[Federal Register Volume 78, Number 141 (Tuesday, July 23, 2013)]
[Rules and Regulations]
[Pages 43974-44011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17553]


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FEDERAL TRADE COMMISSION

16 CFR Part 305

[3084-AB15]


Energy and Water Use Labeling for Consumer Products Under the 
Energy Policy and Conservation Act (Energy Labeling Rule)

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Final rule.

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SUMMARY: The Commission amends the Energy Labeling Rule (``Rule'') by 
updating comparability ranges and unit energy costs for many 
EnergyGuide labels. The Commission also issues a conditional exemption 
and amendments for modified refrigerator and clothes washer labels to 
help consumers compare the labels for these products after the 
implementation of upcoming changes to the Department of Energy 
(``DOE'') test procedures.

DATES: The amendments published in this document will become effective 
on November 15, 2013.

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, 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission issued the Energy Labeling Rule (``Rule'') in 
1979,\1\ pursuant to the Energy Policy and Conservation Act of 1975 
(EPCA).\2\ The Rule requires energy labeling for major home appliances 
and other consumer products, to help consumers compare competing 
models. When first published, the Rule applied to eight categories: 
Refrigerators, refrigerator-freezers, freezers, dishwashers, water 
heaters, clothes washers, room air conditioners, and furnaces. The 
Commission subsequently expanded the Rule's coverage to include central 
air conditioners, heat pumps, plumbing products, lighting products, 
ceiling fans, and televisions. The Commission is currently conducting a 
regulatory review of the Rule.\3\
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    \1\ 44 FR 66466 (Nov. 19, 1979) (Rule's initial promulgation).
    \2\ 42 U.S.C. 6294. EPCA also requires the DOE to develop test 
procedures that measure how much energy appliances use, and to 
determine the representative average cost a consumer pays for 
different types of energy.
    \3\ 77 FR 15298 (Mar. 15, 2012) (regulatory review). The 
Commission currently has another open proceeding related to light 
bulb coverage. See 76 FR 45715 (Aug. 1, 2011) (proposed expanded 
light bulb coverage).
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    The Rule requires manufacturers to attach yellow EnergyGuide labels 
for many of the covered products, and prohibits retailers from removing 
the labels or rendering them illegible. In addition, the Rule directs 
sellers, including retailers, to post label information on Web sites 
and in paper catalogs from which consumers can order products. 
EnergyGuide labels for covered products contain three key disclosures: 
Estimated annual energy cost (for most products); a product's energy 
consumption or energy efficiency rating as determined from DOE test 
procedures; and a comparability range displaying the highest and lowest 
energy costs or efficiency ratings for all similar models. For energy 
cost calculations, the Rule specifies national average costs for 
applicable energy sources (e.g., electricity, natural gas, oil) as 
calculated by DOE. The Rule sets a five-year schedule for updating 
comparability range and annual energy cost information.\4\ The 
Commission updates the range information based on manufacturer data 
submitted pursuant to the Rule's reporting requirements.
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    \4\ 16 CFR 305.10.
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II. Notice of Proposed Rulemaking

    In a Notice of Proposed Rulemaking (NPRM) announced December 31, 
2012,\5\ the Commission, consistent with its five-year schedule, 
proposed to update the comparability ranges (Appendices A-J to Part 
305) and national average energy costs (Appendix K to Part 305) for 
many EnergyGuide labels. The NPRM also contained several minor, 
proposed revisions and updates to the label's content, some suggested 
by commenters as part of the ongoing regulatory review. Finally, the 
Commission proposed to grant a request from the Association of Home 
Appliance Manufacturers (AHAM) for an exemption related to labeling 
requirements for refrigerators, refrigerator-freezers, and freezers 
(hereinafter referred to as ``refrigerators''), and clothes washers to 
address recent DOE test procedures.
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    \5\ See http://www.ftc.gov/opa/2012/12/energylabel.shtm. 78 FR 
1779 (Jan. 9, 2013).
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    In response to the NPRM, the Commission received 10 comments from 
organizations and individuals as well as 2,915 nearly identical letters 
from individual consumers as part of a mass mailing.\6\ As discussed in 
detail below, the comments generally supported the Commission's 
proposals.
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    \6\ See http://ftc.gov/os/comments/energylabelrangers/index.shtm. The organizational comments included: Alliance Laundry 
Systems LLC ( 563707-00002 and  563707-00012), 
Association of Home Appliance Manufacturers (AHAM) (563707-
00003 and 563707-00013), Air-Conditioning, Heating, and 
Refrigeration Institute (AHRI) (563707-00004 and 
563707-00010), joint comments from several energy, 
environmental and consumer organizations (including Alliance to Save 
Energy, Appliance Standards Awareness Project, Consumer Federation 
of America, Consumers Union, Earthjustice, Natural Resources Defense 
Council, Public Citizen, and the Sierra Club) (``Joint Commenters'') 
(563707-00005 and 563707-00011), and the 
California Independently Owned Utilities Codes & Standards Team (CA 
IOU) (563707-00009), VanBrocklin (563707-00008), 
and individual consumer letters (2,915 letters from individual 
consumers) (563707-00006). All the consumer letters, which 
were gathered and submitted by Earthjustice, addressed the issue of 
label categories for refrigerator configurations.
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    The Commission now publishes final amendments on these issues, with 
some minor changes detailed below.\7\ Although the present amendments, 
along with an earlier final rule notice published on January 10, 2013 
(78 FR 2200), address several issues raised during the regulatory 
review, the Commission plans to consider additional issues in a future 
notice.\8\
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    \7\ The amendments also contain several corrections to the 
numbering for the Rule's sample labels (section 305.17 and Appendix 
L), the list of states and capacity references on heating and 
cooling equipment labels in Appendix L, references to heating and 
cooling products in 305.12, and a Web site address in 305.20.
    \8\ 77 FR 15298.
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A. Comparability Range and Energy Cost Revisions

    Background: The NPRM contained proposed revisions to the 
comparability range and energy cost information for many products 
bearing EnergyGuide labels.\9\ In addition, the Commission proposed to 
update the average energy cost (e.g., 12 cents per kWh) manufacturers 
must use to calculate a model's estimated energy cost for the label 
based on updated national

[[Page 43975]]

averages published by DOE.\10\ To effect these changes, the NPRM 
proposed amendments to the applicable tables in the Rule's appendices. 
The Commission proposed to require manufacturers to begin using this 
new information within 90 days after publication of a final notice.
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    \9\ 16 CFR 305.10. In addition to revising existing 
comparability ranges, the Commission proposed to include a new range 
for instantaneous electric water heaters based on data submitted by 
industry.
    \10\ 77 FR 29940 (Apr. 26, 2012) (DOE notice for 
``Representative Average Unit Costs of Energy'').
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    The Commission did not propose to alter range and cost information 
for EnergyGuide labels for four product categories (refrigerators, 
clothes washers, furnaces and central air conditioners, and 
televisions) given upcoming DOE regulatory changes applicable to those 
products.\11\ Instead, it proposed to wait and synchronize changes with 
the impending DOE regulations. By doing so, the Commission sought to 
avoid several label changes in a short time period, which could confuse 
consumers and burden manufacturers.
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    \11\ For refrigerators and clothes washers, as discussed below, 
the Commission will update range and cost information after the 
upcoming implementation of revised DOE standards and test 
procedures, which will significantly change energy use data for 
those products. See infra. Similarly, the Commission has addressed 
range updates for furnace and central air conditioner labels in a 
separate proceeding. 78 FR 8362 (Feb. 6, 2013) (regional standards 
labels). Finally, for televisions, the Commission will issue 
revisions to the television ranges in 16 CFR 305.17 after DOE adopts 
a test procedure. 77 FR 2830 (Jan. 19, 2012) (proposed DOE test 
procedure). The Commission will also establish an annual reporting 
schedule for television manufacturers at that time. Since EPCA 
requires annual reporting based on DOE test procedures and no DOE 
television test procedure currently exists, the Rule currently 
contains no reporting requirements. See 42 U.S.C. 6296(b)(4) (FTC 
annual reporting requirements tied to DOE test procedure); 16 CFR 
305.8 (FTC reporting requirements). In addition, these amendments do 
not affect recently revised labeling requirements for lighting 
products. 75 FR 41696 (July 19, 2010). The Rule has separate 
provisions in section 305.15 for energy cost disclosures on lighting 
products, which are not included in the update schedule for products 
labeled with the EnergyGuide under section 305.11.
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    Comments: Comments (e.g., AHAM, AHRI, and Alliance Laundry Systems) 
generally supported the proposal to update the label ranges. However, 
the Joint Commenters, who argued generally for more frequent range and 
cost updates, criticized the timing of the new range updates, including 
the proposed delay for refrigerator and clothes washer ranges pending 
upcoming DOE standards and test procedure changes. In addition, AHRI 
and AHAM offered several small corrections and suggestions. First, AHRI 
submitted corrected data for the range numbers for its members, fixing 
its inadvertent errors in its earlier submission. AHRI also explained 
that the ranges should not include information for instantaneous 
electric water heaters because no DOE test procedure exists for these 
products and the labeling requirements have never applied to them. In 
addition, AHRI recommended revisions for the gas pool heater ranges to 
reflect a revised minimum efficiency standard (82% thermal efficiency), 
which goes into effect on April 16, 2013. Lastly, AHAM suggested a 180-
day compliance period for the new ranges, instead of the proposed 90-
day period. AHAM reasoned that additional time will facilitate 
compliance and reduce the waste of discarding previously printed 
labels.
    Discussion: The Commission issues the final ranges as proposed, 
using the updated data provided by AHRI and implementing the following 
four, minor changes.\12\ First, the final ranges do not contain numbers 
for instantaneous electric water heaters because these products are not 
currently subject to DOE test procedures. If DOE finalizes testing and 
certification requirements for these products in the future, the 
Commission will consider conforming amendments. Second, the Commission 
amends the ranges for gas pool heaters to reflect DOE standards that go 
into effect on April 16, 2013. Third, the Commission updates the 
average energy costs for certain product labels based on recently 
published DOE 2013 data.\13\ In addition, the amendments maintain the 
proposed 90-day compliance period consistent with the Rule's current 
provision for such changes (16 CFR 305.10). The Commission has 
consistently applied this interval in the past with no apparent, undue 
burden and does not wish to delay the range updates further.
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    \12\ To aid manufacturers in transitioning to the new ranges, 
FTC staff plans to provide sample label template files on its Web 
site. See http://business.ftc.gov/documents/energyguide-labels-template.
    \13\ 78 FR 17648 (Mar. 22, 2013). The relevant DOE 2013 energy 
costs for labeling include 12.01 cents for electricity (rounded to 
12 cents for the purposes of the FTC label); $1.087 per therm for 
natural gas (rounded to $1.09 per therm); $3.80 per gallon for oil; 
and $2.41 per gallon for propane.
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    Finally, the Commission has sought to synchronize the new range and 
cost updates with other ongoing regulatory changes to avoid multiple 
label changes in a short time period. For example, the Commission has 
coupled new ranges for dishwashers, room air conditioners, and water 
heaters in this Notice with several label content changes (discussed in 
section II.B. of this Notice), which required an opportunity for 
comment and thus additional time to promulgate.\14\ In addition, as 
discussed in section III, the Commission plans to issue new ranges for 
refrigerators and clothes washers when the new DOE standards and test 
procedures become effective. The Commission, therefore, is not updating 
ranges for those products because such revised ranges would be short-
lived and based on many models that are likely to become obsolete with 
the arrival of the new DOE standards.\15\
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    \14\ In the past, the Commission has issued routine range 
updates without seeking comments. See, e.g., 70 FR 60716 (Oct. 24, 
2005).
    \15\ 78 FR 8362 (Feb. 6, 2012). The Commission plans to address 
the Joint Commenters' general concerns with the current range and 
cost update schedule in a future notice as part of the overall 
regulatory review.
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B. Proposed Revisions and Updates to Label Content

    In addition to the proposed range and cost updates, the NPRM 
proposed five minor label changes to simplify and improve the 
disclosures. The Commission also sought comment on the possible 
elimination of range information on television labels and increasing 
the frequency of changes to range and cost information on all 
EnergyGuide labels.
1. Label Content Changes
    Background: Consistent with recently implemented FTC labeling 
requirements for light bulb and television labels,\16\ the Commission 
proposed to round the national average electricity (e.g., 12 cents per 
kWh) and natural gas (e.g., $1.09 per therm) rates to the nearest cent 
to calculate the label's estimated annual operating (energy) cost. In 
the past, the Rule has expressed these figures as a fraction of a cent 
(e.g., 11.85 cents per kWh). A cost figure rounded to whole cents 
should be more familiar to consumers and not have any negative impact 
on the label's utility because any differences in cost from such 
rounding will be very small and apply to all models.\17\
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    \16\ 75 FR 41696 (July 19, 2010) (light bulbs); 76 FR 1038 (Jan. 
6, 2011) (televisions).
    \17\ DOE's 2012 national average energy cost data lists 
electricity at 11.84 cents/kWh. 77 FR 24940 (Apr. 26, 2012) (DOE 
fuel cost update). Accordingly, the FTC proposal would require 
manufacturers to use 12 cents/kWh in calculating energy cost for 
affected labels. The 2013 DOE figure is 12.10 cents/kWh. Thus, the 
final rule continues to use the rounded 12 cents/kWh.
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    Second, also consistent with the recent television and light bulb 
labeling requirements, the NPRM proposed to further simplify the 
label's cost disclosure by eliminating reference to the year of the 
underlying energy cost rate (e.g., ``based on a 2007 national average 
electricity cost of 10 cents per kWh'') (section 305.11(f)). Under the

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current rule, this date remains on the label for five years. For 
example, labels for a product introduced in 2011 state that the cost 
figure derives from a 2007 national average. However, because energy 
rates can increase or decrease from year to year, the benefit of 
disclosing this detail on the label does not appear significant. More 
importantly, this disclosure could cause confusion. For instance, the 
``2007'' reference in the example above may incorrectly suggest to some 
consumers that the product itself was produced in 2007. To avoid these 
problems, the Commission proposed to eliminate the reference to the 
year. The label would simply read ``based on a national average 
electricity cost of . . . .''
    Third, based on comments in the ongoing regulatory review for the 
Rule, the Commission proposed to include a new disclosure on room air 
conditioners (section 305.11(f)) explaining that the label's cost 
estimate stems from an assumed 750 hours of operation per year.\18\ 
Similar estimates already appear on other labels (e.g., four loads per 
week for dishwashers and five hours per day for televisions). This 
change should help consumers gauge the product's estimated energy cost 
in the context of their own use.
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    \18\ Joint Comments from Energy-Efficiency and Consumer 
Organizations (May 16, 2012) (560957-00015) available at 
http://www.ftc.gov/os/comments/energylabelamend/00015-83010.pdf.
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    Fourth, the Commission proposed amendments to replace the term 
``operating cost'' with ``energy cost'' (section 305.11(f)). Some 
consumers may understand the term ``operating cost'' to include factors 
such as detergent supplies or the product's depreciation. The inclusion 
of ``energy cost,'' which already appears on the labels for televisions 
and light bulbs, should eliminate such problems. The term also appears 
on new labels for televisions and light bulbs. Finally, the NPRM 
contained a proposed conforming change to the Web site address on the 
label, from www.ftc.gov/appliances to www.ftc.gov/energy.
    Comments: The comments generally supported, or at least did not 
oppose, these changes. For room air conditioners, however, the Joint 
Commenters and CA IOU comments offered language different from that 
proposed in the NPRM. The Joint Commenters argued that the language 
should express usage on a weekly or monthly basis (e.g., ``8 hours of 
use per day for 3 months'') instead of a yearly basis (i.e., ``750 
hours per year''). In their view, the hours-per-year disclosure covers 
``too large an amount and too long a time horizon'' to help consumers 
determine their own costs. They also argued that it is inconsistent 
with usage assumptions on other energy labels that provide weekly or 
daily figures (e.g., four loads per week for dishwashers, eight loads 
per week for clothes washers, five hours per day for televisions, and 
three hours per day for light bulbs). CA IOU further suggested that the 
room air conditioner label communicate usage through a table 
illustrating estimated operating costs at various annual time-periods 
(e.g., 750 hours per year) as well as electricity rates. Finally, AHAM 
noted that, beginning June 1, 2014, DOE will require a new energy 
efficiency metric called ``combined energy efficiency ratio (CEER)'' 
for room air conditioners.\19\ This metric will replace ``energy 
efficiency ratio (EER)'' that currently appears on the label. The CEER 
takes into account energy consumption in standby and off mode. Though 
the new metric will lead to only small changes in annual energy 
estimates for room air conditioners, AHAM recommended that the 
Commission amend the label to replace EER with CEER.
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    \19\ 77 FR 22454 (April 21, 2011).
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    Discussion: The final amendments implement the five label content 
changes as generally proposed. In response to the comments, the 
Commission has modified the proposed room air conditioner disclosure to 
communicate the daily usage hours for room air conditioners during a 
single season rather than the total hours over the course of the year 
(i.e., 750 hours per year). The Commission agrees that this disclosure 
will make it easier for consumers to gauge the model's estimated energy 
cost against their own use of the product. To simplify the disclosure 
and avoid possible confusion, the final language states that the 
estimated annual energy cost is based on ``a seasonal use of 8 hours 
use per day over a 3 month period.'' Contrary to other suggestions, 
however, the Commission has not included a table with multiple cost 
estimates at different usage rates because it would significantly 
complicate the label's message, likely discouraging consumer use.\20\
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    \20\ Finally, the Commission notes AHAM's suggestion to change 
EER to CEER on the room air conditioner label, consistent with 
upcoming DOE changes, and will seek comments on such a modification 
in a future notice.
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2. Television Range Information and Range Updates
    In addition, the Commission sought comment on whether to retain 
range information on television labels \21\ and whether to update range 
and cost information more frequently than every five years. The 
Commission will address these issues in a later notice as part of the 
ongoing regulatory review for this Rule.
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    \21\ 16 CFR 305.17(f).
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C. Proposed Conditional Exemption for Refrigerators and Clothes Washers

    Background: In response to a request from the AHAM,\22\ the 
Commission proposed a conditional exemption and rule amendments for 
refrigerators and clothes washers. New DOE testing procedures for these 
products, issued in conjunction with new efficiency standards, will 
change the methods for calculating a model's energy use and, as a 
result, trigger substantial changes to the energy information disclosed 
on EnergyGuide labels. To aid consumers in their comparison-shopping 
during the transition period, the Commission proposed a distinct label 
for models tested under the new DOE procedures. To ease the burden 
associated with the transition to the new test procedures, the 
Commission also proposed to allow manufacturers to begin labeling new 
models using the new DOE test procedures several months before the DOE 
compliance dates.\23\
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    \22\ AHAM comments (July 17, 2012) ( 560957-00023) at 
http://www.ftc.gov/os/comments/energylabelamend/00023-83190.pdf and 
(Sept. 11, 2012) (560957-00025) at http://www.ftc.gov/os/comments/energylabelamend/560957-00025-84112.pdf.
    \23\ The Commission issued similar modifications in 2003 for 
clothes washer labels in response to changes in the DOE test 
procedure. 68 FR 23584 (May 5, 2003).
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    The DOE regulatory changes necessitating these label revisions 
become effective on September 15, 2014 for refrigerators and March 7, 
2015 for clothes washers.\24\ The new, more stringent conservation 
standards will render a substantial portion of existing refrigerator 
and clothes washer models obsolete, and the updated test procedures 
will yield substantially different results than the current ones. 
According to AHAM, the new refrigerator test procedure will increase 
the measured energy use of refrigerators by approximately 14%, though 
the increase will vary among product classes, manufacturers, and 
individual

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models.\25\ In addition, the new clothes washer test procedure bases 
annual energy use estimates on 295 cycles per year (approximately six 
per week), instead of the current 392 cycles (approximately eight per 
week), thus reducing stated energy costs on the EnergyGuide labels by 
about 25%.\26\
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    \24\ 76 FR 57516 (Sept. 15, 2011) (refrigerator standards); 77 
FR 3559 (Jan. 25, 2012) (refrigerator test procedure); 77 FR 32308 
(May 31, 2012) (clothes washer standards); 77 FR 13888 (Mar. 7, 
2012) (clothes washer test procedure). DOE rules require compliance 
with the new test procedures for all refrigerators by September 15, 
2014 and for all clothes washers by March 7, 2015.
    \25\ AHAM comments (May 16, 2012) (560957-0013) at 
http://www.ftc.gov/os/comments/energylabelamend/00013-83038.pdf.
    \26\ See 77 FR 13888, 13933 (Mar. 7, 2012) (DOE clothes washer 
test procedure). The new DOE test procedure also includes the cost 
of energy consumed in non-active wash modes.
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    After manufacturers begin to test their products using the new 
procedures, showrooms and Web sites will contain some models tested 
under the old procedure and others tested under the new one. This mix 
of EnergyGuide labels could severely hamper product comparisons.
    To help facilitate the transition to the new efficiency standards 
and to aid shoppers who compare products during this period, AHAM 
proposed two measures. First, it sought permission to use the new DOE 
tests for labeling models introduced prior to DOE's compliance dates. 
AHAM sought to begin using the new test procedures and transitional 
labels for models introduced after January 1, 2014 for refrigerators, 
and June 1, 2014 for clothes washers. Second, it recommended different, 
transitional EnergyGuide labels for these models, to help consumers 
distinguish products tested under the new procedure from those tested 
under the old test regime. AHAM asked that the Commission require this 
modified label for products tested under the new procedure until DOE 
makes another substantial change to the test procedure for those 
products.
    In response, the Commission proposed to exempt manufacturers from 
certain EnergyGuide testing and labeling requirements for refrigerator 
and clothes washer models, subject to several conditions. Specifically, 
the Commission proposed to grant a conditional exemption from the 
Rule's requirement that, for purposes of the EnergyGuide label, 
manufacturers use the estimated annual energy consumption derived from 
the test procedures presently required by DOE.\27\ The Commission 
proposed to grant this exception only to the extent necessary to allow 
manufacturers \28\ to use the new test procedures on refrigerator 
(including refrigerators, refrigerator-freezers, and freezers) and 
clothes washer models manufactured after January 1, 2014 (for 
refrigerators) and June 1, 2014 (for clothes washers). The Commission 
also proposed several conditions for the exemption, including the 
version of the DOE test that must be used, label disclosures about 
ranges, electricity rates, usage assumptions, and a special disclosure 
on the label reading: ``Compare to other labels with yellow numbers. 
Appliances that have labels with black numbers were tested differently 
to estimate cost and electricity used.''
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    \27\ 16 CFR 305.5(a) and 305.11(a) (FTC testing and labeling); 
see also 10 CFR Part 430 (DOE test procedures).
    \28\ Consistent with the Rule's requirements, the proposed 
exemption applies to both manufacturers and private labelers.
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    To ensure label consistency following the exemption period, the 
Commission also proposed to require the new labels after the new DOE 
test procedures become effective, by amending sections 305.5(a) and 
305.11 of the Rule. Thus, the new labels would apply to all 
refrigerators and clothes washers distributed on, or after, the new DOE 
test procedure compliance dates (September 15, 2014 for refrigerators 
and March 7, 2015 for clothes washers). The Commission proposed to 
maintain this new label until DOE further amends the test procedures 
for these products. In addition, the Commission stated that it would 
issue new comparability ranges for those products once it receives 
product data reflecting new and existing models tested under the new 
DOE procedures.
    Comments: The comments generally supported the creation of distinct 
labels for refrigerators and clothes washers tested under the new test 
procedure. For example, AHAM explained that, without these proposed 
modifications, consumers will be confused given the significant changes 
resulting from the test procedure modifications. In its view, the 
proposed labels will effectively communicate to consumers that they 
should not compare the old and new labels. No comments opposed the 
proposal.
    In supporting the proposal, AHAM offered two minor recommendations. 
First, it suggested slightly different wording for the new label's 
disclosure: ``Compare only to other labels with yellow numbers. These 
appliances were tested according to new U.S. Government requirements.'' 
\29\ AHAM raised concerns that the proposed phrase, ``tested 
differently,'' is ambiguous and might leave consumers ``wondering how 
and why the appliances were tested differently.'' AHAM argued its 
proposed language will give consumers enough information to understand 
the label without providing too much detail, which could be confusing. 
AHAM also urged the Commission to provide additional information about 
the upcoming transition on the Commission's Web site. Finally, AHAM 
recommended the inclusion of a reference to Appendix B in DOE's 
regulations, which is the revised test procedure for freezers because 
these products are also covered by the exemption.
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    \29\ Alliance Laundry also supported AHAM's proposed language 
modifications.
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    Discussion: The Commission issues the proposed conditional 
exemption and amends the Rule to create a distinct label for 
refrigerators and clothes washers tested under the new DOE procedures. 
The transitional labels will avoid the display of a misleading mix of 
test results on EnergyGuide labels. In addition, the changes will 
reduce burdens by allowing refrigerator and clothes washer 
manufacturers to roll out new high-efficiency models well before the 
DOE compliance date and thus avoid the logistical complications 
associated with designing, producing, and testing many models at the 
same time.\30\ Early compliance will also provide an incentive for 
manufacturers to introduce models that meet the more stringent energy 
standards sooner, thus providing consumers with more high-efficiency 
choices.\31\ The Commission will provide information on its Web site to 
ensure information about the new label is available to consumers. 
Finally, the Commission agrees that AHAM's suggested language is less 
confusing and adopts it with a minor modification. The final language 
reads: ``Compare ONLY to other labels with yellow numbers. Labels with 
yellow numbers are based on the same test procedures.'' The Commission 
has substituted the phrase ``the same test procedures'' for AHAM's 
suggested ``new U.S. Government requirements'' to simplify the message 
and because the word ``new'' may mislead or confuse consumers in the 
future when the

[[Page 43978]]

revised test procedures will no longer be new.
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    \30\ To facilitate the early introduction of these higher-
efficiency models, DOE has announced that manufacturers may certify 
these models with DOE using the new test procedures, thus relieving 
them from having to test new models under both the old and new test 
procedures during the transition period. On June 29, 2012, DOE 
issued guidance permitting early compliance with new or amended test 
procedures and standards. See http://www1.eere.energy.gov/buildings/appliance_standards/pdfs/tp_faq_2012-06-29.pdf. Thus, in DOE's 
view, manufacturers may begin using the new test procedures before 
the dates specified for compliance by DOE.
    \31\ AHAM also requested guidance on whether manufacturers must 
change model numbers for products during the DOE transition period. 
Unless the manufacturer modifies the model in a way that affects its 
energy performance, the Commission does not recommend changing model 
numbers during the transition.
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    The Commission grants manufacturers an exemption allowing them to 
use the results of DOE's new procedures and provide those results on 
EnergyGuide labels several months before the DOE compliance date for 
the new procedures.\32\ The Commission grants this exemption only to 
the extent necessary to allow manufacturers \33\ to use the new test 
procedures on new or existing refrigerator models (including 
refrigerators, refrigerator-freezers, and freezers) manufactured after 
January 1, 2014 and clothes washer models manufactured after June 1, 
2014. If a manufacturer continues to use the current (i.e., older) test 
results for a particular model until the new test procedures become 
mandatory on September 15, 2014 (for refrigerators) and March 7, 2015 
(for clothes washers), the manufacturer must use the current label for 
that model. Manufacturers remain obligated to comply with all other 
Rule requirements. The Commission grants this exemption on the 
following additional conditions:
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    \32\ The Rule directs manufacturers to use the results of 
current DOE test procedures on their labels. 16 CFR 305.5(a) and 
305.11(a) (FTC testing and labeling); see also 10 CFR Part 430 (DOE 
test procedures).
    \33\ Consistent with the Rule's requirements, the proposed 
exemption applies to both manufacturers and private labelers.
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    (1) For models manufacturers choose to test and label under the 
exemption, manufacturers must follow the new DOE test procedures in 10 
CFR Part 430, Subpart B, Appendix A (refrigerators), Appendix B 
(freezers), and Appendix J2 (clothes washers) to determine the energy 
use figures printed on EnergyGuide labels; \34\
---------------------------------------------------------------------------

    \34\ Manufacturers also may use the new test procedures for 
labeling existing products during this period, but must follow all 
conditions of this exemption in doing so.
---------------------------------------------------------------------------

    (2) For all such models, manufacturers must use EnergyGuide labels, 
as illustrated in Sample Labels 1A and 2A in Appendix L, with the 
energy cost and electricity use figures in yellow text framed by block 
boxes and containing the statement ``Compare ONLY to other labels with 
yellow numbers. Labels with yellow numbers are based on the same test 
procedures.''
    (3) For all such models, manufacturers must print the estimated 
energy cost on the label above the center of the comparability range, 
and the following statement must appear directly below the range: 
``Cost Range Not Available,'' as illustrated in Sample Labels 1A and 2A 
of this Notice; \35\
---------------------------------------------------------------------------

    \35\ The Commission will publish range information for the new 
labels once energy data becomes available for refrigerators and 
clothes washers tested under the new procedure, most likely in 2015.
---------------------------------------------------------------------------

    (4) For all such models, the label must state that the estimated 
energy cost is based on a national average electricity cost of 12 cents 
per kWh and, for clothes washers, $1.09 per therm; \36\ and
---------------------------------------------------------------------------

    \36\ New range and cost updates, as well as minor label changes 
discussed in section II.B. (i.e., fuel rates to the nearest cent and 
the use of ``energy cost'' instead of ``operating cost''), are not 
required for refrigerator and clothes washer labels until the new 
DOE test procedure compliance dates (September 15, 2014 for 
refrigerators and March 7, 2015 for clothes washers).
---------------------------------------------------------------------------

    (5) For all such clothes washer models, the label must state that 
the estimated energy cost is based on six wash loads per week and, as 
discussed below, must provide capacity in cubic feet.\37\
---------------------------------------------------------------------------

    \37\ The new DOE test procedure changes the estimated weekly 
clothes washer cycles from eight to six. 77 FR 13888 (DOE clothes 
washer test procedure). Manufacturers must disclose the new usage 
assumption (six cycles per week) on labels for models tested under 
the new procedure.
---------------------------------------------------------------------------

    To ensure consistency following the exemption period, the 
Commission also amends the Rule at sections 305.5(a) and 305.11 to 
require these new labels after the test procedure transition. Thus, the 
new labels apply to all refrigerators and clothes washers manufactured 
on, or after, the DOE new test procedure compliance dates (September 
15, 2014 for refrigerators and March 7, 2015 for clothes washers). 
These new labels, which clearly differentiate the procedures used to 
test each product, will prevent the consumer confusion that would 
result if a single label included information derived from different 
test procedures. The Commission plans to maintain this new label until 
DOE further amends the test procedures. In addition, after the 
Commission receives product data reflecting new and existing models 
tested under the new DOE procedures, it intends to issue new 
comparability ranges for those products.

D. Additional Refrigerator and Clothes Washer Issues

    In its NPRM, the Commission also discussed three issues related to 
refrigerators and clothes washers raised in response to the regulatory 
review notice: (1) Changes to refrigerator range categories; (2) 
disclosures for refrigerator models with optional icemakers; and (3) 
capacity information for clothes washers.
1. Refrigerator Comparability Range Categories
    Background: The current rule organizes refrigerator comparability 
ranges by product configuration (e.g., models with top-mounted 
freezers) in Appendices A1-A8. These categories allow consumers to 
compare the energy use of similarly configured products. The 
requirements designate eight separate range categories for 
refrigerators and three for freezers. Similarly, the current rule 
contains three separate range categories for stand-alone freezer 
configurations in Appendices B1-B3.\38\ These ranges disclose the 
energy costs associated with the most and least efficient models in a 
particular category. Specifically, for automatic-defrost refrigerator 
freezers, which typically populate the bulk of showroom floors, the 
Rule contains five categories (or styles): side-by-side door models 
with and without through-the-door ice service (Appendices A5 and A8); 
top-mounted freezer models with and without through-the-door ice 
service (A4 and A7); and bottom-mounted freezer models (A6). The Rule 
also has ranges for less common models, including those with manual and 
partial defrost models (A1 and A2), and refrigerator-only models 
(A1).\39\
---------------------------------------------------------------------------

    \38\ The Rule further divides each model category into several 
size classes (e.g., 19.5 to 21.4 cubic feet), each with its own 
comparability range.
    \39\ See 16 CFR Part 305, Appendices A and B.
---------------------------------------------------------------------------

    In response to last year's regulatory review notice, several 
energy-efficiency and consumer groups urged the Commission to 
consolidate the comparability ranges into a single range covering all 
configurations.\40\ They reasoned one range would allow consumers to 
compare a product's energy performance against all other models. AHAM 
opposed this approach, arguing that consolidation would cast fully-
featured products that use more energy in an unfavorable light. AHAM 
also pointed to data suggesting that consumers usually replace their 
existing refrigerators with similarly configured models. AHAM 
acknowledged, however, that it had no detailed information directly 
addressing whether consumers shop with a specific configuration in 
mind. It concluded that, without clear data on consumer shopping 
habits, the Commission should refrain from changing the current 
ranges.\41\
---------------------------------------------------------------------------

    \40\ Joint Comments from Energy-Efficiency and Consumer 
Organizations (May 16, 2012) (560957-00015) available at 
http://www.ftc.gov/os/comments/energylabelamend/00015-83010.pdf.
    \41\ AHAM comments (Sept. 11, 2012) ( 560957-00025) 
available at http://www.ftc.gov/os/comments/energylabelamend/560957-00025-84112.pdf.
---------------------------------------------------------------------------

    In the January 9, 2013 NPRM,\42\ the Commission did not propose to 
alter the refrigerator ranges, stating a reluctance to alter existing 
requirements without

[[Page 43979]]

providing further opportunity for comment and in the absence of 
information about consumer buying habits. After DOE's new standards for 
refrigerators become effective in late 2014, the Commission indicated 
it would examine new range data and consider whether to propose changes 
to the range categories.
---------------------------------------------------------------------------

    \42\ 78 FR 1785.
---------------------------------------------------------------------------

    Comments: In response to the January 2013 NPRM, several commenters 
provided views about the organization of refrigerator range categories. 
AHAM maintained that the Commission should not change the current 
requirements without supporting data on consumer shopping habits. In 
contrast, the Joint Commenters urged the Commission to consolidate the 
ranges, citing data from Consumer Reports and AHAM suggesting that 
consumers do not limit their shopping comparisons to similarly-
configured models. The Joint Commenters also submitted the results of 
an email survey to Earthjustice members demonstrating a strong 
preference for the consolidation of the comparison categories. The 
Joint Commenters also submitted more than 2,000 letters from 
Earthjustice members urging the Commission to consolidate these ranges. 
CA IOU also called on the Commission to change the label, but suggested 
the inclusion of two comparison ranges, one to compare similarly 
configured models and another to compare all models, regardless of 
configuration.
    Discussion: The final rule does not change the refrigerator ranges. 
The Commission plans to update the ranges after DOE standards and test 
procedure become effective in 2014. Until that time, there will be no 
range information for the models tested under the new procedure, 
regardless of which category or subcategory apply. Once it receives new 
data, the Commission will examine the new data to determine whether the 
elimination of subcategories makes a practical difference in the 
ranges. In the meantime, the Commission will also consider the 
commenter views and, if appropriate, propose changes to the 
refrigerator range structure in a future notice.
2. ``Icemaker Ready'' Refrigerator-Freezer Models
    Background: Currently, refrigerator labels do not reflect icemaker 
energy consumption because the current DOE test procedure does not 
measure a model's icemaker operation. The new DOE procedures, however, 
will account for icemakers. Therefore, the new labels will include 
icemaker energy consumption.\43\ The new DOE testing rules divide 
relevant products into two categories (i.e., units with pre-installed 
icemakers and units without). Each category will have its own 
EnergyGuide labels reflecting different tests. In light of this change, 
AHAM has raised concerns about so-called ``kitable'' models (i.e., 
models that can be fitted with an icemaker before or after 
purchase).\44\ In earlier comments, AHAM suggested that all ``kitable'' 
refrigerator labels should disclose the energy use of the model shipped 
without the optional icemaker to avoid overstating energy costs for 
models that may never have an icemaker. In addition, AHAM suggested 
additional label language to inform retailers and consumers that the 
addition of an icemaker will increase the model's energy costs.
---------------------------------------------------------------------------

    \43\ 16 CFR 305.5 (FTC testing rules); 10 CFR Part 430, Subpart 
B, Appendix A (DOE refrigerator tests).
    \44\ AHAM comments (May 16, 2012, and October 31, 2012) at 
http://www.ftc.gov/os/comments/energylabelamend/00013-83038.pdf.
---------------------------------------------------------------------------

    In the NPRM, the Commission agreed that AHAM's proposal merited 
consideration, but noted that DOE plans to reexamine the treatment of 
these models under its test procedure, a reexamination that might 
provide guidance that addresses AHAM's concerns.\45\ Accordingly, the 
Commission announced it would not impose additional testing-related 
disclosures for these products until DOE completed its deliberations.
---------------------------------------------------------------------------

    \45\ 77 FR 3559, 3569 (DOE notice on refrigerator testing 
requirements effective Sept. 15, 2014).
---------------------------------------------------------------------------

    Comments: In response to the NPRM, AHAM continued to urge the 
Commission to provide guidance on labeling ``icemaker ready'' models 
given impending DOE test procedure changes impacting these products. 
Clarifying its earlier comments, AHAM explained that manufacturers only 
consider a model ``kitable'' or ``icemaker ready'' if it leaves the 
factory without the icemaker. In addition, once the model leaves the 
manufacturer's control, distributors, retailers, or other entities may 
add an icemaker, which, in some cases, might be made by a third party. 
According to AHAM, manufacturers assign ``kitable'' models with one 
model number.
    AHAM explained that the new 2014 refrigerator-freezer DOE test 
procedure will account for icemaker energy via a uniform ``adder'' of 
84 kWh per year for all models with icemakers.\46\ According to AHAM, 
DOE is considering changes to the test procedure to include specific 
measurements for icemaker energy use, an effort which may lead to 
further changes to the standards in a few years.\47\
---------------------------------------------------------------------------

    \46\ The 2014 testing rules, according to AHAM, also require 
manufacturers to certify icemaker-ready refrigerator-freezers as two 
separate models (i.e., with an icemaker and without an icemaker) 
because a consumer may purchase either version. See 76 FR 57516.
    \47\ AHAM predicted that these future DOE test and standards 
changes will provide an opportunity for FTC to return to the current 
EnergyGuide label design for these products.
---------------------------------------------------------------------------

    Pending further modifications to the DOE test procedure, AHAM asked 
the Commission to provide labeling requirements to address the icemaker 
energy of these products. In particular, AHAM recommended that the 
Commission require a single label on ``kitable'' models disclosing the 
product's energy use without the icemaker. AHAM reasoned that, because 
such models do not include icemakers when they leave the factory, and 
may never receive one, the inclusion of icemaker energy would be 
inaccurate in many cases. To address the possibility that these units 
may later receive an icemaker, AHAM also proposed the following label 
statement: ``With an icemaker, estimated yearly electricity use is 
estimated to increase by 84 kWh/year, which adds $9 to the estimated 
yearly operating cost.'' Such an approach, in AHAM's view, will provide 
an easily applied and enforceable bright line rule. It also provides 
consumers with clear and accurate information about the refrigerator, 
whether it eventually includes an icemaker, or not.
    Discussion: The Commission will consider ways to address icemaker 
energy use after DOE provides additional guidance on this issue or 
changes its testing rules. As indicated in an attachment to its 
comments, AHAM has requested additional guidance from DOE on its 
testing and certification requirements for ``kitable'' models in 
anticipation of the new testing rules scheduled for 2014. Although it 
may be possible for the Commission to impose labeling requirements 
before such guidance is issued, it is reluctant to do so, given the 
evolving understanding of these issues by AHAM, DOE, and the FTC. The 
Commission will continue to monitor guidance from DOE and, if 
necessary, address this issue either through rulemaking or staff 
guidance.\48\
---------------------------------------------------------------------------

    \48\ If DOE does not issue additional information on this issue 
in the near future, the Commission understands that some 
manufacturers may need guidance to label some models manufactured as 
early as January 2014.
---------------------------------------------------------------------------

    At this time, the Commission agrees with AHAM that a generic label 
statement disclosing icemaker energy costs for ``kitable'' models may 
be appropriate. However, the Commission

[[Page 43980]]

does not necessarily agree that the label's primary disclosure (i.e., 
estimated yearly energy cost) should exclude icemaker energy, as AHAM 
recommends. This exclusion could underestimate energy cost for many 
consumers, particularly if many units will eventually include an 
icemaker. Therefore, absent data demonstrating that most units never 
include an icemaker, the better approach arguably may be to include 
icemaker energy in the primary disclosure and explain elsewhere on the 
label that an icemaker-free unit will reduce the unit's energy cost.
3. Clothes Washer Capacity
    Background: Last year, the Commission proposed to require specific 
capacity information in cubic feet on EnergyGuide labels for clothes 
washers.\49\ AHAM opposed the proposal, citing potential burdens to 
manufacturers in specifying capacity for each individual model. In the 
NPRM, the Commission sought additional comments, but also noted that 
DOE data for clothes washers suggests that the proposed change would 
only require new labels for a small fraction of models.\50\
---------------------------------------------------------------------------

    \49\ 77 FR 15302 (proposing to amend 16 CFR 305.7(g) to include 
clothes washer capacity on the label).
    \50\ See DOE clothes washer data at https://www.regulations.doe.gov/ccms/.
---------------------------------------------------------------------------

    Current EnergyGuide labels indicate whether the model is 
``standard'' or ``compact,'' but do not specify volume (e.g., 3.5 cubic 
feet). In the current market, most models fall into the broad 
``standard'' size class (i.e., models with tub capacities greater than 
1.6 cubic feet), but actual capacity varies significantly. Thus, the 
general capacity disclosure provides little assistance to consumers in 
distinguishing washer size. A specific capacity disclosure should help 
consumers make product comparisons, and complement recent DOE and 
industry efforts to ensure uniformity in capacity disclosures.\51\
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    \51\ See 75 FR 57556, 57575 (Sept. 21, 2010) (DOE clothes washer 
notice) and http://www.aham.org/ht/a/GetDocumentAction/i/51727.
---------------------------------------------------------------------------

    Comments: In response to the NPRM, AHAM continued to oppose the 
inclusion of specific capacity information on EnergyGuide labels for 
clothes washer labels, including those subject to the proposed 
conditional exemption.\52\ AHAM argued that the Commission has failed 
to point to any data showing that consumers find existing capacity 
information insufficient. It also noted that capacity information is 
available from other sources.\53\ Accordingly, AHAM argued that the 
Commission should not add this new requirement.
---------------------------------------------------------------------------

    \52\ AHAM objected to the original proposal, arguing that it 
will greatly increase the number of labels manufacturers have to 
produce because some manufacturers use a single label for multiple, 
differently-sized models that have the same energy use rating. In 
the NPRM, the Commission noted that, based on existing DOE data for 
clothes washer models, the number of these models would likely be 
small. See 78 FR 1784-85.
    \53\ AHAM noted that, although FTC and DOE regulations used the 
term ``capacity,'' ``volume'' provides a better description of the 
washer drum's cubic foot measurement. The term ``capacity,'' as AHAM 
typically uses it, refers to the quantity of clothes that can be 
effectively washed and rinsed in a single load.
---------------------------------------------------------------------------

    Other commenters disagreed. One industry member, Alliance Laundry 
Systems, supported the inclusion of specific capacity information 
explaining the disclosure is consistent with DOE requirements, and 
avoids possible confusion by retailers or consumers.\54\ Similarly, the 
Joint Commenters continued to support the FTC's proposal to require 
specific capacity rather than just ``standard'' or ``compact,'' noting 
that capacity may be helpful to consumers comparing the operating costs 
of different models because capacity is directly proportional to 
estimated annual operating costs.\55\
---------------------------------------------------------------------------

    \54\ Alliance also noted that its own cost for including this 
information on labels is ``minimal to non-existent.'' However, 
Alliance noted that some manufacturers may need to create unique 
labels for models that had been grouped together in the past for 
labeling purposes.
    \55\ In earlier comments, PG&E supported the specific capacity 
disclosure proposed in the regulatory review notice, suggesting it 
might ``prompt consumers to think more critically about the utility 
of different sized washers, and also [their] associated energy and 
water requirements.'' Pacific Gas and Electric Company (PG&E) 
comments (May 15, 2012) (00009) at http://www.ftc.gov/os/comments/energylabelamend/00009-82974.pdf.
---------------------------------------------------------------------------

    Discussion: The final rule requires the inclusion of capacity on 
clothes washer labels. In response to AHAM's comment, the final 
amendments use the term ``tub volume'' in addition to ``capacity.'' 
\56\ This disclosure must appear on units labeled under the conditional 
exemption in 2014 and on all clothes washer labels for units 
manufactured on or after March 7, 2015. Specific capacity (i.e., 
volume) information, which also appears on EnergyGuide labels for 
several other product types, will allow consumers to easily to compare 
the size and energy cost of competing models. Industry members have 
used different methods for capacity disclosures in the past.\57\ A 
consistent disclosure based on a consistent DOE-mandated procedure will 
help avoid such problems in the future and thus will benefit consumers. 
In addition, because manufacturers already generate volume information 
from the DOE test procedure, the disclosure should impose little burden 
when manufacturers update the clothes washer labels. Accordingly, these 
considerations provide a reasonable basis to conclude that capacity 
information on the clothes washer labels is appropriate for the 
EnergyGuide label.
---------------------------------------------------------------------------

    \56\ The final label also clarifies that the terms ``standard'' 
and ``compact'' refer to the product's capacity class, not its 
specific capacity (e.g., 2.8 cubic feet).
    \57\ See 75 FR 15298, 15302 (Mar. 15, 2012) (discussing industry 
efforts to harmonize capacity disclosures).
---------------------------------------------------------------------------

IV. Paperwork Reduction Act

    The current Rule contains recordkeeping, disclosure, testing, and 
reporting requirements that constitute information collection 
requirements as defined by 5 CFR 1320.3(c), the definitional provision 
within the Office of Management and Budget (OMB) regulations that 
implement the Paperwork Reduction Act (PRA). OMB has approved the 
Rule's existing information collection requirements through February 
29, 2016 (OMB Control No. 3084 0069). The amendments do not change the 
substance or frequency of the recordkeeping, disclosure, or reporting 
requirements and, therefore, do not require further OMB clearance.

V. Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
Regulatory Flexibility Act analysis (5 U.S.C. 603-604) are not 
applicable to this proceeding because the amendments do not impose any 
new obligations on entities regulated by the Energy Labeling Rule. As 
explained in detail elsewhere in this document, the proposed exemption 
and amendments do not significantly change the substance or frequency 
of the recordkeeping, disclosure, or reporting requirements. Thus, the 
amendments will not have a ``significant economic impact on a 
substantial number of small entities.'' 5 U.S.C. 605. The Commission 
has concluded, therefore, that a regulatory flexibility analysis is not 
necessary, and certifies, under Section 605 of the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), that the amendments announced today 
will not have a significant economic impact on a substantial number of 
small entities.

Rule Language

List of Subjects in 16 CFR Part 305

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


[[Page 43981]]


    For the reasons set out above, the Commission amends 16 CFR Part 
305 as follows:

PART 305--ENERGY AND WATER USE LABELING FOR CONSUMER PRODUCTS UNDER 
THE ENERGY POLICY AND CONSERVATION ACT (ENERGY LABELING RULE)

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

    Authority: 42 U.S.C. 6294.


0
2. In Sec.  305.7, revise paragraph (g) to read as follows:


Sec.  305.7  Determinations of capacity.

* * * * *
    (g) Clothes washers. The capacity shall be the tub capacity as 
determined according to Department of Energy test procedures in 10 CFR 
Part 430, subpart B, in the terms ``standard'' or ``compact'' as 
defined in appendix J1 to 10 CFR Part 430. For models manufactured 
after March 7, 2015, the capacity shall be the tub capacity as 
determined according to Department of Energy test procedures in 10 CFR 
Part 430, subpart B, expressed in terms of ``Capacity (tub volume)'' in 
cubic feet, rounded to the nearest one-tenth of a cubic foot, and the 
capacity class designations ``standard'' or ``compact.''
* * * * *


0
3. In Sec.  305.10, revise paragraphs (a) and (b) to read as follows:


Sec.  305.10  Ranges of comparability on the required labels.

    (a) Range of estimated annual energy costs or energy efficiency 
ratings. The range of estimated annual operating costs or energy 
efficiency ratings for each covered product (except fluorescent lamp 
ballasts, metal halide lamp fixtures, lamps, showerheads, faucets, 
water closets, urinals, ceiling fans, or televisions) 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 in the Federal Register in 2017. 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 figures to be used on labels as required by 
Sec.  305.11 are listed in appendix K to this part, except the 
electricity and gas cost to be used on labels for refrigerators, 
refrigerator-freezers, and freezers distributed before September 15, 
2014, and labels for clothes washers distributed before March 7, 2015, 
shall be 10.65 cents per kWh and 1.218 dollars per therm. The 
Commission shall publish revised Representative Average Unit Energy 
Cost figures in the Federal Register in 2017. 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.
* * * * *
0
4. In Sec.  305.11, revise paragraphs (f)(5) through (9) and 
redesignate paragraphs (f)(11) and (12) as paragraphs (f)(10) and (11) 
respectively.
    The revisions read as follows:


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

* * * * *
    (f) * * *
    (5) Unless otherwise indicated in this paragraph, 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. Sec.  305.5 and 305.10 of 
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. For 
refrigerators, refrigerator freezers, and freezers manufactured before 
September 15, 2014, and clothes washers manufactured before March 7, 
2015, annual operating costs shall be determined using the energy cost 
figures of 10.65 cents for electricity and $1.218 for natural gas.
    (6) Unless otherwise indicated in this paragraph, ranges of 
comparability for estimated annual operating costs or thermal 
efficiencies, as applicable, are found in the appropriate appendices 
accompanying this part. For refrigerators, refrigerator-freezers, and 
freezers manufactured on or after September 15, 2014, and clothes 
washers manufactured on or after March 7, 2015, the range information 
shall match the text and graphics in sample labels 1A and 2A of 
Appendix L.
    (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 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)(iii)].
    Estimated energy cost is based on a national average electricity 
cost of ---- cents per kWh.
    For more information, visit www.ftc.gov/energy.
    (ii) For refrigerators, refrigerator-freezers, and freezers 
manufactured on or after September 15, 2014 and clothes washers 
manufactured after March 7, 2015, the label shall contain the text and 
graphics illustrated in sample labels 1A and 2A of Appendix L, 
including the statement:
    Compare ONLY to other labels with yellow numbers.
    Labels with yellow numbers are based on the same test procedures.
    (iii) For refrigerators, refrigerator-freezers, and freezers, the 
following sentence shall be included as part of the statement required 
by Sec.  305.11(f)(9)(i):
    (A) For models covered under appendix A1, the sentence shall read:
    Cost range based only on 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.

[[Page 43982]]

    (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.
    (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.
    (iv) For room air conditioners covered under appendix E, 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 annual energy cost is based on a national average 
electricity cost of ---- cents per kWh and a seasonal use of 8 hours 
use per day over a 3 month period.
    For more information, visit www.ftc.gov/energy.
    (v) 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 energy cost is based on a 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/energy.
    (vi) For instantaneous 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 energy cost is 
based on a national average [electricity, natural gas, or propane] cost 
of [---- cents per kWh or $---- per therm or gallon].
    For more information, visit www.ftc.gov/energy.
    (vii) For dishwashers covered by appendices C1 and C2, the 
statement will read as follows (fill in the blanks with the appropriate 
appliance type, the energy 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 energy cost is based on 4 washloads a week, and a 
national average electricity cost of ---- cents per kWh and natural gas 
cost of $---- per therm.
    For more information, visit www.ftc.gov/energy.
    (viii) For clothes washers manufactured before March 7, 2015 
covered by appendices F1 and F2, the statement will read as follows 
(fill in the blanks with the appropriate appliance type, the energy 
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 energy cost is based on 8 washloads a week and a national 
average electricity cost of ---- cents per kWh and natural gas cost of 
$---- per therm.
    For more information, visit www.ftc.gov/energy.
    (ix) For clothes washers manufactured after March 7, 2015, the 
label shall contain the text and graphics illustrated in sample labels 
1A and 2A of Appendix L, including the statement:
    Compare ONLY to other labels with yellow numbers.
    Labels with yellow numbers are based on the same test procedures.
    (x) For pool heaters covered under appendices J1 and J2, 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/energy.
* * * * *

0
5. In Sec.  305.12, revise paragraphs (i)(11)(iii), (i)(12)(iii), and 
(i)(13) to read as follows:


Sec.  305.12  Labeling for central air conditioners, heat pumps, and 
furnaces.

* * * * *
    (i) * * *
    (11) * * *
    (iii) For single-package air conditioners, a statement that reads:
    Energy Efficiency Ratio (EER): This model's EER is [ ----].
    (12) * * *
    (iii) For split-system air conditioner systems, a statement that 
reads:
    Energy Efficiency Ratio (EER): could range from [----] to [----], 
depending on the coil installed with this unit.
    (13) For any single-package air conditioner with an EER below 11.0, 
the label must contain the following regional standards information 
consistent with sample label 7B in appendix L to this part:
    (i) A statement that reads:
    Notice Federal law allows this unit to be installed only in: AK, 
AL, AR, CO, CT, DC, DE, FL, GA, HI, ID, IL, IA, IN, KS, KY, LA, MA, ME, 
MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NY, OH, OK, OR, PA, RI, SC, 
SD, TN, TX, UT, VA, VT, WA, WV, WI, WY and U.S. territories.
    Federal law prohibits installation of this unit in other states.
    (ii) A map and accompanying text as illustrated in the sample label 
in appendix L.
    (iii) A statement that reads:
    Energy Efficiency Ratio (EER): This model's EER is [----].
* * * * *

0
6. In Sec.  305.17, revise paragraphs (a), (b), (f)(6), and (f)(8)(ii) 
to read as follows:


Sec.  305.17  Television labeling.

    (a) Layout. All energy labels for televisions shall use one of 
three shapes: a vertical rectangle, a horizontal rectangle, and a 
triangle as detailed in Prototype Labels in appendix L. All label size, 
positioning, spacing, type sizes, positioning of headline, copy, and 
line widths must be consistent with the prototype and sample labels in 
appendix L. The minimum label size for the vertical rectangle label is 
1.5''x5.5''. The minimum size for the horizontal rectangle label is 
1.5''x5.23''. The minimum size for the triangle label is 4.5''x4.5'' 
(right angle sides).
    (b) Type style and setting. The Arial series typeface or equivalent 
shall be

[[Page 43983]]

used exclusively on the label. Prototype Labels in appendix L contain 
specific directions for type style and setting and indicate the 
specific sizes, leading, faces, positioning, and spacing to be used. No 
hyphenations should be used in setting headline or copy text.
* * * * *
    (f) * * *
    (6) Placement of the labeled product on the scale proportionate to 
the lowest and highest estimated annual energy costs as illustrated in 
Prototype and Sample Labels in appendix L. When the estimated annual 
energy cost of a given television model falls outside the limits of the 
current range for that product, the manufacturer shall place the 
product at the end of the range closest to the model's energy cost.
* * * * *
    (8) * * *
    (ii) The manufacturer may include the ENERGY STAR logo on the label 
as illustrated in Sample Labels in appendix L. The logo must be 0.375'' 
wide. Only manufacturers that have signed a Memorandum of Understanding 
with the Department of Energy or the Environmental Protection Agency 
covering the televisions to be labeled may add the ENERGY STAR logo to 
those labels.
* * * * *


Sec.  305.20  [Amended]

0
7. Amend Sec.  305.20 as follows:
    A. In paragraph (a)(5), remove the phrase ``For more information, 
visit www.ftc.gov/energy.'' and add in its place ``For more 
information, visit productinfo.energy.gov.''
    B. In paragraph (g)(1), remove the phrase ``Sample Icon 13'' and 
add in its place ``the sample icon''.

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

Appendix C1 to Part 305--Compact Dishwashers

Range Information

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

 
------------------------------------------------------------------------
                                               Range of estimated annual
                                                energy costs  (dollars/
                  Capacity                               year)
                                             ---------------------------
                                                   Low          High
------------------------------------------------------------------------
Compact.....................................          $18           $27
------------------------------------------------------------------------


0
9. 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 eight 
(8) or more place settings. Place settings shall be in accordance with 
appendix C to 10 CFR part 430, subpart B. Load patterns shall conform 
to the operating normal for the model being tested.

------------------------------------------------------------------------
                                               Range of estimated annual
                                                energy costs  (dollars/
                  Capacity                               year)
                                             ---------------------------
                                                   Low          High
------------------------------------------------------------------------
Standard....................................          $21           $41
------------------------------------------------------------------------


0
10. 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 energy 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....................................................         $253         $271         $628         $673
56 to 64....................................................          257          271          637          670
65 to 74....................................................          228          275          565          696
75 to 86....................................................          228          275          565          682
87 to 99....................................................          228          275          565          746
100 to 114..................................................          228          302          565          746
115 to 131..................................................          228          332          590          824
Over 131....................................................          235          332          582          824
----------------------------------------------------------------------------------------------------------------
* No data submitted.


[[Page 43984]]

Appendix D2 to Part 305--Water Heaters--Electric

                            Range Information
------------------------------------------------------------------------
                   Capacity                        Range of estimated
----------------------------------------------- annual energy  (dollars/
                                                          year)
               First hour rating               -------------------------
                                                    Low          High
------------------------------------------------------------------------
Less than 21..................................         $567         $567
21 to 24......................................            *            *
25 to 29......................................          567          567
30 to 34......................................          567          573
35 to 40......................................          560          573
41 to 47......................................          554          599
48 to 55......................................          554          599
56 to 64......................................          554          586
65 to 74......................................          554          599
75 to 86......................................          554          613
87 to 99......................................          567          620
100 to 114....................................          579          651
115 to 131....................................          613          635
Over 131......................................            *            *
------------------------------------------------------------------------
* No data submitted.

Appendix D3 to Part 305--Water Heaters--Oil

                            Range Information
------------------------------------------------------------------------
                   Capacity                        Range of estimated
-----------------------------------------------    annual energy costs
                                                     (dollars/year)
               First hour rating               -------------------------
                                                    Low          High
------------------------------------------------------------------------
Less than 65..................................            *            *
65 to 74......................................            *            *
75 to 86......................................            *            *
87 to 99......................................            *            *
100 to 114....................................         $684         $760
115 to 131....................................          760          804
Over 131......................................          604          746
------------------------------------------------------------------------
* No data submitted.

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

                                                Range Information
----------------------------------------------------------------------------------------------------------------
                          Capacity                             Range of estimated annual energy costs  (dollars/
-------------------------------------------------------------                        year)
                                                             ---------------------------------------------------
                                                                Natural Gas ($/year)        Propane ($/year)
   Capacity (maximum flow rate); gallons per minute (gpm)    ---------------------------------------------------
                                                                  Low          High         Low          High
----------------------------------------------------------------------------------------------------------------
Under 1.00..................................................            *            *            *            *
1.00 to 2.00................................................            *            *            *            *
2.01 to 3.00................................................         $192         $237         $465         $574
Over 3.00...................................................          170          204          408          494
----------------------------------------------------------------------------------------------------------------
* No data submitted.

Appendix D5 to Part 305--Water Heaters--Heat Pump

                            Range Information
------------------------------------------------------------------------
                   Capacity                        Range of estimated
-----------------------------------------------    annual energy 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......................................         $268         $268
48 to 55......................................            *            *
56 to 64......................................          224          275
65 to 74......................................          220          264
75 to 86......................................          226          226
87 to 99......................................            *            *
100 to 114....................................            *            *
115 to 131....................................            *            *
Over 131......................................            *            *
------------------------------------------------------------------------
* No data submitted.

0
11. 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 energy costs
Manufacturer's rated cooling capacity in Btu's/      (dollars/year)
                      hr                       -------------------------
                                                    Low          High
------------------------------------------------------------------------
Without Reverse Cycle and with Louvered Sides:
    Less than 6,000 Btu.......................          $42          $48
    6,000 to 7,999 Btu........................           50           72
    8,000 to 13,999 Btu.......................           66          115
    14,000 to 19,999 Btu......................          117          195
    20,000 and more Btu.......................          169          382
Without Reverse Cycle and without Louvered
 Sides:
    Less than 6,000 Btu.......................            *            *
    6,000 to 7,999 Btu........................           56           72
    8,000 to 13,999 Btu.......................           73          138
    14,000 to 19,999 Btu......................          140          166
    20,000 and more Btu.......................            *            *
With Reverse Cycle and with Louvered Sides....           71          225
With Reverse Cycle, without Louvered Sides....           89          126
------------------------------------------------------------------------
* No data submitted.


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

Appendix J1 to Part 305--Pool Heaters--Gas

[[Page 43985]]



                                                Range Information
----------------------------------------------------------------------------------------------------------------
                                                                Range of thermal efficiencies (percent)
                                                  -------------------------------------------------------------------
      Manufacturer's rated heating capacity                Natural gas                        Propane
                                                  -------------------------------------------------------------------
                                                        Low          High           Low          High      Low
--------------------------------------------------------------------------------------------------------- -----------
All capacities...................................         82.0          95.0          82.0          95.0
----------------------------------------------------------------------------------------------------------------

Appendix J2 to Part 305--Pool Heaters--Oil

                            Range Information
------------------------------------------------------------------------
                                          Range of thermal efficiencies
                                                    (percent)
 Manufacturer's rated heating capacity ---------------------------------
                                              Low              High
------------------------------------------------------------------------
All capacities........................  *..............  *
------------------------------------------------------------------------
* No data submitted.

0
13. 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 energy 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 2013. Unless 
otherwise indicated by the Commission, this table will be revised in 
2017.

                  Unit Costs of Energy for Use on EnergyGuide Labels Required by Section 305.11
----------------------------------------------------------------------------------------------------------------
                                              In commonly used terms                                 Dollars per
              Type of energy                  (used for EnergyGuide       As required by DOE test    million Btu
                                                      label)                     procedure               \1\
----------------------------------------------------------------------------------------------------------------
Electricity..............................  12.00[cent]/kWh 2, 3.......  $.12/kWh...................       $35.46
Natural Gas..............................  $1.09/therm \4\............  0.0000109/Btu..............        10.87
                                           $11.12/MCF 5, 6............
No. 2 heating oil........................  $3.80/gallon \7\...........  0.00002740/Btu.............        27.40
Propane..................................  $2.41/gallon \8\...........  0.00002639/Btu.............        26.39
Kerosene.................................  $4.21/gallon \9\...........  0.00003119/Btu.............        31.19
----------------------------------------------------------------------------------------------------------------
\1\ Btu stands for British thermal unit.
\2\ kWh stands for kiloWatt hour.
\3\ 1 kWh = 3,412 Btu.
\4\ 1 therm = 100,000 Btu. Natural gas prices include taxes.
\5\ MCF stands for 1,000 cubic feet.
\6\ For the purposes of this table, 1 cubic foot of natural gas has an energy equivalence of 1,023 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
14. In Appendix L, revise Prototype Labels 1, 2, and 3, and revise all 
Sample Labels to read as follows:
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    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2013-17553 Filed 7-22-13; 8:45 am]
BILLING CODE 6750-01-C