[Federal Register Volume 62, Number 24 (Wednesday, February 5, 1997)]
[Rules and Regulations]
[Pages 5316-5318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2802]


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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 revision.

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SUMMARY: The Federal Trade Commission's Appliance Labeling Rule (``the 
Rule'') requires that Table 1, in Sec. 305.9, which sets forth the 
representative average unit energy costs for five residential energy 
sources, be revised periodically on the basis of updated information 
provided by the Department of Energy (``DOE'').
    This document revises the table to incorporate the latest figures 
for average unit energy costs as published by DOE in the Federal 
Register on November 18, 1996.\1\
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    \1\ 61 FR 58679.
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DATES: The revisions to Sec. 305.9(a) and Table 1 are effective March 
7, 1997. The mandatory dates for using these revised DOE cost figures 
in connection with the Appliance Labeling Rule are detailed in the 
Supplementary Information section, below.

FOR FURTHER INFORMATION CONTACT:
James Mills, Attorney, 202-326-3035 Division of Enforcement, Federal 
Trade Commission, Washington, DC 20580.

SUPPLEMENTARY INFORMATION: On November 19, 1979, the Federal Trade 
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.\2\ 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 Sec. 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 Sec. 305.9(b), the 
Table is to be revised periodically on the basis of updated information 
provided by DOE.
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    \2\ 44 FR 66466. Since its promulgation, the rule has been 
amended four 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), and certain lamp products (59 FR 25176, May 13, 
1994). Obligations under the rule concerning fluorescent lamp 
ballasts, lighting products, and plumbing products are not affected 
by the cost figures in this notice.
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    On November 18, 1996, DOE published the most recent figures for 
representative average unit energy costs. Accordingly, Table 1 is 
revised to reflect these latest cost figures as set forth below.
    How and when industry members must use (and not use) revised Table 
1 in calculating cost disclosures for labeling and catalog sales is 
explained in detail in the paragraphs below. In sum:
    <bullet> Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, water heaters, and room air 
conditioners are not permitted to use the DOE Cost figures published 
today to calculate the secondary operating cost figures on labels for 
their products until the Commission publishes new ranges of 
comparability for those products.
    <bullet> Manufacturers of refrigerators, refrigerator-freezers, 
freezers, clothes washers, dishwashers, and water heaters have no need 
for the DOE cost figures for making data submissions under 305.8. The 
energy use information they must submit and use as primary energy use 
descriptors on labels for these products is now in terms of energy 
consumption, not operating cost.
    <bullet> Industry members must use the 1997 DOE cost figures 
published today to calculate operating cost representations in catalogs 
that are drafted and printed after May 6, 1997.
    <bullet> Beginning May 6, 1997, manufacturers of clothes dryers, 
television sets, kitchen ranges and ovens, and space heaters must use 
the 1997 representative average unit costs for energy in all operating 
cost representations.

For Labeling of Products Covered by the Commission's Rule \3\

    Manufacturers of covered products are not permitted to use the 
National Average Representative Unit Costs published today on labels 
for their products until the Commission

[[Page 5317]]

publishes new ranges of comparability for those products.
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    \3\ The July 1, 1994, amendments 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 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 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, $1.054 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.\4\ Manufacturers of storage-type water heaters must continue 
to use the 1994 cost figures to calculate the estimated annual 
operating cost figures on their labels until the Commission publishes 
new ranges of comparability for storage-type water heaters.
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    \4\ 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), and again on September 
16, 1996 (61 FR 48620), the Commission announced that the 1994 
ranges for storage-type water heaters would continue to remain in 
effect.
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    Manufacturers of refrigerators, refrigerator-freezers, freezers, 
heat pump water heaters, and room air conditioners must continue to 
derive the operating cost disclosures on labels by using the 1995 
National Average Representative Unit Costs (8.67 cents per kilowatt-
hour for electricity, 63 cents per therm for natural gas, $1.008 per 
gallon for No. 2 heating oil, and 98.5 cents per gallon for propane) 
that were in effect when the current (1995) ranges of comparability for 
these products were published.\5\ Manufacturers of refrigerators, 
refrigerator-freezers, freezers, heat pump water heaters, and room air 
conditioners must continue to use the 1995 DOE cost figures to 
calculate the operating cost disclosure disclosed on labels until the 
Commission publishes new ranges of comparability for heat pump water 
heaters, room air conditioners, or refrigerators, refrigerator-
freezers, and freezers based on future annual submissions of data. In 
the notice announcing the new ranges, the Commission also will announce 
that operating cost disclosures must be based on the DOE cost figure 
for electricity in effect at that time.
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    \5\ The 1995 DOE cost figures were published by DOE on January 
5, 1995 (60 FR 1773), and by the Commission on February 17, 1995 (60 
FR 9296). The current (1995) ranges of comparability for heat pump 
water heaters were published on August 21, 1995 (60 FR 43367). The 
current (1995) ranges for refrigerators, refrigerator-freezers, 
freezers, and room air conditioners were published on November 13, 
1995 (60 FR 56945). On September 16, 1996 (61 FR 48620), the 
Commission announced that the 1995 ranges for heat pump water 
heaters and room air conditioners would continue to remain in 
effect. On October 28, 1996 (61 FR 55563), the Commission announced 
that the 1995 ranges for refrigerators, refrigerator-freezers, and 
freezers would continue to remain in effect.
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    Manufacturers of clothes washers, dishwashers, and instantaneous 
water heaters must continue to base the required secondary operating 
cost disclosures on labels on the 1996 National Average Representative 
Unit Costs for electricity (8.6 cents per kilowatt-hour), natural gas 
(62.6 cents per therm), propane (90 cents per gallon), and/or heating 
oil (92 cents per gallon) that were published by DOE on January 19, 
1996,\6\ and by the Commission on February 14, 1996,\7\ and that were 
in effect when the 1996 ranges of comparability for these products were 
published.\8\
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    \6\ 61 FR 1366.
    \7\ 61 FR 5679.
    \8\ The current ranges for clothes washers were published on 
June 13, 1996 (61 FR 29939); the current ranges for dishwashers and 
instantaneous water heaters were published on September 16, 1996 (61 
FR 48620).
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For 1997 Submissions of Data Under Section 305.8 of the 
Commission's Rule

    Manufacturers no longer need to use the DOE cost figures in 
complying with the data submission requirements of Sec. 305.8 of the 
Rule. Pursuant to amendments to the Rule published on July 1, 1994 \9\ 
(with extended compliance dates published on December 8, 1994),\10\ the 
estimated annual operating cost is no longer the primary energy usage 
descriptor for refrigerators, refrigerator-freezers, freezers, clothes 
washers, dishwashers, and water heaters. Under the amendments, the 
energy usage and the ranges of comparability for those product 
categories must be expressed in terms of estimated annual energy 
consumption (kilowatt-hour use per year for electricity, therms per 
year for natural gas, or gallons per year for propane and oil). Thus, 
the 1997 (and all subsequent) data submissions under 305.8 for these 
product categories (which are to enable the Commission to publish 
ranges of comparability) must be made in terms of estimated annual 
energy consumption, not cost. The energy efficiency descriptors for the 
other products covered by the Rule (room air conditioners, furnaces, 
boilers, central air conditioners, heat pumps, and pool heaters) are 
unaffected by the amendments mentioned above. The annual data 
submission requirements for those products, which are not based on the 
DOE cost figures, will continue to be in terms of energy efficiency.
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    \9\ 59 FR 34014.
    \10\ 59 FR 63688.
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    For convenience, the annual dates for data submission are repeated 
here:

Fluorescent lamp ballasts..................  Mar. 1.                    
Clothes washers............................  Mar. 1.                    
Water heaters..............................  May 1.                     
Furnaces...................................  May 1.                     
Room air conditioners......................  May 1.                     
Pool Heaters...............................  May 1.                     
Dishwashers................................  June 1.                    
Central air conditioners...................  July 1.                    
Heat pumps.................................  July 1.                    
Refrigerators..............................  Aug. 1.                    
Refrigerator-freezers......................  Aug. 1.                    
Freezers...................................  Aug. 1.                    
                                                                        

For Energy Cost Representations Respecting Covered Products in Catalogs

    Energy cost representations in catalogs that are drafted and 
printed while the 1997 cost figures are in effect must be derived using 
the 1997 energy costs beginning May 6, 1997.

For Energy 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 1997 representative average unit costs for energy in all operating 
cost representations beginning May 6, 1997.

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. 
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.

List of Subjects in 16 CFR Part 305

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

[[Page 5318]]

PART 305--[AMENDED]

    Accordingly, 16 CFR Part 305 is amended as follows:
    1. The authority citation for Part 305 continues to read:

    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, below, contains the representative unit energy costs 
to be utilized for all requirements of this part.

        Table 1.--Representative Average Unit Costs of Energy for Five Residential Energy Sources (1997)        
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                                                                                                     Dollars per
              Type of energy                  In commonly used terms      As required by DOE test    million Btu
                                                                                 procedure               \1\    
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Electricity..............................  8.31 cents/kWh \2\ \3\.....  $0.0831/kWh................       $24.35
Natural Gas..............................  61.2 cents/therm \4\ or      0.00000612/Btu.............         6.12
                                            $6.43/MCF \5\ \6\.                                                  
No. 2 heating oil........................  0.99/gallon \7\............  0.00000714/Btu.............         7.14
Propane..................................  0.98/gallon \8\............  0.00001073/Btu.............        10.73
Kerosene.................................  1.16/gallon \9\............  0.00000859/Btu.............         8.59
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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 1,028 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.              

* * * * *
Donald S. Clark,
Secretary.
[FR Doc. 97-2802 Filed 2-4-97; 8:45 am]
BILLING CODE 6750-01-M