[Federal Register Volume 67, Number 110 (Friday, June 7, 2002)]
[Rules and Regulations]
[Pages 39269-39272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-14333]
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FEDERAL TRADE COMMISSION
16 CFR Part 305
Rule Concerning Disclosures Regarding Energy Consumption and
Water Use of Certain Home Appliances and Other Products Required Under
the Energy Policy and Conservation Act (``Appliance Labeling Rule'')
AGENCY: Federal Trade Commission.
ACTION: Final rule.
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SUMMARY: The Federal Trade Commission (``Commission'') amends the
Commission's Appliance Labeling Rule (``Rule'') to incorporate the
latest figures for average unit energy costs as published by the
Department of Energy (``DOE'') in the Federal Register on April 24,
2002. This rule sets forth the representative average unit energy costs
for five residential energy sources, which the Commission revises
periodically on the basis of updated information provided by DOE.
DATES: The amendments are effective June 7, 2002. The mandatory dates
for using these revised DOE cost figures in connection with the
Appliance Labeling Rule are detailed in the Supplementary Information
Section.
FOR FURTHER INFORMATION CONTACT: Hampton Newsome, Attorney, 202-326-
2889, Division of Enforcement, Bureau of Consumer Protection, Federal
Trade Commission, Washington, D.C. 20580; E-mail: [email protected].
SUPPLEMENTARY INFORMATION: On November 19, 1979, the Commission issued
a final rule in response to a directive in section 324 of the Energy
Policy and Conservation Act (``EPCA''), 42 U.S.C. 6201.\1\ The Rule
requires the disclosure of energy efficiency, consumption, or cost
information on labels and in retail sales catalogs for eight categories
of appliances, and mandates that the energy costs, consumption, or
efficiency ratings be based on standardized test procedures developed
by DOE. The cost information obtained by following the test procedures
is derived by using the representative average unit energy costs
provided by DOE. Table 1 in section 305.9(a) of the Rule sets forth the
representative average unit energy costs to be used for all cost-
related requirements of the Rule. As stated in section 305.9(b), the
Table is to be revised periodically on the basis of updated information
provided by DOE.
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\1\ 44 FR 66466. Since its promulgation, the Rule has been
amended five times to include new product categories--central air
conditioners (52 FR 46888, Dec. 10, 1987), fluorescent lamp ballasts
(54 FR 1182, Jan. 12, 1989), certain plumbing products (58 FR 54955,
Oct. 25, 1993), certain lamp products (59 FR 25176, May 13, 1994),
and pool heaters and certain residential water heater types (59 FR
49556, Sept. 28, 1994). Obligations under the Rule concerning
fluorescent lamp ballasts, lighting products, plumbing products and
pool heaters are not affected by the cost figures in this notice.
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I. Representative Average Unit Energy Costs
On April 24, 2002, DOE published the most recent figures for
representative average unit energy costs (67 FR 20104). These energy
cost figures are for manufacturers to use, in accordance with the
guidelines that appear below, to calculate the required secondary
annual operating cost figures at the
[[Page 39270]]
bottom of required EnergyGuides for refrigerators, refrigerator-
freezers, freezers, dishwashers, clothes washers, water heaters, and
room air conditioners. The energy cost figures also are for
manufacturers of central air conditioners and heat pumps to use, also
in accordance with the below guidelines, to calculate annual operating
cost for required fact sheets and in approved industry directories
listing these products.\2\ The Commission is revising Table 1 to
reflect these latest cost figures, as set forth below. The current and
future obligations of manufacturers with respect to the use of DOE's
cost figures are as follows:
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\2\ The DOE cost figures are not necessary for making data
submissions to the Commission. The required energy use information
that manufacturers of refrigerators, refrigerator-freezers,
freezers, clothes washers, dishwashers, and water heaters must
submit under section 305.8 of the Rule is no longer operating cost;
it is now energy consumption (kilowatt-hour use per year for
electricity, therms per year for natural gas, or gallons per year
for propane and oil).
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A. For Labeling of Refrigerators, Refrigerator-Freezers, Freezers,
Clothes Washers, Dishwashers, Water Heaters, and Room Air Conditioners
\3\
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\3\ Sections 305.11(a)(5)(i)(H)(2) and (3) of the Rule (16 CFR
305.11(a)(5)(i)(H)(2) and (3)) require that labels for
refrigerators, refrigerator-freezers, freezers, clothes washers,
dishwashers, water heaters, and room air conditioners contain a
secondary energy usage disclosure in terms of an estimated annual
operating cost (labels for clothes washers and dishwashers will show
two such secondary disclosures--one based on operation with water
heated by natural gas, and one on operation with water heated by
electricity). The labels also must disclose, below this secondary
estimated annual operating cost, the fact that the estimated annual
operating cost is based on the appropriate DOE energy cost figure,
and must identify the year in which the cost figure was published.
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Manufacturers of refrigerators, refrigerator-freezers, freezers,
clothes washers, dishwashers, water heaters, and room air conditioners
must use the National Average Representative Unit Costs published today
on labels for their products only after the Commission publishes new
ranges of comparability for those products that are based on today's
cost figures. In the meantime, they must continue to use past DOE cost
figures as follows:
1. Refrigerators, Refrigerator-Freezers, and Freezers
Manufacturers of refrigerators, refrigerator-freezers, and freezers
must continue to derive the operating cost disclosures on labels by
using the 2001 National Average Representative Unit Costs (8.29 cents
per kiloWatt-hour for electricity) published by DOE on March 8, 2001
(66 FR 13917), and by the Commission on May 21, 2001 (66 FR 27856), and
that were in effect when the current 2001 ranges of comparability for
these products were published.\4\ Manufacturers must continue to use
the foregoing DOE cost figures until such time as the Commission
publishes new ranges of comparability and states that operating cost
disclosures must be based on the DOE cost figure for electricity then
in effect.
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\4\ The current (2001) ranges for refrigerators, refrigerator-
freezers, and freezers were published on November 19, 2001 (66 FR
57867).
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2. Room Air Conditioners
Manufacturers of room air conditioners must continue to derive the
operating cost disclosures on labels by using the 1995 National Average
Representative Unit Costs for electricity (8.67 cents per kiloWatt-
hour) that were published by DOE on January 5, 1995 (60 FR 1773), and
by the Commission on February 17, 1995 (60 FR 9296), and that were in
effect when the current (1995) ranges of comparability for these
products were published.\5\ Manufacturers of room air conditioners must
continue to use the 1995 DOE cost figures until such time as the
Commission publishes new ranges of comparability and states that
operating cost disclosures must be based on the DOE cost figure for
electricity then in effect.
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\5\ The current (1995) ranges for room air conditioners were
published on November 13, 1995 (60 FR 56945). On September 16, 1996
(61 FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR
45941), December 20, 1999 (64 FR 71019), September 1, 2000 (65 FR
53163), and August 2, 2001 (66 FR 40110), the Commission announced
that the 1995 ranges for room air conditioners would continue to
remain in effect.
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3. Storage-Type Water Heaters
Manufacturers of storage-type water heaters must continue to use
the 1994 DOE cost figures (8.41 cents per kiloWatt-hour for
electricity, 60.4 cents per therm for natural gas, $1.05 per gallon for
No. 2 heating oil, and 98.3 cents per gallon for propane) in
determining the operating cost disclosures on the labels on their
products. This is because the 1994 DOE cost figures were in effect when
the 1994 ranges of comparability for storage-type water heaters were
published, and those 1994 ranges are still in effect for those
products.\6\ Manufacturers of storage-type water heaters must continue
to use the 1994 DOE cost figures until such time as the Commission
publishes new ranges of comparability and states that operating cost
disclosures must be based on the DOE cost figure for electricity then
in effect.
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\6\ The 1994 DOE cost figures were published by DOE on December
29, 1993 (58 FR 68901), and by the Commission on February 8, 1994
(59 FR 5699). The current (1994) ranges of comparability for
storage-type water heaters were published on September 23, 1994 (59
FR 48796). On August 21, 1995 (60 FR 43367), September 16, 1996 (61
FR 48620), August 25, 1997 (62 FR 44890), August 28, 1998 (63 FR
45941), December 20, 1999 (64 FR 71019), September 1, 2000 (65 FR
53163), and August 2, 2001 (66 FR 40110), the Commission announced
that the 1994 ranges for storage-type water heaters would continue
to remain in effect.
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4. Heat Pump Water Heaters
Manufacturers of heat pump water heaters must continue to derive
the operating cost disclosures on labels by using the 2000 National
Average Representative Unit Costs for electricity (8.03 cents per
kiloWatt-hour) that were published by DOE on February 7, 2000 (65 FR
5860), and by the Commission on April 17, 2000 (65 FR 20352), and that
were in effect when the current (2000) ranges of comparability for
these products were published.\7\ Manufacturers of heat pump water
heaters must continue to use the 2000 DOE cost figures until such time
as the Commission publishes new ranges of comparability and states that
operating cost disclosures must be based on the DOE cost figure for
electricity then in effect.
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\7\ The current (2000) ranges of comparability for heat pump
water heaters were published on September 1, 2000 (65 FR 53163). On
August 2, 2001 (66 FR 40110), the Commission announced that the 2000
ranges for heat pump water heaters would continue to remain in
effect.
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5. Gas-Fired Instantaneous Water Heaters
Manufacturers of gas-fired instantaneous water heaters must
continue to base the required secondary operating cost disclosures on
labels on the 1999 National Average Representative Unit Costs for
natural gas (68.8 cents per therm) and propane (77 cents per therm)
that were published by DOE on January 5, 1999 (64 FR 487), and by the
Commission on February 17, 1999 (64 FR 7783), and that were in effect
when the 1999 ranges of comparability for these products were
published.\8\ Manufacturers must continue to use the 1999 DOE cost
figures until such time as the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figure for electricity then in effect.
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\8\ The current ranges for gas-fired instantaneous water heaters
were published on December 20, 1999 (64 FR 71019). On September 1,
2000 (65 FR 53165) and on August 2, 2001 (66 FR 40110), the
Commission announced that the 1999 ranges for gas-fired
instantaneous water heaters would continue to remain in effect.
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[[Page 39271]]
6. Standard-Size Dishwashers
Manufacturers of standard-size dishwashers must continue to base
the required secondary operating cost disclosures on labels on the 1997
National Average Representative Unit Costs for electricity (8.31 cents
per kiloWatt-hour) and natural gas (61.2 cents per therm) that were
published by DOE on November 18, 1996 (61 FR 58679), and by the
Commission on February 5, 1997 (62 FR 5316), and that were in effect
when the 1997 ranges of comparability for these products were
published.\9\ Manufacturers of standard-size dishwashers must continue
to use the 1997 DOE cost figures until such time as the Commission
publishes new ranges of comparability and states that operating cost
disclosures must be based on the DOE cost figure for electricity then
in effect.
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\9\ The current ranges for standard-size dishwashers were
published on August 25, 1997 (62 FR 44890). On August 28, 1998 (63
FR 45941), December 20, 1999 (64 FR 71019), September 1, 2000 (65 FR
53165), and September 28, 2001 (66 FR 49529), the Commission
announced that the 1997 ranges for standard-size dishwashers would
continue to remain in effect.
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7. Compact-Size Dishwashers
Manufacturers of compact-size dishwashers must continue to derive
the operating cost disclosures on labels by using the 2001 National
Average Representative Unit Costs for electricity (8.29 cents per
kiloWatt-hour) and natural gas (83.7 cents per therm) that were
published by DOE on March 8, 2001 (66 FR 13917), and by the Commission
on May 21, 2001 (66 FR 27856), and that were in effect when the current
(2001) ranges of comparability for these products were published.\10\
Manufacturers of compact dishwashers must continue to use the 2001 DOE
cost figures until such time as the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figure for electricity then in effect.
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\10\ The current (2001) ranges of comparability for compact-size
dishwashers were published on September 28, 2001 (66 Fed. Reg.
49529).
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8. Clothes Washers
Manufacturers of clothes washers must continue to derive the
operating cost disclosures on labels by using the 2000 National Average
Representative Unit Costs for electricity (8.03 cents per kiloWatt-
hour) and natural gas (68.8 cents per therm) that were published by DOE
on February 7, 2000 (65 FR 5860), and by the Commission on April 17,
2000 (65 FR 20352), and that were in effect when the current (2000)
ranges of comparability for these products were published.\11\
Manufacturers of clothes washers must continue to use the 2000 DOE cost
figures until such time as the Commission publishes new ranges of
comparability and states that operating cost disclosures must be based
on the DOE cost figure for electricity then in effect.
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\11\ The current (2000) ranges of comparability for clothes
washers were published on May 11, 2000 (65 FR 30351). On April 16,
2001 (66 FR 19389) and on April 12, 2002 (67 FR 17936), the
Commission announced that the 2000 ranges for clothes washers would
continue to remain in effect.
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B. For Operating Cost Information Relating to Central Air Conditioners
and Heat Pumps Disclosed on Fact Sheets and In Industry Directories
In the 2002 notice announcing whether there will be new ranges of
comparability for central air conditioners and heat pumps, the
Commission also will announce that operating cost disclosures for these
products on fact sheets and in industry directories must be based on
the 2002 DOE cost figure for electricity beginning on the effective
date of that notice.
C. For Operating Cost Representations Respecting Products Covered By
EPCA but Not By the Commission's Rule
Manufacturers of products covered by section 323(c) of EPCA, 42
U.S.C. 6293(c), but not by the Appliance Labeling Rule (clothes dryers,
television sets, kitchen ranges and ovens, and space heaters) must use
the 2002 DOE energy costs in all operating cost representations
beginning September 5, 2002.
II. Administrative Procedure Act
The amendments published in this notice involve routine, technical
and minor, or conforming changes to the Rule's labeling requirements.
These technical amendments merely provide a routine change to the cost
information in the Rule. Accordingly, the Commission finds for good
cause that public comment and a 30-day effective date for these
technical, procedural amendments are impractical and unnecessary (5
U.S.C. 553(b)(A)(B) and (d)).
III. 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 Appliance Labeling Rule.
These technical amendments merely provide a routine change to the cost
information in the Rule. 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.
IV. Paperwork Reduction Act
In the 1988 NPR, the Commission stated that the Rule contains
disclosure and reporting requirements that constitute ``information
collection requirements'' as defined by 5 CFR 1320.7(c), the regulation
that implements the Paperwork Reduction Act (``PRA'').\12\ The
Commission noted that the Rule had been reviewed and approved in 1984
by the Office of Management and Budget (``OMB'') and assigned OMB
Control No. 3084-0068. OMB has extended its approval for its
recordkeeping and reporting requirements until September 30, 2004. The
amendments now being adopted do not change the substance or frequency
of the recordkeeping, disclosure, or reporting requirements and,
therefore, do not require further OMB clearance.
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\12\ 44 U.S.C. 3501-3520.
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List of Subjects in 16 CFR part 305
Advertising, Energy conservation, Household appliances, Labeling,
Reporting and recordkeeping requirements.
Accordingly, 16 CFR part 305 is amended as follows:
PART 305--[AMENDED]
1. The authority citation for part 305 continues to read as
follows:
Authority: 42 U.S.C. 6294.
2. Section 305.9(a) is revised to read as follows:
Sec. 305.9 Representative average unit energy costs.
(a) Table 1, to this paragraph contains the representative unit
energy costs to be utilized for all requirements of this part.
[[Page 39272]]
Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (2002)
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As required by DOE test Dollars per
Type of energy In commonly used terms procedure million Btu
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Electricity............................. 8.28[cent]/kWh \2, 3\..... $0.0828/kWh............... $24.27
Natural Gas............................. 65.6[cent]/therm \4\ or $0.00000656/Btu........... 6.56
$6.74/MCF \5, 6\.
No. 2 heating oil....................... $1.08/gallon \7\.......... $0.00000779/Btu........... 7.79
Propane................................. $0.87/gallon \8\.......... $0.00000953/Btu........... 9.53
Kerosene................................ $1.23/gallon \9\.......... $0.00000911/Btu........... 9.11
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\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 1,027 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.
* * * * *
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-14333 Filed 6-6-02; 8:45 am]
BILLING CODE 6750-01-P