[Federal Register Volume 86, Number 200 (Wednesday, October 20, 2021)]
[Rules and Regulations]
[Pages 57985-57991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22869]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 86, No. 200 / Wednesday, October 20, 2021 / 
Rules and Regulations  

[[Page 57985]]



FEDERAL TRADE COMMISSION

16 CFR Part 305

[3084-AB15]


Energy Labeling Rule

AGENCY: Federal Trade Commission.

ACTION: Final rule.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
issues amendments to update the comparability ranges and sample labels 
for central air conditioners in the Energy Labeling Rule (``Rule'').

DATES: The amendments are effective on January 1, 2023.

ADDRESSES: Copies of this document are available on the Commission's 
website, www.ftc.gov.

FOR FURTHER INFORMATION CONTACT: Hampton Newsome (202-326-2889), 
Attorney, Division of Enforcement, Bureau of Consumer Protection, 
Federal Trade Commission, Room CC-9528, 600 Pennsylvania Avenue NW, 
Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

I. Energy Labeling Rule

    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 the 
energy usage and costs of competing models. It also contains labeling 
requirements for refrigerators, refrigerator-freezers, freezers, 
dishwashers, water heaters, clothes washers, room and portable air 
conditioners, furnaces, central air conditioners, heat pumps, plumbing 
products, lighting products, ceiling fans, and televisions.
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    \1\ 44 FR 66466 (Nov. 19, 1979).
    \2\ 42 U.S.C. 6294. EPCA also requires the Department of Energy 
(``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.
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    The Rule requires manufacturers to attach yellow EnergyGuide labels 
to many of the covered products and prohibits retailers from removing 
these labels or rendering them illegible. In addition, it directs 
sellers, including retailers, to post label information on websites and 
in paper catalogs from which consumers can order products. EnergyGuide 
labels for most covered products contain three main disclosures: 
Estimated annual energy cost, a product's energy consumption or energy 
efficiency rating as determined by Department of Energy (``DOE'') test 
procedures, and a comparability range displaying the highest and lowest 
energy costs or efficiency ratings for all similar models. Under the 
Rule, the Commission periodically updates comparability range and 
annual energy cost information based on manufacturer data submitted 
pursuant to the Rule's reporting requirements.\3\
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    \3\ 16 CFR 305.10.
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II. Updated Ranges for Central Air Conditioners

    On February 12, 2021 (86 FR 9273), the Commission published 
conforming rule amendments reflecting new DOE efficiency descriptors on 
central air conditioner labels to ensure the Rule's consistency with 
DOE requirements, which become effective on January 1, 2023.\4\ In the 
February document, the Commission stated it would update ranges in 
appendices H and I, and the sample labels in appendix L, once new 
efficiency numbers became available.
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    \4\ In 2017, DOE announced changes to the rating methods and 
associated efficiency descriptors for central air conditioners 
(e.g., from ``Seasonal Energy Efficiency Ratio (SEER)'' to 
``Seasonal Energy Efficiency Ratio 2 (SEER2)''). 82 FR 1786 (Jan. 6, 
2017); and 82 FR 24211 (May 26, 2017).
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    On June 2, 2021 (86 FR 29533), the Commission proposed to update 
the comparability ranges for central air conditioners to ensure 
manufacturers have information available for the upcoming transition to 
new efficiency descriptors required by DOE.\5\ In the June 2021 
document, the Commission proposed to update the range table data 
(appendices H and I) and sample labels in the Rule (appendix L) using 
new information from the Air-Conditioning, Heating, & Refrigeration 
Institute (``AHRI'') and DOE staff input.\6\ In response to the June 
document, the Commission received 31 comments. Commenters were 
generally supportive of the proposed updates, and none opposed the 
proposed ranges.\7\ Commenters also made various suggestions for 
EnergyGuide labeling improvements and Rule changes (e.g., the use of QR 
codes) not directly relevant to the range updates set out in the June 
document.\8\ The Commission may consider these suggestions, which would 
require further consideration and additional public comment, in 
connection with future regulatory reviews.
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    \5\ Commissioner Christine S. Wilson issued a dissent stating 
that the Commission should also seek further comment on broader 
issues including the ``more prescriptive aspects of this Rule'' and 
other changes to ``maximize the positive impact of this Rule for 
consumers.''
    \6\ AHRI is a trade association representing central air 
conditioner manufacturers.
    \7\ The comments are posted at regulations.gov.
    \8\ Two industry commenters (AHRI (#0030-0031) and Goodman 
(#0030-0032)) urged the Commission to issue the range updates 
``expeditiously'' so that manufacturers ``have certainty on the 
revised EnergyGuide labels and adequate time to implement the 
labels.'' These two commenters also urged the Commission to postpone 
considering other potential Rule changes discussed in Commissioner 
Wilson's dissenting statement.
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    Based on this record, the Commission is finalizing the range 
amendments in this document.\9\ Consistent with the February 2021 
amendments to the new energy descriptors, the effective date for these 
ranges is January 1, 2023. As the Commission stated in the February 
2021 document, manufacturers may begin using the new range information 
prior to that date, in a manner consistent with DOE guidance now that 
the FTC has issued the final updates to appendices H and I once the FTC 
issues the final updates to appendices H and I.
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    \9\ The final amendments contain a few minor corrections to the 
sample labels in the June document (the top range number on 
Prototype Label 3; inclusion of asterisks and updated geographic 
information on Sample Label 3, and the removal of optional capacity 
numbers on labels).
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III. 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

[[Page 57986]]

information collection requirements through December 31, 2022 (OMB 
Control No. 3084-0069). The amendments do not change the substance or 
frequency of the Rule's recordkeeping, disclosure, or reporting 
requirements and, therefore, do not require further OMB clearance.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612, 
requires that the Commission conduct an analysis of the anticipated 
economic impact of the proposed amendment on small entities. The RFA 
requires that the Commission provide an Initial Regulatory Flexibility 
Analysis (``IRFA'') with a rule unless the Commission certifies that 
the rule will not have a significant economic impact on a substantial 
number of small entities. 5 U.S.C. 605. The amendments merely update 
the Rule's appendices to include revised comparability ranges and 
sample labels for central air conditioners based on more recent data. 
The proposed 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 RFA (5 U.S.C. 
605(b)), that the amendments will not have a significant economic 
impact on a substantial number of small entities.

V. Other Matters

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).

List of Subjects in 16 CFR Part 305

    Advertising, Consumer protection, Energy conservation, Household 
appliances, Incorporation by reference, Labeling, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, the Commission amends 
part 305 of title 16 of the Code of Federal Regulations 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. Revise appendix H to part 305 to read as follows:

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

------------------------------------------------------------------------
                                                 Range of SEER2's
  Manufacturer's rated cooling capacity  -------------------------------
               (btu's/hr)                       Low            High
------------------------------------------------------------------------
                          Single Package Units
------------------------------------------------------------------------
Central Air Conditioners (Cooling Only):            13.4              19
 All capacities.........................
Heat Pumps (Cooling Function): All                  13.4              19
 capacities.............................
------------------------------------------------------------------------
                           Split System Units
------------------------------------------------------------------------
Central Air Conditioner models allowed              13.4              27
 only in northern states (listed in Sec.
   305.20(g)(13)) (Cooling Only): All
 capacities.............................
Central Air Conditioner models allowed
 in all states (Cooling Only):
    All capacities......................            13.8              27
    Heat Pumps (Cooling Function): All              14.3              42
     capacities.........................
Small-duct, high-velocity Systems.......              12              15
------------------------------------------------------------------------
                       Space-Constrained Products
------------------------------------------------------------------------
Central Air Conditioners (Cooling Only):            11.7            13.7
 All capacities.........................
Heat Pumps (Cooling Function): All                  11.9            13.8
 capacities.............................
------------------------------------------------------------------------


0
 3. Revise appendix I to part 305 to read as follows:

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

------------------------------------------------------------------------
                                                 Range of HSPF2's
  Manufacturer's rated heating capacity  -------------------------------
               (btu's/hr)                       Low            High
------------------------------------------------------------------------
                          Single Package Units
------------------------------------------------------------------------
Heat Pumps (Heating Function): All                   6.7             8.4
 capacities.............................
------------------------------------------------------------------------
                           Split System Units
------------------------------------------------------------------------
Heat Pumps (Heating Function): All                   7.5            14.6
 capacities.............................
Small-duct, high-velocity Systems.......             6.1             7.5
------------------------------------------------------------------------
                       Space-Constrained Products
------------------------------------------------------------------------
Heat Pumps (Heating Function): All                   6.3             6.5
 capacities.............................
------------------------------------------------------------------------


[[Page 57987]]


0
4. Amend appendix L to part 305 by revising Prototype Label 3, 
Prototype Label 4, Sample Label 7, and Sample Label 8 to read as 
follows:

Appendix L to Part 305--Sample Labels

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BILLING CODE 6750-01-P
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    By direction of the Commission, Commissioner Wilson dissenting.
April J. Tabor,
Secretary.

    Note:  The following will not appear in the Code of Federal 
Regulations.

Dissenting Statement of Commissioner Christine S. Wilson

    Today the Commission announces required changes to the Energy 
Labeling Rule but makes no other changes to the Rule. Since 2015, the 
Commission has sought comment on provisions of this Rule multiple times 
and has made numerous amendments clarifying the Rule's requirements and 
making necessary changes. I have repeatedly urged the Commission to 
seek comment on the more prescriptive aspects of this Rule. I have 
explained my concerns about the highly prescriptive nature of this Rule 
in detail in my prior dissents. Regrettably, again today, the 
Commission chooses to make minor

[[Page 57991]]

changes to the Rule necessary for conformity but fails to conduct a 
full review of the Rule to consider removing all dated and prescriptive 
provisions. For these reasons, I dissent.

[FR Doc. 2021-22869 Filed 10-19-21; 8:45 am]
BILLING CODE 6750-01-C