freezer. Likewise, there 
are few top-mount and bottom-mount refrigerator-freezer models 
available over twenty-three cubic feet in size. In addition, the 
FTC's consumer research (Q.805) suggested that over half of recent 
refrigerator purchasers did not consider different model 
configurations when shopping.
---------------------------------------------------------------------------

    We have also considered the comments in response to our proposal to 
include more information about the range on the label, as well as the 
other suggested additions (e.g., identifying the ranges for all 
configurations on every label and providing the make and model number 
of the products at the high and low end of the range). We are concerned 
that the inclusion of such additional information will clutter the 
label and create confusion without significant benefit to consumers. 
Likewise, we are concerned that the language proposed in the NPRM, 
which would have included the complete category description directly 
under the range, would crowd the label unnecessarily, thereby reducing 
its overall effectiveness.
    At the same time, the comments and the FTC research results (see 72 
FR 6852) suggest that it is important to provide a complete, accurate 
description of the model types covered by the displayed range. 
Accordingly, the Final Rule requires such information at the bottom of 
the label not only for refrigerators, refrigerator-freezers, and 
freezers, but for most other covered products bearing an EnergyGuide 
label. Under the Final Rule, the range itself would bear the simple 
statement: ``Cost range of similar models.''
    With regard to bottom-mount models with through the door ice, the 
Commission has decided not to amend the Rule to create another 
refrigerator category because it is unclear whether there will be a 
large increase in the number of these models available in the future. 
Without a clear indication that this configuration will be widely 
available in a large number of different models, we are reluctant to 
add to the already long list of refrigerator categories. The Commission 
may consider changes in the future if a significant number of such 
models appear on the market and we determine that the creation of 
another category would be beneficial to consumers.

E. Revisions to Ranges of Comparability and Energy Price Information

    Background: Under the current Rule, the EnergyGuide label must 
contain a range of comparability that shows the highest and lowest 
energy consumption or efficiencies for all similar appliance 
models.\45\ EPCA does not specify when the Commission must change the 
ranges but states it cannot do so ``more often than annually.'' (42 
U.S.C. 6296(c)). Under the Commission's existing regulations, the FTC 
examines the ranges once a year and revises them on a product by 
product basis if the upper or lower limit on the applicable range has 
changed by 15% or more. (16 CFR Sec.  305.10). For some products, the 
Commission has amended ranges several times over the last few years, 
for others less frequently. When the Commission makes these changes, 
manufacturers must change their labels to reflect the new ranges and 
update the estimated annual operating costs on the labels using new 
national average fuel costs, published annually by DOE. Accordingly, 
under the existing approach, the average fuel costs used on the label 
are tied to the year in which the ranges were last amended. This

[[Page 49959]]

creates inconsistent cost information on labels across different 
appliances.
---------------------------------------------------------------------------

    \45\42 U.S.C. 6294(c)(1)(B).
---------------------------------------------------------------------------

    Unfortunately, range changes also can cause the labels on different 
models of the same appliance, in the same showroom to display 
inconsistent information,\46\ particularly when the models on display 
have been manufactured at different times. This confusion is 
exacerbated by frequent range changes. Frequent revisions also impose 
burdens on manufacturers who must change their product labels with each 
new revision. The ANPR contained a series of questions about these 
issues, including whether the FTC should change the frequency with 
which it examines ranges.
---------------------------------------------------------------------------

    \46\Inconsistent range information on similar models in the same 
showroom may confuse consumers as they seek to compare products.
---------------------------------------------------------------------------

    In our NPRM, the Commission proposed amending section 305.10 to 
change the frequency with which we alter range and national average 
energy price information to once every five years. We suggested that 
this approach would minimize problems associated with inconsistent cost 
and range information on showroom models, and make energy cost 
information uniform across appliance categories. The Commission also 
indicated that it would consider changes to range and cost information 
if substantial fluctuations occurred in the interim period. The NPRM 
sought comments on this proposal.
    Comments: In general, commenters supported the Commission's 
proposal to establish a multi-year cycle for amending cost and range 
information. There was some disagreement, however, regarding the 
appropriate interval. Several commenters supported the proposed five-
year schedule.\47\ GAMA (527896-00011), for example, explained 
that the five-year period will provide consistent cost and range 
information for products in retail showrooms and, at the same time, 
will reduce the burdens on manufacturers. CEE (527896-00016), 
which indicated that five years was a reasonable span, noted that such 
an approach should lower compliance costs and decrease uncertainty. In 
addition, EEI (527896-00005) suggested that the Commission 
consider updating the national average cost estimate with a ``rolling 
average'' using, for example, past and projected fuel price averages 
based on DOE figures.
---------------------------------------------------------------------------

    \47\See GAMA (527896-00011), CEE (527896-
00016), ACEEE (527896-00015), and EEI (527896-
00005) (As discussed further in this section, CEE indicated that the 
five-year period was reasonable ``provided that the FTC allows 
exceptions for any dramatic market changes for a given appliance.'')
---------------------------------------------------------------------------

    Consumers Union (527896-00012) strongly supported a five-
year schedule for changes to national average energy cost information 
but urged the Commission to shorten the time period for changes to 
ranges of comparability. It argued that the proposed five-year period 
is too long because products will drop outside the range over time, 
leading to consumer confusion and the ``dismissal of the EnergyGuide as 
a useful tool.'' It suggested that the range should start at 25% below 
the most efficient product on the market to leave enough room for 
efficiency improvements.
    AHAM (519870-00006) and Whirlpool (527896-00004) 
supported the Commission's proposal to set a regular time period for 
range and cost updates but believed the interval should be shorter than 
five years. Whirlpool (527896-00004), which suggested an 
interval of three years, argued that a five year period may lead to 
very large changes in energy costs at the time of updates. AHAM 
(527896-00006), which proposed a ``two to three year'' 
interval, argued that a large number of new products would fall outside 
of the range of comparability during the five-year period. AHAM 
(527896-00006) suggested that such problems would be 
exacerbated by less frequent reporting requirements. AHAM 
(527896-00006) also asked the Commission to explain the 
process for labeling products that fall outside of the range of 
comparability.
    Several commenters asked the Commission to provide more detail 
regarding interim amendments to range and cost information as a result 
of ``dramatic market changes'' within the proposed five year cycle. For 
example, ACEEE (527896-00015) urged the Commission to monitor 
federal efficiency standards, the introduction of new technologies, 
sustained changes in energy costs, and large increases in energy 
prices. Consumers Union (527896-00012) asked for a more 
specific statement regarding future changes, suggesting that the 
Commission commit to changing the cost and range information before the 
end of the five year period if ``energy costs change by more than 25% 
during the interim.'' CEE (527896-00016) also asked for more 
specific guidance on this issue.
    Discussion: The Commission amends the Rule as proposed to set a 
five-year schedule for range of comparability information and annual 
cost information.\48\ Although we recognize the potential benefit of 
more frequent changes, particularly to range of comparability 
information, we believe that the need for consistent label information 
is paramount and, on balance, deserves greater weight than the need for 
more frequent updates. Our primary concern is the appearance of 
inconsistent cost and range information on labels in showrooms and 
catalogs. Such inconsistency could lead to consumer confusion and a 
lack of confidence in the label. To minimize such concerns, we believe 
that the five-year schedule strikes the correct balance between 
maintaining consistent disclosures and providing updates to cost and 
range information. The five year interval approximates the frequency of 
changes to the ranges in the past few years. For example, over the last 
several years, the Commission amended refrigerator ranges in 2001 (Nov. 
19, 2001 (66 FR 57867)), and then again in 2006 (Jan. 31, 2006 (71 FR 
4983)). Ranges for standard clothes washers changed in 2000 (May 11, 
2000 (65 FR 30351), and then 2005 (Jan. 27, 2005 (70 FR 3875). The 
Commission has amended ranges for other products at intervals greater 
than five years (e.g., room air conditioners, central air conditioners, 
furnaces, and water heaters). Only two product categories, dishwashers 
and compact clothes washers, have changed at less than a five-year 
interval in the recent past.\49\
---------------------------------------------------------------------------

    \48\The Final Rule amends section 305.10(b) as proposed to 
insert the phrase ``annual operating cost'' in lieu of ``annual 
energy consumption.''
    \49\The new amendments do not alter the longstanding process 
detailed in section 305.10(c) for labeling new products that fall 
outside of existing ranges. That provision directs manufacturers to 
provide the product's annual energy consumption (now estimated 
operating cost) on the label, but omit placement of that figure on 
the comparability range. The manufacturers must also add a sentence 
below the scale indicating that the model's estimated energy cost 
was not available at the time the range was published.
---------------------------------------------------------------------------

    As discussed in our NPRM, the Commission will consider changes to 
cost and range information between the five year updates. We are 
reluctant to identify a specific threshold for such changes. In fact, 
the use of such a threshold simply would retain the current Rule's 
approach, which triggers changes to the ranges using a specific 
percentage. Under the Final Rule, we believe that any interim changes 
to range and cost information should be made on a case-by-case basis, 
and only when such information has changed substantially. Parties who 
identify the need for such interim changes in the future may petition 
the Commission.

[[Page 49960]]

    We also note that the Final Rule does not adopt the suggestion to 
start the range at 25% below the most efficient product on the market. 
Although such an approach could provide a cushion for energy efficiency 
improvements, we are concerned that such information would be difficult 
to communicate to consumers and could lead to significant confusion. We 
also are not adopting a ``rolling average'' cost approach at this time. 
Given the difficultly in predicting future prices, it is unclear 
whether the use of future projections for the cost information on the 
label would be helpful for consumers. We are not, however, ruling out 
consideration of this concept in the future.
    Although the Final Rule amends the frequency of changes for the 
cost and range information on the label, it does not change the 
frequency of the Rule's reporting requirements. Section 326(b)(4) of 
EPCA (42 U.S.C. Sec.  6296(b)(4)) requires annual reporting from 
manufacturers, regardless of the frequency of range changes. Continued 
annual reporting will be useful to the Commission in reviewing whether 
the ranges for certain product categories should be changed within the 
five year cycle and in addressing compliance issues. The submissions, 
which are placed on the public record pursuant to 16 CFR Sec.  4.9, 
also provide consumers and other interested parties with information 
about the energy use of models currently on the market.

F. MEF Descriptor for Clothes Washers

    Background: In our ANPR (70 FR 66307, 66310), we asked whether the 
clothes washer label should disclose the model's efficiency rating 
using the measure currently required by DOE (the ``Modified Energy 
Factor'' or ``MEF'')\50\ instead of the product's annual energy 
consumption. Several commenters responded that the Commission should 
not change current descriptors.\51\ In the NPRM, the Commission noted 
that a recent news report questioned the consistency between the MEF 
information used for ENERGY STAR ratings and the electricity use 
information on the EnergyGuide label.\52\ Accordingly, the Commission 
again asked whether MEF information should be provided on the label and 
whether, under current test procedures, manufacturers can derive annual 
operating cost information from MEF ratings.
---------------------------------------------------------------------------

    \50\MEF is an efficiency rating for clothes washers that takes 
into account the energy required for the removal of moisture 
remaining in the wash load after the washer cycle is complete.
    \51\Alliance Laundry Systems (519870-00008), Whirlpool 
(519870-00013), AHAM (519870-00016), NRCAN 
(519870-00020), and GE (519870-00027).
    \52\See ``Washers & Dryers, Cycles of Change,'' Consumer 
Reports, Vol. 72, No. 1, Jan. 2007, at 39.
---------------------------------------------------------------------------

    Comments: Several commenters recommended that the Commission 
continue to provide annual electricity and cost information on the 
label and recommended that the Commission not include MEF information. 
Whirlpool (527896-00004) argued that the inclusion of MEF 
ratings would not provide any value to the consumer and explained that 
the MEF could not be used to derive an annual operating cost for the 
clothes washer alone. Both EEI (527896-00005) and AHAM 
(527896-00007) suggested the inclusion of the MEF information 
on the label would create consumer confusion. CEE (527896-
00016) suggested that the use of MEF by the ENERGY STAR program is 
irrelevant because consumers do not need to be familiar with MEF to 
understand that a product is ENERGY STAR qualified. In contrast, on the 
EnergyGuide label consumer understanding of an MEF rating would be 
paramount.
    Consumers Union (527896-00012) disagreed and urged the 
Commission to include information related to energy needed to dry 
clothes, a measure which is accounted for in the MEF rating. According 
to Consumers Union (527896-00012), such information ``can be 
readily ascertained . . . simply by assigning 0.5 kW-hours to every 
pound of moisture that remains at the end of the rinse cycle.''
    Discussion: The Commission has decided to retain the annual 
electricity and cost information for clothes washers. First, we note 
that no commenters suggested that the current energy use and annual 
operating cost disclosures on the EnergyGuide label are unreliable or 
inconsistent with MEF ratings. No one indicated, for example, that some 
products with relatively high efficiency MEF ratings use large amounts 
of energy (and thus cost more to operate) compared to similar models. 
We, however, understand that by taking into account energy performance 
measures not captured by a washer's energy use alone, an MEF rating can 
produce a more complete picture of total energy use. Despite this 
potential benefit, disclosure of the MEF rating on labels poses two 
potential problems. First, we share the concerns raised by AHAM and EEI 
that inclusion of MEF information on the label may be confusing to 
consumers. MEF is unusual in that it takes into account the energy use 
of a separate appliance category (i.e., dryers). We are concerned that 
the complexity of describing MEF accurately could render the label too 
confusing for some consumers and too cluttered to provide any benefit 
to others. Second, using MEF (instead of electricity use) could cause 
complications with the calculation and disclosure of the product's 
annual operating cost. Whirlpool explained that manufacturers cannot 
derive operating cost from the MEF under current DOE procedures. 
Therefore, even if MEF appeared on the label, washer energy use would 
continue to provide the basis for the estimated yearly operating cost 
disclosure, leaving the incorrect impression that the operating cost 
estimate stems from the MEF rating. Given these concerns, the 
Commission is reluctant to provide MEF information in the absence of 
compelling data that MEF provides more useful information than annual 
electricity use and operating cost. Accordingly, the Commission has not 
changed the energy descriptors for clothes washers.
    We recognize that the ENERGY STAR and DOE standards programs use 
MEF as the primary measure of washer energy performance. During this 
proceeding, we have sought to ensure that the FTC's labeling 
requirements are compatible with the ENERGY STAR program (e.g., 
concerns over categorical labeling and combining refrigerator 
categories). In this case though, there is nothing to indicate that 
continued disclosure of energy use (and not MEF) on the EnergyGuide 
label would have negative impacts for the ENERGY STAR program.

G. Placement of the EnergyGuide Label on Covered Products

    Background: In our NPRM, the Commission proposed to modify and 
clarify the requirements for posting labels. The current requirements 
describe various methods for posting labels (adhesive labels, flap 
tags, etc.) and various methods for placing the labels on the products 
themselves. Under the Proposed Rule, manufacturers would have had to 
affix labels on their products in one of two ways: an adhesive label or 
hang tag. In either case, the label would have to be attached to the 
product so that the label was ``prominent to a consumer examining the 
product.'' In our NPRM, the Commission proposed allowing manufacturers 
to place the label on the exterior or interior of the product, if it 
were prominent to consumers examining the appliance and as long as it 
would not become dislodged during normal handling throughout the chain 
of distribution. The Commission explained that this directive would set 
a clear performance-based standard that

[[Page 49961]]

allowed manufacturers to adjust the location of the label depending on 
the product type and configuration. The Commission invited comment on 
this proposal.
    Comments: The comments generally supported the proposal regarding 
label placement. For example, Whirlpool (527896-00004) 
indicated that the performance criteria suggested by the Commission 
``are superior to detailed placement specifications.'' AHAM 
(527896-00006) mostly supported the changes but suggested that 
the Commission prohibit the placement of hang tags on the outside of 
the product. ``Such tags can be damaged or accidentally removed during 
distribution,'' explained AHAM (527896-00006), ``and therefore 
may be absent when products reach retail.''
    Discussion: In response to concerns raised by AHAM 
(527896-00006), we have modified the proposal to prohibit the 
use of hang tags on the exterior surface of covered products. AHAM's 
comment (527896-00006) suggests that the use of hang tags on 
the outside of appliances may cause EnergyGuide labels to become 
misplaced or damaged easily. The effectiveness of the entire labeling 
program is compromised if products in showrooms do not have the 
required labels. Accordingly, we believe it is important that the Rule 
contain placement requirements that minimize the chance that labels 
will become dislodged from products. In all other respects, we are 
amending the placement requirements in the Rule as proposed. We also 
note that the Final Rule also applies these new placement requirements 
to heating and cooling equipment labels.

H. Catalog Requirements

    Background: The Rule requires any manufacturer, distributor, 
retailer, or private labeler who advertises a covered product in a 
catalog, including a website that qualifies as a catalog, to disclose 
the product's capacity, energy use (or efficiency), and range of 
comparability information. In the NPRM, the Commission proposed 
amending the catalog section to require disclosures of estimated annual 
operating costs for refrigerators, refrigerator-freezers, freezers, 
clothes washers, dishwashers, room air conditioners, and water heaters. 
This change would make the catalog requirements consistent with the 
changes proposed for the EnergyGuide label. The Proposed Rule would 
have continued to require the disclosure of energy efficiency rating 
information for central air conditioners and furnaces.
    The Proposed Rule also would have eliminated the requirement for 
catalog sellers to include range information along with their 
disclosures in the catalogs.\53\ Consumers viewing catalogs are likely 
to see information for a much larger number of models than consumers in 
a showroom. Thus, catalog shoppers do not have the same need for 
comparability ranges. In addition, because the range information in the 
paper catalogs cannot always be presented in the same form as they 
appear on the label, the display of range information in a catalog may 
cause confusion or fail to provide significant benefit to consumers. 
While the benefits of range disclosures in catalogs may be small, the 
burdens of providing this information can be significant. The burdens 
often fall on retailers who are not producing and labeling the products 
themselves. For these reasons, the Commission proposed eliminating the 
range information from the catalog requirements.
---------------------------------------------------------------------------

    \53\EPCA indicates that catalogs must ``contain all information 
required to be displayed on the label, except as otherwise provided 
by the rule of the Commission.'' (42 U.S.C. 6296(a)).
---------------------------------------------------------------------------

    Finally, the NPRM contained several proposed changes to the catalog 
disclosure requirements in section 305.2(m) and newly-designated 
section 305.20 to clarify that Internet-based catalogs must also 
provide ``catalog'' disclosures. The Commission sought comment on these 
proposed changes.
    Comments: The Commission received only two comments in response. 
Both expressed support for the proposed changes. Whirlpool 
(527896-00004) agreed that elimination of the ``range 
information'' requirement for catalogs will reduce consumer confusion. 
AHAM (527896-00006) indicated that ``these changes will allow 
manufacturers to more clearly present the relevant information needed 
to consumers when comparison shopping through a catalog or on the 
internet.''
    Discussion: For the reasons explained above and in the NPRM, the 
Commission has amended the Rule for catalog requirements as proposed. 
We note that several Internet catalog sellers provide hyperlinks to 
EnergyGuide label images generated by manufacturers in lieu of creating 
their own disclosures to meet the Rule's catalog requirements. The 
Final Rule clarifies that such a practice is acceptable.

I. Fuel Cycle Energy Consumption

    Background: In our NPRM, the Commission indicated that earlier 
comments from the American Gas Association (AGA) (519870-
00014) urged the Commission to include information on the label about 
``energy consumption over the full fuel cycle (i.e., total energy 
efficiency) and externalities such as emissions of criteria air 
pollutants and carbon dioxide over the full fuel cycle.'' AGA argued 
that without this information, the label does not allow consumers to 
``make truly informed choices'' and provides information that is 
incomplete and misleading.
    In our NPRM, the Commission explained that, under section 
324(c)(1)(A) of EPCA (42 U.S.C. 6294(c)(1)(A)), the energy consumption 
information required on the Energy Guide label must be derived from 
DOE's test procedures. The current procedures measure end-use energy 
only and not the type of energy consumption described in AGA's comment. 
Accordingly, the Commission indicated that it was not proposing to add 
the information suggested by AGA.
    Comments: In response, AGA (527896-00009) continued to 
urge the Commission to consider the disclosure of fuel cycle energy 
information. AGA stated that there ``is no restriction upon the 
Commission using energy consumption calculations derived from the [DOE] 
test procedures, such as Energy Factor (EF) for water heaters, to 
developing full fuel cycle combustion and emissions estimates for 
subsequent use on the EnergyGuide labels.'' It suggested that the 
``mechanics of translating site energy descriptors into full fuel cycle 
consumption and emissions can be easily developed using available 
federal government data sources and calculation methods.'' AGA urged 
the Commission to pursue actively approaches that explore full fuel 
cycle efficiency and emissions, particularly carbon dioxide emissions. 
AGA concluded that ``[a]t a time when public policy has begun to 
grapple with potential restriction of carbon dioxide emissions and 
possible unintended consequences of regulation, the Commission has an 
opportunity to address this societal need by providing consumers with 
better information so that they can make informed, socially-responsible 
purchase decisions.'' EEI (527896-00005) disagreed, stating 
that ``extraneous information that has no relation to appliance energy 
efficiency, such as source energy estimates, should not be included on 
any revised FTC label.''
    Discussion: The Final Rule does not require disclosures of fuel 
cycle energy information. Though it may be possible to derive fuel 
cycle emissions information from the DOE test procedures, those 
procedures do not specify the means (e.g., necessary assumptions, 
equations, etc.) for

[[Page 49962]]

calculating fuel cycle impacts, including carbon dioxide emissions. In 
addition, although the labeling provision in EPCA (42 U.S.C. 6294) does 
not prohibit specifically the possibility of full fuel cycle 
disclosures, it clearly contemplates the disclosure of site energy use 
(e.g., ``estimated annual operating cost'') and not broader impacts 
such as the carbon emissions of covered products. It is likely that 
such a significant change to the FTC's labeling requirements would 
require substantial changes to DOE test procedures to allow for offsite 
energy use calculations as well as additional research and discussion 
regarding whether such information would be a useful measure of energy 
consumption for consumers.

J. Clothes Washer Labels

    Background: In 2003, the Commission published amendments requiring 
a special headline on clothes washer labels indicating that the product 
had been tested under the 2004 DOE test procedure (68 FR 35458 (June 
18, 2003)). The FTC added this headline at the request of industry 
members because the results of the 2004 DOE test differed significantly 
from the previous test. Although the explanatory language served a 
useful purpose at the time, we suggested in the NPRM that its continued 
presence on the label will gradually lose value and could even confuse 
consumers as the years pass. As the 2004 date becomes more distant, the 
headline may lead consumers to believe that the label or the product 
itself is old, or even obsolete. Accordingly, the Commission proposed 
to amend 305.11 by discontinuing this explanatory language on the 
clothes washer label.
    Comments and Discussion: Both Whirlpool (527896-00004) and 
AHAM (527896-00006) indicated that the language is now 
redundant and potentially confusing to consumers. No comments opposed 
the change. Therefore, for the reasons discussed above, the Commission 
amends the Rule as proposed to eliminate language related to the 2004 
DOE test procedure.

L. Television Labeling

    Background: Section 324(a) of EPCA requires labels for televisions 
unless the Commission determines that labeling is not technologically 
or economically feasible. (42 U.S.C. 6294(a)). In 1979, the Commission 
determined that television labeling was not economically feasible. At 
that time, the evidence suggested that there was little variation in 
the annual energy costs of competing television models, and such costs 
were a small fraction of the purchase price. The Commission, therefore, 
indicated it was unlikely that television labels would promote efforts 
to increase energy efficiency or provide benefits to consumers. (44 FR 
66466, 66468 (Nov. 19, 1979)).
    As part of the May 2006 Workshop, the FTC sought comment on whether 
the Rule now should require television labeling in light of 
technological developments. In response, several commenters urged that 
the Commission revisit its 1979 decision. According to the Natural 
Resources Defense Council (NRDC) (519870-00025), there are now 
many ``large-screen'' digital televisions on the market that use 500 or 
more kilowatt-hours per year, as much energy as many new 
refrigerators.\54\ NRDC (519870-00025) asserted that, in some 
cases, consumers will pay several hundred dollars in electricity costs 
for their televisions over the lifetime of the product. NRDC 
(519870-00025) also indicated that there is now a large 
variation in active mode power use among similarly-sized televisions. 
In its view, there is no reliable, model-specific, source of energy-use 
information for new televisions. Some comments (e.g., CEE 
(522148-00006) supported NRDC's (519870-00025) 
suggestion. Others (e.g., Consumer Electronics Association 
(522148-00009)), however, questioned the need and feasibility 
of television labeling.
---------------------------------------------------------------------------

    \54\At the Workshop, one participant suggested that the average 
42-inch plasma televisions draws 334 watts, with a minimum draw of 
201 watts and a maximum draw of 520 watts. Workshop Tr. at 198.
---------------------------------------------------------------------------

    In our NPRM, the Commission explained that the information provided 
by commenters suggests that the energy consumption characteristics of 
televisions are significantly different than when the Commission 
decided to forgo labeling in the 1970's and that energy labeling for 
televisions may assist consumers in making purchasing decisions. At the 
same time, the record suggested that current DOE procedures are 
inadequate to test most televisions currently on the market. Because 
the energy information disclosed on an FTC-required television label 
must stem from test procedures prescribed by DOE (see 42 U.S.C. 
6294(c)), the Commission indicated that it cannot proceed until the DOE 
test is revised. Once DOE develops a revised test procedure, the 
Commission indicated it could consider whether the attributes of 
televisions on the market warrant energy labeling. The Commission 
sought further comment on this issue.
    Comments: Several comments acknowledged that the outdated DOE test 
procedure poses a barrier for television labeling but suggested that 
DOE soon would have an opportunity to update their test procedure.\55\ 
Both CEE (527896-00016) and ACEEE (527896-00015) 
indicated that the international test procedure currently under 
development should be finished soon. EPA (527896-00018) 
reported that it has been working closely with the International 
Electrotechnical Commission (IEC) to develop the test procedure that 
will measure the active power mode power of televisions. ACEEE 
(527896-00015) expects that a revised DOE procedure would 
follow as soon as the IEC standard is finalized. ACEEE 
(527896-00015) also urged the Commission to ``establish a 
definite time frame'' for television labeling. CEE (527896-
00016) asked the Commission to commit to promulgating such requirements 
once the revised DOE procedure becomes available. No other comments 
were received on this issue.
---------------------------------------------------------------------------

    \55\See EEI (527896-00005), CEE (527896-
00016), and ACEEE (527896-00015).
---------------------------------------------------------------------------

    Discussion: The Commission is not proposing labeling for 
televisions at this time. Absent a DOE test procedure applicable to 
today's products, we cannot require labeling that would benefit 
consumers. The Commission will continue to monitor this issue and may 
seek further comment on television labeling once DOE issues revised 
test procedures.

M. Miscellaneous Amendments and Issues

    In our NPRM, the Commission proposed several minor substantive and 
formatting amendments. These include the reorganization of several 
sections, the inclusion of a new requirement related to refrigerator 
reporting, and the elimination of obsolete or incorrect references.
    Alphabetize Definitions and Update Definition of Refrigerators and 
Refrigerator Freezers: To make the Rule more user friendly, the 
Commission proposed to alphabetize the list of definitions in section 
305.3 and the descriptions of covered products in section 305.4. We 
also proposed to amend the definition of ``refrigerators and 
refrigerator freezers'' at section 305.3(a) so that it is consistent 
with DOE's current definition (10 CFR Sec.  430.2). We received no 
comments on this issue. The Rule is, therefore, amended as proposed.
    Adjusted Volume Information for Refrigerators: In our NPRM, the 
Commission proposed amending the Rule to require refrigerator, 
refrigerator-freezer, and freezer manufacturers to report the adjusted 
volume of their

[[Page 49963]]

models. Adjusted volume data is essential for determining whether a 
refrigerator or freezer model meets DOE minimum efficiency standards, 
and thus whether it should be considered in updating range information 
for refrigerator labels. Both Whirlpool (527896-00004) and 
AHAM (527896-00006) indicated that they had no issue with this 
proposal. Whirlpool (527896-00004) also explained that this 
provision does not create additional burden for manufacturers. No other 
comments addressed this issue. Section 305.8 of the Rule is therefore 
amended as proposed.
    Brand Name Reporting: In our NPRM, the Commission proposed amending 
section 305.8 to clarify that manufacturers report both the 
manufacturer name and the brand name (if different from the 
manufacturer) of their models. Both Whirlpool (527896-00004) 
and AHAM (527896-00006) raised concerns about this proposal. 
In particular, Whirlpool (527896-00004) explained that some 
manufacturers sell products to other manufacturers under an original 
equipment manufacturer arrangement or to retailers under a private 
label arrangement. Disclosure of brand names in conjunction with 
manufacturers' names, therefore, is not desirable from a marketing 
perspective.
    The purpose of the proposed amendment was to clarify that 
manufacturers identify the brand names of their models in data 
submitted to the FTC, so that data could be posted by model name, not 
to link particular brands to specific manufacturers.\56\ Beginning in 
2003, the Commission began posting appliance data on the our website 
for use by consumers and others interested in the energy efficiency of 
appliances. This data presents information by brand name, not 
manufacturer, because brand name is more relevant to consumers. The 
Commission does not plan to change this practice.
---------------------------------------------------------------------------

    \56\All reports submitted to the Commission under section 305.8 
the Appliance Labeling Rule become public record information 
pursuant to the Commission's Rules (16 CFR 4.9(a)(10)(xii)).
---------------------------------------------------------------------------

    The Commission therefore has amended the Rule to indicate that 
manufacturers submitting data under 305.8 of the Rule provide the brand 
name of the models included in their reports. The Final Rule does not 
require the inclusion of the manufacturer name for each individual 
model in the report.\57\
---------------------------------------------------------------------------

    \57\ Because the identity of manufacturers is readily apparent 
from the reports submitted to the FTC, it is not necessary to 
include such information for each model on each line of the data.
---------------------------------------------------------------------------

    Reorganization of Section 305.11: In our NPRM, the Commission 
proposed splitting section 305.11 into several sections organized by 
product category to make it easier for manufacturers to identify the 
requirements applicable to their products. We did not receive comments 
on this issue. The Rule is, therefore, amended to created the following 
new sections: Sec.  305.11 Labeling for refrigerators, refrigerator-
freezers, freezers, dishwashers, clothes washers, water heaters, room 
air conditioners, and pool heaters; Sec.  305.12 Labeling for Central 
Air Conditioners, Heat Pumps, and Furnaces; Sec.  305.14 Energy 
Information Disclosures for Heating and Cooling Equipment; Sec.  305.15 
Labeling for Lighting Products; and Sec.  305.16 Labeling and Marking 
for Plumbing Products. The Final Rule also contains various amendments 
throughout to update cross-references.
    Applicability of DOE Test Procedures: In our NPRM, the Commission 
proposed amending section 305.5 to clarify that the Rule does not apply 
to covered appliance products for which DOE does not have a test 
procedure. No comments addressed this issue. The Commission, therefore, 
amends the Final Rule as proposed.
    Elimination of Appendix K: In our NPRM, the Commission proposed 
eliminating the suggested reporting format in Appendix K. Most 
manufacturers submit data via email using spreadsheet templates 
provided on the FTC website. In addition, the reporting format in 
Appendix K does not apply to products that have been added since the 
Rule was first promulgated in 1979. Accordingly, we believe that 
Appendix K is no longer needed. No comments addressed this issue, and 
the Commission, therefore, amends the Final Rule as proposed.
    Review of Technological Changes: In our NPRM, the Commission 
addressed CEE's (519870-00018) recommendation that the 
Commission institute a semi-annual process to review technological 
advancements and modify the scope of labeling accordingly. In our NPRM, 
we explained that the Commission conducts periodic reviews of all its 
regulations on a rotating schedule, as it is conducting now for the 
Appliance Labeling Rule. During these reviews, the Commission seeks 
comments on the effectiveness of the rule in question, the burden it 
imposes, and possible improvements. Between such reviews, individuals 
and organizations may contact the Commission about problems or possible 
amendments to rules that may be needed. Therefore, the Commission 
explained that it did not plan to institute formal semi-annual reviews.
    In response, Consumers Union (527896-00012) indicated that 
many of DOE's test procedures are out-of-date, forcing manufacturers to 
extrapolate from existing requirements in determining energy 
performance for appliances, particularly those that contain new 
features not accounted for by the applicable DOE test. To address this 
concern, Consumers Union (527896-00012) urged a mandatory 
review and update cycle for all DOE appliance test procedures.
    We note that questions regarding DOE test procedures should be 
addressed to DOE. The Commission continues to believe that additional, 
periodic reviews are not necessary for FTC's rules. We, therefore, 
decline to adopt semi-annual reviews of technological advancements.
    Effective Date of Amendments: Two comments addressed the timing of 
the Commission's Final Rule. Burnham (527896-00001), a boiler 
manufacturer, suggested that the Commission provide manufacturers with 
at least six months to comply with the new requirements. CEE 
(527896-00016) recommended that ``new EnergyGuide label rules 
be implemented as soon as possible, given the various constraints faced 
by the FTC and manufacturers.'' CEE (527896-00016) also urged 
that the window for the transition from current to new label design be 
selected so as to minimize the amount of time in which the new and old 
EnergyGuide labels are present in the market. No other comments 
addressed this issue.
    In the past, the Commission has generally provided industry members 
three months to implement routine range changes to the labels (see, 
e.g., 66 FR 57867 (Nov. 19, 2001)). Because the amendments announced 
here involve a change in the label design for most products, we believe 
additional time for compliance is warranted. We therefore have set the 
effective date six months after publication of this Notice.
    Consumer Education: CEE (527896-00016) and ACEEE 
(527896-00015) emphasized the importance of consumer education 
to support the labeling program. ACEEE (527896-00015) stated 
that consumer education ``has been a critical component of other public 
information programs and can help leverage the time and resources 
invested in program design and implementation to maximize program 
effectiveness.'' The Commission places a high value, on consumer 
education and is considering what consumer education efforts are called 
for to implement effectively the new label design.

[[Page 49964]]

VIII. Paperwork Reduction Act

    The Rule contains disclosure and reporting requirements that 
constitute ``information collection requirements'' as defined by 5 CFR 
Sec.  1320.7(c), the regulation that implements the Paperwork Reduction 
Act (PRA).\58\ OMB has approved the Rule's information collection 
requirements through August 31, 2009 (OMB Control No. 3084-0069). The 
Commission has made minor changes in the current Rule's existing 
recordkeeping, labeling, and reporting requirements. Accordingly, the 
Commission has submitted the Rule and a Supporting Statement to OMB for 
review under the PRA.
---------------------------------------------------------------------------

    \58\44 U.S.C. 3501-3520.
---------------------------------------------------------------------------

    The Commission's burden estimates for the final amendments are 
based on data submitted by manufacturers to the FTC under current 
requirements and the staff's general knowledge of manufacturing 
practices.
    The Final Rule requires manufacturers to change the EnergyGuide 
labels to the new design. Under the current Rule, manufacturers 
routinely change labels to reflect new range and cost data. The new 
label design will require a one-time drafting change for the 
manufacturers. The Commission estimates that this one time change will 
take 40 hours per manufacturer. The Commission further estimates that 
there are approximately 450 manufacturers of affected covered 
products.\59\ Therefore, the label design change will result in a one-
time burden of 18,000 hours (450 manufacturers x 40 hours). In 
calculating the associated labor cost estimate, the Commission assumes 
that the label design change will be implemented by clerical workers at 
an hourly wage rate of $14.59 per hour based on Bureau of Labor 
Statistics information. Thus, the Commission estimates that the new 
label design change will result in a one-time labor cost of 
approximately $262,620 (18,000 hours x $14.59 per hour).
---------------------------------------------------------------------------

    \59\We have increased this estimate to account for the continued 
labeling requirements for heating and cooling equipment. The burden 
for the routine labeling of these products has already been 
accounted for in the clearance for the underlying Rule (OMB Control 
No. 3084-0069).
---------------------------------------------------------------------------

    As discussed above, the Commission anticipates that the provision 
of adjusted volume information for refrigerator manufacturers will not 
result in a significant burden increase. This information should be 
readily available to manufacturers because it is necessary to determine 
compliance with DOE conservation standards. Accordingly, the Commission 
has not made an adjustment to its previous burden estimate due to this 
de minimis increase in reporting of the data already required by the 
Rule.
    The Final Rule also requires retailers who sell through catalogs to 
disclose information about annual operating cost instead of the annual 
energy consumption for certain products and provide an explanatory 
statement in the catalog similar to that which appears on the label. 
The Rule also eliminates the requirement for catalog sellers to list 
the range of comparability information. The Commission's previous 
estimate of the Rule's burden on catalog sellers (including Internet 
sellers) has assumed conservatively that catalog sellers must enter 
their data for each product into the catalog each year (see 71 FR 
78057, 78062 (Dec. 28, 2006)). The rule change does not alter that 
assumption because the amendments require a one-time change of all 
products in affected catalogs. This one-time change is consistent with 
previous burden estimates. Accordingly, the Commission does not believe 
any change is required to the existing burden estimates for catalog 
sellers.

IX.Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612, requires 
that the Commission provide a Final Regulatory Flexibility Analysis 
(FRFA), if any, with the final Rule, unless the Commission certifies 
that the Rule will not have a significant economic impact on a 
substantial number of small entities. See 5 U.S.C. 603-605.
    The Commission does not anticipate that the Final Rule will have a 
significant economic impact on a substantial number of small entities. 
The Commission recognizes that some of the affected manufacturers may 
qualify as small businesses under the relevant thresholds. The 
Commission estimates that these new requirements will apply to about 
450 product manufacturers and an additional 150 online and paper 
catalog sellers of covered products. Out of these companies, the 
Commission expects that approximately 350 qualify as small businesses. 
In addition, the Commission does not expect that the Final Rule will 
have a significant impact on these entities.
    We do not expect that the economic impact of implementing the 
design change will be significant. The Commission has provided industry 
members with ample time (six months) to implement this new design. 
Accordingly, this document serves as notice to the Small Business 
Administration of the FTC's certification of no effect. Although the 
Commission certifies under the RFA that the amendments in this notice 
will not have a significant impact on a substantial number of small 
entities, the Commission has determined, nonetheless, that it is 
appropriate to publish an FRFA. Therefore, the Commission has prepared 
the following analysis:

A. Description of the Reasons That Action by the Agency Is Being Taken

    Section 137 of the Energy Policy Act of 2005 (EPACT 2005) (Pub. L. 
109-58) requires the Commission to conduct a rulemaking to consider the 
effectiveness of the consumer products labeling program.

B. Statement of the Objectives of, and Legal Basis for, the Amendments

    The objective of the amendments is to improve the effectiveness of 
the current appliance labeling program. Section 137 of EPACT 2005 
amends section 324 of EPCA to require the Commission to examine ``the 
effectiveness of the consumer products labeling program in assisting 
consumers in making purchasing decisions and improving energy 
efficiency.''

C. Small Entities to Which the Proposed Rule Will Apply

    Under the Small Business Size Standards issued by the Small 
Business Administration, refrigerator and laundry equipment 
manufacturers qualify as small businesses if they have fewer than 1,000 
employees (for other household appliances the figure is 500 employees). 
Appliance retailers qualify as small businesses if their sales are less 
than $8.0 million annually. The Commission estimates that fewer than 
300 entities subject to the Final Rule qualify as small businesses.

D. Projected Reporting, Recordkeeping and Other Compliance Requirements

    We recognize that the Final Rule will involve some modest increase 
in compliance costs. Such costs will include some small, one-time 
drafting costs and reporting requirements for appliance manufacturers. 
As discussed in this notice, the increase in reporting burden should be 
de minimis. The transition to the use of a new label design should 
represent a one-time cost that will not be substantial. The Commission 
does not expect that the labeling requirements will impose significant 
additional costs on catalog sellers. All of these burdens, including 
the classes of affected entities and professional skills, if any, 
needed to comply, are discussed in the Paperwork Reduction Act section 
of this notice and

[[Page 49965]]

there should be no difference in that burden as applied to small 
businesses.

E. Duplicative, Overlapping, or Conflicting Federal Rules

    The Commission has not identified any other federal statutes, 
rules, or policies that would duplicate, overlap, or conflict with the 
Final Rule.

F. Significant Alternatives to the Final Amendments

    As indicated in the NPRM, the Commission has considered delaying 
the effectiveness of the rule to provide additional time for small 
business compliance. At least one comment suggested that businesses be 
given six months to comply with the new requirements. (Burnham 
(527896-00001)). Accordingly, the Commission has set the 
effectiveness date for the new requirements at six months after the 
publication of this notice.

X. Final Rule Language

List of Subjects in 16 CFR Part 305

    Advertising, Energy conservation, Household appliances, Labeling, 
Reporting and recordkeeping requirements.

    By direction of the Commission.
Richard C. Donohue,
Acting Secretary.


0
For the reasons set out above, the Commission is amending 16 CFR Part 
305 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. Section 305.2 is revised to read as follows:


Sec.  305.2  Definitions.

    (a) Act means the Energy Policy and Conservation Act (Pub. L. 94-
163), and amendments thereto.
    (b) ANSI means the American National Standards Institute and, as 
used herein, is the prefix for national standards and codes adopted by 
ANSI.
    (c) ASME means the American Society of Mechanical Engineers and, as 
used herein, is the prefix for national standards and codes adopted by 
ASME.
    (d) Average lamp efficacy means the lamp efficacy readings taken 
over a statistically significant period of manufacture with the 
readings averaged over that period.
    (e) Ballast efficacy factor means the relative light output divided 
by the power input of a fluorescent lamp ballast, as measured under 
test conditions specified in American National Standards Institute 
(ANSI) standard C82.2-1984, or as may be prescribed by the Secretary of 
Energy. Copies of ANSI standard C82.2-1984 may be obtained from the 
American National Standards Institute, 11 West 42nd St., New York, NY 
10036.
    (f) Base for lamps means the portion of the lamp which screws into 
the socket.
    (g) Bulb shape means the shape of the lamp, especially the glass 
portion.
    (h) Catalog means printed material, including material disseminated 
over the Internet, which contains the terms of sale, retail price, and 
instructions for ordering, from which a retail consumer can order a 
covered product.
    (i) Color rendering index or CRI for lamps means the measure of the 
degree of color shift objects undergo when illuminated by a light 
source as compared with the color of those same objects when 
illuminated by a reference source of comparable color temperature.
    (j) Commission means the Federal Trade Commission.
    (k) Consumer product means any article (other than an automobile, 
as ``automobile'' is defined in 15 U.S.C. 2001(1) [sec. 501(1) of the 
Motor Vehicle Information and Cost Savings Act]) of a type--
    (1) Which in operation consumes, or is designed to consume, energy 
or, with respect to showerheads, faucets, water closets, and urinals, 
water; and
    (2) Which, to any significant extent, is distributed in commerce 
for personal use or consumption by individuals; without regard to 
whether such article or such type is in fact distributed in commerce 
for personal use or consumption by an individual, except that such term 
includes fluorescent lamp ballasts, general service fluorescent lamps, 
medium base compact fluorescent lamps, general service incandescent 
lamps (including incandescent reflector lamps), showerheads, faucets, 
water closets, and urinals distributed in commerce for personal or 
commercial use or consumption.
    (l) Consumer appliance product means any of the following consumer 
products, excluding those products designed solely for use in 
recreational vehicles and other mobile equipment:
    (1) Refrigerators, refrigerator-freezers, and freezers that can be 
operated by alternating current electricity, excluding--
    (i) Any type designed to be used without doors; and
    (ii) Any type which does not include a compressor and condenser 
unit as an integral part of the cabinet assembly.
    (2) Dishwashers.
    (3) Water heaters.
    (4) Room air conditioners.
    (5) Clothes washers.
    (6) Clothes dryers.
    (7) Central air conditioners and central air conditioning heat 
pumps.
    (8) Furnaces.
    (9) Direct heating equipment.
    (10) Pool heaters.
    (11) Kitchen ranges and ovens.
    (12) Television sets.
    (13) Fluorescent lamp ballasts.
    (14) General service fluorescent lamps.
    (15) Medium base compact fluorescent lamps.
    (16) General service incandescent lamps, including incandescent 
reflector lamps.
    (17) Showerheads.
    (18) Faucets.
    (19) Water closets.
    (20) Urinals.
    (21) Any other type of consumer product that the Department of 
Energy classifies as a covered product under section 322(b) of the Act 
(42 U.S.C. 6292).
    (m) Correlated color temperature for lamps means the absolute 
temperature of a blackbody whose chromaticity most nearly resembles 
that of the light source.
    (n) Covered product means any consumer product or consumer 
appliance product described in Sec. 305.3 of this part.
    (o) Distributor means a person (other than a manufacturer or 
retailer) to whom a consumer appliance product is delivered or sold for 
purposes of distribution in commerce.
    (p) Energy efficiency rating means the following product-specific 
energy usage descriptors: annual fuel utilization efficiency (AFUE) for 
furnaces; energy efficiency ratio (EER) for room air conditioners; 
seasonal energy efficiency ratio (SEER) for the cooling function of 
central air conditioners and heat pumps; heating seasonal performance 
factor (HSPF) for the heating function of heat pumps; and, thermal 
efficiency (TE) for pool heaters, as these descriptors are determined 
in accordance with tests prescribed under section 323 of the Act (42 
U.S.C. 6293). These product-specific energy usage descriptors shall be 
used in satisfying all the requirements of this part.
    (q) Estimated annual energy consumption and estimated annual 
operating cost--
    (1) Estimated annual energy consumption means the energy or (for 
products described in sections 305.3(n)-(q)) water that is likely to be 
consumed annually in representative use of a consumer product, as 
determined in accordance with tests prescribed under section 323 of the 
Act (42 U.S.C. 6293).

[[Page 49966]]

    (i) Kilowatt-hour use per year, or kWh/yr., means estimated annual 
energy consumption expressed in kilowatt-hours of electricity.
    (ii) Therm use per year, or therms/yr., means estimated annual 
energy consumption expressed in therms of natural gas.
    (iii) Gallon use per year, or gallons/yr., means estimated annual 
energy consumption expressed in gallons of propane or No. 2 heating 
oil.
    (2) Estimated annual operating cost means the aggregate retail cost 
of the energy that is likely to be consumed annually in representative 
use of a consumer product, as determined in accordance with tests 
prescribed under section 323 of the Act (42 U.S.C. 6293).
    (r) Flow restricting or controlling spout end device means an 
aerator used in a faucet.
    (s) Flushometer valve means a valve attached to a pressured water 
supply pipe and so designed that, when actuated, it opens the line for 
direct flow into the fixture at a rate and quantity to operate properly 
the fixture, and then gradually closes to provide trap reseal in the 
fixture in order to avoid water hammer. The pipe to which this device 
is connected is in itself of sufficient size that, when opened, will 
allow the device to deliver water at a sufficient rate of flow for 
flushing purposes.
    (t) IES means the Illuminating Engineering Society of North America 
and, as used herein, is the prefix for test procedures adopted by IES.
    (u) Lamp efficacy means the light output of a lamp divided by its 
wattage, expressed in lumens per watt (LPW).
    (v) Lamp type means all lamps designated as having the same 
electrical and lighting characteristics and made by one manufacturer.
    (w) Life and lifetime for lamps mean length of operating time of a 
statistically large group of lamps between first use and failure of 50 
percent of the group.
    (x) Light output for lamps means the total luminous flux (power) of 
a lamp in lumens.
    (y) Luminaire means a complete lighting unit consisting of a 
fluorescent lamp or lamps, together with parts designed to distribute 
the light, to position and protect such lamps, and to connect such 
lamps to the power supply through the ballast.
    (z) Manufacturer means any person who manufactures, produces, 
assembles, or imports a consumer appliance product. Assembly operations 
which are solely decorative are not included.
    (aa) New covered product, as used in Sec.  305.4, means a covered 
product the title of which has not passed to a purchaser who buys the 
product for purposes other than resale or leasing for a period in 
excess of one year.
    (bb) Private labeler means an owner of a brand or trademark on the 
label of a consumer appliance product which bears a private label.
    (cc) Range of comparability means a group of models within a class 
of covered products, each model of which satisfies approximately the 
same consumer needs.
    (dd) Range of energy efficiency ratings means the range of energy 
efficiency ratings for all models within a designated range of 
comparability.
    (ee) Range of estimated annual energy cost means the range of 
estimated annual energy cost per year of all models within a designated 
range of comparability.
    (ff) Retailer means a person to whom a consumer appliance product 
is delivered or sold, if such delivery or sale is for purposes of sale 
or distribution in commerce to purchasers who buy such product for 
purposes other than resale. The term retailer includes purchasers of 
appliances who install such appliances in newly constructed or newly 
rehabilitated housing, or mobile homes, with the intent to sell the 
covered appliances as part of the sale of such housing or mobile homes.
    (gg) Water use means the quantity of water flowing through a 
showerhead, faucet, water closet, or urinal at point of use, determined 
in accordance with test procedures under section 323 of the Act, 42 
U.S.C. 6293.
    (hh) Wattage for lamps means the total electrical power consumed by 
a lamp in watts, after an initial seasoning period and including, for 
fluorescent lamps, arc watts plus cathode watts.

0
3. In Sec.  305.3, paragraphs (a)(1), (d), and (r) are revised to read 
as follows:


Sec.  305.3  Description of covered products.

    (a) * * *
    (1) Electric refrigerator means a cabinet designed for the 
refrigerated storage of food at temperatures above 32[deg] F and below 
39[deg] F, configured for general refrigerated food storage, and having 
a source of refrigeration requiring single phase, alternating current 
electric energy input only. An electric refrigerator may include a 
compartment for the freezing and storage of food at temperatures below 
32[deg] F, but does not provide a separate low temperature compartment 
designed for the freezing and storage of food at temperatures below 8 
[deg]F.
* * * * *
    (d) Water heater means a product which utilizes oil, gas, or 
electricity to heat potable water for use outside the heater upon 
demand, including--
    (1) Storage type units which heat and store water at a 
thermostatically controlled temperature, including gas storage water 
heaters with an input of 75,000 Btu per hour or less, oil storage water 
heaters with an input of 105,000 Btu per hour or less, and electric 
storage water heaters with an input of 12 kilowatts or less;
    (2) Instantaneous type units which heat water but contain no more 
than one gallon of water per 4,000 Btu per hour of input, including gas 
instantaneous water heaters with an input of 200,000 Btu per hour or 
less, oil instantaneous water heaters with an input of 210,000 Btu per 
hour or less, and electric instantaneous water heaters with an input of 
12 kilowatts or less; and
    (3) Heat pump type units, with a maximum current rating of 24 
amperes at a voltage no greater than 250 volts, which are products 
designed to transfer thermal energy from one temperature level to a 
higher temperature level for the purpose of heating water, including 
all ancillary equipment such as fans, storage tanks, pumps, or controls 
necessary for the device to perform its function.
* * * * *
    (r) Pool heater means an appliance designed for heating nonpotable 
water contained at atmospheric pressure, including heating water in 
swimming pools, spas, hot tubs and similar applications.

0
4. In Sec.  305.4, paragraphs (a)(1), (b)(5), and (c) are revised to 
read as follows:


Sec.  305.4  Prohibited acts.

    (a) * * *
    (1) For any manufacturer or private labeler knowingly to distribute 
in commerce any new covered product unless such covered product is 
marked and/or labeled in accordance with this part with a marking, 
label, hang tag, or energy fact sheet which conforms to the provisions 
of the Act and this part.
* * * * *
    (b) * * *
    (5) Distribute in commerce any catalog containing a listing for a 
covered product without the information required by Sec.  305.20 of 
this part. This subsection shall also apply to distributors and 
retailers.
    (c) Pursuant to section 333(c) of the Act, it shall be an unfair or 
deceptive act or practice in violation of section 5(a)(1) of the 
Federal Trade Commission Act (15 U.S.C. 45(a)(1)) for any manufacturer, 
distributor, retailer, or

[[Page 49967]]

private labeler in or affecting commerce to display or distribute at 
point of sale any printed material applicable to a covered product 
under this rule if such printed material does not contain the 
information required by Sec.  305.19. This requirement does not apply 
to any broadcast advertisement or to any advertisement in a newspaper, 
magazine, or other periodical.
* * * * *

0
5. In Sec.  305.5, paragraph (a) is revised to read as follows:


Sec.  305.5  Determinations of estimated annual energy consumption, 
estimated annual operating cost, energy efficiency rating, and water 
use rate.

    (a) Procedures for determining the estimated annual energy 
consumption, the estimated annual operating costs, the energy 
efficiency ratings, and the efficacy factors of the following covered 
products are those located in 10 CFR part 430, subpart B. For the 
following list of covered products, the requirements of this part apply 
only to products for which the Department of Energy has adopted and 
published test procedures for measuring energy usage or efficiency.
    (1) Refrigerators and refrigerator-freezers--Sec.  430.23(a).
    (2) Freezers--Sec.  430.23(b).
    (3) Dishwashers--Sec.  430.23(c).
    (4) Water heaters--Sec.  430.23(e).
    (5) Room air conditioners--Sec.  430.23(f).
    (6) Clothes washers--Sec.  430.23(j).
    (7) Central air conditioners and heat pumps--Sec.  430.23(m).
    (8) Furnaces--Sec.  430.23(n).
    (9) Pool Heaters--Sec.  430.23(p)
    (10) Fluorescent lamp ballasts--Sec.  430.23(q).
* * * * *

0
6. Section 305.7 (a) and (b) are revised to read as follows:


Sec.  305.7  Determinations of capacity.

* * * * *
    (a) Refrigerators and refrigerator-freezers. The capacity shall be 
the total refrigerated volume (VT) and the adjusted total volume (AV) 
in cubic feet, rounded to the nearest one-tenth of a cubic foot, as 
determined according to appendix A1 to 10 CFR part 430, subpart B.
    (b) Freezers. The capacity shall be the total refrigerated volume 
(VT) and the adjusted total volume (AV) in cubic feet, rounded to the 
nearest one-tenth of a cubic foot, as determined according to appendix 
B1 to 10 CFR part 430, subpart B.
* * * * *

0
7. In Sec.  305.8, paragraph (a)(1) is revised to read as follows:


Sec.  305.8  Submission of data.

    (a)(1) Each manufacturer of a covered product (except manufacturers 
of fluorescent lamp ballasts, showerheads, faucets, water closets, 
urinals, general service fluorescent lamps, medium base compact 
fluorescent lamps, or general service incandescent lamps including 
incandescent reflector lamps) shall submit annually to the Commission a 
report listing the estimated annual energy consumption (for 
refrigerators, refrigerator-freezers, freezers, clothes washers, 
dishwashers, and water heaters) or the energy efficiency rating (for 
room air conditioners, central air conditioners, heat pumps, furnaces, 
and pool heaters) for each basic model in current production, 
determined according to Sec.  305.5 and statistically verified 
according to Sec.  305.6. The report must also list, for each basic 
model in current production: the brand name; the model numbers for each 
basic model; the total energy consumption, determined in accordance 
with Sec.  305.5, used to calculate the estimated annual energy 
consumption or energy efficiency rating; the number of tests performed; 
and, its capacity, determined in accordance with Sec.  305.7. For those 
models that use more than one energy source or more than one cycle, 
each separate amount of energy consumption, measured in accordance with 
Sec.  305.5, shall be listed in the report. Starting serial numbers or 
other numbers identifying the date of manufacture of covered products 
shall be submitted whenever a new basic model is introduced on the 
market.
* * * * *


Sec.  305.9  [Removed]

0
8. Section 305.9 is removed and reserved.

0
9. Section 305.10 is revised to read as follows:


Sec.  305.10  Ranges of comparability on the required labels.

    (a) Range of Estimated Annual Operating Costs or Energy Efficiency 
Ratings. The range of estimated annual operating costs or energy 
efficiency ratings for each covered product (except fluorescent lamp 
ballasts, lamps, showerheads, faucets, water closets and urinals) shall 
be taken from the appropriate appendix to this part in effect at the 
time the labels are affixed to the product. The Commission shall 
publish revised ranges every five years beginning in 2012 in the 
Federal Register. When the ranges are revised, all information 
disseminated after 90 days following the publication of the revision 
shall conform to the revised ranges. Products that have been labeled 
prior to the effective date of a modification under this section need 
not be relabeled.
    (b) Representative average unit energy cost. The Representative 
Average Unit Energy Cost to be used on labels as required by Sec.  
305.11 and disclosures as required by Sec.  305.20 are listed in 
appendix K to this part. The Commission shall publish revised 
Representative Average Unit Energy Cost figures every five years 
beginning in 2012 in the Federal Register. When the cost figures are 
revised, all information disseminated after 90 days following the 
publication of the revision shall conform to the new cost figure.
    (c) Operating Costs or Efficiency Ratings Outside Current Range. 
When the estimated annual operating cost or energy efficiency rating of 
a given model of a covered product falls outside the limits of the 
current range for that product, which could result from the 
introduction of a new or changed model, the manufacturer shall:
    (1) Omit placement of such product on the scale that appears as 
required by Sec. Sec.  305.11 and 305.12 of this part, and
    (2) Add one of the two sentences below, as appropriate, in the 
space just below the scale on the label, as follows:
    The estimated yearly operating cost of this model was not 
available at the time the range was published.
    The energy efficiency rating of this model was not available at 
the time the range was published.

0
10. Section 305.11 is revised to read as follows:


Sec.  305.11  Labeling for refrigerators, refrigerator-freezers, 
freezers, dishwashers, clothes washers, water heaters, room air 
conditioners, and pool heaters.

    (a) Layout. All energy labels for refrigerators, refrigerator-
freezers, freezers, dishwashers, clothes washers, water heaters, pool 
heaters, and room air conditioners shall use one size, similar colors, 
and typefaces with consistent positioning of headline, copy, and charts 
to maintain uniformity for immediate consumer recognition and 
readability. Trim size dimensions for all labels shall be as follows: 
width must be between 5 1/4 inches and 5 1/2 inches (13.34 cm. and 
13.97 cm.); length must be between 7 3/8 inches (18.78 cm.) and 7 5/8 
(19.34 cm.). Copy is to be set between 27 picas and 29 picas and copy 
page should be centered (right to left and top to bottom). Depth is 
variable but should follow closely the prototype labels appearing at 
the end of this part illustrating the basis layout. All positioning, 
spacing, type sizes, and line widths should be similar to and

[[Page 49968]]

consistent with the prototype and sample labels in appendix L.
    (b) Type style and setting. The Arial series typeface or equivalent 
shall be used exclusively on the label. Specific sizes and faces to be 
used are indicated on the prototype labels. No hyphenation should be 
used in setting headline or copy text. Positioning and spacing should 
follow the prototypes closely. Generally, text must be set flush left 
with two points leading except where otherwise indicated. See the 
prototype labels for specific directions.
    (c) Colors. The basic colors of all labels covered by this section 
shall be process yellow or equivalent and process black. The label 
shall be printed full bleed process yellow. All type and graphics shall 
be print process black.
    (d) Label Types--The labels must be affixed to the product in the 
form of an adhesive label or a hang tag as follows:
    (1) Adhesive labels. All adhesive labels should be applied so they 
can be easily removed without the use of tools or liquids, other than 
water, but should be applied with an adhesive with an adhesion capacity 
sufficient to prevent their dislodgment during normal handling 
throughout the chain of distribution to the retailer or consumer. The 
paper stock for pressure-sensitive or other adhesive labels shall have 
a basic weight of not less than 58 pounds per 500 sheets (25``x38'') or 
equivalent, exclusive of the release liner and adhesive. A minimum peel 
adhesion capacity for the adhesive of 12 ounces per square inch is 
suggested, but not required if the adhesive can otherwise meet the 
above standard.
    (2) Hang tags. Labels may be affixed to the product in the form of 
a hang tag using string or similar material. The paper stock for hang 
tags shall have a basic weight of not less than 110 pounds per 500 
sheets (25 1/2``x30 1/2''; index). When materials are used to attach 
the hang tags to appliance products, the materials shall be of 
sufficient strength to insure that if gradual pressure is applied to 
the hang tag by pulling it away from where it is affixed to the 
product, the hang tag will tear before the material used to affix the 
hang tag to the product breaks.
    (e) Placement.
    (1) Adhesive labels: Manufacturers shall affix adhesive labels to 
the covered products in such a position that it is easily read by a 
consumer examining the product. The label should be generally located 
on the upper-right-front corner of the product's front exterior. 
However, some other prominent location may be used as long as the label 
will not become dislodged during normal handling throughout the chain 
of distribution to the retailer or consumer. The top of the label 
should not exceed 74 inches from the base of taller products. The label 
can be displayed in the form of a flap tag adhered to the top of the 
appliance and bent (folded at 90[deg]) to hang over the front, as long 
as this can be done with assurance that it will be readily visible.
    (2) Hang tags. A hang tag shall be affixed to the interior of the 
product in such a position that it can be easily read by a consumer 
examining the product. A hang tag can be affixed in any position that 
meets this requirement as long as the label will not become dislodged 
during normal handling throughout the chain of distribution to the 
retailer or consumer.
    (f) Label Content--(1) Headlines and texts, as illustrated in the 
prototype and sample labels in appendix L to this part.
    (2) Name of manufacturer or private labeler shall, in the case of a 
corporation, be deemed to be satisfied only by the actual corporate 
name, which may be preceded or followed by the name of the particular 
division of the corporation. In the case of an individual, partnership, 
or association, the name under which the business is conducted shall be 
used. Inclusion of the name of the manufacturer or private labeler is 
optional at the discretion of the manufacturer or private labeler.
    (3) Model number(s) will be the designation given by the 
manufacturer or private labeler.
    (4) Capacity or size is that determined in accordance with Sec.  
305.7. For refrigerators, refrigerator-freezers, and freezers, the 
capacity provided on the label shall be the model's total refrigerated 
volume (VT) as determined in accordance Sec.  305.7.
    (5) Estimated annual operating costs for refrigerators, 
refrigerator-freezers, freezers, clothes washers, dishwashers, room air 
conditioners, and water heaters are as determined in accordance with 
Sec.  305.5 and appendix K to this part. Thermal efficiencies for pool 
heaters are as determined in accordance with Sec.  305.5 . Labels for 
clothes washers and dishwashers must disclose estimated annual 
operating cost for both electricity and natural gas as illustrated in 
the sample labels in appendix L.
    (6) Ranges of comparability for estimated annual operating costs or 
thermal efficiencies, as applicable, are found in the appropriate 
appendices accompanying this part.
    (7) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest estimated annual operating 
costs or thermal efficiencies, as applicable.
    (8) Labels for refrigerators, refrigerator-freezers, freezers, 
dishwashers, clothes washers, and water heaters must contain the 
model's estimated annual energy consumption as determined in accordance 
with Sec.  305.5 and as indicated on the sample labels in appendix L. 
Labels for room air conditioners and pool heaters must contain the 
model's energy efficiency rating or thermal efficiency, as applicable, 
as determined in accordance with Sec.  305.5 and as indicated on the 
sample labels in appendix L.
    (9) Labels must contain a statement explaining information on the 
label as illustrated in the prototype labels in appendix L and 
specified as follows by product type:
    (i) For refrigerators, refrigerator-freezers, and freezers, the 
statement will read as follows (fill in the blanks with the appropriate 
year and energy cost figures):
    Your costs will depend on your utility rates and use.
    [Insert statement required by Sec.  305.11(f)(9)((ii)].
    Estimated operating cost is based on a [Year] national average 
electricity cost of ------ cents per kWh.
    For more information, visit www.ftc.gov/appliances.
    (ii) For refrigerators, refrigerator-freezers, and freezers, the 
following sentence shall be included as part of the statement required 
by Sec.  305.11(f)(10)(i):
    (A) For models covered under appendix A1, the sentence shall read:
    Cost range based only on refrigerator models of similar capacity 
with automatic defrost.
    (B) For models covered under appendix A2, the sentence shall read:
    Cost range based only on models of similar capacity with manual 
defrost.
    (C) For models covered under appendix A3, the sentence shall read:
    Cost range based only on models of similar capacity with partial 
automatic defrost.
    (D) For models covered under appendix A4, the sentence shall read:
    Cost range based only on models of similar capacity with 
automatic defrost, top-mounted freezer, and without through-the-door 
ice.
    (E) For models covered under appendix A5, the sentence shall read:
    Cost range based only on models of similar capacity with 
automatic defrost, side-mounted freezer, and without through-the-
door ice.
    (F) For models covered under appendix A6, the sentence shall read:
    Cost range based only on models of similar capacity with 
automatic defrost, bottom-mounted freezer, and without through-the-
door ice.
    (G) For models covered under appendix A7, the sentence shall read:
    Cost range based only on models of similar capacity with 
automatic defrost, top-mounted freezer, and through-the-door ice.

[[Page 49969]]

    (H) For models covered under appendix A8, the sentence shall read:
    Cost range based only on models of similar capacity with 
automatic defrost, side-mounted freezer, and through-the-door ice.
    (I) For models covered under appendix B1, the sentence shall read:
    Cost range based only on upright freezer models of similar 
capacity with manual defrost.
    (J) For models covered under appendix B2, the sentence shall read:
    Cost range based only on upright freezer models of similar 
capacity with automatic defrost.
    (K) For models covered under appendix B3, the sentence shall read:
    Cost range based only on chest and other freezer models of 
similar capacity.
    (iii) For room air conditioners, the statement will read as follows 
(fill in the blanks with the appropriate model type, year, energy type, 
and energy cost figure):
    Your costs will depend on your utility rates and use.
    Cost range based only on models [of similar capacity without 
reverse cycle and with louvered sides; of similar capacity without 
reverse cycle and without louvered sides; with reverse cycle and 
with louvered sides; or with reverse cycle and without louvered 
sides].
    Estimated operating cost is based on a [Year] national average 
electricity cost of ------ cents per kWh.
    For more information, visit www.ftc.gov/appliances.
    (iv) For water heaters covered by Appendices D1, D2, and D3, the 
statement will read as follows (fill in the blanks with the appropriate 
fuel type, year, and energy cost figures):
    Your costs will depend on your utility rates and use.
    Cost range based only on models of similar capacity fueled by 
[natural gas, oil, propane, or electricity].
    Estimated operating cost is based on a [Year] national average 
[electricity, natural gas, propane, or oil] cost of [------ cents 
per kWh or $------ per therm or gallon].
    For more information, visit www.ftc.gov/appliances.
    (v) For instantaneous gas water heaters (appendix D4) and heat pump 
water heaters (appendix D5), the statement will read as follows (fill 
in the blanks with the appropriate model type, the operating cost, the 
year, and the energy cost figures):
    Your costs will depend on your utility rates and use.
    Cost range based only on [instantaneous gas water heater or heat 
pump water heater] models of similar capacity. Estimated operating 
cost is based on a [Year] national average [electricity, natural 
gas, or propane] cost of [------ cents per kWh or $------ per therm 
or gallon].
    For more information, visit www.ftc.gov/appliances.
    (vi) For clothes washers and dishwashers, the statement will read 
as follows (fill in the blanks with the appropriate appliance type, the 
operating cost, the number of loads per week, the year, and the energy 
cost figures):
    Your costs will depend on your utility rates and use.
    Cost range based only on [compact/standard] capacity models.
    Estimated operating cost is based on [4 washloads a week for 
dishwashers, or 8 washloads a week for clothes washers] and a [Year] 
national average electricity cost of ------ cents per kWh and 
natural gas cost of $------ per therm.
    For more information, visit www.ftc.gov/appliances.
    (vii) For pool heaters, the statement will read as follows:
    Efficiency range based only on models fueled by [natural gas or 
oil].
    For more information, visit www.ftc.gov/appliances.
    (11) The following statement shall appear on each label as 
illustrated in the prototype and sample labels in appendix L:
    Federal law prohibits removal of this label before consumer 
purchase.
    (12) No marks or information other than that specified in this part 
shall appear on or directly adjoining this label except that:
    (i) A part or publication number identification may be included on 
this label, as desired by the manufacturer. If a manufacturer elects to 
use a part or publication number, it must appear in the lower right-
hand corner of the label and be set in 6-point type or smaller.
    (ii) The energy use disclosure labels required by the governments 
of Canada or Mexico may appear directly adjoining this label, as 
desired by the manufacturer.
    (iii) The manufacturer may include the ENERGY STAR logo on the 
bottom right corner of the label for qualified products. The logo must 
be 1 inch by 1 inch in size. Only manufacturers that have signed a 
Memorandum of Understanding with the Department of Energy or the 
Environmental Protection Agency may add the ENERGY STAR logo to labels 
on qualifying covered products; such manufacturers may add the ENERGY 
STAR logo to labels only on those covered products that are 
contemplated by the Memorandum of Understanding.

0
11. Section 305.12 is revised to read as follows:


Sec.  305.12  Labeling for Central Air Conditioners, Heat Pumps, and 
Furnaces.

    (a) Layout. All energy labels for central air conditioners, heat 
pumps, and furnaces (including boilers) shall use one size, similar 
colors, and typefaces with consistent positioning of headline, copy, 
and charts to maintain uniformity for immediate consumer recognition 
and readability. Trim size dimensions for all labels shall be as 
follows: width must be between 5 1/4 inches and 5 1/2 inches (13.34 cm. 
and 13.97 cm.); length must be between 7 3/8 inches (18.78 cm.) and 7 
5/8 (19.34 cm.). Copy is to be set between 27 picas and 29 picas and 
copy page should be centered (right to left and top to bottom). Depth 
is variable but should follow closely the prototype labels appearing at 
the end of this part illustrating the basic layout. All positioning, 
spacing, type sizes, and line widths should be similar to and 
consistent with the prototype and sample labels in appendix L.
    (b) Type style and setting. The Arial series typeface or equivalent 
shall be used exclusively on the label. Specific sizes and faces to be 
used are indicated on the prototype labels. No hyphenation should be 
used in setting headline or copy text. Positioning and spacing should 
follow the prototypes closely. Generally, text must be set flush left 
with two points leading except where otherwise indicated. See the 
prototype labels for specific directions.
    (c) Colors. The basic colors of all labels covered by this section 
shall be process yellow or equivalent and process black. The label 
shall be printed full bleed process yellow. All type and graphics shall 
be print process black.
    (d) Label Type. The labels must be affixed to the product in the 
form of an adhesive label.
    All adhesive labels should be applied so they can be easily removed 
without the use of tools or liquids, other than water, but should be 
applied with an adhesive with an adhesion capacity sufficient to 
prevent their dislodgment during normal handling throughout the chain 
of distribution to the retailer or consumer. The paper stock for 
pressure-sensitive or other adhesive labels shall have a basic weight 
of not less than 58 pounds per 500 sheets (25``x38'') or equivalent, 
exclusive of the release liner and adhesive. A minimum peel adhesion 
capacity for the adhesive of 12 ounces per square inch is suggested, 
but not required if the adhesive can otherwise meet the above standard.
    (e) Placement. Manufacturers shall affix adhesive labels to the 
covered products in such a position that it is easily read by a 
consumer examining the product. The label should be generally located 
on the upper-right-front corner of the product's front exterior. 
However, some other prominent location may be used as long as the label 
will not become dislodged during normal handling throughout the chain 
of distribution to the retailer or

[[Page 49970]]

consumer. The top of the label should not exceed 74 inches from the 
base of taller products. The label can be displayed in the form of a 
flap tag adhered to the top of the appliance and bent (folded at 
90[deg]) to hang over the front, as long as this can be done with 
assurance that it will be readily visible. Labels for split system 
central air conditioners shall be affixed to the condensing unit.
    (f) Content of Labels for furnaces. (1) Headlines and texts, as 
illustrated in the prototype and sample labels in appendix L to this 
part.
    (2) Name of manufacturer or private labeler shall, in the case of a 
corporation, be deemed to be satisfied only by the actual corporate 
name, which may be preceded or followed by the name of the particular 
division of the corporation. In the case of an individual, partnership, 
or association, the name under which the business is conducted shall be 
used. Inclusion of the name of the manufacturer or private labeler is 
optional at the discretion of the manufacturer or private labeler.
    (3) The annual fuel utilization efficiency for furnaces is 
determined in accordance with Sec. 305.5.
    (4) Ranges of comparability consisting of the lowest and highest 
annual fuel utilization efficiencies (AFUE) (for furnaces) for all 
furnaces that utilize the same energy source as indicated in the 
appendices to this part.
    (5) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest annual fuel utilization 
efficiency ratings forming the scale.
    (6) The following statement shall appear on furnace labels beneath 
the range(s) as illustrated in the sample labels in appendix L. Fill in 
the blanks with the appropriate product subcategory listed in brackets:
    Efficiency range based only on [natural gas furnaces; electric 
furnaces; oil furnaces; mobile home furnaces; gas (except steam) 
boilers; gas (steam) boilers; oil boilers; or electric boilers].
    For more information, visit www.ftc.gov/appliances.
    (7) The following statement shall appear at the top of the label as 
illustrated as illustrated in the sample labels in appendix L:
    Federal law prohibits removal of this label before consumer 
purchase.
    (8) No marks or information other than that specified in this part 
shall appear on or directly adjoining this label except that:
    (i) A part or publication number identification may be included on 
this label, as desired by the manufacturer. If a manufacturer elects to 
use a part or publication number, it must appear in the lower right-
hand corner of the label and be set in 6-point type or smaller.
    (ii) The energy use disclosure labels required by the governments 
of Canada or Mexico may appear directly adjoining this label, as 
desired by the manufacturer.
    (iii) The manufacturer may include the ENERGY STAR logo on the 
bottom right corner of the label for qualified products. The logo must 
be 1 inch by 1 inch in size. Only manufacturers that have signed a 
Memorandum of Understanding with the Department of Energy or the 
Environmental Protection Agency may add the ENERGY STAR logo to labels 
on qualifying covered products; such manufacturers may add the ENERGY 
STAR logo to labels only on those covered products that are 
contemplated by the Memorandum of Understanding.
    (9) Manufacturers of boilers shipped with more than one input 
nozzle to be installed in the field must label such boilers with the 
AFUE of the system when it is set up with the nozzle that results in 
the lowest annual fuel utilization efficiency rating.
    (10) Manufacturers that ship out boilers that may be set up as 
either steam or hot water units must label the boilers with the AFUE 
rating derived by conducting the required test on the boiler as a hot 
water unit.
    (g) Content of Labels for central air conditioners and heat pumps. 
(1) Headlines and texts, as illustrated in the prototype and sample 
labels in appendix L to this part.
    (2) Name of manufacturer or private labeler shall, in the case of a 
corporation, be deemed to be satisfied only by the actual corporate 
name, which may be preceded or followed by the name of the particular 
division of the corporation. In the case of an individual, partnership, 
or association, the name under which the business is conducted shall be 
used. Inclusion of the name of the manufacturer or private labeler is 
optional at the discretion of the manufacturer or private labeler.
    (3) The seasonal energy efficiency ratio for the cooling function 
of central air conditioners is determined in accordance with 
Sec. 305.5. For the heating function, the heating seasonal performance 
factor shall be calculated for heating Region IV for the standardized 
design heating requirement nearest the capacity measured in the High 
Temperature Test in accordance with Sec. 305.5. In addition, the energy 
efficiency rating(s) for split system condenser-evaporator coil 
combinations shall be either:
    (i) The energy efficiency rating of the condenser-evaporator coil 
combination that is the particular manufacturer's most commonly sold 
combination for that condenser model; or
    (ii) The energy efficiency rating of the actual condenser-
evaporator coil combination comprising the system to which the label is 
to be attached.
    (4)(i) Each cooling only central air conditioner label shall 
contain a range of comparability consisting of the lowest and highest 
seasonal energy efficiency ratios for all cooling only central air 
conditioners.
    (ii) Each heat pump label, except as noted in paragraph (g)(4)(iii) 
of this section, shall contain two ranges of comparability. The first 
range shall consist of the lowest and highest seasonal energy 
efficiency ratios for the cooling side of all heat pumps. The second 
range shall consist of the lowest and highest heating seasonal 
performance factors for the heating side of all heat pumps.
    (iii) Each heating only heat pump label shall contain a range of 
comparability consisting of the lowest and highest heating seasonal 
performance factors for all heating only heat pumps.
    (5) Placement of the labeled product on the scale shall be 
proportionate to the lowest and highest efficiency ratings forming the 
scale.
    (6) The following statement shall appear on the label beneath the 
range(s) in bold print (fill in the blank the appropriate unit type):
    Efficiency range based only on [single package units or split 
system units].
    [Insert statement required by 305.12(g)(7) if applicable].
    For more information, visit www.ftc.gov/appliances.
    (7) All labels on split system condenser units disclosing energy 
efficiency ratings for the ``most common'' condenser-evaporator coil 
combinations must contain one of the following three statements:
    (i) For labels disclosing the seasonal energy efficiency ratio for 
cooling, the statement should read:
    This energy efficiency rating is based on U.S. Government 
standard tests of this condenser model combined with the most common 
coil. The rating may vary slightly with different coils.
    (ii) For labels disclosing both the seasonal energy efficiency 
ratio for cooling and the heating seasonal performance factor for 
heating, the statement should read:
    This energy efficiency rating is based on U.S. Government 
standard tests of this condenser model combined with the most common 
coil. The rating will vary slightly with different coils and in 
different geographic regions.

[[Page 49971]]

    (iii) For labels disclosing the heating seasonal performance factor 
for heating, the statement should read:
    This energy efficiency rating is based on U.S. Government 
standard tests of this condenser model combined with the most common 
coil. The rating will vary slightly with different coils and in 
different geographic regions.
    Central air conditioner labels disclosing the efficiency ratings 
for specific condenser/coil combinations do not have to contain any of 
the above three statements.
    (8) The following statement shall appear at the top of the label as 
illustrated in the sample labels in appendix L:
    Federal law prohibits removal of this label before consumer 
purchase.
    (9) No marks or information other than that specified in this part 
shall appear on or directly adjoining this label except that:
    (i) A part or publication number identification may be included on 
this label, as desired by the manufacturer. If a manufacturer elects to 
use a part or publication number, it must appear in the lower right-
hand corner of the label and be set in 6-point type or smaller.
    (ii) The energy use disclosure labels required by the governments 
of Canada or Mexico may appear directly adjoining this label, as 
desired by the manufacturer.
    (iii) The manufacturer may include the ENERGY STAR logo on the 
bottom right corner of the label for qualified products. The logo must 
be 1 inch by 1 inch in size. Only manufacturers that have signed a 
Memorandum of Understanding with the Department of Energy or the 
Environmental Protection Agency may add the ENERGY STAR logo to labels 
on qualifying covered products; such manufacturers may add the ENERGY 
STAR logo to labels only on those covered products that are 
contemplated by the Memorandum of Understanding.


Sec. Sec.  305.13, 305.14, 305.15, 305.16, 305.17, 305.18, and 
305.19  [Redesignated as Sec. Sec.  305.19, 305.20, 305.21, 305.22, 
305.23, 305.24, and 305.25]

0
12. Sections 305.13, 305.14, 305.15, 305.16, 305.17, 305.18, and 305.19 
are redesignated as sections 305.19, 305.20, 305.21, 305.22, 305.23, 
305.24, and 305.25 respectively.


Sec.  305.13  [Reserved]

0
13. Section 305.13 is reserved.

0
14. Section 305.14 is added to read as follows:


Sec.  305.14  Energy Information Disclosures for Heating and Cooling 
Equipment.

    (a) Required Information: Manufacturers and private labelers of 
central air conditioners, heat pumps, and furnaces (including boilers) 
must provide energy information about the equipment they sell to 
distributors and retailers, including contractors. This information can 
be provided through means such as fact sheets, product brochures, and 
directories. All required information must be disclosed clearly and 
conspicuously. The information must include:
    (1) Name of manufacturer or private labeler which, in the case of a 
corporation, shall be deemed to be satisfied only by the actual 
corporate name, which may be preceded or followed by the name of the 
particular division of the corporation. In the case of an individual, 
partnership, or association, the name under which the business is 
conducted shall be used;
    (2) Trade name (if different from manufacturer);
    (3) Model number(s) given by the manufacturer or private labeler;
    (4) Capacity or size as determined in accordance with Sec.  305.7;
    (5) Energy efficiency rating as determined in accordance with Sec.  
305.5. The energy efficiency rating(s) for split system condenser-
evaporator coil combinations shall be either:
    (i) The energy efficiency rating of the actual condenser-evaporator 
coil combination comprising the listed split system; or
    (ii) The energy efficiency rating of the condenser-evaporator coil 
combination that is the particular manufacturer's most commonly sold 
combination for that condenser model.
    (6) Ranges of comparability and of energy efficiency ratings found 
in the appropriate appendices accompanying this part.
    (7) A statement that the energy efficiency ratings are based on 
U.S. Government standard tests.
    (8) If the ``most common'' condenser-evaporator coil combinations 
are given for central air conditioners and heat pump efficiency ratings 
pursuant to Sec.  305.14(a)(5)(ii), the statement required by Sec.  
305.14(a)(7) as follows:
    (i) For information disclosing the seasonal energy efficiency ratio 
for cooling, the statement should read:
    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
may vary slightly with different coils.
    (ii) For information disclosing both the seasonal energy efficiency 
ratio for cooling and the heating seasonal performance factor for 
heating, the statement should read:
    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.
    (iii) For information disclosing the heating seasonal performance 
factor for heating, the statement should read:
    This energy rating is based on U.S. Government standard tests of 
this condenser model combined with the most common coil. The rating 
will vary slightly with different coils and in different geographic 
regions.
    (9) For central air conditioners disclosing the efficiency ratings 
for specific condenser/coil combinations pursuant to Sec.  
305.14(a)(5)(i), a general disclosure that the efficiency ratings are 
based on U.S. Government tests.
    (b) Distribution. (1) Manufacturers and private labelers must give 
distributors and retailers, including assemblers, the information 
specified under Sec.  305.14(a) for the central air conditioners, heat 
pumps, and furnaces (including boilers) they sell to them. This 
information may be provided in paper or electronic form (including 
Internet-based access). Distributors must give this information to 
retailers, including assemblers, they supply.
    (2) Retailers, including assemblers, who sell central air 
conditioners, heat pumps, and furnaces (including boilers) to consumers 
must make the information specified under Sec.  305.14(a) available to 
customers in any manner, as long as customers are likely to notice it. 
For example, it may be available in a display, where customers can take 
copies of them. It may be kept in a binder or made available 
electronically at a counter or service desk, with a sign telling 
customers where the required information is.
    (3) Retailers, including assemblers, who negotiate or make sales at 
a place other than their regular places of business must show the 
required information to their customers and let them read the 
information before they agree to purchase the product. If the 
information is Internet-based, retailers, including assemblers, who 
negotiate or make sales at a place other than their regular places of 
business, may choose to provide customers with instructions to access 
such information in lieu of showing them a paper version of the 
information. Retailers who choose to use the Internet for the required 
information, must let customers read such information before the 
customers agree to purchase the product.

0
15. Section 305.15 is added to read as follows:

[[Page 49972]]

Sec.  305.15  Labeling for Lighting Products.

    (a) Fluorescent Lamp Ballasts and Luminaires--(1) Contents. 
Fluorescent lamp ballasts that are ``covered products,'' as defined in 
Sec. 305.2(n), and to which standards are applicable under section 325 
of the Act, shall be marked conspicuously, in color-contrasting ink, 
with a capital letter ``E'' printed within a circle. Packaging for such 
fluorescent lamp ballasts, as well as packaging for luminaires into 
which they are incorporated, shall also be marked conspicuously with a 
capital letter ``E'' printed within a circle. For purposes of this 
section, the encircled capital letter ``E'' will be deemed 
``conspicuous,'' in terms of size, if it is as large as either the 
manufacturer's name or another logo, such as the ``UL,'' ``CBM'' or 
``ETL'' logos, whichever is larger, that appears on the fluorescent 
lamp ballast, the packaging for such ballast or the packaging for the 
luminaire into which the covered ballast is incorporated, whichever is 
applicable for purpose of labeling.
    (2) Product Labeling. The encircled capital letter ``E'' on 
fluorescent lamp ballasts must appear conspicuously, in color-
contrasting ink, (i.e., in a color that contrasts with the background 
on which the encircled capital letter ``E'' is placed) on the surface 
that is normally labeled. It may be printed on the label that normally 
appears on the fluorescent lamp ballast, printed on a separate label, 
or stamped indelibly on the surface of the fluorescent lamp ballast.
    (3) Package Labeling. For purposes of labeling under this section, 
packaging for such fluorescent lamp ballasts and the luminaires into 
which they are incorporated consists of the plastic sheeting, or 
``shrink-wrap,'' covering pallet loads of fluorescent lamp ballasts or 
luminaires as well as any containers in which such fluorescent lamp 
ballasts or the luminaires into which they are incorporated are 
marketed individually or in small numbers. The encircled capital letter 
``E'' on packages containing fluorescent lamp ballasts or the 
luminaires into which they are incorporated must appear conspicuously, 
in color-contrasting ink, on the surface of the package on which 
printing or a label normally appears. If the package contains printing 
on more than one surface, the label must appear on the surface on which 
the product inside the package is described. The encircled capital 
letter ``E'' may be printed on the surface of the package, printed on a 
label containing other information, printed on a separate label, or 
indelibly stamped on the surface of the package. In the case of pallet 
loads containing fluorescent lamp ballasts or the luminaires into which 
they are incorporated, the encircled capital letter ``E'' must appear 
conspicuously, in color-contrasting ink, on the plastic sheeting, 
unless clear plastic sheeting is used and the encircled capital letter 
``E'' is legible underneath this packaging. The encircled capital 
letter ``E'' must also appear conspicuously on any documentation that 
would normally accompany such a pallet load. The encircled capital 
letter ``E'' may appear on a label affixed to the sheeting or may be 
indelibly stamped on the sheeting. It may be printed on the 
documentation, printed on a separate label that is affixed to the 
documentation or indelibly stamped on the documentation.
    (b) Lamps--(1)(i) Any covered product that is a compact fluorescent 
lamp or general service incandescent lamp (including an incandescent 
reflector lamp) shall be labeled clearly and conspicuously on the 
product's principal display panel with the following information:
    (A) The number of lamps included in the package, if more than one;
    (B) The design voltage of each lamp included in the package, if 
other than 120 volts;
    (C) The light output of each lamp included in the package, 
expressed in average initial lumens;
    (D) The electrical power consumed (energy used) by each lamp 
included in the package, expressed in average initial wattage;
    (E) The life of each lamp included in the package, expressed in 
hours.
    (ii) The light output, energy usage and life ratings of any covered 
product that is a medium base compact fluorescent lamp or general 
service incandescent lamp (including an incandescent reflector lamp), 
shall appear in that order and with equal clarity and conspicuousness 
on the product's principal display panel. The light output, energy 
usage and life ratings shall be disclosed in terms of ``lumens,'' 
``watts'' and ``hours'' respectively, with the lumens, watts and hours 
rating numbers each appearing in the same type style and size and with 
the words ``lumens,'' ``watts'' and ``hours'' each appearing in the 
same type style and size. The words ``light output,'' ``energy used'' 
and ``life'' shall precede and have the same conspicuousness as both 
the rating numbers and the words ``lumens,'' ``watts'' and ``hours,'' 
except that the letters of the words ``lumens,'' ``watts'' and 
``hours'' shall be approximately 50% of the sizes of those used for the 
words ``light output,'' ``energy used'' and ``life'' respectively.
    (iii) The light output, energy usage and life ratings of any 
covered product that is a medium base compact fluorescent lamp or 
general service incandescent lamp (including an incandescent reflector 
lamp), shall be measured at 120 volts, regardless of the lamp's design 
voltage. If a lamp's design voltage is 125 volts or 130 volts, the 
disclosures of the wattage, light output and life ratings shall in each 
instance be:
    (A) At 120 volts and followed by the phrase ``at 120 volts.'' In 
such case, the labels for such lamps also may disclose the lamp's 
wattage, light output and life at the design voltage (e.g., ``Light 
Output 1710 Lumens at 125 volts''); or
    (B) At the design voltage and followed by the phrase ``at (125 
volts/130 volts)'' if the ratings at 120 volts are disclosed clearly 
and conspicuously on another panel of the package, and if all panels of 
the package that contain a claimed light output, wattage or life 
clearly and conspicuously identify the lamp as ``(125 volt/130 volt),'' 
and if the principal display panel clearly and conspicuously discloses 
the following statement:
    This product is designed for (125/130) volts. When used on the 
normal line voltage of 120 volts, the light output and energy 
efficiency are noticeably reduced. See (side/back) panel for 120 
volt ratings.
    (iv) For any covered product that is an incandescent reflector 
lamp, the required disclosure of light output shall be given for the 
lamp's total forward lumens.
    (v) For any covered product that is a compact fluorescent lamp, the 
required light output disclosure shall be measured at a base-up 
position; but, if the manufacturer or private labeler has reason to 
believe that the light output at a base-down position would be more 
than 5% different, the label also shall disclose the light output at 
the base-down position or, if no test data for the base-down position 
exist, the fact that at a base-down position the light output might be 
more than 5% less.
    (vi) For any covered product that is a compact fluorescent lamp or 
a general service incandescent lamp (including an incandescent 
reflector lamp), there shall be clearly and conspicuously disclosed on 
the principal display panel the following statement:
    To save energy costs, find the bulbs with the (beam spread and) 
light output you need, then choose the one with the lowest watts.''
    (vii) For any covered product that is a general service 
incandescent lamp and operates with multiple filaments, the principal 
display panel shall disclose clearly and conspicuously, in the manner 
required by paragraph (b)(1)(i)--

[[Page 49973]]

(iii) and (vi) of this section, the lamp's wattage and light output at 
each of the lamp's levels of light output and the lamp's life measured 
on the basis of the filament that fails first.
    (2) Any covered product that is a general service fluorescent lamp 
or an incandescent reflector lamp shall be labeled clearly and 
conspicuously with a capital letter ``E'' printed within a circle and 
followed by an asterisk. The label shall also clearly and conspicuously 
disclose, either in close proximity to that asterisk or elsewhere on 
the label, the following statement:
    *[The encircled ``E''] means this bulb meets Federal minimum 
efficiency standards.
    (i) If the statement is not disclosed on the principal display 
panel, the asterisk shall be followed by the following statement:
    See [Back,Top, Side] panel for details.
    (ii) For purposes of this paragraph (b), the encircled capital 
letter ``E'' shall be clearly and conspicuously disclosed in color-
contrasting ink on the label of any covered product that is a general 
service fluorescent lamp and will be deemed ``conspicuous,'' in terms 
of size, if it appears in typeface at least as large as either the 
manufacturer's name or logo or another logo disclosed on the label, 
such as the ``UL'' or ``ETL'' logos, whichever is larger.
    (3)(i) A manufacturer or private labeler who distributes general 
service fluorescent lamps, compact fluorescent lamps, or general 
service incandescent lamps (including incandescent reflector lamps) 
without labels attached to the lamps or without labels on individual 
retail-sale packaging for one or more lamps may meet the disclosure 
requirements of paragraphs (b)(1) and (b)(2) of this section by making 
the required disclosures, in the manner and form required by those 
paragraphs, on the bulk shipping cartons that are to be used to display 
the lamps for retail sale.
    (ii) Instead of labeling any covered product that is a general 
service fluorescent lamp with the encircled ``E'' and with the 
statement described in paragraph (b)(2) of this section, a manufacturer 
or private labeler who would not otherwise put a label on such a lamp 
may meet the disclosure requirements of that paragraph by permanently 
marking the lamp clearly and conspicuously with the encircled ``E''.
    (4) Any manufacturer or private labeler who makes any 
representation on a label of any covered product that is a general 
service fluorescent lamp, medium base compact fluorescent lamp, or 
general service incandescent lamp (including an incandescent reflector 
lamp), regarding the cost of operation of such lamp shall clearly and 
conspicuously disclose in close proximity to such representation the 
assumptions upon which it is based, including, e.g., purchase price, 
unit cost of electricity, hours of use, patterns of use.
    (5) Any cartons in which any covered products that are general 
service fluorescent lamps, medium base compact fluorescent lamps, or 
general service incandescent lamps (including incandescent reflector 
lamps), are shipped within the United States or imported into the 
United States shall disclose clearly and conspicuously the following 
statement:
    These lamps comply with Federal energy efficiency labeling 
requirements.

0
16. Section 305.16 is added to read as follows:


Sec.  305.16  Labeling and Marking for Plumbing Products.

    (a) Showerheads and Faucets. Showerheads and faucets shall be 
marked and labeled as follows:
    (1) Each showerhead and flow restricting or controlling spout end 
device shall bear a permanent legible marking indicating the flow rate, 
expressed in gallons per minute (gpm) or gallons per cycle (gpc), and 
the flow rate value shall be the actual flow rate or the maximum flow 
rate specified by the standards established in subsection (j) of 
section 325 of the Act, 42 U.S.C. 6295(j). Except where impractical due 
to the size of the fitting, each flow rate disclosure shall also be 
given in liters per minute (L/min) or liters per cycle (L/cycle). For 
purposes of this section, the marking indicating the flow rate will be 
deemed ``legible,'' in terms of placement, if it is located in close 
proximity to the manufacturer's identification marking.
    (2) Each showerhead and faucet shall bear a permanent legible 
marking to identify the manufacturer. This marking shall be the trade 
name, trademark, or other mark known to identify the manufacturer. Such 
marking shall be located where it can be seen after installation.
    (3) Each showerhead and faucet shall be marked ``A112.18.1M'' to 
demonstrate compliance with the applicable ASME standard. The marking 
shall be by means of either a permanent mark on the product, a label on 
the product, or a tag attached to the product.
    (4) The package for each showerhead and faucet shall disclose the 
manufacturer's name and the model number.
    (5) The package or any label attached to the package for each 
showerhead or faucet shall contain at least the following: 
``A112.18.1M'' and the flow rate expressed in gallons per minute (gpm) 
or gallons per cycle (gpc), and the flow rate value shall be the actual 
flow rate or the maximum flow rate specified by the standards 
established in subsection (j) of section 325 of the Act, 42 U.S.C. 
6295(j). Each flow rate disclosure shall also be given in liters per 
minute (L/min) or liters per cycle (L/cycle).
    (b) Water Closets and Urinals. Water closets and urinals shall be 
marked and labeled as follows:
    (1) Each such fixture (and flushometer valve associated with such 
fixture) shall bear a permanent legible marking indicating the flow 
rate, expressed in gallons per flush (gpf), and the water use value 
shall be the actual water use or the maximum water use specified by the 
standards established in subsection (k) of section 325 of the Act, 42 
U.S.C. 6295(k). Except where impractical due to the size of the 
fixture, each flow rate disclosure shall also be given in liters per 
flush (Lpf). For purposes of this section, the marking indicating the 
flow rate will be deemed ``legible,'' in terms of placement, if it is 
located in close proximity to the manufacturer's identification 
marking.
    (2) Each water closet (and each component of the water closet if 
the fixture is comprised of two or more components) and urinal shall be 
marked with the manufacturer's name or trademark or, in the case of 
private labeling, the name or registered trademark of the customer for 
whom the unit was manufactured. This mark shall be legible, readily 
identified, and applied so as to be permanent. The mark shall be 
located so as to be visible after the fixture is installed, except for 
fixtures built into or for a counter or cabinet.
    (3) Each water closet (and each component of the water closet if 
the fixture is comprised of two or more components) and urinal shall be 
marked at a location determined by the manufacturer with the 
designation ``ASME A112.19.2M'' to signify compliance with the 
applicable standard. This mark need not be permanent, but shall be 
visible after installation.
    (4) The package, and any labeling attached to the package, for each 
water closet and urinal shall disclose the flow rate, expressed in 
gallons per flush (gpf), and the water use value shall be the actual 
water use or the maximum water use specified by the standards 
established in subsection (k) of section 325 of the Act, 42 U.S.C. 
6295(k). Each

[[Page 49974]]

flow rate disclosure shall also be given in liters per flush (Lpf).
    (5) With respect to any gravity tank-type white 2-piece toilet 
offered for sale or sold before January 1, 1997, which has a water use 
greater than 1.6 gallons per flush (gpf), any printed matter 
distributed or displayed in connection with such product (including 
packaging and point-of-sale material, catalog material, and print 
advertising) shall include, in a conspicuous manner, the words ``For 
Commercial Use Only.''
    (c) Annual Operating Cost Claims for Covered Plumbing Products. 
Until such time as the Commission has prescribed a format and manner of 
display for labels conveying estimated annual operating costs of 
covered showerheads, faucets, water closets, and urinals or ranges of 
estimated annual operating costs for the types or classes of such 
plumbing products, the Act prohibits manufacturers from making such 
representations on the labels of such covered products. 42 U.S.C. 
6294(c)(8). If, before the Commission has prescribed such a format and 
manner of display for labels of such products, a manufacturer elects to 
provide for any such product a label conveying such a claim, it shall 
submit the proposed claim to the Commission so that a format and manner 
of display for a label may be prescribed.

0
17. In newly designated Sec.  305.19, paragraph (a)(1) is revised to 
read as follows:


Sec.  305.19  Promotional material displayed or distributed at point of 
sale.

    (a)(1) Any manufacturer, distributor, retailer or private labeler 
who prepares printed material for display or distribution at point of 
sale concerning a covered product (except fluorescent lamp ballasts, 
general service fluorescent lamps, medium base compact fluorescent 
lamps, or general service incandescent lamps including incandescent 
reflector lamps, showerheads, faucets, water closets or urinals) shall 
clearly and conspicuously include in such printed material the 
following required disclosure:
    Before purchasing this appliance, read important information 
about its estimated annual energy consumption, yearly operating 
cost, or energy efficiency rating that is available from your 
retailer.
* * * * *

0
18. Newly designated Sec.  305.20 is amended as follows:
    A. Revise the section heading and paragraph (a).
    B. In paragraph (b), remove the reference to ``Sec.  305.2(o)'' and 
replace it with ``Sec.  305.2(l).''
    C. In paragraph (c)(1)(i), remove the reference to ``Sec.  
305.11(e)(1)'' and replace it with ``Sec.  305.15(b)(1).''
    D. In paragraph (c)(1)(i), remove the reference to ``Sec.  
305.11(e)(1)(ii)'' and replace it with ``Sec.  305.15(b)(1)(ii).''
    E. In paragraph (c)(1)(ii) introductory text, remove the reference 
``Sec.  305.11(e)(2)'' and replace it with ``Sec.  305.15(b)(2).''
    F. In paragraph (d), remove the reference ``Sec.  305.11(f)'' and 
replace it with ``Sec.  305.16.''
    The revisions read as follows:


Sec.  305.20  Paper catalogs and websites.

    (a) Any manufacturer, distributor, retailer, or private labeler who 
advertises in a catalog, a covered product (except fluorescent lamp 
ballasts, general service fluorescent lamps, medium base compact 
fluorescent lamps, general service incandescent lamps including 
incandescent reflector lamps, showerheads, faucets, water closets, or 
urinals) shall include in such catalog either the EnergyGuide labels 
prepared in accordance with Sec. Sec.  305.11 and 305.12 for products 
they offer or the following information:
    (1) The capacity of the model on each page that lists the covered 
product.
    (2) The estimated annual operating costs for refrigerators, 
refrigerator-freezers, freezers, clothes washers, dishwashers, room air 
conditioners, and water heaters as determined in accordance with Sec.  
305.5 and appendix K of this part on each page that lists the covered 
product.
    (3) A statement conspicuously placed in the catalog:
    (i) For refrigerators, refrigerator-freezers, and freezers (fill in 
the blanks with the appropriate year and energy cost figures):
    Your operating costs will depend on your utility rates and use. 
The estimated operating cost is based on a [Year] national average 
electricity cost of [ ------ cents per kWh].
    For more information, visit www.ftc.gov/appliances.
    (ii) For room air conditioners and water heaters, (fill in the 
blanks with the appropriate year and energy cost figures):
    Your operating costs will depend on your utility rates and use. 
The estimated operating cost is based on a [Year] national average 
[electricity, natural gas, propane, or oil] cost of [$ ------ per 
kWh, therm, or gallon].
    For more information, visit www.ftc.gov/appliances.
    (iii) For clothes washers and dishwashers, (fill in the blanks with 
the appropriate information such as the year, and the energy cost 
figures):
    Your operating costs will depend on your utility rates and use. 
The estimated operating cost is based on [4 washloads a week for 
dishwashers, or 8 washloads a week for clothes washers] and a [Year] 
national average cost of ------ cents per kWh for electricity and $ 
------ per therm for natural gas.
    For more information, visit www.ftc.gov/appliances.
    (4) The energy efficiency or thermal efficiency ratings for pool 
heaters, central air conditioners, heat pumps, and furnaces (including 
boilers) as determined in accordance with Sec. 305.5 on each page that 
lists the covered product.
* * * * *


Sec.  305.22  [Amended]

0
19. In newly designated Sec.  305.22, remove the reference to ``Sec.  
305.15(b)'' and replace it with ``Sec.  305.21(b).''


Sec.  305.25  [Removed]

0
20. Newly redesignated Sec.  305.25 is removed and reserved.

0
21. Appendix A1 to Part 305 is revised to read as follows:

      APPENDIX A1 TO PART 305--REFRIGERATORS WITH AUTOMATIC DEFROST
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 2.5..................  $32                  $35
2.5 to 4.4.....................  $33                  $42
4.5 to 6.4.....................  $32                  $58
6.5 to 8.4.....................  $48                  $48
8.5 to 10.4....................  $37                  $37
10.5 to 12.4...................  $35                  $35

[[Page 49975]]

 
12.5 to 14.4...................  $33                  $33
14.5 to 16.4...................  $46                  $46
16.5 and over..................  $36                  $50
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
22. Appendix A2 to Part 305 is revised to read as follows:

  APPENDIX A2 TO PART 305--REFRIGERATORS AND REFRIGERATOR-FREEZERS WITH
                             MANUAL DEFROST
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 2.5..................  $29                  $36
2.5 to 4.4.....................  $29                  $37
4.5 to 6.4.....................  $29                  $39
6.5 to 8.4.....................  $39                  $39
8.5 to 10.4....................  $24                  $36
10.5 to 12.4...................  $35                  $35
12.5 to 14.4...................  (*)                  (*)
14.5 to 16.4...................  (*)                  (*)
16.5 to 18.4...................  $36                  $43
18.5 to 20.4...................  (*)                  (*)
20.5 to 22.4...................  (*)                  (*)
22.5 to 24.4...................  $48                  $48
24.5 to 26.4...................  (*)                  (*)
26.5 to 28.4...................  (*)                  (*)
28.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
23. Appendix A3 to Part 305 is revised to read as follows:

  APPENDIX A3 TO PART 305--REFRIGERATOR-FREEZERS WITH PARTIAL AUTOMATIC
                                 DEFROST
                            Range Information
------------------------------------------------------------------------
                                    Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic   ---------------------------------------
              feet                        Low                High
------------------------------------------------------------------------
Less than 10.5..................  $27                 $46
10.5 to 12.4....................  $33                 $33
12.5 to 14.4....................  (*)                 (*)
14.5 to 16.4....................  (*)                 (*)
16.5 to 18.4....................  (*)                 (*)
18.5 to 20.4....................  (*)                 (*)
20.5 to 22.4....................  (*)                 (*)
22.5 to 24.4....................  (*)                 (*)
24.5 to 26.4....................  (*)                 (*)
26.5 to 28.4....................  (*)                 (*)
28.5 and over...................  (*)                 (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
24. Appendix A4 to Part 305 is revised to read as follows:

[[Page 49976]]



  APPENDIX A4 TO PART 305--REFRIGERATOR-FREEZERS WITH AUTOMATIC DEFROST
      WITH TOP-MOUNTED FREEZER WITHOUT THROUGH-THE-DOOR ICE SERVICE
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 10.5.................  $35                  $49
10.5 to 12.4...................  $41                  $44
12.5 to 14.4...................  $40                  $47
14.5 to 16.4...................  $40                  $48
16.5 to 18.4...................  $42                  $52
18.5 to 20.4...................  $41                  $53
20.5 to 22.4...................  $44                  $56
22.5 to 24.4...................  (*)                  (*)
24.5 to 26.4...................  $51                  $51
26.5 to 28.4...................  (*)                  (*)
28.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
25. Appendix A5 to Part 305 is revised to read as follows:

  APPENDIX A5 TO PART 305--REFRIGERATOR-FREEZERS WITH AUTOMATIC DEFROST
     WITH SIDE-MOUNTED FREEZER WITHOUT THROUGH-THE-DOOR ICE SERVICE
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 10.5.................  $56                  $56
10.5 to 12.4...................  (*)                  (*)
12.5 to 14.4...................  (*)                  (*)
14.5 to 16.4...................  (*)                  (*)
16.5 to 18.4...................  (*)                  (*)
18.5 to 20.4...................  $66                  $66
20.5 to 22.4...................  $46                  $68
22.5 to 24.4...................  $59                  $73
24.5 to 26.4...................  $58                  $78
26.5 to 28.4...................  $71                  $71
28.5 and over..................  $62                  $73
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
26. Appendix A6 to Part 305 is revised to read as follows:

  APPENDIX A6 TO PART 305--REFRIGERATOR-FREEZERS WITH AUTOMATIC DEFROST
    WITH BOTTOM-MOUNTED FREEZER WITHOUT THROUGH-THE-DOOR ICE SERVICE
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 10.5.................  $46                  $54
10.5 to 12.4...................  $47                  $47
12.5 to 14.4...................  (*)                  (*)
14.5 to 16.4...................  $48                  $58
16.5 to 18.4...................  $50                  $59
18.5 to 20.4...................  $47                  $61
20.5 to 22.4...................  $49                  $61
22.5 to 24.4...................  $62                  $62
24.5 to 26.4...................  $51                  $63
26.5 to 28.4...................  (*)                  (*)

[[Page 49977]]

 
28.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
27. Appendix A7 to Part 305 is revised to read as follows:

  APPENDIX A7 TO PART 305--REFRIGERATOR-FREEZERS WITH AUTOMATIC DEFROST
       WITH TOP-MOUNTED FREEZER WITH THROUGH-THE-DOOR ICE SERVICE
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 10.5.................  (*)                  (*)
10.5 to 12.4...................  (*)                  (*)
12.5 to 14.4...................  (*)                  (*)
14.5 to 16.4...................  (*)                  (*)
16.5 to 18.4...................  $43                  $43
18.5 to 20.4...................  (*)                  (*)
20.5 to 22.4...................  $56                  $56
22.5 to 24.4...................  (*)                  (*)
24.5 to 26.4...................  (*)                  (*)
26.5 to 28.4...................  (*)                  (*)
28.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
28. Appendix A8 to Part 305 is revised to read as follows:

  APPENDIX A8 TO PART 305--REFRIGERATOR-FREEZERS WITH AUTOMATIC DEFROST
       WITH SIDE-MOUNTED FREEZER WITH THROUGH-THE-DOOR ICE SERVICE
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 10.5.................  (*)                  (*)
10.5 to 12.4...................  (*)                  (*)
12.5 to 14.4...................  (*)                  (*)
14.5 to 16.4...................  (*)                  (*)
16.5 to 18.4...................  (*)                  (*)
18.5 to 20.4...................  $59                  $69
20.5 to 22.4...................  $57                  $72
22.5 to 24.4...................  $57                  $74
24.5 to 26.4...................  $60                  $78
26.5 to 28.4...................  $65                  $80
28.5 and over..................  $70                  $84
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
29. Appendix B1 to Part 305 is revised to read as follows:

[[Page 49978]]



      APPENDIX B1 TO PART 305--UPRIGHT FREEZERS WITH MANUAL DEFROST
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 5.5..................  $29                  $35
5.5 to 7.4.....................  $32                  $38
7.5 to 9.4.....................  $36                  $40
9.5 to 11.4....................  (*)                  (*)
11.5 to 13.4...................  $44                  $44
13.5 to 15.4...................  $42                  $48
15.5 to 17.4...................  $44                  $51
17.5 to 19.4...................  $46                  $51
19.5 to 21.4...................  $55                  $56
21.5 to 23.4...................  (*)                  (*)
23.5 to 25.4...................  $62                  $62
25.5 to 27.4...................  (*)                  (*)
27.5 to 29.4...................  (*)                  (*)
29.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
30. Appendix B2 to Part 305 is revised to read as follows:

    APPENDIX B2 TO PART 305--UPRIGHT FREEZERS WITH AUTOMATIC DEFROST
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 5.5..................  $51                  $52
5.5 to 7.4.....................  (*)                  (*)
7.5 to 9.4.....................  (*)                  (*)
9.5 to 11.4....................  $60                  $60
11.5 to 13.4...................  $61                  $61
13.5 to 15.4...................  $60                  $70
15.5 to 17.4...................  $62                  $73
17.5 to 19.4...................  $68                  $79
19.5 to 21.4...................  $71                  $82
21.5 to 23.4...................  $85                  $85
23.5 to 25.4...................  $91                  $91
25.5 to 27.4...................  (*)                  (*)
27.5 to 29.4...................  (*)                  (*)
29.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
31. Appendix B3 to Part 305 is revised to read as follows:

     APPENDIX B3 TO PART 305--CHEST FREEZERS AND ALL OTHER FREEZERS
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
   Manufacturer's Rated Total              Costs (Dollars/Year)
  Refrigerated Volume in Cubic  ----------------------------------------
              feet                       Low                 High
------------------------------------------------------------------------
Less than 5.5..................  $20                  $26
5.5 to 7.4.....................  $25                  $37
7.5 to 9.4.....................  $31                  $38
9.5 to 11.4....................  $30                  $33
11.5 to 13.4...................  $35                  $39
13.5 to 15.4...................  $38                  $57
15.5 to 17.4...................  $38                  $38
17.5 to 19.4...................  (*)                  (*)
19.5 to 21.4...................  $46                  $51
21.5 to 23.4...................  $49                  $55

[[Page 49979]]

 
23.5 to 25.4...................  $55                  $61
25.5 to 27.4...................  (*)                  (*)
27.5 to 29.4...................  (*)                  (*)
29.5 and over..................  (*)                  (*)
------------------------------------------------------------------------
(*) No data submitted for units meeting the Department of Energy's
  Energy Conservation Standards effective July 1, 2001.


0
32. 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 Operating
                                            Costs (Dollars/Year)
             Capacity              -------------------------------------
                                           Low                High
------------------------------------------------------------------------
Compact                             $19                $34
------------------------------------------------------------------------


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

              APPENDIX C2 TO PART 305--STANDARD DISHWASHERS
                            Range Information
  ``Standard'' includes dishwasher models with a capacity of fewer than
 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 Operating
                                            Costs (Dollars/Year)
             Capacity              -------------------------------------
                                           Low                High
------------------------------------------------------------------------
Standard                            $20                $50
------------------------------------------------------------------------


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

                                   APPENDIX D1 TO PART 305--WATER HEATERS--GAS
                                                Range Information
----------------------------------------------------------------------------------------------------------------
            CAPACITY                         Range of Estimated Annual Operating Costs (Dollars/Year)
----------------------------------------------------------------------------------------------------------------
                                           Natural Gas ($/year)                      Propane ($/year)
       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.......................  $285                 $309                $479                $520
56 to 64.......................  $295                 $309                $496                $520
65 to 74.......................  $273                 $314                $458                $529
75 to 86.......................  $273                 $331                $458                $529
87 to 99.......................  $285                 $331                $471                $557
100 to 114.....................  $276                 $345                $466                $557
115 to 131.....................  $276                 $380                $466                $578

[[Page 49980]]

 
Over 131.......................  $309                 $380                $520                $640
----------------------------------------------------------------------------------------------------------------
* No data submitted.


            APPENDIX D2 TO PART 305--WATER HEATERS--ELECTRIC
                            Range Information
------------------------------------------------------------------------
            CAPACITY               Range of Estimated Annual Operating
--------------------------------           Costs (Dollars/Year)
                                ----------------------------------------
       FIRST HOUR RATING                 Low                 High
------------------------------------------------------------------------
Less than 21...................  $503                 $503
21 to 24.......................  *                    *
25 to 29.......................  $503                 $503
30 to 34.......................  $503                 $508
35 to 40.......................  $497                 $508
41 to 47.......................  $492                 $531
48 to 55.......................  $492                 $531
56 to 64.......................  $492                 $520
65 to 74.......................  $492                 $531
75 to 86.......................  $492                 $544
87 to 99.......................  $503                 $550
100 to 114.....................  $514                 $577
115 to 131.....................  $544                 $563
Over 131.......................  *                    *
------------------------------------------------------------------------
* No data submitted.


               APPENDIX D3 TO PART 305--WATER HEATERS--OIL
                            Range Information
------------------------------------------------------------------------
            CAPACITY               Range of Estimated Annual Operating
--------------------------------           Costs (Dollars/Year)
                                ----------------------------------------
       FIRST HOUR RATING                 Low                 High
------------------------------------------------------------------------
Less than 65...................  *                    *
65 to 74.......................  *                    *
75 to 86.......................  *                    *
87 to 99.......................  *                    *
100 to 114.....................  $386                 $444
115 to 131.....................  $364                 $471
Over 131.......................  $353                 $471
------------------------------------------------------------------------
* No data submitted.


                            APPENDIX D4 TO PART 305--WATER HEATERS--INSTANTANEOUS-GAS
                                                Range Information
----------------------------------------------------------------------------------------------------------------
            CAPACITY                         Range of Estimated Annual Operating Costs (Dollars/Year)
----------------------------------------------------------------------------------------------------------------
                                           Natural Gas ($/year)                      Propane ($/year)
       FIRST HOUR RATING        --------------------------------------------------------------------------------
                                         Low                 High                 Low                High
----------------------------------------------------------------------------------------------------------------
Under 1.00.....................  $285                 $285                $479                $479
1.00 to 2.00...................  $280                 $285                $456                $471
2.01 to 3.00...................  $174                 $268                $346                $445
Over 3.00......................  $199                 $290                $301                $486
----------------------------------------------------------------------------------------------------------------
* No data submitted.


[[Page 49981]]


            APPENDIX D5 TO PART 305--WATER HEATERS--HEAT PUMP
                            Range Information
------------------------------------------------------------------------
            CAPACITY               Range of Estimated Annual Operating
--------------------------------           Costs (Dollars/Year)
                                ----------------------------------------
       FIRST HOUR RATING                 Low                 High
------------------------------------------------------------------------
Less than 21...................  *                    *
21 to 24.......................  *                    *
25 to 29.......................  *                    *
30 to 34.......................  *                    *
35 to 40.......................  *                    *
41 to 47.......................  *                    *
48 to 55.......................  *                    *
56 to 64.......................  *                    *
65 to 74.......................  *                    *
75 to 86.......................  *                    *
87 to 99.......................  *                    *
100 to 114.....................  *                    *
115 to 131.....................  *                    *
Over 131.......................  *                    *
------------------------------------------------------------------------
* No data submitted.


0
35. Appendix E to Part 305 is revised to read as follows:

              APPENDIX E TO PART 305--ROOM AIR CONDITIONERS
                            Range Information
------------------------------------------------------------------------
                                   Range of Estimated Annual Operating
  Manufacturer's rated cooling             Costs (Dollars/Year)
      capacity in Btu's/yr      ----------------------------------------
                                         LOW                 HIGH
------------------------------------------------------------------------
Without Reverse Cycle and with
 Louvered Sides:.
Less than 6,000 Btu............  $37                  $48
6,000 to 7,999 Btu.............  $44                  $64
8,000 to 13,999 Btu............  $59                  $112
14,000 to 19,999 Btu...........  $105                 $176
20,000 and more Btu............  $166                 $338
 
Without Reverse Cycle and
 without Louvered Sides:.
Less than 6,000 Btu............  *                    *
6,000 to 7,999 Btu.............  $48                  $48
8,000 to 13,999 Btu............  $61                  $127
14,000 to 19,999 Btu...........  $124                 $140
20,000 and more Btu............  *                    *
 
With Reverse Cycle and with      $61                  $192
 Louvered Sides.
With Reverse Cycle, without      $67                  $111
 Louvered Sides.
------------------------------------------------------------------------
* No data submitted for units meeting Federal Minimum Efficiency
  Standards effective October 1, 2000.


0
36. 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 Operating
                                            Costs (Dollars/Year)
             Capacity              -------------------------------------
                                           Low                High
------------------------------------------------------------------------
Standard                            $10                $71
------------------------------------------------------------------------


0
37. Appendix F2 to Part 305 is revised to read as follows:

[[Page 49982]]



            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 Operating
                                            Costs (Dollars/Year)
             Capacity              -------------------------------------
                                           Low                High
------------------------------------------------------------------------
Compact                             $19                $49
------------------------------------------------------------------------


0
38. Appendices G1, G2, G3, G4, G5, G6, G7, and G8 are revised to read 
as follows:

                 APPENDIX G1 TO PART 305--Furnaces--Gas
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      78.0               96.6
------------------------------------------------------------------------


               APPENDIX G2 TO PART 305--Furnaces--Electric
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      100                100
------------------------------------------------------------------------


                 APPENDIX G3 TO PART 305--Furnaces--Oil
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      78.0               86.1
------------------------------------------------------------------------


              APPENDIX G4 TO PART 305--Mobil Home Furnaces
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      75.0               92.1
------------------------------------------------------------------------


          APPENDIX G5 TO PART 305--Boilers--Gas (Except Steam)
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      80                 95.5
------------------------------------------------------------------------


              APPENDIX G6 TO PART 305--Boilers--Gas (Steam)
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      75.8               84.0
------------------------------------------------------------------------


[[Page 49983]]


                 APPENDIX G7 TO PART 305--Boilers (Oil)
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      80.0               92.0
------------------------------------------------------------------------


               APPENDIX G8 TO PART 305--Boilers (Electric)
------------------------------------------------------------------------
                                      Range of annual fuel utilization
   Manufacturer's rated heating             efficiencies (AFUE's)
      capacities (Btu's/hr.)       -------------------------------------
                                           Low                High
------------------------------------------------------------------------
All Capacities                      100                100
------------------------------------------------------------------------


0
39. Appendix H is revised to read as follows:

APPENDIX H TO PART 305--COOLING PERFORMANCE FOR CENTRAL AIR CONDITIONERS
------------------------------------------------------------------------
                                             Range of SEER's
  Manufacturer's rated cooling  ----------------------------------------
     capacities (Btu's/hr.)              Low                 High
------------------------------------------------------------------------
Single Package Units...........
Central Air Conditioners         10.6                 16.5
 (Cooling Only): All capacities.
Heat Pumps (Cooling Function):   10.6                 16.0
 All capacities.
 
Split System Units.............
Central Air Conditioners         10.9                 23.0
 (Cooling Only): All capacities.
Heat Pumps (Cooling Function):   10.9                 21.0
 All capacities.
------------------------------------------------------------------------


0
40. Appendix I is revised to read as follows:

APPENDIX I TO PART 305--HEATING PERFORMANCE FOR CENTRAL AIR CONDITIONERS
------------------------------------------------------------------------
                                             Range of HSPF's
  Manufacturer's rated heating  ----------------------------------------
      capacity (Btu's/hr.)               Low                 High
------------------------------------------------------------------------
Single Package Units...........
Heat Pumps (Heating Function):   7.0                  8.2
 All capacities.
 
Split System Units.............
Heat Pumps (Heating Function):   7.1                  10.2
 All capacities.
------------------------------------------------------------------------


0
41. Appendices J1 and J2 are revised to read as follows:

                                   APPENDIX J1 TO PART 305--POOL HEATERS--GAS
                                                Range Information
----------------------------------------------------------------------------------------------------------------
                                                     Range of Thermal Efficiencies (percent)
                                --------------------------------------------------------------------------------
  Manufacturer's rated heating                 Natural Gas                                Propane
            capacity            --------------------------------------------------------------------------------
                                         Low                 High                 Low                High
----------------------------------------------------------------------------------------------------------------
All capacities.................  79.0                 95.0                79.0                95.0
----------------------------------------------------------------------------------------------------------------


[[Page 49984]]


               APPENDIX J2 TO PART 305--POOL HEATERS--OIL
                            Range Information
------------------------------------------------------------------------
                                 Range of Thermal Efficiencies (percent)
  Manufacturer's rated heating  ----------------------------------------
           capacities                    Low                 High
------------------------------------------------------------------------
All capacities.................  79.0                 79.0
------------------------------------------------------------------------


0
42. Appendix K to Part 305 is revised to read as follows:

                        APPENDIX K TO PART 305--REPRESENTATIVE AVERAGE UNIT ENERGY COSTS
  This Table contains the representative unit energy costs that must be utilized to calculate estimated annual
    operating cost disclosures required under sections 305.11 and 305.20. This Table is based on information
  published by the U.S. Department of Energy in 2007. Unless otherwise indicated by the Commission, this table
                                            will be revised in 2012.
----------------------------------------------------------------------------------------------------------------
             Representative Average Unit Costs of Energy for Five Residential Energy Sources (2007)
-----------------------------------------------------------------------------------------------------------------
                                                                    As required by DOE      Dollars per million
             Type of Energy               In Commonly Used Terms      test procedure              Btu\1\
----------------------------------------------------------------------------------------------------------------
Electricity                               10.65[cent]/kWh\2,3\    $.1065/kWh              $31.21
----------------------------------------------------------------------------------------------------------------
Natural Gas                               $1.218/therm\4\         $0.00001218/Btu         $12.18
                                          $12.53/MCF\5,6\
----------------------------------------------------------------------------------------------------------------
No. 2 heating oil                         $2.22/gallon\7\         $0.00001601/Btu         $16.01
----------------------------------------------------------------------------------------------------------------
Propane                                   $1.87/gallon\8\         $0.00002047/Btu         $20.47
----------------------------------------------------------------------------------------------------------------
Kerosene                                  $2.63/gallon\9\         $0.00001948/Btu         $19.48
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
\1\ Btu stands for British termal unit.
\2\ kWh stands for kilo Watt 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 1,029 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.


0
43. In Appendix L, Prototype labels 1 through 4 and Sample labels 1 
through 9 are revised to read as follows and Prototype label 5 and 
Sample labels 10 and 11 are removed:
BILLING CODE 6750-01-S

[[Page 49985]]

APPENDIX L TO PART 305--SAMPLE LABELS
[GRAPHIC] [TIFF OMITTED] TR29AU07.122

    PROTOTYPE LABEL 1

[[Page 49986]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.123

    PROTOTYPE LABEL 2

[[Page 49987]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.124

    PROTOTYPE LABEL 3

[[Page 49988]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.125

    PROTOTYPE LABEL 4

[[Page 49989]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.126

    SAMPLE LABEL 1

[[Page 49990]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.127

    SAMPLE LABEL 2

[[Page 49991]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.128

    SAMPLE LABEL 3

[[Page 49992]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.129

    SAMPLE LABEL 4

[[Page 49993]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.130

    SAMPLE LABEL 5

[[Page 49994]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.131

    SAMPLE LABEL 6

[[Page 49995]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.132

    SAMPLE LABEL 7

[[Page 49996]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.133

    SAMPLE LABEL 8

[[Page 49997]]

[GRAPHIC] [TIFF OMITTED] TR29AU07.134

    SAMPLE LABEL 9
* * * * *
[FR Doc. 07-4193 Filed 8-28-07: 8:45 am]
BILLING CODE 6750-01-C