[Federal Register Volume 88, Number 232 (Tuesday, December 5, 2023)]
[Notices]
[Pages 84330-84333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26602]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995
(``PRA''), the Federal Trade Commission (``FTC'' or ``Commission'') is
seeking public comment on its proposal to extend for an additional
three years the clearance from the Office of Management and Budget
(``OMB'') for information collection requirements in the Energy
Labeling Rule (``Rule''). That clearance expires on February 29, 2024.
DATES: Comments must be filed by February 5, 2024.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Energy Labeling Rule,
PRA Comment, P145403,'' on your comment, and file your comment online
at https://www.regulations.gov by following the instructions on the
web-based form. If you prefer to file your comment on paper, mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, Division of
Enforcement, Bureau of Consumer Protection, Federal Trade Commission,
[email protected], (202) 326-2889.
SUPPLEMENTARY INFORMATION:
Title of Collection: Energy Labeling Rule (Rule), 16 CFR part 305.
OMB Control Number: 3084-0069.
Type of Review: Extension without change of currently approved
collection.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 821,651.
Estimated Annual Labor Costs: 24,690,012.
Estimated Annual Non-labor Costs: $3,000,000.
Abstract: The Energy Labeling Rule implements the Energy Policy and
Conservation Act of 1975 (``EPCA'').\1\ The Rule establishes testing,
reporting, recordkeeping, and labeling requirements for manufacturers
of major household products (refrigerators, refrigerator-freezers, and
freezers; dishwashers; clothes washers; water heaters; room air
conditioners; furnaces; central air conditioners; heat pumps; pool
heaters; fluorescent lamp ballasts; lamp products; plumbing fittings;
plumbing fixtures; ceiling fans; consumer specialty lamps; and
televisions). The requirements relate specifically to the disclosure of
information relating to energy consumption and water usage. The Rule's
testing and disclosure requirements enable consumers purchasing
products to compare the efficiency or energy use of competing models.
In addition, EPCA and the Rule require manufacturers to submit relevant
data to the Commission regarding energy or water usage in connection
with the products they manufacture. The Commission uses this data to
compile ranges of comparability for covered appliances for publication
in the Federal Register. These submissions, along with required records
for testing data, may also be used in enforcement actions involving
alleged misstatements on labels or in advertisements.
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\1\ 42 U.S.C. 6294.
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As required by section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), the FTC is providing this opportunity for public comment
before requesting that OMB extend the existing clearance for the
information collection requirements contained in the Rule.
Burden Estimates
Estimated annual hours burden: 821,651.
The estimated hours burden imposed by Section 324 of EPCA and the
Commission's Rule include burdens for testing (693,320 hours);
reporting (2,646 hours); recordkeeping (807 hours); labeling (112,272
hours); retail and online catalog disclosures (6,800 hours); and online
label posting (5,806 hours). The total burden for these activities is
821,651 hours (rounded to the nearest hour).
The following estimates of the time needed to comply with the
requirements of the Rule are based on census data, Department of Energy
figures and estimates, general knowledge of manufacturing practices,
and industry input and figures. Because the compliance burden falls
almost entirely on manufacturers and importers (with a de minimis
burden for retailers), burden estimates are calculated on the basis of
the number of domestic manufacturers and/or the number of units shipped
domestically in the various product categories.
A. Testing
Under the Rule, manufacturers of covered products must test each
basic model they produce to determine energy usage (or, in the case of
plumbing fixtures, water consumption). The burden imposed by this
requirement is determined by the number of basic models produced, the
average number of units tested per model, and the time required to
conduct the applicable test.
Manufacturers need not subject each basic model to testing
annually; they must retest only if the product design changes in such a
way as to affect energy consumption. The staff estimates that the
proportion of models tested each year ranges roughly between 10% and
50% and that the actual percentage of basic models tested varies by
appliance category. In addition, the majority of tests conducted are
required by Department of Energy requirements; therefore, it is likely
that only a small portion of the tests conducted is attributable to the
Rule's requirements. Accordingly, the burden estimates are based on the
assumption that 25% of all basic models are tested annually due to the
Rule's requirements. Thus, the estimated testing burden for the various
categories of products covered by the Rule is as follows: \2\
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\2\ The following numbers reflect estimates of the basic models
in the market and test burdens based on information collected by the
Department of Energy or other sources. The actual basic model
numbers will vary from year to year.
[[Page 84331]]
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Percentage of Avg. number of Labor hours Total annual
Category of manufacturer Number of models tested units tested per unit testing burden
basic models (FTC required) per model tested hours
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Refrigerators, Refrigerator- 9,703 25 4 4 38,812
freezers, and Freezers.........
Dishwashers..................... 1,350 25 4 1 1,350
Clothes washers................. 1,364 25 4 2 2,728
Water heaters................... 3,936 25 2 24 47,232
Room air conditioners........... 1,844 25 4 8 14,752
Furnaces........................ 5,894 25 2 8 23,576
Central A/C and Heat pumps...... 11,911 25 2 24 142,932
Pool heaters.................... 280 25 2 12 1,680
Fluorescent lamp ballasts....... 494 25 4 3 1,482
Lamp products................... 20,000 25 10 8 400,000
Plumbing fittings............... 3,000 25 2 2 3,000
Plumbing fixtures............... 45,111 25 1 .0833 939
Ceiling fans.................... 9,572 25 3 1 7,179
Televisions..................... 3,274 25 2 2 3,274
Portable air conditioners....... 548 25 4 8 4,384
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.............. .............. .............. .............. 693,320
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B. Reporting
The Rule requires that manufacturers of covered products ``shall
submit annually a report for each model in current production
containing the same information that must be submitted to the
Department of Energy pursuant to 10 CFR part 429. In lieu of submitting
the required information to the Commission as required by this section,
manufacturers may submit such information to the Department of Energy
via the CCMS at https://regulations.doe.gov/ccms as provided by 10 CFR
429.12.'' 16 CFR 305.11. The Rule also requires manufacturers to
furnish links to images of their EnergyGuide labels as part of these
required annual reports. 16 CFR 305.11. Manufacturers must submit data
to the FTC both when they begin manufacturing new models and annually.
16 CFR 305.11; 42 U.S.C. 6296(b).
Reporting burden estimates are based on information from industry
representatives. Manufacturers of some products, such as appliances and
HVAC equipment, indicate that, for them, the reporting burden is best
measured by the estimated time required to report on each model
manufactured, while others, such as makers of fluorescent lamp ballasts
and lamp products, state that an estimated number of annual burden
hours by manufacturer is a more meaningful way to measure. The figures
below reflect these different methodologies as well as the varied
burden hour estimates provided by manufacturers of the different
product categories that use the latter methodology.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
Staff estimates that the average reporting burden for these
manufacturers is approximately two minutes per basic model. Based on
this estimate, multiplied by a total of 49,676 basic models of these
products, the annual reporting burden for the appliance, HVAC
equipment, and pool heater industry is an estimated 1,656 hours (2
minutes x 49,676 models / 60 minutes per hour).
Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
The total annual reporting burden for manufacturers of fluorescent
lamp ballasts, lamp products, and plumbing fixtures is based on the
estimated average annual burden for each category of manufacturers,
multiplied by the number of manufacturers in each respective category,
as shown below:
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Annual burden Total annual
Category of manufacturer hours per Number of reporting
manufacturer manufacturers burden hours
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Fluorescent lamp ballasts....................................... 6 20 120
Lamp products................................................... 15 50 750
Plumbing products............................................... 1 120 120
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The total reporting burden for industries covered by the Rule is
2,646 hours annually (1,656 + 120 + 750 + 120).
C. Recordkeeping
EPCA and the Rule require manufacturers to keep the data generated
from the tests required by the Rule. As with reporting, burden is
calculated by number of models for appliances, HVAC equipment, pool
heaters, and televisions, and by number of manufacturers for
fluorescent lamp ballasts, lamp products, and plumbing products.
Appliances, HVAC Equipment, Pool Heaters, and Televisions
The recordkeeping burden for manufacturers of appliances, HVAC
equipment, pool heaters, and televisions varies directly with the
number of tests performed. Staff estimates total recordkeeping burden
to be approximately 207 hours for these manufacturers, based on an
estimated average of one minute per record stored (whether in
electronic or paper format), multiplied by 12,419 tests \3\ performed
annually (1 x 12,419 / 60 minutes per hour).
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\3\ This is derived from 25% of 49,676 estimated models that are
tested.
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Fluorescent Lamp Ballasts, Lamp Products, and Plumbing Products
The total annual recordkeeping burden for manufacturers of
fluorescent
[[Page 84332]]
lamp ballasts, lamp products, and plumbing fixtures is based on the
estimated average annual burden for each category of manufacturers
(derived from industry sources), multiplied by the number of
manufacturers in each respective category, as shown below:
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Annual burden Total annual
Category of manufacturer hours per Number of recordkeeping
manufacturer manufacturers burden hours
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Fluorescent lamp ballasts....................................... 2 20 40
Lamp products................................................... 10 50 500
Plumbing fixtures............................................... 0.5 120 60
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The total recordkeeping burden for industries covered by the Rule
is 807 hours annually (207 + 40 + 500 + 60).
D. Labeling
EPCA and the Rule require that manufacturers of covered products
provide certain information to consumers through labels on covered
products. The burden imposed by this requirement consists of (1) the
time needed to prepare labels, and (2) the time needed to affix
required labels.
EPCA and the Rule specify the content, format, and specifications
for the required labels, so manufacturers need only add the energy
consumption figures derived from testing. In addition, most companies
use automation to generate labels, and the labels do not change from
year to year.
Given these considerations, staff estimates that the time to
prepare labels for covered products (all covered products except
plumbing and fluorescent lamp products, which do not have separate
labels) is no more than four minutes per basic model. In addition,
staff estimates that, on average, manufacturers draft or revise labels
for 25% of the total basic models each year. Based on Department of
Energy data, staff has estimated that manufacturers offer approximately
69,676 basic models of covered products. Based on these estimates,
staff estimates that the approximate annual drafting burden involved in
labeling covered products is 1,161 hours per year [69,676 (all basic
models) x 25% x four minutes (drafting time per basic model) / 60
(minutes per hour)].
Based on input from industry representatives and trade
associations, staff estimates that it takes approximately 4 seconds to
affix labels to products for retail sales.\4\ Based on an average of 4
seconds per unit, the annual burden for affixing labels to covered
products is 111,111 hours [4 (seconds) x 100,000,000 (the estimated
number of total products shipped for sale annually) divided by 3,600
(seconds per hour)].\5\
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\4\ Estimates from trade association members for labeling costs
ranged from 1 second to 8 seconds. Staff has chosen a middle-ground
estimate of 4 seconds, although due to improvements in automation,
staff believes this estimate likely overstates the time spent
labeling most covered products.
\5\ Includes only those product categories, such as showroom
appliances and heating and cooling equipment, that must have
separate labels affixed to them.
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The total labeling burden for all industries covered by the Rule is
112,272 (1,161 + 111,111) annually.
E. Online and Retail Sales Catalog Disclosures
The Rule requires that sellers offering covered products online or
through retail sales catalogs (i.e., those publications from which a
consumer can order merchandise) disclose online or in the catalog
energy or water consumption for each covered product. Because this
information is supplied by the product manufacturers, the burden on the
retailer consists of incorporating the information into the online or
catalog presentation.
In the past, staff has estimated that there are 100 sellers who
offer covered products through paper retail catalogs. While the Rule
initially imposed a burden on catalog sellers by requiring that they
draft disclosures and incorporate them into the layouts of their
catalogs, paper catalog sellers now have substantial experience with
the Rule and its requirements. Energy and water consumption information
has obvious relevance to consumers, so sellers are likely to disclose
much of the required information with or without the Rule. Accordingly,
given the small number of catalog sellers, their experience with
incorporating energy and water consumption data into their catalogs,
and the likelihood that many of the required disclosures would be made
in the ordinary course of business, staff believes that any burden the
Rule imposes on these paper catalog sellers would be minimal.
Staff estimates that there are approximately 400 online sellers of
covered products who are subject to the Rule's catalog disclosure
requirements. Staff estimates that these online sellers each require
approximately 17 hours per year to incorporate the data into their
online catalogs. This estimate is based on the assumption that entry of
the required information takes 1 minute per covered product and an
assumption that the average online catalog contains approximately 1,000
covered products (based on a sampling of websites of affected
retailers). Given that there is a great variety among sellers in the
volume of products they offer online, it is very difficult to estimate
such volume with precision. In addition, this analysis assumes that
information for all 1,000 products is entered into the catalog each
year. This assumption likely overstates the associated burden because
the number of incremental additions to the catalog from year to year is
likely to be much lower after initial start-up efforts have been
completed. The total catalog disclosure burden for all industries
covered by the Rule is 6,800 hours (400 sellers x 17 hours annually).
F. Online Label Posting
The Rule require manufacturers to post images of their EnergyGuide
and Lighting Facts labels online. Given approximately 69,676 total
models (excluding plumbing and fluorescent lamp products, which do not
have these labels) at an estimated five minutes per model, this
requirement entails a burden of 5,806 hours.
Estimated annual cost burden: $24,690,012 in labor costs and
$3,000,000 in other non-labor costs.
Labor costs: Staff derived labor costs by applying estimated mean
hourly cost figures to the burden hours described above. In calculating
the cost figures, staff assumes that test procedures are conducted by
engineering technicians at an hourly rate of $32.10, and that
recordkeeping and reporting, and labeling and marking, generally are
performed by data entry personnel at an hourly rate of $18.97.\6\
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\6\ These labor cost estimates are derived from the Bureau of
Labor Statistics (``BLS'') figures in ``Table 1. National employment
and wage data from the Occupational Employment and Wage Statistics
survey by occupation, May 2022,'' available at https://www.bls.gov/news.release/ocwage.t01.htm.
[[Page 84333]]
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Burden hours Total annual
Activity per year Wage category/mean hourly rate labor cost
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Testing..................................... 693,320 Engineering technicians $22,255,572
($32.10).
Reporting................................... 2,646 Data Entry/Information 50,195
Processing ($18.97).
Recordkeeping............................... 807 Data Entry/Information 15,309
Processing ($18.97).
Labeling.................................... 112,272 Data Entry/Information 2,129,800
Processing ($18.97).
Online and Catalog disclosures.............. 6,800 Data Entry/Information 128,996
Processing ($18.97).
Online Label Posting........................ 5,806 Data Entry/Information 110,140
Processing ($18.97).
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.............. ............................... 24,690,012
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Capital or Other Non-Estimated non-labor cost: $3,000,000.
Manufacturers must incur the cost of procuring labels used in
compliance with the Rule. Based on estimates of 100,000,000 units
shipped annually, at an average cost of three cents for each label, the
total (rounded) labeling cost is $3,000,000.
Request for Comment
Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the disclosure and recordkeeping requirements
are necessary, including whether the information will be practically
useful; (2) the accuracy of our burden estimates, including whether the
methodology and assumptions used are valid; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) ways to minimize the burden of the collection of information.
For the FTC to consider a comment, we must receive it on or before
February 5, 2024. Your comment, including your name and your state,
will be placed on the public record of this proceeding, including the
https://www.regulations.gov website.
You can file a comment online or on paper. Due to heightened
security screening, postal mail addressed to the Commission will be
subject to delay. We encourage you to submit your comments online
through the https://www.regulations.gov website.
If you file your comment on paper, write ``Energy Labeling Rule,
PRA Comment, P145403,'' on your comment and on the envelope, and mail
it to the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580. If possible, submit your paper comment to the
Commission by overnight service.
Because your comment will become publicly available at https://www.regulations.gov, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including, in particular, competitively sensitive
information, such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at www.regulations.gov, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before February 5,
2024. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2023-26602 Filed 12-4-23; 8:45 am]
BILLING CODE 6750-01-P